Thornburg Limited Term Municipal Fund National Portfolio
Fund facts. . . as of 6/30/98
Thornburg Thornburg Thornburg
Limited Term Limited Term Limited Term
Muni Fund Nat'l Muni Fund Nat'l Muni Fund Nat'l
A Shares C Shares I Shares
SEC Yield 3.57% 3.24% 4.03%
Taxable Equiv. Yields 5.91% 5.36% 6.67%
NAV $13.50 $13.53 $13.51
Max. Offering Price $13.85 $13.53 $13.51
Total returns. . . as of 6/30/98
(Annual Average - After Subtracting Maximum Sales Charge)
One Year 2.46% 4.70% 5.52%
Three Year 4.16% 4.59% N/A
Five Year 4.09% N/A N/A
Ten Year 5.92% N/A N/A
Since Inception 6.82% 4.71% 6.01%
Inception Date (9/28/84) (9/1/94) (7/5/96)
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 investment return and principal value of an investment in
the fund will fluctuate so that, when redeemed, an investor's shares may be
worth more or less than their original cost. Maximum sales charge of the Fund's
Class A Shares is 2.50%. The date quoted represent past performance and may not
be construed as a guarantee of future results.
Dear Shareholder,
I am pleased to present the Annual Report for the National Portfolio of
Thornburg Limited Term Municipal Fund for the year ending June 30, 1998. The net
asset value of the A shares increased 6 cents per share to $13.50 during the
year. If you were with us for the entire period, you received dividends of 60.7
cents per share. If you reinvested your dividends, you received 62 cents per
share. Investors who owned C Shares received dividends of 55.3 and 56.3 cents
per share, respectively. Your Limited Term Municipal Fund portfolio currently
holds over 500 municipal obligations from 49 states and 2 U.S. Territories.
Approximately 89% 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 4.0 years,
and we always keep it below 5 years. Percentages of the portfolio maturing in
the coming years are summarized below: % of portfolio Cumulative % maturing
within maturing by end of
1 years = 10% year 1 = 10%
1 to 2 years = 16% year 2 = 26%
2 to 3 years = 17% year 3 = 43%
3 to 4 years = 16% year 4 = 59%
4 to 5 years = 9% year 5 = 68%
5 to 6 years = 10% year 6 = 78%
6 to 7 years = 7% year 7 = 85%
7 to 8 years = 6% year 8 = 91%
8 to 9 years = 5% year 9 = 96%
9 to 10 years = 4% year 10 = 100%
Over the last year your average portfolio maturity has increased
slightly. 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 five to nine year maturity range of your bond ladder, taking advantage of
the plentiful supply and good selection of new municipal bonds coming to market
this year. 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. This would permit us to increase our dividend yields
if higher yields are available. For the past 4 years Americans have been net
sellers of municipal and government bonds. Investment dollars have flowed
instead to equities, money market investments, and (until recently) 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, although the money flows are not yet significant
from domestic investors. If the Federal Reserve cuts short term interest rates
in the coming months to shape up the U.S. economy and limit dollar appreciation,
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 $1.2 trillion! As the accompanying graph shows, long term interest
rates have fallen considerably in the last year in anticipation of an economic
slowdown and an expected drop in short term interest rates.
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, and government spending is accelerating. There
will always be dislocations here and there, but for the most part Americans are
very, very busy. The strong U.S. economy continues to be good for municipal
America. Taken as a whole, U.S. cities continue 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: if the U.S. economy slows as state and local
government spending accelerates, some entities will not manage the transition
smoothly. If the current strength of the U.S. economy persists, we expect long
maturity interest rates to increase in late 1998 or early 1999. If our economy
slows, short maturity bond rates and money market interest rates will quickly
drop. Over the years, our practices 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 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.
Sincerely,
Brian J. McMahon
Portfolio Manager
*Morningstar proprietary rating reflects historical risk adjusted performances
as of 6/30/98. 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 stars (highest). Morningstar overall 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 and 22.5% receive four
stars. LTMFX 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 6/30/98. At 6/30/98, there
were 1549 bond funds with 3-year ratings, 860 with 5-year ratings, and 349 with
10-year ratings in Morningstar's Municipal Bond category. Ratings are for Class
A shares only. Past performance cannot guarantee future results.
Statement of assets and liabilities
ASSETS
Investments at value (cost $925,947,705) $ 957,010,125
Cash 387,083
Receivable for fund shares sold 3,706,230
Interest receivable 15,456,068
Prepaid expenses and other assets 29,141
Total Assets 976,588,647
LIABILITIES
Payable for investments purchased 35,601,491
Payable for fund shares redeemed 1,504,426
Accounts payable and accrued expenses 570,049
Accounts payable to investment advisor (Note 4) 439,901
Dividends payable 1,192,804
Total Liabilities 39,308,671
NET ASSETS $ 937,279,976
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share ($836,946,565
applicable to 61,974,316 shares of beneficial interest outstandi$ 13.50
Maximum sales charge, 2.50 % of offering
price (2.57% of net asset value per share) 0.35
Maximum Offering Price Per Share $ 13.85
Class C Shares:
Net asset value and offering price per share * ($22,728,675
applicable to 1,680,141 shares of beneficial interest outstandin$ 13.53
Class I Shares:
Net asset value, offering and redemption price per share
($77,604,736 applicable to 5,745,953 shares of beneficial
interest outstanding - Note 5) $ 13.51
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge. See notes to financial statements.
Statement of operations
INVESTMENT INCOME:
Interest income (net of premium amortized of $3,737,624 ) $50,702,117
EXPENSES:
Investment advisory fees (Note 4) 4,213,345
Administration fees (Note 4)
Class A Shares 1,067,223
Class C Shares 25,308
Class I Shares 27,156
Distribution and service fees (Note 4)
Class A Shares 2,134,444
Class C Shares 202,506
Transfer agent fees 550,521
Custodian fees 365,735
Registration and filing fees 100,878
Professional fees 87,230
Accounting fees 101,150
Director fees 29,878
Other Expenses 73,254
Total Expenses 8,978,628
Less:
Expenses reimbursed by investment advisor (Note 4) (45,588)
Distribution fees waived (Note 4) (75,964)
Net Expenses 8,857,076
Net Investment Income 41,845,041
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 6)
Net realized gain on investments sold 342,383
Increase in unrealized appreciation of investments 4,063,563
Net Realized and Unrealized Gain on Investments 4,405,946
Net Increase in Net Assets Resulting from Operations $46,250,987
See notes to financial statements.
Statement of changes in net assets
Year Ended Year Ended
June 30, 1998 June 30, 1997
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income $ 41,845,041 $ 42,541,545
Net realized gain on investments sold 342,383 539,071
Increase in unrealized appreciation of investment 4,063,563 5,502,227
Net Increase in Net Assets Resulting from Operati 46,250,987 48,582,843
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (38,380,219) (40,902,258)
Class C Shares (826,124) (778,574)
Class I Shares (2,638,698) (860,713)
FUND SHARE TRANSACTIONS (Note 5):
Class A Shares (4,905,669) (86,054,790)
Class C Shares 3,140,092 3,430,304
Class I Shares 41,796,989 35,647,049
Net Increase (Decrease) in Net Assets 44,437,358 (40,936,139)
NET ASSETS:
Beginning of year 892,842,618 933,778,757
End of year $ 937,279,976 $ 892,842,618
See notes to financial statements.
Notes to financial statements
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 value. Federal Income Taxes: It is the policy
of the Fund to comply with the provisions of the Internal Revenue Code
applicable to "regulated investment companies" and to distribute all of its
taxable (if any) and tax exempt income to its shareholders. Therefore, no
provision for Federal income tax is required. Dividends paid by the Portfolio
for the year ended June 30, 1998 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 year ended June 30, 1998,
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 year ended June 30, 1998, the Adviser voluntarily reimbursed
certain operating expenses amounting to $45,588. The Fund has an underwriting
agreement with Thornburg Securities Corporation (the "Distributor"), which acts
as the Distributor of Portfolio shares. For the year ended June 30, 1998, the
Distributor earned commissions aggregating $104,037 from the sale of Class A
shares, and collected contingent deferred sales charges aggregating $2,946 from
redemptions of Class C shares of the Portfolio. Pursuant to a Service Plan under
Rule 12b-1 of the Investment Company Act of 1940, the Fund may reimburse to the
Adviser amounts not to exceed .25 of 1% per annum of the average net assets
attributable to each class of shares of the Portfolio for payments made by the
Adviser to securities dealers and other financial institutions to obtain various
shareholder related services. The Adviser may pay out of its own funds
additional expenses for distribution of the Portfolio's shares. The Fund has
also adopted a Distribution Plan pursuant to Rule 12b-1, applicable only to the
Portfolio's Class C shares under which the Fund compensates the Distributor for
services in promoting the sale of Class C shares of the Portfolio at an annual
rate of up to .75% of the average daily net assets attributable to Class C
shares. Total fees incurred by each class of shares of the Portfolio under their
respective service and distribution plans and fees waived by the Distributor for
the year ended June 30, 1998, are set forth in the statement of operations.
Certain officers and directors of the Fund are also officers and/or directors of
the Adviser and Distributor. The compensation of unaffiliated directors is borne
by the Fund.
Note 5 - Shares of Beneficial Interest
At June 30, 1998 there were an unlimited number of shares of beneficial interest
authorized, and capital paid in aggregated $910,638,465. Transactions in shares
of beneficial interest were as follows:
Year Ended June 30, 1998 Year Ended June 30, 1997
Class A Shares Shares Amount Shares Amount
Shares sold 11,281,653 $152,647,428 8,168,627 $109,492,186
Shares issued to shareholders in
reinvestment of distributi 1,828,097 24,714,633 2,018,378 27,066,503
Shares issued in merger 3,834,086 51,645,133 -0- -0-
Shares repurchased (17,296,867)(233,912,863) (16,605,536)(222,613,479)
Net Increase (Decrease) (353,031)($ 4,905,669) (6,418,531) (86,054,790)
Class C Shares
Shares sold 633,883 $ 8,559,695 783,570 $ 10,526,674
Shares issued to shareholders
in reinvestment of distrib 48,651 658,733 48,023 645,052
Shares repurchased (449,094) (6,078,336) (577,361) (7,741,422)
Net Increase 233,440 $ 3,140,092 254,232 $ 3,430,304
Class I Shares
Shares sold 3,756,419 $ 50,860,935 2,915,809 $ 39,082,796
Shares issued to shareholders in
reinvestment of distributi 142,116 1,920,839 38,699 518,582
Shares repurchased (812,038) (10,984,785) (295,052) (3,954,329)
Net Increase 3,086,497 $ 41,796,989 2,659,456 $ 35,647,049
Note 6 - Securities Transactions
For the year ended June 30, 1998, the Portfolio had purchase and sale
transactions (excluding short-term securities) of $279,697,412 and $233,352,946
respectively. The cost of investments for Federal income tax purposes is
$926,383,728. At June 30, 1998, net unrealized appreciation of investments was
$30,626,397, resulting from $30,990,856 gross unrealized appreciation and
$364,459 gross unrealized depreciation. Accumulated net realized losses from
security transactions included in net assets at June 30, 1998 aggregated
$4,420,909. For Federal income tax purposes, the Portfolio has realized capital
loss carryforwards of $3,829,870 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, 2002 - $561,833, June 30, 2003 - $602,103, and June 30, 2004 -
$2,665,934.
<TABLE>
<CAPTION>
Financial highlights
Year Ended June 30,
<S> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994
CLASS A SHARES:
Net asset value, beginning of year $ 13.44 $ 13.35 $ 13.37 $ 13.27 $ 13.59
Income from investment operations:
Net investment income 0.61 0.62 0.63 0.64 0.63
Net realized and unrealized
gain (loss) on investments 0.06 0.09 (0.02) 0.10 (0.32)
Total from investment operations 0.67 0.71 0.61 0.74 0.31
Less dividends from:
Net investment income (0.61) (0.62) (0.63) (0.64) (0.63)
Change in net asset value 0.06 0.09 (0.02) 0.10 (0.32)
Net asset value, end of year $ 13.50 $ 13.44 $ 13.35 $ 13.37 $ 13.27
TOTAL RETURN (a) 5.05% 5.46% 4.60% 5.76% 2.25%
RATIOS/SUPPLEMENTAL DATA Ratios to average net asset:
Net investment income 4.50% 4.65% 4.66% 4.86% 4.60%
Expenses 0.97% 0.96% 0.97% 0.97% 0.95%
Portfolio turnover rate 24.95% 23.39% 20.60% 23.02% 15.63%
Net assets at year end (000) $ 836,947 $ 837,621 $ 917,831 $ 931,987 $1,030,293
<FN>
(a) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Period from Sept. 1, 1994 (a) -
Year Ended June 30, June 30,
<S> <C> <C> <C> <C>
1998 1997 1996 1995
CLASS C SHARES:
Net asset value, beginning of year $ 13.46 $ 13.37 $ 13.40 $ 13.29
Income from investment operations:
Net investment income 0.55 0.57 0.57 0.46
Net realized and unrealized
gain (loss) on investments 0.07 0.09 (0.03) 0.11
Total from investment operations 0.62 0.66 0.54 0.57
Less dividends from:
Net investment income (0.55) (0.57) (0.57) (0.46)
Change in net asset value 0.07 0.09 (0.03) 0.11
Net asset value, end of year $ 13.53 $ 13.46 $ 13.37 $ 13.40
TOTAL RETURN (b) 4.70% 5.02% 4.05% 4.25%
RATIOS/SUPPLEMENTAL DATA Ratios to average net asset:
Net investment income 4.08% 4.24% 4.22% 4.21%(c)
Expenses, after expense reductions 1.38% 1.38% 1.41% 1.60%(c)
Expenses, before expense reductions 1.83% 1.86% 1.63% 1.84%(c)
Portfolio turnover rate 24.95% 23.39% 20.60% 23.02%
Net assets at year end (000) $ 22,729 $ 19,475 $ 15,948 $ 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>
<TABLE>
<CAPTION>
Year Ended June 30, Period from July 5, 1996 (a) - June 30,
<S> <C> <C>
1998 1997
CLASS I SHARES:
Net asset value, beginning of year $ 13.44 $ 13.27
Income from investment operations:
Net investment income 0.66 0.66
Net realized and unrealized
gain (loss) on investments 0.07 0.17
Total from investment operations 0.73 0.83
Less dividends from:
Net investment income (0.66) (0.66)
Change in net asset value 0.07 0.17
Net asset value, end of year $ 13.51 $ 13.44
TOTAL RETURN (b) 5.52% 6.42%
RATIOS/SUPPLEMENTAL DATA Ratios to average net asset:
Net investment income 4.85% 5.01%(c)
Expenses, after expense reductions 0.60% 0.60%(c)
Expenses, before expense reductions 0.66% 0.79%(c)
Portfolio turnover rate 24.95% 23.39%
Net assets at year end (000) 77,605 35,746
<FN>
(a) Commencement of sales of Class I shares.
