Thornburg Florida Intermediate Municipal Fund
Fund facts. . . as of 3/31/99
Thornburg
Florida Intermediate
Municipal Fund
A Shares
SEC Yield 3.56%
Taxable Equiv. Yields 6.09%
NAV $12.25
Max. Offering Price $12.69
Total returns. . . as of 3/31/99
(Annual Average - After Subtracting
Maximum Sales Charge)
One Year 1.17%
Three Year 4.63%
Five Year 5.20
Since Inception 4.56%
Inception Date (2/1/94)
The taxable equivalent yield assumes a 39.6% marginal federal tax rate and a
0.2% intangible tax.
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 Fund's Class C Shares were converted to Class A Shares on April 30,
1996.
The data quoted represent past performance and may not be construed as a
guarantee of future results.
<PAGE>
Dear Shareholder,
What a difference six months makes! Last autumn the world's leading economists
and investment strategist predicted that the Russian financial
crisis, coming on the heels of the Asian financial crisis, would send the world
economy into a tailspin. Yields on 30-year U.S. government bonds dropped below
4.75% for the first time in 4 decades. Bond buyers at that time no doubt
expected an economic slowdown that would be severe and long lasting. The gloomy
experts were wrong. The U.S. economy delivered its strongest economic growth in
a generation during the October 1 to April 1 period. Asian economies are
gathering momentum, as are many other developing economies around the world. As
we write this letter, the experts are trying to decide if better economic growth
worldwide will pave the way for more inflation and higher interest rates. As
they examine their crystal balls, interest rates are rising. As is often the
case, the municipal bond market is reacting slowly to the changing scene.
Whatever happens, we believe your laddered maturity municipal bond portfolio is
well structured to adapt to changing circumstances and benefit from higher
yields, if they should become available. On March 31, 1998 the net asset value
per share of Thornburg Florida Intermediate Municipal Fund was $12.22. The price
increased to $12.37 on September 30 (at the time of the economic slowdown
panic), before settling at $12.25 on March 31, 1999, the conclusion of the first
half of your fund's fiscal 1999. If you were with us for the entire last six
months, you received dividends of 27.1 cents per share. If you reinvested your
dividends you received 27.3 cents per share. Your Thornburg Florida Intermediate
Municipal Fund portfolio currently holds 60 municipal obligations from Florida
borrowers. Approximately 87% 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 portfolio 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
8.5 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 = 11% year 2 = 11%
2 to 4 years = 8% year 4 = 19%
4 to 6 years = 8% year 6 = 27%
6 to 8 years = 16% year 8 = 43%
8 to 10 years = 17% year 10 = 60%
10 to 12 years = 12% year 12 = 72%
12 to 14 years = 8% year 14 = 80%
14 to 16 years = 9% year 16 = 89%
16 to 18 years = 9% year 18 = 98%
Over 18 years = 2%
Over the six months your average portfolio maturity has held
steady. The passage of time shortened the maturities of the bonds we owned on
October 1. We directed portfolio cash flow and new money into the middle of your
bond ladder, taking advantage of the plentiful supply and good selection of new
municipal bonds coming to market late last year. 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 extend the average portfolio maturity. This would permit us to
increase our dividend yields if higher yields are available. Any observer must
be impressed by the fundamental strength of the broad U.S. economy, as well as
the economy of Florida. More people than ever before are working. Wages are
firm. But tax receipts are beginning to slow down, and government spending is
accelerating. If the current strength of the U.S. economy persists, we expect
long maturity interest rates to increase in 1999. The supply of municipal bonds
will continue to be plentiful. No politician gets elected as a budget cutter
these days. I am sure that most Florida taxpayers welcome the 5 basis point
decrease in the Florida intangibles tax. Governor Bush reportedly wants to cut
this tax more. If this happens, we will expect yields on Florida municipal bonds
to increase slightly relative to yields on bonds from other states. Over the
years, our practice of laddering a diversified portfolio of short and
intermediate maturity bonds has allowed your fund to consistently perform well
in varying interest rate environments. Your fund has earned Morningstar's 4 star
overall rating* for risk adjusted performance. We 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 George T. Strickland
Portfolio Manager Portfolio Manager
<PAGE>
ASSETS
Investments at value (cost $31,307,657) $ 32,422,781
Cash 75,656
Interest receivable 522,713
Receivable for fund shares sold 96,640
Prepaid expenses and other assets 260
Total Assets 33,118,050
LIABILITIES
Payable for securities purchased 1,453,177
Accounts payable and accrued expenses 55,243
Payable to investment advisor (Note 3) 14,276
Dividends payable 58,953
Total Liabilities 1,581,649
NET ASSETS $ 31,536,401
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share ($31,536,401
applicable to 2,574,118 shares of beneficial interest
outstanding - Note 4) $ 12.25
Maximum sales charge, 3.50 % of offering
price (3.63% of net asset value per share) 0.44
Maximum Offering Price Per Share $ 12.69
See notes to financial statements.
