THORNBURG LIMITED TERM MUNICIPAL FUND-
CALIFORNIA PORTFOLIO CLASS SHARES
<TABLE>
<CAPTION>
Thornburg Thornburg
Limited Term Municipal Limited Term Municipal
Fund-California Fund-California
A Shares C Shares
<S> <C> <C>
SEC Yield 3.57% 3.24%
Taxable Equiv. Yields 6.52% 5.91%
NAV $12.91 $12.93
Max. Offering Price $13.24 $12.93
1 Year Ending 3.17% 5.50%
5 Years Ending 4.68% NA
10 Years Ending 6.04% NA
Since Inception 5.89% 5.06%
<FN>
Inception Date (2/19/87) (9/1/94)
(a) Taxable equivalent yields assume a 39.6% marginal federal tax rate,
and an 9.30% state of California marginal tax rate.
Portions of the income
of the municipal funds may be subject to the alternative minimum tax.
(b) The data quoted represents 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. (c) The total return data reflects the deduction of the maximum
sales charge of the Class A Shares of 2.50%.
</FN>
</TABLE>
<TABLE>
What Double Tax - Free Income Means to You:
<CAPTION>
FIND YOUR TAXABLE INCOME Combined To Equal a California
AND READ ACROSS Income Tax-Free Yield Of*
Tax 3.00% 3.50% 4.00% 4.50% 5.00% 5.50%
Net Taxable Income A Taxable Investment Must Earn
Single Return Joint Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$24,650 - 26,045 $41,200 - 52,090 32.32% 4.43% 5.17% 5.91% 6.65% 7.39% 8.13%
$26,045 - 32,916 $52,090 - 65,832 33.76% 4.53% 5.28% 6.04% 6.79% 7.55% 8.30%
$32,916 - 59,750 $65,832 - 99,600 34.70% 4.59% 5.36% 6.13% 6.89% 7.66% 8.42%
$59,750 - 124,650 $99,600 - 151,750 37.42% 4.79% 5.59% 6.39% 7.19% 7.99% 8.79%
$124,650 - 271,050 $151,750 - 271,050 41.95% 5.17% 6.03% 6.89% 7.75% 8.61% 9.47%
$271,050 - and up** $271,050 - and up** 45.22% 5.48% 6.39% 7.30% 8.21% 9.13% 10.04%
<FN>
*The yields listed are for illustration only and not necessarily representative
of any class of shares of the Limited Term Municipal Fund - California
Portfolio. **1997 maximum Federal tax bracket of 39.6%. Maximum California tax
bracket of 9.30%. Taxable equivalent yields do not take the federal alternative
minimum tax, to which investors may or may not be subject, into account.
</FN>
</TABLE>
l e t t e r t o s h a r e h o l d e r s
119 East Marcy Street, Suite 202, Santa Fe, New Mexico 87501 (505) 984-0200
February 6, 1998
Dear Fellow Shareholder:
I am pleased to present the Semi-Annual Report for the California Portfolio of
Thornburg Limited Term Municipal Fund for the 6 months ending December 31, 1997.
The net asset value of the A shares increased 16 cents per share to $13.24. If
you were with us for the entire period, you received dividends of 27.6 cents per
share. If you reinvested your dividends, you received 27.9 cents per share.
Investors who owned C Shares received dividends of 25.0 and 25.2 cents per
share, respectively.
Your Limited Term Municipal Fund portfolio currently holds over 170 municipal
obligations from around the state. 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 coming years. Today, your fund's weighted
average maturity is approximately 4.8 years, and we always keep it below 5
years. Percentages of the portfolio maturing in the coming years are summarized
below: .
% of portfolio maturing within Cumulative % maturing by end of
1 year = 13% year 1 = 13%
1 to 2 years = 10% year 2 = 23%
2 to 3 years = 18% year 3 = 41%
3 to 4 years = 8% year 4 = 49%
4 to 5 years = 14% year 5 = 63%
5 to 6 years = 9% year 6 = 72%
6 to 7 years = 4% year 7 = 76%
7 to 8 years = 7% year 8 = 83%
8 to 9 years = 4% year 9 = 87%
9 to 10 years = 6% year 10 = 93%
Over the last year your average portfolio maturity has extended slightly. We
directed portfolio cash flow and new money into the longer maturity range of
your bond ladder. Today we are managing the portfolio to keep the average
maturity approximately where it is. If interest rates remain stable or decrease
we expect that some bonds in your portfolio will be pre-refunded. This will
shorten the average portfolio maturity slightly and cause almost all bonds in
the portfolio to mature within 9 years.
For the past 3 years Americans have been net sellers of municipal and government
bonds. Investment dollars have flowed instead to equities, money market
investments, and overseas opportunities. A combination of sharp volatility in
equity markets worldwide and deflationary winds blowing from Asia may be
rekindling the appetite of U.S. investors for bond investing. If the Federal
Reserve cuts short term interest rates this year, some of the money now flowing
into money market funds may begin to move to intermediate and longer maturity
bonds. Assets of these money market funds now total over $1.1 trillion!
We are all subject to more discussion than is necessary or productive about the
U.S. economy and Alan Greenspan. Leaving aside the month to month microanalysis
of each economic statistic, I believe any observer must be impressed by the
fundamental strength of the broad U.S. economy. More people than ever before are
working. Wages are firm. Tax receipts are off the charts! There will always be
dislocations, but for the most part Americans are very, very busy. 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. California reports similar favorable news, and both operating and
capital budget spending levels are increasing. There is one possible cloud: as
both Washington and Sacramento hand increasing responsibility for implementing
mandated programs to state and local governments, a few entities may have
significant problems managing through the transition.
