1997 SEMIANNUAL REPORT
IDS
High Yield
Tax-Exempt
Fund
(icon of) shield with basket of apples enclosed
The goal of IDS High Yield
Tax-Exempt Fund, Inc. is to
provide high yield generally
exempt from federal income taxes.
Distributed by American Express Financial Advisors Inc. Member SIPC.
<PAGE>
(icon of) shield with basket of apples enclosed
More yield,
less taxes
Most of the time, making money means paying taxes. But investors still can enjoy
income that is generally free from federal income taxes by taking advantage of
tax-exempt bonds. High Yield Tax-Exempt Fund, the largest national municipal
bond fund, strives to provide the maximumamount of largely tax-free income by
focusing on municipal bonds that pay above-average interest. To reduce the
investment risk, the portfolio holds a large, widelydiversified group of bonds.
The result can be a healthy after-tax return for investors in higher tax
brackets.
Contents
From the president 3
From the portfolio manager 3
The Portfolio's ten largest holdings 5
Financial statements (Fund) 6
Notes to financial statements (Fund) 9
Financial statements (Portfolio) 15
Notes to financial statements (Portfolio) 18
Investments in securities 22
Board members and officers 50
IDS mutual funds 51
<PAGE>
To our shareholders
From the president
If you're an experienced investor, you know that the past two years have
been unusually strong ones in many financial markets. Perhaps just as
important, you also know that history shows that bull
markets don't last forever. Though they're often unpredictable, declines
-- whether they're brief or long-lasting, moderate or substantial -- are
always a possibility.
That fact reinforces the need for investors to periodically review their
long-term goals and examine whether their investment program remains on
track to achieving them. Your quarterly investment statements are one part
of that monitoring process. The other is a meeting with your American
Express financial advisor. That becomes even more important if there's a
major change in your financial situation or in the financial markets.
William R. Pearce
(picture of) William Pearce
William R. Pearce
President of the Fund
From the portfolio manager
IDS High Yield
Tax-Exempt Fund's healthy dividend made up for a decline in net asset
value during the past six months, allowing the Fund to record a positive
total return for the period. From December 1996 through May 1997, the
first half of the Fund's fiscal year, the total return for Class A shares
was 2.0%.
The bond market struggled for much of the past six months. Although the
inflation data had yet to prove threatening, better-than-expected economic
growth caused many investors to think that an inflation run-up was
imminent. The result was that interest rates, without prompting by the
Federal Reserve Board, crept higher over the winter. Bonds, whose prices
move in the opposite direction of interest rates, declined in the process.
By the time the Fed actually got around to raising short-term interest
rates in late March, most of the damage to the bond market had already
been done. The period did end on an up note, though, as ongoing benign
inflation reports sparked a bond rally during the final weeks.
Positive developments
Fortunately for this Fund, municipal bonds were somewhat less affected by
the rising-rate trend than some other sectors of the market. Mitigating
the effect were a good supply/demand situation (demand for municipal bonds
was solid while the supply of bonds was relatively low), the positive
influence of an agreement between Congress and the president to balance
the federal budget, and the waning of talk about tax reform, especially
the possibility of a flat tax.
Also working in the Fund's favor was the employment of a
neutral-to-defensive duration strategy. (Duration, a function of the
average maturity of the Fund's investments, determines how sensitive the
net asset value is to interest-rate changes. The longer the duration, the
more the Fund gains or loses when rates change.)
Consequently, when rates rose during the winter, the Fund fared a bit
better than it would have with a longer duration.
Ongoing volatility
The portfolio was not changed significantly during the six months. As has
been the case for some time, I kept the biggest portion of assets in
investment-grade (high-quality) municipal bonds, and, to augment the
dividend, about 20% in below-investment-grade issues (junk bonds).
While I think the longer-term outlook for the bond market remains
positive, I expect to see more of the volatility that has characterized
the market in recent years. Therefore, I plan to stick with a somewhat
defensive duration strategy, which should help buffer the Fund if, as I
expect, interest rates experience periodic spikes in the months ahead.
Kurt Larson
(picture of) Kurt Larson
Kurt Larson
Portfolio manager
<PAGE>
To our shareholders
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1997 $4.52
Nov. 30, 1996 $4.56
Decrease $0.04
Distributions
Dec. 1, 1996 - May 31, 1997
From income $0.14
From capital gains $ --
Total distributions $0.14
Total return* +2.0%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1997 $4.52
Nov. 30, 1996 $4.56
Decrease $0.04
Distributions
Dec. 1, 1996 - May 31, 1997
From income $0.12
From capital gains $ --
Total distributions $0.12
Total return* +1.7%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1997 $4.52
Nov. 30, 1996 $4.56
Decrease $0.04
Distributions
Dec. 1, 1996 - May 31, 1997
From income $0.14
From capital gains $ --
Total distributions $0.14
Total return* +2.1%**
*The prospectus discusses the effect of sales charges, if any, on the
various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
<PAGE>
The Portfolio's ten largest holdings
Percent Value
(of Portfolio's net assets) (as of May 31, 1997)
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A
6.25% 2021 .96% $56,807,025
New Hampshire Industrial Development Authority
Pollution Control Revenue Bonds
State Public Service Series 1991B
7.50% 2021 .89 52,758,739
Eastern North Carolina Municipal Power Agency
Power System Refunding Revenue Bonds Series 1991A
5.75% 2019 .88 52,513,450
Northern California Power Agency Geothermal #3
Revenue Bonds
5.00% 2009 .80 47,546,855
Utah Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C
5.70% 2017 .78 45,942,960
Puerto Rico Electric Power Agency Revenue Bonds
Series N-O
6.00% 2010 .77 45,929,756
Illinois Development Finance Authority Pollution Control Revenue Bonds
Illinois Power Series 1986A-C A.M.T.
7.625% 2016 .74 43,841,056
Monroe County Michigan Pollution Control Revenue Bonds
Detroit Edison A.M.T.
7.75% 2019 .73 43,370,180
Texas Alliance Airport Authority Special Facility Revenue Bonds American
Airlines Series 1990 A.M.T.
7.50% 2029 .68 40,050,912
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds Series 1990C
6.00% 2016 .67 39,462,632
Note: Certain of the Portfolio's investment income may be subject to the
Alternative Minimum Tax (A.M.T.).
