<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Performance Results.............................. 3
Performance in Perspective....................... 4
Portfolio Management Review...................... 5
Glossary of Terms................................ 8
Portfolio Highlights............................. 9
Portfolio of Investments......................... 10
Statement of Assets and Liabilities.............. 52
Statement of Operations.......................... 53
Statement of Changes in Net Assets............... 54
Financial Highlights............................. 55
Notes to Financial Statements.................... 58
Report of Independent Accountants................ 65
</TABLE>
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2
LETTER TO SHAREHOLDERS
December 20, 1999
Dear Shareholder,
As we approach the end of the century--and the millennium--it seems
appropriate to take a look back at the progress that's been made over the last
100 years and how the world of investing has changed over the generations.
Although rapid advances in technology and science have dramatically altered the
world that we live in today, one of the greatest shifts we've seen this century
is the increasing importance of investing for many Americans.
Once considered primarily for the wealthy, investing in the stock market is
now available to most people. In fact, almost 79 million individuals--who
represent almost half of all U.S. households--own stocks either directly or
through mutual funds. This is even more impressive when considering that just 16
years earlier, only 19 percent of households owned stocks. Another important
shift has been the need for retirement planning beyond a pension plan or Social
Security. The Investment Company Institute, the leading mutual fund industry
association, reports that 77 percent of all mutual fund shareholders earmarked
retirement as their primary financial goal in 1998.
Through all the changes in the investment environment over the past century,
the general principles that have made generations of investors successful remain
the same. Those that have stood the test of time include:
- Investing for the long-term
- Basing investment decisions on sound research
- Building a diversified portfolio
- Believing in the value of professional investment advice
While no one can predict the future, at Van Kampen, we believe that these
ideas will remain important tenets for investors well into the next century. As
we continue to focus on these principles, we hope that our decades of investment
experience can help bring you closer to your financial goals as we enter the new
millennium.
Sincerely,
[SIG]
Richard F. Powers III
Chairman
Van Kampen Asset Management Inc.
Source: Investment Company Institute
[SIG]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
1
<PAGE> 3
ECONOMIC SNAPSHOT
ECONOMIC GROWTH
Americans continued their spending spree, keeping the economy growing at a
brisk pace. High levels of consumer confidence fueled this heavy retail
activity, which pushed the personal savings rate to a record low in September as
spending rates outpaced income growth. Although the U.S. economy experienced a
slowdown during the second quarter of 1999, growth rebounded in the third
quarter with gross domestic product increasing an annualized 5.7 percent.
EMPLOYMENT
The strong job market helped support the strength of the economy. During the
reporting period, the unemployment rate reached its lowest level in almost 30
years, and wages continued to climb. Wage pressures pushed the cost of labor
higher in the second quarter, as the employment cost index (ECI) recorded its
biggest gain in eight years. However, productivity gains offset rising wages in
the third quarter, bringing the ECI back to a more moderate level.
INFLATION AND INTEREST RATES
Although the Consumer Price Index continued to reflect historically low
inflation, concerns about future increases in inflation were prevalent
throughout the reporting period. The Federal Reserve Board remained active in
guarding against inflation and tempering economic growth. The Fed reversed its
three interest-rate cuts from the fall of 1998 by raising rates in June, August,
and November 1999 in an attempt to keep the economy from overheating.
U.S. GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annualized Rates
Third Quarter 1997 through Third Quarter 1999
[GRAPH]
<TABLE>
<S> <C>
97Q3 4.00
97Q4 3.10
98Q1 6.70
98Q2 2.10
98Q3 3.80
98Q4 5.90
99Q1 3.70
99Q2 1.90
99Q3 5.70
</TABLE>
Source: Bureau of Economic Analysis
2
<PAGE> 4
PERFORMANCE RESULTS FOR THE PERIOD ENDED NOVEMBER 30, 1999
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)... (.37%) (1.11%) (1.20%)
One-year total return (2)................ (5.09%) (4.86%) (2.13%)
Five-year average annual total return
(2)...................................... 6.58% 6.59% 6.79%
Ten-year average annual total return
(2)...................................... 6.73% N/A N/A
Life-of-Fund average annual total return
(2)...................................... 6.65% 5.89% 5.33%
Commencement date........................ 01/02/86 07/20/92 12/10/93
DISTRIBUTION RATES AND YIELD
Distribution rate (3).................... 5.84% 5.37% 5.38%
Taxable-equivalent distribution rate
(4)...................................... 9.13% 8.39% 8.41%
SEC Yield (5)............................ 5.84% 5.39% 5.40%
</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). If the
sales charge was included, total return would be lower.
(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, 1999.
A portion of the interest income may be subject to the federal alternative
minimum tax (AMT).
See the Comparative Performance section of the current prospectus. Past
performance does not guarantee future results. Investment return and net asset
value will fluctuate with market conditions. Fund shares, when redeemed, may be
worth more or less than their original cost.
Investing in high-yield, lower rated securities involves certain risks, which
may include the potential for greater sensitivity to general economic downturns
and greater market price volatility.
3
<PAGE> 5
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 investment adviser has responded to
opportunities and challenges.
The following graph compares 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. the Lehman Brothers Municipal Bond
Index (November 30, 1989 through November 30, 1999)
[INVESTMENT PERFORMANCE CHART]
<TABLE>
<CAPTION>
VAN KAMPEN HIGH YIELD MUNICIPAL LEHMAN BROTHERS MUNICIPAL BOND
FUND INDEX
------------------------------- ------------------------------
<S> <C> <C>
Nov 1989 9528.00 10000.00
9576.00 10082.00
9554.00 10034.60
9630.00 10123.90
9670.00 10127.00
9643.00 10054.00
9778.00 10273.20
9860.00 10363.60
9961.00 10516.00
9860.00 10363.50
9897.00 10369.70
9971.00 10557.40
Nov 1990 10141.00 10769.60
10150.00 10817.00
10217.00 10961.90
10274.00 11057.30
10322.00 11061.70
10439.00 11208.90
10566.00 11308.60
10556.00 11297.30
10705.00 11435.10
10794.00 11586.10
10915.00 11736.70
10986.00 11842.30
Nov 1991 11026.00 11875.50
11231.00 12130.80
11262.00 12158.70
11293.00 12162.40
11355.00 12167.20
11471.00 12275.50
11597.00 12420.40
11736.00 12629.00
11992.00 13007.90
11906.00 12880.40
11982.00 12964.10
11917.00 12837.10
Nov 1992 12103.00 13066.90
12247.00 13200.10
12377.00 13353.30
12688.00 13836.70
12662.00 13690.00
12773.00 13828.30
12850.00 13905.70
12973.00 14137.90
13004.00 14156.30
13175.00 14450.80
13309.00 14615.50
13373.00 14643.30
Nov 1993 13272.00 14514.40
13491.00 14820.70
13615.00 14989.60
13405.00 14601.40
13097.00 14007.10
13151.00 14126.20
13303.00 14249.10
13296.00 14162.10
13499.00 14421.30
13577.00 14471.80
13505.00 14259.00
13382.00 14005.20
Nov 1994 13284.00 13751.80
13516.00 14054.30
13788.00 14456.20
14088.00 14876.90
14208.00 15048.00
14276.00 15066.00
14528.00 15546.70
14465.00 15411.40
14562.00 15557.80
14665.00 15755.40
14795.00 15854.70
14986.00 16084.50
Nov 1995 15231.00 16351.50
15396.00 16508.50
15480.00 16634.00
15441.00 16520.90
15373.00 16309.40
15333.00 16263.80
15391.00 16257.20
16519.00 16434.50
15649.00 16584.00
15722.00 16580.70
15867.00 16812.80
16041.00 17002.80
Nov 1996 16217.00 17314.00
16291.00 17241.20
16352.00 17274.00
16486.00 17432.90
16473.00 17201.00
16609.00 17345.50
16788.00 17605.70
16939.00 17794.10
17302.00 18287.00
17317.00 18115.10
17500.00 18330.70
17669.00 18448.00
Nov 1997 17778.00 18556.80
18088.00 18827.80
18229.00 19021.70
18323.00 19027.40
18417.00 19044.50
18449.00 18958.80
18637.00 19258.40
18746.00 19333.50
18791.00 19381.80
18998.00 19682.20
19173.00 19928.30
19170.00 19928.30
Nov 1998 19249.00 19998.00
19295.00 20048.00
19421.00 20286.60
19414.00 20197.30
19508.00 20225.60
19585.00 20276.20
19613.00 20158.50
19470.00 19868.30
19514.00 19939.80
19370.00 19780.30
19329.00 19788.20
19114.00 19574.50
Nov 1999 19177.00 19367.00
</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.
4
<PAGE> 6
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN HIGH YIELD MUNICIPAL FUND
We recently spoke with representatives of the adviser 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 representatives are led by Wayne D.
Godlin, portfolio manager, who has managed the Fund since March 1990 and has
worked in the investment industry since 1984.
Mr. Godlin is joined by Peter W. Hegel, chief investment officer for
fixed-income investments. The following discussion reflects their views on the
Fund's performance during the 12-month period ended November 30, 1999.
Q HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT IN WHICH THE FUND HAS
OPERATED DURING THE PAST 12 MONTHS?
A Overall, the past 12 months were terrible for both taxable and tax-exempt
bond markets as long-term U.S. interest rates rose by nearly one percent.
When long-term interest rates rise, bond prices go down, making this a
difficult environment for bond funds to achieve favorable returns. Generally,
municipal bonds--the type of bonds the Fund invests in--underperformed taxable
bonds during the reporting period.
The tight credit spread between high- and low-quality bonds was the story of
the first six months of the period--with interest rates paid on low-quality
bonds not much higher than those paid on higher-quality bonds. When this
happens, the lower-quality, higher yielding municipal bonds that we prefer
become less attractive for investors, who can get comparable yields from
higher-quality bonds, which bring less risk. During the remainder of the period,
we saw credit spreads become wider as interest rates rose. For the year, the
supply of high-yield municipal bonds increased compared to 1998, particularly in
the new issue or primary market.
Q HOW DID YOU POSITION THE FUND IN THIS ENVIRONMENT?
A We evaluate municipal bonds on an individual basis--regardless of whether
credit spreads are tight or wide--and we continued to position the Fund
for the long term. To do so, we seek to maintain a highly diversified
portfolio, by geography and sector, which is an important strategy when
investing in high-yield, high-risk municipal bonds. Diversity allows us to help
reduce the effects of weakness in a specific municipality or economic sector.
Our research team of seven analysts--located throughout the country--focused on
uncovering value in small to mid-size new issues, particularly among
higher-yielding nonrated bonds. Despite poor performance among municipal bond
funds, we believe it was our strategy that helped the Fund outperform its peers.
5
<PAGE> 7
Q DISCUSS THE FUND'S PERFORMANCE COMPARED TO THAT OF ITS PEERS.
A We were pleased with the Fund's favorable performance compared to its
peers. We typically have maintained a greater percentage of assets in
higher-yielding, lower-rated securities than other funds in our peer
group, which has historically helped us 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 1610,
1330, and 383 funds in the municipal bond fund category, respectively, as of
November 30, 1999.
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.
Q WHAT PERCENTAGE OF THE FUND IS INVESTED IN NONRATED BONDS AND WHY?
A As of November 30, 1999, 83.0 percent of the Fund was invested in nonrated
bonds. We prefer to invest in 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. As a result of this strategy, the
Fund benefited from significant improvements in the credit quality of our
holdings, which counteracted the effects of weakness in the overall municipal
bond market.
Q WHAT OTHER FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A Generally, we look for opportunities to invest in bonds that typically
have had low sensitivity to changes in the economy--such as health care
and low- to moderate-income housing. We believe these sectors will
cultivate demand in a strong or weak economy.
Although the Fund's sector weightings reflect where we found opportunity on
a bond-by-bond basis, we did benefit from purchases in life-care projects and
utility district deals. One disappointment that hurt the Fund's performance was
our exposure to pollution control revenue bonds in the steel industry. For
additional Fund portfolio highlights, please refer to page 9.
Q HOW DO YOU FEEL ABOUT THE FUND'S PERFORMANCE DURING THE PAST 12 MONTHS?
A Strictly speaking, the Fund's performance was disappointing. Considering
the poor market conditions we faced during the period, however, we are
pleased with the Fund's performance compared to its benchmark, the Lehman
Brothers Municipal Bond Index. The total return for the 12 months ended November
30, 1999, was -0.37 percent(1) (Class A
6
<PAGE> 8
shares at net asset value), and the Fund's net asset value closed the reporting
period at $10.96 per Class A share, down from $11.66 at the beginning of the
period. The Fund's Class A share tax-exempt distribution rate as of November 30,
1999, was 5.84 percent(3), representing a taxable equivalent distribution rate
of 9.13 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 -1.07 percent during the same 12-month period. This
broad-based index of municipal bonds does not reflect any commissions or sales
charges that would be paid by an investor purchasing the securities or
investments it represents. Please refer to the footnotes and chart on page 3 for
additional Fund performance results. Past performance does not guarantee future
results.
Q WHAT OTHER FACTORS HAVE ADDED TO THE FUND'S LONG-TERM SUCCESS?
A We believe our strengths, particularly in primary market research, have
helped the Fund's performance. For the second consecutive year, one of our
analysts was recognized for research capabilities in the latest Smith's
Research & Ratings Review analyst survey. This industry publication surveys
1,000 of the largest institutional investors in order to recognize the
industry's top bond analysts. Historically, the Fund has had particularly strong
performance in health-care related issues. Therefore, it comes as no surprise
that our award-winning analyst specializes in the tax-exempt health-care sector.
Q WHAT IS YOUR OUTLOOK FOR THE FUND IN THE NEXT SIX MONTHS?
A Overall, we expect a more positive environment for municipal bonds, but we
don't plan to change our investment approach. We will continue to focus on
our strengths: doing primary market research and finding value in nonrated
bonds. Historically, the Fund has succeeded over the long run by utilizing this
strategy, and we will continue to invest this way because we believe it works.
Over time, we believe these strengths should continue to help the Fund achieve
its investment objective--providing shareholders with a high level of interest
income exempt from federal income tax.
<TABLE>
<S> <C>
[SIG.] [SIG.]
Peter W. Hegel Wayne D. Godlin
Chief Investment Officer Portfolio Manager
Fixed Income Investments
</TABLE>
* 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, 1999. The ratings are
subject to change every month. Past performance is no guarantee of future
results. Morningstar ratings are calculated from the fund's 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.
7
<PAGE> 9
GLOSSARY OF TERMS
CLASS A SHARES: When Class A shares of a fund are purchased, the share price
includes the net asset value plus a one-time sales charge (or "load"). In
most cases, there is no redemption fee (contingent deferred sales charge).
CREDIT RATING: An evaluation of an issuer's credit history and capability of
repaying obligations. Standard & Poor's and Moody's Investors Service are
two companies that assign bond ratings. Standard & Poor's ratings range form
a high of AAA to a low of D, while Moody's ratings range from a high of Aaa
to a low of C.
CREDIT SPREAD: Also called quality spread, the difference in yield between
higher-quality issues (such as Treasury securities) and lower-quality
issues. Normally, lower-quality issues provide higher yields to compensate
investors for the additional credit risk.
MUNICIPAL BOND: A debt security issued by a state, municipality, or other state
or local government entity to finance capital expenditures of public
projects, such as the construction of highways, public works, or school
buildings. Interest on public-purpose municipal bonds is exempt from federal
income taxes and, in some states, from state and local income taxes.
PRIMARY MARKET: The dealer-conducted process of buying new issues from local
municipalities and selling them to the public.
YIELD: The annual rate of return on an investment, expressed as a percentage.
8
<PAGE> 10
PORTFOLIO HIGHLIGHTS
VAN KAMPEN HIGH YIELD MUNICIPAL FUND
TOP FIVE STATES AS OF NOVEMBER 30, 1999*
<TABLE>
<S> <C>
Pennsylvania.............. 10.5%
Florida................... 9.0%
Massachusetts............. 7.9%
Illinois.................. 7.8%
California................ 5.4%
</TABLE>
CREDIT QUALITY*
AS OF NOVEMBER 30, 1999
PIE CHART
<TABLE>
<CAPTION>
AAA/AAA AA/AA A/A BBB/BAA BB/BA B/B CCC/CAA
------- ----- --- ------- ----- --- -------
<S> <C> <C> <C> <C> <C> <C> <C>
As of November 30, 3.6 1.0 2.4 4.5 4.7 1.0 0.1
1999
<CAPTION>
NON-RATED
---------
<S> <C>
As of November 30, 83.0
1999
</TABLE>
AS OF NOVEMBER 30, 1998
PIE CHART
<TABLE>
<CAPTION>
AAA/AAA AA/AA A/A BBB/BAA BB/BA B/B CCC/CAA
------- ----- --- ------- ----- --- -------
<S> <C> <C> <C> <C> <C> <C> <C>
As of November 30,
1998 2.6 1.0 1.5 3.5 4.8 1.0 0.1
<CAPTION>
NON-RATED
---------
<S> <C>
As of November 30,
1998 85.8
</TABLE>
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.
DIVIDEND HISTORY FOR THE PERIOD ENDED NOVEMBER 30, 1999
[BAR GRAPH]
<TABLE>
<CAPTION>
DIVIDEND
--------
<S> <C>
Dec 1998 0.058
Jan 1999 0.056
Feb 1999 0.056
Mar 1999 0.056
Apr 1999 0.056
May 1999 0.056
Jun 1999 0.056
Jul 1999 0.056
Aug 1999 0.056
Sep 1999 0.056
Oct 1999 0.056
Nov 1999 0.056
</TABLE>
The dividend history represents past performance of the Fund's Class A shares
and does not predict the Fund's future distributions.
