<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders................................ 1
Performance Results................................... 3
Performance Perspective............................... 4
Portfolio Management Review........................... 5
Portfolio of Investments.............................. 7
Statement of Assets and Liabilities................... 21
Statement of Operations............................... 22
Statement of Changes in Net Assets.................... 23
Financial Highlights.................................. 24
Notes to Financial Statements......................... 26
Report of Independent Accountants..................... 29
</TABLE>
HYM AR 1/96
<PAGE>
LETTER TO SHAREHOLDERS
[PHOTO OF] DENNIS J. MCDONNELL AND DON G. POWELL
January 12, 1996
Dear Shareholder:
The past twelve months have been very positive for most investors. Both the
fixed-income and equity markets have made considerable gains during the period
ended November 30, 1995.
The year serves as a reminder of just how quickly markets can move and how
difficult it can be to predict the timing of those movements. Moreover, this
year reinforces the importance of maintaining a long-term perspective and
reaffirms the principle that it is time--not timing--that leads to investment
success.
ECONOMIC OVERVIEW
Although our nation's economy expanded at an unexpectedly robust pace during
the third quarter, economic growth in general slowed considerably in 1995.
This slowdown is largely due to the Federal Reserve Board's successful efforts
to contain inflationary pressures through a series of short-term rate
increases in 1994. However, mindful of recessionary pressures in a slower
economic environment, the Fed reversed its trend of raising interest rates by
lowering short-term rates twice during the year, most recently in December by
one-quarter percent.
Because the Fed's monetary initiatives had taken hold without driving the
economy into a recession, the financial markets, particularly stocks, rallied
through much of the year and even reached new market highs. With slowing
growth, interest rates declined and the value of many fixed-income investments
rose (bond yields and prices move in opposite directions). For example, the
yield on 30-year Treasury securities fell from 7.88 percent at the end of
December 1994 to 6.22 percent at the end of November 1995, while its price
rose more than 22 percent. Likewise, the yield on the Bond Buyer's Municipal
Bond Index fell from 7.28 percent at the end of December to 5.74 percent at
the end of November. Although municipal bond yields have declined, they are
still offering competitive yields, particularly to those investors in higher
tax brackets.
ECONOMIC OUTLOOK
Although current economic data continue to send mixed signals, we anticipate
the economy will grow at an annual rate of 2 to 3 percent through the first
half of 1996 and inflation will run under 3 percent.
Based upon a generally modest growth and low inflation environment, we
believe the outlook for fixed-income markets, including municipal bonds, is
positive. As interest rates fall in response to a slowing economy, we believe
yields on short-term municipal bonds will continue to move significantly lower
than long-term municipal bonds. Additionally, a steepening of the municipal
yield curve would likely increase investor demand for long-term municipal
bonds and help to boost market prices. Long-term municipal bond prices will
also benefit from the combination of expected low supply of new municipal bond
issues and increased demand driven by scheduled bond maturities.
While there has been varied speculation about the impact of tax reform, no
one is certain about what will finally happen. Consequently, in the near term,
the municipal market may continue to experience periodic market fluctuations
as various proposals come to the forefront. However, in the long term, we
believe the municipal market will remain an attractive investment choice for
investors seeking a high level of current income. We will continue to keep a
close watch over any new developments and evaluate the potential impact they
may have on your investment.
1
Continued on page two
<PAGE>
On the following pages, you can read about your Fund's performance for the
period, as well as portfolio management's outlook for the Fund in the coming
months. We hope that you will find the information contained in the question-
and-answer section helpful.
Once again, thank you for your continued confidence in your investment with
Van Kampen American Capital and for the privilege of working with you in
seeking to reach your financial goals.
Sincerely,
[SIGNATURE OF] [SIGNATURE OF]
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Asset Management, Inc. Asset Management, Inc.
2
<PAGE>
PERFORMANCE RESULTS FOR THE PERIOD ENDED NOVEMBER 30, 1995
VAN KAMPEN AMERICAN CAPITAL HIGH YIELD MUNICIPAL FUND
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
<S> <C> <C> <C>
TOTAL RETURNS
One-year total return based on NAV1................. 14.65% 13.89% 13.79%
One-year total return2.............................. 9.22% 9.89% 12.79%
Five-year average annual total return2.............. 7.43% N/A N/A
Life-of-Fund average annual total return2........... 6.94% 6.17% 5.80%
Commencement Date................................... 01/02/86 07/20/92 12/10/93
DISTRIBUTION RATES AND YIELD
Distribution Rate3.................................. 6.26% 5.82% 5.83%
Taxable Equivalent Distribution Rate4............... 9.78% 9.09% 9.11%
SEC Yield5.......................................... 5.74% 5.29% 5.30%
</TABLE>
N/A = Not Applicable
1Assumes reinvestment of all distributions for the period and does not include
payment of the maximum sales charge (4.75% for A shares) or contingent deferred
sales charge for early withdrawal (4% for B shares and 1% for C shares).
2Standardized total return. Assumes reinvestment of all distributions for the
period and includes payment of the maximum sales charge (A shares) or
contingent deferred sales charge for early withdrawal (B shares and C shares).
3Distribution Rate represents the monthly annualized distributions of the Fund
at the end of the period and not the earnings of the Fund.
4Taxable equivalent calculations reflect a federal income tax rate of 36%.
5SEC Yield is a standardized calculation prescribed by the Securities and
Exchange Commission for determining the amount of net income a portfolio should
theoretically generate for the 30-day period ending as shown above.
See the Prior Performance section of the current prospectus. Past performance
does not guarantee future results. Investment return and net asset value will
fluctuate with market conditions. Fund shares, when redeemed, may be worth
more or less than their original cost.
3
<PAGE>
PUTTING YOUR FUND'S PERFORMANCE IN PERSPECTIVE
As you evaluate your progress toward achieving your financial goals, it is
important to track your investment portfolio's performance at regular inter-
vals. A good starting point is a comparison of your investment holdings to an
applicable benchmark, such as a broad-based market index. Such a comparison
can:
. Illustrate the general market environment in which your investments are
being managed
. Reflect the impact of favorable market trends or difficult market condi-
tions
. Help you evaluate the extent to which your Fund's management team has re-
sponded to the opportunities and challenges presented to them over the
period measured
For these reasons, you may find it helpful to review the chart below, which
compares your Fund's performance to that of the Lehman Brothers Municipal Bond
Index over time. As a broad-based, unmanaged statistical composite, this index
does not reflect any commissions or fees which would be incurred by an in-
vestor purchasing the securities it represents. Similarly, its performance
does not reflect any sales charges or other costs which would be applicable to
an actively managed portfolio, such as that of the Fund.
[GRAPH CHART OF] GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT [APPEARS HERE]
Van Kampen American Capital High Yield Municipal Fund vs. Lehman
Brothers Municipal Bond Index
(January 1986 through November 1995)
[FUND'S TOTAL RETURN
1 YEAR AVG. ANNUAL = 9.22%
5 YEAR AVG. ANNUAL = 7.43%
INCEPTION AVG. ANNUAL = 6.94%
_____ VKAC HIGH YIELD MUNICIPAL FUND NOV 1995 __ $19,447
- - - LEHMAN BROTHERS MUNICIPAL BOND INDEX NOV 1995 -- $23,973]
The above chart reflects the performance of Class A shares of the Fund. The
performance of Class A shares will differ from that of other share classes of
the Fund because of the difference in sales charges and/or expenses paid by
shareholders investing in the different share classes. The Fund's performance
assumes reinvestment of all distributions for the period ended November 30,
1995, and includes payment of the maximum sales charge (4.75% for A shares).
While past performance is not indicative of future performance, the above
information provides a broader vantage point from which to evaluate the
discussion of the Fund's performance found in the following pages.
4
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN AMERICAN CAPITAL HIGH YIELD MUNICIPAL FUND
The following is an interview with the management team of Van Kampen American
Capital High Yield Municipal Fund. The team is led by Wayne D. Godlin,
portfolio manager, and Peter W. Hegel, executive vice president for fixed-
income investments.
Q WHAT MARKET CONDITIONS HAD THE GREATEST IMPACT ON THE FUND'S PERFORMANCE
DURING THE FISCAL YEAR ENDED NOVEMBER 30, 1995?
A While 1994 was generally a down year for the bond markets, municipal bonds
experienced a significant rally in 1995. The rally began early in the year
as the financial markets anticipated an interest rate cut by the Federal Re-
serve Board and remained strong throughout the reporting period. As interest
rates declined, bond values increased (bond yields and prices move in opposite
directions) resulting in good performance for the municipal market.
The overall supply and demand relationship has also remained positive for
this market. The availability of municipal bonds (supply) has remained fairly
low, while demand remained relatively steady throughout the reporting period.
However, more recently, demand has waned somewhat due in part to uncertainty
about tax reform. We believe the general supply and demand ratio still favors
the market and should continue to contribute to its overall price stability.
Q HOW DID YOU POSITION THE FUND IN RESPONSE TO THE EVENTS OF THE PAST YEAR?
A During the year, we did not reposition the Fund in any major way. Our fo-
cus remained on maintaining a relatively stable net asset value, while de-
livering a competitive level of current income.
In staying consistent with the Fund's long-term investment strategy, the
portfolio maintained its weighting in non-rated municipal bond issues
(approximately 72 percent) which helped to bolster the Fund's yield throughout
the year. These securities tend to provide higher yields than investment grade
bonds, while still meeting our stringent internal standards for credit
quality.
To help reduce overall risk, the portfolio remained widely diversified among
many sectors and issues. Also, we maintained a focus on small- to mid-size
issues, an area where we felt we could add the most value to our shareholders
through research. Our extensive research capabilities help to identify the
best values among these smaller issues. We continued to hold a significant
amount of our holdings in health care and hospitals (currently about 20
percent), sectors in which our research abilities have proven especially
strong. We also sought to balance the portfolio's risk from non-rated
securities by holding a large number of them.
The Fund's average weighted maturity remained in the 20-year range, and at
the end of the reporting period its duration was within the 6- to 7-year range
we have maintained throughout the year (duration is a measure of how a bond
will respond to changes in interest rates). By utilizing our disciplined
management approach of a moderately short duration along with strict internal
credit standards, we were able to provide shareholders with impressive long-
term returns over the past year. Keep in mind that past performance is not
necessarily indicative of future results.
[PIE CHART OF] PORTFOLIO COMPOSITION BY CREDIT QUALITY AS A PERCENTAGE OF
NET ASSETS AS OF NOVEMBER 30, 1995
- --Other Net Assets 3% Non-Rated 72%
- --AAA 1% --AA 3% --A 2% --BAA 12% BA & LOWER 7%
5
<PAGE>
Q HOW DID THE FUND PERFORM DURING THE FISCAL YEAR ENDED NOVEMBER 30, 1995?
A The Fund has maintained its record of consistently high performance. In
fact, it earned Morningstar's highest five-star rating in its Municipal
Bond-National Category which contains a total of 240 funds. This five-star
rating is for the period beginning November 30, 1990 through November 30,
1995. Morningstar is an independent company that reviews and assigns quality
ratings to mutual funds.*
Just as importantly, the Fund continued to provide investors with an
attractive level of tax-free income. At its current annualized dividend level
of $0.735 per share, the Fund provides shareholders with a tax-free
distribution rate of 6.26 percent/3/ (Class A shares) as of November 30, 1995.
At this distribution rate, the Fund provides shareholders in the 36 percent
federal income tax bracket with a yield equivalent to a taxable investment
earning 9.78 percent/4/.
Overall, for the twelve months ended November 30, 1995, the Fund's total
return was 14.65 percent/1/ (for Class A shares based on net asset value). By
comparison, the Lehman Brothers Municipal Bond Index earned a total return of
18.90 percent over the same one-year period. The Index is a broad-based
unmanaged index of municipal bonds and does not reflect any commissions or
fees that would be paid by an investor purchasing the securities it
represents.
During the 1995 market rally, this Fund did not offer the dramatic upside
potential that some of the other municipal bond funds with different
objectives showed. That's because this Fund is designed to be less responsive
to interest rate changes, and therefore should not react as strongly in a bull
market. Nevertheless, the Fund's performance was strong. And our careful
approach--intended to help reduce volatility--has consistently resulted in
impressive long-term results throughout the markets' ups and downs. (Please
refer to the chart on page three for additional Fund performance results.)
Q WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET FOR THE NEXT YEAR AND MORE
SPECIFICALLY, FOR THE FUND ITSELF?
A Moving into 1996, we are looking forward to continued positive opportuni-
ties in the municipal bond market and plan to maintain a focus on higher-
yielding, non-rated securities diversified among various municipal bond
issuers to seek consistent overall performance.