(icon of) pie chart
The ten holdings here make up 7.90% of the Portfolio's net assets
<PAGE>
<TABLE>
Financial statements
Statement of assets and liabilities
IDS High Yield Tax-Exempt Fund, Inc.
May 31, 1997
Assets
<CAPTION>
(Unaudited)
<S> <C>
Investment in Tax-Free High Yield Portfolio (Note 1) $5,922,678,726
--------------
Total assets 5,922,678,726
Liabilities
Disbursements in excess of cash on demand deposit 160
Dividends payable to shareholders 1,829,807
Accrued distribution fee 3,258
Accrued service fee 28,134
Accrued transfer agency fee 6,989
Accrued administrative services fee 4,841
Other accrued expenses 220,366
-------
Total liabilities 2,093,555
---------
Net assets applicable to outstanding capital stock $5,920,585,171
==============
Represented by
Capital stock-- authorized 10,000,000,000 shares of $.01 par value $ 13,109,979
Additional paid-in capital 5,622,843,619
Undistributed net investment income 1,095,205
Accumulated net realized loss (Notes 1 and 4) (82,919,132)
Unrealized appreciation 366,455,500
-----------
Total-- representing net assets applicable to outstanding capital stock $5,920,585,171
==============
Net assets applicable to outstanding shares: Class A $5,760,644,728
Class B $ 159,928,962
Class Y $ 11,481
Net asset value per share of outstanding capital stock: Class A shares 1,275,580,248 $ 4.52
Class B shares 35,415,065 $ 4.52
Class Y shares 2,540 $ 4.52
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of operations
IDS High Yield Tax-Exempt Fund, Inc.
Six months ended May 31, 1997
Investment income
<CAPTION>
(Unaudited)
Income:
<S> <C>
Interest $199,300,667
------------
Expenses (Note 2):
Expenses, including investment management services fee,
allocated from Tax-Free High Yield Portfolio 13,284,241
Distribution fee -- Class B 551,985
Transfer agency fee 1,301,496
Incremental transfer agency fee-- Class B 3,452
Service fee
Class A 4,982,732
Class B 128,000
Class Y 488
Administrative services fees and expenses 901,260
Compensation of board members 9,981
Compensation of officers 800
Postage 202,619
Registration fees 50,608
Reports to shareholders 38,653
Audit fees 5,750
Other 6,427
-----
Total expenses 21,468,492
Earnings credits on cash balances (Note 2) (203,033)
--------
Total net expenses 21,265,459
----------
Investment income -- net 178,035,208
-----------
Realized and unrealized gain (loss) -- net
Net realized gain on security transactions 13,281,282
Net realized loss on financial futures contracts (20,988,669)
-----------
Net realized loss on investments (7,707,387)
Net change in unrealized appreciation or depreciation (53,270,510)
-----------
Net loss on investments (60,977,897)
-----------
Net increase in net assets resulting from operations $117,057,311
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statements of changes in net assets
IDS High Yield Tax Exempt Fund, Inc.
<CAPTION>
Operations and distributions May 31, 1997 Nov. 30, 1996
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income-- net $ 178,035,208 $ 371,842,086
Net realized gain (loss) on investments (7,707,387) 11,886,874
Net change in unrealized appreciation or depreciation (53,270,510) (145,844,561)
----------- ------------
Net increase in net assets resulting from operations 117,057,311 237,884,399
----------- -----------
Distributions to shareholders from:
Net investment income
Class A (173,088,268) (365,006,934)
Class B (3,856,563) (5,770,964)
Class Y (86,708) (1,079,080)
Net realized gain
Class A (91,379) --
Class B (2,174) --
------
Total distributions (177,125,092) (371,856,978)
------------ ------------
Capital share transactions (Note 3)
Proceeds from sales
Class A shares (Note 2) 397,338,599 855,424,526
Class B shares 34,714,790 83,366,808
Class Y shares 9,690,426 121,815,373
Reinvestment of distributions at net asset value
Class A shares 119,489,286 251,992,769
Class B shares 3,145,933 4,761,379
Class Y shares 348 668
Payments for redemptions
Class A shares (698,131,974) (1,290,646,498)
Class B shares (Note 2) (14,919,516) (19,766,686)
Class Y shares (30,282,338) (125,565,667)
----------- ------------
Decrease in net assets from capital share transactions (178,954,446) (118,617,328)
------------ ------------
Total decrease in net assets (239,022,227) (252,589,907)
Net assets at beginning of period 6,159,607,398 6,412,197,305
------------- -------------
Net assets at end of period
(including undistributed net investment income
of $1,095,205 and $91,536) $5,920,585,171 $6,159,607,398
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
IDS High Yield Tax-Exempt Fund, Inc.
(Unaudited as to May 31, 1997)
1
Summary of
significant
accounting policies
The Fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. The
Fund offers Class A, Class B and Class Y shares. Class A shares are sold
with a front-end sales charge. Class B shares may be subject to a
contingent deferred sales charge and such shares automatically convert to
Class A after eight years. Class Y shares have no sales charge and are
offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and
other rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class
specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its relative
net assets.
Investment in Tax-Free High Yield Portfolio
Effective May 13, 1996, the Fund began investing all of its assets in
Tax-Free High Yield Portfolio (the Portfolio), a series of Tax-Free Income
Trust (the Trust), an open-end investment company that has the same
objectives as the Fund. This was accomplished by transferring the Fund's
assets to the Portfolio in return for a proportionate ownership interest
in the Portfolio. The Portfolio invests primarily in medium- and
lower-quality bonds and notes issued by or on behalf of state and local
governmental units whose interest generally is exempt from federal income
tax.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at value that is equal to
the Fund's proportionate ownership interest in the net assets of the
Portfolio. The percentage of the Portfolio owned by the Fund at May 31,
1997 was 99.99%. Valuation of securities held by the Portfolio is
discussed in Note 1 of the Portfolio's "Notes to financial statements,"
which are included elsewhere in this report.
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
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
Federal taxes
Since the Fund's policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to the shareholders, no provision for
income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) allocated
from the Portfolio may differ for financial statement and tax purposes
primarily because of the deferral of losses on certain futures contracts
and losses deferred due to "wash sale" transactions. The character of
distributions made during the year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to the timing of dividend distributions,
the fiscal year in which amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded by the Fund.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly,
are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with
the last income dividend of the calendar year.