TOP FIVE PORTFOLIO INDUSTRIES*
BAR GRAPH
<TABLE>
<CAPTION>
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------- -----------------
<S> <C> <C>
Other Care 23.1 22.3
Industrial Revenue 17.5 16.4
Health Care 17.1 17.2
Multi-Family Housing 14.6 16.4
Tax District 6.3 7.7
</TABLE>
*As a Percentage of Long-Term Investments
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 97.7%
ALABAMA 1.0%
$1,000 Alabama Special Care Facs Fin Auth
Montgomery Rev....................... 6.300% 06/01/24 $ 900,780
5,000 Alabama St Indl Dev Auth Solid Waste
Disp Rev Pine City Fiber Co.......... 6.450 12/01/23 4,828,650
2,000 Alabama St Space Science Exhibit
Commission Ctfs Partn................ 6.875 10/01/24 1,905,980
750 Vincent, AL Indl Dev Brd Shelby Motel
Group Inc Proj....................... 10.500 09/01/16 731,175
4,000 West Jefferson Cnty, AL Amusement &
Pub Pk Auth First Mtg Visionland
Proj................................. 6.375 02/01/29 3,197,520
3,255 West Jefferson Cnty, AL Amusement &
Pub Pk Auth First Mtg Visionland Proj
(Prerefunded @ 12/01/06)............. 8.000 12/01/26 3,905,284
--------------
15,469,389
--------------
ALASKA 0.7%
5,000 Alaska St Hsg Fin Corp Genl Mtg Ser A
(MBIA Insd).......................... 6.000 06/01/49 4,781,650
3,000 Juneau, AK City & Borough Nonrecourse
Rev.................................. 6.875 12/01/25 2,855,730
2,250 Seward, AK Rev AK Sealife Cent
Proj................................. 7.650 10/01/16 2,295,450
--------------
9,932,830
--------------
ARIZONA 2.2%
1,190 Casa Grande, AZ Indl Dev Auth Rfdg... 8.250 12/01/15 1,200,841
2,843 Chandler, AZ Indl Dev Auth Rev
Chandler Fin Cent Proj Ser 1986
(c).................................. 7.250 12/01/16 2,160,811
3,000 Flagstaff, AZ Indl Dev Auth Rev Sr
Living Cmnty Northern AZ Ser A....... 6.200 09/01/28 2,632,530
5,500 Maricopa Cnty, AZ Indl Dev Auth
Multi-Family Hsg Rev (d)............. 6.625 07/01/33 5,160,265
3,000 Maricopa Cnty, AZ Indl Dev Auth Sr
Living Fac Rev....................... 7.750 04/01/15 3,014,310
2,500 Peoria, AZ Indl Dev Auth Rev Sierra
Winds Life Ser A Rfdg................ 6.500 08/15/31 2,282,400
1,000 Phoenix, AZ Indl Dev Auth Airport Fac
Rev America West Airls Inc Proj...... 6.250 06/01/19 949,328
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ARIZONA (CONTINUED)
$3,000 Pima Cnty, AZ Indl Dev Auth
Multi-Family Rev (e)................. 6.625% 10/01/28 $ 2,845,050
2,000 Pima Cnty, AZ Indl Dev Auth Rev La
Posada at Park Cent Ser A............ 7.000 05/15/27 1,969,960
3,600 Pima Cnty, AZ Indl Dev Auth Sr Living
Catalina Vlg Rev Ser A............... 6.500 07/01/29 3,025,728
1,025 Pinal Cnty, AZ Indl Dev Auth Casa
Grande Regl Med Cent Proj Ser A...... 8.125 12/01/22 1,082,769
475 Pinal Cnty, AZ Indl Dev Auth Casa
Grande Regl Med Cent Proj Ser B...... 8.125 12/01/22 501,771
2,115 Red Hawk Canyon Cmnty Facs Dist No 2
AZ Dist Assmt Rev.................... 6.500 12/01/12 2,004,131
1,035 Scottsdale, AZ Indl Dev Auth Rev
First Mtg Westminster Vlg Ser A
Rfdg................................. 8.000 06/01/11 1,104,821
2,000 Scottsdale, AZ Indl Dev Auth Rev
First Mtg Westminster Vlg Ser A
Rfdg................................. 8.250 06/01/15 2,148,480
1,845 Tuscon, AZ Indl Dev Auth Rev Clarion
Santa Rita Hotel Ser A Rfdg (e)...... 6.375 12/01/16 1,703,876
--------------
33,787,071
--------------
ARKANSAS 0.3%
4,065 Jackson Cnty, AR Hlthcare Fac Brd
First Mtg Hosp Rev Newport Hosp &
Clinic Inc........................... 7.375 11/01/11 3,985,976
--------------
CALIFORNIA 5.3%
1,255 Abag Fin Auth For Nonprofit Corps CA
Ctfs Partn........................... 6.375 11/15/15 1,184,293
1,455 Abag Fin Auth For Nonprofit Corps CA
Ctfs Partn........................... 6.375 11/15/28 1,321,955
1,210 California Edl Fac Auth Rev Pacific
Graduate Sch of Psych................ 7.600 11/01/21 1,242,489
2,315 California Edl Fac Auth Rev Pacific
Graduate Sch of Psych................ 8.000 11/01/21 2,432,810
1,000 California Hlth Facs Fin Auth Rev
Hospital of The Good Samaritan....... 7.000 09/01/21 1,006,380
5,000 California Statewide Cmntys Dev Auth
Spl Fac United Airls Ser A........... 5.700 10/01/33 4,495,400
2,850 Contra Costa Cnty, CA Multi-Family
Hsg Rev.............................. 6.750 12/01/30 2,691,739
2,000 Corona, CA Ctfs Partn Vista Hosp Sys
Inc Ser B............................ 9.500 07/01/20 1,845,520
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$2,500 Corona, CA Ctfs Partn Vista Hosp Sys
Inc Ser C............................ 8.375% 07/01/11 $ 2,332,900
2,250 Culver City, CA Redev Fin Auth Rev
Subordinated Tax Allocation Ser B
Rfdg................................. 6.250 11/01/25 2,193,548
1,500 Davis, CA Pub Fac Fin Auth Loc Agy
Rev.................................. 6.600 09/01/25 1,507,830
1,500 Folsom, CA Spl Tax Cmnty Fac Dist No
7 Rfdg............................... 7.250 09/01/21 1,572,585
1,000 Fontana, CA Spl Tax Cmnty Facs Dist
11 Ser A Rfdg........................ 6.500 09/01/28 941,240
2,000 Fontana, CA Spl Tax Cmnty Facs Dist
11 Ser B............................. 6.500 09/01/28 1,882,480
2,660 Fresno, CA Ctfs Partn................ 8.500 05/01/16 2,751,717
840 Healdsburg, CA Ctfs Partn Nuestro
Hosp Inc............................. 6.250 11/01/08 793,086
2,500 Healdsburg, CA Ctfs Partn Nuestro
Hosp Inc............................. 6.375 11/01/28 2,199,875
975 Indio, CA Pub Fin Auth Rev Tax
Increment............................ 6.500 08/15/27 960,716
4,530 Lake Elsinore, CA Pub Fin Auth Loc
Agy Rev.............................. 7.100 09/01/20 4,636,999
1,500 Los Angeles, CA Cmnty Fac Dist Spl
Tax No 3 Cascades Business Pk........ 6.400 09/01/22 1,469,040
4,500 Millbrae, CA Residential Fac Rev
Magnolia of Millbrae Proj Ser A...... 7.375 09/01/27 4,539,105
1,000 Moreno Vly, CA Spl Tax Towngate Cmnty
Fac Dist 87-1........................ 7.125 10/01/23 1,025,800
2,000 Perris, CA Pub Fin Auth Loc Agy Rev
Ser D................................ 7.875 09/01/25 2,123,860
1,500 Rancho Cucamonga, CA Cmnty Fac Dist
Spl Tax No 88-2...................... 8.250 09/01/19 1,719,045
100 Rancho Cucamonga, CA Cmnty Fac Dist
Spl Tax No 88-2...................... 8.000 09/01/20 113,774
2,965 Reedley, CA Ctfs Partn............... 7.500 10/01/26 3,045,351
3,105 Richmond, CA Redev Agy Multi-Family
Rev Ser A............................ 7.500 09/01/23 3,165,237
3,850 Riverside Cnty, CA Air Force Vlg West
Inc Ser A Rfdg (Prerefunded @
06/15/02) (a)........................ 8.125 06/15/20 4,265,261
4,000 Sacramento, CA City Fin Auth Rev Sr
Convention Cntr Hotel Ser A.......... 6.250 01/01/30 3,725,720
1,945 Sacramento, CA Spl Tax Cmnty Fac Dist
No 97-1 Ser A........................ 6.700 09/01/17 1,971,802
2,000 Sacramento, CA Spl Tax Cmnty Fac Dist
No 97-1 Ser A........................ 6.750 09/01/27 2,010,480
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$2,500 San Bernardino, CA Assoc Cmntys Fin
Auth Hlthcare Ctfs Partn............. 6.900% 05/01/27 $ 2,191,075
3,120 San Jose, CA Multi-Family Hsg Rev
Helzer Courts Apts Ser A (e)......... 6.400 12/01/41 2,867,436
1,900 San Luis Obispo, CA Ctfs Partn Vista
Hosp Sys Inc......................... 8.375 07/01/29 1,717,657
1,995 Simi Valley, CA Cmnty Dev Agy Coml
Sycamore Plaza II Rfdg............... 6.000 09/01/12 2,028,037
2,000 Vallejo, CA Ctfs Partn Touro Univ.... 7.250 06/01/16 2,008,500
2,000 Ventura, CA Port Dist Ctfs Partn..... 6.375 08/01/28 1,891,940
--------------
79,872,682
--------------
COLORADO 3.4%
2,000 Arvada, CO Multi-Family Rev Hsg
Arvada Nightingale Proj Rfdg......... 6.250 12/01/18 1,881,600
1,060 Berry Creek Metro Dist CO Rfdg....... 7.300 12/01/12 1,099,326
1,767 Bowles Metro Dist CO (Prerefunded @
12/01/05)............................ 7.750 12/01/15 2,010,599
1,000 Colorado Hlth Fac Auth Rev Baptist
Home Assn Ser A...................... 6.250 08/15/13 962,090
2,250 Colorado Hlth Fac Auth Rev Baptist
Home Assn Ser A...................... 6.375 08/15/24 2,053,642
1,225 Colorado Hlth Fac Auth Rev Sr Living
Fac Eaton Terrace Ser A.............. 6.800 07/01/09 1,198,822
3,250 Colorado Hlth Fac Auth Rev Sr Living
Fac Eaton Terrace Ser A.............. 7.250 07/01/22 3,117,660
1,500 Colorado Hlth Fac Auth Rev Christian
Living Campus Proj................... 9.000 01/01/25 1,668,975
2,000 Colorado Hlth Fac Auth Rev Shalom Pk
Proj Rfdg & Impt..................... 7.250 12/15/25 2,027,820
1,100 Colorado Hlth Facs Auth Hlth &
Residential Care Facs Rev............ 6.000 07/01/29 947,518
2,000 Colorado Hsg Fin Auth Single Family
Pgm Sr B 2........................... 6.800 04/01/30 2,108,000
1,250 Cordillera Metro Dist, CO Eagle Cnty
(Prerefunded @ 12/01/04)............. 8.250 12/01/13 1,460,450
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COLORADO (CONTINUED)
$3,000 Cottonwood Wtr & Sanitation Dist CO
Ser A Rfdg........................... 7.750% 12/01/20 $ 3,080,580
1,055 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.375 03/01/09 1,116,644
1,130 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.500 03/01/14 1,189,212
815 Denver, CO City & Cnty Indl Dev Rev
Jewish Cmnty Cent Proj............... 7.875 03/01/19 864,764
1,815 Denver, CO Urban Renewal Auth Tax
Increment Rev South Bdwy/Montgomery
Ward................................. 8.500 05/01/16 1,960,381
2,000 Eagle Cnty, CO Air Term Corp Rev Arpt
Term Proj............................ 7.500 05/01/21 2,068,840
1,900 Eagle Riverview Affordable Hsg Corp,
CO Multi-Family Rev.................. 6.300 07/01/29 1,802,568
1,735 Eaglebend, CO Affordable Hsg Corp
Multi-Family Rev Hsg Proj............ 6.400 07/01/17 1,729,431
1,500 Eaglebend, CO Affordable Hsg Corp
Multi-Family Rev Hsg Proj............ 6.450 07/01/21 1,494,705
2,500 Hyland Hills, CO Metro Pk & Rec Dist
Spl Rev Ser A (Prerefunded @
12/15/02)............................ 8.625 12/15/12 2,834,625
3,990 Lafayette, CO Indl Dev Rev Rocky
Medium Term Note Instr Proj Ser A.... 7.000 10/01/18 3,697,693
500 Lafayette, CO Indl Dev Rev Rocky
Medium Term Note Instr Proj Ser B.... 6.125 10/01/08 479,815
905 Landmark Metro Dist, CO (Prerefunded
@ 06/01/00).......................... 8.750 12/01/05 932,367
4,220 Northern Metro Dist, CO Adams Cnty
Rfdg (e)............................. 6.500 12/01/16 4,258,571
140 Skyland Metro Dist, CO Gunnison Cnty
Rfdg (Var Rate Cpn).................. 8.250 12/01/08 99,826
750 Snowmass Vlg, CO Multi-Family Hsg Rev
Ser A Rfdg........................... 8.000 09/01/14 776,655
660 Superior, CO Metro Dist No 2 Ser A
Rfdg................................. 7.250 12/01/02 687,205
2,000 Telluride, CO Hsg Auth Hsg Rev
Shandoka Apts Proj Rfdg.............. 7.875 06/01/17 2,067,960
--------------
51,678,344
--------------
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONNECTICUT 1.6%
$ 500 Connecticut St Dev Auth Mystic
Marinelife Aquar Proj A.............. 7.000% 12/01/27 $ 507,495
2,110 Connecticut St Dev Auth First Mtg
Gross Rev Hlthcare Proj CT Baptist
Homes Inc Proj....................... 8.750 09/01/12 2,369,213
1,500 Connecticut St Dev Auth First Mtg
Gross Rev Hlthcare Proj CT Baptist
Homes Inc Proj....................... 9.000 09/01/22 1,693,650
1,325 Connecticut St Dev Auth Hlthcare Rev
Indpt Living Proj Ser B (Prerefunded
@ 07/01/03).......................... 8.000 07/01/17 1,488,002
3,360 Connecticut St Dev Auth Indl Dev Rev
Watson Foods Co Inc Proj............. 5.900 06/01/28 3,086,933
2,500 Connecticut St Hlth & Edl Fac Auth
Rev Tolland Cnty Hlthcare Inc Ser
A.................................... 9.200 07/01/21 2,662,725
2,000 Connecticut St Hlth & Edl Fac Auth
Rev Tolland Cnty Hlthcare Inc Ser
A.................................... 6.875 07/01/27 1,952,780
300 Connecticut St Hlth & Edl Facs Auth
Rev.................................. 6.875 07/01/17 301,542
5,000 Greenwich, CT Hsg Auth Multi-Family
Rev Hsg Greenwich Close Ser A (a).... 6.350 09/01/27 4,708,350
1,690 Greenwich, CT Hsg Auth Multi-Family
Rev Hsg Greenwich Close Ser B........ 7.500 09/01/27 1,608,643
1,400 Manchester, CT Redev Agy Multi-Family
Mtg Rev Bennet Hsg Dev Rfdg.......... 7.200 12/01/18 1,439,662
2,070 New Haven, CT Indl Fac Rev Adj Govt
Cent Thermal Energies................ 7.250 07/01/09 2,088,858
--------------
23,907,853
--------------
DELAWARE 0.6%
2,215 Delaware St Econ Dev Auth Indl Dev
Rev First Mtg Dover Hlthcare Rfdg.... 7.875 04/01/08 2,307,233
940 Delaware St Econ Dev Auth Rev
Osteopathic Hosp Assn of DE Ser A
(Prerefunded @ 07/01/04)............. 9.500 01/01/22 1,126,167
2,055 Sussex Cnty, DE Assisted Living Fac
Rev Heritage At Milford Proj......... 7.250 07/01/29 2,010,772
3,500 Wilmington, DE Multi-Family Rent Rev
Hsg Electra Arms Sr Assoc Proj....... 6.250 06/01/28 3,181,745
--------------
8,625,917
--------------
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA 0.3%
$1,545 District of Columbia Rev Methodist
Home Issue........................... 6.000% 01/01/29 $ 1,331,929
3,500 District of Columbia Rev Natl Pub
Radio Ser A.......................... 7.700 01/01/23 3,681,650
--------------
5,013,579
--------------
FLORIDA 8.8%
990 Arbor Greene Cmnty Dev Dist FL Spl
Assmt Rev............................ 6.300 05/01/19 939,550
645 Atlantic Beach, FL Rev Fleet Landing
Proj Ser A Rfdg & Impt............... 7.500 10/01/02 693,878
2,085 Atlantic Beach, FL Rev Fleet Landing
Proj Ser A Rfdg & Impt............... 7.875 10/01/08 2,419,163
1,500 Bay Cnty, FL Hosp Sys Rev Bay Med
Cent Proj Rfdg (Prerefunded @
10/01/04)............................ 8.000 10/01/12 1,699,425
500 Bay Cnty, FL Hosp Sys Rev Bay Med
Cent Proj Rfdg (Prerefunded @
10/01/04)............................ 8.000 10/01/19 579,640
1,980 Bayside Impt Cmnty Dev Dist, FL Ser
A.................................... 6.300 05/01/18 1,871,793
350 Bayside Impt Cmnty Dev Dist, FL Ser
B.................................... 6.375 05/01/18 331,849
970 Bobcat Trail Cmnty, FL Dev Dist Cap
Impt Rev............................. 6.750 05/01/04 964,646
1,300 Bobcat Trail Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.500 05/01/19 1,319,383
3,335 Boca Raton, FL Hsg Auth Mtg Hsg Rev
First Lien Banyan Place Sr Living Ser
A.................................... 7.150 04/01/31 3,133,533
910 Boca Raton, FL Hsg Auth Mtg Hsg Rev
Second Lien Banyan Place Sr Living
Ser B................................ 8.700 10/01/32 870,597
2,840 Championsgate Cmnty Dev Dist, FL Cap
Impt Rev Ser A....................... 6.250 05/01/20 2,661,307
150 Charlotte Cnty, FL Indl Dev Auth Rev
Beverly Enterprises Rfdg............. 10.000 06/01/11 160,718
1,260 Collier Cnty, FL Indl Dev Auth
Retirement Rental Hsg Rev............ 10.750 03/01/03 1,352,018
4,285 Fishhawk Cmnty, FL Dev Dist Spl Assmt
Rev.................................. 7.625 05/01/18 4,424,005
4,000 Florida Hsg Fin Corp Rev Hsg Beacon
Hill Apts Ser C...................... 6.610 07/01/38 3,762,240
4,000 Florida Hsg Fin Corp Rev Hsg Cypress
Trace Apts Ser G..................... 6.600 07/01/38 3,779,600
4,000 Florida Hsg Fin Corp Rev Hsg
Westbrook Apts Ser U1................ 6.450 01/01/39 3,647,720
</TABLE>
See Notes to Financial Statements
16
<PAGE> 18
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$5,000 Florida Hsg Fin Corp Rev Hsg
Westchase Apts Ser B (a)............. 6.610% 07/01/38 $ 4,724,750
795 Fort Walton Beach, FL Indl Dev Rev
First Mtg Fort Walton Beach Venture
Proj................................. 10.500 12/01/16 813,706
1,000 Heritage Harbor Cmnty Dev Dist FL Rev
Recntl............................... 7.750 05/01/19 958,880
1,000 Heritage Harbor Cmnty Dev Dist FL Rev
Spl Assmt Ser A...................... 6.700 05/01/19 970,910
960 Hernando Cnty, FL Indl Dev Rev
Beverly Enterprises Rfdg............. 10.000 09/01/11 1,035,293
3,000 Hialeah Gardens, FL Indl Dev Rev
Waterford Convalescent Ser A Rfdg.... 8.250 12/01/14 3,172,920
1,500 Homestead, FL Indl Dev Rev Brookwood
Gardens Cent Proj Ser A Rfdg......... 8.250 12/01/14 1,586,460
1,260 Lake Bernadette, FL Cmnty Dev Dist
Spl Assmt Rev Ser A.................. 8.000 05/01/17 1,300,874
2,385 Lake Saint Charles, FL Cmnty Dev Dist
Spl Assmt Rev........................ 7.875 05/01/17 2,454,737
