THORNBURG LIMITED TERM MUNICIPAL FUND-
NATIONAL PORTFOLIO CLASS SHARES
Thornburg Thornburg
Limited Term Municipal Limited Term Municipal
Fund-National Fund-National
A Shares C Shares
SEC Yield 3.70% 3.34%
Taxable Equiv. Yields 6.13% 5.53%
NAV $13.55 $13.57
Max. Offering Price $13.90 $13.57
1 Year Ending 2.87% 5.04%
3 Year Ending 5.55% 5.95%
5 Years Ending 4.74% NA
10 Years Ending 6.21% NA
Since Inception 6.93% 4.88%
Inception Date (9/28/84) (9/1/94)
Taxable equivalent yields assume a 39.6% marginal federal tax rate. Net
investment income of the National Portfolio 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
119 East Marcy Street, Suite 202, Santa Fe, New Mexico 87501 (505) 984-0200
Dear Fellow Shareholder:
I am pleased to present the Semi-Annual Report for the National Portfolio of
Thornburg Limited Term Municipal Fund for the 6 months ending December 31, 1997.
The net asset value of the A shares increased 11 cents per share to $13.55
during the year. If you were with us for the entire period, you received
dividends of 30.7 cents per share. If you reinvested your dividends, you
received 31 cents per share. Investors who owned C Shares received dividends of
27.9 and 28.1 cents per share, respectively.
Your Limited Term Municipal Fund portfolio currently holds over 500 municipal
obligations from 48 states and 3 U.S. Territories. Approximately 86% of the
bonds are rated A or better by one of the major rating agencies. As you know, we
"ladder" the maturities of the bonds in your portfolio so that some bonds are
scheduled to mature at par during each of the coming 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 in the coming years are
summarized below: .
% 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 = 18% year 3 = 43%
3 to 4 years = 16% year 4 = 59%
4 to 5 years = 14% year 5 = 73%
5 to 6 years = 9% year 6 = 82%
6 to 7 years = 6% year 7 = 88%
7 to 8 years = 5% year 8 = 93%
8 to 9 years = 5% year 9 = 98%
9 to 10 years = 2% year 10 = 100%
Over the last year your average portfolio maturity has been stable. The passage
of time shortened the maturities of the bonds we owned at the beginning of the
year. We directed portfolio cash flow and new money into the middle maturity
range of your bond ladder. Today we are managing the portfolio to keep the
average maturity approximately where it is. We will stick with this approach if
interest rates remain stable or decrease. If bond yields increase, we will
likely extend the average portfolio maturity slightly. This would permit us to
increase our dividend yields if higher yields are available.
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 here and there, 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. Also, cities continued to increase their financial
reserves for the fifth consecutive year. Most states report similar favorable
news, and both operating and capital budget spending levels are increasing.
There is one possible cloud: as Washington hands increasing responsibility for
implementing mandated programs to state and local governments, 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 earned Morningstar's
coveted 5 star overall rating for risk adjusted performance for 124 consecutive
months. 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.
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 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 12/31/97. 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. - National Portfolio
December 31, 1997
(unaudited)
ASSETS
Investments, at value (cost $904,947,865) $ 939,468,720
Cash 999,741
Receivable for fund shares sold 675,337
Interest receivable 15,825,619
Prepaid expenses and other assets 55,432
TOTAL ASSETS 957,024,849
LIABILITIES
Payable for securities purchased 33,088,717
Dividends payable 1,204,634
Payable for fund shares redeemed 788,688
Accounts payable investment adviser (Note 4) 456,283
Accounts payable and accrued expenses 476,011
TOTAL LIABILITIES 36,014,333
NET ASSETS $ 921,010,516
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($858,175,296 applicable to 63,333,551 shares of beneficial
interest outstanding - Note 5) $13.55
Maximum sales charge, 2.50% of offering
price (2.57% of net asset value per share) .35
Maximum Offering Price Per Share $13.90
Class C Shares:
Net asset value and offering price per share*
($19,743,335 applicable to 1,454,585 shares of beneficial
interest outstanding - Note 5) $13.57
Class I Shares:
Net asset value, offering and redemption price per share
($43,091,885 applicable to 3,179,650 shares of beneficial
interest outstanding - Note 5) $13.55
* 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. - National Portfolio
Six Months Ended December 31, 1997
(unaudited)
INVESTMENT INCOME
Interest income (net of premium amortized $25,345,766
of $1,773,905)
EXPENSES
Investment advisory fees (Note 4) 2,105,296
Administration Fees (Note 4)
Class A Shares 541,250
Class C Shares 12,426
Class I Shares 10,185
Distribution and service fees (Note 4):
Class A Shares 1,082,499
Class C Shares 98,610
Transfer agent fees 273,857
Custodian fees 178,045
Registration and filing fees 57,469
Accounting fees 49,200
Professional fees 43,075
Other expenses 51,355
TOTAL EXPENSES 4,503,267
Less:
Expenses reimbursed by investment adviser (Note 4) (58,926)
NET EXPENSES 4,444,341
NET INVESTMENT INCOME 20,901,425
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS - NOTE 6
Net realized gain on investments sold 80,607
Increase in unrealized appreciation of investments 8,550,722
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 8,631,329
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $29,532,754
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. - National Portfolio
(unaudited)
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $20,901,425 $42,541,545
Net realized gain on investments sold 80,607 539,071
Increase in unrealized
appreciation of investments 8,550,722 5,502,227
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 29,532,754 48,582,843
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (19,502,832) (40,902,258)
Class C Shares (406,663) (778,574)
Class I Shares (991,930) (860,713)
FUND SHARE TRANSACTIONS-- (Note 5)
Class A Shares 12,465,536 (86,054,790)
Class C Shares 85,107 3,430,304
Class I Shares 6,985,926 35,647,049
NET INCREASE (DECREASE) IN NET ASSETS 28,167,898 (40,936,139)
NET ASSETS:
Beginning of period 892,842,618 933,778,757
End of period $921,010,516 $892,842,618
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. - 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 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 the investment objectives of the Portfolio 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 NATIONAL MUNICIPAL FUND
On September 4, 1997, the Fund acquired all of the net assets of the MacKenzie
Limited Term National 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
$51,645,133) for the net assets of MacKenzie which aggregated $51,645,133,
including $1,028,723 of unrealized appreciation. The combined net assets of the
Portfolio immediately after merger were $936,759,616.
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 ending
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 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 $58,926.
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 $48,638 from the sale of Class A shares, and collected contingent
deferred sales charges aggregating $1,552 from redemptions of Class C shares of
the Portfolio.
Pursuant to a Service Plan under Rule 12b-1 of the Investment Company Act of
1940, the Fund may reimburse to the Adviser amounts not to exceed .25 of 1% per
annum of the average net assets attributable to each class of shares of the
Portfolio for payments made by the Adviser to securities dealers and other
financial institutions to obtain various shareholder related services. The
Adviser may pay out of its own funds additional expenses for distribution of the
Portfolio's shares.
The Fund has also adopted a Distribution Plan pursuant to Rule 12b-1, applicable
only to the Portfolio's Class C shares under which the Fund compensates the
Distributor for services in promoting the sale of Class C shares of the
Portfolio at an annual rate of up to .75% of the average daily net assets
attributable to Class C shares. Total fees incurred by each class of shares of
the Portfolio under their respective service and distribution plans and fees
waived by the Distributor for the 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 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 $891,649,872.
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 5,851,954 $ 79,108,162 8,168,627 $109,492,186
Shares issued to shareholders
in reinvestment of
distributions 942,122 12,740,369 2,018,378 27,066,503
Shares issued in merger 3,834,086 50,616,411
Shares repurchased (9,621,958)(129,999,406) (16,605,536)(222,613,479)
Net Increase (Decrease) 1,006,204 $ 12,465,536 (6,418,531)($86,054,790)
Class C Shares
Shares sold 247,880 $ 3,332,069 783,570 $ 10,526,674
Shares issued to shareholders
in reinvestment of
distributions 24,094 326,302 48,023 645,052
Shares repurchased (264,090) (3,573,264) (577,361) (7,741,422)
Net Increase 7,884 $ 85,107 254,232 $ 3,430,304
Class I Shares
Shares sold 811,375 $ 10,917,029 2,915,809 $ 39,082,796
Shares issued to shareholders
in reinvestment of
distributions 45,706 618,073 38,699 518,582
Shares repurchased (336,887) (4,549,176) (295,052) (3,954,329)
Net Increase 520,194 $ 6,985,926 2,659,456 $ 35,647,049
Note 6 - INVESTMENT SECURITY TRANSACTIONS
For the six months ended December 31, 1997, the Portfolio had purchase and sale
transactions (excluding short-term securities) of $78,222,997 and $109,318,435
respectively.
At December 31, 1997, net unrealized appreciation of investmens was
$34,520,855, resulting from $34,992,524 gross unrealized appreciation
and $471,669 gross unrealized depreciation.
Accumulated net realized losses from security transactions included in net
assets at December 31, 1997 aggregated $5,160,212.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $4,172,253 from prior fiscal years available to offset future
realized capital gains. To the extent that such carryforwards are used, no
capital gains distributions will be made. The carryforwards expire as follows:
June 30, 1999 - $97,131 June 30, 2002 - $807,085, June 30, 2003 - $602,103, and
June 30, 2004 - $2,665,934.
