Thornburg New York Intermediate Municipal Fund
ALL DATA AS OF 6.30.00
Fund facts Thornburg New York Intermediate Municipal Fund
Thornburg New York
Intermediate Municipal Fund
A Shares
SEC Yield 4.10%
Taxable Equiv. Yield 7.65%
NAV $ 12.16
Max. Offering Price $ 12.41
Total returns (Annual Average - After Subtracting Maximum Sales Charge)
One Year 1.60%
Since Inception 3.47%
Inception Date 9.5.97
Taxable equivalent yield assumes a 39.6% marginal federal tax rate, a 6.85% New
York State tax rate, and a 4.46% New York City 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 2.00%.
The data quoted represent past performance and may not be construed as a
guarantee of future results.
Letter to shareholders
Dear Fellow Shareholder,
We are pleased to present the annual report for the New York Portfolio of
Thornburg Intermediate Municipal Fund for the fiscal year ending June 30, 2000.
The net asset value per share decreased by 20 cents to $12.16 during the year,
although it has risen in recent months. If you were with us for the entire
period, you received dividends of 63.6 cents per share. If you reinvested your
dividends, you received 65.1 cents per share. In the last year, we have
witnessed a proliferation of "dot.com" stocks and a tight supply of municipal
bonds. You probably know people who have sold perfectly good bonds (or bond
funds) to get in on the action. On average, the ever-more-scarce bonds have
outperformed the "dot.coms" this year. This outperformance by bonds will
continue if the growth rate of our economy begins to lose momentum. Deficit
spending by governments around the world, a hallmark of the prior 30 years, has
turned into surplus accumulation since 1998. The U.S. government, which will pay
off more than $200 billion of treasury bonds this year, leads the way. But it is
not alone. Municipal bond issuance is down over 30% from last year due to
swelling tax receipts at most state and local government entities. New York
bonds are more scarce. We believe the surpluses have crested. Voters favor
various tax cuts and demand more governmental services. For example,
trendsetting California budgets a 17% increase in general fund expenditures and
large tax rebates for the fiscal year beginning July 1, 2000. Stay tuned as the
political drama unfolds. Your Thornburg New York Intermediate Municipal Fund is
a laddered bond portfolio, consisting of over 50 municipal obligations from
borrowers exempt from New York taxes. Approximately 83% of the bonds are rated A
or better by one of the major rating agencies. As you know, we "ladder" the
maturity dates of the bonds in your portfolio so that some of the bonds are
scheduled to mature at par during each of the coming years. As these bonds
mature, we would look forward to the chance to reinvest the proceeds at higher
yields, should they become available! The following chart describes the
percentages of your fund's bond portfolio maturing in each of the coming years:
Today, your fund's weighted average maturity is 8.7 years, and we always keep it
below 10 years. When bond yields were higher last winter and spring, we extended
your average portfolio maturity slightly and improved the structure of your bond
ladder. Unless bond yields increase dramatically in the coming months, we intend
to keep your average portfolio maturity about where it is.
We wish to remind you that 0% of your bonds in this fund bear interest that is
subject to the alternative minimum tax on individuals (AMT). This is unusual in
today's line-up of municipal bond funds, but we hope to keep this profile.
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. We would like to attribute this to
capable execution of a sensible investment strategy over time. Thank you for
investing in Thornburg New York Intermediate Municipal Fund.