2,350 Largo, FL Sun Coast Hlth Sys Rev
Hosp................................. 6.300 03/01/20 2,142,307
680 Lee Cnty, FL Indl Dev Auth Econ Rev
Encore Nursing Cent Partn Rfdg....... 8.125 12/01/07 719,991
5,000 Leon Cnty, FL Edl Facs Auth Rev
Southgate Residence Hall Ser A
Rfdg................................. 6.750 09/01/28 4,842,400
4,055 Mount Dora, FL Hlth Fac Auth Hlth
Rev.................................. 7.125 08/15/21 4,060,231
1,000 North Springs, FL Impt Dist Spl Assmt
Rev.................................. 7.000 05/01/19 1,016,740
2,590 Northern Palm Beach Cnty, FL Impt
Dist Wtr Ctl & Impt Unit Dev 16
Rfdg................................. 7.500 08/01/24 2,590,596
3,000 Northern Palm Beach Cnty, FL Impt
Dist Wtr Ctl & Impt Unit Dev......... 7.200 08/01/16 3,150,300
2,500 Northern Palm Beach Cnty, FL Impt
Dist Wtr Ctl & Impt Unit Dev......... 7.300 08/01/27 2,638,275
2,000 Orange Cnty, FL Hlth Fac Auth Rev
Westminster Community Care........... 6.600 04/01/24 1,862,880
1,000 Orange Cnty, FL Hlth Fac Auth Rev
Westminster Community Care........... 6.500 04/01/12 972,260
400 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.125 07/01/06 419,096
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<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 $ 2,221,325
1,325 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.625 07/01/20 1,464,059
1,250 Orange Cnty, FL Hlth Fac Auth Rev
First Mtg Orlando Lutheran Twr
Rfdg................................. 8.750 07/01/26 1,374,862
8,000 Orange Cnty, FL Hlth Facs Auth Rev
Hosp Regl Hlthcare Sys Ser E......... 6.000 10/01/26 7,745,600
2,360 Orange Cnty, FL Hsg Fin Auth Hsg
Alhambra Trace Apts Proj Ser C....... 7.375 04/01/28 2,241,906
2,440 Orange Cnty, FL Hsg Fin Auth
Multi-Family Rev Mtg Hands Inc Proj
Ser A................................ 7.875 10/01/15 2,596,965
2,285 Orange Cnty, FL Hsg Fin Auth
Multi-Family Rev Mtg Hands Inc Proj
Ser A................................ 8.000 10/01/25 2,445,887
395 Orange Cnty, FL Indl Dev Auth Rev
Beverly Enterprises Proj Rfdg........ 9.250 08/01/10 420,466
2,995 Overoaks, FL Cmnty Dev Dist Cap Impt
Rev.................................. 8.250 05/01/17 3,170,387
3,000 Pinellas Cnty, FL Edl Fac Auth Rev
College Harbor Proj Ser A............ 8.250 12/01/21 3,079,380
1,000 Piney Z Cmnty Dev Dist FL Cap Impt
Rev Ser A............................ 7.250 05/01/19 990,170
1,200 Piney Z Cmnty Dev Dist FL Cap Impt
Rev Ser B............................ 6.500 05/01/02 1,184,808
750 Plantation, FL Hlth Fac Auth Rev
Covenant Retirement Cmnty Inc
(Prerefunded @ 12/01/02)............. 7.750 12/01/22 828,307
250 Santa Rosa Cnty, FL Indl Dev Auth Rev
First Mtg Sandy Ridge Care Cent...... 10.500 04/01/16 252,885
1,500 Sarasota Cnty, FL Hlth Fac Auth Hlth
Fac Sunnyside Pptys.................. 6.700 07/01/25 1,368,765
1,000 Sarasota Cnty, FL Hlth Fac Auth Rev
Hlthcare Jewish Hsg Council.......... 7.375 07/01/16 916,110
1,000 Sarasota Cnty, FL Hlth Fac Auth Rev
Hlthcare Manatee Jewish Rfdg......... 7.000 07/01/16 944,140
1,000 St John's Cnty, FL Indl Dev Auth
Hlthcare Rev Bayview Proj Ser A...... 7.100 10/01/16 1,012,610
2,000 St John's Cnty, FL Indl Dev Auth
Hlthcare Rev Bayview Proj Ser A...... 7.100 10/01/26 2,029,180
</TABLE>
See Notes to Financial Statements
18
<PAGE> 20
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$2,230 Tamarac, FL Indl Dev Rev Sun Belt
Precision Prods Inc.................. 6.500% 08/01/17 $ 2,157,525
1,645 Tampa Palms, FL Open Space & Tran
Cmnty Dev Dist Rev Cap Impt Area 7
Proj................................. 8.500 05/01/17 1,751,530
2,150 Tampa Palms, FL Open Space & Transn
Cmnty Dev Dist Rev Cap Impt Area 7
Proj................................. 7.500 05/01/18 2,205,599
3,000 Tampa, FL Hosp Rev Cap Impt H Lee
Moffitt Ser A........................ 5.750 07/01/29 2,774,040
3,000 University Square Cmnty Dev Dist, FL
Capital Impt Rev..................... 6.750 05/01/20 2,978,430
710 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.125 11/01/06 776,406
1,760 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.500 11/01/16 1,962,259
2,000 Volusia Cnty, FL Indl Dev Auth
Bishops Glen Proj Rfdg............... 7.625 11/01/26 2,325,180
1,680 Westchase East Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.500 05/01/17 1,732,046
1,960 Westchase East Cmnty, FL Dev Dist Cap
Impt Rev............................. 7.300 05/01/18 2,009,902
--------------
133,005,400
--------------
GEORGIA 2.1%
1,100 Americus Sumter Cnty, GA Hosp Auth
Rev South GA Methodist Ser A Rfdg.... 6.250 05/15/19 1,002,683
1,000 Americus Sumter Cnty, GA Hosp Auth
Rev South GA Methodist Ser A Rfdg.... 6.375 05/15/29 904,690
1,640 Athens Clarke Cnty, GA Residential
Care Fac for the Elderly Auth Rev.... 6.350 10/01/17 1,536,910
1,720 Athens Clarke Cnty, GA Residential
Care Fac for the Elderly Auth Rev.... 6.375 10/01/27 1,565,492
3,000 Atlanta, GA Urban Residential Fin
Auth Multi-Family Mtg Rev Ser C...... 2.400 04/01/26 450,000
3,000 Atlanta, GA Urban Residential Fin
Auth Multi-Family Hsg Renaissance on
Peachtree Apts Proj Ser 85........... 8.500 12/01/10 3,269,520
</TABLE>
See Notes to Financial Statements
19
<PAGE> 21
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA (CONTINUED)
$3,300 Atlanta, GA Urban Residential Fin
Auth Multi-Family Rev Proj Ser A..... 6.750% 07/01/30 $ 3,132,723
375 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 7.625 10/01/06 395,404
1,500 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 8.200 10/01/16 1,629,930
1,500 Coweta Cnty, GA Residential Care Fac
For The Elderly Auth Rev First Lien
Wesley Woods Ser A................... 8.250 10/01/26 1,633,965
500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.000 10/01/08 470,380
1,500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.250 10/01/18 1,349,145
1,500 Forsyth Cnty, GA Hosp Auth Rev GA
Baptist Hlthcare Sys Proj............ 6.375 10/01/28 1,328,085
3,000 Fulton Cnty, GA Dev Auth Spec Fac Rev
Delta Airls Inc Proj................. 5.450 05/01/23 2,573,880
1,520 Fulton Cnty, GA Hsg Auth Multi-Family
Hsg Rev.............................. 6.375 02/01/08 1,477,516
4,000 Fulton Cnty, GA Hsg Auth Multi-Family
Hsg Rev.............................. 6.500 02/01/28 3,797,200
1,175 Fulton Cnty, GA Residential Care Fac
Elderly Auth Rev..................... 6.900 07/01/19 1,093,467
1,810 Fulton Cnty, GA Residential Care Sr
Lien RHA Asstd Living Ser A.......... 7.000 07/01/29 1,665,815
300 Richmond Cnty, GA Dev Auth Nursing
Home Rev Beverly Enterprises GA Proj
Rfdg................................. 8.750 06/01/11 320,763
2,500 Rockdale Cnty, GA Dev Auth Solid
Waste Disp Visy Paper Inc Proj....... 7.500 01/01/26 2,590,850
--------------
32,188,418
--------------
HAWAII 0.2%
805 Hawaii Cnty, HI Impt Dist No 17 Spl
Assmt Kaloko Subdivision............. 9.500 08/01/11 844,332
3,205 Hawaii St Dept Trans Spl Fac
Continental Airls Inc................ 5.625 11/15/27 2,740,371
--------------
3,584,703
--------------
</TABLE>
See Notes to Financial Statements
20
<PAGE> 22
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS 7.6%
$1,475 Bedford Park, IL Tax Increment Rev
71st & Cicero Proj Rfdg.............. 7.375% 01/01/12 $ 1,531,507
1,445 Bedford Park, IL Tax Increment Rev
Mark IV Proj (Prerefunded @
03/01/02)............................ 9.750 03/01/12 1,618,097
930 Bedford Park, IL Tax Increment Rev Sr
Lien Bedford City Sq Proj............ 9.250 02/01/12 1,012,937
2,720 Broadview, IL Tax Increment Rev Sr
Lien................................. 8.250 07/01/13 3,117,582
250 Carol Stream, IL First Mtg Rev
Windsor Park Manor Proj.............. 7.000 12/01/13 251,338
2,000 Carol Stream, IL First Mtg Rev
Windsor Park Manor Proj.............. 7.200 12/01/14 2,032,020
1,000 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev American Airls Inc Proj Ser A.... 8.200 12/01/24 1,128,140
540 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev American Airls Inc Proj Ser A.... 7.875 11/01/25 561,557
3,500 Chicago, IL O'Hare Intl Arpt Spl Fac
Rev United Airls Inc................. 8.500 05/01/18 3,612,630
1,500 Chicago, IL Tax Increment............ 7.250 01/01/14 1,546,905
3,000 Clay Cnty, IL Hosp Rev............... 5.900 12/01/28 2,553,510
3,000 Crestwood, IL Tax Increment Rev
Rfdg................................. 7.250 12/01/08 3,115,080
2,000 Godfrey, IL Rev United Methodist Vlg
Ser A................................ 5.875 11/15/29 1,686,760
500 Hodgkins, IL Tax Increment Ser A
Rfdg................................. 9.500 12/01/09 552,595
4,000 Hodgkins, IL Tax Increment Ser A
Rfdg................................. 7.625 12/01/13 4,254,040
3,000 Hoopeston, IL Hosp Cap Impt Rev
Hoopeston Cmnty Mem Hosp Rfdg........ 6.550 11/15/29 2,761,560
3,500 Huntley, IL Increment Alloc Rev
Huntley Redev Proj Ser A............. 8.500 12/01/15 3,893,435
3,000 Huntley, IL Spl Svc Area No 10 Ser
A.................................... 6.500 03/01/29 2,829,870
2,450 Huntley, IL Spl Svc Area No 6........ 6.750 02/01/25 2,359,473
1,000 Huntley, IL Spl Svc Area No 7........ 6.300 03/01/28 917,040
500 Illinois Dev Fin Auth Econ Dev Rev
Latin School of Chicago Proj......... 5.650 08/01/28 450,260
2,470 Illinois Dev Fin Auth Hlth Fac Rev
Cmnty Living Options................. 7.125 03/01/10 2,547,311
</TABLE>
See Notes to Financial Statements
21
<PAGE> 23
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 625 Illinois Dev Fin Auth Rev Cmnty Fac
Clinic Altgeld Proj.................. 8.000% 11/15/06 $ 657,431
1,750 Illinois Dev Fin Auth Rev Cmnty Fac
Clinic Altgeld Proj.................. 8.000 11/15/16 1,834,630
2,000 Illinois Dev Fin Auth Rev Debt
Restructure-East Saint Louis......... 7.375 11/15/11 2,184,020
4,000 Illinois Edl Fac Auth Rev Peace Mem
Ministries Proj...................... 7.500 08/15/26 4,130,800
1,500 Illinois Edl Facs Auth Rev Lifelink
Corp Oblig Group Rfdg................ 5.850 02/15/20 1,298,775
4,295 Illinois Edl Facs Auth Rev Lifelink
Corp Oblig Group Rfdg................ 5.700 02/15/24 3,599,682
2,000 Illinois Hlth Fac Auth Rev Central
Baptist Home Proj.................... 7.125 11/15/29 1,950,440
1,475 Illinois Hlth Fac Auth Rev Covenant
Retirement Cmntys Ser A.............. 7.600 12/01/12 1,581,554
240 Illinois Hlth Fac Auth Rev Fairview
Oblig Group Ser A.................... 7.125 08/15/17 244,714
3,000 Illinois Hlth Fac Auth Rev Fairview
Oblig Group Ser A Rfdg............... 7.400 08/15/23 3,102,450
2,250 Illinois Hlth Fac Auth Rev Fairview
Residence Rockford A................. 6.500 08/15/29 2,066,648
2,000 Illinois Hlth Fac Auth Rev OSF
Healthcare Sys....................... 6.250 11/15/29 1,951,040
3,250 Illinois Hlth Fac Auth Rev Covenant
Retirement Cmntys Ser A.............. 7.500 01/01/11 3,162,282
445 Illinois Hlth Fac Auth Rev Hinsdale
Ser C................................ 9.500 11/15/19 477,004
1,700 Illinois Hlth Fac Auth Rev Lifelink
Corp Oblig Group Ser B (Prerefunded @
02/15/05)............................ 8.000 02/15/25 1,949,152
4,000 Illinois Hlth Fac Auth Rev Lutheran
Home & Svcs Proj Ser A............... 7.500 08/15/26 4,107,160
1,000 Illinois Hlth Facs Auth Rev Bohemian
Tabor Hills Ser B Rfdg............... 5.900 11/15/24 859,540
8,944 Illinois St Real Estate Lease Ctfs
(a) (c).............................. 7.116 06/15/18 10,075,863
1,135 Jackson Park Hosp Fndtn Chicago, IL
Jackson Park Hosp.................... 9.000 03/01/05 1,073,903
</TABLE>
See Notes to Financial Statements
22
<PAGE> 24
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 995 Loves Park, IL First Mtg Rev Hoosier
Care Proj Ser A...................... 7.125% 06/01/34 $ 929,678
1,810 Mill Creek Wtr Reclamation Dist IL
Sew Rev.............................. 8.000 03/01/10 1,958,746
1,080 Mill Creek Wtr Reclamation Dist IL
Wtrwks Rev........................... 8.000 03/01/10 1,168,754
2,480 Palatine, IL Tax Increment Rev
Rand/Dundee Cent Proj (Prerefunded @
01/01/07)............................ 7.750 01/01/17 2,833,648
765 Peoria, IL Spl Tax Weaverridge Spl
Svc Area............................. 7.625 02/01/08 797,444
2,050 Peoria, IL Spl Tax Weaverridge Spl
Svc Area............................. 8.050 02/01/17 2,167,424
4,100 Robbins, IL Res Recov Rev............ 8.375 10/15/16 2,182,840
1,265 Round Lake Beach, IL Tax Increment
Rev Rfdg............................. 7.200 12/01/04 1,331,438
2,500 Round Lake Beach, IL Tax Increment
Rev Rfdg............................. 7.500 12/01/13 2,660,125
2,750 Saint Charles, IL Indl Dev Rev
Tri-City Cent Proj................... 7.500 11/01/13 2,796,228
3,915 Saint Charles, IL Multi-Family Hsg
Rev Bonds Wessel Court Proj.......... 7.600 04/01/24 3,961,745
2,000 Saint Charles, IL Spl Svc Area No
21................................... 6.625 03/01/28 1,843,620
--------------
115,272,425
--------------
INDIANA 2.6%
450 Carmel, IN Retirement Rental Hsg Rev
Beverly Enterprises Inc Proj Rfdg.... 8.750 12/01/08 483,984
1,100 Crawfordsville, IN Redev Comm Dist
Tax Increment Rev.................... 7.350 02/01/17 1,079,375
1,430 Delaware Cnty, IN Redev Dist Tax
Increment Rev........................ 6.875 02/01/18 1,375,975
2,500 East Chicago, IN Solid Waste Disposal
Rev USG Corp Proj.................... 6.375 08/01/29 2,412,725
2,626 Indiana Dev Fin Auth Indl Dev Rev
Unr-Rohn Inc Proj (e)................ 7.500 03/01/11 2,741,203
500 Indiana Hlth Fac Auth Cmnty
Hartsfield Vlg Proj Ser A............ 6.250 08/15/14 469,935
2,000 Indiana Hlth Fac Auth Cmnty
Hartsfield Vlg Proj Ser A............ 6.375 08/15/27 1,818,560
1,500 Indiana Hlth Fac Auth Saint Anthony
Home................................. 7.000 05/15/17 1,501,980
1,000 Indiana Hlth Fac Auth Saint Anthony
Home................................. 7.250 05/15/24 1,010,410
2,495 Indiana Hlth Fac Fin Auth Rev Hoosier
Care Proj Ser A...................... 7.125 06/01/34 2,331,203
</TABLE>
See Notes to Financial Statements
23
<PAGE> 25
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA (CONTINUED)
$2,950 Indiana Hlth Fac Fin Auth Rev Metro
Hlth/IN Inc Proj..................... 6.300% 12/01/23 $ 2,607,593
3,000 Indiana Hlth Fac Fin Auth Rev Metro
Hlth/IN Inc Proj..................... 6.400 12/01/33 2,617,260
8,270 Indianapolis, IN Arpt Auth Rev Spl
Fac United Airls Proj Ser A.......... 6.500 11/15/31 8,079,459
2,000 South Bend, IN Econ Dev Rev Ser A.... 6.250 11/15/29 1,777,520
175 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/10 72,391
135 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/11 51,569
130 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/12 45,800
130 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/13 42,290
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/14 37,546
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/15 34,669
125 Saint Joseph Cnty, IN Redev Dist Tax
Increment Rev........................ * 12/30/16 32,011
435 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.300 01/01/02 427,892
980 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.500 01/01/07 935,351
1,405 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 7.750 01/01/12 1,314,757
2,045 Valparaiso, IN Econ Dev Rev First Mtg
Whispering Pines Cent................ 8.000 01/01/17 1,890,705
400 Wells Cnty, IN Hosp Auth Rev Caylor
Nickel Med Cent Inc Rfdg............. 8.500 04/15/03 424,704
3,600 Wells Cnty, IN Hosp Auth Rev Caylor
Nickel Med Cent Inc Rfdg............. 8.750 04/15/12 3,931,992
--------------
39,548,859
--------------
</TABLE>
See Notes to Financial Statements
24
<PAGE> 26
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
IOWA 0.8%
$2,000 Bremer Cnty, IA Hlthcare &
Residential Fac Rev.................. 7.250% 11/15/29 $ 1,962,780
1,500 Cedar Rapids, IA Rev First Mtg
Cottage Grove........................ 5.875 07/01/28 1,269,900
3,000 Iowa Fin Auth Cmnty Provider Rev Boys
& Girls Home Family Proj............. 6.250 12/01/28 2,601,570
2,770 Iowa Fin Auth Multi-Family Rev Hsg
Park West Proj Rfdg.................. 8.000 10/01/23 2,801,246
2,265 Iowa Fin Auth Retirement Fac
Presbyterian Homes Mill Pond......... 6.000 10/01/33 1,917,979
