Fund facts. . . as of 3/31/98
Thornburg Thornburg Thornburg
Intermediate Intermediate Intermediate
Municipal Fund Municipal Fund Municipal Fund
A Shares C Shares I Shares
SEC Yield 3.88% 3.60% 4.35%
Taxable Equiv. Yields 6.42% 5.96% 7.20%
NAV $13.56 $13.57 $13.54
Max. Offering Price $14.05 $13.57 $13.54
Total returns. . . as of 3/31/98
(Annual Average - After Subtracting Maximum Sales Charge)
One Year 4.20% 7.49% 8.34%
Five Year 5.49% N/A N/A
Since Inception 6.83% 6.17% 7.85%
Inception Date
(7/22/91) (9/1/94) (7/5/96)
Taxable equivalent yields assume a 39.6% marginal federal tax rate.
The investment return and principal value of an investment in the fund will
fluctuate so that, when redeemed, an investor's shares may be worth more or less
than their original cost.
Maximum sales charge of the Fund's Class A Shares is 3.50%.
The date quoted represent past performance and may not be construed as a
guarantee of future results.
Dear Fellow Shareholder,
I am pleased to present the Semi-Annual Report for the Thornburg Intermediate
Municipal Fund for the 6 months ending March 31, 1998. The net asset value of
the A shares increased 10 cents per share to $13.56. If you were with us for the
entire period, you received dividends of 31.8 cents per share. If you reinvested
your dividends, you received 32.1 cents per share. Investors who owned C shares
received dividends of 29.1 and 29.4 cents per share, respectively. Your
Thornburg Intermediate Municipal Fund currently holds over 340 municipal
obligations from 47 states and 3 U.S. Territories. Approximately 79% of the
bonds are rated A or better by one of the major rating agencies. As you know, we
"ladder" the maturities of the bonds in your fund so that some bonds are
scheduled to mature at par during each of the coming years. Today, your fund's
weighted average maturity is approximately 7.6 years, and we always keep it
below 10 years. Percentages of the portfolio maturing in the coming years are
summarized below:
% of portfolio Cumulative %
maturing within maturing by end of
2 years = 5% year 2 = 5%
2 to 4 years = 13% year 4 = 18%
4 to 6 years = 15% year 6 = 33%
6 to 8 years = 27% year 8 = 60%
8 to 10 years = 18% year 10 = 78%
10 to 12 years = 11% year 12 = 89%
12 to 14 years = 5% year 14 = 94%
14 to 16 years = 5% year 16 = 99%
Over the last 6 months your average portfolio maturity has increased a bit. The
supply of new municipal bonds has increased considerably over the levels of
recent years. With a better selection of bonds to choose from, we directed
portfolio cash flow and new money into the middle maturity range of your bond
ladder. Today we are managing the portfolio to keep the average maturity
approximately where it is. We will stick with this approach if interest rates
remain stable or decrease. If bond yields increase, we will likely extend the
average portfolio maturity to approximately nine years. This would permit us to
increase our income yields if higher yields are available. Today there is a
great deal of discussion about the Federal Reserve and the future direction of
the U.S. economy and interest rates. The U.S. economy is extremely strong, and
tax receipts are off the charts. The federal budget will show a surplus in 1998
of between $50 and $100 billion, the first surplus since 1969! Most states will
also have budget surpluses. In the midst of all this economic strength, I am
impressed by the degree to which bond investments have outperformed money market
investments in the last 5 years. Look at these average return numbers for
various categories of bond mutual funds and money market funds for the 5 year
period ending March 31, 1998:
Average annual return
5 Years Ending 3/31/98
Taxable Money Mkt. Fund 4.4% (before income taxes)
Avg. Fund: Intmdt. Corp. Debt 6.2% (before income taxes)
Avg. Fund: Intmdt. U.S. Gvt. Debt 5.6% (before income taxes)
Municipal Money Mkt. Fund 2.8% (national portfolios)
Avg. Fund: Short Muni Bond 4.4% (national portfolios)
Avg. Fund: Intmdt. Muni Bond 5.5% (national portfolios)
(source: The Wall Street Journal/Lipper)
*Money market funds strive to keep a stable net asset value. The net asset value
of the fund can and does fluctuate. CD's usually pay a fixed rate of interest
and are insured by FDIC. **Morningstar proprietary rating reflects historical
risk adjusted performances as of 3/31/98. Ratings are subject to change every
month. Funds with at least three years of performance history are assigned
ratings from one star (lowest) to five stars (highest). Morningstar overall
ratings are calculated from the funds' three-, five-, and ten year average
annual returns and a risk factor that reflects fund performance relative to
three month Treasury bill returns. 10% of the funds in an investment category
receive five stars and 22.5% receive four stars. THIMX is ranked 4 stars for the
3 year period and 5-stars for the 5 year period ending 3/31/98. At 3/31/98,
there were 1525 bond funds with 3-year ratings and 782 with 5-year ratings in
Morningstar's Municipal National Intermediate category. Past performance cannot
guarantee future results.
ASSETS
Investments at value (cost $352,815,107) $ 372,948,356
Cash 90,511
Receivable for fund shares sold 2,700,692
Interest receivable 6,011,531
Prepaid expenses and other assets 122,379
Total Assets $ 381,873,469
LIABILITIES
Payable for investments purchased 5,485,431
Payable for fund shares redeemed 459,277
Accounts payable and accrued expenses 231,792
Payable to investment advisor 268,780
Dividends payable 511,817
Total Liabilities 6,957,097
NET ASSETS $ 374,916,372
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share ($340,600,129
applicable to 25,123,321 shares of beneficial interest outstandi$ 13.56
Maximum sales charge, 3.50 % of offering
price (3.63% of net asset value per share) 0.49
Maximum Offering Price Per Share $ 14.05
Class C Shares:
Net asset value and offering price per share * ($15,855,202
applicable to 1,168,002 shares of beneficial interest
outstanding) $ 13.57
Class I Shares:
Net asset value, offering and redemption price per share
($18,461,041 applicable to 1,363,630 shares of beneficial
interest outstanding) $ 13.54
See notes to unaudited financial statements.
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
INVESTMENT INCOME:
Interest income (net of premium amortized of $585,110) $ 9,941,335
EXPENSES:
Investment advisory fees (Note 4) 870,268
Administration fees (Note 4)
Class A Shares 197,898
Class C Shares 8,367
Class I Shares 4,521
Distribution and service fees (Note 4)
Class A Shares 379,965
Class C Shares 40,163
Transfer agent fees 108,064
Custodian fees 128,830
Registration and filing fees 39,303
Professional fees 22,415
Accounting fees 21,429
Trustee fees 4,840
Other expenses 12,862
Total Expenses 1,838,925
Less:
Expenses waived by investment advisor (Note 4) (104,439)
Net Expenses 1,734,486
Net Investment Income 8,206,849
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTE 6)
Net realized gain on investments sold 27,336
Increase in unrealized appreciation of investments 2,329,954
Net Realized And Unrealized Gain On Investments 2,357,290
Net Increase In Net Assets Resulting From Operations $10,564,139
See notes to unaudited financial statements.
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $ 8,206,849 $ 13,785,181
Net realized gain (loss) on investments sold 27,336 (28,983)
Increase in unrealized appreciation of investment 2,329,954 5,148,693
Net Increase in Assets Resulting from Operations 10,564,139 18,904,891
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (7,464,067) (13,081,853)
Class C Shares (288,667) (428,625)
Class I Shares (454,115) (274,703)
FUND SHARE TRANSACTIONS - (Note 5):
Class A Shares 29,163,232 58,470,208
Class C Shares 4,478,091 3,484,657
Class I Shares 1,717,915 15,723,400
Net Increase in Net Assets 37,716,528 82,797,975
NET ASSETS:
Beginning of period 337,199,844 254,401,869
End of period $ 374,916,372 $ 337,199,844
See notes to unaudited financial statements.
Note 1 - Organization
Thornburg Intermediate Municipal Fund (the "Fund"), is a series of Thornburg
Investment Trust (the "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 six series of
shares of beneficial interest in addition to those of the Fund: Thornburg
Florida Intermediate Municipal Fund, Thornburg New York Intermediate Fund,
Thornburg New Mexico Intermediate Municipal Fund, 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. The Fund's investment objective is to obtain as high a level of
current income exempt from Federal income taxes as is consistent with the
preservation of capital. The Fund currently offers three classes of shares of
beneficial interest, Class A, Class C and Institutional Class (Class I) shares.
Each class of shares of a Fund represents an interest in the same portfolio of
investments of the Fund, except that (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 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, (iii) Class I shares are sold at net asset value without a
sales charge at the time of purchase, and (iv) the respective classes have
different reinvestment privileges. 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 Fund are limited to distribution fees, administrative
fees and certain 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 Trust 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
six months ended March 31, 1998 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. Use of Estimates: The preparation of
financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
Note 3 - Merger of MacKenzie National Municipal Fund
On September 4, 1997, the Fund acquired all of the net assets of the MacKenzie
National Municipal Fund ("MacKenzie") pursuant to a plan of reorganization
approved by MacKenzie's shareholders. The merger was accomplished by a tax free
exchange of Class A shares of the Fund (valued at $18,771,800) for the net
assets of MacKenzie which aggregated $18,771,800, including $1,229,921 of
unrealized appreciation. The combined net assets of the Fund immediately after
the merger was $330,284,944.
Note 4 - Investment Advisory Fee and Other Transactions With Affiliates
Pursuant to an investment advisory agreement, Thornburg Management Company, Inc.
