VAN KAMPEN TAX EXEMPT TRUST, N-30D, 1999-01-26

VAN KAMPEN TAX EXEMPT TRUST
N-30D, 1999-01-26

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<PAGE> 1

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders........................... 1
A Farewell from the Chairman..................... 4
Performance Results.............................. 5
Performance in Perspective....................... 6
Glossary of Terms................................ 7
Portfolio Management Review...................... 9
Portfolio Highlights............................. 12
Portfolio of Investments......................... 13
Statement of Assets and Liabilities.............. 42
Statement of Operations.......................... 43
Statement of Changes in Net Assets............... 44
Financial Highlights............................. 45
Notes to Financial Statements.................... 48
Report of Independent Accountants................ 55
</TABLE>

HYM ANR 1/99
<PAGE> 2

LETTER TO SHAREHOLDERS

December 21, 1998

Dear Shareholder,
The past decade has been a
remarkable time for investors.
Together, we've witnessed one of the [PHOTO]
greatest bull markets in investment
history, unprecedented growth in
mutual fund investing, and a surge in
personal retirement planning. The
coming millennium promises to hold
even more opportunities.
To lead us into this new era of
investing, we are proud to announce DENNIS J. MCDONNELL AND DON G. POWELL
that Richard F. Powers III has joined
Van Kampen as President and Chief Executive Officer, and he will assume the
additional role of Chairman of Van Kampen in 1999. He comes to us from our
parent company, Morgan Stanley Dean Witter & Co., where he served as Executive
Vice President and Director of Marketing. Dick Powers brings 27 years of
experience in the financial services industry, including vast expertise in
product management, strategic planning, and brand development. While at Morgan
Stanley Dean Witter, he developed many of the firm's core products and services.
You'll hear more from Dick Powers in the coming months as he becomes
increasingly involved in matters related to your fund and joins Dennis McDonnell
in addressing you in future shareholder reports. (See Don Powell's farewell to
shareholders on page 4.)

ECONOMIC REVIEW

The economic picture changed from rosy to uncertain during the reporting
period, as the Asian financial crisis led to slowing corporate profits in the
United States. Given the uncertainty surrounding emerging market nations and the
near-collapse of a major U.S. hedge fund, the stock and bond markets experienced
significant volatility during the past several months. With this backdrop,
American and foreign investors alike pursued a flight to quality--seeking the
relative safety of large-cap stocks and government bonds. In recent weeks,
however, the global financial situation has improved as dozens of foreign
central banks have reduced interest rates in an effort to stimulate their
economies.
Despite the global turmoil, the United States experienced only a moderate
slowdown in growth. In response to declining corporate profits and mounting
international concerns, the Federal Reserve lowered interest rates three times,
with 0.25 percent cuts in the federal funds rate in September, October, and
November. These rate cuts, coupled with a wave of corporate mergers and
cost-cutting measures, lent the support needed to keep the economy growing,
albeit slowly. A continuation of low inflation--only a 1.5 percent increase in
the consumer price index over the last 12 months--also helped sustain the
domestic economy and keep inflation-adjusted interest rates attractive.

Continued on page 2

<PAGE> 3

MARKET OVERVIEW

The municipal bond market continued to rally as interest rates fell during
the year, although municipal bonds did not experience nearly the price
appreciation of U.S. Treasury securities. The municipal bond rally was
suppressed, in part, by excess supply, as many bond issuers took advantage of
low interest rates to refinance outstanding debt and issue new bonds. In fact,
during the first 11 months of the year, municipal bond supply increased 28
percent over the comparable period in 1997, with $255.2 billion in new issuance.
Despite their generally lower yields, municipal bonds continued to represent an
excellent value in the marketplace. At several points during the year, the yield
on a AAA-rated long-term municipal bond surpassed the yield of the 30-year U.S.
Treasury bond -- at unusual occurrence given municipals' tax-exempt status.
In the high-yield segment of the municipal market, attractive yields were
difficult to find, underscoring the importance of research to seek out those
undervalued bonds with competitive yields. The limited availability of
high-yield municipal bonds was due to the overwhelming percentage of new bonds
that came to market insured, as well as the minimal difference in yields between
higher-rated and lower-rated bonds. In past years, lower-rated bonds have
yielded close to 1 percent more than AAA-rated bonds. However, recent market
conditions allowed for a difference of as little as 0.25 percent between the two
classes of bonds.

OUTLOOK

We anticipate that the U.S. economy will continue to grow at a moderate pace
and that inflation will remain low. The global financial situation is already
showing signs of improvement, although the road to recovery will be steep and
slow. It should be aided in January by the launch of the euro, the new European
transnational currency.
In addition, we believe that municipal bonds may continue to provide an
opportunity for investors seeking competitive yields and relative safety as
volatility in the stock market continues. Municipal bonds will likely see
significant growth if the market's fixation on the stock market diminishes. In
the long-term, we are optimistic that the stock market will continue its record
growth, although we anticipate significant volatility as the strength of the
market is tested. With declining profits and limited pricing power, many
corporations may produce disappointing earnings in 1999. Combined with growing
questions about corporate and government reactions to the Y2K computer problem,
we could see an increasingly nervous market by mid-year.

Continued on page 3

2
<PAGE> 4

Additional details about your fund, including a question-and-answer section
with your portfolio management team, are provided in this report. As always, we
are pleased to have the opportunity to share with you the progress of your
investment.

Sincerely,

[sig]
Don G. Powell

Chairman
Van Kampen
Investment Advisory Corp.

[sig]
Dennis J. McDonnell

President
Van Kampen
Investment Advisory Corp.

3
<PAGE> 5

A FAREWELL FROM THE CHAIRMAN

------------------------ - ------------------------

Dear Shareholder,
Since I became president and chief executive officer in 1987, much has
changed in our business. However, one thing has remained constant through these
years--my commitment to you, the fund shareholder. Through the many events at
Van Kampen that have marked the passage of time--including several mergers,
company name changes, and leadership changes--we have always focused on
providing superior investment results and the highest level of customer service
to help you meet your investment objectives. I'm proud to say that during my
tenure, Van Kampen won eight consecutive awards for high-quality customer
service--more consecutive service awards than any other firm in the financial
services industry.(1) My successor, Dick Powers, shares this commitment to
meeting your needs and providing innovative and efficient ways to help you work
with your financial advisor to reach your financial goals.
Although my official retirement begins on January 1, 1999, I will remain
active in the industry and the community. I plan to continue my service as a
member of the board of directors of the Investment Company Institute, the
leading mutual fund industry association, and I will remain a trustee of your
Fund.
In closing, I want to say farewell to all of you. Thank you for your support
of Van Kampen over the years and for giving me the opportunity to serve you.

Best wishes,

[SIG]
Don G. Powell

------------------------ - ------------------------

(1)American Capital, which merged with Van Kampen in 1995, received the DALBAR
Service Award annually from 1990 to 1994. The award was called the Quality
Tested Service Seal until 1997.

4
<PAGE> 6

PERFORMANCE RESULTS FOR THE PERIOD ENDED NOVEMBER 30, 1998

VAN KAMPEN HIGH YIELD MUNICIPAL FUND

<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
<S> <C> <C> <C>
TOTAL RETURNS
One-year total return based on NAV (1)... 8.28% 7.41% 7.42%
One-year total return (2)................ 3.14% 3.41% 6.42%
Five-year average annual total return
(2)...................................... 6.67% 6.67% N/A
Ten-year average annual total return
(2)...................................... 7.82% N/A N/A
Life-of-Fund average annual total return
(2)...................................... 7.21% 7.03% 6.70%
Commencement date........................ 01/02/86 07/20/92 12/10/93

DISTRIBUTION RATES AND YIELD
Distribution rate (3).................... 5.69% 5.25% 5.25%
Taxable-equivalent distribution rate
(4)...................................... 8.89% 8.20% 8.20%
SEC Yield (5)............................ 4.99% 4.49% 4.50%
</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 November 30, 1998.

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

See the Prior Performance section of the current prospectus. Past performance
does not guarantee future results. Investment return and net asset value will
fluctuate with market conditions. Fund shares, when redeemed, may be worth more
or less than their original cost.

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.

5
<PAGE> 7

PUTTING YOUR FUND'S PERFORMANCE IN PERSPECTIVE

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Fund's performance to an applicable benchmark can:

- Illustrate the market environment in which your Fund is being managed.

- Reflect the impact of favorable market trends or difficult market
conditions.

- Help you evaluate how your Fund's management team has responded to the
opportunities and challenges.

The following graph compared your Fund's performance to that of the Lehman
Brothers Municipal Bond Index over time. The index is a broad-based, statistical
composite that does not include any commissions or sales charges that would be
paid by an investor purchasing the securities it represents.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT

Van Kampen High Yield Municipal Fund vs. Lehman Brothers Municipal Bond
Index
(November 30, 1988 through November 30, 1998)

- -----------------------------
FUND'S TOTAL RETURN

1 Year Avg. Annual = 3.14%
5 Year Avg. Annual = 6.67%
10 Year Avg. Annual = 7.82%
Inception Avg. Annual = 7.21%
- -----------------------------

[GRAPH]
<TABLE>
<CAPTION>

VAN KAMPEN HIGH YIELD MUNICIPAL LEHMAN BROTHERS MUNICIPAL BOND
FUND INDEX
------------------------------- ------------------------------
<S> <C> <C>
Nov 1988 9521.00 10000.00
9574.00 10102.00
9668.00 10311.10
9636.00 10193.60
9731.00 10169.10
9991.00 10410.10
10088.00 10626.60
10222.00 10771.20
10338.00 10917.60
10315.00 10810.70
10320.00 10778.20
10419.00 10909.70
Nov 1989 10510.00 11100.60
10563.00 11191.70
10539.00 11139.10
10622.00 11238.20
10666.00 11241.60
10637.00 11160.60
10786.00 11403.90
10876.00 11504.30
10987.00 11673.40
10876.00 11504.10
10917.00 11511.00
10999.00 11719.40
Nov 1990 11186.00 11955.00
11196.00 12007.50
11270.00 12168.50
11333.00 12274.30
11386.00 12279.20
11515.00 12442.50
11655.00 12553.30
11644.00 12540.70
11808.00 12693.70
11907.00 12861.30
12040.00 13028.50
12118.00 13145.70
Nov 1991 12162.00 13182.50
12388.00 13466.00
12422.00 13496.90
12456.00 13501.00
12525.00 13505.40
12653.00 13626.60
12793.00 13787.40
12945.00 14019.00
13228.00 14439.60
13133.00 14298.10
13217.00 14391.00
13145.00 14250.00
Nov 1992 13350.00 14505.10
13509.00 14653.00
13653.00 14823.00
13995.00 15359.60
13967.00 15196.80
14089.00 15350.20
14174.00 15436.20
14309.00 15694.00
14344.00 15714.40
14533.00 16041.30
14680.00 16224.10
14751.00 16255.00
Nov 1993 14639.00 16111.90
14881.00 16451.90
15018.00 16639.40
14786.00 16208.50
14446.00 15548.80
14506.00 15681.00
14673.00 15817.40
14666.00 15720.90
14890.00 16008.60
14976.00 16064.60
14896.00 15828.50
14761.00 15546.70
Nov 1994 14653.00 15265.30
14909.00 15601.10
15209.00 16047.30
15539.00 16514.30
15672.00 16704.20
15747.00 16724.30
16025.00 17257.80
15956.00 17107.60
16062.00 17270.20
16198.00 17489.50
16320.00 17599.70
16530.00 17854.90
Nov 1995 16801.00 18151.30
16983.00 18325.50
17075.00 18464.80
17032.00 18339.20
16957.00 18104.50
16913.00 18053.80
16977.00 18046.60
17119.00 18243.30
17261.00 18409.30
17342.00 18405.60
17502.00 18663.30
17694.00 18874.20
Nov 1996 17888.00 19219.60
17970.00 19138.90
18037.00 19175.20
18185.00 19351.60
18171.00 19094.30
18320.00 19254.70
18518.00 19543.50
18684.00 19752.60
19085.00 20299.70
19101.00 20108.90
19304.00 20348.20
19490.00 20478.50
Nov 1997 19609.00 20599.30
19952.00 20900.00
20107.00 21115.30
20211.00 21121.60
20315.00 21140.60
20350.00 21045.50
20557.00 21378.00
20678.00 21461.40
20727.00 21515.00
20956.00 21848.50
21149.00 22121.60
21146.00 22121.60
Nov 1998 21232.00 22199.10
</TABLE>

The above chart reflects the performance of Class A shares of the Fund. The
performance of Class A shares will differ from that of other share classes of
the Fund because of the difference in sales charges and/or expenses paid by
shareholders investing in the different share classes. The Fund's performance
assumes reinvestment of all distributions, and includes payment of the maximum
sales charge (4.75% for A shares).

While past performance is not indicative of future performance, the above
information provides a broader vantage point from which to evaluate the
discussion of the Fund's performance found in the following pages.

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 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.

DURATION: A measure of the sensitivity of a bond's price to changes in interest
rates, expressed in years. Each year of duration represents an expected 1
percent change in the price of a bond for every 1 percent change in interest
rates. The longer a bond's duration, the greater the effect of interest rate
movements on net asset value. Typically, funds with shorter durations
perform better in rising rate environments, while funds with longer
durations perform better when rates decline.

FEDERAL FUNDS RATE: The interest rate charged by one financial institution
lending federal funds to another. This overnight rate is used to meet banks'
daily reserve requirements. The Federal Reserve Board uses the federal funds
rate to affect the direction of interest rates.

FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank system of the United States. Its
policy-making committee, called the Federal Open Market Committee, meets
eight times a year to establish monetary policy and monitor the economic
pulse of the United States.

GENERAL OBLIGATION BONDS: Bonds backed by the full faith and credit (taxing
authority) of the issuer for timely payment of interest and principal. These
bonds are issued to finance essential government projects, such as highways
and schools.

INFLATION: A persistent and measurable rise in the general level of prices.
Inflation is widely measured by the Consumer Price Index, an economic
indicator that measures the change in the cost of purchased goods and
services.

MUNICIPAL BOND: A debt security issued by a state, municipality, or other
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,
potentially, from state and local income taxes.

7
<PAGE> 9

NET ASSET VALUE (NAV): The value of a mutual fund share, calculated by deducting
a fund's liabilities from the total assets in its portfolio and dividing
this amount by the number of shares outstanding. The NAV does not include
any initial or contingent deferred sales charge.

SECONDARY MARKET TRADE: The purchase or sale of a security that is not a new
issue.

YIELD: The annual rate of return on an investment, expressed as a percentage.
For bonds and notes, the yield is the annual interest divided by the market
price.

YIELD CURVE: A result of viewing the yields of U.S. Treasury securities maturing
in 1, 5, 10, and 30 years. When grouped together and graphed, a pattern of
increasing yield is often reflected as the time to maturity extends. This
pattern creates an upward sloping "curve." A "flat" yield curve represents
little difference between short- and long-term interest rates.

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.

8
<PAGE> 10

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 12 months. The team includes Wayne D. Godlin, portfolio manager,
and Peter W. Hegel, chief investment officer for fixed-income investments. The
following excerpts reflect their views on the Fund's performance during the
12-month period ended November 30, 1998.

Q HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT IN WHICH THE FUND HAS
OPERATED DURING THE PAST 12 MONTHS?

A The past 12 months have been very challenging in the high-yield municipal
market. As interest rates moved lower, tight credit spreads--the
difference in interest rate exposure between high- and low-quality
bonds--made it more challenging for us to take advantage of opportunities in the
market. In addition, the primary market continued to produce only a moderate
supply of high-yield bond issues.
The strength of the secondary market, on the other hand, was a benefit to
the Fund and its portfolio. Activity in the secondary market during the past 12
months has supported the value of the bonds in the Fund's portfolio and has
helped contribute to the increase in the net asset value of the Fund's shares.

Q WHERE DID YOU FIND VALUE DURING THE PERIOD?

A Our strategy for selecting high-yield municipal bonds focuses primarily on
evaluating bonds on an individual basis. Our research team of six regional
analysts continued to focus on uncovering value in small to mid-size new
issues in the $5 to $15 million range. In addition, we continued to increase the
Fund's exposure to nonrated bonds because we feel these bonds currently offer
our shareholders the greatest value.
We increased the Fund's exposure to higher-yielding nonrated bonds because
we believe there has been a significant improvement in the overall credit
quality of these types of bonds in a broad range of sectors. During the period,
the Fund continued to benefit from its exposure to these bonds. As of November
30, 1998, 85.8 percent of the Fund's portfolio was invested in nonrated bonds,
compared to 73.2 percent at the beginning of the period.

Q DID ANY PARTICULAR TYPES OF ISSUES WITHIN THE HIGH-YIELD MUNICIPAL MARKET
HELP THE FUND'S PERFORMANCE?

A Our sector weightings are a reflection of where we found opportunity on a
bond-by-bond basis. We benefited from purchases in many sectors,
including--but not limited to--land-secured financings, life care
projects, and not-for-profit social service providers.
Historically, the Fund has had particularly strong performance in health
care related issues and this continued to be the case during the past 12 months.
For example, our

9
<PAGE> 11

investments in life care projects, better known as continuing care retirement
communities, have helped the Fund's performance. These long-term care facilities
provide housing, activities, and nursing services for elderly and retired
individuals.
Overall, we look for opportunities in bonds that have had low sensitivity to
changes in the economy. We prefer investing in industries that cultivate demand
regardless of whether the economy is strong, industries such as the healthcare,
multifamily housing, and utility district sectors. For additional Fund portfolio
highlights, please refer to page 12.

Q HOW DO YOU FEEL ABOUT THE FUND'S PERFORMANCE DURING THE PAST 12 MONTHS?

A We are pleased with the Fund's overall performance. The total return for
the 12 months ended November 30, 1998, was 8.28 percent(1) (Class A shares
at net asset value), and the Fund's net asset value closed the reporting
period at $11.66 per Class A share, up from $11.45 at the beginning of the
period. The Fund's Class A share tax-exempt distribution rate as of November 30,
1998, was 5.69 percent(3), representing a taxable equivalent distribution rate
of 8.89 percent(4) for an investor in the 36-percent federal income tax bracket.
Our total return record continues to outpace the Lehman Brothers Municipal
Bond Index, which returned 7.76 percent during the same 12-month period. This
index is a broad-based index of municipal bonds and 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 on page 5 for
additional Fund performance results.

Q HOW DID THE FUND'S PERFORMANCE COMPARE TO THAT OF ITS PEERS?