(b) Total return is not annualized for periods less than one year. (c)
Annualized.
</FN>
</TABLE>
Independent auditor's report
To the Board of Trustees and Shareholders
Thornburg Limited Term Municipal Fund, Inc. - National Portfolio
Santa Fe, New Mexico
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Thornburg Limited Term Municipal Fund, Inc. -
National Portfolio as of June 30, 1998, the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. We conducted out audits in accordance with generally
accepted auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1998, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion. In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material aspects, the
financial position of Thornburg Limited Term Municipal Fund, Inc. - National
Portfolio as of June 30, 1998, the results of its operations, the changes in its
net assets and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles.
New York, New York
July 24, 1998
Investment Manager
Thornburg Management Company, Inc.
119 East Marcy Street
Santa Fe, New Mexico 87501
(800) 847-0200
Principal Underwriter
Thornburg Securities Corporation
119 East Marcy Street
Santa Fe, New Mexico 87501
(800) 847-0200
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information. Performance data
quoted represent past performance and do not guarantee future results.
<TABLE>
<CAPTION>
Schedule of Investments
Thornburg Limited Term Municipal - National Portfolio
June 30, 1998 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
Alabama (2.00%)
<S> <C> <C> <C>
1,675,000 Alabama A&M University Housing & General Fee Revenue Series 1992, 5.90% due 11/1/02 Aaa/AAA $ 1,794,243
(Living & Learning Center Project; Insured: MBIA)
1,000,000 Alabama Water Pollution Control Authority Series 1991, 6.45% due 8/15/02 (Insured: AMBAC) Aaa/AAA 1,067,000
1,550,000 Birmingham Jefferson Civic Center Authority Special Tax Series 1989, 7.20% due 1/1/01 A/A+ 1,605,707
2,500,000 Birmingham Special Care Facility Finance Authority Revenue Series 1990, 7.625% due A1/NR 2,663,500
12/1/10 put 12/1/00 (Methodist Homes for the Aging Project; LOC: SouthTrust Bank)
1,495,000 Houston County Hospital Board Revenue Refunding Series 1984, 7.625% due 4/1/07 Aaa/AAA 1,602,550
pre-refunded 2/15/02 @ 100 (South East Alabama Medical Center Project; Insured: MBIA)
330,000 Houston County Hospital Revenue Bonds, 6.375% due 1/1/02 Aaa/NR 343,626
1,000,000 Huntsville Healthcare Authority Revenue Bonds, 5.50% due 6/1/08 (Insured: MBIA) Aaa/AAA 1,071,000
1,000,000 Mobile Water & Sewer Revenue Bonds, 7.10% due 1/1/99 A/A+ 1,017,330
2,640,000 Montgomery Alabama Special Care Facilities Baptist Med Center Series A, 4.40% due 5/1/02 Aaa/AAA 2,637,096
705,000 Montgomery Alabama Special Care Facilities Baptist Med Center Series A, 4.75% due 5/1/04 Aaa/AAA 711,881
735,000 Montgomery Alabama Special Care Facilities Baptist Med Center Series A, 4.80% due 5/1/05 Aaa/AAA 744,217
770,000 Montgomery Alabama Special Care Facilities Baptist Med Center Series A, 4.85% due 5/1/06 Aaa/AAA 778,747
1,695,000 Montgomery County Revenue Warrants Series 1992, 6.625% due 4/1/02 NR/NR 1,837,380
965,000 Morgan County-Decatur Healthcare Revenue, 5.40% due 3/1/00 (Decatur General Hospital NR/AAA 986,867
Project; Insured: Connie Lee)
Alaska (0.30%)
2,500,000 North Slope Borough G.O. Refunding Series 1992-A, 5.80% due 6/30/02 (Insured: MBIA) Aaa/AAA 2,651,550
Arizona (2.30%)
1,250,000 Arizona Educational Loan Marketing Corporation Revenue Series 1992-A, 6.70% due 3/1/00 Aa2/NR 1,298,425
2,320,000 Arizona Municipal Finance Program Certificate of Participation Series 15, 8.65% due Aaa/AAA 2,863,646
8/1/04 (Flagstaff Project; Insured: BIG)
235,000 Glendale Arizona Water and Sewer Revenue, 9.00% due 7/1/03 Aaa/AAA 285,896
685,000 Maricopa County Certificate of Participation, 5.625% due 6/1/00 Baa1/BBB+ 697,857
500,000 Maricopa County School District # 40 - Glendale General Obligation, 0% due 7/1/00 Baa1/A 459,790
750,000 Maricopa County School District # 40 - Glendale General Obligation, 0% due 1/1/01 Baa1/A 673,747
1,000,000 Maricopa County Unified School District # 48, 7.75% due 7/1/03 Aa2/AA 1,159,910
500,000 Maricopa County Unified School District # 48 G.O., 5.60% due 7/1/03 Baa1/A 530,365
1,390,000 Maricopa County Unified School District # 97, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 1,389,861
2,000,000 Maricopa County/Paradise Valley Unified School District General Obligation Refunding Aaa/AAA 1,763,780
Series 1992, 0% due 7/1/01 (Insured: AMBAC)
3,800,000 Maricopa School District # 41, 0% due 7/1/01 (Insured: FGIC) Aaa/AAA 3,351,182
1,550,000 Maricopa School District # 41 - General Obligation, 0% due 7/1/99 (Insured: FGIC) A1/A 1,489,209
710,000 Mohave County Certificate of Participation, 4.90% due 7/1/98 NR/BBB 710,014
730,000 Mohave County Certificate of Participation, 5.10% due 7/1/99 NR/BBB 735,461
2,000,000 Pima County/Tucson Unified School District # 1 School Improvement Series 1992-D, 5.50% Aaa/AAA 2,103,900
due 7/1/02 (Insured: FGIC)
1,000,000 Show Low Arizona Industrial Development Authority Hospital Revenue Series A, 5.125% due NR/A 1,028,170
12/1/07 (Navapache Regional Medical Center Project; Insured: ACA)
175,000 South Tucson Municipal Property Corporation Series 1990, 8.20% due 6/1/99 NR/BB 179,053
175,000 South Tucson Municipal Property Corporation Series 1990, 8.25% due 6/1/00 NR/BB 182,508
1,200,000 Tucson Water System Revenue Refunding Series 1992, 5.80% due 7/1/99 A1/A+ 1,225,776
Arkansas (0.40%)
1,000,000 Arkansas State General Obligation College Savings, 0% due 6/1/02 Aa3/AA 845,110
2,645,000 Little Rock Arkansas Hotel And Restaurant Gross Receipts Tax Refunding, 7.125% due 8/1/09 A/NR 3,191,616
California (13.00%)
2,145,000 Antelope Valley Hospital Revenue Bond, 5.50% due 1/1/07 (Insured: FSA) Aaa/AAA 2,299,869
1,000,000 California Health Facilities Financing Authority Series A, 7.40% due 7/1/01 (Episcopal NR/A+ 1,020,890
Homes Project; Insured: California Mortgage Insurance)
7,440,000 California Health Facilities Financing Authority Series 1991-D, 6.50% due 7/1/16 Aaa/AAA 8,104,541
pre-refunded 7/1/01 @ 102 (Catholic Health Care Project; Insured: AMBAC)
3,000,000 California Housing Financing Agency Revenue, 5.05% due 8/1/06 Aaa/NR 3,050,460
515,000 California Public Works Board Lease Revenue, 4.75% due 10/1/07 A2/A 525,794
2,000,000 California State General Obligation, 6.50% due 10/1/99 A1/A+ 2,068,040
350,000 California State General Obligation, 9.25% due 3/1/05 A1/A+ 448,091
1,100,000 California Statewide Communities Development Authority Certificate of Participation, Aaa/AAA 1,076,889
4.33% (inverse floater) due 1/1/02 (Motion Picture & Television Fund Project; Insured:
AMBAC)
870,000 California Statewide Community Development Authority Insured Health Facilities Revenue NR/A 899,397
Certificate of Participation Series 1992, 6.40% due 5/1/02 (Eskaton Properties
Incorporated Phase II Project)
1,000,000 Escondido Multi Family Housing Revenue Refunding Bond Series 1997-A, 5.40% due 1/1/27 NR/AAA 1,050,150
put 7/1/07 (Terrace Gardens Project; Collateralized: FNMA)
910,000 Fairfield-Suisun Sewer District Revenue Refunding Series A, 6.50% due 5/1/03 (Insured: Aaa/AAA 984,329
MBIA)
7,125,000 Glendale Hospital Revenue Series 1994, 7.625% due 1/1/05 (Verdugo Hills Project; NR/A 7,947,510
Guarantee: Industrial Indemnity)
1,000,000 Los Angeles Transit Finance Corporation Certificate of Participation Series 1992-B, A1/NR 1,019,810
5.70% due 7/1/99
1,995,000 Los Angeles Transportation Commission Certificate of Participation, 5.90% due 7/1/00 A1/NR 2,069,593
2,500,000 Los Angeles Transportation Commission Certificate of Participation, 6.00% due 7/1/01 A1/NR 2,639,425
1,500,000 Los Angeles Unified School District Certificates of Participation, 6.20% due 6/1/01 (Dr. A2/A 1,586,625
Francisco Bravo Medical Project)
1,400,000 Los Angeles Wastewater Systems Revenue, 6.80% due 8/1/19 pre-refunded 8/1/98 @ 102 Aaa/A+ 1,431,654
500,000 Los Angeles Water and Power, 9.00% due 2/1/02 Aa3/A+ 580,545
500,000 Los Angeles Water and Power, 9.00% due 9/1/04 Aa3/A+ 615,865
5,710,000 Los Angeles Water and Power, 7.10% due 1/15/31 crossover refunded 1/15/01 @ 102 Aa3/A+ 6,242,400
1,500,000 MSR Public Power Agency Series F, 5.45% due 7/1/01 (San Juan Project; Insured: AMBAC) Aaa/AAA 1,562,685
265,000 New Haven Unified School District Certificates of Participation, 7.00% due 12/1/99 NR/BBB+ 273,565
8,300,000 Orange County Local Transportation Authority Sales Tax Revenue, 3.82% (inverse floater) Aaa/AAA 8,276,096
due 2/15/99 (Insured: FGIC)
1,000,000 Orange County Local Transportation Authority Sales Tax Revenue, 5.50% due 2/15/01 Aa/AA+ 1,037,480
13,000,000 Orange County Recovery Certificates of Participation Series A, 5.50% due 7/1/02 Aaa/AAA 13,685,230
(Insured: MBIA)
2,500,000 Orange County Refunding Recovery, 5.10% due 6/1/02 (Insured : MBIA) Aaa/AAA 2,598,775
3,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 3,138,780
7,600,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 8,486,312
5,200,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 5,871,580
5,000,000 Orange County Special Financing Authority Teeter Plan Revenue Series E, 6.15% due A2/A- 5,264,200
11/1/14 put 11/1/01 (LOC: Industrial Bank of Japan)
2,000,000 Orange County Special Financing Authority Teeter Plan Revenue Series E, 6.35% due A2/A- 2,052,120
11/1/14 put 11/1/99 (LOC: Industrial Bank of Japan)
1,875,000 Oxnard Harbor District Revenue Refunding, 6.60% due 8/1/00 (Insured: FSA) Aaa/AAA 1,934,006
1,000,000 Palm Springs Housing Authority Revenue Tahquitz Crt Apts A, 4.90% due 9/1/23 put 9/01/03 NR/AAA 1,023,010
(LOC: FHLB)
500,000 Palomar Pomerado Health Systems Revenue, 0% due 11/1/03 (Insured: MBIA) Aaa/AAA 399,495
500,000 Pomona Public Financing Authority Rev. Series P, 5.625% due 10/1/03 NR/A- 531,540
2,775,000 Redwood City Multi Family Housing Revenue Series 1985-B, 5.20% due 10/1/08 put 10/1/00 NR/A+ 2,801,918
(Redwood Shores Apartments Projects; Insured: Continental Casualty)
750,000 Redwood City Public Financing Authority Local Agency Rev. Series B, 7.10% due 7/15/01 NR/A- 815,723
(ETM)
1,180,000 San Francisco Airport Improvement Corporation Lease Revenue Bond, 7.875% due 7/1/99 Aaa/AAA 1,202,526
(United Airlines Project) (ETM)
1,000,000 San Francisco Port Community Rev., 9.00% due 7/1/03 A/BBB+ 1,207,550
2,100,000 San Joaquin County Certificates of Participation, 5.50% due 9/1/99 (General Hospital A3/A- 2,133,012
Project)
2,000,000 San Marcos PFA Tax Allocation Series 1992-A, 5.60% due 1/1/01 (Insured: FSA) (ETM) Aaa/AAA 2,079,840
500,000 Santa Clara Certificates of Participation, 7.75% due 2/1/02 (Insured: MBIA) Aaa/AAA 560,175
4,180,000 Santa Margarita / Dana Point Authority Revenue Improvement District Series A, 9.50% due Aaa/AAA 5,180,525
8/1/03 (Insured: MBIA)
1,000,000 Sonoma County Certificate of Participation Public Works Improvement Program, 5.875% due NR/A+ 1,033,520
