THORNBURG LIMITED TERM MUNICIPAL FUND-
NATIONAL PORTFOLIO CLASS SHARES
Thornburg Thornburg Thornburg
Ltd Term Muni Ltd Term Muni Ltd Term Muni
Fund-National Fund-National Fund-National
A Shares C Shares I Shares
SEC Yield 3.94% 3.59% 4.41%
Taxable Equiv. Yields 6.52% 5.94% 7.03%
NAV $ 13.45 $ 13.47 $ 13.45
Max. Offering Price $ 13.79 $ 13.47 $ 13.45
1 Year Ending 1.35% 3.47% NA
5 Years Ending 5.19% NA NA
10 Years Ending 6.08% NA NA
Since Inception 7.05% 4.82% 3.86%*
Inception Date (9/28/84) (9/1/94) (7/5/96)
*Not Annualized
Taxable equivalent yields assume a 39.6% marginal federal tax rate.
The municipal funds, except Thornburg Limited Term National, may be subject to
the alternative minimum tax.Currently there are no such investments in
Thornburg Limited Term Municipal National Portfolio, although portions of this
Fund's income may be subject to such a tax in the future. Net investment income
of the National Portfolios will be subject to applicable state and local taxes.
The data quoted represent past performance, and the investment return and
principal value of an investment in the fund will fluctuate. An investor's
shares, when redeemed, may be worth more or less than their original cost.
The total return data shown above reflects the deduction of the maximum sales
charge of the Class A Shares of 2.50%.
l e t t e r t o s h a r e h o l d e r s
Dear Shareholder:
After rising to their highest levels in several years in 1994, interest rates
fell sharply during 1995. During 1996, rates in the U.S. increased again,
although bond yields in most of the world fell sharply. The net asset value of
Thornburg Limited Term Municipal Fund A shares decreased 10 cents per share to
$13.45 during 1996. If you were with us for the entire period, you received
dividends of 62.3 cents per share. If you reinvested your dividends, you
received 63.6 cents per share. Investors who owned C Shares received dividends
of 56.9 and 58 cents per share, respectively.
Strong forces are acting in opposite ways on U.S. interest rates at this time.
The U.S. economy is generally firm and the economies of many developing
countries are growing as well. Americans have been net sellers of individual
municipal and U.S. government bonds, preferring instead to pour money into
stocks, money market funds and, recently, emerging market debt funds. By
themselves, these forces should put upward pressure on our interest rates.
However, most other developed countries have sluggish economies, much lower
interest rates than ours, and currencies that have been depreciating relative to
the U.S. dollar. As a result, foreign money has been pouring into the U.S. bond
market, lifting bond prices and lowering yields from the levels that would
otherwise exist. In the last 2 years, foreign purchases of U.S. Treasury bonds
have accounted for more than 100% of the net issuance of Treasury bonds, up from
an average of approximately 20% between 1980-1994. The graph below illustrates
this trend, which does not appear to be subsiding.
Your Limited Term Municipal Fund Portfolio currently holds approximately 480
obligations from municipal borrowers in 48 states and 2 U.S. territories.
Approximately 87% 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 as follows.
% 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%
I believe that a laddered portfolio of municipal bonds such as yours can usually
outperform a single municipal bond investment, and that it can offer the
additional benefits of convenience, diversification and more favorable balance
of price risk and reinvestment risk. It is not possible to measure every
individual bond from every conceivable starting and ending date against your
fund, however, it is possible to make some comparison. On January 1, 1992 a
representative yield for a $1 million (or more) national market block of AA
rated municipal bonds maturing January 1, 1997 was 4.90%, according to Delphis
Hanover Corporation. Let's assume an investor purchased such a municipal bond at
that time and held it to maturity. On January 1, 1997, this investor's average
annual total return from that bond would have been 4.68%, assuming reinvestment
of the 1992 to 1996 interest payments at prevailing money market rates. The
average annual return would have been 4.90% if the investor was somehow able to
reinvest the interest payments at 4.90%. Your average annual total return on a
purchase of up to $50,000 of Thornburg Limited Term Municipal Fund was 5.19% for
the 5 year period ended January 1, 1997. Your fund return was higher if you made
a larger quantity purchase. Of course, past performance is no guarantee of
future results and returns may be higher or lower in the future.
Currently, Thornburg Limited Term Municipal Fund is the longest running mutual
fund of any description to continuously receive a 5 star rating from
Morningstar.* 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
Managing Director
*Morningstar propriety rating reflects historical risk adjusted performance as
of 12/31/96. 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
12/31/96. There were 340 bond funds with 3-year ratings, 193 bond funds with
5-year ratings and 119 with 10-year ratings in Morningstar's Municipal National
category.
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
December 31, 1996
(unaudited)
ASSETS
Investments, at value (cost $915,407,429) $942,626,765
Cash 1,499,330
Receivable for fund shares sold 609,548
Receivable for securities sold 5,106
Interest receivable 14,613,552
Prepaid expenses and other assets 93,379
TOTAL ASSETS 959,447,680
LIABILITIES
Payable for securities purchased 54,155,576
Dividends payable 1,177,288
Payable for fund shares redeemed 1,735,182
Accounts payable and accrued expenses 514,631
Accounts payable investment adviser (Note 3) 453,076
TOTAL LIABILITIES 58,035,753
NET ASSETS $901,411,927
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($873,253,294 applicable to 64,927,937 shares of beneficial interest
outstanding - Note 4) $13.45
Maximum sales charge, 2.50% of offering
price (2.57% of net asset value per share) .34
Maximum Offering Price Per Share $13.79
Class C Shares:
Net asset value and offering price per share*
($18,648,380 applicable to 1,384,223 shares of beneficial interest
outstanding - Note 4) $13.47
Class I Shares:
Net asset value, offering and redemption price per share
($9,510,253 applicable to 706,952 shares of beneficial interest
outstanding - Note 4) $13.45
* 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
Six Month Period Ended December 31, 1996
(unaudited)
INVESTMENT INCOME
Interest income (net of premium amortized $26,065,114
of $1,196,848)
EXPENSES
Investment advisory fees (Note 3) 2,122,095
Administration Fees (Note 3)
Class A Shares 568,075
Class C Shares 10,912
Class I Shares 2,160
Distribution and service fees (Note 3):
Class A Shares 1,136,150
Class C Shares 54,562
Transfer agent fees 288,379
Custodian fees 172,737
Accounting fees 52,765
Professional fees 51,685
Registration and filing fees 42,556
Other expenses 62,291
TOTAL EXPENSES 4,564,367
Less:
Expenses reimbursed by investment adviser (Note 3) (32,140)
NET EXPENSES 4,532,227
NET INVESTMENT INCOME 21,532,887
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS - NOTE 5
Net realized gain on investments sold 75,241
Increase in unrealized appreciation of investments 6,751,429
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 6,826,670
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $28,359,557
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
(unaudited)
Six Month Period Year Ended
Ended December 31, 1996 June 30, 1996 June 30,1996
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $21,532,887 $43,559,816
Net realized gain (loss) on investments sold 75,241 (69,749)
Increase (Decrease) in
unrealized
appreciation of investments 6,751,429 (1,545,063)
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 28,359,557 41,945,004
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A shares (20,951,776) (43,028,755)
Class B Shares -- (32,246)
Class C Shares (366,154) (498,815)
Class I Shares (214,957) --
FUND SHARE TRANSACTIONS-- (Note 4)
Class A Shares (51,187,137) (12,641,152)
Class B Shares -- (2,834,331)
Class C Shares 2,578,374 9,590,852
Class I Shares 9,415,263 --
NET DECREASE IN NET ASSETS (32,366,830) (7,499,443)
NET ASSETS:
Beginning of period 933,778,757 941,278,200
End of period $901,411,927 $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. The Fund
no longer offers Class B 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 B shares
were sold at net asset value without a sales charge at the time of purchase, but
were subject to a contingent deferred sales charge upon redemption, and bore
both a service fee and a distribution fee, (iii) 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, (iv) Class I shares are sold at net asset
value without a sales charge at the time of purchase, and (v) 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 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 period ended December 31, 1996 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 period ending December
31, 1996, 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 period ended December 31,
1996, the Adviser voluntarily reimbursed certain operating expenses amounting to
$32,140. These expenses may be repaid to the Adviser by the Portfolio, however
such repayment will depend upon the overall level of Portfolio expenses for the
entire fiscal year ending June 30, 1997.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Portfolio shares. For the
period ended December 31, 1996, the Distributor earned commissions aggregating
$61,442 from the sale of Class A shares, and collected contingent deferred sales
charges aggregating $7,524 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 for the
period ended December 31, 1996, 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 December 31, 1996 there were 600,000,000 shares of the Fund (including
485,000,000 for the Portfolio) of $.001 par value common stock authorized, and
capital paid in for the Portfolio aggregated $879,897,240. Transactions in
shares of beneficial interest were as follows:
Six Month Period Year Ended
Ended December 31, 1996 June 30, 1996
----------------- -------------
Class A Shares Shares Amount Shares Amount
Shares sold 3,202,991 $42,942,640 10,705,592 $144,174,891
Shares issued to shareholders
in reinvestment of
distributions 1,030,941 13,832,887 2,128,377 28,634,345
Shares repurchased (8,051,873) (107,962,664)(13,781,715) (185,450,388)
Net Decrease (3,817,941) ($51,187,137) (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 396,983 $5,332,209 1,097,905 $14,807,056
Shares issued to shareholders
in reinvestment of
distributions 22,862 307,259 31,748 427,775
Shares repurchased (228,091) (3,061,094) (420,008) (5,643,979)
Net Increase 191,754 $2,578,374 709,645 $9,590,852
Class I Shares
Shares sold 766,585 $10,214,243 -- --
Shares issued to shareholders
in reinvestment of
distributions 9,759 131,020 -- --
Shares repurchased (69,392) (930,000) -- --
Net Increase 706,952 $9,415,263 -- --
Note 5 - INVESTMENT SECURITY TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of the
Portfolio other than short-term securities aggregated $121,375,562 and
$123,797,519, respectively. The cost of investments for Federal income tax
purposes is $916,061,579. At December 31, 1996, the aggregate gross unrealized
appreciation and depreciation, based on cost for Federal income tax purposes
were $28,375,382 and $1,156,046, respectively.
