Thornburg
Limited Term
Municipal Fund--
National Portfolio
Annual Report
June 30, 1997
INVESTMENT MANAGER
Thornburg Management Company, Inc.
119 East Marcy Street
Santa Fe, NM 87501
(800) 847-0200
PRINCIPAL UNDERWRITER
Thornburg Securities Corporation
119 East Marcy Street
Santa Fe, NM 87501
(800) 847-0200
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information. Performance data
quoted represent past performance and are not indicative of future results.
l e t t e r t o s h a r e h o l d e r s
Dear Shareholder:
I am pleased to present the Annual Report for the National Portfolio of
Thornburg Limited Term Municipal Fund for the fiscal year ending June 30, 1997.
The net asset value of the A shares increased 9 cents per share to $13.44 during
the year. If you were with us for the entire period, you received dividends of
62.4 cents per share. If you reinvested your dividends, you received 63.7 cents
per share. Investors who owned C Shares received dividends of 56.9 and 58 cents
per share, respectively.
American investors continue to be net sellers of individual municipal and U.S.
government bonds, while simultaneously pouring money into stocks and money
market investments. For example, investments in municipal bonds and bond funds
by individual investors have declined by $30 billion in the last 18 months. The
rewards to many equity investors, including those in our own Thornburg Value
Fund, have been impressive. Most investors who migrated from bonds to money
market investments in recent years have received lower returns thus far, yet
money market fund investments have increased approximately $300 billion in the
last two years. Assets of these money market funds now total over $1 trillion!
Table here:
Please see the exhibit at the back of this report for a simple comparison of
your fund to one money market return benchmark. While past performance cannot
guarantee future results, judge for yourself whether the historic return and
your expected future return from Limited Term Municipal Fund represents a
favorable tradeoff vis-a-vis the variability of your fund's share price.
Your Limited Term Municipal Fund portfolio currently holds approximately 480
municipal obligations from 47 states and 2 U.S. Territories. Approximately 86%
of the bonds are rated A or better by one of the major rating agencies. As you
know, we "ladder" the maturities of the bonds in your portfolio so that some
bonds are scheduled to mature at par during each of the next 10 years. Today,
your fund's weighted average maturity is approximately 3.6 years, and we always
keep it below 5 years. Percentages of the portfolio maturing within each of the
next 10 years are summarized on the following page: .
% of portfolio maturing within Cumulative % maturing by end of
1 year = 11% year 1 = 11%
1 to 2 years = 14% year 2 = 25%
2 to 3 years = 16% year 3 = 41%
3 to 4 years = 18% year 4 = 59%
4 to 5 years = 17% year 5 = 76%
5 to 6 years = 11% year 6 = 87%
6 to 7 years = 5% year 7 = 92%
7 to 8 years = 4% year 8 = 96%
8 to 9 years = 3% year 9 = 99%
9 to 10 years = 1% year 10 = 100%
Over the years, our practice of laddering a diversified portfolio of short and
intermediate maturity bonds has allowed your fund to consistently perform well
in varying interest rate environments. For instance, the A shares of Limited
Term Municipal Fund received "A" letter grades for one, three, and five year
performance relative to other short term municipal bond funds through June 30,
1997.* These rankings, which were published in The Wall Street Journal, reflect
total returns in the top 20% of all short term municipal bond funds for those
periods. For the 10-year period ending June 30, 1997, the A Shares of Thornburg
Limited Term Municipal Fund had the highest total return out of ten short
municipal funds, according to Lipper Analytical Services.
The strong economy has been good for municipal America. In its recent annual
survey of city fiscal conditions, the National League of Cities reported that
two-thirds of U.S. cities say they are better able to meet their financial needs
this year than last. Also, cities continued to increase their financial reserves
for the fifth consecutive year. Most states report similar favorable news, and
both operating and capital budget spending levels are increasing. There is one
possible cloud: as Washington hands increasing responsibility for implementing
mandated programs to state and local governments, I expect a few entities to
have significant problems managing through the transition.
Currently, your fund is the longest running mutual fund of any description to
continuously receive a 5 star rating from Morningstar. Limited Term Municipal
Fund has had the 5 star overall rating for 118 months. I would like to attribute
this to capable execution of a thoroughly sensible investment strategy over
time. Thank you for investing in Thornburg Limited Term Municipal Fund.
Sincerely,
Brian J. McMahon
Portfolio Manager
Morningstar propriety rating reflects historical risk adjusted performance as of
6/30/97. Ratings are subject to change every month. Funds with at least three
years of performance history are assigned ratings from one star (lowest) to five
star (highest). Morningstar ratings are calculated from the funds' three-,
five-, and ten year average annual returns and a risk factor that reflects fund
performance relative to three month Treasury bill returns. 10% of the funds in
an investment category receive five stars, 22.5% receive four stars. Thornburg
Limited Term Municipal Fund is ranked 4-stars for the 3 year period, 5-stars for
the 5 year period, and 5-stars for the 10 year period ending 6/30/97. There were
1315 bond funds with 3-year ratings, 640 bond funds with 5-year ratings and 297
with 10-year ratings in Morningstar's Municipal National category. *Source: The
Wall Street Journal, July 3, 1997. Performance data are supplied by Lipper
Analytical Services, Inc., and reflect performance for the 1, 3, and 5 year
periods ending June 30, 1997. An "A" ranking reflects total returns in the top
20% of all funds within the short term municipal objective, as defined by the
Wall Street Journal. The average maturity and average quality of the funds
within the short municipal objective may differ. At June 30, 1997, 41, 31, and
16 short municipal funds reported 1-year, 3-year, and 5-year total returns,
respectively. Perofrmance calculations used to obtain these rankings assume
deduction of all expenses and reinvestment of all distributions, but do not
include the effect of any sales charge on total return.
s t a t e m e n t o f a s s e t s a n d l i a b i l i t i e s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
June 30, 1997
ASSETS
Investments, at value (cost $880,219,166) $ 906,189,300
Cash 154,400
Receivable for fund shares sold 3,498,440
Interest receivable 4,794,378
Prepaid expenses and other assets 62,465
TOTAL ASSETS 924,698,983
LIABILITIES
Payable for securities purchased 25,808,676
Dividends payable 1,185,045
Payable for fund shares redeemed 3,922,318
Accounts payable investment adviser (Note 3) 424,809
Accounts payable and accrued expenses 515,517
TOTAL LIABILITIES 31,856,365
NET ASSETS $ 892,842,618
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($837,621,464 applicable to 62,327,347 shares of
beneficial interest outstanding - Note 4) $13.44
Maximum sales charge, 2.50% of offering
price (2.57% of net asset value per share) .34
Maximum Offering Price Per Share $13.78
Class C Shares:
Net asset value and offering price per share*
($19,475,167 applicable to 1,446,701 shares of
beneficial interest outstanding - Note 4) $13.46
Class I Shares:
Net asset value, offering and redemption price per share
($35,745,987 applicable to 2,659,456 shares of
beneficial interest outstanding - Note 4) $13.44
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge. See notes to financial statements.
s t a t e m e n t o f o p e r a t i o n s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Year Ended June 30, 1997
INVESTMENT INCOME
Interest income (net of premium amortized $51,377,843
of $2,571,463)
EXPENSES
Investment advisory fees (Note 3) 4,159,938
Administration Fees (Note 3)
Class A Shares 1,099,295
Class C Shares 22,965
Class I Shares 8,588
Distribution and service fees (Note 3):
Class A Shares 2,198,591
Class C Shares 183,828
Class I Shares 2,481
Transfer agent fees 539,659
Custodian fees 335,763
Accounting fees 99,440
Professional fees 86,180
Registration and filing fees 94,982
Other expenses 125,079
TOTAL EXPENSES 8,956,789
Less:
Expenses reimbursed by investment adviser (Note 3) (49,011)
Distribution and service fees waived (Note 3) (71,480)
NET EXPENSES 8,836,298
NET INVESTMENT INCOME 42,541,545
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS - NOTE 5
Net realized gain on investments sold 539,071
Increase in unrealized appreciation of investments 5,502,227
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 6,041,298
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $48,582,843
See notes to financial statements.
s t a t e m e n t s o f c h a n g e s i n n e t a s s e t s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Year Ended Year Ended
June 30, 1997 June 30, 1996
---------------
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $42,541,545 $43,559,816
Net realized gain(loss) on investments sold 539,071 (69,749)
Increase(Decrease) in unrealized
appreciation of investments 5,502,227 (1,545,063)
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 48,582,843 41,945,004
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (40,902,258) (43,028,755)
Class B Shares -- (32,246)
Class C Shares (778,574) (498,815)
Class I Shares (860,713) --
FUND SHARE TRANSACTIONS-- (Note 4)
Class A Shares (86,054,790) (12,641,152)
Class B Shares -- (2,834,331)
Class C Shares 3,430,304 9,590,852
Class I Shares 35,647,049 --
NET DECREASE IN NET ASSETS (40,936,139) (7,499,443)
NET ASSETS:
Beginning of year 933,778,757 941,278,200
End of year $ 892,842,618 $ 933,778,757
See notes to financial statements.
n o t e s t o f i n a n c i a l s t a t e m e n t s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Note 1 - ORGANIZATION
Thornburg Limited Term Municipal Fund, Inc. (the "Fund") was incorporated in
Maryland on February 14, 1984. The Fund was reorganized in 1986 as a series
investment company with separate investment portfolios. The current portfolios
are as follows: National Portfolio (the "Portfolio") and California Portfolio.
The Fund is an open-end diversified management investment company, registered
under the Investment Company Act of 1940, as amended. The primary investment
objective of the Fund is to obtain as high a level of current income exempt from
federal income tax as is consistent with preservation of capital.
The Fund currently offers three classes of shares of beneficial interest in the
portfolio, Class A, Class C and Institutional Class (Class I) shares. Each class
of shares of the Portfolio represents an interest in the same portfolio of
investments of the Fund, except that (i) Class A shares are sold subject to a
front-end sales charge collected at the time the shares are purchased and bear a
service fee, (ii) Class C shares are sold at net asset value without a sales
charge at the time of purchase, but are subject to a contingent deferred sales
charge upon redemption within one year, and bear both a service fee and a
distribution fee, (iii) Class I shares are sold at net asset value without a
sales charge at the time of purchase, and (iv) the respective classes have
different reinvestment privileges. Additionally, the Portfolio may allocate
among its classes certain expenses, to the extent allowable to specific classes,
including transfer agent fees, government registration fees, certain printing
and postage costs, and administrative and legal expenses. Currently, class
specific expenses of the Portfolio are limited to distribution fees,
administrative fees, registration fees and transfer agent expenses.
Note 2 - SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies of the
Fund are as follows:
Valuation of Investments: In determining the net asset value of the Portfolio,
the Fund utilizes an independent pricing service approved by the Board of
Directors. Debt investment securities have a primary market over the counter and
are valued on the basis of valuations furnished by the pricing service. The
pricing service values portfolio securities at quoted bid prices or the yield
equivalents when quotations are not readily available. Securities for which
quotations are not readily available are valued at fair value as determined by
the pricing service using methods which include consideration of yields or
prices of municipal obligations of comparable quality, type of issue, coupon,
maturity and rating; indications as to value from dealers and general market
conditions. The valuation procedures used by the pricing service and the
portfolio valuations received by the Portfolio are reviewed by the officers of
the Fund under the general supervision of the Board of Directors. Short-term
obligations having remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.
Federal Income Taxes: It is the policy of the Fund to comply with the provisions
of the Internal Revenue Code applicable to "regulated investment companies" and
to distribute all of its taxable (if any) and tax exempt income to its
shareholders. Therefore, no provision for Federal income tax is required.
Dividends paid by the Portfolio for the year ended June 30, 1997 represent
exempt interest dividends which are excludable by shareholders from gross income
for Federal income tax purposes.