Going forward, interest rates should remain low, although we don't expect
them to drop dramatically. However, with slow economic growth, low
inflationary pressures, and low-to-slightly declining interest rates, the U.S.
economic environment should continue to remain favorable for the municipal
bond market.
On the political front, talk of tax reform is likely to continue throughout
the year, and promises to be one of the most important issues of the 1996
Presidential election. Given this, as various proposals come to the forefront,
investors should expect short-term market fluctuations--as we saw during the
debate over the U.S. health care system. We will keep a close watch over any
new developments, and adjust the portfolio accordingly. We continue to believe
municipal bonds are currently offering very attractive yields relative to
Treasuries and will continue to represent attractive buying opportunities.
Q DOES THE FUND REMAIN CLOSED TO NEW INVESTORS? WHY? AND, WILL IT REOPEN IN
1996?
A At the time of this report, the Fund remains closed. Briefly, that's due
to the fact that this portfolio follows a "managed growth" policy. That
means we carefully monitor cash flow into the Fund, making sure that the mar-
ket's current supply and demand balance will allow us to effectively invest
the assets to achieve the Fund's objectives. When there appears to be more
cash coming in than we can effectively invest, it is in the best interest of
current shareholders to temporarily close the Fund.
However, we may consider reopening the Fund to new investors for a brief
time early in January 1996. Of course, current shareholders may add to their
investments at any time.
[SIGNATURE OF] [SIGNATURE OF]
Peter W. Hegel Wayne D. Godlin
Executive Vice President Portfolio Manager
Fixed Income Investments
*This five-star rating is a composite rating. The ratings for the 3 and 5 year
periods are also five stars. Morningstar is an independent mutual fund
performance monitor. Its rating of one star (lowest) and five stars (highest)
is based on a fund's historic risk/reward ratio compared with similar funds
for 3, 5 and 10 year periods including all sales charges and fees. 10% of the
funds in an asset class receive a five star rating. Fund performance is
relative to the 3-month treasury bill monthly return.
6
Please see footnotes on page three.
<PAGE>
PORTFOLIO OF INVESTMENTS
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 97.0%
EDUCATION 1.7%
$ 2,660 Montgomery County, Pennsylvania,
Industrial Development Authority
Rev., 1st Mtg. (Meadowood Corp.
Project)......................... 7.750% 09/01/14 $ 2,833,405
5,000 New Hampshire, Higher Education &
Health (Daniel Webster College
Issue)........................... 7.625 07/01/16 5,153,250
1,000 New Jersey, State Educational
Facilities, Series A............. 7.250 07/01/25 1,026,720
1,500 New York City, New York,
Industrial Development Agency,
Marymount-Manhattan College...... 7.000 07/01/23 1,586,745
645 Pennsylvania, State Higher
Educational Facilities Authority,
College and University Rev.,
(College of Science &
Agriculture)..................... 6.900 04/01/14 671,510
1,000 Pennsylvania, State Higher
Educational Facilities Authority,
College and University Rev.,
(College of Science &
Agriculture)..................... 7.000 04/01/22 1,037,090
1,000 Vermont, Educational & Health
Buildings Finance Authority...... 7.150 04/15/14 1,078,790
------------
13,387,510
------------
GENERAL OBLIGATIONS 6.6%
1,000 Arrowhead Metropolitan District,
Colorado......................... 8.125 12/01/11 1,071,120
2,000 Beaver Creek Metropolitan
District, Colorado............... 9.250 12/01/05 2,128,180
1,060 Berry Creek Metropolitan
District, Colorado, Refunding.... 7.300 12/01/12 1,101,075
1,000 Brush Creek Village, Colorado,
Water District................... 8.875 11/15/09 1,217,280
6,205 California State, Veterans Bonds. 7.375 04/01/19 6,336,732
1,250 Cordillera Metropolitan District,
Colorado, Eagle County........... 8.250 12/01/13 1,360,662
1,650 Dove Valley Metropolitan
District, Arapahoe County,
Colorado......................... 9.500 12/01/08 1,719,432
4,000 Fairlake Metropolitan District,
City & County of Denver,
Colorado,
Series 1991...................... 9.625 12/01/10 4,730,280
2,000 Greenwood Metropolitan District,
Colorado......................... 7.300 12/01/06 2,132,780
1,500 Greenwood South Metropolitan,
Colorado......................... 7.250 12/01/06 1,613,910
2,000 Illinois, Development Finance
Authority, (Debt Restructure,
East St. Louis).................. 7.375 11/15/11 2,184,240
1,000 Landmark Metropolitan District,
Colorado......................... 8.750 12/01/05 1,014,360
1,500 Michigan State, Strategic Fund
(Great Lakes Pulp & Fiber
Project)......................... 10.250 12/01/16 1,618,905
3,000 Mountain Village Metropolitan
District, San Miguel County,
Colorado,
Pre-refunded, 12/01/98........... 11.000 12/01/07 3,635,250
2,000 New York City, New York, Series
C................................ 7.200 08/15/13 2,126,200
2,000 New York City, New York, Series
C................................ 7.200 08/15/15 2,121,240
500 Panorama Metropolitan District,
Colorado, Series B............... 9.000 12/01/09 535,125
265 Panorama Metropolitan District,
Colorado......................... 9.500 12/01/05 274,691
2,155 Section 14 Metropolitan District,
Jefferson County, Colorado....... 9.000 12/01/09 2,585,440
146 Skyland Metropolitan District,
Colorado......................... * 12/01/08 102,550
1,500 Southtech Metropolitan District,
Colorado, Refunding.............. 6.875 12/01/11 1,575,930
2,175 Southtech Metropolitan District,
Colorado, Refunding.............. 9.500 12/01/11 2,424,473
660 Superior Metropolitan District
No. 2, Colorado, Refunding,
Series A......................... 7.250 12/01/02 690,512
840 Superior Metropolitan District
No. 2, Colorado, Refunding,
Series A......................... 7.750 12/01/13 899,774
1,210 University of the Virgin Islands,
Public Finance Authority, Series
A................................ 7.500 10/01/09 1,308,797
1,965 University of the Virgin Islands,
Public Finance Authority, Series
A................................ 7.650 10/01/14 2,122,672
3,000 Virgin Islands, Public Finance
Authority........................ 7.250 10/01/18 3,200,970
------------
51,832,580
------------
HEALTH CARE 3.9%
750 Chisago City, Minnesota, Health
Facilities....................... 7.300 07/01/25 755,760
1,000 Colorado Health Facilities
Authority Rev., Cleo Wallace
Center Project................... 7.000 08/01/15 1,040,710
</TABLE>
7
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 400 Colorado, Health Facilities
Authority Rev., Mile High
Transplant Bank.................. 8.500% 06/01/07 $ 421,756
2,000 Colorado, Health Facilities
Authority Rev., Refunding (Shalom
Park Project).................... 7.250 12/15/25 2,046,260
1,650 Colorado, Health Facilities
Authority Rev., Refunding (Shalom
Park Project).................... 7.125 12/15/17 1,690,177
1,225 Connecticut State, Development
Authority, Health Care Rev.
(Independent Living Project)
Series B......................... 8.000 07/01/17 1,293,637
2,415 Connecticut State, Development
Authority Rev., 1st Mtg.
(Connecticut Baptist Homes, Inc.
Project)......................... 8.750 09/01/12 2,624,356
1,500 Connecticut State, Development
Authority Rev., 1st Mtg.
(Connecticut Baptist Homes, Inc.
Project)......................... 9.000 09/01/22 1,645,515
1,950 Connecticut State, Development
Authority Rev. (Jerome Home
Project)......................... 8.000 11/01/19 2,041,084
1,350 Doylestown, Pennsylvania,
Hospital Authority Rev. (Pine
Run) Series A.................... 7.200 07/01/23 1,399,963
1,000 Idaho, Health Facilities
Authority, Rev. (Bannock Regional
Medical Center Project).......... 6.375 05/01/17 1,003,340
2,470 Illinois, Development Finance
Authority, Health Facilities..... 7.125 03/01/10 2,569,837
1,500 Maine, Veterans Homes, Rev....... 7.750 10/01/20 1,518,285
1,495 Massachusetts State, Health &
Educational Facilities Authority,
Rev. (Independent Living)........ 8.100 07/01/18 1,576,283
1,190 Massachusetts State, Industrial
Finance Rev...................... 7.100 11/15/18 1,202,626
2,425 New Hampshire, Higher Educational
& Health Care, Private Placement,
purchased 09/01/93............... 7.250 09/01/23 2,458,416
560 Valparaiso, Indiana, Economic
Development Rev.................. 7.300 01/01/02 606,094
980 Valparaiso, Indiana, Economic
Development Rev.................. 7.500 01/01/07 1,071,493
1,405 Valparaiso, Indiana, Economic
Development Rev.................. 7.750 01/01/12 1,539,683
2,045 Valparaiso, Indiana, Economic
Development Rev.................. 8.000 01/01/17 2,246,044
------------
30,751,319
------------
HOSPITALS 15.9%
1,945 Allegheny County, Pennsylvania,
Hospital Development Authority
Rev.............................. 7.500 02/01/10 1,999,499
3,120 Allegheny County, Pennsylvania,
Hospital Development Authority
Rev.............................. 7.875 02/01/20 3,234,442
1,500 Athens County, Ohio, Hospital
Facilities Rev. (O'Bleness
Memorial Hospital Project)....... 7.100 11/15/23 1,481,970
1,500 Bay County, Florida, Hospital
Systems Rev...................... 8.000 10/01/12 1,672,740
500 Bay County, Florida, Hospital
Systems Rev...................... 8.000 10/01/19 557,580
1,085 Bell County, Texas, Health
Facilities Development Corp.
(King's Daughters Hospital) ..... 9.250 07/01/08 1,210,784
3,150 Clark County, Ohio, Hospital
Improvement Rev., Refunding
(Community Hospital) Series A.... 9.375 04/01/08 3,271,243
1,945 Clearfield, Pennsylvania,
Hospital Authority Rev.
(Clearfield Hospital Project)
Series 1994...................... 6.875 06/01/16 2,037,524
2,500 Connecticut State, Health &
Educational Facilities Rev.
(Tolland County Health Care,
Inc.) Series A................... 9.200 07/01/21 2,784,125
3,000 Delaware State, Economic
Development Authority Rev.
(Osteopathic Hospital Association
of Delaware) Series A............ 6.900 01/01/18 2,917,080
975 Delaware State, Economic
Development Authority Rev.
(Osteopathic Hospital Association
of Delaware) Series A............ 9.500 01/01/22 1,025,037
400 Delaware State, Economic
Development Rev. (Gilpin Hall
Project)......................... 7.375 07/01/15 415,764
1,000 Delaware State, Economic
Development Rev. (Gilpin Hall
Project)......................... 7.625 07/01/25 1,045,330
1,000 Dickinson County, Michigan,
Memorial Hospital................ 8.000 11/01/14 1,059,690
2,090 District of Columbia, Hospital,
Series A ........................ 7.125 08/15/19 2,111,255
1,500 Glendale, California, Hospital
Rev., Refunding (Glendale
Memorial Hospital & Health)
Series A......................... 9.000 11/01/17 1,609,935
1,250 Illinois, Health Facilities
Authority Rev. (St. Elizabeths
Hospital)........................ 7.625 07/01/10 1,324,425
</TABLE>
8
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,500 Illinois, Health Facilities
Authority Rev. (St. Elizabeths
Hospital)...................... 7.750% 07/01/16 $ 1,580,700
3,000 Illinois, Health Facilities
Authority Rev., Series A....... 7.400 08/15/23 2,947,530
2,645 Illinois, Health Facilities
Authority Rev., Series A....... 6.750 08/15/23 2,526,530
1,000 Jackson County, Oklahoma,
Memorial Hospital Authority
Rev. (Jackson Memorial
Hospital)...................... 9.000 08/01/15 1,099,110
(/1/)1,500 Jackson Park Hospital
Foundation, Chicago, Illinois
(Jackson Park Hospital)........ 9.000 03/01/05 1,239,375
500 Leflore County, Oklahoma,
Hospital Authority Improvement
Rev............................ 9.400 05/01/06 544,585
3,305 Loves Park, Illinois, 1st Mtg.
Rev. (Hossier Care Project)
Series A....................... 9.750 08/01/19 3,583,645
1,000 Lowndes County, Mississippi,
Hospital Rev., Refunding
(Golden Triangle Medical
Center)........................ 8.500 02/01/10 1,091,030
460 Maine, Health & Higher
Educational Facilities
Authority Rev. (Franklin
Memorial Hospital)............. 9.875 07/01/13 514,257
3,000 Massachusetts State, Health &
Educational Facilities
Authority Rev.,
Series B (Milford-Whitinsville
Regional Project).............. 7.750 07/15/17 3,065,670
745 Massachusetts State, Health &
Educational Facilities
Authority Rev.