A Because we typically maintain a greater percentage of assets in
higher-yielding, lower-rated securities than other funds in our peer
group, and have managed the risks well, we continued to outpace our peer
average. The Fund's performance earned an overall rating of five stars from
Morningstar in the Municipal Bond Fund Category, which means it ranked in the
top 10 percent of funds within its category. The Fund's Class A shares received
five stars in each of the three-, five-, and ten-year periods, which were
calculated among 1,572; 991; and 369 funds, respectively.
Morningstar is an independent rating company and the five-star composite
rating is the highest rating it assigns in its monthly mutual fund reviews.*
While past performance is no guarantee of future results, Morningstar ratings
provide a means to measure a fund's ability to achieve its investment goals. Ten
percent of the funds receive five stars, 22.5 percent receive four stars, 35
percent receive three stars, 22.5 percent receive two stars, and 10 percent
receive one star.

10
<PAGE> 12

Q
THE FEDERAL RESERVE BOARD RECENTLY LOWERED INTEREST RATES. WHAT EFFECT WILL
THIS HAVE ON THE FUND'S FUTURE PERFORMANCE AND STRATEGY?
A
Regardless of what the Fed does, we will not change the Fund's strategy.
We will continue to follow the same approach that has helped the Fund
maintain its strong relative performance during the past 10
years--in-depth market research of individual bonds that we feel offer the
greatest value.
Clearly, the Fund has benefited from strong economic growth in the United
States. We view Fed actions such as these (lowering interest rates by a total of
0.75 percent near the end of the period) as a measure the Fed takes to help
protect the economy. While lower interest rates create a positive environment
for bonds in general, there are long-term consequences that we will monitor,
including what effect these actions could have on refinancing activities.
Q
WHAT IS YOUR OUTLOOK FOR THE FUND IN THE NEXT SIX MONTHS?
A
During the next few months we anticipate a slight widening of credit
spreads. In this case, the difference between interest rates for high- and
low-quality issues could provide us with investment opportunities,
especially within the primary market. We also expect to see continued
improvement in the credit quality of nonrated bonds, which would help improve
the average credit quality of the Fund.
We expect to maintain a consistent, steady course for the Fund. We will
continue to focus on our strengths as a management team: primary market research
and finding value in nonrated bonds. Because we don't believe the Fed will
continue to lower interest rates in the short term, we will continue to maintain
a short duration to help protect the Fund from interest rate fluctuations. In
the long run, we believe that our disciplined approach, duration management, and
in-depth market research should continue to help the Fund achieve its investment
objective--providing shareholders 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

*The five-star rating is a composite rating. Morningstar is an independent
mutual fund performance monitor. Morningstar proprietary ratings reflect
historical risk-adjusted performance as of November 30, 1998. The ratings are
subject to change every month. Past performance is no guarantee of future
results. Morningstar ratings are calculated from the funds three-, five-, and
ten-year average annual returns (if applicable) in excess of 90-day Treasury
bill returns with appropriate fee adjustments, and a risk factor that reflects
fund performance below 90-day T-bill returns. Ratings are for Class A shares and
may vary for other class shares.

Please see footnotes on page 5

11
<PAGE> 13

PORTFOLIO HIGHLIGHTS

VAN KAMPEN HIGH YIELD MUNICIPAL FUND
TOP TEN STATES AS OF NOVEMBER 30, 1998

<TABLE>
<CAPTION>
PERCENTAGE OF FUND'S
LONG-TERM INVESTMENTS
<S> <C>
Pennsylvania ............ 11.5%
Massachusetts ........... 9.5%
Florida ................. 8.8%
Illinois ................ 7.5%
California .............. 6.4%
New Jersey .............. 4.4%
New York ................ 3.9%
Colorado ................ 3.9%
Ohio .................... 3.3%
Minnesota ............... 2.8%
</TABLE>

CREDIT QUALITY AS A PERCENTAGE OF LONG-TERM INVESTMENTS

November 30, 1998
<S> <C> <C> <C>
AAA 2.6% AAA 3.6%
AA 1.0% AA 4.3%
A 1.5% A 2.3%
BBB 3.5% [PIE CHART] BBB 9.6% [PIE CHART]
BB 4.8% BB 6.1%
B 0.7% B 0.9%
CCC 0.1%
NON-RATED 85.8% NON-RATED 73.2%

</TABLE>

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

TOP FIVE PORTFOLIO SECTORS AS A PERCENTAGE OF LONG-TERM INVESTMENTS

<TABLE>
<CAPTION>
AS OF NOVEMBER 30, 1998
<S> <C>
Other Care ................ 22.3%
Health Care ............... 17.2%
Multi-Family Housing ...... 16.4%
Industrial Revenue ........ 16.4%
Tax District .............. 7.7%
</TABLE>

<TABLE>
<CAPTION>
AS OF NOVEMBER 30, 1997
<S> <C>
Industrial Revenue ........ 21.6%
Other Care ................ 20.0%
Health Care ............... 16.3%
Multi-Family Housing ...... 11.9%
Tax District .............. 7.1%
</TABLE>

DURATION

<TABLE>
<CAPTION>
AS OF NOVEMBER 30, 1998 AS OF NOVEMBER 30, 1997
<S> <C> <C>
Duration 6.01 years 5.94 years
</TABLE>

12
<PAGE> 14

PORTFOLIO OF INVESTMENTS

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 97.4%
ALABAMA 0.3%
$ 750 Vincent, AL Indl Dev Brd Shelby Motel Group Inc
Proj........................................... 10.500% 09/01/16 $ 735,000
3,255 West Jefferson Cnty, AL Amusement & Pub Pk Auth
First Mtg Visionland Proj...................... 8.000 12/01/26 3,653,835
--------------
4,388,835
--------------
ALASKA 0.2%
2,250 Seward, AK Rev AK Sealife Cent Proj............ 7.650 10/01/16 2,421,180
--------------
ARIZONA 2.7%
1,205 Casa Grande, AZ Indl Dev Auth Rfdg............. 8.250 12/01/15 1,277,577
2,880 Chandler, AZ Indl Dev Auth Rev Chandler Finl
Cent Proj Ser 1986 (c)......................... 9.875 12/01/16 2,448,290
3,000 Flagstaff, AZ Indl Dev Auth Rev Sr Living Cmnty
Northern AZ Ser A.............................. 6.200 09/01/28 2,991,150
5,500 Maricopa Cnty, AZ Indl Dev Auth Multi-Family
Hsg Rev (e).................................... 6.625 07/01/33 5,579,310
3,000 Maricopa Cnty, AZ Indl Dev Auth Sr Living Fac
Rev............................................ 7.750 04/01/15 3,239,940
1,300 McDowell, AZ Mountain Ranch Cmnty Fac Dist..... 6.500 07/15/22 1,349,296
999 Peoria, AZ Indl Dev Auth Sierra Winds Life Care
Cmnty Proj (Var Rate Cpn)...................... 8.500 11/01/17 1,093,985
2,750 Pima Cnty, AZ Indl Dev Auth Indl Rev Tuscon
Elec Pwr Co Ser A.............................. 6.100 09/01/25 2,779,535
3,000 Pima Cnty, AZ Indl Dev Auth Multi-Family Rev
(e)............................................ 6.625 10/01/28 3,061,320
2,000 Pima Cnty, AZ Indl Dev Auth Rev La Posada at
Park Cent Ser A................................ 7.000 05/15/27 2,152,020
3,600 Pima Cnty, AZ Indl Dev Auth Sr Living Facs
Catilina Vlg Ser A Rev......................... 6.500 07/01/29 3,628,872
1,025 Pinal Cnty, AZ Indl Dev Auth Casa Grande Regl
Med Cent Proj Ser A............................ 8.125 12/01/22 1,136,346
475 Pinal Cnty, AZ Indl Dev Auth Casa Grande Regl
Med Cent Proj Ser B............................ 8.125 12/01/22 526,599
1,500 Red Hawk Canyon Cmnty Facs Dist No 2 AZ Dist
Assmt Rev...................................... 6.000 12/01/02 1,506,600
1,425 Red Hawk Canyon Cmnty Facs Dist No 2 AZ Dist
Assmt Rev...................................... 6.500 12/01/12 1,445,292
1,035 Scottsdale, AZ Indl Dev Auth Rev First Mtg
Westminster Vlg Ser A Rfdg..................... 8.000 06/01/11 1,172,676
2,000 Scottsdale, AZ Indl Dev Auth Rev First Mtg
Westminster Vlg Ser A Rfdg..................... 8.250 06/01/15 2,281,700
1,845 Tuscon, AZ Indl Dev Auth Rev Clarion Santa Rita
Hotel Ser A Rfdg (e)........................... 6.375 12/01/16 1,852,011
--------------
39,522,519
--------------
</TABLE>

See Notes to Financial Statements

13
<PAGE> 15
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ARKANSAS 0.3%
$ 500 Fayetteville, AR Pub Fac Brd Rev Butterfield
Trail Vlg Proj B (Prerefunded @ 09/01/99)...... 9.500% 09/01/14 $ 533,040
4,260 Jackson Cnty, AR Hlthcare Fac Brd First Mtg
Hosp Rev Newport Hosp & Clinic Inc............. 7.375 11/01/11 4,470,785
--------------
5,003,825
--------------
CALIFORNIA 6.2%
1,255 Abag Fin Auth For Nonprofit Corps CA Ctfs
Partn.......................................... 6.375 11/15/15 1,265,404
1,455 Abag Fin Auth For Nonprofit Corps CA Ctfs
Partn.......................................... 6.375 11/15/28 1,458,565
1,000 Brentwood, CA Impt Bond Act 1915............... 6.000 09/02/27 1,030,210
1,210 California Edl Fac Auth Rev Pacific Graduate
Sch of Psych................................... 7.600 11/01/21 1,306,437
2,350 California Edl Fac Auth Rev Pacific Graduate
Sch of Psych................................... 8.000 11/01/21 2,585,822
2,000 Corona, CA Ctfs Partn Vista Hosp Sys Inc Ser
B.............................................. 9.500 07/01/20 2,465,940
2,500 Corona, CA Ctfs Partn Vista Hosp Sys Inc Ser
C.............................................. 8.375 07/01/11 2,835,375
1,500 Davis, CA Pub Fac Fin Auth Loc Agy Rev......... 6.600 09/01/25 1,602,015
1,300 Emeryville, CA Impt Bond Act 1915 Assmt Dist
93-1 East Baybridge............................ 7.300 09/02/21 1,352,546
1,000 Folsom, CA Pub Fin Auth Ser A.................. 6.875 09/02/19 1,032,450
1,500 Folsom, CA Spl Tax Cmnty Fac Dist No 7 Rfdg.... 7.250 09/01/21 1,635,360
1,000 Fontana, CA Spl Tax Sub Cmnty Fac Dist 2 Ser C
Rfdg........................................... 6.375 09/01/17 1,000,020
2,730 Fresno, CA Ctfs Partn.......................... 8.500 05/01/16 2,899,615
840 Healdsburg, CA Ctfs Partn Nuestro Hosp Inc..... 6.250 11/01/08 843,083
2,500 Healdsburg, CA Ctfs Partn Nuestro Hosp Inc..... 6.375 11/01/28 2,475,100
990 Indio, CA Pub Fin Auth Rev Tax Increment....... 6.500 08/15/27 1,033,758
1,200 Irvine, CA Mobile Home Pk Rev Sub Meadows
Mobile Home Pk Ser B........................... 6.050 03/01/28 1,215,504
3,000 Irwindale, CA Pub Fin Auth Spl Cmnty Facs Dist
No 1 Rfdg...................................... 6.000 11/01/20 3,057,420
4,550 Lake Elsinore, CA Pub Fin Auth Loc Agy Rev..... 7.100 09/01/20 4,941,254
1,500 Los Angeles, CA Cmnty Fac Dist Spl Tax No. 3
Cascades Business Pk........................... 6.400 09/01/22 1,573,665
3,000 Merced, CA Irrigation Dist Rev Ctfs Partn Sub
Electric Sys Proj.............................. 6.300 03/01/19 3,045,990
4,500 Millbrae, CA Residential Fac Rev Magnolia of
Millbrae Proj Ser A............................ 7.375 09/01/27 4,764,375
1,000 Moreno Vly, CA Spl Tax Towngate Cmnty Fac Dist
87-1........................................... 7.125 10/01/23 1,051,720
2,000 Perris, CA Pub Fin Auth Loc Agy Rev Ser D...... 7.875 09/01/25 2,255,480
1,500 Rancho Cucamonga, CA Cmnty Fac Dist Spl Tax No
88-2........................................... 8.250 09/01/19 1,683,060
100 Rancho Cucamonga, CA Cmnty Fac Dist Spl Tax No
88-2........................................... 8.000 09/01/20 110,733
3,000 Reedley, CA Ctfs Partn......................... 7.500 10/01/26 3,297,630
3,105 Richmond, CA Redev Agy Multi-Family Rev Ser
A.............................................. 7.500 09/01/23 3,190,574
</TABLE>

See Notes to Financial Statements

14
<PAGE> 16
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$7,500 Riverside Cnty, CA Air Force Vlg West Inc Ser A
Rfdg........................................... 8.125% 06/15/20 $ 8,281,200
2,000 Sacramento, CA Spl Tax Cmnty Fac Dist No 97-1
Ser A.......................................... 6.700 09/01/17 2,115,060
2,000 Sacramento, CA Spl Tax Cmnty Fac Dist No 97-1
Ser A.......................................... 6.750 09/01/27 2,104,920
2,500 San Bernardino, CA Assn Cmntys Fin Auth
Hlthcare Ctfs Partn............................ 6.900 05/01/27 2,630,925
3,000 San Bernardino, CA Hosp Rev San Bernardino
Cmnty Hosp Rfdg................................ 7.875 12/01/19 3,124,080
1,900 San Luis Obispo, CA Ctfs Partn Vista Hosp Sys
Inc............................................ 8.375 07/01/29 2,114,757
3,000 Santa Ana, CA Cmnty Redev Agy Tax Alloc Ser B
Rfdg........................................... 7.500 09/01/16 3,105,750
1,000 Santa Rosa, CA Impt Bond Act 1915 Fountaingrove
Pkwy Extension Assmt........................... 7.625 09/02/19 1,034,540
2,000 Simi Valley, CA Cmnty Dev Agy Coml Sycamore
Plaza II Rfdg.................................. 6.000 09/01/12 2,030,000
1,835 Stockton, CA Cmnty Facs Dist Spl Tax........... 6.000 09/01/24 1,897,060
2,000 Vallejo, CA Hiddenbrooke Impt Dist No 1........ 6.500 09/01/31 2,017,280
3,000 Ventura, CA Port Dist Ctfs Partn............... 6.375 08/01/28 3,039,090
800 Vista, CA Mobile Home Pk Rev Estrella De Oro
Mobile Home Ser A.............................. 5.875 02/01/28 812,232
--------------
91,315,999
--------------
COLORADO 3.8%
1,000 Arrowhead Metro Dist CO (Prerefunded @
12/01/02)...................................... 8.125 12/01/11 1,180,300
1,060 Berry Creek Metro Dist CO Rfdg................. 7.300 12/01/12 1,141,376
2,367 Bowles Metro Dist CO........................... 7.750 12/01/15 2,517,659
2,250 Colorado Hlth Fac Auth Rev Baptist Home Assoc
Ser A.......................................... 6.375 08/15/24 2,376,720
1,300 Colorado Hlth Fac Auth Rev Sr Living Fac Eaton
Terrace Ser A.................................. 6.800 07/01/09 1,368,562
3,250 Colorado Hlth Fac Auth Rev Sr Living Fac Eaton
Terrace Ser A.................................. 7.250 07/01/22 3,400,020
1,500 Colorado Hlth Fac Auth Rev Christian Living
Campus Proj.................................... 9.000 01/01/25 1,779,150
2,000 Colorado Hlth Fac Auth Rev Shalom Pk Proj Rfdg
& Impt......................................... 7.250 12/15/25 2,088,240
1,250 Cordillera Metro Dist CO Eagle Cnty............ 8.250 12/01/13 1,428,287
3,000 Cottonwood Wtr & Sanitation Dist CO Ser A
Rfdg........................................... 7.750 12/01/20 3,252,000
1,055 Denver, CO City & Cnty Indl Dev Rev Jewish
Cmnty Cent Proj................................ 7.375 03/01/09 1,183,837
1,130 Denver, CO City & Cnty Indl Dev Rev Jewish
Cmnty Cent Proj................................ 7.500 03/01/14 1,256,142
815 Denver, CO City & Cnty Indl Dev Rev Jewish
Cmnty Cent Proj................................ 7.875 03/01/19 911,846
1,460 Denver, CO City & Cnty Single Family Mtg Rev
Ser A (GNMA Collateralized).................... 8.125 12/01/20 1,491,186
</TABLE>