1,000 Palo Alto Cnty, IA Hosp Rev Palo Alto
Cnty Hosp Proj....................... 6.000 08/01/28 864,830
--------------
11,418,305
--------------
KANSAS 0.6%
1,000 Lawrence, KS Coml Dev Rev Holiday Inn
Sr Ser A............................. 8.000 07/01/16 1,050,400
2,000 Lenexa, KS Hlthcare Fac Rev Lakeview
Vlg Ser B............................ 6.250 05/15/26 1,854,220
3,000 Manhattan, KS Coml Dev Rev Holiday
Inn Sr Ser A Rfdg.................... 8.000 07/01/16 3,151,200
3,125 Shawnee Cnty, KS Rev United Methodist
Homes Inc Ser A Rfdg................. 6.125 11/15/19 2,833,188
1,000 Wichita, KS Hlthcare Facs Rev
Larksfield Place Ser I............... 5.875 05/15/27 849,650
--------------
9,738,658
--------------
KENTUCKY 0.3%
1,195 Kenton Cnty, KY Arpt Brd Arpt Rev Spl
Fac Delta Airls Proj Ser A........... 8.100 12/01/15 1,218,996
1,000 Kenton Cnty, KY Aprt Brd Spl Mesaba
Aviation Inc Proj Ser A.............. 6.625 07/01/19 974,590
2,000 Kenton Cnty, KY Arpt Brd Spl Fac Rev
Mesaba Aviation Inc Proj Ser A....... 6.700 07/01/29 1,934,500
--------------
4,128,086
--------------
LOUISIANA 1.8%
4,700 Hodge, LA Util Rev (a)............... 9.000 03/01/10 4,821,260
1,135 Iberia Parish, LA Hosp Svc Dist No 1
Hosp Rev............................. 7.500 05/26/06 1,107,522
2,000 Iberia Parish, LA Hosp Svc Dist No 1
Hosp Rev............................. 8.000 05/26/16 2,001,800
</TABLE>
See Notes to Financial Statements
25
<PAGE> 27
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LOUISIANA (CONTINUED)
$4,000 Lake Charles, LA Harbor & Terminal
Dist Port Fac Rev Trunkline Lng Co
Rfdg................................. 7.750% 08/15/22 $ 4,370,280
200 Louisiana Hsg Fin Agy Rev
Multi-Family Hsg Plantation Ser A.... 7.200 01/01/03 199,762
4,675 Louisiana Hsg Fin Agy Rev
Multi-Family Hsg Plantation Ser A.... 7.125 01/01/28 4,413,200
570 Louisiana Pub Fac Auth Rev Indl Dev
Beverly Enterprises Inc Rfdg......... 8.250 09/01/08 604,308
1,000 Louisiana Pub Facs Auth Rev
Progressive Hlthcare................. 6.375 10/01/20 898,170
1,000 Louisiana Pub Facs Auth Rev
Progressive Hlthcare................. 6.375 10/01/28 871,500
1,400 Port New Orleans, LA Indl Dev Rev
Avondale Inds Inc Proj Rfdg.......... 8.250 06/01/04 1,474,298
2,500 Saint James Parish, LA Solid Waste
Disp Rev Kaiser Alum Proj............ 7.750 08/01/22 2,620,700
3,000 Saint Tammany, LA Pub Trust Fin Auth
Rev Christwood Proj Rfdg............. 5.700 11/15/28 2,483,610
500 West Feliciana Parish, LA Pollutn Ctl
Rev Gulf States Util Co Proj Ser A... 7.500 05/01/15 527,995
1,000 West Feliciana Parish, LA Pollutn Ctl
Rev Gulf States Util Co Proj Ser B... 9.000 05/01/15 1,043,550
--------------
27,437,955
--------------
MAINE 0.3%
3,200 Maine Fin Auth Solid Waste Disposal
Rev Boise Cascade Corp Proj.......... 7.900 06/01/15 3,293,568
1,500 Maine Vets Homes ME Rev.............. 7.750 10/01/20 1,593,195
--------------
4,886,763
--------------
MARYLAND 1.5%
1,250 Anne Arundel Cnty, MD Spl Tax Dist
Arundel Mills Proj (b)............... 7.100 07/01/29 1,249,125
2,000 Anne Arundel Cnty, MD Spl Tax Dist
Farmington Vlg Proj Ser A............ 6.250 06/01/25 1,830,500
2,500 Baltimore Cnty, MD Mtg Rev Shelter
Elder Care Ser A..................... 7.250 11/01/29 2,360,575
</TABLE>
See Notes to Financial Statements
26
<PAGE> 28
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND (CONTINUED)
$1,750 Baltimore Cnty, MD Nursing Fac
Eastpoint Rehab & Nursing Cent Ser
A.................................... 6.750% 04/01/28 $ 1,563,800
2,000 Baltimore Cnty, MD Pollutn Ctl Rev
Bethlehem Steel Corp Proj Ser A
Rfdg................................. 7.550 06/01/17 2,075,120
2,500 Baltimore Cnty, MD Pollutn Ctl Rev
Bethlehem Steel Corp Proj Ser B
Rfdg................................. 7.500 06/01/15 2,585,450
1,500 Frederick Cnty, MD Spl Olbig Urbana
Cmnty Dev Auth....................... 6.625 07/01/25 1,434,195
2,000 Maryland St Econ Dev Corp Afco Cargo
BWI LLC Proj......................... 6.500 07/01/24 1,939,080
1,175 Montgomery Cnty, MD Econ Dev
Editorial Projs In Edl Ser A (e)..... 6.250 09/01/08 1,110,410
3,730 Montgomery Cnty, MD Econ Dev
Editorial Projs In Edl Ser A (e)..... 6.400 09/01/28 3,368,414
850 Prince Georges Cnty, MD Hosp Rev
(f).................................. 6.375 01/01/23 348,500
3,000 Prince Georges Cnty, MD Spl Oblig Spl
Assmt Woodview Ser A................. 8.000 07/01/26 3,271,680
--------------
23,136,849
--------------
MASSACHUSETTS 7.6%
5,530 Massachusetts St Dev Fin Agy New
England Cntr For Children............ 6.000 11/01/19 4,877,226
1,090 Massachusetts St Dev Fin Agy Rev
Boston Architectural Cent............ 6.100 09/01/18 1,000,500
1,445 Massachusetts St Dev Fin Agy Rev
Boston Architectural Cent............ 6.250 09/01/28 1,307,291
1,425 Massachusetts St Dev Fin Agy Rev
Greater Lynn Mental Hlth Ser B....... 6.375 06/01/18 1,301,082
5,000 Massachusetts St Dev Fin Agy Rev
Hlthcare Fac Alliance Ser A.......... 7.100 07/01/32 4,824,750
2,410 Massachusetts St Dev Fin Agy Rev
Lexington Montessori Sch Issue....... 6.625 08/01/29 2,326,469
3,000 Massachusetts St Hlth & Edl
Christopher House Ser A Rfdg......... 6.875 01/01/29 2,841,600
1,440 Massachusetts St Hlth & Edl Fac Auth
Rev Indpt Living Ser A............... 8.100 07/01/18 1,620,173
</TABLE>
See Notes to Financial Statements
27
<PAGE> 29
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$2,000 Massachusetts St Indl Fin Agy
Assisted Living Fac Rev.............. 8.000% 09/01/27 $ 2,115,700
2,000 Massachusetts St Indl Fin Agy
Assisted Living Fac Rev.............. 7.500 12/01/27 2,042,780
1,000 Massachusetts St Indl Fin Agy First
Mtg Pilgrim Inc Proj................. 6.500 10/01/15 913,690
2,000 Massachusetts St Indl Fin Agy
Trustees Deerfield Academy........... 6.750 10/01/28 1,790,380
4,000 Massachusetts St Indl Fin Agy
Hlthcare Fac Rev Metro Hlth Fndtn Inc
Proj Ser A........................... 6.750 12/01/27 3,833,080
675 Massachusetts St Indl Fin Agy Indl
Rev Beverly Enterprises
Inc/Gloucester & Lexington Proj
Rfdg................................. 8.000 05/01/02 682,081
800 Massachusetts St Indl Fin Agy Indl
Rev Beverly Enterprises
Inc/Gloucester & Lexington Proj
Rfdg................................. 8.375 05/01/09 847,248
6,000 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth (a)................. 6.375 06/01/18 5,458,380
500 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.000 12/01/06 531,280
1,000 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.375 12/01/13 1,108,540
3,000 Massachusetts St Indl Fin Agy Rev
Dimmock Cmnty Hlth Cent.............. 8.500 12/01/20 3,339,150
2,555 Massachusetts St Indl Fin Agy Rev
East Boston Neighborhood Proj........ 7.500 07/01/16 2,425,027
2,560 Massachusetts St Indl Fin Agy Rev
East Boston Neighborhood Proj........ 7.625 07/01/26 2,429,440
710 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.000 11/01/06 754,737
3,900 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc (e)............... 9.250 11/01/11 4,129,866
1,230 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.375 11/01/13 1,385,312
2,165 Massachusetts St Indl Fin Agy Rev
Evergreen Cent Inc................... 8.500 11/01/20 2,460,436
1,005 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.400 01/15/09 983,754
</TABLE>
See Notes to Financial Statements
28
<PAGE> 30
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$2,000 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.625% 01/15/14 $ 1,957,560
2,000 Massachusetts St Indl Fin Agy Rev
First Mtg Evanswood Bethzatha Ser A
Rfdg................................. 7.875 01/15/20 1,970,000
1,410 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj.... 7.400 07/01/12 1,597,065
1,530 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj.... 7.500 07/01/17 1,740,375
690 Massachusetts St Indl Fin Agy Rev
First Mtg Loomis House & Vlg Proj
(Prerefunded @ 07/01/05)............. 7.250 07/01/07 777,278
1,000 Massachusetts St Indl Fin Agy Rev
First Mtg Reeds Landing Proj......... 7.750 10/01/00 1,000,620
8,300 Massachusetts St Indl Fin Agy Rev
First Mtg Reeds Landing Proj (a)..... 8.625 10/01/23 8,948,479
1,700 Massachusetts St Indl Fin Agy Rev
First Mtg Stone Institute & Newton... 7.700 01/01/14 1,772,658
1,760 Massachusetts St Indl Fin Agy Rev
Glenmeadow Retirement Cmnty Ser C
(Prerefunded @ 02/15/06)............. 8.250 02/15/08 2,084,650
1,000 Massachusetts St Indl Fin Agy Rev
Glenmeadow Retirement Cmnty Ser C
(Prerefunded @ 02/15/06)............. 8.625 02/15/26 1,200,200
2,795 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth..................... 6.200 06/01/08 2,656,256
3,615 Massachusetts St Indl Fin Agy Rev Gtr
Lynn Mental Hlth (Prerefunded @
06/01/04)............................ 8.800 06/01/14 4,469,369
3,945 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj.......... 6.375 07/01/29 3,732,246
2,850 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj
(Prerefunded @ 07/01/05)............. 8.450 07/01/18 3,209,328
740 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj
(Prerefunded @ 07/01/05)............. 8.000 07/01/05 807,118
115 Massachusetts St Indl Fin Agy Rev
Hillcrest Edl Cent Inc Proj
(Prerefunded @ 07/07/00)............. 7.500 07/01/00 115,930
1,085 Massachusetts St Indl Fin Agy Rev
HMES Issue........................... 7.000 09/01/12 1,056,096
</TABLE>
See Notes to Financial Statements
29
<PAGE> 31
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<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 $ 3,298,069
2,600 Massachusetts St Indl Fin Agy Rev
Montserrat College Art Issue Ser A... 7.000 12/01/27 2,441,816
1,910 Massachusetts St Indl Fin Agy Rev NE
Cent for Autism (Prerefunded @
11/01/00) (e)........................ 9.000 11/01/05 2,028,897
4,910 Massachusetts St Indl Fin Agy Rev NE
Cent for Autism (Prerefunded @
11/01/00) (e)........................ 9.500 11/01/15 5,237,301
2,000 Massachusetts St Indl Fin Agy Rev
Orchard Cove Issue (Prerefunded @
05/01/02)............................ 9.000 05/01/22 2,249,740
2,000 Massachusetts St Indl Fin Agy Rev Sr
Living Fac Forge Hill Proj........... 6.750 04/01/30 1,729,220
1,820 Massachusetts St Indl Fin Agy Rev
Waarc Inc Proj (Prerefunded @
09/01/05)............................ 7.750 09/01/25 2,104,157
--------------
115,514,400
--------------
MICHIGAN 1.5%
1,000 Detroit, MI Loc Dev Fin Auth Tax
Increment Sr Ser B (d)............... 6.700 05/01/21 974,340
3,500 Detroit, MI Loc Dev Fin Auth Ser C... 6.850 05/01/21 3,433,920
1,060 Dickinson Cnty, MI Mem Hosp Sys Hosp
Rev.................................. 7.625 11/01/05 1,150,026
1,000 Dickinson Cnty, MI Mem Hosp Sys Hosp
Rev.................................. 8.000 11/01/14 1,148,110
2,390 Meridian, MI Econ Dev Corp First Mtg
Burcham Hills Ser A Rfdg............. 7.500 07/01/13 2,446,619
3,430 Meridian, MI Econ Dev Corp First Mtg
Burcham Hills Ser A Rfdg............. 7.750 07/01/19 3,554,474
500 Michigan St Hosp Fin Auth Rev Hosp
Genesys Hlth Sys Ser A Rfdg
(Prerefunded @ 10/01/05)............. 7.500 10/01/07 576,510
1,500 Michigan St Hosp Fin Auth Rev Hosp
Genesys Hlth Sys Ser A Rfdg
(Prerefunded @ 10/01/05)............. 8.100 10/01/13 1,773,810
2,700 Michigan St Hosp Fin Auth Rev Hosp
Henry Ford Hlth Ser A Rfdg........... 5.250 11/15/25 2,307,798
</TABLE>
See Notes to Financial Statements
30
<PAGE> 32
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN (CONTINUED)
$1,026 Michigan St Strategic Fd Ltd Oblig
Rev Great Lakes Pulp & Fiber Proj
(d).................................. 8.000% 12/01/27 $ 718,012
4,000 Michigan St Strategic Fd Solid Waste
Disp Rev Genesee Pwr Station Proj.... 7.500 01/01/21 4,174,480
--------------
22,258,099
--------------
MINNESOTA 2.5%
1,750 Albertville, MN Multi-Family Rev Hsg
Cottages Albertville Proj A.......... 6.750 09/01/29 1,716,768
1,020 Austin, MN Multi-Family Rev Hsg
Cedars of Austin Proj Rfdg........... 7.500 04/01/17 1,037,269
2,000 Austin, MN Multi-Family Rev Hsg
Cedars of Austin Proj Rfdg........... 7.500 04/01/18 2,033,860
1,955 Brooklyn Cent MN Multi-Family Hsg Rev
Four Courts Apts Proj Ser A Rfdg..... 7.400 12/01/15 1,971,735
1,220 Brooklyn Cent MN Multi-Family Hsg Rev
Four Courts Apts Proj Ser A Rfdg..... 7.500 06/01/25 1,230,407
1,460 Cambridge, MN Hsg & Hlthcare Fac Rev
Grandview West Pf Ser A.............. 6.000 10/01/28 1,259,133
1,495 Cambridge, MN Hsg & Hlthcare Fac Rev
Grandview West Proj Ser B............ 6.000 10/01/33 1,278,360
750 Chisago City, MN Hlth Fac Rev Part
Pleasant Heights Proj Ser A Rfdg..... 7.300 07/01/25 770,760
3,000 Columbia Heights, MN Multi-Family
Crest View Corp Proj................. 6.000 03/01/33 2,570,430
2,700 Dakota Cnty, MN Hsg & Redev.......... 6.250 05/01/29 2,505,519
1,200 Maplewood, MN Hlthcare Fac Rev VOA
Care Cent Proj....................... 7.450 10/01/16 1,239,612
1,950 Minneapolis, MN Hlthcare Fac Rev
Ebenezer Society Proj Ser A.......... 7.200 07/01/23 1,953,802
1,000 Minneapolis, MN Hlthcare Fac Rev
Saint Olaf Residence Inc Proj........ 7.100 10/01/23 1,001,990
350 Minneapolis, MN Multi-Family Rev Hsg
Belmont Apts Proj.................... 7.250 11/01/16 350,879
1,320 Minneapolis, MN Multi-Family Rev Hsg
Belmont Apts Proj (a)................ 7.625 11/01/27 1,325,372
</TABLE>
See Notes to Financial Statements
31
<PAGE> 33
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MINNESOTA (CONTINUED)
$3,040 New Brighton, MN Rental Hsg Rev
Polynesian Vlg Apts Proj Ser A
Rfdg................................. 7.500% 10/01/17 $ 3,094,294
760 New Hope, MN Multi-Family Rev Hsg
Broadway Lanel Proj.................. 7.750 09/01/07 770,024
2,320 New Hope, MN Multi-Family Rev Hsg
Broadway Lanel Proj.................. 8.000 09/01/18 2,342,875
785 North Saint Paul, MN Multi-Family Rev
Hsg Cottages North St Paul Rfdg...... 9.000 02/01/09 818,237
2,220 North Saint Paul, MN Multi-Family Rev
Hsg Cottages North St Paul Rfdg...... 9.250 02/01/22 2,312,197
2,255 Northfield, MN Hlthcare Facs Rev
Three Links Care Cent Proj........... 5.875 04/01/29 1,911,067
1,000 Saint Paul, MN Port Auth Hotel Fac
Rev Radisson Kellogg Proj Ser 2...... 7.375 08/01/29 992,470
500 Shoreview, MN Sr Hsg Rev Shoreview Sr
Residence Proj....................... 7.250 02/01/26 486,800
2,000 Spring Lake Park, MN Multi-Family Hsg
Cottages Spring Lake Rfdg (LOC: Zapp
Natl Bank St Cloud).................. 8.375 01/01/22 2,003,420
1,000 Winona, MN Hsg Rev Saint Anne Hospice
Inc.................................. 6.750 07/01/27 955,490
--------------
37,932,770
--------------
MISSISSIPPI 0.5%
950 Lowndes Cnty, MS Hosp Rev Golden
Triangle Med Cent Rfdg............... 8.500 02/01/10 973,104
1,615 Mississippi Business Fin Corp MS
Pollutn Ctl Rev Sys Energy Res Inc
Proj................................. 5.875 04/01/22 1,432,650
2,200 Mississippi Dev Bank Spl Oblig
Diamond Lakes Utils Ser A Rfdg....... 6.250 12/01/17 2,145,550
2,780 Ridgeland, MS Urban Renewal Rev The
Orchard Ltd Proj Ser A Rfdg.......... 7.750 12/01/15 2,880,664
--------------
7,431,968
--------------
MISSOURI 1.8%
2,755 Ellisville, MO Indl Dev Auth Rev Rfdg
& Impt Gambrill Gardens Proj......... 6.200 06/01/29 2,435,007
1,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.250 04/01/07 985,110
</TABLE>
See Notes to Financial Statements
32
<PAGE> 34
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI (CONTINUED)
$2,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.625% 04/01/17 $ 1,952,820
1,000 Ferguson, MO Tax Increment Rev
Crossings at Halls Ferry Proj........ 7.625 04/01/18 975,790
3,610 Good Shepard Nursing Home Dist MO
Nursing Home Fac Rev Rfdg............ 5.900 08/15/23 3,117,957
2,705 Jefferson Cnty, MO Indl Dev Auth Indl
Rev Cedars Hlthcare Cent Proj Ser A
Rfdg................................. 8.250 12/01/15 2,862,891
3,000 Kansas City, MO Multi-Family Hsg Rev
Vlg Green Apts Proj.................. 6.250 04/01/30 2,825,460
1,075 Missouri St Hlth & Edl Fac Bethesda
Hlth Group Inc Proj Ser A Rfdg....... 7.500 08/15/12 1,150,250
3,000 Perry Cnty, MO Nursing Home Rev
Rfdg................................. 5.900 03/01/28 2,547,210