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
<TABLE>
Per share operating performance
(for a share outstanding
throughout the period)
<CAPTION>
Six Months Ended Year Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
December 31, 1997 1997 1996 1995 1994 1993
Class of Shares: A A A A A A
Net asset value, beginning of period $13.44 $13.35 $13.37 $13.27 $13.59 $13.09
Income from investment operations:
Net investment income .31 .62 .63 .64 .63 .68
Net realized and unrealized
gain (loss) on investments .11 .09 (.02) .10 (.32) .50
Total from investment operations .42 .71 .61 .74 .31 1.18
Less dividends from:
Net investment income (.31) (.62) (.63) (.64) (.63) (.68)
Change in net asset value .11 .09 (.02) .10 (.32) .50
Net asset value, end of period $13.55 $13.44 $13.35 $13.37 $13.27 $13.59
Total return (a) 3.13% 5.46% 4.60% 5.76% 2.25% 9.24%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.50% 4.65% 4.66% 4.86% 4.60% 5.03%
Expenses .97% .96% .97% .97% .95% 1.01%
Portfolio turnover rate 8.51% 23.39% 20.60% 23.02% 15.63% 19.30%
Net assets
at end of period (000) $858,175 $837,621 $917,831 $931,987 $1,030,293 $895,500
<FN>
(a) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
</FN>
</TABLE>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
<TABLE>
Per share operating performance
(for a share outstanding
throughout the period) Period from
<CAPTION>
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 $13.46 $13.37 $13.40 $13.29
Income from investment
operations:
Net investment income .28 .57 .57 .46
Net realized and unrealized
gain (loss) on investments .11 .09 (.03) .11
Total from investment
operations .39 .66 .54 .57
Less dividends from:
Net investment income (.28) (.57) (.57) (.46)
Change in net asset value .11 .09 (.03) .11
Net asset value, end of period $13.57 $13.46 $13.37 $13.40
Total return (b) 2.91% 5.02% 4.05% 4.25%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.09%(c) 4.24% 4.22% 4.21%(c)
Expenses, after expense reductions 1.38%(c) 1.38% 1.41% 1.60%(c)
Expenses, before expense reductions 1.46%(c) 1.86% 1.63% 1.84%(c)
Portfolio turnover rate 11.90% 23.39% 20.60% 23.02%
Net assets
at end of period (000) $19,743 $19,475 $15,945 $6,469
<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>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Per share operating performance
(for a share outstanding
throughout the period)
Period From
Six Months Ended July 5, 1996 (a)
December 31, to June 30,
1997 1997
---- ----
Class of Shares: I I
Net asset value, beginning of period $13.44 $13.27
Income from investment
operations:
Net investment income .33 .66
Net realized and
unrealized
gain on investments .11 .17
Total from investment
operations .44 .83
Less dividends from:
Net investment income (.33) (.66)
Change in net asset value .11 .17
Net asset value, end of period $13.55 $13.44
Total return (b) 3.31% 6.42%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.87%(c) 5.01%(c)
Expenses, after expense reductions .60%(c) .60%(c)
Expenses, before expense reductions .70%(c) .79%(c)
Portfolio turnover rate 11.90% 23.39%
Net assets
at end of period (000) $43,092 $35,746
(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.
s c h e d u l e o f i n v e s t m e n t s
<TABLE>
<CAPTION>
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
December 31, 1997 CUSIPS: Class A - 532-723-103, Class C - 532-723-509, Class I - 532-723-806
NASDAQ Symbols: Class A - LTMFX, Class C -LTMCX, Class I - LTMIX
<S> <C> <C> <C>
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
Alabama (1.65%)
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 $ 1,802,836
1,000,000 Alabama Water Pollution Control Authority Series 1991, 6.45% due 8/15/02
(Insured: AMBAC) Aaa/AAA 1,076,900
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 2,688,550
1,550,000 Birmingham Jefferson Civic Center Authority Special Tax Series 1989, 7.20% due 1/1/01 A/A+ 1,626,539
1,320,000 Birmingham Jefferson Civic Center Authority Special Tax, 6.90% due 1/1/98 A/A+ 1,320,000
400,000 Houston County Hospital Revenue Bonds, 6.375% due 1/1/02 Aaa/NR 424,188
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 1,621,043
1,000,000 Huntsville Healthcare Authority Revenue Bonds, 5.50% due 6/1/08(Insured: MBIA) Aaa/AAA 1,075,150
1,000,000 Mobile Water & Sewer Revenue Bonds, 7.10% due 1/1/99 A/A+ 1,026,560
1,695,000 Montgomery County Revenue Warrants Series 1992, 6.625% due 4/1/02 NR/A 1,851,398
965,000 Morgan County-Decatur Healthcare Revenue, 5.40% due 3/1/00
(Decatur General Hospital Project; Insured: Connie Lee) NR/AAA 991,644
Alaska (1.31%)
2,500,000 North Slope Borough G.O. Refunding Series 1992-A, 5.80% due 6/30/02 (Insured: MBIA) Aaa/AAA 2,667,750
11,000,000 North Slope Borough G.O. Capital Appreciation Series B, 0% due 1/1/01 (Insured: MBIA) Aaa/AAA 9,673,400
Arizona (3.11%)
5,250,000 Arizona Educational Loan Marketing Corporation Revenue, 6.40% due 3/1/98 Aa2/NR 5,271,788
1,250,000 Arizona Educational Loan Marketing Corporation Revenue, Series 1992-A, 6.70% due 3/1/00 A/NR 1,303,700
1,600,000 Arizona State Certificate of Participation Series 1994-A, 5.45% due 5/1/98 (Insured: AMBAC)Aaa/AAA 1,608,832
2,320,000 Arizona Municipal Finance Program Certificate of Participation Series 15, 8.65% due 8/1/04
(Flagstaff Project; Insured: BIG) Aaa/AAA 2,898,306
1,000,000 Maricopa Cnty Certificate of Participation, 5.625% due 6/1/00 Baa1/BBB+ 1,023,150
1,255,000 Maricopa Hospital District General Obligation Series A, 5.00% due 6/1/98 (Insured: FGIC) Aaa/AAA 1,261,752
1,550,000 Maricopa County School District # 8 Series 1992, 0% due 7/1/99
(Osborn Elementary School District Project) A1/A 1,459,961
500,000 Maricopa County School District # 40 - Glendale General Obligation, 5.60% due 7/1/03 Baa1/A 534,565
750,000 Maricopa County School District # 40 - Glendale General Obligation, 0% due 1/1/01 Baa1/A 660,518
500,000 Maricopa County School District # 40 - Glendale General Obligation, 0% due 7/1/00 Baa1/A 450,320
3,800,000 Maricopa School District # 41 - Gilbert General Obligation, 0% due 7/1/01 (Insured: FGIC Aaa/AAA 3,287,760
1,000,000 Maricopa County Unified School District # 48 - Scottsdale General Obligation,
7.75% due 7/1/03 Aa2/AA 1,174,070
2,000,000 Maricopa County Unified School District # 41 Refunding, 0% due 7/1/97 (Insured: FGIC) Aaa/AAA 1,730,400
1,390,000 Maricopa County Unified School District # 97, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 1,364,216
710,000 Mohave County Certificate of Participation, 4.90% due 7/1/98 NR/BBB 711,669
730,000 Mohave County Certificate of Participation, 5.10% due 7/1/99 NR/BBB 734,709
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 2,115,680
175,000 South Tucson Municipal Property Corporation Series 1990, 8.20% due 6/1/99 NR/BB 179,898
175,000 South Tucson Municipal Property Corporation Series 1990, 8.25% due 6/1/00 NR/BB 183,962
1,200,000 Tucson Water System Revenue Refunding Series 1992, 5.80% due 7/1/99 A1/A+ 1,232,736
Arkansas (0.09%)
1,000,000 Arkansas State General Obligation College Savings, 0% due 6/1/02 Aa/AA 825,480
California (14.48%)
2,145,000 Antelope Valley Hospital Hospital Revenue Bond, 5.50% due 1/1/07 Aaa/AAA 2,310,530
3,000,000 California Housing Financing Agency Revenue, 5.05% due 8/1/06 Aaa/AAA 3,042,510
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 1,036,330
500,000 California Health Facilities Financing Authority, 7.80% due 7/1/06
(Insured: California Mortgage) NR/A+ 511,240
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 8,161,159
1,125,000 California Public Capital Improvement Finance Authority Revenue Series
1988-E, 8.25% due 3/1/98 Baa/NR 1,131,694
2,000,000 California State General Obligation, 6.50% due 10/1/99 A1/A 2,088,360
350,000 California State General Obligation, 9.25% due 3/1/05 A1/A+ 455,319
515,000 California Public Works Board Lease Revenue, 4.75% due 10/1/07 A2/A 524,224
1,055,000 California Statewide Communities Development Authority Insured Health
Facilities Revenue Certificate of Participation Series 1992, 6.40% due 5/1/02
(Eskaton Properties Inc. Phase II Project) NR/A 1,094,362
1,100,000 California Statewide Communities Development Authority Certificate of
Participation, 4.01% (inverse floater) due 1/1/02 (Motion Picture & Television
Fund Project; Insured: AMBAC) Aaa/AAA 1,053,173
1,000,000 Escondido Multifamily Housing Revenue Refunding Bonds Series 1997-A, 5.40% due 1/1/27,
put 7/1/07 (Terrace Gardens Project; Collateralized: FNMA) NR/AAA 1,049,240
910,000 Fairfield-Suisun Sewer District Revenue Refunding Series A, 6.50% due 5/1/03
(Insued: MBIA) Aaa/AAA 990,844
7,730,000 Glendale Hospital Revenue Series 1994, 7.625% due 1/1/05
(Verdugo Hills Project; Surety Bond: Industrial Indemnity) NR/A+ 8,580,996
500,000 Los Angeles Water and Power, 9.00% due 2/1/02 Aa3/A+ 590,195
500,000 Los Angeles Water and Power, 9.00% due 2/1/04 Aa3/A+ 624,595
5,710,000 Los Angeles Water and Power, 7.10% due 1/15/31, crossover refunded 1/15/01 @ 102 Aa/A+ 6,288,651
1,500,000 Los Angeles Unified School District Certificate of Participation, 6.20% due 6/1/01
(Dr. Francisco Bravo Medical Project) A/A- 1,594,995
1,400,000 Los Angeles Wastewater System Revenue, 6.80% pre-refunded 8/1/98 @ 102 AAA/A 1,452,500
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 1,522,749
1,050,000 Los Angeles County Certificate of Participation Series B, 5.50% due 7/1/98 A1/A+ 1,059,177
1,000,000 Los Angeles Transit Finance Corporation Certificate of Participation
Series 1992-B, 5.70% due 7/1/99 A1/A+ 1,025,830
1,995,000 Los Angeles Transportation Commission Certificate of Participation, 5.90% due 7/1/00 A1/A+ 2,083,857
2,500,000 Los Angeles Transportation Commission Certificate of Participation, 6.00% due 7/1/01 A1/A+ 2,655,100
