Dear Fellow Shareholder:
The fiscal year ending September 30, 1995 continued a period of change in the
bond market. After rising to their highest levels in several years last
November, interest rates fell steadily throughout 1995. The net asset value
of the A shares increased 45 cents per share to $13.18 over the year. If you
were with us for the entire period, you received dividends of 68 cents per
share. If you reinvest your dividends, you received 69.8 cents per share.
For the year ended September 30, investors who owned C shares received
dividends of 59.6 and 60.9 cents per share, respectively.
Your fund is a managed bond portfolio. Its performance over the last year is
a total of all the stories of the individual bonds in our portfolio plus a
few that we traded during the period. One typical story pertains to our
investment in $1,000,000 of the Penn, Indiana High School Building
Corporation 6.00% bonds due 6/15/2003.
The graph on this page compares the price change of Thornburg Intermediate
Municipal Fund with the price change in the Penn School Building bond.
Recall from my last letter to you that on December 31, 1993 this bond was
worth 108.229% of its $1 million maturity amount at a then market yield of
4.84%. By September 30, 1994 an increase in its market yield to 5.70%
decreased the price of the bond to 102.026% of its maturity value. On
September 30, 1995 the Penn bond was valued at 106.2% of its maturity
amount to yield 5.02%. In general, the price volatility of your Fund was
less than that of the single bond.
Nothing has happened in the last several years of fluctuating interest rates
to change the ultimate maturity value of this bond or other bonds you own
through your investment in this fund. What has changed? The interim market
prices of these bonds moved lower through most of 1994, before recovering
this year. As you evaluate your investment in Thornburg Intermediate
Municipal Fund, you must consider the future prospects of the kinds of bonds
you own in this portfolio.
Your portfolio includes approximately 215 bonds from 41 states and 2 U.S.
territories, 70% of which are rated A or better by one of the major rating
agencies. Your bond portfolio in Thornburg Intermediate Municipal Fund is
laddered to give a dollar weighted average maturity of approximately 8.1
years. This is shorter than the 10 year maximum average maturity permitted
for your fund.
On September 22, The Wall Street Journal reported that the public prefers a
graduated income tax to a flat tax by 57% to 38% according to recent research
polls. I'm not surprised, since the top 10% of income earning households in
the U.S. pay around 60% of all individual income taxes collected. If you
belong to the fortunate minority of high bracket taxpayers, ask yourself:
Are taxes on my investment income likely to go down?
Many municipal bonds issued between 1983 and 1988 are being paid off early.
Money to pay off these bonds prior to maturity has already been raised.
You may own municipal bonds or unit trusts which are being redeemed.
Please remember that you can easily maintain your municipal portfolio by
authorizing a simple, automatic transfer from your checking account to
Thornburg Intermediate Municipal Fund.
We believe the investment program of your fund is a thoroughly sensible one
over time. At today's market prices and yields to maturity, the kinds of bond
you own in this fund look attractive to me. Thank you for investing in
Thornburg Intermediate Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
Thornburg Intermediate Municipal Fund
September 30, 1995
ASSETS
Investments, at value (cost $218,265,472) $228,825,230
Cash 120,901
Interest receivable 4,016,171
Receivable for fund shares sold 351,529
Prepaid expenses and other assets 44,023
TOTAL ASSETS 233,357,854
LIABILITIES
Payable for fund shares redeemed 758,333
Dividends payable 375,108
Accounts payable and accrued expenses 342,336
TOTAL LIABILITIES 1,475,777
NET ASSETS $231,882,077
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($227,880,632 applicable to 17,288,644 shares
of beneficial interest outstanding) $13.18
Maximum sales charge, 3.50% of offering
price (3.63% of net asset value per share) .48
Maximum Offering Price Per Share $13.66
Class C Shares:
Net asset value, offering and redemption price per share
($4,001,445 applicable to 303,171 shares of beneficial
interest outstanding) $13.20
See notes to financial statements.
Thornburg Intermediate Municipal Fund
Year Ended September 30, 1995
INVESTMENT INCOME
Interest income (net of premium amortized
of $351,071) $13,651,703
EXPENSES
Investment advisory fee (Note 3) 1,353,189
Distribution fees (Note 3)
Class A Shares 500,756
Class B Shares 9,250
Class C Shares 17,809
Transfer agent fees 203,795
Custodian fees 136,697
Registration and filing fees 73,385
Professional fees 29,690
Accounting fees 21,298
Director's fees and expenses 6,420
Insurance 6,212
Amortization of deferred expenses (Note 2) 3,427
Other expenses 14,990
TOTAL EXPENSES 2,376,918
Less:
Investment advisory fee waived by
investment adviser (Note 3) (167,493)
Expenses assumed by investment adviser (Note 3) (24,286)
NET EXPENSES 2,185,139
NET INVESTMENT INCOME 11,466,564
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments sold (2,097,030)
Increase in unrealized appreciation of investments 9,826,700
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 7,729,670
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $19,196,234
See notes to financial statements.
Thornburg Intermediate Municipal Fund
Year Ended Year Ended
September 30, 1995 September 30,1994
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $11,466,564 $10,551,950
Net realized (loss) on investments sold (2,097,030) (971,544)
Unrealized appreciation
(depreciation)of investments 9,826,700 (10,457,279)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,196,234 (876,873)
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (11,325,918) (10,551,256)
Class B Shares (49,201) (607)
Class C Shares (91,445) (87)
From realized gains
Class A Shares --- (258,395)
FUND SHARE TRANSACTIONS -(Note 4)
Class A Shares 12,586,727 37,082,224
Class B Shares (373,244) 346,736
Class C Shares 3,739,329 139,202
NET INCREASE IN NET ASSETS 23,682,482 25,880,944
NET ASSETS:
Beginning of year 208,199,595 182,318,651
End of year $231,882,077 $208,199,595
See notes to financial statements.
Thornburg Intermediate Municipal Fund
Note 1 - ORGANIZATION
Thornburg Intermediate Municipal Fund (the "Fund"), is a series of Thornburg
Investment Trust (the "Trust", formerly known as Thornburg Income Trust).
The Trust is organized as a Massachusetts business trust under a Declaration
of Trust dated June 3, 1987 and is registered as a diversified, open-end
management investment company under the Investment Company Act of 1940, as
amended. The Trust is currently issuing five series of shares of beneficial
interest in addition to those of the Fund: Thornburg Florida Intermediate
municipal Fund, Thornburg New Mexico Intermediate Fund and Thornburg Limited
Term U.S. Government Fund, Thornburg Limited Term Income Fund and
Thornburg Value Fund. Each series is considered to be a separate entity for
financial reporting and tax purposes.
On September 1, 1994 the Funds began offering three classes of shares of
beneficial interest, Class A, Class B and Class C shares. All shares
outstanding prior to September 1, 1994 are considered Class A shares.