Sincerely,
Brian McMahon George Strickland
Managing Director Managing Director
Statement of assets and liabilities
ASSETS
Investments at value (cost $23,424,617) ................... $24,510,961
Cash ...................................................... 33,145
Receivable for investments sold ........................... 155,000
Interest receivable ....................................... 411,573
Prepaid expenses and other assets ......................... 666
Total Assets ..................................... 25,111,345
LIABILITIES
Payable for investments purchased ......................... 669,461
Payable for fund shares redeemed .......................... 8,268
Accounts payable and accrued expenses ..................... 18,641
Payable to investment advisor (Note 3) .................... 7,100
Dividends payable ......................................... 43,238
Total Liabilities ................................ 746,708
NET ASSETS ................................................ $24,364,637
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share ($24,364,637
applicable to 2,003,652 shares of beneficial interest
outstanding - Note 4) ..................................... $ 12.16
Maximum sales charge, 2.00 % of offering
price (2.04% of net asset value per share) ................ 0.25
Maximum Offering Price Per Share .......................... $ 12.41
See notes to financial statements
statement of operations
INVESTMENT INCOME:
Interest income (net of premium amortized
of $59,830) ............................................... $ 1,472,514
EXPENSES:
Investment advisory fees (Note 3) ......................... 122,944
Administration fees (Note 3) .............................. 30,736
Service fees (Note 3) ..................................... 61,472
Transfer agent fees ....................................... 25,463
Custodian fees ............................................ 26,722
Professional fees ......................................... 9,833
Accounting fees ........................................... 2,647
Trustee fees .............................................. 413
Other expenses ............................................ 2,076
Total Expenses 282,306
Less:
Expenses reimbursed by investment advisor (Note 3) (94,940)
Net Expenses................................. 187,366
Net Investment Income ....................... 1,285,148
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (Note 5)
Net realized (loss) on investments sold ....................... (54,491)
(Decrease) in unrealized appreciation of investments .......... (368,420)
Net Realized and Unrealized
Gain (Loss) on Investments .................. (422,911)
Net Increase in Net Assets Resulting
From Operations ............................$ 862,237
See notes to financial statements
Statement of changes in net assets
Year Ended Year Ended
June 30, 2000 June 30, 1999
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income ........................ $ 1,285,148 $ 1,262,748
Net realized gain (loss) on investments sold . (54,491) (5,095)
Increase (decrease) in unrealized appreciation
of investments ............................... (368,420) (636,305)
Net Increase in Net Assets Resulting
from Operations 862,237 621,348
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares ...................... (1,285,148) (1,262,748)
From realized gains
Class A Shares ...................... 0 (39,569)
FUND SHARE TRANSACTIONS (Note 4):
Class A Shares ...................... 154,526 (158,266)
Net Increase (Decrease) in Net Assets (268,385) (839,235)
NET ASSETS:
Beginning of year ..................... 24,633,022 25,472,257
End of year .......................... $ 24,364,637 $ 24,633,022
See notes to financial statements
Notes to financial statements
Note 1 - Organization
Thornburg New York 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 Florida Intermediate Municipal Fund, Thornburg New Mexico 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 will also invest
primarily in Municipal Obligations within the state of New York, with the
objective of having interest dividends paid to its shareholders exempt from any
individual income taxes. Additionally, the Fund will seek to have dividends paid
to its individual shareholders exempt from New York City income taxes.
Note 2 - Significant Accounting Policies Significant accounting policies of the
Fund are as follows:
Valuation of Investments: In determining net asset value, the Trust 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 Trust 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 value.
Federal Income Taxes: It is the policy of the Trust to comply with the
provisions of the Internal Revenue Code applicable to "regulated investment
companies" and to distribute all of its taxable (if any) and tax exempt income
to its shareholders. Therefore no provision for Federal income tax is required.
Dividends paid by the Fund for the year ended June 30, 2000 represent exempt
interest dividends which are excludable by shareholders from gross income for
Federal income tax purposes.
When-Issued and Delayed Delivery Transactions: The Trust may engage in
when-issued or delayed delivery transactions. To the extent the Trust engages in
such transactions, it will do so for the purpose of acquiring portfolio
securities consistent with the investment objectives and not for the purpose of
investment leverage or to speculate on interest rate changes. At the time the
Trust makes a commitment to purchase a security for the Fund, on a when-issued
basis, it will record the transaction and reflect the value in determining the
Fund's 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 Trust 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 Investment Management,
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 year ended June 30,
2000, 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. The Trust entered into an
Administrative Services Agreement with the Adviser, whereby the Adviser will
perform certain administrative services for the shareholders and for which fees
will be payable at an annual rate of up to 1/8 of 1% of the average daily net
assets. For the year ended June 30, 2000 the Adviser voluntarily reimbursed
certain operating expenses amounting to $94,940.
The Trust has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Fund shares. For the year
ended June 30, 2000, the Distributor earned commissions aggregating $28 from the
sale of Class A shares.
