PUTNAM
HIGH INCOME
CONVERTIBLE AND
BOND FUND
ANNUAL REPORT
August 31, 1995
[LOGO]
BOSTON * LONDON * TOKYO
<PAGE>
PERFORMANCE HIGHLIGHTS
". . . Over the past several years, Putnam High Income
Convertible and Bond Fund has made quite a name for itself.
In addition to landing in the top decile of its objective
for the trailing three- and five-year periods, the fund has
beaten its two relevant benchmarks -- the CS First
Boston High-Yield Index and the CS First Boston
Convertible Index -- more often than not."
- -- Morningstar Closed-End Funds, August 11, 1995
As of September 30, 1995, the fund continued to hold
Morningstar's top rating of five stars, placing its risk-
adjusted performance in the top 10% of all hybrid funds
rated.* ----------------------------------------------------
- ------------------
FISCAL 1995 RESULTS AT A GLANCE
<TABLE><CAPTION>
<S> <C> <C> <C>
<C>
TOTAL RETURN: NAV
MARKET PRICE
- ------------------------------------------------------------
- ---------(change in value during
period plus reinvested
distributions)
12 months ended 8/31/95 14.11%
12.60%
- ------------------------------------------------------------
- ---------SHARE VALUE: NAV
MARKET PRICE
- ------------------------------------------------------------
- ---------8/31/94 $9.13
$9.75
8/31/95 9.49
10.00
- ------------------------------------------------------------
- ---------DISTRIBUTIONS: NO. INCOME CAPITAL GAINS
TOTAL
12 $0.852 --
$0.852 -----------------------------------------------------
- ----------------CURRENT RETURN NAV
MARKET PRICEE
(end of period)
Current dividend rate+ 8.98%
8.52%
- ------------------------------------------------------------
- ---------<FN>
Performance data represent past results and are not
indicative of future results. For performance over longer
periods, see pages 8 and 9.
</TABLE>
Income portion of most recent distribution,
annualized and divided by NAV or market price at end
of period.
* Morningstar, an independent mutual-fund industry
research
organization, rates a fund relative to funds with similar
investment objectives, based on the fund's 3-, 5-, and, if
applicable, 10-year performance, adjusted for risk factors
and sales charges. Ratings are updated monthly. In each
category, the top 10% of funds receive 5 stars, the
next 22.5% receive 4 stars, and the next 35% receive 3
stars. For the 3- and 5-year periods ended 9/30/95, there
were 206 and 175 funds in the hybrid category, and the fund
received 5 and 5 stars, respectively. Past performance is
not indicative of future results. <PAGE>
FROM THE CHAIRMAN
[PHOTO OF
GEORGE
PUTNAM]
(C)
KARSH,
OTTAWA
DEAR SHAREHOLDER:
PUTNAM MANAGEMENT'S FORECAST FOR THIS YEAR CALLED FOR
CONTINUED IMPROVEMENT IN BOTH THE STOCK AND BOND MARKETS.
BUT IT CERTAINLY DID NOT ANTICIPATE THE VIGOR OF THE
ADVANCE OF BOTH MARKETS DURING THE YEAR'S FIRST HALF.
FEW EXPECT THE MARKETS TO REMAIN AS EXUBERANT AS THEY HAVE
BEEN SO FAR IN 1995, BUT PUTNAM HIGH INCOME CONVERTIBLE AND
BOND FUND'S MANAGERS BELIEVE THE ADVANCE AND ECONOMIC
RECOVERY STILL HAVE A WAY TO GO.
THEY EXPECT SOME NEAR-TERM ANXIETY, HOWEVER, AS
INVESTORS TAKE PROFITS, WATCH FOR CLEARER INTEREST RATE
TRENDS, AND ASSESS THE EFFECTS OF THE SLOWER ECONOMY
ON CORPORATE EARNINGS GROWTH. THEY BELIEVE PROSPECTS ARE
BRIGHTER DOWN THE ROAD AS THESE AND OTHER ISSUES ARE
RESOLVED.
FURTHERMORE, AS THE ELECTION CAMPAIGN SPARKS TAX-CHANGE
PROPOSALS, ANTICIPATION OF MAJOR REFORMS THAT FAVOR SAVING
AND INVESTING MAY SPUR INVESTOR CONFIDENCE. SUCH A PROSPECT
COULD HELP SUSTAIN THE CURRENT MARKET ADVANCE, EVEN THOUGH
NO MEANINGFUL LEGISLATION IS LIKELY BEFORE 1997.
IN THE FOLLOWING REPORT, YOUR FUND'S MANAGERS REVIEW
PERFORMANCE DURING THE FISCAL YEAR ENDED AUGUST 31,
1995, AND PRESENT THEIR OUTLOOK FOR FISCAL 1996.
RESPECTFULLY YOURS,
[SIGNATURE}
GEORGE PUTNAM
CHAIRMAN OF THE TRUSTEES
OCTOBER 18, 1995
REPORT FROM THE FUND MANAGERS
CHARLES G. POHL, LEAD MANAGER
JENNIFER E. LEICHTER
<PAGE>
Over the 12 months ended August 31, 1995, a time marked by
rallies in both the bond and stock markets, your fund once
again demonstrated its ability to capitalize on the
strength of both markets. The fund's total return of
14.11% at net asset value (12.60% at market price)
compares favorably with the
CS First Boston High Yield Index return of 13.21% for the
same period. However, the high-yield, interest-rate-
sensitive convertibles in which the fund specializes did not
keep pace with the 16.29% return of the more equity-
sensitive Merrill Lynch AllConvertible Index. The
fund's solid absolute performance can be attributed to
effective diversification across a broad number of
market sectors and industries, to thorough credit
research, and to careful security selection.
INCREASINGLY AGGRESSIVE CONVERTIBLE STANCE PROVES TIMELY
Following 1994's severe bond-market correction, we
determined that the convertible market was poised for a
rebound. Accordingly, during the calendar year's second
half, we began to shift the fund's emphasis away from
defensive bonds and toward select high-yield convertibles
that had reached attractive valuations. As a result, we
increased convertible holdings to almost 60% of the
portfolio. This shift proved fortuitous as reduced
inflationary fears led to a bond market rebound in late
1994. Numerous high-yield convertibles -- the hardest-hit
sector during the poor market conditions -- were
exceptional performers.
Overall leadership in the convertible market underwent a
change during fiscal 1995, as a dramatic rise in stock
prices pushed valuations of equity-sensitive convertibles
ahead of their higher yielding cousins, the strongest
performers being technology and deeper cyclical sectors such
as paper, chemicals, and basic materials. As stock
prices appreciated, convertible prices rose as well,
and their yields declined accordingly. Because your
fund's objective is high current income, we took profits
on
<PAGE>
several positions with exposure to these sectors and
reinvested the proceeds in situations offering greater
income potential.
Reasonably strong balance sheets and improving cash flows
are the most important criteria we consider in security
selection. That explains why two companies as different
as computer system manufacturer Unisys Corp. and fresh
produce distributor Chiquita Brands have been
important core holdings. We also have very selective
exposure to the retailing sector in Federated Stores,
which is steadily evolving as a national force in the
industry.
SELECTIVITY IS KEY TO AVOIDING DISAPPOINTMENTS
The key to favorable high-yield bond performance in
today's modest growth environment lies in maintaining a
very diversified portfolio of seasoned, select names.
Carefully choosing improving situations in a variety of
industries has allowed us to avoid some of the problems
that have plagued the high-yield market in recent months,
particularly in the retailing and restaurant sectors.
Through thorough credit analysis, worthy investments can be
found in even the most competitive industries. The
gaming industry, for instance, offers considerable profit
potential, but is expected to remain under pressure as
additional capacity is added. We attempt to identify
experienced casino operators with favorable market positions
that are less likely to be adversely affected by new
entrants. Rather than concentrating exposure in one or two
holdings, we hedge our bets by
[BAR CHART]
TOP INDUSTRY SECTORS (8/31/95)*
Retail 7.3%
Computer equipment 5.3%
Food 4.9%
Health care 3.8%
Insurance 3.8%
*Based on percentage of total net assets. Allocations will
vary over
time.
<PAGE>
maintaining smaller positions in a number of different names
across
various regions of the country.
PORTFOLIO DIVERSIFICATION EXPANDED
As a method of enhancing capital appreciation
potential
and diversification in the fund, we have added some utility
holdings to the high-yield segment of the portfolio.
Because
their performance tends to reflect that of Treasury
securities
and is less susceptible to the seasonal trends that
characterize
the high-yield market, utilities provide an ideal
diversification
instrument for the fund.
Under the threat of increased competition, names such
as
Midland Cogeneration, Long Island Lighting Co., and
Cleveland
Electric became attractively valued. Since greater
competition for
electricity did not emerge as rapidly as was anticipated,
our
decision to purchase these bonds paid off handsomely. The
market
now views the credit quality of these companies more
favorably
and their bonds' prices have appreciated accordingly.