(the "Adviser") serves as the investment adviser and performs services for which
the fees are payable at the end of each month. For the six months ended March
31, 1998, these fees were payable at annual rates ranging from 1/2 of 1% to
11/40 of 1% of the average daily net assets of the Fund depending on the Fund's
asset size. The Fund also has an Administrative Services Agreement with the
Adviser, whereby the Adviser will perform certain administrative services for
the shareholders of each class of the Fund's shares, and for which fees will be
payable at an annual rate of up to 1/8 of 1% of the average daily net assets
attributable to each class of shares. For the six months ended March 31, 1998,
the Adviser voluntarily waived certain operating expenses amounting to $104,439.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of the Fund shares. For the
six months ended March 31, 1998, the Distributor earned commissions aggregating
$43,655 from the sale of Class A shares and collected contingent deferred sales
charges aggregating $3,044 from redemptions of Class C 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 average net assets attributable to each class of shares of the
Fund 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 C shares under which the Fund 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 and Distribution Plans for the six months ended March
31, 1998, are set forth in the statement of operations. Certain officers and
trustees of the Trust are also officers and/or directors of the Adviser and
Distributor. The compensation of unaffiliated trustees is borne by the Trust.
Note 5 - Shares of Beneficial Interest
At March 31, 1998 there were an unlimited number of shares of beneficial
interest authorized, and capital paid in aggregated $358,281,090. Transactions
in shares of beneficial interest were as follows:
Six Months Ended March 31, 1998 Year Ended September 30, 1997
Class A Shares Shares Amount Shares Amount
Shares sold 2,955,826 $ 46,442,001 5,286,812 $ 70,614,800
Shares issued to shareholders in
reinvestment of distributions 275,496 3,727,173 587,219 7,823,262
Shares issued in merger -0- -0- 1,399,836 18,771,800
Shares repurchased (1,551,430) (21,005,942) (2,909,821) (38,739,654)
Net Increase 1,679,892 $ 29,163,232 4,364,046 $ 58,470,208
Class C Shares
Shares sold 392,221 $ 5,318,940 463,652 $ 6,137,464
Shares issued to shareholders in
reinvestment of distributions 14,070 190,686 25,749 343,527
Shares repurchased (76,017) (1,031,535) (224,491) (2,996,334)
Net Increase 330,274 $ 4,478,091 264,910 $3,484,657
Class I Shares
Shares sold 245,073 $ 3,306,070 1,633,003 $ 21,682,243
Shares issued to shareholders in
reinvestment of distributi 5,982 80,920 5,832 77,734
Shares repurchased (123,287) (1,669,075) (445,038) (6,036,577)
Net Increase 127,768 $ 1,717,915 1,183,797 $ 15,723,400
Note 6 - Securities Transactions
For the six months ended March 31, 1998, the Fund had purchase and sale
transactions (excluding short-term securities) of $58,089,273 and $27,153,553,
respectively. At March 31, 1998, net unrealized appreciation of investments was
$20,133,250, resulting from $20,469,062 gross unrealized appreciation and
$335,812 gross unrealized depreciation. Accumulated net realized losses from
securities transactions included in net assets at March 31, 1998, aggregated
$3,497,968. For Federal income tax purposes the Fund has realized capital loss
carryforwards of $3,498,473 from prior fiscal years 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 - $1,201,221, September 30, 2003 - $2,093,003 and September
30, 2005 - $200,249.
<TABLE>
<CAPTION>
Per share operating performance (for a share outstanding throughout the year)
<S> <C> <C> <C> <C> <C>
Six Months Ended Year Ended September 30,
March 31, 1998 1997 1996 1995 1994
Class A Shares:
Net asset value, beginning of period $ 13.46 $ 13.23 $ 13.18 $ 12.73 $ 13.47
Income from investment operations:
Net investment income 0.32 0.66 0.68 0.68 0.67
Net realized and unrealized
gain (loss) on investments 0.10 0.23 0.05 0.45 (0.72)
Total from investment operations 0.42 0.89 0.73 1.13 (0.05)
Less dividends from:
Net investment income (0.32) (0.66) (0.68) (0.68) (0.67)
Realized capital gains 0.00 0.00 0.00 0.00 (0.02)
Change in net asset value 0.10 0.23 0.05 0.45 (0.74)
Net asset value, end of period $ 13.56 $ 13.46 $ 13.23 $ 13.18 $ 12.73
Total return (a) 3.13% 6.90% 5.64% 9.16% (0.38)%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income 4.71%(b) 4.96% 5.12% 5.31% 5.23%
Expenses, after expense reductions 1.00%(b) 1.00% 1.00% 1.00% 0.95%
Expenses, before expense reductions 1.05%(b) 1.05% 1.09% 1.08% 1.05%
Portfolio turnover rate 7.78% 15.36% 12.64% 32.20% 27.37%
Net assets at end of period (000) $ 340,600 $ 309,293 $ 246,128 $ 227,881 $ 207,718
<FN>
(a) Sales loads are not reflected in computing total return which is not annualized for periods less than one year.
(b) Annualized.
Note: From September 1, 1994 to September 28, 1995 the Fund issued class B shares, which at the time of their
conversion to class A shares on September 28, 1995 represented less than 1% of the Fund's net assets
</FN>
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C>
Period from Sept. 1 (a) -
Six Months Ended Year Ended Septemberr 30, September 30,
March 31, 1998 1997 1996 1995 1994
Class C Shares:
Net asset value, beginning of period $ 13.48 $ 13.24 $ 13.20 $ 12.73 $ 12.91
Income from investment operations:
Net investment income 0.29 0.61 0.63 0.60 0.05
Net realized and unrealized
gain (loss) on investments 0.09 0.24 0.04 0.47 (0.18)
Total from investment operations 0.38 0.85 0.67 1.07 (0.13)
Less dividends from:
Net investment income (0.29) (0.61) (0.63) (0.60) (0.05)
Change in net asset value 0.09 0.24 0.04 0.47 (0.18)
Net asset value, end of period $ 13.57 $ 13.48 $ 13.24 $ 13.20 $ 12.73
Total return (b) 2.85% 6.55% 5.14% 8.60% (0.97)%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income 4.31% 4.55% 4.73% 4.62% 4.51%(c)
Expenses, after expense reductions 1.40% 1.40% 1.40% 1.66% 1.76%(c)
Expenses, before expense reductions 1.57% 1.99% 1.97% 2.35% 1.76%(c)
Portfolio turnover rate 7.78% 15.36% 12.64% 32.20% 27.37%
Net assets at end of period (000) $ 15,855 $ 11,292 $ 7,586 $ 4,001 $ 139
<FN>
(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.
</FN>
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Six Months Ended Year Ended September 30
March 31, 1998 1997 1996 *
Class I Shares:
Net asset value, beginning of period $ 13.44 $ 13.23 $ 13.00
Income from investment operations:
Net investment income 0.34 0.70 0.17
Net realized and unrealized
gain on investments 0.10 0.21 0.23
Total from investment operations 0.44 0.91 0.40
Less dividends from:
Net investment income (0.34) (0.70) (0.17)
Change in net asset value 0.10 0.21 0.23
Net asset value, end of period $ 13.54 $ 13.44 $ 13.23
Total return (a) 3.29% 7.07% 3.11%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income 5.02%(b) 5.16% 5.49%(b)
Expenses, after expense reductions 0.69%(b) 0.69% 0.70%(b)
Expenses, before expense reductions 0.82%(b) 1.24% 6.10%(b)
Portfolio turnover rate 7.78% 15.36% 12.64%
Net assets at end of period (000) $ 18,461 $ 16,615 $ 689
<FN>
(a) Not annualized for periods less than one year.
(b) Annualized.
* Sales of Class I shares commenced on July 5, 1996.