Pursuant to a Service Plan, under Rule 12b-1 of the Investment Company Act of
1940, the Trust may reimburse to the Adviser an amount not to exceed 1/4 of 1%
per annum of the Fund's average net assets for payments made by the Adviser to
securities dealers and other financial institutions to obtain various
shareholder related services. The Adviser may pay out of its own funds
additional expenses for distribution of the Fund's shares. 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 4 - Shares of Beneficial Interest
At June 30, 2000 there were an unlimited number of shares of beneficial interest
authorized, and capital paid-in aggregated $23,337,879. Transactions in shares
of beneficial interest were as follows:
Year Ended Year Ended
June 30, 2000 June 30, 1999
Shares Amount Shares Amount
Class A Shares
Shares sold 193,238 $ 2,353,895 160,953 $ 2,053,855
Shares issued to
shareholders in
reinvestment of
distributions 63,212 768,282 61,983 788,545
Shares repurchased (245,043) (2,967,651) (235,579) (3,000,666)
Net Increase (Decrease) 11,407 $154,526 (12,643) ($ 158,266)
Note 5 - Securities Transactions
For the year ended June 30, 2000 the Fund had purchase and sale transactions
(excluding short-term securities) of $6,973,080 and $4,541,186, respectively.
The cost of investments is the same for financial reporting and Federal income
tax purposes. At June 30, 2000, net unrealized appreciation of investments was
$1,086,344, resulting from $1,119,969 gross unrealized appreciation and $33,625
gross unrealized depreciation.
Accumulated net realized losses from security transactions included in net
assets at June 30, 2000 aggregated $59,586. At June 30, 2000, the Fund had tax
basis capital losses which may be caried over to offset future capital gains.
Such losses expire as follows:
Capital loss carryovers expiring in:
2007 $5,000
2008 10,000
$15,000
At June 30, 2000, the Fund had deferred capital losses occurring subsequent to
October 31, 1999, of $45,000. For tax purposes, such losses will be reflected in
the year ended June 30, 2001.
Financial highlights
Year Ended June 30:
2000 1999 1998(a)
CLASS A SHARES:
Net asset value, beginning of year $ 12.36 $ 12.71 $ 12.50
Income from investment operations:
Net investment income 0.64 0.64 0.52
Net realized and unrealized
gain (loss) on investments (0.20) (0.33) 0.21
Total from investment operations 0.44 0.31 0.73
Less dividends from:
Net investment income (0.64) (0.64) (0.52)
Net realized gains 0.00 (0.02) 0.00
Change in net asset value (0.20) (0.35) 0.21
Net asset value, end of year $ 12.16 $ 12.36 $ 12.71
TOTAL RETURN(b) 3.65% 2.38% 5.92%
RATIOS/SUPPLEMENTAL DATA Ratios to average net assets:
Net investment income 5.23% 5.00% 4.99%(c)
Expenses, after expense reductions 0.76% 0.75% 0.78%(c)
Expenses, before expense reductions 1.15% 1.16% 1.19%(c)
Portfolio turnover rate 19.02% 9.06% 42.26%
Net assets at end of year (000) $ 24,365 $ 24,633 $ 25,472
(a) Sales of Class A shares commenced on September 5, 1997.
(b) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
(c) Annualized.