See Notes to Financial Statements

15
<PAGE> 17
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COLORADO (CONTINUED)
$1,855 Denver, CO Urban Renewal Auth Tax Increment Rev
South Bdwy/Montgomery Ward..................... 8.500% 05/01/16 $ 2,071,312
2,000 Eagle Cnty, CO Air Term Corp Rev Arpt Term
Proj........................................... 7.500 05/01/21 2,187,140
1,000 Eaglebend, CO Affordable Hsg Corp Multi-Family
Rev Hsg Proj................................... 6.200 07/01/12 1,053,910
1,735 Eaglebend, CO Affordable Hsg Corp Multi-Family
Rev Hsg Proj................................... 6.400 07/01/17 1,829,020
1,500 Eaglebend, CO Affordable Hsg Corp Multi-Family
Rev Hsg Proj................................... 6.450 07/01/21 1,581,090
4,000 Fairlake Metro Dist City & Cnty of Denver, CO
(Prerefunded @ 12/01/01)....................... 9.625 12/01/10 4,625,280
2,500 Hyland Hills, CO Metro Pk & Rec Dist Spl Rev
Ser A (Prerefunded @ 12/15/02)................. 8.625 12/15/12 2,993,475
4,000 Lafayette, CO Indl Dev Rev Rocky Medium Term Nt
Instr Proj Ser A............................... 7.000 10/01/18 3,932,640
500 Lafayette, CO Indl Dev Rev Rocky Medium Term Nt
Instr Proj Ser B............................... 6.125 10/01/08 498,965
1,000 Landmark Metro Dist CO (Prerefunded @
06/01/00)...................................... 8.750 12/01/05 1,064,810
4,300 Northern Metro Dist CO Adams Cnty Rfdg (e)..... 6.500 12/01/16 4,645,892
500 Panorama Metro Dist CO Ser B Rfdg (Prerefunded
@ 12/01/99).................................... 9.000 12/01/09 533,765
145 Skyland Metro Dist CO Gunnison Cnty Rfdg (Var
Rate Cpn)...................................... 5.000 12/01/08 103,762
750 Snowmass Vlg, CO Multi-Family Hsg Rev Ser A
Rfdg........................................... 8.000 09/01/14 787,875
660 Superior, CO Metro Dist No 2 Ser A Rfdg........ 7.250 12/01/02 714,707
2,000 Telluride, CO Hsg Auth Hsg Rev Shandoka Apts
Proj Rfdg...................................... 7.875 06/01/17 2,128,600
--------------
56,127,568
--------------
CONNECTICUT 2.0%
1,000 Connecticut St Dev Auth Mystic Marinelife Aquar
Proj A......................................... 7.000 12/01/27 1,076,100
2,195 Connecticut St Dev Auth First Mtg Gross Rev
Hlthcare Proj CT Baptist Homes Inc Proj........ 8.750 09/01/12 2,447,096
1,500 Connecticut St Dev Auth First Mtg Gross Rev
Hlthcare Proj CT Baptist Homes Inc Proj........ 9.000 09/01/22 1,684,755
1,325 Connecticut St Dev Auth Hlthcare Rev Indpt
Living Proj Ser B.............................. 8.000 07/01/17 1,452,213
1,850 Connecticut St Dev Auth Hlthcare Rev Jerome
Home Proj (Prerefunded @ 11/01/99)............. 8.000 11/01/19 1,965,607
3,400 Connecticut St Dev Auth Indl Dev Rev Watson
Foods Co Inc Proj.............................. 5.900 06/01/28 3,438,760
2,000 Connecticut St Hlth & Edl Fac Auth Rev......... 6.875 07/01/27 2,159,300
</TABLE>

See Notes to Financial Statements

16
<PAGE> 18
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONNECTICUT (CONTINUED)
$2,500 Connecticut St Hlth & Edl Fac Auth Rev Tolland
Cnty Hlthcare Inc Ser A........................ 9.200% 07/01/21 $ 2,779,850
300 Connecticut St Hlth & Edl Facs Auth Rev........ 6.875 07/01/17 323,895
5,000 Greenwich, CT Hsg Auth Multi-Family Rev Hsg
Greenwich Close Ser A.......................... 6.350 09/01/27 5,194,000
1,705 Greenwich, CT Hsg Auth Multi-Family Rev Hsg
Greenwich Close Ser B.......................... 7.500 09/01/27 1,720,243
1,435 Manchester, CT Redev Agy Multi-Family Mtg Rev
Bennet Hsg Dev Rfdg............................ 7.200 12/01/18 1,565,843
1,365 New Haven, CT Fac Rev Easter Seal Goodwill
Rehab Proj (c)................................. 8.875 04/01/16 1,303,302
2,205 New Haven, CT Indl Fac Rev Adj Govt Cent
Thermal Energies............................... 7.250 07/01/09 2,288,878
--------------
29,399,842
--------------
DELAWARE 0.5%
2,380 Delaware St Econ Dev Auth Indl Dev Rev First
Mtg Dover Hlthcare Rfdg........................ 7.875 04/01/08 2,596,152
955 Delaware St Econ Dev Auth Rev Osteopathic Hosp
Assn of DE Ser A (Prerefunded @ 07/01/04)...... 9.500 01/01/22 1,213,566
3,500 Wilmington, DE Multi-Family Rent Rev Hsg
Electra Arms Sr Assoc Proj..................... 6.250 06/01/28 3,444,420
--------------
7,254,138
--------------
DISTRICT OF COLUMBIA 0.3%
3,500 District of Columbia Rev Natl Pub Radio Ser
A.............................................. 7.700 01/01/23 3,822,770
--------------
FLORIDA 8.6%
995 Arbor Greene Cmnty Dev Dist FL Spl Assmt Rev... 6.300 05/01/19 1,014,393
875 Atlantic Beach, FL Rev Fleet Landing Proj Ser A
Rfdg & Impt.................................... 7.500 10/01/02 915,626
2,085 Atlantic Beach, FL Rev Fleet Landing Proj Ser A
Rfdg & Impt.................................... 7.875 10/01/08 2,365,245
1,500 Bay Cnty, FL Hosp Sys Rev Bay Med Cent Proj
Rfdg (Prerefunded @ 10/01/04).................. 8.000 10/01/12 1,786,905
500 Bay Cnty, FL Hosp Sys Rev Bay Med Cent Proj
Rfdg (Prerefunded @ 10/01/04).................. 8.000 10/01/19 613,580
1,980 Bayside Impt Cmnty Dev Dist FL Ser A........... 6.300 05/01/18 2,009,660
555 Bayside Impt Cmnty Dev Dist FL Ser B........... 6.375 05/01/18 563,281
1,150 Bobcat Trail Cmnty, FL Dev Dist Cap Impt Rev... 6.750 05/01/04 1,169,941
1,300 Bobcat Trail Cmnty, FL Dev Dist Cap Impt Rev... 7.500 05/01/19 1,345,357
3,335 Boca Raton, FL Hsg Auth Mtg Hsg Rev First Lien
Banyan Place Sr Living A....................... 7.150 04/01/31 3,457,995
910 Boca Raton, FL Hsg Auth Mtg Hsg Rev Second Lien
Banyan Place Sr Living B....................... 8.700 10/01/32 950,722
</TABLE>

See Notes to Financial Statements

17
<PAGE> 19
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$1,180 Brevard Cnty, FL Hlth Fac Auth Rev Courtenay
Springs Vlg Rfdg............................... 7.375% 11/15/04 $ 1,282,412
2,200 Brevard Cnty, FL Hlth Fac Auth Rev Courtenay
Springs Vlg Rfdg............................... 7.750 11/15/17 2,434,190
160 Charlotte Cnty, FL Indl Dev Auth Rev Beverly
Enterprises Rfdg............................... 10.000 06/01/11 179,667
1,410 Collier Cnty, FL Indl Dev Auth Retirement
Rental Hsg Rev................................. 10.750 03/01/03 1,591,453
4,350 Fishhawk Cmnty, FL Dev Dist Spl Assmt Rev...... 7.625 05/01/18 4,715,574
4,000 Florida Hsg Fin Corp Rev Hsg Beacon Hill Apts
Ser C.......................................... 6.610 07/01/38 4,074,240
4,000 Florida Hsg Fin Corp Rev Hsg Cypress Trace Apts
Ser G.......................................... 6.600 07/01/38 4,071,000
5,000 Florida Hsg Fin Corp Rev Hsg Westchase Apts Ser
B.............................................. 6.610 07/01/38 5,092,800
815 Fort Walton Beach, FL Indl Dev Rev First Mtg
Fort Walton Beach Venture Proj................. 10.500 12/01/16 841,088
1,000 Heritage Harbor Cmnty Dev Dist FL Rev Recntl... 7.750 05/01/19 1,011,540
1,000 Heritage Harbor Cmnty Dev Dist FL Rev Spl Assmt
Ser A.......................................... 6.700 05/01/19 1,022,680
1,000 Heritage Harbor Cmnty Dev Dist FL Rev Spl Assmt
Ser B.......................................... 6.000 05/01/03 1,017,530
1,015 Hernando Cnty, FL Indl Dev Rev Beverly
Enterprises Rfdg............................... 10.000 09/01/11 1,149,406
3,000 Hialeah Gardens, FL Indl Dev Rev Waterford
Convalescent Ser A Rfdg........................ 8.250 12/01/14 3,305,670
1,500 Homestead, FL Indl Dev Rev Brookwood Gardens
Cent Proj Ser A Rfdg........................... 8.250 12/01/14 1,652,835
1,300 Lake Bernadette, FL Cmnty Dev Dist Spl Assmt
Rev Ser A...................................... 8.000 05/01/17 1,393,704
2,445 Lake Saint Charles, FL Cmnty Dev Dist Spl Assmt
Rev............................................ 7.875 05/01/17 2,629,500
2,000 Largo, FL Sun Coast Hlth Sys Rev Hosp.......... 6.200 03/01/13 2,026,880
2,350 Largo, FL Sun Coast Hlth Sys Rev Hosp.......... 6.300 03/01/20 2,372,842
680 Lee Cnty, FL Indl Dev Auth Econ Rev Encore
Nursing Cent Partn Rfdg........................ 8.125 12/01/07 752,447
2,000 Lee Cnty, FL Indl Dev Auth Hlthcare Fac Rev.... 6.250 10/01/17 2,083,720
1,500 Lee Cnty, FL Indl Dev Auth Hlthcare Fac Rev.... 6.375 10/01/25 1,571,115
5,000 Leon Cnty, FL Edl Facs Auth Rev Southgate
Residence Hall Ser A Rfdg...................... 6.750 09/01/28 5,096,000
4,055 Mount Dora, FL Hlth Fac Auth Hlth Rev.......... 7.125 08/15/21 4,224,904
2,000 North Springs, FL Impt Dist Spl Assmt Rev...... 6.250 05/01/05 2,055,300
1,000 North Springs, FL Impt Dist Spl Assmt Rev...... 7.000 05/01/19 1,055,710
3,000 Northern Palm Beach Cnty, FL Impt Dist Wtr Ctl
& Impt Unit Dev................................ 7.200 08/01/16 3,292,860
2,500 Northern Palm Beach Cnty, FL Impt Dist Wtr Ctl
& Impt Unit Dev................................ 7.300 08/01/27 2,757,375
440 Orange Cnty, FL Hlth Fac Auth Rev First Mtg
Orlando Lutheran Twr Rfdg...................... 8.125 07/01/06 490,468
</TABLE>

See Notes to Financial Statements

18
<PAGE> 20
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$2,035 Orange Cnty, FL Hlth Fac Auth Rev First Mtg
Orlando Lutheran Twr Rfdg...................... 8.400% 07/01/14 $ 2,366,624
1,325 Orange Cnty, FL Hlth Fac Auth Rev First Mtg
Orlando Lutheran Twr Rfdg...................... 8.625 07/01/20 1,561,552
1,250 Orange Cnty, FL Hlth Fac Auth Rev First Mtg
Orlando Lutheran Twr Rfdg...................... 8.750 07/01/26 1,465,162
2,380 Orange Cnty, FL Hsg Fin Auth Hsg Alhambra Trace
Apts Proj Ser C................................ 7.375 04/01/28 2,423,554
2,515 Orange Cnty, FL Hsg Fin Auth Multi-Family Rev
Mtg Hands Inc Proj Ser A....................... 7.875 10/01/15 2,791,575
2,035 Orange Cnty, FL Hsg Fin Auth Multi-Family Rev
Mtg Hands Inc Proj Ser A....................... 8.000 10/01/25 2,272,810
415 Orange Cnty, FL Indl Dev Auth Rev Beverly
Enterprises Proj Rfdg.......................... 9.250 08/01/10 461,061
3,000 Overoaks, FL Cmnty Dev Dist Cap Impt Rev....... 8.250 05/01/17 3,145,620
3,000 Pinellas Cnty, FL Edl Fac Auth Rev College
Harbor Proj Ser A.............................. 8.250 12/01/21 3,311,910
1,000 Piney Z Cmnty Dev Dist FL Cap Impt Rev Ser A... 7.250 05/01/19 1,037,740
1,295 Piney Z Cmnty Dev Dist FL Cap Impt Rev Ser B... 6.500 05/01/02 1,300,206
1,370 Plantation, FL Hlth Fac Auth Rev Covenant
Retirement Cmnty Inc (Prerefunded @
12/01/02)...................................... 7.625 12/01/12 1,583,953
750 Plantation, FL Hlth Fac Auth Rev Covenant
Retirement Cmnty Inc Rfdg (Prerefunded @
12/01/02)...................................... 7.750 12/01/22 870,578
1,000 Saint John's Cnty, FL Indl Dev Auth Hlthcare
Rev Bayview Proj Ser A......................... 7.100 10/01/16 1,089,640
2,000 Saint John's Cnty, FL Indl Dev Auth Hlthcare
Rev Bayview Proj Ser A......................... 7.100 10/01/26 2,183,240
250 Santa Rosa Cnty, FL Indl Dev Auth Rev First Mtg
Sandy Ridge Care Cent.......................... 10.500 04/01/16 253,770
1,000 Sarasota Cnty, FL Hlth Fac Auth Rev Hlthcare
Manatee Jewish Rfdg............................ 7.000 07/01/16 1,083,130
2,300 Tamarac, FL Indl Dev Rev Sun Belt Precision
Prods Inc...................................... 6.500 08/01/17 2,376,590
1,700 Tampa Palms, FL Open Space & Transn Cmnty Dev
Dist Rev Cap Impt Area 7 Proj.................. 8.500 05/01/17 1,882,308
2,200 Tampa Palms, FL Open Space & Transn Cmnty Dev
Dist Rev Cap Impt Area 7 Proj.................. 7.500 05/01/18 2,356,772
710 Volusia Cnty, FL Indl Dev Auth Bishops Glen
Proj Rfdg...................................... 7.125 11/01/06 765,281
1,835 Volusia Cnty, FL Indl Dev Auth Bishops Glen
Proj Rfdg...................................... 7.500 11/01/16 2,032,409
2,000 Volusia Cnty, FL Indl Dev Auth Bishops Glen
Proj Rfdg...................................... 7.625 11/01/26 2,230,080
</TABLE>

See Notes to Financial Statements

19
<PAGE> 21
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$1,730 Westchase East Cmnty, FL Dev Dist Cap Impt
Rev............................................ 7.500% 05/01/17 $ 1,847,951
1,965 Westchase East Cmnty, FL Dev Dist Cap Impt
Rev............................................ 7.300 05/01/18 2,113,672
--------------
126,244,803
--------------
GEORGIA 2.0%
1,640 Athens Clarke Cnty, GA Residential Care Fac for
the Elderly Auth Rev........................... 6.350 10/01/17 1,697,646
1,720 Athens Clarke Cnty, GA Residential Care Fac for
the Elderly Auth Rev........................... 6.375 10/01/27 1,775,659
3,300 Atlanta, GA Urban Residential Fin Auth
Multi-Family Rev............................... 6.750 07/01/30 3,374,283
3,000 Atlanta, GA Urban Residential Fin Auth
Multi-Family Hsg Renaissance on Peachtree Apts
Proj Ser 85.................................... 8.500 04/01/26 3,408,960
375 Coweta Cnty, GA Residential Care Fac For The
Elderly Auth Rev First Lien Wesley Woods Ser
A.............................................. 7.625 10/01/06 423,229
1,500 Coweta Cnty, GA Residential Care Fac For The
Elderly Auth Rev First Lien Wesley Woods Ser
A.............................................. 8.200 10/01/16 1,745,175
1,500 Coweta Cnty, GA Residential Care Fac For The
Elderly Auth Rev First Lien Wesley Woods Ser
A.............................................. 8.250 10/01/26 1,749,855
500 Forsyth Cnty, GA Hosp Auth Rev GA Baptist
Hlthcare Sys Proj.............................. 6.000 10/01/08 501,425
1,500 Forsyth Cnty, GA Hosp Auth Rev GA Baptist
Hlthcare Sys Proj.............................. 6.250 10/01/18 1,489,740
1,500 Forsyth Cnty, GA Hosp Auth Rev GA Baptist
Hlthcare Sys Proj.............................. 6.375 10/01/28 1,492,890
1,000 Fulton Cnty, GA Hsg Auth Multi-Family Hsg
Rev............................................ 6.375 02/01/08 1,015,130
4,000 Fulton Cnty, GA Hsg Auth Multi-Family Hsg
Rev............................................ 6.500 02/01/28 4,072,640
300 Richmond Cnty, GA Dev Auth Nursing Home Rev
Beverly Enterprises GA Proj Rfdg............... 8.750 06/01/11 335,517
3,000 Rockdale Cnty, GA Dev Auth Solid Waste Disp
Visy Paper Inc Proj............................ 7.500 01/01/26 3,212,340
2,500 Smyrna, GA Hosp Auth Rev First Mtg Woodland
Ridge Proj..................................... 6.000 07/01/28 2,492,975
--------------
28,787,464
--------------
HAWAII 0.1%
840 Hawaii Cnty, HI Impt Dist No 17 Spl Assmt
Kaloko Subdivision............................. 9.500 08/01/11 904,974
--------------
ILLINOIS 7.3%
1,475 Bedford Park, IL Tax Increment Rev 71st &
Cicero Proj Rfdg............................... 7.375 01/01/12 1,610,685
1,475 Bedford Park, IL Tax Increment Rev Mark IV Proj
(Prerefunded @ 03/01/02)....................... 9.750 03/01/12 1,748,288
960 Bedford Park, IL Tax Increment Rev Sr Lien
Bedford City Sq Proj........................... 9.250 02/01/12 1,096,502
</TABLE>