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. Your fund has continued to earn
Morningstar's 4 star overall rating for risk adjusted performance. I would like
to attribute this to capable execution of a sensible investment strategy over
time.
Thank you for investing in Thornburg Limited Term Municipal Fund,
California Portfolio.
Sincerely,
Brian J. McMahon
Portfolio Manager
Morningstar propriety rating reflects historical risk adjusted performance as of
12/31/97. 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 California Portfolio is ranked 4-stars for the 3
year period, 4-stars for the 5 year period, and 4-stars for the 10 year period
ending 12/31/97. There were 1494 bond funds with 3-year ratings, 720 bond funds
with 5-year ratings and 337 with 10-year ratings in Morningstar's Municipal
Short 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. - California Portfolio
December 31, 1997
(unaudited)
ASSETS
Investments, at value (cost $128,665,866) $ 133,704,631
Cash 76,784
Interest receivable 2,193,595
Prepaid expenses and other assets 29,730
TOTAL ASSETS 136,004,740
LIABILITIES
Payable for securities purchased 1,214,960
Dividends payable 154,500
Pay for fund shares redeemed 424,880
Accounts payable and accrued expenses 117,918
Accounts payable investment adviser (Note 4) 89,960
TOTAL LIABILITIES 2,002,218
NET ASSETS $ 134,002,522
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($119,645,663 applicable to 9,264,984 shares of beneficial
interest outstanding - Note 5) $12.91
Maximum sales charge, 2.50% of offering
price (2.57% of net asset value per share) .33
Maximum Offering Price Per Share $13.24
Class C Shares:
Net asset value and offering price per share*
($7,164,894 applicable to 554,311 shares of beneficial
interest outstanding - Note 5) $12.93
Class I Shares:
Net asset value and offering price per share
($7,191,965 applicable to 556,856 shares of beneficial
interest outstanding - Note 5) $12.92
* Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
See notes to unaudited 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. - California Portfolio
Six Months Ended December 31, 1997
(unaudited)
INVESTMENT INCOME
Interest income (net of premium amortized $ 3,292,625
of $271,968)
EXPENSES
Investment advisory fees (Note 4) 312,549
Administration Fees (Note 4)
Class A Shares 70,069
Class C Shares 4,290
Class I Shares 1,511
Distribution and service fees (Note 4):
Class A Shares 140,138
Class C Shares 34,053
Custodian fees 44,465
Transfer agent fees 43,674
Professional fees 13,025
Accounting Fees 5,856
Other expenses 11,898
TOTAL EXPENSES 681,528
Less:
Expenses reimbursed by investment adviser (Note 4) (53,284)
NET EXPENSES 628,244
NET INVESTMENT INCOME 2,664,381
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS - NOTE 6
Net realized gain on investments sold 29,366
Increase in unrealized appreciation of investments 2,825,738
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 2,855,104
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 5,519,485
See notes to unaudited 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. - California Portfolio
(unaudited)
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
INCREASE IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $2,664,381 $4,430,640
Net realized gain on investments sold 29,366 63,898
Increase in unrealized
appreciation of investments 2,825,738 784,532
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 5,519,485 5,279,070
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (2,392,200) (4,243,665)
Class C Shares (132,692) (161,619)
Class I Shares (139,489) (25,356)
FUND SHARE TRANSACTIONS-- (Note 5)
Class A Shares 22,812,895 (908,565)
Class C Shares 1,131,232 3,397,813
Class I Shares 3,118,495 3,924,117
NET INCREASE IN NET ASSETS 29,917,726 7,261,795
NET ASSETS:
Beginning of period 104,084,796 96,823,001
End of period $134,002,522 $104,084,796
See notes to unaudited 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. - California 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 and California Portfolio (the "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. In addition,
the California Portfolio will invest primarily in Municipal Obligations
originating in California with the object of obtaining exemption of interest
dividends from any income taxes imposed by California on individuals.
The Portfolio currently offers three classes of shares of beneficial interest,
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,
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, and certain
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 six months ended December 31, 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 Fund 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, the Portfolio 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 MERGER OF MACKENZIE CALIFORNIA MUNICIPAL FUND
On September 4,1997, the Fund acquired all of the net assets of the Mackenzie
California Municipal Fund ("MacKenzie") pursuant to a plan of reorganization
approved by Mackenzie's shareholders. The merger was accomplished by a tax free
exchange of Class A shares of the Portfolio (valued at $23,511,348) for the net
assets of MacKenzie which aggregrated $23,511,348, including $1,214,035 of
unrealized appreciation. The combined net assets of the Portfolio immediately
after merger were $134,431,534.
Note 4 - 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 six months ended December
31, 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. The Fund also has
entered into an Administrative Services 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. For the six months ended December 31, 1997, the Adviser
voluntarily reimbursed certain operating expenses amounting to $53,284.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Portfolio shares. For the
six months ended December 31, 1997, the Distributor earned commissions
aggregating $5,255 from the sale of Class A shares, and collected contingent
deferred sales charges aggregating $1,333 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 also has adopted a Distribution Plan pursuant to Rule 12b-1, applicable
only to the Portfolio's Class C shares, under which the Fund can compensate 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 Class C
distribution fees waived by the Distributor for the six months ended December
31, 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 the Distributor. The compensation of unaffiliated trustees is
borne by the Fund.