When-Issued and Delayed Delivery Transactions: The Fund may engage in
when-issued or delayed delivery transactions. To the extent the Portfolio
engages in such transactions, it will do so for the purpose of acquiring
portfolio securities consistent with its investment objectives and not for the
purpose of investment leverage or to speculate on interest rate changes. At the
time the Fund makes a commitment to purchase a security for the portfolio on a
when-issued basis, it will record the transaction and reflect the value in
determining its net asset value. When effecting such transactions, assets of the
Portfolio of an amount sufficient to make payment for the portfolio securities
to be purchased will be segregated on the Portfolio's records on the trade date.
Securities purchased on a when-issued or delayed delivery basis do not earn
interest until the settlement date.
Dividends: Net investment income of the Portfolio is declared daily as a
dividend on shares for which the Fund has received payment. Dividends are paid
monthly and are reinvested in additional shares of the Portfolio at net asset
value per share at the close of business on the dividend payment date, or at the
shareholder's option, paid in cash. Net capital gains, to the extent available,
will be distributed annually.
General: Securities transactions are accounted for on a trade date basis.
Interest income is accrued as earned. Premiums and original issue discounts
on securities purchased are amortized to call dates or maturity dates of the
respective securities. Realized gains and losses from the sale of securities
are recorded on an identified cost basis.
Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
Note 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an investment advisory agreement, Thornburg Management Company, Inc.
(the "Adviser") serves as the investment adviser and performs services for which
the fees are payable at the end of each month. For the year ending June 30,
1997, these fees were payable at annual rates ranging from 1/2 of 1% to 9/40 of
1% of the average daily net assets of the Portfolio. Also, the Portfolio entered
into an administrative service Agreement with the Adviser, whereby the Adviser
will perform certain administrative services for the shareholders of each class
of the Portfolio's shares, and for which fees will be payable at an annual rate
of up to 1/8 of 1% of the average daily net assets attributable to each class of
shares.
In the event normal operating expenses of the Portfolio, exclusive of brokerage
commissions, taxes, interest, and extraordinary expenses, exceed the limits
prescribed by any state in which the Portfolio's shares are qualified for sale,
the Adviser will reimburse the Portfolio for such excess. No such reimbursement
was required as a result of this limitation. For the year ended June 30, 1997,
the Adviser voluntarily reimbursed certain operating expenses amounting to
$49,011.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Portfolio shares. For the
year ended June 30, 1997, the Distributor earned commissions aggregating
$110,311 from the sale of Class A shares, and collected contingent deferred
sales charges aggregating $12,064 from redemptions of Class C shares of the
Portfolio.
Pursuant to a Service Plan under Rule 12b-1 of the Investment Company Act of
1940, the Fund may reimburse to the Adviser amounts not to exceed .25 of 1% per
annum of the average net assets attributable to each class of shares of the
Portfolio for payments made by the Adviser to securities dealers and other
financial institutions to obtain various shareholder related services. The
Adviser may pay out of its own funds additional expenses for distribution of the
Portfolio's shares.
The Fund has also adopted a Distribution Plan pursuant to Rule 12b-1, applicable
only to the Portfolio's Class C shares under which the Fund compensates the
Distributor for services in promoting the sale of Class C shares of the
Portfolio at an annual rate of up to .75% of the average daily net assets
attributable to Class C shares. Total fees incurred by each class of shares of
the Portfolio under their respective service and distribution plans and fees
waived by the Distributor for the year ended June 30, 1997, are set forth in the
statement of operations.
Certain officers and directors of the Fund are also officers and/or directors of
the Adviser and Distributor. The compensation of unaffiliated directors of the
Fund is borne by the Fund.
Note 4 - SHARES OF BENEFICIAL INTEREST
At June 30, 1997 there were 1,000,000,000 shares of the Fund (including
700,000,000 for the Portfolio) of $.001 par value common stock authorized, and
capital paid in for the Portfolio aggregated $871,635,776. Transactions in
shares of beneficial interest were as follows:
Year Ended Year Ended
June 30, 1997 June 30, 1996
------------ ------------
Class A Shares Shares Amount Shares Amount
Shares sold 8,168,627 $109,492,186 10,705,592 $144,174,891
Shares issued to shareholders
in reinvestment of
distributions 2,018,378 27,066,503 2,128,377 28,634,345
Shares repurchased (16,605,536)(222,613,479) (13,781,715)(185,450,388)
Net Decrease (6,418,531)($86,054,790) (947,746)($12,641,152)
Class B Shares
Shares sold -- -- 46,556 $ 623,905
Shares issued to shareholders
in reinvestment of
distributions -- -- 1,871 25,134
Shares repurchased -- -- (259,380) (3,483,370)
Net Decrease -- -- (210,953)($ 2,834,331)
Class C Shares
Shares sold 783,570 $ 10,526,674 1,097,905 $ 14,807,056
Shares issued to shareholders
in reinvestment of
distributions 48,023 645,052 31,748 427,775
Shares repurchased (577,361) (7,741,422) (420,008) (5,643,979)
Net Increase 254,232 $ 3,430,304 709,645 $ 9,590,852
Class I Shares
Shares sold 2,915,809 $ 39,082,796 -- --
Shares issued to shareholders
in reinvestment of
distributions 38,699 518,582 -- --
Shares repurchased (295,052) (3,954,329) -- --
Net Increase 2,659,456 $ 35,647,049 -- --
Note 5 - INVESTMENT SECURITY TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of the
Portfolio other than short-term securities aggregated $213,288,552 and
$240,878,603, respectively. The cost of investments for Federal income tax
purposes is $880,810,205. At June 30, 1997, the aggregate gross unrealized
appreciation and depreciation, based on cost for Federal income tax purposes
were $26,355,298 and $976,203 respectively.
Accumulated net realized losses from security transactions included in net
assets at June 30, 1997 aggregated $4,763,292.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $4,172,253 from prior fiscal years available to offset future
realized capital gains. To the extent that such carryforwards are used, no
capital gains distributions will be made. The carryforwards expire as follows:
June 30, 1999 - $97,131 June 30, 2002 - $807,085, June 30, 2003 - $602,103, and
June 30, 2004 - $2,665,934.
f i n a n c i a l h i g h l i g h t s
<TABLE>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
<CAPTION>
Per share operating performance
(for a share outstanding
throughout the year)
<S> <C> <C> <C> <C> <C>
Year Ended June 30,
1997 1996 1995 1994 1993
Class of Shares: A A A A A
Net asset value, beginning of year $13.35 $13.37 $13.27 $13.59 $13.09
Income from investment operations:
Net investment income .62 .63 .64 .63 .68
Net realized and unrealized
gain (loss) on investments .09 (.02) .10 (.32) .50
Total from investment operations .71 .61 .74 .31 1.18
Less dividends from:
Net investment income (.62) (.63) (.64) (.63) (.68)
Change in net asset value .09 (.02) .10 (.32) .50
Net asset value, end of year $13.44 $13.35 $13.37 $13.27 $13.59
Total return (a) 5.46% 4.60% 5.76% 2.25% 9.24%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.65% 4.66% 4.86% 4.60% 5.03%
Expenses .96% .97% .97% .95% 1.01%
Portfolio turnover rate 23.39% 20.60% 23.02% 15.63% 19.30%
Net assets
at end of year (000) $837,621 $917,831 $931,987 $1,030,293 $895,500
<FN>
(a) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
</FN>
</TABLE>
<TABLE>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
<CAPTION>
Per share operating performance
(for a share outstanding
throughout the period) Period from
Period Ended Period Ended Sept. 1, 1994 (a)
June 30, June 30, to June 30,
1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Class of Shares: C I** B* C B C
Net asset value, beginning of period $13.37 $13.27 $13.38 $13.40 $13.29 $13.29
Income from investment operations:
Net investment income .57 .66 .13 .57 .46 .46
Net realized and unrealized
gain (loss) on investments .09 .17 .05 (.03) .09 .11
Total from investment operations .66 .83 .18 .54 .55 .57
Less dividends from:
Net investment income (.57) (.66) (.13) (.57) (.46) (.46)
Change in net asset value .09 .17 .05 (.03) .09 .11
Net asset value, end of period $13.46 $13.44 $13.43 $13.37 $13.38 $13.40
Total return (b) 5.02% 6.42% 1.56% 4.05% 4.14% 4.25%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.24% 5.01%(c) 4.17%(c) 4.22% 4.24%(c) 4.21%(c)
Expenses, after expense reductions 1.38% .60%(c) 1.59%(c) 1.41% 1.57%(c) 1.60%(c)
Expenses, before expense reductions 1.86% .79%(c) 2.01%(c) 1.63% 2.30%(c) 1.84%(c)
Portfolio turnover rate 23.39% 23.39% 20.60% 20.60% 23.02% 23.02%
Net assets
at end of period (000) $19,475 $35,746 $0 $15,948 $2,823 $6,469
<FN>
(a) Commencement of sales of Class B and Class C shares.
(b) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year. The total return for Class B
Shares reflects a period of 90 days for 1996.
(c) Annualized.
* Period from July 1, 1995 to September 28, 1995, on which date all Class B
shares were converted into Class A shares. ** Sales of Class I shares commenced
on July 5, 1996.