See Notes to Financial Statements

20
<PAGE> 22
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$2,810 Broadview, IL Tax Increment Rev Sr Lien........ 8.250% 07/01/13 $ 3,200,281
250 Carol Stream, IL First Mtg Rev Windsor Park
Manor Proj..................................... 7.000 12/01/13 272,325
2,000 Carol Stream, IL First Mtg Rev Windsor Park
Manor Proj..................................... 7.200 12/01/14 2,191,500
1,000 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
American Airls Inc Proj Rfdg................... 8.200 12/01/24 1,185,360
540 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
American Airls Inc Proj Ser A.................. 7.875 11/01/25 582,001
3,500 Chicago, IL O'Hare Intl Arpt Spl Fac Rev United
Airls Inc...................................... 8.500 05/01/18 3,750,915
1,500 Chicago, IL Tax Increment...................... 7.250 01/01/14 1,634,910
3,000 Clay Cnty, IL Hosp Rev......................... 5.900 12/01/28 3,033,960
3,000 Crestwood, IL Tax Increment Rev Rfdg........... 7.250 12/01/08 3,236,820
500 Hodgkins, IL Tax Increment..................... 9.500 12/01/09 585,310
4,000 Hodgkins, IL Tax Increment Ser A Rfdg.......... 7.625 12/01/13 4,463,480
3,500 Huntley, IL Increment Alloc Rev Huntley Redev
Proj Ser A..................................... 8.500 12/01/15 4,102,385
2,450 Huntley, IL Spl Svc Area Number 6.............. 6.750 02/01/25 2,501,719
2,470 Illinois Dev Fin Auth Hlth Fac Rev Cmnty Living
Options........................................ 7.125 03/01/10 2,718,581
690 Illinois Dev Fin Auth Rev Cmnty Fac Clinic
Altgeld Proj................................... 8.000 11/15/06 773,828
1,750 Illinois Dev Fin Auth Rev Cmnty Fac Clinic
Altgeld Proj................................... 8.000 11/15/16 1,954,068
2,000 Illinois Dev Fin Auth Rev Debt
Restructure--East Saint Louis.................. 7.375 11/15/11 2,295,920
4,000 Illinois Edl Fac Auth Rev Peace Mem Ministries
Proj........................................... 7.500 08/15/26 4,417,480
1,500 Illinois Edl Facs Auth Rev Lifelink Corp Oblig
Group Rfdg..................................... 5.850 02/15/20 1,509,555
4,295 Illinois Edl Facs Auth Rev Lifelink Corp Oblig
Group Rfdg..................................... 5.700 02/15/24 4,260,511
240 Illinois Hlth Fac Auth Rev Fairview Oblig Group
Ser A.......................................... 7.125 08/15/17 264,814
1,475 Illinois Hlth Fac Auth Rev Covenant Retirement
Cmntys Ser A................................... 7.600 12/01/12 1,661,130
3,000 Illinois Hlth Fac Auth Rev Fairview Oblig Group
Ser A Rfdg..................................... 7.400 08/15/23 3,351,120
470 Illinois Hlth Fac Auth Rev Hinsdale Ser C...... 9.500 11/15/19 532,049
1,700 Illinois Hlth Fac Auth Rev Lifelink Corp Oblig
Group Ser B (Prerefunded @ 02/15/05)........... 8.000 02/15/25 2,067,812
4,000 Illinois Hlth Fac Auth Rev Lutheran Home & Svcs
Proj Ser A..................................... 7.500 08/15/26 4,366,760
1,000 Illinois Hlth Facs Auth Rev Bohemian Tabor
Hills Ser B Rfdg............................... 5.900 11/15/24 1,011,900
8,944 Illinois St Real Estate Lease Ctfs (c)......... 8.800 06/15/18 10,446,950
1,265 Jackson Park Hosp Fndtn Chicago, IL Jackson
Park Hosp...................................... 9.000 03/01/05 1,251,857
3,155 Loves Park, IL First Mtg Rev Hoosier Care Proj
Ser A.......................................... 9.750 08/01/19 3,309,974
2,275 Mill Creek Wtr Reclamation Dist IL Sewage
Rev............................................ 8.000 03/01/10 2,621,073
1,375 Mill Creek Wtr Reclamation Dist IL Wtrwks
Rev............................................ 8.000 03/01/10 1,584,165
2,480 Palatine, IL Tax Increment Rev Rand/Dundee Cent
Proj (Prerefunded @ 01/01/07).................. 7.750 01/01/17 3,011,241
</TABLE>

See Notes to Financial Statements

21
<PAGE> 23
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 765 Peoria, IL Spl Tax Weaverridge Spl Svc Area.... 7.625% 02/01/08 $ 838,991
2,050 Peoria, IL Spl Tax Weaverridge Spl Svc Area.... 8.050 02/01/17 2,278,636
4,100 Robbins, IL Res Recov Rev...................... 8.375 10/15/16 2,460,000
1,455 Round Lake Beach, IL Tax Increment Rev Rfdg.... 7.200 12/01/04 1,599,787
2,500 Round Lake Beach, IL Tax Increment Rev Rfdg.... 7.500 12/01/13 2,738,675
2,855 Saint Charles, IL Indl Dev Rev Tri-City Cent
Proj........................................... 7.500 11/01/13 3,027,785
3,965 Saint Charles, IL Multi-Family Hsg Rev Bonds
Wessel Court Proj.............................. 7.600 04/01/24 4,142,196
500 Sherman, IL Rev First Mtg Villa Hlthcare Ser
A.............................................. 8.250 10/01/14 524,370
500 Sherman, IL Rev First Mtg Villa Hlthcare Ser
A.............................................. 8.500 10/01/24 525,375
--------------
106,743,044
--------------
INDIANA 1.7%
470 Carmel, IN Retirement Rental Hsg Rev Beverly
Enterprises Inc Proj Rfdg...................... 8.750 12/01/08 530,437
1,100 Crawfordsville, IN Redev Comm Dist Tax
Increment Rev.................................. 7.350 02/01/17 1,144,154
1,465 Delaware Cnty, IN Redev Dist Tax Increment
Rev............................................ 6.875 02/01/18 1,504,907
2,874 Indiana Dev Fin Auth Indl Dev Rev Unr-Rohn Inc
Proj (e)....................................... 7.500 03/01/11 3,137,575
1,000 Indiana Hlth Fac Auth Cmnty Hartsfield Vlg Proj
Ser A.......................................... 6.250 08/15/14 1,028,580
2,000 Indiana Hlth Fac Auth Cmnty Hartsfield Vlg Proj
Ser A.......................................... 6.375 08/15/27 2,061,940
1,500 Indiana Hlth Fac Auth Saint Anthony Home....... 7.000 05/15/17 1,564,605
1,000 Indiana Hlth Fac Auth Saint Anthony Home....... 7.250 05/15/24 1,048,710
175 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/10 71,517
135 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/11 51,331
130 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/12 45,588
130 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/13 42,267
125 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/14 37,647
125 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/15 34,905
125 Saint Joseph Cnty, IN Redev Dist Tax Increment
Rev............................................ * 12/30/16 32,334
560 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent.......................... 7.300 01/01/02 562,744
980 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent.......................... 7.500 01/01/07 990,653
1,405 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent.......................... 7.750 01/01/12 1,420,033
2,045 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent.......................... 8.000 01/01/17 2,066,657
3,250 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent Rfdg (Prerefunded @
01/01/00)...................................... 9.500 01/01/07 3,519,555
</TABLE>

See Notes to Financial Statements

22
<PAGE> 24
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA (CONTINUED)
$ 400 Wells Cnty, IN Hosp Auth Rev Caylor Nickel Med
Cent Inc Rfdg.................................. 8.500% 04/15/03 $ 448,432
3,600 Wells Cnty, IN Hosp Auth Rev Caylor Nickel Med
Cent Inc Rfdg.................................. 8.750 04/15/12 4,156,452
--------------
25,501,023
--------------
IOWA 0.7%
2,500 Cedar Rapids, IA Rev First Mtg Cottage Grove... 5.875 07/01/28 2,475,950
2,770 Iowa Fin Auth Multi-Family Rev Hsg Park West
Proj Rfdg...................................... 8.000 10/01/23 2,879,277
2,265 Iowa Fin Auth Retirement Fac Presbyterian Homes
Mill Pond...................................... 6.000 10/01/33 2,187,899
2,000 Palo Alto Cnty, IA Hosp Rev Palo Alto Cnty Hosp
Proj........................................... 6.000 08/01/28 2,034,340
--------------
9,577,466
--------------
KANSAS 0.8%
1,000 Lawrence, KS Coml Dev Rev Holiday Inn Sr Ser
A.............................................. 8.000 07/01/16 1,111,710
2,000 Lenexa, KS Hlthcare Fac Rev Lakeview Vlg Ser
B.............................................. 6.250 05/15/26 2,130,320
3,000 Manhattan, KS Coml Dev Rev Holiday Inn Sr Ser A
Rfdg........................................... 8.000 07/01/16 3,335,130
1,000 Newton, KS Hosp Rev Newton Hlthcare Corp Ser A
(Prerefunded @ 11/15/04)....................... 7.750 11/15/24 1,209,570
3,125 Shawnee Cnty, KS Rev United Methodist Homes Inc
Ser A Rfdg..................................... 6.125 11/15/19 3,269,656
--------------
11,056,386
--------------
KENTUCKY 0.1%
1,195 Kenton Cnty, KY Arpt Brd Arpt Rev Spl Fac Delta
Airls Proj Ser A............................... 8.100 12/01/15 1,262,613
--------------
LOUISIANA 2.3%
4,700 Hodge, LA Util Rev............................. 9.000 03/01/10 4,985,102
1,270 Iberia Parish, LA Hosp Svc Dist No 1 Hosp
Rev............................................ 7.500 05/26/06 1,307,249
2,000 Iberia Parish, LA Hosp Svc Dist No 1 Hosp
Rev............................................ 8.000 05/26/16 2,138,380
4,000 Lake Charles, LA Harbor & Terminal Dist Port
Fac Rev Trunkline Lng Co Rfdg.................. 7.750 08/15/22 4,529,000
200 Louisiana Hsg Fin Agy Rev Multi-Family Hsg
Plantation Ser A............................... 7.200 01/01/06 201,540
4,675 Louisiana Hsg Fin Agy Rev Multi-Family Hsg
Plantation Ser A............................... 7.125 01/01/28 4,719,132
605 Louisiana Pub Fac Auth Rev Indl Dev Beverly
Enterprises Inc Rfdg........................... 8.250 09/01/08 669,511
1,000 Louisiana Pub Facs Auth Rev Progressive
Hlthcare....................................... 6.375 10/01/20 986,560
1,000 Louisiana Pub Facs Auth Rev Progressive
Hlthcare....................................... 6.375 10/01/28 974,520
1,650 Port New Orleans, LA Indl Dev Rev Avondale Inds
Inc Proj Rfdg.................................. 8.250 06/01/04 1,815,990
3,000 Port New Orleans, LA Indl Dev Rev Continental
Grain Co Proj Rfdg............................. 7.500 07/01/13 3,203,070
</TABLE>

See Notes to Financial Statements

23
<PAGE> 25
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LOUISIANA (CONTINUED)
$2,500 Saint James Parish, LA Solid Waste Disp Rev
Kaiser Alum Proj............................... 7.750% 08/01/22 $ 2,748,400
3,500 St Tammany, LA Pub Trust Fin Auth Rev
Christwood Proj Rfdg........................... 5.700 11/15/28 3,362,170
500 West Feliciana Parish, LA Pollutn Ctl Rev Gulf
States Util Co Proj Ser A...................... 7.500 05/01/15 554,330
1,000 West Feliciana Parish, LA Pollutn Ctl Rev Gulf
States Util Co Proj Ser B...................... 9.000 05/01/15 1,086,690
--------------
33,281,644
--------------
MAINE 0.3%
3,200 Maine Fin Auth Solid Waste Disposal Rev Boise
Cascade Corp Proj.............................. 7.900 06/01/15 3,387,616
1,500 Maine Vets Homes ME Rev........................ 7.750 10/01/20 1,703,325
--------------
5,090,941
--------------
MARYLAND 1.7%
2,000 Anne Arundel Cnty, MD Spl Tax Dist Farmington
Vlg Proj Ser A................................. 6.250 06/01/25 1,996,140
1,750 Baltimore Cnty, MD Nursing Fac Eastpoint Rehab
& Nursing Cent Ser A........................... 6.750 04/01/28 1,757,525
2,000 Baltimore Cnty, MD Pollutn Ctl Rev Bethlehem
Steel Corp Proj Ser A Rfdg..................... 7.550 06/01/17 2,185,660
2,500 Baltimore Cnty, MD Pollutn Ctl Rev Bethlehem
Steel Corp Proj Ser B Rfdg..................... 7.500 06/01/15 2,729,975
2,000 Calvert Cnty, MD Econ Dev Rev Asbury-Solomons
Island Fac Proj (Prerefunded @ 01/01/05)....... 8.375 01/01/15 2,484,460
750 Frederick Cnty, MD Retirement Cmnty Rev........ 6.000 01/01/24 768,188
1,500 Frederick Cnty, MD Spl Olbig Urbana Cmnty Dev
Auth........................................... 6.625 07/01/25 1,512,600
2,000 Maryland St Energy Fin Admin Ltd Oblig Rev
Cogeneration AES Warrior Run................... 7.400 09/01/19 2,096,680
3,730 Montgomery Cnty, MD Econ Dev Rev Editorial
Projs In Edl Ser A (e)......................... 6.400 09/01/28 3,703,032
1,270 Montgomery Cnty, MD Econ Dev Rev Editorial
Projs In Edl Ser A (e)......................... 6.250 09/01/08 1,264,907
1,130 Prince Georges Cnty, MD Hosp Rev............... 6.375 01/01/23 734,500
3,000 Prince Georges Cnty, MD Spl Oblig Spl Assmt
Woodview Ser A................................. 8.000 07/01/26 3,246,990
--------------
24,480,657
--------------
MASSACHUSETTS 9.2%
5,530 Massachusetts St Dev Fin Agy New England Cent
For Children................................... 6.000 11/01/19 5,609,190
1,500 Massachusetts St Dev Fin Agy Rev Greater Lynn
Mental Hlth Ser B.............................. 6.375 06/01/18 1,504,845
</TABLE>

See Notes to Financial Statements

24
<PAGE> 26
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$1,470 Massachusetts St Hlth & Edl Fac Auth Rev Indpt
Living Ser A................................... 8.100% 07/01/18 $ 1,639,550
3,000 Massachusetts St Hlth & Edl Fac Auth Rev
Milford-Whitinsville Regl Hosp Ser B
(Prerefunded @ 07/15/02)....................... 7.750 07/15/17 3,447,150
1,000 Massachusetts St Hlth & Edl Fac Auth Rev
Norwood Hosp Ser E............................. 8.000 07/01/12 1,021,350
745 Massachusetts St Hlth & Edl Fac Auth Rev Saint
Anne's Hosp Ser A.............................. 9.250 07/01/05 747,630
2,000 Massachusetts St Hlth & Edl Fac Auth Rev Saint
Anne's Hosp Ser A.............................. 9.375 07/01/14 2,007,260
2,000 Massachusetts St Indl Fin Agy Rev Sr Living
Fac-Forge Hill Project......................... 6.750 10/01/28 1,997,460
2,000 Massachusetts St Indl Fin Agy Assisted Living
Fac Rev........................................ 8.000 09/01/27 2,206,280
2,000 Massachusetts St Indl Fin Agy Assisted Living
Fac Rev........................................ 7.500 12/01/27 2,096,860
1,000 Massachusetts St Indl Fin Agy First Mtg Pilgrim
Inc Proj....................................... 6.500 10/01/15 998,970
2,850 Massachusetts St Indl Fin Agy Rev Hillcrest Edl
Cent Inc Proj.................................. 8.450 07/01/18 3,294,059
225 Massachusetts St Indl Fin Agy Rev Hillcrest Edl
Cent Inc Proj.................................. 7.500 07/01/00 229,932
740 Massachusetts St Indl Fin Agy Rev Hillcrest Edl
Cent Inc Proj.................................. 8.000 07/01/05 815,480
4,000 Massachusetts St Indl Fin Agy Hlthcare Fac Rev
Metro Hlth Fndtn Inc Proj A.................... 6.750 12/01/27 4,282,720
875 Massachusetts St Indl Fin Agy Indl Rev Beverly
Enterprises Inc/Gloucester & Lexington Proj
Rfdg........................................... 8.000 05/01/02 915,871
800 Massachusetts St Indl Fin Agy Indl Rev Beverly
Enterprises Rfdg............................... 8.375 05/01/09 883,216
1,000 Massachusetts St Indl Fin Agy Indl Rev First
Hlthcare Corp Proj Ser A Rfdg.................. 7.625 04/01/13 1,027,230
3,000 Massachusetts St Indl Fin Agy Rev Grtr Lynn
Mental Hlth (e)................................ 6.200 06/01/08 3,028,050
6,000 Massachusetts St Indl Fin Agy Rev Grtr Lynn
Mental Hlth (e)................................ 6.375 06/01/18 6,063,300
3,675 Massachusetts St Indl Fin Agy Rev Grtr Lynn
Mental Hlth.................................... 8.800 06/01/14 4,416,688
1,135 Massachusetts St Indl Fin Agy Rev HMEA Issue... 7.000 09/01/12 1,171,615
2,600 Massachusetts St Indl Fin Agy Rev Montserrat
College Art Issue Ser A........................ 7.000 12/01/27 2,649,894
905 Massachusetts St Indl Fin Agy Rev Seven Hills
Fndtn Issue.................................... 7.000 09/01/12 935,182
595 Massachusetts St Indl Fin Agy Rev Seven Hills
Fndtn Issue.................................... 7.150 09/01/17 613,915
2,020 Massachusetts St Indl Fin Agy Rev Seven Hills
Fndtn Issue.................................... 7.250 09/01/27 2,085,448
2,000 Massachusetts St Indl Fin Agy Rev Sr Living Fac
Forge Hill Proj................................ 6.750 04/01/30 1,951,440
500 Massachusetts St Indl Fin Agy Rev Atlantic Med
Cent Ser B..................................... 10.125 11/01/14 529,020
3,430 Massachusetts St Indl Fin Agy Rev Boston
Architectural Cent Proj........................ 8.500 09/01/19 3,578,176
</TABLE>