(St. Annes Hospital) Series A.. 9.250 07/01/05 742,556
2,000 Massachusetts State, Health &
Educational Facilities
Authority Rev.
(St. Annes Hospital) Series A.. 9.375 07/01/14 2,002,840
500 Massachusetts State, Industrial
Finance Agency, Rev.
(Atlanticare Medical Center)
Series B....................... 10.125 11/01/14 560,255
500 Michigan State, Hospital
Financing Authority, Series A.. 7.500 10/01/07 525,170
1,500 Michigan State, Hospital
Financing Authority, Series A.. 8.100 10/01/13 1,597,470
4,015 Michigan State, Hospital
Finance Authority Rev.,
Refunding (Saratoga Community
Hospital)...................... 8.750 06/01/10 4,439,466
2,400 Michigan State, Hospital
Finance Authority Rev.,
Refunding (Gratiot Community
Hospital) Series A............. 8.750 10/01/07 2,537,472
2,000 Michigan State, Hospital
Finance Authority Rev.,
Refunding (Sinai Hospital)..... 6.625 01/01/16 1,982,320
1,075 Missouri State, Health &
Educational Facilities
(Bethesda Health Group, Inc.
Project) Series A ............. 7.500 08/15/12 1,119,537
1,500 Missouri State, Health &
Educational Facilities, Series
A.............................. 6.625 08/15/05 1,519,605
805 Montgomery County, Texas,
Health Facilities Development
Corp., Hospital Mortgage Rev.
(Woodlands Medical Center
Project)....................... 8.850 08/15/14 882,369
2,000 New Hampshire, Higher
Educational & Health Facility
Authority, Hospital Rev. ...... 7.500 06/01/05 2,230,240
1,440 New Hampshire, Higher
Educational & Health Facility
Authority Hospital Rev.
(Monadnock Community Hospital),
Series 1990.................... 9.125 10/01/20 1,644,365
2,500 New Jersey, Health Care
Facilities Authority Rev.
(Raritan Bay Medical Center)... 7.250 07/01/14 2,645,625
2,975 Newark-Wayne, New Jersey,
Community Hospital, Rev.,
Refunding & Improvement, Series
A.............................. 7.600 09/01/15 3,215,202
1,500 Newton, Kansas, Hospital Rev.,
Series A....................... 7.375 11/15/14 1,598,670
1,000 Newton, Kansas, Hospital Rev.,
Series A....................... 7.750 11/15/24 1,090,110
1,250 Northeast Hospital, Texas,
Rev., Series B................. 7.250 07/01/22 1,308,238
2,000 Ohio State, Refunding, 1st Mtg.
(Swifton Commons).............. 8.125 12/01/15 2,076,600
750 Philadelphia, Pennsylvania,
Hospitals & Higher Education
Children's Seashore House,
Series B....................... 7.000 08/15/12 789,810
1,900 Philadelphia, Pennsylvania,
Hospitals & Higher Education
Facilities Authority, Hospital
Rev. (Roxborough Memorial
Hospital) Series 2............. 7.250 03/01/24 1,921,584
1,025 Pinal County, Arizona,
Industrial Development
Authority (Casa Grande Regional
Medical Center Project) Series
A.............................. 8.125 12/01/22 1,064,258
</TABLE>
9
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 475 Pinal County, Arizona, Industrial
Development Authority (Casa
Grande Regional Medical Center
Project) Series B................ 8.125% 12/01/22 $ 493,193
695 Pinal County, Arizona, Industrial
Development Authority (Casa
Grande Regional Medical Center
Project)......................... 9.000 12/01/13 718,998
500 Randolph County, West Virginia,
Building Commission, Refunding &
Improvement (Davis Memorial
Hospital Project)................ 7.650 11/01/21 541,360
3,255 Rusk County, Texas, Health
Facilities Corp., Hospital Rev.
(Henderson Memorial Hospital
Project)......................... 7.750 04/01/13 3,477,284
2,250 Sandusky County, Ohio, Hospital
Facility Rev., Refunding
(Memorial Hospital Project)...... 7.750 12/01/09 2,250,000
1,500 Scranton-Lackawana, Pennsylvania,
Health & Welfare Authorities Rev.
(Allied Services Rehabilitation
Hospital) Series A............... 7.125 07/15/05 1,590,945
3,000 Scranton-Lackawana, Pennsylvania,
Health & Welfare Authorities Rev.
(Allied Services Rehabilitation
Hospital) Series A............... 7.375 07/15/08 3,195,330
300 Scranton-Lackawana, Pennsylvania,
Health & Welfare Authorities Rev.
(Moses Taylor Hospital Project)
Series B......................... 8.250 07/01/09 326,670
400 Selma, Alabama, Special Care
Facilities Financing Authority
Hospital Rev. (Vaughan Regional
Medical Center Project).......... 9.500 06/01/14 443,272
3,000 Somerset County, Pennsylvania,
Hospital Authority............... 7.500 03/01/17 3,125,160
1,000 South Dakota State, Health and
Educational Authority Rev. (Huron
Regional Medical Center)......... 7.000 04/01/10 1,021,990
1,000 South Dakota State, Health and
Educational Authority Rev. (Huron
Regional Medical Center)......... 7.250 04/01/20 1,040,420
2,000 Southwestern Illinois,
Development Authority, Medical
Facilities Rev. (Andersen
Hospital Project) Series A....... 7.000 08/15/12 2,077,540
3,000 Tulsa, Oklahoma, Industrial
Authority, Hospital Rev. (Tulsa
Regional Medical Center)......... 7.200 06/01/17 3,243,960
1,335 Tyler, Texas, Health Facilities
Development Corp. (East Texas
Medical Center Regional Health)
Series A......................... 6.625 11/01/11 1,374,997
700 Vermont, Educational & Health
Buildings Financing Agency Rev.
(Northwestern Medical Center).... 9.750 09/01/18 783,167
1,000 Warren County, Pennsylvania,
Hospital Authority Rev. (Warren
General Hospital Project) Series
A................................ 6.900 04/01/11 1,038,030
2,000 Washington County, Pennsylvania,
Hospital Authority Rev.
(Canonsburg General Hospital
Project)......................... 7.350 06/01/13 1,911,180
400 Wells County, Indiana, Hospital
Authority Rev. (Caylor-Nickel
Medical Center, Inc.)............ 8.500 04/15/03 432,144
3,600 Wells County, Indiana, Hospital
Authority Rev. (Caylor-Nickel
Medical Center, Inc.)............ 8.750 04/15/12 4,085,424
790 Weslaco, Texas, Health Facilities
Development Corp., Hospital Rev.
(Weslaco Health Facility)........ 10.375 06/01/16 914,441
300 Wilmington, Delaware, Hospital
Rev. (Osteopathic Hospital,
Association of Delaware/Riverside
Hospital) Series A............... 10.000 10/01/03 352,518
500 Wilmington, Delaware, Hospital
Rev. (Osteopathic Hospital,
Association of Delaware/Riverside
Hospital) Series A............... 10.200 10/01/18 590,185
795 Wisconsin, State Health &
Educational Facilities Authority
Rev. (Hess Memorial Hospital
Association)..................... 7.200 11/01/05 799,404
2,000 Wisconsin, State Health &
Educational Facilities Authority
Rev. (Hess Memorial Hospital
Association)..................... 7.875 11/01/22 2,013,620
500 Woodward, Oklahoma, Municipal
Authority Hospital, Rev.......... 8.250 11/01/09 512,795
500 Woodward, Oklahoma, Municipal
Authority Hospital, Rev.......... 9.250 11/01/14 555,430
------------
124,354,074
------------
</TABLE>
10
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
HOUSING 12.7%
$ 2,555 Albuquerque, New Mexico,
Retirement Facilities Rev.,
Refunding (La Vida Liena
Project) Series A............. 8.850% 02/01/23 $ 2,860,987
(/1/)1,000 Atlanta, Georgia, Urban
Residential Finance Authority,
Multi-family Mtg. Rev.
(Peachtree Apartments)........ 10.500 12/01/10 930,580
1,020 Austin, Minnesota, Multi-
family Rev., Refunding (Cedars
of Austin Project)............ 7.500 04/01/17 1,049,325
2,000 Austin, Minnesota, Multi-
family Rev., Refunding (Cedars
of Austin Project)............ 7.500 04/01/18 2,050,000
2,500 Berks County, Pennsylvania,
Municipal Authority Rev.
(Phoebe Berks Village, Inc.
Project)...................... 8.250 05/15/22 2,671,900
1,605 Brevard County, Florida,
Health Facilities Authority
Rev........................... 7.375 11/15/04 1,685,298
2,200 Brevard County, Florida,
Health Facilities Authority
Rev. (Courtenay Springs
Village)...................... 7.750 11/15/17 2,407,658
1,955 Brooklyn Center, Minnesota,
Multi-family, Series A........ 7.400 12/01/15 1,981,881
1,220 Brooklyn Center, Minnesota,
Multi-family, Series A........ 7.500 06/01/25 1,236,775
1,500 Colorado, Health Facilities
Authority Rev................. 9.000 01/01/25 1,620,195
250 Harris County, Texas, Housing
Finance Corp., Single Family
Mtg. Rev...................... 9.875 03/15/14 250,415
300 Harris County, Texas, Housing
Finance Corp., Single Family
Mtg. Rev. Series 1983-A....... 10.125 07/15/03 300,678
1,450 Harris County, Texas, Housing
Finance Corp., Single Family
Mtg. Rev. Series 1983-A....... 10.375 07/15/14 1,452,827
3,505 Houston, Texas, Housing
Finance Corp.................. 10.375 12/15/13 3,554,771
2,770 Iowa Finance Authority, Multi-
family Rev., Refunding (Park
West Project)................. 8.000 10/01/23 2,877,060
1,120 Jefferson County, Missouri,
Industrial Development
Authority, 1st Mtg. Rev.
(Cedar Hills Retirement
Village Project).............. 12.000 12/01/15 1,157,139
1,250 Lebanon County, Pennsylvania,
Health Facilities Authority
Rev. (Church of Christ Homes
Project)...................... 7.000 10/01/14 1,284,812
1,250 Lebanon County, Pennsylvania,
Health Facilities Authority
Rev. (Church of Christ Homes
Project)...................... 7.250 10/01/19 1,279,525
690 Massachusetts, State
Industrial, 1st Mtg........... 7.250 07/01/07 704,173
1,410 Massachusetts, State
Industrial, 1st Mtg........... 7.400 07/01/12 1,438,834
1,530 Massachusetts, State
Industrial, 1st Mtg........... 7.500 07/01/17 1,564,731
1,950 Minneapolis, Minnesota, Health
Care Facilities Authority
Rev., Ebenezer Society
Project, Series A............. 7.200 07/01/23 1,963,221
3,780 Montgomery County,
Pennsylvania, Industrial
Development Authority, Rev.
(Assisted Living Facilities).. 8.250 05/01/23 4,115,513
3,040 New Brighton, Minnesota,
Rental Housing Rev............ 7.500 10/01/17 3,172,970
4,535 New Hampshire, State Housing
Finance Authority, Series A,
FHA........................... 8.500 07/01/14 4,784,425
910 New Hope, Minnesota, Multi-
family Rev., Refunding
(Broadway Lanel Project)...... 7.750 09/01/07 945,263
2,320 New Hope, Minnesota, Multi-
family Rev., Refunding
(Broadway Lanel Project)...... 8.000 09/01/18 2,369,300
(/2/)1,240 New Jersey Economic
Development Authority, 1st
Mtg. Gross Rev., Dover
Residential Healthcare
Facilities.................... 13.375 11/01/14 869,265
1,000 North Canton, Ohio, Health
Care Facilities Rev.
(Waterford at St. Luke
Project)...................... 8.625 11/15/21 1,085,970
2,595 North Miami, Florida, Health
Care Facilities Rev. (Imperial
Club Project) Series A........ 9.250 01/01/13 2,901,028
960 North St. Paul, Minnesota,
Multi-family, Refunding
(Cottages North St. Paul)..... 9.000 02/01/09 1,035,600
2,220 North St. Paul, Minnesota,
Multi-family, Refunding
(Cottages North St. Paul)..... 9.250 02/01/22 2,455,875
</TABLE>
11
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,000 North Syracuse, New York,
Housing Authority Rev. (Janus
Park Project)................. 8.000% 06/01/14 $ 1,996,160
995 Oklahoma Housing Finance
Agency, Single Family, Class
A, GNMA....................... 7.997 08/01/18 1,080,819
2,705 Orange County, Florida,
Housing Finance Authority Rev.