</FN>
</TABLE>
<TABLE>
CUSIPS: Class A - 885-215-202, Class C - 885-215-780, Class I - 885-215-673
NASDAQ Symbols: Class A - THIMX, Class C -THMCX , Class I - THMIX
<CAPTION>
Principal Credit Ratingt
Amount Issuer-Description Moody's/S&P Value
<S> <C> <C> <C>
Alabama (1.90%)
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: MB Aaa/AAA $1,673,529
250,000 Alabama Municipal Electric Authority Power Supply System Series 1991-A, 6.50%
due 9/1/05 (Insured: MBIA) Aaa/AAA 271,198
500,000 Alabama State Docks Revenue, 6.00% due 10/1/08 (Insured: MBIA) Aaa/AAA 553,630
935,000 Montgomery Alabama Special Care Facilities Series A, 5.10% due 5/1/10
(Baptist Med Center Project; Insured: AMBAC) Aaa/AAA 929,764
1,030,000 Montgomery Alabama Special Care Facilities Series A, 5.25% due 5/1/12
(Baptist Med Center Project; Insured: AMBAC) Aaa/AAA 1,023,068
750,000 Montgomery County Revenue, 7.00% due 4/1/07 (Human Resources Project) NR/NR 822,975
920,000 Pell County Industrial Development Board Revenue Series 1989-A, 7.75% due 9/1/04
(Shelby Creek Fabricators Project; LOC: Southtrust 927,562
790,000 Phenix City Alabama Water & Sewer Revenue, 4.95% due 8/15/12 Aaa/AAA 785,616
Alaska (1.30%)
1,000,000 Alaska Industrial Development & Export Authority Series 1991-A, 7.30% due 4/1/06 A2/A- 1,047,820
845,000 Anchorage Electric Utility Revenue, 5.75% due 12/1/05 (Insured: MBIA) Aaa/AAA 910,648
1,500,000 North Slope Borough Alaska General Obligation Capital Appreciation
Series 1993-B, 0% due 1/1/02 (Insured:MBIA) Aaa/AAA 1,275,525
1,660,000 Seward Alaska Revenue, 7.375% due 10/1/07 (Alaska Sealife Center Project) NR/NR 1,773,527
Arizona (1.80%)
2,710,000 Arizona Municipal Finance Program, 8.70% due 8/1/05 (Escrowed to Maturity) Aaa/AAA 3,443,136
585,000 Coconinos Yavapai School District Sedona, 5.40% due 7/1/02 NR/A- 609,945
500,000 Maricopa County Unified School District #89, Dysart School District
General Obligation, 0% due 7/1/01 (Insured: FGIC) Aaa/AAA 436,540
880,000 Santa Cruz Valley Arizona School District Series 1994, 0% due 7/1/98 (Insured: FGIC) Aaa/AAA 871,763
400,000 Tucson General Obligation Series D, 9.75% due 7/1/12 NR/AA 596,712
500,000 Tucson General Obligation Series D, 9.75% due 7/1/13 NR/AA 754,055
Arkansas (0.40%)
1,335,000 Rogers Sales and Use Tax Revenue, 6.00% due 11/1/07 A1/AA 1,440,986
California (12.00%)
725,000 Big Bear Area Regional Wastewater Refunding, 5.00% due 4/1/10 (Insured: AMBAC) Aaa/AAA 744,140
500,000 California Health Facilities Financing Authority, 5.625% due 5/15/08 NR/A- 520,935
675,000 California Housing Finance Authority Revenue Series 1985-B, 9.875% due 2/1/17 Aa/AA- 707,319
1,000,000 California Statewide Community Development Authority Series 1996-A,
6.00% due 9/1/05 (San Gabriel Medical Center Project; Insured: California Health) NR/A+ 1,083,820
4,500,000 California Statewide Community Development Authority Certificate of Participation,
5.50% due 10/1/07 (Unihealth America Project; Insured: AMBAC) Aaa/AAA 4,801,230
3,340,000 California Statewide Community Development Authority Certificate of Participation,
5.90% due 4/1/09 NR/A+ 3,551,222
1,740,000 Escondido Joint Powers Financing Authority Lease Revenue, 0% due 9/1/07
(Center for the Arts Project; Insured: AMBAC) Aaa/AAA 1,117,271
1,000,000 Fremont Multi Family Housing Revenue Series A, 5.40% due 1/1/26, put 1/1/06
(Durham Greens Project; Insured: FNMA) NR/AAA 1,048,770
8,095,000 Glendale Hospital Revenue Refunding Revenue, 7.75% due 1/1/09 (Verdugo Hills Project;
Insured: Industrial Indemnity) NR/A 9,662,839
500,000 Irwindale Community Redevelopment Agency, 6.60% due 8/1/18 Baa3/NR 570,745
500,000 Los Angeles Water and Power, 9.00% due 9/1/04 Aa3/A+ 620,120
300,000 Newport Beach California Revenue Series C, 3.70% due 10/1/22, put 4/1/98
(daily demand note) (Hoag Memorial Hospital Project) NR/A1+ 300,000
100,000 Orange County Local Transportation Authority Sales Tax Revenue, 5.50% due 2/15/01
(Measure M Sales Tax Project) Aa/AA+ 103,958
350,000 Orange County Refunding Recovery, 5.20% due 6/1/03 (Insured: MBIA) Aaa/AAA 365,754
1,190,000 Orange County Refunding Recovery, 6.50% due 6/1/04 (Insured: MBIA) Aaa/AAA 1,331,086
2,280,000 Orange County Refunding Recovery, 6.50% due 6/1/05 (Insured: MBIA) Aaa/AAA 2,572,889
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) A2/A- 3,007,120
1,500,000 Sacramento California Municipal Utility District Electric Revenue, 6.67%
(variable rate) due 5/15/98 (Insured: FSA) Aaa/AAA 1,672,500
980,000 San Diego County Multi Family Housing Revenue, 5.50% due 7/1/25, put 7/1/05
(Del Mar Turf Club Apts - A Project; Collateralized: FNMA) NR/AAA 1,012,850
500,000 San Diego County Water Authority Revenue & Refunding Series 1993-A, 7.437%
(variable rate) due 4/11/98 (Insured: FGIC) Aaa/AAA 590,000
1,925,000 San Diego Water Revenue Certificate of Participation, 6.25% due 5/1/04 Aa3/AA- 2,084,294
2,000,000 San Francisco City & County Agency Redevelopment Agency Lease Revenue, 0% due 7/1/07 A1/A- 1,301,380
365,000 San Francisco Downtown Parking Corporation Series 1993, 5.40% due 4/1/98 A/NR 365,000
380,000 San Francisco Downtown Parking Corporation Series 1993, 5.55% due 4/1/99 A/NR 386,129
405,000 San Francisco Downtown Parking Corporation Series 1993, 5.70% due 4/1/00 A/NR 416,381
425,000 San Francisco Downtown Parking Corporation Series 1993, 5.85% due 4/1/01 A/NR 442,506
145,000 San Marcos Certificate of Participation Series C, 0% due 8/15/05 (Escrowed to Maturity) NR/AAA 104,069
740,000 San Marcos Certificate of Participation Series D, 0% due 9/2/05 (Escrowed to Maturity) NR/AAA 529,988
1,000,000 Southern California Public Power Transmission Project Revenue, 0% due 7/1/14 Aa/A 435,600
1,000,000 Stanton Multi Family Housing Revenue Bond Series 1997, 5.62% due 8/1/08,
(Continental Gardens Project; Insured: FNMA) NR/AAA 1,050,850
700,000 Sulphur Springs School District General Obligation Series B, 5.60% due 3/1/04 NR/A 749,329
800,000 Sulphur Springs School District General Obligation Series B, 5.70% due 3/1/05 NR/A 864,376
450,000 Sunline Transit Agency Certificate of Participation Series A, 5.625% due 7/1/04 A/NR 462,955
215,000 Sunline Transit Agency Certificate of Participation Series A, 5.75% due 7/1/05 A/NR 235,492
Colorado (2.70%)
100,000 Arvada Company Industrial Development Revenue, 5.25% due 12/1/07
(Wanco Incorporated Project; LOC: U.S. Bank, N.A.) NR/NR 101,968
450,000 Arvada Company Industrial Development Revenue, 5.60% due 12/1/12
(Wanco Incorporated Project; LOC: U.S. Bank, N.A.) NR/NR 456,165
500,000 Colorado Health Facilities Auth. Retirement Revenue, 0% due 7/15/20 NR/AAA 152,470
500,000 Colorado Health Facilities Authority Revenue Refunding National Benevolent Association
Series B, 5.10% due 2/1/12 Baa1/NR 484,150
530,000 Colorado Student Loan Revenue Series 1992-B, 6.55% due 12/1/02 A/NR 558,143
975,000 Colorado Student Obligation Bond Authority Student Loan Revenue Series B, 5.90% due 9/1/02 A/NR 1,020,338
2,000,000 Dawson Ridge Met District # 1, 0% due 10/1/22 Aaa/NR 546,000
2,830,000 Larimer County General Obligation, 8.45% due 12/15/05 (Poudre School District R1 Project) A2/NR 3,548,905
2,500,000 Mesa Valley School District Certificate of Participation Series B, 6.875%
due 12/1/05 (Insured: FSA) Aaa/AAA 2,745,450
295,000 Thornton County Single Family Mortgage Revenue Series 1992-A, 8.05% due 8/1/09 A/NR 315,582
Connecticut (1.20%)
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 3,240,450
135,000 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 142,865
500,000 Stratford General Obligation Series 1992, 7.15% due 3/1/03 NR/NR 549,800
500,000 Stratford General Obligation Series 1992, 7.20% due 3/1/04 NR/NR 550,480
Delaware (0.90%)
3,235,000 Delaware Transportation Authority System Revenue, 6.25% due 7/1/04 A1/AA 3,501,079
District of Columbia (1.80%)