On September 28, 1995, all existing Class B shares were converted at net
asset value, without the imposition of a deferred sales charge, into Class A
shares of an equivalent value. The Fund no longer offers Class B shares.
Each class of shares of a Fund represents an interest in the same portfoli
at (i) Class A shares are sold subject to a front-end sales charge collected
at the time the shares are purchased and bear a service fee, (ii) Class B
shares were sold at net asset value without a sales charge at the time of
purchase, but were subject to a contingent deferred sales charge upon
redemption, and bore both a service fee and a distribution fee, (iii) Class C
shares are sold at net asset value without a sales charge at the time of
purchase, but are subject to a service fee and a distribution fee, and (iv)
the respective classes have different reinvestment privleges. Additionally,
each fund may allocate among its classes certain expenses, to the extent
allowable to specific classes, including transfer agent fees, government
registration fees, certain printing and postage costs, and administrative and
legal expenses. Currently, class specific expenses of the Funds are limited
to distribution fees and minor custody and transfer agent expenses.
Note 2 - SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies of the Fund are as follows:
Valuation of Investments: In determining net asset value, the Fund utilizes
an independent pricing service approved by the Trustees. Debt investment
securities have a primary market over the counter and are valued on the basis
of valuations furnished by the pricing service. The pricing service values
portfolio securities at quoted bid prices or the yield equivalents when
quotations are not readily available. Securities for which quotations are not
readily available are valued at fair value as determined by the pricing
service using methods which include consideration of yields or prices of
municipal obligations of comparable quality, type of issue, coupon, maturity,
and rating; indications as to value from dealers and general market
conditions. The valuation procedures used by the pricing service and the
portfolio valuations received by the Fund are reviewed by the officers of the
Fund under the general supervision of the Trustees. Short-term obligations
having remaining maturities of 60 days or less are valued at amortized cost,
which approximates market value.
Federal Income Taxes: It is the policy of the Fund to comply with the
provisions of the Internal Revenue Code applicable to "regulated investment
companies" and to distribute all of its taxable (if any) and tax exempt
income to its shareholders. Therefore no provision for Federal income tax is
required. Dividends paid by the Fund for the year ended September 30, 1995
represent exempt interest dividends which are excludable by shareholders from
gross income for Federal income tax purposes.
When-Issued and Delayed Delivery Transactions: The Fund may engage in
when-issued or delayed delivery transactions. To the extent the Fund engages
in such transactions, it will do so for the purpose of acquiring portfolio
securities consistent with its investment objectives and not for the purpose
of investment leverage or to speculate on interest rate changes. At the time
the Fund makes a commitment to purchase a security on a when-issued basis, it
will record the transaction and reflect the value in determining its net
asset value. When effecting such transactions, assets of the Fund of an
amount sufficient to make payment for the portfolio securities to be
purchased will be segregated on the Fund's records at the trade date.
Securities purchased on a when-issued or delayed delivery basis do not earn
interest until the settlement date.
Dividends: Net investment income of the Fund is declared daily as a dividend
on shares for which the Fund has received payment. Dividends are paid monthly
and are reinvested in additional shares of the Fund at net asset value per
share at the close of business on the dividend payment date, or at the
shareholder's option, paid in cash. Net capital gains, to the extent
available, will be distributed annually.
General: Securities transactions are accounted for on a trade date basis.
Interest income is accrued as earned. Premiums and original issue discounts
on securities purchased are amortized over the life of the respective
securities. Realized gains and losses from the sale of securities are
recorded on an identified cost basis.
Deferred Expenses: Organizational expenses were deferred and are being
amortized on a straight-line basis over a 60-month period.
Note 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to the investment advisory agreement, Thornburg Management Company,
Inc. (the "Adviser") provides investment management and advisory services for
which fees are computed at the rate of five eighths of one percent per annum of
the average daily net assets of the Fund. As of September 1, 1994, the
advisory agreement was modified to provide for a sliding scale fee that
declines from 5/8 of 1% to 4/10 of 1% when the Fund's average net assets
exceed $500 million. The investment advisory agreement provides that if, with
respect to any fiscal year of the Fund, its total operating expenses including
investmentt advisory fees, but excluding interest, taxes, brokerage
commissions, and extraordinary expenses) exceed the most restrictive of the
expense limitations imposed by state securities commissions of the states in
which the Fund currently has registered its securities for sale, the investment
advisory fees for that fiscal year will be reduced or the Adviser will assume
certain Fund expenses by the amount of such excess. For the year ended
September 30, 1995, the Adviser voluntarily waived a portion of its advisory
fee amounting to $ 167,493 and assumed certain operating expenses amounting to
$24,286.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Fund shares.
For the year ended September 30, 1995, the Distributor earned commissions
aggregating $58,440 from the sale of Class A shares and collected no conting-
ent deferred sales charges from redemptions of Class B shares of the Fund.
Pursuant to a Service Plan, under Rule 12b-1 of the Investment Company Act of
1940, the Fund may reimburse to the Adviser an amount not to exceed .25 of 1%
per annum of the Fund's average net assets for payments made by the Adviser
to securities dealers and other financial institutions to obtain various
shareholder related services. The Adviser may pay out of its own funds
additional expenses for distribution of the Fund's shares.
The Fund has also adopted a Distribution Plan pursuant to Rule 12b-1,
applicable only to the Fund's Class B and Class C shares under which the Fund
can reimburse the Distributor for certain distribution expenses on a monthly
basis at an annual rate of up to .75% of the average daily net assets
attributable to Class B shares and compensates the Distributor for services
in promoting the sale of Class C shares of the Fund at an annual rate of up
to .75% of the average daily net assets attributable to Class C shares. Total
fees incurred by each class of shares of the Fund under their respective
Service & Distributions Plans for the year ended September 30, 1995, are
set forth in the statement of operations.
Certain officers and trustees of the Fund are also officers and/or directors
of the Adviser and Distributor.
Thornburg Intermediate Municipal Fund
Note 4 - SHARES OF BENEFICIAL INTEREST:
At September 30, 1995, there were an unlimited number of shares of beneficial
interest authorized, and capital paid-in aggregated $224,626,550. Transactions
in shares of beneficial interest were as follows:
Year Ended Year Ended
September 30, 1995 September 30, 1994
Class A Shares Shares Amount Shares Amount
Shares sold 3,708,074 $47,585,636 4,111,149 $54,338,564
Shares issued to shareholders
in reinvestment of
distributions 517,151 6,647,686 506,291 6,616,823
Shares repurchased (3,260,168)(41,646,595) (1,827,358) (23,873,163)
Net Increase 965,057 $12,586,727 2,790,082 $37,082,224
Class B Shares
Shares sold 192,283 $2,493,530 26,846 $346,114
Shares issued to shareholders
in reinvestment of
distributions 2,430 31,469 49 622
Shares repurchased (221,608) (2,898,243) 0 0
Net Increase (Decrease) (26,895) ($373,244) 26,895 $346,736
Class C Shares
Shares sold 309,465 $3,963,617 10,903 $ 139,128
Shares issued to shareholders
in reinvestment of
distributions 5,497 71,325 6 74
Shares repurchased (22,700) (295,613) 0 0
Net Increase 292,262 $3,739,329 10,909 $139,202
Note 5 - SECURITIES TRANSACTIONS
For the year ended September 30, 1995, the Fund had purchase and sale
transactions (excluding short-term securities) of $83,331,064 and $67,915,643,
respectively.