2
Expenses and
sales charges
In addition to the expenses allocated from the Portfolio, the Fund accrues
its own expenses as follows:
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for providing administrative services
and serving as transfer agent.
Under its Administrative Services Agreement, the Fund pays AEFC a fee for
administration and accounting services at a percentage of the Fund's
average daily net assets in reducing percentages from 0.04% to 0.02%
annually. Additional administrative service expenses paid by the Fund are
office expenses, consultants' fees and compensation of officers and
employees. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board
members, corporate filing fees, organizational expenses, and any other
expenses properly payable by the Fund approved by the board.
Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder
account for this service as follows:
o Class A $15.50
o Class B $16.50
o Class Y $15.50
Also effective March 20, 1995, the Fund entered into agreements with
American Express Financial Advisors Inc. for distribution and shareholder
servicing-related services. Under a Plan and Agreement of Distribution,
the Fund pays a distribution fee at an annual rate of 0.75% of the Fund's
average daily net assets attributable to Class B shares for
distribution-related services.
Under a Shareholder Service Agreement, the Fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents.
The fee is calculated at a rate of 0.175% of the Fund's average daily net
assets attributable to Class A and Class B shares and 0.10% of the Fund's
average daily net assets attributable to Class Y shares.
Sales charges received by American Express Financial Advisors for
distributing Fund shares were $4,128,652 for Class A and $118,651 for
Class B for the six months ended May 31, 1997.
During the six months ended May 31, 1997, the Fund's transfer agency fees
were reduced by $203,033 as a result of earnings credits from overnight
cash balances.
3
Capital share
transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended May 31, 1997
Class A Class B Class Y
Sold 88,108,049 7,701,475 2,172,208
Issued for reinvested 26,537,613 698,938 77
distributions
Redeemed (154,815,076) (3,311,481) (6,679,792)
------------ ---------- ----------
Net increase (decrease) (40,169,414) 5,088,932 (4,507,507)
=========== ========= ==========
Year ended Nov. 30, 1996
Class A Class B Class Y
Sold 188,524,098 18,316,021 26,775,493
Issued for reinvested 55,519,480 1,051,408 148
distributions
Redeemed (284,669,153) (4,377,692) (27,609,256)
------------ ---------- -----------
Net increase (decrease) (40,625,575) 14,989,737 (833,615)
=========== ========== ========
4
Capital loss
carryover
For federal income tax purposes, the Fund has a capital loss carryover of
$39,549,943 at Nov. 30, 1996 that will expire in 2002 if not offset by
subsequent capital gains. It is unlikely the board will authorize a
distribution of any net realized capital gains until the available capital
loss carryover has been offset or expires.
<PAGE>
<TABLE>
5
Financial
highlights
The tables below show certain important financial information for evaluating the
Fund's results.
Fiscal period ended Nov. 30,
Per share income and capital changesa
Class A
<CAPTION>
1997b 1996 1995 1994 1993 1992 1991c 1990 1989 1988 1987
Net asset value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
beginning of period $4.56 $4.66 $4.18 $4.76 $4.65 $4.55 $4.44 $4.57 $4.42 $4.34 $4.69
Income from investment operations:
Net investment income .14 .27 .28 .30 .30 .31 .30 .34 .34 .34 .35
Net gains (losses) (.04) (.10) .48 (.56) .13 .12 .11 (.12) .15 .08 (.34)
(both realized
and unrealized)
Total from investment .10 .17 .76 (.26) .43 .43 .41 .22 .49 .42 .01
operations
Less distributions:
Dividends from net (.14) (.27) (.28) (.30) (.30) (.32) (.30) (.34) (.34) (.34) (.35)
investment income
Distributions from -- -- -- (.02) (.02) (.01) -- (.01) -- -- (.01)
realized gains
Total distributions (.14) (.27) (.28) (.32) (.32) (.33) (.30) (.35) (.34) (.34) (.36)
Net asset value, $4.52 $4.56 $4.66 $4.18 $4.76 $4.65 $4.55 $4.44 $4.57 $4.42 $4.34
end of period
Ratios/supplemental data
Class A
1997b 1996 1995 1994 1993 1992 1991c 1990 1989 1988 1987
Net assets, end of $5,761 $6,001 $6,316 $5,769 $6,733 $6,036 $5,291 $4,750 $4,594 $4,070 $3,740
period (in millions)
Ratio of expenses to .70%e .70% .68% .59% .61% .62% .60%e .60% .60% .59% .60%
average daily net assetsd
Ratio of net income to 6.02%e 6.02% 6.31% 6.50% 6.32% 6.86% 7.26%e 7.62% 7.50% 7.66% 7.80%
average daily net assets
Portfolio turnover rate 2% 9% 14% 17% 10% 12% 10% 22% 7% 13% 15%
(excluding short-term
securities) for the
underlying Portfolio
Total returnf 2.0% 4.0% 18.6% (5.8%) 9.6% 9.7% 10.1%e 5.5% 11.7% 11.2% (1.8%)
aFor a share outstanding throughout the period. Rounded to the nearest cent.
bSix months ended May 31, 1997 (Unaudited).
cThe Fund's fiscal year-end was changed from Dec. 31 to Nov. 30, effective 1991.
dEffective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
eAdjusted to an annual basis.
fTotal return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
<TABLE>
Fiscal period ended Nov. 30,
Per share income and capital changesa
Class B Class Y
<CAPTION>
1997b 1996 1995c 1997b 1996 1995c
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $4.56 $4.66 $4.46 $4.56 $4.66 $4.46
beginning of period
Income from investment operations:
Net investment income .12 .24 .19 .14 .28 .22
Net gains (losses) (.04) (.10) .20 (.04) (.10) .20
(both realized
and unrealized)
Total from investment .08 .14 .39 .10 .18 .42
operations
Less distributions:
Dividends from net (.12) (.24) (.19) (.14) (.28) (.22)
investment income
Net asset value, $4.52 $4.56 $4.66 $4.52 $4.56 $4.66
end of period
Ratios/supplemental data
Class B Class Y
1997b 1996 1995c 1997b 1996 1995c
Net assets, end of $160 $138 $71 $-- $21 $25
period (in millions)
Ratio of expenses to 1.45e 1.46% 1.48%e .54%e .53% .54%e
average daily net assetsd
Ratio of net income to 5.27%e 5.29% 5.36%e 6.02%e 6.15% 6.32%e
average daily net assets
Portfolio turnover rate 2% 9% 14% 2% 9% 14%
(excluding short-term
securities) for the
underlying Portfolio
Total returnf 1.7% 3.2% 8.9% 2.1% 4.2% 9.5%
aFor a share outstanding throughout the period. Rounded to the nearest cent.