</FN>
</TABLE>
<TABLE>
s c h e d u l e o f i n v e s t m e n t s
<CAPTION>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
June 30, 1997 CUSIPS: Class A - 532-723-103, Class C - 532-723-509, Class I -
532-723-806 NASDAQ Symbols: Class A - LTMFX, Class C -LTMCX (Proposed), Class I
- - LTMIX
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
<S> <C> <C> <C>
Alabama (1.49%)
1,675,000 Alabama A&M University Housing & General Fee Revenue Series 1992, 5.90%
due 11/1/02 (Living & Learning Center Project; Insured: MBIA) Aaa/AAA $1,783,389
540,000 Alabama Higher Education Loan Corporation Student Loan Revenue
Refunding Series 1994-A, 4.70% due 9/1/97 (Insured: FSA) Aaa/AAA 540,626
1,000,000 Alabama Water Pollution Control Authority Series 1991, 6.45% due 8/15/02
(Insured: AMBAC) Aaa/AAA 1,071,830
2,500,000 Birmingham Special Care Facility Finance Authority Revenue Series 1990,
7.625% due 12/1/10, put 12/1/00 (Methodist Homes for the Aging Project;
LOC: South Trust Bank) A1/NR 2,686,725
1,550,000 Birmingham Jefferson Civic Center Authority Special Tax Series 1989,
7.20% due 1/1/01 A/A+ 1,641,946
1,320,000 Birmingham Jefferson Civic Center Authority Special Tax, 6.90% due 1/1/98 A/A+ 1,339,061
1,495,000 Houston County Hospital Board Revenue Refunding Series 1984, 7.625% due 4/1/07, pre-refunded
2/15/02 @ 100 (South East Alabama Medical Center Project; Insured: MBIA) Aaa/AAA 1,579,258
1,695,000 Montgomery County Revenue Warrants Series 1992, 6.625% due 4/1/02 NR/A 1,852,177
965,000 Morgan County-Decatur Healthcare Revenue, 5.40% due 3/1/00 (Decatur General Hospital
Project; Insured: Connie Lee) NR/AAA 988,507
Alaska (0.95%)
2,500,000 North Slope Borough G.O. Refunding Series 1992-A, 5.80% due 6/30/02
(Insured: MBIA) Aaa/AAA 2,640,650
7,000,000 North Slope Borough G.O. Capital Appreciation Series B, 0% due 1/1/01
(Insured: MBIA) Aaa/AAA 5,936,560
Arizona (3.46%)
5,250,000 Arizona Educational Loan Marketing Corporation Revenue, Series 1992-A,
6.40% due 3/1/98 A/NR 5,333,475
1,250,000 Arizona Educational Loan Marketing Corporation Revenue, Series 1992-A,
6.70% due 3/1/00 A/NR 1,301,738
1,600,000 Arizona State Certificate of Participation Series 1994-A, 5.45% due 5/1/98
(Insured: AMBAC) Aaa/AAA 1,619,776
2,320,000 Arizona Municipal Finance Program Certificate of Participation Series 15, 8.65% due 8/1/04
(Flagstaff Project; Insured: BIG) Aaa/AAA 2,878,285
1,000,000 Maricopa Cnty Certificate of Participation, 5.625% due 6/1/00 Baa1/BBB+ 1,017,010
1,255,000 Maricopa Hospital District General Obligation Series A,
5.00% due 6/1/98 (Insured: FGIC) Aaa/AAA 1,267,701
200,000 Maricopa County Pollution Control Revenue Series A, 4.00% due 5/1/19, put 7/1/97
(daily demand notes) (Palo Verde Project; Morgan Guaranty) P-1/A-1+ 200,000
1,550,000 Maricopa County School District # 8 Series 1992, 0% due 7/1/99
(Osborn Elementary School District Project) A1/A 1,421,722
3,800,000 Maricopa School District # 41 - Gilbert General Obligation, 0%
due 7/1/01 (Insured: FGIC) Aaa/AAA 3,161,372
2,000,000 Maricopa County Unified School District # 41 Refunding, 0% due 7/1/97
(Insured: FGIC) Aaa/AAA 1,999,780
2,000,000 Maricopa County/Paradise Valley Unified School District General Obligation
Refunding Series 1992, 0% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,663,880
2,980,000 Maricopa County Unified School District # 97, 0% due 7/1/97 (Insured: FGIC) Aaa/AAA 2,979,672
1,390,000 Maricopa County Unified School District # 97, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 1,335,748
710,000 Mohave County Certificate of Participation, 4.90% due 7/1/98 NR/BBB 710,895
730,000 Mohave County Certificate of Participation, 5.10% due 7/1/99 NR/BBB 726,306
2,000,000 Pima County/Tucson Unified School District # 1 School Improvement Series 1992-D,
5.50% due 7/1/02 (Insured: FGIC) Aaa/AAA 2,095,080
40,951 Scottsdale IDA Hospital Revenue Refunding Series A, Amortizing Coupon
M-COATES, 7.50% final due 9/1/97 (Scottsdale Memorial Hospital Project) Aaa*/AAA* 42,220
175,000 South Tucson Municipal Property Corporation Series 1990, 8.20% due 6/1/99 NR/BB 179,905
175,000 South Tucson Municipal Property Corporation Series 1990, 8.25% due 6/1/00 NR/BB 181,718
1,200,000 Tucson Water System Revenue Refunding Series 1992, 5.80% due 7/1/99 A1/A+ 1,237,212
Arkansas (0.09%)
1,000,000 Arkansas State General Obligation College Savings, 0% due 6/1/02 Aa/AA 791,120
California (14.11%)
1,000,000 California Health Facilities Financing Authority Series A, 7.40% due 7/1/01
(Episcopal Homes Project; Insured: California Mortgage Insurance) NR/A 1,049,470
7,440,000 California Health Facilities Financing Authority Series 1991-D, 6.50%
pre-refunded 7/1/16 @ 102 (Catholic Health Care Project; Insured: AMBAC) Aaa/AAA 8,167,334
1,125,000 California Public Capital Improvement Finance Authority Revenue Series
1988-E, 8.25% due 3/1/98 Baa/NR 1,151,426
2,000,000 California State General Obligation, 6.50% due 10/1/99 A1/A 2,104,340
1,055,000 California Statewide Communities Development Authority Insured Health
Facilities Revenue Certificate of Participation Series 1992, 6.40% due 5/1/02
(Eskaton Properties Inc. Phase II Project) NR/A 1,091,577
1,100,000 California Statewide Communities Development Authority Certificate of
Participation, 3.11% (inverse floater) due 1/1/02 (Motion Picture & Television
Fund Project; Insured: AMBAC) Aaa/AAA 1,005,466
5,000,000 California Statewide Communities Development Tax and Revenue Anticipation Notes Series B,
4.75% due 9/30/98 (Insured: FSA) Aaa/AAA 5,041,050
1,000,000 Escondido Multifamily Housing Revenue Refunding Bonds Series 1997-A, 5.40% due 1/1/27,
put 7/1/07 (Terrace Gardens Project; Collateralized: FNMA) NR/AAA 1,011,560
910,000 Fairfield-Suisun Sewer District Revenue Refunding Series A, 6.50% due 5/1/03
(Insued: MBIA) Aaa/AAA 990,089
7,730,000 Glendale Hospital Revenue Series 1994, 7.625% due 1/1/05
(Verdugo Hills Project; Surety Bond: Industrial Indemnity) NR/A+ 8,445,875
1,000,000 Lancaster Redevelopment Agency Lease Revenue Notes Series 1995, 4.90% due 12/1/00
(LOC: Sumitomo Bank / Dai Ichi Kangyo Bank) NR/SP1 996,320
5,710,000 Los Angeles Water and Power, 7.10% due 1/15/31,
crossover refunded 1/15/01 @102 Aa/AA- 6,223,614
1,500,000 Los Angeles Unified School District Certificate of Participation, 6.20% due 6/1/01
(Dr. Francisco Bravo Medical Project) A/A- 1,582,365
1,400,000 Los Angeles Wastewater System Revenue, 6.80% pre-refunded 8/1/19 @102 AAA/A 1,471,512
1,485,000 Los Angeles County Health Facilities Authority Rev., 7.20% due 3/1/01
refunded 3/1/98 (Civic View Medical Center Project) AAA+/A 1,546,509
1,050,000 Los Angeles County Certificate of Participation Series B, 5.50% due 7/1/98 A1/A+ 1,066,160
1,000,000 Los Angeles Transit Finance Corporation Certificate of Participation
Series 1992-B, 5.70% due 7/1/99 A1/A+ 1,025,240
1,995,000 Los Angeles Transportation Commission Certificate of Participation,
5.90% due 7/1/00 A1/A+ 2,074,102
2,500,000 Los Angeles Transportation Commission Certificate of Participation,
6.00% due 7/1/01 A1/A+ 2,625,700
1,500,000 MSR Public Power Agency Series F, 5.45% due 7/1/01
(San Juan Project; Insured: AMBAC) Aaa/AAA 1,565,055
265,000 New Haven Unified School District Certificate of Participation,
7.00% due 12/1/99 NR/A- 278,449
2,500,000 Orange County Refunding Recovery, 5.10% due 6/1/02 (Insured: MBIA) Aaa/AAA 2,571,000
3,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 3,100,080
7,600,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 8,423,384
5,200,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 5,805,488
1,000,000 Orange County Local Transportation Measure M Sales Tax Revenue,
5.50% due 2/15/01 Aa/AA 1,038,130
8,300,000 Orange County Local Transportation Authority Sales Tax Revenue, 2.60%
(inverse floater) due 2/15/99 (Insured: FGIC) Aaa/AAA 8,086,524
13,000,000 Orange County Recovery Certificate of Participation Series A,
5.50% due 7/1/02 (Insured: MBIA) Aaa/AAA 13,600,210
2,000,000 Orange County Special Financing Authority Teeter Plan Revenue Series E, 6.15%
due 11/1/14, put 11/1/99 (LOC: Industrial Bank of Japan) A1/A+ 2,066,440
5,000,000 Orange County Special Financing Authority Teeter Plan Revenue Series E, 6.35%
due 11/1/14, put 11/1/01 (LOC: Industrial Bank of Japan) A1/A+ 5,293,750
2,475,000 Oxnard Harbor District Revenue Refunding, 6.60% due 8/1/00
(Insured: Capital Guaranty) Aaa/AAA 2,592,637
2,830,000 Redwood City Multifamily Housing Revenue Series 1985-B, 5.20% due 10/1/08,
put 10/1/00 (Redwood Shores Apartment Project; LOC: Continental Casualty) NR/A+ 2,848,876
1,725,000 San Francisco Airport Improvement Corporation Lease Revenue Bond, 7.875% due 7/1/99
(United Airlines Project) Escrowed to Maturity Aaa/AAA 1,748,236
2,100,000 San Joaquin County Certificate of Participation, 5.50% due 9/1/99
(General Hospital Project) A/A- 2,131,080
2,000,000 San Marcos PFA Tax Allocation Series 1992-A, 5.60% due 1/1/01
(Insured: Capital Guaranty) Escrowed to Maturity Aaa/AAA 2,089,800
4,180,000 Santa Margarita / Dana Point Authority Revenue Improvement District Series A,
9.50% due 8/1/03 (Insured: MBIA) Aaa/AAA 5,244,897
6,035,000 Simi Valley Community Development Agency Certificate of Participation,
6.05% due 10/1/18, mandatory put 10/1/99 (Simi Valley Business Center
Project; Insured: New England Mutual Life) NR/AA- 6,171,753
1,000,000 Sonoma County Certificate of Participation Public Works Improvement Program,
5.875% due 8/1/04 (Integrated Waste Project) NR/A+ 1,038,110
2,000,000 Southgate Recreation & Park District Certificate of Participation, 5.15% due 10/1/21, put
10/1/01 (Wildhawk Golf Club Project; LOC: U.S. Bank of California) NR/A+ 2,061,380
510,000 University of California Revenue Series A, 11.00% due 9/1/99 NR/A- 577,611
780,000 University of California Revenue Series A, 6.30% due 9/1/00 NR/A- 820,513
Colorado (5.24%)
500,000 Arvada Limited Sales & Use Tax Series 1991, 6.50% due 6/1/01,
Escrowed to Maturity Aaa*/NR 535,730
2,355,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 5.90%
due 3/1/01 (Insured: MBIA) Aaa/AAA 2,466,274
1,465,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 6.00%
due 3/1/02 (Insured: MBIA) Aaa/AAA 1,534,104
10,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 5/1/98 NR/CCC 9,686