8/1/04 (Integrated Waste Project)
750,000 Southern California Public Power Authority Rev., 6.75% due 7/1/01 (Power Project) A/A 802,575
2,000,000 Southgate Recreation & Park District Certification of Participation, 5.15% due 10/1/21 NR/A+ 2,076,180
pre-refunded 10/1/01 (Wildhawk Golf Club Project; LOC: U.S. Bank of California)
1,000,000 University California Certificates of Participation, 10.00% due 11/1/03 (UCLA Center Aa3/NR 1,270,750
Chiller/Cogen Project)
510,000 University California Revenue Series A, 11.00% due 9/1/99 NR/A+ 551,330
780,000 University California Revenue Series A, 6.30% due 9/1/00 NR/A+ 816,676
Colorado (3.90%)
500,000 Arvada Limited Sales & Use Tax Series 1991, 6.50% due 6/1/01 (ETM) NR/NR 533,150
385,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/98 NR/CC 366,635
390,000 Boulder County Single Family Revenue Series 1982-A, 10.00% due 11/1/99 NR/CC 346,714
2,355,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 5.90% due 3/1/01 Aaa/AAA 2,447,693
(Insured: MBIA)
1,465,000 Boulder Urban Renewal Authority Tax Increment Refunding Series 1992, 6.00% due 3/1/02 Aaa/AAA 1,526,691
(Insured: MBIA)
490,000 Castle Pines Metropolitan District General Obligation Refunding & Improvement, 7.50% due Aaa/AAA 515,588
12/1/99 (Insured: FSA)
370,000 Colorado Health Facilities Authority Revenue Refunding National Benevolent Association Baa1/NR 366,359
B, 4.90% due 2/1/08
2,000,000 Colorado Housing Finance Authority Capital Appreciation Series A, 0% due 11/1/01 Aa1/AA- 1,660,480
2,540,000 Colorado Student Loan Revenue Series 1992-B, 6.55% due 12/1/02 A/NR 2,673,706
3,230,000 Colorado Student Obligation Bond Authority Revenue Series 1994-L, 5.90% due 9/1/00 A/NR 3,344,536
2,435,000 Colorado Student Obligation Bond Authority Student Loan Revenue Series B, 5.90% due A/NR 2,548,982
9/1/02
1,240,000 Colorado Student Student Loan Revenue Series 1992-B, 6.20% due 9/1/98 A/NR 1,245,059
840,000 Colorado Student Student Loan Revenue Series 1992-B, 6.40% due 9/1/99 A/NR 863,755
1,080,000 Denver City & County Industrial Development Revenue, 7.40% due 3/1/03 (University of NR/A- 1,176,552
Denver Project)
1,155,000 Denver City & County Industrial Development Revenue, 7.50% due 3/1/04 (University of NR/A- 1,261,133
Denver Project)
1,185,000 Denver City & County Industrial Development Revenue, 7.60% due 3/1/05 (University of NR/A- 1,298,629
Denver Project)
335,000 Denver City & County Industrial Development Revenue, 6.40% due 12/1/10 NR/A+ 344,072
3,500,000 Denver City & County Industrial Development Revenue, 5.375% due 7/1/11 put 7/1/00 NR/A1+ 3,570,805
(Translogic Corporation Project; LOC: Commerzbank)
2,460,000 Denver School District #1 Certificate of Participation Series 1996, 5.50% due 12/15/02 Aaa/AAA 2,593,849
(Insured: AMBAC)
500,000 El Paso County School District General Obligation # 20 Series B, 8.25% due 12/15/04 Aa3/NR 607,090
(State Aid Withholding)
560,000 Highlands Ranch Metro District #1 Refunding, 5.25% due 9/1/03 (Insured: AMBAC) Aaa/AAA 586,768
2,175,000 Highlands Ranch Metro District #2 General Obligation, 6.00% due 6/15/04 (Insured: FSA) Aaa/AAA 2,369,880
1,000,000 University of Colorado Certificate of Participation, 7.10% due 12/1/99 pre-refunded A2/NR 1,034,230
12/1/98
2,725,000 Westminister Multi Family Housing Revenue Series 1995, 5.95% due 9/1/15 put 9/1/06 NR/AA- 2,869,616
(Semper Village Apartments Project; Insured: AXA)
1,350,000 Westminster Sales & Use Tax Revenue Refunding Series 1996, 5.50% due 12/1/01 NR/AA- 1,410,993
Connecticut (1.90%)
1,685,000 Bridgeport General Obligation, 6.00% due 3/1/05 (Insured: AMBAC) Aaa/AAA 1,846,390
1,325,000 Bridgeport General Obligation, 6.00% due 3/1/06 (Insured: AMBAC) Aaa/AAA 1,462,548
1,045,000 Capitol Region Education Council, 6.375% due 10/15/05 NR/BBB 1,123,877
695,000 Connecticut Housing Finance Authority Series 1988-B, 6.90% due 11/15/98 Aa/AA 699,385
700,000 Connecticut Resource Recovery Authority, 7.125% due 11/15/08 (Wallingford Project; LOC: Aa2/AA 714,658
National Westminster)
1,000,000 Connecticut Special Tax Obligation Revenue Series C, 7.40% due 10/1/04 pre-refunded NR/AAA 1,029,380
10/1/98
5,540,000 Connecticut State Special Tax Obligation Series 1989-B, 0% due 7/1/99 (Transportation Aaa/AAA 5,330,034
Infrastructure Project; Insured: AMBAC)
5,000,000 Connecticut Unemployment Compensation Advance Fund Refunding Revenue Series 1996-A, Aaa/AAA 5,205,650
5.50% due 5/15/01 (Insured: AMBAC)
500,000 New Haven General Obligation, 9.50% due 11/15/03 Baa1/BBB 614,785
Delaware (0.20%)
1,500,000 Delaware Solid Waste System Revenue, 6.00% due 7/1/03 (Insured: MBIA) Aaa/AAA 1,620,690
District of (1.80%)
60,000 District Columbia Pre-refunded Refunding Series A - 3, 4.90% due 6/1/00 Ba1/BB 60,969
25,000 District Columbia Pre-refunded Series B, 7.10% due 6/1/00 (Insured: FSA) Aaa/AAA 26,450
500,000 District Columbia Hospital Revenue Refunding Medlantic Healthcare Group A, 6.00% due Aaa/AAA 547,750
8/15/07 (Insured: MBIA)
110,000 District Columbia Pre-refunded Series A, 5.30% due 6/1/00 Ba1/BB 112,646
1,120,000 District Columbia Revenue Bonds, 5.00% due 1/1/04 (American Association for Advancement Aaa/AAA 1,151,427
of Science Project; Insured: AMBAC)
1,235,000 District Columbia Revenue Bonds, 5.50% due 1/1/06 (American Association for Advancement Aaa/AAA 1,309,681
of Science Project; Insured: AMBAC)
1,195,000 District Columbia Unrefunded Balance, 4.90% due 6/1/00 Ba1/BB 1,206,054
1,390,000 District Columbia Unrefunded Balance, 5.30% due 6/1/00 Ba1/BB 1,412,990
975,000 District Columbia Unrefunded Balance, 7.10% due 6/1/00 (Insured: FSA) Aaa/AAA 1,028,586
275,000 District of Columbia Association of American Medical Colleges, 7.20% due 2/15/01 NR/AA- 294,214
3,440,000 District of Columbia Certificate of Participation Series 1993, 6.875% due 1/1/03 NR/BB- 3,593,011
1,000,000 District of Columbia General Obligation 1988 Series A, 7.65% due 12/1/03 (Insured: MBIA) Aaa/AAA 1,036,460
1,505,000 District of Columbia General Obligation Capital Appreciation Refunding, 0% due 6/1/02 Aaa/AAA 1,270,431
(Insured: MBIA)
2,000,000 District of Columbia General Obligation Refunding Series A, 5.50% due 6/1/01 (Insured: Aaa/AAA 2,074,560
FSA)
1,000,000 District of Columbia Revenue, 6.00% due 7/15/03 (Childrens Hospital Project; Insured: Aaa/AAA 1,074,420
FGIC)
1,330,000 District of Columbia Revenue, 6.00% due 8/15/05 (Medlantic Healthcare Project; Insured: Aaa/AAA 1,450,378
MBIA)
Florida (2.70%)
200,000 Alachua County Health Facilities Revenue, 7.00% due 12/1/01 (Shands Hospital & Clinics NR/AAA 209,898
Project) (ETM)
425,000 Brevard County Tourist Development Tax Revenue Series 1993, 6.325% due 3/1/03 (Florida NR/NR 446,803
Marlins Training Facilities)
620,000 Cape Coral Special Assessment Water Improvement, 6.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 620,043
3,000,000 Collier County School Board Certificates of Participation, 5.50% due 2/15/03 (Insured: Aaa/AAA 3,137,940
FSA)
5,000,000 Dade County Solid Waste System Special Obligation Revenue, 5.25% due 10/1/03 (Insured: Aaa/AAA 5,249,650
AMBAC)
200,000 East County Water Control District Lee County Drain, 5.50% due 11/1/03 (LOC: Asset NR/AA 211,616
Guaranty)
1,525,000 Escambia County Health Facilities Series A, 8.70% due 10/1/14 partially pre-refunded NR/BBB+ 1,572,214
10/01/98 (Baptist Hospital Project)
1,500,000 Florida Housing Development Authority, 6.25% due 12/1/06 (Hammock's Place Project) NR/AAA 1,565,085
1,940,000 Florida Housing Finance Authority Series 1987, 4.85% due 2/1/08 put 2/1/01 (Guaranteed: NR/AA 1,957,518
Connecticut General)
3,100,000 Florida Housing Finance Authority Multi Family Housing Revenue, 5.10% due 4/1/13 put NR/AA- 3,163,922
4/01/02 (Park Colony Project; LOC: Mellon Bank)
150,000 Hillsborough County Utility Refunding Rev, 9.75% due 12/1/03 (Insured: MBIA) Aaa/AAA 179,868
550,000 Jacksonville Port Authority Rev., 7.625% due 11/1/02 (Insured: MBIA) Aaa/AAA 627,385
1,000,000 Jacksonville Port Authority Rev., 7.625% due 11/1/03 (Insured: MBIA) Aaa/AAA 1,165,660
1,000,000 Lee County School Board Certificate of Participation, 6.20% due 8/1/00 (Insured: FSA) Aaa/AAA 1,045,410
1,195,000 Lee County School Board Certificate of Participation, 6.30% due 8/1/01 (Insured: FSA) Aaa/AAA 1,274,718
315,000 Martin County Combined Special Assessment Series 1990-A, 8.125% due 3/1/01 NR/NR 336,521
940,000 Palm Beach County Industrial Development Revenue Series 1996, 6.00% due 12/1/06 NR/A+ 1,024,121
(Lourdes-Noreen McKeen Residence for Geriatric Care Project; LOC: Allied Irish Bank)
250,000 Pasco County Florida School Board Certificate of Participation Series A, 6.10% due Aaa/AAA 264,940
8/1/01 (Insured: FSA)(ETM)
1,310,000 Port Orange Florida Water and Sewer Revenue Refunding, 5.50% due 10/1/09 (Insured: AMBAC) Aaa/AAA 1,385,875
500,000 Volusia County School Board Certificates of Participation, 10.00% due 8/1/00 (Master Aaa/AAA 559,655
Lease Program Project; Insured: FSA)
Georgia (0.20%)
1,590,000 Burke County Development Authority Pollution Control Revenue, 6.25% due 1/1/03 (Insured: Aaa/AAA 1,717,057
MBIA)
600,000 Gwinnett County Dev Auth Rev, 6.95% due 6/1/01 (Mead Corp. Project) (ETM) NR/NR 622,476
Guam (0.10%)
800,000 Guam Government General Obligation Series A, 5.90% due 9/1/05 NR/BBB 806,560
Hawaii (1.30%)
2,000,000 Hawaii Airport System Revenue Refnding, 5.10% due 7/1/99 (Insured: MBIA) Aaa/AAA 2,028,500
2,000,000 Hawaii General Obligation Refunding, 5.00% due 4/1/08 (Insured: MBIA) Aaa/AAA 2,068,520
6,000,000 Hawaii Refunding Series CB, 5.00% due 1/1/00 A1/A+ 6,091,020
435,000 Hawaii State Department Budget & Finance Special Purpose Mortgage Revenue, 7.125% due NR/BBB- 435,026
7/1/98 (Wahiawa General Hospital Project)
1,500,000 Hawaii State Department Budget & Finance Special Purpose Mortgage Revenue, 5.70% due A/A 1,579,140
7/1/03 (Kapiolani Health Care System Project)
500,000 Honolulu City & County Series A, 7.25% due 7/1/00 Aa2/AA 530,550
Idaho (0.70%)
700,000 Boise Idaho Urban Renewal Agency Package Revenue Tax Increment Series A, 6.00% due 9/1/02 NR/BBB+ 743,561
4,980,000 Idaho Falls Electric Revenue Refunding, 0% due 4/1/00 (Insured: FGIC) Aaa/AAA 4,643,601
835,000 Idaho Housing Agency Single Family Mortgage Subordinated Series D-1, 5.90% due 7/1/06 Aa2/NR 873,427
530,000 Idaho Student Loan Marketing Association Refunding Revenue Series 1992, 6.40% due 10/1/99 NR/NR 541,517
Illinois (4.80%)
1,800,000 Chicago Illinois General Obligation, 5.50% due 1/1/04 (Insured: AMBAC) Aaa/AAA 1,903,950
5,000,000 Chicago Illinois O'Hare International Airport Special Facility Revenue Refunding Aaa/AAA 5,179,250
International Terminal, 5.50% due 1/1/08 (Insured: AMBAC)
5,000,000 Chicago Illinois O'Hare International Airport Special Facility Revenue Refunding Aaa/AAA 5,134,250
International Terminal, 5.50% due 1/1/10 (Insured: AMBAC)
2,000,000 Cook County Community College District 508, 8.40% due 1/1/01 (Insured: FGIC) Aaa/AAA 2,202,400