1,500,000 MSR Public Power Agency Series F, 5.45% due 7/1/01
(San Juan Project; Insured: AMBAC) Aaa/AAA 1,573,380
780,000 Morgan Hill Unified School District Certificate of Participation, 5.80% due 8/1/99 A1/NR 781,006
265,000 New Haven Unified School District Certificate of Participation, 7.00% due 12/1/99 NR/A- 276,946
2,500,000 Orange County Refunding Recovery, 5.10% due 6/1/02 (Insured: MBIA) Aaa/AAA 2,597,925
3,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 3,147,300
7,600,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 8,550,304
5,200,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 5,916,872
1,000,000 Orange County Local Transportation Measure "M" Sales Tax Revenue, 5.50% due 2/15/01 Aa/AA 1,042,970
8,300,000 Orange County Local Transportation Authority Sales Tax Revenue, 2.60%
(inverse floater) due 2/15/99 (Insured: FGIC) Aaa/AAA 8,218,494
13,000,000 Orange County Recovery Certificate of Participation Series A, 5.50% due 7/1/02 (Insured: Aaa/AAA 13,730,080
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+ 2,056,940
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+ 5,285,950
1,875,000 Oxnard Harbor District Revenue Refunding, 6.60% due 8/1/00 (Insured: Capital Guaranty) Aaa/AAA 1,950,900
500,000 Palomar Pomerado Health Systems Rev. Capital Appreciation, 0% due 11/1/03 (Insured: MBIA Aaa/AAA 391,675
500,000 Pomona Public Financing Authority Rev. Series P, 5.625% due 10/1/03 NR/BBB+ 532,610
435,000 Pomona USD General Refund Bonds Series 1997-A, 5.10% due 8/1/00 Aaa/AAA 447,371
2,805,000 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+ 2,837,959
750,000 Redwood City Public Financing Authority Local Agency Rev. Series B,
7.10% due 7/15/01 (Escrowed to Maturity) NR/A- 824,183
1,180,000 San Francisco Airport Improvement Corporation Lease Revenue Bond, 7.875% due 7/1/99
(United Airlines Project) (Escrowed to Maturity) Aaa/AAA 1,220,616
1,000,000 San Francisco Port Community Rev., 9.00% due 7/1/03 A/BBB+ 1,222,010
2,100,000 San Joaquin County Certificate of Participation, 5.50% due 9/1/99
(General Hospital Project) A/A- 2,141,328
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 2,093,200
500,000 Santa Clara Certificates of Participation Series A, 7.75% due 2/1/02 (Insured: MBIA) Aaa/AAA 569,060
4,180,000 Santa Margarita / Dana Point Authority Revenue Improvement District Series A,
9.50% due 8/1/03 (Insured: MBIA) Aaa/AAA 5,267,427
5,720,000 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- 5,856,479
1,000,000 Sonoma County Certificate of Participation Public Works Improvement Program,
5.875% due 8/1/04 (Integrated Waste Project) NR/A+ 1,040,010
750,000 Southern California Public Power Authority Rev., 6.75% due 7/1/01 (Power Project) A/A 811,448
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+ 2,081,360
1,000,000 University of California Certificates of Participation, 10.00% due 11/1/03
(UCLA Center Chiller / Cogen Project) Aa3/NR 1,293,010
510,000 University of California Revenue Series A, 11.00% due 9/1/99 NR/A- 566,126
780,000 University of California Revenue Series A, 6.30% due 9/1/00 NR/A- 822,877
Colorado (4.19%)
500,000 Arvada Limited Sales & Use Tax Series 1991, 6.50% due 6/1/01 (Escrowed to Maturity) Aaa*/NR 536,720
2,355,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 5.90%
due 3/1/01 (Insured: MBIA) Aaa/AAA 2,469,453
1,465,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 6.00%
due 3/1/02 (Insured: MBIA) Aaa/AAA 1,535,774
10,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 5/1/98 NR/AAA 9,322
385,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/98 NR/AAA 343,636
390,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/99 NR/AAA 333,251
490,000 Castle Pines Metropolitan District General Obligation Refunding & Improvement,
7.50% due 12/1/99 (Insured: FSA) Aaa/AAA 521,973
2,000,000 Colorado Housing Finance Authority Capital Appreciation Series A, 0% due 11/1/01 Aa/AA+ 1,621,100
1,240,000 Colorado Student Loan Revenue Series 1992-B, 6.20% due 9/1/98 A/NR 1,258,588
840,000 Colorado Student Loan Revenue Series 1992-B, 6.40% due 9/1/99 A/NR 870,114
2,540,000 Colorado Student Loan Revenue Series 1992-B, 6.55% due 12/1/02 A/NR 2,679,065
2,435,000 Colorado Student Obligation Bond Authority Revenue Series 1992-F, 5.90% due 9/1/02 A/NR 2,551,831
3,230,000 Colorado Student Obligation Bond Authority Revenue Series 1994-L, 5.90% due 9/1/00 A/NR 3,358,683
1,080,000 Denver City & County Industrial Development Revenue, 7.40% due 3/1/03
(University of Denver Project) NR/BBB+ 1,169,435
1,155,000 Denver City & County Industrial Development Revenue, 7.50% due 3/1/04
(University of Denver Project) NR/BBB+ 1,250,449
1,185,000 Denver City & County Industrial Development Revenue, 7.60% due 3/1/05
(University of Denver Project) NR/BBB+ 1,309,804
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- 3,574,970
360,000 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+ 373,738
2,460,000 Denver School District #1 Certificate of Participation Series 1996, 5.50% due 12/15/02
(Insured: AMBAC) Aaa/AAA 2,605,066
500,000 El Paso County School District General Obligation # 20 Series B, 8.25% due 12/15/04
(LOC: State Aid Withholding) A1/NR 614,120
2,175,000 Highlands Ranch Metro District #2 General Obligation, 6.00% due 6/15/04 (Insured: FSA) Aaa/AAA 2,391,869
560,000 Highlands Ranch Metro District #1 Refunding, 5.25% due 9/1/03 (Insured: AMBAC) Aaa/AAA 589,344
2,000,000 Summit County Recreational Facilities Revenue, 5.80% due 4/1/17, put 10/1/98
(Copper Mountain Project; LOC: Daiwa Bank) NR/BBB 2,010,080
1,000,000 University of Colorado Certificate of Participation, 7.10% due 12/1/99, pre-refunded 12/ A2/AAA* 1,049,130
2,725,000 Westminster Multifamily Housing Revenue series 1995, 5.95% due 9/1/15,
put 9/1/06 (Semper Village Apartments; Insured AXA) NR/AA 2,874,766
1,350,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/01 NR/AA 1,416,704
Connecticut (2.19%)
1,685,000 Bridgeport General Obligation, 6.00% due 3/1/05 (Insured: AMBAC) Aaa/AAA 1,858,538
1,325,000 Bridgeport General Obligation, 6.00% due 3/1/06 (Insured: AMBAC) Aaa/AAA 1,472,579
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 2,303,763
1,045,000 Capitol Region Education Council, 6.375% due 10/15/05 NR/BBB 1,118,578
1,000,000 Connecticut Housing Finance Authority Series 1988-B, 6.90% due 11/15/98 Aa/AA 1,014,400
700,000 Connecticut Resource Recovery Authority, 7.125% due 11/15/08 (Wallingford Project;
LOC: National Westminister) Aa2/AA 712,145
5,000,000 Connecticut Unemployment Compensation Advance Fund Refunding Revenue Series 1996-A,
5.50% due 5/15/01 (Insured: AMBAC) Aaa/AAA 5,231,750
1,000,000 Connecticut Special Tax Obligation Revenue Series C, 7.40%
due 10/1/04, pre-refunded 10/1/98 NR/AAA 1,046,790
5,540,000 Connecticut State Special Tax Obligation Series 1989-B, 0% due 7/1/99
(Transportation Infrastructure Project; Insured: AMBAC) Aaa/AAA 5,225,051
500,000 New Haven General Obligation, 9.50% due 11/15/03 Baa1/BBB 621,575
Delaware (0.17%)
1,500,000 Delaware Solid Waste System Revenue, 6.00% due 7/1/03 (Insured: MBIA) Aaa/AAA 1,629,075
District of Columbia (1.92%)
1,000,000 District of Columbia General Obligation 1988 Series A, 7.65% due 12/1/03 (Insured: MBIA) Aaa/AAA 1,054,040
1,505,000 District of Columbia General Obligation Capital Appreciation Refunding,
0% due 6/1/02 (Insured: MBIA) Aaa/AAA 1,242,874
1,255,000 District of Columbia General Obligation 1994 Series A-3, 4.90% due 6/1/00 Ba/B 1,270,625
1,000,000 District of Columbia Series B, 7.10% due 6/1/00 (Insured: FSA) Aaa/AAA 1,068,330
1,500,000 District of Columbia General Obligation Refunding Series A, 5.30% due 6/1/00 Ba/B 1,532,295
2,000,000 District of Columbia General Obligation Refunding Series A, 5.50% due 6/1/01 (Insured: F Aaa/AAA 2,084,260
4,000,000 District of Columbia Certificate of Participation Series 1993, 6.875% due 1/1/03 NR/B- 4,193,160
1,000,000 District of Columbia Revenue, 6.00% due 7/15/03 (Children's Hospital Project; Insured: F Aaa/AAA 1,079,400
1,330,000 District of Columbia Revenue, 6.00% due 8/15/05 (Medlantic Healthcare Project; Insured: Aaa/AAA 1,459,968
275,000 District of Columbia Association of American Medical College, 7.20% due 2/15/01 NR/AA- 297,217
515,000 District of Columbia Revenue Bonds, Series 1997, 5.00% due 1/1/02
(American Association for Advancement of Science Project; Insured: AMBAC) Aaa/AAA 528,689
1,070,000 District of Columbia Revenue Bonds, Series 1997, 5.00% due 1/1/03
(American Association for Advancement of Science Project; Insured: AMBAC) Aaa/AAA 1,102,410
1,120,000 District of Columbia Revenue Bonds, 5.00% due 1/1/04
(American Association for Advancement of Science Project) Aaa/AAA 1,155,101
Florida (3.05%)
490,000 Brevard County Tourist Development Tax Revenue, 6.325% due 3/1/03
(Florida Marlins' Training Facilities Project) NR/NR 515,220
620,000 Cape Coral Special Assessment, 6.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 628,246
690,000 Cape Coral Special obligation Revenue Refunding, 6.10% due 7/1/05 Aaa/AAA 718,814
3,000,000 Collier County School Board Certificates of Participation, 5.50% due 2/15/03 (Insured: F Aaa/AAA 3,147,210
2,000,000 Dade County School Board Certificates of Participation, 5.75% due 8/1/00 (Insured: AMBAC Aaa/AAA 2,136,540
5,000,000 Dade County Solid Waste System Special Obligation Revenue, 5.25% due 10/1/03
(Insured: AMBAC) Aaa/AAA 5,254,950
200,000 East County Water Control District Lee County Drain, 5.50% due 11/1/03
(LOC: Asset Guaranty) NR/AA 212,148
1,525,000 Escambia County Health Facilities Series A, 8.70% due 10/1/14,
partially pre-refunded 10/1/98 (Baptist Hospital Project) NR/BBB+ 1,603,797
