<PAGE> PAGE 1
000 B000000 08/31/98
000 C000000 0000811921
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 JOHN HANCOCK TAX-EXEMPT SERIES FUND
001 B000000 811-5079
001 C000000 6173751702
002 A000000 101 HUNTINGTON AVENUE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02199
002 D020000 7603
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C010200 2
007 C020200 JOHN HANCOCK MASSACHUSETTS TAX-FREE INCOME
007 C030200 N
007 C010300 3
007 C020300 JOHN HANCOCK NEW YORK TAX-FREE INCOME FUND
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 JOHN HANCOCK ADVISERS, INC.
008 B00AA01 A
008 C00AA01 801-8124
008 D01AA01 BOSTON
008 D02AA01 MA
008 D03AA01 02199
008 D04AA01 7603
011 A00AA01 JOHN HANCOCK FUNDS, INC.
011 B00AA01 8-43582
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02199
011 C04AA01 7603
012 A00AA01 JOHN HANCOCK SIGNATURE SERVICES, INC.
<PAGE> PAGE 2
012 B00AA01 84-1885
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02199
013 A00AA01 PRICEWATERHOUSECOOPERS LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 JOHN HANCOCK DISTRIBUTORS, INC.
014 B00AA01 8-13995
014 A00AA02 JOHN HANCOCK FUNDS, INC.
014 B00AA02 8-43582
015 A00AA01 INVESTORS BANK & TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02111
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 68
019 C00AA00 JOHNHANCOC
020 A000001 BEAR STEARNS
020 B000001 13-2975144
020 C000001 2
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 2
022 A000001 PRUDENTIAL SECURITIES
022 B000001 22-2347336
022 C000001 5764
022 D000001 8879
022 A000002 SMITH BARNEY
022 B000002 13-1912900
022 C000002 3455
022 D000002 3095
022 A000003 MERRILL LYNCH
022 B000003 13-5674085
022 C000003 2205
022 D000003 3304
022 A000004 FIRST ALBANY CORP.
022 B000004 14-1391446
022 C000004 2430
022 D000004 2510
<PAGE> PAGE 3
022 A000005 BEAR STEARNS & CO.
022 B000005 13-2975144
022 C000005 3946
022 D000005 0
022 A000006 SIMONS (WILLIAM E.) & SONS
022 B000006 22-3017217
022 C000006 1260
022 D000006 2531
022 A000007 PAINE WEBBER
022 B000007 13-2638166
022 C000007 2181
022 D000007 1063
022 A000008 LEHMAN BROTHERS
022 B000008 13-2726611
022 C000008 1966
022 D000008 983
022 A000009 GOLDMAN SACHS
022 B000009 13-5108880
022 C000009 2938
022 D000009 0
022 A000010 J.P. MORGAN
022 B000010 13-3224016
022 C000010 971
022 D000010 712
023 C000000 30158
023 D000000 24595
024 00AA00 N
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
037 00AA00 N
038 00AA00 0
039 00AA00 Y
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 250000
048 A02AA00 0.500
048 B01AA00 250000
048 B02AA00 0.450
048 C01AA00 500000
<PAGE> PAGE 4
048 C02AA00 0.425
048 D01AA00 250000
048 D02AA00 0.400
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 1250000
048 K02AA00 0.300
054 A00AA00 Y
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 N
060 B00AA00 N
061 00AA00 1000
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
<PAGE> PAGE 5
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 GULF INSURANCE COMPANY
080 B00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 45000
081 A00AA00 Y
081 B00AA00 77
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
028 A010200 1276
028 A020200 180
028 A030200 0
028 A040200 698
028 B010200 1391
028 B020200 169
028 B030200 0
028 B040200 1153
028 C010200 2252
028 C020200 157
028 C030200 0
028 C040200 348
028 D010200 1301
028 D020200 181
028 D030200 0
028 D040200 1035
028 E010200 1563
028 E020200 172
028 E030200 0
028 E040200 336
028 F010200 707
028 F020200 162
028 F030200 0
<PAGE> PAGE 6
028 F040200 591
028 G010200 8490
028 G020200 1021
028 G030200 0
028 G040200 4161
028 H000200 7577
029 000200 Y
030 A000200 138
030 B000200 4.50