(Hands, Inc. Project) Series
A............................. 7.875 10/01/15 2,716,929
2,035 Orange County, Florida,
Housing Finance Authority Rev.
(Hands, Inc. Project) Series
A............................. 8.000 10/01/25 2,043,913
6,000 Rhode Island, Housing &
Mortgage, Series 1-B, FHA..... 8.400 10/01/22 6,376,140
3,105 Richmond, California,
Redevelopment Agency.......... 7.500 09/01/23 3,167,100
300 Richmond County, Georgia,
Development Authority, Nursing
Home Rev., Refunding (Beverly
Enterprises, Inc., Georgia
Project)...................... 8.750 06/01/11 339,558
6,000 Richmond, Virginia,
Redevelopment & Housing
Authority, Multi-family Mtg.
Rev, Series A................. 8.750 12/15/21 6,054,240
3,000 Ridgeland, Mississippi, Urban
Renewal (The Orchard, Ltd.
Project) Series A............. 7.750 12/01/15 3,147,180
1,000 Santa Rosa, California
(Fountaingrove Parkway
Extension).................... 7.625 09/02/19 1,030,700
750 Snowmass Village, Colorado,
Multi-family, Refunding,
Series A...................... 8.000 09/01/14 761,138
2,000 Spring Lake Park, Minnesota,
Multi-family Rev., Refunding.. 8.375 01/01/22 2,145,000
4,000 St. Charles, Illinois, Multi-
family Rev. (Wessel Court
Project)...................... 7.600 04/01/24 4,223,600
465 Sunrise, Florida, Series 86
(Sunshine Palms Adult
Congregate Living Facility)... 10.750 12/01/16 478,197
2,000 Telluride, Colorado, Housing
Authority, Housing Rev.,
Refunding (Shandoka Apartments
Project)...................... 7.875 06/01/17 2,090,720
1,500 Telluride, Colorado, Housing
Authority, Housing Rev.,
Series 1991................... 9.100 06/01/01 1,691,385
------------
99,400,773
------------
INDUSTRIAL DEVELOPMENT
REVENUE 6.0%
500 Casa Grande, Arizona,
Industrial Development
Authority, Refunding.......... 8.250 12/01/15 525,080
(/1/)2,915 Chandler, Arizona, Industrial
Development Authority Rev.
(Chandler Financial Center
Project) Series 1986.......... 9.875 12/01/16 2,477,750
875 Chandler, Arizona, Industrial
Development Authority Rev.
(Sheraton Hotel Project),
Variable Rate Note, coupon
rate as of 11/30/95........... 7.500 12/01/15 877,380
865 Fort Walton Beach, Florida,
1st Mtg. (Shoney's Inn &
Restaurant)................... 10.500 12/01/16 921,926
1,560 Gulf Shores, Alabama Rev.
(Quality Inn, Beachsiding
Project)
Series 1986................... 11.000 06/01/16 1,593,556
1,945 Harrison, Ohio, Refunding
(Harrison Avenue K Mart Corp.
Project)
Series A...................... 8.125 12/01/02 2,042,075
3,000 Hialeah Gardens, Florida
(Waterford Convalescent)
Series A...................... 8.250 12/01/14 3,182,340
1,500 Homestead, Florida (Brookwood
Gardens Center Project) Series
A............................. 8.250 12/01/14 1,639,425
3,915 Lehigh County, Pennsylvania
(Allentown Interstate Motel).. 8.000 08/01/12 4,172,529
3,000 Luzerne County, Pennsylvania,
Industrial Development
Authority, Exempt Facilities
Rev., Refunding (Pennsylvania
Gas & Water Co. Project)
Series A...................... 7.200 10/01/17 3,205,590
1,300 Marion County, Florida,
Industrial Development
Authority Rev. (Marion Ross
Corp.)........................ 11.875 08/01/11 1,315,795
800 Minneapolis, Minnesota,
Commercial Development Rev.
(Holiday Inn Metrodome
Project)...................... 10.500 06/01/03 811,000
(/1/)650 Minneapolis, Minnesota,
Community Development Agency,
Commercial Development Rev.
(Standard Mill Whitney Hotel
Project)...................... 12.000 04/01/10 513,500
1,000 New Jersey, Economic
Development Authority, Series
E (Borg Warner Corp.)......... 11.200 08/01/04 1,061,320
2,000 Philadelphia, Pennsylvania,
Industrial Development Rev.... 7.750 12/01/17 2,037,000
1,000 Pittsylvania County, Virginia,
Series A...................... 7.450 01/01/09 1,066,000
510 Pocahontas, Iowa
(International Harvester Co.). 10.250 10/01/00 528,799
</TABLE>
12
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 4,505 Port of Corpus Christi, Texas
(Valero Refining & Marketing
Co.)............................. 10.250% 06/01/17 $ 4,982,755
500 Port of Corpus Christi, Texas
(Valero Refining & Marketing Co.)
Series B......................... 10.625 06/01/08 554,590
2,000 Port of New Orleans, Louisiana
(Avondale Industries Inc.,
Project)......................... 8.250 06/01/04 2,193,060
1,000 Port of New Orleans, Louisiana
(Continental Grain Co.).......... 14.500 02/01/02 1,081,850
3,000 Port of New Orleans, Louisiana
(Continental Grain Co.)
Refunding........................ 7.500 07/01/13 3,109,560
1,000 Port of New Orleans, Louisiana
(Continental Grain Co.) Series A. 14.500 01/01/02 1,076,310
1,340 Scott County, Tennessee (Fruehauf
Corp.)........................... 10.750 01/01/09 1,430,530
3,115 St. Charles, Illinois (Tri-City
Center Project).................. 7.500 11/01/13 3,270,220
750 Vincent, Alabama, Industrial
Development Board (Shelby Motel
Group, Inc. Project)............. 10.500 09/01/16 743,715
------------
46,413,655
------------
LIFE CARE 10.0%
1,375 Atlantic Beach, Florida, Rev.,
Series A......................... 7.500 10/01/02 1,442,801
2,085 Atlantic Beach, Florida, Rev.,
Series A......................... 7.875 10/01/08 2,248,235
1,000 Chartiers Valley, Pennsylvania,
Industrial & Commercial
Development Authority (Ashbury
Health Center Project)........... 7.250 12/01/11 1,033,780
2,000 Chartiers Valley, Pennsylvania,
Industrial & Commercial
Development Authority (Ashbury
Health Center Project)........... 7.400 12/01/15 2,060,680
1,000 Chartiers Valley, Pennsylvania,
Industrial & Commercial
Development Authority, Series A.. 9.500 12/01/15 1,169,750
1,150 Cumberland County, Pennsylvania,
Muncipal Authority Rev., 1st Mtg.
(Carlisle Hospital & Health)..... 6.800 11/15/14 1,185,788
500 Fayetteville, Arkansas, Public
Facilities Board Rev.
(Butterfield Trail Village
Project) Series B................ 9.500 09/01/14 550,795
1,350 Hanover Park, Illinois, 1st Mtg.
Rev. (Windsor Park Manor
Project)......................... 9.500 12/01/14 1,465,209
1,475 Illinois, Health Facilities
Authority Rev. Covenant
Retirement Communities, Series A. 7.600 12/01/12 1,566,730
1,000 Illinois, Health Facilities
Authority Rev. Fairview Obligated
Group Project, Series A.......... 9.500 10/01/22 1,100,000
1,700 Illinois, Health Facilities
Authority Rev., Series B......... 8.000 02/15/25 1,721,726
5,000 Massachusetts, State Industrial
Finance Agency Rev............... 9.000 05/01/22 5,578,350
500 Massachusetts, State Industrial
Finance Agency Rev. (Dimmock
Community Health Center)......... 8.000 12/01/06 533,965
1,000 Massachusetts, State Industrial
Finance Agency Rev. (Dimmock
Community Health Center)......... 8.500 12/01/13 1,103,170
3,000 Massachusetts, State Industrial
Finance Agency Rev. (Dimmock
Community Health Center)......... 8.500 12/01/20 3,300,210
785 Massachusetts, State Industrial
Finance Agency Rev. (Evergreen
Center, Inc.).................... 8.000 11/01/06 844,165
1,230 Massachusetts, State Industrial
Finance Agency Rev. (Evergreen
Center, Inc.).................... 8.375 11/01/13 1,366,862
2,165 Massachusetts, State Industrial
Finance Agency Rev. (Evergreen
Center, Inc.).................... 8.500 11/01/20 2,447,446
1,000 Massachusetts, State Industrial
Finance Agency Rev., 1st Mtg.,
Brookhaven Community, Series A... 7.000 01/01/15 1,000,000
500 Massachusetts, State Industrial
Finance Agency Rev., 1st Mtg.,
Brookhaven Community............. 10.250 01/01/18 574,960
35 Massachusetts, State Industrial
Finance Agency Rev., 1st Mtg.,
Pioneer Valley................... 7.000 10/01/01 35,519
500 Massachusetts, State Industrial
Finance Agency Rev., 1st Mtg.,
Pioneer Valley................... 7.000 10/01/20 500,000
</TABLE>
13
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,000 Massachusetts, State
Industrial Finance Agency
Rev., 1st Mtg. Reeds Landing
Project....................... 8.625% 10/01/23 $ 3,177,210
510 Massachusetts, State
Industrial Finance Agency Rev.
(Hillcrest Educational
Centers, Inc. Project)........ 7.500 07/01/00 514,258
740 Massachusetts, State
Industrial Finance Agency Rev.
(Hillcrest Educational
Centers, Inc. Project)........ 8.000 07/01/05 754,778
2,750 Massachusetts, State
Industrial Finance Agency Rev.
(Hillcrest Educational
Centers, Inc. Project)........ 8.450 07/01/18 2,834,232
500 Montgomery County,
Pennsylvania, Higher Education
& Health Authority Rev.,
Retirement Community (GDL
Farms) Series A............... 9.500 01/01/20 604,430
2,500 Montgomery County,
Pennsylvania, Industrial
Development Authority Rev.,
1st Mtg. (Meadowood Corp.
Project)...................... 10.250 12/01/20 3,201,000
1,550 Montgomery County,
Pennsylvania, Industrial
Development Authority Rev.,
1st Mtg. (Meadowood Corp.
Project) Series A............. 9.250 12/01/00 1,684,896
2,025 Montgomery County,
Pennsylvania, Industrial
Development Authority Rev.,
1st Mtg. (Meadowood Corp.
Project) Series A............. 10.000 12/01/19 2,570,251
2,250 New Jersey, Economic
Development Authority, 1st
Mtg. Gross Rev. Franciscan
Oaks Project, Series A........ 8.500 10/01/23 2,454,818
1,000 New Jersey, Economic
Development Authority Rev.,
1st. Mtg. (The Evergreens).... 9.250 10/01/22 1,131,170
500 New Jersey, Economic
Development, Series A......... 8.500 01/01/10 540,270
1,000 New Jersey, Economic
Development, Series A......... 9.250 01/01/25 1,083,910
750 North Hampton County,
Pennsylvania, Industrial
Development Authority Rev.,
1st Mtg. (Kirkland Village
Project)...................... 7.375 12/15/18 756,435
750 North Hampton County,
Pennsylvania, Industrial
Development Authority Rev.,
1st Mtg. (Kirkland Village
Project)...................... 7.500 12/15/23 756,210
3,400 Palm Beach County, Florida,
Health Facilities Authority
Rev., Refunding (Waterford
Project)...................... 7.750 10/01/15 3,500,062
(/1/)1,044 Peoria, Arizona, Industrial
Development Authority (Sierra
Winds Life Care Community
Project)...................... 10.750 11/01/17 772,351
1,500 Philadelphia, Pennsylvania,
Industrial Development
Authority Rev. (Cathedral
Village)...................... 7.250 04/01/15 1,593,810
1,000 Philadelphia, Pennsylvania,
Industrial Development
Authority Rev. (Lutheran
Retirement Home), Series B.... 5.000 01/01/17 743,970
1,370 Plantation, Florida, Health
Facilities Authority Rev.
(Covenant Retirement
Communities, Inc.)............ 7.625 12/01/12 1,485,628
750 Plantation, Florida, Health
Facilities Authority Rev.