The cost of investments for Federal income tax purposes is the same. At
September, 1995, net unrealized appreciation of investments was $10,559,758,
resulting from $10,799,347 gross unrealized appreciation and $239,589 gross
unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at September 30, 1995 aggregated $3,304,231.
For Federal income tax purposes the Fund has realized capital loss
carryforwards of $3,304,231 as of September 30, 1995 available to offset
future realized capital gains. To the extent that such carryforwards are
used, no capital gains distributions will be made. The carryforwards expire
as follows: September 30, 2002- $1,207,201, and September 30, 2003- $2,097,030.
Thornburg Intermediate Municipal Fund
Per share operating performance Period from
(for a share outstanding throughout the period) Year Ended July 23, 1991 (a
September 30, to Sept. 30,
1995 1994 1993 1992 1991
Class of Shares: A B** C A B* C* A A A
Net asset value,
beginning of period $12.73$12.73$12.73$13.47$12.91$12.91 $12.59 $12.11 $12.06
Income from investment operations:
Net investment
income .68 .59 .60 .67 .05 .05 .71 .78 .16
Net realized and unrealized gain (loss)
on investments .45 .40 .47 (.72) (.18) (.18) .88 .48 .05
Total from investment operations
1.13 .99 1.07 (.05) (.13) (.13) 1.59 1.26 .21
Less distributions from:
Net investment
income (.68) (.59)(.60) (.67) (.05) (.05) (.71) (.78) (.16)
Realized capital gains- --- --- (.02) --- --- --- --- ---
Change in net
asset value .45 .40 .47 (.74) (.18) (.18) .88 .48 .05
Net asset value,
end of period $13.18 $13.13$13.20$12.73$12.73$12.73 $13.47 $12.59 $12.11
Total return (b) 9.16% 8.30% 8.60% (.38%) (.99% (.97%) 13.01% 10.76% 1.77%
Ratios/Supplemental Data
Ratios to average net assets:
Net investment income
5.31% 4.59% 4.62% 5.23% 4.57%(c)4.51%(c)5.37% 6.15% 5.80%(c)
Expenses, after expense reductions
1.00% 1.65% 1.66% .95% 1.70%(c)1.76%(c) .70% .48% .25%(c)
Expenses, before expense reductions
1.08% 2.86% 2.35% 1.05% 1.70%(c)1.76%(c)1.06%1.19% 2.78%(c)
Portfolio turnover rate
32.20% 32.20% 32.20% 27.37% 27.37% 27.37% 14.29% 46.15% 3.40%
Net assets
at end of period (000)
$227,881 $0 $4,001 $207,718 $342 $139 $182,319 $81,428 $9,719
(a) Commencement of operations.
(b) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
(c) Annualized.
* Sales of Class B and Class C shares commenced on September 1, 1994.
Thornburg Intermediate Municipal Fund
September 30, 1995 CUSIPS: Class A - 885-215-202, Class C - 885-215-780
NASDAQ Symbols: Class A - THIMX
Principal Credit Rating
Amount Issuer-Description Moody's/S&P Value
Alabama 1.6%
$ 1,530,000 Alabama A & M University Housing & General Fee
Revenue Series 1992, 6.20% due 11/1/05
(Living and Learning Center Project;
Insured: MBIA) Aaa/AAA $1,659,928
250,000 Alabama Municipal Electric Authority Power
Supply System Series 1991-A, 6.50% due 9/1/05
(Insured: MBIA) Aaa/AAA 278,063
750,000 Montgomery County Revenue, 7.00% due 4/1/07
(Human Resources Project) NR/A 816,548
920,000 Pell County Industrial Development Board Revenue
Series 1989-A, 7.75% due 9/1/04 (Shelby Creek
Fabricators Project; LOC: Southtrust Bank) NR/NR 936,919
Alaska 1.3%
1,000,000 Alaska Industrial Development & Export Authority
Series 1991-A, 7.30% due 4/1/06 A/A- 1,107,310
2,500,000 North Slope Borough Alaska General Obligation
Capital Appreciation Series 1993-B, 0% due 1/1/02
(Insured: MBIA) Aaa/AAA 1,827,750
Arizona 0.9%
500,000 Maricopa County Unified School District #89,
Dysart School District General Obligation,
0% due 7/1/01 (Insured: FGIC) Aaa/AAA 380,110
880,000 Santa Cruz Valley Arizona School District Series
1994, 0% due 7/1/97 (Insured: FGIC) Aaa/AAA 818,629
880,000 Santa Cruz Valley Arizona School District Series
1994, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 781,590
California 16.8%
200,000 Apple Valley Water District Limited Obligation
Improvement Series A, 7.875% due 9/2/11 NR/NR 206,694
675,000 California Housing Finance Agency Revenue Series
1985-B, 9.875% due 2/1/17 Aa/A+ 687,386
455,000 California Public Capital Improvements Financing
Authority Joint Powers Agency Series E, 8.25%
due 3/1/98 (Pooled Projects) Baa/NR 493,934
625,000 California State Veterans Housing, 6.90%
due 4/1/01 A1/A+ 638,125
1,740,000 Escondido Joint Powers Financing Authority Lease
Revenue, 0% due 9/1/07 (Center for the Arts
Project; Insured: AMBAC) Aaa/AAA 875,968
8,095,000 Glendale Hospital Revenue Refunding Revenue,
7.75% due 1/1/09 (Verdugo Hills Project;
Insured: Industrial Indemnity) NR/A+ 8,872,768
2,000,000 Orange County Refunding Recovery, 5.20% due
6/1/03 (Insured: MBIA) Aaa/AAA 2,009,240
940,000 Orange County Refunding Recovery, 6.50% due 6/1/04
(Insured: MBIA) Aaa/AAA 1,023,651
2,280,000 Orange County Refunding Recovery, 6.50% due 6/1/05
(Insured: MBIA) Aaa/AAA 2,482,943
330,000 Orange County Airport Revenue, 8.00% 7/1/04
(John Wayne Int. Airport Project) A1/A- 357,519
770,000 Orange County Airport Revenue, 8.00% 7/1/04
(John Wayne Int. Airport Project) A1/A- 807,091
100,000 Orange County Transportation Authority Sales Tax
Revenue, 5.50% due 2/15/01 Aa/AA 101,712
2,850,000 Orange County Special Financing Authority Teeter
Plan Revenue Series E, 6.35% due 11/1/14, put 11/1/01
(LOC: Industrial Bank of Japan) A1/A+ 2,839,768