1,615 Saint Louis, MO Tax Increment Rev
Scullin Redev Area Ser A............. 10.000 08/01/10 1,928,455
3,325 Saline Cnty, MO Indl Dev Auth Hlth
Facs Rev John Fitzgibbon Mem Hosp
Inc.................................. 6.500 12/01/28 2,939,366
3,600 Valley Park, MO Indl Dev Auth Sr Hsg
Rev Cape Albeon Proj................. 6.150 12/01/33 3,286,872
--------------
27,007,188
--------------
MONTANA 0.2%
2,825 Montana St Brd Invt Res Recovery Rev
Yellowstone Energy L P Proj.......... 7.000 12/31/19 2,780,845
--------------
NEVADA 0.7%
1,000 Boulder City, NV Hosp Rev Boulder
City Hosp Inc Proj Rfdg.............. 5.850 01/01/22 862,080
3,075 Clark Cnty, NV Assisted Living
Homestead Boulder City Proj.......... 6.500 12/01/27 2,836,257
1,490 Henderson, NV Loc Impt Dist No
T-10................................. 7.500 08/01/15 1,535,609
985 Las Vegas, NV Spl Impt Dist No 505
Elkhorn Springs...................... 8.000 09/15/13 1,020,903
</TABLE>
See Notes to Financial Statements
33
<PAGE> 35
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEVADA (CONTINUED)
$1,210 Nevada St Dept Commerce Hlth Fac Rev
Washoe Convalescent Cent Proj Rfdg... 8.125% 06/01/03 $ 1,241,012
3,000 Washoe Cnty, NV Impt Bonds Spl Assmt
Dist No 23........................... 6.500 11/01/17 3,062,700
--------------
10,558,561
--------------
NEW HAMPSHIRE 2.8%
435 New Hampshire Higher Edl & Hlth Fac
Auth Rev Colby-Sawyer College
Issue................................ 7.200 06/01/12 451,861
2,565 New Hampshire Higher Edl & Hlth Fac
Auth Rev Colby-Sawyer College
Issue................................ 7.500 06/01/26 2,698,252
4,965 New Hampshire Higher Edl & Hlth Fac
Auth Rev Daniel Webster College Issue
Rfdg (Prerefunded @ 07/01/04)........ 7.625 07/01/16 5,603,797
1,035 New Hampshire Higher Edl & Hlth Fac
Auth Rev First Mtg Odd Fellows Home
Rfdg................................. 8.000 06/01/04 1,061,382
2,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev First Mtg Odd Fellows Home
Rfdg................................. 9.000 06/01/14 2,301,780
1,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev Havenwood-Heritage
Heights.............................. 7.350 01/01/18 1,035,260
4,825 New Hampshire Higher Edl & Hlth Fac
Auth Rev Havenwood-Heritage
Heights.............................. 7.450 01/01/25 4,979,400
2,295 New Hampshire Higher Edl & Hlth Fac
Auth Rev Hlthcare Visiting Nurse
(e).................................. 7.250 09/01/23 2,315,494
1,370 New Hampshire Higher Edl & Hlth Fac
Auth Rev Monadock Cmnty Hosp Issue
(Prerefunded @ 10/01/00)............. 9.125 10/01/20 1,451,529
2,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev New London Hosp Assn Proj... 7.500 06/01/05 2,145,220
3,355 New Hampshire Higher Edl & Hlth Fac
Auth Rev Vly Regl Hosp (e)........... 7.350 04/01/23 3,370,131
2,000 New Hampshire Higher Edl & Hlth Facs
Auth Rev............................. 6.125 03/01/19 1,853,980
4,845 New Hampshire Higher Edl & Hlth Facs
Auth Rev............................. 6.300 07/01/29 4,409,434
1,000 New Hampshire Higher Edl & Hlth Fac
Auth Rev Riverwoods at Exeter Ser
A.................................... 6.500 03/01/23 930,430
</TABLE>
See Notes to Financial Statements
34
<PAGE> 36
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
$3,860 New Hampshire St Business Fin Auth
Elec Fac Rev Plymouth Cogeneration... 7.750% 06/01/14 $ 3,955,110
3,000 New Hampshire St Business Fin Auth
Rev Alice Peck Day Health Systems Ser
A.................................... 7.000 10/01/29 2,864,610
1,325 New Hampshire St Hsg Fin Auth Single
Family Rev........................... 5.900 07/01/28 1,275,763
--------------
42,703,433
--------------
NEW JERSEY 4.9%
4,990 Camden Cnty, NJ Impt Auth Lease Rev
Dockside Refrig (a).................. 8.400 04/01/24 5,390,298
4,500 Camden Cnty, NJ Impt Auth Lease Rev
Kaighn PT Marine Term Ser A (a)...... 8.000 06/01/27 4,815,900
1,000 New Jersey Econ Dev Auth Econ Dev
Rev.................................. 6.750 07/01/19 968,940
500 New Jersey Econ Dev Auth Econ Dev Rev
Green Acres Manor Inc Ser A Rfdg..... 8.000 01/01/09 515,380
1,000 New Jersey Econ Dev Auth Econ Dev Rev
Green Acres Manor Inc Ser A Rfdg..... 8.250 01/01/17 1,033,330
415 New Jersey Econ Dev Auth Econ Dev Rev
Zirbser Greenbriar Inc Ser A Rfdg.... 7.375 07/15/03 425,309
915 New Jersey Econ Dev Auth Econ Dev Rev
Zirbser Greenbriar Inc Ser A Rfdg.... 7.750 07/15/08 943,136
250 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.000 02/01/10 252,750
1,500 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.375 02/01/17 1,551,735
3,500 New Jersey Econ Dev Auth First Mtg
Cranes Mill Ser A.................... 7.500 02/01/27 3,626,035
500 New Jersey Econ Dev Auth First Mtg
Gross Rev Burnt Tavern Convalescent
Ser A Rfdg........................... 9.000 11/15/13 528,505
840 New Jersey Econ Dev Auth First Mtg
Gross Rev Stone Arch Nursing Home
Proj Rfdg............................ 8.750 12/01/10 892,072
1,000 New Jersey Econ Dev Auth First Mtg
Gross Rev The Evergreens (Prerefunded
@ 10/01/02).......................... 9.250 10/01/22 1,140,290
875 New Jersey Econ Dev Auth Rev First
Mtg Gross Rev The Evergreens Rfdg.... 5.875 12/01/27 744,494
</TABLE>
See Notes to Financial Statements
35
<PAGE> 37
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY (CONTINUED)
$1,000 New Jersey Econ Dev Auth Holt Hauling
& Warehsg Rev Ser G Rfdg............. 8.400% 12/15/15 $ 1,058,180
3,000 New Jersey Econ Dev Auth Meridian
Assisted Living Rev Proj............. 6.750 08/01/30 2,729,280
500 New Jersey Econ Dev Auth Rev First
Mtg Fellowship Vlg Proj Ser A
(Prerefunded @ 01/01/05)............. 8.500 01/01/10 590,185
1,000 New Jersey Econ Dev Auth Rev First
Mtg Fellowship Vlg Proj Ser A
(Prerefunded @ 01/01/05)............. 9.250 01/01/25 1,212,840
975 New Jersey Econ Dev Auth Rev First
Mtg Millhouse Proj Ser A............. 8.250 04/01/10 1,049,080
2,060 New Jersey Econ Dev Auth Rev First
Mtg Millhouse Proj Ser A............. 8.500 04/01/16 2,229,600
1,860 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 7.500 11/01/05 1,906,091
1,100 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 8.500 11/01/16 1,200,947
1,500 New Jersey Econ Dev Auth Rev First
Mtg Winchester Gardens Ser A......... 8.625 11/01/25 1,643,460
1,945 New Jersey Econ Dev Auth Rev Kullman
Assoc Proj Ser A..................... 6.125 06/01/18 1,797,763
2,500 New Jersey Econ Dev Auth Rev Sr
Living Fac Esplandade Near........... 7.000 06/01/39 2,314,450
4,500 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A Rfdg........... 6.000 05/15/28 3,893,490
855 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A................ 8.000 05/15/02 910,319
750 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A................ 8.000 05/15/04 837,060
2,560 New Jersey Econ Dev Auth Rev Sr Mtg
Arbor Glen Proj Ser A (Prerefunded @
05/15/06)............................ 8.750 05/15/26 3,134,208
5,000 New Jersey Econ Dev Auth Spl Fac Rev
Continental Airls Inc Proj........... 6.625 09/15/12 5,164,200
5,000 New Jersey Econ Dev Auth Spl Fac Rev
Continental Airls Inc Proj........... 6.250 09/15/19 4,791,600
</TABLE>
See Notes to Financial Statements
36
<PAGE> 38
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY (CONTINUED)
$5,000 New Jersey Econ Dev Auth Spl Fac Rev
Continental Airls Inc Proj........... 6.250% 09/15/29 $ 4,695,450
2,500 New Jersey Hlthcare Fac Fin Auth Rev
Care Institute Inc Cherry Hill
Proj................................. 7.750 07/01/10 2,499,025
3,100 New Jersey Hlthcare Fac Fin Auth Rev
Raritan Bay Med Cent Issue Rfdg...... 7.250 07/01/14 3,035,706
950 New Jersey St Edl Fac Auth Rev
Caldwell College Ser A............... 7.250 07/01/25 980,314
4,000 New Jersey St Edl Fac Auth Rev
Felician College of Lodi Ser D....... 7.375 11/01/22 4,152,560
--------------
74,653,982
--------------
NEW MEXICO 1.6%
4,460 Albuquerque, NM Retirement Fac Rev La
Vida Liena Proj Ser A Rfdg
(Prerefunded @ 02/01/03)............. 8.850 02/01/23 5,061,877
5,000 Albuquerque, NM Retirement Fac Rev La
Vida Liena Proj Ser B Rfdg........... 6.600 12/15/28 4,483,950
2,970 Bernalillo Cnty, NM Multi-Family Hsg
Brentwood Gardens Apt B 1............ 6.600 10/15/28 2,791,859
1,570 Bernalillo Cnty, NM Multi-Family Rev
Hsg Sr Solar Villas Apts Ser F....... 7.250 10/15/22 1,525,522
3,000 Farmington, NM Pollutn Ctl Rev Public
Svc Co NM Proj Ser A................. 6.600 10/01/29 2,964,960
2,000 New Mexico Regional Hsg Auth Region
VI Multi-Family Rev.................. 6.750 06/15/29 1,904,420
2,500 New Mexico St Hosp Equip Ln Council
Hosp Rev Mem Med Cent Inc Proj....... 5.500 06/01/28 2,119,275
2,920 RHA Hsg Dev Corp NM Multi-Family Rev
Mtg Woodleaf Apts Proj Ser A Rfdg.... 7.125 12/15/27 2,805,536
670 Santa Fe, NM Indl Rev Casa Real
Nursing Home Rfdg.................... 9.750 01/01/13 701,075
--------------
24,358,474
--------------
</TABLE>
See Notes to Financial Statements
37
<PAGE> 39
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK 4.1%
$1,000 Amherst, NY Indl Dev Agy Sr Rev
Sharrey Zedek Proj Ser A (b)......... 7.000% 12/01/24 $ 980,020
1,500 Amherst, NY Indl Dev Agy Sr Rev
Sharrey Zedek Proj Ser A (b)......... 7.000 12/01/34 1,434,270
2,000 Bethlehem, NY Indl Dev Agy Sr Hsg Rev
Van Allen Proj Ser A................. 6.875 06/01/39 1,855,400
1,340 Brookhaven, NY Indl Dev Agy Sr
Residential Hsg Rev Woodcrest Estates
Fac Ser A............................ 6.250 12/01/23 1,204,821
2,000 Brookhaven, NY Indl Dev Agy Sr
Residential Hsg Rev Woodcrest Estates
Fac Ser A............................ 6.375 12/01/37 1,784,300
2,000 Castle Rest Residential Hlthcare Fac
NY Rev Hlthcare Fac Ser B............ 8.000 08/01/10 1,948,760
1,210 Clifton Springs, NY Hosp & Clinic Ser
A Rfdg & Impt........................ 7.650 01/01/12 1,290,997
4,800 Islip, NY Cmnty Dev Agy Cmnty Dev Rev
NY Institute of Technology Rfdg
(a).................................. 7.500 03/01/26 5,072,976
1,350 Monroe Cnty, NY Indl Dev Agy Rev Indl
Dev Empire Sports Proj Ser A......... 6.250 03/01/28 1,249,047
1,000 Mount Vernon, NY Indl Dev Agy Civic
Fac Rev.............................. 6.200 06/01/29 900,720
6,000 New York City Indl Dev Agy Laguardia
Assoc LP Proj Rfdg................... 6.000 11/01/28 5,541,900
3,500 New York City Indl Dev Agy Civic Fac
Rev Cmnty Res Developmentally
Disabled............................. 7.500 08/01/26 3,641,295
3,960 New York City Indl Dev Agy Civic Fac
Rev Our Lady of Mercy Med Cent Pkg
Corp Proj............................ 8.500 12/30/22 4,271,256
1,500 New York City Indl Dev Civic Touro
College Proj Ser A................... 6.350 06/01/29 1,419,075
4,000 New York St Mtg Agy Rev Homeowner Mtg
Ser 84............................... 5.950 04/01/30 3,879,560
2,665 Newark-Wayne Cmnty Hosp Inc NY Hosp
Rev Ser A............................ 7.600 09/01/15 2,789,029
2,000 North Syracuse, NY Hsg Auth Rev Janus
Park Proj............................ 8.000 06/01/14 1,895,440
1,250 Oneida Cnty, NY Indl Dev Agy Civic
Fac Saint Elizabeth Med Ser A........ 5.875 12/01/29 1,060,912
</TABLE>
See Notes to Financial Statements
38
<PAGE> 40
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 650 Onondaga Cnty, NY Indl Dev Agy Civic
Fac Rev Iroquois Nursing Home Ser
B.................................... 7.000% 02/01/09 $ 617,181
675 Oswego Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 7.000 02/01/12 634,210
1,500 Peekskill, NY Indl Dev Agy Sr Drum
Hill Sr Living Proj.................. 6.375 10/01/28 1,344,480
1,275 Rensselaer Cnty, NY Indl Dev Agy East
Greenbush Cntr Proj Ser A Rfdg (e)... 7.000 02/01/11 1,209,019
1,480 Rensselaer Cnty, NY Indl Dev Agy East
Greebush Cntr Proj Ser B Rfdg (e).... 7.000 02/01/11 1,409,330
2,300 Rockland Cnty, NY Indl Dev Agy Civic
Fac Rev Dominican College Proj (e)... 6.250 05/01/28 2,105,374
2,000 Saratoga Cnty, NY Indl Dev Agy Sr Hsg
Rev.................................. 6.875 06/01/39 1,853,020
1,000 Suffolk Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 7.250 01/01/20 975,180
2,000 Suffolk Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 7.250 01/01/30 1,924,300
1,500 Suffolk Cnty, NY Indl Dev Agy Cont
Care Retirement Cmnty Rev (b)........ 7.250 11/01/28 1,499,865
3,100 Suffolk Cnty, NY Indl Dev Agy Indl
Dev Rev Spellman High Voltage Fac Ser
A.................................... 6.375 12/01/17 2,918,774
400 Syracuse, NY Hsg Auth Rev Sub Proj
Loretto Rest Ser B................... 7.500 08/01/10 385,760
695 Ulster Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 6.250 06/01/08 670,314
1,000 Ulster Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 6.400 06/01/14 950,770
1,000 Ulster Cnty, NY Indl Dev Agy Civic
Fac Rev.............................. 6.450 06/01/24 919,600
--------------
61,636,955
--------------
NORTH CAROLINA 0.3%
5,000 Charlotte, NC Spl Fac Rev Charlotte
Douglas Int Rfdg..................... 5.600 07/01/27 4,094,900
--------------
NORTH DAKOTA 0.5%
2,610 Devils Lake, ND Hlthcare Facs Rev &
Impt Lk Reg Lutheran Rfdg............ 6.100 10/01/23 2,299,593
3,000 Grand Forks, ND Sr Hsg Rev Spl Term
4000 Vly Square Proj................. 6.250 12/01/34 2,661,600
2,000 Grand Forks, ND Sr Hsg Rev Spl Term
4000 Vly Square Proj................. 6.375 12/01/34 1,806,440
--------------
6,767,633
--------------
</TABLE>
See Notes to Financial Statements
39
<PAGE> 41
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO 3.1%
$1,500 Athens Cnty, OH Hosp Fac Rev
O'Bleness Mem Hosp Proj.............. 7.100% 11/15/23 $ 1,511,475
3,800 Cleveland, OH Arpt Spl Rev
Continental Airls Inc Proj........... 5.375 09/15/27 3,158,142
1,000 Cuyahoga Cnty, OH Hlthcare Fac Rev
Jennings Hall........................ 7.200 11/15/14 1,017,790
1,500 Cuyahoga Cnty, OH Hlthcare Fac Rev
Jennings Hall........................ 7.300 11/15/23 1,535,745
2,500 Cuyahoga Cnty, OH Hlthcare Fac Rev
Judson Retirement Cmnty Ser A Rfdg... 7.250 11/15/13 2,519,500
3,000 Cuyahoga Cnty, OH Hlthcare Fac Rev
Judson Retirement Cmnty Ser A Rfdg... 7.250 11/15/18 3,023,400
1,195 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Mtg Colonnade Apts Ser A Rfdg.... 7.500 12/01/17 1,151,705
2,305 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Mtg Colonnade Apts Ser A Rfdg.... 7.750 12/01/28 2,207,937
2,500 Cuyahoga Cnty, OH Multi-Family Rev
Hsg Park Lane Apts Proj Ser A........ 8.250 07/01/28 2,575,000
3,000 Dayton, OH Spl Facs Rev Afco Cargo
Day LLC Proj......................... 6.300 04/01/22 2,831,880
295 Fairfield, OH Econ Dev Rev Beverly
Enterprises Inc Proj Rfdg............ 8.500 01/01/03 305,278
2,205 Hamilton Cnty, OH Multi-Family Rev
Hsg Garden Hill Washington Park
Apts................................. 7.750 10/01/21 2,269,893
1,370 Harrison, OH Harrison Ave Kmart Proj
Ser A................................ 8.125 12/01/02 1,416,991
1,000 Madison Cnty, OH Hosp Impt Rev
Madison Cnty Hosp Proj Rfdg.......... 6.250 08/01/18 903,630
2,465 Madison Cnty, OH Hosp Impt Rev
Madison Cnty Hosp Proj Rfdg.......... 6.400 08/01/28 2,201,023
5,000 Montgomery Cnty, OH Hlthcare Fac
Rev.................................. 6.250 02/01/22 4,512,850
1,000 North Canton, OH Hlthcare Facs Rev
The Waterford at Saint Luke Proj
(Prerefunded @ 11/15/02)............. 8.625 11/15/21 1,126,170
3,000 Ohio St Solid Waste Rev CSC Ltd
Proj................................. 8.500 08/01/22 2,927,400
2,000 Ohio St Solid Waste Rev Rep
Engineered Steels Proj............... 8.250 10/01/14 1,836,900
</TABLE>
See Notes to Financial Statements
40
<PAGE> 42
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO (CONTINUED)
$4,000 Ohio St Solid Waste Rev Rep
Engineered Steels Proj............... 9.000% 06/01/21 $ 3,810,360
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac
Rev Coll Cleveland Elec Ser A Rfdg... 8.000 10/01/23 2,160,540
2,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac
Rev Coll Toledo Edison Ser A Rfdg.... 8.000 10/01/23 2,160,540
--------------
47,164,149
--------------
OKLAHOMA 0.4%
2,830 Oklahoma Cnty, OK Fin Auth Epworth
Villa Proj Ser A Rfdg................ 7.000 04/01/25 2,722,771
2,800 Oklahoma Dev Fin Auth Rev Hilcrest