Note 5 - SHARES OF BENEFICIAL INTEREST:
At December 31, 1997, there were an unlimited number of shares of beneficial
interest authorized and capital paid-in aggregated $129,787,503. Transactions in
shares of beneficial interest were as follows:
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Class A Shares Shares Amount Shares Amount
Shares sold 633,137 $ 8,237,371 1,127,372 $ 14,318,232
Shares issued to shareholders
in reinvestment of
distributions 121,085 1,557,787 217,589 2,764,826
Shares issued in merger 1,933,181 23,511,348 -- --
Shares repurchased (817,197) (10,493,611) (1,417,346) (17,991,623)
Net Increase (Decrease) 1,870,206 $ 22,812,895 (72,385)($ 908,565)
Class C Shares
Shares sold 138,723 $ 1,715,339 360,237 $ 4,574,006
Shares issued to shareholders
in reinvestment of
distributions 8,175 105,264 9,592 121,990
Shares repurchased (53,649) (689,371) (101,931) (1,298,183)
Net Increase 93,249 $ 1,131,232 267,898 $ 3,397,813
Class I Shares
Shares sold 263,570 $ 3,328,968 309,314 $ 3,929,541
Shares issued to shareholders
in reinvestment of
distributions 10,579 136,164 1,831 23,299
Shares repurchased (27,056) (346,637) (1,383) (28,723)
Net Increase 247,093 $ 3,118,495 309,762 $ 3,924,117
Note 6 - SECURITIES TRANSACTIONS
For the six months ended December 31, 1997, the Portfolio had purchase and sale
transactions (excluding short-term securities) of $22,949,241 and $18,047,919,
respectively.
The cost of investments is the same for financial reporting and Federal income
tax purposes.
At December 31, 1997, the net unrealized appreciation was $5,038,765,
resulting from gross unrealized appreciation of $5,127,918
and $89,153 gross unrealized depreciation.
Accumulated net realized losses from security transactions included in net
assets at December 31, 1997 aggregated $823,746.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $853,112 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 - $41,424, June 30, 1999 - $14,395, June 30, 2000 - $410, June 30,
2002 - $315,597, and June 30, 2003 - $481,286.
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. - California Portfolio
<CAPTION>
Per share operating performance
(for a share outstanding
throughout the period)
Six Months Ended
December 31, Year Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 1997 1996 1995 1994 1993
Class of Shares: A A A A A A
Net asset value, beginning of period $12.75 $12.64 $12.61 $12.57 $12.85 $12.48
Income from investment operations:
Net investment income .28 .57 .58 .58 .58 .65
Net realized and unrealized
gain (loss) on investments .16 .11 .03 .04 (.28) .37
Total from investment operations .44 .68 .61 .62 .30 1.02
Less dividends from:
Net investment income (.28) (.57) (.58) (.58) (.58) (.65)
Change in net asset value .16 .11 .03 .04 (.28) .37
Net asset value, end of period $12.91 $12.75 $12.64 $12.61 $12.57 $12.85
Total return (a) 3.45% 5.47% 4.94% 5.12% 2.37% 8.36%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.26%(b) 4.47% 4.59% 4.69% 4.51% 5.07%
Expenses, after expense reductions 1.00%(b) 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before expense reductions 1.04%(b) 1.03% 1.05% 1.04% 1.03% 1.06%
Portfolio turnover rate 14.96% 20.44% 22.68% 18.54% 15.26% 20.81%
Net assets
at end of period (000) $119,646 $94,253 $94,379 $98,841 $111,723 $81,874
<FN>
(a) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
(b) Annualized
</FN>
</TABLE>
<TABLE>
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
<CAPTION>
Per share operating performance
(for a share outstanding
throughout the period) Period from
Six Months Ended Year Ended Sept. 1, 1994 (a)
December 31, June 30, to June 30,
<S> <C> <C> <C> <C>
1997 1997 1996 1995
Class of Shares: C C C C
Net asset value, beginning of period 12.76 $12.65 $12.62 $12.55
Income from investment operations:
Net investment income .25 .52 .53 .42
Net realized and unrealized
gain on investments .17 .11 .03 .07
Total from investment operations . 42 .63 .56 .49
Less dividends from:
Net investment income (.25) (.52) (.53) (.42)
Change in net asset value .17 .11 .03 .07
Net asset value, end of period $12.93 $12.76 $12.65 $12.62
Total return (b) 3.32% 5.06% 4.46% 3.98%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 3.86%(c) 4.06% 4.16% 4.07% (c)
Expenses, after expense reductions 1.40%(c) 1.40% 1.43% 1.63% (c)
Expenses, before expense reductions 1.61%(c) 2.15% 2.92% 3.21% (c)
Portfolio turnover rate 14.96% 20.44% 22.68% 18.54%
Net assets
at end of period (000) $7,165 $5,882 $2,444 $790
<FN>
(a) Commencement of sales of Class C shares.
(b) Sales loads are not reflected in computing total return, which is not annualized for periods less than one year.
(c) Annualized.