The convertible sector of the fund was further diversified
with
the addition of Banamex, a dollar-denominated convertible
issued on
behalf of the Banco Nationale de Mexico, the country's
largest
financial institution. Our analysis convinced us that the
bank
would remain a viable institution, despite its near-term
difficulties resulting from the peso's devaluation. We
first
purchased these bonds during the currency turmoil of
late
calendar 1994. As the situation stabilized, we gradually
increased the fund's position. This proved to be a
successful
tactic: the bonds have appreciated substantially and have
provided
high current income throughout the fiscal year's second
half.
Your fund's high-yield portfolio also benefited from
exposure
to Mexico. Mexican government bonds that were purchased in
February
1995 appreciated by approximately 15% by the fiscal year's
end.
LONGER-TERM OUTLOOK REMAINS CONSTRUCTIVE
Additional consolidation could be in the offing for the
convertible
market, particularly with respect to some of the
<PAGE>
TOP 10 HOLDINGS (8/31/95)
UNISYS CORP. $3.75 CONVERTIBLE PREFERRED
Computer systems and related products and services provider
- --------
- ------------------------------------------------------------
- -
FEDERATED DEPARTMENT STORES 9.72% CONVERTIBLE, 2004
Department store operator ----------------------------------
- --------
- ---------------------------TIME WARNER, INC. 8.75%
CONVERTIBLE, 2015
Global media and entertainment provider --------------------
- --------
- -----------------------------------------CHIQUITA BRANDS
INTERNATIONAL, INC. 7.00% CONVERTIBLE, 2001
Marketer and distributor of fresh fruits and vegetables ----
- --------
- ---------------------------------------------------------
BANCO
NATIONALE DE MEXICO 7.00% CONVERTIBLE, 1999
Banking ----------------------------------------------------
- --------
- ---------USF&G CORP. $4.10 CONVERTIBLE PREFERRED
Property-casualty and life insurer -------------------------
- --------
- ------------------------------------J. BAKER INC. 7.00%
CONVERTIBLE,
2002
Footwear retailer ------------------------------------------
- --------
- -------------------RJR NABISCO HOLDINGS $0.6012 SENIOR
CONVERTIBLE
PREFERRED
Global tobacco and food manufacturer and distributor -------
- --------
- ------------------------------------------------------
QUANTUM HEALTH
RESOURCES, INC. 4.75% CONVERTIBLE, 2000
Health-care provider ---------------------------------------
- --------
- ----------------------LIBERTY PROPERTY TRUST 8.00%
CONVERTIBLE, 2001
Real estate investment trust -- office and industrial
properties ---
- ------------------------------------------------------------
- ------*
Top holdings represent 21.3% of the fund's net assets.
Portfolio
holdings will vary over time.
more fully valued securities in the technology sector and
in
certain late-cyclical sectors. (Late cyclicals are
industries that
typically peak during the later stages of an economic
recovery,
such as papers, metals, and chemicals.) Near-term
technicals
(supply and demand) for the nonconvertible high-yield
sector lean
toward a seasonally heavy fall calendar. This could
create some
short-term instability as the market digests new issues.
Despite the possibility of some choppiness over the coming
months,
we expect overall market conditions to favor high-yield
investments. We anticipate that economic growth will
remain
moderate but reasonably firm. As long as corporate cash
flows
remain strong and interest rates remain relatively low by
historical standards, high-yield issuers in both the
convertible
and nonconvertible markets should continue to offer
investors
attractive opportunities.
The views expressed throughout the report are exclusively
those
of Putnam Management. They are not meant as investment
advice.
Although the described holdings are viewed favorably as of
8/31/95,
there is no guarantee the fund will continue to hold
these
securities in the future. The lower credit ratings of the
high-
yield corporate bonds in which the fund invests reflect
a
greater possibility that adverse changes in the economy
or in
the business conditions of the bonds' issuers may affect
their
ability to pay principal and interest on the bonds.
<PAGE>
PERFORMANCE SUMMARY
This section provides, at a glance, information about
your
fund's performance. Total return shows how the value of
the
fund's shares changed over time, assuming you held the
shares
through the entire period and reinvested all
distributions back
into the fund. We show total return in two ways: on a
cumulative long-term basis and on average how the fund
might have
grown each year over varying periods.
Performance should always be considered in light of
a
fund's investment strategy. Putnam High Income Convertible
and Bond
Fund is designed for investors aggressively seeking
high
current income through a portfolio of high-yielding
convertible
and debt securities with potential for capital appreciation.
TOTAL RETURN FOR PERIODS ENDED 8/31/95
<TABLE><CAPTION>
<S> <C> <C> <C>
<C>
MERRILL LYNCHCS
FIRST
BOSTON ALL-
CONVERTIBLE
HIGH YIELD
NAV MARKET PRICE INDEX
BOND
INDEX ------------------------------------------------------
- --------
- --------
1 year 14.11% 12.60% 16.29%
13.21%
- ------------------------------------------------------------
- --------
- -5 years 132.41 189.30 113.95
111.55
Annual average 18.37 23.67 16.43
16.17
- ------------------------------------------------------------
- --------
- -Life of fund
(since 7/9/87) 148.53 145.31 --
142.43
Annual average 11.82 11.64 --
11.45
- ------------------------------------------------------------
- --------
- -</TABLE>
TOTAL RETURN FOR PERIODS ENDED 9/30/95
(most recent calendar quarter)
<TABLE><CAPTION>
<S> <C>
<C>
NAV
MARKET
PRICE ------------------------------------------------------
- --------
- -------1 year
14.19% 14.67%
- ------------------------------------------------------------
- --------
- -5 years 148.07
219.63
- ------------------------------------------------------------
- --------
- -Annual average 19.93
26.16
- ------------------------------------------------------------
- --------
- -Life of fund
(since 7/9/87) 150.10
145.31
Annual average 11.78
11.52
- ------------------------------------------------------------
- --------
- -<FN>
Performance data represent past results. Investment
returns,
market prices and net asset value will fluctuate so an
investor's
shares, when sold, may be worth more or less than their
original
cost. Fund performance data do not take into account any
adjustment for taxes payable on reinvested distributions.
</TABLE>
<PAGE>
TERMS AND DEFINITIONS
NET ASSET VALUE (NAV) is the value of all your fund's
assets,
minus any liabilities, divided by the number of outstanding
shares.
MARKET PRICE is the current trading price of one share of
the
fund. Market prices are set by transactions between buyers
and
sellers on the New York Stock Exchange.
COMPARATIVE BENCHMARKS
THE CS FIRST BOSTON HIGH YIELD INDEX is a market-
weighted
index including publicly traded bonds having a rating below
BBB by
Standard & Poor's and Moody's. Performance figures for
the
index reflect changes of market prices, interest, and
reinvestment
of all interest payments. The average quality of bonds
included in
the index may be lower than the average quality of
those bonds
in which the fund customarily invests. Securities in the
fund's
portfolio will differ from those in the index.
THE MERRILL LYNCH ALL-CONVERTIBLE INDEX is an unmanaged
index
commonly used as a measure of performance for convertible
securities.
Performance figures for indexes reflect changes of
market
prices, interest, and reinvestment of all interest payments.
Securities in the fund's portfolio will differ from those
in the
indexes. The average quality of bonds included in the
indexes may
be lower than the average quality of those bonds in which
the
fund customarily invests. The above indexes do not take
into
account brokerage commissions or other
costs.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
for the fiscal year ended August 31, 1995
To the Trustees and Shareholders of
Putnam High Income Convertible and Bond Fund
In our opinion, the accompanying statement of assets and
liabilities, including the portfolio of investments
owned, 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 Putnam High
Income
Convertible and Bond Fund (the "fund") at August 31,
1995, and
the results of its operations, the changes in its net
assets, and
the financial highlights for the periods indicated, in
conformity with generally accepted accounting principles.
These
financial statements and financial highlights
(hereafter
referred to as "financial statements") are
the
responsibility of the fund's management; our
responsibility is
to express an opinion on these financial statements based
on our
audits. We conducted our audits of these financial
statements in
accordance with generally accepted auditing standards, which
require
that we plan and perform the audit to obtain reasonable
assurance
about whether the financial statements are free of
material
misstatement. An audit includes examining, on a test
basis,
evidence supporting the amounts and disclosures in the
financial
statements, assessing the accounting principles used and
significant estimates made by management, and evaluating
the
overall financial statement presentation. We believe that
our
audits, which included confirmation of investments owned at
August
31, 1995 by correspondence with the custodian and brokers
and the
application of alternative auditing procedures where
confirmations
from brokers were not received, provide a reasonable basis
for
the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
October 19, 1995
<PAGE>
PORTFOLIO OF INVESTMENTS OWNED
August 31, 1995
CONVERTIBLE BONDS AND NOTES (46.1%)*
<TABLE><CAPTION>
<S>
<C>
PRINCIPAL AMOUNT
VALUE
AEROSPACE (1.0%) -------------------------------------------
- -----------------
- ----------
$1,450,000 UNC, Inc. cv. sub. deb. 7 1/2s, 2006
$1,294,125
AEROSPACE AND DEFENSE (0.9%) -------------------------------
- -----------------
- ---------------------
1,450,000 Rohr Industries, Inc. cv. sub. deb. 7s, 2012
1,185,375
- ------------------------------------------------------------
- ---------
AUTOMOTIVE (0.9%) ------------------------------------------
- -----------------
- ----------
1,500,000 Mascotech, Inc. cv. sub. deb. 4
1/2s, 2003
1,125,000
AVIATION SERVICES (0.7%) -----------------------------------
- -----------------
- -----------------
1,000,000 Hudson General Corp. cv. sub. deb. 7s, 2011
862,500
BANKS (3.0%) -----------------------------------------------
- -----------------
- ------
2,800,000 Banco Nationale
de Mexico
cv. Company Guaranty 7s, 1999 (Mexico)
2,310,000
500,000 Banco Nationale de
Mexico 144A
cv. Company Guaranty 7s, 1999 (Mexico)
412,500
1,000,000 Midlantic Corp. cv. sub. deb. 8 1/4s, 2010
1,068,750
- --------
- -
3,791,2
50
BROADCASTING (1.5%) ----------------------------------------
- --------
- ---------------------
3,500,000 Comcast Corp. cv. notes 1 1/8s, 2007
1,833,125
COMPUTER EQUIPMENT (1.6%) ----------------------------------
- --------
- ---------------------------
600,000 Conner Peripherals Inc. cv. sub. deb. 6 1/2s,
2002516,750
2,500,000 Maxtor Corp. cv. sub. deb. 5 3/4s, 2012
1,543,750
- ------------------------------------------------------------
- --------
- -
2,060,5
00
CONSUMER SERVICES (1.0%) -----------------------------------
- --------
- --------------------------
1,800,000 National Education Corp.