1,000,000 District of Columbia Certificate of Participation Series 1993, 7.30% due 1/1/13 NR/BB- 1,098,500
1,000,000 District of Columbia General Obligation Series A, 5.75% due 6/1/03 Ba1/BB 1,051,340
100,000 District of Columbia Georgetown University, 8.25% due 4/1/18 A1/A+ 102,000
150,000 District of Columbia HFA Mortgage Revenue Refunding, 6.00% due 7/1/02 (Insured: MBIA) Aaa/AAA 154,191
1,295,000 District of Columbia Hospital Revenue (Medlantic Healthcare Group) Series 1997-A,
6.00% due 8/15/04 (Insured: MBIA) Aaa/AAA 1,404,479
1,000,000 District of Columbia Hospital Revenue (Medlantic Healthcare Group) Series 1997-A,
6.00% due 8/15/05 (Insured: MBIA) Aaa/AAA 1,089,240
325,000 District of Columbia Revenue, 0% due 2/15/02 (Assoc. of American Medical Colleges) NR/AA- 261,537
250,000 District of Columbia Revenue, 0% due 2/15/04 (Assoc. of American Medical Colleges) NR/AA- 178,803
1,375,000 District of Columbia Revenue American University, 5.25% due 10/1/04 (Insured: AMBAC) Aaa/AAA 1,436,504
Florida (6.40%)
1,495,00 Broward County Florida Housing Finance Authority Refunding Series A, 5.20% due 4/1/17
(FNMA/GNMA Collateralized) Aaa/NR 1,496,241
1,190,000 Broward County Florida Multi Family Housing, 5.40% due 10/1/11 (Pembroke Park Apts
Project; LOC: Florida Housing Finance Corp.) NR/NR 1,196,450
250,000 Cape Coral Special Assessment Water Improvement, 6.50% due 7/1/98 (Insured: MBIA) Aaa/AAA 251,660
240,000 Dade County Educational Facilities Revenue, 7.65% due 4/1/10, pre-refunded 4/1/00 @ 102
(University of Miami Project; Insured: MBIA) Aaa/AAA 261,696
1,000,000 Dade County General Obligation, 7.00% due 10/1/06 (Insured: AMBAC) Aaa/AAA 1,179,620
1,100,000 Duval County HFA Multi Family Housing Revenue Series 1996, 5.35% due 9/1/06
(St. Augustine Apartments Project) NR/A 1,126,895
155,000 Duval County HFA Single Family Housing Revenue Series 94, 6.10% due 4/1/06
(GNMA Guaranteed) Aaa/NR 160,447
155,000 Duval County HFA Single Family Housing Revenue Series 94, 6.10% due 10/1/06
(GNMA Guaranteed) Aaa/NR 160,715
2,320,000 Enterprise Community Development District Assessment Bonds, 6.00% due 5/1/10
(Insured: MBIA) Aaa/AAA 2,514,555
1,000,000 Florida Housing Finance Agency Multi Family Housing Revenue Series 1983-G, 5.35%
due 12/1/05, mandatory put 6/1/00 (Insured: Connecticut General) NR/AA 1,011,620
250,000 Florida Housing Finance Authority Multi Family Housing Revenue, 5.10% due 4/1/13
(Park Colony Project; LOC: Mellon Bank) NR/A+ 255,143
300,000 Florida State Board of Education Series C, 6.00% due 5/1/07 Aaa/AA 328,782
110,000 Florida State Board of Education Cap Outlay, 9.125% due 6/1/14 Aaa/AAA 156,225
690,000 Florida State Board of Education Cap Outlay, 9.125% due 6/1/14 Aa2/AA+ 986,479
750,000 Halifax Hospital Med Center Daytona Beach Health Care Facilities Revenue Series A,
5.00% due 4/1/12 (Insured: ACA) NR/A 736,672
320,000 Jacksonville Health Facilities Authority IDR, 7.55% due 12/1/07
(National Benevolent Association Project) Baa1/NR 368,186
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 104,761
2,515,000 Miami Dade County Special Obligation Subordinated Series C, 0% due 10/1/12 (Insured: MBIA) Aaa/AAA 1,204,886
5,000,000 Miami Dade County Special Obligation Subordinated Series 1997-C, 0% due 10/1/13
(Insured: MBIA) Aaa/AAA 2,259,750
500,000 Orlando & Orange County Expressway Revenue, 8.25% due 7/1/14 (Insured: FGIC) Aaa/AAA 686,320
150,000 Osceola County Health Facilities Revenue Series 1994, 5.75% due 5/1/04
(Evangelical Lutheran Good Samaritan Project; Insured: AMBAC) Aaa/AAA 161,445
2,000,000 Pasco County Housing Finance Authority Multi Family Housing Revenue, 8.65% due 6/1/27,
put 6/1/08 (Cypress Trail Apts Project; Guaranty: Axa Reinsurance) NR/AA- 2,081,840
650,000 Pensacola Apartment Revenue Series A, 6.25% due 10/1/04 Aaa/AAA 710,112
635,000 Pinellas County Florida Health Facility Authority Revenue, 3.65% due 6/1/05,
put 4/1/98 (daily demand note) VMIG1/AAA 635,000
1,845,000 Pinellas County Health Facilities Authority Series 1994-A, 5.75% due 8/1/01
(Multi County Project; FNMA/GNMA Collateralized) Aaa/NR 1,889,815
325,000 Seminole County School Board Certificate of Participation, 5.35% due 7/1/02 (Insured: MBI Aaa/AAA 340,935
1,405,000 South Broward Hospital District Revenue, 7.50% due 5/1/08 (Insured: AMBAC) Aaa/AAA 1,627,889
Georgia (0.40%)
250,000 Georgia Municipal Electric Authority Power Revenue Series Y, 10.00% due 1/1/10 A3/A+ 362,275
1,500,000 Richmond County Development Authority Revenue, 0% due 12/1/21 Aaa/NR 427,980
500,000 Savannah Recovery Development Authority Revenue, 5.95% due 12/1/02 A1/A+ 532,305
Idaho (1.50%)
985,000 Boise City Idaho Industrial Development Corporation, 5.40% due 12/15/09
(Western Trailer Company Project; LOC: First Security) A1/NR 979,011
1,000,000 Idaho Housing & Finance Association Single Family Housing Revenue Series I-2,
5.65% due 7/1/16 Aaa/NR 1,019,930
1,000,000 Idaho Housing & Finance Association Single Family Mortgage Revenue, 5.70% due 7/1/16 Aaa/NR 1,024,110
1,030,000 Idaho Housing Agency Single Family Mortgage Revenue Series C, 7.875% due 1/1/21 Aa/AA 1,064,330
955,000 Idaho Student Loan Series 1992-B, 6.00% due 4/1/00 NR/NR 977,892
705,000 Idaho Student Loan Revenue, 5.875% due 4/1/99 NR/NR 714,355
Illinois (5.20%)
1,930,000 Bedford Park Tax Increment Revenue Refunding Series 1993, 8.00% due 12/1/10 NR/BBB- 2,329,992
300,000 Central Lake County Joint Action Water Agency Series 1991, 0% due5/1/05
(Insured: MBIA) Aaa/AAA 217,830
4,000,000 Cook County Community Collection Dist #508, 7.70% due 12/1/05 (Insured: MBIA) Aaa/AAA 4,839,760
500,000 Illinois Development Financing Authority, 7.125% due 3/15/07
(Children's Home & Aid Society Project; American National Bank of Chicago) NR/AA- 546,480
2,400,000 Illinois Development Financing Authority Debt Restructuring Revenue Series 1994,
7.25% due 11/15/09 (East St. Louis Project) NR/A 2,710,968
320,000 Illinois Educational Facilities Authority Revenue, 7.125% due 7/1/11 A1/A+ 353,824
1,000,000 Illinois Health Facilities Authority Revenue Series 1992, 7.00% due 7/1/02,
(Trinity Medical Center Project) Baa2/BBB 1,073,250
103,000 Illinois Health Facilities Authority Revenue Series A, 7.60% due 8/15/10 (Insured: FSA) Aaa/AAA 123,126
693,000 Illinois Health Facilities Authority Revenue, 7.60% due 8/15/10 (Insured: FSA) Aaa/AAA 754,067
500,000 Illinois Health Facilities Authority Revenue Refunding Series 1992, 7.00% due 1/1/07
(Mercy Hospital Project) Baa1/A- 543,680
1,525,000 Illinois State University Auxiliary Facilities System Revenue Series 1992, 0% due 10/1/01
(Insured: MBIA) Aaa/AAA 1,317,173
1,000,000 Lake County Community Consolidated School District #73, 9.00% due 1/1/06 (Insured: FSA) Aaa/NR 1,286,270
710,000 McHenry County School District Woodstock General Obligation, 6.80% due 1/1/06(Insured:FSA) Aaa/AAA 813,085
295,000 Rock Island Residential Mortgage Revenue, 7.70% due 9/1/08 Aa/NR 315,444
800,000 Sangamon County Property Tax Lease Receipts, 7.45% due 11/15/06 Aa/NR 961,984
1,000,000 Southwestern Illinois Development Authority Medical Facilities Series A,
7.00% due 8/15/12 Baa3/BBB 1,085,690
100,000 Will & Kendall Counties Community School District # 202 General Obligation, 5.45%
due 1/1/05 (Insured: AMBAC) Aaa/AAA 103,551
Indiana (4.40%)
540,000 Brownsburg Indiana Multi School Building Corpfirst Mortgage Bonds, 9.90% due 7/1/05
(Escrowed to Maturity) NR/A 718,459
665,000 Danville Community Elementary School Building Corporation, 6.75% due 1/15/04 NR/AAA 734,393
1,355,000 Delaware County Economic Development Income Tax Lease Rental Refunding Series 1998,
5.25% due 12/1/09 (Insured: MBIA) Aaa/NR 1,396,666
1,000,000 Gary Building Corporation - Lake County First Mortgage Series 1994-B, 8.25% due 7/1/10
(Sears Building Project) NR/NR 1,134,560
255,000 Hamilton Heights Refunding Revenue, 6.60% due 1/1/08 NR/A 283,519