3,100,000 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+ 3,166,464
1,940,000 Florida Housing Finance Authority Series 1987, 4.85% due 2/1/08, put 2/1/01
(Insured: Connecticut General) NR/AA 1,958,275
1,070,000 Florida Housing Finance Authority Series 1983-I, 4.85% due 12/1/05, put 12/1/99
(Wood Forest Project; LOC: Connecticut General) NR/AA 1,077,490
1,500,000 Florida Housing Finance Agency Revenue, 6.25% due 12/1/06
(Hammocks Place Project) NR/AAA 1,572,240
150,000 Hillsborough County Utility Refunding Rev., 9.75% due 12/1/03 (Insured: MBIA) Aaa/AAA 182,135
550,000 Jacksonville Port Authority Rev., 7.625% due 11/1/02 (Insured: MBIA) Aaa/AAA 634,387
1,000,000 Jacksonville Port Authority Rev., 7.625% due 11/1/03 (Insured: MBIA) Aaa/AAA 1,176,450
1,000,000 Lee County School Board Certificate of Participation, 6.20% due 8/1/00 (Insured: FSA) Aaa/AAA 1,053,950
1,195,000 Lee County School Board Certificate of Participation, 6.30% due 8/1/01 (Insured: FSA) Aaa/AAA 1,285,031
415,000 Martin County Combined Special Assessment Series 1990-A, 8.125% due 3/1/01 NR/NR 448,092
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+ 1,022,419
250,000 Pasco County School Board Certificates of Participation Series A,
6.10% due 8/1/01 (Insured: FSA) (Escrowed to Maturity) Aaa/AAA 266,495
500,000 Volusia County School Board Certificates of Participation, 10.00% due 8/1/00
(Master Lease Program Project; Insured: FSA) Aaa/AAA 572,510
Georgia (0.27%)
1,590,000 Burke County Development Authority Pollution Control Revenue, 6.25% due 1/1/03
(Insured: MBIA) Aaa/AAA 1,729,650
800,000 Gwinnett County Dev Auth Rev, 6.95% due 6/1/01 (Mead Corp. Project) (Escrowed to Maurity NR/AAA* 828,440
Hawaii (1.14%)
6,000,000 Hawaii State Refunding Series CB, 5.00% due 1/1/00 Aa/AA 6,116,520
2,000,000 Hawaii Airport System Revenue Refunding, 5.10% due 7/1/99 (Insured: MBIA) Aaa/AAA 2,033,760
435,000 Hawaii State Department Budget & Finance Special Purpose Mortgage
Revenue, 7.125% due 7/1/98 (Wahiawa General Hospital Project) NR/BBB- 439,937
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 1,579,380
500,000 Honolulu City and County Series A, 7.25% due 7/1/00 Aa/AA 537,740
Idaho (0.63%)
700,000 Boise Idaho Urban Renewal Agency Pakage Revenue Tax Increment Series A,
6.00% due 9/1/02 NR/BBB+ 745,521
4,980,000 Idaho Falls Electric Revenue Refunding, 0% due 4/1/00 (Insured: FGIC) Aaa/AAA 4,547,387
625,000 Idaho Student Loan Marketing Association Refunding Revenue Series 1992,
6.40% due 10/1/99 NR/NR 639,531
Illinois (2.33%)
1,800,000 Chicago, Illinois General Obligation LTD, 5.50% due 1/1/04 Aaa/AAA 1,909,260
3,350,000 Cook County Community Unified School District #401 Series 1996, 0% due 12/1/03
(Insured: FSA) Aaa/AAA 2,577,490
2,000,000 Cook County Community College District 508, 8.40% due 1/1/01 (Insured: FGIC) Aaa/AAA 2,239,020
1,800,000 Cook County Community College District 508 COP, 8.50% due 1/1/02 (Insured: FGIC) Aaa/AAA 2,079,054
925,000 Illinois Health Facilities Authority Revenue, 5.25% due 5/1/99
(Galesburg Cottage Hospital Project; LOC: Asset Guaranty) Baaz/AA 939,338
500,000 Illinois Health Facilities Authority Rev., 5.20% due 10/1/03
(Illinois Masonic Medical Center Project) A3/A- 517,010
2,000,000 Illinois Health Facilities Authority Revenue Series 1992, 7.00% due 7/1/02
(Trinity Medical Center Project) Baa1/NR 2,114,100
875,000 Illinois Health Facilities Authority Revenue Series 1993-A, 7.875% due 8/15/05
(Community Provider Pooled Loan Program Project) NR/NR 951,650
500,000 Metropolitan Pier and Exposition Authority Dedicated State Tax Rev.,
0% due 12/15/01 (Insured: MBIA) Aaa/AAA 423,705
2,800,000 Rosemont General Obligation, 5.40% due 12/1/05 A/A 2,972,284
2,445,000 Naperville City Du Page & Will Counties Economic Development Revenue, 6.10% due 5/1/08
(Hospital and Health System Association Project; LOC: American National) NR/AA- 2,677,079
900,000 Will and Kendall Counties Community School District # 202 General Obligation,
5.45% due 1/1/05 (Insured: AMBAC) Aaa/AAA 935,316
1,575,000 Winnebago and Boone Counties School Dist. #205, 7.00% due 2/1/98 (Escrowed to Maturity) Aaa/AAA 1,579,253
Indiana (3.63%)
1,255,000 Columbus School Building Corporation, 5.50% due 1/15/02 (Insured: MBIA) Aaa/AAA 1,316,432
895,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 6/15/99 NR/NR 922,530
570,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 12/15/99 NR/NR 592,447
2,305,000 Hammond Multi-School Building Corp First Mortgage Refunding Bonds Series 1997,
6.00% due 7/15/08 (Lake County Project) NR/A 2,542,369
2,000,000 Indiana Bond Bank Series B, 7.25% due 2/1/01 (Special Loan Program) A/A 2,044,380
1,120,000 Indiana Bond Bank Special Program Series 1992-B, 5.60% due 8/1/99 NR/A 1,146,376
1,000,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A, 5.30% due 2/1/99 NR/A 1,015,610
2,640,000 Indiana Bond Bank State Revolving Fund Guaranty Revenue Series 1993-A,
5.50% due 2/1/00 NR/A 2,719,913
1,500,000 Indiana Health Facilities Revenue, 5.55% due 7/1/01
(Marion General Hospital Project; Insured: MBIA) Aaa/AAA 1,568,760
1,500,000 Indianapolis Economic Development, 5.30% due 12/1/07
(FNMA Pass-Thru Certificate) NR/AAA 1,500,000
6,200,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev Series 1996,
6.00% due 1/10/01 NR/NR 6,263,550
1,220,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/05 Aa/AA- 866,773
1,240,000 Indianapolis Ind Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/06 Aa/AA- 838,240
2,200,000 Indianapolis Resource Recovery Revenue, 6.75% due 12/1/04
(Ogden Martin System, Inc. Project; Insured: AMBAC) Aaa/AAA 2,502,522
1,645,000 Logansport Multi-Purpose School Building Corporation First Mortgage
Refunding Series 1992, 5.50% due 7/1/01 NR/A 1,715,571
535,000 New Albany Floyd County School Building Corp., 6.20% due 7/01/03 (Escrowed to Maturity) NR/AAA* 583,771
1,660,000 Noblesville High School Building Corp. First Mortgage Bonds Series 1997,
5.75% due 1/5/06 (Insured: AMBAC) NR/AAA 1,807,574
1,820,000 Noblesville High School Building Corp. First Mortgage Bonds Series 1997,
5.75% due 7/5/06 (Insured: AMBAC) NR/AAA 1,988,805
1,820,000 Westfield Ind Elem School Building Corp. First Mtg Series 1997, 6.75% due 7/15/07
(Insured: AMBAC) Aaa/AAA 2,137,535
Iowa (1.52%)
500,000 Davenport Hospital Revenue Series A, 6.90% due 7/1/99
(St. Luke's Hospital Project; Insured: AMBAC) Aaa/AAA 521,355
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 1,347,402
1,500,000 Iowa Certificate of Participation, 6.10% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,593,375
2,000,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue 1991
Series C, 6.80% due 12/1/02 Aaa/AAA 2,164,040
750,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue
Series A, 6.35% due 3/1/01 Aa1/NR 792,960
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+ 2,749,292
500,000 Muscatine Electric Revenue, 9.50% due 1/1/04 Aaa/AAA 587,760
4,445,000 Muscatine Electric Revenue Refunding Series 1992, 5.40% due 1/1/00 (Insured: AMBAC) Aaa/AAA 4,569,504
Kansas (0.91%)
1,000,000 Kansas City Industrial Revenue Series 12/1/84, 7.20% due 12/1/04
(Ash Grove Cement Project) Aa2/NR 1,050,340
2,000,000 Lenexa Industrial Revenue Series 8/1/83, 9.50% due 8/1/98 (J.C. Nichols Co. Project) NR/NR 2,059,060
1,000,000 Sedgwick County Unified School District No. 265, 8.20% due 10/1/03 (Insured: FSA) Aaa/AAA 1,202,240
3,995,000 Topeka Multifamily Housing Revenue Refunding Series 1991-A, 7.25%
due 4/1/21, put 4/1/02 (Fleming Court Project; Insured: Trygg-Hansa) NR/A+ 4,195,749
Kentucky (0.87%)
4,500,000 Jefferson County Insured Hospital Revenue Series 1992, 7.729% (inverse floater)
due 10/1/02 (Alliant Health Systems Project; Insured: MBIA) Aaa/AAA 5,146,875
1,000,000 Kentucky State Turnpike Authority Res Rec Rev, 0% due 7/1/06 (Insured: FGIC) Aaa/AAA 684,480
2,090,000 Paintsville First Mortgage Revenue Series 1991, 8.50% due 9/1/03
(Paul B. Hall Medical Center Project; Guaranteed: Health Management Associates) NR/NR 2,313,358
Louisiana (4.22%)
2,020,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/00 (Insured: FGIC) Aaa/AAA 2,180,711
2,165,000 East Baton Rouge Parish Public Improv. Sales Tax Series 1993-A, 8.00%
due 2/1/01 (Insured: FGIC) Aaa/AAA 2,410,424
1,000,000 Jefferson Parish Drainage Improvement Refunding, 6.15% due 9/1/05 Aaa/AAA 1,101,310
1,000,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 3.05%
(inverse floater) due 7/1/98 (St. Francis Medical Center Project; Insured: FSA) Aaa/AAA 995,070
1,200,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 3.35%
(inverse floater) due 7/1/99 (St. Francis Medical Center Project; Insured: FSA) Aaa/AAA 1,181,316
1,100,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 3.60%
(inverse floater) due 7/1/00 (St. Francis Medical Center Project; Insured: FSA) Aaa/AAA 1,073,490
1,300,000 Louisiana Public Facilities Authority Hospital Revenue & Refunding, 3.80%
(inverse floater) due 7/1/01 (St. Francis Medical Center Project; Insured: FSA) Aaa/AAA 1,256,541
2,485,000 Louisiana PFA Student Loan Revenue Series A-1, 5.90% due 3/1/99 Aaa/NR 2,532,737
3,525,000 Louisiana PFA Student Loan Revenue Series A-1, 6.10% due 3/1/00 Aaa/NR 3,655,425
5,000,000 Louisiana PFA Health and Ed Cap Fac Revenue Series 1985 B-1, 5.00% due 12/1/15,
put 6/1/02 (Insured: AMBAC) Aaa/AAA 5,119,050
1,065,000 Louisiana PFA MFHR, 5.95% due 3/15/05 (Oakleigh Apts. Project; Insured: AXA) NR/AA 1,116,237
2,125,000 Louisiana Unlimited Tax General Obligation Series A, 6.00% due 8/1/01 (Insured: FGIC) Aaa/AAA 2,260,384
1,000,000 Louisiana Offshore Term Authority Deepwater Port Rev. 1st Stage Series B Loop Inc.