1,800,000 Cook County Community College District 508 COP, 8.50% due 1/1/02 (Insured: FGIC) Aaa/AAA 2,050,002
3,350,000 Cook County Community Unified School District 401 Series 1996, 0% due 12/1/03 (Insured: Aaa/AAA 2,643,317
FSA)
595,000 Cook County Illinois School District 100, 8.20% due 12/1/05 (Insured: FSA) Aaa/NR 732,873
715,000 Du Page County Illinois High School, 5.75% due 12/1/06 Aa3/NR 777,555
760,000 Du Page County Illinois High School, 5.75% due 12/1/07 Aa3/NR 827,990
870,000 Du Page County Illinois School District Capital Appreciation, 0% due 2/1/06 (Insured: Aaa/NR 611,593
FGIC)
925,000 Illinois Health Facilities Authority Revenue, 5.25% due 5/1/99 (Galesburg Cottage Baa2/AA 936,951
Hospital Project; Insured: Asset Guaranty)
2,000,000 Illinois Health Facilities Authority Revenue Series 1992, 7.00% due 7/1/02 (Trinity Baa2/BBB 2,144,980
Medical Center Project)
500,000 Illinois Health Facilities Authority Revenue, 5.20% due 10/1/03 (Illinois Masonic A3/A- 516,885
Medical Center Project)
1,000,000 Illinois Health Facilities Authority Revenue Refunding Friendship Village Schaumburg, NR/NR 1,054,720
6.25% due 12/1/04
1,155,000 Illinois Health Facilities Authority Revenue The Carle Foundation Series A, 5.25% due Aaa/AAA 1,205,508
7/1/07 (Insured: AMBAC)
4,000,000 Illinois Health Facilities Authority Revenue Edgewater Med Center Series A, 4.70% due Aa1/NR 4,020,960
7/1/31 put 7/01/04
875,000 Illinois Health Facilities Authority Revenue Series 1993-A, 7.875% due 8/15/05 NR/NR 951,816
(Community Provider Pooled Loan Program Project)
9,105,000 Lake County Forest Preserve District Capital Appreciation, 0% due 12/1/06 Aa2/AA+ 6,218,715
500,000 Metropolitan Pier and Exposition Authority Dedicated State Tax Rev., 0% due 12/15/01 Aaa/AAA 432,030
(Insured: MBIA)
2,445,000 Naperville City, Du Page & Will Counties Economic Dev. Rev., 6.10% due 5/1/08 (Hospital NR/AA- 2,674,048
and Health System Association Project; LOC: American National Bank)
2,800,000 Rosemont General Obligation Series B, 5.40% due 12/1/05 A/A 2,968,224
900,000 Will & Kendall Counties Community School District 202 General Obligation, 5.45% due Aaa/AAA 931,257
1/1/05 (Insured: AMBAC)
Indiana (5.20%)
1,250,000 Brownsburg School Building Corporation First Mortgage, 5.375% due 8/1/07 NR/A 1,313,650
1,175,000 Brownsburg School Building Corporation First Mortgage, 5.375% due 2/1/07 NR/A 1,232,152
1,255,000 Columbus School Building Corporation, 5.50% due 1/15/02 (Insured: MBIA) Aaa/AAA 1,309,831
1,860,000 Elberfeld J H Castle School Building Corporation Indiana First Mortgage, 0% due 1/15/06 NR/A 1,310,259
770,000 Elberfeld J H Castle School Building Corporation Indiana First Mortgage Refunding, 0% Aaa/AAA 485,362
due 1/5/08 (Insured: MBIA)
1,860,000 Elberfeld J H Castle School Building Corporation Indiana First Mortgage Refunding, 0% Aaa/AAA 1,144,346
due 7/5/08 (Insured: MBIA)
895,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 6/15/99 NR/NR 915,818
570,000 Gary Indiana Judgement Funding General Obligation, 6.60% due 12/15/99 NR/NR 588,981
2,305,000 Hammond Multi-School Building Corp First Mortgage Refunding Bond Series 1997, 6.00% due NR/A 2,535,177
7/15/08 (Lake County Project)
1,080,000 Indiana Bond Bank Series B, 7.25% due 2/1/01 (Special Loan Program) NR/A+ 1,104,052
1,120,000 Indiana Bond Bank Special Program Series 1992-B, 5.60% due 8/1/99 NR/A+ 1,141,067
1,000,000 Indiana Bond Bank State Revolving Fund Series 1993-A, 5.30% due 2/1/99 NR/AAA 1,009,990
2,640,000 Indiana Bond Bank State Revolving Fund Series 1993-A, 5.50% due 2/1/00 NR/AAA 2,703,862
1,500,000 Indiana Health Facilities Revenue, 5.55% due 7/1/01 (Marion General Hospital Project; Aaa/AAA 1,561,725
Insured: MBIA)
1,500,000 Indianapolis Economic Development Revenue, 5.30% due 12/1/07 (FNMA Pass-Thru Certificate) Aaa/AAA 1,537,620
1,220,000 Indianapolis Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/05 Aa/AA- 891,515
1,240,000 Indianapolis Local Public Improvement Bond Bank Trans Rev, 0% due 7/1/06 Aa/AA- 863,052
6,200,000 Indianapolis Local Public Improvement Bond Bank Trans Rev Series 1996, 6.00% due 1/10/01 NR/NR 6,247,058
2,200,000 Indianapolis Resource Recovery Revenue, 6.75% due 12/1/04 (Ogden Martin System, Inc. Aaa/AAA 2,481,072
Project; Insured: AMBAC)
1,025,000 Lawrence Township Indiana School Building Corporation Refunding First Mortgage, 5.25% NR/A+ 1,074,836
due 7/5/06
1,075,000 Lawrence Township Indiana School Building Corporation Refunding First Mortgage, 5.25% NR/A+ 1,118,828
due 7/5/07
1,135,000 Lawrence Township Indiana School Building Corporation Refunding First Mortgage, 5.25% NR/A+ 1,182,556
due 7/5/08
1,645,000 Logansport Multi-Purpose School Building Corporation First Mortgage Refunding Series NR/A 1,708,974
1992, 5.50% due 7/1/01
955,000 Mishawaka School First Mortgage, 6.25% due 7/15/06 NR/A 1,057,873
1,015,000 Mishawaka School First Mortgage, 6.25% due 7/15/07 NR/A 1,129,776
535,000 New Albany Floyd County School Building Corp., 6.20% due 7/1/03 (ETM) NR/A 582,326
1,660,000 Noblesville High School Building Corp. First Mortgage Bond Series 1997 Refunding First Aaa/AAA 1,796,535
Mortgage, 5.75% due 1/5/06 (Insured: AMBAC)
1,820,000 Noblesville High School Building Corp. First Mortgage Bond Series 1997 Refunding First Aaa/AAA 1,978,012
Mortgage, 5.75% due 7/5/06 (Insured: AMBAC)
1,295,000 Seymour Community High School Building Corporation Refunding First Mortgage, 5.50% due Aaa/AAA 1,386,608
7/5/08 (Insured: FSA)
1,820,000 Westfield Elem. School Building Corp. First Mtg Series 1997, 6.80% due 7/15/07 (Insured: Aaa/AAA 2,116,933
AMBAC)
1,385,000 Whitley County Middle School Building Corporation Refunding First Mortgage, 5.25% due Aaa/AAA 1,456,230
7/10/06 (Insured: FSA)
1,470,000 Whitley County Middle School Building Corporation Refunding First Mortgage, 5.25% due Aaa/AAA 1,544,353
7/10/07 (Insured: FSA)
1,575,000 Whitley County Middle School Building Corporation Refunding First Mortgage, 5.25% due Aaa/AAA 1,655,183
7/10/08 (Insured: FSA)
Iowa (1.50%)
500,000 Davenport Hospital Revenue A Series, 6.90% due 7/1/99 (St. Luke's Hospital Project; Aaa/AAA 515,950
Insured: AMBAC)
1,225,000 Des Moines Hospital Revenue Refunding S Series 1996-A, 6.25% due 11/15/04 (Des Moines Aa2/NR 1,345,430
General Hospital Project; LOC: Norwest)
1,500,000 Iowa Certificate of Participation, 6.10% due 7/1/01 (Insured: AMBAC) Aaa/AAA 1,583,085
875,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue 1991 Series A, 6.35% due Aa1/NR 919,721
3/1/01
2,000,000 Iowa Student Loan Liquidity Corporation Student Loan Revenue 1991 Series C, 6.80% due Aaa/AAA 2,147,520
12/1/02
2,675,000 Marion Commercial Development Revenue Refunding Series 1991-A, 7.25% due 1/1/14 put NR/A+ 2,796,418
7/1/02 (Collins Road Project; Insured: Trygg-Hansa)
500,000 Muscatine Electric Revenue, 9.50% due 1/1/04 (ETM) Aaa/AAA 583,040
4,445,000 Muscatine Electric Revenue Refunding Series 1992, 5.40% due 1/1/00 (Insured: AMBAC) Aaa/AAA 4,543,368
Kansas (0.90%)
500,000 Johnson County Unified School Dstrict No. 233 Series B, 6.10% due 3/1/99 A1/A+ 502,075
1,000,000 Kansas City Industrial Revenue Series 12/1/84, 7.20% due 12/1/04 (Ash Grove Cement NR/NR 1,046,660
Project)
2,000,000 Lenexa Industrial Revenue Series 8/1/83, 9.50% due 8/1/98 (J.C. Nichols Co. Project) NR/NR 2,008,800
1,000,000 Sedgwick County Unified School District 265, 8.20% due 10/1/03 (Insured: FSA) Aaa/AAA 1,185,040
3,960,000 Topeka Multi Family Housing Revenue Refunding Series 1991-A, 7.25% due 4/1/21 put NR/A 4,115,628
4/1/02 (Fleming Court Project; Insured: Trygg-Hansa)
Kentucky (0.90%)
4,500,000 Jefferson County Insured Hospital Revenue Series 1992 Revenue, 7.922% due 10/1/02 Aaa/AAA 5,113,125
(Alliant Health Systems Project; Insured: MBIA) (Inverse Floater)
1,000,000 Kentucky State Turnpike Authority Res Rec Rev, 0% due 7/1/06 (Insured: FGIC) Aaa/AAA 703,680
2,090,000 Paintsville First Mortgage Revenue Series 1991, 8.50% due 9/1/03 (Paul B. Hall Medical NR/NR 2,305,688
Center Project; Guaranteed: Health Management Associates)
Louisiana (4.10%)
2,475,000 East Baton Rouge Louisiana Sales Tax Series, 8.00% due 2/1/06 (Insured: FGIC) Aaa/AAA 3,024,598
2,020,000 East Baton Rouge Public Improv. Sales Tax Series 1993-A, 8.00% due 2/1/00 (Insured: FGIC) Aaa/AAA 2,143,523
2,165,000 East Baton Rouge Public Improv. Sales Tax Series 1993-A, 8.00% due 2/1/01 (Insured: FGIC) Aaa/AAA 2,368,402
1,000,000 Jefferson Parish Drainage Improvement Refunding, 6.15% due 9/1/05 (Insured: FGIC) NR/AAA 1,101,520
1,040,000 Jefferson Parish School Board Refunding, 0% due 3/1/08 (Insured: FSA) NR/AAA 663,655
220,000 Lafayette Parish Louisiana Law Enforcement District Special Tax Certificates NR/A 220,418
Indebtedness, 6.00% due 3/1/99
1,000,000 Louisiana Offshore Authority Deepwater Port Rev. Series B, 6.25% due 9/1/04 Baa1/A 1,088,240
1,065,000 Louisiana PFA Multi Family Housing, 5.95% due 3/15/19 (Oakleigh Apts. Project; Insured: NR/AA- 1,113,010
AXA)
2,485,000 Louisiana PFA Student Loan Revenue Series A-1, 5.90% due 3/1/99 Aaa/NR 2,511,937
3,525,000 Louisiana PFA Student Loan Revenue Series A-1, 6.10% due 3/1/00 Aaa/NR 3,631,667
5,000,000 Louisiana Public Facilities Authority Health and Ed Cap Fac Revenue Series 1985, 5.00% Aaa/AAA 5,126,650
due 12/1/15 put 6/1/02 (Insured: AMBAC)
1,200,000 Louisiana Public Facilities Authority Hospital, 3.67% due 7/1/99 (St. Francis Medical Aaa/AAA 1,192,644
Center Project; Insured: FSA)(Inverse Floater)
1,100,000 Louisiana Public Facilities Authority Hospital, 3.92% due 7/1/00 (St. Francis Medical Aaa/AAA 1,087,383
Center Project; Insured: FSA)(Inverse Floater)
1,000,000 Louisiana Public Facilities Authority Hospital Revenue and Refunding, 3.37% due 7/1/98 Aaa/AAA 999,980
(St. Francis Medical Center Project; Insured: FSA)(Inverse Floater)
1,300,000 Louisiana Public Facilities Authority Hospital Revenue and Refunding, 4.12% due 7/1/01 Aaa/AAA 1,278,628
(St. Francis Medical Center Project; Insured: FSA)(Inverse Floater)
2,450,000 Louisiana Recovery District Sales Tax Refunding Series 1992, 5.70% due 7/1/98 Aaa/NR 2,450,123
500,000 Louisiana State University Agricultural & Mechanical College Board, 7.70% due 4/15/02 NR/NR 560,705
(ETM)
2,125,000 Louisiana Unlimited Tax General Obligation Series A, 6.00% due 8/1/01 (Insured: FGIC) Aaa/AAA 2,242,109
4,800,000 Orleans Levee District Public Improvement Trust Receipts Series 1995-A, 5.95% due Aaa/AAA 5,077,632
11/1/01 (Insured: FSA)
460,000 Ouachita Parish Hospital District 1 Series 1991, 7.25% due 7/1/01 NR/A 499,735
600,000 St Tammany Parish Louisiana Sales Tax, 5.75% due 4/1/06 (Insured: FGIC) Aaa/AAA 650,628
Maine (0.40%)
2,970,000 Maine Finance Authority MFHR Series 1998, 5.25% due 9/1/18 put 9/1/99 (Back Bay Tower A3/NR 3,036,617
Project; LOC: Sakura Bank)
500,000 Regional Waste Systems Incorporated Series A-C, 7.30% due 7/1/98 NR/AA 500,050
Maryland (0.50%)
2,000,000 Howard County Maryland Multifamily Housing Revenue, 7.00% due 7/1/24 put 7/1/04 (Chase Baa2/NR 2,219,220
Glen Project; Guaranty: Avalon Prop.)