2,600,000 Hamilton Southeastern North Delaware School Building, 6.25% due 7/15/06 Aaa/AAA 2,923,180
700,000 Indiana Bond Bank Special Program Series 1991-F, 7.00% due 8/1/07 NR/A+ 764,631
885,000 Indiana Public School Building Corp First Mortgage Refunding, 6.00% due 1/5/07 NR/AA 977,474
910,000 Indiana Public School Building Corp First Mortgage Refunding, 6.00% due 7/5/07 NR/AA 1,009,472
740,000 Indianapolis Local Public Improvement Bond Bank, 0% due 7/1/09 Aa/AA- 432,094
1,195,000 Lake Central Multi District School Building Mortgage Revenue Series 1992-B,
6.25% due 1/15/04 NR/AAA 1,313,114
1,880,000 Noblesville High School Building Corp First Mortgage Bonds,
5.75% due 1/5/07 (Insured: AMBAC) Aaa/AAA 2,045,609
645,000 North Lawrence Multi School Building Corp Revenue, 6.30% due 7/1/03 NR/A 698,496
1,000,000 Penn High School Building Corporation Series 1992, 6.00% due 6/15/03 NR/A 1,075,080
730,000 Warrick County Multi Family Housing Revenue, 5.00% due 10/1/29, put 10/1/00
(Village Community Partners Project) NR/NR 731,015
Iowa (0.80%)
2,600,000 Iowa State Department General Services Certificate of Participation Series 1992,
6.50% due 7/1/06 (Insured: AMBAC) Aaa/AAA 2,861,066
285,000 Muscatine Iowa Electric Revenue Refunding, 5.00% due 1/1/07 Baa1/A 285,048
Kentucky (3.00%)
1,000,000 Erlanger Kentucky Improvement Assessment, 7.375% due 8/1/10 (Public Improvement 1993 Project;
LOC: PNC Bank of Ohio) NR/NR 1,029,580
2,160,000 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 2,258,194
3,520,000 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 3,682,025
1,665,000 Hickman Industrial Building Revenue, 6.95% due 8/1/09 (H.I.S. Jeans of Kentucky Project) NR/NR 1,735,396
750,000 Kentucky State Turnpike Authority Recovery Revenue, 6.00% due 7/1/09 (Insured: MBIA) Aaa/AAA 751,230
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 637,422
1,120,000 Paintsville First Mortgage Revenue Refunding Series 1991, 8.65% due 9/1/05
(Paul B. Hall Medical Center Project) NR/NR 1,243,223
Louisiana (2.80%)
470,000 Calcasieu Parish Industrial Development Board Pollution Control Revenue,
7.80% due 12/1/05 (Cities Service Corporation Project) Baa2/BBB 472,317
35,994 East Baton Rouge Mortgage Financing Authority Purchase Revenue, 8.25% due 2/25/11
(GNMA Collateralized) Aaa/AAA 37,145
1,250,000 Jefferson Parish Drainage Improvement Refunding, 6.15% due 9/1/05 (Insured: FGIC) Aaa*/AAA 1,388,762
250,000 Louisiana Public Facilities Authority MFHR, 5.95% due 6/15/19
(Carlyle Apts. Project; LOC: Union Bank of Switzerland) NR/AA- 262,113
7,500,000 Louisiana Public Facilities Authority Revenue Refinancing, 8.00% due 10/1/09
(Schwegman Westside Expressway Project) NR/NR 8,222,775
Maine (0.10%)
85,000 Maine Municipal BD Bank Series A, 7.65% due 11/1/07 NR/A 89,042
430,000 Maine Student Loan Revenue Refunding, 6.90% due 11/1/03 A/NR 452,884
Maryland (0.40%)
935,000 Ann Arundel County Multi Family Housing Revenue, 7.45% due 12/1/24, put 12/1/03
(Twin Coves Apartment Project; HudSection 8) NR/BBB+ 988,650
500,000 Maryland St. CDA Department Housing & Community Development Single Family Program First
Series, 5.60% due 4/1/05 Aa2/NR 529,330
Massachusetts (3.90%)
250,000 Boston General Obligation Series A, 7.60% due 2/1/04, pre-refunded 2/1/99 @ 102 NR/A+ 262,907
1,000,000 Fall River General Obligation, 5.25% due 6/1/10 (Insured: MBIA) Aaa/AAA 1,033,240
345,000 Haverhill General Obligation Municipal Purpose Loan Series 1991, 7.50% due 10/15/11 Baa3/BBB 388,270
515,000 Holyoke General Obligation School Project Loan Act of 1948, 7.35% due 8/1/02 Baa2/NR 574,065
1,000,000 Holyoke General Obligation School Project Loan Act of 1948, 7.65% due 8/1/09 Baa2/NR 1,124,270
2,860,000 Massachusetts Housing Finance Authority Insured Rental Housing Series 1994-A,
6.20% due 1/1/06 (Insured: AMBAC) Aaa/AAA 2,979,148
1,350,000 Massachusetts Industrial Financing Agency Revenue, 5.50% due 7/1/07
(Suffolk University Project) Aaa/AAA 1,453,248
4,165,000 Massachusetts Industrial Financing Agency Revenue Series A, 6.125% due 12/1/11
(Insured: MBIA) Aaa/AAA 4,403,613
1,000,000 Massachusetts Industrial Financing Authority Revenue Refunding Series 1993-A,
6.15% due 7/1/02 (Massachusetts Refusetech Project) Baa1/BBB 1,051,770
100,000 Massachusetts State Health & Education Facilities Authority Series B, 6.875% due 7/1/99
(Charlton Hospital Project) A1/A 103,699
500,000 Massachusetts State Health & Education Facilities Authority Revenue, 6.25% due 7/1/04 Baa3/NR 524,670
500,000 Massachusetts State Health & Education Facilities Authority Revenue, 6.625% due 11/15/22 Baa2/BBB 563,585
Michigan (4.20%)
455,000 Auburn Hills Economic Limited Obligation Revenue Refunding and Improvement,
6.15% due 12/1/05 (Foamade Industries Project; LOC: Michigan National Bank) NR/NR 484,134
500,000 Detroit Unlimited Tax General Obligation, 8.00% due 4/1/11, pre-refunded 4/1/01 @ 102 Baa2/AAA 563,980
2,450,000 Flint Refunding Tax Increment General Obligation Fin Auth, 6.125% due 6/1/06 Baa3/BBB+ 2,570,760
1,000,000 Kent Hospital Finance Authority Michigan Hospital, 7.25% due 1/15/13 Aaa/AAA 1,218,810
965,000 Kent Hospital Finance Authority Revenue Refunding Series 1992, 6.20% due 11/1/02
(Pinerest Christian Hospital Project; Insured: FGIC) Aaa/AAA 1,047,179
700,000 Michigan Public Power Agency Series 1997-A, 5.50% due 1/1/04
(Campbell Project; Insured: AMBAC) Aaa/AAA 742,707
1,000,000 Michigan State Housing Development Authority Rental Revenue, 3.60% due 4/1/04 (Insured: AMBAC)NR/A+ 1,034,060
500,000 Michigan State Housing Redevelopment Authority Ltd. Obligation, 6.50% due 9/15/07
(Greenwood Villa Project; Insured: FSA) Aaa/AAA 537,890
1,215,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Series 1992, 6.25% due 8/15/04
(Environmental Research Institute Project) NR/AAA 1,317,522
2,000,000 Pontiac Federal Building Authority Refunding, 6.00% due 4/1/06 (Insured: FSA) Aaa/AAA 2,206,760
895,000 Pontiac Stadium Building Authority Revenue, 6.60% due 3/1/00 Baa3/NR 913,598
1,530,000 Southfield Economic Development Corporation Refunding Revenue N.W. 12
Limited Partneship, 7.25% due 12/1/10 NR/NR 1,635,815
1,025,000 Wayne County Building Authority Limited Tax General Obligation Sinking Fund Series 1992-A,
7.80% due 3/1/05, pre-refunded 3/1/02 @ 102 Baa2/BBB+ 1,172,754
225,000 Wayne County Downriver System Sewage Disposal Series A, 7.00% due 11/1/13 Baa/BBB- 245,299
Minnesota (0.70%)
695,000 Minneapolis Special School Distirict Certificate of Participation, 5.40% due 2/1/01 A1/A 709,859
1,000,000 Minnesota Agricultural & Econ Small Business Development Loan Series 1990-B,
8.375% due 8/1/10 (SBA: Collateralized) NR/NR 1,028,710
870,000 Monticello Pollution Control Revenue Northern States Power Co., 5.375% due 2/1/03 A1/AA 873,698
Mississipi (1.80%)
3,300,000 Adams County Hospital Revenue Series 1991, 7.90% due 10/1/08
(Jefferson Davis Memorial Hospital Project) Aaa/NR 3,750,681
1,500,000 Mississippi Higher Educational Authority Series C, 7.50% due 9/1/09 A/NR 1,639,935
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 213,082
1,000,000 Mississippi Hospital Equipment Revenue, 6.40% due 1/1/07
(Rush Foundation Project; Guaranteed: Connie Lee) Baa3/AAA 1,088,980
Missouri (1.00%)
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 209,068
650,000 Missouri State Health and Education Facilities Authority, 0% due 7/1/02
(Missouri Baptist Medical Center Project) (Escrowed to Maturity) NR/NR 539,337
2,365,000 St. Louis Board of Education General Obligation, 8.50% due 4/1/04 (Insured: FGIC) Aaa/AAA 2,882,628
Montana (0.30%)
910,000 Montana Higher Education Student Assistance Corp. Series 1992-B, 7.05% due 6/1/04 A/NR 986,231
Nebraska (0.80%)
2,135,000 Douglas County Industrial Development Revenue Series 1994, 6.40% due 9/1/14,
mandatory put 9/1/04 (Aksarben Foods Project; LOC: Norwest Bank) NR/NR 2,245,551