Accumulated net realized losses from security transactions included in net
assets at December 31, 1996 aggregated $5,704,649.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $4,648,000 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, 1998 - $97,000, June 30, 1999 - $304,000, June 30, 2002 - $807,000,
June 30, 2003 - $602,000, and June 30, 2004 - $2,838,000.
f i n a n c i a l h i g h l i g h t s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Per share operating performance
(for a share outstanding
throughout the period)
Six Month Period
Ending December 31, Year Ended June 30,
1996 1996 1995 1994 1993 1992
(unaudited)
Class of Shares: A A A A A A
Net asset value, beginning of period $13.35 $13.37 $13.27 $13.59 $13.09 $12.83
Income from investment
operations:
Net investment income .31 .63 .64 .63 .68 .79
Net realized and unrealized
gain (loss) on investments .10 (.02) .10 (.32) .50 .26
Total from investment operations .41 .61 .74 .31 1.18 1.05
Less dividends from:
Net investment income (.31) (.63) (.64) (.63) (.68) (.79)
Change in net asset value .10 (.02) .10 (.32) .50 .26
Net asset value, end of period $13.45 $13.35 $13.37 $13.27 $13.59 $13.09
Total return (a) 3.11% 4.60% 5.76% 2.25% 9.24% 8.40%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.61%(b)4.66% 4.86% 4.60% 5.03% 5.96%
Expenses .97%(b) .97% .97% .95% 1.01% 1.04%
Portfolio turnover rate 13.16% 20.60% 23.02% 15.63%19.30% 27.63%
Net assets
at end of period (000)$873,253 $917,831 $931,987 $1,030,293 $895,500 $521,683
(a) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
(b) Annualized.
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Per share operating performance
(for a share outstanding
throughout the period) Period from
Six Month Period Year Ended Sept. 1, 1994 (a)
Ending December 31, June 30, to June 30,
1996 1996 1995
(unaudited)
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 .28 .33 .13 .57 .46 .46
Net realized and unrealized
gain (loss) on investments .10 .18 .05 (.03) .09 .11
Total from
investment operations .38 .51 .18 .54 .55 .57
Less dividends from:
Net investment income (.28) (.33) (.13) (.57) (.46) (.46)
Change in net asset value .10 .18 .05 (.03) .09 .11
Net asset value, end of period 13.47 $13.45 $13.43 $13.37 $13.38 $13.40
Total return (b) 2.90% 3.86% 1.56% 4.05% 4.14% 4.25%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.19%(c)4.97%(c)4.17%(c)4.22%4.24%(c)4.21%(c)
Exp., after expense reductions 1.38%(c) .60%(c)1.59%(c)1.41%1.57%(c)1.60%(c)
Exp., before expense reductions1.50%(c) .89%(c)2.01%(c)1.63%2.30%(c)1.84%(c)
Portfolio turnover rate 13.16%13.16% 20.60% 20.60% 23.02% 23.02%
Net assets
at end of period (000) $18,648$9,510 $0 $15,948 $2,823 $6,469
(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.
(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.
<TABLE>
<CAPTION>
s c h e d u l e o f i n v e s t m e n t s
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
December 31, 1996 CUSIPS: Class A - 532-723-103,Class C - 532-723-509, Class I 532-723-806
NASDAQ Symbols: Class A - LTMFX Class C -LTMCX
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
<S> <C> <C>
Alabama (1.73%)
$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 $1,790,659
515,000 Alabama Higher Education Loan Corporation Student Loan Revenue
Refunding Series 1994-A, 4.70% due 3/1/97 (Insured: FSA) Aaa/AAA 515,819
540,000 Alabama Higher Education Loan Corporation Student Loan Revenue
Refunding Series 1994-A, 4.70% due 9/1/97 (Insured: FSA) Aaa/AAA 543,316
2,250,000 Alabama Industrial Access Road & Bridge Corporation Capital Improvement
Series 1991, 5.60% due 6/1/97 A1/NR 2,268,652
1,000,000 Alabama Water Pollution Control Authority Series 1991, 6.45% due 8/15/02
(Insured: AMBAC) Aaa/AAA 1,079,070
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 2,691,125
1,550,000 Birmingham Jefferson Civic Center Authority Special Tax Series 1989, 7.20% due 1/1/01 A/A+ 1,657,864
1,320,000 Birmingham Jefferson Civic Center Authority Special Tax, 6.90% due 1/1/98 A/A+ 1,349,396
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 1,575,835
1,695,000 Montgomery County Revenue Warrants Series 1992, 6.625% due 4/1/02 NR/A 1,825,498
965,000 Morgan County-Decatur Healthcare Revenue, 5.40% due 3/1/00 (Decatur General Hospital
Project; Insured: Connie Lee) NR/AAA 990,592
Alaska (1.14%)
2,500,000 North Slope Borough G.O. Refunding Series 1992-A, 5.80% due 6/30/02 (Insured: MBIA) Aaa/AAA 2,650,425
2,500,000 North Slope Borough G.O. Capital Appreciation Series B, 0% due 1/1/99 (Insured: MBIA) Aaa/AAA 2,290,250
7,000,000 North Slope Borough G.O. Capital Appreciation Series B, 0% due 1/1/01 (Insured: MBIA) Aaa/AAA 5,797,050
Arizona (3.31%)
5,250,000 Arizona Educational Loan Marketing Corporation Revenue, Series 1992-A, 6.40% due 3/1/98 A/NR 5,385,398
1,250,000 Arizona Educational Loan Marketing Corporation Revenue, Series 1992-A, 6.70% due 3/1/00 A/NR 1,316,275
1,600,000 Arizona State Certificate of Participation Series 1994-A, 5.45% due 5/1/98 (Insured: AMBAC) Aaa/AAA 1,628,272
2,320,000 Arizona Municipal Finance Program Certificate of Participation Series 15, 8.65% due 8/1/04
(Flagstaff Project; Insured: BIG) Aaa/AAA 2,875,849
1,255,000 Maricopa Hospital District General Obligation Series A, 5.00% due 6/1/98 (Insured: FGIC) Aaa/AAA 1,275,544
1,550,000 Maricopa County School District # 8 Series 1992, 0% due 7/1/99
(Osborn Elementary School District Project) A1/A 1,393,776
3,800,000 Maricopa School District # 41 - Gilbert General Obligation, 0% due 7/1/01 (Insured: FGIC) Aaa/AAA 3,098,102
2,000,000 Maricopa County Unified School District # 41 Refunding, 0% due 7/1/97 (Insured: FGIC) Aaa/AAA 1,962,860
2,000,000 Maricopa County/Paradise Valley Unified School District General Obligation
Refunding Series 1992, 0% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,630,580
2,980,000 Maricopa County Unified School District # 97, 0% due 7/1/97 (Insured: FGIC) Aaa/AAA 2,924,661
1,390,000 Maricopa County Unified School District # 97, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 1,307,128
710,000 Mohave County Certificate of Participation, 4.90% due 7/1/98 NR/BBB 705,555
730,000 Mohave County Certificate of Participation, 5.10% due 7/1/99 NR/BBB 721,758
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 2,097,480
80,457 Scottsdale IDA Hospital Revenue Refunding Series A, Amortizing Coupon
M-COATES, 7.50% final due 9/1/97 (Scottsdale Memorial Hospital Project) Aaa*/AAA* 83,410
175,000 South Tucson Municipal Property Corporation Series 1990, 8.20% due 6/1/99 NR/BB 180,796
175,000 South Tucson Municipal Property Corporation Series 1990, 8.25% due 6/1/00 NR/BB 182,346
1,290,000 Tempe General Obligation Series 1993-A, 0% due 7/1/99 Aa/AA+ 1,161,968
1,200,000 Tucson Water System Revenue Refunding Series 1992, 5.80% due 7/1/99 A1/A+ 1,245,120
Arkansas (.08%)
1,000,000 Arkansas State General Obligation College Savings, 0% due 6/1/02 Aa/AA 777,110
California (15.08%)
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 1,054,480
7,440,000 California Health Facilities Financing Authority Series 1991-D, 6.50%
pre-refunded 7/1/01 @ 102 (Catholic Health Care Project; Insured: AMBAC) Aaa/AAA 8,197,169
2,155,000 California Public Capital Improvement Finance Authority Revenue Series
1988-E, 8.25% due 3/1/98 Baa/NR 2,240,144
2,000,000 California State General Obligation, 6.50% due 10/1/99 A1/A 2,121,860
1,225,000 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 1,278,116
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 993,124
1,905,000 Chula Vista Multifamily Housing Refunding Revenue Series 1985, 5.75%
due 11/1/07, mandatory put 11/1/97 (Eucalyptus Grove Project; Insured:
Continental Insurance Co.) NR/A+ 1,909,420
910,000 Fairfield-Suisun Sewer District Revenue Refunding Series A, 6.50% due 5/1/03
(Insued: MBIA) Aaa/AAA 994,848
7,730,000 Glendale Hospital Revenue Series 1994, 7.625% due 1/1/05
(Verdugo Hills Project; Surety Bond: Industrial Indemnity) NR/A+ 8,462,417
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 991,750
5,710,000 Los Angeles Water and Power, 7.10% due 1/15/31, crossover refunded 1/15/01 @102 Aa/AA- 6,359,912
1,500,000 Los Angeles Unified School District Certificate of Participation, 6.20% due 6/1/01
(Dr. Francisco Bravo Medical Project) A/A- 1,586,520
1,400,000 Los Angeles Wastewater System Revenue, 6.80% pre-refunded 8/1/98 @102 AAA/A 1,491,686
2,000,000 Los Angeles County Certificate of Participation Mobile Digital Communications,
7.70% due 7/15/01 Baa1/BBB+ 2,043,160