1,500,000 Sacramento California Municipal Utility District
Electric Revenue, 6.32% (variable rate) due 11/15/06
(Insured: FSA) Aaa/AAA 1,515,000
1,925,000 San Diego Water Revenue Certificate of Participation,
6.25% due 5/1/04 Aa/AA- 2,057,478
500,000 San Diego County Water Authority Revenue & Refunding
Series 1993-A, 7.01% (variable rate)
due 4/25/07 (Insured: FGIC) Aaa/AAA 517,500
330,000 San Francisco Downtown Parking Corporation Series
1993, 5.00% due 4/1/96 A/NR 330,941
365,000 San Francisco Downtown Parking Corporation Series
1993, 5.40% due 4/1/98 A/NR 369,464
380,000 San Francisco Downtown Parking Corporation Series
1993, 5.55% due 4/1/99 A/NR 385,905
405,000 San Francisco Downtown Parking Corporation Series
1993, 5.70% due 4/1/00 A/NR 411,739
425,000 San Francisco Downtown Parking Corporation Series
1993, 5.85% due 4/1/01 A/NR 433,798
145,000 San Marcos Certificate of Participation Series C,
0% due 8/15/05 (Escrowed to maturity) Aaa/AAA 88,085
740,000 San Marcos Certificate of Participation Series D,
0% due 9/2/05 (Escrowed to maturity) Aaa/AAA 448,470
1,310,000 San Marcos Public Facilities Authority
Revenue Custom Receipts, 0% due 1/1/98
(Escrowed to maturity) Aaa/AAA 1,159,101
1,310,000 San Marcos Public Facilities Authority Revenue
Custom Receipts, 0% due 7/1/99
(Escrowed to maturity) Aaa/AAA 1,067,323
6,000,000 South Coast Local Education Angencies Pooled Tax &
Revenue Anticipation Notes Series 1995-A, 5.00%
due 8/14/96 NR/SP1+ 6,023,820
700,000 Sulphur Springs School District General Obligation
Series B, 5.60% due 3/1/04 A/NR 731,486
800,000 Sulphur Springs School District General Obligation
Series B, 5.70% due 3/1/05 A/NR 839,176
450,000 Sunline Transit Agency Certificate of Participation
Series A, 5.625% due 7/1/04 A/NR 457,569
215,000 Sunline Transit Agency Certificate of Participation
Series A, 5.75% due 7/1/05 A/NR 228,160
Colorado 3.8%
375,000 Colorado Student Obligation Auth. Revenue Series B,
6.55% due 12/1/02 A/NR 390,825
1,000,000 Colorado Student Obligation Auth. Student Loan
Revenue Series B, 5.90% due 9/1/02 A/NR 1,014,660
100,000 Highlands Ranch Metropolitan District #2 General
Obligation Refunding, 6.60% due 6/15/00
(LOC: Swiss Bank) Aa1/AA+ 105,973
2,830,000 Larimer County, 8.45% due 12/15/05 (Poudre School
District R1 Project) A/NR 3,603,015
2,500,000 Mesa Valley School District Certificate of
Participation Series B, 6.875% due 12/1/05
(Insured: FSA) Aaa/AAA 2,764,500
670,000 Thornton Single Family Mortgage Revenue Series 1992-A,
8.05% due 8/1/09 A/NR 725,107
Connecticut 3.1%
3,000,000 Bristol Resource Recovery Facility Operating
Committee - Solid Waste Revenue Refunding Series 1995,
6.125% due 7/1/03 (Ogden Martin at Bristol Project)A/NR 3,120,600
2,550,000 Connecticut State Housing Revenue Series 1990-B1,
7.55% due 11/15/08) (FHA/VA/ Private Mortgage
Insurance) Aa/AA 2,706,213
200,000 New Britain Senior Citizen Housing Development Mortgage
Revenue Refunding Series A, 6.50% due 7/1/02
(Nathan Hale Apartments Project; Insured: FHA) NR/AAA 209,298
500,000 Stratford General Obligation Series 1992, 7.15%
pre-refunded 3/1/01 @ 102 NR/A- 566,035
500,000 Stratford General Obligation Series 1992, 7.20%
pre-refunded 3/1/01 @ 102 NR/A- 567,225
District of Columbia 1.1%
1,000,000 District of Columbia General Obligation Series A,
5.75% due 6/1/03 Ba/B 982,290
1,000,000 District of Columbia Certificate of Participation
Series 1993, 7.30% due 1/1/13 NR/B 1,018,650
255,000 District of Columbia Housing Finance Agency Mortgage
Revenue Refunding Series 1992-D, 6.00% due 7/1/02
(Insured: MBIA) Aaa/AAA 262,183
300,000 District of Columbia Revenue, 0% due 2/15/02
(Assoc. of American Medical Colleges) NR/AA- 194,157
195,000 District of Columbia Revenue, 0% due 2/15/04
(Assoc. of American Medical Colleges) NR/AA- 109,571
Florida 2.0%
250,000 Cape Coral Special Assessment Water Improvement, 6.50%
due 7/1/98 (Insured: MBIA) Aaa/AAA 261,940
250,000 Dade County Aviation Revenue, 7.20% due 10/1/00 refunding
pending 10/1/96 @101 Aa/A 259,603
240,000 Dade County Educational Facilities Revenue, 7.65%
pre-refunded 4/1/00 @ 102 (University of Miami
Project; Insured: MBIA) Aaa/AAA 275,510
215,000 Duval County HFA Series 94, 6.10% due 4/1/06
(GNMA Collateral) Aaa/AAA 220,867
220,000 Duval County HFA Series 94, 6.10% due 10/1/06
(GNMA Collateral) Aaa/AAA 226,213
1,000,000 Florida Housing Finance Agency Multifamily Housing
Revenue Series 1983 G, 5.35% due 12/1/05,
mandatory put 6/1/00 (Insured: Connecticut Gen.) Aaa/AAA1,015,560
100,000 Florida Insurance Commission Pooled Liability,
5.50% due 1/1/96 NR/NR 100,162
320,000 Jacksonville Health Facilities Authority IDR,
7.55% due 12/1/07 (National Benevolent
Association Project) Baa1/BBB+ 346,614
100,000 Lee County Hospital Board Director's Revenue Series
A, 5.70% due 4/1/01 (Lee Memorial Hospital
Project; Insured: MBIA) Aaa/AAA 105,744
400,000 Leon County Infrastructure Sales Surtax Revenue,
5.60% due 10/01/97 (Criminal Detention
Facilities Project; Insured: AMBAC) Aaa/AAA 411,744
150,000 Osceola County Health Facilities Revenue Series 1994,
5.75% due 5/1/04 (Evangelical Lutheran Good
Samaritan Project; Insured: AMBAC) Aaa/AAA 157,877
1,100,000 Pinellas County Health Facilities Authority Series
