VAN KAMPEN TAX EXEMPT TRUST, N-30D, 1999-07-22

VAN KAMPEN TAX EXEMPT TRUST
N-30D, 1999-07-22

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<PAGE> 1

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Performance Results.............................. 3
Portfolio Management Review...................... 4
Glossary of Terms................................ 7
Portfolio Highlights............................. 8
Portfolio of Investments......................... 9
Statement of Assets and Liabilities.............. 50
Statement of Operations.......................... 51
Statement of Changes in Net Assets............... 52
Financial Highlights............................. 53
Notes to Financial Statements.................... 56
</TABLE>

HYM SAR 7/99
<PAGE> 2
LETTER TO SHAREHOLDERS

June 16, 1999

Dear Shareholder,
With the volatility that we've experienced in many financial markets in
recent months, some investors have sold securities because of uncertainty about
where the markets were going, only to be left rethinking whether they made the
right decision. We've witnessed this kind of market activity numerous times over
the past several years, sparked by concerns such as the impact of the Asian
economic crisis, high stock valuations, or, most recently, the stability of many
high-flying technology companies. While these fears eventually subsided,
investors who may have sold during this period were unable to reap the benefits
of the latest rally. That's partly because most of the recent big gains happened
in relatively short periods of time. This kind of volatility--and the danger of
making short-term decisions--highlights the importance of investing for the long
term, in accordance with your individual financial objectives.
Although the worst of the Asian crisis appears to be behind us, new concerns
are always emerging. In the coming months, we'll likely hear more about how the
year 2000 computer problem may affect the markets or that we're overdue for a
correction. While the markets could undoubtedly suffer as a result of these or
any number of other events, we encourage you to focus on your long-term
investment goals. Although nothing is certain, history has shown us that over
time, the markets tend to recover--and most investors want to be positioned to
take advantage of any recovery.
If you have concerns about market volatility or questions about how your
portfolio is structured to respond to these events, we encourage you to contact
your financial advisor. Your advisor can talk with you about sustaining a
long-term investment plan through a variety of market conditions. We hope that
Van Kampen Funds will play an important role as you and your advisor build a
portfolio designed to help you weather what the markets have in store.

Sincerely,

[SIG.]
Richard F. Powers III

Chairman
Van Kampen Asset Management Inc.

[SIG.]
Dennis J. McDonnell

President
Van Kampen Asset Management Inc.

1
<PAGE> 3

ECONOMIC SNAPSHOT

The economy continued to grow at a record pace. The nation's gross domestic
product, a measure of economic health, rose at an astounding 6.0 percent
annualized rate in the fourth quarter of 1998, and remained strong at 4.5
percent through the first quarter of 1999. Growth was fueled by an increase in
consumer spending even as retail prices inched upward. Consumer spending rose at
a 6.7 percent annualized rate in the first quarter of 1999--an 11-year record.
This willingness to spend was attributed to higher consumer confidence as a
result of the positive employment environment. Although U.S. exports declined,
the high level of spending on domestic goods and services compensated for this
weak spot.
Inflation remained low throughout most of the reporting period, although a
sharp increase in oil prices contributed to a recent boost in the consumer price
index, pointing to the potential for higher inflation in the months ahead. This
rise in inflation led the Federal Reserve to express a bias toward raising
interest rates in the near term, although it did not make any rate changes over
the past six months. Despite a lack of action by the Fed, long-term interest
rates continued to climb during this period due to market conditions.
Our outlook for the economy suggests that a moderate slowdown may be on the
horizon. Healthy job growth, which has been supporting the strong consumer
confidence and spending levels, showed signs of faltering toward the end of the
reporting period. However, a renewed optimism for corporate earnings, low
unemployment, and a vibrant housing market should provide some balance against a
slower job growth rate. Also, with the Asian economic crisis currently under
control and financial improvements in other parts of the world, we believe the
U.S. economy will remain strong even if growth slows somewhat in the near term.

INTEREST RATES AND INFLATION
May 31, 1997, through May 31, 1999
GRAPH

<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
May 1997 5.6250 2.2000
6.5000 2.3000
6.0000 2.2000
Aug 1997 5.5000 2.2000
6.2500 2.2000
5.7500 2.1000
Nov 1997 5.6875 1.8000
6.5000 1.7000
5.5625 1.6000
Feb 1998 5.6250 1.4000
6.1250 1.4000
5.6250 1.4000
May 1998 5.6875 1.7000
6.0000 1.7000
5.5625 1.7000
Aug 1998 5.9375 1.6000
5.7500 1.5000
5.2500 1.5000
Nov 1998 4.8750 1.5000
4.0000 1.6000
4.8125 1.7000
Feb 1999 4.8750 1.6000
5.1250 1.7000
4.9375 2.3000
May 1999 4.5000 2.1000
</TABLE>

Interest rates are represented by the closing midline federal funds rate
on the last day of each month. Inflation is indicated by the annual
percent change of the Consumer Price Index for all urban consumers at
the end of each month.

2
<PAGE> 4

PERFORMANCE RESULTS FOR THE PERIOD ENDED MAY 31, 1999

VAN KAMPEN HIGH YIELD MUNICIPAL FUND

<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
<S> <C> <C> <C>
TOTAL RETURNS
Six-month total return based on NAV
(1)...................................... 1.89% 1.52% 1.53%
Six-month total return (2)............... (2.94%) (2.44%) .54%
One-year total return (2)................ .24% .51% 3.50%
Five-year average annual total return
(2)...................................... 7.03% 7.05% 7.26%
Ten-year average annual total return
(2)...................................... 7.41% N/A N/A
Life-of-Fund average annual total return
(2)...................................... 7.09% 6.74% 6.36%
Commencement date........................ 01/02/86 07/20/92 12/10/93
DISTRIBUTION RATES AND YIELD
Distribution rate (3).................... 5.54% 5.10% 5.10%
Taxable-equivalent distribution rate
(4)...................................... 8.66% 7.97% 7.97%
SEC Yield (5)............................ 5.07% 4.55% 4.56%
</TABLE>

N/A = Not Applicable

(1) Assumes 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).

(2) Standardized 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).

(3) Distribution rate represents the monthly annualized distributions of the
Fund at the end of the period and not the earnings of the Fund.

(4) Taxable-equivalent calculations reflect a federal income tax rate of 36%.

(5) SEC 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 May 31, 1999.

A portion of the interest income may be subject to the federal alternative
minimum tax (AMT).

See the 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.

Investing in high-yield, lower rated securities involves certain risks, which
may include the potential for greater sensitivity to general economic downturns
and greater market price volatility.

3
<PAGE> 5

PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN HIGH YIELD MUNICIPAL FUND

We recently spoke with the management team of the Van Kampen High Yield
Municipal Fund about the key events and economic forces that shaped the markets
during the past six months. The team is led by Wayne D. Godlin, portfolio
manager, who has managed the Fund since March 1990 and has worked in the
investment industry since 1984.

Mr. Godlin is joined by Peter W. Hegel, chief investment officer for
fixed-income investments. The following excerpts reflect their views on the
Fund's performance during the six-month period ended May 31, 1999.

Q HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT IN WHICH THE FUND HAS
OPERATED DURING THE PAST SIX MONTHS?

A The credit spread between high- and low-quality bonds has been the story
of the last six months, which has made the high-yield municipal market
very challenging. At the beginning of the period, low interest rates and
tight credit spreads made it difficult for us to find opportunities in the
market. With tighter credit spreads, it was hard for us to find the
higher-yielding bonds we prefer. During the remainder of the period, however,
interest rates began to rise and credit spreads began to widen, presenting a
very attractive environment in which to invest the Fund's assets.

Supply of high-yield municipal bonds was moderate during the past six
months, particularly in the new issue or primary market. Strong activity in the
secondary market, however, continued to benefit the portfolio. We had the
opportunity to acquire issues in the secondary market that helped the Fund's
return.

Q HOW DID YOU POSITION THE FUND IN THIS ENVIRONMENT?

A Regardless of whether credit spreads are tight or wide, we position the
Fund for the long term. Our research team of seven analysts continued to
analyze bonds on an individual basis and focused on uncovering value in
small to mid-size new issues, particularly in higher-yielding nonrated bonds. We
prefer to invest in nonrated bonds because we believe there has been a
significant improvement in their overall credit quality in a broad range of
sectors, yet they continue to offer high yield potential. As a result of this
strategy, the Fund benefited from significant improvements in the credit quality
of our holdings. As of May 31, 1999, 89 percent of the Fund's long-term
investments were invested in nonrated bonds.

Q WHAT OTHER STRATEGIES CONTRIBUTED TO THE FUND'S PERFORMANCE?

A Although the Fund's sector weightings are a reflection of where we found
opportunity on a bond-by-bond basis, we did benefit from purchases in
life-care projects, better known as continuing care retirement
communities, and tax-credit

4
<PAGE> 6
multifamily housing deals. We favor investing in multifamily housing because
these projects often carry significant investments by major corporations, which
bolsters their credit rating. In addition, the deals are generally in the $5
million to $15 million range that we prefer.

Generally, we look for opportunities to invest in sectors that have
typically had low sensitivity to changes in the economy--such as health care and
low- to moderate-income housing. We believe these sectors cultivate demand in a
strong or weak economy. During the period, this strategy helped the fund's
overall return and offset the tighter credit spread environment. For additional
Fund portfolio highlights, please refer to page 8.

Q HOW DO YOU FEEL ABOUT THE FUND'S PERFORMANCE DURING THE PAST SIX MONTHS?

A Considering the credit spread challenge we faced at the beginning of the
period, we are pleased with the Fund's overall performance. The total
return for the six months ended May 31, 1999, was 1.89 percent(1) (Class A
shares at net asset value), and the Fund's net asset value closed the reporting
period at $11.55 per Class A share, down from $11.66 at the beginning of the
period. The Fund's Class A share tax-exempt distribution rate as of May 31,
1999, was 5.54 percent(3), representing a taxable-equivalent distribution rate
of 8.66 percent(4) for an investor in the 36 percent federal income tax bracket.
The Fund's SEC yield was 5.07 percent. Past performance does not guarantee
future results.

Our total return record continued to outpace the Lehman Brothers Municipal
Bond Index, which returned 0.81 percent during the same six-month period. This
broad-based index of municipal bonds does not reflect any commissions or sales
charges that would be paid by an investor purchasing the securities or
investments it represents. Please refer to the chart and footnotes on page 3 for
additional Fund performance results.

Q WHAT OTHER FACTORS HAVE ADDED TO THE FUND'S LONG-TERM SUCCESS?

A We believe our disciplined approach and our strengths as a management
team, particularly in primary market research, have helped the Fund's
long-term performance. At the beginning of the period, two of our research
analysts were recognized for their research capabilities in the latest Smith's
Research & Ratings Review analyst survey. This industry publication surveys
1,000 of the largest institutional investors in order to recognize the
industry's top bond analysts.

Historically, the Fund has had particularly strong performance in
health-care related issues. Therefore, it comes as no surprise that both of our
award-winning analysts specialize in the tax-exempt health-care sector.

5
<PAGE> 7

Q WHAT IS YOUR OUTLOOK FOR THE FUND IN THE NEXT SIX MONTHS?

A During the next few months, we believe interest rates will continue to
rise, and we anticipate a slight widening of credit spreads. We believe
that supply will be healthy within the primary market but thin in the
secondary market. We also expect to see further improvement in the credit
quality of nonrated bonds, which would help the average credit quality of the
Fund.

Overall, we don't expect to change our investment approach. We will continue
to focus on our strengths as a management team: doing primary market research
and finding value in nonrated bonds. In the long run, we believe these strengths
should continue to help the Fund to seek to achieve its investment
objective--providing shareholders with a high level of income exempt from
federal income tax.

[SIG.]
Peter W. Hegel

Chief Investment Officer
Fixed Income Investments

[SIG.]
Wayne D. Godlin

Portfolio Manager

6
<PAGE> 8

GLOSSARY OF TERMS

BASIS POINT: A measure used in quoting bond yields. One hundred basis points is
equal to 1 percent. For example, if a bond's yield changes from 7.00 to 6.65
percent, it is a 35 basis-point move.

CLASS A SHARES: When Class A shares of a fund are purchased, the share price
includes the net asset value plus a one-time sales charge (or "load"). In
most cases, there is no redemption fee (contingent deferred sales charge).

CREDIT RATING: An evaluation of an issuer's credit history and capability of
repaying obligations. Standard & Poor's and Moody's Investors Service are
two companies that assign bond ratings. Standard & Poor's ratings range from
a high of AAA to a low of D, while Moody's ratings range from a high of Aaa
to a low of C.

CREDIT SPREAD: Also called quality spread, the difference in yield between
higher-quality issues (such as Treasury securities) and lower-quality
issues. Normally, lower-quality issues provide higher yields to compensate
investors for the additional credit risk.

MUNICIPAL BOND: A debt security issued by a state, municipality, or other state
or local government entity to finance capital expenditures of public
projects, such as the construction of highways, public works, or school
buildings. Interest on public-purpose municipal bonds is exempt from federal
income taxes and, in some states, from state and local income taxes.

SECONDARY MARKET: A market where securities are traded after they are initially
offered.

YIELD: The annual rate of return on an investment, expressed as a percentage.

YIELD SPREAD: The additional yield investors can earn by either investing in
bonds with longer maturities or by investing in bonds with lower ratings.
The spread is the difference in yield between bonds with short versus long
maturities or the difference in yield between high-quality bonds and
lower-quality bonds.

7
<PAGE> 9

PORTFOLIO HIGHLIGHTS
VAN KAMPEN HIGH YIELD MUNICIPAL FUND

TOP FIVE STATES AS OF MAY 31, 1999*

<TABLE>
<S> <C>
Pennsylvania.............. 11.4%
Florida................... 8.8%
Massachusetts............. 8.5%
Illinois.................. 7.5%
California................ 6.0%
</TABLE>

CREDIT QUALITY*

AS OF MAY 31, 1999

[PIE CHART]

Non-Rated
---------
<S> <C>
As of May 31, 1999 88.60
</TABLE>

AS OF NOVEMBER 30, 1998
[PIE CHART]

<TABLE>
<CAPTION>
AAA/Aaa AA/Aa A/A BBB/Baa BB/Ba B/B CCC/CAA
------- ----- --- ------- ----- --- -------
<S> <C> <C> <C> <C> <C> <C> <C>
As of November 30,
1998 2.60 1.00 1.50 3.50 4.80 0.70 0.10
<CAPTION>
Non-Rated
---------
<S> <C>
As of November 30,
1998 85.80
</TABLE>

Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.

DIVIDEND HISTORY FOR THE PERIOD ENDED MAY 31, 1999

[BAR GRAPH]

<TABLE>
<CAPTION>
DIVIDEND
--------
<S> <C>
'Dec 1998' 0.0580
'Jan 1999' 0.0560
'Feb 1999' 0.0560
'Mar 1999' 0.0560
'Apr 1999' 0.0560
'May 1999' 0.0560
</TABLE>

The dividend history represents past performance of the Fund's Class A shares
and does not predict the Fund's future distributions.