030 C000200 0.00
031 A000200 17
031 B000200 0
032 000200 76
033 000200 45
034 000200 Y
035 000200 5
036 A000200 Y
036 B000200 0
042 A000200 0
042 B000200 0
042 C000200 100
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 205
044 000200 212
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 Y
053 B000200 Y
053 C000200 N
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.9
062 M000200 0.0
062 N000200 0.0
062 O000200 99.1
062 P000200 0.0
<PAGE> PAGE 7
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 18.3
064 A000200 N
064 B000200 N
070 A010200 Y
070 A020200 N
070 B010200 N
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 Y
070 E020200 Y
070 F010200 N
070 F020200 N
070 G010200 Y
070 G020200 Y
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 N
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 9562
071 B000200 3322
071 C000200 56677
071 D000200 6
072 A000200 12
072 B000200 3537
072 C000200 0
072 D000200 0
072 E000200 0
<PAGE> PAGE 8
072 F000200 296
072 G000200 10
072 H000200 0
072 I000200 64
072 J000200 46
072 K000200 0
072 L000200 8
072 M000200 3
072 N000200 14
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 21
072 S000200 1
072 T000200 205
072 U000200 0
072 V000200 0
072 W000200 2
072 X000200 670
072 Y000200 229
072 Z000200 3096
072AA000200 336
072BB000200 0
072CC010200 2017
072CC020200 0
072DD010200 2935
072DD020200 180
072EE000200 0
073 A010200 0.6589
073 A020200 0.5717
073 B000200 0.0000
073 C000200 0.0000
074 A000200 0
074 B000200 0
074 C000200 0
074 D000200 63748
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 66
074 K000200 0
074 L000200 955
074 M000200 40
074 N000200 64809
074 O000200 373
074 P000200 31
074 Q000200 0
074 R010200 0
074 R020200 0
<PAGE> PAGE 9
074 R030200 0
074 R040200 71
074 S000200 0
074 T000200 64334
074 U010200 4613
074 U020200 492
074 V010200 12.60
074 V020200 12.60
074 W000200 0.0000
074 X000200 2193
074 Y000200 394
075 A000200 0
075 B000200 59122
076 000200 0.00
028 A010300 524
028 A020300 194
028 A030300 0
028 A040300 778
028 B010300 402
028 B020300 182
028 B030300 0
028 B040300 1586
028 C010300 603
028 C020300 165
028 C030300 0
028 C040300 1035
028 D010300 737
028 D020300 192
028 D030300 0
028 D040300 1336
028 E010300 854
028 E020300 177
028 E030300 0
028 E040300 1125
028 F010300 1271
028 F020300 164
028 F030300 0
028 F040300 324
028 G010300 4391
028 G020300 1074
028 G030300 0
028 G040300 6184
028 H000300 3890
029 000300 Y
030 A000300 19
030 B000300 4.50
030 C000300 0.00
031 A000300 5
031 B000300 0
032 000300 4
033 000300 10
<PAGE> PAGE 10
034 000300 Y
035 000300 8
036 A000300 Y
036 B000300 0
042 A000300 0
042 B000300 0
042 C000300 100
042 D000300 0
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 0
043 000300 198
044 000300 206
049 000300 N
050 000300 N
051 000300 N
052 000300 N
053 A000300 Y
053 B000300 Y
053 C000300 N
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 100.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 19.7
064 A000300 N
064 B000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 N
070 D020300 N
<PAGE> PAGE 11
070 E010300 Y
070 E020300 Y
070 F010300 N
070 F020300 N
070 G010300 Y
070 G020300 Y
070 H010300 N
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
070 K020300 N
070 L010300 N
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 Y
070 N020300 N
070 O010300 N
070 O020300 N
070 P010300 Y
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 24899
071 B000300 23820
071 C000300 52230
071 D000300 46
072 A000300 12
072 B000300 3413
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 286
072 G000300 10
072 H000300 0
072 I000300 66
072 J000300 55
072 K000300 0
072 L000300 9
072 M000300 3