(Covenant Retirement
Communities, Inc.)............ 7.750 12/01/22 812,100
4,000 Riverside County, California,
Refunding (Air Force Village
West, Inc.) Series A.......... 8.125 06/15/20 4,160,000
700 Salem, Oregon, Hospital
Facility Authority Rev........ 7.250 12/01/15 734,076
1,500 Salem, Oregon, Hospital
Facility Authority Rev........ 7.500 12/01/24 1,583,985
1,035 Scottsdale, Arizona,
Industrial Development
Authority Rev., Series A...... 8.000 06/01/11 1,133,387
2,000 Scottsdale, Arizona,
Industrial Development
Authority Rev., Series A...... 8.250 06/01/15 2,202,480
2,540 Scottsdale, Arizona,
Industrial Development
Authority Rev., 1st Mtg.
(Westminister Village)........ 10.000 06/01/17 2,833,141
500 St. John's County, Florida,
Industrial Development
Authority, Refunding (Vicars
Landing Project) Series A..... 6.750 02/15/12 502,495
1,400 Tempe, Arizona, Industrial
Development Authority Rev.
(Friendship Village Temple)
Series A...................... 6.750 12/01/13 1,413,160
------------
78,364,654
------------
</TABLE>
14
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MISCELLANEOUS 4.5%
$ 1,800 Brea & Olinda, California,
University School District,
Certificate of Participation
(High School Refunding Program)
Series B......................... 7.000% 08/01/18 $ 1,858,716
500 Clay Road, Texas, Municipal
Utilities District............... 7.625 09/01/11 543,310
3,510 Denver, Colorado, City and
County, Series A, GNMA........... 8.125 12/01/20 3,683,569
1,055 Denver, Colorado, Rev. (Jewish
Community Centers Project)....... 7.375 03/01/09 1,136,689
1,130 Denver, Colorado, Rev. (Jewish
Community Centers Project)....... 7.500 03/01/14 1,211,699
815 Denver, Colorado, Rev. (Jewish
Community Centers Project)....... 7.875 03/01/19 880,257
3,500 District of Columbia, Rev.
(National Public Radio) Series A. 7.700 01/01/23 3,834,075
2,910 Fresno, California, Certificates
of Participation................. 8.500 05/01/16 3,087,277
500 Hopewell, Virginia, Industrial
Development Authority, Resource
Recovery Rev., Refunding (Stone
Container Corp. Project)......... 8.250 06/01/16 536,040
2,500 Hyland Hills, Colorado,
Metropolitan Park & Recreation
District, Special Rev., Series A. 8.625 12/15/12 2,746,950
4,000 Lake Charles, Louisiana, Harbor &
Terminal Facilities Rev.
(Trunkline Liquified Nautural Gas
Co. Project)..................... 7.750 08/15/22 4,521,640
2,000 Maryland, State Energy Financing
Administration, Rev.............. 7.400 09/01/19 2,050,160
3,770 Massachusetts, State Industrial
Finance Agency Rev. (Lynn Mental
Health Association Project)...... 8.800 06/01/14 4,341,834
1,000 South Orange County, California,
Public Funding Authority Rev.,
Series B......................... 7.000 09/01/07 974,910
961 Texas General Services, Community
Partner Interests (Office
Building and Land Acquisition
Project)......................... 7.000 08/01/09 990,717
1,091 Texas General Services, Community
Partner Interests (Office
Building and Land Acquisition
Project)......................... 7.000 08/01/19 1,125,014
1,400 Texas General Services, Community
Partner Interests (Office
Building and Land Acquisition
Project)......................... 7.000 08/01/24 1,444,826
------------
34,967,683
------------
NURSING HOMES 12.0%
710 Albuquerque, New Mexico, Nursing
Home Rev., Refunding (Albuquerque
Health Care)..................... 9.750 12/01/14 769,526
2,000 Calvert County, Maryland,
Economic Development............. 8.375 01/01/15 2,059,520
500 Carmel, Indiana, Retirement
Rental Housing Rev., Refunding
(Beverly Enterprises, Inc.)...... 8.750 12/01/08 568,125
750 Charleston County, South
Carolina, Health Facilities Rev.,
Refunding, 1st Mtg. (Episcopal
Project)......................... 9.750 04/01/16 949,972
1,500 Charleston County, South
Carolina, Health Facilities Rev.,
Refunding, 1st Mtg. (Roper
Geriatric Center, Inc. Project).. 7.750 05/01/17 1,570,470
190 Charlotte County, Florida,
Industrial Development Authority,
Refunding (Beverly Enterprises,
Inc.)............................ 10.000 06/01/11 221,950
1,500 Chesterfield, Missouri,
Industrial Development Authority
Rev. (St. Andrews Episcopal-
Presbyterian) Series A........... 8.500 12/01/19 1,628,130
1,740 Collier County, Florida,
Industrial Development Authority
Rev., Retirement Rent Housing,
Refunding (Beverly Enterprises,
Inc.)............................ 10.750 03/01/03 2,075,716
585 Colorado, Health Facilities
Authority Rev. (Beth Israel at
Shalom, Park Project)............ 7.400 12/15/07 634,760
250 Colorado, Health Facilities
Authority Rev. (Beth Israel at
Shalom, Park Project)............ 8.000 12/15/22 274,180
925 Columbia County, Pennsylvania,
Industrial Development Authority,
Refunding (1st Street Association
Project)......................... 9.000 05/01/14 1,048,635
980 Covington-Alleghany County,
Virginia, Industrial Development
Authority Rev., Refunding
(Beverly Enterprises, Inc.
Project)......................... 9.375 09/01/01 1,116,563
1,000 Cuyahoga County, Ohio, Health
Care Facilities Rev. (Jennings
Hall)............................ 7.200 11/15/14 1,000,000
1,500 Cuyahoga County, Ohio, Health
Care Facilities Rev. (Jennings
Hall)............................ 7.300 11/15/23 1,491,075
</TABLE>
15
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,800 Delaware State, Economic
Development Authority,
Refunding, 1st Mtg. (Dover
Health Care).................. 7.875% 04/01/08 $ 3,055,668
(/1/)2,500 DeSoto, Texas, Health
Facilities Development Corp.
Rev. (Park Manor Senior Care,
Inc. Project)................. 11.000 12/01/16 2,500,000
500 Fairfield, Ohio, Economic
Development Rev., Refunding
(Beverly Enterprises, Inc.)... 8.500 01/01/03 548,990
1,000 Gardendale, Alabama, Hospital
& Nursing Home Medical Clinic
Board Rev., Series A.......... 11.000 04/01/20 1,053,980
1,000 Good Shepherd Nursing Home,
Missouri, Nursing Home
Facilities Rev................ 7.625 07/01/15 1,028,700
3,000 Good Shepherd Nursing Home,
Missouri, Nursing Home
Facilities Rev................ 7.750 07/01/25 3,104,550
1,185 Hernando County, Florida,
Refunding (Beverly
Enterprises, Inc.)............ 10.000 09/01/11 1,390,135
1,500 Indiana, Health Facilities
Authority (St. Anthony Home).. 7.000 05/15/17 1,517,265
1,000 Indiana, Health Facilities
Authority (St. Anthony Home).. 7.250 05/15/24 1,025,940
2,905 Jefferson County, Missouri,
Industrial Development
Authority Rev., 1st Mtg.
(Cedar Hills Retirement
Village Project) Series A..... 8.250 12/01/15 2,905,000
250 Lee County, Florida,
Industrial Development
Authority, Economic
Development Rev., Refunding
(Encore Nursing Center
Partner)...................... 8.125 12/01/07 272,987
250 Lehigh County, Pennsylvania,
1st Mtg, (Bible Fellowship
Project)...................... 7.150 12/15/08 258,725
2,315 Lehigh County, Pennsylvania,
1st Mtg, (Bible Fellowship
Project)...................... 8.000 12/15/23 2,414,545
690 Louisiana, Public Facilities
Authority Rev., Refunding
Industrial Development
(Beverly Enterprises, Inc.)... 8.250 09/01/08 749,457
2,000 Luzerne County, Pennsylvania,
Industrial Development
Authority, 1st Mtg. Rev.,
Refunding (Birchwood Nursing
Center Project) Series A...... 7.875 12/01/13 2,178,440
1,200 Maplewood, Minnesota, Health
Care Facilities Rev., (VOA
Care Centers Project)......... 7.450 10/01/16 1,244,988
800 Massachusetts, Industrial
Finance Agency, Industrial
Development Authority,
Refunding (Beverly
Enterprises, Inc.)............ 8.375 05/01/09 886,648
1,700 Massachusetts, State
Industrial Finance Agency
Rev., 1st Mtg................. 7.700 01/01/14 1,790,559
1,005 Massachusetts, State
Industrial Finance, Refunding,
1st Mtg., Series A............ 7.400 01/15/09 1,047,431
2,000 Massachusetts, State
Industrial Finance, Refunding,
1st Mtg., Series A, Evanswood
Bethzatha..................... 7.625 01/15/14 2,094,500
1,000 Massachusetts, State
Industrial Finance, Refunding,
1st Mtg., Series A, Healthcare
Corp Project.................. 7.625 04/01/13 1,031,550
395 McCormick County, South
Carolina, Hospital Facilities
Rev., Series 88 (McCormick
Hospital)..................... 10.500 03/01/18 417,981
1,000 Minneapolis, Minnesota, Health
Care Facilities Authority
Rev., St. Olaf Residence, Inc.
Project....................... 7.100 10/01/23 1,039,440
3,595 Montgomery County,
Pennsylvania, Industrial
Development Authority Rev.,
Health Care (Advanced
Geriatric) Series A........... 8.375 07/01/23 3,989,803
910 Montgomery County,
Pennsylvania (Pennsburg
Nursing & Rehabilitation
Center)....................... 7.625 07/01/18 898,334
2,200 Nevada, State Department
Community Health Facilities,
Rev., Refunding (Washoe
Convalescent Center Project).. 8.125 06/01/03 2,329,536
1,620 New Hampshire, Higher
Education & Health Rev........ 8.000 06/01/04 1,738,568
2,000 New Hampshire, Higher
Education & Health Rev........ 9.000 06/01/14 2,280,020
4,365 New Jersey, Economic
Development Authority......... 7.500 07/01/20 4,521,878
500 New Jersey, Economic
Development Authority Rev.,
Refunding, Burnt Tavern
Convalescent, Series A........ 9.000 11/15/13 557,760
750 New Jersey, Economic
Development Authority Rev.,
Refunding, 1st Mtg., Delaire
Nursing, Series A............. 8.750 11/01/10 814,178
840 New Jersey, Economic
Development Authority Rev.,
Refunding, Stone Arch Nursing
Home Project.................. 8.750 12/01/10 929,468
500 New Jersey, Economic
Development Authority Rev.,
Refunding, Zirbser-Greenbriar,
Inc., Series A................ 7.375 07/15/03 516,985
</TABLE>
16
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 915 New Jersey, Economic Development
Authority Rev., Refunding,
Zirbser-Greenbriar, Inc., Series
A................................ 7.750% 07/15/08 $ 957,795
500 New Jersey, Economic Development
Rev., Series A................... 8.000 01/01/09 521,290
1,000 New Jersey, Economic Development
Authority Rev., Refunding........ 8.400 12/15/15 1,074,090
1,000 New Jersey, Economic Development
Authority Rev., Refunding (Green
Acres Manor, Inc.) Series A...... 8.250 01/01/17 1,050,040
420 New Jersey, Economic Development
Authority Rev., (United Methodist
Homes) Series A.................. 7.500 07/01/24 442,546
500 Oakland County, Michigan,
Economic Development (Pontiac
Osteopathic Hospital Project).... 9.625 01/01/20 606,655
465 Orange County, Florida,
Industrial Development Authority
Rev., Refunding (Beverly
Enterprises, Inc.)............... 9.250 08/01/10 527,566
2,000 Philadelphia, Pennsylvania
(FFE/Maplewood).................. 8.000 01/01/14 2,140,360
2,835 Philadelphia, Pennsylvania
(FFE/Maplewood).................. 8.000 01/01/24 3,033,960
1,170 Philadelphia, Pennsylvania,
Industrial Development Authority
Rev., 1st Mtg., (RHA/Care
Pavilion Project)................ 10.250 02/01/18 1,208,025
500 San Antonio, Texas, Health
Facilities Development Corp. Rev.