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 1,571,382
1,050,000 Los Angeles County Certificate of Participation Series B, 5.50% due 7/1/98 A1/A+ 1,068,270
1,000,000 Los Angeles Transit Finance Corporation Certificate of Participation
Series 1992-B, 5.70% due 7/1/99 A1/A+ 1,027,130
1,995,000 Los Angeles Transportation Commission Certificate of Participation, 5.90% due 7/1/00 A1/A+ 2,066,241
2,500,000 Los Angeles Transportation Commission Certificate of Participation, 6.00% due 7/1/01 A1/A+ 2,609,850
2,000,000 MSR Public Power Agency Series 1987-C, 6.70% due 7/1/02 A/A 2,044,300
1,500,000 MSR Public Power Agency Series F, 5.45% due 7/1/01
(San Juan Project; Insured: AMBAC) Aaa/AAA 1,565,535
265,000 New Haven Unified School District Certificate of Participation, 7.00% due 12/1/99 NR/A- 281,838
2,500,000 Orange County Refunding Recovery, 5.10% due 6/1/02 (Insured: MBIA) Aaa/AAA 2,569,000
4,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 4,136,600
7,600,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 8,452,948
5,200,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 5,809,752
1,000,000 Orange County Local Transportation Measure "M" Sales Tax Revenue, 5.50% due 2/15/01 Aa/AA 1,037,950
8,300,000 Orange County Local Transportation Authority Sales Tax Revenue, 2.60%
(inverse floater) due 2/15/99 (Insured: FGIC) Aaa/AAA 8,053,905
13,000,000 Orange County Recovery Certificate of Participation Series A, 5.50% due 7/1/02 (Insured: MBIA)Aaa/AAA13,587,860
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+ 2,056,980
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+ 5,107,650
2,475,000 Oxnard Harbor District Revenue Refunding, 6.60% due 8/1/00 (Insured: Capital Guaranty) Aaa/AAA 2,601,745
2,855,000 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+ 2,854,772
2,100,000 San Joaquin County Certificate of Participation, 5.50% due 9/1/99
(General Hospital Project) A/A- 2,130,471
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 2,096,860
1,310,000 San Marcos PFA Custodial Receipts Revenue, 0% due 7/1/98, Escrowed to Maturity Aaa/NR 1,230,090
1,990,000 San Marcos PFA Custodial Receipts Revenue, 0% due 3/1/99, Escrowed to Maturity Aaa/NR 1,812,273
1,990,000 San Marcos PFA Custodial Receipts Revenue, 0% due 9/1/99, Escrowed to Maturity Aaa/NR 1,771,478
1,995,000 San Marcos PFA Custodial Receipts Revenue, 0% due 3/1/00, Escrowed to Maturity Aaa/NR 1,730,623
4,180,000 Santa Margarita / Dana Point Authority Revenue Improvement District Series A,
9.50% due 8/1/03 (Insured: MBIA) Aaa/AAA 5,293,134
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- 6,299,333
1,000,000 Sonoma County Certificate of Participation Public Works Improvement Program,
5.875% due 8/1/04 (Integrated Waste Project) NR/A+ 1,039,650
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+ 2,040,320
1,300,000 University of California Regents Certificate of Participation Series 1996-A,
5.00% due 6/1/99 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,326,312
1,300,000 University of California Regents Certificate of Participation Series 1996-A,
5.15% due 6/1/00 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,333,475
1,400,000 University of California Regents Certificate of Participation Series 1996-A,
5.25% due 6/1/01 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,444,408
1,400,000 University of California Regents Certificate of Participation Series 1996-A,
5.15% due 9/1/00 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,438,458
1,500,000 University of California Regents Certificate of Participation Series 1996-A,
5.25% due 9/1/01 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,549,965
510,000 University of California Revenue Series A, 11.00% due 9/1/99 NR/A- 593,339
780,000 University of California Revenue Series A, 6.30% due 9/1/00 NR/A- 823,407
Colorado (5.30%)
500,000 Arvada Limited Sales & Use Tax Series 1991, 6.50% due 6/1/01, Escrowed to Maturity Aaa*/NR 537,555
2,355,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 5.90%
due 3/1/01 (Insured: MBIA) Aaa/AAA 2,479,438
1,465,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 6.00%
due 3/1/02 (Insured: MBIA) Aaa/AAA 1,542,997
10,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 5/1/98 NR/CCC 9,513
385,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/98 NR/CCC 363,713
390,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/99 NR/CCC 361,401
490,000 Castle Pines Metropolitan District General Obligation Refunding & Improvement,
7.50% due 12/1/99 (Insured: FSA) Aaa/AAA 532,875
2,000,000 Colorado Housing Finance Authority Capital Appreciation Series A, 0% due 11/1/01 Aa/AA+ 1,529,260
1,000,000 Colorado Certificate of Participation, 4.75% due 5/1/97 (Insured: AMBAC) Aaa/AAA 1,004,170
885,000 Colorado Student Loan Authority Revenue, 6.625% due 6/1/99 A/NR 925,816
1,140,000 Colorado Student Loan Revenue Series 1992-B, 6.20% due 9/1/98 A/NR 1,172,809
855,000 Colorado Student Loan Revenue Series 1992-B, 6.40% due 9/1/99 A/NR 892,269
3,405,000 Colorado Student Loan Revenue Series 1992-B, 6.55% due 12/1/02 A/NR 3,623,907
2,490,000 Colorado Student Obligation Bond Authority Revenue Series 1992-F, 5.90% due 9/1/02 A/NR 2,571,921
3,230,000 Colorado Student Obligation Bond Authority Revenue Series 1994-L, 5.90% due 9/1/00 A/NR 3,356,713
890,000 Denver Housing Corporation Revenue, 7.20% due 10/1/04 (HUD Section 8) A/NR 903,270
1,080,000 Denver City & County Industrial Development Revenue, 7.40% due 3/1/03 NR/BBB+ 1,177,664
(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+ 1,258,950
1,185,000 Denver City & County Industrial Development Revenue, 7.60% due 3/1/05
(University of Denver Project) NR/BBB+ 1,288,379
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- 3,514,945
405,000 Denver City & County Industrial Development Revenue Series 1985, 6.40% due 6/1/10,
put 6/1/99 (4999 Ltd. Project; LOC: Central Bank National Association) NR/A+ 423,926
2,335,000 Denver School District #1 Certificate of Participation Series 1996, 5.25% due 12/15/01
(Insured: AMBAC) Aaa/AAA 2,411,962
2,460,000 Denver School District #1 Certificate of Participation Series 1996, 5.50% due 12/15/02
(Insured: AMBAC) Aaa/AAA 2,574,144
2,175,000 Highlands Ranch Metro District #2 General Obligation, 6.00% due 6/15/04 (Insured: FSA) Aaa/AAA 2,358,157
2,800,000 Jefferson County Industrial Development Refunding Revenue Series 1993,
4.60% due 12/1/97 (Dayton Hudson Project) NR/BBB+ 2,791,461
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 1,982,040
1,000,000 University of Colorado Certificate of Participation, 7.10% due 12/1/99 A/NR 1,073,520
1,750,000 Westminster MFHR, 7.75% due 12/1/07, put 12/1/98 (Green Lawn Apartments
Project; Insured: FGIC) Aaa/AAA 1,777,475
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 2,804,052
1,245,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/00 NR/AA 1,292,820
1,350,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/01 NR/AA 1,406,484
Connecticut(2.53%)
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 1,714,839
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 2,308,343
1,045,000 Capital Region Education Council, 6.375% due 10/15/05 NR/BBB 1,038,981
1,000,000 Connecticut Housing Finance Authority Series 1988-B, 6.90% due 11/15/98 Aa/AA 1,026,250
565,000 Connecticut Housing Finance Authority Series B1, 7.55% due 11/15/08 (LOC: FHA/VA) Aa/AA 567,413
700,000 Connecticut Resource Recovery Authority, 7.125% due 11/15/08 (Wallingford Project;
LOC: National Westminister) Aa2/AA 723,758
10,000,000 Connecticut Unemployment Compensation Advance Fund Refunding Revenue Series 1996-A,
5.50% due 5/15/01 (Insured AMBAC) Aaa/AAA 10,416,500
1,000,000 Connecticut Special Tax Obligation Revenue Series C, 7.40%
due 10/1/04, pre-refunded 10/1/98 NR/AAA 1,077,790
5,540,000 Connecticut State Special Tax Obligation Series 1989-B, 0% due 7/1/99
(Transportation Infrastructure Project; Insured: AMBAC) Aaa/AAA 4,977,358
Delaware (.17%)
1,500,000 Delaware Solid Waste System Revenue, 6.00% due 7/1/03 (Insured: MBIA) Aaa/AAA 1,615,005
District of Columbia (1.81%)
1,000,000 District of Columbia General Obligation 1986 Series A, 7.60% due 6/1/00, pre-refunded 6/1/97 Aaa*/B 1,030,760
1,000,000 District of Columbia General Obligation 1988 Series A, 7.65% due 12/1/03 (Insured: MBIA) Aaa/AAA 1,085,110
1,505,000 District of Columbia General Obligation Capital Appreciation Refunding,
0% due 6/1/02 (Insured: MBIA) Aaa/AAA 1,153,583
3,380,000 District of Columbia General Obligation 1994 Series A-3, 4.90% due 6/1/00 Ba/B 3,342,888