385,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/98 NR/CCC 369,138
390,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/99 NR/CCC 365,976
490,000 Castle Pines Metropolitan District General Obligation Refunding & Improvement,
7.50% due 12/1/99 (Insured: FSA) Aaa/AAA 526,049
2,000,000 Colorado Housing Finance Authority Capital Appreciation Series A,
0% due 11/1/01 Aa/AA+ 1,571,080
785,000 Colorado Student Loan Authority Revenue, 6.625% due 6/1/99 A/NR 813,558
1,240,000 Colorado Student Loan Revenue Series 1992-B, 6.20% due 9/1/98 A/NR 1,267,429
855,000 Colorado Student Loan Revenue Series 1992-B, 6.40% due 9/1/99 A/NR 885,472
3,405,000 Colorado Student Loan Revenue Series 1992-B, 6.55% due 12/1/02 A/NR 3,589,926
2,490,000 Colorado Student Obligation Bond Authority Revenue Series 1992-F,
5.90% due 9/1/02 A/NR 2,557,703
3,230,000 Colorado Student Obligation Bond Authority Revenue Series 1994-L,
5.90% due 9/1/00 A/NR 3,331,810
890,000 Denver Housing Corporation Revenue, 7.20% due 10/1/04 (HUD Section 8) A/NR 903,386
1,080,000 Denver City & County Industrial Development Revenue, 7.40% due 3/1/03 NR/BBB+ 1,167,178
(University of Denver Project)
1,155,000 Denver City & County Industrial Development Revenue, 7.50% due 3/1/04
(University of Denver Project) NR/BBB+ 1,247,816
1,185,000 Denver City & County Industrial Development Revenue, 7.60% due 3/1/05
(University of Denver Project) NR/BBB+ 1,288,024
3,500,000 Denver City & County Industrial Development Revenue, 5.375% due 7/1/11, put 7/1/00
(Translogic Corporation Project; LOC: Commerzbank) NR/AA- 3,550,785
380,000 Denver City & County Industrial Development Revenue Series 1985, 6.40% due 12/1/10,
put 6/1/99 (4999 Ltd. Project; LOC: Central Bank National Association) NR/A+ 396,887
2,335,000 Denver School District #1 Certificate of Participation Series 1996, 5.25% due 12/15/01
(Insured: AMBAC) Aaa/AAA 2,409,743
2,460,000 Denver School District #1 Certificate of Participation Series 1996, 5.50% due 12/15/02
(Insured: AMBAC) Aaa/AAA 2,571,782
2,175,000 Highlands Ranch Metro District #2 General Obligation, 6.00% due 6/15/04
(Insured: FSA) Aaa/AAA 2,345,129
830,000 Highlands Ranch Metro District #1 Refunding, 5.00% due 9/01/02
(Insured: AMBAC) Aaa/AAA 849,281
560,000 Highlands Ranch Metro District #1 Refunding, 5.25% due 9/01/03
(Insured: AMBAC) Aaa/AAA 579,320
2,000,000 Summit County Recreational Facilities Revenue, 5.80% due 4/1/17, put 10/1/98
(Copper Mountain Project; LOC: Daiwa Bank) NR/BBB 2,007,100
1,000,000 University of Colorado Certificate of Participation, 7.10% due
12/1/99, pre-refunded 12/1/98 A2/AAA* 1,060,490
1,750,000 Westminster MFHR, 7.75% due 12/1/07, put 12/1/98 (Green Lawn Apartments
Project; Insured: FGIC) Aaa/AAA 1,777,930
2,725,000 Westminster Multifamily Housing Revenue series 1995, 5.95% due 9/1/15,
put 9/1/06 (Semper Village Apartments; Insured A.X.A. Re/U.K.) NR/AA 2,822,719
1,245,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/00 NR/AA 1,287,990
1,350,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/01 NR/AA 1,404,054
Connecticut (2.41%)
1,685,000 Bridgeport General Obligation, 6.00% due 3/1/05 (Insured: AMBAC) Aaa/AAA 1,812,217
1,325,000 Bridgeport General Obligation, 6.00% due 3/1/06 (Insured: AMBAC) Aaa/AAA 1,430,722
1,710,000 Bristol Resource Recovery Facility Solid Waste
Revenue Refunding Series 1995, 5.20% due 7/1/97
(Ogden Martin of Bristol Project) A/NR 1,710,034
2,290,000 Bristol Resource Recovery Facility Solid Waste
Revenue Refunding Series 1995, 5.40% due 7/1/98 (Ogden Martin of
Bristol Project) A/NR 2,306,030
1,045,000 Capital Region Education Council, 6.375% due 10/15/05 NR/BBB 1,068,136
1,000,000 Connecticut Housing Finance
Authority Series 1988-B, 6.90% due 11/15/98 Aa/AA 1,020,280
390,000 Connecticut Housing Finance Authority Series B-1, 7.55% due 11/15/08
(LOC: FHA/VA) Aa/AA 393,588
700,000 Connecticut Resource Recovery Authority, 7.125% due 11/15/08 (Wallingford Project;
LOC: National Westminister) Aa2/AA 716,688
5,000,000 Connecticut Unemployment Compensation Advance Fund Refunding Revenue Series 1996-A,
5.50% due 5/15/01 (Insured: AMBAC) Aaa/AAA 5,199,150
1,000,000 Connecticut Special Tax Obligation Revenue Series C, 7.40%
due 10/1/04, pre-refunded 10/1/98 NR/AAA 1,061,230
5,540,000 Connecticut State Special Tax Obligation Series 1989-B, 0% due 7/1/99
(Transportation Infrastructure Project; Insured: AMBAC) Aaa/AAA 5,085,498
Delaware (0.18%)
1,500,000 Delaware Solid Waste System Revenue, 6.00% due 7/1/03 (Insured: MBIA) Aaa/AAA 1,607,445
District of Columbia (1.67%)
1,000,000 District of Columbia General Obligation 1988 Series A, 7.65%
due 12/1/03 (Insured: MBIA) Aaa/AAA 1,067,770
1,505,000 District of Columbia General Obligation Capital Appreciation Refunding,
0% due 6/1/02 (Insured: MBIA) Aaa/AAA 1,188,348
1,255,000 District of Columbia General Obligation 1994 Series A-3, 4.90% due 6/1/00 Ba/B 1,249,265
1,000,000 District of Coumbia Series B, 7.10% due 6/1/00 (Insured: FSA) Aaa/AAA 1,069,660
1,500,000 District of Columbia General Obligation Refunding Series A, 5.30% due 6/1/00 Ba/B 1,509,225
2,000,000 District of Columbia General Obligation Refunding Series A, 5.50% due 6/1/01
(Insured: FSA) Aaa/AAA 2,062,360
4,000,000 District of Columbia Certificate of Participation Series 1993, 6.875%
due 1/1/03 NR/B- 4,181,000
1,000,000 District of Columbia Revenue, 6.00% due 7/15/03
(Children's Hospital Project; Insured: FGIC) Aaa/AAA 1,057,430
1,330,000 District of Columbia Revenue, 6.00% due 8/15/05
(Medlantic Healthcare Project; Insured: MBIA) Aaa/AAA 1,426,079
275,000 District of Columbia Association of American Medical College, 7.20%
due 2/15/01 NR/AA- 298,565
25,000 District of Columbia Health Revenue Assoc. of American Medical Colleges,
0% due 2/15/02 NR/AA- 18,706
Florida (2.78%)
490,000 Brevard County Tourist Development Tax Revenue, 6.325% due 3/1/03 (Florida Marlins'
Training Facilities) NR/NR 505,881
620,000 Cape Coral Special Assessment, 6.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 635,023
3,000,000 Collier County School Board Certificates of Participation, 5.50%
due 2/15/03 (Insured: FSA) Aaa/AAA 3,111,150
2,000,000 Dade County School Board Certificates of Participation, 5.75% due 8/1/02
(Insured: AMBAC) Aaa/AAA 2,112,440
5,000,000 Dade County Solid Waste System Special Obligation Revenue, 5.25% due 10/1/03
(Insured: AMBAC) Aaa/AAA 5,147,100
1,525,000 Escambia County Health Facilities Series A, 8.70% due 10/01/14, partially
pre-refunded 10/01/98 (Baptist Hospital Project) NR/BBB+ 1,627,587
3,000,000 Florida Housing Finance Authority Multifamily Housing Revenue, 5.10% due 4/1/13, put
4/1/02 (Park Colony Project; LOC: Mellon Bank) NR/A+ 3,047,490
1,940,000 Florida Housing Finance Authority Series 1987, 4.85% due 2/1/08, put 2/1/01
(Insured: Connecticut General) NR/AA 1,944,598
1,070,000 Florida Housing Finance Authority Series 1983-I, 4.85% due 12/1/05, put 12/1/99
(Wood Forest Project; LOC: Connecticut General) NR/AA 1,075,789
330,000 Florida Housing Finance Authority Capital Appreciation Residential
Mortgage Revenue, 0% due 7/15/01 (LOC: Citibank) NR/AA 216,299
1,500,000 Florida Housing Finance Agency Revenue, 6.25% due 12/1/06
(Hammocks Place Project) NR/AAA 1,564,875
1,000,000 Lee County School Board Certificate of Participation, 6.20% due 8/1/00
(Insured: FSA) Aaa/AAA 1,045,290
1,195,000 Lee County School Board Certificate of Participation, 6.30% due 8/1/01
(Insured: FSA) Aaa/AAA 1,278,554
415,000 Martin County Combined Special Assessment Series 1990-A, 8.125% due 3/1/01 NR/NR 451,134
445,000 North Broward Hospital Revenue, 5.80% due 1/1/00 (Insured: MBIA) Aaa/AAA 460,571
940,000 Palm Beach County Industrial Development Revenue Series 1996, 6.00% due 12/1/06
(Lourdes-Noreen McKeen Residence for Geriatric Care Project;
LOC: Allied Irish Bank) NR/A+ 981,868
Georgia (0.28%)
1,590,000 Burke County Development Authority Pollution Control Revenue, 6.25% due 1/1/03
(Insured: MBIA) Aaa/AAA 1,706,690
800,000 Gwinnett County Dev Auth Rev, 6.95% due 6/1/01 (Mead Corp. Project)
Escrowed to Maurity NR/AAA* 839,976
Hawaii (1.16%)
6,000,000 Hawaii State Refunding Series CB, 5.00% due 1/1/00 Aa/AA 6,094,380
2,000,000 Hawaii Airport System Revenue Refunding, 5.10% due 7/1/99 (Insured: MBIA) Aaa/AAA 2,034,220
840,000 Hawaii State Department Budget & Finance Special Purpose Mortgage
Revenue, 7.125% due 7/1/98 (Wahiawa General Hospital Project) NR/BBB- 855,548
1,500,000 Hawaii State Department Budget & Finance Special Purpose Mortgage
Revenue, 5.70% due 7/1/03 (Kapiolani Health Care System Project) A/A 1,542,135
Idaho (0.62%)
510,714 Boise Industrial Development Corporation IDRB Series 1985, 10.816% due 8/29/00
(Associated Dairies Project; Guaranteed: Chemical Bank) A2*/A* 510,878
4,980,000 Idaho Falls Electric Revenue Refunding, 0% due 4/1/00 (Insured: FGIC) Aaa/AAA 4,404,661
715,000 Idaho Student Loan Marketing Association Refunding Revenue Series 1992,
6.40% due 10/1/99 NR/NR 726,719
Illinois (1.77%)
3,350,000 Cook County Community Unified School District #401 Series 1996, 0% due 12/1/03
(Insured: FSA) Aaa/AAA 2,453,641
2,000,000 Cook County Community College District 508, 8.40% due 1/1/01 (Insured: FGIC)Aaa/AAA 2,249,220
1,800,000 Cook County Community College District 508 COP, 8.50% due 1/1/02
(Insured: FGIC)Aaa/AAA2,079,828
1,000,000 Hoffman Estates Tax Increment Revenue, 7.00% due 11/15/97 (Hoffman
Estates Economic Development Project; LOC: Union Bank of Switzerland) Aaa/AAA 1,010,800
925,000 Illinois Health Facilities Authority Revenue, 5.25% due 5/1/99
(Galesburg Cottage Hospital Project; LOC: Asset Guaranty) Baaz/AA 936,387
2,000,000 Illinois Health Facilities Authority Revenue Series 1992, 7.00% due 7/1/02
(Trinity Medical Center Project) Baa1/NR 2,068,260
1,000,000 Illinois Health Facilities Authority Revenue Series 1993-A, 7.875% due 8/15/05
(Community Provider Pooled Loan Program Project) NR/NR 1,046,730
2,445,000 Naperville City Du Page & Will Counties Economic Development Revenue, 6.10% due 5/1/08
(Hospital and Healthsystem Association Project; LOC: American National) NR/AA- 2,606,052
1,575,000 Winnebago & Boone Counties School District # 205 G.O., 7.00% due 2/1/98
(Insured: FSA) NR/AAA 1,604,279
Indiana (3.70%)