bSix months ended May 31, 1997 (Unaudited).
cInception date was March 20, 1995.
dEffective fiscal year 1996, expense ratio is based on total expenses, of the
Fund before reduction of earnings credits on cash balances.
eAdjusted to an annual basis.
fTotal return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statement of assets and liabilities
Tax-Free High Yield Portfolio
May 31, 1997
Assets
<CAPTION>
(Unaudited)
Investments in securities, at value (Note 1)
<S> <C>
(identified cost $5,431,353,895) $5,802,918,227
Accrued interest receivable 116,968,522
Receivable for investment securities sold 6,138,420
---------
Total assets 5,926,025,169
-------------
Liabilities
Disbursements in excess of cash on demand deposit 2,033,676
Payable for investment securities purchased 468,751
Accrued investment management services fee 70,865
Other accrued expenses 106,704
-------
Total liabilities 2,679,996
---------
Net assets $5,923,345,173
==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statement of operations
Tax-Free High Yield Portfolio
Six months ended May 31, 1997
Investment income
<CAPTION>
(Unaudited)
Income:
<S> <C>
Interest $199,325,502
Expenses (Note 2):
Investment management services fee 13,086,054
Compensation of board members 21,750
Compensation of officers 27
Custodian fees 127,597
Audit fees 17,500
Administrative services fees and expenses 41,439
Other 10,301
------
Total expenses 13,304,668
Earnings credits on cash balances (Note 2) (19,006)
-------
Total net expenses 13,285,662
----------
Investment income -- net 186,039,840
-----------
Realized and unrealized gain (loss) -- net
Net realized gain on security transactions (Note 3) 13,281,582
Net realized loss on financial futures contracts (20,990,687)
-----------
Net realized loss on investments (7,709,105)
Net change in unrealized appreciation or depreciation (53,274,950)
-----------
Net loss on investments (60,984,055)
-----------
Net increase in net assets resulting from operations $125,055,785
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of changes in net assets
Tax-Free High Yield Portfolio
Operations and distributions
<CAPTION>
May 31, 1997 For the period from
Six months ended May 13, 1996*
(Unaudited) to Nov. 30, 1996
<S> <C> <C>
Investment income-- net $ 186,039,840 $ 214,101,176
Net realized gain (loss) on investments (7,709,105) 2,001,114
Net change in unrealized appreciation or depreciation (53,274,950) 142,421,758
----------- -----------
Net increase in net assets resulting from operations 125,055,785 358,524,048
Net contributions (withdrawals) (365,502,767) 5,805,168,107
------------ -------------
Total increase (decrease) in net assets (240,446,982) 6,163,692,155
Net assets at beginning of period (Note 1) 6,163,792,155 100,000
------------- -------
Net assets at end of period $5,923,345,173 $6,163,792,155
============== ==============
*Commencement of operations
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
Tax-Free High Yield Portfolio
(Unaudited as to May 31, 1997)
1
Summary of
significant
accounting policies
Tax-Free High Yield Portfolio (the Portfolio) is a series of Tax-Free
Income Trust (the Trust) and is registered under the Investment Company
Act of 1940 (as amended) as a diversified, open-end management investment
company. Tax-Free High Yield Portfolio invests primarily in medium- and
lower-quality bonds and notes issued by or on behalf of state and local
governmental units whose interest generally is exempt from federal income
tax. The Declaration of Trust permits the Trustees to issue
non-transferable interests in the Portfolio. On April 15, 1996, American
Express Financial Corporation (AEFC) contributed $100,000 to the
Portfolio. Operations did not formally commence until May 13, 1996, at
which time, an existing fund transferred its assets to the Portfolio in
return for an ownership percentage of the Portfolio.
Significant accounting polices followed by the Portfolio are summarized
below:
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
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
Valuation of securities
All securities are valued at the close of each business day. Securities
for which market quotations are not readily available, including illiquid
securities, are valued at fair value according to methods selected in good
faith by the board. Determination of fair value involves, among other
things, reference to market indexes, matrixes and data from independent
brokers. Short-term securities maturing in more than 60 days from the
valuation date are valued at the market price or approximate market value
based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
Option transactions
In order to produce incremental earnings, protect gains and facilitate
buying and selling of securities for investment purposes, the Portfolio
may buy and sell put and call options and write covered call options on
portfolio securities and may write cash-secured put options. The risk in
writing a call option is that the Portfolio gives up the opportunity of
profit if the market price of the security increases. The risk in writing
a put option is that the Portfolio may incur a loss if the market price of
the security decreases and the option is exercised. The risk in buying an
option is that the Portfolio pays a premium whether or not the option is
exercised. The Portfolio also has the additional risk of not being able to
enter into a closing transaction if a liquid secondary market does not
exist. The Portfolio may write over-the-counter options where the
completion of the obligation is dependent upon the credit standing of the
other party.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The
Portfolio will realize a gain or loss upon expiration or closing of the
option transaction. When options on debt securities or futures are
exercised, the Portfolio will realize a gain or loss. When other options
are exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a
purchased put or call option is adjusted by the amount of premium received
or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the market,
the Portfolio may buy and sell financial futures contracts. Risks of
entering into futures contracts and related options include the
possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the
value of the underlying securities.
Upon entering into a futures contract, the Portfolio is required to
deposit either cash or securities in an amount (initial margin) equal to a
certain percentage of the contract value. Subsequent payments (variation
margin) are made or received by the Portfolio each day. The variation
margin payments are equal to the daily changes in the contract value and
are recorded as unrealized gains and losses. The Portfolio recognizes a
realized gain or loss when the contract is closed or expires.
Illiquid securities
Investments in securities included issues that are illiquid. The Portfolio
currently limits investments in illiquid securities to 10% of the net
assets, at market value, at the time of purchase. The aggregate value of
such securities at May 31, 1997 was $1,523,364 representing 0.03% of the
net assets. Pursuant to guidelines adopted by the board, certain
unregistered securities are determined to be liquid and are not included
within the 10% limitation specified above.