See Notes to Financial Statements

25
<PAGE> 27
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 500 Massachusetts St Indl Fin Agy Rev Dimmock Cmnty
Hlth Cent...................................... 8.000% 12/01/06 $ 568,950
1,000 Massachusetts St Indl Fin Agy Rev Dimmock Cmnty
Hlth Cent...................................... 8.375 12/01/13 1,176,680
3,000 Massachusetts St Indl Fin Agy Rev Dimmock Cmnty
Hlth Cent...................................... 8.500 12/01/20 3,545,010
2,555 Massachusetts St Indl Fin Agy Rev East Boston
Neighborhood Proj.............................. 7.500 07/01/16 2,694,324
2,560 Massachusetts St Indl Fin Agy Rev East Boston
Neighborhood Proj.............................. 7.625 07/01/26 2,683,418
7,000 Massachusetts St Indl Fin Agy Rev Emerson
College Issue Ser A (b)........................ 8.900 01/01/18 7,601,720
585 Massachusetts St Indl Fin Agy Rev Evergreen
Cent Inc....................................... 8.000 11/01/06 665,759
4,100 Massachusetts St Indl Fin Agy Rev Evergreen
Cent Inc (e)................................... 9.250 11/01/11 4,536,937
1,230 Massachusetts St Indl Fin Agy Rev Evergreen
Cent Inc....................................... 8.375 11/01/13 1,472,974
2,165 Massachusetts St Indl Fin Agy Rev Evergreen
Cent Inc....................................... 8.500 11/01/20 2,617,009
1,005 Massachusetts St Indl Fin Agy Rev First Mtg
Evanswood Bethzatha Ser A Rfdg................. 7.400 01/15/09 1,046,507
2,000 Massachusetts St Indl Fin Agy Rev First Mtg
Evanswood Bethzatha Ser A Rfdg................. 7.625 01/15/14 2,091,320
2,000 Massachusetts St Indl Fin Agy Rev First Mtg
Evanswood Bethzatha Ser A Rfdg................. 7.875 01/15/20 2,103,020
690 Massachusetts St Indl Fin Agy Rev First Mtg
Loomis House & Vlg Proj........................ 7.250 07/01/07 771,061
1,410 Massachusetts St Indl Fin Agy Rev First Mtg
Loomis House & Vlg Proj........................ 7.400 07/01/12 1,585,996
1,530 Massachusetts St Indl Fin Agy Rev First Mtg
Loomis House & Vlg Proj........................ 7.500 07/01/17 1,729,359
20 Massachusetts St Indl Fin Agy Rev First Mtg
Pioneer Vly.................................... 7.000 10/01/01 19,354
500 Massachusetts St Indl Fin Agy Rev First Mtg
Pioneer Vly Amended............................ 7.000 10/01/20 485,530
1,000 Massachusetts St Indl Fin Agy Rev First Mtg
Reeds Landing Proj............................. 7.750 10/01/00 1,011,470
8,300 Massachusetts St Indl Fin Agy Rev First Mtg
Reeds Landing Proj............................. 8.625 10/01/23 9,420,832
1,700 Massachusetts St Indl Fin Agy Rev First Mtg
Stone Institute & Newton....................... 7.700 01/01/14 1,880,149
1,760 Massachusetts St Indl Fin Agy Rev Glenmeadow
Retirement Cmnty Ser C (Prerefunded @
02/15/06)...................................... 8.250 02/15/08 2,229,322
1,000 Massachusetts St Indl Fin Agy Rev Glenmeadow
Retirement Cmnty Ser C (Prerefunded @
02/15/06)...................................... 8.625 02/15/26 1,286,170
</TABLE>

See Notes to Financial Statements

26
<PAGE> 28
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$3,380 Massachusetts St Indl Fin Agy Rev JRC Assisted
Living......................................... 7.500% 07/01/26 $ 3,573,606
2,145 Massachusetts St Indl Fin Agy Rev NE Cent for
Autism (e)..................................... 9.000 11/01/05 2,393,219
4,910 Massachusetts St Indl Fin Agy Rev NE Cent for
Autism (e)..................................... 9.500 11/01/17 5,523,259
1,100 Massachusetts St Indl Fin Agy Rev NE Cent for
Autism (e)..................................... 7.000 11/01/19 1,186,911
2,000 Massachusetts St Indl Fin Agy Rev Orchard Cove
Issue (Prerefunded @ 05/01/02)................. 9.000 05/01/22 2,377,840
1,115 Massachusetts St Indl Fin Agy Rev Vinten Corp
Issue.......................................... 7.100 11/15/18 1,275,961
930 Massachusetts St Indl Fin Agy Rev Waarc Inc
Proj........................................... 7.300 09/01/10 997,239
915 Massachusetts St Indl Fin Agy Rev Waarc Inc
Proj........................................... 7.600 09/01/17 980,377
1,820 Massachusetts St Indl Fin Agy Rev Waarc Inc
Proj........................................... 7.750 09/01/25 1,954,425
--------------
135,233,489
--------------
MICHIGAN 2.1%
1,000 Detroit, MI Local Dev Fin Auth Tax Increment Sr
Ser B (e)...................................... 6.700 05/01/21 1,040,930
3,500 Detroit, MI Local Dev Fin Auth Tax Increment
Ser C.......................................... 6.850 05/01/21 3,653,090
430 Detroit, MI Local Dev Fin Auth Tax Increment
Ser A (Prerefunded @ 05/01/03)................. 9.500 05/01/21 527,460
1,190 Dickinson Cnty, MI Mem Hosp Sys Hosp Rev....... 7.625 11/01/05 1,324,791
1,000 Dickinson Cnty, MI Mem Hosp Sys Hosp Rev....... 8.000 11/01/14 1,138,480
2,390 Meridian, MI Econ Dev Corp First Mtg Burcham
Hills Ser A Rfdg............................... 7.500 07/01/13 2,615,568
3,430 Meridian, MI Econ Dev Corp First Mtg Burcham
Hills Ser A Rfdg............................... 7.750 07/01/19 3,794,095
500 Michigan St Hosp Fin Auth Rev Hosp Genesys Hlth
Sys Ser A Rfdg (Prerefunded @ 10/01/05)........ 7.500 10/01/07 610,515
1,500 Michigan St Hosp Fin Auth Rev Hosp Genesys Hlth
Sys Ser A Rfdg (Prerefunded @ 10/01/05)........ 8.100 10/01/13 1,884,855
5,343 Michigan St Hosp Fin Auth Rev Saratoga Cmnty
Hosp Rfdg (Prerefunded 06/01/02)............... 8.750 06/01/10 6,184,629
922 Michigan St Strategic Fd Ltd Oblig Rev Great
Lakes Pulp & Fiber Proj (f).................... 8.000 12/01/27 622,242
2,000 Michigan St Strategic Fd Res Recovery Ltd Oblig
Rev Central Wayne Energy Rec Ser A............. 7.000 07/01/27 2,016,560
4,000 Michigan St Strategic Fd Solid Waste Disp Rev
Genesee Pwr Station Proj....................... 7.500 01/01/21 4,342,800
500 Oakland Cnty, MI Econ Dev Corp Ltd Oblig Rev
Pontiac Osteopathic Hosp Proj (Prerefunded @
01/01/00)...................................... 9.625 01/01/20 542,220
--------------
30,298,235
--------------
MINNESOTA 2.7%
1,020 Austin, MN Multi-Family Rev Hsg Cedars of
Austin Proj Rfdg............................... 7.500 04/01/17 1,079,854
2,000 Austin, MN Multi-Family Rev Hsg Cedars of
Austin Proj Rfdg............................... 7.500 04/01/18 2,117,360
</TABLE>

See Notes to Financial Statements

27
<PAGE> 29
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MINNESOTA (CONTINUED)
$3,400 Bloomington, MN Hsg & Redev Auth Sr Summerhouse
Bloomington Proj............................... 6.125% 05/01/35 $ 3,441,752
1,955 Brooklyn Cent MN Multi-Family Hsg Rev Four
Courts Apts Proj Ser A Rfdg.................... 7.400 12/01/15 2,060,726
1,220 Brooklyn Cent MN Multi-Family Hsg Rev Four
Courts Apts Proj Ser A Rfdg.................... 7.500 06/01/25 1,285,721
1,460 Cambridge, MN Hsg & Hlthcare Fac Rev Grandview
West Proj Ser A................................ 6.000 10/01/28 1,460,934
1,495 Cambridge, MN Hsg & Hlthcare Fac Rev Grandview
West Proj Ser B (a)............................ 6.000 10/01/33 1,475,490
750 Chisago City, MN Hlth Fac Rev Part Pleasant
Heights Proj Ser A Rfdg........................ 7.300 07/01/25 821,963
3,000 Columbia Heights, MN Multi-Family Crest View
Corp Proj...................................... 6.000 03/01/33 3,055,080
840 Little Canada, MN Fac Rev Hsg Alt Dev Co Proj
Ser A.......................................... 6.100 12/01/17 856,296
1,450 Little Canada, MN Fac Rev Hsg Alt Dev Co Proj
Ser A.......................................... 6.250 12/01/27 1,477,956
1,200 Maplewood, MN Hlthcare Fac Rev VOA Care Cent
Proj........................................... 7.450 10/01/16 1,314,528
682 Minneapolis, MN Cmnty Dev Agy Coml Dev Rev Std
Mill Hotel Proj (d)............................ 8.000 04/01/10 680,997
1,950 Minneapolis, MN Hlthcare Fac Rev Ebenezer
Society Proj Ser A............................. 7.200 07/01/23 2,058,283
1,000 Minneapolis, MN Hlthcare Fac Rev Saint Olaf
Residence Inc Proj............................. 7.100 10/01/23 1,057,390
350 Minneapolis, MN Multi-Family Rev Hsg Belmont
Apts Proj...................................... 7.250 11/01/16 368,424
1,320 Minneapolis, MN Multi-Family Rev Hsg Belmont
Apts Proj...................................... 7.625 11/01/27 1,390,726
3,040 New Brighton, MN Rental Hsg Rev Polynesian Vlg
Apts Proj Ser A Rfdg........................... 7.500 10/01/17 3,234,894
760 New Hope, MN Multi-Family Rev Hsg Broadway
Lanel Proj..................................... 7.750 09/01/07 799,300
2,320 New Hope, MN Multi-Family Rev Hsg Broadway
Lanel Proj Rfdg................................ 8.000 09/01/18 2,430,084
835 North Saint Paul, MN Multi-Family Rev Hsg
Cottages North Saint Paul Rfdg................. 9.000 02/01/09 899,913
2,220 North Saint Paul, MN Multi-Family Rev Hsg
Cottages North Saint Paul Rfdg................. 9.250 02/01/22 2,390,585
500 Shoreview, MN Sr Hsg Rev Shoreview Sr Residence
Proj........................................... 7.250 02/01/26 515,100
2,000 Spring Lake Park, MN Multi-Family Hsg Cottages
Spring Lake Rfdg............................... 8.375 01/01/22 2,070,280
1,500 Winona, MN Hsg Rev Saint Anne Hospice Inc...... 6.750 07/01/27 1,547,160
--------------
39,890,796
--------------
</TABLE>

See Notes to Financial Statements

28
<PAGE> 30
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSISSIPPI 0.8%
$5,500 Claiborne Cnty, MS Pollutn Ctl Rev Middle South
Energy Inc Ser B............................... 8.250% 06/01/14 $ 5,755,970
1,000 Lowndes Cnty, MS Hosp Rev Golden Triangle Med
Cent Rfdg...................................... 8.500 02/01/10 1,063,480
2,300 Mississippi Dev Bank Spl Oblig Diamond Lakes
Utils Ser A Rfdg............................... 6.250 12/01/17 2,372,933
2,900 Ridgeland, MS Urban Renewal Rev the Orchard Ltd
Proj Ser A Rfdg................................ 7.750 12/01/15 3,168,714
--------------
12,361,097
--------------
MISSOURI 1.6%
1,500 Chesterfield, MO Indl Dev Auth Rev Saint
Andrews Episcopal-Presbyterian Ser A
(Prerefunded @ 12/01/00)....................... 8.500 12/01/19 1,696,920
1,000 Ferguson, MO Tax Increment Rev Crossings At
Halls Ferry Proj............................... 7.250 04/01/07 1,020,380
2,000 Ferguson, MO Tax Increment Rev Crossings At
Halls Ferry Proj............................... 7.625 04/01/17 2,057,260
1,000 Ferguson, MO Tax Increment Rev Crossings At
Halls Ferry Proj............................... 7.625 04/01/18 1,028,630
3,610 Good Shepard Nursing Home Dist MO Nursing Home
Fac Rev Rfdg................................... 5.900 08/15/23 3,666,063
2,705 Jefferson Cnty, MO Indl Dev Auth Indl Rev
Cedars Hlthcare Cent Proj Ser A Rfdg........... 8.250 12/01/15 3,038,283
3,000 Kansas City, MO Multi-Family Hsg Rev Vlg Green
Apts Proj...................................... 6.250 04/01/30 3,055,800
1,490 Madison Cnty, MO Hosp Rev Ser A (Prerefunded @
10/01/06)...................................... 7.900 10/01/26 1,873,988
1,075 Missouri St Hlth & Edl Fac Bethesda Hlth Group
Inc Proj A Rfdg................................ 7.500 08/15/12 1,207,150
3,000 Perry Cnty, MO Nursing Home Rev Rfdg........... 5.900 03/01/28 2,960,580
1,695 Saint Louis, MO Tax Increment Rev Scullin Redev
Area Ser A..................................... 10.000 08/01/10 2,159,718
--------------
23,764,772
--------------
MONTANA 0.3%
3,825 Montana St Brd Invt Res Recovery Rev
Yellowstone Energy L P Proj.................... 7.000 12/31/19 3,688,218
--------------
NEVADA 0.9%
2,000 Boulder City, NV Hosp Rev Boulder City Hosp Inc
Proj Rfdg...................................... 5.850 01/01/22 1,999,120
3,075 Clark Cnty, NV Assisted Living Homestead
Boulder City Proj.............................. 6.500 12/01/27 3,210,115
1,345 Henderson, NV Local Impt Dist No T-4 Ser B..... 7.300 11/01/12 1,393,138
1,495 Henderson, NV Local Impt Dist No T-10.......... 7.500 08/1/15 1,543,064
</TABLE>

See Notes to Financial Statements

29
<PAGE> 31
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEVADA (CONTINUED)
$ 985 Las Vegas, NV Spl Impt Dist No 505 Elkhorn
Springs........................................ 8.000% 09/15/13 $ 1,024,075
1,470 Nevada St Dept Commerce Hlth Fac Rev Washoe
Convalescent Cent Proj Rfdg.................... 8.125 06/01/03 1,545,823
3,000 Washoe Cnty, NV Impt Bonds Spl Assmt Dist No
23............................................. 6.500 11/01/17 3,084,270
--------------
13,799,605
--------------
NEW HAMPSHIRE 2.6%
435 New Hampshire Higher Edl & Hlth Fac Auth Rev
Colby-Sawyer College Issue..................... 7.200 06/01/12 476,229
2,565 New Hampshire Higher Edl & Hlth Fac Auth Rev
Colby-Sawyer College Issue..................... 7.500 06/01/26 2,839,147
5,000 New Hampshire Higher Edl & Hlth Fac Auth Rev
Daniel Webster College Issue Rfdg.............. 7.625 07/01/16 5,503,650
1,200 New Hampshire Higher Edl & Hlth Fac Auth Rev
First Mtg Odd Fellows Home Rfdg................ 8.000 06/01/04 1,295,652
2,000 New Hampshire Higher Edl & Hlth Fac Auth Rev
First Mtg Odd Fellows Home Rfdg................ 9.000 06/01/14 2,437,880
1,000 New Hampshire Higher Edl & Hlth Fac Auth Rev
Havenwood-Heritage Heights..................... 7.350 01/01/18 1,097,380
4,825 New Hampshire Higher Edl & Hlth Fac Auth Rev
Havenwood-Heritage Heights..................... 7.450 01/01/25 5,322,506
2,330 New Hampshire Higher Edl & Hlth Fac Auth Rev
Hlthcare Visiting Nurse (e).................... 7.250 09/01/23 2,477,792
1,390 New Hampshire Higher Edl & Hlth Fac Auth Rev
Monadock Cmnty Hosp Issue (Prerefunded @
10/01/00)...................................... 9.125 10/01/20 1,551,476
2,000 New Hampshire Higher Edl & Hlth Fac Auth Rev
New London Hosp Assn Proj...................... 7.500 06/01/05 2,268,740
3,405 New Hampshire Higher Edl & Hlth Fac Auth Rev
Vly Regl Hosp (e).............................. 7.350 04/01/23 3,435,100
1,000 New Hampshire Higher Edl & Hlth Facs Auth Rev
Littleton Hosp Assn............................ 6.000 05/01/28 1,018,570
3,960 New Hampshire St Business Fin Auth Elec Fac Rev
Plymouth Cogeneration.......................... 7.750 06/01/14 4,273,038
1,500 New Hampshire St Business Fin Auth Swr & Solid
Waste Disp Rev Crown Paper Co Proj............. 7.875 07/01/26 1,500,030
1,990 New Hampshire St Hsg Fin Auth Single Family
Rev............................................ 5.900 07/1/28 2,106,157
--------------
37,603,347
--------------
NEW JERSEY 4.3%
4,990 Camden Cnty, NJ Impt Auth Lease Rev Dockside
Refrigerated................................... 8.400 04/01/24 5,617,742
4,500 Camden Cnty, NJ Impt Auth Lease Rev Kaighn PT
Marine Term A.................................. 8.000 06/01/27 5,078,925
1,000 New Jersey Econ Dev Auth Econ Dev Rev.......... 6.375 04/01/18 1,001,090
</TABLE>

See Notes to Financial Statements

30
<PAGE> 32
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY (CONTINUED)
$4,000 New Jersey Econ Dev Auth Econ Dev Rev.......... 6.375% 04/01/31 $ 3,953,640
500 New Jersey Econ Dev Auth Econ Dev Rev Green
Acres Manor Inc Ser A Rfdg..................... 8.000 01/01/09 530,515
1,000 New Jersey Econ Dev Auth Econ Dev Rev Green
Acres Manor Inc Ser A Rfdg..................... 8.250 01/01/17 1,065,870
500 New Jersey Econ Dev Auth Econ Dev Rev ZirbSer
Greenbriar Inc Ser A Rfdg...................... 7.375 07/15/03 533,125
915 New Jersey Econ Dev Auth Econ Dev Rev ZirbSer
Greenbriar Inc Ser A Rfdg...................... 7.750 07/15/08 982,033
250 New Jersey Econ Dev Auth First Mtg Cranes Mill
Ser A.......................................... 7.000 02/01/10 271,265
1,500 New Jersey Econ Dev Auth First Mtg Cranes Mill
Ser A.......................................... 7.375 02/01/17 1,669,080
3,500 New Jersey Econ Dev Auth First Mtg Cranes Mill
Ser A.......................................... 7.500 02/01/27 3,898,370
750 New Jersey Econ Dev Auth First Mtg Delaire
Nursing Ser A Rfdg (Prerefunded @ 11/01/99).... 8.750 11/01/10 816,195
500 New Jersey Econ Dev Auth First Mtg Gross Rev
Burnt Tavern Convalescent Ser A Rfdg........... 9.000 11/15/13 551,850
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 2,667,847
840 New Jersey Econ Dev Auth First Mtg Gross Rev
Stone Arch Nursing Home Proj Rfdg.............. 8.750 12/01/10 929,485
1,000 New Jersey Econ Dev Auth First Mtg Gross Rev
The Evergreens (Prerefunded @ 10/01/02)........ 9.250 10/01/22 1,205,640
1,000 New Jersey Econ Dev Auth Holt Hauling & Warehsg
Rev Ser G Rfdg................................. 8.400 12/15/15 1,092,360
650 New Jersey Econ Dev Auth Rev................... 6.000 10/01/17 684,398
700 New Jersey Econ Dev Auth Rev................... 6.000 10/01/22 734,524
2,000 New Jersey Econ Dev Auth Rev Kullman Assoc Proj
Ser A.......................................... 6.125 06/01/18 2,012,140
500 New Jersey Econ Dev Auth Rev First Mtg
Fellowship Vlg Proj Ser A (Prerefunded @
01/01/05)...................................... 8.500 01/01/10 626,920
1,000 New Jersey Econ Dev Auth Rev First Mtg
Fellowship Vlg Proj Ser A (Prerefunded @
01/01/05)...................................... 9.250 01/01/25 1,293,300
975 New Jersey Econ Dev Auth Rev First Mtg
Millhouse Proj Ser A........................... 8.250 04/01/10 1,113,616
2,060 New Jersey Econ Dev Auth Rev First Mtg
Millhouse Proj Ser A........................... 8.500 04/01/16 2,367,991
1,860 New Jersey Econ Dev Auth Rev First Mtg
Winchester Gardens Ser A....................... 7.500 11/01/05 1,976,008
1,000 New Jersey Econ Dev Auth Rev First Mtg
Winchester Gardens Ser A....................... 8.500 11/01/16 1,138,060
</TABLE>