1,195,000 Columbus School Building Corporation, 5.50% due 1/15/01 (Insured: MBIA) Aaa/AAA 1,236,060
1,255,000 Columbus School Building Corporation, 5.50% due 1/15/02 (Insured: MBIA) Aaa/AAA 1,302,878
895,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 6/15/99 NR/NR 921,036
570,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 12/15/99 NR/NR 590,571
2,305,000 Hammond Multi-School Building Corp First Mortgage Refunding Bonds Series 1997,
6.00% due 7/15/08 (Lake County) NR/A 2,420,803
2,000,000 Indiana Bond Bank Series B, 7.25% due 2/1/01 (Special Loan Program) A/A 2,069,500
1,120,000 Indiana Bond Bank Special Program Series 1992-B, 5.60% due 8/1/99 NR/A 1,148,930
1,000,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A,
5.30% due 2/1/99 NR/A 1,015,440
2,640,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A,
5.50% due 2/1/00 NR/A 2,706,898
3,000,000 Indiana Health Facilities Hospital Revenue, 8.30% due 8/15/20, pre-refunded 8/15/00 @102
(Hancock Memorial Project) NR/AAA 3,384,990
1,500,000 Indiana Health Facilities Revenue, 5.55% due 7/1/01
(Marion General Hospital Project; Insured: MBIA) Aaa/AAA 1,556,550
500,000 Indianapolis Economic Development Revenue, 8.625% due 12/1/07, put 12/1/97
(Suncrest Project; FNMA Collateralized) NR/AAA 509,695
6,200,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev Series 1996,
6.00% due 1/10/01 NR/NR 6,259,768
1,220,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/05 Aa/AA- 817,876
1,240,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/06 Aa/AA- 787,301
2,200,000 Indianapolis Resource Recovery Revenue, 6.75% due 12/1/04
(Ogden Martin System, Inc. project; Insured: AMBAC) Aaa/AAA 2,472,316
1,645,000 Logansport Multi-Purpose School Building Corporation First Mortgage
Refunding Series 1992, 5.50% due 7/1/01 NR/A 1,702,213
535,000 New Albany Floyd County School Building Corp., 6.20% 7/01/03,
Escowed to Maturity NR/AAA* 579,164
1,820,000 Westfield Ind Elem School Building Corp. First Mtg Series 1997, 6.80% due 7/15/07
(Insured: AMBAC) Aaa/AAA 2,073,035
Iowa (1.51%)
500,000 Davenport Hospital Revenue Series A, 6.90% due 7/1/99 (St. Luke's
Hospital Project; Insured: AMBAC) Aaa/AAA 525,085
1,225,000 Des Moines Hospital Revenue Refunding Series 1996-A, 6.25% due 11/15/04
(Des Moines General Hospital Project; LOC: Norwest) Aa2/NR 1,314,499
1,500,000 Iowa Certificate of Participation, 6.10% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,584,765
2,000,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue 1991
Series C, 6.80% due 12/1/02 Aaa/AAA 2,143,320
750,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue
Series A, 6.35% due 3/1/01 Aa1/NR 785,287
2,600,000 Marion Commercial Development Revenue Refunding Series 1991-A, 7.25% due 1/1/14,
put 7/1/02 (Collins Road Project; Insured: Trygg-Hansa) NR/A+ 2,760,368
4,445,000 Muscatine Electric Revenue Refunding Series 1992, 5.40% due 1/1/00
(Insured: AMBAC) Aaa/AAA 4,561,948
Kansas (0.94%)
1,000,000 Kansas City Industrial Revenue Series 12/1/84, 7.20% due 12/1/04
(Ash Grove Cement Project) Aa2/NR 1,037,740
2,000,000 Lenexa Industrial Revenue Series 8/1/83, 9.50% due 8/1/98
(J.C. Nichols Co. Project) NR/NR 2,098,620
1,000,000 Sedwick County Unified School District No. 265, 8.20% due 10/1/03
(Insured: FSA) Aaa/AAA 1,192,150
3,995,000 Topeka Multifamily Housing Revenue Refunding Series 1991-A, 7.25%
due 4/1/21, put 4/1/02 (Fleming Court Project; Insured: Trygg-Hansa) NR/A+ 4,215,524
Kentucky (0.90%)
4,500,000 Jefferson County Insured Hospital Revenue Series 1992, 8.885% (inverse floater)
due 10/1/02 (Alliant Health Systems project; Insured: MBIA) Aaa/AAA 5,045,625
1,000,000 Kentucky State Turnpike Authority Res Rec Rev, 0% due 7/1/06 (Insured: FGIC)Aaa/AAA 640,520
2,350,000 Paintsville First Mortgage Revenue Series 1991, 8.50% due 9/1/03
(Paul B. Hall Medical Center Project;
Guaranteed: Health Management Associates) NR/NR 2,503,737
Louisiana (4.83%)
2,020,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/00 (Insured: FGIC) Aaa/AAA 2,197,881
2,165,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/01 (Insured: FGIC) Aaa/AAA 2,416,270
1,100,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 1.65%
(inverse floater) due 7/1/97 (St. Francis Medical Center
Project; Insured: FSA) Aaa/AAA 1,100,000
1,000,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 2.15%
(inverse floater) due 7/1/98 (St. Francis Medical Center
Project; Insured: FSA) Aaa/AAA 986,380
1,200,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 2.45%
(inverse floater) due 7/1/99 (St. Francis Medical Center
Project; Insured: FSA) Aaa/AAA 1,163,772
1,100,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 2.70%
(inverse floater) due 7/1/00 (St. Francis Medical Center
Project; Insured: FSA) Aaa/AAA 1,042,998
1,300,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 2.90%
(inverse floater) due 7/1/01 (St. Francis Medical Center
Project; Insured: FSA) Aaa/AAA 1,208,376
3,000,000 Louisiana PFA MFHR Series 1991, 6.00% due 7/1/07, put 7/1/97
(Riverview Villas Project; Guaranteed: Connecticut General Life) NR/AA 3,000,000
3,000,000 Louisiana PFA Student Loan Revenue Series A-1, 5.90% due 3/1/99 Aaa/NR 3,061,290
4,250,000 Louisiana PFA Student Loan Revenue Series A-1, 6.10% due 3/1/00 Aaa/NR 4,371,550
5,000,000 Louisiana PFA Health and Ed Cap Fac Revenue Series 1985 B-1, 5.00% due 12/1/15,
put 6/1/02 (Insured: AMBAC) Aaa/AAA 5,038,800
1,065,000 Louisiana PFA MFHR, 5.95% due 3/15/19 (Oakleigh Apts. Project;
LOC: AXA Guaranty) NR/AA 1,098,611
2,125,000 Louisiana Unlimited Tax General Obligation Series A, 6.00%
due 8/1/01 (Insured: FGIC) Aaa/AAA 2,249,971
2,450,000 Louisiana Recovery District Sales Tax Refunding Series 1992, 5.70% due 7/1/98 A/A- 2,494,737
5,000,000 Louisiana Recovery District Sales Tax Refunding Series 1992,
5.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 5,080,900
500,000 Louisiana State University Agricultural & Mechanical College Board,
7.70% due 4/15/02, Escrowed to Maturity NR/AAA* 566,845
5,815,000 Orleans Levee District Public Improvement Trust Receipts Series 1995-A, 5.95%
due 11/1/01 (Insured: FSA) Aaa/NR 6,164,540
460,000 Ouachita Parish Hospital Revenue District # 1 Series 1991, 7.25% due 7/1/01 NR/A- 505,512
Maine (0.40%)
3,000,000 Maine Finance Authority MFHR Series 1988, 5.25% due 9/1/18, put 9/3/99
(Back Bay Tower Project; LOC: Sakura Bank) A3/NR 3,086,130
500,000 Regional Waste Systems Incorporated Series A-C, 7.30% due 7/1/98 NR/AA 515,960
Maryland (0.48%)
2,000,000 Howard County Maryland Multifamily Housing Revenue, 7.00% due 7/1/24,
put 7/1/04, (Chase Glen Prject; Guaranty: Avalon Prop.) NR/NR 2,177,260
1,000,000 Maryland Health and Higher Education Facility Authority, 4,75% due 7/1/21, put 3/1/01,
(Stella Maris Project; LOC: First Natl Bank) NR/A 1,001,940
1,105,000 Washington Suburban Sanitary District Series 1994, 8.75% due 6/1/99 Aa1/AA 1,197,897
Massachusetts (5.98%)
1,000,000 Boston General Obligation Series A, 7.25% due 7/1/99 A/A+ 1,050,350
1,600,000 Boston General Obligation Series A, 7.60% due 2/1/04, pre-refunded 2/1/99 Aaa+/A+ 1,713,936
3,155,000 Boston Revenue City Hospital, 7.65% due 2/15/10, pre-refunded 8/15/00 @102 AAA/NR 3,488,578
1,000,000 Boston FHA Insured City Hospital Revenue Series A, 7.15% due 2/15/01,
pre-refunded 8/15/00 (Boston City Hospital Project) Aaa/NR 1,099,330
80,000 Haverhill General Obligation Municipal Purpose Loan Series 1991,
7.50% due 10/15/11 Baa/BBB 88,532
725,000 Holyoke General Obligation, 9.85%, due 11/1/08, refunded 11/1/97 @ 102 Aaa/NR 753,369
495,000 Holyoke General Obligation Electric Revenue Series 1991-A, 8.00% due 6/1/01 Baa/NR 527,526
400,000 Holyoke General Obligation Sewer Revenue Series B, 8.00% due 6/1/01 Baa/NR 422,368
1,670,000 Holyoke General Obligation School Project Loan Act of 1948, 7.35% due 8/1/02 Baa/NR 1,836,699
1,060,000 Lynn General Obligation, 7.00% due 1/15/04 Baa1/NR 1,140,316
650,000 Massachusetts Educational Loan Revenue Series 1985-C, 7.875% due 6/1/03
(LOC: Rabobank Nederland) NR/AAA 672,159
2,000,000 Massachusetts General Obligation Consolidated Loan of 1991 Series B,
0% due 6/1/01 A1/A+ 1,666,420
2,000,000 Massachusetts General Obligation Consolidated Series 1987-A, 5.75% due 3/1/99 A1/A+ 2,042,300
3,000,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992,
0% due 9/1/00 A1/A+ 2,592,480
2,500,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992,
0% due 9/1/02 A1/A+ 1,950,450
690,000 Massachusetts State Health & Education Facilities Authority Series B, 6.50% due 7/1/97
(Charlton Hospital Project) A/A 690,041
1,465,000 Massachusetts State Health & Education Facilities Authority Series B, 6.70% due 7/1/98
(Charlton Hospital Project) A/A 1,500,306
1,245,000 Massachusetts State Health & Education Facilities Authority Series B, 6.875% due 7/1/99
(Charlton Hospital Project) A/A 1,291,849
2,635,000 Massachusetts State Health & Education Facilities Authority Series B, 5.50% due 5/15/11, put
5/15/01 (Community Health Capital Fund Project;
LOC: First National Bank of Boston) NR/NR 2,688,148
2,500,000 Massachusetts IFA Recovery Refunding Revenue Series 1993-A, 5.45% due 7/1/01
(Insured: FSA) Aaa/AAA 2,584,250
1,900,000 Massachusetts IFA Stetson Place Development Trust Series A, 5.125% due 6/1/08,
put 6/1/98 (LOC: State Street Bank & Trust) Aa2/NR 1,908,892
5,000,000 Massachusetts IFA First Mortgage Revenue Series 1996-B, 5.00% due 5/1/26, put 5/1/02
(Orchard Cove Project; LOC: Fleet National Bank) NR/A 5,068,200
2,080,000 New Bedford Industrial Revenue, 7.42% due 7/1/02 (Aerovox Corporation Project) NR/A- 2,117,149
2,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-E, 5.00% due 7/1/99 A1/A- 2,018,180
1,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1992-F, 6.50% due 9/1/02 Aa/NR 1,074,560
3,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-B, 5.40% due 6/1/00 A1/A- 3,063,030
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/97 Baa1/NR 433,967
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/98 Baa1/NR 453,152
295,000 South Essex Sewer District General Obligation, 9.00% due 12/1/99 Baa1/NR 326,521
550,000 Springfield General Obligation, 7.75% due 5/1/99 Baa/NR 579,002
250,000 Springfield General Obligation, 7.75% due 5/1/00 Baa/NR 269,060