Federal taxes
For federal income tax purposes the Portfolio qualifies as a partnership
and each investor in the Portfolio is treated as the owner of its
proportionate share of the net assets, income, expenses and realized and
unrealized gains and losses of the Portfolio. Accordingly, as a
"pass-through" entity, the Portfolio does not pay any income dividends or
capital gain distributions.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including level-yield amortization of
premium and discount, is accrued daily.
2
Fees and
expenses
The Trust, on behalf of the Portfolio, has entered into an Investment
Management Services Agreement with AEFC for managing its portfolio. Under
this agreement, AEFC determines which securities will be purchased, held
or sold. The management fee is a percentage of the Portfolio's average
daily net assets in reducing percentages from 0.49% to 0.36% annually.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain
legal fees, fidelity bond premiums, registration fees for units, office
expenses, consultants' fees, compensation of trustees, corporate filing
fees, and any other expenses properly payable by the Trust or Portfolio,
approved by the board.
During the six months ended May 31, 1997, the Portfolio's custodian fees
were reduced by $19,006 as a result of earnings credits from overnight
cash balances.
Pursuant to a Placement Agency Agreement, American Express Financial
Advisors Inc. acts as placement agent of the units of the Trust.
3
Securities
transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $90,653,559 and $443,552,348,
respectively, for the six months ended May 31, 1997. For the same period,
the portfolio turnover rate was 2%. Realized gains and losses are
determined on an identified cost basis.
4
Interest rate
futures contracts
At May 31, 1997, investments in securities included securities valued at
$41,624,370 that were pledged as collateral to cover initial margin
deposits on 1,500 sale contracts. The market value of the open sale
contracts at May 31, 1997 was $175,500,000 with a net unrealized loss of
$5,095,125. See Summary of significant accounting policies.
<PAGE>
<TABLE>
Investments in securities (Percentages represent
value of investments
Tax-Free High Yield Portfolio compared to net assets)
May 31, 1997 (Unaudited)
Municipal bonds (94.6%)
<CAPTION>
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,j) rate year amount
Alabama (0.5%)
Baldwin County Eastern Shore Health Care Authority
<S> <C> <C> <C> <C>
Hospital Revenue Bonds Thomas Hospital Series 1991 8.50 % 2016 $ 4,765,000 $ 5,471,268
Camden Industrial Development Board Solid Waste Disposal
Revenue Bonds MacMillan Bloedel Series 1991A A.M.T. 7.75 2019 8,500,000 9,139,880
Marengo County Limited Obligation Capital Outlay
Warrants Series 1988 8.50 2018 3,000,000 3,236,310
Mobile Industrial Development Board Solid Waste
Refunding Revenue Bonds Mobile Energy Services 6.95 2020 11,250,000 11,972,475
Mobile Medical Clinic Board Psychiatric Revenue Bonds
Charter Medical 11.50 2008 2,740,000 2,765,811
Total 32,585,744
Alaska (0.2%)
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.05 2004 7,000,000(f) 4,882,850
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.15 2005 7,000,000(f) 4,611,670
Total 9,494,520
Arizona (0.9%)
Chandler Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 2,830,000 2,930,748
Maricopa County Hospital System Revenue Bonds
Samaritan Health Services Series 1981 12.00 2008 4,390,000 4,590,162
Maricopa County Industrial Development Authority
Multi-family Housing Revenue Bonds Series B 7.375 2026 2,335,000 2,341,421
Maricopa County Industrial Development Authority
Senior Living Facilities Revenue Bonds Series 1997A 7.875 2027 15,000,000 15,049,050
Maricopa County Pollution Control Refunding Revenue Bonds
Palo Verde Public Service 6.375 2023 3,500,000 3,538,535
Phoenix Civic Improvement Waste Water System
Lease Refunding Revenue Bonds 5.00 2018 5,000,000 4,567,700
Phoenix Industrial Development Authority
Refunding Revenue Bonds Christian Care Apartments 6.50 2026 9,525,000 9,665,589
Pima County Industrial Development Authority
Revenue Bonds LaPosada Park Centre Series 1996A 7.00 2027 5,750,000 5,810,030
Scottsdale Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 3,110,000 3,220,716
Total 51,713,951
Arkansas (0.1%)
Pope County Solid Waste Disposal Revenue Bonds
Arkansas Power & Light Series 1991 A.M.T. 8.00 2021 3,250,000 3,539,478
California (7.2%)
ABAG Financial Authority for Nonprofit Corporations
International Schools Certificate of Participation
Series 1996 7.375 2026 8,000,000 7,650,640
Community Development Authority Health Facilities
Unihealth America Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 7.11 2011 22,400,000(d) 23,324,000
East Bay Municipal Utility District Water Revenue Bonds
Series 1993 Inverse Floater (MBIA Insured) 6.47 2008 15,500,000(d) 15,190,000
Foothill Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 5.00 2035 41,070,000 34,645,831
Fresno Health Facility Refunding Revenue Bonds
Holy Cross Health System (MBIA Insured) 5.625 2013 3,000,000 3,013,050
Irwindale Redevelopment Agency Subordinate Lein
Tax Allocation Bonds 7.05 2026 5,750,000 6,104,775
Los Angeles County Certificate of Participation 6.71 2015 20,000,000 20,594,200
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
Delta Airlines 6.35 2025 13,000,000 13,356,720
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
United Airlines Series 1984 8.80 2021 11,650,000 13,034,719
Los Angeles Water & Power Electric Plant
Refunding Revenue Bonds Series 1992 6.375 2020 10,000,000 10,497,600
Modesto Santa Clara Redding Public Power Bonds
San Juan Series C (AMBAC Insured) 5.50 2021 4,500,000 4,342,680
Northern California Power Agency Geothermal #3
Revenue Bonds 5.00 2009 49,635,000 47,546,855
Novato Community Facility District #1 Vintage Oaks