</FN>
</TABLE>
<TABLE>
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
<CAPTION>
Per share operating performance
(for a share outstanding
throughout the period) Period from
Six Months Ended April 1, 1997 (a)
December 31, to June 30,
<S> <C> <C>
1997 1997
Class of Shares: I I
Net asset value, beginning of period $12.75 $12.64
Income from investment operations:
Net investment income .30 .15
Net realized and unrealized
gain on investments .17 .11
Total from investment operations .47 .26
Less dividends from:
Net investment income (.30) (.15)
Change in net asset value .17 .11
Net asset value, end of period $12.92 $12.75
Total return (b) 3.71% 2.07%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.61%(c) 4.77%(c)
Expenses, after expense reductions .65%(c) .63%(c)
Expenses, before expense reductions .99%(c) 1.32%(c)
Portfolio turnover rate 14.96% 20.44%
Net assets
at end of period (000) $7,192 $3,949
<FN>
(a) Commencement of sales of Class I shares.
(b) Sales loads are not reflected in computing total return, which is not annualized for periods less than one year.
(c) Annualized.
</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. - California Portfolio
December 31, 1997 CUSIPS: Class A - 532-723-202, Class C - 532-723-707, Class I- 532-723-889
NASDAQ Symbols: Class A - LTCAX, Class C - LTCCX (Proposed), Class I - LTCIX (Proposed)
<S> <C> <C> <C>
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
615,000 Alameda-Contra Costa Transit District Refunding Certificate of Participation
Series 1989, 7.20% due 8/1/00 Baa/BBB- $ 654,384
1,000,000 Alameda County Certificate of Participation, 6.25% due 6/1/06 A3/A 1,100,720
370,000 Albany Public Facilities Financing Authority Lease Revenue, 6.60% due 9/1/00
(Library Community Center Project) Baa1/NR 393,786
295,000 Alum Rock Union Elementary School District General Obligation Refunding Bonds,
8.00% due 9/1/06 Aaa/AAA 369,771
380,000 Alum Rock Union Elementary School District General Obligation Refunding Bonds,
8.00% due 9/1/07 Aaa/AAA 483,052
1,020,000 Antelope Valley Hospital Revenue, 5.25% due 1/1/06 (Insured: FSA) Aaa/AAA 1,079,343
1,300,000 Berkeley Health Facility Revenue Refinancing Series A, 5.70% due 12/1/98
(Alta Bates Medical Center Project), Escrowed to Maturity AAA*/A+ 1,322,555
1,000,000 Berkeley Health Facilities Revenue, 6.55% due 12/1/22, prerefunded 12/1/02 @ 102 AAA*/A+ 1,121,190
380,000 Big Bear Regional Wastewater Agency Refunding Revenue Bonds, 4.70% due 4/1/06 Aaa/AAA 390,039
835,000 California Educational Facilities Authority Revenue, 5.60% due 10/1/00 (U.S.C. Project) Aa3/AA 871,623
1,805,000 California Educational Facilities Authority Revenue, 5.60% due 10/1/02 (U.S.C. Project) Aa3/AA 1,925,465
500,000 California Educational Facilities Authority Revenue Series 1993, 5.15% due 9/1/03
(Santa Clara University Project) A1/NR 524,215
670,000 California HFA Revenue Series 1985-B, 9.875% due 2/1/17 Aa/AA- 703,768
25,000 California HFA Single Family Mortgage Revenue Series 1982-A, 10.00% due 2/1/02
(LOC: Citibank) Aa/AA- 25,016
95,000 California Housing Finance Agency Revenue, 6.90% due 8/1/16 Aa2/AA- 97,137
145,000 California Housing Financing Agency Revenue, 0% due 8/1/01 Aa2/AA- 113,318
500,000 California Housing Financing Agency Revenue Series E-1, 5.40% due 8/1/00 Aa2/AA- 514,675
250,000 California Health Facilities Financing Authority Revenue, 7.00% due 6/1/08,
prerefunded 6/1/99 @102 AAA*/NR 265,110
200,000 California Health Facilities Financing Authority Revenue, 5.00% due 3/1/20, put 1/2/98
(daily demand notes) (LOC: Morgan Guaranty) VM1G1/A-1+ 200,000
1,000,000 California HFA Secured Revenue Series 1991, 6.65% due 9/1/01
(Good Samaritan Hospital Project) Baa2/BBB+ 1,072,200
505,000 California HFA Financing Authority, 5.25% due 8/1/00
(Marin General Hospital Project; Insured: FSA) Aaa/AAA 521,584
500,000 California Health Facilities Financing Authority Revenue, 5.30% due 5/15/04
(Downey Community Hospital Project) NR/A- 517,995
5,000 California Pollution Control Financing Authority Revenue, 7.20% due 9/1/15 A1/A+ 5,062
500,000 California Pollution Control Financing Authority Revenue, 6.850% due 12/1/08 A1/A+ 529,335
400,000 California Public Capital Improvement Finance Auth. Rev. Series 1988-E, 8.25% due 3/1/98 Baa/NR 402,380
1,000,000 California State General Obligation, 6.50% due 10/1/99 A1/A+ 1,044,180
300,000 California State General Obligation, 6.750% due 5/1/02 A1/A+ 331,713
165,990 California State Veterans General Obligation Amortizing Coupon M-COATES,