TOP FIVE PORTFOLIO INDUSTRIES*

[BAR GRAPH]

<TABLE>
<CAPTION>
MAY 31, 1999 NOVEMBER 30, 1998
------------ -----------------
<S> <C> <C>
Other Care 23 22.3
Industrial Revenue 17.2 16.4
Multi/Family Housing 16.4 16.4
Health Care 16.2 17.2
Tax District 7.2 7.7
</TABLE>

*As a Percentage of Long-Term Investments

8
<PAGE> 10

PORTFOLIO OF INVESTMENTS

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS 97.9%
ALABAMA 0.6%
$ 750 Vincent, AL Indl Dev Brd Shelby Motel
Group Inc Proj....................... 10.500% 09/01/16 $ 735,937
4,000 West Jefferson Cnty, AL Amusement &
Pub Pk Auth First Mtg Visionland
Proj................................. 6.375 02/01/29 4,020,160
3,255 West Jefferson Cnty, AL Amusement &
Pub Pk Auth First Mtg Visionland Proj
(Prerefunded @ 12/01/06)............. 8.000 12/01/26 4,062,175
--------------
8,818,272
--------------
ALASKA 0.2%
2,250 Seward, AK Rev AK Sealife Cent
Proj................................. 7.650 10/01/16 2,378,272
--------------
ARIZONA 2.3%
1,205 Casa Grande, AZ Indl Dev Auth Rfdg... 8.250 12/01/15 1,261,430
2,843 Chandler, AZ Indl Dev Auth Rev
Chandler Fin Cent Proj Ser 1986
(b).................................. 9.875 12/01/16 2,416,696
3,000 Flagstaff, AZ Indl Dev Auth Rev Sr
Living Cmnty Northern AZ Ser A....... 6.200 09/01/28 2,905,320
5,500 Maricopa Cnty, AZ Indl Dev Auth
Multi-Family Hsg Rev (d)............. 6.625 07/01/33 5,522,385
3,000 Maricopa Cnty, AZ Indl Dev Auth Sr
Living Fac Rev....................... 7.750 04/01/15 3,176,280
999 Peoria, AZ Indl Dev Auth Sierra Winds
Life Care Cmnty Proj (Var Rate
Cpn)................................. 8.500 11/01/17 1,076,992
3,000 Pima Cnty, AZ Indl Dev Auth
Multi-Family Rev (d)................. 6.625 10/01/28 3,028,230
2,000 Pima Cnty, AZ Indl Dev Auth Rev La
Posada at Park Cent Ser A............ 7.000 05/15/27 2,108,420
3,600 Pima Cnty, AZ Indl Dev Auth Sr Living
Facs Catilina Vlg Rev Ser A.......... 6.500 07/01/29 3,529,836
1,025 Pinal Cnty, AZ Indl Dev Auth Casa
Grande Regl Med Cent Proj Ser A...... 8.125 12/01/22 1,118,767
475 Pinal Cnty, AZ Indl Dev Auth Casa
Grande Regl Med Cent Proj Ser B...... 8.125 12/01/22 518,453
2,115 Red Hawk Canyon Cmnty Facs Dist No 2
AZ Dist Assmt Rev.................... 6.500 12/01/12 2,100,914
</TABLE>

See Notes to Financial Statements

9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ARIZONA (CONTINUED)
$1,035 Scottsdale, AZ Indl Dev Auth Rev
First Mtg Westminster Vlg Ser A
Rfdg................................. 8.000% 06/01/11 $ 1,151,262
2,000 Scottsdale, AZ Indl Dev Auth Rev
First Mtg Westminster Vlg Ser A
Rfdg................................. 8.250 06/01/15 2,239,340
1,845 Tuscon, AZ Indl Dev Auth Rev Clarion
Santa Rita Hotel Ser A Rfdg (d)...... 6.375 12/01/16 1,819,557
--------------
33,973,882
--------------
ARKANSAS 0.3%
500 Fayetteville, AR Pub Fac Brd Rev
Butterfield Trail Vlg Proj Ser B
(Prerefunded @ 09/01/99)............. 9.500 09/01/14 517,585
4,260 Jackson Cnty, AR Hlthcare Fac Brd
First Mtg Hosp Rev Newport Hosp &
Clinic Inc........................... 7.375 11/01/11 4,392,827
--------------
4,910,412
--------------
CALIFORNIA 5.9%
1,255 Abag Fin Auth For Nonprofit Corps CA
Ctfs Partn........................... 6.375 11/15/15 1,244,872
1,455 Abag Fin Auth For Nonprofit Corps CA
Ctfs Partn........................... 6.375 11/15/28 1,426,540
1,210 California Edl Fac Auth Rev Pacific
Graduate Sch of Psych................ 7.600 11/01/21 1,286,472
2,350 California Edl Fac Auth Rev Pacific
Graduate Sch of Psych................ 8.000 11/01/21 2,550,737
2,000 Corona, CA Ctfs Partn Vista Hosp Sys
Inc Ser B............................ 9.500 07/01/20 2,006,140
2,500 Corona, CA Ctfs Partn Vista Hosp Sys
Inc Ser C............................ 8.375 07/01/11 2,492,750
1,500 Davis, CA Pub Fac Fin Auth Loc Agy
Rev.................................. 6.600 09/01/25 1,576,005
1,300 Emeryville, CA Impt Bond Act 1915
Assmt Dist 93-1 East Baybridge....... 7.300 09/02/21 1,342,731
1,000 Folsom, CA Pub Fin Auth Ser A........ 6.875 09/02/19 1,031,940
1,500 Folsom, CA Spl Tax Cmnty Fac Dist No
7 Rfdg............................... 7.250 09/01/21 1,613,520
1,000 Fontana, CA Spl Tax Cmnty Facs Dist
11 Ser A Rfdg........................ 6.500 09/01/28 981,270
2,000 Fontana, CA Spl Tax Cmnty Facs Dist
11 Ser B............................. 6.500 09/01/28 1,962,540
</TABLE>

See Notes to Financial Statements

10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$2,660 Fresno, CA Ctfs Partn................ 8.500% 05/01/16 $ 2,791,856
840 Healdsburg, CA Ctfs Partn Nuestro
Hosp Inc............................. 6.250 11/01/08 833,473
2,500 Healdsburg, CA Ctfs Partn Nuestro
Hosp Inc............................. 6.375 11/01/28 2,424,075
990 Indio, CA Pub Fin Auth Rev Tax
Increment............................ 6.500 08/15/27 1,024,175
4,550 Lake Elsinore, CA Pub Fin Auth Loc
Agy Rev.............................. 7.100 09/01/20 4,872,959
1,500 Los Angeles, CA Cmnty Fac Dist Spl
Tax No 3 Cascades Business Pk........ 6.400 09/01/22 1,547,730
3,000 Merced, CA Irrigation Dist Rev Ctfs
Partn Sub Electric Sys Proj.......... 6.300 03/01/19 3,016,860
4,500 Millbrae, CA Residential Fac Rev
Magnolia of Millbrae Proj Ser A...... 7.375 09/01/27 4,806,585
1,000 Moreno Vly, CA Spl Tax Towngate Cmnty
Fac Dist 87-1........................ 7.125 10/01/23 1,041,470
2,000 Perris, CA Pub Fin Auth Loc Agy Rev
Ser D................................ 7.875 09/01/25 2,208,480
1,500 Rancho Cucamonga, CA Cmnty Fac Dist
Spl Tax No 88-2...................... 8.250 09/01/19 1,652,145
100 Rancho Cucamonga, CA Cmnty Fac Dist
Spl Tax No 88-2...................... 8.000 09/01/20 109,255
3,000 Reedley, CA Ctfs Partn............... 7.500 10/01/26 3,239,340
3,105 Richmond, CA Redev Agy Multi-Family
Rev Ser A............................ 7.500 09/01/23 3,267,299
7,500 Riverside Cnty, CA Air Force Vlg West
Inc Ser A Rfdg (a)................... 8.125 06/15/20 8,144,700
4,000 Sacramento, CA City Fin Auth Rev Sr
Convention Cntr Hotel Ser A.......... 6.250 01/01/30 3,981,320
2,000 Sacramento, CA Spl Tax Cmnty Fac Dist
No 97-1 Ser A........................ 6.700 09/01/17 2,087,380
2,000 Sacramento, CA Spl Tax Cmnty Fac Dist
No 97-1 Ser A........................ 6.750 09/01/27 2,072,620
2,500 San Bernardino, CA Assoc Cmntys Fin
Auth Hlthcare Ctfs Partn............. 6.900 05/01/27 2,518,000
3,000 San Bernardino, CA Hosp Rev San
Bernardino Cmnty Hosp Rfdg........... 7.875 12/01/19 3,128,490
</TABLE>

See Notes to Financial Statements

11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$1,900 San Luis Obispo, CA Ctfs Partn Vista
Hosp Sys Inc......................... 8.375% 07/01/29 $ 1,891,887
3,000 Santa Ana, CA Cmnty Redev Agy Tax
Alloc Ser B Rfdg..................... 7.500 09/01/16 3,076,440
2,000 Simi Valley, CA Cmnty Dev Agy Coml
Sycamore Plaza II Rfdg............... 6.000 09/01/12 2,115,460
2,000 Vallejo, CA Hiddenbrooke Impt
Dist No 1............................ 6.500 09/01/31 2,002,440
3,000 Ventura, CA Port Dist Ctfs Partn..... 6.375 08/01/28 2,991,780
--------------
86,361,736
--------------
COLORADO 3.8%
2,000 Arvada, CO Multi-Family Rev Hsg
Arvada Nightingale Proj Rfdg......... 6.250 12/01/18 1,995,520
1,060 Berry Creek Metro Dist CO Rfdg....... 7.300 12/01/12 1,124,172
2,367 Bowles Metro Dist CO (Prerefunded @
12/01/05)............................ 7.750 12/01/15 2,804,919
2,250 Colorado Hlth Fac Auth Rev Baptist
Home Assn Ser A...................... 6.375 08/15/24 2,328,255
1,300 Colorado Hlth Fac Auth Rev Sr Living
Fac Eaton Terrace Ser A.............. 6.800 07/01/09 1,341,535
3,250 Colorado Hlth Fac Auth Rev Sr Living
Fac Eaton Terrace Ser A.............. 7.250 07/01/22 3,334,988
1,500 Colorado Hlth Fac Auth Rev Christian
Living Campus Proj................... 9.000 01/01/25 1,742,235
2,000 Colorado Hlth Fac Auth Rev Shalom Pk
Proj Rfdg & Impt..................... 7.250 12/15/25 2,069,520
1,100 Colorado Hlth Facs Auth Hlth &
Residential Care Facs Volunteers of
America Ser A........................ 6.000 07/01/29 1,058,508
1,250 Cordillera Metro Dist CO Eagle Cnty
(Prerefunded @ 12/01/04)............. 8.250 12/01/13 1,514,000
3,000 Cottonwood Wtr & Sanitation Dist CO
Ser A Rfdg........................... 7.750 12/01/20 3,206,460
1,055 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.375 03/01/09 1,165,997
1,130 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.500 03/01/14 1,238,220
</TABLE>

See Notes to Financial Statements

12
<PAGE> 14
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
$ 815 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.875% 03/01/19 $ 898,472
1,815 Denver, CO Urban Renewal Auth Tax
Increment Rev South Bdwy/Montgomery
Ward................................. 8.500 05/01/16 2,001,509
2,000 Eagle Cnty, CO Air Term Corp Rev Arpt
Term Proj............................ 7.500 05/01/21 2,151,360
1,000 Eaglebend, CO Affordable Hsg Corp
Multi-Family Rev Hsg Proj............ 6.200 07/01/12 1,052,020
1,735 Eaglebend, CO Affordable Hsg Corp
Multi-Family Rev Hsg Proj............ 6.400 07/01/17 1,824,405
1,500 Eaglebend, CO Affordable Hsg Corp
Multi-Family Rev Hsg Proj............ 6.450 07/01/21 1,577,100
4,000 Fairlake Metro Dist City & Cnty of
Denver, CO (Prerefunded @
12/01/01)............................ 9.625 12/01/10 4,547,120
2,500 Hyland Hills, CO Metro Pk & Rec Dist
Spl Rev Ser A (Prerefunded @
12/15/02)............................ 8.625 12/15/12 2,926,125
4,000 Lafayette, CO Indl Dev Rev Rocky
Medium Term Nt Instr Proj Ser A...... 7.000 10/01/18 3,898,760
500 Lafayette, CO Indl Dev Rev Rocky
Medium Term Nt Instr Proj Ser B...... 6.125 10/01/08 496,030
905 Landmark Metro Dist CO (Prerefunded @
06/01/00)............................ 8.750 12/01/05 958,024
4,220 Northern Metro Dist CO Adams Cnty
Rfdg (d)............................. 6.500 12/01/16 4,485,860
500 Panorama Metro Dist CO Ser B Rfdg
(Prerefunded @ 12/01/99)............. 9.000 12/01/09 519,235
145 Skyland Metro Dist CO Gunnison Cnty
Rfdg (Var Rate Cpn).................. 6.000 12/01/08 103,762
750 Snowmass Vlg, CO Multi-Family Hsg Rev
Ser A Rfdg........................... 8.000 09/01/14 787,860
660 Superior, CO Metro Dist No 2 Ser A
Rfdg................................. 7.250 12/01/02 703,672
2,000 Telluride, CO Hsg Auth Hsg Rev
Shandoka Apts Proj Rfdg.............. 7.875 06/01/17 2,107,300
--------------
55,962,943
--------------
</TABLE>

See Notes to Financial Statements

13
<PAGE> 15
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONNECTICUT 2.0%
$1,000 Connecticut St Dev Auth Mystic
Marinelife Aquar Proj Ser A.......... 7.000% 12/01/27 $ 1,055,480
2,195 Connecticut St Dev Auth First Mtg
Gross Rev Hlthcare Proj CT Baptist
Homes Inc Proj....................... 8.750 09/01/12 2,404,930
1,500 Connecticut St Dev Auth First Mtg
Gross Rev Hlthcare Proj CT Baptist
Homes Inc Proj....................... 9.000 09/01/22 1,654,395
1,325 Connecticut St Dev Auth Hlthcare Rev
Indpt Living Proj Ser B (Prerefunded
@ 07/01/03).......................... 8.000 07/01/17 1,535,026
1,850 Connecticut St Dev Auth Hlthcare Rev
Jerome Home Proj (Prerefunded @
11/01/99)............................ 8.000 11/01/19 1,922,020
3,360 Connecticut St Dev Auth Indl Dev Rev
Watson Foods Co Inc Proj............. 5.900 06/01/28 3,335,976
2,500 Connecticut St Hlth & Edl Fac Auth
Rev Tolland Cnty Hlthcare Inc Ser
A.................................... 9.200 07/01/21 2,729,825
2,000 Connecticut St Hlth & Edl Fac Auth
Rev Tolland Cnty Hlthcare Inc Ser
A.................................... 6.875 07/01/27 2,128,720
300 Connecticut St Hlth & Edl Facs Auth
Rev.................................. 6.875 07/01/17 319,308
5,000 Greenwich, CT Hsg Auth Multi-Family
Rev Hsg Greenwich Close Ser A (a).... 6.350 09/01/27 5,126,900
1,705 Greenwich, CT Hsg Auth Multi-Family
Rev Hsg Greenwich Close Ser B........ 7.500 09/01/27 1,713,099
1,435 Manchester, CT Redev Agy Multi-Family
Mtg Rev Bennet Hsg Dev Rfdg.......... 7.200 12/01/18 1,545,624
1,365 New Haven, CT Fac Rev Easter Seal
Goodwill Rehab Proj (b).............. 8.875 04/01/16 1,277,913
2,205 New Haven, CT Indl Fac Rev Adj Govt
Cent Thermal Energies................ 7.250 07/01/09 2,274,369
--------------
29,023,585
--------------
DELAWARE 0.5%
2,215 Delaware St Econ Dev Auth Indl Dev
Rev First Mtg Dover Hlthcare Rfdg.... 7.875 04/01/08 2,380,372
940 Delaware St Econ Dev Auth Rev
Osteopathic Hosp Assn of DE Ser A
(Prerefunded @ 07/01/04)............. 9.500 01/01/22 1,176,118
</TABLE>

See Notes to Financial Statements

14
<PAGE> 16
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DELAWARE (CONTINUED)
$3,500 Wilmington, DE Multi-Family Rent Rev
Hsg Electra Arms Sr Assoc Proj....... 6.250% 06/01/28 $ 3,408,650
--------------
6,965,140
--------------
DISTRICT OF COLUMBIA 0.4%
1,545 District of Columbia Rev Methodist
Home Issue........................... 6.000 01/01/29 1,509,372
3,500 District of Columbia Rev Natl Pub
Radio Ser A.......................... 7.700 01/01/23 3,768,030
--------------
5,277,402
--------------
FLORIDA 8.6%
990 Arbor Greene Cmnty Dev Dist FL Spl
Assmt Rev............................ 6.300 05/01/19 996,989
875 Atlantic Beach, FL Rev Fleet Landing
Proj Ser A Rfdg & Impt............... 7.500 10/01/02 906,832
2,085 Atlantic Beach, FL Rev Fleet Landing
Proj Ser A Rfdg & Impt............... 7.875 10/01/08 2,323,670
1,500 Bay Cnty, FL Hosp Sys Rev Bay Med
Cent Proj Rfdg (Prerefunded @
10/01/04)............................ 8.000 10/01/12 1,767,225
500 Bay Cnty, FL Hosp Sys Rev Bay Med
Cent Proj Rfdg (Prerefunded @
10/01/04)............................ 8.000 10/01/19 600,035
1,980 Bayside Impt Cmnty Dev Dist FL Ser
A.................................... 6.300 05/01/18 1,988,415
350 Bayside Impt Cmnty Dev Dist FL Ser
B.................................... 6.375 05/01/18 352,167
1,050 Bobcat Trail Cmnty, FL Dev Dist Cap
Impt Rev............................. 6.750 05/01/04 1,069,141
1,300 Bobcat Trail Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.500 05/01/19 1,361,607
3,335 Boca Raton, FL Hsg Auth Mtg Hsg Rev
First Lien Banyan Place Sr Living Ser
A.................................... 7.150 04/01/31 3,391,795
910 Boca Raton, FL Hsg Auth Mtg Hsg Rev
Second Lien Banyan Place Sr Living
Ser B................................ 8.700 10/01/32 933,496
1,180 Brevard Cnty, FL Hlth Fac Auth Rev
Courtenay Springs Vlg Rfdg........... 7.375 11/15/04 1,286,932
2,200 Brevard Cnty, FL Hlth Fac Auth Rev
Courtenay Springs Vlg Rfdg........... 7.750 11/15/17 2,603,876
2,840 Championsgate Cmnty Dev Dist FL Cap
Impt Rev Ser A....................... 6.250 05/01/20 2,840,937
150 Charlotte Cnty, FL Indl Dev Auth Rev
Beverly Enterprises Rfdg............. 10.000 06/01/11 165,084
</TABLE>