cv. sub. deb. 6 1/2s, 2011
1,228,500
ELECTRONICS (1.1%) -----------------------------------------
- --------
- --------------------
1,700,000 Richardson
Electronics Ltd.
cv. sub. deb. 7 1/4s, 2006
1,360,000
ENVIRONMENTAL CONTROL (3.2%) -------------------------------
- --------
- ------------------------------
1,200,000 Enclean, Inc. cv. sub. deb. 7 1/2s, 2001
1,253,297
1,300,000 OHM Corp. cv. sub. deb. 8s, 2006
1,231,750
1,500,000 Riedel Environmental Technologies,
Inc. sub. cv. deb. 7s, 1999+
450,000
1,300,000 Weston (Roy F.), Inc. cv. deb. 7s, 2002
1,093,625
- --------
- -
4,028,6
72
FOOD (2.1%) ------------------------------------------------
- --------
- -------------
3,000,000 Chiquita Brands International cv. deb. 7s, 2001
2,580,000
<PAGE>
CONVERTIBLE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
HEALTH CARE (2.0%) -----------------------------------------
- --------
- ---------------------
$E 500,000 Careline, Inc. cv. sr. sub. notes 8s, 2001
$EEE
520,000
2,500,000 Quantum Health Resources, Inc.
cv. deb. 4 3/4s, 2000
1,978,125
- --------
- -
2,498,1
25
HEALTH CARE SERVICES (1.2%) --------------------------------
- --------
- -----------------------------
1,550,000 Theratx Inc. 144A cv. sub. 8s, 2002
1,449,250
INSURANCE (1.3%) -------------------------------------------
- --------
- ------------------
1,650,000 Alexander & Alexander Services, Inc.
cv. sub. deb. 11s, 2007
1,674,750
MEDIA (2.8%) -----------------------------------------------
- --------
- --------------
3,324,000 Time-Warner, Inc. cv. deb. 8 3/4s, 2015
3,469,425
MEDICAL SUPPLIES AND DEVICES (1.2%)
- ------------------------------------------------------------
- --------
-1,550,000
Cabot
Medical Corp. cv. deb. 7 1/2s, 1999
1,472,500
OILS (0.6%) ------------------------------------------------
- --------
- -------------
850,000 Wainoco Oil Corp. cv. sub. deb. 7 3/4s, 2014
714,000
PHARMACEUTICALS (1.5%) -------------------------------------
- --------
- ------------------------
2,150,000 Pharmaceutical Marketing
Services
Inc. cv. deb. 144A 6 1/4s, 2003
1,580,250
400,000 Pharmaceutical Marketing Services Inc.
cv. notes 6 1/4s, 2003
288,000
- --------
- -
1,868,2
50
PIPELINES (1.2%) -------------------------------------------
- --------
- ------------------
1,200,000 SFP Pipeline Holdings, Inc.
var. rate exch. deb. 11.16s, 2010++++
1,488,000
PUBLISHING (0.7%) ------------------------------------------
- --------
- -------------------
3,050,000 Hollinger, Inc. cv. LYON zero %, 2013
934,063
REIT'S (2.6%) ----------------------------------------------
- --------
- ---------------
1,600,000 Alexander Haagen Properties Ser. A,
cv. sub. deb. 7 1/2s, 2001
1,312,000
1,900,000 Liberty Property Trust cv. sub. deb. 8s, 2001
1,935,625
- --------
- -
3,247,6
25
RECREATION (1.6%) ------------------------------------------
- --------
- -------------------
200,000 CML Group Inc. cv. jr. sub. 5 1/2s, 2003
150,000
2,350,000 CML Group, Inc. 144A cv. jr. deb. 5 1/2s, 2003
1,809,500
- --------
- -
1,959,50
0
RESTAURANTS (0.7%) -----------------------------------------
- --------
- --------------------
1,250,000 Flagstar Corp. cv. jr. sub. deb. 10s, 2014
875,000
RETAIL (5.3%) ----------------------------------------------
- --------
- ---------------
2,500,000 Baker (J.) Inc. cv. deb. 7s, 2002
2,125,000
3,650,000 Federated Department Stores cv. deb. 9.72s,
20043,723,000
750,000 Ingles Markets, Inc. cv. sub. deb. 10s, 2008
780,000
- --------
- -
6,628,00
0
SPECIALTY CONSUMER PRODUCTS (0.8%) -------------------------
- --------
- ------------------------------------
1,375,000 Bell Sports Corp. cv. sub. deb. 4 1/4s, 2000
1,063,906
<PAGE>
CONVERTIBLE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
TELECOMMUNICATION (0.6%) -----------------------------------
- --------
- --------------------------$E 850,000
Cellular Communications, Inc.
144A cv. sub. deb. zero %, 1999
$EEE
714,000
TEXTILES (3.5%) --------------------------------------------
- --------
- -----------------
1,000,000 Dixie Yarns, Inc. cv. deb. 7s, 2012
765,000
2,200,000 Fieldcrest Cannon, Inc. cv. sub. deb. 6s, 2012
1,842,500
1,700,000 Interface, Inc. sinking fund cv. deb. 8s, 2013
1,755,250
- --------
- -
4,362,7
50
TOBACCO (1.5%) ---------------------------------------------
- --------
- ----------------
2,515,000 Standard
Commercial
Corp. cv. sub. deb. 7 1/4s, 2007
1,870,526
TOTAL CONVERTIBLE BONDS AND NOTES
(cost $55,129,383)
$57,638,717 ------------------------------------------------
- --------
- --------------
CORPORATE BONDS AND NOTES (31.6%)*
PRINCIPAL AMOUNT
VALUE
ADVERTISING (0.6%) -----------------------------------------
- --------
- ---------------------
$E 400,000 Universal Outdoor, Inc. sr. notes stepped-
coupon
zero % (14s, 7/1/99), 2004++
$EEE
246,248 500,000
Universal Outdoor, Inc. sub. deb. 11s, 2003
490,000
- --------
- -
736,24
8
AEROSPACE (0.2%) -------------------------------------------
- --------
- ------------------
200,000 Fairchild Corp. sr. notes 12 1/4s, 1999
203,500
AGRICULTURE (1.4%) -----------------------------------------
- --------
- --------------------
585,000 PMI Holdings Corp. Ser. B, sub. disc. deb.
stepped-coupon zero % (11 1/2s, 9/1/00),
2005++
315,900 1,385,000
PSF
Finance (L.P.) sr. disc. notes stepped-coupon
zero % (12s, 9/15/96), 2003++
1,204,950
250,000 PSF Finance (L.P.) sr. exch. notes 12 1/4s,
2004257,938
- --------
- -
1,778,78
8
ALUMINUM (0.5%) --------------------------------------------
- --------
- -----------------
600,000 Kaiser Aluminum & Chemical Corp.
sr. sub. notes 12 3/4s, 2003
654,000
APPAREL (0.2%) ---------------------------------------------
- --------
- ----------------
250,000 Mothers Work, Inc. 144A sr. notes 12 5/8s,
2005
246,250
AUTOMOTIVE (0.6%) ------------------------------------------
- --------
- -------------------
750,000 Key Plastics Corp. sr. notes 14s, 1999
787,500
BROADCASTING (1.2%) ----------------------------------------
- --------
- ---------------------
215,000 Commodore Media, Inc. sr. sub. notes
stepped-coupon 7 1/2s, (13 1/4s, 5/1/98),
2003++192,425 400,000
New
City Broadcasting Corp. sr.
sub. notes 11 3/8s, 2003
390,000
250,000 Panamsat (L.P.) sr. sub. notes
stepped-coupon zero % (11 3/8s, 8/1/98),
2003++
195,000 350,000
SFX
Broadcasting, Inc. sr. sub. notes
11 3/8s, 2000
364,875
378,798 Telemedia Broadcasting Corp. 144A deb.
stepped-coupon 6.4s (16s, 6/15/99), 2004++
340,918
- --------
- -
1,483,2
18
<PAGE>
CORPORATE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
BUILDING AND CONSTRUCTION (0.8%) ---------------------------
- ---------
- ----------------------------------
$E E50,000 Miles Homes Services sr. notes 12s, 2001
$37,000
500,000 Presley Co. sr. notes 12 1/2s, 2001
415,000
350,000 Schuller International Corp. sr. notes
10 7/8s, 2004
383,250
200,000 Scotsman Group, Inc. sr. secd. notes
9 1/2s, 2000
196,500
- ---------
1,031,75
0
BUILDING PRODUCTS (0.2%) -----------------------------------
- ---------
- -------------------------
250,000 American Standard, Inc. deb. 9 1/4s, 2016
251,250
BUSINESS SERVICES (0.1%) -----------------------------------
- ---------
- -------------------------
100,000 Corporate Express, Inc. Ser. B, sr. sub.
notes
9 1/8s, 2004
97,000
CABLE TELEVISION (1.7%) ------------------------------------
- ---------
- ------------------------
250,000 Adelphia Communications Corp. notes,
Ser. B, 9 7/8s, 2005++++
231,250
548,628 Adelphia Communications Corp. sr. notes
9 1/2s, 2004++++
460,848
100,000 Cablevision Industries Corp. sub. deb.