INVESTMENT INCOME:
Interest income (net of premium amortized
of $44,538) $ 798,386
EXPENSES:
Investment advisory fees (Note 3) 73,921
Administration fees (Note 3) 18,480
Service fees (Note 3) 36,221
Transfer agent fees 9,683
Custodian fees 16,462
Professional fees 1,616
Accounting fees 1,415
Trustee fees 153
Other expenses 1,652
Total Expenses 159,603
Less:
Expenses reimbursed by investment advisor (Note 3) (12,649)
Net Expenses 146,954
Net Investment Income 651,432
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (Note 5)
Net realized (loss) on investments sold (30,044)
Increase (decrease) in unrealized appreciation of investme (251,241)
Net Realized and Unrealized
Gain (Loss) on Investments (281,285)
Net Increase in Net Assets Resulting
From Operations 370,147
See notes to financial statements.
Six Months Year Ended
Ended March 3, September 30,
1999 1998
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income $ 651,432 $ 1,200,246
Net realized gain (loss) on investments sold (30,044) 829
Increase (decrease) in unrealized
appreciation of investments (251,241) 521,930
Net Increase in Assets Resulting from Operations 370,147 1,723,005
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (651,432) (1,200,246)
FUND SHARE TRANSACTIONS (Note 4):
Class A Shares 3,727,135 2,904,944
Net Increase in Net Assets 3,445,850 3,427,703
NET ASSETS:
Beginning of period 28,090,551 24,662,848
End of period $ 31,536,401 $ 28,090,551
See notes to financial statements.
<PAGE>
Note 1 - Organization
Thornburg Florida 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 seven
series of shares of beneficial interest in addition to those of the Fund:
Thornburg New Mexico Intermediate Municipal Fund, Thornburg New York
Intermediate Municipal Fund, Thornburg Intermediate Municipal Fund, Thornburg
Limited Term U.S. Government Fund, Thornburg Limited Term Income Fund, Thornburg
Value Fund, and Thornburg Global 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 tax as is consistent with the preservation of capital. The Fund currently
offers only one class of shares of beneficial interest, Class A shares. On April
30, 1996, all existing Class C 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 or Class C shares.
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, 1999 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 on 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 - 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, 1999, 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, 1999,
the Adviser voluntarily reimbursed certain operating expenses amounting to
$12,649. The Fund has an underwriting agreement with Thornburg Securities
Corporation (the "Distributor"), which acts as the Distributor of Fund shares.
For the six months ended March 31, 1999, the Distributor earned commissions
aggregating $6,874 from the sale of Class A shares. 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. Certain officers and
trustees of the Trust are also officers and/or directors of the Adviser and
Distributor. The compensation of unaffilliated trustees is borne by the Trust.
Note 4 - Shares of Beneficial Interest
At March 31, 1999 there were an unlimited number of shares of beneficial
interest authorized, and capital paid-in aggregated $30,602,732. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended March 31, 1999 Year Ended September 30, 1998
Class A Shares Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 499,637 $ 6,151,008 1,756,020 $21,482,186
Shares issued to shareholders in
reinvestment of distributi 22,028 271,133 37,405 457,724
Shares repurchased (218,723) (2,695,006) (1,554,599) (19,034,966)
Net Increase 302,942 $ 3,727,135 238,826 $ 2,904,944
</TABLE>
Note 5 - Securities Transactions
For the six months ended March 31, 1999, the Fund had purchase and sale
transactions (excluding short-term securities) of $5,950,278 and $3,990,680,
respectively. The cost of investments for Federal Income tax purposes is
$31,307,657. At March 31, 1999, net unrealized appreciation of investments was
$1,115,123, resulting from $1, 123,060 gross unrealized appreciation and $7,937
gross unrealized depreciation. Accumulated net realized losses from securities
transactions included in net assets at March 31, 1999 aggregated $151,410. For
Federal income tax purposes, the Fund has realized capital loss carryforwards of
$144,452 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,
2003 - $90,253, September 30, 2004 - $13,904, September 30, 2005 - $34,967 and
September 30, 2006 - $5,328.