1,000,000 Maryland Health and High Educational Facility Authority, 4.75% due 7/1/21 put 3/1/01 NR/A 1,015,970
(Stella Maris Project; LOC: First Natl Bank)
1,105,000 Washington Suburban Sanitary District Series 1994, 8.75% due 6/1/99 Aa1/AA 1,155,841
Massachuset (5.00%)
1,000,000 Boston FHA Insured City Hospital Revenue Series A, 7.15% due 2/15/01 pre-refunded Aaa/NR 1,083,700
8/15/00 (Boston City Hospital Project)
1,600,000 Boston General Obligation Series A, 7.60% due 2/1/04 pre-refunded 2/1/99 NR/A+ 1,668,256
1,000,000 Boston General Obligation Series A, 7.25% due 7/1/99 A1/A+ 1,022,820
3,140,000 Boston Revenue City Hospital, 7.65% due 2/15/10 pre-refunded 8/15/00 Aaa/NR 3,431,832
75,000 Haverhill General Obligation Municipal Purpose Loan Series 1991, 7.50% due 10/15/11 Baa3/BBB 84,133
1,440,000 Holyoke General Obligation, 7.35% due 8/1/02 pre-refunded 8/1/01 Baa2/NR 1,599,710
380,000 Holyoke General Obligation Electric Revenue Series 1991-A, 8.00% due 6/1/01 Baa2/NR 401,504
300,000 Holyoke General Obligation Sewer Revenue Series B, 8.00% due 6/1/01 Baa2/NR 314,571
1,060,000 Lynn General Obligation, 7.00% due 1/15/04 Baa1/NR 1,181,306
600,000 Massachusetts Education Loan Revenue Series 1985-C, 7.875% due 6/1/03 (LOC: Rabobank NR/AAA 617,082
Nederland)
2,000,000 Massachusetts General Obligation Consolidated Loan of 1991 Series B, 0% due 6/1/01 Aa3/AA- 1,775,000
500,000 Massachusetts General Obligation Consolidated Loan Series D, 6.50% due 7/1/02 Aa3/AA- 542,285
2,000,000 Massachusetts General Obligation Consolidated Series 1987-A, 5.75% due 3/1/99 Aa3/AA- 2,028,660
3,000,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/00 Aa3/AA- 2,751,240
2,500,000 Massachusetts Hynes Convention Center Authority Refunding Series 1992, 0% due 9/1/02 Aa3/AA- 2,099,625
5,000,000 Massachusetts IFA First Mortgage Revenue Series 1996-B, 5.00% due 5/1/26 put 5/1/02 NR/A-1 5,140,100
(Orchard Cove Project; LOC: Fleet National Bank)
2,500,000 Massachusetts IFA Recovery Refunding Revenue Series 1993-A, 5.45% due 7/1/01 (Insured: Aaa/AAA 2,595,875
FSA)
1,245,000 Massachusetts State Health & Education Facilities Authority Series B, 6.875% due 7/1/99 A1/A 1,283,309
(Charlton Hospital Project)
1,465,000 Massachusetts State Health & Education Facilities Authority Series B, 6.70% due 7/1/98 A1/A 1,465,117
(Charlton Hospital Project)
2,545,000 Massachusetts State Health & Educational Facilities Authority Series B, 5.50% due NR/NR 2,615,547
5/15/11 put 5/15/01 (Community Health Capital Fund Project; LOC: First National Bank of
Boston)
1,790,000 New Bedford Industrial Revenue, 7.42% due 7/1/02 (Aerovox Corporation Project) NR/NR 1,809,708
3,000,000 New England Education Loan Marketing Corporation Student Loan Revenue Series 1993-B, A1/A- 3,062,850
5.40% due 6/1/00
1,000,000 New England Educational Loan Marketing Corporation Student Loan Revenue Series 1992-F, Aa/NR 1,081,220
6.50% due 9/1/02
425,000 South Essex Sewer District General Obligation, 9.00% due 12/1/98 Baa1/NR 434,490
295,000 South Essex Sewer District General Obligation, 9.00% due 12/1/99 Baa1/NR 315,736
550,000 Springfield General Obligation, 7.75% due 5/1/99 Baa3/NR 567,787
250,000 Springfield General Obligation, 7.75% due 5/1/00 Baa3/NR 265,643
300,000 Springfield General Obligation, 7.75% due 5/1/01 Baa3/NR 327,456
300,000 Springfield General Obligation, 7.80% due 5/1/02 Baa3/NR 332,229
1,500,000 Taunton General Obligation, 8.00% due 2/1/06 (Insured: MBIA) Aaa/AAA 1,838,505
2,000,000 University of Massachusetts Bldg. Authority Ref Revenue Series 1991-A, 6.80% due 5/1/99 Aa3/A+ 2,051,960
1,000,000 University of Massachusetts Bldg. Authority Ref Revenue Series 1991-A, 7.15% due 5/1/03 Aa3/A+ 1,125,820
1,250,000 Worcester Municipal Purpose Loan of 1991 General Obligation, 6.80% due 5/15/01 (Insured: Aaa/AAA 1,342,825
MBIA)
Michigan (1.70%)
1,215,000 Dearborn Sewage Disposal Systems, 6.90% due 4/1/01 (Insured: MBIA) Aaa/AAA 1,305,165
3,000,000 Detroit Economic Development Corp. Refunding, 7.00% due 6/1/12 put 6/1/002 (E.H. NR/NR 3,179,520
Associates Project; LOC: First Fed of Michigan)
1,300,000 Detroit General Obligation Series, 8.50% due 4/1/00 Baa2/BBB+ 1,393,483
890,000 Kalamazoo Michigan Hospital Finance Authority Hospital Facility Revenue, 5.50% due Aaa/NR 947,129
5/15/08 (Bronson Methodist Hospital Project; Insured: MBIA)
1,625,000 Kent Hospital Finance Authority Michigan Revenue Refunding Spectrum Health Series A, Aa3/AA 1,691,641
5.25% due 1/15/06
1,265,000 Michigan State Hospital Finance Authority Revenue Refunding, 5.25% due 2/15/07 (Insured: Aaa/NR 1,323,848
MBIA)
1,150,000 Michigan State Hospital Finance Authority Revenue 1991-A Garden City Hospital, 8.30% due Ba3/NR 1,246,289
9/1/02
2,000,000 Wayne County Building Authority Limited Tax General Obligation Sinking Fund Series Baa2/BBB+ 2,278,640
1992-A, 7.80% due 3/1/05 pre-refunded 3/1/02 @ 102
1,055,000 Wayne County Wastewater Control System Limited Tax General Obligation Refunding, 7.875% Baa2/BBB+ 1,178,794
due 5/1/02
1,940,000 West Ottawa Public Schools General Obligation Unlimited Tax, 6.30% due 5/1/03 (Insured: Aaa/AAA 2,112,078
FGIC)
Minnesota (1.70%)
4,715,000 Burnsville MFHR Series 1991, 7.20% due 5/1/11 put 5/1/02 (The Atrium Project; Insured: NR/A+ 4,819,437
Trygg-Hansa)
825,000 Coon Rapids Industrial Development Ref. Rev., 6.75% due 12/1/01 (LOC: Norwest Bank) NR/NR 837,598
1,500,000 Metropolitan Council Minneapolis - St. Paul Area Sports Facilities Revenue, 5.30% due A/A 1,543,665
10/1/00 (Hubert H. Humphery Metrodome Project)
3,180,000 Minneapolis - St. Paul Housing & Redevelopment Authority Series 1993, 5.00% due 12/1/04 NR/A+ 3,192,243
put 12/1/98 (Corporate Partner Project; Guaranteed: Continental Insurance)
2,500,000 Minneapolis - St. Paul Housing & Redevelopment Authority Single Family Mortgage Revenue Aaa/NR 2,504,400
Series 96-B, 5.125% due 6/1/32 put 6/1/00 (Insured: FNMA/GNMA)
1,035,000 Minneapolis - St. Paul Single Family Housing Revenue Series A, 8.25% due 11/1/07 NR/AAA 1,064,880
500,000 Minneapolis Community Development Agency Supported Dev. Rev. Ltd Tax - Common Bond NR/A- 553,955
Series G-3, 7.00% due 12/1/03
435,000 Minneapolis MFHR Refunding Series 1991, 6.75% due 10/1/01 (Churchill Apartments Project; NR/AAA 460,091
FHA Mortgage Insurance)
1,250,000 Minneapolis School District Certificate of Participation, 5.30% due 2/1/00 A1/A 1,275,138
Mississipi (0.40%)
1,000,000 Medical Center Education Building Corp. Rev., 7.00% due 12/1/00 (University of NR/A- 1,065,630
Mississippi Medical Center Project
2,000,000 Mississippi High Education Assistance Corporation Student Loan Revenue Series 1992-B, NR/A 2,044,580
6.00% due 1/1/00
700,000 Mississippi Hospital Equipment & Facilities Authority Revenue, 8.60% due 1/1/01 (Rush Baa3/NR 747,467
Medical Foundation Project)
Missouri (1.20%)
1,555,000 Jackson County Public Building Corporation Leasehold Revenue Series 1996, 6.00% due Aaa/AAA 1,701,854
12/1/04 (Capital Improvement Project; Insured: MBIA)
1,055,000 Missouri Health & Education Facilities Authority Revenue, 0% due 1/1/02 (ETM) NR/NR 906,140
4,000,000 Missouri Higher Education Loan Authority Student Loan Revenue Refunding, 5.50% due Aa/NR 4,077,480
2/15/00
255,000 Missouri State Enviromental Improvement & Energy Resources Authority Revenue Series Aa1/NR 278,513
1991-A, 6.50% due 12/1/02 (State Revolving Revenue Project)
325,000 Missouri State Enviromental Improvement & Energy Resources Authority Revenue Series Aa1/NR 355,885
1991-A, 6.60% due 12/1/03 (State Revolving Revenue Project)
680,000 Missouri State Housing Development Authority Revenue, 6.30% due 7/15/99 Aa/AA+ 689,908
3,860,000 St. Louis IDA Refunding Revenue Series 1993-B, 5.10% due 12/1/08 put 12/1/00 (Westport NR/A- 3,907,285
Residence Project; Guaranteed: Lincoln National Corporation)
Montana (0.10%)
425,000 Montana Higher Education Student Loan Revenue Series 1992-A, 6.70% due 12/1/01 A/NR 453,339
Nebraska (0.90%)
1,500,000 Nebraska IFA Hospital Equipment Revenue, 6.85% due 3/1/02 (Insured: MBIA) Aaa/AAA 1,634,175
1,175,000 Nebraska IFA Multi Family Housing Revenue 1985-B, 4.875% due 1/1/08 (FNMA: NR/AAA 1,178,102
Collateralized)
2,910,000 Nebraska IFA Tax Exempt Multi Family Housing Revenue Refunding 1995-A, 5.50% due 12/1/25 NR/AAA 3,035,770
put 12/1/05 (Willow Park Apartments Project; FNMA Collateralized)
2,500,000 Nebraska Public Power District Series 1993, 5.10% due 1/1/00 A1/A+ 2,542,650
Nevada (0.30%)
1,085,000 Washoe County Airport Authority Revenue Refunding, 5.30% due 7/1/00 (Insured: MBIA) Aaa/AAA 1,111,680
1,325,000 Washoe County Airport Authority Revenue Refunding, 5.45% due 7/1/01 (Insured: MBIA) Aaa/AAA 1,374,674
750,000 Washoe County Airport Authority Revenue Refunding, 5.60% due 7/1/02 (Insured: MBIA) Aaa/AAA 788,318
New Hampshi (0.90%)
500,000 New Hampshire Capital Appreciation General Obligation, 0% due 7/1/04 Aa2/AA+ 385,265
5,000,000 New Hampshire Health and Educational Authority Revenue Bond Series B, 5.05% due 3/1/23 A2/NR 5,108,000
put 3/1/03 (Riverwoods at Exeter Project; LOC: Banque Paribas)
2,030,000 New Hampshire Industrial Development Authority Revenue, 6.40% due 12/1/09 put 12/1/99 NR/AA 2,105,029
(Central Vermont Public Services; LOC: Toronto Dominion Bank)
845,000 New Hampshire Industrial Development Authority Revenue Series 1995, 7.70% due 7/1/00 A1/NR 847,112
(Electra/PJ-Allied Project)
New Jersey (0.80%)
595,000 Hudson County Certificates of Participation, 6.20% due 6/1/03 (Corrections Facility Aaa/AAA 644,028
Project; Insured: MBIA)
2,400,000 New Jersey EDA Refunding Revenue Series 1991, 6.875% due 10/1/14 put 10/1/98 (Fairway A2/NR 2,405,688
Corporation II Project; Guaranty: Provident Mutual Life)