Hlthcare Sys A Rfdg.................. 5.625 08/15/29 2,294,124
500 Woodward, OK Muni Auth Hosp Rev...... 8.250 11/01/09 535,845
500 Woodward, OK Muni Auth Hosp Rev
(Prerefunded @ 11/01/00)............. 9.250 11/01/14 532,270
--------------
6,085,010
--------------
OREGON 1.0%
3,150 Clackamas Cnty, OR Hosp Fac Auth Rev
Willamette View Inc Proj Ser A (b)... 7.500 11/01/29 3,058,524
1,000 Clatsop Care Cent Hlth Dist OR Rev Sr
Hsg.................................. 6.000 08/01/14 913,450
4,000 Clatsop Care Cent Hlth Dist OR Rev Sr
Hsg.................................. 6.875 08/01/28 3,588,800
1,745 Douglas Cnty, OR Hosp Fac Auth Rev
Elderly Hsg Forest Glen Ser A........ 7.500 09/01/27 1,682,721
4,000 Oregon St Hlth Hsg Edl & Cultural
Facs Auth............................ 7.250 06/01/28 3,828,800
1,500 Salem, OR Hosp Fac Auth Rev Cap Manor
Inc.................................. 7.500 12/01/24 1,544,715
--------------
14,617,010
--------------
PENNSYLVANIA 10.2%
635 Allegheny Cnty, PA Hosp Dev Auth
Rev.................................. 7.375 08/01/04 612,775
1,945 Allegheny Cnty, PA Hosp Dev Auth Rev
Hlth Fac Allegheny Vly Sch........... 7.500 02/01/10 2,008,193
3,120 Allegheny Cnty, PA Hosp Dev Auth Rev
Hlth Fac Allegheny Vly Sch........... 7.875 02/01/20 3,286,639
2,000 Allegheny Cnty, PA Hosp Dev Hlthcare
Facs Villa Saint Joseph.............. 6.000 08/15/28 1,720,880
1,000 Allegheny Cnty, PA Indl Dev Auth
Lease Rev............................ 6.625 09/01/24 968,820
</TABLE>
See Notes to Financial Statements
41
<PAGE> 43
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$7,000 Beaver Cnty, PA Indl Dev Auth Pollutn
Ctl Rev Coll Toledo Edison Co Proj
Rfdg (a)............................. 7.625% 05/01/20 $ 7,519,750
4,000 Beaver Cnty, PA Indl Dev Auth Pollutn
Ctl Rev Coll Toledo Edison Co Proj
Ser A Rfdg........................... 7.750 05/01/20 4,338,000
1,000 Bucks Cnty, PA Indl Dev Auth Rev
First Mtg Hlthcare Fac Chandler...... 6.100 05/01/14 923,470
2,500 Bucks Cnty, PA Indl Dev Auth Rev
First Mtg Hlthcare Fac Chandler...... 6.300 05/01/29 2,232,150
2,000 Chartiers Vly, PA Indl & Coml Dev
Auth First Mtg Rev................... 7.400 12/01/15 2,058,140
1,000 Clarion Cnty, PA Hosp Auth Hosp Rev
Clarion Hosp Proj (Prerefunded @
07/01/01)............................ 8.500 07/01/21 1,079,150
3,500 Cliff House Ctfs Tr Var Sts Ctfs
Partn Ser A.......................... 6.625 06/01/27 3,361,330
1,000 Crawford Cnty, PA Hosp Auth Sr Living
Fac Rev.............................. 6.250 08/15/29 935,500
1,000 Cumberland Cnty, PA Indl Dev Auth Rev
First Mtg Woods Cedar Run Ser A
Rfdg................................. 6.500 11/01/18 905,770
3,250 Cumberland Cnty, PA Indl Dev Auth Rev
First Mtg Woods Cedar Run Ser A
Rfdg................................. 6.500 11/01/28 2,832,050
4,000 Dauphin Cnty, PA Genl Auth Rev Office
& Pkg Forum Place Ser A.............. 6.000 01/15/25 3,672,840
5,500 Dauphin Cnty, PA Genl Auth Rev Office
& Pkg Riverfront Office (a).......... 6.000 01/01/25 5,050,540
4,000 Dauphin Cnty, PA Genl Auth Rev Hotel
& Conf Cent Hyatt Regency............ 6.200 01/01/29 3,725,840
870 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj (Prerefunded @
06/01/02)............................ 8.750 06/01/10 968,649
2,800 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj (Prerefunded @
06/01/02)............................ 9.250 06/01/22 3,149,496
2,500 Delaware Cnty, PA Auth Rev First Mtg
Riddle Vlg Proj Rfdg................. 7.000 06/01/26 2,461,525
2,100 Delaware Cnty, PA Auth Rev White
Horse Vlg Ser A Rfdg................. 7.500 07/01/18 2,163,315
3,500 Grove City, PA Area Hosp Auth Hlth
Fac Rev.............................. 6.625 08/15/29 3,150,280
2,000 Harrisburg, PA Auth Office & Pkg Rev
Ser A................................ 6.000 05/01/19 1,874,760
1,200 Lancaster Cnty, PA Hosp Auth Rev Hlth
Cent St Annes Home................... 6.625 04/01/28 1,108,128
</TABLE>
See Notes to Financial Statements
42
<PAGE> 44
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$1,250 Lebanon Cnty, PA Hlth Fac Auth Hlth
Cent Rev United Church of Christ
Homes Rfdg........................... 7.250% 10/01/19 $ 1,250,112
250 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 7.150 12/15/08 275,263
3,000 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 6.000 12/15/23 2,612,640
2,315 Lehigh Cnty, PA Genl Purp Auth Rev
First Mtg Bible Fellowship Proj...... 8.000 12/15/23 2,634,864
3,000 Lehigh Cnty, PA Genl Purp Auth Rev
Kidspeace Obligation Group........... 6.000 11/01/18 2,752,410
4,000 Lehigh Cnty, PA Genl Purp Auth Rev
Kidspeace Oblig Group................ 6.000 11/01/23 3,611,160
1,790 Lehigh Cnty, PA Indl Dev Auth Hlth
Fac Rev Lifepath Inc Proj............ 6.100 06/01/18 1,570,546
3,000 Lehigh Cnty, PA Indl Dev Auth Hlth
Fac Rev Lifepath Inc Proj............ 6.300 06/01/28 2,572,650
4,560 Lehigh Cnty, PA Indl Dev Auth Rev
Rfdg................................. 8.000 08/01/12 4,725,437
3,000 Luzerne Cnty, PA Indl Dev Auth Exmpt
Fac Rev PA Gas & Wtr Co Proj Ser A
Rfdg................................. 7.200 10/01/17 3,203,400
1,800 Luzerne Cnty, PA Indl Dev Auth First
Mtg Gross Rev Rfdg................... 7.875 12/01/13 1,882,836
2,500 Montgomery Cnty, PA Higher Edl & Hlth
Auth Rev............................. 6.625 07/01/19 2,307,100
1,000 Montgomery Cnty, PA Higher Edl & Hlth
Auth Rev............................. 6.750 07/01/29 916,190
3,645 Montgomery Cnty, PA Indl Dev Auth Rev
Assisted Living Ser A (Prerefunded @
05/01/03)............................ 8.250 05/01/23 4,005,381
379 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 9.250 12/01/00 388,896
2,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 6.000 12/01/10 1,962,040
500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.000 12/01/10 502,425
1,500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.250 12/01/15 1,525,425
</TABLE>
See Notes to Financial Statements
43
<PAGE> 45
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$2,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 6.250% 12/01/17 $ 1,859,180
4,000 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A.................................... 7.400 12/01/20 4,072,280
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 2,178,171
2,500 Montgomery Cnty, PA Indl Dev Auth Rev
First Mtg The Meadowood Corp Proj Ser
A (Prerefunded @ 12/01/00)........... 10.250 12/01/20 2,695,050
3,505 Montgomery Cnty, PA Indl Dev Auth Rev
Hlthcare Adv Geriatric Ser A......... 8.375 07/01/23 3,710,358
645 Montgomery Cnty, PA Indl Dev Auth Rev
Pennsburg Nursing & Rehab Cent
(Prerefunded @ 03/31/04)............. 7.625 07/01/18 723,626
2,660 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy................... 7.750 09/01/14 2,785,818
1,930 Montgomery Cnty, PA Indl Dev Auth Rev
Wordsworth Academy................... 7.750 09/01/24 2,006,563
2,200 Montgomery Cnty, PA Indl Rev GDL
Farms Corp Proj Rfdg................. 6.500 01/01/20 2,055,240
2,500 Northeastern PA Hosp & Edl Auth
Hlthcare Rev......................... 7.125 10/01/29 2,490,450
2,000 Pennsylvania St Higher Edl Fac Auth
Rev Auth Allegheny Gen Hosp Ser A.... 7.125 09/01/07 1,797,000
1,000 Philadelphia, PA Auth For Indl Dev
Rev First Mtg Crime Prevention
Assoc................................ 6.125 04/01/19 938,070
4,000 Philadelphia, PA Auth for Indl Dev
Rev Coml RMK Rfdg.................... 7.750 12/01/17 4,289,640
2,000 Philadelphia, PA Auth for Indl Dev
Rev Long-Term Care Maplewood
(Prerefunded @ 07/01/04)............. 8.000 01/01/14 2,313,760
1,500 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev (f)................ 7.000 07/01/05 553,125
1,000 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev (f)................ 7.250 07/01/18 368,750
900 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev.................... 6.500 07/01/23 838,053
</TABLE>
See Notes to Financial Statements
44
<PAGE> 46
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$1,180 Philadelphia, PA Hosp & Higher Edl
Fac Auth Hosp Rev.................... 6.500% 07/01/27 $ 1,093,400
1,830 Philadelphia, PA Hosps & Higher Edl
Fac Auth Hosp Rev.................... 7.250 03/01/24 1,825,553
1,465 Scranton Lackawanna, PA Hlth &
Welfare Auth Rev Rfdg................ 7.250 01/15/17 1,491,692
3,100 Scranton Lackawanna, PA Hlth &
Welfare Auth Rev Rfdg................ 7.350 01/15/22 3,177,159
3,000 Somerset Cnty, PA Hosp Auth Rev
Somerset Cmnty Hosp Proj (Prerefunded
@ 03/01/02).......................... 7.500 03/01/17 3,193,260
2,400 Southern Chester Cnty, PA Hlth &
Higher Ed Auth Mtg Rev............... 6.300 06/01/10 2,325,792
250 Warren Cnty, PA Indl Dev Auth Beverly
Enterprises Rfdg..................... 9.000 11/01/12 266,245
2,200 Washington Cnty, PA Hosp Auth Rev
Canonsburg Genl Hosp Rfdg............ 7.350 06/01/13 2,219,030
2,500 Westmoreland Cnty, PA Indl Dev Auth
Rev Hlthcare Facs Redstone Rfdg...... 5.850 11/15/29 2,102,100
--------------
154,176,130
--------------
SOUTH CAROLINA 0.6%
710 Charleston Cnty, SC Hlth Fac Rev
First Mtg Episcopal Proj Rfdg
(Prerefunded @ 04/01/01)............. 9.750 04/01/16 769,668
3,500 Charleston Cnty, SC Indl Rev Zeigler
Coal Hldg............................ 6.950 08/10/28 3,088,435
750 South Carolina Jobs Econ Dev Auth
Hlth Fac Rev First Mtg Lutheran Homes
SC Proj (Prerefunded @ 10/01/02)..... 8.000 10/01/22 836,250
5,095 South Carolina St Hsg Fin & Dev Auth
Multi-Family Rev..................... 6.750 05/01/28 4,884,016
--------------
9,578,369
--------------
SOUTH DAKOTA 0.5%
2,500 Mobridge, SD Hlthcare Facs Rev
Mobridge Regl Hosp Proj.............. 6.500 12/01/22 2,281,250
3,000 South Dakota Hsg Dev Auth
Homeownership Mtg Ser F.............. 5.800 05/01/28 2,853,450
</TABLE>
See Notes to Financial Statements
45
<PAGE> 47
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH DAKOTA (CONTINUED)
$1,000 South Dakota St Hlth & Edl Fac Auth
Rev Huron Regl Med Cent.............. 7.250% 04/01/20 $ 1,057,480
1,600 Winner, SD Econ Dev Rev Winner Regl
Hlthcare Cent Rfdg................... 6.000 04/01/28 1,381,072
--------------
7,573,252
--------------
TENNESSEE 1.2%
4,950 Chattanooga, TN Indl Dev Brd Indl Rev
Dev Market St Proj Rfdg.............. 7.000 12/15/12 4,952,079
1,050 Chattanooga, TN Indl Dev Brd Indl Rev
Dev Market St Proj Rfdg.............. 7.000 12/15/12 1,050,441
3,500 Shelby Cnty, TN Hlth Edl & Hsg
Hlthcare Fac Kirby Pines Ser A....... 6.375 11/15/25 3,191,300
3,250 Springfield, TN Hlth & Edl Fac Brd
Hosp Rev Jesse Holman Jones Hosp Proj
(Prerefunded @ 04/01/06)............. 8.250 04/01/12 3,795,350
2,155 Sweetwater, TN Indl Dev Brd Mtg Rev
Wood Presbyterian Home Proj.......... 7.500 01/01/18 1,992,879
2,845 Sweetwater, TN Indl Dev Brd Mtg Rev
Wood Presbyterian Home Proj.......... 7.750 01/01/29 2,598,965
--------------
17,581,014
--------------
TEXAS 2.9%
725 Abia Dev Corp TX Arpt Facs Rev Austin
Belly Port Dev Proj Ser A............ 6.250 10/01/08 696,993
3,775 Abia Dev Corp TX Arpt Facs Rev Austin
Belly Port Dev Proj Ser A............ 6.500 10/01/23 3,526,643
1,700 Atlanta, TX Hosp Auth Hosp Fac Rev... 6.750 08/01/29 1,589,857
2,000 Austin-Bergstorm Landhost Enterprises
Inc TX Arpt Hotel Sr Ser A........... 6.750 04/01/27 1,872,740
865 Bell Cnty, TX Hlth Fac Dev Corp Rev
Hosp Proj............................ 9.250 07/01/08 892,697
3,985 Bell Cnty, TX Indl Dev Corp Solid
Waste Disposal Rev................... 7.600 12/01/17 3,725,935
500 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev American Airls Inc..... 7.500 11/01/25 518,535
1,500 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev American Airls Inc..... 7.250 11/01/30 1,578,585
</TABLE>
See Notes to Financial Statements
46
<PAGE> 48
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS (CONTINUED)
$1,250 Dallas-Fort Worth, TX Intl Arpt Fac
Impt Corp Rev Delta Airls Inc........ 7.625% 11/01/21 $ 1,310,750
2,665 De Soto, TX Hlth Fac Dev Park Manor
Sr Care.............................. 7.750 12/01/16 2,696,580
1,450 Houston, TX Arpt Sys Rev Spl Fac
Continental Airls Ser C.............. 6.125 07/15/27 1,354,996
1,500 Houston, TX Arpt Sys Rev Spl Fac
Continental Airl Term Impt Ser B..... 6.125 07/15/27 1,378,785
2,500 Lubbock, TX Hlth Facs Dev Corp Rev
First Mtg Carillon Proj Ser A........ 6.500 07/01/19 2,284,625
3,400 Meadow Parc Dev Inc TX Multi-Family
Rev Hsg Meadow Parc Apts Proj........ 6.500 12/01/30 3,169,718
750 North Central, TX Hlth Fac Dev Corp
Rev Retirement Fac NW Sr Hsg Ser A... 7.500 11/15/29 725,708
2,000 North Central, TX Hlth Fac Dev Corp
Rev Retirement Fac NW Sr Hsg Ser A... 7.250 11/15/19 1,912,800
3,205 Orange, TX Hsg Dev Corp Multi-Family
Rev Hsg Vlgs At Pine Hallow.......... 8.000 03/01/28 3,096,767
3,255 Rusk Cnty, TX Hlth Fac Corp Hosp Rev
Henderson Mem Hosp Proj Rfdg......... 7.750 04/01/13 3,390,994
500 San Antonio, TX Hlth Fac Dev Corp Rev
Encore Nursing Cent Partn............ 8.250 12/01/19 531,805
2,000 San Antonio, TX Hsg Fin Corp
Multi-Family Hsg Rev Beverly Oaks
Apts Proj Ser A...................... 7.750 02/01/27 1,964,120
1,965 San Antonio, TX Hsg Fin Corp
Multi-Family Hsg Rev Marbach Manor
Apts Proj Ser A...................... 8.125 06/01/27 1,968,557
1,500 Tarrant Cnty, TX Hlth Fac Dev Corp
Rev Mtg Cumberland Rest Ser A Rfdg... 7.000 08/15/19 1,500,975
1,401 Texas Genl Svcs Cmty Partn Interests
Office Bldg & Land Acquisition
Proj................................. 7.000 08/01/24 1,430,933
--------------
43,120,098
--------------
UTAH 0.4%
1,500 Carbon Cnty, UT Solid Waste Disposal
Rev Rfdg Laidlaw Environmentl Ser
A.................................... 7.450 07/01/17 1,568,685
500 Hildale, UT Elec Rev Gas Turbine Elec
Fac Proj............................. 7.600 09/01/06 476,030
1,000 Hildale, UT Elec Rev Gas Turbine Elec
Fac Proj............................. 7.800 09/01/15 932,360
</TABLE>
See Notes to Financial Statements
47
<PAGE> 49
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH (CONTINUED)
$1,000 Tooele Cnty, UT Pollutn Ctl Rev
Laidlaw Environmentl Ser A Rfdg...... 7.550% 07/01/27 $ 1,051,670
2,000 Utah St Hsg Fin Agy Rev RHA Cmnty
Services Proj Ser A.................. 6.875 07/01/27 1,945,700
150 Utah St Hsg Fin Agy Single Family Mtg
Ser C2............................... 7.950 07/01/20 150,926
--------------
6,125,371
--------------
VERMONT 0.8%
2,050 Vermont Edl & Hlth Bldgs Fin Agy
Rev.................................. 6.500 10/01/14 2,057,893
4,130 Vermont Edl & Hlth Bldgs Fin Agy
Rev.................................. 6.625 10/01/29 4,027,369
3,000 Vermont Edl & Hlth Bldgs Fin Agy Rev
Hlthcare Fac Copley Manor Proj....... 6.250 04/01/29 2,673,450
535 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.000 12/15/09 503,644
1,030 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.125 12/15/14 952,348
1,375 Vermont Edl & Hlth Bldgs Fin Agy Rev
VT Council Dev Mental Hlth Ser A..... 6.250 12/15/19 1,251,676
--------------
11,466,380
--------------
VIRGINIA 2.4%
2,955 Alexandria, VA Indl Dev Auth Rev
Saint Coletta Sch Proj............... 7.750 10/15/26 2,967,736
235 Alexandria, VA Indl Dev Auth Rev
Saint Coletta Sch Proj............... 7.750 10/15/26 233,628
6,600 Alexandria, VA Redev & Hsg Auth 3001
Pk Cent Apts Ser A Rfdg (a).......... 6.375 04/01/34 6,117,540
380 Covington-Alleghany Cnty, VA Indl Dev
Auth Beverly Enterprises Inc Proj
Rfdg................................. 9.375 09/01/01 389,127
2,000 Dulles Town Cent Cmnty Dev Auth
Dulles Town Cent Proj................ 6.250 03/01/26 1,897,480
3,000 Fairfax Cnty, VA Redev & Hsg Auth
Multi-Family Hsg Rev................. 7.600 10/01/36 3,144,870
370 Greensville Cnty, VA Indl Dev Auth
Rev Wheeling Steel Proj Ser A........ 6.375 04/01/04 357,557
800 Greensville Cnty, VA Indl Dev Auth
Rev Wheeling Steel Proj Ser A........ 7.000 04/01/14 743,600
</TABLE>
See Notes to Financial Statements
48
<PAGE> 50
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA (CONTINUED)
$2,750 Hampton, VA Redev & Hsg Auth Rev
First Mtg Olde Hampton Ser A Rfdg.... 6.500% 07/01/16 $ 2,601,692
2,500 Henry Cnty, VA Indl Dev Auth Indl Dev