700,000 Nebraska Investment Finance Authority, 6.65% due 3/1/00 (Insured: MBIA) Aaa/AAA 735,245
325,000 Nebraska Investment Finance Authority Collateralized Mortgage Obligation
Capital Appreciation Refund, 0% due 4/15/12 (Insured: MBIA) Aaa/AAA 125,414
Nevada (0.10%)
370,000 Clark County Certificate of Participation, 5.75% due 3/17/01
(University Medical Center Project) A/NR 372,242
New Hampshire (0.30%)
1,000,000 New Hampshire Higher Educational Health, 5.25% due 10/1/18 (Franklin Pierce
College Project; Insured: ACA) NR/A 988,870
New Jersey (0.80%)
280,000 Cape May County Municipal Utilities Authority, 6.60% due 8/1/03 A1/A+ 306,289
460,000 Jersey County Sewer Authority, 9.00% due 1/1/06 (Insured: FGIC) Aaa/AAA 466,537
300,000 New Jersey EDA Refunding Revenue Series 1991, 6.875% due 10/1/14, put 10/1/98
(Fairway Corporation II Project; Guaranty: Provident Mutual Life) A2/NR 300,672
365,000 New Jersey EDA Refunding Revenue, 7.50% due 12/1/19 (Spectrum for Living
Development Project; LOC: Midlantic National Bank) A3/A 390,736
400,000 New Jersey Health Care, 7.20% due 7/1/01 (Columbus Hospital Project) Baa3/BB- 421,824
500,000 New Jersey Health Care - Kennedy Health Systems Obligation Group B, 5.75%
due 7/1/08 (Insured: MBIA) Aaa/AAA 549,105
515,000 New Jersey Higher Education Student Loan Revenue Series 1991-A, 7.00% due 7/1/05 A/NR 553,460
New Mexico (1.20%)
2,600,000 Farmington Pollution Control Revenue, 3.85% due 9/1/24, put 4/1/98 (daily demand note)
(LOC: Barclays Bank) P1/A1+ 2,600,000
500,000 New Mexico State Hospital Loan Council, 5.50% due 6/1/01 A3/A- 517,855
590,000 Sandia Pueblo General Obligation, 5.40% due 12/1/03 (LOC: Norwest Bank) NR/AA 612,591
600,000 Sandia Pueblo General Obligation, 5.60% due 12/1/05 (LOC: Norwest Bank) NR/AA 623,112
New York (3.70%)
300,000 Allegheny County IDA Civic Facilities, 7.10% due 9/1/01 (Alfred University Project) Baa1/NR 324,561
550,000 Battery Park City Authority Revenue, 7.35% due 5/1/01, pre-refunded 5/1/99 @ 102 Aaa/AAA 581,856
1,935,000 New York City General Obligation, 6.00% due 8/1/08 (Insured: FGIC) Aaa/AAA 2,134,827
1,000,000 New York City General Obligation, 6.25% due 8/1/08 A3/BBB+ 1,105,020
425,000 New York City General Obligation Refunding, 8.25% due 11/1/99 (Escrowed to Maturity) Aaa/AAA 454,610
1,000,000 New York City General Obligation Refunding, 7.50% due 2/1/01 A3/BBB+ 1,085,530
250,000 New York Housing Finance Agency SVC Contract Obligation Rev. Series A, 6.375% due 9/15/15 Baa1/BBB+ 273,972
200,000 New York Local Government Assistance Corporation Series 1992, 6.875% due 3/15/06 NR/BBB+ 216,926
1,500,000 New York Local Government Assistance Corporation Series 1992, 6.875% due 4/1/06 Aaa/A+ 1,677,045
1,825,000 New York State Dormitory Authority Revenue, 5.50% due 7/1/05
(Vassar Brothers Hospital Project; Insured: FSA) Aaa/AAA 1,942,493
450,000 New York State Dormitory Authority Revenue, 4.90% due 7/1/08
(St. Vincent DePaul Residence Project; LOC: Allied Irish Bank) Aa3/NR 454,523
500,000 New York State Dormitory Authority Revenue Series B, 6.25% due 5/15/14 A3/A- 559,385
2,000,000 New York State Dormitory Authority Revenue Refunding, 5.20% due 2/15/13
(North General Hospital Project) Baa1/BBB+ 1,979,460
1,000,000 Oneida County New York Industrial Development Agency Series A, 5.20% due 2/1/13
(Civic Facility Mohawk Valley Project; Insured: FSA) Aaa/AAA 1,007,850
100,000 Onondaga County Industrial Development Civic Facilities Revenue, 7.90% due 1/1/17
(LOC: Fleet Trust Company) NR/A 112,433
30,000 Valley Health Development Corporation Mortgage Revenue Series 1990-A, 7.85% due 2/1/02
(Insured: FHA) NR/AAA 31,802
North Carolina (0.20%)
650,000 Craven County Industrial Facilities Pollution Control Financing
Authority Solid Waste Revenue, 7.875% due 6/1/05 (Weyerhaeuser Company Project) NR/NR 677,645
North Dakota (0.30%)
650,000 Bismarck Hospital Revenue Refunding and Improvement, 7.00% due 5/1/03
(Medical Center One Inc. Project; Insured: BIG) Aaa/AAA 684,183
365,000 Grand Forks Health Care System Revenue Bonds Series 1997, 6.25% due 8/15/06
(Altra Health Systems Obligated Group Project; Insured: MBIA) Aaa/AAA 407,238
Ohio (5.80%)
700,000 Bellefontaine Hospital Facility Revenue and Refunding Series 1993, 6.00% due 12/1/02
(Mary Rutan Health-Logan County Project) NR/BBB 742,196
250,000 Bowling Green State University General Receipts Series 1991, 6.70% due 6/1/07 A2/A 270,620
1,000,000 Butler County Transportation Improvement, 6.00% due 4/1/10 (Insured: FSA) Aaa/AAA 1,107,710
4,500,000 Cincinnati Student Loan Funding Corporation Series A, 6.15% due 8/1/10 A1/NR 4,700,745
2,250,000 Cleveland Certificate of Participation, 7.10% due 7/1/02,
(Motor Vehicle & Community Equipment Project) Baa2/BBB 2,355,052
1,000,000 Cleveland Parking Facilities Improvement Revenue Series 1992, 8.00% due 9/15/12 NR/NR 1,167,320
1,500,000 Cuyahoga County Mortgage Revenue Bonds Series 1997-E, 5.40% due 1/1/18, put 1/1/03
(Pelton Retirement Community Project; LOC: First National Bank of Ohio) NR/NR 1,532,595
1,100,000 Franklin County Health Care Revenue Series 1995-A, 6.00% due 11/1/10
(Heinzerling Foundation Project; LOC: BancOne - Columbus) Aa2/NR 1,170,829
500,000 Franklin County Hospital, 5.80% due 12/1/05 (Doctors Project) A3/NR 535,250
1,445,000 Franklin County Hospital Revenue Refunding, 5.125% due 6/1/12
(Worthington Christian Village Project) Aa2/NR 1,435,550
900,000 Hamilton County Hospital Facilities Refunding Revenue Series 1992, 6.80% due 1/1/08
(Episcopal Retirement Homes, Inc. Project; LOC: Fifth/Third Bank) Aa2/NR 973,053
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) Aa2/NR 758,653
90,000 Harrison County Ohio Industrial Development Revenue, 6.625% due 12/1/98
(Dravo Equipment Company Project) NR/NR 90,403
1,035,000 Medina Ohio City School District Refunding, 0% due 12/1/11 (Insured: FGIC) Aaa/NR 527,715
1,000,000 Medina Ohio City School District Refunding, 5.00% due 12/1/12 (Insured: FGIC) Aaa/NR 1,001,570
1,050,000 Medina Ohio City School District Refunding, 5.00% due 12/1/13 (Insured: FGIC) Aaa/NR 1,045,412
854,456 Ohio Industrial Development Revenue Series 92, 8.125% due 12/1/06 (Swifton Commons Project) NR/NR 640,842
735,000 Ohio St. Economic Development Rev. Series 1995-2, 5.60% due 6/1/02
(Wirt Metal Products Project) NR/A- 768,193
760,000 Reynoldsburg Health Care Facilities Revenue Bonds Series 1997, 5.70% due 10/20/12 Aaa/NR 808,761
Oklahoma (1.50%)
1,000,000 Oklahoma City Municipal Impt Authority, 0% due 7/1/08 (Insured: AMBAC Aaa/AAA 604,590
180,000 Oklahoma City Municipal Water Sewer Series C, 0% due 7/1/07 Aaa/AAA 115,339
700,000 Oklahoma City Municipal Water Sewer Series C, 0% due 7/1/11 Aaa/AAA 353,647
1,435,000 Oklahoma City Municipal Water Sewer Series C, 0% due 7/1/13 Aaa/AAA 637,671
125,000 Pryor Creek EDA Mortgage Revenue Refunding Series 1991-A, 6.625% due 7/1/01
(FNMA Guaranteed) NR/AAA 130,669
785,000 Pushmataha County Town of Antlers Hospital Authority Revenue Series 1991, 8.75% due 6/1/06 NR/NR 873,681
1,485,000 Tulsa Oklahoma Industrial Development Authority Hospital Revenue, 6.10% due 2/15/09
(Medical Center Project) Aa3/AA 1,598,023
500,000 Tulsa Public Facilities Authority Solid Waste Revenue, 5.65% due 11/1/06
(Ogden Martin Project; Insured: AMBAC) Aaa/AAA 535,400
500,000 Woodward Municipal Hospital Authority Revenue Series 1994, 8.25% due 11/1/09 NR/NR 563,975
Oregon (1.40%)
1,025,000 Albany Hospital Facility Authority Gross Revenue and Refunding Series 1994,
7.00% due 10/1/05 (MennoniteHome Project) NR/NR 1,092,804
400,000 Oregon Economic Development Department Revenue Series CLII, 6.70%
due 12/1/98 (Smokecraft Project; LOC: Seafirst Bank) Aa3/NR 407,560
1,200,000 Oregon Economic Development Department Revenue Series CLII, 7.00%
due 12/1/02 (Smokecraft Project; LOC: Seafirst Bank) Aa3/NR 1,293,516