7.30% due 10/1/01 Aaa*/AAA* 161,807
500,000 California State General Obligation, 9.50% due 5/1/03 A1/A+ 625,750
1,000,000 California State General Obligation, 9.50% due 2/1/10 A1/A+ 1,436,310
2,915,000 California Veterans Affairs Home Purchase Revenue, 7.375% due 8/1/12 Aa2/A+ 2,966,741
250,000 California Veterans Affairs Home Purchase Revenue Series A, 7.50% due 8/1/98 Aa/A+ 254,770
1,390,000 California Veterans Affairs Home Purchase Revenue Series A, 6.55% due 8/1/01 Aa/A+ 1,459,486
5,000 California State Public Works High Technology, 7.375% due 4/1/06 A1/A+ 5,675
500,000 California State Public Works Lease Revenue, 8.35% due 12/1/99 A/A 540,035
500,000 California State Public Works Lease Revenue, 5.50% due 9/1/06 (Insured: AMBAC) Aaa/AAA 542,885
850,000 California State University Revenue, 6.40% due 11/1/02, crossover refunded 11/1/00 @ 102 A1/A- 917,839
1,000,000 California Statewide Community Certificate of Participation, 5.90% due 4/1/09 NR/A 1,053,460
625,000 California Statewide Community Development Authority Insured Health
Facilities Revenue Certificate of Participation Series 1992, 6.40% due 5/1/02
(Eskaton Properties Incorporated Phase II Project) NR/A+ 648,319
1,000,000 California Statewide Community Development Authority Certificate of Participation, 3.46%
(inverse floater) due 1/1/00 (Motion Picture and Television Fund Project; Insured: AMBAC) Aaa/AAA 974,720
1,000,000 California Statewide Community Development Authority Certificate of Participation, 3.75%
(inverse floater) due 1/1/01 (Motion Picture and Television Fund Project; Insured: AMBAC) Aaa/AAA 965,660
1,000,000 California Statewide Community Development Authority Insured Health Facilities Revenue
Series 1996-A, 6.00% due 9/1/04 (San Gabriel Medical Center Project; Insured: Cal Health) NR/A+ 1,083,100
130,000 Cerritos-Compton Glendale College District General Obligation
Certificate of Participation, 8.00% due 2/1/98 NR/NR 130,429
1,000,000 Clovis Unified School District, 0% due 8/1/02 NR/BBB+ 827,280
700,000 Coachella Valley Water District # 71 Certificate of Participation, 5.75% due 10/1/00
(Storm Water District Project) A/NR 731,458
660,000 Cupertino Public Facilities Corp. Certificate of Participation Series 1992-B, 5.60%
due 7/1/00 A1/A+ 683,615
1,000,000 Duarte California Certificate of Participation, 6.25% due 4/1/23 Baa1/NR 1,052,780
60,000 El Paso de Robles Newark Water District Certificate of Participation
Association of Bay Area Governments Finance Corporation, 7.40% due 6/1/98 NR/NR 60,851
1,500,000 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 1,573,860
20,000 Fontana Redevelopment Agency Tax Allocation, 8.00% due 9/1/18 Aaa/NR 20,955
350,000 Foothill-De Anza Community College District Certificate of Participation, 7.35%
due 3/1/07 NR/A- 390,422
600,000 Fresno Multi Family Housing Revenue Refunding, 5.10% due 10/1/05, put 4/1/99
(Maple Leaf Project; Insured: Continental Insurance) NR/A- 605,520
1,000,000 Fresno Multi family Housing Revenue Refunding, 4.875% due 1/1/28, put 1/1/08
(Jackson Pary Place Project: Insured: FNMA) NR/AAA 1,007,480
560,000 Fruitvale School District Certificate of Participation, 7.60% due 6/1/99 Baa/NR 587,322
2,000,000 Glendale Hospital Revenue Refunding Series 1994, 7.625% due 1/1/05
(Verdugo Hills Project; Guarantee: Industrial Indemnity) NR/A+ 2,220,180
1,000,000 Hawaiian Gardens Redevelopment Agency Project No 1 Tax Allocation, 0% due 12/1/16 NR/BBB 308,240
200,000 Hayward Unified School District Certificate of Participation, 7.60% due 10/1/00 Baa/NR 205,502
60,000 Hermosa Beach Lynwood and Vernon Certificate of Participation,
7.10% due 9/1/99 NR/BBB 61,474
605,000 Inglewood Certificate of Participation, 6.70% due 8/1/00 (Civic Center Improvement Project)Baa3/BBB- 641,941
635,000 Inglewood Certificate of Participation, 6.80% due 8/1/01 (Civic Center Improvement Project)Baa3/BBB- 687,610
690,000 Inglewood Certificate of Participation, 6.90% due 8/1/02 (Civic Center Improvement Project)Baa3/BBB- 759,593
360,000 Irvine Ranch Water District Joint Powers Agency Revenue, 7.00% due 2/15/98 NR/A+ 361,386
25,000 Irvine Ranch Water District Joint Powers Agency, 7.80% due 2/15/08 NR/A+ 25,105
1,000,000 Irwindale Community Redevelopment Agency, 6.60% due 8/1/18 Baa/NR 1,145,150
165,000 Kern High School District, 7.00% due 8/1/10 A/NR 202,326
680,000 Kern High School District Series B, 9.00% due 8/1/06 Aaa/AAA 905,889
480,000 Lake Elsinore Public Financing Authority Tax Allocation Revenue Series 1992-C,