9 1/4s, 2008
104,250
493,180 Falcon Holdings Group, Inc. sr. sub.
notes 11s, 2003++++
458,657
650,000 Insight Communications Co. sr. sub. notes
stepped- coupon 8 1/4s (11 1/4, 3/1/96),
2000++
663,000 250,000
Marcus
Cable Co. (L.P.) sr. sub. disc.notes
stepped- coupon zero % (13 1/2s, 8/1/99),
2004++163,12
5 -------
- --
2,081,130
CELLULAR COMMUNICATIONS (1.7%) -----------------------------
- ---------
- -------------------------------
400,000 Cellular, Inc. sr. sub. disc. notes
stepped-coupon zero % (11 3/4s, 9/1/98),
2003++
300,000 200,000
Cencall
Communications Corp. sr. disc.notes
stepped- coupon zero % (10 1/8s, 1/15/99),
2004++100,000 250,000
Commnet
Cellular Inc. bonds 11 1/4s, 2005
256,875
250,000 Dial Call Communications, Inc. sr.
disc. notes stepped- coupon zero %
(12 1/4s, 4/15/99), 2004++
128,750
250,000 Horizon Cellular Telephone Co. sr. sub. disc.
notes Ser. B, stepped-coupon zero %
(11 3/8s, 10/1/97), 2000++
208,750
1,000,000 NEXTEL Communications, Inc. sr. disc. notes
stepped- coupon zero % (11 1/2s, 9/1/98),
2003++565,000 250,000
NEXTEL
Communications, Inc. sr. disc. notes
stepped- coupon zero % (9 3/4s, 2/15/99),
2004++121,250 500,000
Pricellular Wireless sr. disc. notes stepped-coupon
zero % (14s, 11/15/97), 2001++
412,500
- --------
- -
2,093,1
25
CHEMICALS (1.2%) -------------------------------------------
- --------
- ------------------
500,000 G-I Holdings, Inc. sr. disc. notes Ser. B,
zero %, 1998
357,500
250,000 Harris Chemical Corp. sr. sub. notes
10 3/4s, 2003
210,000
1,250,000 OSI Specialties Corp. sr. secd. disc. deb.
stepped-coupon zero % (11 1/2s, 4/15/99),
2004++925,0
00 -----
- ----
1,492,5
00
COMPUTER EQUIPMENT (0.3%) ----------------------------------
- ---------
- --------------------------
400,000 Computervision Corp. sr. sub. notes 11 3/8s,
1999401,000
<PAGE>
CORPORATE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
CONGLOMERATES (1.4%) ---------------------------------------
- ---------
- ----------------------
$E 500,000 Haynes International, Inc. sr. sub. notes
13 1/2s, 1999
$EEE
350,000 750,000
MacAndrews & Forbes Holdings, Inc. sub. deb. notes
13s, 1999
750,000
1,000,000 Talley Industries, Inc. sr. disc. deb.stepped-
coupon
zero % (12 1/4s, 10/15/98), 2005++
705,000
- ---------
1,805,000
CONSUMER SERVICES (0.4%) -----------------------------------
- ---------
- -------------------------
250,000 Solon Automated Services, Inc. notes 12 3/4s,
2001
248,750
250,000 Solon Automated Services, Inc. sr. sub. deb.
13 3/4s, 2002
249,375
- ---------
498,12
5
CONTAINERS (0.3%) ------------------------------------------
- ---------
- ------------------
350,000 Ivex Packaging Corp. sr. sub. notes
12 1/2s, 2002
376,250
ELECTRIC UTILITIES (1.7%) ----------------------------------
- ---------
- --------------------------
350,000 Cleveland Electric Illuminating Co.
Ser. E, 1st mtge. 9s, 2023
322,091
500,000 First PV Funding Corp. deb. 10.15s, 2016
507,375
500,000 Long Island Lighting Co. deb. 9s, 2022
494,390
650,000 Midland Funding Corp. II deb. Ser. A,
11 3/4s, 2005
680,875
150,000 Midland Funding Corp. II deb. Ser. B,
13 1/4s, 2006
157,875
- ---------
2,162,60
6
ELECTRONICS (0.4%) -----------------------------------------
- ---------
- -------------------
1,000,000 International Semi-Tech. Corp. sr. disc.
notes
stepped- coupon zero % (11 1/2s, 8/15/00),
2003 (Canada)++
515,000
ENTERTAINMENT (0.5%) ---------------------------------------
- ---------
- ---------------------
200,000 Century Communications Corp. sr. notes
9 1/2s, 2005
199,000
400,000 Premier Parks, Inc. 144A sr. notes 12s, 2003
402,000
- ---------
601,00
0
FINANCIAL SERVICES (0.8%) ----------------------------------
- ---------
- --------------------------
550,000 Comdata Network, Inc. sr. notes 12 1/2s, 1999
617,375
300,000 Comdata Network, Inc. sr. sub. deb. 13 1/4s,
2002352,125
- ---------
969,50
0
FOOD (1.2%) ------------------------------------------------
- ---------
- ------------
442,000 Del Monte Corp. sub. deb. notes
12 1/4s, 2002++++
375,700
800,000 Fresh Del Monte Produce Corp. sr. notes,
Ser. B, 10s, 2003 (Netherlands)
676,000
500,000Mafco, Inc. sr. sub. notes 11 7/8s, 2002
507,500
- ---------
1,559,200
FOREST PRODUCTS (0.4%) -------------------------------------
- ---------
- -----------------------
500,000 Stone Container Corp. sr. sub. notes 9 7/8s,
2001495,625
HEALTH CARE (1.2%) -----------------------------------------
- ---------
- -------------------
250,000 Continental Medical Systems Inc. sr. sub.
notes
10 7/8s, 2002
272,500
400,000 Continental Medical Systems Inc. sr. sub.
notes,
Ser. B, 10 3/8s, 2003
437,000
<PAGE>
CORPORATE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
HEALTH CARE (CONTINUED) ------------------------------------
- ---------
- -------------------------
$E 250,000 General Medical Corp. sr. sub. notes
10 7/8s, 2003
$EEE
257,500 125,000
Multicare
Cos., Inc. sr. sub. notes
12 1/2s, 2002
142,344
400,000 Quorum Health Group, Inc. sr. sub. notes
11 7/8s, 2002
444,000
- ---------
1,553,344
HOSPITAL MANAGEMENT (0.6%) ---------------------------------
- ---------
- ---------------------------
250,000 Integrated Health Services 144A sr. sub.
notes
9 5/8s, 2002
253,125
500,000 Tenet Healthcare Corp. sr. sub. notes
10 1/8s, 2005
525,000
- ---------
778,125
INSURANCE (0.7%) -------------------------------------------
- ---------
- -----------------
400,000 Penn Corp. Financial Group sr. sub. notes
9 1/4s, 2003
400,000
275,000 Reliance Group Holdings, Inc. sr. notes
9s, 2000
268,125
200,000 Reliance Group Holdings, Inc. sr. sub. deb.