<TABLE>
Schedule of Investments
Thornburg New York Intermediate Municipal Fund
June 30, 2000
<CAPTION>
CUSIPS: Class A- 885-215-665 NASDAQ Symbols: Class A - THNYX
<S> <C> <C> <C>
700,000 Bethlehem Central School District General Obligation, 7.10% due Aaa/AAA $784,406
11/1/2006(Insured: AMBAC)
215,000 Canastota Central School District General Obligation, 7.10% due Baa2/NR 236,079
6/15/2007
205,000 Canastota Central School District General Obligation, 7.10% due Baa2/NR 226,865
6/15/2008
1,000,000 Dutchess County Industrial Development Agency, 6.05% due 11/1/2019 NR/AA 1,030,610
(KaatsbaanDance Center Project)
550,000 Guam Power Authority Revenue Series A, 6.625% due 10/1/2014 NR/AAA 604,736
880,000 Monroe County Industrial Development Agency Revenue, 6.45% due Aa1/NR 929,782
2/1/2014 (CivicFacility - Depaul Community Facility Project; LOC:
Fleet Bank of New York)
500,000 MTA Service Contract Revenue, 7.00% due 7/1/2004 pre-refunded 7/01/01 Aaa/A 522,440
@ 102
530,000 Nassau Health Care Corporation, 6.00% due 8/1/2011 Aaa/AAA 564,895
460,000 New York City General Obligation, 7.10% due 2/1/2009 pre-refunded A3/A- 483,938
2/01/02 @101.5
500,000 New York City General Obligation, 7.00% due 2/1/2019 pre-refunded NR/A- 525,260
7/01/02 @101.5
1,000,000 New York City General Obligation Series B, 7.20% due 8/15/2008 A3/A- 1,099,750
pre-refunded8/15/04 @ 101
250,000 New York City General Obligation Series B-1, 7.30% due 8/15/2010 Aaa/A- 276,163
pre-refunded8/15/04 @ 101
100,000 New York City Municipal Water Finance Authority, 4.40% due 6/15/2024 VMIG1/A1+ 100,000
put 7/1/00 (daily demand notes)
1,000,000 New York City Municipal Water Finance Authority Series B, 5.75% due Aaa/AAA 1,050,390
6/15/2013
40,000 New York City Unrefunded Balance General Obligation, 7.10% due A3/A- 41,837
2/1/2009
505,000 New York Dormitory Authority, 6.00% due 7/1/2008 (Champlain Valley NR/AAA 535,583
PhysiciansProject; Insured: Connie Lee)
200,000 New York Dormitory Authority Revenue, 7.85% due 2/1/2029 (Park Ridge NR/AAA 202,422
HousingInc. Project; Collateralized: GNMA)
500,000 New York Dormitory Authority Revenue, 7.35% due 8/1/2029 (Jewish NR/AAA 545,840
GeriatricProject; Insured: FHA)
500,000 New York Dormitory Authority Revenue Series B, 6.25% due 5/15/2014 Aaa/AAA 535,670
pre-refunded5/15/04 @ 102
1,000,000 New York Dormitory Authority Revenues, 6.10% due 7/1/2019 (Ryan Aa1/NR 1,024,080
ClintonCommunity Health CenterProject; Insured: Sonyma Mortgage)
345,000 New York Dormitory Authority Revenues Series C, 6.00% due 7/1/2016 Baa1/BBB+ 345,028
400,000 New York Environmental Facilities Corp. PCR St. Water Revolving Fund Aa2/AA- 404,900
Series B,7.50% due 3/15/2011
600,000 New York Environmental Facilities Corp. PCR St. Water Revolving Fund Aa1/AAA 653,544
Series E,6.875% due 6/15/2014 refunded 6/01/04 @ 101.5
400,000 New York Environmental Facilities Corp. PCR St. Water Revolving Fund Aa1/AA+ 429,020
Series E,6.875% due 6/15/2014
1,000,000 New York General Obligation, 9.875% due 11/15/2005 A2/A+ 1,229,470
750,000 New York Housing Finance Agency SVC Contract Obligation Rev. Series A, Baa1/A 760,492
6.375%due 9/15/2015
200,000 New York Local Government Assistance Corporation Series 1992, 6.875% NR/BBB+ 207,800
due3/15/2006
1,000,000 New York Medical Care Facilities Finance Agency Rev. Secured Hospital Baa/AAA 1,051,010
Rev.Series 1991-A, 7.35% due 8/15/2011 pre-refunded 8/15/01 @ 102
500,000 New York Medical Care Facilities Finance Agency Rev. Series A, 6.85% Aaa/AAA 549,310
due2/15/2017 pre-refunded 2/15/05 @ 102 (Brookdale Hospital Medical
Center Project)
500,000 New York Medical Care Facilities Finance Agency Rev. Series A, 6.80% Aaa/AAA 548,330
due2/15/2020 pre-refunded 2/15/05 @ 102 (New York Downtown Hospital
Project)
130,000 New York Medical Care Facilities Finance Agency Revenue, 6.125% due Aa2/AA 133,260
2/15/2014