300,000 Springfield General Obligation, 7.75% due 5/1/01 Baa/NR 328,533
300,000 Springfield General Obligation, 7.80% due 5/1/02 Baa/NR 328,410
1,500,000 Taunton Mass General Obligation, 8.00% due 2/1/06 (Insured: MBIA) Aaa/AAA 1,819,110
2,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A,
6.80% due 5/1/99 A1/A+ 2,091,900
1,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A,
7.15% due 5/1/03 A1/A+ 1,125,980
1,250,000 Worcester Municipal Purpose Loan of 1991 General Obligation,
6.80% due 5/15/01 (Insured: MBIA) Aaa/AAA 1,354,800
Michigan (2.14%)
1,215,000 Dearborn Sewage Disposal System, 6.90% due 4/1/01 (Insured: MBIA) Aaa/AAA 1,318,919
1,300,000 Detroit General Obligation Series 1990-A, 8.50% due 4/1/00 Ba1/BBB 1,419,522
3,000,000 Detroit Economic Development Corp. Refunding, 7.00% due 6/1/12, put 6/1/02
(F.H. Associates Project; Surety: ITT Lyndon Property Insurance) NR/NR 3,143,130
1,325,000 Michigan State Hospital Finance Authority Revenue Series 1991-A,
8.30% due 9/1/02 Ba/BBB- 1,393,754
6,070,000 Michigan State Housing Development Authority Rental Housing Rev. Series 1992-A,
5.40% due 4/1/98 (Detroit Edison Project) NR/A+ 6,132,885
1,460,000 Wayne County Wastewater Control System Limited Tax General Obligation
Refunding, 7.875% due 5/1/02 Baa/BBB- 1,623,900
2,000,000 Wayne County Building Authority Limited Tax General Obligation Sinking Fund
Series 1992-A, 7.80% due 3/1/05, pre-refunded 3/1/02 @ 102 Baa/AAA* 2,305,100
1,940,000 West Ottowa Public Schools General Obligation Unlimited Tax, 6.30% due 5/1/03
(Insured: FGIC) Aaa/AAA 2,096,674
Minnesota (2.10%)
4,775,000 Burnsville MFHR Series 1991, 7.20% due 5/1/11, put 5/1/02
(The Atrium Project; Insured: Trygg-Hansa) NR/A+ 4,926,559
975,000 Coon Rapids Industrial Development Ref. Rev., 6.75% due 12/1/01
(LOC: Norwest Bank) Aa3/AA 991,965
2,000,000 Hennepin County G.O. Solid Waste Revenue Refunding Series 1992,
4.65% due 10/1/97 Aaa/AAA 2,004,140
1,500,000 Metropolitan Council Minneapolis - St. Paul Area Sports Facilities Revenue,
5.30% due 10/1/00 (Hubert H. Humphrey Metrodome Project) A/A 1,535,280
3,245,000 Minneapolis-Saint Paul Housing & Redevelopment Authority Series 1993,
5.00% due 12/1/04, put 12/1/98 (Corporate Partner Project;
LOC: Continental Insurance) NR/A+ 3,266,060
2,500,000 Minneapolis-Saint Paul Housing & Redevelopment Authority Single Family Mortgage Revenue
Series 96-B, 5.125% due 6/1/32, put 6/1/00 (GNMA/FNMA) Aaa/NR 2,503,375
540,000 Minneapolis MFHR Refunding Series 1991, 6.75% due 10/1/01
(Churchill Apartments Project; FHA Insurance Mortgage) NR/AAA 570,456
1,250,000 Minneapolis School District Certificate of Participation, 5.30% due 2/1/00 Baa1/A 1,265,550
1,410,000 Minneapolis-Saint Paul Single Family Housing Revenue Series A,
8.25% due 11/1/07 NR/AAA 1,454,725
480,000 Saint Cloud Industrial Development Revenue Refunding Series 1992, 6.25%
due 4/1/98 (Alton Realty Co. & Pan-O-Gold Baking Co. Project;
LOC: Norwest Bank of Minnesota) NR/AA- 483,965
Mississippi (0.60%)
2,000,000 Mississippi Higher Education Assistance Corporation Student Loan Revenue
Series 1992-B, 6.00% due 1/1/00 NR/A 2,052,180
500,000 Mississippi Hospital Equipment & Facilities Authority Revenue Series 1990-B, 4.25%
due 7/1/12, put 7/1/97 (weekly demand note)
(Mississippi Baptist Medical Center Project) VMIG1/NR 500,000
900,000 Mississippi Hospital Equipment & Facilities Authority Revenue, 8.60%
due 1/1/01 (Rush Medical Foundation Project) Baa/NR 975,654
1,890,000 Ridgeland Multifamily Housing Rev. Series 1985, 6.50% due 10/1/07, put 10/1/97
(Sunchase Apartments Project) NR/AAA 1,902,965
Missouri (1.72%)
1,555,000 Jackson County Public Building Corporation Leasehold Revenue Series 1996, 6.00% due
12/1/04 (Capital Improvements Project; Insured: MBIA) Aaa/AAA 1,680,333
4,000,000 Missouri Higher Education Loan Authority Student Loan Revenue Refunding,
5.50% due 2/15/00 Aa/NR 4,075,640
3,000,000 Missouri Economic Development Export & Infrastructure Board Industrial
Revenue Series 1993, 5.375% due 5/1/03, mandatory put 5/1/00
(Mark Twain Tower Project; Lincoln National Insurance Guaranty) NR/A 3,046,860
760,000 Missouri State Housing Development Authority Revenue, 6.30% due 7/15/99 Aa/AA+ 772,099
1,055,000 Missouri Health & Education Facilities Authority Revenue, 0% due 1/1/02
(Missouri Baptist Medical Center Project) Escrowed to Maturity Aaa*/A- 849,497
255,000 Missouri State Environmental Improvement & Energy Resources Authority Water
Pollution Control Revenue Series 1991-A, 6.50% due 12/1/02
(State Revolving Revenue Project) A1/NR 278,761
325,000 Missouri State Environmental Improvement & Energy Resources Authority Water
Pollution Control Revenue Series 1991-A, 6.60% due 12/1/03
(State Revolving Revenue Project) AA/NR 356,853
670,000 St. Louis County Industrial Development Authority Housing Revenue
Series 1992-A, 6.00% due 6/1/98 A/NR 680,251
3,860,000 St. Louis IDA Refunding Revenue Series 1993-B, 5.10% due 12/1/08,
put 12/1/00 (Westport Residence Project;
Guaranteed: Lincoln National Corporation) NR/A 3,874,243
Montana (0.13%)
690,000 Billings Tax Increment Urban Renewal Series 1987-A,
8.65% due 3/1/99, refunded 3/1/98 Aaa/NR 711,914
430,000 Montana Higher Education Student Loan Revenue Series 1992-A, 6.70% due 12/1/01 A/NR 459,696
Nebraska (0.79%)
2,950,000 Nebraska Industrial Finance Authority Tax Exempt Multifamily Housing Revenue Refunding
Series 1995-A, 5.50% due 12/1/25, put 12/1/05 (Willow Park Apartments Project;
FNMA Collateral) NR/AAA 3,009,590
2,500,000 Nebraska Public Power District Series 1993, 5.10% due 1/1/00 A1/A+ 2,545,800
1,500,000 Nebraska Investment Finance Authority Hospital Equipment Revenue, 6.85% due 3/1/02
(Insured: MBIA) Aaa/AAA 1,638,555
Nevada (0.45%)
780,000 Las Vegas Valley Water District, 6.60% due 8/1/98 (Insured: AMBAC) Aaa/AAA 801,099
1,085,000 Washoe County Airport Authority Revenue Refunding, 5.30% due 7/1/00
(Insured: MBIA) Aaa/AAA 1,110,660
1,325,000 Washoe County Airport Authority Revenue Refunding, 5.45% due 7/1/01
(Insured: MBIA) Aaa/AAA 1,368,685
750,000 Washoe County Airport Authority Revenue Refunding, 5.60% due 7/1/02
(Insured: MBIA) Aaa/AAA 781,815
New Hampshire (0.89%)
5,000,000 New Hampshire Health and Education Authority Revenue Bonds Series B,
5.05% due 3/1/23, put 3/1/03
(Riverwoods at Exeter Project; LOC: Banque Paribas) A2/NR 4,987,450
920,000 New Hampshire Industrial Development Authority Revenue Series 1995,
7.70% due 7/1/00 (Electra/ PJ-Allied Project) A2/NR 921,785
2,030,000 New Hampshire Industrial Development Authority Revenue, 6.40% due 12/1/09,
put 12/1/99
(Central Vermont Public Service Project; LOC: Toronto Dominion Bank) NR/AA 2,119,767
New Jersey (0.60%)
595,000 Hudson County Certificates of Participation, 6.20% due 6/1/03
(Corrections Facility Project: Insured: MBIA) Aaa/AAA 640,625
2,400,000 New Jersey Economic Development Authority Series 1991, 6.875% due 10/1/14,
optional put 10/1/98
(Fairway Corporation II Project; Guaranty: Provident Mutual Life) A2/NR 2,404,464
1,000,000 New Jersey Health Care Facilities Financing Authority Revenue, 7.00% due 7/1/03
(Christ Hospital Project; Insured: Connie Lee) NR/AAA 1,113,010
1,000,000 New Jersey Turnpike Authority Revenue Series A, 5.70% due 1/1/01 Baa1/BBB+ 1,036,520
215,250 New Jersey Wastewater Treatment Trust - Wastewater Treatment Insured Loan
Revenue Series 1987, Amortizing Coupon M-COATES, 9.00% due 9/1/97 Aaa*/AAA* 223,550
New Mexico (1.24%)
1,620,000 Farmington Pollution Control, 4.05% due 9/1/24, put 7/1/97,
(daily demand notes) (LOC: Barclay's) P1/A1 1,620,000
5,390,000 Jicarilla Apache Tribe Tribal Revenue Refunding, 7.75% due 7/1/05 NR/A 5,505,993
215,000 Las Cruces Gross Receipts Tax Revenue, 5.65% due 12/1/00 A/A 223,368
239,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 7/1/97 (ETM) NR/AAA 239,033
261,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 7/1/98 (ETM) NR/AAA 274,071
273,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 1/1/99 (ETM NR/AAA 292,140
285,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 7/1/99 (ETM) NR/AAA 311,132
298,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 1/1/00 (ETM) NR/AAA 330,825
326,000 Santa Fe County Office and Training Facilities Series 1990,
9.00% due 1/1/01 (ETM) NR/AAA 374,189
745,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.75% due 6/1/04 NR/A 768,520
510,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.90% due 6/1/05 NR/A 529,559
775,000 Santa Fe Solid Waste Management Agency Facility Revenue, 6.00% due 6/1/06 NR/A 809,208
New York (4.79%)
1,785,000 Islip Resource Recovery Agency Series 85-D, 5.95% due 7/1/03
(Insured: AMBAC) Aaa/AAA 1,908,219
500,000 Metropolitan Transit Authority Service Contract Commuter Fac Rev,
7.00% due 7/1/02 Baa1/BBB 538,060
3,000,000 Metropolitan Transit Authority Series M, 5.10% due 7/1/98 Baa/BBB+ 3,033,600
2,695,000 New York City General Obligation Series E, 6.30% due 8/1/01 Baa1/BBB+ 2,843,252
1,000,000 New York City General Obligation Series E, 7.00% due 8/1/04 Aaa/AAA 1,130,780
1,150,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 1,232,777
90,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 95,443
800,000 New York City General Obligation Series D, 6.30% due 2/1/01
(Escrowed to Maturity) Aaa/BBB+ 850,696
1,960,000 New York City General Obligation Series D, 6.30% due 2/1/01 Baa1/BBB+ 2,055,707
1,000,000 New York City Municipal Water Finance Authority Water & Sewer System Revenue,
7.15% due 6/15/98 A/A- 1,029,760
3,000,000 New York Dorm Authority Revenue State University Educational Facilities, 5.25%
due 7/1/02 (Insured: AMBAC) Aaa/AAA 3,097,080
1,000,000 New York Dorm Authority Revenue State University Educational Facilities Series A,
7.00% due 5/15/04 Baa1/BBB+ 1,089,870
7,310,000 New York State Dormitory Authority Series 1994-B, 6.00% due 7/1/24, put 12/5/99
(Miriam Osborn Memorial Home Project; LOC: Banque Paribas) A1/A 7,593,920
1,525,000 New York State Dorm Authority, 6.00% due 2/1/04,
(Millard Fillmore Hospital Project; Insured: AMBAC) Aaa/AAA 1,626,336
1,320,000 New York State Health Facilities Revenue Refunding Series 1990-A,
7.90% due 11/1/99 Baa/BBB+ 1,390,660
1,500,000 New York State Local Government Assistance Corporation Revenue