See Notes to Financial Statements

15
<PAGE> 17
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$1,260 Collier Cnty, FL Indl Dev Auth
Retirement Rental Hsg Rev............ 10.750% 03/01/03 $ 1,390,637
4,285 Fishhawk Cmnty, FL Dev Dist Spl Assmt
Rev.................................. 7.625 05/01/18 4,584,222
4,000 Florida Hsg Fin Corp Rev Hsg Beacon
Hill Apts Ser C...................... 6.610 07/01/38 4,027,800
4,000 Florida Hsg Fin Corp Rev Hsg Cypress
Trace Apts Ser G..................... 6.600 07/01/38 4,027,800
4,000 Florida Hsg Fin Corp Rev Hsg
Westbrook Apts Ser U1................ 6.450 01/01/39 3,926,760
5,000 Florida Hsg Fin Corp Rev Hsg
Westchase Apts Ser B (a)............. 6.610 07/01/38 5,034,750
815 Fort Walton Beach, FL Indl Dev Rev
First Mtg Fort Walton Beach Venture
Proj................................. 10.500 12/01/16 842,743
1,000 Heritage Harbor Cmnty Dev Dist FL Rev
Recntl............................... 7.750 05/01/19 1,005,970
1,000 Heritage Harbor Cmnty Dev Dist FL Rev
Spl Assmt Ser A...................... 6.700 05/01/19 1,013,650
955 Heritage Harbor Cmnty Dev Dist FL Rev
Spl Assmt Ser B...................... 6.000 05/01/03 964,063
1,015 Hernando Cnty, FL Indl Dev Rev
Beverly Enterprises Rfdg............. 10.000 09/01/11 1,126,142
3,000 Hialeah Gardens, FL Indl Dev Rev
Waterford Convalescent Ser A Rfdg.... 8.250 12/01/14 3,255,990
1,500 Homestead, FL Indl Dev Rev Brookwood
Gardens Cent Proj Ser A Rfdg......... 8.250 12/01/14 1,627,995
1,265 Lake Bernadette, FL Cmnty Dev Dist
Spl Assmt Rev Ser A.................. 8.000 05/01/17 1,345,568
2,385 Lake Saint Charles, FL Cmnty Dev Dist
Spl Assmt Rev........................ 7.875 05/01/17 2,539,309
2,350 Largo, FL Sun Coast Hlth Sys Rev
Hosp................................. 6.300 03/01/20 2,366,661
680 Lee Cnty, FL Indl Dev Auth Econ Rev
Encore Nursing Cent Partn Rfdg....... 8.125 12/01/07 740,955
5,000 Leon Cnty, FL Edl Facs Auth Rev
Southgate Residence Hall Ser A
Rfdg................................. 6.750 09/01/28 5,108,600
4,055 Mount Dora, FL Hlth Fac Auth Hlth
Rev.................................. 7.125 08/15/21 4,171,297
1,900 North Springs, FL Impt Dist Spl Assmt
Rev.................................. 6.250 05/01/05 1,931,977
</TABLE>

See Notes to Financial Statements

16
<PAGE> 18
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$1,000 North Springs, FL Impt Dist Spl Assmt
Rev.................................. 7.000% 05/01/19 $ 1,061,530
3,000 Northern Palm Beach Cnty, FL Impt
Dist Wtr Ctl & Impt Unit Dev......... 7.200 08/01/16 3,247,770
2,500 Northern Palm Beach Cnty, FL Impt
Dist Wtr Ctl & Impt Unit Dev......... 7.300 08/01/27 2,709,750
2,000 Okaloosa Cnty, FL Retirement Encore
Retirement Partners Rfdg............. 6.125 02/01/14 1,979,780
440 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.125 07/01/06 481,246
2,035 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.400 07/01/14 2,320,572
1,325 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.625 07/01/20 1,530,295
1,250 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.750 07/01/26 1,436,362
2,370 Orange Cnty, FL Hsg Fin Auth Hsg
Alhambra Trace Apts Proj Ser C....... 7.375 04/01/28 2,388,984
2,480 Orange Cnty, FL Hsg Fin Auth
Multi-Family Rev Mtg Hands Inc Proj
Ser A................................ 7.875 10/01/15 2,721,602
2,035 Orange Cnty, FL Hsg Fin Auth
Multi-Family Rev Mtg Hands Inc Proj
Ser A................................ 8.000 10/01/25 2,246,396
415 Orange Cnty, FL Indl Dev Auth Rev
Beverly Enterprises Proj Rfdg........ 9.250 08/01/10 452,960
2,995 Overoaks, FL Cmnty Dev Dist Cap Impt
Rev.................................. 8.250 05/01/17 3,273,655
3,000 Pinellas Cnty, FL Edl Fac Auth Rev
College Harbor Proj Ser A............ 8.250 12/01/21 3,253,290
1,000 Piney Z Cmnty Dev Dist FL Cap Impt
Rev Ser A............................ 7.250 05/01/19 1,028,750
1,285 Piney Z Cmnty Dev Dist FL Cap Impt
Rev Ser B............................ 6.500 05/01/02 1,285,090
1,370 Plantation, FL Hlth Fac Auth Rev
Covenant Retirement Cmnty Inc
(Prerefunded @ 12/01/02)............. 7.625 12/01/12 1,552,731
750 Plantation, FL Hlth Fac Auth Rev
Covenant Retirement Cmnty Inc
(Prerefunded @ 12/01/02)............. 7.750 12/01/22 853,072
</TABLE>

See Notes to Financial Statements

17
<PAGE> 19
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$1,000 Saint John's Cnty, FL Indl Dev Auth
Hlthcare Rev Bayview Proj Ser A...... 7.100% 10/01/16 $ 1,069,570
2,000 Saint John's Cnty, FL Indl Dev Auth
Hlthcare Rev Bayview Proj Ser A...... 7.100 10/01/26 2,143,540
250 Santa Rosa Cnty, FL Indl Dev Auth Rev
First Mtg Sandy Ridge Care Cent...... 10.500 04/01/16 253,618
1,000 Sarasota Cnty, FL Hlth Fac Auth Rev
Hlthcare Manatee Jewish Rfdg......... 7.000 07/01/16 1,052,760
2,300 Tamarac, FL Indl Dev Rev Sun Belt
Precision Prods Inc.................. 6.500 08/01/17 2,334,247
1,650 Tampa Palms, FL Open Space & Transn
Cmnty Dev Dist Rev Cap Impt Area 7
Proj................................. 8.500 05/01/17 1,804,423
2,150 Tampa Palms, FL Open Space & Transn
Cmnty Dev Dist Rev Cap Impt Area 7
Proj................................. 7.500 05/01/18 2,282,053
710 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.125 11/01/06 802,080
1,775 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.500 11/01/16 2,060,438
2,000 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.625 11/01/26 2,421,560
1,685 Westchase East Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.500 05/01/17 1,783,960
1,965 Westchase East Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.300 05/01/18 2,086,732
--------------
127,539,906
--------------
GEORGIA 1.9%
1,640 Athens Clarke Cnty, GA Residential
Care Fac for the Elderly Auth Rev.... 6.350 10/01/17 1,664,026
1,720 Athens Clarke Cnty, GA Residential
Care Fac for the Elderly Auth Rev.... 6.375 10/01/27 1,740,709
3,000 Atlanta, GA Urban Residential Fin
Auth Multi-Family Hsg Renaissance on
Peachtree Apts Proj Ser 85........... 8.500 04/01/26 3,342,480
3,300 Atlanta, GA Urban Residential Fin
Auth Multi-Family Rev Proj Ser A..... 6.750 07/01/30 3,335,640
</TABLE>

See Notes to Financial Statements

18
<PAGE> 20
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GEORGIA (CONTINUED)
$ 375 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 7.625% 10/01/06 $ 414,814
1,500 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 8.200 10/01/16 1,710,015
1,500 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 8.250 10/01/26 1,714,410
500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.000 10/01/08 496,080
1,500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.250 10/01/18 1,465,335
1,500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.375 10/01/28 1,463,895
1,000 Fulton Cnty, GA Hsg Auth Multi-Family
Hsg Rev.............................. 6.375 02/01/08 1,005,840
4,000 Fulton Cnty, GA Hsg Auth Multi-Family
Hsg Rev.............................. 6.500 02/01/28 4,039,360
300 Richmond Cnty, GA Dev Auth Nursing
Home Rev Beverly Enterprises GA Proj
Rfdg................................. 8.750 06/01/11 329,889
3,000 Rockdale Cnty, GA Dev Auth Solid
Waste Disp Visy Paper Inc Proj....... 7.500 01/01/26 3,171,180
1,500 Smyrna, GA Hosp Auth Rev First Mtg
Woodland Ridge Proj.................. 6.000 07/01/28 1,462,650
--------------
27,356,323
--------------
HAWAII 0.1%
840 Hawaii Cnty, HI Impt Dist No 17 Spl
Assmt Kaloko Subdivision............. 9.500 08/01/11 897,817
--------------
ILLINOIS 7.4%
1,475 Bedford Park, IL Tax Increment Rev
71st & Cicero Proj Rfdg.............. 7.375 01/01/12 1,589,637
1,445 Bedford Park, IL Tax Increment Rev
Mark IV Proj (Prerefunded @
03/01/02)............................ 9.750 03/01/12 1,677,472
930 Bedford Park, IL Tax Increment Rev Sr
Lien Bedford City Sq Proj............ 9.250 02/01/12 1,041,414
2,810 Broadview, IL Tax Increment Rev Sr
Lien................................. 8.250 07/01/13 3,346,120
</TABLE>

See Notes to Financial Statements

19
<PAGE> 21
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 250 Carol Stream, IL First Mtg Rev
Windsor Park Manor Proj.............. 7.000% 12/01/13 $ 266,668
2,000 Carol Stream, IL First Mtg Rev
Windsor Park Manor Proj.............. 7.200 12/01/14 2,147,940
1,000 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev American Airls Inc Proj Ser A.... 8.200 12/01/24 1,170,560
540 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev American Airls Inc Proj Ser A.... 7.875 11/01/25 576,002
3,500 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev United Airls Inc................. 8.500 05/01/18 3,697,855
1,500 Chicago, IL Tax Increment............ 7.250 01/01/14 1,612,245
3,000 Clay Cnty, IL Hosp Rev............... 5.900 12/01/28 2,951,370
3,000 Crestwood, IL Tax Increment Rev
Rfdg................................. 7.250 12/01/08 3,196,890
2,000 Godfrey, IL Rev United Methodist Vlg
Ser A................................ 5.875 11/15/29 1,895,740
500 Hodgkins, IL Tax Increment Ser A
Rfdg................................. 9.500 12/01/09 567,340
4,000 Hodgkins, IL Tax Increment Ser A
Rfdg................................. 7.625 12/01/13 4,400,200
3,500 Huntley, IL Increment Alloc Rev
Huntley Redev Proj Ser A............. 8.500 12/01/15 4,034,485
2,450 Huntley, IL Spl Svc Area No 6........ 6.750 02/01/25 2,499,171
1,000 Huntley, IL Spl Svc Area No 7........ 6.300 03/01/28 988,750
2,470 Illinois Dev Fin Auth Hlth Fac Rev
Cmnty Living Options................. 7.125 03/01/10 2,671,552
690 Illinois Dev Fin Auth Rev Cmnty Fac
Clinic Altgeld Proj.................. 8.000 11/15/06 758,841
1,750 Illinois Dev Fin Auth Rev Cmnty Fac
Clinic Altgeld Proj.................. 8.000 11/15/16 1,919,068
2,000 Illinois Dev Fin Auth Rev Debt
Restructure-East Saint Louis......... 7.375 11/15/11 2,250,040
4,000 Illinois Edl Fac Auth Rev Peace Mem
Ministries Proj...................... 7.500 08/15/26 4,338,760
1,500 Illinois Edl Facs Auth Rev Lifelink
Corp Oblig Group Rfdg................ 5.850 02/15/20 1,486,515
4,295 Illinois Edl Facs Auth Rev Lifelink
Corp Oblig Group Rfdg................ 5.700 02/15/24 4,124,274
</TABLE>

See Notes to Financial Statements

20
<PAGE> 22
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 240 Illinois Hlth Fac Auth Rev Fairview
Oblig Group Ser A.................... 7.125% 08/15/17 $ 260,050
1,475 Illinois Hlth Fac Auth Rev Covenant
Retirement Cmntys Ser A.............. 7.600 12/01/12 1,627,087
3,000 Illinois Hlth Fac Auth Rev Fairview
Oblig Group Ser A Rfdg............... 7.400 08/15/23 3,289,200
470 Illinois Hlth Fac Auth Rev Hinsdale
Ser C................................ 9.500 11/15/19 520,591
1,700 Illinois Hlth Fac Auth Rev Lifelink
Corp Oblig Group Ser B (Prerefunded @
02/15/05)............................ 8.000 02/15/25 2,016,914
4,000 Illinois Hlth Fac Auth Rev Lutheran
Home & Svcs Proj Ser A............... 7.500 08/15/26 4,287,440
1,000 Illinois Hlth Facs Auth Rev Bohemian
Tabor Hills Ser B Rfdg............... 5.900 11/15/24 994,750
8,944 Illinois St Real Estate Lease Ctfs
(a) (b).............................. 8.800 06/15/18 10,377,276
1,135 Jackson Park Hosp Fndtn Chicago, IL
Jackson Park Hosp.................... 9.000 03/01/05 1,111,585
3,155 Loves Park, IL First Mtg Rev Hoosier
Care Proj Ser A...................... 9.750 08/01/19 3,263,406
1,810 Mill Creek Wtr Reclamation Dist IL
Sewage Rev........................... 8.000 03/01/10 2,049,354
1,080 Mill Creek Wtr Reclamation Dist IL
Wtrwks Rev........................... 8.000 03/01/10 1,222,819
2,480 Palatine, IL Tax Increment Rev
Rand/Dundee Cent Proj (Prerefunded @
01/01/07)............................ 7.750 01/01/17 2,982,324
765 Peoria, IL Spl Tax Weaverridge Spl
Svc Area............................. 7.625 02/01/08 828,977
2,050 Peoria, IL Spl Tax Weaverridge Spl
Svc Area............................. 8.050 02/01/17 2,250,838
4,100 Robbins, IL Res Recov Rev............ 8.375 10/15/16 2,203,750
1,455 Round Lake Beach, IL Tax Increment
Rev Rfdg............................. 7.200 12/01/04 1,576,623
2,500 Round Lake Beach, IL Tax Increment
Rev Rfdg............................. 7.500 12/01/13 2,723,625
2,855 Saint Charles, IL Indl Dev Rev
Tri-City Cent Proj................... 7.500 11/01/13 2,983,789
3,915 Saint Charles, IL Multi-Family Hsg
Rev Bonds Wessel Court Proj.......... 7.600 04/01/24 4,054,883
2,000 Saint Charles, IL Spl Svc Area No
21................................... 6.625 03/01/28 1,978,180
500 Sherman, IL Rev First Mtg Villa
Hlthcare Ser A....................... 8.250 10/01/14 518,360
</TABLE>

See Notes to Financial Statements

21
<PAGE> 23
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 500 Sherman, IL Rev First Mtg Villa
Hlthcare Ser A....................... 8.500% 10/01/24 $ 518,775
--------------
108,849,505
--------------
INDIANA 2.2%
470 Carmel, IN Retirement Rental Hsg Rev
Beverly Enterprises Inc Proj Rfdg.... 8.750 12/01/08 521,296
1,100 Crawfordsville, IN Redev Comm Dist
Tax Increment Rev.................... 7.350 02/01/17 1,128,512
1,430 Delaware Cnty, IN Redev Dist Tax
Increment Rev........................ 6.875 02/01/18 1,444,286
2,739 Indiana Dev Fin Auth Indl Dev Rev
Unr-Rohn Inc Proj (d)................ 7.500 03/01/11 2,942,847
1,000 Indiana Hlth Fac Auth Cmnty
Hartsfield Vlg Proj Ser A............ 6.250 08/15/14 1,015,180
2,000 Indiana Hlth Fac Auth Cmnty
Hartsfield Vlg Proj Ser A............ 6.375 08/15/27 2,034,800
1,500 Indiana Hlth Fac Auth Saint Anthony
Home................................. 7.000 05/15/17 1,546,320
1,000 Indiana Hlth Fac Auth Saint Anthony
Home................................. 7.250 05/15/24 1,038,530
2,975 Indiana Hlth Fac Fin Auth Rev Metro
Hlth/IN Inc Proj..................... 6.300 12/01/23 2,881,317
3,000 Indiana Hlth Fac Fin Auth Rev Metro
Hlth/IN Inc Proj..................... 6.400 12/01/33 2,895,060
175 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/10 72,618
135 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/11 52,109
130 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/12 46,290
130 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/13 42,916
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/14 38,225
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/15 35,467
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/16 32,859
</TABLE>

See Notes to Financial Statements

22
<PAGE> 24
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
$2,000 South Bend, IN Econ Dev Rev Ser A.... 6.250% 11/15/29 $ 1,964,940
435 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.300 01/01/02 434,282
980 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.500 01/01/07 976,100
1,405 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.750 01/01/12 1,397,160
2,045 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 8.000 01/01/17 2,031,626
3,005 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent (Prerefunded @
01/01/00)............................ 9.500 01/01/07 3,169,283
400 Wells Cnty, IN Hosp Auth Rev Caylor
Nickel Med Cent Inc Rfdg............. 8.500 04/15/03 439,832
3,600 Wells Cnty, IN Hosp Auth Rev Caylor
Nickel Med Cent Inc Rfdg............. 8.750 04/15/12 4,076,748
--------------
32,258,603
--------------
IOWA 0.7%
2,000 Cedar Rapids, IA Rev First Mtg
Cottage Grove........................ 5.875 07/01/28 1,941,580
3,290 Iowa Fin Auth Cmnty Provider Rev Boys
& Girls Home Family Proj............. 6.250 12/01/28 3,145,273
2,770 Iowa Fin Auth Multi-Family Rev Hsg
Park West Proj Rfdg.................. 8.000 10/01/23 2,861,354
2,265 Iowa Fin Auth Retirement Fac
Presbyterian Homes Mill Pond......... 6.000 10/01/33 2,127,560
1,000 Palo Alto Cnty, IA Hosp Rev Palo Alto
Cnty Hosp Proj....................... 6.000 08/01/28 1,006,310
--------------
11,082,077
--------------
KANSAS 0.7%
1,000 Lawrence, KS Coml Dev Rev Holiday Inn
Sr Ser A............................. 8.000 07/01/16 1,095,930
2,000 Lenexa, KS Hlthcare Fac Rev Lakeview
Vlg Ser B............................ 6.250 05/15/26 2,086,560
3,000 Manhattan, KS Coml Dev Rev Holiday
Inn Sr Ser A Rfdg.................... 8.000 07/01/16 3,287,790
</TABLE>