1994-A, 5.75% due 8/1/01 (Multi County Project;
GNMA/FNMA Collateral) Aaa/NR1,120,328
Georgia 0.1%
285,000 Hinesville Leased Housing Corp. Rev., 6.05%
due 1/15/98 (Regency Park Project) NR/BBB 286,781
Illinois 4.7%
1,930,000 Bedford Park Tax Increment Revenue Refunding
Series 1993, 8.00% due 12/1/10 NR/BBB-2,070,851
300,000 Central Lake County Joint Action Water Agency
Series 1991, 0% due 5/1/05 (Insured: MBIA) Aaa/AAA 180,654
500,000 Illinois Development Financing Authority, 7.125% due 3/15/07
(Children's Home & Aid Society Project;
LOC: American National Bank of Chicago) NR/A+ 530,070
1,200,000 Illinois Development Finance Authority, 4.50% due
4/1/07, put 10/7/95, weekly demand notes
(LOC: American National Bank of Chicago) A+/A-1 1,200,000
2,400,000 Illinois Development Financing Authority Debt
Restructing Revenue Series 1994, 7.25% due 11/15/09
(East St. Louis Project) NR/A- 2,509,776
500,000 Illinois HFA Revenue Refunding Series 1992, 7.00%
due 1/1/07 (Mercy Hospital Project) Baa1/A- 522,850
1,000,000 Illinois HFA Revenue Refunding Series 1992,
7.00% due 7/1/02 (Trinity Medical Center
Project) Baa1/NR 1,032,890
1,025,000 Illinois HFA Revenue Series B, 7.00% due 1/1/04
(Proctor Community Hospital Project) Baa/BBB- 1,047,181
1,525,000 Illinois State University Auxiliary Facilities System
Revenue Series 1992, 0% due 10/1/01
(Insured: MBIA) Aaa/AAA 1,135,576
555,000 Rock Island Residential Mortgage Revenue, 7.70%
due 9/1/08 Aa/NR 594,466
Indiana 2.3%
665,000 Danville Community Elementary School Building
Corporation, 6.75% due 1/15/04 NR/A 722,549
1,000,000 Gary Building Corporation - Lake County First
Mortgage Series 1994-B, 8.25% due 7/1/10
(Sears Building Project) NR/NR 1,075,160
255,000 Hamilton Heights Refunding Revenue, 6.60%
due 1/1/08 NR/A 274,337
700,000 Indiana Bond Bank Special Program Series 1991-F, 7.00%
due 8/1/07 NR/A 754,026
1,195,000 Lake Central Multi District School Building Mortgage
Revenue Series 1992-B, 6.25% due 1/15/04 NR/A 1,324,526
1,000,000 Penn High School Building Corporation Series 1992,
6.00% due 6/15/03 NR/A 1,061,260
Iowa 0.5%
1,000,000 Iowa State Department General Services Certificate of
Participation Series 1992, 6.50% due 7/1/06
(Insured: AMBAC) Aaa/AAA 1,095,700
Kentucky 3.3%
1,000,000 Erlanger Kentucky Improvement Assessment, 7.375% due 8/1/10
(Public Improvement '93 Project;
LOC: PNC Bank of Ohio) NR/NR 1,066,790
2,035,000 Fulton County Industrial Building Revenue Series 1995,
7.20% due 2/1/03 (H.I.S. Jeans of Kentucky Project;
Guarantee: CHIC by H.I.S.) NR/NR 2,067,072
2,520,000 Fulton County Industrial Building Revenue Series 1995,
7.60% due 2/1/07 (H.I.S. Jeans of Kentucky Project;
Guarantee: CHIC by H.I.S.) NR/NR 2,564,831
605,000 Mt. Sterling League of Cities Funding Trust Lease Series A,
5.625% due 3/1/03 (Investment Agreement w/
Transamerica Life; Guaranteed:
Health Management Assoc.) Aa/NR 612,829
1,120,000 Paintsville First Mortgage Revenue
Refunding Series 1991, 8.65% due 9/1/05
(Paul B. Hall Medical Center Project) NR/NR 1,188,365
Louisiana 3.8%
480,000 Calcasieu Parish Industrial Development Board Pollution
Control Revenue, 7.80% due 12/1/05
(Cities Service Corporation Project) Baa3/BBB 482,746
60,345 East Baton Rouge Mortgage Financing Authority Purchase
Revenue, 8.25% due 2/25/11 (GNMA Collateralized) NR/AAA 64,775
7,500,000 Louisiana Public Facilities Authority
Revenue Refinancing, 8.00% due 10/1/09
(Schwegman Westside Expressway Project) NR/NR 8,072,100
Maryland 0.4%
935,000 Ann Arundel County Multifamily Housing Revenue, 7.45%
due 12/1/24, put 12/1/03 (Twin Coves Apartment
Project; Hud Section 8) NR/BBB+ 980,834
Massachusetts 3.6%
250,000 Boston General Obligation Series A, 7.60% pre-refunded
2/1/99 @ 102 NR/A+ 278,973
445,000 Haverhill General Obligation Municipal Purpose Loan,
7.50% due 10/15/11 Baa/BBB 484,391
275,000 Holyoke General Obligation, 9.85% pre-refunded
11/1/97 @ 102 Aaa/NR 311,795
600,000 Holyoke General Obligation School Project Loan Act of
1948, 7.35% due 8/1/02 Baa/NR 675,018
1,000,000 Holyoke General Obligation School Project Loan Act
of 1948, 7.65% due 8/1/09 Baa/NR 1,104,210
100,000 Massachusetts Health and Education Facilities, 6.875%
due 7/1/99 (Charlton Hospital Project) A/A- 105,880
1,305,000 Massachusetts Industrial Finance Agency IDRB,
7.75% due 11/1/06, put 11/1/96 (William F. Rogers,
Jr. Project; LOC: Shawmut Bank) NR/NR 1,315,792
1,000,000 Massachusetts Industrial Financing Authority
Revenue Refunding Series 1993-A, 6.15% due 7/1/02
(Massachusetts Refusetech Project) Baa1/BBB 1,020,890
2,860,000 Massachusetts Housing Finance Authority Insured
Rental Housing Series 1994-A, 6.20% due 1/1/06
(Insured: AMBAC) Aaa/AAA 2,965,048
Michigan 4.1%
455,000 Auburn Hills Economic Limited Obligation Revenue
Refunding and Improvement, 6.15% due 12/01/05
(Foamade Industries Project; LOC: Michigan
National Bank) NR/NR 465,183
500,000 Detroit Unlimited Tax General Obligation, 8.00% pre-refunded
4/1/01 @ 102 Ba1/BBB 587,225
965,000 Kent Hospital Finance Authority Revenue Refunding
Series 1992, 6.20% due 11/1/02 (Pinerest Christian
Hospital Project; Insured: FGIC) Aaa/AAA 1,050,750
500,000 Michigan State Housing Development Authority, 6.25%
due 7/1/04 A1/NR 503,115
500,000 Michigan State Housing Redevelopment Authority Ltd.