6.25% due 9/1/04 Baa1/A 1,088,950
2,450,000 Louisiana Recovery District Sales Tax Refunding Series 1992, 5.70% due 7/1/98 A/A- 2,474,598
5,000,000 Louisiana Recovery District Sales Tax Refunding Series 1992,
5.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 5,044,700
500,000 Louisiana State University Agricultural & Mechanical College Board,
7.70% due 4/15/02, (Escrowed to Maturity) NR/AAA* 566,810
4,800,000 Orleans Levee District Public Improvement Trust Receipts Series 1995-A, 5.95%
due 11/1/01 (Insured: FSA) Aaa/NR 5,122,272
460,000 Ouachita Parish Hospital Revenue District #1 Series 1991, 7.25% due 7/1/01 NR/A- 504,445
Maine (0.38%)
2,970,000 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 3,053,546
500,000 Regional Waste Systems Incorporated Series A-C, 7.30% due 7/1/98 NR/AA 508,610
Maryland (0.47%)
2,000,000 Howard County Maryland Multifamily Housing Revenue, 7.00% due 7/1/24,
put 7/1/04, (Chase Glen Project; Guaranty: Avalon Prop.) NR/NR 2,220,840
1,000,000 Maryland Health and Higher Education Facility Authority, 4,75% due 7/1/21, put 3/1/01
(Stella Maris Project; LOC: First Natl Bank) NR/A 1,016,390
1,105,000 Washington Suburban Sanitary District Series 1994, 8.75% due 6/1/99 Aa1/AA 1,179,422
Massachusetts (5.61%)
1,000,000 Boston General Obligation Series A, 7.25% due 7/1/99 A/A+ 1,036,650
1,600,000 Boston General Obligation Series A, 7.60% due 2/1/04, pre-refunded 2/1/99 Aaa+/A+ 1,694,896
3,145,000 Boston Revenue City Hospital, 7.65% due 2/15/10, pre-refunded 8/15/00 @102 AAA/NR 3,476,483
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 1,093,880
75,000 Haverhill General Obligation Municipal Purpose Loan Series 1991, 7.50% due 10/15/11 Baa/BBB 84,946
495,000 Holyoke General Obligation Electric Revenue Series 1991-A, 8.00% due 6/1/01 Baa/NR 526,423
400,000 Holyoke General Obligation Sewer Revenue Series B, 8.00% due 6/1/01 Baa/NR 421,920
1,440,000 Holyoke General Obligation School Project Loan Act of 1948, 7.35% due 8/1/02 Baa/NR 1,614,182
1,060,000 Lynn General Obligation, 7.00% due 1/15/04 Baa1/NR 1,190,581
630,000 Massachusetts Educational Loan Revenue Series 1985-C, 7.875% due 6/1/03
(LOC: Rabobank Nederland) NR/AAA 647,709
2,000,000 Massachusetts General Obligation Consolidated Loan of 1991 Series B, 0% due 6/1/01 A1/A+ 1,739,280
2,000,000 Massachusetts General Obligation Consolidated Series 1987-A, 5.75% due 3/1/99 A1/A+ 2,042,620
500,000 Massachusetts General Obligation Consolidated Loan Series D, 6.50% due 7/1/02 A1/A+ 546,230
3,000,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/00 A1/A+ 2,693,670
2,500,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/02 A1/A+ 2,056,375
1,465,000 Massachusetts State Health & Education Facilities Authority Series B, 6.70% due 7/1/98
(Charlton Hospital Project) A/A 1,484,602
1,245,000 Massachusetts State Health & Education Facilities Authority Series B, 6.875% due 7/1/99
(Charlton Hospital Project) A/A 1,292,933
2,615,000 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 2,692,535
2,500,000 Massachusetts IFA Recovery Refunding Revenue Series 1993-A, 5.45% due 7/1/01
(Insured: FSA) Aaa/AAA 2,604,050
1,890,000 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 1,896,823
5,000,000 Massachusetts IFA First Mortgage Revenue Series 1996-B, 5.00% due 5/1/26, put 5/1/02
(Orchard Cove Project; LOC: Fleet National Bank) NR/A 5,138,750
1,790,000 New Bedford Industrial Revenue, 7.42% due 7/1/02 (Aerovox Corporation Project) NR/A- 1,826,176
2,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-E, 5.00% due 7/1/99 A1/A- 2,023,320
1,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1992-F, 6.50% due 9/1/02 Aa/NR 1,089,850
3,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue
Series 1993-B, 5.40% due 6/1/00 A1/A- 3,072,090
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/98 Baa1/NR 444,775
295,000 South Essex Sewer District General Obligation, 9.00% due 12/1/99 Baa1/NR 322,034
550,000 Springfield General Obligation, 7.75% due 5/1/99 Baa/NR 575,834
250,000 Springfield General Obligation, 7.75% due 5/1/00 Baa/NR 269,163
300,000 Springfield General Obligation, 7.75% due 5/1/01 Baa/NR 331,149
300,000 Springfield General Obligation, 7.80% due 5/1/02 Baa/NR 335,751
1,500,000 Taunton General Obligation, 8.00% due 2/1/06 (Insured: MBIA) Aaa/AAA 1,864,830
2,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A, 6.80% due 5/1/99 A1/A+ 2,074,880
1,000,000 University of Massachusetts Bldg. Authority Ref. Revenue Series 1991-A, 7.15% due 5/1/03 A1/A+ 1,137,010
1,250,000 Worcester Municipal Purpose Loan of 1991 General Obligation,
6.80% due 5/15/01 (Insured: MBIA) Aaa/AAA 1,357,875
Michigan (2.06%)
1,215,000 Dearborn Sewage Disposal System, 6.90% due 4/1/01 (Insured: MBIA) Aaa/AAA 1,320,899
1,300,000 Detroit General Obligation Series 1990-A, 8.50% due 4/1/00 Ba1/BBB 1,415,479
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 3,193,320
1,150,000 Michigan State Hospital Finance Authority Revenue Series 1991-A, 8.30% due 9/1/02 Ba/BBB- 1,234,928
6,070,000 Michigan State Housing Development Authority Rental Housing Rev. Series 1992-A,
5.40% due 4/1/98 (Detroit Edison Project) NR/A+ 6,094,280
1,460,000 Wayne County Wastewater Control System Limited Tax General Obligation
Refunding, 7.875% due 5/1/02 Baa/BBB- 1,646,092
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* 2,304,980
1,940,000 West Ottawa Public Schools General Obligation Unlimited Tax, 6.30% due 5/1/03
(Insured: FGIC) Aaa/AAA 2,125,639
Minnesota (1.84%)
4,775,000 Burnsville MFHR Series 1991, 7.20% due 5/1/11, put 5/1/02
(The Atrium Project; Insured: Trygg-Hansa) NR/A+ 4,928,182
825,000 Coon Rapids Industrial Development Ref. Rev., 6.75% due 12/1/01 (LOC: Norwest Bank) Aa3/AA 843,736
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 1,545,480
3,245,000 Minneapolis-Saint Paul Housing & Redevelopment Authority Series 1993,
5.00% due 12/1/04, put 12/1/98 (Corporate Partner Project; LOC: Continental Insurance) NR/A+ 3,266,839
2,500,000 Minneapolis-Saint Paul Housing & Redevelopment Authority Single Family Mortgage Revenue
Series 96-B, 5.125% due 6/1/32, put 6/1/00 (GNMA/FNMA) Aaa/NR 2,505,000
490,000 Minneapolis MFHR Refunding Series 1991, 6.75% due 10/1/01
(Churchill Apartments Project; FHA Insurance Mortgage) NR/AAA 518,773
1,250,000 Minneapolis School District Certificate of Participation, 5.30% due 2/1/00 Baa1/A 1,280,188
1,345,000 Minneapolis-Saint Paul Single Family Housing Revenue Series A, 8.25% due 11/1/07 NR/AAA 1,386,359
500,000 Minneapolis Community Development Agency Supported Dev. Rev. Ltd Tax - Common Bond
Series G-3, 7.00% due 12/1/03 NR/A- 558,130
480,000 Saint Cloud Industrial Development Revenue Refunding Series 1992, 6.25%
due 4/1/98 (Alton Realty Co. & Pan-O-Gold Baking Co. Project;
LOC: Norwest Bank of Minnesota) NR/AA- 481,848
Mississippi (0.44%)
1,000,000 Medical Center Educational Building Corp. Rev., 7.00% due 12/1/00
(University of Mississippi Medical Center Project) NR/A- 1,076,210
2,000,000 Mississippi Higher Education Assistance Corporation Student Loan Revenue
Series 1992-B, 6.00% due 1/1/00 NR/A 2,055,240
900,000 Mississippi Hospital Equipment & Facilities Authority Revenue, 8.60%
due 1/1/01 (Rush Medical Foundation Project) Baa/NR 959,751
Missouri (1.66%)
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 1,714,776
4,000,000 Missouri Higher Education Loan Authority Student Loan Revenue Refunding,
5.50% due 2/15/00 Aa/NR 4,092,880
3,070,000 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 3,141,285
680,000 Missouri State Housing Development Authority Revenue, 6.30% due 7/15/99 Aa/AA+ 691,757
1,055,000 Missouri Health & Education Facilities Authority Revenue, 0% due 1/1/02
(Missouri Baptist Medical Center Project) (Escrowed to Maturity) Aaa*/A- 885,050
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 281,081
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 357,689
540,000 St. Louis County Industrial Development Authority Housing Revenue
Series 1992-A, 6.00% due 6/1/98 A/NR 544,304
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 3,913,036
Montana (0.12%)
690,000 Billings Tax Increment Urban Renewal Series 1987-A,
8.65% due 3/1/99, refunded 3/1/98 Aaa/NR 695,610
425,000 Montana Higher Education Student Loan Revenue Series 1992-A, 6.70% due 12/1/01 A/NR 456,004
Nebraska (0.90%)
2,930,000 Nebraska IFA Tax Exempt Multifamily Housing Rev. Refunding
1995-A, 5.50% due 12/1/25, put 12/1/05 (Willow Park Apartments Project;
FNMA Collateral) NR/AAA 3,059,711
1,175,000 Nebraska IFA MFHR Series 1985-B, 4.875% due 1/1/08 NR/AAA 1,175,000