1,500,000 District of Columbia General Obligation Refunding Series A, 5.30% due 6/1/00 Ba/B 1,502,250
2,000,000 District of Columbia General Obligation Refunding Series A, 5.50% due 6/1/01 (Insured: FSA) Aaa/AAA 2,063,060
4,000,000 District of Columbia Certificate of Participation Series 1993, 6.875% due 1/1/03 NR/B- 4,097,440
1,000,000 District of Columbia Revenue, 6.00% due 7/15/03 (Children's Hospital Project; Insured: FGIC) Aaa/AAA 1,059,680
1,330,000 District of Columbia Revenue, 6.00% due 8/15/05 (Medlantic Healthcare Project; Insured: MBIA) Aaa/AAA 1,424,071
275,000 District of Columbia Association of American Medical College, 7.20% due 2/15/01 NR/AA- 297,897
25,000 District of Columbia Health Revenue Assoc. of American Medical Colleges, 0% due 2/15/02 NR/AA- 17,758
Florida (3.12%)
550,000 Brevard County Tourist Development Tax Revenue, 6.325% due 3/1/03 (Florida Marlins'
Training Facilities) (Nova University Project) Escrowed to Maturity NR/NR 565,339
620,000 Cape Coral Special Assessment, 6.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 640,981
3,000,000 Collier County School Board Certificates of Participation, 5.50% due 2/15/03 (Insured: FSA) Aaa/AAA 3,122,760
5,000,000 Dade County Solid Waste System Special Obligation Revenue, 5.25% due 10/1/03
(Insured: AMBAC) Aaa/AAA 5,158,300
6,590,000 Dade County Housing Finance Authority Multifamily Mortgage Revenue Series 1985-A,
4.60% due 1/1/15, put 1/1/99 (Gulf View Apartments Project; LOC: Sumitomo & Credit Suisse) NR/AAA 6,603,575
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+ 3,026,550
3,000,000 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 3,015,420
770,000 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 777,970
760,000 Florida Housing Finance Authority Capital Appreciation Residential
Mortgage Revenue, 0% due 7/15/01 (LOC: Citibank) NR/AA 471,489
1,500,000 Florida Housing Finance Agency Revenue, 6.25% due 12/1/06
(Hammocks Place Project) NR/AAA 1,568,415
1,000,000 Lee County School Board Certificate of Participation, 6.20% due 8/1/00 (Insured: FSA) Aaa/AAA 1,050,710
1,195,000 Lee County School Board Certificate of Participation, 6.30% due 8/1/01 (Insured: FSA) Aaa/AAA 1,284,159
665,000 Martin County Combined Special Assessment Series 1990-A, 8.125% due 3/1/01 NR/NR 733,036
445,000 North Broward Hospital Revenue, 5.80% due 1/1/00 (Insured: MBIA) Aaa/AAA 463,472
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+ 974,056
Georgia (.95%)
2,930,000 Augusta Housing Authority MFHR Series 1992, 5.50% due 4/1/05, put 4/1/97
(Stevens Creek Commons Project; LOC: Federal Home Loan Bank) NR/AAA 2,945,441
1,590,000 Burke County Development Authority Pollution Control Revenue, 6.25% due 1/1/03
(Insured: MBIA) Aaa/AAA 1,714,895
3,250,000 DeKalb County Multi-family Housing Revenue Series 1985-G, 5.50% due 7/15/07,
put 7/15/97 (DeKalb Crossing Project; Insured: Continental Casualty) NR/A+ 3,255,103
1,000,000 Gwinnett County Dev Auth Rev, 6.95% due 6/1/01 (Mead Corp. Project) Escrowed to Maurity NR/AAA* 1,052,910
Hawaii (1.12%)
6,000,000 Hawaii State Refunding Series CB, 5.00% due 1/1/00 Aa/AA 6,125,520
2,000,000 Hawaii Airport System Revenue Refunding, 5.10% due 7/1/99 (Insured: MBIA) Aaa/AAA 2,043,720
840,000 Hawaii State Department Budget & Finance Special Purpose Mortgage
Revenue, 7.125% due 7/1/98 (Wahiawa General Hospital Project) NR/BBB- 861,403
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 1,545,090
Idaho (.61%)
589,286 Boise Industrial Development Corporation IDRB Series 1985, 10.816% due 8/29/00
(Associated Dairies Project; Guaranteed: Chemical Bank) A2*/A* 589,350
4,980,000 Idaho Falls Electric Revenue Refunding, 0% due 4/1/00 (Insured: FGIC) Aaa/AAA 4,291,664
820,000 Idaho Student Loan Marketing Association Refunding Revenue Series 1992,
6.40% due 10/1/99 NR/NR 836,605
Illinois (1.24%)
3,350,000 Cook County Community Unified School District #401 Series 1996, 0% due 12/103
(Insured: FSA) Aaa/AAA 2,390,325
1,455,000 Cook County Community College District 508 COP, 7.70% due 1/1/97 (Insured: FGIC) Aaa/AAA 1,455,000
1,800,000 Cook County Community College District 508 COP, 8.50% due 1/1/02 (Insured: FGIC) Aaa/AAA 2,101,122
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 1,025,770
2,000,000 Illinois Health Facilities Authority Revenue Series 1992, 7.00% due 7/1/02
(Trinity Medical Center Project) Baa1/NR 2,061,900
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 1,040,400
1,575,000 Winnebago & Boone Counties School District # 205 G.O., 7.00% due 2/1/98 (Insured: FSA) NR/AAA 1,629,495
Indiana (4.05%)
1,195,000 Columbus School Building Corporation, 5.50% due 1/15/01 (Insured: MBIA) Aaa/AAA 1,240,004
1,255,000 Columbus School Building Corporation, 5.50% due 1/15/02 (Insured: MBIA) Aaa/AAA 1,305,150
895,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 6/15/99 NR/NR 925,296
570,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 12/15/99 NR/NR 592,469
2,000,000 Indiana Bond Bank Series B, 7.25% due 2/1/01 (Special Loan Program) A/A 2,094,000
1,120,000 Indiana Bond Bank Special Program Series 1992-B, 5.60% due 8/1/99 NR/A 1,154,922
1,000,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A,
5.30% due 2/1/99 NR/A 1,020,690
2,640,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A,
5.50% due 2/1/00 NR/A 2,715,874
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 3,422,970
1,500,000 Indiana Health Facilities Revenue, 5.55% due 7/1/01
(Marion General Hospital Project; Insured: MBIA) Aaa/AAA 1,559,805
500,000 Indianapolis Economic Development Revenue, 8.625% due 12/1/07, put 12/1/97
(Suncrest Project; FNMA Collateralized) NR/AAA 522,660
6,200,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev Series 1996,
6.00% due 1/10/01 NR/NR 6,289,528
1,220,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/05 Aa/AA- 787,290
1,240,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/06 Aa/AA- 752,308
10,000,000 Jasper County Pollution Control Revenue Series 1994-C, 5.10% due 4/1/19, put
1/2/97 daily demand notes (LOC: United Bank of Switzerland) Aaa/VMIG1 10,000,000
1,645,000 Logansport Multi-Purpose School Building Corporation First Mortgage
Refunding Series 1992, 5.50% due 7/1/01 NR/A 1,703,891
1,000,000 Purdue University Certificates of Participation Series 1996, 4.65% due 7/1/02 Aa2/AA- 995,930
1,100,000 Purdue University Certificates of Participation Series 1996, 4.75% due 7/1/03 Aa2/AA- 1,098,724
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 530,750
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 1,316,140
500,000 Iowa Higher Educational Loan Facilities Authority, 5.50% due 8/1/02 (Insured: MBIA) Aaa/AAA 500,790
1,500,000 Iowa Certificate of Participation, 6.10% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,589,895
2,000,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue 1991
Series C, 6.80% due 12/1/02 Aaa/AAA 2,145,500
750,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue
Series A, 6.35% due 3/1/01 Aa1/NR 780,735
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+ 2,765,412
4,445,000 Muscatine Electric Revenue Refunding Series 1992, 5.40% due 1/1/00 (Insured: AMBAC) Aaa/AAA 4,585,018
Kansas (.91%)
1,000,000 Kansas City Industrial Revenue Series 12/1/84, 7.20% due 12/1/04
(Ash Grove Cement Project) Aa2/NR 1,034,050
2,000,000 Lenexa Industrial Revenue Series 8/1/83, 9.50% due 8/1/98 (J.C. Nichols Co. Project) NR/NR 2,138,020
10,000 Olathe Single Family Mortgage Revenue Series A, 9.375% due 11/1/00 NR/A 10,251
1,000,000 Sedwick County Unified School District No. 265, 8.20% due 10/1/03 (Insured: FSA) Aaa/AAA 1,205,660
4,025,000 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+ 4,220,213
Kentucky (.80%)
4,500,000 Jefferson County Insured Hospital Revenue Series 1992, 7.77% (inverse floater)
due 10/1/02 (Alliant Health Systems; Insured: MBIA) Aaa/AAA 5,085,000
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 2,497,016
Louisiana (4.25%)
2,020,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/00 (Insured: FGIC) Aaa/AAA 2,227,434
2,165,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/01 (Insured: FGIC) Aaa/AAA 2,441,211
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 1,088,901
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 973,810
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 1,153,860
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 1,036,893
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 1,198,132
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 3,006,570