See Notes to Financial Statements

23
<PAGE> 25
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KANSAS (CONTINUED)
$3,125 Shawnee Cnty, KS Rev United Methodist
Homes Inc Ser A Rfdg................. 6.125% 11/15/19 $ 3,202,531
1,000 Wichita, KS Hlthcare Facs Rev
Larksfield Place Ser I............... 5.875 05/15/27 970,350
--------------
10,643,161
--------------
KENTUCKY 0.1%
1,195 Kenton Cnty, KY Arpt Brd Arpt Rev Spl
Fac Delta Airls Proj Ser A........... 8.100 12/01/15 1,241,474
--------------
LOUISIANA 2.3%
4,700 Hodge, LA Util Rev (a)............... 9.000 03/01/10 4,899,374
1,205 Iberia Parish, LA Hosp Svc Dist No 1
Hosp Rev............................. 7.500 05/26/06 1,221,954
2,000 Iberia Parish, LA Hosp Svc Dist No 1
Hosp Rev............................. 8.000 05/26/16 2,099,200
4,000 Lake Charles, LA Harbor & Terminal
Dist Port Fac Rev Trunkline Lng Co
Rfdg................................. 7.750 08/15/22 4,507,400
200 Louisiana Hsg Fin Agy Rev
Multi-Family Hsg Plantation Ser A.... 9.000 01/01/03 199,660
4,675 Louisiana Hsg Fin Agy Rev
Multi-Family Hsg Plantation Ser A.... 7.125 01/01/28 4,696,973
605 Louisiana Pub Fac Auth Rev Indl Dev
Beverly Enterprises Inc Rfdg......... 8.250 09/01/08 659,214
1,000 Louisiana Pub Facs Auth Rev
Progressive Hlthcare................. 6.375 10/01/20 978,800
1,000 Louisiana Pub Facs Auth Rev
Progressive Hlthcare................. 6.375 10/01/28 959,630
1,400 Port New Orleans, LA Indl Dev Rev
Avondale Inds Inc Proj Rfdg.......... 8.250 06/01/04 1,515,696
5,000 Port New Orleans, LA Indl Dev Rev
Continental Grain Co Proj Rfdg....... 7.500 07/01/13 5,191,900
2,500 Saint James Parish, LA Solid Waste
Disp Rev Kaiser Alum Proj............ 7.750 08/01/22 2,693,975
</TABLE>

See Notes to Financial Statements

24
<PAGE> 26
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
$3,000 St Tammany, LA Pub Trust Fin Auth Rev
Christwood Proj Rfdg................. 5.700% 11/15/28 $ 2,856,330
500 West Feliciana Parish, LA Pollutn Ctl
Rev Gulf States Util Co Proj Ser A... 7.500 05/01/15 545,360
1,000 West Feliciana Parish, LA Pollutn Ctl
Rev Gulf States Util Co Proj Ser B... 9.000 05/01/15 1,069,530
--------------
34,094,996
--------------
MAINE 0.3%
3,200 Maine Fin Auth Solid Waste Disposal
Rev Boise Cascade Corp Proj.......... 7.900 06/01/15 3,351,040
1,500 Maine Vets Homes ME Rev.............. 7.750 10/01/20 1,671,525
--------------
5,022,565
--------------
MARYLAND 1.6%
2,000 Anne Arundel Cnty, MD Spl Tax Dist
Farmington Vlg Proj Ser A............ 6.250 06/01/25 1,968,440
1,750 Baltimore Cnty, MD Nursing Fac
Eastpoint Rehab & Nursing Cent Ser
A.................................... 6.750 04/01/28 1,710,695
2,000 Baltimore Cnty, MD Pollutn Ctl Rev
Bethlehem Steel Corp Proj Ser A
Rfdg................................. 7.550 06/01/17 2,155,380
2,500 Baltimore Cnty, MD Pollutn Ctl Rev
Bethlehem Steel Corp Proj Ser B
Rfdg................................. 7.500 06/01/15 2,706,475
2,000 Calvert Cnty, MD Econ Dev Rev Asbury-
Solomons Island Fac Proj (Prerefunded
@ 01/01/05).......................... 8.375 01/01/15 2,419,740
750 Frederick Cnty, MD Retirement Cmnty
Rev.................................. 6.000 01/01/24 748,995
1,500 Frederick Cnty, MD Spl Olbig Urbana
Cmnty Dev Auth....................... 6.625 07/01/25 1,518,030
2,000 Maryland St Energy Fin Admin Ltd
Oblig Rev Cogeneration AES Warrior
Run.................................. 7.400 09/01/19 2,157,520
1,270 Montgomery Cnty, MD Econ Dev
Editorial Projs In Edl Ser A (d)..... 6.250 09/01/08 1,245,248
3,730 Montgomery Cnty, MD Econ Dev
Editorial Projs In Edl Ser A (d)..... 6.400 09/01/28 3,595,086
850 Prince Georges Cnty, MD Hosp Rev..... 6.375 01/01/23 382,500
</TABLE>

See Notes to Financial Statements

25
<PAGE> 27
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND (CONTINUED)
$3,000 Prince Georges Cnty, MD Spl Oblig Spl
Assmt Woodview Ser A................. 8.000% 07/01/26 $ 3,397,470
--------------
24,005,579
--------------
MASSACHUSETTS 8.3%
5,530 Massachusetts St Dev Fin Agy New
England Cntr For Children............ 6.000 11/01/19 5,459,271
1,425 Massachusetts St Dev Fin Agy Rev
Greater Lynn Mental Hlth Ser B....... 6.375 06/01/18 1,411,833
1,155 Massachusetts St Dev Fin Agy Rev
Boston Architectural Cent............ 6.100 09/01/18 1,131,196
1,445 Massachusetts St Dev Fin Agy Rev
Boston Architectural Cent............ 6.250 09/01/28 1,409,785
1,470 Massachusetts St Hlth & Edl Fac Auth
Rev Indpt Living Ser A............... 8.100 07/01/18 1,709,522
3,000 Massachusetts St Hlth & Edl Fac Auth
Rev Milford-Whitinsville Regl Hosp
Ser B (Prerefunded @ 07/15/02)....... 7.750 07/15/17 3,381,210
2,000 Massachusetts St Indl Fin Agy
Assisted Living Fac Rev.............. 8.000 09/01/27 2,228,560
2,000 Massachusetts St Indl Fin Agy
Assisted Living Fac Rev.............. 7.500 12/01/27 2,165,360
1,000 Massachusetts St Indl Fin Agy First
Mtg Pilgrim Inc Proj................. 6.500 10/01/15 984,100
2,850 Massachusetts St Indl Fin Agy
Hillcrest Edl Cent Inc Proj.......... 8.450 07/01/18 3,230,475
4,000 Massachusetts St Indl Fin Agy
Hlthcare Fac Rev Metro Hlth Fndtn Inc
Proj A............................... 6.750 12/01/27 4,233,080
2,000 Massachusetts St Indl Fin Agy
Trustees Deerfield Academy........... 6.750 10/01/28 1,959,760
675 Massachusetts St Indl Fin Agy Indl
Rev Beverly Enterprises
Inc/Gloucester & Lexington Proj
Rfdg................................. 8.000 05/01/02 697,849
800 Massachusetts St Indl Fin Agy Indl
Rev Beverly Enterprises
Inc/Gloucester & Lexington Proj
Rfdg................................. 8.375 05/01/09 869,688
500 Massachusetts St Indl Fin Agy Rev
Atlantic Med Cent Ser B.............. 10.125 11/01/14 523,560
</TABLE>

See Notes to Financial Statements

26
<PAGE> 28
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$3,430 Massachusetts St Indl Fin Agy Rev
Boston Architectural Cent Proj
(Prerefunded @ 09/01/99)............. 8.500% 09/01/19 $ 3,524,737
500 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.000 12/01/06 557,500
1,000 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.375 12/01/13 1,155,150
3,000 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.500 12/01/20 3,479,760
2,555 Massachusetts St Indl Fin Agy Rev
East Boston Neighborhood Proj........ 7.500 07/01/16 2,427,250
2,560 Massachusetts St Indl Fin Agy Rev
East Boston Neighborhood Proj........ 7.625 07/01/26 2,432,000
7,000 Massachusetts St Indl Fin Agy Rev
Emerson College Issue Ser A
(Prerefunded @ 01/01/01) (a)......... 8.900 01/01/18 7,673,890
785 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.000 11/01/06 875,424
4,100 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc (d)............... 9.250 11/01/11 4,456,618
1,230 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.375 11/01/13 1,445,914
2,165 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.500 11/01/20 2,568,470
1,005 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.400 01/15/09 1,029,522
2,000 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.625 01/15/14 2,057,240
2,000 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.875 01/15/20 2,068,460
690 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj.... 7.250 07/01/07 809,570
1,410 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj.... 7.400 07/01/12 1,651,716
</TABLE>

See Notes to Financial Statements

27
<PAGE> 29
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$1,530 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj.... 7.500% 07/01/17 $ 1,800,382
1,000 Massachusetts St Indl Fin Agy Rev
First Mtg Reeds Landing Proj......... 7.750 10/01/00 1,005,660
8,300 Massachusetts St Indl Fin Agy Rev
First Mtg Reeds Landing Proj (a)..... 8.625 10/01/23 9,257,654
1,700 Massachusetts St Indl Fin Agy Rev
First Mtg Stone Institute & Newton... 7.700 01/01/14 1,848,869
1,760 Massachusetts St Indl Fin Agy Rev
Glenmeadow Retirement Cmnty Ser C
(Prerefunded @ 02/15/06)............. 8.250 02/15/08 2,169,341
1,000 Massachusetts St Indl Fin Agy Rev
Glenmeadow Retirement Cmnty Ser C
(Prerefunded @ 02/15/06)............. 8.625 02/15/26 1,250,270
2,795 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth..................... 6.200 06/01/08 2,787,565
3,615 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth (Prerefunded @
06/01/04)............................ 8.800 06/01/14 4,627,453
6,000 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth (a)................. 6.375 06/01/18 5,922,000
1,135 Massachusetts St Indl Fin Agy Rev
HMEA Issue........................... 7.000 09/01/12 1,151,151
225 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj.......... 7.500 07/01/00 227,846
740 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj.......... 8.000 07/01/05 801,020
3,380 Massachusetts St Indl Fin Agy Rev JRC
Assisted Living...................... 7.500 07/01/26 3,498,841
2,600 Massachusetts St Indl Fin Agy Rev
Montserrat College Art Issue Ser A... 7.000 12/01/27 2,611,388
2,145 Massachusetts St Indl Fin Agy Rev NE
Cent for Autism (Prerefunded @
11/01/00) (d)........................ 9.000 11/01/05 2,333,803
4,910 Massachusetts St Indl Fin Agy Rev NE
Cent for Autism (Prerefunded @
11/01/00) (d)........................ 9.500 11/01/17 5,375,861
2,000 Massachusetts St Indl Fin Agy Rev
Orchard Cove Issue (Prerefunded @
05/01/02)............................ 9.000 05/01/22 2,322,240
</TABLE>

See Notes to Financial Statements

28
<PAGE> 30
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$2,000 Massachusetts St Indl Fin Agy Rev Sr
Living Fac Forge Hill Proj........... 6.750% 04/01/30 $ 1,891,200
1,820 Massachusetts St Indl Fin Agy Rev
Waarc Inc Proj (Prerefunded @
09/01/05)............................ 7.750 09/01/25 2,178,485
--------------
122,669,499
--------------
MICHIGAN 2.0%
1,000 Detroit, MI Loc Dev Fin Auth Tax
Increment Sr Ser B (d)............... 6.700 05/01/21 1,026,080
425 Detroit, MI Loc Dev Fin Auth Ser A
(Prerefunded @ 05/01/03)............. 9.500 05/01/21 512,779
3,500 Detroit, MI Loc Dev Fin Auth Ser C... 6.850 05/01/21 3,600,975
1,190 Dickinson Cnty, MI Mem Hosp Sys Hosp
Rev.................................. 7.625 11/01/05 1,327,552
1,000 Dickinson Cnty, MI Mem Hosp Sys Hosp
Rev.................................. 8.000 11/01/14 1,187,010
2,390 Meridian, MI Econ Dev Corp First Mtg
Burcham Hills Ser A Rfdg............. 7.500 07/01/13 2,570,493
3,430 Meridian, MI Econ Dev Corp First Mtg
Burcham Hills Ser A Rfdg............. 7.750 07/01/19 3,727,072
500 Michigan St Hosp Fin Auth Rev Hosp
Genesys Hlth Sys Ser A Rfdg
(Prerefunded @ 10/01/05)............. 7.500 10/01/07 596,660
1,500 Michigan St Hosp Fin Auth Rev Hosp
Genesys Hlth Sys Ser A Rfdg
(Prerefunded @ 10/01/05)............. 8.100 10/01/13 1,838,295
5,073 Michigan St Hosp Fin Auth Rev
Saratoga Cmnty Hosp Rfdg (Prerefunded
@ 06/01/02).......................... 8.750 06/01/10 5,770,132
962 Michigan St Strategic Fd Ltd Oblig
Rev Great Lakes Pulp & Fiber Proj
(c).................................. 8.000 12/01/27 659,119
2,000 Michigan St Strategic Fd Res Recovery
Ltd Oblig Rev Central Wayne Energy
Rec Ser A............................ 7.000 07/01/27 2,056,040
4,000 Michigan St Strategic Fd Solid Waste
Disp Rev Genesee Pwr Station Proj.... 7.500 01/01/21 4,282,400
500 Oakland Cnty, MI Econ Dev Corp Ltd
Oblig Rev Pontiac Osteopathic Hosp
Proj (Prerefunded @ 01/01/00)........ 9.625 01/01/20 527,750
--------------
29,682,357
--------------
</TABLE>

See Notes to Financial Statements

29
<PAGE> 31
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA 3.2%
$1,020 Austin, MN Multi-Family Rev Hsg
Cedars of Austin Proj Rfdg........... 7.500% 04/01/17 $ 1,069,184
2,000 Austin, MN Multi-Family Rev Hsg
Cedars of Austin Proj Rfdg........... 7.500 04/01/18 2,096,440
3,400 Bloomington, MN Hsg & Redev Auth Sr
Summerhouse Bloomington Proj......... 6.125 05/01/35 3,372,936
1,955 Brooklyn Cent MN Multi-Family Hsg Rev
Four Courts Apts Proj Ser A Rfdg..... 7.400 12/01/15 2,038,733
1,220 Brooklyn Cent MN Multi-Family Hsg Rev
Four Courts Apts Proj Ser A Rfdg..... 7.500 06/01/25 1,272,057
1,460 Cambridge, MN Hsg & Hlth Care Fac Rev
Grandview West Proj Ser A............ 6.000 10/01/28 1,438,071
1,495 Cambridge, MN Hsg & Hlth Care Fac Rev
Grandview West Proj Ser B............ 6.000 10/01/33 1,450,479
750 Chisago City, MN Hlth Fac Rev Part
Pleasant Heights Proj Ser A Rfdg..... 7.300 07/01/25 808,350
3,000 Columbia Heights, MN Multi-Family
Crest View Corp Proj................. 6.000 03/01/33 3,024,030
2,700 Dakota Cnty, MN Hsg & Redev.......... 6.250 05/01/29 2,688,957
830 Little Canada, MN Fac Rev Hsg Alt Dev
Co Proj Ser A........................ 6.100 12/01/17 838,209
1,450 Little Canada, MN Fac Rev Hsg Alt Dev
Co Proj Ser A........................ 6.250 12/01/27 1,464,254
1,200 Maplewood, MN Hlthcare Fac Rev VOA
Care Cent Proj....................... 7.450 10/01/16 1,293,600
1,000 Marshall, MN Med Cent Gross Rev
Weiner Mem Med Cent Proj............. 6.000 11/01/28 995,830
1,950 Minneapolis, MN Hlthcare Fac Rev
Ebenezer Society Proj Ser A.......... 7.200 07/01/23 2,026,518
1,000 Minneapolis, MN Hlthcare Fac Rev
Saint Olaf Residence Inc Proj........ 7.100 10/01/23 1,040,650
350 Minneapolis, MN Multi-Family Rev Hsg
Belmont Apts Proj.................... 7.250 11/01/16 364,259
1,320 Minneapolis, MN Multi-Family Rev Hsg
Belmont Apts Proj (a)................ 7.625 11/01/27 1,375,202
</TABLE>