Series D, 6.50% due 4/1/02 A/A 1,621,620
1,500,000 New York State Medical Care Facilities Finance Agency 1991 Series A,
7.25% due 2/15/01 Baa1/BBB+ 1,622,535
2,500,000 New York State Urban Development Corporation, 7.60% due 4/1/03,
pre-refunded 4/1/01 AAA/BBB 2,825,500
3,425,000 New York State Urban Development Corporation Series 7,
6.00% due 1/1/06 Baa1/BBB 3,613,786
2,500,000 Syracuse Industrial Development Authority Pilot Revenue
Refunding Series 1995, 5.125% due 10/15/02 (LOC: ABN AMRO Bank) NR/AA 2,514,175
1,000,000 Triborough Bridge and Tunnel Authority, 6.50% due 1/1/04 (Insured: MBIA) Aaa/AAA 1,082,960
570,000 Westchester County I.D.A. Civic Facility Revenue, 6.25% due 4/1/05
(Julia Dykman Project) NR/BBB 583,879
North Carolina(0.52%)
2,145,000 Carteret County Certificate of Participation Series 1992, 6.50% due 2/1/00
(Elementary School Project) Baa1/BBB+ 2,211,023
525,000 North Carolina Housing Finance Authority Single Family Housing Revenue, 6.80%
due 7/1/08 (Insured: FHA/VA) Aa1/AA+ 528,953
1,865,000 North Carolina Municipal Power Agency No. 1 Catawba Electrical Revenue, 6.00% due 1/1/05
(Insured: MBIA) Aaa/AAA 2,003,663
North Dakota (0.36%)
910,000 Grand Forks Health Care System Revenue Bonds Series 1997, 6.25% due 8/15/05
(Altru Health System Project; Insured: MBIA) Aaa/AAA 986,394
1,000,000 North Dakota Building Authority Refunding Revenue Series 1993-A, 5.15% due 6/1/00
(Insured: AMBAC) Aaa/AAA 1,019,750
1,250,000 North Dakota Student Loan Revenue, 5.45% due 7/1/02 (Insured: AMBAC) Aaa/AAA 1,278,513
Ohio (3.26%)
1,000,000 Barberton Hospital Facilities Series 1992, 6.65% due 1/1/02 A/NR 1,086,750
2,370,000 Belmont County IDRB Series 1991, 6.50% due 1/1/00
(May Department Stores Co. Project) NR/A 2,474,351
4,000,000 Butler County Hospital Revenue Bonds, 5.15% due 11/1/17
(Middletown Regional Hospital Project; LOC: Star Bank) A1/NR 4,002,640
400,000 Cambridge Hospital Revenue Refunding Series 1991, 7.25% due 12/1/97 NR/BBB 405,100
1,500,000 Cincinnati School District Revenue Anticipation Notes, 5.75% due 6/15/98 NR/A- 1,524,660
1,000,000 Cincinnati School District Revenue Anticipation Notes, 6.15% due 6/15/02 NR/A- 1,070,740
1,250,000 Cincinnati School District Revenue Anticipation Notes, 6.05% due 6/15/00 NR/A- 1,309,075
1,200,000 Clermont County Hospital Facilities Revenue Refunding Series 1993-B, 4.70% due 9/1/99
(Mercy Health System Project; Insured: MBIA) Aaa/AAA 1,212,996
2,000,000 Cleveland Certificate of Participation, 7.10% due 7/1/02
(Motor Vehicle & Community Equipment Project) Baa/BBB 2,096,500
2,220,000 Cuyahoga County Housing Revenue Series 1993, 7.00% due 4/1/00
(North Coast Community Homes Project) NR/NR 2,273,680
1,000,000 Erie County Hospital Improvement Refunding Revenue Series 1992, 6.25%
due 1/1/01 (Firelands Community Hospital Project) A/A- 1,043,300
2,000,000 Franklin County General Obligation, 6.375% due 12/1/17,
pre-refunded 12/1/01 @102 Aaa/AAA 2,184,920
1,100,000 Hamilton County Hospital Facilities Refunding Revenue Series 1992,
6.25% due 1/1/01 (Episcopal Retirement Homes, Inc. Project;
LOC: Fifth/Third Bank) Aa2/NR 1,157,739
3,095,000 Ohio Water Development Authority Safe Water Refunding Series 1992,
0% due 12/1/00 (Insured: MBIA) Aaa/AAA 2,659,007
1,060,000 Switzerland Local School District of Monroe County Revenue Anticipation Notes
Series 1995, 6.25% due 6/15/00 NR/NR 1,081,370
2,765,000 Warren County Hospital Facilities Improvement and Refunding Revenue,
6.80% due 7/1/01 (Otterbein Home Project; LOC: Fifth/Third Bank) Aa2/NR 2,959,435
910,000 Washington County Hospital Facilities Revenue, 6.875% due 9/1/02
(Marietta Area Health Project) Baa1/NR 958,612
Oklahoma (0.85%)
1,190,000 Broken Arrow Utility System & Sales Tax Revenue Refunding Series 1992-A, 6.00%
due 5/1/01 (Insured: FGIC) Aaa/AAA 1,257,318
190,000 Comanche County SFMR Refunding 1990 Series, 7.60% due 12/1/98 A1/NR 195,808
200,000 Comanche County SFMR Refunding 1990 Series, 7.65% due 6/1/99 A1/NR 207,350
1,060,000 Oklahoma City Municipal Improvement Authority Water & Sewer Revenue Series
Refunding A, 0% due 7/1/00 (Insured: AMBAC) Aaa/AAA 927,140
1,090,000 Pushmatahah County Town of Antlers Hospital Authority Revenue Refunding
Series 1991, 8.75% due 6/1/03 NR/NR 1,191,185
1,155,000 Tulsa Industrial Development Hospital Revenue, 5.60% due 2/15/03
(St. John's Medical Center Project) Aa/AA 1,190,250
1,940,000 Tulsa Public Facilities Authority Solid Waste Steam & Electric Revenue Refunding Series 1994,
4.90% due 11/1/99 (Ogden Martin Systems of Tulsa Inc. Project;
Insured: AMBAC) Aaa/AAA 1,955,617
750,000 Tulsa Public Facilities Authority Solid Waste Steam & Electric Revenue Refunding Series 1994,
5.45% due 11/1/04 (Ogden Martin Systems of Tulsa Inc. Project;
Insured: AMBAC) Aaa/AAA 765,383
Oregon (0.69%)
2,500,000 Clackamas County Hospital Facilities Revenue, 6.10% due 10/1/01 A1/AA- 2,640,675
1,325,000 Emerald Peoples Utility District Revenue, 7.20% due 11/1/03
(Insured: FGIC) Aaa/AAA 1,511,600
2,000,000 Oregon State Department of Transportation Regional Light Rail Extension,
5.20% due 6/1/98 (Westside Light Rail Project; Insured: MBIA) Aaa/AAA 2,024,180
110,000 Springfield General Obligation, 6.70% due 10/1/00 A/A 110,719
Pennsylvania (5.03%)
1,900,000 Allentown Area Hospital Authority Revenue Series 1991, 7.75% due 7/1/98
(Sacred Heart Hospital Project) NR/BBB 1,953,352
1,250,000 Armstrong County Hospital Authority Series 1992-A, 5.25% due 11/1/12,
put 11/1/97 (LOC: Pittsburgh National Bank) A1/NR 1,254,700
1,000,000 Chester County Utility, 7.00% due 12/15/11 pre-refunded 8/1/01 Aa/AAA* 1,095,830
550,000 Clairton School District General Obligation, 0% due 11/1/99 NR/A 495,918
500,000 Clairton School District General Obligation, 0% due 11/1/02 NR/A 386,575
3,060,000 Delaware County Health Facilities Authority Revenue Series 1993-B, 5.375%
due 11/15/99 (Mercy Health Corporation of S.E. Pennsylvania Project) NR/BBB 3,083,837
6,310,000 Deleware County Industrial Development Authority Revenue Series A,
6.10% due 1/1/04 Baa1/A 6,612,880
1,140,000 Deleware County Industrial Development Authority Revenue Series A,
6.10% due 1/1/06 Baa1/A 1,197,000
2,030,000 Erie School District General Obligation, 0% due 6/1/00,
Escrowed to Maturity Aaa*/A 1,776,575
1,000,000 Erie School District General Obligation, 0% due 12/1/00,
Escrowed to Maturity Aaa*/A 855,400
3,365,000 Harrisburg Authority Commonwealth Lease Revenue Series 1991,
6.25% due 6/1/00 (Insured: FSA) Aaa/AAA 3,538,365
1,300,000 Harrisburg Authority Lease Revenue, 6.50% due 6/1/04,
crossover refunded 6/1/01 (Insured: FSA) Aaa/AAA 1,409,187
1,455,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/00 NR/A 1,251,737
1,680,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/02 NR/A 1,304,134
1,000,000 Pennsylvania Infrastructure Authority Revenue Pennvest Subseries B,
6.25% due 9/1/02 NR/AA+ 1,075,070
2,000,000 Pennsylvania State Refunding & Projects General Obligation Series A,
6.50% due 1/1/00 A1/AA- 2,102,860
715,000 Pennsylvania State Higher Education Facilities Authority Revenue,
6.15% due 4/1/04 Baa/NR 735,978
1,770,000 Philadelphia Gas Works Revenue 14th Series, 5.60% due 7/1/99 Baa1/BBB 1,801,117
2,920,000 Philadelphia Parking Authority Airpot Parking Revenue Series 1997,
5.50% due 9/1/04 Aaa/AAA 3,053,356
2,600,000 Philadelphia Water & Wastewater Revenue Series 1993, 4.875% due 6/15/01
(Insured: FSA) Aaa/AAA 2,641,522
2,245,000 Philadelphia Hospital & Higher Education Facilities Authority Hospital Revenue
Series 1991, 7.00% due 7/1/01 (Graduate Health System Project) Baa1/BBB+ 2,354,668
3,000,000 Southeastern Pennsylvania Transportation Authority Series 1994, 6.00% due 6/1/99
(LOC: Canadian Imperial Bank of Commerce) Aa3/AA- 3,099,030
2,825,000 State Public School District Building Authority, Reading School District Capital Appreciation
Series B, 0% due 7/15/00 (Insured: MBIA) Aaa/AAA 2,465,152
Puerto Rico (0.14%)
250,000 Puerto Rico Public Improvement General Obligation, 6.60% due 7/1/04 Baa/A- 278,307
1,000,000 Puerto Rico Electric Power Revenue Refunding Series 1992-Q, 5.70% due 7/1/00Baa1/A- 1,034,660
Rhode Island (0.42%)
2,000,000 Rhode Island Depositor's Economic Protection Corp. Series 1992-A, 6.10% due 8/1/02
(Insured: FSA) Aaa/AAA 2,140,180
680,000 Rhode Island Health & Educational Building Corporation Health Facilities
Revenue, 8.00% due 7/1/00 (Steere House Issue Project) NR/NR 715,231
964,000 Rhode Island Industrial Facilities Corporation Series 1991, 5.875% due 6/1/02
(Paramount Cards, Inc. Project; LOC: Bank of Scotland) A1/NR 989,189
South Carolina (0.55%)
500,000 Florence County Public Facilities Corporation, 7.30% due 3/1/03, pre-refunded 3/1/00
(Law Enforcement Project; Insured: AMBAC) Aaa/AAA 542,265
2,000,000 Piedmont Municipal Power Agency Series 1992, 5.20% due 1/1/98
(Electric Revenue Project) A/BBB 2,014,780
860,000 Piedmont Municipal Power Agency Electric Revenue, 6.25% due 1/1/04
(Insured: FGIC) Aaa/AAA 924,577
500,000 South Carolina State Housing Authority Multifamily Revenue,
7.375% due 12/1/07 NR/NR 456,250
915,000 York County School District No. 4, 7.00% due 3/1/03 (Insured: FGIC) Aaa/AAA 1,025,358
South Dakota (0.32%)
1,400,000 South Dakota Health & Education Facilities Authority Revenue Series 1992,
5.40% due 9/1/01 (Rapid City Regional Hospital Project; Insured: MBIA) Aaa/AAA 1,445,178
1,250,000 South Dakota Lease Revenue Series 93-B, 8.00% due 9/1/03 (Insured: FSA) Aaa/AAA 1,462,013
Tennessee (1.22%)
1,000,000 Southeast Tax Exempt Mortgage Bond Trust Series 1990, 7.25% due 4/1/17 NR/AAA 1,110,650
5,000,000 Chattanooga-Hamilton County Hospital Revenue, 10.28% due 5/25/21, refunded
5/1/01 @ 102 (Erlanger Medical Center Project; Insured: FSA) Aaa/AAA 6,025,000
1,565,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 5/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,615,330
1,130,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 11/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,166,815
1,095,000 Copperhill Industrial Development Board, 7.80% due 12/1/00
(City Services Company Project) Baa3/BBB 1,104,286
Texas (6.28%)
1,285,000 Bexar County Health Facilities Development Corporate Hospital Revenue
Series 1991, 7.40% due 5/1/00 Baa1/BBB 1,362,074