3,000,000 Louisiana PFA Student Loan Revenue Series A-1, 5.90% due 3/1/99 Aaa/NR 3,068,760
2,250,000 Louisiana PFA Student Loan Revenue Series A-1, 6.10% due 3/1/00 Aaa/NR 2,326,793
1,850,000 Louisiana PFA Local Government G.O. Refunding Series A, 4.85% due 3/1/99
(Insured: FSA) Aaa/AAA 1,877,620
915,000 Louisiana PFA MFHR, 5.95% due 3/15/05 (Oakleigh Apts. Project; LOC: AXA Guaranty) NR/AA 939,696
1,500,000 Louisiana General Obligation Refunding Series 1987-B, 8.00% due 5/1/00,
pre-refunded 5/1/97 (Insured: Capital Guaranty) NR/AAA 1,551,300
2,125,000 Louisiana Unlimited Tax General Obligation Series A, 6.00% due 8/1/01 (Insured: FGIC) Aaa/AAA 2,256,495
2,450,000 Louisiana Recovery District Sales Tax Refunding Series 1992, 5.70% due 7/1/98 A/A- 2,514,362
5,000,000 Louisiana Recovery District Sales Tax Refunding Series 1992,
5.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 5,114,000
500,000 Louisiana State University Agricultural & Mechanical College Board,
7.70% due 4/15/02, Escrowed to Maturity NR/AAA* 570,575
5,815,000 Orleans Levee District Public Improvement Trust Receipts Series 1995-A, 5.95%
due 11/1/01 (Insured: FSA) Aaa/NR 6,192,801
460,000 Ouachita Parish Hospital Revenue District # 1 Series 1991, 7.25% due 7/1/01 NR/A- 508,259
Maine (.38%)
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 3,076,590
500,000 Regional Waste Systems Incorporated Series A-C, 7.30% due 7/1/98 NR/AA 522,530
Maryland (.36%)
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 2,158,160
1,105,000 Washington Suburban Sanitary District Series 1994, 8.75% due 6/1/99 Aa1/AA 1,222,826
Massachuse (5.67%)
1,000,000 Boston General Obligation Series A, 7.25% due 7/1/99 A/A+ 1,061,180
1,600,000 Boston General Obligation Series A, 7.60% due 2/1/04, prerefunded 2/1/99 Aaa+/A+ 1,741,104
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 1,111,020
90,000 Haverhill General Obligation Municipal Purpose Loan Series 1991, 7.50% due 10/15/11 Baa/BBB 99,588
765,000 Holyoke General Obligation, 9.85%, due 11/1/08, refunded 11/1/97 @ 102 Aaa/NR 815,452
595,000 Holyoke General Obligation Electric Revenue Series 1991-A, 8.00% due 6/1/01 Baa/NR 641,243
500,000 Holyoke General Obligation Sewer Revenue Series B, 8.00% due 6/1/01 Baa/NR 534,865
1,670,000 Holyoke General Obligation School Project Loan Act of 1948, 7.35% due 8/1/02 Baa/NR 1,855,520
1,060,000 Lynn General Obligation, 7.00% due 1/15/04 Baa1/NR 1,149,167
660,000 Massachusetts Educational Loan Revenue Series 1985-C, 7.875% due 6/1/03
(LOC: Rabobank Nederland) NR/AAA 684,017
2,000,000 Massachusetts General Obligation Consolidated Loan of 1991 Series B, 0% due 6/1/01 A1/A+ 1,641,000
2,000,000 Massachusetts General Obligation Consolidated Series 1987-A, 5.75% due 3/1/99 A1/A+ 2,044,900
2,315,000 Massachusetts Dedicated Income Tax Series A General Obligation, 7.875% due 6/1/97 A1/A+ 2,357,272
3,000,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/00 A1/A+ 2,560,260
2,500,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/02 A1/A+ 1,928,825
690,000 Massachusetts State Health & Education Facilities Authority Series B, 6.50% due 7/1/97
(Charlton Hospital Project) A/A 698,584
1,465,000 Massachusetts State Health & Education Facilities Authority Series B, 6.70% due 7/1/98
(Charlton Hospital Project) A/A 1,508,716
1,245,000 Massachusetts State Health & Education Facilities Authority Series B, 6.875% due 7/1/99
(Charlton Hospital Project) A/A 1,301,610
2,650,000 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 2,674,380
2,500,000 Massachusetts IFA Recovery Refunding Revenue Series 1993-A, 5.45% due 7/1/01
(Insured: FSA) Aaa/AAA 2,586,525
1,910,000 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 1,918,977
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 4,999,650
2,080,000 New Bedford Industrial Revenue, 7.42% due 7/1/02 (Aerovox Corporation Project) NR/A- 2,135,910
2,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-E, 5.00% due 7/1/99 A1/A- 2,026,220
1,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1992-F, 6.50% due 9/1/02 Aa/NR 1,078,560
3,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-B, 5.40% due 6/1/00 A1/A- 3,066,390
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/97 Baa1/NR 445,408
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/98 Baa1/NR 462,986
295,000 South Essex Sewer District General Obligation, 9.00% due 12/1/99 Baa1/NR 332,610
550,000 Springfield General Obligation, 7.75% due 5/1/99 Baa/NR 586,801
250,000 Springfield General Obligation, 7.75% due 5/1/00 Baa/NR 271,402
300,000 Springfield General Obligation, 7.75% due 5/1/01 Baa/NR 330,408
300,000 Springfield General Obligation, 7.80% due 5/1/02 Baa/NR 331,728
1,500,000 Tanton General Obligation, 8.00% due 2/1/06 (Insured: MBIA) Aaa/AAA 1,830,135
2,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A, 6.80% due 5/1/99 A1/A+ 2,117,940
1,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A, 7.15% due 5/1/03 A1/A+ 1,134,710
1,250,000 Worcester Municipal Purpose Loan of 1991 General Obligation,
6.80% due 5/15/01 (Insured: MBIA) Aaa/AAA 1,364,637
Michigan (2.43%)
1,300,000 Detroit General Obligation Series 1990-A, 8.50% due 4/1/00 Ba1/BBB 1,432,935
1,500,000 Detroit Distributable State Aid General Obligation Unlimited Series 1992,
5.625% due 5/1/97 Baa/BBB+ 1,510,335
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 3,172,890
1,000,000 Flint Hospital Building Authority, 4.20% due 7/1/15, put 1/7/97 weekly demand notes
(LOC: LaSalle National Bank) A1/VMIG1 1,000,000
1,200,000 Flint Tax Increment Finance Authority Limited Tax General Obligation Series 1985,
9.30% due 6/1/97, Escrowed to Maturity Baa/AAA* 1,227,660
1,325,000 Michigan State Hospital Finance Authority Revenue Series 1991-A, 8.30% due 9/1/02 Ba/BBB- 1,391,064
6,570,000 Michigan State Housing Development Authority Rental Housing Rev. Series 1992-A,
5.40% due 4/1/98 (Detroit Edison Project) NR/A+ 6,659,746
1,865,000 Wayne County Wastewater Control System Limited Tax General Obligation
Refunding, 7.875% due 5/1/02 Baa/BBB- 2,072,854
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* 2,316,860
1,940,000 West Ottowa Public Schools General Obligation Unlimited Tax, 6.30% due 5/1/03
(Insured: FGIC) Aaa/AAA 2,106,297
Minnesota (2.36%)
4,820,000 Burnsville MFHR Series 1991, 7.20% due 5/1/11, put 5/1/02
(The Atrium Project; Insured: Trygg-Hansa) 5,019,934
975,000 Coon Rapids Industrial Development Ref. Rev., 6.75% due 12/1/01 (LOC: Norwest Bank) Aa3/AA 991,741
2,000,000 Hennepin County G.O. Solid Waste Revenue Refunding Series 1992, 4.65% due 10/1/97 Aaa/AAA 2,016,820
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 1,537,230
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+ 3,269,013
5,000,000 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 5,000,500
595,000 Minneapolis MFHR Refunding Series 1991, 6.75% due 10/1/01
(Churchill Apartments Project; FHA Insurance Mortgage) NR/AAA 631,259
1,250,000 Minneapolis School District Certificate of Participation, 5.30% due 2/1/00 Baa1/A 1,264,800
1,510,000 Minneapolis-Saint Paul Single Family Housing Revenue Series A, 8.25% due 11/1/07 NR/AAA 1,562,608
945,000 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- 956,359
Mississippi (.55%)
2,000,000 Mississippi Higher Education Assistance Corporation Student Loan Revenue
Series 1992 NR/A 2,059,560
1,100,000 Mississippi Hospital Equipment & Facilities Authority Revenue, 8.60%
due 1/1/01 Baa/NR 1,179,871
1,900,000 Ridgeland Multifamily Housing Rev. Series 1985, 6.50% due 10/1/07, put 10/1/97
(Sunchase Apartments Project) NR/AAA 1,914,098
Missouri (1.65%)
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 1,588,510
4,000,000 Missouri Higher Education Loan Authority Student Loan Revenue Refunding,
5.50% due 2/15/00 Aa/NR 4,080,040
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 3,041,280
760,000 Missouri State Housing Development Authority Revenue, 6.30% due 7/15/99 Aa/AA+ 771,993
1,055,000 Missouri Health & Education Facilities Authority Revenue, 0% due 1/1/02
(Missouri Baptist Medical Center Project) Escrowed to Maturity Aaa*A- 794,605
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 279,421
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 356,382
820,000 St. Louis County Industrial Development Authority Housing Revenue
Series 1992-A, 6.00% due 6/1/98 A/NR 838,926
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 3,832,826
Montana (.16%)
1,000,000 Billings Tax Increment Urban Renewal Series 1987-A,