Obligation, 6.50% due 9/15/07
(Greenwood Villa Project; Insured: FSA) Aaa/AAA 530,845
1,000,000 Michigan State Housing Development Authority Rental Revenue,
3.60% due 4/1/04 (Insured: AMBAC) Aaa/AAA 1,000,000
1,215,000 Michigan Strategic Fund Limited Obligation Refunding
Revenue Series 1992, 6.25% due 8/15/04
(Environmental Research Institute Project) NR/A 1,279,845
895,000 Pontiac Stadium Building Authority Revenue, 6.60% due
3/1/00 Baa/BBB 913,777
1,530,000 Southfield Economic Development Corporation
Refunding Revenue N.W. 12 Limited Partnership,
7.25% due 12/1/10 NR/NR 1,567,332
1,025,000 Wayne County Building Authority Limited Tax General
Obligation Series 1992-A, 7.80% pre-refunded
3/1/02 @ 102 Baa/BBB- 1,210,146
225,000 Wayne County Downriver System Sewage Disposal Series A,
7.00% due 11/1/13 Baa/BBB- 235,195
Minnesota 0.6%
695,000 Minneapolis Special School District Certificate of
Participation, 5.40% due 2/1/01 A/A 704,591
705,000 Sandstone First Mortgage Revenue, 10.00% due 1/15/13
(Sandstone Nursing Home Project; Insured: FHA) NR/A+ 710,781
Mississippi 2.1%
3,300,000 Adams County Hospital Revenue Series 1991,
7.90% due 10/1/08 (Jefferson Davis Memorial
Hospital Project) Baa/NR 3,527,403
1,000,000 Mississippi Higher Educational Authority
Series C, 7.50% due 9/1/09 A/NR 1,070,310
200,000 Mississippi Hospital Equipment and Facilities
Revenue Series A, 7.25% due 5/1/00 (Baptist Medical
Center Project;Insured:MBIA)(Escrowed to Maturity) Aaa/AAA 222,738
Missouri 1.6%
250,000 Jackson County Single Family Mortgage Revenue,
0% due 9/1/14 NR/A 28,030
200,000 Missouri State Economic Development Export and
Infrastructure Board MFHR Series 1991-A, 7.25%
due 9/15/02 (Quality Hill Project; Insured:
Asset Guaranty) NR/AA 213,166
650,000 Missouri State Health and Education Facilities Authority,
0% due 7/1/02 (Missouri Baptist Medical Center Project)
(Escrowed to Maturity) NR/A- 444,060
2,365,000 St. Louis Board of Education General Obligation,
8.50% due 4/1/04 (Insured: FGIC) Aaa/AAA2,975,832
Montana 0.5%
1,150,000 Montana Higher Education Student Assistance Corp.
Series 1992-B, 7.05% due 6/1/04 A/NR 1,244,162
Nebraska 1.7%
2,250,000 Douglas County Industrial Development Revenue Series
1994, 6.40% due 9/1/14, mandatory put 9/1/04
(Aksarben Foods Project; LOC: Norwest Bank) Aa/AA 2,366,753
2,170,000 Nebraska Investment Finance Authority Collateralized
Mortgage Obligation Capital Appreciation Refunding Series B,
0% due 4/15/12 (Insured: MBIA) Aaa/AAA 698,523
700,000 Nebraska Investment Finance Authority,
6.65% due 3/1/00 (Insured: MBIA) Aaa/AAA 755,629
New Jersey 0.7%
280,000 Cape May County Municipal Utilities Authority,
6.60% due 8/1/03 A/A 304,237
1,000,000 Mercer County Improvement Revenue Solid Waste
Refunding, 0% due 4/1/14 Ba/NR 250,140
3,020,000 Mercer County Improvement Revenue Solid Waste
Refunding, 0% due 4/1/16 Ba/NR 647,790
300,000 New Jersey EDA Refunding Revenue Series 1991, 6.875%
due 10/1/14, optional put 10/1/98 (Fairway Corporation
Project; Insured: Provident Mutual Life Insurance) A2/NR 306,384
New Mexico 1.2%
1,000,000 Albuquerque Hospital Revenue, 4.05% due 5/15/22,
put 10/7/95, weekly demand notes (Sisters of
Charity Project) Aa/VMIG1 1,000,000
1,000,000 Albuquerque Gross Receipts Tax Revenue Series B,
8.10% due 7/1/17, pre-refunded 7/1/96 @ 102 NR/AAA 1,050,610
700,000 Albuquerque Multifamily Housing Revenue Series 1988,
5.00% due 5/1/98 (Sunchase Apartments Project) NR/AAA 695,947
New York 1.8%
300,000 Allegheny County IDA Civic Facilities, 7.10% due 9/1/01
(Alfred University Project) Baa1/NR 322,005
550,000 Battery Park City Authority Revenue, 7.35% pre-refunded
5/1/99 @ 102 Aaa/AAA 615,230
1,000,000 New York City General Obligation Refunding, 7.50%
due 2/1/01 Baa1/A- 1,094,230
500,000 New York Dorm Authority Revenue Series N, 6.70% due
7/1/03 Baa1/BBB 501,285
1,500,000 New York Local Government Assistance Corporation
Series 1992, 6.875% due 4/1/06 A/A 1,657,770
50,000 Valley Health Development Corporation Mortgage Revenue
Series 1990-A, 7.85% due 2/01/02 (Insured: FHA) NR/AAA 52,818
North Carolina 0.3%
650,000 Craven County Industrial Facilities Pollution Control
Financing Authority Solid Waste Revenue, 7.875%
due 6/1/05 (Weyerhauser Company Project) NR/NR 733,271
North Dakota 0.3%
650,000 Bismarck Hospital Revenue Refunding and Improvement,
7.00% due 5/1/03 (Medical Center One Inc.