1,070,000 Oregon Economic Development Department Revenue Series CLII, 7.70% due 12/1/14
(Smokecraft Project; LOC: Seafirst Bank) Aa3/NR 1,233,485
1,000,000 Port of Portland Industrial Revenue Series 85, 7.25% due 10/1/09 (Ash Grove Cement Proje NR/NR 1,083,280
Pennsylvania (5.50%)
500,000 Allegheny County Hospital Development, 7.00% due 8/1/15 NR/A- 601,940
2,050,000 Allegheny County Hospital Revenue, 6.00% due 4/1/06
(University of Pittsburgh Hospital; Insured: MBIA) Aaa/AAA 2,256,128
500,000 Allegheny County Redevelopment Auth Rev Rfdg Home Loan, 6.60% due 8/1/98 A3/A 503,085
1,880,000 Beaver County Hospital Revenue, 6.60% due 7/1/04 (Insured: AMBAC) Aaa/AAA 2,071,365
1,700,000 Beaver County Industrial Development Authority Health Revenue,
0% due 2/1/10 (Guaranteed: FHA) NR/AA- 683,468
360,000 Chartiers Valley School District Capital Appreciation Refunding Series 2, 0% due 3/1/07
(Escrowed to Maturity) Aaa/AAA 238,943
135,000 Hampden Industrial Development Authority, 4.50% due 11/15/98 (Partnership Holdings LLC P B1/NR 134,723
2,800,000 Harrisburg Authority Lease Revenue, 6.50% due 6/1/04,
crossover refunded 6/1/01 @ 101 (Insured: FSA) Aaa/AAA 3,024,336
800,000 Harrisburg Authority Lease Revenue Series 1991, 6.625% due 6/1/06,
crossover refunded 6/1/01 @ 101 (Insured: Capital Guaranty) Aaa/AAA 867,040
2,000,000 Lancaster County Solid Waste, 8.375% due 12/15/04 Baa2/BBB 2,058,500
2,000,000 Lehigh County General Purpose Authority Revenue, 7.80% due 3/15/20, put 3/15/02
(Muhlenburg Care Project; LOC: United Jersey Bank) NR/NR 2,177,640
750,000 Lehigh County General Purpose Rev, 5.10% due 11/15/03
(St. Luke's Hospital, Bethlehem Project; Insured: AMBAC) Aaa/AAA 777,750
785,000 Lehigh County General Purpose Shephard Rehab Hosp, 6.00% due 11/15/07 Aaa/AAA 871,562
479,356 Lehigh County Industrial Development Authority Revenue,
7.45% due 8/1/01 (Kresge Company Project) Ba3/NR 480,008
800,000 McKeesport Area School District Series B, 0% due 10/1/04 NR/A 596,016
400,000 Northeastern Pennsylvania Hospital & Education Authority Series A,
6.30% due 1/1/05 (Insured: AMBAC Aaa/AAA 442,164
980,000 Philadelphia Water & Sewer Revenue 10th Series, 7.35% due 9/1/04 (Escrowed to Maturity) Aaa/AAA 1,108,262
750,000 Pine Richland School District, 0% due 9/1/03 (Insured: AMBAC) Aaa/AAA 590,723
1,000,000 Scranton Lackawanna Health & Welfare Authority, 7.125% due 1/15/13 NR/NR 1,061,740
Rhode Island (1.10%)
595,000 Pawtucket Public Building Authority Water System Revenue, 7.45% due 7/1/05 Aaa/NR 665,258
680,000 Providence Public Building Authority Revenue, 7.10% due 12/1/03
(Veazie Street School and Modular Classroom Project) Baa2/NR 757,996
355,000 Rhode Island Health & Educational Building Corporation Series 1991, 7.10% due 11/1/02
(South County Hospital Project) NR/AAA 391,959
1,500,000 Rhode Island Housing & Mortgage Finance Rental Housing Program Series A, 5.05% due 10/1/01 NR/A 1,525,860
720,000 West Warwick General Obligation, 5.90% due 1/1/05 (Insured: MBIA) Aaa/AAA 766,555
South Carolina (0.50%)
340,000 Beaufort County Certificates Participation, 5.00% due 7/1/01
(Plan Development Corporation Hilton Head Airport) A/NR 348,265
950,000 Florence County Certificate of Participation Series, 6.00% due 3/1/08 Aaa/AAA 1,033,172
580,000 Liberty Sewer Revenue, 8.25% due 8/1/07 NR/NR 592,540
South Dakota (1.00%)
1,000,000 South Dakota Housing Development Authority Home Ownership Mortgage Series 1993-A,
5.20% due 5/1/02 Aa1/AAA 1,028,290
500,000 South Dakota Student Loan Series 1991-A, 7.60% due 8/1/04 NR/A+ 560,365
1,860,000 South Dakota Student Loan Revenue, 7.625% due 8/1/06 (Insured: MBIA) Aaa/AAA 1,987,205
Tennessee (0.60%)
900,000 Carroll County Industrial Development Board Refunding Revenue Series 1995,
7.20% due 4/1/05 (Henry I Siegel Company Project; Guarantee: CHIC by H.I.S.) NR/BBB 938,304
395,000 Carroll County Industrial Development Resource, 7.00% due 4/1/01
(Henry I Siegel Company Project; Guarantee: CHIC by H.I.S.) NR/BBB+ 401,537
185,000 Copperhill Industrial Development Board, 7.80% due 12/1/00
(City Services Company Project) Baa2/BBB 185,772
2,000,000 Met Govt Nashville & Davidson County H & E Facs Brd Revenue, 0% due 6/1/21 Aaa/NR 582,020
Texas (5.10%)
3,295,000 Brazos Higher Education Authority Refunding Revenue Series C-1, 6.20% due 11/1/00 Aa/NR 3,401,627
485,000 Brazos Higher Education Authority Refunding Revenue Series B-1, 6.50% due 6/1/04 A/NR 514,837
245,000 Brazos Texas Higher Education Authority Student Loan Revenue Series A-2, 5.85% due 6/1/01 Aaa/NR 255,378
135,000 Chimney Hill Municipal Utility District Waterworks and Sewer System
Unlimited Tax and Rev Refunding Series 1991, 7.75% due 10/1/11 NR/NR 146,479
865,000 Chimney Hill Municipal Utility District Waterworks and Sewer System
Unlimited Tax and Rev Refunding Series 1991, 7.75% due 10/1/11 NR/NR 942,634
750,000 Clay Road Municipal Utility District Unlimited Tax and Revenue Series 1991, 7.625% due 9 NR/NR 809,610
1,000,000 Conroe Independent School District Refunding Series 1992, 0% due 2/1/05 (PSF Guaranteed) Aaa/AAA 715,190
1,000,000 Conroe Independent School District Refunding Series 1992, 0% due 2/1/05 (PSF Guaranteed) Aaa/AAA 704,270
460,000 El Paso Multi Family Housing Revenue Series A, 6.00% due 12/1/01 A1/NR 475,355
590,000 El Paso Multi Family Housing Revenue Series A, 6.15% due 12/1/02 A1/NR 614,172
410,000 Harris County Flood Control District, 0% due 10/1/06 Aa2/AA 237,464
570,000 Harris County Municipal Utility District #118 Unlimited Tax and Revenue
Refunding Series 1992, 0% due 3/1/04 (Insured: MBIA) Aaa/AAA 405,019
525,000 Harris County Municipal Utility District #118 Unlimited Tax and Revenue
Refunding Series 1992, 0% due 3/1/05 (Insured: MBIA) Aaa/AAA 348,075
880,000 Houston Water Conveyance System Contract Certificate of Participation
Series F, 7.20% due 12/15/04 (Insured: AMBAC) Aaa/AAA 1,023,994
465,000 Hunt Memorial Hospital District, 0% due 2/15/01 A/A 402,039
2,000,000 Leander Independent School District Unlimited Tax School Building & Refunding
Series 1992, 0% due 8/15/05 (PSF Guaran Aaa/NR 1,481,940
800,000 Mesquite General Obligation, 0% due 2/15/02 A1/A+ 677,208
800,000 Midland County Hospital District Revenue Series 1991, 0% due 6/1/07 NR/A- 490,872
500,000 North Texas Higher Education Authority Series D, 6.30 A/NR 528,925
600,000 North Texas Higher Education Authority Student Loan Revenue, 6.30% due 4/1/09 A/NR 635,430
500,000 North Texas Higher Educational Student Loan Revenue, 6.50% due 4/1/98 (Insured: AMBAC) Aaa/AAA 500,000
1,000,000 Northeast Hospital Authority, 7.25% due 7/1/22, pre-refunded 1/1/03 @ 102
(Northeast Medical Center) Baa1/NR 1,144,100
420,000 San Antonio General Obligation, 5.00% due 8/1/00 Aa2/AA 429,051
715,000 Tarrant County Health Fac, 6.00% due 9/1/04 (Harris Methodist Health Systems Project;
Insured: AMBAC) Aaa/AAA 782,081
1,100,000 Texas WaterAaa/AAA 1,140,480ng Authority Revenue, 7.30% due 2/15/04 (Insured: AMBAC)
400,000 Trinity HFC Multi Family Housing Revenue Series 1982, 10.00% due 6/1/98,
(Timberline Apartments Project) NR/NR 400,200
Utah (1.20%)
2,000,000 Intermountain Power Agency Revenue, 0% due 7/1/00 Aaa/AAA 1,822,240
2,500,000 Salt Lake County Housing Authority Multi Family Housing Revenue Refunding Series 1993,
5.40% due 12/15/18, put 12/15/03 (Summertree Project; LOC: First Security Bank) Aa2/NR 2,654,550
Virginia (2.60%)
2,000,000 Hampton Redevelopment Housing Authority Multi Family Housing Refunding Series 1994,
7.00% due 7/1/24, (Chase Hampton Apartments Project) Baa2/NR 2,158,820
215,000 Peninsula Ports Authority Hospital Revenue, 8.00% due 8/1/99
(Mary Immaculate Hospital Project) NR/BBB+ 225,651
2,000,000 Suffolk Redevelopment Housing Authority Multi Family Housing Revenue and Refunding
Series 1994, 7.00% due 7/1/24, (Chase Heritage @ Dulles Project) NR/NR 2,205,480