8.65% due 3/1/99, refunded 3/1/98 Aaa/NR 1,055,490
435,000 Montana Higher Education Student Loan Revenue Series 1992-A, 6.70% due 12/1/01 A/NR 466,272
Nebraska (.77%)
2,970,000 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 3,011,639
2,500,000 Nebraska Public Power District Series 1993, 5.10% due 1/1/00 A1/A+ 2,553,625
1,500,000 Nebraska Investment Finance Authority Hospital Equipment Revenue, 6.85% due 3/1/02
(Insured: MBIA) Aaa/AAA 1,646,175
Nevada (.51%)
760,000 Las Vegas Downtown Redevelopment Project Revenue, 7.65% due 6/1/97 Baa/A- 767,494
780,000 Las Vegas Valley Water District, 6.60% due 8/1/98 (Insured: AMBAC) Aaa/AAA 810,661
1,085,000 Washoe County Airport Authority Revenue Refunding, 5.30% due 7/1/00 (Insured: MBIA) Aaa/AAA 1,113,177
1,325,000 Washoe County Airport Authority Revenue Refunding, 5.45% due 7/1/01 (Insured: MBIA) Aaa/AAA 1,369,772
700,000 Washoe County Airport Authority Revenue Refunding, 5.60% due 7/1/02 (Insured: MBIA) Aaa/AAA 729,848
New Hampshire (.32%)
920,000 New Hampshire Industrial Development Authority Revenue Series 1995,
7.70% due 7/1/00 (Electra/ PJ-Allied Project) A2/NR 921,674
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 2,131,967
New Jersey (.53%)
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 2,404,512
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 1,113,350
1,000,000 New Jersey Turnpike Authority Revenue Series A, 5.70% due 1/1/01 Baa1/BBB+ 1,039,400
421,434 New Jersey Wastewater Treatment Trust - Wastewater Treatment Insured Loan
Revenue Series 1987, Amortizing Coupon M-COATES, 9.00% due 9/1/97 Aaa*/AAA* 441,899
New Mexico (1.00%)
5,390,000 Jicarilla Apache Tribe Tribal Revenue Refunding, 7.75% due 7/1/05 NR/A 5,505,508
239,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 7/1/97 (ETM) NR/AAA 245,424
261,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 7/1/98 (ETM) NR/AAA 280,173
273,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/99 (ETM) NR/AAA 298,596
285,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 7/1/99 (ETM) NR/AAA 317,148
298,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/00 (ETM) NR/AAA 336,850
326,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/01 (ETM) NR/AAA 379,546
745,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.75% due 6/1/04 NR/A 766,679
510,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.90% due 6/1/05 NR/A 528,085
775,000 Santa Fe Solid Waste Management Agency Facility Revenue, 6.00% due 6/1/06 NR/A 804,876
New York (4.38%)
1,785,000 Islip Resource Recovery Agency Series 85-D, 5.95% due 7/1/03 (Insured: AMBAC) Aaa/AAA 1,920,000
630,000 Jamestown General Obligation Series A, 7.00% due 3/15/97 Baa/NR 634,246
500,000 Metropolitan Transit Authority Service Contract Commuter Fac Rev, 7.00% due 7/1/02 Baa1/BBB 542,825
3,000,000 Metropolitan Transit Authority Series M, 5.10% due 7/1/98 Baa/BBB+ 3,031,470
2,760,000 New York City General Obligation Series D, 6.30% due 2/1/01 Baa1/BBB+ 2,884,697
2,695,000 New York City General Obligation Series E, 6.30% due 8/1/01 Baa1/BBB+ 2,830,046
1,000,000 New York City General Obligation Series E, 7.00% due 8/1/04 Aaa/AAA 1,130,950
1,140,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 1,234,495
100,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 106,473
2,175,000 New York City Municipal Water Finance Authority Water & Sewer System Revenue,
7.10% due 6/15/97 A/A- 2,209,234
1,000,000 New York City Municipal Water Finance Authority Water & Sewer System Revenue,
7.15% due 6/15/98 A/A- 1,044,230
3,000,000 New York Dorm Authority Revenue State University Educational Facilities, 5.25%
due 7/1/02 (Insured: AMBAC) Aaa/AAA 3,103,980
1,000,000 New York Dorm Authority Revenue State University Educational Facilities Series A,
7.00% due 5/15/04 Baa1/BBB+ 1,099,020
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 7,615,777
1,555,000 New York State Health Facilities Revenue Refunding Series 1990-A,
7.90% due 11/1/99 Baa/BBB+ 1,649,295
1,500,000 Local Government Assistance Corporation Revenue Series D, 6.50% due 4/1/02 A/A 1,629,570
1,500,000 New York State Medical Care Facilities Finance Agency 1991 Series A, 7.25%
due 2/15/01 Baa1/BBB+ 1,623,045
2,500,000 New York State Urban Development Corporation, 7.60% due 4/1/03,
pre-refunded 4/1/01 AAA/BBB 2,839,975
2,500,000 Syracuse Industrial Development Authority Pilot Revenue Refunding Series 1995,
5.125% due 10/15/02 (LOC: ABN AMRO Bank) NR/AA 2,505,875
1,000,000 Triborough Bridge and Tunnel Authority, 6.50% due 1/1/04 (Insured: MBIA) Aaa/AAA 1,082,320
570,000 Westchester County I.D.A. Civic Facility Revenue, 6.25% due 4/1/05
(Julia Dykman Project) NR/BBB 579,656
North Carolina (.59%)
2,860,000 Carteret County Certificate of Participation Series 1992, 6.50% due 2/1/00
(Elementary School Project) Baa1/BBB+ 2,972,741
535,000 North Carolina Housing Finance Authority Single Family Housing Revenue, 6.80%
due 7/1/08 (Insured: FHA/VA) Aa1/AA+ 539,012
1,865,000 North Carolina Municipal Power Agency No. 1 Catawba Electrical Revenue, 6.00% due 1/1/05
(Insured: MBIA) Aaa/AAA 2,005,509
North Dakota(.24%)
1,000,000 North Dakota Building Authority Refunding Revenue Series 1993-A, 5.15% due 6/1/00
(Insured: AMBAC) Aaa/AAA 1,022,240
1,250,000 North Dakota Student Loan Revenue, 5.45% due 7/1/02 (Insured: AMBAC) Aaa/AAA 1,239,088
Ohio (3.36%)
1,000,000 Barberton Hospital Facilities Series 1992, 6.65% due 1/1/02 A/NR 1,067,290
2,000,000 Belmont County IDRB Series 1991, 6.50% due 1/1/00 (May Department Stores Co. Project) NR/A 2,095,080
400,000 Cambridge Hospital Revenue Refunding Series 1991, 7.25% due 12/1/97 NR/BBB 410,308
1,500,000 Cincinnati School District Revenue Anticipation Notes, 5.75% due 6/15/98 NR/A- 1,535,880
1,000,000 Cincinnati School District Revenue Anticipation Notes, 6.15% due 6/15/02 NR/A- 1,073,360
1,250,000 Cincinnati School District Revenue Anticipation Notes, 6.05% due 6/15/00 NR/A- 1,316,725
2,250,000 Clermont County Hospital Facilities Revenue Refunding Series 1993-B, 4.70% due 9/1/99
(Mercy Health System Project; Insured: MBIA) Aaa/AAA 2,277,990
2,000,000 Cleveland Certificate of Participation, 7.10% due 7/1/02
(Motor Vehicle & Community Equipment Project) Baa/BBB 2,116,140
5,000,000 Cleveland School District Revenue Anticipation Notes Series 1993, 4.70% due 6/1/99
(Insured: AMBAC) Aaa/AAA 5,052,900
2,620,000 Cuyahoga County Housing Revenue Series 1993, 7.00% due 4/1/00
(North Coast Community Homes Project) NR/NR 2,690,609
1,000,000 Erie County Hospital Improvement Refunding Revenue Series 1992, 6.25%
due 1/1/01 (Firelands Community Hospital Project) A/A- 1,046,660
2,000,000 Franklin County General Obligation, 6.375% due 12/1/17, pre-refunded 12/1/01 @102 Aaa/AAA 2,202,340
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 1,162,337
3,095,000 Ohio Water Development Authority Safe Water Refunding Series 1992,
0% due 12/1/00 (Insured: MBIA) Aaa/AAA 2,606,918
1,060,000 Switzerland Local School District of Monroe County Revenue Anticipation Notes
Series 1995, 6.25% due 6/15/00 NR/NR 1,073,059
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 2,969,804
910,000 Washington County Hospital Facilities Revenue, 6.875% due 9/1/02
(Marietta Area Health Project) Baa1/NR 956,801
Oklahoma (.83%)
1,190,000 Broken Arrow Utility System & Sales Tax Revenue Refunding Series 1992-A, 6.00%
due 5/1/01 (Insured: FGIC) Aaa/AAA 1,261,400
210,000 Comanche County SFMR Refunding 1990 Series, 7.60% due 12/1/98 A1/NR 218,408
220,000 Comanche County SFMR Refunding 1990 Series, 7.65% due 6/1/99 A1/NR 229,845
1,060,000 Oklahoma City Municipal Improvement Authority Water & Sewer Revenue Series
Refunding A, 0% due 7/1/00 (Insured: AMBAC) Aaa/AAA 905,876
1,220,000 Pushmatahah County Town of Antlers Hospital Authority Revenue Refunding
Series 1991, 8.75% due 6/1/03 NR/NR 1,332,350
1,155,000 Tulsa Industrial Development Hospital Revenue, 5.60% due 2/15/03
(St. Johns Medical Center Project) Aa/AA 1,189,673
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 1,961,864
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 765,262
Oregon (.69%)
2,500,000 Clackamas County Hospital Facilities Revenue, 6.10% due 10/1/01 A1/AA- 2,649,100
1,325,000 Emerald Peoples Utility District Revenue, 7.20% due 11/1/03 (Insured: FGIC) Aaa/AAA 1,519,325
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 2,039,300
260,000 Springfield General Obligation, 6.70% due 10/1/00 A/A 261,760
Pennsylvania (4.48%)
1,900,000 Allentown Area Hospital Authority Revenue Series 1991, 7.75% due 7/1/98