Public Improvement Special Tax Refunding Bonds 7.25 2021 5,000,000 5,265,950
Oceanside Certificate of Participation Refunding Bonds
Oceanside Civic Center (MBIA Insured) 5.25 2019 7,000,000 6,563,970
Orange County Special Tax Community Facilities Bonds
Aliso Veijo District 88-1 Series 1992A 7.35 2018 6,000,000 6,874,680
Pleasanton Joint Powers Financing Authority Reassessment
Revenue Bonds Series 1993A 6.15 2012 4,680,000 4,832,194
Regional Airports Improvement Facilities Sublease
Revenue Bonds Continental Airlines Los Angeles
International Airport Series 1988 A.M.T. 9.00 2008-17 12,400,000 13,063,220
Sacramento Cogeneration Authority Revenue Bonds
Proctor & Gamble Series 1995 6.50 2014-21 11,800,000 12,270,108
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.37 2005 15,800,000(d) 16,570,250
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.57 2006 16,400,000(d) 17,199,500
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (MBIA Insured) 7.02 2015 15,000,000(d) 14,475,000
Sacramento Power Authority Cogeneration Revenue Bonds
Campbell Soup Series 1995 6.00 2022 25,000,000 25,159,250
San Joaquin Hills Orange County Transportation
Corridor Agency Senior Lien Toll Road Revenue Bonds 6.75 2032 14,785,000 15,552,933
San Jose Redevelopment Agency Merged Area Tax
Allocation Bonds Series 1993 Inverse Floater
(MBIA Insured) 6.97 2014 33,600,000(d) 31,752,000
San Marcos Public Facility Authority
Refunding Revenue Bonds
Civic Center Public Improvement Series A 6.20 2022 12,300,000 12,374,169
Sierra Unified School District Fresno County
Certificate of Participation Capital Financing
Refunding Bonds Series 1993 6.125 2018 6,470,000 6,427,945
Southern California Public Power Authority
Power Revenue Bonds Palo Verde
Series 1993 Inverse Floater (FGIC Insured) 6.72 2017 20,000,000(d) 17,800,000
South Tahoe Joint Power Financing Authority
Refunding Revenue Bonds South Tahoe Area #1
Series 1995B 6.00 2028 9,900,000 9,775,062
Ukiah Unified School District Mendocino County
Certificate of Participation Series 1993 6.00 2010 5,000,000 5,058,000
University of California Refunding Revenue Bonds
Multiple Purpose Project (AMBAC Insured) 5.25 2016 6,000,000 5,679,600
Total 425,994,901
Colorado (6.4%)
Arapahoe County Capital Improvement Trust Fund
E-470 Highway Revenue Bonds 7.00 2026 22,000,000 23,591,920
Arapahoe County Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 4,000,000 4,476,000
Aurora Centretech Metropolitan District
Arapahoe County Series 1987B 6.00 2023 5,699,785 4,237,163
Bowles Metropolitan District General Obligation Bonds
Series 1995 7.75 2015 16,000,000 16,489,280
Briargate Public Building Authority
Landowner Assessment Lien Bonds Series 1985A 10.25 2000 5,000,000(e) 4,250,000
Castle Rock Ranch Public Facility Improvement
Revenue Bonds Series 1996 6.25 2017 10,000,000 10,723,100
Colorado Health Facility Authority Hospital Improvement
Refunding Revenue Bonds
Parkview Episcopal Medical Center Series 1995 6.125 2025 7,000,000 6,941,550
Colorado Health Facility Authority Revenue Bonds
Escrowed to Maturity Liberty Heights Zero Coupon 7.50 2022 81,465,000(f) 14,321,547
Colorado Springs Hospital Revenue Bonds
Memorial Hospital Series 1990 7.875 2010 5,000,000 5,532,850
Colorado Springs Stetson Hills Public Building Authority
Landowner Assessment Lien Bonds Series 1988A 9.75 2008 2,869,110(e) 86,073
Colorado Springs Utilities System Refunding Revenue Bonds
Series 1991C 6.50 2015 24,895,000 26,748,931
Colorado Springs Utilities System Refunding Revenue Bonds
Series 1991C 6.75 2021 30,000,000 32,916,985
Colorado Springs Utilities System
Pre-Refunded Revenue Bonds Series 1991C 6.50 2015 1,505,000 1,645,537
Denver City & County Airport Systems Revenue Bonds
Series 1991A A.M.T. 8.75 2023 10,000,000(h) 11,681,600
Denver City & County Airport Systems Revenue Bonds
Series 1991D A.M.T. 7.75 2021 8,650,000 9,549,427
Denver City & County Airport Systems Revenue Bonds
Series 1992A 7.25 2025 20,975,000 23,914,227
Denver City & County Airport Systems Revenue Bonds
Series 1992B A.M.T. 7.25 2023 20,500,000 22,153,120
Denver City & County Airport Systems Revenue Bonds
Series 1994A 7.50 2012 5,000,000 5,760,300
Denver City & County Airport Systems Revenue Bonds
Series 1994A A.M.T. 7.50 2023 19,340,000 21,472,622
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1991 8.00 2006 1,385,000 1,699,797
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1995B 11.00 2006 730,000 708,319
Denver Special Facility Airport Revenue Bonds
United Air Lines Series A A.M.T. 6.875 2032 25,400,000 26,593,292
Denver Urban Renewal Authority Tax Increment
Revenue Bonds Downtown Denver Redevelopment
Adams Mark Hotel Series 1989 A.M.T. 8.00 2015-17 20,000,000 20,146,000
Denver Urban Renewal Authority Tax Increment
Revenue Bonds South Broadway Montgomery Ward
Urban Renewal Series 1992 8.50 2016 14,015,000 15,029,406
Denver West Metropolitan District
General Obligation Bonds Series 1996 6.50 2016 2,560,000 2,614,681
Denver West Metropolitan District General Obligation
Refunding Improvement Bonds Series 1995 7.00 2014 4,230,000 4,510,914
Hotchkiss Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 1,500,000 1,690,965
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.25 2011 2,680,000 2,821,745
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.30 2018 2,430,000 2,541,707
Lowry Economic Redevelopment Authority
Revenue Bonds Series 1996 7.50 2010 19,000,000 18,945,850
Northern Colorado Water District Revenue Bonds Series D 6.00 2015 4,000,000(h) 4,006,360
Saddle Rock Metropolitan District Limited Tax
General Obligation Bonds Series 1997 7.63 2016 5,720,000 5,742,480
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 7.50 1998 2,500,000 2,570,525
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.25 2013 2,580,000 2,813,309
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.50 2013 12,000,000 13,147,560