(Encore Nursing Center Partner).. 8.250 12/01/19 558,790
725 Santa Fe, New Mexico, Refunding
(Casa Real Nursing Home)......... 9.750 01/01/13 791,425
250 Santa Rosa County, Florida,
Industrial Development Authority
Rev., 1st Mtg. (Sandy Ridge Care
Center).......................... 10.500 04/01/16 254,303
500 Sherman, Illinois (Villa Health
Care) 1st Mtg., Series A......... 8.250 10/01/14 528,165
500 Sherman, Illinois (Villa Health
Care) 1st Mtg., Series A......... 8.500 10/01/24 529,000
250 Smith County, Tennessee, Health
and Educational Facilities
(Healthcare Corporation Project)
Refunding........................ 7.000 04/01/08 256,435
500 Smith County, Tennessee, Health
and Educational Facilities
(Healthcare Corporation Project)
Refunding........................ 7.400 04/01/13 509,820
250 South Carolina, Jobs Economic
Dev. Authority, Health Facilities
Rev., 1st Mtg. (Lutheran Homes
South Carolina Project).......... 7.750 10/01/12 273,295
750 South Carolina, Jobs Economic
Dev. Authority, Health Facilities
Rev., 1st Mtg. (Lutheran Homes
South Carolina Project).......... 8.000 10/01/22 817,013
500 St. Louis, Missouri, Industrial
Development Authority Rev., 1st
Mtg. (Deaconess Manor
Association)..................... 7.500 06/01/16 486,265
500 St. Louis, Missouri, Industrial
Development Authority Rev., 1st
Mtg. (Deaconess Manor
Association)..................... 7.500 06/01/23 493,130
1,880 St. Paul, Minnesota, Housing &
Redevelopment Authority,
Commercial Development Rev.,
Refunding (Beverly Enterprises,
Inc.)............................ 7.750 11/01/02 1,966,950
470 Truth or Consequences, New
Mexico, Nursing Home Rev.,
Refunding & Improvement (Sierra
Health Care)..................... 9.750 12/01/14 509,405
3,675 Valparaiso, Indiana, Economic
Development Rev., Refunding, 1st
Mtg. (Whispering Pines).......... 9.500 01/01/07 4,442,561
250 Warren County, Pennsylvania,
Industrial Development Authority
Rev., Refunding (Beverly
Enterprises, Inc.)............... 9.000 11/01/12 287,213
250 Westmoreland County, Virginia,
Industrial Development Authority,
Health Facilities Rev., 1st Mtg.
(Mary Washington Health Center).. 7.000 02/01/13 252,953
1,500 Westmoreland County, Virginia,
Industrial Development Authority,
Health Facilities Rev., 1st Mtg.
(Mary Washington Health Center).. 7.000 02/01/23 1,504,995
------------
93,566,676
------------
POLLUTION CONTROL REVENUE 7.7%
2,500 Baltimore County, Maryland
(Bethlehem Steel Corp. Project),
Series A......................... 7.500 06/01/15 2,629,850
560 Baltimore County, Maryland
(Bethlehem Steel Corp. Project),
Series A......................... 7.550 06/01/17 583,906
4,000 Beaver County, Pennsylvania,
Industrial Development Authority
Rev., Series A................... 7.750 05/01/20 4,222,880
</TABLE>
17
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 7,000 Beaver County, Pennsylvania,
Industrial Development Authority
Toledo Edison, Series A.......... 7.625% 05/01/20 $ 7,308,770
2,500 Clairborne County, Mississippi
(Middle South Energy)............ 8.250 06/01/14 2,774,125
1,500 Clairborne County, Mississippi
(Middle South Energy)............ 9.500 04/01/16 1,564,080
5,575 Clairborne County, Mississippi
(Middle South Energy)............ 9.875 12/01/14 6,357,953
3,700 Hodge, Louisiana, Utility Rev.
(Stone Container) Series 1990.... 9.000 03/01/10 4,029,818
1,500 Illinois, Development Finance
Authority (Illinois Power Co.
Project) Refunding, Series A..... 8.300 04/01/17 1,628,535
500 Montgomery County, Pennsylvania,
Industrial Development Authority
Rev., Refunding, 1st Mtg. (The
Meadowood Corp.)................. 7.000 12/01/10 497,250
1,500 Montgomery County, Pennsylvania,
Industrial Development Authority
Rev., Refunding, 1st Mtg. (The
Meadowood Corp.)................. 7.250 12/01/15 1,501,185
4,000 Montgomery County, Pennsylvania,
Industrial Development Authority
Rev., Refunding, 1st Mtg. (The
Meadowood Corp.)................. 7.400 12/01/20 3,981,920
4,000 New Hampshire, State Industrial
Authority Rev.................... 10.750 10/01/12 4,485,080
3,420 New Hampshire, State Industrial
Authority Rev. Public Service Co.
of New Hampshire Project, Series
A................................ 7.650 05/01/21 3,629,236
2,300 New Hampshire, State Industrial
Authority Rev. Public Service Co.
of New Hampshire Project, Series
A................................ 7.650 05/01/21 2,440,714
1,850 New Hampshire, State Industrial
Development Authority Rev.,
Refunding........................ 7.375 05/01/14 1,969,751
4,930 Ohio, State Air Quality
Development Authority Rev. Toledo
Edison,
Series B......................... 9.875 11/01/22 5,359,157
2,000 Ohio, State Water Development
Authority Pollution Control
Facilities Rev., Series A........ 8.000 10/01/23 2,157,740
1,000 Parish of West Feliciana,
Louisiana (Gulf State Utilities
Project)......................... 9.000 05/01/15 1,146,410
500 Parish of West Feliciana,
Louisiana (Gulf State Utilities
Project) Series A................ 7.500 05/01/15 541,315
1,500 Sabine River Authority, Texas,
Refunding (Texas Utilities Co.
Project)......................... 7.750 04/01/16 1,549,725
------------
60,359,400
------------
PUBLIC IMPROVEMENTS 2.1%
1,835 Antioch, California, Improvement
Act 1915, Series E............... 7.125 09/02/16 1,837,055
1,300 Emeryville, California........... 7.300 09/02/21 1,340,079
1,250 Erlanger, Kentucky, Assessment
Rev. (Public Improvement
Project)......................... 7.500 08/01/18 1,305,162
2,200 Fresno, California, JT Powers
Financing Authority, Local Agency
Rev. Series B.................... 6.750 09/02/01 2,300,782
900 Fresno, California, JT Powers
Financing Authority, Local Agency
Rev. Series B.................... 7.350 09/02/12 933,714
1,500 Henderson, Nevada, Local
Improvement Districts, Series B.. 7.300 11/01/12 1,509,960
960 Las Vegas, Nevada, Local
Improvement Bonds Special
Improvement District No. 404..... 7.300 11/01/09 985,334
985 Las Vegas, Nevada, Local
Improvement Bonds Special
Improvement District No. 505
(Elkhorn Springs)................ 8.000 09/15/13 1,009,645
2,000 Perris, California, Public
Funding, Series D................ 7.875 09/01/25 2,112,840
100 Rancho Cucamonga, California,
Community Facilities District.... 8.000 09/01/20 106,312
1,500 Rancho Cucamonga, California,
Community Facilities District.... 8.250 09/01/19 1,592,550
500 Riverside County, California..... 7.400 09/02/09 515,805
1,000 Riverside County, California..... 7.625 09/02/14 1,031,230
------------
16,580,468
------------
SALES TAX REVENUE 5.3%
1,000 Bedford Park, Illinois, Tax
Increment Rev., Bedford City
Project.......................... 9.250 02/01/12 1,106,580
1,500 Bedford Park, Illinois, Tax
Increment Rev., Mark IV Project.. 9.750 03/01/12 1,724,400
3,000 Broadview, Illinois, Tax
Increment Rev.................... 8.250 07/01/13 3,339,930
3,000 Crestwood, Cook County, Illinois,
Tax Increment Rev................ 7.250 12/01/08 3,053,460
</TABLE>
18
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 870 Delaware County, Pennsylvania,
Authority Rev., 1st Mtg. (Riddle
Village Project)................. 8.750% 06/01/10 $ 969,719
2,800 Delaware County, Pennsylvania,
Authority Rev., 1st Mtg. (Riddle
Village Project)................. 9.250 06/01/22 3,222,324
1,965 Denver, Colorado, Urban Renewal
Authority, Tax Increment Rev..... 8.500 05/01/16 2,166,354
445 Detroit, Michigan, Location
Development Finance Authority.... 9.500 05/01/21 497,350
1,315 Edgewater, Colorado,
Redevelopment Rev. .............. 6.750 12/01/08 1,382,578
1,000 Folsom, California, Community
Facilities District #10.......... 8.000 09/01/15 1,031,490
4,000 Hodgkins, Illinois, Tax Increment
Rev.............................. 7.625 12/01/13 4,182,600
1,500 Hodgkins, Illinois, Tax Increment
Rev.............................. 9.500 12/01/09 1,944,075
500 Hodgkins, Illinois, Tax Increment
Rev.............................. 9.500 12/01/09 591,345
1,500 Huntington Park, California,
Series C......................... 7.600 09/01/18 1,590,255
1,000 Moreno Valley, California,
Special Tax Rev., Towngate
Community Facilities District 87-
1................................ 7.125 10/01/23 1,028,560
4,215 New York City, New York,
Industrial Development Agency.... 8.500 12/30/22 4,718,566
500 Philadelphia, Pennsylvania,
Parking Authority Rev............ 8.750 03/01/05 505,265
1,785 Philadelphia, Pennsylvania,
Parking Authority Rev............ 8.875 03/01/10 1,804,332
1,250 Richmond, California, JT Powers
Financing Authority, Improvement
District No. 851 & No. 853,
Series A......................... 7.400 09/02/19 1,289,013
1,900 Round Lake Beach, Illinois, Tax
Increment Rev., Series 1993...... 7.200 12/01/04 2,009,459
500 Round Lake Beach, Illinois, Tax
Increment Rev., Series 1993...... 7.500 12/01/13 516,680
1,890 St. Louis, Missouri, Tax
Increment Rev. (Scullin
Redevelopment Area) Series A..... 10.000 08/01/10 2,305,687
------------
40,980,022
------------
TRANSPORTATION 3.5%
1,000 Chicago, Illinois, O'Hare
International Airport, Special
Facilities Rev. (American
Airlines, Inc. Project).......... 8.200 12/01/24 1,163,070
540 Chicago, Illinois, O'Hare
International Airport, Special
Facilities Rev. (American
Airlines, Inc. Project) Series A. 7.875 11/01/25 591,716
2,000 Chicago, Illlinois, Skyway
Tollbridge Rev., Refunding....... 6.750 01/01/17 2,061,780
3,000 Cleveland, Ohio, Parking
Facilities Rev.,................. 8.000 09/15/12 3,222,360
1,500 Dallas-Fort Worth, Texas,
International Airport Facilities
Improvement Corp. Rev., American
Airlines, Inc.................... 7.250 11/01/30 1,585,530
500 Dallas-Fort Worth, Texas,
International Airport Facilities
Improvement Corp. Rev., American
Airlines, Inc.................... 7.500 11/01/25 531,285
1,250 Dallas-Fort Worth, Texas,
International Airport Facilities
Improvement Corp. Rev., Delta
Airlines, Inc.................... 7.625 11/01/21 1,341,287
7,625 Dayton, Ohio, Special Facilities
Rev. (Emery Air Freight Corp.)
Series A......................... 12.500 10/01/09 8,766,691
2,400 Kenton County, Kentucky, Airport
Board, Special Facilities, Rev.
(Delta Airlines, Inc. Project)... 7.500 02/01/12 2,584,176
1,195 Kenton County, Kentucky, Airport
Board, Special Facilities, Rev.
(Delta Airlines, Inc. Project)... 8.100 12/01/15 1,300,662
4,000 New Jersey, Economic Development
Authority Rev. (Holt Hauling)
Series D......................... 10.250 09/15/14 4,242,360
------------
27,390,917
------------
UTILITIES 3.8%
1,500 Colton, California, Public
Finance Authority................ 7.500 10/01/20 1,533,735
275 Fort Bend County, Texas,
Refunding #25.................... 8.000 10/01/15 297,280
930 Hawaii County, Hawaii,
Improvement District No. 17,
Special Assessment-Kaloko
Subdivision...................... 9.500 08/01/11 998,606
1,020 Massachusetts, State Industrial
Finance Agency Rev............... 7.300 09/01/10 1,052,334
915 Massachusetts, State Industrial
Finance Agency Rev............... 7.600 09/01/17 939,888
</TABLE>
19
See Notes to Financial Statements
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,820 Massachusetts, State Industrial Finance
Agency Rev............................. 7.750% 09/01/25 $ 1,869,122
1,500 Mill Creek, Illinois, Water Reclamation
District, Rev.......................... 8.000 03/01/10 1,542,180
2,500 Mill Creek, Illinois, Water Reclamation
District, Rev.......................... 8.000 03/01/10 2,570,300
4,110 New Hampshire, State Business Finance
Authority, Electric Facilities Rev.