(Sacred Heart Hospital Project) NR/BBB 1,975,278
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 1,263,125
1,000,000 Chester County Utility, 7.00% pre-refunded 8/1/01 Aa/AAA* 1,103,320
550,000 Clairton School District General Obligation, 0% due 11/1/99 NR/A 482,768
500,000 Clairton School District General Obligation, 0% due 11/1/02 NR/A 376,560
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 3,054,982
2,500,000 Delaware County Industrial Development Authority Refunding Revenue Series A,
7.40% due 12/1/98 (Resource Recovery Project; LOC: Bank of America) Aa3/AA- 2,613,000
2,030,000 Erie School District General Obligation, 0% due 6/1/00, Escrowed to Maturity Aaa*/A 1,736,685
1,000,000 Erie School District General Obligation, 0% due 12/1/00, Escrowed to Maturity Aaa*/A 836,200
3,365,000 Harrisburg Authority Commonwealth Lease Revenue Series 1991,
6.25% due 6/1/00 (Insured: FSA) Aaa/AAA 3,560,338
1,300,000 Harrisburg Authority Lease Revenue, 6.50% due 6/1/04
crossover refunded 6/1/01 (Insured: FSA) Aaa/AAA 1,417,533
1,455,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/00 NR/A 1,225,968
1,680,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/02 NR/A 1,270,382
1,000,000 Pennsylvania Infrastructure Authority Revenue Pennvest Subseries B, 6.25% due 9/1/02 NR/AA+ 1,079,650
2,000,000 Pennsylvania State Refunding & Projects General Obligation Series A, 6.50% due 1/1/00 A1/AA- 2,124,920
4,085,000 Pennsylvania State Certificate of Participation, 4.60% due 12/1/97 A/A- 4,118,048
715,000 Pennsylvania State Higher Education Facilities Authority Revenue, 6.15% due 4/1/04 Baa/NR 738,095
875,000 Pennsylvania State Higher Education Facilities Authority Revenue, 8.05% due 3/1/97 Baa/BBB 881,370
1,770,000 Philadelphia Gas Works Revenue 14th Series, 5.60% due 7/1/99 Baa1/BBB 1,809,683
2,600,000 Philadelphia Water & Wastewater Revenue Series 1993, 4.875% due 6/15/01
(Insured: FSA) Aaa/AAA 2,638,922
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+ 2,390,498
3,000,000 Southeastern Pennsylvania Transportation Authority Series 1994, 6.00% due 6/1/99
(LOC: Canadian Imperial Bank of Commerce) Aa3/AA- 3,125,550
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 2,418,398
Puerto Rico (.14%)
250,000 Puerto Rico Public Improvement General Obligation, 6.60% due 7/1/04 Baa/A- 280,160
1,000,000 Puerto Rico Electric Power Revenue Refunding Series 1992-Q, 5.70% due 7/1/00 Baa1/A- 1,036,170
Rhode Island(.43%)
2,000,000 Rhode Island Depositor's Economic Protection Corp. Series 1992-A, 6.10% due 8/1/02
(Insured: FSA) Aaa/AAA 2,146,960
680,000 Rhode Island Health & Educational Building Corporation Health Facilities
Revenue, 8.00% due 7/1/00 (Steere House Issue Project) NR/NR 717,658
1,169,000 Rhode Island Industrial Facilities Corporation Series 1991, 5.875% due 6/1/02
(Paramount Cards, Inc. Project; LOC: Bank of Scotland) A1/NR 1,193,233
South Caro (.72%)
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 548,965
2,000,000 Piedmont Municipal Power Agency Series 1992, 5.20% due 1/1/98
(Electric Revenue Project) A/BBB 2,030,240
860,000 Piedmont Municipal Power Agency Electric Revenue, 6.25% due 1/1/04 (Insured: FGIC) Aaa/AAA 926,822
1,800,000 Piedmont Municipal Power Agency Electric Revenue, 4.20% due 1/1/25, put 1/7/97
weekly demand notes (Insured: MBIA) A1/VMIG1 1,800,000
500,000 South Carolina State Housing Authority Multifamily Revenue, 7.375% due 12/1/07 NR/NR 455,000
915,000 York County School District No. 4, 7.00% due 3/1/03 (Insured: FGIC) Aaa/AAA 1,030,464
South Dako (.31%)
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 1,445,864
1,250,000 South Dakota Lease Revenue Series 93-B, 8.00% due 9/1/03 (Insured: FSA) Aaa/AAA 1,473,913
Tennessee (1.17%)
5,000,000 Chattanooga-Hamilton County Hospital Revenue, 9.976% due 5/25/21, refunded
5/1/01 @ 102 (Erlanger Medical Center Project; Insured: FSA) Aaa/AAA 6,068,750
1,565,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 5/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,609,524
1,130,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 11/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,162,657
1,095,000 Copperhill Industrial Development Board, 7.80% due 12/1/00
(City Services Company Project) Baa3/BBB 1,103,574
1,000,000 Southeast Tax Exempt Mortgage Bond Trust Tender Option Certificates Series 1990,
7.25% due 4/1/17, put 4/1/03 NR/AAA 1,071,200
Texas (7.06%)
9,770,000 Bell County Health Facilities Development Corporation Series 1993-A, 4.75% due 10/1/23,
put 10/1/98 (Central Texas Pooled Health Care Loan Program Project;
Guaranteed: Sun Life of America) NR/AA- 9,831,258
1,655,000 Bexar County Health Facilities Development Corporate Hospital Revenue
Series 1991, 7.40% due 5/1/00 Baa1/BBB 1,772,058
1,065,000 Cypress-Fairbanks Independent School District General Obligation,
0% due 2/1/02 (Insured: FGIC) Aaa/AAA 837,239
1,685,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 1,752,535
315,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 326,179
2,015,000 Ector County Hospital Revenue, 7.125% due 4/15/02 Baa1/BBB 2,149,481
1,970,000 Harris County Health Facilities Development Corporation, 7.375% due 12/1/25, put 12/1/98
(Greater Houston Pooled Health Care Project; Guaranteed: Prudential) Aa/NR 1,986,134
4,000,000 Harris County Flood Control District L.T.G.O. Series 1991-A, 0% due 10/1/01 Aa/AA+ 3,216,880
955,000 Harris County Health Facilities Dev. Corp. Hospital Revenue, 6.70% due 6/1/00
(Memorial Hospital Systems Project) A/A- 1,013,723
1,100,000 Houston Housing Finance Corp. SFMRB Series A, 5.35% due 6/1/02 (Insured: FSA) Aaa/AAA 1,119,019
2,850,000 Humble Independent School District of Harris County Series 1992,
0% due 2/15/00 (PSF Guaranty) Aaa/AAA 2,481,039
1,295,000 Irving Flood Control District Section 3 Refunding Capital Appreciation, 0% due 9/1/01 Baa/NR 996,373
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 1,237,076
2,630,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/99
(PSF Guaranty) Aaa/AAA 2,402,400
2,300,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/98
(PSF Guaranty) Aaa/AAA 2,196,339
2,230,000 Lower Colorado River Authority Jr. Lien Refunding Revenue Series 1992, 0%
due 1/1/01 (Insured: AMBAC) Aaa/AAA 1,856,185
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* 614,560
1,000,000 North Texas Higher Education Student Loan Revenue, 6.50% due 4/1/99
(Insured: AMBAC) Aaa/AAA 1,040,520
250,000 Northgate Crossing Utility District Road System & Drainage System Unlimited
Tax Sinking Fund Series 1986, 9.25% due 12/1/98 NR/NR 250,067
1,040,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/06 pre-refunded 8/1/98 Aaa/AAA 1,098,698
1,115,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/07 pre-refunded 8/1/98 Aaa/AAA 1,177,931
1,295,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/09 pre-refunded 8/1/98 Aaa/AAA 1,368,090
1,395,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/10 pre-refunded 8/1/98 Aaa/AAA 1,473,734
1,500,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/11 pre-refunded 8/1/98 Aaa/AAA 1,584,660
1,615,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/12 pre-refunded 8/1/98 Aaa/AAA 1,706,151
2,135,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/13 pre-refunded 8/1/98 Aaa/AAA 2,255,499
1,000,000 Palo Duro River Authority Unlimited Tax Refunding Series 1992, 5.10% due 8/1/97
(Capital Guaranty Insurance) NR/AAA 1,009,280
4,600,000 Plano Capital Appreciation Refunding General Obligation, 0% due 3/1/01 A1/AA- 3,799,738
1,355,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.00% due 8/1/99 Aa/AA 1,346,098
1,415,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.50% due 8/1/01 Aa/AA 1,423,391
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- 885,504
5,880,000 Texas Public Finance Authority Series B, 5.25% due 2/1/98 (Insured: AMBAC) Aaa/AAA 5,981,665
1,200,000 Texas Water Resource Finance Authority Revenue, 7.00% due 8/15/99
(Insured: AMBAC) Aaa/AAA 1,275,480
985,000 Texas Water Resource Finance Authority Revenue, 7.40% due 8/15/00 A/A 1,054,836
870,000 Texas Water Resources Authority Revenue, 7.50% due 8/15/01 A/A- 933,814
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 (2.76%)
965,000 Davis County Housing Authority MFHR, 7.50% due 6/1/97 (Fox Creek Apartment Project;
Insured: FNMA Pass-through Certificates) NR/AAA 978,018
6,685,000 Intermountain Power Agency Power Supply Rev, 5.50% due 7/1/00 (Insured: MBIA) Aaa/AAA 6,802,723
5,055,000 Intermountain Power Agency Power Supply Rev Series B, 5.50% due 7/1/01