See Notes to Financial Statements

31
<PAGE> 33
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY (CONTINUED)
$1,500 New Jersey Econ Dev Auth Rev First Mtg
Winchester Gardens Ser A....................... 8.625% 11/01/25 $ 1,707,120
855 New Jersey Econ Dev Auth Rev Sr Mtg Arbor Glen
Proj Ser A..................................... 8.000 05/15/02 905,069
750 New Jersey Econ Dev Auth Rev Sr Mtg Arbor Glen
Proj Ser A..................................... 8.000 05/15/04 829,178
2,000 New Jersey Econ Dev Auth Rev Sr Mtg Arbor Glen
Proj Ser A..................................... 8.000 05/15/12 2,317,140
2,560 New Jersey Econ Dev Auth Rev Sr Mtg Arbor Glen
Proj Ser A..................................... 8.750 05/15/26 3,082,061
2,500 New Jersey Hlthcare Fac Fin Auth Rev Care
Institute Inc Cherry Hill Proj................. 7.750 07/01/10 2,713,025
2,400 New Jersey Hlthcare Fac Fin Auth Rev Raritan
Bay Med Cent Issue Rfdg........................ 7.250 07/01/14 2,555,496
4,000 New Jersey St Edl Fac Auth Rev Felician College
of Lodi Ser D.................................. 7.375 11/01/22 4,350,920
950 New Jersey St Edl Fac Auth Rev Caldwell College
Ser A.......................................... 7.250 07/01/25 1,035,034
--------------
63,307,032
--------------
NEW MEXICO 1.2%
665 Albuquerque, NM Nursing Home Rev Albuquerque
Hlthcare Rfdg.................................. 9.750 12/01/14 699,327
4,505 Albuquerque, NM Retirement Fac Rev La Vida
Liena Proj Ser A Rfdg.......................... 8.850 02/01/23 5,234,405
3,000 Bernalillo Cnty, NM Mult-Family Rev Hsg Topke
Commons/Arbors Proj Ser D...................... 7.700 04/01/27 3,127,590
3,000 Bernalillo Cnty, NM Multi-Family Hsg Brentwood
Gardens Apt B 1................................ 6.600 10/15/28 3,026,190
1,590 Bernalillo Cnty, NM Multi-Family Rev Hsg Sr
Solar Villas Apts Ser F........................ 7.250 10/15/22 1,641,071
2,920 RHA Hsg Dev Corp NM Multi-Family Rev Mtg
Woodleaf Apts Proj A Rfdg...................... 7.125 12/15/27 2,975,714
685 Santa Fe, NM Indl Rev Casa Real Nursing Home
Rfdg........................................... 9.750 01/01/13 740,560
435 Truth or Consequences, NM Nursing Home Rev
Sierra Hlthcare Rfdg & Impt.................... 9.750 12/01/14 449,433
--------------
17,894,290
--------------
NEW YORK 3.8%
2,000 Castle Rest Residential Hlthcare Fac NY Rev
Hlthcare Fac Ser B............................. 8.000 08/01/10 2,099,200
1,210 Clifton Springs, NY Hosp & Clinic Ser A Rfdg &
Impt........................................... 7.650 01/01/12 1,370,119
1,500 Erie Cnty, NY Indl Dev Agy Life Care Cmnty Rev
Episcopal Church Home Ser A.................... 6.000 02/01/28 1,534,170
</TABLE>

See Notes to Financial Statements

32
<PAGE> 34
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$4,800 Islip, NY Cmnty Dev Agy Cmnty Dev Rev NY
Institute of Technology Rfdg................... 7.500% 03/01/26 $ 5,329,776
1,500 Monroe Cnty, NY Indl Dev Agy Rev Indl Dev
Empire Sports Proj Ser A....................... 6.250 03/01/28 1,502,220
3,500 New York City Indl Dev Agy Civic Fac Rev Cmnty
Res Developmentally Disabled................... 7.500 08/01/26 3,778,985
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 4,557,434
2,000 New York City Indl Dev Agy Field Hotel Assoc LP
JFK Rfdg....................................... 6.000 11/01/28 2,003,940
1,750 New York City Indl Dev Agy Laguardia Assoc LP
Proj Rfdg...................................... 6.000 11/01/28 1,753,448
2,500 New York City Indl Dev Agy Rev Solid Waste
Disposal Visy Paper Proj....................... 7.800 01/01/16 2,790,125
6,650 New York City Transitional Future Tax Secured
Ser A.......................................... 5.000 08/15/27 6,574,522
2,000 New York St Energy Resh & Dev Auth Elec Fac Rev
Long Island Ser A.............................. 7.150 12/01/20 2,182,080
5,000 New York St Thruway Auth Svc Contract Rev (MBIA
Insd).......................................... 5.000 04/01/18 5,019,000
2,750 Newark-Wayne Cmnty Hosp Inc NY Hosp Rev Ser
A.............................................. 7.600 09/01/15 2,982,678
2,000 North Syracuse, NY Hsg Auth Rev Janus Park
Proj........................................... 8.000 06/01/14 2,135,760
675 Oswego Cnty, NY Indl Dev Agy Civic Fac Rev..... 7.000 02/01/12 686,414
1,500 Peekskill, NY Indl Dev Agy Sr Drum Hill Sr
Living Proj.................................... 6.375 10/01/28 1,506,015
1,480 Rensselaer Cnty, NY Indl Dev Agy Indl Dev Rev
(e)............................................ 7.000 02/01/11 1,489,502
1,275 Rensselaer Cnty, NY Indl Dev East Greenbush
Cent Proj Rfdg (e)............................. 7.000 02/01/11 1,280,087
2,300 Rockland Cnty, NY Indl Dev Agy Civic Fac Rev
Dominican College Proj (e)..................... 6.250 05/01/28 2,312,144
3,100 Suffolk Cnty, NY Indl Dev Agy Indl Dev Rev
Spellman High Voltage Fac Ser A................ 6.375 12/01/17 3,142,563
400 Syracuse, NY Hsg Auth Rev Sub Proj Loretto Rest
Ser B.......................................... 7.500 08/01/10 415,108
--------------
56,445,290
--------------
NORTH CAROLINA 0.3%
425 North Carolina Med Care Comm Hlthcare Fac
Rev............................................ 6.000 11/01/19 433,976
2,075 North Carolina Med Care Comm Hlthcare Fac
Rev............................................ 6.000 11/01/27 2,103,199
2,055 North Carolina Med Care Comm Hlthcare Facs
Rev............................................ 6.125 01/11/28 2,079,599
--------------
4,616,774
--------------
NORTH DAKOTA 0.5%
2,610 Devils Lake, ND Hlthcare Facs Rev & Impt Lk Reg
Lutheran Rfdg.................................. 6.100 10/01/23 2,618,352
3,000 Grand Forks, ND Sr Hsg Rev 4000 Vly Square
Proj........................................... 6.250 12/01/34 3,045,330
2,000 Grand Forks, ND Sr Hsg Rev Spl Term 4000 Vly
Square Proj.................................... 6.375 12/01/34 2,081,200
--------------
7,744,882
--------------
</TABLE>

See Notes to Financial Statements

33
<PAGE> 35
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO 3.2%
$1,500 Athens Cnty, OH Hosp Fac Rev O'Bleness Mem Hosp
Proj........................................... 7.100% 11/15/23 $ 1,595,850
1,000 Cuyahoga Cnty, OH Hlthcare Fac Rev Jennings
Hall........................................... 7.200 11/15/14 1,089,020
1,500 Cuyahoga Cnty, OH Hlthcare Fac Rev Jennings
Hall........................................... 7.300 11/15/23 1,642,005
2,500 Cuyahoga Cnty, OH Hlthcare Fac Rev Judson
Retirement Cmnty Ser A Rfdg.................... 7.250 11/15/13 2,746,650
3,000 Cuyahoga Cnty, OH Hlthcare Fac Rev Judson
Retirement Cmnty Ser A Rfdg.................... 7.250 11/15/18 3,295,980
1,195 Cuyahoga Cnty, OH Multi-Family Rev Hsg Mtg
Colonnade Apts Ser A Rfdg...................... 7.500 12/01/17 1,224,445
2,305 Cuyahoga Cnty, OH Multi-Family Rev Hsg Mtg
Colonnade Apts Ser A Rfdg...................... 7.750 12/01/28 2,361,058
2,500 Cuyahoga Cnty, OH Multi-Family Rev Hsg Park
Lane Apts Proj Ser A........................... 8.250 07/01/28 2,575,000
370 Fairfield, OH Econ Dev Rev Beverly Enterprises
Inc Proj Rfdg.................................. 8.500 01/01/03 398,101
2,215 Hamilton Cnty, OH Multi-Family Rev Hsg Garden
Hill Washington Park Apts...................... 7.750 10/01/21 2,395,235
1,530 Harrison, OH Harrison Ave Kmart Proj Ser A..... 8.125 12/01/02 1,644,872
1,000 Madison Cnty, OH Hosp Impt Rev Madison Cnty
Hosp Proj Rfdg................................. 6.250 08/01/18 1,009,970
2,465 Madison Cnty, OH Hosp Impt Rev Madison Cnty
Hosp Proj Rfdg................................. 6.400 08/01/28 2,489,379
2,000 Montgomery Cnty, OH Hlthcare Fac Rev........... 6.250 02/01/22 2,033,560
2,330 Mount Vernon, OH Hosp Rev Knox Cmnty Hosp
Rfdg........................................... 7.875 06/01/12 2,381,446
2,500 North Canton, OH Hlthcare Facs Rev The
Waterford at St Luke Proj Rfdg................. 5.800 11/15/28 2,470,175
1,000 North Canton, OH Hlthcare Facs Rev The
Waterford at St Luke Proj...................... 8.625 11/15/21 1,190,320
3,000 Ohio St Solid Waste Rev CSC Ltd Proj........... 8.500 08/01/22 3,154,110
2,000 Ohio St Solid Waste Rev Rep Engineered Steels
Proj........................................... 8.250 10/01/14 2,065,860
4,000 Ohio St Solid Waste Rev Rep Engineered Steels
Proj........................................... 9.000 06/01/21 4,318,560
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac Rev Coll
Cleveland Elec Ser A Rfdg...................... 8.000 10/01/23 2,288,060
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac Rev Coll
Toledo Edison Ser A Rfdg....................... 8.000 10/01/23 2,288,060
--------------
46,657,716
--------------
</TABLE>

See Notes to Financial Statements

34
<PAGE> 36
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OKLAHOMA 0.3%
$ 500 Leflore Cnty, OK Hosp Auth Impt Rev
(Prerefunded @ 05/01/99)....................... 9.400% 05/01/06 $ 522,630
2,830 Oklahoma Cnty, OK Fin Auth Epworth Villa Proj
Ser A Rfdg..................................... 7.000 04/01/25 2,970,821
500 Woodward, OK Muni Auth Hosp Rev................ 8.250 11/01/09 567,460
500 Woodward, OK Muni Auth Hosp Rev (Prerefunded @
11/01/00)...................................... 9.250 11/01/14 561,295
--------------
4,622,206
--------------
OREGON 1.1%
3,000 Clackamas Cnty, OR Hosp Fac Auth Rev Odd
Fellows Home Ser A Rfdg........................ 5.875 09/15/21 3,022,800
1,000 Clatsop Care Cent Hlth Dist OR Rev Sr Hsg...... 6.000 08/01/14 1,009,180
4,000 Clatsop Care Cent Hlth Dist OR Rev Sr Hsg...... 6.875 08/01/28 4,034,920
1,745 Douglas Cnty, OR Hosp Fac Auth Rev Elderly Hsg
Forest Glen Ser A.............................. 7.500 09/01/27 1,834,117
4,000 Oregon St Hlth Hsg Edl & Cultural Facs Auth.... 7.250 06/01/28 4,071,760
1,500 Salem, OR Hosp Fac Auth Rev Cap Manor Inc...... 7.500 12/01/24 1,640,205
--------------
15,612,982
--------------
PENNSYLVANIA 11.2%
2,000 Allegheny Cnty, PA Hosp Dev Hlthcare Facs Villa
St Joseph...................................... 6.000 08/15/28 1,982,800
1,945 Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Fac
Allegheny Vly Sch.............................. 7.500 02/01/10 2,136,758
3,120 Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Fac
Allegheny Vly Sch.............................. 7.875 02/01/20 3,487,474
7,000 Beaver Cnty, PA Indl Dev Auth Pollutn Ctl Rev
Collateral Toledo Edison Co Proj Rfdg (b)...... 7.625 05/01/20 7,908,040
4,000 Beaver Cnty, PA Indl Dev Auth Pollutn Ctl Rev
Collateral Toledo Edison Co Proj Ser A Rfdg.... 7.750 05/01/20 4,575,600
1,100 Beaver Cnty, PA Indl Dev Auth Pollutn Ctl Rev
Collateral Toledo Edison Co Proj Ser A Rfdg.... 7.750 09/01/24 1,145,364
2,000 Berks Cnty, PA Muni Auth Rev................... 5.700 05/15/18 1,976,800
1,795 Berks Cnty, PA Muni Auth Rev Phoebe Berks Vlg
Inc Proj Rfdg.................................. 7.500 05/15/13 2,153,049
1,860 Berks Cnty, PA Muni Auth Rev Phoebe Berks Vlg
Inc Proj Rfdg.................................. 7.700 05/15/22 2,255,231
2,500 Berks Cnty, PA Muni Auth Rev Phoebe Berks Vlg
Inc Proj Rfdg.................................. 8.250 05/15/22 2,875,250
1,000 Berks Cnty, PA Muni Auth Rev Phoebe Devitt
Homes Proj A1 Rfdg............................. 5.750 05/15/22 989,810
1,000 Chartiers Vly, PA Indl & Coml Dev Auth First
Mtg Rev........................................ 7.250 12/01/11 1,032,470
2,000 Chartiers Vly, PA Indl & Coml Dev Auth First
Mtg Rev........................................ 7.400 12/01/15 2,182,260
</TABLE>

See Notes to Financial Statements

35
<PAGE> 37
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$4,480 Clarion Cnty, PA Hosp Auth Hosp Rev Clarion
Hosp Proj (Prerefunded @ 07/01/99)............. 8.100% 07/01/12 $ 4,695,443
1,000 Clarion Cnty, PA Hosp Auth Hosp Rev Clarion
Hosp Proj (Prerefunded @ 07/01/01)............. 8.500 07/01/21 1,133,480
855 Columbia Cnty, PA Indl Dev Auth First Mtg Rev
First St Assn Proj Rfdg........................ 9.000 05/01/14 890,243
5,000 Dauphin Cnty, PA Genl Auth Rev Office & Pkg
Riverfront Office.............................. 6.000 01/01/25 5,045,000
4,000 Dauphin Cnty, PA Genl Auth Rev Office & Pkg
Forum Place Ser A.............................. 6.000 01/15/25 4,049,360
3,000 Dauphin Cnty, PA Genl Auth Rev Hotel & Conf
Cent Hyatt Regency............................. 6.200 01/01/29 2,994,120
870 Delaware Cnty, PA Auth Rev First Mtg Riddle Vlg
Proj (Prerefunded @ 06/01/02).................. 8.750 06/01/10 1,022,668
2,800 Delaware Cnty, PA Auth Rev First Mtg Riddle Vlg
Proj (Prerefunded @ 06/01/02).................. 9.250 06/01/22 3,336,060
2,500 Delaware Cnty, PA Auth Rev First Mtg Riddle Vlg
Proj Rfdg...................................... 7.000 06/01/26 2,637,700
2,100 Delaware Cnty, PA Auth Rev White Horse Vlg Ser
A Rfdg......................................... 7.500 07/01/18 2,312,331
3,500 Grove City, PA Area Hosp Auth Hlth Facs Rev.... 6.625 08/15/29 3,513,685
2,000 Harrisburg, PA Auth Office & Pkg Rev Ser A..... 6.000 05/01/19 2,024,980
1,250 Lebanon Cnty, PA Hlth Fac Auth Hlth Cent Rev
United Church of Christ Homes Rfdg............. 7.250 10/01/19 1,265,112
250 Lehigh Cnty, PA Genl Purp Auth Rev First Mtg
Bible Fellowship Proj.......................... 7.150 12/15/08 266,110
2,315 Lehigh Cnty, PA Genl Purp Auth Rev First Mtg
Bible Fellowship Proj.......................... 8.000 12/15/23 2,455,706
4,000 Lehigh Cnty, PA Genl Purp Auth Rev Kidspeace
Oblig Group.................................... 6.000 11/01/23 4,008,200
1,790 Lehigh Cnty, PA Indl Dev Auth Lifepath Inc
Proj........................................... 6.100 06/01/18 1,751,103
3,000 Lehigh Cnty, PA Indl Dev Auth Hlth Fac Rev
Lifepath Inc Proj.............................. 6.300 06/01/28 2,923,590
4,710 Lehigh Cnty, PA Indl Dev Auth Rev Rfdg......... 8.000 08/01/12 5,060,471
3,000 Luzerne Cnty, PA Indl Dev Auth Exmpt Fac Rev PA
Gas & Wtr Co Proj Ser A Rfdg................... 7.200 10/01/17 3,300,960
1,870 Luzerne Cnty, PA Indl Dev Auth First Mtg Gross
Rev Rfdg....................................... 7.875 12/01/13 2,057,654
500 Montgomery Cnty, PA Higher Edl & Hlth Auth Rev
Retirement Cmnty GDL Farms A (Prerefunded @
01/01/00)...................................... 9.500 01/01/20 541,585
2,000 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Ser A Rfdg....................... 6.000 12/01/10 2,063,520
3,695 Montgomery Cnty, PA Indl Dev Auth Rev Assisted
Living Ser A................................... 8.250 05/01/23 4,300,684
</TABLE>