(Plymouth Cogeneration Light Power).... 7.750 06/01/14 4,221,011
975 New Jersey, Economic Development
Authority Rev., 1st Mtg. (Millhouse
Project) Series A...................... 8.250 04/01/10 983,385
2,060 New Jersey, Economic Development
Authority Rev., 1st Mtg. (Millhouse
Project) Series A...................... 8.500 04/01/16 2,091,003
2,000 New York, State Energy................. 7.150 12/01/20 2,066,920
2,500 New York, State Energy Research &
Development Authority, Electric
Facilities Rev. (Long Island Lighting)
Series B............................... 7.150 02/01/22 2,583,650
2,000 New York, State Energy Research, Series
A...................................... 7.125 12/01/29 2,223,460
1,530 Norco, California, Sewer and Water
Rev., Refunding........................ 7.200 10/01/19 1,600,074
200 Northwest Harris County, Texas,
Municipal Utility #22, Refunding,
Combined Tax and Rev., Water Works and
Sewer System........................... 8.000 10/01/15 233,686
1,000 Pennsylvania, Economic Development
Funding................................ 7.600 12/01/20 1,120,450
1,500 Pennsylvania, Economic Development
Funding, Series A...................... 9.250 01/01/22 1,594,665
------------
29,521,749
------------
WASTE DISPOSAL 1.3%
1,750 Greater Detroit, Michigan, Resource
Recovery Agency, Rev., Series C........ 9.250 12/13/08 1,827,402
1,500 Michigan State Strategic Fund, Rev.,
Refunding (Genesee Power Station
Project)............................... 7.500 01/01/21 1,551,285
1,500 Parish of St. James, Louisana, Solid
Waste Disposal Rev. (Kaiser Aluminum
Project)............................... 7.750 08/01/22 1,628,040
3,000 Port Walla Walla, Washington, Solid
Waste Recycling Rev. (Ponderosa Fibres
Project)............................... 9.125 01/01/26 3,088,140
1,500 Rockdale County, Georgia, Development
Authority Rev., Solid Waste Disposal
(Visy Paper, Inc. Project)............. 7.500 01/01/26 1,563,390
------------
9,658,257
------------
TOTAL MUNICIPAL BONDS (Cost $720,774,254)............... 757,529,737
------------
MUNICIPAL VARIABLE RATE DEMAND
NOTES+ 1.6%
1,000 Hamilton County, Ohio, Series A........ 3.800 03/01/17 1,000,000
600 Jackson County, Mississippi, Pollution
Control Rev............................ 3.650 06/01/23 600,000
1,100 Kansas City, Missouri, Hospital Rev.... 3.850 10/15/14 1,100,000
100 New York City, New York, Series 1993-
A4..................................... 3.800 08/01/21 100,000
2,880 New York, State Job Development
Authority ............................. 3.850 03/01/07 2,880,000
6,800 North Carolina, Medical Care, Series
1991-A................................. 3.800 10/01/20 6,800,000
100 Pinal County, Arizona, Pollution
Control Rev............................ 3.800 12/01/09 100,000
------------
TOTAL MUNICIPAL VARIABLE RATE DEMAND NOTES
(Cost $12,580,000)...................................... 12,580,000
------------
TOTAL INVESTMENTS (Cost $733,354,254) 98.6%..................... 770,109,737
OTHER ASSETS AND LIABILITIES, NET 1.4%.......................... 11,200,989
------------
NET ASSETS 100%................................................. $781,310,726
------------
</TABLE>
*Zero coupon bond
+Interest rates as of November 30, 1995
(1)Security is not expected to pay interest at the stated rate and accordingly
interest is being accrued at a lesser interest rate.
(2)Security is non-income producing but is expected to pay interest at a lesser
rate in January 1996. Valuation is based on information provided by brokers
trading in this security.
Rev.--Revenue bond.
20
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at market value (Cost $733,354,254)................. $770,109,737
Interest receivable.............................................. 18,979,845
Receivable for investments sold.................................. 8,714,943
Receivable for Fund shares sold.................................. 1,150,084
Other assets..................................................... 41,104
------------
Total Assets................................................... 798,995,713
------------
LIABILITIES
Payable for investments purchased................................ 13,373,138
Dividends payable................................................ 2,408,690
Payable for Fund shares redeemed................................. 714,004
Due to Distributor............................................... 487,351
Due to Adviser................................................... 356,153
Bank overdraft................................................... 92,080
Due to shareholder service agent................................. 68,874
Deferred Trustees' compensation.................................. 12,769
Accrued expenses................................................. 171,928
------------
Total Liabilities.............................................. 17,684,987
------------
NET ASSETS, equivalent to $11.18 per share for Class A and Class
B shares, and $11.17 per share for Class C shares................ $781,310,726
------------
NET ASSETS WERE COMPRISED OF
Shares of beneficial interest, at par; 46,185,017 Class A,
20,927,094 Class B, and 2,789,400 Class C shares outstanding.... $ 699,015
Capital surplus.................................................. 775,046,087
Accumulated net realized loss on securities...................... (31,216,640)
Net unrealized appreciation of securities........................ 36,755,483
Undistributed net investment income.............................. 26,781
------------
NET ASSETS....................................................... $781,310,726
------------
</TABLE>
21
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................... $54,510,588
-----------
EXPENSES
Management fees.................................................... 3,906,255
Shareholder service agent's fees and expenses...................... 767,467
Accounting services................................................ 158,098
Service fees--Class A.............................................. 1,172,671
Distribution and service fees--Class B............................. 2,037,581
Distribution and service fees--Class C............................. 250,107
Trustees' fees and expenses........................................ 25,934
Audit fees......................................................... 31,200
Custodian fees..................................................... 19,644
Legal fees......................................................... 13,725
Reports to shareholders............................................ 63,025
Registration and filing fees....................................... 104,167
Miscellaneous...................................................... 19,353
Management fee waiver (see Note 2)................................. (8,371)
-----------
Total expenses................................................... 8,560,856
-----------
NET INVESTMENT INCOME.............................................. 45,949,732
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized loss on securities
Investments....................................................... (5,961,075)
Futures contracts................................................. (5,210,431)
Net unrealized appreciation of securities during the period
Investments....................................................... 56,193,402
Futures contracts................................................. 506,300
-----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES..................... 45,528,196
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $91,477,928
-----------
</TABLE>
22
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30
--------------------------
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period.................... $585,718,311 $512,768,709
------------ ------------
OPERATIONS
Net investment income............................. 45,949,732 37,931,627
Net realized loss on securities................... (11,171,506) (6,750,830)
Net unrealized appreciation (depreciation) of se-
curities during the period....................... 56,699,702 (31,271,797)
------------ ------------
Increase (decrease) in net assets resulting from
operations.................................... 91,477,928 (91,000)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT
INCOME
Class A........................................... (32,309,178) (29,486,022)
Class B........................................... (12,327,837) (8,334,914)
Class C........................................... (1,507,847) (399,671)
------------ ------------
(46,144,862) (38,220,607)
------------ ------------
CAPITAL TRANSACTIONS
Proceeds from shares sold
Class A.......................................... 128,111,398 98,704,070
Class B.......................................... 77,416,914 70,654,239
Class C.......................................... 16,851,852 15,954,972
------------ ------------
222,380,164 185,313,281
------------ ------------
Proceeds from shares issued for distributions re-
invested
Class A.......................................... 13,570,942 11,857,412
Class B.......................................... 5,256,068 3,702,608
Class C.......................................... 825,878 230,780
------------ ------------
19,652,888 15,790,800
------------ ------------
Cost of shares redeemed
Class A.......................................... (67,504,220) (78,622,401)
Class B.......................................... (20,990,727) (10,751,774)
Class C.......................................... (3,278,756) (468,697)
------------ ------------
(91,773,703) (89,842,872)
------------ ------------
Increase in net assets resulting from capital
transactions.................................. 150,259,349 111,261,209
------------ ------------
INCREASE IN NET ASSETS........................... 195,592,415 72,949,602
------------ ------------
NET ASSETS, end of period (including undistributed
net investment income of $26,781 and $221,911).... $781,310,726 $585,718,311
------------ ------------
</TABLE>
23
See Notes to Financial Statements
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each of
the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
--------------------------------------
Year Ended November 30
--------------------------------------
1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period... $10.44 $11.19 $10.95 $10.78 $10.72
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Investment income..................... .85 .87 .931 .93 .885
Expenses.............................. (.11) (.11) (.1178) (.115) (.115)
------ ------ ------ ------ ------
Net investment income.................. .74 .76 .8132 .815 .77
Net realized and unrealized gains or
losses on securities.................. .7475 (.744) .2303 .195 .13
------ ------ ------ ------ ------
Total from investment operations....... 1.4875 .016 1.0435 1.01 .90
------ ------ ------ ------ ------
DISTRIBUTIONS FROM NET INVESTMENT IN-
COME.................................. (.7475) (.766) (.8035) (.84) (.84)
------ ------ ------ ------ ------
Net asset value, end of period ........ $11.18 $10.44 $11.19 $10.95 $10.78
------ ------ ------ ------ ------
TOTAL RETURN (/1/)..................... 14.65% .10% 9.65% 9.77% 8.73%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions)... $516.3 $411.1 $408.0 $309.5 $225.3
Average net assets (millions).......... $472.4 $419.5 $357.8 $257.5 $220.5
Ratios to average net assets (/2/)
Expenses.............................. .98% 1.02% 1.03% 1.07% 1.06%
Expenses, without waiver.............. .98% -- -- -- --
Net investment income................. 6.81% 6.98% 7.13% 7.45% 7.20%
Net investment income, without waiver. 6.81% -- -- -- --
Portfolio turnover rate................ 26% 33% 27% 24% 20%
</TABLE>
(1) Total return does not consider the effect of sales charges.
(2) See Note 2.
24
See Notes to Financial Statements
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of beneficial interest outstanding throughout each of
the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Class C
---------------------------------------- --------------------------
July 20, December 10,
1992(/2/) 1993(/2/)
Year Ended November 30 through Year Ended through
-------------------------- November 30, November 30, November 30,
1995 1994 1993(/1/) 1992(/1/) 1995 1994(/1/)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, begin-
ning of period......... $10.43 $11.18 $10.96 $11.08 $10.42 $11.29
------- ------ ------ ------ ------- ------
INCOME FROM INVESTMENT
OPERATIONS
Investment income...... .85 .87 .8905 .35 .85 .81
Expenses............... (.19) (.19) (.1986) (.08) (.19) (.18)
------- ------ ------ ------ ------- ------
Net investment income... .66 .68 .6919 .27 .66 .63
Net realized and
unrealized gains or
losses on securities... .7535 (.748) .2476 (.1122) .7535 (.8363)
------- ------ ------ ------ ------- ------
Total from investment
operations............. 1.4135 (.068) .9395 .1578 1.4135 (.2063)
------- ------ ------ ------ ------- ------
DISTRIBUTIONS FROM NET
INVESTMENT INCOME...... (.6635) (.682) (.7195) (.2778) (.6635) (.6637)
------- ------ ------ ------ ------- ------
Net asset value, end of
period................. $11.18 $10.43 $11.18 $10.96 $11.17 $10.42
------- ------ ------ ------ ------- ------
TOTAL RETURN (/3/)...... 13.89% (.76%) 8.84% 1.45% 13.79% (1.80%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (millions)...... $233.9 $159.3 $104.8 $21.0 $31.1 $15.3
Average net assets
(millions)............. $203.8 $133.6 $54.9 $13.4 $25.0 $6.7
Ratios to average net
assets
(annualized)(/4/)
Expenses............... 1.73% 1.77% 1.77% 1.71% 1.72% 1.75%
Expenses, without
waiver................ 1.73% -- -- -- 1.72% --
Net investment income.. 6.03% 6.19% 6.15% 5.88% 5.98% 6.07%
Net investment income,
without waiver........ 6.03% -- -- -- 5.98% --
Portfolio turnover rate. 26% 33% 27% 24% 26% 33%
</TABLE>
(1) Based on average month-end shares.
(2) Commencement of offering of sales.
(3) Total return for periods of less than one year are not annualized. Total
return does not consider the effect of sales charges.
(4) See Note 2.
25
See Notes to Financial Statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital Tax-Exempt Trust--High Yield Municipal Fund (the
"Fund") is registered under the Investment Company Act of 1940, as amended, as
a diversified open-end management investment company.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
A. INVESTMENT VALUATIONS-Municipal bonds are valued at the most recently quoted
bid prices or at bid prices based on a matrix system (which considers such
factors as security prices, yields, maturities and ratings) furnished by
dealers and an independent pricing service. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by the Board of Trustees of the Fund. Short-term investments with a
maturity of 60 days or less when purchased are valued at amortized cost, which
approximates market value. Short-term investments with a maturity of more than
60 days when purchased are valued based on market quotations until the
remaining days to maturity becomes less than 61 days. From such time, until
maturity, the investments are valued at amortized cost.