Thornton Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 4,500,000 4,500,000
Westminster Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 3,500,000 3,916,500
Total 380,491,642
District of Columbia (0.6%)
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.00 2010 27,875,000 28,874,319
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.10 2011 7,580,000 7,855,988
Housing Finance Agency Multiple Family Mortgage
Revenue Bonds Temple Courts Section 8
Series 1985 (FHA Insured) 12.00 2022 1,315,000 1,555,921
Total 38,286,228
Florida (3.8%)
Arbor Greene Community Development District
Special Assesment Revenue Bonds Series 1996 7.60 2018 5,000,000 5,047,650
Broward County Airport System Revenue Bonds
Series 1989B A.M.T. 7.625 2013 15,000,000 15,939,300
Charlotte County Development Authority 1st Mortgage
Refunding Revenue Bonds
Royal Palm Retirement Centre Series 1991 9.50 2014 4,050,000 4,305,514
Crossings at Fleming Island Community Development District
Special Assessment Bonds Series 1995 8.25 2016 10,200,000 10,884,012
Crossings at Fleming Island Community Development
District Utility Revenue Bonds Series 1994 7.375 2019 13,800,000 14,014,038
Department of Transportation Turnpike Revenue Bonds
Series 1991A (AMBAC Insured) 6.25 2020 20,000,000 20,614,800
Gateway Centre Development District Pinellas County
Special Assessment Revenue Bonds Series 1988 9.125 2009 1,640,000 1,737,678
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A 7.00 2014 24,000,000 25,967,773
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A (MBIA Insured) 6.50 2016 24,760,000 26,718,268
Jacksonville Electric Authority St. John's River Power
Park System Revenue Bonds Series 1989 6.00 2015 10,300,000 10,424,012
Jacksonville Health Facilities Authority Hospital
Refunding Revenue Bonds Riverside Hospital
Series 1989 7.625 2013 1,600,000 1,742,512
Lakewood Ranch Community Development District #1
Special Assessment Bonds Series 1994 8.25 2014 6,125,000 6,434,251
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988A A.M.T. 9.625 2018 5,545,000 6,026,861
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988B A.M.T. 9.50 2020 3,945,000 4,281,509
Miami Health Facility Authorization Revenue Bonds
Inverse Floater (AMBAC Insured) 5.97 2015 3,500,000(d) 3,045,000
Palm Beach County Health Facilities Authority Hospital
Revenue Bonds Good Samaritan Health Series 1993 6.30 2022 4,250,000 4,397,007
Polk County Industrial Development Authority 1st Mortgage
Refunding Revenue Bonds Spring Haven II 8.75 2014 6,270,000 6,708,336
Port Everglades Port Authority Revenue Bonds Junior Lien 5.00 2016 18,635,000 17,305,579
Riverwood Community Development District Charlotte County
Special Assessment Revenue Bonds Series 1992A-B 8.50 2012 5,945,000 6,325,361
Sumter County Village Community Development District #1
Capital Improvement Revenue Bonds Series 1992 8.40 2012 1,690,000 1,776,545
Sunrise Utility System Refunding & Improvement
Revenue Bonds 10.75 2018 5,000,000 5,940,350
Village Center Community Development District #2
Lake County Recreational Revenue Bonds
Anticipation Notes Series 1996 6.50 2000 6,365,000 6,380,913
Village Community Development District #2
Special Assessment District Revenue Bonds Series 1996 7.625 2017 6,055,000 6,183,003
Volusia County Industrial Development Authority
1st Mortgage Refunding Revenue Bonds Series 1996 7.625 2026 10,925,000 10,997,542
Total 223,197,814
Georgia (1.8%)
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 6.25 2019 8,685,000 8,710,794
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 7.90 2018 13,500,000 14,513,310
Colquitt County Development Authority Revenue Bonds
Escrowed to Maturity Zero Coupon 6.87 2021 46,350,000(f) 9,198,621
Effingham County Pollution Control Revenue Bonds
Fort Howard Series 1988 7.90 2005 19,850,000 20,686,876
Fulco Hospital Authority Revenue Anticipation Certificate
Georgia Baptist Health Care Systems Series 1992A 6.375 2022 20,300,000 20,657,686
Municipal Electric Authority Power Refunding Bonds
Series 1989R 6.00 2014 9,130,000 9,160,859
Municipal Electric Authority Power Revenue Bonds
Series L 5.00 2020 1,150,000 1,038,945
Rockdale County Development Authority Solid Waste
Disposal Revenue Bonds Visy Paper Series 1993 A.M.T. 7.50 2026 10,000,000 10,386,300
Savannah Georgia Economic Development Authority
Revenue Bonds Escrowed to Maturity Zero Coupon 6.87 2021 64,220,000(f) 12,745,101
Total 107,098,492
Hawaii (0.3%)
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 6.42 2006 10,000,000(d) 10,300,000
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 6.72 2008 10,000,000(d) 10,362,500
Total 20,662,500
Illinois (8.5%)
Bradley Kankakee County Tax Increment
Refunding Revenue Bonds Series 1993 8.40 2012 5,800,000 6,381,392
Broadview Cook County Senior Lien Tax Increment
Revenue Bonds Series 1993 8.25 2013 12,000,000 13,133,760
Chicago General Obligation Refunding Bonds
Series 1995A (AMBAC Insured) 5.50 2018 20,000,000 19,612,800
Chicago General Obligation Bonds Series 1991
(AMBAC Insured) 6.00 2016 6,170,000 6,270,077
Chicago General Obligation Bonds Series 1994A
(AMBAC Insured) 5.875 2022 17,850,000 17,892,305
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 6.00 2018 29,000,000 29,101,790
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 7.50 2016 21,000,000 22,664,460
Chicago O'Hare International Airport General Airport
Refunding Revenue Bonds Series 1993A 5.00 2016 14,450,000 13,267,990
Chicago O'Hare International Airport
Special Revenue Facility Bonds Delta Airlines
Series 1992 6.45 2018 10,000,000 10,183,200
Chicago O'Hare International Airport
Special Revenue Facility Bonds United Airlines
Series C 8.20 2018 22,780,000 24,517,431
Chicago O'Hare International Airport Terminal
Special Revenue Bonds A.M.T. 7.50 2017 32,250,000 34,683,585