9 3/4s, 2003
194,000
- ---------
862,125
LODGING (0.6%) ---------------------------------------------
- ---------
- ---------------
250,000 HMH Properties Inc. 144A sr. notes 9 1/2s,
2005
240,313
500,000 John Q. Hammons Hotels 1st mtge. notes
8 7/8s, 2004
470,000
- ---------
710,313
MEDICAL SUPPLIES AND DEVICES (0.1%) ------------------------
- ---------
- ------------------------------------
100,000 Wright Medical Technology, Inc. sr. secd.
notes Ser. B, 10 3/4s, 2000
100,500
MOTION PICTURE DISTRIBUTION (0.9%) -------------------------
- ---------
- -----------------------------------
600,000 Act III Theatres, Inc. sr. sub. notes
11 7/8s, 2003
651,000
195,000 Cinemark Mexico notes 12s, 2003
181,350
275,000 Cinemark USA sr. notes 12s, 2002
299,750
- ---------
1,132,100
OFFICE EQUIPMENT (0.2%) ------------------------------------
- ---------
- ------------------------
250,000 United Stationer Supply 144A sr.
sub. notes 12 3/4s, 2005
262,500
OIL AND GAS (1.3%) -----------------------------------------
- ---------
- -------------------
350,000 Chesapeake Energy Corp. 144A sr. notes
10 1/2s, 2002
347,375
140,000 Flores & Rucks, Inc. sr. notes 13 1/2s, 2004
155,750
184,000 Maxus Energy Corp. deb. 11 1/4s, 2013
179,400
150,000 Maxus Energy Corp. notes 9 1/2s, 2003
141,000
750,000 Trans Texas Gas Corp. sr. secd. notes
11 1/2s, 2002
785,625
- ---------
1,609,15
0
PAGING (0.3%) ----------------------------------------------
- ---------
- --------------
300,000 Mobile Telecommunications Tech. sr. notes
13 1/2s, 2002
329,250
PAPER (0.6%) -----------------------------------------------
- ---------
- -------------
250,000 Gaylord Container Corp. sr. sub. disc. deb.
stepped- coupon zero % (12 3/4s, 5/15/96),
2005++248,750 500,000
Repap New
Brunswick sr. notes 10 5/8s, 2005
(Canada)
502,500
- ---------
751,25
0
PIPELINES (0.2%) -------------------------------------------
- ---------
- -----------------
250,000 OPI International sr. notes 12 7/8s, 2002
282,500
<PAGE>
CORPORATE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
PUBLISHING (0.4%) ------------------------------------------
- ---------
- -------------------
$E 150,000 Marvel III Holdings, Inc. sr. notes Ser. B,
9 1/8s, 1998
$EEE
137,250 500,000
Marvel
Parent Holdings, Inc. sr. secd.
disc. notes zero %, 1998
350,000
- ---------
487,250
REAL ESTATE (0.3%) -----------------------------------------
- ---------
- -------------------
25,000 Chelsea Piers 144A Ser. B, stepped-coupon
zero % (11s, 6/15/99), 2009++
23,375
390,000 Chelsea Piers Ser. B, 1st mtge. disc. notes
stepped-coupon zero % (12 1/2s, 6/15/99),
2004++361,72
5 -------
- --
385,10
0
RECREATION (2.3%) ------------------------------------------
- ---------
- ------------------
330,000 Arizona Charlies Corp. 1st mtge.
Ser. B, 12s, 2000
267,300
120,000 Capitol Queen Corp. 1st mtge. notes
Ser. B, 12s, 2000
105,600
190,000 Casino America, Inc. 1st mtge. deb.
11 1/2s, 2001
198,550
150,000 Elsinore Corp. 144A 1st mtge. 20s, 2000 (
In Default)+
150,000
200,000 Fitzgerald Gaming Co. 144A sr. notes 13s,
1996
150,000
365,000 Grand Casino Resorts, Inc. notes 12 1/2s,
2000
394,200
600,000 Lady Luck Gaming Corp. 1st mtge. Ser. B,
10 1/2s, 2001
462,000
145,000 Louisiana Casino Cruises Corp. 1st mtge.
11 1/2s, 1998
137,750
450,000 Stratosphere Corp. 1st mtge. 14 1/4s, 2002
465,750
100,000 Trump Castle Funding Corp. mtge. 11 3/4s,
2003
76,000
243,000 Trump Castle Funding Corp. sr. sub. notes
11 1/2s, 2000
243,000
250,000 Trump Holdings & Funding Corp. sr. notes
15 1/2s, 2005
251,250
9,674 Trump Taj Mahal Funding, Inc. deb.
Ser. A, 11.35s, 1999++++
8,102
- ---------
2,909,502
RESTAURANTS (0.5%) -----------------------------------------
- ---------
- -------------------
400,000 Dominick's Finer Foods 144A sr. sub. notes
10 7/8s, 2005
402,000
250,000 Flagstar Corp. sr. sub. notes 11 3/8s, 2003
192,500
- ---------
594,500
RETAIL (2.0%) ----------------------------------------------
- ---------
- --------------
500,000 County Seat Stores Inc. sr. sub. notes 12s,
2002482,500
530,000 Duane Reade Corp. sr. notes Ser. B, 12s, 2002
466,400
250,000 Finlay Enterprises, Inc. sr. disc. deb.
stepped-coupon zero % (12s, 5/1/98), 2005++
172,500
600,000 Loehmanns' Holdings, Inc. sr. notes
10 1/2s, 1997
600,000
520,000 Loehmanns' Holdings, Inc. sr. sub. notes
13 3/4s, 1999
512,200
250,000 Parisian, Inc. sr. sub. notes 9 7/8s, 2003
205,000
- ---------
2,438,600
SCHOOL BUSES (0.6%) ----------------------------------------
- ---------
- --------------------
700,000 Blue Bird Body Co. sub. deb. Ser. B,
11 3/4s, 2002
719,250
SPECIALTY CONSUMER PRODUCTS (0.2%) -------------------------
- ---------
- -----------------------------------
250,000 Herff Jones, Inc. 144A sr. sub. notes
11s, 2005
254,375
STEEL (0.4%) -----------------------------------------------
- ---------
- -------------
500,000 Ispat Mexicana, SA 144A notes 10 3/8s, 2001
(Mexico)
440,000
<PAGE>
CORPORATE BONDS AND NOTES
PRINCIPAL AMOUNT
VALUE
TELECOMMUNICATION EQUIPMENT (0.1%) -------------------------
- ---------
- ------------------------------------
$E 210,000 Echostar Communications sr. disc. notes
stepped-coupon zero %, (12 7/8s, 6/1/99),
2004++$100,800
WIRELESS COMMUNICATIONS (0.3%) -----------------------------
- ---------
- -------------------------------
400,000 Centennial Cellular Corp. sr. notes 8 7/8s,
2001376,000
- ------------------------------------------------------------
- ---------
TOTAL CORPORATE BONDS AND NOTES
(cost $39,040,010)
$39,396,099 ------------------------------------------------
- ---------
- -------------
CONVERTIBLE PREFERRED STOCKS (12.8%)*
NUMBER OF SHARES
VALUE
BUILDING AND CONSTRUCTION (0.6%) ---------------------------
- ------------------
- ------------------------16,400Southdown, Inc. $2.875 cv.
pfd.
$701,100
COMPUTER EQUIPMENT (3.3%) ----------------------------------
- ------------------
- -----------------106,000Unisys Corp. Ser. A, $3.75 cv. pfd.
4,200,250
CONGLOMERATES (0.5%) ---------------------------------------
- ------------------
- ------------42,600Westinghouse Electric Corp. 144A
Ser. C, $1.30 cv. pfd.
580,425
CONSTRUCTION (0.9%) ----------------------------------------
- ------------------
- -----------50,000Perini Corp. dep. shares $2.125 cv. pfd.
1,118,750
ENERGY (0.9%) ----------------------------------------------
- ------------------
- -----28,200Maxus Energy Corp. $4.00 cv. pfd.
1,113,900
FOOD (1.6%) ------------------------------------------------
- ------------------
- ---339,300RJR Nabisco Holdings Ser. C
$0.6012 sr. cv. pfd.
2,035,800
INSURANCE (1.8%) -------------------------------------------
- ------------------
- --------45,000USF&G Corp. Ser. A, $4.10 cv. pfd.
2,250,000
OIL AND GAS (0.8%) -----------------------------------------
- ------------------
- ----------35,864Atlantic Richfield Co. $2.23 LYON cv. pfd.
959,362
OILS (0.3%) ------------------------------------------------
- ------------------
- ---25,325Santa Fe Energy Resources, Inc. $1.40 cv. pfd.
459,016
REIT's (1.1%) ----------------------------------------------
- ------------------
- -----53,500Oasis Residential, Inc. Ser. A, $2.25 cv. pfd.
1,377,625
STEEL (1.0%) -----------------------------------------------
- ------------------
- ----24,500Armco Inc. Class A, $4.50, cv. pfd.
1,194,375 ---
- ------------------------------------------------------------
- -------
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $15,556,570)
$15,990,603 -------
- ------------------------------------------------------------
- ---
<PAGE>
UNITS (2.7%)*
NUMBER OF UNITS
VALUE
140 America Telecasting 144A unit stepped-coupon
zero %, (14 1/2s, 8/15/00) 2005++
$EEE E69,300
50 Celcaribe S.A. 144A units stepped-coupon zero
%
(13 1/2s, 3/15/98), 2004++
435,000
1,015 Cellnet Data Systems Inc. units stepped-
coupon zero
% (13s, 6/15/05), 2005++
568,400
350 Health-O-Meter Product units 13s, 2002
322,000
400 Hollywood Casino 144A units 13 1/2s, 1998
480,000
600 ICF Kaiser International, Inc. sr. sub. units
12s, 2003
568,500
250 In-Flight Phone Corp. 144A units zero %, 2002
90,000
49 Intelcom Group (USA) Inc., 144A units
stepped-coupon zero %, (13 1/2s, 9/15/00),
2005++269,500 250
Intermedia Communications of Florida
13 1/2s, 2005
261,875
267 Total Renal Care, Inc. units stepped-coupon
zero % (12s, 8/15/99), 2004++
245,640
- ------------------------------------------------------------
- ---------
TOTAL UNITS (cost $3,224,090)
$3,310,215 -------------------------------------------------
- ---------
- ------------
PREFERRED STOCKS (2.2%)*
NUMBER OF SHARES
VALUE
5,500 California Federal Bank Ser. B, $10.625
exch. pfd.