1,000,000 New Jersey Health Care Facilities Financing Authority Revenue, 7.00% due 7/1/03 (Christ NR/AAA 1,117,520
Hospital Project; Insured: Connie Lee)
1,000,000 New Jersey Health Care Financing Authority Revenue, 5.75% due 7/1/04 (Kennedy Health Aaa/AAA 1,078,190
Systems)(Insured: MBIA)
1,000,000 New Jersey Health Care Financing Authority Revenue, 5.75% due 7/1/05 (Kennedy Health Aaa/AAA 1,085,620
Systems)(Insured: MBIA)
1,000,000 New Jersey Turnpike Authority Revenue Series A, 5.70% due 1/1/01 Baa1/BBB+ 1,036,250
New Mexico (0.60%)
250,000 Albuquerque Refuse Removal and Disposal Rev., 6.80% due 7/1/98 (Insured: AMBAC) Aaa/AAA 250,020
215,000 Las Cruces Gross Receipts Tax Revenue, 5.65% due 12/1/00 A/A 223,095
261,000 Santa Fe County Office and Training Facilities Revenue, 9.00% due 7/1/98 Aaa/NR 261,037
273,000 Santa Fe County Office and Training Facilities Revenue Series 1990, 9.00% due 1/1/99 Aaa/NR 280,363
(ETM)
285,000 Santa Fe County Office and Training Facilities Revenue Series 1990, 9.00% due 7/1/99 Aaa/NR 299,965
(ETM)
298,000 Santa Fe County Office and Training Facilities Revenue Series 1990, 9.00% due 1/1/00 Aaa/NR 320,290
(ETM)
326,000 Santa Fe County Office and Training Facilities Revenue Series 1990, 9.00% due 1/1/01 Aaa/NR 364,374
(ETM)
650,000 Santa Fe Refuse Disposal Systems, 5.00% due 6/1/03 A3/NR 665,613
775,000 Santa Fe Refuse Disposal Systems Improvement Revenue, 5.00% due 6/1/05 A3/NR 791,786
745,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.75% due 6/1/04 NR/NR 792,099
510,000 Santa Fe Solid Waste Management Agency Facility Revenue, 5.90% due 6/1/05 NR/NR 548,576
775,000 Santa Fe Solid Waste Management Agency Facility Revenue, 6.00% due 6/1/06 NR/NR 841,480
New York (6.00%)
310,000 Amherst Industrial Development Authority Lease Revenue Bonds Series A, 5.25% due 10/1/08 NR/A 311,438
(Pink Complex Project; LOC: Key Bank)
1,785,000 Islip Resources Recovery Agency Series 85-D, 5.95% due 7/1/03 (Insured: AMBAC) Aaa/AAA 1,925,801
500,000 Metropolitian Transit Authority Services Contract Commuter Fac Rev, 7.00% due 7/1/02 Baa1/BBB+ 544,675
3,830,000 Nassau County New York General Improvement Series Y, 5.00% due 3/1/06 (Insured: FGIC) Aaa/AAA 3,975,463
3,000,000 New York Dorm Authority Revenue State University Educational Facilities, 5.25% due Aaa/AAA 3,123,930
7/1/02 (Insured: AMBAC)
1,000,000 New York Dorm Authority Revenue State University Educational Facilities Series A, 7.00% A3/A- 1,119,190
due 5/15/04
975,000 New York Med Care Facilities Finance, 6.00% due 11/15/02 Aa1/AA 1,044,820
1,150,000 New York Medical Care Facilities Finance, 5.40% due 8/15/05 (Insured: FHA Mortgage Aa/AA 1,207,431
Project)
7,240,000 New York State Dormitory Authority Series 1994-B, 6.00% due 7/1/24 put 12/5/99 (Miriam A2/A 7,472,187
Osborn Memorial Home Project; LOC: Banque Paribas)
4,600,000 New York City General Obligation, 8.25% due 6/1/07 (Insured: FSA) Aaa/AAA 5,831,512
255,000 New York City General Obligation Refunding, 8.25% due 11/1/99 (ETM) Aaa/A- 269,910
500,000 New York City General Obligation Series A, 7.00% due 8/1/03 A3/BBB+ 558,400
800,000 New York City General Obligation Series D, 6.30% due 2/1/01 (ETM) Aaa/BBB+ 844,544
1,960,000 New York City General Obligation Series D, 6.30% due 2/1/01 A3/BBB+ 2,060,666
750,000 New York City General Obligation Series D, 5.70% due 8/1/02 A3/BBB+ 789,502
1,150,000 New York City General Obligation Series E, 7.20% due 2/1/00 Aaa/BBB+ 1,209,397
90,000 New York City General Obligation Series E, 7.20% due 2/1/00 (ETM) A3/BBB+ 94,296
785,000 New York City General Obligation Series E, 6.30% due 8/1/01 A3/BBB+ 836,425
1,910,000 New York City General Obligation Series E, 6.30% due 8/1/01 (ETM) Aaa*/BBB+ 2,025,899
1,000,000 New York City General Obligation Series E, 7.00% due 8/1/04 (Insured: AMBAC) Aaa/AAA 1,140,320
250,000 New York City Health and Hospital Corp. Rev Series A, 6.00% due 2/15/05 Baa3/BBB- 267,710
1,500,000 New York Medical Care Facilities Finance Mental Health Services Facilities Series A, A3/A- 1,612,680
7.25% due 2/15/01
1,525,000 New York State Dorm Authority, 6.00% due 2/1/04 (Millard Fillmore Hospital Project; Aaa/AAA 1,646,970
Insured: AMBAC)
1,040,000 New York State Dorm Authority, 6.00% due 7/1/07 (Champlain Valley Physicians; Insured: NR/AAA 1,156,064
Connie Lee)
1,900,000 New York State Dormitory Authority Revenue, 5.50% due 7/1/08 (Good Samaritan Hospital; Baa1/AA 2,020,194
Insured: Asset Guaranty)
820,000 New York State Health Facilities Revenue Refunding 1990-A, 7.90% due 11/1/99 Baa/BBB+ 843,952
1,500,000 New York State Local Government Assistance Corporation Revenue Series D, 6.50% due 4/1/02 A3/A+ 1,621,755
1,320,000 New York State Thruway Authority General Revenue Special Obligation, 0% due 1/1/06 NR/BBB 925,412
2,500,000 New York State Urban Development Corporation, 7.60% due 4/1/03 pre-refunded 4/1/01 Aaa/BBB+ 2,779,100
255,000 New York State Urban Development Corporation Revenue University Facilities Grants, 6.00% Baa1/BBB+ 275,923
due 1/1/06
3,425,000 New York State Urban Development Corporation Series 7, 6.00% due 1/1/06 Baa1/BBB+ 3,706,021
2,500,000 Syracuse Industrial Development Authority Pilot Revenue Refunding Series, 5.125% due NR/AA 2,571,000
10/15/02 (LOC: ABN AMRO)
1,000,000 Triborough Bridge and Tunnel Authority, 6.50% due 1/1/04 (Insured: MBIA) Aaa/AAA 1,076,340
515,000 Westchester County IDA Civic Facility Revenue, 6.25% due 4/1/05 (Julia Dykman Project) NR/NR 547,126
North Carol (0.50%)
1,430,000 Carteret County Certificate of Parcipation Series 1992, 6.50% due 2/1/00 (Elementary A/BBB+ 1,461,145
School Project)
775,000 Gastonia Housing Corp First Lien Rev Series A, 5.75% due 7/1/04 (Golfview Village Square NR/A- 803,195
Apartment Project)
485,000 North Carolina Housing Finance Authority Single Family Housing Revenue, 6.80% due 7/1/08 Aa1/AA+ 486,382
1,865,000 North Carolina Municipal Power Agency 1 Catawba Electrical Revenue, 6.00% due 1/1/05 Aaa/AAA 2,022,742
(Insured: MBIA)
North Dakot (0.40%)
910,000 Grand Forks Health Care Systems Revenue Bond Series 1997, 6.25% due 8/15/05 (Altru Aaa/AAA 1,005,514
Health System Project; Insured: MBIA)
1,000,000 North Dakota Building Authority Refunding Revenue Series 1993-A, 5.15% due 6/1/00 Aaa/AAA 1,021,750
(Insured: AMBAC)
1,250,000 North Dakota Student Loan Revenue, 5.45% due 7/1/02 (Insured: AMBAC) Aaa/AAA 1,303,275
Ohio (3.30%)
1,000,000 Barberton Hospital Facilities Series 1992, 6.65% due 1/1/02 A/NR 1,081,060
2,370,000 Belmont County IDRB Series 1991, 6.50% due 1/1/00 (May Department Stores Co. Project) NR/A 2,437,332
4,000,000 Butler County Hospital Revenue Bonds, 5.15% due 11/1/17 put 11/1/02 (Middletown Regional A1/A-1 4,010,280
Hospital Project; LOC: Star Bank)
1,000,000 Butler County Transportation Improvement Revenue Bonds, 5.00% due 4/1/06 (Insured: FSA) Aaa/AAA 1,038,990
1,250,000 Cincinnati School District Revenue Anticipation Notes, 6.05% due 6/15/00 NR/A- 1,299,100
1,000,000 Cincinnati School District Revenue Anticipation Notes, 6.15% due 6/15/02 NR/A- 1,071,160
2,000,000 Cleveland Certificate of Participation, 7.10% due 7/1/02 (Motor Vehicle & Community Baa2/BBB 2,093,140
Equipment Project)
1,000,000 Cleveland General Obligation Limited, 5.30% due 9/1/08 (Insured: AMBAC) Aaa/AAA 1,063,800
1,400,000 Cuyahoga County Housing Revenue Series, 7.00% due 4/1/00 (North Coast Community Homes NR/NR 1,427,622
Project)
2,255,000 Cuyahoga County Ohio Hospital Revenue Refunding Series B, 6.00% due 1/15/06 (University Aa/AA 2,461,716
Hosps Health Systems Project)
1,000,000 Erie County Hospital Improvement Refunding Revenue Series, 6.25% due 1/1/01 (Firelands A/A 1,047,740
Community Hospital Project)
2,000,000 Franklin County General Obligation, 6.375% due 12/1/17 pre-refunded 12/1/01 @ 102 NR/NR 2,180,540
1,100,000 Hamilton County Hospital Facilities Refunding Revenue Series 1992, 6.25% due 1/1/01 Aa2/NR 1,155,979
(Episcopal Retirement Homes Project; LOC: Fifth/Third Bank)
1,500,000 Ohio Air Quality Development Authority, 8.00% due 12/1/13 (Cleveland Project; Insured: Aaa/AAA 1,720,920
FGIC)
3,095,000 Ohio Water Development Authority Safe Water Refunding, 0% due 12/1/00 (Insured: MBIA) Aaa/AAA 2,806,855
1,060,000 Switzerland Local School District of Monroe County Revenue Anticipation Notes, 6.25% due NR/NR 1,091,768
6/15/00
2,765,000 Warren County Hospital Facilities Improvement and Refunding Revenue, 6.80% due 7/1/01 Aa2/NR 2,884,752
(Otterbein Home Project; LOC: Fifth/Third Bank)
910,000 Washington County Hospital Facilities Revenue, 6.875% due 9/1/02 (Marietta Area Health Baa1/NR 965,101
Project)
Oklahoma (0.60%)
1,190,000 Broken Arrow Utility Systems and Sales Tax Revenue Series 1992-A, 6.00% due 5/1/01 Aaa/AAA 1,252,487
(Insured: FGIC)
190,000 Comanche County SFMR Refunding 1990 Series, 7.60% due 12/1/98 A1/NR 191,938
200,000 Comanche County SFMR Refunding 1990 Series, 7.65% due 6/1/99 A1/NR 204,048
1,210,000 Oklahoma City Municipal Improvement Authority Water & Sewer Revenue Series A Refunding, Aaa/AAA 1,117,072
0% due 7/1/00 (Insured: AMBAC)
945,000 Pushmataha County Town of Antlers Hospital Authority Revenue Refunding Series 1991, NR/NR 1,049,630
8.75% due 6/1/03
1,155,000 Tulsa Industrial Development Hospital Revenue, 5.60% due 2/15/03 (St. John's Medical Aa3/AA 1,215,326
Center Project)
750,000 Tulsa Public Facilities Authority Solid Waste Steam & Electric Revenue Refunding Series Aaa/AAA 789,277
1994, 5.45% due 11/1/04 (Ogden Martin Systems of Tulsa Project; Insured: AMBAC)
Oregon (0.50%)
2,500,000 Clackamas County Hospital Facility Authority Revenue Bonds, 6.10% due 10/1/01 A1/AA- 2,652,200
1,325,000 Emerald Peoples Utility District Revenue, 7.20% due 11/1/03 (Insured: FGIC) Aaa/AAA 1,512,209