072 N000300 4
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 21
072 S000300 1
<PAGE> PAGE 12
072 T000300 198
072 U000300 0
072 V000300 0
072 W000300 3
072 X000300 656
072 Y000300 228
072 Z000300 2985
072AA000300 615
072BB000300 0
072CC010300 1108
072CC020300 0
072DD010300 2828
072DD020300 174
072EE000300 0
073 A010300 0.6593
073 A020300 0.0572
073 B000300 0.0000
073 C000300 0.0000
074 A000300 1606
074 B000300 0
074 C000300 0
074 D000300 58737
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 521
074 K000300 0
074 L000300 0
074 M000300 802
074 N000300 61666
074 O000300 3397
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 72
074 S000300 0
074 T000300 58197
074 U010300 4149
074 U020300 461
074 V010300 12.62
074 V020300 12.62
074 W000300 0.0000
074 X000300 2101
074 Y000300 0
075 A000300 0
075 B000300 57237
076 000300 0.00
<PAGE> PAGE 13
SIGNATURE SUSAN S. NEWTON
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> JOHN HANCOCK MASSACHUSETTS TAX-FREE INCOME FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 58,223,788
<INVESTMENTS-AT-VALUE> 63,747,530
<RECEIVABLES> 1,022,088
<ASSETS-OTHER> 39,604
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 64,809,222
<PAYABLE-FOR-SECURITIES> 373,330
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,265
<TOTAL-LIABILITIES> 475,595
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 59,080,925
<SHARES-COMMON-STOCK> 4,613,097
<SHARES-COMMON-PRIOR> 4,476,959
<ACCUMULATED-NII-CURRENT> 2,838
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (291,631)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,541,495
<NET-ASSETS> 64,333,627
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,536,861
<OTHER-INCOME> 0
<EXPENSES-NET> 441,275
<NET-INVESTMENT-INCOME> 3,095,586
<REALIZED-GAINS-CURRENT> 335,961
<APPREC-INCREASE-CURRENT> 2,017,216
<NET-CHANGE-FROM-OPS> 5,448,763
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,934,706
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 697,518
<NUMBER-OF-SHARES-REDEEMED> 716,685
<SHARES-REINVESTED> 155,305
<NET-CHANGE-IN-ASSETS> 7,662,604
<ACCUMULATED-NII-PRIOR> 18,671
<ACCUMULATED-GAINS-PRIOR> (627,734)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 295,608
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 441,275
<AVERAGE-NET-ASSETS> 55,203,932
<PER-SHARE-NAV-BEGIN> 12.12
<PER-SHARE-NII> 0.66
<PER-SHARE-GAIN-APPREC> 0.48
<PER-SHARE-DIVIDEND> (0.66)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.60
<EXPENSE-RATIO> 0.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> JOHN HANCOCK MASSACHUSETTS TAX-FREE INCOME FUND - CLASS B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 58,223,788
<INVESTMENTS-AT-VALUE> 63,747,530
<RECEIVABLES> 1,022,088
<ASSETS-OTHER> 39,604
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 64,809,222
<PAYABLE-FOR-SECURITIES> 373,330
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,265
<TOTAL-LIABILITIES> 475,595
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 59,080,925
<SHARES-COMMON-STOCK> 491,696
<SHARES-COMMON-PRIOR> 199,509
<ACCUMULATED-NII-CURRENT> 2,838
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (291,631)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,541,495
<NET-ASSETS> 64,333,627
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,536,861
<OTHER-INCOME> 0
<EXPENSES-NET> 441,275
<NET-INVESTMENT-INCOME> 3,095,586
<REALIZED-GAINS-CURRENT> 335,961
<APPREC-INCREASE-CURRENT> 2,017,216
<NET-CHANGE-FROM-OPS> 5,448,763
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 179,625
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 323,749
<NUMBER-OF-SHARES-REDEEMED> 40,691
<SHARES-REINVESTED> 9,129