$589,875 4,000
First
Nationwide Bank $11.50 pfd.
428,000
11,679 Foxmeyer Health Corp. Ser. A, $4.20 exch.
pfd.
437,963
9,320 Pyramid Communications, Inc. Ser. C, $3.125
exch. pfd.+
233,011
1,490 SDW Holdings Corp. 144A units $15.00 pfd.
409,750
25,000 Supermarkets General Holdings Corp.
$3.52 exch. pfd.
681,250
- ------------------------------------------------------------
- ---------
TOTAL PREFERRED STOCKS (cost $2,642,868)
$2,779,849 -------------------------------------------------
- ---------
- ------------
COMMON STOCKS (2.1%)*
NUMBER OF SHARES
VALUE
66,163 Computervision Corp.+
$769,145
6,303 Elsinore Corp.+
3,152
12,622 Gaylord Container Corp. A+
148,309
4,126 Grand Casinos, Inc.+
151,115
23,860 Grand Union Co. (acquired various dates
from 11/30/94 to 01/10/95 cost $529,547)+++
325,093
1,885 IFINT Diversified Holdings 144A+
94,250
14,351 Lady Luck Gaming Corp.+
28,702
58,685 Loehmanns' Holdings, Inc. 144A+
117,370
197 PMI Holdings Corp. 144A+
39,400
144 Premium Holdings L.P. 144A+
14,363
280 Pyramid Communications, Inc. New Class B
144A+
6,721
3,750 Specialty Foods Corp.+
6,563
1,477 Taj Mahal Holding Corp. Class A+
14,770
64,050 Freeport-McMoRan Inc.
360,281
22,946 Freeport-McMoRan Copper & Gold Co., Inc.
Class
B+536,363
- ------------------------------------------------------------
- ---------
TOTAL COMMON STOCKS (cost $2,137,892)
$EE2,615,597 -----------------------------------------------
- ---------
- -------------<PAGE>
BRADY BONDS (0.5%)* (cost $521,250)
PRINCIPAL AMOUNT
VALUE
$1,000,000 United Mexican States deb. 6 1/4s, 2019
$605,000
- ------------------------------------------------------------
- ---------
- -
<S> <C>
<C>
WARRANTS (0.1%)*+ EXPIRATION
NUMBER OF WARRANTS DATE
VALUE
15,000 Becker Gaming Corp. 144A 11/15/00
$7,500
620 Casino America, Inc. 11/15/96
620
4,980 Casino Magic Finance Corp. 10/14/96
249
3,806 Cinemark Mexico USA, Inc. 8/1/03
35,263
115 Commodore Media 144A 5/1/00
9,200
500 County Seat Holdings, Inc. 10/15/98
10,000
250 Dial Page, Inc. 1/1/97
375
1,260 Echostar Communications Corp. 6/01/04
14,175
5,001 Elsinore Corp. 10/8/98
500
200 Fitzgerald Gaming Co. 144A 3/15/99
2,000
175 Grand Union Co. Ser. 1 6/16/00
175
349 Grand Union Co. Ser. 2 6/16/00
70
135 Louisiana Casino Cruises, Inc. 144A 12/1/98
2,025
600 Miles Homes, Inc. 4/1/97
300
1,250 OSI Specialties Inc. 144A 4/15/99
25,000
900 President Riverboat Casinos, Inc. 144A9/23/96
45
10,000 Southdown, Inc. 10/31/96
38,750
9 Telemedia Broadcasting Corp. 144A 4/1/04
6,443
2,700 UCC Investor Holding, Inc. 10/30/99
29,700
21 Wright Medical Technology, Inc. 144A 6/30/03
3,387
- ------------------------------------------------------------
- --------
- -TOTAL WARRANTS (cost $230,204)
$185,777
- ------------------------------------------------------------
- --------
- --
SHORT-TERM INVESTMENTS (2.3%)* (cost $2,815,450)
PRINCIPAL AMOUNT
VALUE
<S>
<C>
$2,815,000Interest in $514,241,000 joint
repurchase agreement dated
August 31, 1995 with Morgan (J.P.) & Co. Inc.
due September 1, 1995 with
respect to various U.S. Treasury obligations
- -- maturity value of
$2,815,450 for an effective yield of 5.75%
$EE2,815,450
- ------------------------------------------------------------
- ----------
TOTAL INVESTMENTS (cost $121,297,717)***
$125,337,307
- ------------------------------------------------------------
- ----------
<PAGE>
<FN>
NOTES
- ------------------------------------------------------------
- ----------
* Percentages indicated are based on net assets of
$124,910,600,
which correspond to a net asset value per common share
$9.49.
++ The interest rate and date shown parenthetically
represent
the
new interest rate to be paid and the date the fund
will
begin
receiving interest at this rate.
++++ Income may be received in cash or additional
securities
at
the discretion of the issuer.
+ Non-income-producing security.
++ Restricted, excluding 144A securities, as to public
resale.
At
the date of acquisition, these securities were valued
at
cost.
There were no outstanding unrestricted securities of
the
same class as those held. Total market value of
restricted
securities owned at August 31, 1995 was $325,093 or
less than
1% of net assets.
*** The aggregate identified cost for federal income tax
purposes
is $121,341,828, resulting in gross unrealized
appreciation
and depreciation of $14,014,232 and $10,018,753,
respectively,
or net unrealized appreciation of $3,995,479.
144A after the name of a security represents those
exempt
from registration under Rule 144A of the Securities Act
of
1933. These securities may be resold in
transactions
exempt from registration, normally to qualified
institutional
buyers.
The rates shown on variable rate securities are
the
current
interest rates at August 31, 1995 which are subject
to
change based on the terms of the security.
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1995
<TABLE>
<S>
<C> ASSETS -------------------------------------------------
- --------
- ------------Investments in securities, at value
(identified cost $121,297,717) (Note 1)
$125,337,307 -----------------------------------------------
- --------
- --------------Cash
272,409 ----------------------------------------------------
- --------
- ---------Dividends, interest and other receivables
2,396,774 --------------------------------------------------
- --------
- -----------Receivable for securities sold
778,666 ----------------------------------------------------
- --------
- ---------TOTAL ASSETS
128,785,156
LIABILITIES ------------------------------------------------
- --------
- -------------Payable for securities purchased
2,602,271 --------------------------------------------------
- --------
- -----------Distributions payable to shareholders
934,773 ----------------------------------------------------
- --------
- ---------Payable for compensation of Manager (Note 2)
237,821 ----------------------------------------------------
- --------
- ---------Payable for administrative services (Note 2)
1,547 ------------------------------------------------------
- --------
- -------Payable for compensation of Trustees (Note 2)
247 --------------------------------------------------------
- --------
- -----Payable for investor servicing and custodian fees (Note
2)
21,504 -----------------------------------------------------
- --------
- --------Other accrued expenses
76,393 -----------------------------------------------------
- --------
- --------TOTAL LIABILITIES
3,874,556 --------------------------------------------------
- --------
- -----------NET ASSETS
$124,910,600 -----------------------------------------------
- --------
- ---------------
REPRESENTED BY ---------------------------------------------
- --------
- ----------------Paid-in capital (Note 1)
$123,025,349 -----------------------------------------------
- --------
- --------------Undistributed net investment income (Note 1)
202,643 ----------------------------------------------------
- --------
- ---------Accumulated net realized loss on investment
transactions
(Note 1)
(2,356,982) ------------------------------------------------
- --------
- -------------Net unrealized appreciation of investments
4,039,590 --------------------------------------------------
- --------
- -----------TOTAL -- REPRESENTING NET ASSETS APPLICABLE TO
CAPITAL
SHARES OUTSTANDING
$124,910,600 -----------------------------------------------
- --------
- ---------------
COMPUTATION OF NET ASSET VALUE -----------------------------
- --------
- --------------------------------Net asset value per share
($124,910,600 divided by
13,158,906 shares)
$9.49 ------------------------------------------------------
- --------
- -------</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
Year ended August 31, 1995
<TABLE>
<S>
<C>
- ------------------------------------------------------------
- --------
- -INVESTMENT INCOME: ----------------------------------------
- --------
- ---------------------Interest
$9,844,580
- ------------------------------------------------------------
- --------
- -Dividends
1,695,277
- ------------------------------------------------------------
- --------
- -TOTAL INVESTMENT INCOME
11,539,857
EXPENSES: --------------------------------------------------
- --------
- -----------Compensation of Manager (Note 2)
889,281
- ------------------------------------------------------------
- --------
- -Investor servicing and custodian fees (Note 2)
11,126
- ------------------------------------------------------------
- --------
- -Compensation of Trustees (Note 2)
12,078
- ------------------------------------------------------------
- --------
- -Reports to shareholders
94,995
- ------------------------------------------------------------
- --------
- -Auditing
60,474
- ------------------------------------------------------------
- --------
- -Legal
14,833
- ------------------------------------------------------------
- --------
- -Postage
65,679
- ------------------------------------------------------------
- --------
- -Exchange listing fee
24,630
- ------------------------------------------------------------
- --------
- -Registration fees
678
- ------------------------------------------------------------
- --------
- -Administrative services (Note 2)
8,643
- ------------------------------------------------------------
- --------
- -Other
5,168
- ------------------------------------------------------------
- --------
- -TOTAL EXPENSES
1,187,585
- ------------------------------------------------------------
- --------
- -NET INVESTMENT INCOME
10,352,272
- ------------------------------------------------------------
- --------
- -Net realized gain on investments (Notes 1 and 3)
990,977 ----------------------------------------------------
- --------
- ---------Net unrealized appreciation of investments during
the year
4,638,534 --------------------------------------------------