665,000 Virginia Beach General Obligation, 5.90% due 7/15/08 Aa2/AA 720,574
1,000,000 Virginia Housing Dev. Auth. Commonwealth Mortgage Series 1992-C, 6.75% due 7/1/11 Aa1/AA+ 1,066,120
1,000,000 Virginia Public School Authority, 6.80% due 1/15/05, pre-refunded 1/15/99
(School Funding Project) Aaa/AAA 1,039,200
1,030,000 Virginia State Housing Development Authority Series C-7, 5.40% due 1/1/01 Aa1/AA+ 1,058,861
1,000,000 Virginia State Housing Development Authority Series H-1, 6.60% due 7/1/08 Aa1/AA+ 1,073,910
Washington (2.80%)
1,000,000 Bremerton Water & Sewer Improvement Revenue Series B, 6.00% due 9/1/03 (Insured: FGIC) Aaa/AAA 1,086,360
1,100,000 Clark County Industrial Revenue Solid Waste Transfer Stations Series 1991,
7.50% due 12/15/06 (Columbia LOC: U.S. Bank of Oregon A1/NR 1,207,778
505,000 Grant County Public Utility District # 002 Wanapum Hydro Electric Revenue Series C, 6.00%
due 1/1/03 (Insured: AMBAC) Aaa/AAA 542,613
415,000 Grant County Public Utility District # 002 Wanapum Hydro Electric Revenue Series C, 6.00%
due 1/1/06 (Insured: AMBAC) Aaa/AAA 456,172
1,500,000 Pilchuck Development Public Corporation IDRB Series 1993, 6.25% due 8/1/10
(Little Neck Properties Project; LOC: U.S. Bancorp) NR/NR 1,575,405
790,000 Port of Grays Harbor Revenue Refunding, 6.05% due 12/1/02 A/BBB+ 846,801
1,000,000 Sumner Washington General Obligation Bonds, 4.70% due 8/1/98 NR/NR 1,000,430
870,000 Washington Health Care Facilities Authority Pooled Equipment Series 1992-B, 7.20%
due 6/1/02 (Kadlec Medical Center Project) A3/NR 892,333
400,000 Washington Health Care Facilities Authority Revenue, 7.875% due 12/1/09
(LOC: Allied Irish Banks) NR/A+ 437,876
400,000 Washington Public Power Supply System Series 1991-A, 6.75% due 7/1/05 (Project: 1) Aa/AA 437,896
960,000 Washington Public Power Supply System, 0% due 7/1/10 (Project: 3) Aa1/AA- 521,750
870,000 Washington State General Obligation Series A, 6.60% due 2/1/02 Aa1/AA+ 945,629
500,000 Washington State Public Power Supply # 2, 5.70% due 7/1/08 (Nuclear Project; Insured: MB Aaa/AAA 541,110
West Virginia (1.40%)
3,100,000 West Virginia Parkway Economic Developement Tourism Authority Series 1993,
5.75% due 5/15/02, (inverse floater) (Insured: FGIC) Aaa/AAA 3,189,497
2,000,000 West Virginia Statewide Commission Lottery Revenue Series 1997-A,
5.50% due 7/1/05 (Insured: MBIA) Aaa/AAA 2,133,880
Wisconsin (0.40%)
345,000 Bass Lake PCRB, 6.50% due 4/1/05 (Johnson Timber Corp. Project; SBA Guaranty) NR/NR 386,876
1,000,000 Wisconsin Health & Education, 7.75% due 11/1/15 (Hess Memorial Hospital Project) NR/NR 1,110,950
U. S. Virgin Islands (0.80%)
2,885,000 U.S. Virgin Islands Water & Power Authority Series A, 7.40% due 7/1/11 NR/NR 3,151,920
TOTAL INVESTMENTS (100%) (Cost $352,815,107)** $ 372,948,356
<FN>
* 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 Advisor to be comparable with those
of issuers having debt ratings in the highest grades by Moody's or S&P.
** The cost for federal income tax purpose is the same.
t Credit ratings are unaudited.
See notes to unaudited financial statements.
</FN>
</TABLE>
Class A Shares* Morningstar Ratings Period Ending March 31, 1998
3yr 5yr 10yr 3yr 5yr 10yr
Thornburg Limited Term Municipal Fund - National Portfolio
LTMFX is a laddered portfolio of municipal obligations from throughout the U.S.
The Fund has an average maturity of 5 years or less. Thornburg Limited Term
Municipal Fund - California Portfolio LTCAX, a single state companion portfolio
to LTMFX, offers California investors double tax-free** yields in a laddered,
short
maturity portfolio. The Fund has an average maturity of 5 years or less.
Thornburg Intermediate Municipal Fund
THIMX is a laddered portfolio of municipal obligations from throughout the U.S.
The Fund has an average maturity of 10 years or less.
Thornburg Florida Intermediate Municipal Fund
THFLX , a single state companion fund to THIMX, offers Florida investors a
balanced approach to double tax-free** yields. The Fund
has an average maturity of 10 years or less.
Thornburg New Mexico Intermediate Municipal Fund
THNMX, a single state companion fund to THIMX, offers New Mexico investors a
balanced approach to double tax-free** yields. The Fund has an average maturity
of 10 years or less. Thornburg Limited Term U.S. Government Fund LTUSX is an
open end mutual fund which invests in short to intermediate obligations issued
by the U.S. Government, its agencies or instrumentalities***. It has an average
maturity of 5 years or less. It is particularly suitable for your IRA, Keogh
Plan, Pension
Plan, or Profit Sharing Plan.
Thornburg Limited Term Income Fund
THIFX is an open end mutual fund which invests in a wide variety of taxable,
investment grade, short to intermediate obligations.
The Fund keeps a weighted average maturity of 5 years or less. It is also
suitable for your IRA, Keogh Plan, Pension Plan, or
Profit Sharing Plan.
Thornburg Value Fund
Thornburg Global Value Fund
Thornburg New York Intermediate Municipal Fund
4 4 4 1,525 782 345 Muni Short
4 4 4 1,525 782 345 Muni Short
4 5 N/A 1,525 782 N/A Muni Nat'l Int.
5 N/A N/A 1,525 N/A N/A Muni Single St. Int.
4 4 N/A 1,525 782 N/A Muni Single St. Int.
3 3 3 1,403 831 329 Short Gov't
4 3 N/A 1,403 831 N/A Inter. Term Bd.
New, Not Yet Rated
SOURCE: Morningstar Advanced Analytics for Principia, 3/31/98. Morningstar
proprietary ratings are subject to change every month and are calculated from
the fund's 3-, 5- and 10- year average annual returns (when available) in excess
of 90-day Treasury bill returns with appropriate fee adjustment and a risk
factor that reflects fund performance below 90-day Treasury bill returns. 10% of
the funds in an investment category receive 5 stars, 22% receive 4 stars and 35%
receive 3 stars. *Morningstar ratings only apply to a fund's Class A shares.
Certain funds also offer other classes of shares which are not rated.
Those shares have different expenses and performance from Class A shares.
**Income from the municipal funds may be subject to state and local taxes and/or
(except LTMFX) the federal alternative minimum tax. Although it reserves the
right to do so in the future, LTMFX does not currently invest in bonds subject
to the alternative tax. *** The share price of the Fund is not guaranteed by the
U.S. Government. +Class C shares of the respective funds have only been offered
since September 1, 1994.
Recall that in the spring of 1993 the fed funds rate was 3%. Today it is 5.31%.
Assets in money market funds* and bank CDs* have increased by almost $1 trillion
since then, while American investors' holdings of bonds and bond funds have
actually decreased. While all savers would prefer to have the interest rates of
the 1980's, it is noteworthy that (1) bond fund performance has been very good
relative to money market and CD performance even in an environment of generally
rising short term interest rates, and (2) many economists are calling for
generally lower interest rates in the years ahead, even if Mr. Greenspan happens
to raise short interest rates temporarily to cool the economy later this year. I
believe investors should seriously consider moving assets from money market
investments to bonds if higher short term interest rates and lower bond prices
materialize in the coming months. Over the years, our practice of laddering a
diversified portfolio of short and intermediate maturity municipal bonds has
allowed your fund to perform well above average in varying interest rate
environments. Your fund has earned Morningstar's** coveted 5-star overall rating
for risk adjusted performance. I would like to attribute this to capable
execution of a sensible investment strategy over time. Thank you for investing
in Thornburg Intermediate Municipal Fund. Sincerely,
Brian J. McMahon
Portfolio Manager