Project; Insured: BIG) Aaa/AAA 705,088
Ohio 3.9%
700,000 Bellefontaine Hospital Facility Revenue and Refunding
Series 1993, 6.00% due 12/1/02 (Mary Rutan Health-
Logan County Project) NR/BBB 719,614
250,000 Bowling Green State University General Receipts Series
1991, 6.70% due 6/1/07 A/AA 271,672
200,000 Cleveland Airport System Revenue, 7.00% due 1/1/06 A/A 204,532
2,250,000 Cleveland Certificate of Participation, 7.10%
due 7/1/02 (Motor Vehicle Motorized and Communications
Equipment Project) Baa/BBB 2,386,800
1,000,000 Cleveland Parking Facilities Improvement Revenue Series
1992, 8.00% due 9/15/12 NR/NR 1,067,050
700,000 Hamilton County Hospital Facilities Refunding
Revenue Series 1992, 6.55% due 1/1/03 (Episcopal Retirement
Homes, Inc. Project; LOC: Fifth/Third Bank) Aa/NR 752,969
400,000 Hamilton County Hospital Facilities Refunding
Revenue Series 1992, 6.80% due 1/1/08 (Episcopal
Retirement Homes, Inc. Project; LOC: Fifth/Third
Bank) Aa/NR 434,872
360,000 Harrison County Ohio Industrial Development Revenue,
6.625% due 12/1/98 (Drano Equipment Company
Project) NR/NR 361,094
1,650,000 Ohio Industrial Development Revenue Series 92,
8.125% due 12/1/06 (Swifton Commons Project) NR/NR 1,726,791
925,000 Ohio Water Development Authority, 7.75% due 9/1/07
(Mid American Waste Project) NR/NR 935,712
Oklahoma 0.7%
195,000 Pryor Creek EDA Mortgage Revenue Refunding Series
1991-A, 6.625% due 7/1/00 (FNMA Collateralized) NR/AAA 205,575
785,000 Pushmatahah County Town of Antlers, Hospital Authority
Revenue Series 1991, 8.75% due 6/1/06 NR/NR 849,111
500,000 Woodward Municipal Hospital Authority Revenue
Series 1994, 8.25% due 11/1/09 NR/NR 540,830
Oregon 2.8%
1,025,000 Albany Hospital Facility Authority Gross Revenue and
Refunding Series 1994, 7.00% due 10/1/05
(Mennonite Home Project) NR/NR 1,039,699
1,900,000 Oregon Economic Development Department Revenue
Series CLII, 6.70% due 12/1/98
(Smokecraft Project; LOC: Seafirst Bank) Aa3/NR 1,997,470
1,200,000 Oregon Economic Development Department Revenue
Series CLII, 7.00% due 12/1/02 (Smokecraft Project;
LOC: Seafirst Bank) Aa3/NR 1,251,240
1,070,000 Oregon Economic Development Department Revenue Series
CLII, 7.70% due 12/1/14 (Smokecraft Project;
LOC: Seafirst Bank) Aa3/NR 1,169,884
1,000,000 Port of Portland Industrial Revenue Series 85, 7.25%
due 10/1/09 (Ash Grove Cement Project) NR/NR 1,035,370
Pennsylvania 5.7%
2,455,000 Beaver County Industrial Development Authority Health
Revenue, 0% due 2/1/10 (Collateralized: FHA) NR/AA- 794,463
150,000 Chester County General Obligation, 9.50%
due 12/1/97 NR/NR 151,239
465,000 Hampden Industrial Development Authority Partnership
Holdings LLC Project, 4.50% due 11/15/98 Baa2/NR 460,834
2,800,000 Harrisburg Authority Lease Revenue Series 1991,
6.50% due 6/1/04 (Insured: Capital Guaranty)
crossover refunded 6/1/01 @ 101 Aaa/AAA 3,043,432
800,000 Harrisburg Authority Lease Revenue Series 1991,
6.625% due 6/1/06 (Insured: Capital Guaranty)
crossover refunded 6/1/01 @ 101 Aaa/AAA 874,456
2,000,000 Lancaster County Solid Waste, 8.375% due
12/15/04 A/BBB 2,129,240
2,000,000 Lehigh County General Purpose Authority Revenue,
7.80% due 3/15/20, put 3/15/02 (Muhlenberg
Care Project; LOC: United Jersey Bank) NR/NR 2,223,620
840,547 Lehigh County Industrial Development Authority Revenue,
7.45% due 8/1/01 (Kresge Company Project) A3/NR 843,447
800,000 McKeesport Area School District Series B, 0% due
10/1/04 NR/A 488,192
100,000 Philadelphia Water and Sewer Revenue 11th Series,
9.10% refunded 12/1/95 @ 102 Aaa/AAA 102,869
990,000 Philadelphia Water and Sewer Revenue 10th Series,
7.35% due 9/1/04 (Escrowed to Maturity) Aaa/AAA 1,141,876
750,000 Pine-Richland School District, 0% pre-refunded
9/1/01 (Insured: AMBAC) Aaa/AAA 513,435
200,000 York County Solid Waste Refuse Authority Industrial
Development Revenue Series 1985, 7.40% due 12/1/99
(Resource Recovery Project) A/AA- 216,126
Rhode Island 1.8%
595,000 Pawtucket Public Building Authority Water System
Project Revenue, 7.45% due 7/1/05 Baa1/NR 649,722
680,000 Providence Public Building Authority Revenue,
7.10% due 12/1/03 (Veazie Street School and
Modular Classroom Project) Baa1/NR 751,597
1,500,000 Rhode Island Housing and Mortgage Finance Rental Housing Program
Series A, 5.05% due 10/1/01 NR/A 1,496,130
355,000 Rhode Island Health and Education Building Corporation
Series 1991, 7.10% due 11/1/02 (South County Hospital
Project) NR/BBB+ 377,869
720,000 West Warwick General Obligation, 5.90% due 1/1/05
(Insured: MBIA) Aaa/AAA 746,554
South Carolina 0.8%
665,000 Florence County Certificate of Participation Series
1992, 4.90% due 3/1/98 (Law Enforcement Center
Project; Insured: AMBAC) Aaa/AAA 674,204
650,000 Liberty Sewer Revenue, 8.25% due 8/1/07 NR/NR 708,585
455,000 South Carolina Educational Facilities Authority,
6.95% due 11/1/03, put 11/1/96 (Converse College
Project; LOC: Nationsbank) A1/NR 472,340
South Dakota 0.7%
1,000,000 South Dakota Housing Development Authority Home
Ownership Mortgage Series 1993-A, 5.20% due 5/1/02Aa/AA 1,008,260
500,000 South Dakota Student Loan Series 1991-A,
7.60% due 8/1/04 NR/A+ 544,130
Tennessee 0.8%
500,000 Carrol County Industrial Development
Board Refunding Revenue Series 1995, 7.20%
due 4/1/05 (Henry I. Seigel Company Project;
LOC: CHIC by H.I.S.) NR/BBB 505,175
210,000 Copperhill Industrial Development Board, 7.80%
due 12/1/00 (Cities Ser. Co. Project) Baa3/BBB 211,132
1,100,000 Dayton IDR Series 1986, 7.75% due 12/1/96
(Cowron and Co. Project; LOC: Signet Bank) NR/NR 1,104,037
Texas 6.2%
4,000,000 Bell County Health Facilities Development,
4.75% due 10/1/23, put 10/1/98 NR/AA 3,961,360
700,000 Brazos Higher Education Authority Refunding
Revenue Series B-1, 6.50% due 6/1/04 NR/A 750,183