<PAGE>
<TABLE>
<CAPTION>
Per share operating performance (for a
share outstanding throughout the year)
Six Months Ended Year Ended September 30,
March 31, 1999 1998 1997 1996 1995 1994(a)
Class A Shares:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.37 $ 12.14 $ 11.88 $ 11.83 $ 11.54 $ 12.06
Income from investment operations:
Net investment income 0.27 0.56 0.56 0.57 0.63 0.40
Net realized and unrealized
gain (loss) on investments (0.12) 0.23 0.26 0.05 0.29 (0.52)
Total from investment operations 0.15 0.79 0.82 0.62 0.92 (0.12)
Less dividends from:
Net investment income (0.27) (0.56) (0.56) (0.57) (0.63) (0.40)
Change in net asset value (0.12) 0.23 0.26 0.05 0.29 (0.52)
Net asset value, end of period $12.25 $12.37 $12.14 $11.88 $11.83 $11.54
Total return (b) 1.23% 6.62% 7.04% 5.37% 8.22% (0.95)%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income 4.41% (c) 4.54% 4.65% 4.80% 5.41% 5.09%(c)
Expenses, after expense reductions 0.99% (c) 0.98% 0.83% 0.61% 0.38% 0.25%(c)
Expenses, before expense reductions 1.08% (c) 1.11% 1.13% 1.34% 1.44% 1.95%(c)
Portfolio turnover rate 13.37% 70.81% 51.48% 77.12% 89.60% 19.94%
Net assets at end of period (000) $ 31,536 $ 28,091 $ 24,663 $ 19,501 $ 14,822 $ 8,076
<FN>
(a) Sales of Class A Shares commenced February 1, 1994.
(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>
Schedule of Investments
Thornburg Florida
Intermediate Municipal Fund March 31, 1999
CUSIPS: Class A -885-215-707
NASDAQ Symbol: Class A - THFLX
Principal Credit Rating*
Amount Issuer-Description Moody's/S&P Value
<S> <C> <C> <C>
595,000 Brevard County Tourist Development Tax Revenue Series 1993, 6.325% due NR/NR $ 614,843
3/1/2003(Florida Marlins Training Facilities)
400,000 Broward County Educational Facilities Authority Series 1994, 5.60% due NR/AAA 428,932
4/1/2004(Nova Southeastern University Project; Guaranteed: Connie Lee)
570,000 Broward County Health Facilities Authority, 7.00% due 8/15/2011 (North Aaa/AAA 620,035
Beach Hospital Project; Insured: MBIA)
335,000 Broward County Housing Finance Authority Home Mortgage Revenue, 0% due Aa2/BBB 75,007
4/1/2014
1,000,000 Broward County Housing Finance Authority Refunding Series A, 5.20% due Aaa/NR 1,012,450
4/1/2017(Collateralized: FNMA/GNMA)
200,000 Cape Coral Special Obligation Wastewater Revenue, 5.625% due 7/1/2000 Aaa/AAA 205,638
(GreenArea Project; Insured: FSA)
300,000 Cape Coral Special Obligation Wastewater Revenue, 5.75% due 7/1/2001 (Green Aaa/AAA 313,671
AreaProject; Insured: FSA)
150,000 Cape Coral Special Obligation Wastewater Revenue, 6.00% due 7/1/2003 (Green Aaa/AAA 162,164
AreaProject; Insured: FSA)
555,000 Cape Coral Special Obligation Wastewater Revenue, 6.10% due 7/1/2005 (Green Aaa/AAA 577,061
AreaProject; Insured: FSA)
425,000 Clearwater Florida Housing Authority Finance Revenue Refunding, 5.40% NR/A 438,974
due5/1/2013
900,000 Clermont Water & Sewer Revenue Refunding, 5.00% due 12/1/2000 NR/NR 919,089
400,000 Dade County Florida School Board Certificate Participation Series A, 5.20% Aaa/AAA 427,304
due5/1/2006