Rev 5Bs Inc Proj Ser A............... 7.400 09/01/17 2,462,750
1,500 Hopewell, VA Indl Dev Auth Res
Recovery Rev Stone Container Corp
Proj Rfdg............................ 8.250 06/01/16 1,599,945
4,000 Peninsula Ports Auth VA Rev Port Fac
Zeigler Coal Rfdg.................... 6.900 05/02/22 3,544,400
1,000 Pittsylvania Cnty, VA Indl Dev Auth
Rev Exempt Fac Ser A................. 7.450 01/01/09 1,050,810
5,980 Richmond, VA Redev & Hsg Auth
Multi-Family Rev Ser A Rfdg (Var Rate
Cpn)................................. 7.500 12/15/21 6,040,213
3,000 Virginia Beach, VA Dev Auth Res Care
Fac Mtg Rev (b)...................... 7.250 11/01/32 2,883,900
--------------
36,035,248
--------------
WASHINGTON 0.6%
1,900 King Cnty, WA Hsg Auth Hsg Rev
Colonial Gardens Apts Proj........... 6.200 07/01/29 1,762,203
2,500 Spokane Cnty, WA Indl Dev Corp Solid
Waste Disp Rev....................... 7.600 03/01/27 2,624,275
500 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj........................... 6.000 02/01/28 455,690
1,680 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj........................... 6.000 04/01/28 1,530,631
300 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj (e)....................... 6.000 01/01/28 273,453
1,000 Tacoma, WA Hsg Auth Rev Hsg Wedgewood
Homes Proj (e)....................... 6.000 03/01/28 911,160
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple
Knoll Apts Proj...................... 6.000 10/01/17 968,030
1,000 Vancouver, WA Hsg Auth Rev Hsg Maple
Knoll Apts Proj...................... 6.200 10/01/27 971,530
--------------
9,496,972
--------------
</TABLE>
See Notes to Financial Statements
49
<PAGE> 51
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WEST VIRGINIA 0.3%
$1,250 Randolph Cnty, WV Bldg Comm Rev
Crossover Elkins Regl Proj Rfdg...... 6.125% 07/01/23 $ 1,105,787
475 Randolph Cnty, WV Bldg Comm Rev Davis
Mem Hosp Proj Ser A Rfdg & Impt
(Prerefunded @ 11/01/01)............. 7.650 11/01/21 506,730
2,540 Weirton, WV Pollutn Ctl Rev Weirton
Steel Proj Rfdg...................... 8.625 11/01/14 2,423,389
--------------
4,035,906
--------------
WISCONSIN 1.7%
805 Baldwin, WI Hosp Rev Mtg Ser A....... 6.125 12/01/18 723,808
2,590 Baldwin, WI Hosp Rev Mtg Ser A....... 6.375 12/01/28 2,334,264
2,900 Oconto Falls, WI Cmnty Dev Oconto
Falls Tissue Inc Proj................ 7.750 12/01/22 2,955,883
285 Wisconsin Hsg & Econ Dev Auth
Homeownership Rev.................... 7.550 07/01/26 287,425
6,725 Wisconsin St Hlth & Edl Fac Auth Rev
Auroro Hlthcare Inc Ser A............ 5.600 02/15/29 5,709,525
2,000 Wisconsin St Hlth & Edl Fac Auth Rev
Clement Manor Rfdg................... 5.750 08/15/24 1,687,300
3,000 Wisconsin St Hlth & Edl Fac Auth Rev
Fh Hlthcare Dev Inc Proj............. 6.250 11/15/20 2,821,740
635 Wisconsin St Hlth & Edl Fac Auth Rev
Hess Mem Hosp Assn................... 7.200 11/01/05 641,629
2,000 Wisconsin St Hlth & Edl Fac Auth Rev
Hess Mem Hosp Assn................... 7.875 11/01/22 2,122,920
2,490 Wisconsin St Hlth & Edl Fac Auth Rev
Natl Regency of New Berlin Proj...... 8.000 08/15/25 2,655,062
3,000 Wisconsin St Hlth & Edl Milwaukee
Catholic Home Proj................... 7.500 07/01/26 3,100,980
500 Wisconsin St Hlth & Edl Rev Mem Hosp
at Oconomowoc Inc Proj............... 6.350 07/01/17 533,900
--------------
25,574,436
--------------
WYOMING 0.2%
2,620 Wyoming Cmnty Dev Auth Hsg Rev....... 6.250 06/01/27 2,639,650
--------------
</TABLE>
See Notes to Financial Statements
50
<PAGE> 52
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U. S. VIRGIN ISLANDS 0.2%
$1,210 University of Virgin Islands Pub Fin
Auth Ser A........................... 7.500% 10/01/09 $ 1,304,573
1,965 University of Virgin Islands Pub Fin
Auth Ser A........................... 7.650 10/01/14 2,125,639
--------------
3,430,212
--------------
TOTAL LONG-TERM INVESTMENTS 97.5%
(Cost $1,493,146,008)............................................. 1,473,018,477
SHORT-TERM INVESTMENTS 0.8%
(Cost $12,260,000)................................................ 12,260,000
--------------
TOTAL INVESTMENTS 98.3%
(Cost $1,505,406,008)............................................. 1,485,278,477
OTHER ASSETS IN EXCESS OF LIABILITIES 1.7%......................... 26,138,837
--------------
NET ASSETS 100.0%.................................................. $1,511,417,314
==============
</TABLE>
* Zero coupon bond
(a) Assets segregated as collateral for when issued or delayed delivery purchase
commitments.
(b) Securities purchased on a when-issued or delayed delivery basis.
(c) Interest is accruing at less than the stated coupon.
(d) Payment-in-kind 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) Non-income producing security.
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
See Notes to Financial Statements
51
<PAGE> 53
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $1,505,406,008)..................... $1,485,278,477
Cash........................................................ 329,892
Receivables:
Interest.................................................. 32,195,857
Investments Sold.......................................... 12,840,197
Fund Shares Sold.......................................... 852,281
Other....................................................... 100,981
--------------
Total Assets.......................................... 1,531,597,685
--------------
LIABILITIES:
Payables:
Investments Purchased..................................... 11,441,977
Income Distributions...................................... 4,483,942
Fund Shares Repurchased................................... 2,376,442
Distributor and Affiliates................................ 841,406
Investment Advisory Fee................................... 652,432
Accrued Expenses............................................ 216,131
Trustees' Deferred Compensation and Retirement Plans........ 168,041
--------------
Total Liabilities..................................... 20,180,371
--------------
NET ASSETS.................................................. $1,511,417,314
==============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $1,539,358,218
Accumulated Undistributed Net Investment Income............. 1,271,918
Accumulated Net Realized Loss............................... (9,085,291)
Net Unrealized Depreciation................................. (20,127,531)
--------------
NET ASSETS.................................................. $1,511,417,314
==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $970,019,328 and 88,540,535 shares of
beneficial interest issued and outstanding)............. $ 10.96
Maximum sales charge (4.75%* of offering price)......... .55
--------------
Maximum offering price to public........................ $ 11.51
==============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $416,220,388 and 38,024,205 shares of
beneficial interest issued and outstanding)............. $ 10.95
==============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $125,177,598 and 11,448,458 shares of
beneficial interest issued and outstanding)............. $ 10.93
==============
</TABLE>
*On sales of $100,000 or more, the sales charge will be reduced.
See Notes to Financial Statements
52
<PAGE> 54
STATEMENT OF OPERATIONS
For the Year Ended November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 102,383,045
-------------
EXPENSES:
Investment Advisory Fee..................................... 7,836,241
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $2,316,653, $4,352,240 and $1,145,271,
respectively)............................................. 7,814,164
Shareholder Services........................................ 879,034
Custody..................................................... 125,210
Legal....................................................... 97,513
Trustees' Fees and Related Expenses......................... 60,140
Other....................................................... 667,215
-------------
Total Expenses.......................................... 17,479,517
-------------
NET INVESTMENT INCOME....................................... $ 84,903,528
=============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain/Loss:
Investments............................................... $ 6,108,871
Futures................................................... 347,310
-------------
Net Realized Gain........................................... 6,456,181
-------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 81,205,096
End of the Period:
Investments............................................. (20,127,531)
-------------
Net Unrealized Depreciation During the Period............... (101,332,627)
-------------
NET REALIZED AND UNREALIZED LOSS............................ $ (94,876,446)
=============
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $ (9,972,918)
=============
</TABLE>
See Notes to Financial Statements
53
<PAGE> 55
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
November 30, 1999 November 30, 1998
- -------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................ $ 84,903,528 $ 79,466,871
Net Realized Gain.................................... 6,456,181 8,150,677
Net Unrealized Appreciation/Depreciation During the
Period............................................. (101,332,627) 16,740,775
-------------- --------------
Change in Net Assets from Operations................. (9,972,918) 104,358,323
-------------- --------------
Distributions from Net Investment Income*............ (83,189,838) (79,954,356)
Distributions in Excess of Net Investment Income*.... -0- (442,201)
-------------- --------------
Total Distributions................................ (83,189,838) (80,396,557)
-------------- --------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES......................................... (93,162,756) 23,961,766
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold............................ 354,696,692 263,990,520
Net Asset Value of Shares Issued Through Dividend
Reinvestment....................................... 37,916,959 35,960,456
Cost of Shares Repurchased........................... (255,511,932) (153,186,986)
-------------- --------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS....... 137,101,719 146,763,990
-------------- --------------
TOTAL INCREASE IN NET ASSETS......................... 43,938,963 170,725,756
NET ASSETS:
Beginning of the Period.............................. 1,467,478,351 1,296,752,595
-------------- --------------
End of the Period (Including accumulated
undistributed net investment income of $1,271,918
and ($441,772), respectively)...................... $1,511,417,314 $1,467,478,351
============== ==============
</TABLE>
<TABLE>
<CAPTION>
*Distributions by Class:
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Distributions from and in Excess of Net Investment
Income:
Class A Shares....................................... $ (54,739,327) $ (51,028,959)
Class B Shares....................................... (22,510,591) (23,908,632)
Class C Shares....................................... (5,939,920) (5,458,966)
-------------- --------------
$ (83,189,838) $ (80,396,557)
============== ==============
</TABLE>
See Notes to Financial Statements
54
<PAGE> 56
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 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period...................... $11.664 $11.454 $11.139 $ 11.18 $ 10.44
------- ------- ------- ------- -------
Net Investment Income........... .686 .699 .729 .735 .74
Net Realized and Unrealized
Gain/Loss..................... (.720) .217 .312 (.041) .7475
------- ------- ------- ------- -------
Total from Investment
Operations.................... (.034) .916 1.041 .694 1.4875
Less Distributions from and in
Excess of Net Investment
Income........................ .674 .706 .726 .735 .7475
------- ------- ------- ------- -------
Net Asset Value, End of the
Period........................ $10.956 $11.664 $11.454 $11.139 $ 11.18
======= ======= ======= ======= =======
Total Return (a)................ (.37%) 8.28% 9.63% 6.47% 14.65%
Net Assets at End of the Period
(In millions)................. $ 970.0 $ 905.0 $ 779.9 $ 621.0 $ 516.3
Ratio of Expenses to Average Net
Assets (b).................... .90% .91% .95% 1.01% .98%
Ratio of Net Investment Income
to Average Net Assets (b)..... 6.03% 6.01% 6.50% 6.64% 6.81%
Portfolio Turnover.............. 22% 26% 29% 23% 26%
</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
55
<PAGE> 57
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30,
-----------------------------------------------
Class B Shares 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period...................... $11.658 $11.452 $11.136 $ 11.18 $ 10.43
------- ------- ------- ------- -------
Net Investment Income........... .606 .612 .645 .653 .66
Net Realized and Unrealized
Gain/Loss..................... (.728) .216 .313 (.046) .7535
------- ------- ------- ------- -------
Total from Investment
Operations.................... (.122) .828 .958 .607 1.4135
Less Distributions from and in
Excess of Net Investment
Income........................ .590 .622 .642 .651 .6635
------- ------- ------- ------- -------
Net Asset Value, End of the
Period........................ $10.946 $11.658 $11.452 $11.136 $ 11.18
======= ======= ======= ======= =======
Total Return (a)................ (1.11%) 7.41% 8.82% 5.67% 13.89%
Net Assets at End of the Period
(In millions)................. $ 416.2 $ 451.9 $ 425.6 $ 323.8 $ 233.9
Ratio of Expenses to Average Net
Assets (b).................... 1.66% 1.67% 1.71% 1.77% 1.73%
Ratio of Net Investment Income
to Average Net Assets (b)..... 5.27% 5.26% 5.74% 5.88% 6.03%
Portfolio Turnover.............. 22% 26% 29% 23% 26%
</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
56
<PAGE> 58
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30,
-----------------------------------------------
Class C Shares 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period............................ $11.646 $11.440 $11.126 $ 11.17 $ 10.42
------- ------- ------- ------- -------
Net Investment Income............. .595 .613 .644 .652 .66
Net Realized and Unrealized
Gain/Loss....................... (.717) .215 .312 (.045) .7535
------- ------- ------- ------- -------
Total from Investment
Operations...................... (.122) .828 .956 .607 1.4135
Less Distributions from and in
Excess of Net Investment
Income.......................... .590 .622 .642 .651 .6635
------- ------- ------- ------- -------
Net Asset Value, End of the
Period.......................... $10.934 $11.646 $11.440 $11.126 $ 11.17
======= ======= ======= ======= =======
Total Return (a).................. (1.20%) 7.42% 8.82% 5.68% 13.79%
Net Assets at End of the Period
(In millions)................... $ 125.2 $ 110.6 $ 91.3 $ 50.0 $ 31.1
Ratio of Expenses to Average
Net Assets (b).................. 1.65% 1.67% 1.70% 1.77% 1.72%
Ratio of Net Investment Income to
Average Net Assets (b).......... 5.27% 5.25% 5.69% 5.86% 5.98%
Portfolio Turnover................ 22% 26% 29% 23% 26%
</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
57
<PAGE> 59
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen High Yield Municipal Fund (the "Fund") is organized as a series of
the Van Kampen Tax-Exempt Trust, a Delaware business trust, and is registered as
a diversified open-end management investment company under the Investment
Company Act of 1940, as amended. The Fund's investment objective is to seek 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 67% of the Fund's
investment portfolio at the end of the period.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Fund may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to
58
<PAGE> 60
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
market fluctuations during this period. The Fund will maintain, in a segregated
account with its custodian, assets having an aggregate value at least equal to
the amount of the when issued or delayed delivery purchase commitments until
payment is made.