The Fund's investments include lower rated and unrated debt securities which
may be more susceptible to adverse economic conditions than investment grade
holdings. These securities are often subordinated to the prior claims of other
senior lenders and uncertainties exist as to an issuer's ability to meet
principal and interest payments. Securities rated below investment grade and
comparable unrated securities represented approximately 80% of the Fund's
investment portfolio at the end of the period.
Issuers of certain securities owned by the Fund may have obtained insurance
guaranteeing their timely payment of principal at maturity and interest. The
insurance reduces credit risk but not market risk of the security.
B. REPURCHASE AGREEMENTS-A repurchase agreement is a short-term investment in
which a Fund acquires ownership of a debt security and the seller agrees to
repurchase the security at a future time and specified price. The Fund may
invest independently in repurchase agreements, or transfer uninvested cash
balances into a pooled cash account along with other investment companies
advised by Van Kampen American Capital Asset Management, Inc. ("The Adviser"),
the daily aggregate of which is invested in repurchase agreements. Repurchase
agreements are collateralized by the underlying debt securities. The Fund will
make payment for such securities only upon physical delivery or evidence of
book entry transfer to the account of the custodian bank. The seller is
required to maintain the value of the underlying security at not less than the
repurchase proceeds due the Fund.
C. FUTURES CONTRACTS-Transactions in futures contracts are utilized in
strategies to manage the market risk of the Fund's investments. The purchase of
a futures contract increases the impact on net asset value of changes in the
market price of investments. There is also a risk that the market movement of
such instruments may not be in the direction forecasted.
Upon entering into futures contracts, the Fund maintains, in a segregated
account with its custodian, securities with a value equal to its obligation
under the futures contracts. A portion of these funds is held as collateral in
an account in the name of the broker, the Fund's agent in acquiring the futures
position. During the period the futures contract is open, changes in the value
of the contract ("variation margin") are recognized by marking the contract to
market on a daily basis. As unrealized gains or losses are incurred, variation
margin payments are received from or made to the broker. Upon the closing or
cash settlement of a contract, gains and losses are realized. The cost of
securities acquired through delivery under a contract is adjusted by the
unrealized gain or loss on the contract.
D. FEDERAL INCOME TAXES-No provision for federal income taxes is required
because the Fund has elected to be taxed as "regulated investment company"
under the Internal Revenue Code and intends to maintain this qualification by
annually distributing all of its taxable net investment income and taxable net
realized capital gains to its shareholders. It is anticipated that no
distributions of capital gains will be made until tax basis capital loss
carryforwards expire or are offset by net realized capital gains.
The net realized capital loss carryforwards of $30.9 million at November 30,
1995 may be utilized to offset future capital gains until expiration from 1996
through 2003. Approximately 21% of the capital loss carryforwards may expire in
1996. Additionally, approximately $280,000 of financial statement capital
losses are deferred for tax purposes to the 1996 fiscal year.
E. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment
transactions are accounted for on the trade date. Realized gains and losses on
investments are determined on the basis of identified cost. Interest income is
accrued daily.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
F. DIVIDENDS AND DISTRIBUTIONS-The Fund declares dividends from net investment
income on each business day. The Fund intends to continue to invest principally
in tax-exempt obligations sufficient in amount to qualify it to pay "exempt-
interest dividends" as defined in the Internal Revenue Code.
The Fund distributes tax basis earnings in accordance with the minimum
distribution requirements of the Internal Revenue Code, which may differ from
generally accepted accounting principles. Such dividends or distributions may
exceed financial statement earnings.
G. DEBT DISCOUNT OR PREMIUM-The Fund accounts for discounts and premiums on the
same basis as is used for federal income tax reporting. Accordingly, original
issue discounts and all premiums are amortized over the life of the security.
Market discounts are recognized at the time of sale as realized gains for book
purposes and ordinary income for tax purposes.
H. WHEN-ISSUED SECURITIES-Delivery and payment for securities purchased on a
when-issued basis may take place up to 45 days after the date of the
transaction. The securities purchased are subject to market fluctuation during
this period. To meet the payment obligations, sufficient cash or liquid
securities equal to the amount that will be due are set aside with the
custodian.
NOTE 2--MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser serves as the investment manager of the Fund. Management fees are
paid monthly, based on the aggregate average daily net assets of the Fund at an
annual rate of .60% of the first $300 million of the average daily net assets,
.55% of the next $300 million, and .50% of the amount in excess of $600
million. The Adviser has voluntarily agreed to waive all management fees in
excess of .5518% of the Fund's average daily net assets from October 1, 1995
through December 31, 1996.
Accounting services include the salaries and overhead expenses of the Fund's
Treasurer and the personnel operating under his direction. Charges are
allocated among investment companies advised by the Adviser. For the period
these charges included $15,590 as the Fund's share of the employee costs
attributable to the Fund's accounting officers. A portion of the accounting
services expense was paid to the Adviser in reimbursement of personnel,
facilities and equipment costs attributable to the provision of accounting
services. These services provided by the Adviser are at cost.
ACCESS Investor Services, Inc., an affiliate of the Adviser, serves as the
Fund's shareholder service agent. These services are provided at cost plus a
profit. For the period such fees aggregated $648,335.
The Fund was advised that Van Kampen American Capital Distributors, Inc. (the
"Distributor") and Advantage Capital Corporation (the "Retail Dealer"), both
affiliates of the Adviser, received $399,162 and $173,684, respectively, as
their portion of the commissions charged on sales of Fund shares during the
period.
Under the Distribution plans, each class of shares pays up to .25% per annum
of its average daily net assets to reimburse the Distributor for expenses and
service fees incurred. Class B and Class C shares pay an additional
distribution fee of up to .75% per annum of their average net assets to
reimburse the Distributor for its distribution expenses. Actual distribution
expenses incurred by the Distributor for Class B and Class C shares may exceed
the amounts reimbursed to the Distributor by the Fund. At the end of the
period, the unreimbursed expenses by the Distributor under the Class B and
Class C plans aggregated approximately $8.7 million and $161,000, respectively,
and may be carried forward and reimbursed through either the collection of the
contingent deferred sales charges from share redemptions or, subject to the
annual renewal of the plans, future Fund reimbursements of distribution fees.
Legal fees of $9,988 were for services rendered by O'Melveny & Myers, counsel
for the Fund. Lawrence J. Sheehan, of counsel to that firm, is a trustee of the
Fund.
Certain officers and trustees of the Fund are officers and trustees of the
Adviser, the Distributor, the Retail Dealer, and the shareholder service agent.
NOTE 3--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of
investments, excluding short-term investments, were $313,084,052 and
$174,290,201, respectively.
For federal income tax purposes, the identified cost of investments owned at
the end of the period, was $733,359,754. Net unrealized appreciation of
investments aggregated $36,749,983, gross unrealized appreciation of
investments aggregated $41,055,004, and gross unrealized depreciation of
investments aggregated $4,305,021.
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
During the period, the cost of purchases and proceeds from sales of
investments resulting from transactions between the Fund and other investment
companies advised by the Adviser were $100,000 and $3,000,000, respectively.
Such transactions were at current market prices on the dates of the transac-
tions for cash payment against prompt delivery, with no brokerage commissions.
The sales transactions did not result in a net realized gain or loss to the
Fund.
NOTE 4--TRUSTEE COMPENSATION
Fund Trustees who are not affiliated with the Adviser are compensated by the
Fund at the annual rate of $1,562 plus a fee of $45 per day for the Board and
Committee meetings attended. During the period, such fees aggregated $22,889.
The trustees may participate in a voluntary Deferred Compensation Plan (the
"Plan"). The Plan is not funded and obligations under the Plan will be paid
solely out of the Fund's general accounts. The Fund will not reserve or set
aside funds for the payment of obligations under the Plan, by any form of trust
or escrow. Each trustee covered by the Plan elects to be credited with an
earnings component on amounts deferred equal to the income earned by the Fund
on its short-term investments or equal to the total return of the Fund.
NOTE 5--CAPITAL
The Fund offers three classes of shares at their respective net asset values
per share, plus a sales charge which is imposed either at the time of purchase
(the Class A shares) or at the time of redemption on a contingent deferred
basis (the Class B and Class C shares). All classes of shares have the same
rights, except that Class B and Class C shares bear the cost of a higher
distribution services fee and certain other class specific expenses. Realized
and unrealized gains or losses, investment income and expenses (other than
class specific expenses) are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Class B and Class C shares
automatically convert to Class A shares six years and ten years after purchase,
respectively, subject to certain conditions.
The Fund has an unlimited number of shares of $.01 par value shares of
beneficial interest authorized. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Year Ended November
30
----------------------
1995 1994
---------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A.......................................... 11,754,020 9,122,951
Class B.......................................... 7,098,582 6,562,885
Class C.......................................... 1,551,140 1,487,816
---------- ----------
20,403,742 17,173,652
---------- ----------
Shares issued for distributions reinvested
Class A.......................................... 1,242,463 1,092,261
Class B.......................................... 481,085 342,025
Class C.......................................... 75,559 21,563
---------- ----------
1,799,107 1,455,849
---------- ----------
Shares redeemed
Class A.......................................... (6,209,642) (7,290,648)
Class B.......................................... (1,925,903) (999,142)
Class C.......................................... (303,107) (43,571)
---------- ----------
(8,438,652) (8,333,361)
---------- ----------
Increase in shares outstanding.................... 13,764,197 10,296,140
---------- ----------
</TABLE>
NOTE 6--FUND REORGANIZATION
On July 21, 1995, the shareholders approved the reorganization of the Fund to a
Delaware Business Trust and the election of fourteen trustees. On July 31,
1995, the reorganization became effective.
28
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
VAN KAMPEN AMERICAN CAPITAL TAX EXEMPT TRUST--HIGH YIELD MUNICIPAL FUND
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Van Kampen American Capital Tax
Exempt Trust--High Yield Municipal Fund (the "Fund") at November 30, 1995, the
results of its operations, the changes in its net assets and the financial
highlights for each of the fiscal periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at November 30, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Houston, Texas
January 15, 1996
29
<PAGE>
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment adviser for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
30
<PAGE>
VAN KAMPEN AMERICAN CAPITAL HIGH YIELD MUNICIPAL FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
PHILIP P. GAUGHAN
LINDA H. HEAGY
ROGER HILSMAN
R. CRAIG KENNEDY
DONALD C. MILLER
JACK E. NELSON
DON G. POWELL
DAVID REES
JEROME L. ROBINSON
LAWRENCE J. SHEEHAN
FERNANDO SISTO*
WAYNE W. WHALEN
WILLIAM S. WOODSIDE
*Chairman of the Board
OFFICERS
DON G. POWELL
President
CURTIS W. MORELL
Vice President and Treasurer
WAYNE D. GODLIN
DENNIS J. MCDONNELL
ROBERT C. PECK, JR.
JOSEPH A. PIRARO
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
RONALD A. NYBERG
Vice President and Secretary
NICHOLAS DALMASO
HUEY P. FALGOUT, JR.
SCOTT E. MARTIN
WESTON B. WETHERELL
Assistant Secretaries
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL ASSET MANAGEMENT, INC.
2800 Post Oak Blvd.
Houston, Texas 77056
DISTRIBUTOR
VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
SHAREHOLDER SERVICE AGENT
ACCESS INVESTOR SERVICES, INC.
P.O. Box 418256
Kansas City, Missouri 64141-9256
CUSTODIAN
STATE STREET BANK AND TRUST CO.
225 Franklin Street
Boston, Massachusetts 02110
COUNSEL
O'MELVENY & MYERS
400 South Hope Street
Los Angeles, California 90071
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1201 Louisiana
Houston, Texas 77002
(C)Van Kampen American Capital Distributors, Inc., 1995
All rights reserved.
SMdenotes a service mark of
Van Kampen American Capital Distributors, Inc.
This report is submitted for the general information of the shareholders of
the Fund. It is not authorized for distribution to prospective investors
unless it has been preceded or is accompanied by an effective prospectus of
the Fund which contains additional information on how to purchase shares, the
sales charge, and other pertinent data. If used for distribution to
prospective investors after 03/31/96, this annual report must be accompanied
by a Van Kampen American Capital Tax-Exempt Trust--High Yield Municipal Fund
performance data update for the most recent quarter.
31
<PAGE>
VAN KAMPEN AMERICAN CAPITAL HIGH YIELD MUNICIPAL FUND
THIS PAGE INTENTIONALLY LEFT BLANK
32