300,000 Oregon State General Obligation, 9.00% due 10/1/00 Aa2/AA 332,661
Pennsylvani (5.90%)
985,000 Allentown Area Hospital Authority Revenue Series 1991, 7.75% due 7/1/98 (Sacred Heart NR/BBB 985,089
Hospital Project)
1,000,000 Chester County Utility, 7.00% due 12/15/11 pre-refunded 8/01/01 Aa2/AA 1,084,730
550,000 Clarton School District General Obligation, 0% due 11/1/99 NR/A 521,449
500,000 Clarton School District General Obligation, 0% due 11/1/02 NR/A 413,480
3,060,000 Delaware County Health Facilities Authority Revenue Series 1993-B, 5.375% due 11/15/99 NR/BBB+ 3,124,444
(Mercy Health Corporation of S.E. Pennsylvania Project)
6,310,000 Delaware County Industrial Development Authority Revenue Series A, 6.10% due 1/1/04 Baa1/A 6,737,124
1,140,000 Delaware County Industrial Development Authority Revenue Series A, 6.10% due 1/1/06 Baa1/A 1,228,726
1,950,000 Erie County Pennsylvania Hospital Authority Revenue Hamot Health Foundation Series A, Aaa/AAA 2,016,573
5.00% due 5/15/06 (Insured: AMBAC)
2,030,000 Erie School District General Obligation, 0% due 6/1/00 (ETM) NR/NR 1,874,685
1,000,000 Erie School District General Obligation, 0% due 12/1/00 (ETM) NR/NR 904,540
3,365,000 Harrisburg Authority Commonwealth Lease Revenue Series 1991, 6.25% due 6/1/00 (Insured: Aaa/AAA 3,507,205
FSA)
1,300,000 Harrisburg Authority Lease Revenue, 6.50% due 6/1/04 crossover refunded 6/1/01 @ 101 Aaa/AAA 1,400,360
(Insured: FSA)
1,455,000 Mc Keesport Area School District General Obligation Refunding Revenue Series 1991, 0% NR/A 1,324,065
due 10/1/00
1,680,000 Mc Keesport Area School District General Obligation Refunding Revenue Series 1991, 0% NR/A 1,394,383
due 10/1/02
1,000,000 Montgomery County Pennsylvania Education & Health Pottstown Healthcare Corporation, NR/AAA 1,063,080
5.50% due 1/1/06 (Insured: FSA)
1,055,000 Montgomery County Pennsylvania Education & Health Pottstown Healthcare Corporation, NR/AAA 1,122,720
5.50% due 1/1/07 (Insured: FSA)
1,110,000 Montgomery County Pennsylvania Education & Health Pottstown Healthcare Corporation, NR/AAA 1,183,560
5.50% due 1/1/08 (Insured: FSA)
450,000 New Castle Area Hospital Authority Revenue Series A, 6.20% due 11/15/02 (St. Francis A/NR 482,261
Hospital Project)
750,000 Northeastern Pennsylvania Hospital & Education Authority Health Care Revenue, 6.20% due Aaa/AAA 819,172
1/1/04 (Wyoming Valley Health Care Series A Refunding; Insured: AMBAC)
1,000,000 Pennsylvania Infrastructure Authority Revenue Pennvest, 6.25% due 9/1/02 NR/AA+ 1,077,830
2,000,000 Pennsylvania State Certificates of Participation, 5.10% due 7/1/04 (Insured: AMBAC) Aaa/AAA 2,048,780
3,000,000 Pennsylvania State Certificates of Participation Series A, 5.40% due 7/1/09 (Insured: Aaa/AAA 3,071,940
AMBAC)
715,000 Pennsylvania State High Education Facilities Authority Revenue, 6.15% due 4/1/04 Baa3/NR 739,718
2,000,000 Pennsylvania State Refunding & Projects General Obligation Series A, 6.50% due 1/1/00 Aa3/AA- 2,076,080
1,000,000 Philadelphia Gas Works Revenue, 5.375% due 8/1/07 (Insured: FSA) Aaa/AAA 1,054,560
1,000,000 Philadelphia Hospital & Higher Education Facilities Authority Hospital Revenue Series B2/BB 1,020,520
1991, 7.00% due 7/1/01 (Graduate Health Systems Project)
2,920,000 Philadelphia Parking Authority Airport Parking Revenue Series 1997, 5.50% due 9/1/04 Aaa/AAA 3,098,178
(Insured: AMBAC)
2,600,000 Philadelphia Water & Wastewater Revenue Series 1993, 4.875% due 6/15/01 (Insured: FSA) Aaa/AAA 2,657,018
500,000 Southeastern Pennsylvania Transportation Authority, 6.00% due 6/1/01 (LOC: Canadian Aa3/AA- 526,150
Imperial Bank of Commerce)
3,000,000 Southeastern Pennsylvania Transportation Authority Series 1994, 6.00% due 6/1/99 (LOC: Aa3/AA- 3,063,330
Canadian Imperial Bank of Commerce)
1,980,000 Southern Chester County Health & Higher Education Series 1997-A, 6.10% due 6/1/03 NR/NR 2,010,492
2,825,000 State Public School District Building Authority Reading School District Capital Aaa/AAA 2,598,802
Appreciation Series B, 0% due 7/15/00 (Insured: MBIA)
Puerto Rico (0.40%)
1,000,000 Puerto Rico Electric Power Revenue Refunding Series 1992-Q, 5.70% due 7/1/00 Baa1/BBB+ 1,032,210
1,300,000 Puerto Rico Highway and Transportation Authority Highway Revenue, 5.70% due 7/1/98 Baa1/A 1,300,065
1,000,000 Puerto Rico Municipal Finance Agency Series A, 5.70% due 7/1/03 Baa1/A- 1,061,490
250,000 Puerto Rico Public Improvement General Obligation, 6.60% due 7/1/04 pre-refunded 7/1/02 Baa1/AAA 276,532
@ 101.5
Rhode Islan (0.60%)
2,190,000 Rhode Island Depositors Economic Protection Corp. Series 1992-A, 6.10% due 8/1/02 Aaa/AAA 2,348,052
(Insured: FSA)
530,000 Rhode Island Health & Educational Building Corporation Health Facilities Revenue, 8.00% NR/NR 570,519
due 7/1/00 (Steere House Issue Project)
759,000 Rhode Island Industrial Facilities Corporation Series 1991, 5.875% due 6/1/02 (Paramount A1/NR 793,064
Cards, Inc. Project; LOC: Bank of Scotland)
1,500,000 Rhode Island Student Loan Authority Student Loan Rev. Ref. Series A, 6.55% due 12/1/00 A/NR 1,569,675
South Carol (0.30%)
300,000 Edgefield County School District General Obligation, 8.50% due 2/1/02 (Insured: FSA) Aaa/AAA 342,621
500,000 Florence County Public Facilities Corporation, 7.30% due 3/1/03 pre-refunded 3/1/00 (Law Aaa/AAA 532,405
Enforcement Project; Insured: AMBAC)
860,000 Piedmont Municipal Power Agency Electric Revenue, 6.25% due 1/1/04 (Insured: FGIC) Aaa/AAA 926,478
500,000 South Carolina State Housing Authority Multi Family Revenue, 7.375% due 12/1/07 NR/NR 475,000
915,000 York County School District 4, 7.00% due 3/1/03 (Insured: FGIC) Aaa/AAA 1,021,305
South Dakot (1.10%)
970,000 South Dakota Health and Educational Facilities Authority Revenue, 5.00% due 9/1/01 Aaa/AAA 978,662
(Rapid City Regional Hospital Project; Insured: MBIA)
1,020,000 South Dakota Health and Educational Facilities Authority Revenue, 5.00% due 9/1/02 Aaa/AAA 1,031,414
(Rapid City Regional Hospital Project; Insured: MBIA)
1,070,000 South Dakota Health and Educational Facilities Authority Revenue, 5.00% due 9/1/03 Aaa/AAA 1,082,358
(Rapid City Regional Hospital Project; Insured: MBIA)
1,135,000 South Dakota Health and Educational Facilities Authority Revenue, 5.00% due 9/1/04 Aaa/AAA 1,146,498
(Rapid City Regional Hospital Project; Insured: MBIA)
1,400,000 South Dakota Health and Educational Facilities Authority Revenue Series 1992, 5.40% due Aaa/AAA 1,456,784
9/1/01 (Rapid City Regional Hospital Project; Insured: MBIA)
1,255,000 South Dakota Health and Educational Revenue Refunding, 5.00% due 9/1/06 (Rapid City Aaa/AAA 1,258,112
Regional Hospital Project; Insured: MBIA)
750,000 South Dakota Health and Educational Revenue Refunding, 5.00% due 9/1/07 (Rapid City Aaa/AAA 749,588
Regional Hospital Project; Insured: MBIA)
500,000 South Dakota Health and Educational Revenue Refunding, 5.25% due 9/1/09 (Rapid City Aaa/AAA 506,380
Regional Hospital Project; Insured: MBIA)
1,250,000 South Dakota Lease Revenue Series 93-B, 8.00% due 9/1/03 (Insured: FSA) Aaa/AAA 1,460,337
500,000 South Dakota Lease Revenue Trust Series A, 8.30% due 9/1/01 (Insured: FSA) Aaa/AAA 561,095
Tennessee (1.20%)
5,000,000 Chattanooga-Hamilton County Hospital Revenue, 9.824% due 5/25/21 refunded 5/1/01 @ 102 Aaa/AAA 5,931,250
(Erlanger Medical Center Project; Insured: FSA)
1,565,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 5/1/02 (Guaranty: Louis NR/BBB- 1,636,161
Dreyfus Natural Gas)
1,130,000 Clarksville Natural Gas Corporation Series 1994-A, 7.00% due 11/1/02 (Guaranty: Louis NR/BBB- 1,181,381
Dreyfus Natural Gas)
1,015,000 Copperhill Industrial Development Board, 7.80% due 12/1/00 (City Services Company Baa2/BBB 1,026,266
Project)
630,000 Metro Government Nashville Tennessee Industrial Refunding Multi Family Housing, 5.45% NR/AAA 660,019
due 11/1/26 put 11/1/06 (Insured: FNMA)
1,070,000 Southeast Tax Exempt Mortgage Bond Trust, 7.25% due 4/1/17 put 4/1/03 (Inv. Agreement: NR/AAA 1,199,406
Bayeriche Landesbank)
Texas (6.70%)
2,500,000 Austin Utility Systems Revenue Bonds, 5.50% due 11/15/02 (Insured: FSA) Aaa/AAA 2,619,350
890,000 Bexar County Texas Health Facilities Development Corporate Hospital Revenue, 7.40% due NR/NR 927,077
5/1/00
1,065,000 Cypress-Fairbanks Independent School District General Obligation, 0% due 2/1/02 Aaa/AAA 912,375
(Insured: FGIC)
315,000 Dallas Waterworks & Sewer Systems Revenue, 7.10% due 4/1/99 Aa2/AA 317,719
1,000,000 Denton County Texas General Obligation, 7.75% due 7/15/02 (Insured: MBIA) Aaa/AAA 1,130,870
2,015,000 Ector County Hospital Revenue, 7.125% due 4/15/02 A2/A 2,184,099
4,000,000 Harris County Flood Control District L.T.G.O. Series 1991-A, 0% due 10/1/01 (Insured: Aaa/AAA 3,487,480
MBIA)
1,000,000 Harris County Health Facilities Dev. Corp. Hospital Revenue, 6.90% due 6/1/02 (Memorial A3/NR 1,098,790
Hospital Systems Project)
2,260,000 Harris County Health Facilities Development Corporation Series 1985-B, 7.375% due A1/NR 2,288,047
12/1/25 put 12/1/98 (Greater Houston Pooled Health Care Project; Guaranteed: Prudential
955,000 Harris County Health Facilities Hospital, 6.70% due 6/1/00 (Memorial Hospital Systems A3/NR 1,003,953
Project)
500,000 Harris County Health Facilities School Health Care System Rev., 6.80% due 7/1/04 Aa3/AA 547,020
(Sisters of Charity Project)
960,000 Houston Housing Finance Corp. SFMRB Series A, 5.35% due 6/1/02 (Insured: FSA) Aaa/AAA 985,795
1,000,000 Houston Water Conveyance Systems Contract Certificates of Partcipation Series F, 7.20% Aaa/AAA 1,120,620
due 12/15/02 (Insured: AMBAC)
2,850,000 Humble Independent School District of Harris County Series 1992, 0% due 2/15/00 Aaa/AAA 2,665,548
(Guaranty: PSF)