6.15% due 2/1/01 (Insured: FGIC) Aaa/AAA 509,650
3,000,000 Lancaster Redevelopment Agency Lease Revenue, 4.90% due 12/1/00
(Public Improvement Project; LOC: Sumitomo - Dai Ichi Kangyo) NR/A 3,046,500
1,500,000 Los Angeles Equipment Acquisition Program L Certificate of Participation, 5.80% due 12/1/98 A/A+ 1,525,800
5,000 Los Angeles Convention & Exhibit Center, 9.00% due 12/1/20 Aaa/AAA 6,583
500,000 Los Angeles Department Water & Power, 9.00% due 9/1/04 Aa3/A+ 624,595
1,000,000 Los Angeles Municipal Improvement Corporation Lease Revenue, 5.00% due 2/1/00 A/A+ 1,000,520
5,000 Los Angeles State Building Authority Lease Revenue, 7.50% due 3/1/11 NR/AAA 5,131
1,500,000 Los Angeles Unified School District Certificate of Participation, 6.30% due 6/1/02 A/A- 1,621,950
500,000 Los Angeles Wastewater System Revenue, 8.80% due 6/1/00 Aaa/AAA 555,700
245,000 Los Angeles County Certificate of Participation, 0% due 10/1/02 Baa1/BBB 191,717
700,000 Los Angeles County Certificate of Participation, 0% due 4/1/03 Baa1/BBB 529,725
500,000 Los Angeles Certification of Participation, 6.90% due 3/1/01 Baa1/BBB 539,060
250,000 Los Angeles Certification of Participation, 0% due 9/1/03 Baa1/BBB 187,518
350,000 Los Angeles County Housing Authority Multifamily Housing Revenue, 7.625% due 12/1/29,
mandatory put 12/1/99 (Monrovia Project A; Insured: Continental Casualty) NR/A- 355,149
1,000,000 Los Angeles County Transit Finance Corporation Certificate of Participation
Series 1992-B, 5.70% due 7/1/99 A1/NR 1,025,830
375,000 Marysville Hospital Revenue, 6.00% due 1/1/04 (Fremont-Rideout Health Group Project;
Insured: AMBAC) Aaa/AAA 409,643
200,000 Midpeninsula Regional Open Space District Certificate of Participation, 7.20%
due 9/1/00, refunded 9/1/99 *Aaa/A 214,454
360,000 Midpeninsula Regional Open Space District Certificate of Participation, 4.75% due 9/1/99 NR/A 364,619
460,000 Midpeninsula Regional Open Space District Certificate of Participation, 4.80% due 9/1/00 NR/A 468,611
1,230,000 Morgan Hill Unified School District Certificate of Participation Series 1993, 4.70%
due 8/1/98 A1/NR 1,236,593
835,000 Morgan Hill Unified School District Certificate of Participation Series 1993, 5.00%
due 8/1/00 A1/NR 854,038
660,000 Mountain View Shoreline Reg. Park Community Tax Allocation Series 1993-A, 4.70% due 8/1/99 A/A 667,636
810,000 National City Community Development Commission Tax Allocation Series
1992-A, 5.70% due 8/1/99 (Downtown Redevelopment Project; Insured: AMBAC) Aaa/AAA 833,190
500,000 National City Community Development Commission Tax Allocation Series
1992-A, 5.90% due 8/1/00 (Downtown Redevelopment Project; Insured: AMBAC) Aaa/AAA 524,330
330,000 New Haven Unified School District Certificate of Participation, 7.30% due 12/1/01 NR/A- 345,461
355,000 New Haven Unified School District Certificate of Participation, 7.30% due 12/1/02 NR/A- 371,632
380,000 New Haven Unified School District Certificate of Participation, 7.40% due 12/1/03 NR/A- 398,141
410,000 New Haven Unified School District Certificate of Participation, 7.40% due 12/1/04 NR/A- 429,573
700,000 Northern California Power Agency Public Power Revenue, 5.65% due 7/1/07 Baa3/A- 740,040
100,000 Oakland California Redevelopment Agency, 7.40% due 5/1/07 Aaa/AAA 103,163
1,000,000 Orange Multifamily Housing Revenue, 5.60% due 10/1/27
(Villa Santiago Rehab Project; Insured: FNMA) NR/AAA 1,043,820
1,100,000 Orange County Refunding Recovery, 5.10% due 6/1/02 (Insured: MBIA) Aaa/AAA 1,143,087
2,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 2,098,200
2,000,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 2,250,080
2,000,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 2,275,720
2,000,000 Orange County Airport Revenue Bond, 5.50% due 7/1/02 (Insured:MBIA) Aaa/AAA 2,110,640
1,000,000 Orange County Airport Revenue Bond, 6.00% due 7/1/07 (Insured MBIA) Aaa/AAA 1,115,740
900,000 Orange County Local Transportation Authority Sales Tax Rev., 5.50% due 2/15/01
(Measure M Sales Tax Project) Aa/AA 938,673
1,550,000 Orange County Local Transportation Authority Sales Tax Rev., 5.70% due 2/15/03
(Measure M Sales Tax Project) Aa/AA 1,656,811
1,050,000 Orange County Local Transportation Authority Sales Tax Rev., 5.75% due 2/15/04
(Measure M Sales Tax Project) Aa/AA 1,125,590
510,000 Orange County Local Transportation Authority Sales Tax Rev., 6.00% due 2/15/06
(Measure M Sales Tax Project) Aa/AA 565,855
1,000,000 Orange County Local Transportation Authority Sales Tax Revenue 2nd Series,