See Notes to Financial Statements

30
<PAGE> 32
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
$2,250 Minneapolis, MN Rev Walker Methodist
Sr Svcs Ser A........................ 6.000% 11/15/28 $ 2,257,335
3,040 New Brighton, MN Rental Hsg Rev
Polynesian Vlg Apts Proj Ser A
Rfdg................................. 7.500 10/01/17 3,199,327
760 New Hope, MN Multi-Family Rev Hsg
Broadway Lanel Proj.................. 7.750 09/01/07 791,874
2,320 New Hope, MN Multi-Family Rev Hsg
Broadway Lanel Proj.................. 7.750 09/01/07 2,408,253
785 North Saint Paul, MN Multi-Family Rev
Hsg Cottages North Saint Paul Rfdg... 9.000 02/01/09 838,466
2,220 North Saint Paul, MN Multi-Family Rev
Hsg Cottages North Saint Paul Rfdg... 9.250 02/01/22 2,369,517
2,255 Northfield, MN Hlthcare Facs Rev
Three Links Care Cent Proj........... 5.875 04/01/29 2,242,214
500 Shoreview, MN Sr Hsg Rev Shoreview Sr
Residence Proj....................... 7.250 02/01/26 510,230
2,000 Spring Lake Park, MN Multi-Family Hsg
Cottages Spring Lake Rfdg (LOC: Zapp
Natl Bank St Cloud).................. 8.375 01/01/22 2,052,900
1,500 Winona, MN Hsg Rev Saint Anne Hospice
Inc.................................. 6.750 07/01/27 1,530,570
--------------
46,858,445
--------------
MISSISSIPPI 0.8%
5,500 Claiborne Cnty, MS Pollutn Ctl Rev
Middle South Energy Inc Ser B (a).... 8.250 06/01/14 5,678,530
950 Lowndes Cnty, MS Hosp Rev Golden
Triangle Med Cent Rfdg............... 8.500 02/01/10 991,430
2,300 Mississippi Dev Bank Spl Oblig
Diamond Lakes Utils Ser A Rfdg....... 6.250 12/01/17 2,355,315
2,830 Ridgeland, MS Urban Renewal Rev the
Orchard Ltd Proj Ser A Rfdg.......... 7.750 12/01/15 3,047,825
--------------
12,073,100
--------------
</TABLE>

See Notes to Financial Statements

31
<PAGE> 33
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSOURI 2.1%
$1,500 Chesterfield, MO Indl Dev Auth Rev
Saint Andrews Episcopal-Presbyterian
Ser A (Prerefunded @ 12/01/00)....... 8.500% 12/01/19 $ 1,663,365
2,755 Ellisville, MO Indl Dev Auth Rev Rfdg
& Impt Gambrill Gardens Proj......... 6.200 06/01/29 2,740,123
1,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.250 04/01/07 1,008,650
2,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.625 04/01/17 2,030,080
1,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.625 04/01/18 1,015,040
3,610 Good Shepherd Nursing Home Dist MO
Nursing Home Fac Rev Rfdg............ 5.900 08/15/23 3,579,748
2,705 Jefferson Cnty, MO Indl Dev Auth Indl
Rev Cedars Hlthcare Cent Proj Ser A
Rfdg................................. 8.250 12/01/15 2,984,102
3,000 Kansas City, MO Multi-Family Hsg Rev
Vlg Green Apts Proj.................. 6.250 04/01/30 3,020,820
1,075 Missouri St Hlth & Edl Fac Bethesda
Hlth Group Inc Proj Ser A Rfdg....... 7.500 08/15/12 1,195,669
3,000 Perry Cnty, MO Nursing Home Rev
Rfdg................................. 5.900 03/01/28 2,883,450
1,695 Saint Louis, MO Tax Increment Rev
Scullin Redev Area Ser A............. 10.000 08/01/10 2,118,784
3,325 Saline Cnty, MO Indl Dev Auth Hlth
Facs Rev John Fitzgibbon Mem Hosp
Inc.................................. 6.500 12/01/28 3,235,757
3,600 Valley Park, MO Indl Dev Auth Sr Hsg
Rev Cape Albeon Proj................. 6.150 12/01/33 3,539,268
--------------
31,014,856
--------------
MONTANA 0.3%
3,825 Montana St Brd Invt Res Recovery Rev
Yellowstone Energy L P Proj.......... 7.000 12/31/19 3,734,768
--------------
NEVADA 0.8%
1,500 Boulder City, NV Hosp Rev Boulder
City Hosp Inc Proj Rfdg.............. 5.850 01/01/22 1,453,710
3,075 Clark Cnty, NV Assisted Living
Homestead Boulder City Proj.......... 6.500 12/01/27 3,145,448
</TABLE>

See Notes to Financial Statements

32
<PAGE> 34
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEVADA (CONTINUED)
$1,490 Henderson, NV Loc Impt Dist No
T-10................................. 7.500% 08/01/15 $ 1,537,501
985 Las Vegas, NV Spl Impt Dist No 505
Elkhorn Springs...................... 8.000 09/15/13 1,023,642
1,210 Nevada St Dept Commerce Hlth Fac Rev
Washoe Convalescent Cent Proj Rfdg... 8.125 06/01/03 1,257,166
3,000 Washoe Cnty, NV Impt Bonds Spl Assmt
Dist No 23........................... 6.500 11/01/17 3,071,580
--------------
11,489,047
--------------
NEW HAMPSHIRE 2.8%
435 New Hampshire Higher Edl & Hlth Fac
Auth Rev Colby-Sawyer College
Issue................................ 7.200 06/01/12 469,813
2,565 New Hampshire Higher Edl & Hlth Fac
Auth Rev Colby-Sawyer College
Issue................................ 7.500 06/01/26 2,799,595
4,965 New Hampshire Higher Edl & Hlth Fac
Auth Rev Daniel Webster College Issue
Rfdg................................. 7.625 07/01/16 5,781,246
1,035 New Hampshire Higher Edl & Hlth Fac
Auth Rev First Mtg Odd Fellows Home
Rfdg................................. 8.000 06/01/04 1,099,781
2,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev First Mtg Odd Fellows Home
Rfdg................................. 9.000 06/01/14 2,394,120
1,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev Havenwood-Heritage
Heights.............................. 7.350 01/01/18 1,087,220
4,825 New Hampshire Higher Edl & Hlth Fac
Auth Rev Havenwood-Heritage
Heights.............................. 7.450 01/01/25 5,230,541
2,330 New Hampshire Higher Edl & Hlth Fac
Auth Rev Hlthcare Visiting Nurse
(d).................................. 7.250 09/01/23 2,441,490
1,390 New Hampshire Higher Edl & Hlth Fac
Auth Rev Monadock Cmnty Hosp Issue
(Prerefunded @ 10/01/00)............. 9.125 10/01/20 1,516,407
2,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev New London Hosp Assn Proj... 7.500 06/01/05 2,223,880
3,355 New Hampshire Higher Edl & Hlth Fac
Auth Rev Vly Regl Hosp (d)........... 7.350 04/01/23 3,381,538
2,000 New Hampshire Higher Edl & Hlth Facs
Auth Rev............................. 6.125 03/01/19 1,980,560
</TABLE>

See Notes to Financial Statements

33
<PAGE> 35
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
$4,845 New Hampshire Higher Edl & Hlth Facs
Auth Rev............................. 6.300% 07/01/29 $ 4,758,129
3,860 New Hampshire St Business Fin Auth
Elec Fac Rev Plymouth Cogeneration... 7.750 06/01/14 4,094,649
1,340 New Hampshire St Hsg Fin Auth Single
Family Rev........................... 5.900 07/01/28 1,390,143
--------------
40,649,112
--------------
NEW JERSEY 4.7%
4,990 Camden Cnty, NJ Impt Auth Lease Rev
Dockside Refrig (a).................. 8.400 04/01/24 5,528,770
4,500 Camden Cnty, NJ Impt Auth Lease Rev
Kaighn PT Marine Term Ser A (a)...... 8.000 06/01/27 4,990,230
1,000 New Jersey Econ Dev Auth Econ Dev
Rev.................................. 6.375 04/01/18 1,033,900
4,000 New Jersey Econ Dev Auth Econ Dev
Rev.................................. 6.375 04/01/31 4,116,280
500 New Jersey Econ Dev Auth Econ Dev Rev
Green Acres Manor Inc Ser A Rfdg..... 8.000 01/01/09 523,910
1,000 New Jersey Econ Dev Auth Econ Dev Rev
Green Acres Manor Inc Ser A Rfdg..... 8.250 01/01/17 1,051,550
500 New Jersey Econ Dev Auth Econ Dev Rev
Zirbser Greenbriar Inc Ser A Rfdg.... 7.375 07/15/03 525,705
915 New Jersey Econ Dev Auth Econ Dev Rev
Zirbser Greenbriar Inc Ser A Rfdg.... 7.750 07/15/08 969,626
250 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.000 02/01/10 266,253
1,500 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.375 02/01/17 1,637,940
3,500 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.500 02/01/27 3,825,780
750 New Jersey Econ Dev Auth First Mtg
Delaire Nursing Ser A Rfdg
(Prerefunded @ 11/01/99)............. 8.750 11/01/10 796,170
500 New Jersey Econ Dev Auth First Mtg
Gross Rev Burnt Tavern Convalescent
Ser A Rfdg........................... 9.000 11/15/13 542,330
2,250 New Jersey Econ Dev Auth First Mtg
Gross Rev Franciscan Oaks Proj Ser A
(Prerefunded @ 10/01/02)............. 8.500 10/01/23 2,610,315
</TABLE>

See Notes to Financial Statements

34
<PAGE> 36
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY (CONTINUED)
$ 840 New Jersey Econ Dev Auth First Mtg
Gross Rev Stone Arch Nursing Home
Proj Rfdg............................ 8.750% 12/01/10 $ 914,466
1,000 New Jersey Econ Dev Auth First Mtg
Gross Rev The Evergreens (Prerefunded
@ 10/01/02).......................... 9.250 10/01/22 1,183,730
1,000 New Jersey Econ Dev Auth Holt Hauling
& Warehsg Rev Ser G Rfdg............. 8.400 12/15/15 1,077,370
3,000 New Jersey Econ Dev Auth Meridian
Assisted Living Rev Proj............. 6.750 08/01/30 2,995,740
1,945 New Jersey Econ Dev Auth Rev Kullman
Assoc Proj Ser A..................... 6.125 06/01/18 1,911,157
500 New Jersey Econ Dev Auth Rev First
Mtg Fellowship Vlg Proj Ser A
(Prerefunded @ 01/01/05)............. 8.500 01/01/10 611,805
1,000 New Jersey Econ Dev Auth Rev First
Mtg Fellowship Vlg Proj Ser A
(Prerefunded @ 01/01/05)............. 9.250 01/01/25 1,259,410
975 New Jersey Econ Dev Auth Rev First
Mtg Millhouse Proj Ser A............. 8.250 04/01/10 1,092,887
2,060 New Jersey Econ Dev Auth Rev First
Mtg Millhouse Proj Ser A............. 8.500 04/01/16 2,323,227
1,860 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 7.500 11/01/05 1,982,369
1,000 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 8.500 11/01/16 1,142,060
1,500 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 8.625 11/01/25 1,719,255
855 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A................ 8.000 05/15/02 936,148
750 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A................ 8.000 05/15/04 864,585
2,000 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A (Prerefunded @
05/15/06)............................ 8.000 05/15/12 2,466,180
2,560 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A (Prerefunded @
05/15/06)............................ 8.750 05/15/26 3,261,261
4,500 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A Rfdg........... 6.000 05/15/28 4,436,010
</TABLE>

See Notes to Financial Statements

35
<PAGE> 37
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY (CONTINUED)
$2,500 New Jersey Hlthcare Fac Fin Auth Rev
Care Institute Inc Cherry Hill
Proj................................. 7.750% 07/01/10 $ 2,632,175
3,400 New Jersey Hlthcare Fac Fin Auth Rev
Raritan Bay Med Cent Issue Rfdg...... 7.250 07/01/14 3,496,186
950 New Jersey St Edl Fac Auth Rev
Caldwell College Ser A............... 7.250 07/01/25 1,022,276
4,000 New Jersey St Edl Fac Auth Rev
Felician College of Lodi Ser D....... 7.375 11/01/22 4,331,240
--------------
70,078,296
--------------
NEW MEXICO 1.3%
4,460 Albuquerque, NM Retirement Fac Rev La
Vida Liena Proj Ser A Rfdg
(Prerefunded @ 02/01/03)............. 8.850 02/01/23 5,234,747
5,000 Albuquerque, NM Retirement Fac Rev La
Vida Liena Proj Ser B Rfdg........... 6.600 12/15/28 4,916,850
3,000 Bernalillo Cnty, NM Multi-Family Hsg
Brentwood Gardens Apt B 1............ 6.600 10/15/28 3,014,100
1,590 Bernalillo Cnty, NM Multi-Family Rev
Hsg Sr Solar Villas Apts Ser F....... 7.250 10/15/22 1,631,308
2,920 RHA Hsg Dev Corp NM Multi-Family Rev
Mtg Woodleaf Apts Proj Ser A Rfdg.... 7.125 12/15/27 2,966,311
670 Santa Fe, NM Indl Rev Casa Real
Nursing Home Rfdg.................... 9.750 01/01/13 714,890
--------------
18,478,206
--------------
NEW YORK 3.0%
1,340 Brookhaven, NY Indl Dev Agy Sr
Residential Hsg Rev Woodcrest Estates
Fac Ser A............................ 6.250 12/01/23 1,330,191
2,000 Brookhaven, NY Indl Dev Agy Sr
Residential Hsg Rev Woodcrest Estates
Fac Ser A............................ 6.375 12/01/37 1,983,240
2,000 Castle Rest Residential Hlthcare Fac
NY Rev Hlthcare Fac Ser B............ 8.000 08/01/10 2,059,920
1,210 Clifton Springs, NY Hosp & Clinic Ser
A Rfdg & Impt........................ 7.650 01/01/12 1,356,712
4,800 Islip, NY Cmnty Dev Agy Cmnty Dev Rev
NY Institute of Technology Rfdg
(a).................................. 7.500 03/01/26 5,241,312
</TABLE>

See Notes to Financial Statements

36
<PAGE> 38
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$1,500 Monroe Cnty, NY Indl Dev Agy Rev Indl
Dev Empire Sports Proj Ser A......... 6.250% 03/01/28 $ 1,483,830
3,500 New York City Indl Dev Agy Civic Fac
Rev Cmnty Res Developmentally
Disabled............................. 7.500 08/01/26 3,772,895
4,020 New York City Indl Dev Agy Civic Fac
Rev Our Lady of Mercy Med Cent Pkg
Corp Proj............................ 8.500 12/30/22 4,477,637
2,500 New York City Indl Dev Agy Rev Solid
Waste Disposal Visy Paper Proj....... 7.800 01/01/16 2,743,700
535 New York St Energy Resh & Dev Auth
Electric Facs Rev.................... 7.150 12/01/20 576,719
2,750 Newark-Wayne Cmnty Hosp Inc NY Hosp
Rev Ser A............................ 7.600 09/01/15 2,939,502
1,900 North Syracuse, NY Hsg Auth Rev Janus
Park Proj............................ 8.000 06/01/14 1,993,632
1,250 Oneida Cnty, NY Indl Dev Agy Civic
Fac Saint Elizabeth Med Ser A........ 5.875 12/01/29 1,228,238
650 Onondaga Cnty, NY Indl Dev Agy Civic
Fac Rev Iroquois Nursing Home Ser
B.................................... 7.000 02/01/09 648,200
2,000 Onondaga Cnty, NY Indl Dev Agy Solid
Waste Disposal Fac Rev Solvay
Paperboard Proj Rfdg................. 7.000 11/01/30 2,080,600
675 Oswego Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 7.000 02/01/12 673,225
1,500 Peekskill, NY Indl Dev Agy Sr Drum
Hill Sr Living Proj.................. 6.375 10/01/28 1,483,155
1,275 Rensselaer Cnty, NY Indl Dev Agy East
Greenbush Cntr Proj Rfdg Ser A (d)... 7.000 02/01/11 1,257,175
1,480 Rensselaer Cnty, NY Indl Dev Agy East
Greenbush Cntr Proj Rfdg Ser B (d)... 7.000 02/01/11 1,464,771
2,300 Rockland Cnty, NY Indl Dev Agy Civic
Fac Rev Dominican College Proj (d)... 6.250 05/01/28 2,306,187
3,100 Suffolk Cnty, NY Indl Dev Agy Indl
Dev Rev Spellman High Voltage Fac Ser
A.................................... 6.375 12/01/17 3,082,020
400 Syracuse, NY Hsg Auth Rev Sub Proj
Loretto Rest Ser B................... 7.500 08/01/10 407,136
--------------
44,589,997
--------------
</TABLE>

See Notes to Financial Statements

37
<PAGE> 39
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH DAKOTA 0.5%
$2,610 Devils Lake, ND Hlthcare Facs Rev &
Impt Lk Reg Lutheran Rfdg............ 6.100% 10/01/23 $ 2,561,089
2,000 Grand Forks, ND Sr Hsg Rev Spl Term
4000 Vly Square Proj................. 6.375 12/01/34 2,044,060
3,000 Grand Forks, ND Sr Hsg Rev Spl Term
4000 Vly Square Proj................. 6.250 12/01/34 3,007,830
--------------
7,612,979
--------------
OHIO 3.3%
1,500 Athens Cnty, OH Hosp Fac Rev
O'Bleness Mem Hosp Proj.............. 7.100 11/15/23 1,571,355
1,000 Cuyahoga Cnty, OH Hlthcare Fac Rev
Jennings Hall........................ 7.200 11/15/14 1,071,010
1,500 Cuyahoga Cnty, OH Hlthcare Fac Rev
Jennings Hall........................ 7.300 11/15/23 1,614,435
2,500 Cuyahoga Cnty, OH Hlthcare Fac Rev
Judson Retirement Cmnty Ser A Rfdg... 7.250 11/15/13 2,694,350
3,000 Cuyahoga Cnty, OH Hlthcare Fac Rev
Judson Retirement Cmnty Ser A Rfdg... 7.250 11/15/18 3,233,220
1,195 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Mtg Colonnade Apts Ser A Rfdg.... 7.500 12/01/17 1,210,595
2,305 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Mtg Colonnade Apts Ser A Rfdg.... 7.750 12/01/28 2,334,712
2,500 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Park Lane Apts Proj Ser A........ 8.250 07/01/28 2,575,000
255 Dayton, OH Spl Facs Rev Afco Cargo
Day LLC Proj......................... 6.000 04/01/09 255,163
3,000 Dayton, OH Spl Facs Rev Afco Cargo
Day LLC Proj......................... 6.300 04/01/22 3,002,310
295 Fairfield, OH Econ Dev Rev Beverly
Enterprises Inc Proj Rfdg............ 8.500 01/01/03 312,700
2,210 Hamilton Cnty, OH Multi-Family Rev
Hsg Garden Hill Washington Park
Apts................................. 7.750 10/01/21 2,362,578
1,530 Harrison, OH Harrison Ave Kmart Proj
Ser A................................ 8.125 12/01/02 1,621,693
1,000 Madison Cnty, OH Hosp Impt Rev
Madison Cnty Hosp Proj Rfdg.......... 6.250 08/01/18 986,710
</TABLE>