(Insured: MBIA) Aaa/AAA 5,195,832
8,000,000 Intermountain Power Agency Power Supply Revenue, 0% pre-refunded 7/1/00 @ 101 Aaa/AAA 6,862,560
2,045,000 Ogden Neighborhood Development Agency Tax Increment Revenue Series AS, 0% due 12/30/05
(LOC: Sumitomo Bank) A1/NR 1,220,272
2,220,000 Utah Student Loan Revenue Series 1992-G, 5.20% due 11/1/98 (Insured: AMBAC) Aaa/AAA 2,250,814
600,000 Utah Municipal Finance Co-op Local Government Revenue, 7.10% due 6/1/00 NR/AA 639,846
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 2,070,660
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 3,227,760
445,000 Henrico County Governmental Project Lease Revenue, 4.55% due 6/1/01 Aa/AA 447,461
1,755,000 Henrico County IDA Public Facility Lease Revenue, 6.50% due 8/1/00
(Henrico County Jail Project) Aa/AA 1,877,060
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 3,190,230
1,960,000 Virginia Housing Development Authority Series C-8, 5.70% due 7/1/03 Aa1/AA+ 2,011,509
255,000 Virginia Housing Development Authority Series D-4, 5.00% due 7/1/00 Aa1/AA+ 259,251
Washington (2.97%)
1,010,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992,
5.55% due 7/1/99 A1/A 1,037,694
1,125,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992,
5.75% due 7/1/00 A1/A 1,166,760
1,295,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992-E,
5.50% due 7/1/97 A1/A 1,306,875
1,370,000 Chelan County Public Utility District #1 Consolidated System Revenue Series 1992-E,
0% due 7/1/98 A1/A 1,284,731
1,000,000 Spokane County Airport Revenue Refunding Series 1993, 4.80% due 6/1/99
(Insured: MBIA) Aaa/AAA 1,013,160
2,500,000 Spokane County Industrial Development Corporation Refunding, 4.75% due 12/1/97
(Jensen - Byrd Project; LOC: U.S. Bank of Washington) A1/NR 2,502,575
725,000 Spokane County School District # 363 Unlimited Tax G.O. Ref. Series 1992,
5.40% due 12/1/00 A/NR 749,744
1,000,000 Sumner Limited Tax General Obligation Anticipation Notes, 4.70% due 8/1/98 NR/NR 1,000,160
2,880,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-B, 7.20% due 6/1/02 (Kadlec Medical Center Project) Baa1/NR 3,061,814
1,945,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-A, 7.35% due 6/1/02 (Dominican Health Project) Baa/NR 2,022,392
1,040,000 Washington Public Power Supply System Series G Project #1 Rev., 7.15% due 7/1/01 Aa/AA 1,134,744
2,000,000 Washington Public Power Supply System Project #1 Ref. Rev., 6.50% due 7/1/02 Aa/AA 2,142,720
3,500,000 Washington Public Power Supply System Project #1 Ref. Rev., 5.30% due 7/1/02 Aa/AA 3,571,855
500,000 Washington Public Power Supply System Series C Project #2 Rev., 7.20% due 7/1/99 Aa/AA 532,365
250,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/02 Aa/AA 276,175
2,000,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/03 Aa/AA 2,229,060
1,700,000 Washington Public Power Supply System Series B Refunding, 7.15% due 7/1/01 Aa/AA 1,837,003
1,000,000 Washington Public Power Supply System Series B, 7.25% due 7/1/00 Aa/AA 1,081,420
West Virgi (.89%)
837,742 Marion County SFMR Series 1992, 7.75% due 7/10/11 Baa/NR 888,584
115,000 Randolph County Building Commission Hospital Revenue, 6.80% due 11/1/97 Baa1/BBB 116,419
5,000,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 4.55%
(inverse floater) due 5/15/01 (Insured: FGIC) Aaa/AAA 4,899,300
2,500,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 4.65%
(inverse floater) due 5/15/02 (Insured: FGIC) Aaa/AAA 2,450,600
Wisconsin (1.14%)
900,000 Cady Small Business Pollution Control Revenue Refunding Series 1992, 6.20%
due 4/1/00 (Summit Cheese Project; Guaranteed: SBA) Aaa/AAA 914,652
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 1,556,190
3,000,000 Wisconsin Health & Education Facilities Authority, 5.00% due 8/15/98
(Sorrowful Mother Project) NR/AA- 3,034,290
1,000,000 Wisconsin Health & Education Facilities Authority Series 1993, 4.75% due 2/15/98
(Lacrosse Project; Insured: FSA) Aaa/AAA 1,010,640
1,045,000 Wisconsin Health & Education Facilities Authority Series 1993, 5.00% due 2/15/99
(Lacrosse Project; Insured: FSA) Aaa/AAA 1,060,696
3,045,000 Wisconsin Health & Education Facilities Authority Revenue, 5.75% due 11/15/01
(Insured: FSA) Aaa/AAA 3,194,753
Wyoming (.27%)
1,493,955 Evanston Industrial Development Revenue Series 1983, 9.90% due 4/1/04
(Wybanco Project; LOC: Texas Commerce Bank) A2*/A+* 1,481,745
1,000,000 Wyoming Student Loan Corporation Revenue, 6.25% due 12/1/99 NR/AA 1,044,230
TOTAL INVESTMENTS (100%) $942,626,766
</TABLE>
*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.
Thornburg Limited Term Municipal Fund
National Portfolio-Class A Shares
Percent Change in Share Prices
January 1, 1987 Through December 31, 1996
The Fund's Class A Share price movements have been moderate even though changes
in interest rates have caused bond prices to swing erratically in the last 9
years. The graph above plots the percentage changes in bid price for Class A
shares of Limited Term Municipal Fund National Portfolio as well as the
percentage changes in the Lipper Bond Fund Index, an index of share prices of
ten large municipal bond funds.
Past performance of the Fund and the Index does not guarantee future results.
The price of the Class A shares will fluctuate and you may have a gain or loss
when you sell your shares. Although you could invest in shares of the funds in
the Index, you cannot invest in the Index itself.
Class C Shares of the Fund have been offered since September 1, 1994. The C
Shares have different sales charges, expense ratios and returns.
Thornburg Limited Term Municipal Fund
National Portfolio-A Shares
Outperformed Taxable and Tax - Free Money Market Funds
INVESTORS SOMETIMES ASK US TO COMPARE LIMITED TERM MUNICIPAL FUND TO MONEY
MARKET FUND RETURNS. THESE INVESTMENTS HAVE CERTAIN DIFFERENCES, AND INVESTORS
IN LIMITED TERM MUNICIPAL FUND TOOK MORE RISK THAN MONEY MARKET FUND INVESTORS
TO EARN THEIR HIGHER RETURNS
On September 1, 1994 Thornburg Limited Term Municipal Fund National Portfolio
begin offering Class C Shares of the Fund. The chart above is for the Fund's
Class A Shares only. Class C Shares have different sales charges and expenses.
See the inside front cover page for the 30 day SEC yield and the total returns
at the maximum offering prices for one year, five years, ten years, and since
inception for each class of shares of the Fund.
Note 1: Future increases, if any, of any of these investments may bear no
relationship to prior increases. Quotations for the money fund averages are
based upon 30 day yield quotations for taxable and tax-exempt money funds as
quoted in "Donoghue's Money Fund Report" for the months covered by this
analysis. The increase for the Class A Shares of Limited Term Municipal Fund -
National Portfolio is based upon the dividends paid for the months covered by
this analysis, the beginning offering price at $13.24 per share and the ending
NAV at $13.45 per share. These investments returned the $100,000 initial
investment in addition to the amounts shown above.
Note 2: This analysis does not take into account the effect, if any, caused by
state and local income taxes. This analysis also assumes the income from the
taxable money fund is taxed at 50% federal tax rate in 1985 and 1986, and 38.5%
rate in 1987, a 31% rate 1988 to 1992, and a 39.6% rate in 1993 to 1996. The
portion of the increase of Limited Term Municipal Fund representing appreciation
of the share price is assumed to be taxed at a 28% federal tax rate. The average
money market fund increases shown above may differ from the return of a
particular money market fund. It is not possible to invest in these money fund
averages.
Note 3: The net asset value of the money funds did not fluctuate. The net asset
value of the Class A Shares of LTMFX did vary from time to time, and will
continue to vary in the future. The analysis assumes that the investor received
the net asset value of the shares owned, plus accrued income, at time of sale.
Due to the effect of sales commissions, the net asset value of the Limited Term
Municipal Fund's Class A Shares is less than the offering price of the shares.
Redemptions are made at the then current net asset value, which may give you a
gain or loss when you sell your shares.
Note 4: This analysis assumes that the dividends from each of these investment
vehicles were reinvested and compounded monthly. Most money funds declare
dividends daily and pay them monthly. Limited Term Municipal Fund also declares
dividends daily and pays them monthly.