- --------
- -----------Net gain on investments
5,629,511
- ------------------------------------------------------------
- --------
- -NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$15,981,783 ------------------------------------------------
- --------
- -------------STATEMENT OF CHANGES IN NET ASSETS ------------
- --------
- -------------------------------------------------</TABLE>
<PAGE>
<TABLE>
<S> <C>
<C>
YEAR ENDED
AUGUST
31 ---------------------------------------------------------
- --------
- ----
1995
1994
- ------------------------------------------------------------
- --------
- -INCREASE (DECREASE) IN NET ASSETS -------------------------
- --------
- ------------------------------------Operations: ------------
- --------
- -------------------------------------------------Net
investment
income $10,352,272 $10,211,539 ----
- --------
- ---------------------------------------------------------Net
realized gain on investments 990,977
8,210,595 -
- ------------------------------------------------------------
- --------
- -
Net unrealized appreciation (depreciation)
of investments 4,638,534
(12,273,492)
- ------------------------------------------------------------
- --------
- -NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 15,981,783
6,148,642
- ------------------------------------------------------------
- --------
- -DISTRIBUTIONS TO SHAREHOLDERS: ----------------------------
- --------
- ---------------------------------From net investment income
(11,163,497) (11,317,308)
- ------------------------------------------------------------
- --------
- -Increase in capital share transactions
from reinvestment of distributions 1,103,891
872,159
- ------------------------------------------------------------
- --------
- -Total increase (decrease) in net assets 5,922,177
(4,296,507)
- ------------------------------------------------------------
- --------
- -NET ASSETS ------------------------------------------------
- --------
- -------------Beginning of year
118,988,423 123,284,930
- ------------------------------------------------------------
- --------
- -END OF YEAR (including undistributed net
investment income of $202,643 and $645,295,
respectively) $124,910,600
$118,988,423
- ------------------------------------------------------------
- --------
- --
NUMBER OF FUND SHARES --------------------------------------
- --------
- -----------------------Shares outstanding at beginning of
year
13,037,556 12,945,798
- ------------------------------------------------------------
- --------
- -Shares issued in connection with
reinvestment of distributions 121,350
91,758
- ------------------------------------------------------------
- --------
- -SHARES OUTSTANDING AT END OF YEAR 13,158,906
13,037,556
- ------------------------------------------------------------
- --------
- -</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<S> <C> <C> <C> <C>
<C>
Year ended
August
31 ---------------------------------------------------------
- --------
- ----
1995 1994 1993 1992
1991
- ------------------------------------------------------------
- --------
- -NET ASSET VALUE,
BEGINNING OF PERIOD $9.13 $9.52 $8.49 $7.56
$6.94 ------------------------------------------------------
- --------
- -------INVESTMENT OPERATIONS
Net investment income .79 .78 .84 .88
.83
Net realized and unrealized
gain (loss) on investments .42 (.30) 1.05 .99
.65
- ------------------------------------------------------------
- --------
- -TOTAL FROM INVESTMENT
OPERATIONS 1.21 .48 1.89 1.87
1.48
- ------------------------------------------------------------
- --------
- -LESS DISTRIBUTIONS:
From net investment income(.85) (.87) (.84) (.94)
(.85) In excess of net investment
income EE-- EE-- (.02) EE--
EE-
- -
From net realized gain on
investments EE-- EE-- EE-- EE--
(.01)
- ------------------------------------------------------------
- --------
- -TOTAL DISTRIBUTIONS (.85) (.87) (.86)
(.94)
(.86) ------------------------------------------------------
- --------
- -------NET ASSET VALUE,
END OF PERIOD $9.49 $9.13 $9.52 $8.49
$7.56 ------------------------------------------------------
- --------
- --------
MARKET VALUE, END OF
PERIOD $10.000 $9.750 $10.000 $8.875
$7.625 -----------------------------------------------------
- --------
- --------TOTAL INVESTMENT RETURN AT
MARKET VALUE (%)(A) 12.60 6.84 23.78 30.71
48.65
- ------------------------------------------------------------
- --------
- -NET ASSETS, END OF PERIOD
(in thousands) $124,911 $118,988 $123,285 $108,909
$95,770 ----------------------------------------------------
- --------
- ---------Ratio of expenses to
average net assets (%) 1.00 1.04 1.03 1.13
1.31
- ------------------------------------------------------------
- --------
- -Ratio of net investment
income to average net
assets (%) 8.73 8.23 9.39 10.92
12.35
- ------------------------------------------------------------
- --------
- -Portfolio turnover (%) 61.19 52.10 71.63
45.84
68.36
- ------------------------------------------------------------
- --------
- -<FN>
(a) Total investment return assumes dividend reinvestment
and does
not reflect the effect of sales charge.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31,1995
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES
The fund is registered under the Investment Company Act of
1940,
as amended, as a diversified, closed-end management
investment
company. The fund's primary investment objective is high
current
income; its secondary objective is capital appreciation.
The fund
invests in highyielding convertible securities. The fund
seeks to
augment current income by investing in nonconvertible high-
yielding, lower-rated, or nonrated debt securities, which
are
believed not to involve undue risk to income or principal.
The following is a summary of significant accounting
policies consistently followed by the fund in the
preparation of its
financial statements. The policies are in conformity with
generally accepted accounting principles.
A SECURITY VALUATION Investments for which market
quotations
are readily available are stated at market value, which
is
determined using the last reported sale price, or, if no
sales are
reported -- as in the case of some securities traded over-
the-
counter -- the last reported bid price, except that
certain U.S.
government obligations are stated at the mean between the
last
reported bid and asked prices. Market quotations are not
considered
to be readily available for longterm corporate bonds and
notes;
such investments are stated at fair value on the basis
of
valuations furnished by a pricing service or brokers,
approved
by the Trustees, which determines valuations for normal,
institutional-size trading units of such securities
using
methods based on market transactions for comparable
securities
and various relationships between securities that are
generally
recognized by institutional traders. Short-term
investments
having remaining maturities of 60 days or less are
stated at
amortized cost, which approximates market value, and other
investments, including restricted securities, are stated at
fair
value following procedures approved by the Trustees.
B JOINT TRADING ACCOUNT Pursuant to an exemptive order
issued by
the Securities and Exchange Commission, the fund may
transfer
uninvested cash balances into a joint trading account,
along with
the cash of other registered investment companies
managed by
Putnam Investment
Management, Inc. (Putnam Management), the fund's Manager,
a
whollyowned subsidiary of Putnam Investments, Inc., and
certain other accounts. These balances may be invested in
one or
more repurchase agreements and/or short-term money market
instruments.
C REPURCHASE AGREEMENTS The fund, or any joint trading
account,
through its custodian, receives delivery of the underlying
securities, the market value of which at the time of
purchase is
required to be in an amount at least equal to the
resale price,
including accrued interest. Putnam Mangement is
responsible for
determining that the value of these underlying securities
is at
all times at least equal to the resale price, including
accrued
interest.
D SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security
transactions are accounted for on the trade date (date the
order
to buy
<PAGE>
or sell is executed). Interest income is recorded on the
accrual
basis and dividend income is recorded on the ex-dividend
date.
Discount on zero coupon bonds, original issue discount
bonds,
payment in kind bonds and stepped-coupon bonds is accreted
according to the effective yield method.
E FEDERAL TAXES It is the policy of the fund to
distribute all
of
its taxable income within the prescribed time and
otherwise
comply with the provisions of the Internal Revenue
Code
applicable to regulated investment companies. It is also
the
intention of the fund to distribute an amount sufficient
to avoid
imposition of any excise tax under Section 4982 of the
Internal Revenue Code of 1986. Therefore, no provision
has
been made for federal taxes on income, capital gains or
unrealized appreciation of securities held and for excise
tax on
income and capital gains.
At August 31, 1995, the fund had a capital loss
carryover
of approximately $1,721,000, available to offset future net
capital
gain, if any, which will expire on August 31, 1999.
F DISTRIBUTIONS TO SHAREHOLDERS Distributions to
shareholders
are
recorded by the fund on the ex-dividend date.
At certain times, the fund may pay distributions at a level
rate
even though, as a result of market conditions or investment
decisions, the fund may not achieve projected investment
results
for a given period.
The amount and character of income and gains to be
distributed
are determined in accordance with income tax regulations
which may
differ from generally accepted accounting principles.