See Notes to Financial Statements

38
<PAGE> 40
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$2,465 Madison Cnty, OH Hosp Impt Rev
Madison Cnty Hosp Proj Rfdg.......... 6.400% 08/01/28 $ 2,426,324
4,000 Montgomery Cnty, OH Hlthcare Fac
Rev.................................. 6.250 02/01/22 4,008,840
1,000 North Canton, OH Hlthcare Facs Rev
The Waterford at Saint Luke Proj
(Prerefunded @ 11/15/02)............. 8.625 11/15/21 1,162,900
1,500 North Canton, OH Hlthcare Facs Rev
The Waterford at Saint Luke Proj..... 5.800 11/15/28 1,438,740
1,000 Ohio Hsg Fin Agy Retirement Rent Hsg
Rev Encore Retirement Partners
Rfdg................................. 6.750 03/01/19 995,540
3,000 Ohio St Solid Waste Rev CSC Ltd
Proj................................. 8.500 08/01/22 3,107,790
2,000 Ohio St Solid Waste Rev Rep
Engineered Steels Proj............... 8.250 10/01/14 2,082,960
4,000 Ohio St Solid Waste Rev Rep
Engineered Steels Proj............... 9.000 06/01/21 4,345,760
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac
Rev Coll Cleveland Elec Ser A Rfdg... 8.000 10/01/23 2,263,900
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac
Rev Coll Toledo Edison Ser A Rfdg.... 8.000 10/01/23 2,263,900
--------------
48,942,485
--------------
OKLAHOMA 0.3%
2,830 Oklahoma Cnty, OK Fin Auth Epworth
Villa Proj Ser A Rfdg................ 7.000 04/01/25 2,913,740
500 Woodward, OK Muni Auth Hosp Rev...... 8.250 11/01/09 557,185
500 Woodward, OK Muni Auth Hosp Rev
(Prerefunded @ 11/01/00)............. 9.250 11/01/14 548,305
--------------
4,019,230
--------------
OREGON 0.8%
1,000 Clatsop Care Cent Hlth Dist OR Rev Sr
Hsg.................................. 6.000 08/01/14 986,300
4,000 Clatsop Care Cent Hlth Dist OR Rev Sr
Hsg.................................. 6.875 08/01/28 3,930,800
1,745 Douglas Cnty, OR Hosp Fac Auth Rev
Elderly Hsg Forest Glen Ser A........ 7.500 09/01/27 1,798,816
</TABLE>

See Notes to Financial Statements

39
<PAGE> 41
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OREGON (CONTINUED)
$4,000 Oregon St Hlth Hsg Edl & Cultural
Facs Auth............................ 7.250% 06/01/28 $ 4,054,400
1,500 Salem, OR Hosp Fac Auth Rev Cap Manor
Inc.................................. 7.500 12/01/24 1,614,165
--------------
12,384,481
--------------
PENNSYLVANIA 11.1%
2,000 Allegheny Cnty, PA Hosp Dev Hlthcare
Facs Villa Saint Joseph.............. 6.000 08/15/28 1,938,240
1,945 Allegheny Cnty, PA Hosp Dev Auth Rev
Hlth Fac Allegheny Vly Sch........... 7.500 02/01/10 2,099,939
3,120 Allegheny Cnty, PA Hosp Dev Auth Rev
Hlth Fac Allegheny Vly Sch........... 7.875 02/01/20 3,423,919
7,000 Beaver Cnty, PA Indl Dev Auth Pollutn
Ctl Rev Coll Toledo Edison Co Proj
Rfdg (a)............................. 7.625 05/01/20 7,903,420
4,000 Beaver Cnty, PA Indl Dev Auth Pollutn
Ctl Rev Coll Toledo Edison Co Proj
Ser A Rfdg........................... 7.750 05/01/20 4,574,120
1,100 Beaver Cnty, PA Indl Dev Auth Pollutn
Ctl Rev Coll Toledo Edison Co Proj
Ser A Rfdg........................... 7.750 09/01/24 1,133,715
2,500 Berks Cnty, PA Muni Auth Rev Phoebe
Berks Vlg Inc Proj Rfdg (Prerefunded
@ 05/15/02).......................... 8.250 05/15/22 2,832,575
1,000 Bucks Cnty, PA Indl Dev Auth Rev
First Mtg Hlthcare Fac Chandler...... 6.100 05/01/14 990,010
2,500 Bucks Cnty, PA Indl Dev Auth Rev
First Mtg Hlthcare Fac Chandler...... 6.300 05/01/29 2,465,400
1,000 Chartiers Vly, PA Indl & Coml Dev
Auth First Mtg Rev................... 7.250 12/01/11 1,025,140
2,000 Chartiers Vly, PA Indl & Coml Dev
Auth First Mtg Rev................... 7.400 12/01/15 2,147,840
4,480 Clarion Cnty, PA Hosp Auth Hosp Rev
Clarion Hosp Proj (Prerefunded @
07/01/99)............................ 8.100 07/01/12 4,587,923
1,000 Clarion Cnty, PA Hosp Auth Hosp Rev
Clarion Hosp Proj (Prerefunded @
07/01/01)............................ 8.500 07/01/21 1,109,500
3,500 Cliff House Ctfs Trust Var Sts
Variable Ctfs Partn Ser A............ 6.625 06/01/27 3,500,000
1,000 Cumberland Cnty, PA Indl Dev Auth Rev
First Mtg Woods Cedar Run Ser A
Rfdg................................. 6.500 11/01/18 982,640
</TABLE>

See Notes to Financial Statements

40
<PAGE> 42
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$3,250 Cumberland Cnty, PA Indl Dev Auth Rev
First Mtg Woods Cedar Run Ser A
Rfdg................................. 6.500% 11/01/28 $ 3,114,507
3,000 Dauphin Cnty, PA Genl Auth Rev Hotel
& Conf Cent Hyatt Regency............ 6.200 01/01/29 3,021,720
5,000 Dauphin Cnty, PA Genl Auth Rev Office
& Pkg Riverfront Office (a).......... 6.000 01/01/25 4,964,100
4,000 Dauphin Cnty, PA Genl Auth Rev Office
& Pkg Forum Place Ser A.............. 6.000 01/15/25 3,977,400
870 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj (Prerefunded @
06/01/02)............................ 8.750 06/01/10 999,065
2,800 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj (Prerefunded @
06/01/02)............................ 9.250 06/01/22 3,253,600
2,500 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj Rfdg................. 7.000 06/01/26 2,594,325
2,100 Delaware Cnty, PA Auth Rev White
Horse Vlg Ser A Rfdg................. 7.500 07/01/18 2,271,738
3,500 Grove City, PA Area Hosp Auth Hlth
Facs Rev............................. 6.625 08/15/29 3,456,775
2,000 Harrisburg, PA Auth Office & Pkg Rev
Ser A................................ 6.000 05/01/19 1,998,740
1,250 Lebanon Cnty, PA Hlth Fac Auth Hlth
Cent Rev United Church of Christ
Homes Rfdg........................... 7.250 10/01/19 1,255,012
250 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 7.150 12/15/08 284,205
3,000 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 6.000 12/15/23 2,928,420
2,315 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 8.000 12/15/23 2,725,542
4,000 Lehigh Cnty, PA Genl Purp Auth Rev
Kidspeace Oblig Group................ 6.000 11/01/23 3,959,840
1,790 Lehigh Cnty, PA Indl Dev Auth Hlth
Fac Rev Lifepath Inc Proj............ 6.100 06/01/18 1,704,062
3,000 Lehigh Cnty, PA Indl Dev Auth Hlth
Fac Rev Lifepath Inc Proj............ 6.300 06/01/28 2,830,950
4,710 Lehigh Cnty, PA Indl Dev Auth Rev
Rfdg................................. 8.000 08/01/12 4,993,919
3,000 Luzerne Cnty, PA Indl Dev Auth Exmp
Fac Rev PA Gas & Wtr Co Proj Ser A
Rfdg................................. 7.200 10/01/17 3,287,910
</TABLE>

See Notes to Financial Statements

41
<PAGE> 43
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$1,870 Luzerne Cnty, PA Indl Dev Auth First
Mtg Gross Rev Rfdg................... 7.875% 12/01/13 $ 2,025,322
500 Montgomery Cnty, PA Higher Edl & Hlth
Auth Rev Retirement Cmnty GDL Farms
Ser A (Prerefunded @ 01/01/00)....... 9.500 01/01/20 527,395
3,645 Montgomery Cnty, PA Indl Dev Auth Rev
Assisted Living Ser A (Prerefunded @
05/01/03)............................ 8.250 05/01/23 4,152,858
684 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 9.250 12/01/00 722,974
2,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 6.000 12/01/10 2,057,940
500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.000 12/01/10 529,185
1,500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.250 12/01/15 1,601,895
2,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 6.250 12/01/17 2,064,340
2,025 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A (Prerefunded @ 12/01/00)........... 10.000 12/01/19 2,249,937
2,500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A (Prerefunded @ 12/01/00)........... 10.250 12/01/20 2,786,600
4,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.400 12/01/20 4,275,520
3,595 Montgomery Cnty, PA Indl Dev Auth Rev
Hlthcare Adv Geriatric Ser A......... 8.375 07/01/23 3,844,601
770 Montgomery Cnty, PA Indl Dev Auth Rev
Pennsburg Nursing & Rehab Cent
(Prerefunded @ 03/31/04)............. 7.625 07/01/18 895,980
2,660 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy................... 7.750 09/01/14 2,897,086
1,955 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy................... 7.750 09/01/24 2,140,588
2,200 Montgomery Cnty, PA Indl Rev GDL
Farms Corp Proj Rfdg................. 6.500 01/01/20 2,223,870
</TABLE>

See Notes to Financial Statements

42
<PAGE> 44
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 400 Philadelphia, PA Auth for Indl Dev
Hlthcare Fac Rev..................... 5.750% 05/15/18 $ 387,700
1,000 Philadelphia, PA Auth for Indl Dev
Rev First Mtg Crime Prevention
Assn................................. 6.125 04/01/19 993,660
4,000 Philadelphia, PA Auth for Indl Dev
Rev Coml RMK Rfdg.................... 7.750 12/01/17 4,435,680
2,000 Philadelphia, PA Auth for Indl Dev
Rev Long-Term Care Maplewood......... 8.000 01/01/14 2,190,640
5,835 Philadelphia, PA Auth for Indl Dev
Rev Long-Term Care Maplewood (a)..... 8.000 01/01/24 6,377,772
1,500 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev (e)................ 7.000 07/01/05 570,000
1,000 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev (e)................ 7.250 07/01/18 380,000
900 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev.................... 6.500 07/01/23 919,062
1,830 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev.................... 7.250 03/01/24 1,908,928
1,180 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev.................... 6.500 07/01/27 1,231,896
1,465 Scranton Lackawanna, PA Hlth &
Welfare Auth Rev Rfdg................ 7.250 01/15/17 1,571,842
3,100 Scranton Lackawanna, PA Hlth &
Welfare Auth Rev Rfdg................ 7.350 01/15/22 3,346,822
3,000 Somerset Cnty, PA Hosp Auth Rev
Somerset Cmnty Hosp Proj (Prerefunded
@ 03/01/02).......................... 7.500 03/01/17 3,275,070
2,400 Southern Chester Cnty, PA Hlth &
Higher Ed Auth Mtg Rev............... 6.300 06/01/10 2,436,360
250 Warren Cnty, PA Indl Dev Auth Beverly
Enterprises Rfdg..................... 9.000 11/01/12 273,143
2,200 Washington Cnty, PA Hosp Auth Rev
Canonsburg Genl Hosp Rfdg............ 7.350 06/01/13 2,233,000
</TABLE>

See Notes to Financial Statements

43
<PAGE> 45
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$2,500 Westmoreland Cnty, PA Indl Dev Auth
Rev Hlthcare Facs Redstone Rfdg...... 5.850% 11/15/29 $ 2,393,925
--------------
164,257,802
--------------
SOUTH CAROLINA 0.7%
710 Charleston Cnty, SC Hlth Fac Rev
First Mtg Episcopal Proj Rfdg
(Prerefunded @ 04/01/01)............. 9.750 04/01/16 796,663
3,500 Charleston Cnty, SC Indl Rev Zeigler
Coal Hldg............................ 6.950 08/10/28 3,544,275
750 South Carolina Jobs Econ Dev Auth
Hlth Fac Rev First Mtg Lutheran Homes
SC Proj (Prerefunded @ 10/01/02)..... 8.000 10/01/22 860,955
5,095 South Carolina St Hsg Fin & Dev Auth
Multi-Family Rev..................... 6.750 05/01/28 5,173,259
--------------
10,375,152
--------------
SOUTH DAKOTA 0.3%
2,500 Mobridge, SD Hlthcare Facs Rev
Mobridge Regl Hosp Proj.............. 6.500 12/01/22 2,495,500
1,000 South Dakota St Hlth & Edl Fac Auth
Rev Huron Regl Med Cent.............. 7.250 04/01/20 1,099,450
1,600 Winner, SD Econ Dev Rev Winner Regl
Hlthcare Cent Rfdg................... 6.000 04/01/28 1,538,432
--------------
5,133,382
--------------
TENNESSEE 0.9%
4,000 Shelby Cnty, TN Hlth Edl & Hsg
Hlthcare Fac Kirby Pines Ser A....... 6.375 11/15/25 4,043,960
3,250 Springfield, TN Hlth & Edl Fac Brd
Hosp Rev Jesse Holman Jones Hosp Proj
(Prerefunded @ 04/01/06)............. 8.250 04/01/12 3,966,982
2,155 Sweetwater, TN Indl Dev Brd Mtg Rev
Wood Presbyterian Home Proj.......... 7.500 01/01/18 2,151,574
2,845 Sweetwater, TN Indl Dev Brd Mtg Rev
Wood Presbyterian Home Proj.......... 7.750 01/01/29 2,839,765
--------------
13,002,281
--------------
</TABLE>

See Notes to Financial Statements

44
<PAGE> 46
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS 2.7%
$ 725 Abia Dev Corp TX Arpt Facs Rev Austin
Belly Port Dev Proj Ser A............ 6.250% 10/01/08 $ 720,476
3,775 Abia Dev Corp TX Arpt Facs Rev Austin
Belly Port Dev Proj Ser A............ 6.500 10/01/23 3,740,874
2,000 Austin-Bergstorm Landhost Enterprises
Inc TX Arpt Hotel Sr Ser A........... 6.750 04/01/27 2,013,400
865 Bell Cnty, TX Hlth Fac Dev Corp Rev
Hosp Proj............................ 9.250 07/01/08 893,588
4,000 Bell Cnty, TX Indl Dev Corp Solid
Waste Disposal Rev (a)............... 7.600 12/01/17 3,979,560
500 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev American Airls Inc..... 7.500 11/01/25 530,770
1,500 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev American Airls Inc..... 7.250 11/01/30 1,636,740
1,250 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev Delta Airls Inc........ 7.625 11/01/21 1,354,550
2,665 De Soto, TX Hlth Fac Dev Park Manor
Sr Care.............................. 7.750 12/01/16 2,742,285
145 Harris Cnty, TX Hsg Fin Corp Single
Family Hsg Rev 1983 Ser A............ 10.125 07/15/03 145,203
980 Harris Cnty, TX Hsg Fin Corp Single
Family Hsg Rev 1983 Ser A............ 10.375 07/15/14 980,804
2,500 Lubbock, TX Hlth Facs Dev Corp Rev
First Mtg Carillon Proj Ser A........ 6.500 07/01/19 2,483,200
3,400 Meadow Parc Dev Inc TX Multi-Family
Rev Hsg Meadow Parc Apts Proj........ 6.500 12/01/30 3,399,966
750 Montgomery Cnty, TX Hlth Fac Dev Corp
Hosp Mtg Rev Woodlands Med Cent Proj
Rfdg (Prerefunded @ 08/15/99)........ 8.850 08/15/14 773,385
3,205 Orange, TX Hsg Dev Corp Multi-Family
Rev Hsg Vlgs At Pine Hallow.......... 8.000 03/01/28 3,271,279
3,255 Rusk Cnty, TX Hlth Fac Corp Hosp Rev
Henderson Mem Hosp Proj Rfdg......... 7.750 04/01/13 3,498,767
500 San Antonio, TX Hlth Fac Dev Corp Rev
Encore Nursing Cent Partn............ 8.250 12/01/19 547,390
2,000 San Antonio, TX Hsg Fin Corp
Multi-Family Hsg Rev Beverly Oaks
Apts Proj Ser A...................... 7.750 02/01/27 2,056,660
</TABLE>