2,500,000 Nebraska Public Power District Series 1993, 5.10% due 1/1/00 A1/A+ 2,552,850
1,500,000 Nebraska IFA Hospital Equipment Revenue, 6.85% due 3/1/02
(Insured: MBIA) Aaa/AAA 1,649,355
Nevada (0.43%)
780,000 Las Vegas Valley Water District, 6.60% due 8/1/98 (Insured: AMBAC) Aaa/AAA 792,714
1,085,000 Washoe County Airport Authority Revenue Refunding, 5.30% due 7/1/00 (Insured: MBIA) Aaa/AAA 1,115,380
1,325,000 Washoe County Airport Authority Revenue Refunding, 5.45% due 7/1/01 (Insured: MBIA) Aaa/AAA 1,379,709
750,000 Washoe County Airport Authority Revenue Refunding, 5.60% due 7/1/02 (Insured: MBIA) Aaa/AAA 790,448
New Hampshire (0.90%)
5,000,000 New Hampshire Health and Education Authority Revenue Bonds Series B,
5.05% due 3/1/23, put 3/1/03 (Riverwoods at Exeter Project; LOC: Banque Paribas) A2/NR 5,097,500
500,000 New Hampshire Capital Appreciation General Obligation, 0% due 7/1/04 Aa2/AA+ 375,840
845,000 New Hampshire Industrial Development Authority Revenue Series 1995,
7.70% due 7/1/00 (Electra/PJ-Allied Project) A2/NR 847,003
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 2,115,524
New Jersey (0.79%)
595,000 Hudson County Certificates of Participation, 6.20% due 6/1/03
(Corrections Facility Project: Insured: MBIA) Aaa/AAA 647,479
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 2,405,328
1,000,000 New Jersey Health Care Financing Authority Revenue, 5.75% due 7/1/04
(Kennedy Health Systems) Aaa/AAA 1,130,480
1,000,000 New Jersey Health Care Financing Authority Revenue, 5.75% due 7/1/05
(Kennedy Health Systems) Aaa/AAA 1,079,480
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 1,087,210
1,000,000 New Jersey Turnpike Authority Revenue Series A, 5.70% due 1/1/01 Baa1/BBB+ 1,043,010
New Mexico (1.27%)
7,950,000 Farmington Pollution Control Revenue, 5.00% due 9/1/24, (daily demand note),
put 1/2/98 (LOC: Barclys Bank) P1/A1 7,950,000
215,000 Las Cruces Gross Receipts Tax Revenue, 5.65% due 12/1/00 A/A 224,125
261,000 Santa Fe County Office and Training Facilities Revenue, 9.00% due 7/1/98 NR/AAA 267,843
273,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/99 (ETM) NR/AAA 287,073
285,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 7/1/99 (ETM) NR/AAA 305,979
298,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/00 (ETM) NR/AAA 326,548
326,000 Santa Fe County Office and Training Facilities Series 1990, 9.00% due 1/1/01 (ETM) NR/AAA 371,158
745,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.75% due 6/1/04 NR/A 791,682
510,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.90% due 6/1/05 NR/A 548,587
775,000 Santa Fe Solid Waste Management Agency Facility Revenue, 6.00% due 6/1/06 NR/A 840,410
New York (5.03%)
1,785,000 Islip Resource Recovery Agency Series 85-D, 5.95% due 7/1/03 (Insured: AMBAC) Aaa/AAA 1,935,172
500,000 Metropolitan Transit Authority Service Contract Commuter Fac Rev, 7.00% due 7/1/02 Baa1/BBB 548,795
1,000,000 Metropolitan Transit Authority Revenue Bonds, 5.10% due 7/1/98 Baa1/BBB+ 1,006,580
750,000 New York City General Obligation Series D, 5.70% due 8/1/02 Baa1/BBB+ 788,768
500,000 New York City General Obligation Series A, 7.00% due 8/1/03 Baa1/BBB+ 560,040
1,000,000 New York City General Obligation Series E, 7.00% due 8/1/04 Aaa/AAA 1,148,520
1,150,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 1,223,991
90,000 New York City General Obligation Series E, 7.20% due 2/1/00 Baa1/BBB+ 95,387
800,000 New York City General Obligation Series D, 6.30% due 2/1/01 (Escrowed to Maturity) Aaa/BBB+ 850,528
1,960,000 New York City General Obligation Series D, 6.30% due 2/1/01 Baa1/BBB+ 2,072,563
785,000 New York City General Obligation Series E, 6.30% due 8/1/01 Baa1/A- 840,900
1,910,000 New York City General Obligation Series E, 6.30% due 8/1/01 Baa1/A- 2,032,909
250,000 New York City Health and Hospital Corp. Rev. Series A, 6.00% due 2/15/05 Baa3/BBB- 267,268
1,000,000 New York City Municipal Water Finance Authority Water & Sewer System Revenue,
7.15% due 6/15/98 A/A- 1,015,140
3,000,000 New York Dorm Authority Revenue State University Educational Facilities, 5.25%
due 7/1/02 (Insured: AMBAC) Aaa/AAA 3,136,710
1,000,000 New York Dorm Authority Revenue State University Educational Facilities Series A,
7.00% due 5/15/04 Baa1/BBB+ 1,126,580
7,240,000 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 7,485,798
1,525,000 New York State Dorm Authority, 6.00% due 2/1/04,
(Millard Fillmore Hospital Project; Insured: AMBAC) Aaa/AAA 1,653,664
1,040,000 New York State Dorm Authority, 6.00% due 7/1/07
(Champlain Valley Physicians) NR/AAA 1,162,075
1,075,000 New York State Health Facilities Revenue Refunding Series 1990-A,
7.90% due 11/1/99 Baa/BBB+ 1,125,611
1,500,000 New York State Local Government Assistance Corporation Revenue
Series D, 6.50% due 4/1/02 A/A 1,631,055
1,500,000 New York State Medical Care Facilities Finance Agency 1991 Series A, 7.25% due 2/15/01 Baa1/BBB+ 1,630,635
1,490,000 New York State Medical Care Facilities Finance Agency Series 1995-C, 5.40% due 8/15/05 Aa2/AA 1,570,728
985,000 New York State Medical Care Facilities Finance Agency, 6.00% due 11/15/02
(Sec Mtg Program - Adult Day Care - A Project; LOC: SONYMA) Aa2/NR 1,060,087
500,000 New York State Municipal Bank Agency Special Program Revenue, 6.875% due 3/15/06 NR/BBB+ 543,715
2,500,000 New York State Urban Development Corporation, 7.60% due 4/1/03, pre-refunded 4/1/01 AAA/BBB 2,812,200
3,425,000 New York State Urban Development Corporation Series 7, 6.00% due 1/1/06 Baa1/BBB 3,709,549
2,500,000 Syracuse Industrial Development Authority Pilot Revenue Refunding Series 1995,
5.125% due 10/15/02 (LOC: ABN AMRO Bank) NR/AA 2,569,725
1,000,000 Triborough Bridge and Tunnel Authority, 6.50% due 1/1/04 (Insured: MBIA) Aaa/AAA 1,084,810
570,000 Westchester County I.D.A. Civic Facility Revenue, 6.25% due 4/1/05 (Julia Dykman Project NR/BBB 603,841
North Carolina (0.59%)
2,145,000 Carteret County Certificate of Participation Series 1992, 6.50% due 2/1/00
(Elementary School Project) Baa1/BBB+ 2,205,232
825,000 Gastonia Housing Corp First Lien Rev Series A, 5.75% due 7/1/04
(Golfview Village Square Apartment Project) NR/A- 856,202
485,000 North Carolina Housing Finance Authority Single Family Housing Revenue, 6.80%
due 7/1/08 (Insured: FHA/VA) Aa1/AA+ 488,788
1,865,000 North Carolina Municipal Power Agency No. 1 Catawba Electrical Revenue, 6.00% due 1/1/05
(Insured: MBIA) Aaa/AAA 2,025,875
North Dakota (0.36%)
910,000 Grand Forks Health Care System Revenue Bonds Series 1997, 6.25% due 8/15/05
(Altru Health System Project; Insured: MBIA) Aaa/AAA 1,013,604
1,000,000 North Dakota Building Authority Refunding Revenue Series 1993-A, 5.15% due 6/1/00
(Insured: AMBAC) Aaa/AAA 1,025,580
1,250,000 North Dakota Student Loan Revenue, 5.45% due 7/1/02 (Insured: AMBAC) Aaa/AAA 1,306,175
Ohio (3.05%)
1,000,000 Barberton Hospital Facilities Series 1992, 6.65% due 1/1/02 A/NR 1,089,740
2,370,000 Belmont County IDRB Series 1991, 6.50% due 1/1/00 (May Department Stores Co. Project) NR/A 2,477,598
4,000,000 Butler County Hospital Revenue Bonds, 5.15% due 11/1/17
(Middletown Regional Hospital Project; LOC: Star Bank) A1/NR 4,008,720
1,000,000 Butler County Transportation Improvement Revenue Bonds, 5.00% due 4/1/06 Aaa/AAA 1,037,910
1,500,000 Cincinnati School District Revenue Anticipation Notes, 5.75% due 6/15/98 NR/A- 1,513,275
1,000,000 Cincinnati School District Revenue Anticipation Notes, 6.15% due 6/15/02 NR/A- 1,075,400
1,250,000 Cincinnati School District Revenue Anticipation Notes, 6.05% due 6/15/00 NR/A- 1,307,075
2,000,000 Cleveland Certificate of Participation, 7.10% due 7/1/02
(Motor Vehicle & Community Equipment Project) Baa/BBB 2,100,080
1,820,000 Cuyahoga County Housing Revenue Series 1993, 7.00% due 4/1/00
(North Coast Community Homes Project) NR/NR 1,865,791
1,000,000 Erie County Hospital Improvement Refunding Revenue Series 1992, 6.25%
due 1/1/01 (Firelands Community Hospital Project) A/A- 1,054,340
2,000,000 Franklin County General Obligation, 6.375% due 12/1/17, pre-refunded 12/1/01 @102 Aaa/AAA 2,190,260
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 1,164,537
3,095,000 Ohio Water Development Authority Safe Water Refunding Series 1992,
0% due 12/1/00 (Insured: MBIA) Aaa/AAA 2,751,053
1,060,000 Switzerland Local School District of Monroe County Revenue Anticipation Notes
Series 1995, 6.25% due 6/15/00 NR/NR 1,094,948
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 2,985,536
910,000 Washington County Hospital Facilities Revenue, 6.875% due 9/1/02
(Marietta Area Health Project) Baa1/NR 969,987
Oklahoma (0.62%)