3.50% due 2/15/99, (inverse floater)(Insured: FGIC) Aaa/AAA 990,180
2,000,000 Orange County Recovery Certificate of Participation Series A, 5.50% due 7/1/02
(Insured: MBIA) Aaa/AAA 2,112,320
100,000 Orange County Special Financing Authority Teeter Pan Revenue, 4.10% due 11/1/14,
put 1/9/98 (weekly demand notes) NA/NA 100,000
1,680,000 Orange County Transportation Authority Certificates of Participation, 5.125% due 7/1/02 A1/NR 1,738,934
410,000 Oroville Hospital Revenue, 4.50% due 12/1/03 (Insured: California Mortgage) NR/A+ 414,658
` 500,000 Oroville Hospital Revenue, 5.50% due 12/1/07 (Insured: California Mortgage) NR/A+ 536,765
950,000 Oxnard Harbor District Refunding Revenue, 6.60% due 8/1/00 (Capital Guaranty) Aaa/AAA 988,456
500,000 Palomar Pomerado Health System, 0% due 11/1/03 Aaa/AAA 391,675
510,000 Paramount Unified School District Certificate of Patricipation, 0% due 9/1/14 (Insured: FSA)Aaa/AAA 452,523
100,000 Perris School District Certificate of Participation, 5.10% due 3/1/00 (Insured: FSA) Aaa/AAA 102,527
1,000,000 Piedmont Unified School District Series B, 0% due 8/1/13 Aa/NR 426,380
1,000,000 Pleasanton Unified School District Series B, 0% due 8/1/16 Aaa/AAA 365,000
580,000 Pomona Unified School District General Obligation, 5.35% due 2/1/05
(Insured: MBIA) Aaa/AAA 618,210
340,000 Pomona Unified School District Gerneral Obligation, 5.40% due 8/1/05
(Insured: MBIA) Aaa/AAA 364,606
35,000 Rancho Cucamonga Redevelopment Agency Series A, 7.70% due 5/1/16 Aaa/AAA 35,462
965,000 Redwood City Multifamily Housing Revenue Series 1985-B, 5.20% due 10/1/08, put 10/1/00
(Redwood Shores Apartments Project; Insured: Continental Casualty) NR/A+ 976,339
500,000 Richmond Joint PowersFinancing Authority Revenue Series A, 5.20% due 5/15/05 NR/A 520,770
465,000 Riverside County Housing Authority Revenue Series A, 7.75% due 10/1/00 Baa/NR 469,129
295,000 Sacramento Financing Authority Series 1991, 6.30% due 11/1/02 A1/A+ 321,954
1,000,000 Sacramento Regional Transportation Authority Certificate of Participation, 6.00%
due 3/1/99 A1/NR 1,023,480
1,000,000 Sacramento Regional Transportation Authority Certificate of Participation, 6.25%
due 3/1/01 A1/NR 1,062,870
920,000 Sacramento MFHR, 5.875% due 2/1/08, put 2/1/03 (Fairways I Apartments Project;
Insured: FNMA) NR/AAA 930,976
2,000,000 Salinas Redevelopment Agency Tax Allocation Series A, 0% due 11/1/22 Aaa/AAA 491,980
450,000 San Diego County Regional Trans. Community Sales Tax Rev. Series A,
6.125% due 4/1/98 (Escrowed to Maturity) AAA/AA- 452,709
1,800,000 San Diego County Water Authority Certificate of Participation, 6.125% due 5/1/03 Aa/AA- 1,939,122
255,000 San Francisco City & County Agency Redevelopment Agency Lease Revenue, 0% due 7/1/00 A1/A- 230,227
1,500,000 San Francisco City & County Agency Redevelopment Agency Lease Revenue, 0% due 7/1/07 A1/A- 960,300
190,000 San Francisco City & County Agency Refunding Series Sec 8, 6.125%
due 7/1/02 (Insured: MBIA / FHA) Aaa/AAA 190,371
200,000 San Jacinto IDA IDRB Series 1990, 7.20% due 6/1/98 (Edelbrock Foundry
Corporation Project; LOC: Bank of America) NR/AA- 203,222
2,000,000 San Joaquin County Certificate of Participation, 5.25% due 9/1/98 (General Hospital Project) A/A- 2,014,100
1,440,000 San Joaquin County Certificate of Participation, 5.60% due 9/1/00 (General Hospital Project) A/A- 1,483,675
895,000 San Joaquin County Certificate of Participation, 5.90% due 9/1/03 (General Hospital Project) A/A- 948,736
410,000 San Marcos Public Facility Authority Capital Improvement Series 1991, 0% due 1/1/00, ETM Aaa/NR 377,811
1,640,000 Santa Ana Community Development Agency Tax Allocation Series B, 6.50% due 12/15/14 NR/AAA 1,741,172
425,000 Santa Ana Community Development Agency Series D, 6.50% due 12/15/14, pre-refunded
12/15/00 @ 102 Aaa/AAA 450,203
500,000 Santa Ana Community Red. Agency Tax Allocation Series 1989-B, 7.10% due 9/1/98 NR/BB+ 508,830
2,000,000 Santa Ana Multifamily Housing Revenue Bonds Series B, 5.65% due11/1/21 NR/AAA 2,100,080
500,000 Santa Clara Certificates of Participaton Series A, 7.75% due 2/1/02 Aaa/AAA 569,060
35,000 Santa Clara Electric Revenue Series B, 7.80% due 7/1/10 A/A 35,624
20,000 Santa Clara County Certificates of Participaton, 8.00% due 3/1/18 NR/AAA 20,539
315,000 Santa Monica Community College District Certificate of Participation, 7.65% due 5/1/01,
(Rancho Corrales Project) NR/A 323,341
250,000 Santa Rosa Insured Revenue,7.125% due 6/1/14 NR/A+ 254,315
440,000 Simi Valley Community Development Agency Certificate of Participation, 6.05% due 10/1/18,