See Notes to Financial Statements

45
<PAGE> 47
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$1,965 San Antonio, TX Hsg Fin Corp
Multi-Family Hsg Rev Marbach Manor
Apts Proj Ser A...................... 8.125% 06/01/27 $ 2,038,511
1,500 Tarrant Cnty, TX Hlth Fac Dev Corp
Rev Mtg Cumberland Rest Ser A Rfdg... 7.000 08/15/19 1,533,285
1,401 Texas Genl Svcs Cmty Partn Interests
Office Bldg & Land Acquisition
Proj................................. 7.000 08/01/24 1,439,168
--------------
39,779,861
--------------
UTAH 0.5%
1,500 Carbon Cnty, UT Solid Waste Disposal
Rev Rfdg Laidlaw Environmental Ser
A.................................... 7.450 07/01/17 1,628,970
500 Hildale, UT Elec Rev Gas Turbine Elec
Fac Proj............................. 7.600 09/01/06 489,990
1,000 Hildale, UT Elec Rev Gas Turbine Elec
Fac Proj............................. 7.800 09/01/15 980,990
1,000 Tooele Cnty, UT Pollutn Ctl Rev Rfdg
Laidlaw Environmental Ser A.......... 7.550 07/01/27 1,091,250
2,000 Utah St Hsg Fin Agy Rev RHA Cmnty
Services Proj Ser A.................. 6.875 07/01/27 2,108,300
470 Utah St Hsg Fin Agy Single Family Mtg
Ser C2............................... 7.950 07/01/20 478,930
--------------
6,778,430
--------------
VERMONT 0.4%
3,000 Vermont Edl & Hlth Bldgs Fin Agy Rev
Hlthcare Fac Copley Manor Proj....... 6.250 04/01/29 2,979,630
535 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.000 12/15/09 534,155
1,030 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.125 12/15/14 1,027,919
1,375 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.250 12/15/19 1,371,796
--------------
5,913,500
--------------
VIRGINIA 2.6%
2,955 Alexandria, VA Indl Dev Auth Rev
Saint Coletta Sch Proj............... 7.750 10/15/26 3,072,254
235 Alexandria, VA Indl Dev Auth Rev
Saint Coletta Sch Proj............... 7.750 10/15/26 242,370
6,600 Alexandria, VA Redev & Hsg Auth 3001
Park Cent Apts Ser A Rfdg (a)........ 6.375 04/01/34 6,580,926
</TABLE>

See Notes to Financial Statements

46
<PAGE> 48
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 565 Covington-Alleghany Cnty, VA Indl Dev
Auth Beverly Enterprises Inc Proj
Rfdg................................. 9.375% 09/01/01 $ 591,792
2,000 Dulles Town Cent Cmnty Dev Auth
Dulles Town Cent Proj................ 6.250 03/01/26 2,039,780
3,000 Fairfax Cnty, VA Redev & Hsg Auth
Multi-Family Hsg Rev................. 7.600 10/01/36 3,262,260
370 Greensville Cnty, VA Indl Dev Auth
Rev Wheeling Steel Proj Ser A........ 6.375 04/01/04 369,123
800 Greensville Cnty, VA Indl Dev Auth
Rev Wheeling Steel Proj Ser A........ 7.000 04/01/14 795,888
2,750 Hampton, VA Redev & Hsg Auth Rev
First Mtg Olde Hampton Ser A Rfdg.... 6.500 07/01/16 2,770,515
2,500 Henry Cnty, VA Indl Dev Auth Indl Dev
Rev 5Bs Inc Proj Ser A............... 7.400 09/01/17 2,530,550
1,500 Hopewell, VA Indl Dev Auth Res
Recovery Rev Stone Container Corp
Proj Rfdg............................ 8.250 06/01/16 1,635,900
1,000 Lexington, VA Indl Dev Auth
Residential Care Fac Rev............. 6.000 10/01/31 972,120
6,000 Peninsula Ports Auth VA Rev Port Fac
Zeigler Coal Rfdg (a)................ 6.900 05/02/22 6,073,080
1,000 Pittsylvania Cnty, VA Indl Dev Auth
Rev Exempt Fac Ser A................. 7.450 01/01/09 1,087,740
6,000 Richmond, VA Redev & Hsg Auth
Multi-Family Rev Ser A Rfdg (Var Rate
Cpn) (a)............................. 7.500 12/15/21 6,115,740
--------------
38,140,038
--------------
WASHINGTON 0.7%
1,900 King Cnty, WA Hsg Auth Hsg Rev
Colonial Gardens Apts Proj........... 6.200 07/01/29 1,897,283
2,500 Spokane Cnty, WA Indl Dev Corp Solid
Waste Disp Rev....................... 7.600 03/01/27 2,720,675
300 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj (d)....................... 6.000 01/01/28 294,630
500 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj........................... 6.000 02/01/28 491,025
</TABLE>

See Notes to Financial Statements

47
<PAGE> 49
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$1,000 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj (d)....................... 6.000% 03/01/28 $ 981,890
1,680 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj........................... 6.000 04/01/28 1,649,558
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple
Knoll Apts Proj...................... 6.000 10/01/17 1,017,620
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple
Knoll Apts Proj...................... 6.200 10/01/27 1,020,760
--------------
10,073,441
--------------
WEST VIRGINIA 0.3%
2,000 Randolph Cnty, WV Bldg Comm Rev
Crossover Elkins Regl Proj Rfdg...... 6.125 07/01/23 1,964,540
485 Randolph Cnty, WV Bldg Comm Rev Davis
Mem Hosp Proj Ser A Rfdg & Impt
(Prerefunded @ 11/01/01)............. 7.650 11/01/21 535,445
2,540 Weirton, WV Pollutn Ctl Rev Weirton
Steel Proj Rfdg...................... 8.625 11/01/14 2,554,554
--------------
5,054,539
--------------
WISCONSIN 1.2%
805 Baldwin, WI Hosp Rev Mtg Ser A....... 6.125 12/01/18 801,369
2,590 Baldwin, WI Hosp Rev Mtg Ser A....... 6.375 12/01/28 2,576,325
3,000 Oconto Falls, WI Cmnty Dev Oconto
Falls Tissue Inc Proj................ 7.750 12/01/22 3,176,160
340 Wisconsin Hsg & Econ Dev Auth Home
Ownership Rev........................ 7.550 07/01/26 349,081
2,000 Wisconsin St Hlth & Edl Fac Auth Rev
Clement Manor Rfdg................... 5.750 08/15/24 1,900,400
720 Wisconsin St Hlth & Edl Fac Auth Rev
Hess Mem Hosp Assn................... 7.200 11/01/05 756,274
2,000 Wisconsin St Hlth & Edl Fac Auth Rev
Hess Mem Hosp Assn................... 7.875 11/01/22 2,217,940
2,500 Wisconsin St Hlth & Edl Fac Auth Rev
Natl Regency of New Berlin Proj...... 8.000 08/15/25 2,787,150
</TABLE>

See Notes to Financial Statements

48
<PAGE> 50
PORTFOLIO OF INVESTMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
$3,000 Wisconsin St Hlth & Edl Milwaukee
Catholic Home Proj................... 7.500% 07/01/26 $ 3,255,660
500 Wisconsin St Hlth and Edl Rev Mem
Hosp At Oconomowoc Inc Proj.......... 6.350 07/01/17 551,720
--------------
18,372,079
--------------
WYOMING 0.2%
2,995 Wyoming Cmnty Dev Auth Hsg Rev....... 6.250 06/01/27 3,152,208
--------------
U.S. VIRGIN ISLANDS 0.2%
1,210 University of Virgin Islands Pub Fin
Auth Ser A........................... 7.500 10/01/09 1,351,510
1,965 University of Virgin Islands Pub Fin
Auth Ser A........................... 7.650 10/01/14 2,203,492
--------------
3,555,002
--------------
TOTAL LONG-TERM INVESTMENTS 97.9%
(Cost $1,382,874,514)............................................. 1,444,528,223
SHORT-TERM INVESTMENTS 0.1%
(Cost $1,610,000)................................................. 1,610,000
--------------
TOTAL INVESTMENTS 98.0%
(Cost $1,384,484,514)............................................. 1,446,138,223
OTHER ASSETS IN EXCESS OF LIABILITIES 2.0%......................... 29,209,393
--------------
NET ASSETS 100.0%.................................................. $1,475,347,616
==============
</TABLE>

* Zero coupon bond

(a) Assets segregated as collateral for open futures contracts.

(b) Interest is accruing at less than the stated coupon.

(d) 144A/Private Placement securities are those which are exempt from
registration under Rule 144A of the Securities Act of 1933. These securities
may only be resold in transactions exempt from registration which are
normally transactions with qualified institutional buyers.

(e) Non-income producing security.

LOC--Letter of Credit

See Notes to Financial Statements

49
<PAGE> 51

STATEMENT OF ASSETS AND LIABILITIES

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $1,384,484,514)..................... $1,446,138,223
Cash........................................................ 47,104
Receivables:
Interest.................................................. 30,599,672
Investments Sold.......................................... 6,858,170
Fund Shares Sold.......................................... 2,274,053
Variation Margin on Futures............................... 7,812
Other....................................................... 49,411
--------------
Total Assets.......................................... 1,485,974,445
--------------
LIABILITIES:
Payables:
Income Distributions...................................... 4,055,747
Investments Purchased..................................... 2,964,210
Fund Shares Repurchased................................... 1,704,135
Distributor and Affiliates................................ 837,196
Investment Advisory Fee................................... 665,458
Accrued Expenses............................................ 247,673
Trustees' Deferred Compensation and Retirement Plans........ 152,410
--------------
Total Liabilities..................................... 10,626,829
--------------
NET ASSETS.................................................. $1,475,347,616
==============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $1,424,945,758
Net Unrealized Appreciation................................. 61,662,100
Accumulated Undistributed Net Investment Income............. 288,379
Accumulated Net Realized Loss............................... (11,548,621)
--------------
NET ASSETS.................................................. $1,475,347,616
==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $931,310,371 and 80,637,897 shares of
beneficial interest issued and outstanding)............. $ 11.55
Maximum sales charge (4.75%* of offering price)......... .58
--------------
Maximum offering price to public........................ $ 12.13
==============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $431,532,811 and 37,390,623 shares of
beneficial interest issued and outstanding)............. $ 11.54
==============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $112,504,434 and 9,758,734 shares of
beneficial interest issued and outstanding)............. $ 11.53
==============
</TABLE>

*On sales of $100,000 or more, the sales charge will be reduced.

See Notes to Financial Statements

50
<PAGE> 52

STATEMENT OF OPERATIONS

For the Six Months Ended May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Interest.................................................... $ 50,557,450
------------
EXPENSES:
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $1,151,933, $2,210,438 and $560,869,
respectively)............................................. 3,923,240
Investment Advisory Fee..................................... 3,914,514
Shareholder Services........................................ 440,027
Custody..................................................... 48,675
Trustees' Fees and Related Expenses......................... 31,744
Legal....................................................... 24,206
Other....................................................... 362,512
------------
Total Expenses.......................................... 8,744,918
------------
NET INVESTMENT INCOME....................................... $ 41,812,532
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain/Loss:
Investments............................................... $ 3,730,532
Futures................................................... 262,319
------------
Net Realized Gain........................................... 3,992,851
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 81,205,096
------------
End of the Period:
Investments............................................. 61,653,709
Futures................................................. 8,391
------------
61,662,100
------------
Net Unrealized Depreciation During the Period............... (19,542,996)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(15,550,145)
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 26,262,387
============
</TABLE>

See Notes to Financial Statements

51
<PAGE> 53

STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended May 31, 1999
and the Year Ended November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
May 31, 1999 November 30, 1998
- --------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................. $ 41,812,532 $ 79,466,871
Net Realized Gain...................................... 3,992,851 8,150,677
Net Unrealized Appreciation/Depreciation............... (19,542,996) 16,740,775
-------------- --------------
Change in Net Assets from Operations................... 26,262,387 104,358,323
-------------- --------------
Distributions from Net Investment Income*.............. (41,082,381) (79,954,356)
Distributions in Excess of Net Investment Income*...... -0- (442,201)
-------------- --------------
Total Distributions.................................. (41,082,381) (80,396,557)
-------------- --------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES.... (14,819,994) 23,961,766
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold.............................. 111,752,578 263,990,520
Net Asset Value of Shares Issued Through Dividend
Reinvestment......................................... 18,348,337 35,960,456
Cost of Shares Repurchased............................. (107,411,656) (153,186,986)
-------------- --------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS......... 22,689,259 146,763,990
-------------- --------------
TOTAL INCREASE IN NET ASSETS........................... 7,869,265 170,725,756
NET ASSETS:
Beginning of the Period................................ 1,467,478,351 1,296,752,595
-------------- --------------
End of the Period (Including accumulated undistributed
net investment income of $288,379 and ($441,772),
respectively)........................................ $1,475,347,616 $1,467,478,351
============== ==============
</TABLE>

<TABLE>
<CAPTION>
*Distributions by Class:
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Distributions from and in Excess of Net Investment
Income:
Class A Shares....................................... $ (26,897,007) $ (51,028,959)
Class B Shares....................................... (11,312,269) (23,908,632)
Class C Shares....................................... (2,873,105) (5,458,966)
-------------- --------------
$ (41,082,381) $ (80,396,557)
============== ==============
</TABLE>

See Notes to Financial Statements

52
<PAGE> 54

FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Year Ended November 30,
Ended -------------------------------------
Class A Shares May 31, 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period................... $11.664 $11.454 $11.139 $ 11.18 $ 10.44
------- ------- ------- ------- -------
Net Investment Income.......... .344 .699 .729 .735 .74
Net Realized and Unrealized
Gain/Loss.................... (.121) .217 .312 (.041) .7475
------- ------- ------- ------- -------
Total from Investment
Operations................... .223 .916 1.041 .694 1.4875
Less Distributions from and in
Excess of Net Investment
Income....................... .338 .706 .726 .735 .7475
------- ------- ------- ------- -------
Net Asset Value, End of the
Period....................... $11.549 $11.664 $11.454 $11.139 $ 11.18
======= ======= ======= ======= =======
Total Return (a)............... 1.89%* 8.28% 9.63% 6.47% 14.65%
Net Assets at End of the Period
(In millions)................ $ 931.3 $ 905.0 $ 779.9 $ 621.0 $ 516.3
Ratio of Expenses to Average
Net Assets (b)............... .90% .91% .95% 1.01% .98%
Ratio of Net Investment Income
to Average Net Assets (b).... 5.95% 6.01% 6.50% 6.64% 6.81%
Portfolio Turnover............. 10%* 26% 29% 23% 26%
</TABLE>

* Non-Annualized

(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.

(b) For the years ended November 30, 1995 through 1997, the impact on the Ratios
of Expenses and Net Investment Income to Average Net Assets due to Van
Kampen's reimbursement of certain expenses was less than 0.01%.

See Notes to Financial Statements

53
<PAGE> 55
FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
Six Months Year Ended November 30,
Ended -------------------------------------
Class B Shares May 31, 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period................... $11.658 $11.452 $11.136 $ 11.18 $ 10.43
------- ------- ------- ------- -------
Net Investment Income.......... .300 .612 .645 .653 .66
Net Realized and Unrealized
Gain/Loss.................... (.121) .216 .313 (.046) .7535
------- ------- ------- ------- -------
Total from Investment
Operations................... .179 .828 .958 .607 1.4135
Less Distributions from and in
Excess of Net Investment
Income....................... .296 .622 .642 .651 .6635
------- ------- ------- ------- -------
Net Asset Value, End of the
Period....................... $11.541 $11.658 $11.452 $11.136 $ 11.18
======= ======= ======= ======= =======
Total Return (a)............... 1.52%* 7.41% 8.82% 5.67% 13.89%
Net Assets at End of the Period
(In millions)................ $ 431.5 $ 451.9 $ 425.6 $ 323.8 $ 233.9
Ratio of Expenses to Average
Net Assets (b)............... 1.65% 1.67% 1.71% 1.77% 1.73%
Ratio of Net Investment Income
to Average Net Assets (b).... 5.19% 5.26% 5.74% 5.88% 6.03%
Portfolio Turnover............. 10%* 26% 29% 23% 26%
</TABLE>

* Non-Annualized

(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.

See Notes to Financial Statements

54
<PAGE> 56
FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
Six Months Year Ended November 30,
Ended -------------------------------------
Class C Shares May 31, 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period................... $11.646 $11.440 $11.126 $ 11.17 $ 10.42
------- ------- ------- ------- -------
Net Investment Income.......... .301 .613 .644 .652 .66
Net Realized and Unrealized
Gain/Loss.................... (.122) .215 .312 (.045) .7535
------- ------- ------- ------- -------
Total from Investment
Operations................... .179 .828 .956 .607 1.4135
Less Distributions from and in
Excess of Net Investment
Income....................... .296 .622 .642 .651 .6635
------- ------- ------- ------- -------
Net Asset Value, End of the
Period....................... $11.529 $11.646 $11.440 $11.126 $ 11.17
======= ======= ======= ======= =======
Total Return (a)............... 1.53%* 7.42% 8.82% 5.68% 13.79%
Net Assets at End of the Period
(In millions)................ $ 112.5 $ 110.6 $ 91.3 $ 50.0 $ 31.1
Ratio of Expenses to Average
Net Assets (b)............... 1.65% 1.67% 1.70% 1.77% 1.72%
Ratio of Net Investment Income
to Average Net Assets (b).... 5.19% 5.25% 5.69% 5.86% 5.98%
Portfolio Turnover............. 10%* 26% 29% 23% 26%
</TABLE>

* Non-Annualized

(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.