See Notes to Financial Statements

36
<PAGE> 38
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 684 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Proj Ser A.................. 9.250% 12/01/00 $ 726,983
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 2,310,039
2,500 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Proj Ser A Rfdg (Prerefunded
@ 12/01/00).................................... 10.250 12/01/20 2,863,600
500 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Rfdg........................ 7.000 12/01/10 539,030
1,500 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Rfdg........................ 7.250 12/01/15 1,629,360
4,000 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Rfdg........................ 7.400 12/01/20 4,347,680
1,500 Montgomery Cnty, PA Indl Dev Auth Rev First Mtg
The Meadowood Corp Proj Ser A Rfdg............. 6.250 12/01/17 1,581,045
3,595 Montgomery Cnty, PA Indl Dev Auth Rev Hlthcare
Adv Geriatric Ser A............................ 8.375 07/01/23 3,896,153
770 Montgomery Cnty, PA Indl Dev Auth Rev Pennsburg
Nursing Rehab Cent (Prerefunded @ 03/31/04).... 7.625 07/01/18 900,515
2,660 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy............................. 7.750 09/01/14 2,945,844
1,955 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy............................. 7.750 09/01/24 2,182,073
2,200 Montgomery Cnty, PA Indl Rev GDL Farms Corp
Proj Rfdg...................................... 6.500 01/01/20 2,256,848
1,665 Philadelphia, PA Auth for Indl Dev Hlthcare Fac
Rev............................................ 5.850 05/15/13 1,700,514
400 Philadelphia, PA Auth for Indl Dev Hlthcare Fac
Rev............................................ 5.750 05/15/18 399,800
1,650 Philadelphia, PA Auth for Indl Dev Hlthcare Fac
Rev............................................ 5.875 05/15/28 1,655,412
4,000 Philadelphia, PA Auth for Indl Dev Rev Coml RMK
Rfdg........................................... 7.750 12/01/17 4,507,160
2,000 Philadelphia, PA Auth for Indl Dev Rev
Long-Term Care Maplewood....................... 8.000 01/01/14 2,226,400
5,835 Philadelphia, PA Auth for Indl Dev Rev
Long-Term Care Maplewood....................... 8.000 01/01/24 6,480,818
1,180 Philadelphia, PA Hosp & Higher Edl Facs Auth
Hosp Rev....................................... 6.500 07/01/27 1,238,422
900 Philadelphia, PA Hosp & Higher Edl Facs Auth
Hosp Rev....................................... 6.500 07/01/23 917,307
1,500 Philadelphia, PA Hosp & Higher Edl Facs Auth
Hosp Rev....................................... 7.000 07/01/05 570,000
1,000 Philadelphia, PA Hosp & Higher Edl Facs Auth
Hosp Rev....................................... 7.250 07/01/18 380,000
1,830 Philadelphia, PA Hosp & Higher Edl Facs Auth
Hosp Rev....................................... 7.250 03/01/24 1,940,642
500 Philadelphia, PA Pkg Auth Rev East Market...... 8.750 03/01/05 506,265
1,785 Philadelphia, PA Pkg Auth Rev East Market...... 8.875 03/01/10 1,807,455
1,465 Scranton Lackawanna, PA Hlth Welfare Auth Rev
Rfdg........................................... 7.250 01/15/17 1,601,377
3,100 Scranton Lackawanna, PA Hlth Welfare Auth Rev
Rfdg........................................... 7.350 01/15/22 3,408,295
</TABLE>

See Notes to Financial Statements

37
<PAGE> 39
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$3,000 Somerset Cnty, PA Hosp Auth Rev Somerset Cmnty
Hosp Proj (Prerefunded @ 03/01/02)............. 7.500% 03/01/17 $ 3,338,520
2,400 Southern Chester Cnty, PA Hlth & Higher Ed Auth
Mtg Rev........................................ 6.300 06/01/10 2,469,408
250 Warren Cnty, PA Indl Dev Auth Beverly
Enterprises Rfdg............................... 9.000 11/01/12 277,853
2,300 Washington Cnty, PA Hosp Auth Rev Canonsburg
Genl Hosp Rfdg................................. 7.350 06/01/13 2,334,500
2,500 Westmoreland Cnty, PA Indl Dev Auth Rev
Hlthcare Facs Redstone Rfdg.................... 5.850 11/15/29 2,485,750
--------------
164,775,739
--------------
SOUTH CAROLINA 0.5%
725 Charleston Cnty, SC Hlth Fac Rev First Mtg
Episcopal Proj Rfdg (Prerefunded @ 04/01/01)... 9.750 04/01/16 829,146
250 South Carolina Jobs Econ Dev Auth Hlth Fac Rev
First Mtg Lutheran Homes SC Proj (Prerefunded @
10/01/02)...................................... 7.750 10/01/12 290,875
750 South Carolina Jobs Econ Dev Auth Hlth Fac Rev
First Mtg Lutheran Homes SC Proj (Prerefunded @
10/01/02)...................................... 8.000 10/01/22 879,248
5,095 South Carolina St Hsg Fin & Dev Auth
Multi-Family Rev............................... 6.750 05/01/28 5,229,253
--------------
7,228,522
--------------
SOUTH DAKOTA 0.2%
2,500 Mobridge, SD Hlthcare Facs Rev Mobridge Regl
Hosp Proj...................................... 6.500 12/01/22 2,549,050
1,000 South Dakota St Hlth & Edl Fac Auth Rev Huron
Regl Med Cent.................................. 7.250 04/01/20 1,118,920
--------------
3,667,970
--------------
TENNESSEE 1.2%
2,000 Shelby Cnty, TN Hlth Edl & Hsg Fac Brd Rev..... 6.000 07/01/28 2,108,900
2,000 Shelby Cnty, TN Hlth Edl & Hsg Hlthcare Fac
Kirby Pines Ser A.............................. 6.250 11/15/16 2,059,100
4,000 Shelby Cnty, TN Hlth Edl & Hsg Hlthcare Fac
Kirby Pines
Ser A.......................................... 6.375 11/15/25 4,125,560
500 Smith Cnty, TN Hlth & Edl Fac First Hlthcare
Corp Proj Rfdg (Prerefunded @ 04/01/99)........ 7.400 04/01/13 516,810
3,250 Springfield, TN Hlth & Edl Fac Brd Hosp Rev
Jesse Holman Jones Hosp Proj (Prerefunded @
04/01/06)...................................... 8.250 04/01/12 4,029,545
2,155 Sweetwater, TN Indl Dev Brd Mtg Rev Wood
Presbyterian Home Proj......................... 7.500 01/01/18 2,188,058
2,845 Sweetwater, TN Indl Dev Brd Mtg Rev Wood
Presbyterian Home Proj......................... 7.750 01/01/29 2,888,158
--------------
17,916,131
--------------
TEXAS 2.1%
1,000 Abilene, TX Hlth Facs Dev Sears Methodist
Retirement Ser A............................... 5.875 11/15/18 994,160
1,850 Abilene, TX Hlth Facs Dev Corp Retirement Facs
Rev............................................ 5.900 11/15/25 1,831,463
</TABLE>

See Notes to Financial Statements

38
<PAGE> 40
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS (CONTINUED)
$ 925 Bell Cnty, TX Hlth Fac Dev Corp Rev Hosp
Proj........................................... 9.250% 07/01/08 $ 972,721
4,000 Bell Cnty, TX Indl Dev Corp Solid Waste
Disposal Rev................................... 7.600 12/01/17 4,052,280
500 Dallas-Fort Worth, TX Intl Arpt Fac Impt Corp
Rev American Airls Inc......................... 7.500 11/01/25 535,580
1,500 Dallas-Fort Worth, TX Intl Arpt Fac Impt Corp
Rev American Airls Inc......................... 7.250 11/01/30 1,654,710
1,250 Dallas-Fort Worth, TX Intl Arpt Fac Impt Corp
Rev Delta Airls Inc............................ 7.625 11/01/21 1,367,188
2,665 De Soto, TX Hlth Fac Dev Park Manor Sr Care.... 7.750 12/01/16 2,779,035
163 Harris Cnty, TX Hsg Fin Corp Single Family Hsg
Rev............................................ 9.875 03/15/14 163,769
170 Harris Cnty, TX Hsg Fin Corp Single Family Hsg
Rev 1983 Ser A................................. 10.125 07/15/03 170,260
1,090 Harris Cnty, TX Hsg Fin Corp Single Family Hsg
Rev 1983 Ser A................................. 10.375 07/15/14 1,091,057
750 Montgomery Cnty, TX Hlth Fac Dev Corp Hosp Mtg
Rev Woodlands Med Cent Proj Rfdg (Prerefunded @
08/15/99)...................................... 8.850 08/15/14 793,500
3,235 Orange, TX Hsg Dev Corp Multi-Family Rev Hsg
Vlgs At Pine Hallow............................ 8.000 03/01/28 3,308,920
3,255 Rusk Cnty, TX Hlth Fac Corp Hosp Rev Henderson
Mem Hosp Proj Rfdg............................. 7.750 04/01/13 3,551,596
500 San Antonio, TX Hlth Fac Dev Corp Rev Encore
Nursing Cent Partn............................. 8.250 12/01/19 556,180
2,000 San Antonio, TX Hsg Fin Corp Multi-Family Hsg
Rev Beverly Oaks Apts Proj Ser A............... 7.750 02/01/27 2,080,020
1,975 San Antonio, TX Hsg Fin Corp Multi-Family Hsg
Rev Marbach Manor Apts Proj Ser A.............. 8.125 06/01/27 2,070,807
1,500 Tarrant Cnty, TX Hlth Fac Dev Corp Rev Mtg
Cumberland Rest Ser A Rfdg..................... 7.000 08/15/19 1,550,400
1,401 Texas Genl Svcs Cmty Partn Interests Office
Bldg & Land Acquisition Proj................... 7.000 08/01/24 1,439,182
--------------
30,962,828
--------------
UTAH 0.5%
1,500 Carbon Cnty, UT Solid Waste Disposal Rev Rfdg
Laidlaw Environmentl Ser A..................... 7.450 07/01/17 1,657,650
500 Hildale, UT Elec Rev Gas Turbine Elec Fac
Proj........................................... 7.600 09/01/06 529,050
1,000 Hildale, UT Elec Rev Gas Turbine Elec Fac
Proj........................................... 7.800 09/01/15 1,060,600
1,000 Tooele Cnty, UT Pollutn Ctl Rev Rfdg Laidlaw
Environmentl Ser A............................. 7.550 07/01/27 1,110,650
</TABLE>

See Notes to Financial Statements

39
<PAGE> 41
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH (CONTINUED)
$2,000 Utah St Hsg Fin Agy Rev RHA Cmnty Services Proj
Ser A.......................................... 6.875% 07/01/27 $ 2,093,860
905 Utah St Hsg Fin Agy Single Family Mtg Ser C2... 7.950 07/01/20 928,240
--------------
7,380,050
--------------
VIRGINIA 1.9%
2,955 Alexandria, VA Indl Dev Auth Rev Saint Coletta
Sch Proj....................................... 7.750 10/15/26 3,125,415
235 Alexandria, VA Indl Dev Auth Rev Saint Coletta
Sch Proj....................................... 7.750 10/15/26 246,482
6,600 Alexandria, VA Redev & Hsg Auth 3001 Park Cent
Apts Ser A Rfdg................................ 6.375 04/01/34 6,658,938
565 Covington-Alleghany Cnty, VA Indl Dev Auth
Beverly Enterprises Inc Proj Rfdg.............. 9.375 09/01/01 600,759
2,000 Dulles Town Cent Cmnty Dev Auth Dulles Town
Cent Proj...................................... 6.250 03/01/26 2,043,540
3,000 Fairfax Cnty, VA Redev & Hsg Auth Multi-Family
Hsg Rev........................................ 7.600 10/01/36 3,298,320
2,500 Henry Cnty, VA Indl Dev Auth Indl Dev Rev 5Bs
Inc Proj Ser A................................. 7.400 09/01/17 2,574,475
1,500 Hopewell, VA Indl Dev Auth Res Recovery Rev
Stone Container Corp Proj Rfdg................. 8.250 06/01/16 1,664,220
1,000 Pittsylvania Cnty, VA Indl Dev Auth Rev Exempt
Fac Ser A...................................... 7.450 01/01/09 1,105,090
6,000 Richmond, VA Redev & Hsg Auth Multi-Family Rev
Ser A Rfdg (Var Rate Cpn)...................... 7.500 12/15/21 6,151,320
1,000 Rockingham Cnty, VA Indl Dev Auth Residential
Care Fac Rev................................... 5.750 04/01/28 1,005,290
--------------
28,473,849
--------------
WASHINGTON 0.8%
2,650 Seattle, WA Hsg Auth Rev Holly Park Proj
Rmkt........................................... 5.900 01/01/30 2,704,351
2,500 Spokane Cnty, WA Indl Dev Corp Solid Waste Disp
Rev............................................ 7.600 03/01/27 2,767,875
300 Tacoma, WA Hsg Auth Rev Hsg Wedgewood Homes
Proj (a)(e).................................... 6.000 01/01/28 299,859
1,000 Tacoma, WA Hsg Auth Rev Hsg Wedgewood Homes
Proj (a)(e).................................... 6.000 03/01/28 999,340
1,680 Tacoma, WA Hsg Auth Rev Hsg Wedgewood Homes
Proj........................................... 6.000 04/01/28 1,678,908
500 Tacoma, WA Hsg Auth Rev Hsg Wedgewwd Homes
Proj........................................... 6.000 02/01/28 499,745
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple Knoll Apts
Proj........................................... 6.000 10/01/17 1,028,190
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple Knoll Apts
Proj........................................... 6.200 10/01/27 1,031,440
--------------
11,009,708
--------------
WEST VIRGINIA 0.3%
2,000 Randolph Cnty, WV Bldg Comm Rev Crossover
Elkins Regl Proj Rfdg.......................... 6.125 07/01/23 2,020,860
485 Randolph Cnty, WV Bldg Commission Davis Mem
Hosp Proj Ser A Rfdg & Impt (Prerefunded @
11/01/01)...................................... 7.650 11/01/21 544,922
2,540 Weirton, WV Pollutn Ctl Rev Weirton Steel Proj
Rfdg........................................... 8.625 11/01/14 2,520,848
--------------
5,086,630
--------------
</TABLE>

See Notes to Financial Statements

40
<PAGE> 42
PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN 1.4%
$ 805 Baldwin, WI Hosp Rev Mtg Ser A................. 6.125% 12/01/18 $ 816,664
2,590 Baldwin, WI Hosp Rev Mtg Ser A................. 6.375 12/01/28 2,627,141
3,000 Oconto Falls, WI Cmnty Dev Oconto Falls Tissue
Inc Proj....................................... 7.750 12/01/22 3,236,400
1,550 Wisconsin Hsg & Econ Dev Auth Home Ownership
Rev............................................ 7.550 07/01/26 1,683,347
720 Wisconsin St Hlth & Edl Fac Auth Rev Hess Mem
Hosp Assn...................................... 7.200 11/01/05 768,924
2,000 Wisconsin St Hlth & Edl Fac Auth Rev Hess Mem
Hosp Assn...................................... 7.875 11/01/22 2,259,340
2,500 Wisconsin St Hlth & Edl Fac Auth Rev Natl
Regency of New Berlin Proj..................... 8.000 08/15/25 2,840,350
2,000 Wisconsin St Hlth & Edl Facs Auth Rev Clement
Manor Rfdg..................................... 5.750 08/15/24 1,941,060
3,000 Wisconsin St Hlth & Edl Milwaukee Catholic Home
Proj........................................... 7.500 07/01/26 3,314,610
500 Wisconsin St Hlth & Edl Rev Mem Hosp At
Oconomowoc Inc Proj............................ 6.350 07/01/17 511,415
--------------
19,999,251
--------------
WYOMING 0.3%
4,100 Wyoming Cmnty Dev Auth Hsg Rev................. 6.250 06/01/27 4,372,978
--------------
U. S. VIRGIN ISLANDS 0.2%
1,210 University of Virgin Islands Pub Fin Auth Ser
A.............................................. 7.500 10/01/09 1,378,517
1,965 University of Virgin Islands Pub Fin Auth Ser
A.............................................. 7.650 10/01/14 2,248,038
--------------
3,626,555
--------------
TOTAL LONG-TERM INVESTMENTS 97.4%
(Cost $1,349,023,537)..................................................... 1,430,228,633
SHORT-TERM INVESTMENTS 0.6%
(Cost $8,500,000)......................................................... 8,500,000
--------------
TOTAL INVESTMENTS 98.0%
(Cost $1,357,523,537)..................................................... 1,438,728,633
OTHER ASSETS IN EXCESS OF LIABILITIES 2.0%................................. 28,749,718
--------------
NET ASSETS 100.0%.......................................................... $1,467,478,351
==============
</TABLE>

*Zero coupon bond

(a) Securities purchased on a when issued or delayed delivery basis.

(b) Assets segregated as collateral for when issued or delayed delivery purchase
commitments.

(d) Non-income producing security.

(e) 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.