285,000 Dade County General Obligation, 7.00% due 10/1/2006 (Insured: AMBAC) Aaa/AAA 335,887
610,000 Dade County Guaranteed Entitlement Revenue, 9.75% due 2/1/2003 Aaa/AAA 652,694
pre-refunded2/1/00 @ 103 (Insured: AMBAC)
230,000 Dade County Health Facilities Revenue - Catholic Health, 7.50% due A1/NR 240,615
8/15/2000(LOC: Allied Irish Bank)
42,000 Duval County Single Family Housing Revenue, 10.25% due 5/15/2016 Aaa/AAA 42,957
145,000 Escambia Housing Finance Authority, 6.15% due 4/1/2000 (Collateralized: GNMA) Aaa/NR 146,920
1,000,000 Florida Housing Development Authority, 6.25% due 12/1/2006 (Hammock's NR/AAA 1,035,580
PlaceProject)
145,000 Florida Housing Finance Agency, 7.65% due 6/1/1999 (Collateralized: GNMA) Aaa/NR 145,455
250,000 Florida Housing Finance Agency, Refunding Multi Family Housing Series C, NR/AAA 265,158
5.55%due 2/1/2006
1,000,000 Florida Housing Finance Agency Multi Family Housing Revenue Series 1983-F, NR/AA 1,002,030
5.35%due 12/1/2005 mandatory put 6/1/00 (Insured: Connecticut General)
1,000,000 Florida Housing Finance Agency Multi Family Housing Revenue Series 1983-G, NR/AA 1,002,030
5.35%due 12/1/2005 mandatory put 6/1/00 (Insured: Connecticut General)
350,000 Florida Housing Finance Agency Revenue Bonds, 5.30% due 12/1/2004 Aaa/AAA 363,667
(Insured:AMBAC)
960,000 Florida Housing Finance Authority Series 94-B, 5.70% due 10/1/2024 mandatory NR/AAA 1,032,989
put10/1/04 (Plantation Colony Project; Collateralized: FNMA)
650,000 Florida Housing Finance Authority Multi Family Housing Revenue, 5.10% NR/AA- 657,501
due4/1/2013 put 4/1/02 (Park Colony Project; LOC: Mellon Bank)
275,000 Florida State Board of Education Series C, 6.90% due 6/1/1999 (ETM) Aaa/AAA 276,732
300,000 Florida State Board of Education Series C, 6.00% due 5/1/2007 Aaa/AA 306,471
220,000 Florida State Board of Education Series D, 6.20% due 5/1/2007 (Insured: Aaa/AAA 226,079
MBIA)(ETM)
200,000 Florida State Department Corrections Certificates of Participation Aaa/AAA 217,806
OkeechobeeCorrectional, 5.90% due 3/1/2004 (Insured: AMBAC)
95,000 Fort Myers Florida Improvement Revenue, 6.00% due 12/1/2013 (Insured: ACA) Aaa/AAA 96,172
365,000 Halifax Hospital Medical Center Health Care Facilities Revenue Series A, NR/A 365,569
5.00%due 4/1/2012 (Insured: ACA)
1,000,000 Halifax Hospital Medical Center Health Care Facilities Revenue Series A, NR/A 988,120
5.20%due 4/1/2018
300,000 Hernando County Industrial Development Revenue, 8.50% due 12/1/2014 NR/NR 336,198
(FloridaCrushed Stone Project)
800,000 Hillsborough County Florida Pollution, 3.15% due 9/1/2025 put 4/01/99 VMIG1/AA 800,000
(dailydemand notes)
1,000,000 Hillsborough County Industrial Development Authority, 5.50% due Aaa/AAA 1,080,400
8/15/2006(University Community Hospital Inc. Project; Insured: MBIA)
310,000 Jacksonville Florida Housing Revenue Windermere Manor Series A, 5.125% NR/AAA 320,056
due9/20/2004 (Collateralized: GNMA)
150,000 Jacksonville Health Facilities Industrial Development Revenue, 5.70% Baa1/NR 158,827
due12/1/2004 (National Benevolent Association Project)
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.00% Baa1/NR 108,842