See Notes to Financial Statements

55
<PAGE> 57

NOTES TO FINANCIAL STATEMENTS

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen High Yield Municipal Fund (the "Fund") is organized as a series of
the Van Kampen Tax-Exempt Trust, a Delaware business trust, and is registered as
a diversified open-end management investment company under the Investment
Company Act of 1940, as amended. The Fund's investment objective is to provide
as high a level of interest income exempt from federal income tax as is
consistent with investing in medium-to lower-rated high yielding municipal
securities. The Fund commenced investment operations on January 2, 1986. The
distribution of the Fund's Class B and Class C shares commenced on July 20, 1992
and December 10, 1993, respectively.

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

A. SECURITY VALUATION--Municipal bonds are valued by independent pricing
services or dealers using the mean of the bid and asked prices or, in the
absence of market quotations, at fair value based upon yield data relating to
municipal bonds with similar characteristics and general market conditions.
Securities which are not valued by independent pricing services are valued at
fair value using procedures established in good faith by the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less 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 68% of the Fund's
investment portfolio at the end of the period.

B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Fund may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to

56
<PAGE> 58
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

market fluctuations during this period. The Fund will maintain, in a segregated
account with its custodian, assets having an aggregate value at least equal to
the amount of the when issued or delayed delivery purchase commitments until
payment is made.

The Fund may invest in repurchase agreements, which are short-term
investments in which the 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 Asset Management Inc. (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully 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. INCOME AND EXPENSES--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the life of each
applicable security. Income and expenses of the Fund are allocated on a pro rata
basis to each class of shares, except for distribution and service fees and
transfer agency costs which are unique to each class of shares.

D. FEDERAL INCOME TAXES--It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.

The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset these losses against any future realized capital
gains. At November 30, 1998, the Fund had an accumulated capital loss
carryforward for tax purposes of $15,540,922 which expires between November 30,
2002 and November 30, 2005. Net realized gains or losses differ for financial
reporting and tax purposes primarily as a result of the deferral for tax
purposes of losses resulting from wash sales.

At May 31, 1999, for federal income tax purposes, cost of long- and
short-term investments is $1,384,485,064; the aggregate gross unrealized
appreciation is

57
<PAGE> 59
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

$72,003,042 and the aggregate gross unrealized depreciation is $10,349,883,
resulting in net unrealized appreciation of $61,653,159.

E. DISTRIBUTION OF INCOME AND GAINS--The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed annually.

Due to inherent differences in the recognition of expenses under generally
accepted accounting principles and federal income tax purposes, the amount of
distributed net investment income may differ for a particular period. These
differences are temporary in nature, but may result in book basis distribution
in excess of net investment income for certain periods.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:

<TABLE>
<CAPTION>
AVERAGE NET ASSETS % PER ANNUM
- --------------------------------------------------------------------
<S> <C>
First $300 million........................................60 of 1%
Next $300 million........................................55 of 1%
Over $600 million........................................50 of 1%
</TABLE>

For the six months ended May 31, 1999, the Fund recognized expenses of
approximately $24,200 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Fund, of which a trustee of the
Fund is an affiliated person.

For the six months ended May 31, 1999, the Fund recognized expenses of
approximately $162,600 representing Van Kampen Funds Inc. or its affiliates'
(collectively "Van Kampen") cost of providing accounting services to the Fund.

Van Kampen Investor Services Inc. ("VKIS"), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the six months ended
May 31, 1999, the Fund recognized expenses of approximately $342,300. Transfer
agency fees are determined through negotiations with the Fund's Board of
Trustees and are based on competitive market benchmarks.

Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are
officers of Van Kampen.

58
<PAGE> 60
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Fund. The maximum
annual benefit per trustee under the plan is $2,500.

3. CAPITAL TRANSACTIONS

At May 31, 1999, capital aggregated $903,306,574, $412,815,622 and
$108,823,562 for Classes A, B, and C, respectively. For the six months ended May
31, 1999, transactions were as follows:

<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A................................... 7,068,453 $ 82,121,969
Class B................................... 1,759,380 20,424,722
Class C................................... 793,564 9,205,887
---------- -------------
Total Sales................................. 9,621,397 $ 111,752,578
========== =============
Dividend Reinvestment:
Class A................................... 1,041,112 $ 12,083,836
Class B................................... 412,447 4,784,776
Class C................................... 127,709 1,479,725
---------- -------------
Total Dividend Reinvestments................ 1,581,268 $ 18,348,337
========== =============
Repurchases:
Class A................................... (5,052,465) $ (58,675,504)
Class B................................... (3,542,138) (41,085,105)
Class C................................... (660,513) (7,651,047)
---------- -------------
Total Repurchases........................... (9,255,116) $(107,411,656)
========== =============
</TABLE>

59
<PAGE> 61
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

At November 30, 1998, capital aggregated $867,776,273, $428,691,229 and
$105,788,997 for Classes A, B, and C, respectively. For the year ended November
30, 1998, transactions were as follows:

<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.................................. 15,501,149 $ 180,363,153
Class B.................................. 5,190,835 60,344,265
Class C.................................. 2,003,857 23,283,102
----------- -------------
Total Sales................................ 22,695,841 $ 263,990,520
=========== =============
Dividend Reinvestment:
Class A.................................. 1,945,625 $ 22,655,360
Class B.................................. 886,374 10,315,348
Class C.................................. 257,191 2,989,748
----------- -------------
Total Dividend Reinvestments............... 3,089,190 $ 35,960,456
=========== =============
Repurchases:
Class A.................................. (7,951,196) $ (92,412,176)
Class B.................................. (4,479,101) (52,140,145)
Class C.................................. (742,697) (8,634,665)
----------- -------------
Total Repurchases.......................... (13,172,994) $(153,186,986)
=========== =============
</TABLE>

Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). Class B shares purchased
on or after June 1, 1996, automatically convert to Class A shares eight years
after the end of the calendar month in which the shares were purchased. Class B
shares purchased before June 1, 1996, automatically convert to Class A shares
six years after the end of the calendar month in which the shares were
purchased. Class C shares purchased before January 1, 1997, automatically
convert to Class A shares ten years after the end of the calendar month in which
such shares were purchased. The CDSC will be imposed on most

60
<PAGE> 62
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

redemptions made within five years of the purchase for Class B and one year of
the purchase for Class C as detailed in the following schedule.

<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE
-----------------------
YEAR OF REDEMPTION CLASS B CLASS C
- --------------------------------------------------------------------------
<S> <C> <C>
First.......................................... 4.00% 1.00%
Second......................................... 4.00% None
Third.......................................... 3.00% None
Fourth......................................... 2.50% None
Fifth.......................................... 1.50% None
Sixth and Thereafter........................... None None
</TABLE>

For the six months ended May 31, 1999, Van Kampen, as distributor for the
Fund, received net commissions on sales of the Fund's Class A shares of
approximately $88,500 and CDSC on the redeemed shares of Classes B and C of
approximately $266,000. Sales charges do not represent expenses of the Fund.

4. INVESTMENT TRANSACTIONS

During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $178,392,524 and $147,997,489,
respectively.

5. DERIVATIVE FINANCIAL INSTRUMENTS

A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.

The Fund has a variety of reasons to use derivative instruments, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and duration.
All of the Fund's portfolio holdings, including derivative instruments, are
marked to market each day with the change in value reflected in the unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract.

During the period the Fund invested in future contracts, a type of
derivative. A futures contract is an agreement involving the delivery of a
particular asset on a specified future date at an agreed upon price. The Fund
generally invests in futures on U.S. Treasury Bonds and the Municipal Bond Index
and typically closes the contract prior to the delivery date. These contracts
are generally used to manage the portfolio's effective maturity and duration.

61
<PAGE> 63
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------

Upon entering into future contracts, the Fund maintains, in a segregated
account with its custodian, cash or liquid securities with a value equal to its
obligation under the futures contracts. During the period the futures contract
is open, payments are received from or made to the broker based upon changes in
the value of the contract (the variation margin). The risk of loss associated
with a futures contract is in excess of the variation margin reflected on the
Statement of Assets and Liabilities.

Transactions in futures contracts, each with a par value of $100,000, for
the six months ended May 31, 1999, were as follows:

<TABLE>
<CAPTION>
CONTRACTS
- ----------------------------------------------------------------------
<S> <C>
Outstanding at November 30, 1998............................ -0-
Futures Opened.............................................. 410
Futures Closed.............................................. (385)
---
Outstanding at May 31, 1999................................. 25
===
</TABLE>

The futures contracts outstanding as of May 31, 1999, and the description
and unrealized appreciation/depreciation are as follows:

<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION/
CONTRACTS (DEPRECIATION)
- ---------------------------------------------------------------------------
<S> <C> <C>
Short Contracts -- U.S. Treasury Bond
Futures-June 1999
(Current notional value $117,906 per
contract)................................. 25 $ 8,391
=== =========
</TABLE>

6. DISTRIBUTION AND SERVICE PLANS

The Fund and its shareholders have adopted a distribution plan pursuant to Rule
12b-1 under the Investment Company Act of 1940 and a service plan (collectively
the "Plans"). The Plans govern payments for the distribution of the Fund's
shares, ongoing shareholder services and maintenance of shareholder accounts.

Annual fees under the Plans of up to .25% for Class A net assets and 1.00%
each for Class B and Class C net assets are accrued daily. Included in these
fees for the six months ended May 31, 1999, are payments retained by Van Kampen
of approximately $1,864,500.

62
<PAGE> 64

VAN KAMPEN FUNDS

EQUITY FUNDS

Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Franchise
Global Managed Assets
International Magnum
Latin American

FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
Capital Preservation
Reserve
Tax Free Money
SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate

To find out more about any of these funds, ask your financial advisor for a
prospectus, which contains more complete information, including sales charges,
risks, and expenses. Please read it carefully before you invest or send money.

To view a current Van Kampen fund prospectus or to receive additional fund
information, choose from one of the following:

- - visit our Web site at WWW.VANKAMPEN.COM--to view a prospectus, select Download
Prospectus

- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.

- - e-mail us by visiting WWW.VANKAMPEN.COM and selecting Contact Us

63
<PAGE> 65

VAN KAMPEN HIGH YIELD MUNICIPAL FUND

BOARD OF TRUSTEES

J. MILES BRANAGAN

JERRY D. CHOATE

RICHARD M. DEMARTINI*

LINDA HUTTON HEAGY

R. CRAIG KENNEDY

JACK E. NELSON

DON G. POWELL*

PHILLIP B. ROONEY

FERNANDO SISTO

WAYNE W. WHALEN* - Chairman

SUZANNE H. WOOLSEY, PH.D.

PAUL G. YOVOVICH

OFFICERS

RICHARD F. POWERS, III*
President

DENNIS J. MCDONNELL*
Executive Vice President
and Chief Investment Officer

A. THOMAS SMITH, III*
Vice President and Secretary

JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer

CURTIS W. MORELL*
Vice President and Chief Accounting Officer

TANYA M. LODEN*
Controller

PETER W. HEGEL*

PAUL R. WOLKENBERG*

EDWARD C. WOOD, III*
Vice Presidents

INVESTMENT ADVISER

VAN KAMPEN
ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555

DISTRIBUTOR

VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555

SHAREHOLDER SERVICING AGENT

VAN KAMPEN
INVESTOR SERVICES INC.
P.O. Box 418256
Kansas City, Missouri 64141-9256

CUSTODIAN

STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105

LEGAL COUNSEL

SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606

INDEPENDENT ACCOUNTANTS

PRICEWATERHOUSECOOPERS LLP
200 E. Randolph Drive
Chicago, Illinois 60601

* "Interested" persons of the Fund, as defined in
the Investment Company Act of 1940.

(SM) denotes a service mark of Van Kampen Funds 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.

64
<PAGE> 66

YEAR 2000 READINESS DISCLOSURE

Like other mutual funds, financial and business organizations, and individuals
around the world, the Fund could be adversely affected if the computer systems
used by the Fund's investment adviser and other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Fund's
investment adviser is taking steps that it believes are reasonably designed to
address the Year 2000 Problem with respect to computer systems that it uses and
to obtain reasonable assurances that comparable steps are being taken by the
Fund's other major service providers. At this time, there can be no assurances
that these steps will be sufficient to avoid any adverse impact to the Fund. In
addition, the Year 2000 Problem may adversely affect the markets and the issuers
of securities in which the Fund may invest that, in turn, may adversely affect
the net asset value of the Fund. Improperly functioning trading systems may
result in settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production problems for
individual companies or issuers and overall economic uncertainty. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial and may be reported inconsistently in U.S. and foreign financial
statements. Accordingly, the Fund's investments may be adversely affected. The
statements above are subject to the Year 2000 Information and Readiness
Disclosure Act which may limit the legal rights regarding the use of such
statements in the case of dispute.

<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> HIGH YIELD MUNI A
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 1,384,484,514<F1>
<INVESTMENTS-AT-VALUE> 1,446,138,223<F1>
<RECEIVABLES> 39,739,707<F1>
<ASSETS-OTHER> 49,411<F1>
<OTHER-ITEMS-ASSETS> 47,104<F1>
<TOTAL-ASSETS> 1,485,974,445<F1>
<PAYABLE-FOR-SECURITIES> 2,964,210<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,662,619<F1>
<TOTAL-LIABILITIES> 10,626,829<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 903,306,574
<SHARES-COMMON-STOCK> 80,637,897
<SHARES-COMMON-PRIOR> 77,580,797
<ACCUMULATED-NII-CURRENT> 288,379<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (11,548,621)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 61,662,100<F1>
<NET-ASSETS> 931,310,371
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 50,557,450<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,744,918)<F1>
<NET-INVESTMENT-INCOME> 41,812,532<F1>
<REALIZED-GAINS-CURRENT> 3,992,851<F1>
<APPREC-INCREASE-CURRENT> (19,542,996)<F1>
<NET-CHANGE-FROM-OPS> 26,262,387<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (26,897,007)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,068,453
<NUMBER-OF-SHARES-REDEEMED> (5,052,465)
<SHARES-REINVESTED> 1,041,112
<NET-CHANGE-IN-ASSETS> 26,336,792
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,914,514<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,744,918<F1>
<AVERAGE-NET-ASSETS> 924,148,177
<PER-SHARE-NAV-BEGIN> 11.664
<PER-SHARE-NII> 0.344
<PER-SHARE-GAIN-APPREC> (0.121)
<PER-SHARE-DIVIDEND> (0.338)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.549
<EXPENSE-RATIO> 0.90
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> HIGH YIELD MUNI B
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 1,384,484,514<F1>
<INVESTMENTS-AT-VALUE> 1,446,138,223<F1>
<RECEIVABLES> 39,739,707<F1>
<ASSETS-OTHER> 49,411<F1>
<OTHER-ITEMS-ASSETS> 47,104<F1>
<TOTAL-ASSETS> 1,485,974,445<F1>
<PAYABLE-FOR-SECURITIES> 2,964,210<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,662,619<F1>
<TOTAL-LIABILITIES> 10,626,829<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 412,815,622
<SHARES-COMMON-STOCK> 37,390,623
<SHARES-COMMON-PRIOR> 38,760,934
<ACCUMULATED-NII-CURRENT> 288,379<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (11,548,621)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 61,662,100<F1>
<NET-ASSETS> 431,532,811
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 50,557,450<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,744,918)<F1>
<NET-INVESTMENT-INCOME> 41,812,532<F1>
<REALIZED-GAINS-CURRENT> 3,992,851<F1>
<APPREC-INCREASE-CURRENT> (19,542,996)<F1>
<NET-CHANGE-FROM-OPS> 26,262,387<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (11,312,269)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,759,380
<NUMBER-OF-SHARES-REDEEMED> (3,542,138)
<SHARES-REINVESTED> 412,447
<NET-CHANGE-IN-ASSETS> (20,358,494)
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,914,514<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,744,918<F1>
<AVERAGE-NET-ASSETS> 443,447,520
<PER-SHARE-NAV-BEGIN> 11.658
<PER-SHARE-NII> 0.300
<PER-SHARE-GAIN-APPREC> (0.121)
<PER-SHARE-DIVIDEND> (0.296)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.541
<EXPENSE-RATIO> 1.65
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> HIGH YIELD MUNI C
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 1,384,484,514<F1>
<INVESTMENTS-AT-VALUE> 1,446,138,223<F1>
<RECEIVABLES> 39,739,707<F1>
<ASSETS-OTHER> 49,411<F1>
<OTHER-ITEMS-ASSETS> 47,104<F1>
<TOTAL-ASSETS> 1,485,974,445<F1>
<PAYABLE-FOR-SECURITIES> 2,964,210<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,662,619<F1>
<TOTAL-LIABILITIES> 10,626,829<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 108,823,562
<SHARES-COMMON-STOCK> 9,758,734
<SHARES-COMMON-PRIOR> 9,497,974
<ACCUMULATED-NII-CURRENT> 288,379<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (11,548,621)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 61,662,100<F1>
<NET-ASSETS> 112,504,434
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 50,557,450<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,744,918)<F1>
<NET-INVESTMENT-INCOME> 41,812,532<F1>
<REALIZED-GAINS-CURRENT> 3,992,851<F1>
<APPREC-INCREASE-CURRENT> (19,542,996)<F1>
<NET-CHANGE-FROM-OPS> 26,262,387<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (2,873,105)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 793,564
<NUMBER-OF-SHARES-REDEEMED> (660,513)
<SHARES-REINVESTED> 127,709
<NET-CHANGE-IN-ASSETS> 1,890,967
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,914,514<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,744,918<F1>
<AVERAGE-NET-ASSETS> 112,588,285
<PER-SHARE-NAV-BEGIN> 11.646
<PER-SHARE-NII> 0.301
<PER-SHARE-GAIN-APPREC> (0.122)
<PER-SHARE-DIVIDEND> (0.296)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.529
<EXPENSE-RATIO> 1.65
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>

</TABLE>