1,065,000 Cypress-Fairbanks Independent School District General Obligation,
0% due 2/1/02 (Insured: FGIC) Aaa/AAA 856,409
1,685,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 1,726,080
315,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 322,355
2,015,000 Ector County Hospital Revenue, 7.125% due 4/15/02 Baa1/BBB 2,149,662
2,260,000 Harris County Health Facilities Development Corporation
Series 1985-B, 7.375% due 12/1/25,
(Greater Houston Pooled Health Care Project; Guaranteed: Prudential) Aa/NR 2,277,402
4,000,000 Harris County Flood Control District L.T.G.O. Series 1991-A, 0% due 10/1/01 Aa/AA+ 3,281,520
955,000 Harris County Health Facilities Dev. Corp. Hospital Revenue, 6.70% due 6/1/00
(Memorial Hospital Systems Project) A/A- 1,016,941
1,070,000 Houston Housing Finance Corp. SFMRB Series A, 5.35% due 6/1/02(Insured:FSA Aaa/AAA 1,088,864
2,850,000 Humble Independent School District of Harris County Series 1992,
0% due 2/15/00 (PSF Guaranty) Aaa/AAA 2,528,634
1,295,000 Irving Flood Control District Section 3 Refunding Capital Appreciation,
0% due 9/1/01 Baa/NR 1,055,723
1,195,000 Jefferson County Health Facilities Development Corporation Hospital Revenue
Series 1989, 8.125% due 10/1/99 (Baptist Health Care System Project) Baa/BBB 1,233,240
2,630,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/99
(PSF Guaranty) Aaa/AAA 2,450,029
2,300,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/98
(PSF Guaranty) Aaa/AAA 2,245,007
2,230,000 Lower Colorado River Authority Jr. Lien Refunding Revenue Series 1992, 0%
due 1/1/01 (Insured: AMBAC) Aaa/AAA 1,894,452
585,000 North Texas Health Facilities Development Corporation Revenue Series 1988,
8.25% due 9/1/98 (Wichita Falls United Diagnostic Center Project) A*/A* 601,918
1,000,000 North Texas Higher Education Student Loan Revenue, 6.50% due 4/1/99
(Insured: AMBAC) Aaa/AAA 1,031,210
250,000 Northgate Crossing Utility District Road System & Drainage System Unlimited
Tax Sinking Fund Series 1986, 9.25% due 12/1/98 NR/NR 251,893
1,040,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/06
pre-refunded 8/1/98 Aaa/AAA 1,081,038
1,115,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/07
pre-refunded 8/1/98 Aaa/AAA 1,158,998
1,295,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/09
pre-refunded 8/1/98 Aaa/AAA 1,346,101
1,395,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/10
pre-refunded 8/1/98 Aaa/AAA 1,450,047
1,500,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/11
pre-refunded 8/1/98 Aaa/AAA 1,559,190
1,615,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/12
pre-refunded 8/1/98 Aaa/AAA 1,678,728
2,135,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/13
pre-refunded 8/1/98 Aaa/AAA 2,219,247
1,000,000 Palo Duro River Authority Unlimited Tax Refunding Series 1992, 5.10% due 8/1/97
(Capital Guaranty Insurance) NR/AAA 1,001,040
4,600,000 Plano Capital Appreciation Refunding General Obligation, 0% due 3/1/01 A1/AA- 3,877,662
1,355,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.00% due 8/1/99 Aa/AA 1,363,360
1,415,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.50% due 8/1/01 Aa/AA 1,450,333
885,000 Tarrant County HFC Multifamily Housing Revenue, 5.00% due 9/1/06
(Bedford Springs Project; Guaranteed:
Provident Mutual Life Insurance Corporation) NR/AA- 885,186
5,880,000 Texas Public Finance Authority Series B, 5.25% due 2/1/98 (Insured: AMBAC) Aaa/AAA 5,928,863
1,400,000 Texas Water Resource Finance Authority Revenue, 7.00% due 8/15/99
(Insured: AMBAC) Aaa/AAA 1,469,790
970,000 Texas Water Resource Finance Authority Revenue, 7.40% due 8/15/00 A/A 1,025,930
855,000 Texas Water Resources Authority Revenue, 7.50% due 8/15/01 A/A- 906,009
1,100,000 Trinity HFC Multifamily Housing Revenue Series 1982, 10.00% due 6/1/98
(Timberline Apartment Project) NR/NR 1,100,000
Utah (2.80%)
6,685,000 Intermountain Power Agency Power Supply Rev, 5.50% due 7/1/00(Insured:MBIA Aaa/AAA 6,889,762
5,055,000 Intermountain Power Agency Power Supply Rev Series B, 5.50% due 7/1/01
(Insured: MBIA) Aaa/AAA 5,240,165
8,000,000 Intermountain Power Agency Power Supply Revenue, 0%
pre-refunded 7/1/00 @ 101 Aaa/AAA 6,995,200
2,045,000 Ogden Neighborhood Development Agency Tax Increment Revenue Series AS, 0% due 12/30/05
(LOC: Sumitomo Bank) A1/NR 1,262,031
2,220,000 Utah Student Loan Revenue Series 1992-G, 5.20% due 11/1/98 (Insured: AMBAC Aaa/AAA 2,244,975
600,000 Utah Municipal Finance Co-op Local Government Revenue, 7.10% due 6/1/00 NR/AA 632,076
2,000,000 Weber County Housing Authority MFHR Series 1991, 6.50% due 11/1/18, put 11/1/01
(Cherry Creek Apartment Project; LOC: First Security Bank of Utah,
Insured: FGIC) Aaa/AAA 2,139,580
Virginia (1.17%)
3,000,000 Hampton Redevelopment Housing Authority Series 1994, 7.00% due 7/1/24,
put 7/1/04 (Chase Hampton Apartments Project) NR/NR 3,222,600
1,755,000 Henrico County IDA Public Facility Lease Revenue, 6.50% due 8/1/00
(Henrico County Jail Project) Aa/AA 1,864,881
3,000,000 Suffolk Redevelopment Housing Authority Series 1994, 7.00% due 7/1/24,
put 7/1/04 (Chase Heritage at Dulles Project) NR/NR 3,240,540
1,960,000 Virginia Housing Development Authority Series C-8, 5.70% due 7/1/03 Aa1/AA+ 2,016,683
255,000 Virginia Housing Development Authority Series D-4, 5.00% due 7/1/00 Aa1/AA+ 258,830
Washington (3.17%)
1,010,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992,
5.55% due 7/1/99 A1/A 1,031,644
1,125,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992,
5.75% due 7/1/00 A1/A 1,162,688
1,295,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992-E,
5.50% due 7/1/97 A1/A 1,295,052
1,370,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992-E,
0% due 7/1/98 A1/A 1,315,885
1,195,000 Grant County Public Utility District #2 Priest Rapids Hudroelectric, 6.00% due 1/1/03
(Insured: AMBAC) Aaa/AAA 1,255,981
950,000 Grant County Public Utility District #2 Priest Rapids Hydroelectric, 6.00% due 1/1/06
(Insured: AMBAC) Aaa/AAA 1,005,318
725,000 Spokane County School District # 363 Unlimited Tax G.O. Ref. Series 1992,
5.40% due 12/1/00 A/NR 747,294
1,000,000 Sumner Limited Tax General Obligation Anticipation Notes, 4.70% due 8/1/98 NR/NR 1,000,020
550,000 Washington State Certificates of Participation State Equipment Series A,
6.40% due 4/1/00 A1/A+ 572,677
500,000 Washington State Certificates of Participation State Equipment Series A,
6.50% due 10/1/01 A2/A 516,270
2,510,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-B, 7.20% due 6/1/02 (Kadlec Medical Center Project) Baa1/NR 2,632,488
1,645,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-A, 7.35% due 6/1/02 (Dominican Health Project) Baa/NR 1,701,226
1,040,000 Washington Public Power Supply System Series G Project #1 Rev.,
7.15%due 7/1/01 Aa/AA 1,115,722
2,000,000 Washington Public Power Supply System Project #1 Ref. Rev., 6.50% due 7/1/02 Aa/AA 2,141,380
3,500,000 Washington Public Power Supply System Project #1 Ref. Rev., 5.30% due 7/1/02 Aa/AA 3,576,230
500,000 Washington Public Power Supply System Series C Project #2 Rev., 7.20%
due 7/1/99 Aa/AA 525,915
250,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/02 Aa/AA 274,995
2,000,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/03 Aa/AA 2,199,960
1,700,000 Washington Public Power Supply System Series B Refunding, 7.15% due 7/1/01 Aa/AA 1,823,777
1,000,000 Washington Public Power Supply System Series B, 7.25% due 7/1/00 Aa/AA 1,073,770
1,655,000 Washington Public Power Supply System Series 96-A, 6.00% due 7/1/06
(Insured: MBIA) Aaa/AAA 1,776,278
West Virginia(1.40%)
2,110,000 Cabell County Board of Education Public School Refunding Bonds,
6.00% due 5/1/01 NR/A+ 2,214,909
816,855 Marion County SFMR Series 1992, 7.75% due 7/10/11 Baa/NR 868,456
115,000 Randolph County Building Commission Hospital Revenue, 6.80% due 11/1/97 Baa1/BBB 115,614
2,000,000 West Virginia Statewide Commission Lottery Revenue, 5.50% due 7/1/05
(Insured: MBIA) Aaa/AAA 2,090,780
5,000,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 4.55%
(inverse floater) due 5/15/01 (Insured: FGIC) Aaa/AAA 4,914,950
2,500,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 4.65%
(inverse floater) due 5/15/02 (Insured: FGIC) Aaa/AAA 2,462,475
Wisconsin (1.15%)
705,000 Cady Small Business Pollution Control Revenue Refunding Series 1992, 6.20%
due 4/1/00 (Summit Cheese Project; Guaranteed: SBA) Aaa/AAA 717,211
1,500,000 Wisconsin Health & Education Facilities Authority Series 1992, 5.50%
due 8/15/01 (Wheaton Franciscan Services Inc. Project; Insured: MBIA) Aaa/AAA 1,554,105
3,000,000 Wisconsin Health & Education Facilities Authority, 5.00% due 8/15/98
(Sorrowful Mother Project) NR/AA- 3,036,690
800,000 Wisconsin Health & Education Facilities Authority Wheaton Franciscan, 5.90% due 8/15/05
(Insured: MBIA) Aaa/AAA 853,040
1,045,000 Wisconsin Health & Education Facilities Authority Series 1993, 5.00% due 2/15/99
(Lacrosse Project; Insured: FSA) Aaa/AAA 1,056,641
3,045,000 Wisconsin Health & Education Facilities Authority Revenue, 5.75% due 11/15/01
(Insured: FSA) Aaa/AAA 3,189,546
Wyoming (0.27%)
1,423,860 Evanston Industrial Development Revenue Series 1983, 9.90% due 4/1/04
(Wybanco Project; LOC: Texas Commerce Bank) A2*/A+* 1,446,385
1,000,000 Wyoming Student Loan Corporation Revenue, 6.25% due 12/1/99 NR/AA 1,036,860
TOTAL INVESTMENTS (100%) $906,189,300
<FN>
*Indicates rating on other debt issued by the same issuer, rather
than on the security held by the Fund. These securities are deemed
by the Adviser to be comparable with those of issuers having debt
ratings in the 4 highest grades by Moody's or S & P. +Credit
ratings are unaudited. See notes to financial statements.
</FN>
</TABLE>
i n d e p e n d e n t a u d i t o r ' s r e p o r t
To the Board of Trustees and Shareholders
Thornburg Limited Term Municipal Fund, Inc. National Portfolio
Santa Fe, New Mexico
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Thornburg Limited Term Municipal Fund, Inc. -
National Portfolio as of June 30, 1997, the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1997 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio as of June 30,
1997, the results of its operations, the changes in its net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles.
New York, New York
July 25, 1997