(f) Payment-in-kind security

See Notes to Financial Statements

41
<PAGE> 43

STATEMENT OF ASSETS AND LIABILITIES

November 30, 1998
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $1,357,523,537)..................... $1,438,728,633
Cash........................................................ 61,609
Receivables:
Interest.................................................. 30,854,126
Investments Sold.......................................... 18,156,920
Fund Shares Sold.......................................... 2,795,794
Other....................................................... 51,815
--------------
Total Assets.......................................... 1,490,648,897
--------------
LIABILITIES:
Payables:
Investments Purchased..................................... 16,120,916
Income Distributions...................................... 4,022,193
Fund Shares Repurchased................................... 1,158,428
Distributor and Affiliates................................ 832,633
Investment Advisory Fee................................... 635,214
Accrued Expenses............................................ 270,847
Trustees' Deferred Compensation and Retirement Plans........ 130,315
--------------
Total Liabilities..................................... 23,170,546
--------------
NET ASSETS.................................................. $1,467,478,351
==============
NET ASSETS CONSIST OF:
Capital..................................................... $1,402,256,499
Net Unrealized Appreciation................................. 81,205,096
Accumulated Distributions in Excess of Net Investment
Income.................................................... (441,772)
Accumulated Net Realized Loss............................... (15,541,472)
--------------
NET ASSETS.................................................. $1,467,478,351
==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $904,973,579 and 77,580,797 shares of
beneficial interest issued and outstanding)............. $ 11.66
Maximum sales charge (4.75%* of offering price)......... .58
--------------
Maximum offering price to public........................ $ 12.24
==============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $451,891,305 and 38,760,934 shares of
beneficial interest issued and outstanding)............. $ 11.66
==============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $110,613,467 and 9,497,974 shares of
beneficial interest issued and outstanding)............. $ 11.65
==============
</TABLE>

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

See Notes to Financial Statements

42
<PAGE> 44

STATEMENT OF OPERATIONS

For the Year Ended November 30, 1998
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Interest.................................................... $ 96,316,419
------------
EXPENSES:
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $2,101,487, $4,467,767 and $1,019,836,
respectively)............................................. 7,589,090
Investment Advisory Fee..................................... 7,402,566
Shareholder Services........................................ 980,681
Custody..................................................... 56,118
Legal....................................................... 41,288
Trustees' Fees and Expenses................................. 26,769
Other....................................................... 753,036
------------
Total Expenses.......................................... 16,849,548
------------
NET INVESTMENT INCOME....................................... $ 79,466,871
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain/Loss:
Investments............................................... $ 8,107,046
Futures................................................... 43,631
------------
NET REALIZED GAIN........................................... 8,150,677
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 64,464,321
End of the Period:
Investments............................................. 81,205,096
------------
Net Unrealized Appreciation During the Period............... 16,740,775
------------
NET REALIZED AND UNREALIZED GAIN............................ $ 24,891,452
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $104,358,323
============
</TABLE>

See Notes to Financial Statements

43
<PAGE> 45

STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended November 30, 1998 and 1997
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
November 30, 1998 November 30, 1997
- -------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................ $ 79,466,871 $ 65,562,592
Net Realized Gain/Loss............................... 8,150,677 (1,648,737)
Net Unrealized Appreciation.......................... 16,740,775 31,524,325
-------------- --------------
Change in Net Assets from Operations................. 104,358,323 95,438,180
-------------- --------------
Distributions from Net Investment Income*............ (79,954,356) (65,202,550)
Distributions in Excess of Net Investment Income*.... (442,201) -0-
-------------- --------------
Total Distributions................................ (80,396,557) (65,202,550)
-------------- --------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES......................................... 23,961,766 30,235,630
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold............................ 263,990,520 369,938,578
Net Asset Value of Shares Issued Through Dividend
Reinvestment....................................... 35,960,456 28,519,681
Cost of Shares Repurchased........................... (153,186,986) (126,673,799)
-------------- --------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS....... 146,763,990 271,784,460
-------------- --------------
TOTAL INCREASE IN NET ASSETS......................... 170,725,756 302,020,090
NET ASSETS:
Beginning of the Period.............................. 1,296,752,595 994,732,505
-------------- --------------
End of the Period (Including accumulated
undistributed net investment income of ($441,772)
and $487,485, respectively)........................ $1,467,478,351 $1,296,752,595
============== ==============
</TABLE>

<TABLE>
<CAPTION>
Year Ended Year Ended
*Distributions by Class: November 30, 1998 November 30, 1997
- -------------------------------------------------------------------------------------------
<S> <C> <C>
DISTRIBUTIONS FROM AND IN EXCESS OF NET INVESTMENT
INCOME:
Class A Shares..................................... $ (51,028,959) $ (41,904,414)
Class B Shares..................................... (23,908,632) (19,909,861)
Class C Shares..................................... (5,458,966) (3,388,275)
--------------- ---------------
$ (80,396,557) $ (65,202,550)
=============== ===============
</TABLE>

See Notes to Financial Statements

44
<PAGE> 46

FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Year Ended November 30,
----------------------------------------------
Class A Shares 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period.............................. $11.454 $11.139 $ 11.18 $ 10.44 $11.19
------- ------- ------- ------- ------
Net Investment Income................. .699 .729 .735 .74 .76
Net Realized and Unrealized
Gain/Loss........................... .217 .312 (.041) .7475 (.744)
------- ------- ------- ------- ------
Total from Investment Operations...... .916 1.041 .694 1.4875 .016
Less Distributions from and in Excess
of Net Investment Income............ .706 .726 .735 .7475 .766
------- ------- ------- ------- ------
Net Asset Value, End of the Period.... $11.664 $11.454 $11.139 $ 11.18 $10.44
======= ======= ======= ======= ======
Total Return (a)...................... 8.28% 9.63% 6.47% 14.65% .10%
Net Assets at End of the Period (In
millions)........................... $ 905.0 $ 779.9 $ 621.0 $ 516.3 $411.1
Ratio of Expenses to Average Net
Assets (b).......................... .91% .95% 1.01% .98% 1.02%
Ratio of Net Investment Income to
Average Net Assets (b).............. 6.01% 6.50% 6.64% 6.81% 6.98%
Portfolio Turnover.................... 26% 29% 23% 26% 33%
</TABLE>

(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

45
<PAGE> 47
FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
Year Ended November 30,
----------------------------------------------
Class B Shares 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period.............................. $11.452 $11.136 $ 11.18 $ 10.43 $11.18
------- ------- ------- ------- ------
Net Investment Income................. .612 .645 .653 .66 .68
Net Realized and Unrealized
Gain/Loss........................... .216 .313 (.046) .7535 (.748)
------- ------- ------- ------- ------
Total from Investment Operations...... .828 .958 .607 1.4135 (.068)
Less Distributions from and in Excess
of Net Investment Income............ .622 .642 .651 .6635 .682
------- ------- ------- ------- ------
Net Asset Value, End of the Period.... $11.658 $11.452 $11.136 $ 11.18 $10.43
======= ======= ======= ======= ======
Total Return (a)...................... 7.41% 8.82% 5.67% 13.89% (.76%)
Net Assets at End of the Period (In
millions)........................... $ 451.9 $ 425.6 $ 323.8 $ 233.9 $159.3
Ratio of Expenses to Average Net
Assets (b).......................... 1.67% 1.71% 1.77% 1.73% 1.77%
Ratio of Net Investment Income to
Average Net Assets (b).............. 5.26% 5.74% 5.88% 6.03% 6.19%
Portfolio Turnover.................... 26% 29% 23% 26% 33%
</TABLE>

(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

46
<PAGE> 48
FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
December 10, 1993
Year Ended November 30, (Commencement of
------------------------------------- Distribution) to
Class C Shares 1998 1997 1996 1995 November 30, 1994(a)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of the Period............. $11.440 $11.126 $ 11.17 $ 10.42 $ 11.29
------- ------- ------- ------- -------
Net Investment Income....... .613 .644 .652 .66 .63
Net Realized and Unrealized
Gain/Loss................. .215 .312 (.045) .7535 (.8363)
------- ------- ------- ------- -------
Total from Investment
Operations................ .828 .956 .607 1.4135 (.2063)
Less Distributions from and
in Excess of Net
Investment Income......... .622 .642 .651 .6635 .6637
------- ------- ------- ------- -------
Net Asset Value, End of the
Period.................... $11.646 $11.440 $11.126 $ 11.17 $ 10.42
======= ======= ======= ======= =======
Total Return (b)............ 7.42% 8.82% 5.68% 13.79% (1.80%)*
Net Assets at End of the
Period (In millions)...... $ 110.6 $ 91.3 $ 50.0 $ 31.1 $ 15.3
Ratio of Expenses to Average
Net Assets (c)............ 1.67% 1.70% 1.77% 1.72% 1.75%
Ratio of Net Investment
Income to Average Net
Assets (c)................ 5.25% 5.69% 5.86% 5.98% 6.07%
Portfolio Turnover.......... 26% 29% 23% 26% 33%
</TABLE>

* Non-Annualized

(a) Based on average month-end shares outstanding.

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

(c) 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

47
<PAGE> 49

NOTES TO FINANCIAL STATEMENTS

November 30, 1998
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen High Yield Municipal Fund, formerly known as Van Kampen American
Capital 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 64% 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

48
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

settlement to occur at a later date. The value of the security so purchased is
subject to 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. 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 November 30, 1998, for federal income tax purposes, cost of long- and
short-term investments is $1,357,524,087; the aggregate gross unrealized
appreciation is

49
<PAGE> 51
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

$87,525,603 and the aggregate gross unrealized depreciation is $6,321,057,
resulting in net unrealized appreciation of $81,204,546.

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.

Permanent book and tax differences relating to market discount on securities
sold totaling $429 were reclassified from accumulated net realized gain/loss to
accumulated net investment income.

For the year ended November 30, 1998, 99.99% of the income distributions
made by the Fund were exempt from federal income taxes. In January, 1999, the
Fund will provide tax information to shareholders for the 1998 calendar year.

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 year ended November 30, 1998, the Fund recognized expenses of
approximately $41,300 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 year ended November 30, 1998, the Fund recognized expenses of
approximately $352,200 representing Van Kampen Funds Inc. or its affiliates'
(collectively "Van Kampen") cost of providing accounting services to the Fund.
These services are provided by Van Kampen at cost.

Van Kampen Investor Services Inc. ("VKIS"), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the year ended
November 30, 1998, the Fund recognized expenses of approximately $733,500.
Beginning in 1998, the transfer

50
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

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.

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

The Fund has outstanding three classes of shares of beneficial interest, Classes
A, B and C, each with a par value of $.01 per share. There are an unlimited
number of shares of each class authorized. 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>

51
<PAGE> 53
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

At November 30, 1997, capital aggregated $757,169,936, $410,171,761, and
$88,150,812 for Classes A, B, and C, respectively. For the year ended November
30, 1997, transactions were as follows:

<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.................................. 18,562,392 $ 210,055,169
Class B.................................. 10,089,692 114,185,577
Class C.................................. 4,036,766 45,697,832
----------- -------------
Total Sales................................ 32,688,850 $ 369,938,578
=========== =============
Dividend Reinvestment:
Class A.................................. 1,614,240 $ 18,155,813
Class B.................................. 745,441 8,385,472
Class C.................................. 175,898 1,978,396
----------- -------------
Total Dividend Reinvestments............... 2,535,579 $ 28,519,681
=========== =============
Repurchases:
Class A.................................. (7,837,512) $ (87,719,551)
Class B.................................. (2,749,344) (30,839,936)
Class C.................................. (723,574) (8,114,312)
----------- -------------
Total Repurchases.......................... (11,310,430) $(126,673,799)
=========== =============
</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

52
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

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 year ended November 30, 1998, Van Kampen, as distributor for the
Fund, received net commissions on sales of the Fund's Class A shares of
approximately $343,400 and CDSC on the redeemed shares of Classes B and C of
approximately $525,500. 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 $472,081,065 and $355,217,098,
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 exercising an option contract or taking
delivery of a security underlying a futures contract. In these instances the
recognition of gain or loss is postponed until the disposal of the security
underlying the option or 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.

53
<PAGE> 55
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

November 30, 1998
- --------------------------------------------------------------------------------

Upon entering into future contracts, the Fund maintains, in a segregated
account with its custodian, 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).

Transactions in futures contracts, each with a par value of $100,000, for
the year ended November 30, 1998, were as follows:

<TABLE>
<CAPTION>
CONTRACTS
- ----------------------------------------------------------------------
<S> <C>
Outstanding at November 30, 1997............................ 200
Futures Opened.............................................. 865
Futures Closed.............................................. (1,065)
------
Outstanding at November 30, 1998............................ -0-
======
</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 year ended November 30, 1998, are payments retained by Van Kampen
of approximately $3,711,600.

54
<PAGE> 56

REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Board of Trustees of
Van Kampen High Yield Municipal Fund

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Van Kampen High Yield Municipal
Fund (the "Fund"), a series of the Van Kampen Tax-Exempt Trust, at November 30,
1998, and the results of its operations, the changes in its net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
January 11, 1999

55
<PAGE> 57

VAN KAMPEN HIGH YIELD MUNICIPAL FUND

BOARD OF TRUSTEES

J. MILES BRANAGAN

RICHARD M. DEMARTINI*

LINDA HUTTON HEAGY

R. CRAIG KENNEDY

JACK E. NELSON

DON G. POWELL*

PHILLIP B. ROONEY

FERNANDO SISTO

WAYNE W. WHALEN* - Chairman

PAUL G. YOVOVICH

OFFICERS

DENNIS J. MCDONNELL*
President

RONALD A. NYBERG*
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. After June 30, 1999, the report, if used with prospective
investors, must be accompanied by a quarterly performance update.

56
<PAGE> 58

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 which, 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 redemption 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> 12-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-START> DEC-01-1997
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,357,523,537<F1>
<INVESTMENTS-AT-VALUE> 1,438,728,633<F1>
<RECEIVABLES> 51,806,840<F1>
<ASSETS-OTHER> 51,815<F1>
<OTHER-ITEMS-ASSETS> 61,609<F1>
<TOTAL-ASSETS> 1,490,648,897<F1>
<PAYABLE-FOR-SECURITIES> 16,120,916<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,049,630<F1>
<TOTAL-LIABILITIES> 23,170,546<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 867,776,273
<SHARES-COMMON-STOCK> 77,580,797
<SHARES-COMMON-PRIOR> 68,085,219
<ACCUMULATED-NII-CURRENT> (441,772)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (15,541,472)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 81,205,096<F1>
<NET-ASSETS> 904,973,579
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 96,316,419<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (16,849,948)<F1>
<NET-INVESTMENT-INCOME> 79,466,871<F1>
<REALIZED-GAINS-CURRENT> 8,150,677<F1>
<APPREC-INCREASE-CURRENT> 16,740,775<F1>
<NET-CHANGE-FROM-OPS> 104,358,323<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (51,028,959)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,501,149
<NUMBER-OF-SHARES-REDEEMED> (7,951,196)
<SHARES-REINVESTED> 1,945,625
<NET-CHANGE-IN-ASSETS> 125,089,331
<ACCUMULATED-NII-PRIOR> 487,485<F1>
<ACCUMULATED-GAINS-PRIOR> (23,691,720)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,402,566<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 16,849,548<F1>
<AVERAGE-NET-ASSETS> 841,781,960
<PER-SHARE-NAV-BEGIN> 11.454
<PER-SHARE-NII> 0.699
<PER-SHARE-GAIN-APPREC> 0.217
<PER-SHARE-DIVIDEND> (0.706)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.664
<EXPENSE-RATIO> 0.91
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<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> 12-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-START> DEC-01-1997
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,357,523,537<F1>
<INVESTMENTS-AT-VALUE> 1,438,728,633<F1>
<RECEIVABLES> 51,806,840<F1>
<ASSETS-OTHER> 51,815<F1>
<OTHER-ITEMS-ASSETS> 61,609<F1>
<TOTAL-ASSETS> 1,490,648,897<F1>
<PAYABLE-FOR-SECURITIES> 16,120,916<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,049,630<F1>
<TOTAL-LIABILITIES> 23,170,546<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 428,691,229
<SHARES-COMMON-STOCK> 38,760,934
<SHARES-COMMON-PRIOR> 37,162,826
<ACCUMULATED-NII-CURRENT> (441,772)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (15,541,472)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 81,205,096<F1>
<NET-ASSETS> 451,891,305
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 96,316,419<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (16,849,548)<F1>
<NET-INVESTMENT-INCOME> 79,466,871<F1>
<REALIZED-GAINS-CURRENT> 8,150,677<F1>
<APPREC-INCREASE-CURRENT> 16,740,775<F1>
<NET-CHANGE-FROM-OPS> 104,358,323<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (23,908,632)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,190,835
<NUMBER-OF-SHARES-REDEEMED> (4,479,101)
<SHARES-REINVESTED> 886,374
<NET-CHANGE-IN-ASSETS> 26,313,611
<ACCUMULATED-NII-PRIOR> 487,485<F1>
<ACCUMULATED-GAINS-PRIOR> (23,691,720)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,402,566<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 16,849,548<F1>
<AVERAGE-NET-ASSETS> 447,225,504
<PER-SHARE-NAV-BEGIN> 11.452
<PER-SHARE-NII> 0.612
<PER-SHARE-GAIN-APPREC> 0.216
<PER-SHARE-DIVIDEND> (0.622)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.658
<EXPENSE-RATIO> 1.67
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<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> 12-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-START> DEC-01-1997
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,357,523,537<F1>
<INVESTMENTS-AT-VALUE> 1,438,728,633<F1>
<RECEIVABLES> 51,806,840<F1>
<ASSETS-OTHER> 51,815<F1>
<OTHER-ITEMS-ASSETS> 61,609<F1>
<TOTAL-ASSETS> 1,490,648,897<F1>
<PAYABLE-FOR-SECURITIES> 16,120,916<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 7,049,630<F1>
<TOTAL-LIABILITIES> 23,170,546<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 105,788,997
<SHARES-COMMON-STOCK> 9,497,974
<SHARES-COMMON-PRIOR> 7,979,623
<ACCUMULATED-NII-CURRENT> (441,772)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (15,541,472)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 81,205,096<F1>
<NET-ASSETS> 110,613,467
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 96,316,419<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (16,849,548)<F1>
<NET-INVESTMENT-INCOME> 79,466,871<F1>
<REALIZED-GAINS-CURRENT> 8,150,677<F1>
<APPREC-INCREASE-CURRENT> 16,740,775<F1>
<NET-CHANGE-FROM-OPS> 104,358,323<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (5,458,966)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,003,857
<NUMBER-OF-SHARES-REDEEMED> (742,697)
<SHARES-REINVESTED> 257,191
<NET-CHANGE-IN-ASSETS> 19,322,814
<ACCUMULATED-NII-PRIOR> 487,485<F1>
<ACCUMULATED-GAINS-PRIOR> (23,691,720)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,402,566<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 16,849,548<F1>
<AVERAGE-NET-ASSETS> 102,188,921
<PER-SHARE-NAV-BEGIN> 11.40
<PER-SHARE-NII> 0.613
<PER-SHARE-GAIN-APPREC> 0.215
<PER-SHARE-DIVIDEND> (0.622)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.646
<EXPENSE-RATIO> 1.67
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>

</TABLE>