1,190,000 Broken Arrow Utility System & Sales Tax Revenue Refunding Series 1992-A, 6.00%
due 5/1/01 (Insured: FGIC) Aaa/AAA 1,263,007
190,000 Comanche County SFMR Refunding 1990 Series, 7.60% due 12/1/98 A1/NR 194,212
200,000 Comanche County SFMR Refunding 1990 Series, 7.65% due 6/1/99 A1/NR 206,160
1,060,000 Oklahoma City Municipal Improvement Authority Water & Sewer Revenue Series
Refunding A, 0% due 7/1/00 (Insured: AMBAC) Aaa/AAA 958,198
1,090,000 Pushmatahah County Town of Antlers Hospital Authority Revenue Refunding
Series 1991, 8.75% due 6/1/03 NR/NR 1,216,505
1,155,000 Tulsa Industrial Development Hospital Revenue, 5.60% due 2/15/03
(St. John's Medical Center Project) Aa/AA 1,217,335
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 789,750
Oregon (0.71%)
2,500,000 Clackamas County Hospital Facilitie Authority Revenue Bonds, 6.10% due 10/1/01 A1/AA- 2,667,500
1,325,000 Emerald Peoples Utility District Revenue, 7.20% due 11/1/03 (Insured: FGIC) Aaa/AAA 1,529,103
300,000 Oregon State General Obligation, 9.00% due 10/1/00 Aa2/AA 339,081
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 2,012,400
110,000 Springfield General Obligation, 6.70% due 10/1/00 A/A 110,767
Pennsylvania (5.37%)
985,000 Allentown Area Hospital Authority Revenue Series 1991, 7.75% due 7/1/98
(Sacred Heart Hospital Project) NR/BBB 1,000,937
1,000,000 Chester County Utility, 7.00% pre-refunded 8/1/01 Aa/AAA* 1,094,290
550,000 Clairton School District General Obligation, 0% due 11/1/99 NR/A 509,828
500,000 Clairton School District General Obligation, 0% due 11/1/02 NR/A 404,570
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 3,126,157
6,310,000 Deleware County Industrial Development Authority Revenue Series A, 6.10% due 1/1/04 Baa1/A 6,780,852
1,140,000 Deleware County Industrial Development Authority Revenue Series A, 6.10% due 1/1/06 Baa1/A 1,239,077
2,030,000 Erie School District General Obligation, 0% due 6/1/00, (Escrowed to Maturity) Aaa*/A 1,836,440
1,000,000 Erie School District General Obligation, 0% due 12/1/00, (Escrowed to Maturity) Aaa*/A 886,080
3,365,000 Harrisburg Authority Commonwealth Lease Revenue Series 1991,
6.25% due 6/1/00 (Insured: FSA) Aaa/AAA 3,531,063
1,300,000 Harrisburg Authority Lease Revenue, 6.50% due 6/1/04,
crossover refunded 6/1/01 (Insured: FSA) Aaa/AAA 1,410,227
1,455,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/00 NR/A 1,295,052
1,680,000 McKeesport Area School District General Obligation Refunding Revenue Series 1991,
0% due 10/1/02 NR/A 1,364,328
450,000 New Castle Area Hospital Authority Rev. Series A, 6.20% due 11/15/02
(St. Francis Hospital Project) A3/AA- 483,719
1,000,000 Pennsylvania Infrastructure Authority Revenue Pennvest Subseries B, 6.25% due 9/1/02 NR/AA+ 1,085,550
2,000,000 Pennsylvania State Refunding & Projects General Obligation Series A, 6.50% due 1/1/00 A1/AA- 2,097,160
2,000,000 Pennsylvania State Certificates of Participation, 5.10% due 7/1/04 Aaa/AAA 2,064,140
715,000 Pennsylvania State Higher Education Facilities Authority Revenue, 6.15% due 4/1/04 Baa/NR 741,140
1,770,000 Philadelphia Gas Works Revenue 14th Series, 5.60% due 7/1/99 Baa1/BBB 1,808,250
1,000,000 Philadelphia Gas Works Revenue, 5.375% due 8/1/07 Aaa/AAA 1,062,420
2,920,000 Philadelphia Parking Authority Airport Parking Revenue Series 1997, 5.50% due 9/1/04 Aaa/AAA 3,117,042
2,600,000 Philadelphia Water & Wastewater Revenue Series 1993, 4.875% due 6/15/01
(Insured: FSA) Aaa/AAA 2,666,950
2,245,000 Philadelphia Hospital & Higher Education Facilities Authority Hospital Revenue
Series 1991, 7.00% due 7/1/01 (Graduate Health System Project) B2/BB 2,358,395
3,000,000 Southeastern Pennsylvania Transportation Authority Series 1994, 6.00% due 6/1/99
(LOC: Canadian Imperial Bank of Commerce) Aa3/AA- 3,084,900
500,000 Southeastern Pennsylvania Transportation Authority, 6.00% due 6/1/01
(LOC: Canadian Imperial Bank of Commerce) Aa3/AA- 530,520
2,335,000 Southern Chester County Health & Higher Education Series 1997-A, 6.10% due 6/1/03 NR/NR 2,361,619
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 2,546,512
Puerto Rico (0.28%)
250,000 Puerto Rico Public Improvement General Obligation, 6.60% due 7/1/04 Baa/A- 278,570
200,000 Puerto Rico Electric Power Revenue Refunding Series O, 6.80% due 7/1/00 Baa1/BBB+ 210,632
1,000,000 Puerto Rico Electric Power Revenue Refunding Series 1992-Q, 5.70% due 7/1/00 Baa1/A- 1,039,100
1,000,000 Puerto Rico Municipal Finance Agency Series A, 5.70% due 7/1/03 Baa1/A- 1,067,930
Rhode Island (0.59%)
2,190,000 Rhode Island Depositor's Economic Protection Corp. Series 1992-A, 6.10% due 8/1/02
(Insured: FSA) Aaa/AAA 2,364,587
530,000 Rhode Island Health & Educational Building Corporation Health Facilities
Revenue, 8.00% due 7/1/00 (Steere House Issue Project) NR/NR 578,378
964,000 Rhode Island Industrial Facilities Corporation Series 1991, 5.875% due 6/1/02
(Paramount Cards, Inc. Project; LOC: Bank of Scotland) A1/NR 1,006,358
1,500,000 Rhode Island Student Loan Authority Student Loan Rev. Ref. Series A, 6.55% due 12/1/00 A/NR 1,579,335
South Carolina (0.35%)
300,000 Edgefield County School District General Obligation, 8.50% due 2/1/02 (Insured: FSA) Aaa/AAA 348,600
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 538,795
860,000 Piedmont Municipal Power Agency Electric Revenue, 6.25% due 1/1/04 (Insured: FGIC) Aaa/AAA 933,883
500,000 South Carolina State Housing Authority Multifamily Revenue, 7.375% due 12/1/07 NR/NR 470,000
915,000 York County School District No. 4, 7.00% due 3/1/03 (Insured: FGIC) Aaa/AAA 1,032,815
South Dakota (0.31%)
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 1,459,360
1,250,000 South Dakota Lease Revenue Series 93-B, 8.00% due 9/1/03 (Insured: FSA) Aaa/AAA 1,478,225
Tennessee (1.17%)
5,000,000 Chattanooga-Hamilton County Hospital Revenue, 9.875% due 5/25/21, refunded
5/1/01 @ 102 (Erlanger Medical Center Project; Insured: FSA) Aaa/AAA 6,000,000
1,565,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 5/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,643,516
1,130,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 11/1/02
(Guaranty: Louis Dreyfus Natural Gas) NR/BBB- 1,186,692
1,015,000 Copperhill Industrial Development Board, 7.80% due 12/1/00
(City Services Company Project) Baa3/BBB 1,025,668
1,000,000 Southeast Tax Exempt Mortgage Bond Trust Series 1990, 7.25% due 4/1/17, put 4/1/03 NR/AAA 1,127,720
Texas (7.00%)
2,500,000 Austin Utility System Revenue Bonds, 5.50% due 11/15/02 Aaa,AAA 2,609,650
15,000 Austin Water Sewer and Electric Refunding Revenue,
14.00% due 11/15/01, pre-refunded 5/15/99 @ 100 A/NR 16,252
20,000 Austin Water Sewer and Electric Refunding Revenue,
14.00% due 11/15/01, pre-refunded 5/15/99 @ 100 A/NR 24,230
965,000 Austin Water Sewer and Electric Refunding Revenue, 14.00% due 11/15/01 A/NR 1,166,318
1,285,000 Bexar County Health Facilities Development Corporate Hospital Revenue
Series 1991, 7.40% due 5/1/00 Baa1/BBB 1,335,359
1,065,000 Cypress-Fairbanks Independent School District General Obligation,
0% due 2/1/02 (Insured: FGIC) Aaa/AAA 894,089
1,685,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 1,699,171
315,000 Dallas Waterworks & Sewer System Revenue, 7.10% due 4/1/99 Aa/AA 317,514
1,000,000 Denton County Texas General Obligation, 7.75% due 7/15/02 (Insured: MBIA) Aaa/AAA 1,147,300
2,015,000 Ector County Hospital Revenue, 7.125% due 4/15/02 Baa1/BBB 2,196,491
2,260,000 Harris County Health Facilities Development Corporation Series 1985-B, 7.375% due 12/1/25,
put 12/1/98 (Greater Houston Pooled Health Care Project; Guaranteed: Prudential) Aa/NR 2,289,244
4,000,000 Harris County Flood Control District L.T.G.O. Series 1991-A, 0% due 10/1/01 Aa/AA+ 3,418,920
955,000 Harris County Health Facilities Dev. Corp. Hospital Revenue, 6.70% due 6/1/00
(Memorial Hospital Systems Project) A/A- 1,012,596
1,000,000 Harris County Health Facilities Dev. Corp. Hospital Revenue, 6.90% due 6/1/02
(Memorial Hospital Systems Project) A2/A- 1,107,040
500,000 Harris County Health Facilities School Health Care Systems Rev., 6.80% due 7/1/04
(Sisters of Charity Project) Aa3/AA 551,070
1,025,000 Houston Housing Finance Corp. SFMRB Series A, 5.35% due 6/1/02 (Insured: FSA) Aaa/AAA 1,053,680
1,000,000 Houston Water Conveyance System Contract Certificates of Participation Series F,
7.20% due 12/15/02 (Insured: AMBAC) Aaa/AAA 1,134,180
2,850,000 Humble Independent School District of Harris County Series 1992,
0% due 2/15/00 (PSF Guaranty) Aaa/AAA 2,610,458
1,295,000 Irving Flood Control District Section 3 Refunding Capital Appreciation, 0% due 9/1/01 Baa/NR 1,100,828