The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management Inc. (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt
securities. The Fund will make payment for such securities only upon physical
delivery or evidence of book entry transfer to the account of the custodian
bank. The seller is required to maintain the value of the underlying security at
not less than the repurchase proceeds due the Fund.
C. INCOME AND EXPENSES--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the life of each
applicable security. Income and expenses of the Fund are allocated on a pro rata
basis to each class of shares, except for distribution and service fees and
transfer agency costs which are unique to each class of shares.
D. FEDERAL INCOME TAXES--It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset these losses against any future realized capital
gains. At November 30, 1999, the Fund had an accumulated capital loss
carryforward for tax purposes of $9,025,107 which expires between November 30,
2003 and November 30, 2005. Net realized gains or losses differ for financial
reporting and tax purposes primarily as a result of the deferral of losses
relating to wash sale transactions.
At November 30, 1999, for federal income tax purposes, cost of long- and
short-term investments is $1,505,466,558; the aggregate gross unrealized
appreciation is
59
<PAGE> 61
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
$36,184,193 and the aggregate gross unrealized depreciation is $56,372,274,
resulting in net unrealized depreciation of $20,188,081.
E. DISTRIBUTION OF INCOME AND GAINS--The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed annually.
Due to inherent differences in the recognition of expenses under generally
accepted accounting principles and federal income tax purposes, the amount of
distributed net investment income may differ for a particular period. These
differences are temporary in nature, but may result in book basis distribution
in excess of net investment income for certain periods.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS % PER ANNUM
- --------------------------------------------------------------------
<S> <C>
First $300 million...................................... .60 of 1%
Next $300 million....................................... .55 of 1%
Over $600 million....................................... .50 of 1%
</TABLE>
For the year ended November 30, 1999, the Fund recognized expenses of
approximately $97,500 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, 1999, the Fund recognized expenses of
approximately $345,500 representing Van Kampen Funds Inc. or its affiliates'
(collectively "Van Kampen") cost of providing accounting services to the Fund.
Van Kampen Investor Services Inc., an affiliate of the Adviser, serves as
the shareholder servicing agent for the Fund. For the year ended November 30,
1999, the Fund recognized expenses of approximately $675,600. Transfer agency
fees are determined through negotiations with the Fund's Board of Trustees and
are based on competitive market benchmarks.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are
officers of Van Kampen.
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.
60
<PAGE> 62
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
3. CAPITAL TRANSACTIONS
At November 30, 1999, capital aggregated $991,144,686, $420,468,715 and
$127,744,817 for Classes A, B, and C, respectively. For the year ended November
30, 1999, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.................................. 20,648,778 $ 233,722,916
Class B.................................. 7,393,673 83,518,334
Class C.................................. 3,318,976 37,455,442
----------- -------------
Total Sales................................ 31,361,427 $ 354,696,692
=========== =============
Dividend Reinvestment:
Class A.................................. 2,220,022 $ 25,257,877
Class B.................................. 836,714 9,525,387
Class C.................................. 276,072 3,133,695
----------- -------------
Total Dividend Reinvestments............... 3,332,808 $ 37,916,959
=========== =============
Repurchases:
Class A.................................. (11,909,062) $(135,612,380)
Class B.................................. (8,967,116) (101,266,235)
Class C.................................. (1,644,564) (18,633,317)
----------- -------------
Total Repurchases.......................... (22,520,742) $(255,511,932)
=========== =============
</TABLE>
61
<PAGE> 63
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
At November 30, 1998, capital aggregated $867,776,273, $428,691,229 and
$105,788,997 for Classes A, B, and C, respectively. For the year ended November
30, 1998, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.................................. 15,501,149 $ 180,363,153
Class B.................................. 5,190,835 60,344,265
Class C.................................. 2,003,857 23,283,102
----------- -------------
Total Sales................................ 22,695,841 $ 263,990,520
=========== =============
Dividend Reinvestment:
Class A.................................. 1,945,625 $ 22,655,360
Class B.................................. 886,374 10,315,348
Class C.................................. 257,191 2,989,748
----------- -------------
Total Dividend Reinvestments............... 3,089,190 $ 35,960,456
=========== =============
Repurchases:
Class A.................................. (7,951,196) $ (92,412,176)
Class B.................................. (4,479,101) (52,140,145)
Class C.................................. (742,697) (8,634,665)
----------- -------------
Total Repurchases.......................... (13,172,994) $(153,186,986)
=========== =============
</TABLE>
Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). Class B shares purchased
on or after June 1, 1996, automatically convert to Class A shares eight years
after the end of the calendar month in which the shares were purchased. Class B
shares purchased before June 1, 1996, automatically convert to Class A shares
six years after the end of the calendar month in which the shares were
purchased. For the year ended November 30, 1999, 4,200,418 Class B shares
automatically converted to Class A shares and are shown in the above table as
sales of Class A shares and repurchases of Class B shares. Class C shares
purchased before January 1, 1997, and any dividend reinvestment plan C shares
received thereon, automatically convert to Class A shares ten years after the
end of the calendar month in which the shares are purchased. Class C shares
purchased on or after January 1, 1997 do not posses a conversion feature. For
the year ended November 30, 1999, no Class C shares converted to Class A shares.
The CDSC will be imposed on most
62
<PAGE> 64
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
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, 1999, Van Kampen, as distributor for the
Fund, received net commissions on sales of the Fund's Class A shares of
approximately $242,600 and CDSC on the redeemed shares of Classes B and C of
approximately $636,800. 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 $464,105,455 and $325,638,418,
respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Fund has a variety of reasons to use derivative instruments, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and duration.
All of the Fund's portfolio holdings, including derivative instruments, are
marked to market each day with the change in value reflected in the unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract.
During the period the Fund invested in future contracts, a type of
derivative. A futures contract is an agreement involving the delivery of a
particular asset on a specified future date at an agreed upon price. The Fund
generally invests in futures on U.S. Treasury Bonds and the Municipal Bond Index
and typically closes the contract prior to the delivery date. These contracts
are generally used to manage the portfolio's effective maturity and duration.
63
<PAGE> 65
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999
- --------------------------------------------------------------------------------
Upon entering into future contracts, the Fund maintains, in a segregated
account with its custodian, cash or liquid securities with a value equal to its
obligation under the futures contracts. During the period the futures contract
is open, payments are received from or made to the broker based upon changes in
the value of the contract (the variation margin).
Transactions in futures contracts, each with a par value of $100,000, for
the year ended November 30, 1999, were as follows:
<TABLE>
<CAPTION>
CONTRACTS
- ----------------------------------------------------------------------
<S> <C>
Outstanding at November 30, 1998............................ -0-
Futures Opened.............................................. 540
Futures Closed.............................................. (540)
---
Outstanding at November 30, 1999............................ -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, 1999, are payments retained by Van Kampen
of approximately $3,328,300.
7. BORROWINGS
In accordance with its investment policies, the Fund may borrow from banks for
temporary purposes and is subject to certain other customary restrictions.
Effective November 30, 1999, the Fund, in conjunction with certain other funds
of Van Kampen, has entered in to a $650,000,000 committed line of credit
facility with a group of banks which expires on November 28, 2000, but is
renewable with the consent of the participating banks. Each Fund is permitted to
utilize the facility in accordance with the restrictions of its prospectus. In
the event the demand for the credit facility meets or exceeds $650 million on a
complex-wide basis, each Fund will be limited to its pro-rata percentage based
on the net assets of each participating fund. Interest on borrowings is charged
under the agreement at a rate of 0.50% above the federal funds rate per annum.
An annual commitment fee of 0.09% per annum is charged on the unused portion of
the credit facility, which each Fund incurs based on its pro-rate percentage of
quarterly net assets. The Fund made no borrowings on November 30, 1999. The Fund
has not borrowed against the credit facility during the period.
64
<PAGE> 66
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,
1999, 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
accounting principles generally accepted in the United States. 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 auditing
standards generally accepted in the United States, 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, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
January 21, 2000
65
<PAGE> 67
VAN KAMPEN FUNDS
GROWTH
Aggressive Growth
American Value*
Emerging Growth
Enterprise
Equity Growth
Focus Equity*
Growth
Pace
Small Cap Value
Technology
GROWTH AND INCOME
Comstock
Equity Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value
GLOBAL/INTERNATIONAL
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Fixed Income
Global Franchise
Global Government Securities
Global Managed Assets
International Magnum
Latin American
Strategic Income
Worldwide High Income
INCOME
Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income
CAPITAL PRESERVATION
Reserve
Tax Free Money
SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate
TAX FREE
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
To find out more about any of these
funds, ask your financial advisor for
a prospectus, which contains more
complete information, including sales
charges, risks, and ongoing expenses.
Please read it carefully before you
invest or send money.
To view a current Van Kampen fund
prospectus or to receive additional
fund information, choose from one of
the following:
- - visit our Web site at
WWW.VANKAMPEN.COM--to view a prospectus, select Download Prospectus
- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.
- - e-mail us by visiting WWW.VANKAMPEN.COM and selecting Contact Us
* Closed to new investors
66
<PAGE> 68
VAN KAMPEN HIGH YIELD MUNICIPAL FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
JERRY D. CHOATE
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
MITCHELL M. MERIN*
JACK E. NELSON
RICHARD F. POWERS, III*
PHILLIP B. ROONEY
FERNANDO SISTO
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY, PH.D.
PAUL G. YOVOVICH
OFFICERS
RICHARD F. POWERS, III*
President
DENNIS J. MCDONNELL*
Executive Vice President
and Chief Investment Officer
A. THOMAS SMITH III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
TANYA M. LODEN*
Controller
STEPHEN L. BOYD*
WAYNE D. GODLIN*
PETER W. HEGEL*
MICHAEL H. SANTO*
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 218256
Kansas City, Missouri 64121-8256
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.
(C) Van Kampen Funds Inc., 2000 All rights reserved.
(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 April 30, 2000, the report must, if used with
prospective investors, be accompanied by a quarterly performance update.
For the year ended November 30, 1999, 99.99% of the income distributions made by
the Fund were exempt from federal income taxes. In January 2000, the Fund will
provide tax information to shareholders for the 1999 calendar year.
67
<PAGE> 69
YEAR 2000 UPDATE
As we enter the new century, it's "business as usual" for Van Kampen. Thank you
for the confidence you showed in us during the changeover on January 1, 2000,
and for entrusting us with your investment portfolio. We look forward to
continuing to serve your investment needs.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763856
<NAME> VK HIGH YIELD MUNICIPAL FUND
<SERIES>
<NUMBER> 11
<NAME> HIGH YIELD MUNI A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,505,406,008<F1>
<INVESTMENTS-AT-VALUE> 1,485,278,477<F1>
<RECEIVABLES> 45,888,335<F1>
<ASSETS-OTHER> 100,981<F1>
<OTHER-ITEMS-ASSETS> 329,892<F1>
<TOTAL-ASSETS> 1,531,597,685<F1>
<PAYABLE-FOR-SECURITIES> 11,441,977<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 8,738,394<F1>
<TOTAL-LIABILITIES> 20,180,371<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 991,144,686
<SHARES-COMMON-STOCK> 88,540,535
<SHARES-COMMON-PRIOR> 77,580,797
<ACCUMULATED-NII-CURRENT> 1,271,918<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (9,085,291)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> (20,127,531)<F1>
<NET-ASSETS> 970,019,328
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 102,383,045<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (17,479,517)<F1>
<NET-INVESTMENT-INCOME> 84,903,528<F1>
<REALIZED-GAINS-CURRENT> 6,456,181<F1>
<APPREC-INCREASE-CURRENT> (101,332,627)<F1>
<NET-CHANGE-FROM-OPS> (9,972,918)<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (54,739,327)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,648,778
<NUMBER-OF-SHARES-REDEEMED> (11,909,062)
<SHARES-REINVESTED> 2,220,022
<NET-CHANGE-IN-ASSETS> 65,045,749
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,836,241<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 17,479,517<F1>
<AVERAGE-NET-ASSETS> 927,299,071
<PER-SHARE-NAV-BEGIN> 11.664
<PER-SHARE-NII> 0.686
<PER-SHARE-GAIN-APPREC> (0.720)
<PER-SHARE-DIVIDEND> (0.674)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.956
<EXPENSE-RATIO> 0.90
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763856
<NAME> VK HIGH YIELD MUNICIPAL FUND
<SERIES>
<NUMBER> 12
<NAME> HIGH YIELD MUNI B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,505,406,008<F1>
<INVESTMENTS-AT-VALUE> 1,485,278,477<F1>
<RECEIVABLES> 45,888,335<F1>
<ASSETS-OTHER> 100,981<F1>
<OTHER-ITEMS-ASSETS> 329,892<F1>
<TOTAL-ASSETS> 1,531,597,685<F1>
<PAYABLE-FOR-SECURITIES> 11,441,977<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 8,738,394<F1>
<TOTAL-LIABILITIES> 20,180,371<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 420,468,715
<SHARES-COMMON-STOCK> 38,024,205
<SHARES-COMMON-PRIOR> 38,760,934
<ACCUMULATED-NII-CURRENT> 1,271,918<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (9,085,291)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> (20,127,531)<F1>
<NET-ASSETS> 416,220,388
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 102,383,045<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (17,479,517)<F1>
<NET-INVESTMENT-INCOME> 84,903,528<F1>
<REALIZED-GAINS-CURRENT> 6,456,181<F1>
<APPREC-INCREASE-CURRENT> (101,332,627)<F1>
<NET-CHANGE-FROM-OPS> (9,972,918)<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (22,510,591)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,393,673
<NUMBER-OF-SHARES-REDEEMED> (8,967,116)
<SHARES-REINVESTED> 836,714
<NET-CHANGE-IN-ASSETS> (35,670,917)
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,836,241<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 17,479,517<F1>
<AVERAGE-NET-ASSETS> 435,239,738
<PER-SHARE-NAV-BEGIN> 11.658
<PER-SHARE-NII> 0.606
<PER-SHARE-GAIN-APPREC> (0.728)
<PER-SHARE-DIVIDEND> (0.590)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.946
<EXPENSE-RATIO> 1.66
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763856
<NAME> VK HIGH YIELD MUNICIPAL FUND
<SERIES>
<NUMBER> 13
<NAME> HIGH YIELD MUNI C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,505,406,008<F1>
<INVESTMENTS-AT-VALUE> 1,485,278,477<F1>
<RECEIVABLES> 45,888,335<F1>
<ASSETS-OTHER> 100,981<F1>
<OTHER-ITEMS-ASSETS> 329,892<F1>
<TOTAL-ASSETS> 1,531,597,685<F1>
<PAYABLE-FOR-SECURITIES> 11,441,977<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 8,738,394<F1>
<TOTAL-LIABILITIES> 20,180,371<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127,744,817
<SHARES-COMMON-STOCK> 11,448,458
<SHARES-COMMON-PRIOR> 9,497,974
<ACCUMULATED-NII-CURRENT> 1,271,918<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (9,085,291)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> (20,127,531)<F1>
<NET-ASSETS> 125,177,598
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 102,383,045<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (17,479,517)<F1>
<NET-INVESTMENT-INCOME> 84,903,528<F1>
<REALIZED-GAINS-CURRENT> 6,456,181<F1>
<APPREC-INCREASE-CURRENT> (101,332,627)<F1>
<NET-CHANGE-FROM-OPS> (9,972,918)<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (5,939,920)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,318,976
<NUMBER-OF-SHARES-REDEEMED> (1,644,564)
<SHARES-REINVESTED> 276,072
<NET-CHANGE-IN-ASSETS> 14,564,131
<ACCUMULATED-NII-PRIOR> (441,772)<F1>
<ACCUMULATED-GAINS-PRIOR> (15,541,472)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 7,836,241<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 17,479,517<F1>
<AVERAGE-NET-ASSETS> 114,743,253
<PER-SHARE-NAV-BEGIN> 11.646
<PER-SHARE-NII> 0.595
<PER-SHARE-GAIN-APPREC> (0.717)
<PER-SHARE-DIVIDEND> (0.590)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.934
<EXPENSE-RATIO> 1.65
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