650,000 New York Medical Care Facilities Finance Agency Revenue Series A, Aaa/AAA 679,386
6.50% due11/1/2019 pre-refunded 11/1/01 @ 102 (Aurelia Osborn Fox
Memorial HospitalProject; Insured: FSA)
1,000,000 New York Mortgage Agency Rev. Series 29-B, 6.45% due 4/1/2015 Aa2/NR 1,024,920
665,000 New York Mortgage Agency Revenue, 5.75% due 10/1/2017 NA/NA 664,355
2,000,000 New York Urban Dev. Corp Correctional Facilities Rev., 0% due 1/1/2008 Baa1/A 1,338,980
355,000 Oneida County Industrial Development Agency, 6.00% due 1/1/2010 NR/AA 371,745
450,000 Oneida County Industrial Development Agency Revenue, 6.10% due Aa3/NR 450,185
6/1/2020(CivicFacility Presbyterian Home Project)
400,000 Onondaga County Industrial Development Civic Facilities Revenue, 7.90% NR/A+ 418,640
due1/1/2017 pre-refunded 1/1/03 @ 103 (LOC: Fleet Trust Company)
300,000 Puerto Rico Industrial Tourist Educational Medical and Environmental NR/BBB- 293,229
ControlFacilities Series A, 5.70% due 8/1/2013 (Polytechnic University
Puerto RicoProject)
100,000 Southampton Village General Obligation Series B, 7.60% due 9/1/2003 Aaa/AAA 108,303
(Insured:MBIA)
500,000 Triborough Bridge and Tunnel Authority Special Obligation Series B, A1/A- 515,135
6.875% due1/1/2015
625,000 Valley Central School District Montgomery, 7.15% due 6/15/2007 Aaa/AAA 706,425
(Insured: AMBAC)
165,000 Watkins Glen Central School District, 7.25% due 6/15/2004 (Insured: Aaa/AAA 179,535
MBIA)
110,000 Waverly General Obligation, 9.05% due 6/15/2004 (Insured: MBIA) (ETM) Aaa/AAA 127,213
TOTAL INVESTMENTS (Cost $23,424,617) $ 24,510,961
<FN>
</FN>
+ Credit ratings are unaudited.
See notes to financial statements.
</TABLE>
REPORT OF Independent ACCOUNTANTS
To the Board of Trustees and Shareholders of
Thornburg New York Intermediate Municipal Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Thornburg New York Intermediate
Municipal Fund ("the Fund") at June 30, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for the year then ended,
in conformity with accounting principles generally accepted in the United
States. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at June 30, 2000 by correspondence with the custodian and brokers,
provides a reasonable basis for the opinion expressed above. The financial
statements for the year ended June 30, 1999, including the financial highlights
for each of the periods ended prior to July 1, 1999, were audited by other
independent accountants whose report dated July 27, 1999 expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
July 28, 2000
CHANGE IN Independent accountants
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles. In connection with its audits for the two most recent fiscal years
and through August 13, 1999, there were no disagreements with McGladrey on any
matter of accounting principle or practices, financial statement disclosure, or
auditing scope or procedure, which disagreements, if not resolved to the
satisfaction of McGladrey would have caused it to make reference to the subject
matter of disagreement in connection with its report. On September 22, 1999, the
Fund, with the approval of its Board of Trustees and its Audit Committee,
engaged PwC as its independent auditor.
Index Comparisons
INTERMEDIATE NEW YORK FUND
Index Comparison
Compares performance of Intermediate New York Fund, the Merrill Lynch Municipal
Bond (7-12 year) Index and the Consumer Price Index, for the period ending June
30, 2000. On June 30, 2000, the weighted average securities ratings of the Index
and the Fund were AA and AA-, respectively, and the weighted average portfolio
maturities of the Index and the Fund were 9.5 years and 8.7 years, respectively.
Past performance of the Index and the Fund may not be indicative of future
performance.
Class A
Average Annual Total Returns (at max. offering price) (periods ending 6.30.00)
One year 1.60%
From inception (9.5.97): 3.47%