2,000,000 Irving Independent School District Capital Appreciation, 0% due 2/15/02 (PSF) Aaa/AAA 1,676,260
500,000 Irving Independent School District Capital Appreciation, 0% due 2/15/04 (PSF) Aaa/AAA 381,215
830,000 Jefferson County Health Facilities Development Corporation Hospital Revenue
Series 1989, 8.125% due 10/1/99 (Baptist Health Care System Project) Baa/BBB 861,142
2,630,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/99
(PSF) Aaa/AAA 2,513,465
2,300,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/98
(PSF) Aaa/AAA 2,289,282
2,230,000 Lower Colorado River Authority Jr. Lien Refunding Revenue Series 1992, 0%
due 1/1/01 (Insured: AMBAC) Aaa/AAA 1,966,838
305,000 North Texas Health Facilities Development Corporation Revenue Series 1988,
8.25% due 9/1/98 (Wichita Falls United Diagnostic Center Project) A*/A* 313,866
1,000,000 North Texas Higher Education Student Loan Revenue, 6.50% due 4/1/99 (Insured: AMBAC) Aaa/AAA 1,029,740
125,000 Northgate Crossing Utility District Road System & Drainage System Unlimited
Tax Sinking Fund Series 1986, 9.25% due 12/1/98 NR/NR 126,516
1,040,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/06 pre-refunded 8/1/98 Aaa/AAA 1,063,390
1,115,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/07 pre-refunded 8/1/98 Aaa/AAA 1,140,076
1,295,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/09 pre-refunded 8/1/98 Aaa/AAA 1,324,125
1,395,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/10 pre-refunded 8/1/98 Aaa/AAA 1,426,374
1,500,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/11 pre-refunded 8/1/98 Aaa/AAA 1,533,735
1,615,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/12 pre-refunded 8/1/98 Aaa/AAA 1,651,321
2,135,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/13 pre-refunded 8/1/98 Aaa/AAA 2,183,016
4,600,000 Plano Capital Appreciation Refunding General Obligation, 0% due 3/1/01 A1/AA- 4,028,956
1,355,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.00% due 8/1/99 Aa/AA 1,369,146
1,415,000 San Antonio Bexar County General Obligation Improvement Forward Refunding
Series 1998, 5.50% due 8/1/01 Aa/AA 1,463,294
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- 885,761
5,880,000 Texas Public Finance Authority Series B, 5.25% due 2/1/98 (Insured: AMBAC) Aaa/AAA 5,887,350
1,385,000 Texas Water Resource Finance Authority Revenue, 7.00% due 8/15/99 (Insured: AMBAC) Aaa/AAA 1,448,668
960,000 Texas Water Resource Finance Authority Revenue, 7.40% due 8/15/00 A/A 1,000,176
855,000 Texas Water Resources Authority Revenue, 7.50% due 8/15/01 A/A- 890,688
500,000 Trinity Interim Water Revenue, 5.75% due 10/15/00 (Livingston Project) A1/A+ 500,670
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 (2.87%)
1,000,000 Davis County Utah Solid waste Management and Recovery Rev., 5.90% due 6/15/03 Baa2/BBB+ 1,036,110
6,685,000 Intermountain Power Agency Power Supply Rev, 5.50% due 7/1/00 (Insured: MBIA) Aaa/AAA 6,916,502
5,055,000 Intermountain Power Agency Power Supply Rev Series B, 5.50% due 7/1/01 (Insured: MBIA) Aaa/AAA 5,288,592
8,000,000 Intermountain Power Agency Power Supply Revenue, 0% pre-refunded 7/1/00 @ 101 Aaa/AAA 7,229,920
2,180,000 Ogden Neighborhood Development Agency Tax Increment Revenue Series A, 0% due 12/30/05
(LOC: Sumitomo Bank) A1/NR 1,431,192
2,220,000 Utah Student Loan Revenue Series 1992-G, 5.20% due 11/1/98 (Insured: AMBAC) Aaa/AAA 2,243,621
600,000 Utah Municipal Finance Co-op Local Government Revenue, 7.10% due 6/1/00 NR/AA 626,070
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 2,160,420
Virginia (1.14%)
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 3,251,670
1,755,000 Henrico County IDA Public Facility Lease Revenue, 6.50% due 8/1/00
(Henrico County Jail Project) Aa/AA 1,860,704
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 3,306,780
1,960,000 Virginia Housing Development Authority Series C-8, 5.70% due 7/1/03 Aa1/AA+ 2,048,239
255,000 Virginia Housing Development Authority Series D-4, 5.00% due 7/1/00 Aa1/AA+ 260,523
Washington (3.49%)
1,010,000 Chelan County PUD #1 Cons. System Revenue 1992,
5.55% due 7/1/99 A1/A 1,032,422
1,125,000 Chelan County PUD #1 Cons. System Revenue 1992,
5.75% due 7/1/00 A1/A 1,167,604
1,370,000 Chelan County PUD #1 Consolidated System Revenue 1992-E,
0% due 7/1/98 A1/A 1,344,258
1,195,000 Grant County PUD #2 Priest Rapids Hydroelectric, 6.00% due 1/1/03
(Insured: AMBAC) Aaa/AAA 1,288,318
950,000 Grant County PUD #2 Priest Rapids Hydroelectric, 6.00% due 1/1/06
(Insured: AMBAC) Aaa/AAA 1,050,900
500,000 Jefferson County Public Hospital District #2, 7.50% due 12/1/03 (Insured: FGIC) Aaa/AAA 584,200
725,000 Spokane County School District #363 Unlimited Tax G.O. Ref. Series 1992,
5.40% due 12/1/00 A/NR 751,441
1,000,000 Sumner Washington General Obligation Bonds , 4.70% due 8/1/98 NR/NR 1,000,210
550,000 Tacoma Washington Conservation System Project Revenue, 6.20% due 1/1/06
(Tacoma Public Utilities) Aa1/AA- 610,209
550,000 Washington State Certificates of Participation State Equipment Series A, 6.40% due 4/1/0 A1/A+ 575,317
400,000 Washington State Certificates of Participation State Equipment Series A, 6.50% due 10/1/ A2/A 413,672
500,000 Washington Health Care Facilities Authority Rev., 6.20% due 2/15/01
(Sacred Heart Medical Center, Spokane Project) NR/AA- 525,810
2,510,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-B, 7.20% due 6/1/02 (Kadlec Medical Center Project) Baa1/NR 2,594,788
1,645,000 Washington Health Care Facilities Authority Pooled Equipment
Series 1992-A, 7.35% due 6/1/02 (Dominican Health Project) Baa/NR 1,691,274
1,040,000 Washington Public Power Supply System Series G Project #1 Rev., 7.15% due 7/1/01 Aa/AA- 1,116,450
2,000,000 Washington Public Power Supply System Project #1 Ref. Rev., 6.50% due 7/1/02 Aa/AA- 2,176,040
850,000 Washington Public Power Supply System Project #1 Ref. Rev., 6.50% due 7/1/03 Aa/AA- 921,341
3,500,000 Washington Public Power Supply System Project #1 Ref. Rev., 5.30% due 7/1/02 Aa/AA- 3,641,820
500,000 Washington Public Power Supply System Series C Project #2 Rev., 7.20% due 7/1/99 Aa/AA- 522,820
250,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/02 Aa/AA- 276,545
2,000,000 Washington Public Power Supply System Project #2 Ref. Rev., 7.50% due 7/1/03 Aa/AA- 2,224,340
1,750,000 Washington Public Power Supply System Project Series 1991-A, 6.50% due 7/1/03 Aa/AA- 1,895,093
1,700,000 Washington Public Power Supply System Series B Refunding, 7.15% due 7/1/01 Aa/AA- 1,824,967
1,000,000 Washington Public Power Supply System Series B, 7.25% due 7/1/00 Aa/AA- 1,072,410
1,140,000 Washington Public Power Supply System Project #3 Ref. Rev, 0% due 7/1/08 Aa1/AA- 687,842
1,655,000 Washington Public Power Supply System Series 96-A, 6.00% due 7/1/06 (Insured: MBIA) Aaa/AAA 1,827,517
West Virginia (1.13%)
743,542 Marion County SFMR Series 1992, 7.75% due 7/10/11 Baa/NR 802,171
2,000,000 West Virginia Statewide Commission Lottery Revenue, 5.50% due 7/1/05
(Insured: MBIA) Aaa/AAA 2,141,880
5,000,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 5.45%
(inverse floater) due 5/15/01 (Insured: FGIC) Aaa/AAA 5,094,550
2,500,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 5.55%
(inverse floater) due 5/15/02 (Insured: FGIC) Aaa/AAA 2,561,875
Wisconsin (1.11%)
705,000 Cady Small Business Pollution Control Revenue Refunding Series 1992, 6.20%
due 4/1/00 (Summit Cheese Project; Guaranteed: SBA) Aaa/AAA 722,167
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 1,567,380
3,000,000 Wisconsin Health & Education Facilities Authority, 5.00% due 8/15/98
(Sorrowful Mother Project) NR/AA- 3,024,000
800,000 Wisconsin Health & Education Facilities Authority Wheaton Franciscan, 5.90% due 8/15/05
(Insured: MBIA) Aaa/AAA 874,136
1,045,000 Wisconsin Health & Education Facilities Authority Series 1993, 5.00% due 2/15/99
(Lacrosse Project; Insured: FSA) Aaa/AAA 1,057,331
3,045,000 Wisconsin Health & Education Facilities Authority, 5.75% due 11/15/01 (Insured: FSA) Aaa/AAA 3,215,246
Wyoming (0.26%)
1,350,505 Evanston Industrial Development Revenue Series 1983, 9.90% due 4/1/04
(Wybanco Project; LOC: Texas Commerce Bank) A2*/A+* 1,401,122
1,000,000 Wyoming Student Loan Corporation Revenue, 6.25% due 12/1/99 NR/AA 1,038,510
TOTAL INVESTMENTS (Cost $904,947,865) $939,468,721
<FN>
*Indicates rating on other debt issued by the same issuer,
rather than on the security held by the Fund. These securities
are deemed by the Adviser to be comparable with those of
issuers having debt ratings in the 4 highest grades by Moody's
or S & P. +Credit ratings are unaudited. See notes to
financial statements.
</FN>
</TABLE>