due12/1/2009 (National Benevolent Association Project)
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.05% Baa1/NR 109,052
due12/1/2010 (National Benevolent Association Project)
600,000 Jacksonville Health Facilities Industrial Development Revenue, 8.00% Baa1/NR 689,814
due12/1/2015 (National Benevolent Association Project)
100,000 Jacksonville Loan Obligation Custody Receipts, 6.10% due 4/1/2001 Aaa/AAA 100,244
(Insured:MBIA)
250,000 Jacksonville Loan Obligation Water & Sewer Revenue, 5.30% due 4/1/1999 Aaa/AAA 250,000
(Insured:MBIA)
1,009,744 Lummus Housing Development Corp., 8.00% due 12/1/2010 (Elderly Housing, NR/NR 1,009,744
Section8 Project)
900,000 Manatee County Pollution Control Revenue, 3.10% due 9/1/2024 put 4/1/99 VMIG1/A1+ 900,000
(dailydemand notes)
1,465,000 Manatee County Revenue, 5.00% due 4/1/2015 (when issued) NR/AAA 1,450,995
250,000 Miami Dade County School Board, Refunding Series C, 5.25% due 8/1/2013 Aaa/AAA 261,063
2,500,000 Miami Dade County Special Obligation Subordinated Series 1997-C, 0% Aaa/AAA 1,219,925
due10/1/2013 (Insured: MBIA)
185,000 Mirimar Wastewater Improvement Assessment Revenue, 6.00% due 10/1/2002 Aaa/AAA 198,975
(Insured:FGIC)
760,000 Mirimar Wastewater Improvement Assessment Revenue, 6.25% due 10/1/2005 Aaa/AAA 854,597
(Insured:FGIC)
240,000 Orange County Housing Finance Authority, 6.10% due 10/1/2005 NR/AAA 251,623
(Collateralized:FNMA/GNMA)
485,000 Orange County Housing Finance Authority Multi Family, Revenue Series B, NR/AAA 503,765
5.375%due 11/1/2025 (Sun Lake Apartments Project)
115,000 Osceola County Health Facilities Revenue Series 1994, 5.75% due Aaa/AAA 124,061
5/1/2004(Evangelical Lutheran Good Samaritan Project; Insured: AMBAC)
100,000 Osceola County Industrial Development Authority, 7.50% due 7/1/2002 Aaa/AAA 105,892
(Insured:AMBAC)
515,000 Palm Beach County Industrial Development Revenue Series 1996, 6.10% NR/A+ 568,503
due12/1/2007 (Lourdes-Noreen McKeen-Geriatric Care Project; LOC: Allied Irish
Bank)
270,000 Palm Beach County Industrial Development Revenue Series 1996, 6.20% NR/A+ 299,028
due12/1/2008 (Lourdes-Noreen McKeen-Geriatric Care Project; LOC: Allied Irish
Bank)
690,000 Pensacola Airport Revenue, 6.25% due 10/1/2005 Aaa/AAA 770,978
800,000 Pinellas County Educational Facility Authority Revenue, 8.00% due NR/NR 892,040
2/1/2011(Clearwater Christian College Project)
1,390,000 Port Orange Florida Water And Sewer Revenue Refunding, 5.25% due Aaa/AAA 1,482,796
10/1/2010(Insured: AMBAC)
500,000 Port St. Lucie Utility System Revenue Series 1996-A, 0% due 9/1/2007 Aaa/AAA 359,600
(Insured:FGIC)
500,000 Seminole County School Board Certificates of Participation, 5.75% due Aaa/AAA 552,165
7/1/2006(Insured: MBIA)
1,000,000 South Broward Hospital District Revenue, 7.50% due 5/1/2008 (Insured: AMBAC) Aaa/AAA 1,148,030
300,000 Volusia County Health Facilities Authority, 5.50% due 6/1/2005 NR/AA 319,968
TOTAL INVESTMENTS (Cost $ 31,307,657) $ 32,422,781
<FN>
See notes to financial statements.
* Credit ratings are unaudited.
</FN>
</TABLE>