<NET-CHANGE-IN-ASSETS> 7,662,604
<ACCUMULATED-NII-PRIOR> 18,671
<ACCUMULATED-GAINS-PRIOR> (627,734)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 295,608
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 441,275
<AVERAGE-NET-ASSETS> 3,917,672
<PER-SHARE-NAV-BEGIN> 12.12
<PER-SHARE-NII> 0.57
<PER-SHARE-GAIN-APPREC> 0.48
<PER-SHARE-DIVIDEND> (0.57)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.60
<EXPENSE-RATIO> 1.41
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> JOHN HANCOCK NEW YORK TAX-FREE INCOME FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 53,723,645
<INVESTMENTS-AT-VALUE> 58,736,526
<RECEIVABLES> 1,320,299
<ASSETS-OTHER> 1,609,607
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,666,432
<PAYABLE-FOR-SECURITIES> 3,397,212
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,461
<TOTAL-LIABILITIES> 3,469,673
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,051,222
<SHARES-COMMON-STOCK> 4,148,992
<SHARES-COMMON-PRIOR> 4,416,264
<ACCUMULATED-NII-CURRENT> 15,483
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 116,757
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,013,297
<NET-ASSETS> 58,196,759
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,412,663
<OTHER-INCOME> 0
<EXPENSES-NET> 427,487
<NET-INVESTMENT-INCOME> 2,985,176
<REALIZED-GAINS-CURRENT> 614,815
<APPREC-INCREASE-CURRENT> 1,108,414
<NET-CHANGE-FROM-OPS> 4,708,405
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,827,611
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 459,988
<NUMBER-OF-SHARES-REDEEMED> 891,788
<SHARES-REINVESTED> 164,528
<NET-CHANGE-IN-ASSETS> 1,697,058
<ACCUMULATED-NII-PRIOR> 32,712
<ACCUMULATED-GAINS-PRIOR> (506,675)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 286,183
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 427,487
<AVERAGE-NET-ASSETS> 53,428,460
<PER-SHARE-NAV-BEGIN> 12.25
<PER-SHARE-NII> 0.66
<PER-SHARE-GAIN-APPREC> 0.37
<PER-SHARE-DIVIDEND> (0.66)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.62
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> JOHN HANCOCK NEW YORK TAX-FREE INCOME FUND - CLASS B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 53,723,645
<INVESTMENTS-AT-VALUE> 58,736,526
<RECEIVABLES> 1,320,299
<ASSETS-OTHER> 1,609,607
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,666,432
<PAYABLE-FOR-SECURITIES> 3,397,212
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,461
<TOTAL-LIABILITIES> 3,469,673
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,051,222
<SHARES-COMMON-STOCK> 461,375
<SHARES-COMMON-PRIOR> 197,120
<ACCUMULATED-NII-CURRENT> 15,483
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 116,757
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,013,297
<NET-ASSETS> 58,196,759
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,412,663
<OTHER-INCOME> 0
<EXPENSES-NET> 427,487
<NET-INVESTMENT-INCOME> 2,985,176
<REALIZED-GAINS-CURRENT> 614,815
<APPREC-INCREASE-CURRENT> 1,108,414
<NET-CHANGE-FROM-OPS> 4,708,405
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 173,645
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 286,752
<NUMBER-OF-SHARES-REDEEMED> 30,917
<SHARES-REINVESTED> 8,420
<NET-CHANGE-IN-ASSETS> 1,697,058
<ACCUMULATED-NII-PRIOR> 32,712
<ACCUMULATED-GAINS-PRIOR> (506,675)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 286,183
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 427,487
<AVERAGE-NET-ASSETS> 3,808,120
<PER-SHARE-NAV-BEGIN> 12.25
<PER-SHARE-NII> 0.57
<PER-SHARE-GAIN-APPREC> 0.37
<PER-SHARE-DIVIDEND> (0.57)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.62
<EXPENSE-RATIO> 1.40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>