1,000,000 Chimney Hill Municipal Utility District
Waterworks and Sewer System Combination
Unlimited Tax and Revenue Refunding Series 1991,
7.75% due 10/1/11 NR/NR 1,050,500
750,000 Clay Road Municipal Utility District Unlimited Tax and
Revenue Series 1991, 7.625% due 9/1/11 NR/NR 762,323
2,000,000 Conroe Independent School District Refunding Series
1992, 0% due 2/1/05 (PSF Guaranteed) Aaa/AAA 1,193,280
250,000 Dallas County Flood Control District #1 General Obligation,
0% due 4/1/97 NR/NR 217,738
570,000 Harris County Municipal Utility District #118 Unlimited
Tax and Revenue Refunding Series 1992, 0%
due 3/1/04 (Insured: MBIA) Aaa/AAA 329,545
525,000 Harris County Municipal Utility District #118 Unlimited
Tax and Revenue Refunding Series 1992, 0% due 3/1/05
(Insured: MBIA) Aaa/AAA 282,329
880,000 Houston Water Conveyance System Contract Certificate
of Participation Series F, 7.20% due 12/15/04
(Insured: AMBAC) Aaa/AAA 1,031,351
465,000 Hunt Memorial Hospital District, 0% due 2/15/01 A/A 344,965
2,000,000 Leander Independent School District Unlimited Tax
School Building & Refunding Series 1992, 0%
due 8/15/05 (PSF Guaranteed) Aaa/NR 1,264,760
800,000 Mesquite General Obligation, 0% due 2/15/02 A1/A+ 576,264
800,000 Midland County Hospital District Revenue Series 1991,
0% due 6/1/07 NR/BBB 394,920
1,500,000 Texas Water Resource Financing Authority Revenue,
7.30% due 2/15/04 (Insured: AMBAC) Aaa/AAA1,608,105
400,000 Trinity Texas Housing Finance Corporation Multifamily
Housing Revenue, 10.00% due 6/1/98 (Timberline
Apartments Project) NR/NR 400,000
U.S. Virgin Islands 1.4%
3,000,000 U.S. Virgin Islands Water & Power Authority Series A,
7.40% due 7/1/11 NR/NR 3,201,801
Utah 1.9%
2,000,000 Intermountain Power Agency Revenue, 0% pre-refunded
7/1/00 Aaa/AAA 1,610,260
2,500,000 Salt Lake County Housing Authority Multifamily
Housing Revenue Refunding Series 1993, 5.40% due
12/15/18, put 12/15/03 (Summertree Project;
LOC: First Security Bank) A1/NR 2,491,550
2,430,016 Utah State Housing Financing Agency Capital
Appreciation Res. Mortgage Series 83-A,
0% due 7/1/16 NR/AA 293,376
Virginia 4.6%
500,000 Chesterfield County Certificate of Participation,
7.80% pre-refunded 12/15/96 @ 102 Aa/NR 532,590
2,000,000 Hampton Redevelopment Housing Authority Multifamily
Housing Revenue & Refunding Series 1994, 7.00%
due 7/1/24, mandatory put 7/1/04 (Chase Hampton
II Apts. Project) NR/NR 2,181,480
415,000 Peninsula Ports Authority Hospital Revenue,
8.00% due 8/1/99 (Mary Immaculate Hospital
Project) NR/A- 458,102
975,000 Peninsula Ports Authority Industrial Development
Refunding Revenue Series 1986, 4.25% due 7/1/16,
put 7/1/96 (Olde Hampton Hotel Association Project; LOC:
Nationsbank of Virginia) NR/A+ 976,414
2,000,000 Suffolk Redevelopment Housing Authority Multifamily
Housing Revenue & Refunding Series 1994, 7.00%
due 7/1/24, mandatory put 7/1/04 (Chase
Heritage @ Dulles Project) NR/NR 2,128,900
1,030,000 Virginia State Housing Development Authority Series
C-7, 5.40% due 1/1/01 Aa/AA+ 1,052,073
1,000,000 Virginia State Housing Development Authority Series
H-1, 6.60% due 7/1/08 Aa/AA+ 1,064,470
1,000,000 Virginia Housing Dev. Auth. Commonwealth Mortgage
Series 1992-C, 6.75% due 7/1/11 Aa/AA 1,038,910
1,000,000 Virginia Public School Authority, 6.80% due 1/15/05
pre-refunded 1/15/99 (School Funding Project) Aaa/AAA 1,087,680
Washington 2.6%
1,000,000 Bremerton Water & Sewer Improvement Revenue Series B,
6.00% due 9/1/03 (Insured: FGIC) Aaa/AAA 1,077,570
1,100,000 Clark County Industrial Revenue Solid Waste
Transfer Stations Series 1991, 7.50% due 12/15/06
(Columbia Resource Company Project;
LOC: U.S. Bank of Oregon) A1/NR 1,190,189
1,500,000 Pilchuck Development Public Corporation IDRB Series 1993,
6.25% due 8/1/10 (Little Neck Properties Project;
LOC: U.S. Bancorp) A1/NR 1,502,595
790,000 Port of Grays Harbor Revenue Refunding, 6.05%
due 12/1/02 A/BBB+ 833,316
1,000,000 Washington Health Care Facilities Authority
Pooled Equipment Series 1992-B,
7.20% due 6/1/02 (Kadlec Medical Center Project) Baa1/NR 1,034,980
400,000 Washington Public Power Supply System Series 1991-A,
6.75% due 7/1/05 (Project: 1) Aa/AA 431,840
West Virginia 1.3%
3,100,000 West Virginia Parkways Economic Development and
Tourism Authority Parkway Revenue Refunding, 4.35%
inverse floating rate note due 5/15/02
(Insured: FGIC) Aaa/AAA 2,943,543
Wisconsin 0.5%
400,000 Bass Lake PCRB, 6.50% due 4/1/05 (Johnson Timber Corp.
Project; Guaranty: SBA) Aaa*/AAA* 435,168
735,000 Wisconsin Housing & Economic Development Authority Series C,
7.55% due 9/1/97
Wyoming 0.1%
199,206 Uinta County School District #1 Municipal Lease Purchase Contract,
7.95% due 6/15/01 NR/NR 213,998
TOTAL INVESTMENTS (100%) (Cost $218,265,472) $228,825,230
* Indicates rating on other debt issued by the same issuer,
rather than on the security held by the Fund. These securities are
deemed by the Adviser to be comparable with those of issuers having debt
ratings in the 4 highest grades by Moody's or S & P.
Credit ratings are unaudited.
See notes to financial statements.
To the Board of Trustees and Shareholders
Thornburg Intermediate Municipal Fund
Santa Fe, New Mexico
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Thornburg Intermediate Municipal Fund, series
of Thornburg Investment Trust as of September 30, 1995, the related statement
of operations, the statements of changes in net assets, and the financial
highlights for the periods indicated. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities
owned as of September 30, 1995 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Thornburg Intermediate Municipal Fund as of September 30, 1995, 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.
/s/ McGladrey & Pullen
New York, New York
October 27, 1995