put 10/1/99 NR/AA- 450,498
750,000 Snowline Joint Unified School District Certificates of Participation, 7.25% due 4/1/18 NR/BBB 816,930
810,000 Sonoma County Certificate of Participation Public Works Improvement Program,
5.40% due 8/1/00 (Integrated Waste Project) NR/A+ 837,540
950,000 Sonoma County Certificate of Participation Public Works Improvement Program,
5.80% due 8/1/03 (Integrated Waste Project) NR/A+ 988,304
150,000 South Coast Air Quality Management District Building Corporation
Installment Sale Revenue, 9.75% due 8/1/98 (Escrowed to Maturity) Aaa/AAA 155,216
1,435,000 South Orange County Public Finance Authority Special Tax Revenue, 7.00% due 9/1/05
(Insured: MBIA) Aaa/AAA 1,683,312
250,000 Southern California Public Power Authority Revenue, 6.75% due 7/1/01 A/A 270,483
250,000 Stanislaus Waste to Energy Finance Agency Solid Waste Facility Revenue Certificate,
7.30% due 1/1/98 (Ogden Martin Systems Project) NR/BBB+ 250,000
1,000,000 Stanton Multifamily Housing Revenue Bond Series 1997, 5.625% due 8/1/29, put 8/1/08
(Continental Gardens Project; Insured: FNMA) NR/AAA 1,048,130
340,000 Suisun City Redevelopment Agency 1990 Tax Allocation,
7.20% due 10/1/01, pre-refunded 4/1/00 *Aaa/A- 370,151
500,000 Sulphur Springs Union School District General Obligation Series B, 5.70% due 3/1/01 NR/A 525,015
450,000 Sunline Transit Agency Certificate of Participation California Transit Finance Corporation
Series A, 5.50% due 7/1/02 A/NR 473,760
900,000 Sweetwater Union High School District Certificate of Participation, 6.40% due 11/1/01 Baa1/BBB+ 944,001
190,000 Temecula Community Services Certificate of Participation Series 1992,
6.00% due 10/1/98 (Community Recreation Center Project) NR/A 193,061
200,000 Temecula Community Services Certificate of Participation Series 1992,
6.00% due 10/1/99 (Community Recreation Center Project) NR/A 206,682
210,000 Temecula Community Services Certificate of Participation Series 1992,
6.00% due 10/1/00 (Community Recreation Center Project) NR/A 220,261
255,000 Torrance Unified School District Certificate of Participation, 6.10% due 10/1/00 Baa1/NR 260,003
1,000,000 Tracy California Certificates of Participation, 7.00% due 10/1/27 NR/BBB 1,072,400
275,000 Trinity County Public Utilities District Certificate of Participation, 5.25% due 4/1/98 NR/BBB- 275,745
290,000 Trinity County Public Utilities District Certificate of Participation, 5.50% due 4/1/99 NR/BBB- 294,205
750,000 Turlock Irrigation District Certificate of Participation, 6.80% due 1/1/00,
pre-refunded 1/1/98 @ 102 (1991 Capital Improvements Project) Baa1/A- 765,000
365,000 Turlock Irrigation District Certificate of Participation, 7.00% due 1/1/01,
pre-refunded 1/1/98 @ 102 (1991 Capital Improvements Project) Baa1/A- 372,300
420,000 Turlock Irrigation District Certificate of Participation, 7.15% due 1/1/03,
pre-refunded 1/1/98 @ 102 (1991 Capital Improvements Project) Baa1/A- 428,400
1,600,000 University of California Regents Certificate of Participation Series 1996,
5.45% due 6/1/03 (Various Capital Projects; Insured: MBIA) Aaa/AAA 1,691,952
635,000 University of California Research Facilities Revenue, 11.00% due 9/1/98 NR/A- 664,756
870,000 University of California Research Facilities Revenue, 5.25% due 9/1/02 NR/A- 906,052
500,000 University California Revenue Bonds Series A, 8.00% due 11/1/00 Aaa/AAA 554,160
625,000 Vallejo Public Financing Authority Local Agency Revenue Series A, 5.00% due 9/2/98 NR/A- 629,381
1,000,000 Walnut Valley Unified School District, 8.75% due 8/1/10 Aaa/AAA 1,391,770
800,000 Walnut Valley Unified School District, 9.00% due 8/1/06 Aaa/AAA 1,065,752
245,000 Walnut Valley Unified School District Series A, 6.70% due 8/1/05 Aaa/AAA 283,176
250,000 Walnut Valley Unified School District Series A, 6.80% due 2/1/07 Aaa/AAA 295,710
250,000 Walnut Valley Unified School District Series A, 6.90% due 2/1/08 Aaa/AAA 301,080
100,000 Walnut Valley Unified School District Series A, 7.00% due 8/1/08 Aaa/AAA 121,976
495,000 Yorba Linda Public Financing Authority Certificate of Participation,
7.00% due 11/1/00 (Recycling Equipment Project) A/NR 524,156
650,000 Yuba City Unified School District Certificate of Participation, 6.70% due 2/1/13 Baa1/NR 711,373
TOTAL INVESTMENTS (Cost $128,665,866) $133,704,631
* Indicates rating on other debt issued by the same issuer,
rather than on the security held by the Portfolio. 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.
</TABLE>