These
differences include interest on payment in kind
securities, post
October loss deferrals, defaulted bond interest, market
discount
and dividends payable. Reclassifications are made to the
fund's
capital acounts to reflect income and gains available
for
distribution (or available capital loss carryovers) under
income
tax regulations. For the year ended August 31, 1995,
the fund
reclassified $368,573 to increase undistributed net
investment
income, $1,109,246 to increase accumulated net
realized loss
on investments and $740,673 to increase paid-in capital.
The
calculation of net investment income per share in the
financial
highlights table excludes these adjustments.
NOTE 2
MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER
TRANSACTIONS
Compensation of Putnam Management, for management and
investment advisory services is paid quarterly based on the
average
weekly net assets of the fund. Under the management
contract, such
fee is based on the following annual rates: 0.75% of the
first
$500 million of
average weekly net assets, 0.65% of the next $500 million,
0.60%
of the next $500 million and 0.55% of any amount over
$1.5
billion, subject, under current law, to reductions in any
year by
the amount of certain brokerage commissions and fees (less
expenses) received by affiliates of Putnam Management on
the
fund's portfolio transactions.
The fund also reimburses Putnam Management for the
compensation
and related expenses of certain officers of the fund and
their
staff who provide administrative services to the fund. The
aggregate amount of all such reimbursements is determined
annually
by the Trustees.
Trustees of the fund receive an annual Trustee's fee of
$820 and
an additional fee for each Trustees' meeting attended.
Trustees who
are not interested persons of Putnam Management and
who
serve
on
committees of the Trustees receive additional fees for
attendance
at certain committee meetings.
<PAGE>
During the year ended August 31, 1995, the fund adopted a
Trustee
Fee Deferral Plan (the "Plan") which allows the Trustees
to
defer the receipt of all or a portion of Trustees Fees
payable on
or after July 1, 1995. The deferred fees remain in the
fund and
are invested in the fund or in other Putnam funds until
distribution in accordance with the Plan.
Custodial functions for the fund are provided by Putnam
Fiduciary Trust Company (PFTC), a wholly-owned subsidiary of
Putnam
Investments, Inc. Investor servicing agent functions
are
provided by Putnam Investor Services, a division of PFTC.
Investor servicing and custodian fees reported in the
Statement
of operations for the year ended August 31, 1995 have been
reduced by credits allowed by PFTC, and such credits
amounted to
$164,771.
NOTE 3
PURCHASES AND SALES OF SECURITIES
During the year ended August 31, 1995, purchases and
sales
of investment securities other than short-term
investments
aggregated $73,222,434 and $68,566,931, respectively. There
were no
purchases and sales of U.S. government obligations during
the year
ended August 31, 1995. In determining the net gain or loss
on
securities sold, the cost of securities has been determined
on the
identified cost basis.
- ------------------------------------------------------------
- --------
- --
FEDERAL TAX INFORMATION
(Unaudited)
The fund has designated 16.21% of the distributions
from
net investment income as qualifying for the dividends
received
deduction for corporations.
The form 1099 you will receive in January 1996 will show
the
tax status of all distributions paid to your account in
calender
1995.
<PAGE>
RESULTS OF JULY 13, 1995 SHAREHOLDER MEETING
(Unaudited)
An annual meeting of shareholders of the fund was held on
July
13, 1995. At the meeting, each of the nominees for
Trustees was
elected, as follows:
<TABLE>
<S> <C>
<C>
VOTES FOR
VOTES
WITHHELD ---------------------------------------------------
- --------
- -----------
Jameson Adkins Baxter 10,361,880
141,646
- ------------------------------------------------------------
- --------
- -Hans H. Estin 10,367,499
136,027
- ------------------------------------------------------------
- --------
- -John A. Hill 10,371,773
131,752
- ------------------------------------------------------------
- --------
- -Elizabeth T. Kennan 10,369,968
133,557
- ------------------------------------------------------------
- --------
- -Lawrence J. Lasser 10,368,054
135,471
- ------------------------------------------------------------
- --------
- -Robert E. Patterson 10,370,773
132,752
- ------------------------------------------------------------
- --------
- -Donald S. Perkins 10,371,070
132,455
- ------------------------------------------------------------
- --------
- -William F. Pounds 10,370,773
132,752
- ------------------------------------------------------------
- --------
- -George Putnam 10,371,773
131,752
- ------------------------------------------------------------
- --------
- -George Putnam, III 10,370,773
132,752
- ------------------------------------------------------------
- --------
- -E. Shapiro 10,352,191
142,334
- ------------------------------------------------------------
- --------
- -A.J.C. Smith 10,369,573
133,952
- ------------------------------------------------------------
- --------
- -W. Nicholas Thorndike 10,367,054
136,471
- ------------------------------------------------------------
- --------
- -</TABLE>
A proposal to ratify the selection of Price Waterhouse LLP
as
auditors
for the fund was approved as follows: 10,307,211 votes for,
and
95,684 votes against, with 100,631 abstentions and
broker non-
votes. A proposal to fix the number of Trustees at 13 was
approved
as follows: 10,352,191 for, and 142,334 against. All
tabulations
have been rounded to the nearest whole number.
<PAGE>
SELECTED QUARTERLY DATA
(Unaudited)
<TABLE>
<C> <C> <C> <C> <C> <C> <C>
<C>
NET
REALIZED AND
UNREALIZED
INVESTMENT NET INVEST- GAIN
(LOSS)
ON
INCOME MENT INCOME
INVESTMENTS
- ------------------------------------------------------------
- --------
-QUARTER PER PER
PER
ENDED TOTAL SHARE TOTAL SHARE
TOTAL
SHARE
- ------------------------------------------------------------
- --------
-8/31/95 $3,022,190 $.23 $2,653,049 $.20
$2,637,436
$.20
- ------------------------------------------------------------
- --------
-5/31/95 $2,905,323 $.22 $2,640,685 $.20
$5,658,746
$.43
- ------------------------------------------------------------
- --------
-2/28/95 $2,800,016 $.22 $2,598,730 $.21
$2,260,427
$.16
- ------------------------------------------------------------
- --------
-11/30/94 $2,812,328 $.21 $2,459,808
$.18$(4,927,098)
$(.37)
- ------------------------------------------------------------
- --------
-8/31/94 $2,799,478 $.21 $2,557,000
$.19$(1,773,495)
$(.13)
- ------------------------------------------------------------
- --------
-5/31/94 $3,021,383 $.22 $2,659,542
$.20$(8,127,565)
$(.62)
- ------------------------------------------------------------
- --------
-2/28/94 $2,792,040 $.22 $2,449,653 $.19
$2,732,945
$.21
- ------------------------------------------------------------
- --------
-11/30/93 $2,892,910 $.23 $2,545,344 $.20
$3,105,218
$.24
- ------------------------------------------------------------
- --------
- --
SELECTED QUARTERLY DATA (CONTINUED)
<C> <C>
<C>
<C>
NET INCREASE
(DECREASE) IN
NET ASSETS
RESULTING FROM NET
ASSETS
AT
OPERATIONS END
OF
PERIOD
PER
PER
TOTAL SHARE
TOTAL
SHARE
- ------------------------------------------------------------
- --------
-$5,290,485 $.40
$124,910,600
$9.49
- ------------------------------------------------------------
- --------
-$8,299,431 $.63
$122,138,616
$9.30
- ------------------------------------------------------------
- --------
-$4,859,157 $.37
$116,361,701
$8.88
- ------------------------------------------------------------
- --------
-$(2,467,290) $(.19)
$114,017,954
$8.73
$783,506 $.06
$118,988,423
$9.13
- ------------------------------------------------------------
- --------
-$(5,468,023) $(.42)
$120,697,701
$9.28
- ------------------------------------------------------------
- --------
-$5,182,598 $.40
$128,746,190
$9.91
- ------------------------------------------------------------
- --------
-$5,650,562 $.44
$126,456,409
$9.75
- ------------------------------------------------------------
- --------
- -</TABLE>
<PAGE>
FUND INFORMATION
INVESTMENT MANAGER
Putnam Investment
Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
Eli Shapiro
A.J.C. Smith
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Peter Carman
Vice President
Brett C. Browchuk
Vice President
Charles G. Pohl
Vice President and Fund Manager
Jennifer E. Leichter
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
Beverly Marcus
Clerk and Assistant Treasurer
Call 1-800-225-1581 weekdays from 9 a.m. to 5 p.m. Eastern
Time for
upto-date information about the fund's NAV or to request
Putnam's
quarterly Closed-End Fund Commentary.
E
<PAGE>
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Bulk
Rate U.S.
Postage
PA
ID
Putnam
Investmen
ts
20436-061
<PAGE>
APPENDIX TO FORM N-30D FILINGS TO DESCRIBE DIFFERENCES
BETWEEN
PRINTED AND EDGAR-FILED TEXTS.
(1) Rule lines for tables are omitted.
(2) Italic typefaces is displayed in normal type.
(3) Boldface type is displayed in capital letters.
(4) Headers (e.g. the names of the fund) and footers (e.g.
page
numbers and OThe accompanying notes are an integral
part of
these financial statementsO) are omitted.
(5) Because the printed page breaks are not reflected,
certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(6) Bullet points and similar graphic symbols are omitted.
(7) Page numbering is different.