1,295,000 Irving Flood Control District Section 3 Refunding Capital Appreciation, 0% due 9/1/01 Baa1/NR 1,124,293
3,765,000 Irving Independent School District Capital Appreciation, 0% due 2/15/05 (Guarantee: PSF) Aaa/AAA 2,800,031
2,000,000 Irving Independent School District Capital Appreciation, 0% due 2/15/02 (Guarantee: PSF) Aaa/AAA 1,710,520
500,000 Irving Independent School District Capital Appreciation, 0% due 2/15/04 (Guarantee: PSF) Aaa/AAA 389,920
830,000 Jefferson County Health Facilities Development Corporation Hospital Revenue Series 1989, Ba1/BB 853,738
8.125% due 10/1/99 (Baptist Health Care System Project)
2,630,000 Lancaster Independent School District Unlimited Tax Refunding, 0% due 2/15/99 Aaa/AAA 2,566,328
(Guarantee: PSF)
2,230,000 Lower Colorado River Authority Jr. Lien Refunding Revenue Series 1992, 0% due 1/1/01 Aaa/AAA 2,006,732
(Insured: AMBAC)
1,600,000 Mission Consolidated Independent School, 6.50% due 2/15/08 (Guarantee: PSF) Aaa/AAA 1,832,832
305,000 North Texas Health Facilities Development Corporation Revenue Series 1988, 8.25% due NR/NR 307,321
9/1/98 (Wichita Falls United Diagnostic Center Project)
1,000,000 North Texas Higher Education Student Loan Revenue, 6.50% due 4/1/99 (Insured: AMBAC) Aaa/AAA 1,020,450
125,000 Northgate Crossing Utility District Road System & Drainage System Unlimited Tax Sinking NR/NR 126,166
Fund Series 1986, 9.25% due 12/1/98
1,040,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/06 pre-refunded 8/1/98 Aaa/AAA 1,043,484
1,115,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/07 pre-refunded 8/1/98 Aaa/AAA 1,118,735
1,295,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/09 pre-refunded 8/1/98 Aaa/AAA 1,299,338
1,395,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/10 pre-refunded 8/1/98 Aaa/AAA 1,399,673
1,500,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/11 pre-refunded 8/1/98 Aaa/AAA 1,505,025
1,615,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/12 pre-refunded 8/1/98 Aaa/AAA 1,620,410
2,135,000 Palo Duro River Authority General Obligation, 7.60% due 8/1/13 pre-refunded 8/1/98 Aaa/AAA 2,142,153
4,600,000 Plano Capital Appreciation Refunding General Obligation, 0% due 3/1/01 Aa1/AA 4,110,468
8,630,000 Richardson Independent School District Capital Appreciation Refunding Series A, 0% due Aaa/AAA 6,344,172
2/15/05 (Guarantee: PSF)
1,355,000 San Antonio General Obligation Improvement Forward Refunding Series 1998, 5.00% due Aa2/AA 1,374,593
8/1/99
1,415,000 San Antonio General Obligation Improvement Forward Refunding Series 1998, 5.50% due Aa2/AA 1,475,166
8/1/01
885,000 Tarrant County HFC Multi Family Housing Revenue, 4.90% due 9/1/06 put 9/1/01 (Bedford NR/AA- 885,929
Springs Project; Guaranteed: Provident Mutual Life Insurance Company)
850,000 Texas Water Resources Authority Revenue, 7.50% due 8/15/01 A/A 876,095
1,365,000 Texas Water Resources Finance Authority Revenue, 7.00% due 8/15/99 (Insured: AMBAC) Aaa/AAA 1,412,011
950,000 Texas Water Resources Finance Authority Revenue, 7.40% due 8/15/00 A/A 979,298
500,000 Trinity Water Revenue, 5.75% due 10/15/00 (Livingston Project) A1/A+ 500,700
Utah (2.80%)
1,000,000 Davis County Solid Waste Management and Recovery Rev., 5.90% due 6/15/03 Baa2/BBB+ 1,038,310
6,685,000 Intermountain Power Agency Power Supply Rev., 5.50% due 7/1/00 (Insured: MBIA) Aaa/AAA 6,881,338
5,055,000 Intermountain Power Agency Power Supply Rev. Series B, 5.50% due 7/1/01 (Insured: MBIA) Aaa/AAA 5,258,818
8,000,000 Intermountain Power Agency Revenue, 0% due 7/1/00 (ETM) Aaa/AAA 7,384,160
2,225,000 Ogden Neighborhood Development Agency Tax Increment Revenue Series A, 0% due 12/30/05 A2/NR 1,469,212
(LOC: Sumitomo Bank)
600,000 Utah Municipal Finance Co-op Local Government Revenue, 7.10% due 6/1/00 Baa1/AA 618,636
2,220,000 Utah Student Loan Revenue Series 1992-G, 5.20% due 11/1/98 (Insured: AMBAC) Aaa/AAA 2,231,122
2,000,000 Weber County Housing Authority MFHR Series 1991, 6.50% due 11/1/18 put 11/1/01 (Cherry Aaa/AAA 2,146,180
Creek Apartment Project; LOC: First Security Bank of Utah, Insured: FGIC)
Virginia (1.20%)
3,000,000 Hampton Redevelopment Housing Authority Multi Family Housing Refunding Series 1994, Baa2/NR 3,235,350
7.00% due 7/1/24 put 7/1/04 (Chase Hampton Apartments Project)
455,000 Hampton Virginia General Obligation Refunding Bond, 5.85% due 3/1/07 Aa3/AA 456,552
1,755,000 Henrico County IDA Public Facility Lease Revenue, 6.50% due 8/1/00 (Henrico County Aa2/AA 1,842,627
Regional Jail Project)
3,000,000 Suffolk Redevelopment Housing Authority Multi Family Housing Revenue, 7.00% due 7/1/24 Baa2/NR 3,306,210
put 7/1/04 (Chase Heritage @ Dulles Project)
1,960,000 Virginia Housing Development Authority Series C-8, 5.70% due 7/1/03 Aa1/AA+ 2,044,711
255,000 Virginia Housing Development Authority Series D-4, 5.00% due 7/1/00 Aa1/AA+ 259,516
Washington (3.00%)
1,010,000 Chelan County PUD 1 Consolidated System Revenue 1992, 5.55% due 7/1/99 Aa3/AA 1,027,433
1,125,000 Chelan County PUD 1 Consolidated System Revenue 1992, 5.75% due 7/1/00 Aa3/AA 1,160,775
1,370,000 Chelan County PUD 1 Consolidated System Revenue 1992-E, 0% due 7/1/98 Aa3/AA 1,369,863
1,195,000 Grant County PUD 2 Priest Rapids Hydroelectric, 6.00% due 1/1/03 (Insured: AMBAC) Aaa/AAA 1,280,395
950,000 Grant County PUD 2 Priest Rapids Hydroelectric, 6.00% due 1/1/06 (Insured: AMBAC) Aaa/AAA 1,043,052
500,000 Jefferson County Public Hospital District 2, 7.50% due 12/1/03 (Insured: FGIC) Aaa/AAA 577,900
725,000 Spokane County School District 363 Unlimited Tax G.O. Refunding Series 1992, 5.40% due A/NR 748,664
12/1/00
550,000 Tacoma Washington Conservation Systems Project Revenue, 6.20% due 1/1/06 (Tacoma Public Aa1/AA- 605,132
Utilities)
1,345,000 Washington Health Care Facilities Authority Pooled Equipment Series 1992-A, 7.35% due A3/NR 1,374,267
6/1/02 (Dominican Health Project)
1,140,000 Washington Public Power Supply System Project #3 Ref. Rev., 0% due 7/1/08 Aa1/AA- 707,951
3,500,000 Washington Public Power Supply System Project 1 Ref. Rev., 5.30% due 7/1/02 Aa1/AA- 3,631,355
2,000,000 Washington Public Power Supply System Project 1 Ref. Rev., 6.50% due 7/1/02 Aa1/AA- 2,159,100
850,000 Washington Public Power Supply System Project 1 Ref. Rev., 6.50% due 7/1/03 Aa/AA 917,362
250,000 Washington Public Power Supply System Project 2 Ref. Rev., 7.50% due 7/1/02 Aa1/AA- 273,223
2,000,000 Washington Public Power Supply System Project 2 Ref. Rev., 7.50% due 7/1/03 Aa1/AA- 2,197,340
1,750,000 Washington Public Power Supply System Project Series 1991-A, 6.50% due 7/1/03 Aa1/AA- 1,888,688
1,655,000 Washington Public Power Supply System Series 96-A, 6.00% due 7/1/06 (Insured: MBIA) Aaa/AAA 1,819,126
1,000,000 Washington Public Power Supply System Series B, 7.25% due 7/1/00 Aa1/AA- 1,059,320
1,700,000 Washington Public Power Supply System Series B Refunding, 7.15% due 7/1/01 Aa1/AA- 1,804,159
500,000 Washington Public Power Supply System Series C, 7.20% due 7/1/99 Aa1/AA- 516,460
1,040,000 Washington Public Power Supply System Series G Project 1 Rev., 7.15% due 7/1/01 Aa1/AA- 1,103,721
550,000 Washington State Certificates of Participation State Equipment Series A, 6.40% due 4/1/00 Aa3/AA- 570,482
305,000 Washington State Certificates of Participation State Equipment Series A, 6.50% due A1/A+ 314,251
10/1/01
500,000 Washington State Health Care Facilities Authority Rev., 6.20% due 2/15/01 (Sacred Heart NR/AA- 523,190
Medical Center, Spokane Project)
West Virgin (1.10%)
679,679 Marion County SFMR Series 1992, 7.75% due 7/10/11 NR/NR 731,443
5,000,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 5.77% due Aaa/AAA 5,142,750
5/15/01 (Insured: FGIC) Inverse Floater)
2,500,000 West Virginia Parkway Economic Development Tourism Authority Series 1993, 5.87% due Aaa/AAA 2,588,975
5/15/02 (Insured: FGIC) (Inverse Floater)
2,000,000 West Virginia Statewide Commission Lottery Revenue Series 1997-A, 5.50% due 7/1/05 Aaa/AAA 2,132,600
(Insured: MBIA)
Wisconsin (1.50%)
490,000 Cady Small Business Pollution Control Revenue Refunding Series 1992, 6.20% due 4/1/00 NR/NR 500,226
(Summit Cheese Project; Guaranteed: SBA)
1,000,000 Eau Claire Area School District, 7.625% due 4/1/04 A1/NR 1,160,810
1,290,000 Merrill Area Common Public School Refunding, 6.50% due 4/1/06 (Insured: FSA) NR/AAA 1,452,682
3,000,000 Wisconsin Health & Educational Facilities Authority, 5.00% due 8/15/98 (Sorrowful Mother NR/AA- 3,004,980
Project)
3,045,000 Wisconsin Health & Educational Facilities Authority, 5.75% due 11/15/01 (Insured: FSA) Aaa/AAA 3,198,773
800,000 Wisconsin Health & Educational Facilities Authority, 5.90% due 8/15/05 (Wheaton Aaa/AAA 868,496
Francisan Services Inc. Project; Insured: MBIA)
1,500,000 Wisconsin Health & Educational Facilities Authority Series 1992, 5.50% due 8/15/01 Aaa/AAA 1,560,045
(Wheaton Francisan Services Inc. Project; Insured: MBIA)
1,045,000 Wisconsin Health & Educational Facilities Authority Series 1993, 5.00% due 2/15/99 Aaa/AAA 1,053,820
(Lacrosse Project; Insured: FSA)
715,000 Wisconsin St Health And Educational Facilities Authority Revenue, 5.25% due 12/15/06 Aaa/AAA 748,776
(United Health Group Incorporated; Insured: AMBAC)
755,000 Wisconsin St Health And Educational Facilities Authority Revenue, 5.25% due 12/15/07 Aaa/AAA 789,919
(United Health Group Incorporated; Insured: AMBAC)
Wyoming (0.20%)
1,273,128 Evanston Industrial Development Revenue Series 1983, 9.90% due 4/1/04 (Wybanco Project; A2*/NR 1,323,734
LOC: Texas Commerce Bank)
1,000,000 Wyoming Student Loan Corporation Revenue, 6.25% due 12/1/99 NR/AA 1,031,940
TOTAL INVESTMENTS (100%) (Cost $925,947,705)** $ 957,010,125
<FN>
See notes to financial statements.
</FN>
</TABLE>