Chicago O'Hare International Airport Terminal
Special Revenue Bonds (FGIC Insured) A.M.T. 7.875 2025 17,750,000 19,191,300
Chicago Ridge Special Service Area #1 Unlimited Ad Valorem
Tax Bonds Series 1990 9.00 2008 2,700,000 2,898,153
Chicago Wastewater Transmission Revenue Bonds
Series 1994 (MBIA Insured) 6.375 2024 22,500,000 23,693,400
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds Mark IV Series 1992 9.75 2012 1,740,000 2,118,537
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds 7.00 2006 1,175,000 1,183,930
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds 7.375 2012 1,700,000 1,717,867
Development Finance Authority Lifecare Revenue Bonds
Presbyterian Homes Series 1996B 6.40 2031 6,700,000 6,971,886
Development Finance Authority Pollution Control
Refunding Revenue Bonds Central Illinois Public Service
Series 1993B-2 5.90 2028 2,500,000 2,515,025
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison
Series 1994 5.70 2009 2,000,000 2,063,380
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison
Series 1994 5.85 2014 4,500,000 4,582,215
Development Finance Authority Pollution Control
Refunding Revenue Bonds Illinois Power Series 1991A 7.375 2021 19,250,000 21,501,287
Development Finance Authority Pollution Control
Revenue Bonds Illinois Power Series 1986A-C A.M.T. 7.625 2016 42,560,000 43,841,056
Development Finance Authority Retirement Housing
Revenue Bonds Escrowed to Maturity Zero Coupon 7.75 2020 68,000,000(f) 13,814,880
Development Finance Authority Solid Waste Disposal Facility
Revenue Bonds Ford Heights Waste Tire to Energy
Series 1994 A.M.T. 7.875 2011 32,000,000(e) 11,200,000
DuPage County Tax Increment Revenue Bonds
Series 1997 7.875 2017 4,690,000 4,791,304
Educational Facilities Authority Refunding Revenue Bonds
Loyola University of Chicago Series 1993 Inverse Floater
(FGIC Insured) 7.72 2012 11,000,000(d) 11,013,750
Educational Facilities Authority Refunding Revenue Bonds
Lewis University Series 1996 6.125 2026 8,780,000 8,782,634
Granite City Madison County Hospital
Refunding Revenue Bonds St. Elizabeth Medical Center
Series 1989A 8.125 2008 3,315,000 3,478,264
Hanover Park Cook & DuPage Counties 1st Mortgage
Revenue Bonds Windsor Park Manor Series 1989 9.50 2014 7,000,000 7,471,380
Health Facilities Authority Refunding Revenue Bonds
Edwards Hospital Series 1993A 6.00 2019 6,350,000 6,341,681
Health Facilities Authority Refunding Revenue Bonds
Morris Hospital 6.125 2023 3,005,000 2,933,120
Health Facilities Authority Refunding Revenue Bonds
Masonic Medical Center Series 1993 5.50 2019 2,000,000 1,889,400
Health Facilities Authority Refunding Revenue Bonds
Peoria Methodist Medical Center Series 1985A 8.00 2014 4,000,000 4,008,200
Health Facilities Authority Refunding Revenue Bonds
University of Chicago Series 1993 Inverse Floater
(MBIA Insured) 7.22 2014 10,000,000(d) 9,900,000
Health Facilities Authority Revenue Bonds
Sarah Bush Lincoln Health Center
Series 1996B 5.75 2022 2,915,000 2,799,683
Health Facility Authority Revenue Bonds
Delnore Community Hospital Series 1989 8.00 2019 7,000,000 7,608,720
Health Facility Authority Revenue Bonds
Sarah Bush Lincoln Health Center Series 1992 7.25 2012-22 4,000,000 4,517,520
Health Facility Authority Revenue Bonds
South Suburban Hospital Series 1992 7.00 2009-18 9,000,000 10,117,810
Hodgkins General Obligation Tax Increment Bonds
Series 1991 9.50 2009 12,600,000 15,158,049
Hodgkins General Tax Increment Bonds
Series 1995A 7.625 2013 9,000,000 9,359,100
Lansing Tax Increment Refunding Revenue Bonds
Landings Redevelopment Area Limited Sales Tax Pledge
Series 1992 7.00 2008 10,000,000 10,991,800
Marion General Obligation Hospital Alternate
Revenue Source Bonds Series 1991 7.50 2016 3,800,000 4,127,294
Metropolitan Fair & Exposition Authority
Dedicated State Tax Revenue Bonds 6.00 2014 5,585,000 5,585,894
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (FGIC Insured) 6.37 2019 6,000,000(f) 1,676,220
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (MBIA Insured) 6.61 2017 11,210,000(f) 3,515,904
Metropolitan Pier & Exposition Authority
Sales Tax & Miscellaneous Tax Revenue
Capital Appreciation Refunding Bonds
Series 1996A Zero Coupon 6.05 2022 16,225,000(f) 3,645,433
Northwest Suburban Water Supply Joint
Action Water Agency (MBIA Insured) 5.75 2012 2,000,000 2,000,220
Regional Transportation Authority General Obligation Bonds
Counties of Cook, Dupage, Kane, Lake, McHenry & Will
Series 1992A (AMBAC Insured) 6.125 2022 7,200,000 7,309,728
Tinley Park Cook & Will Counties Limited Sales Tax
Revenue Bonds Series 1988 10.25 1999 895,000(e) 340,100
Tinley Park Cook & Will Counties Unlimited Ad Valorem
Tax Bonds of Special Service 10.65 2007 1,275,000 1,134,750
Total 505,499,664
Indiana (2.0%)
Brazil 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 4,165,000 4,498,367
Carmel Retirement Rental Housing Refunding Revenue Bonds
Beverly Enterprises Series 1992 8.75 2008 7,000,000 7,866,600
Development Finance Authority Environmental Improvement
Refunding Revenue Bonds USX Corporation Series 1996 6.25 2030 2,000,000 2,027,380
East Chicago Elementary School Building Lake County
First Mortgage Refunding Bonds Series 1996 6.25 2016 8,000,000 8,267,200
Hanover 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 6,815,000 7,360,472
Health Facility Authority Hospital Revenue Bonds
Community Hospital of Anderson Series 1993 6.00 2023 10,000,000 9,973,400
Health Facility Authority Hospital Revenue Bonds
Union Hospital (MBIA Insured) Series 1993 5.125 2018 10,000,000 9,135,000
Health Facility Finance Authority Hospital Revenue Bonds
Hancock Memorial Series 1996 6.125 2017 2,295,000 2,313,819
Kokomo Hospital Authority Hospital Refunding Revenue Bonds
St. Joseph's Hospital Series 1988A 8.75 2013 5,000,000 5,367,300
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.00 2023 2,990,000 2,898,297
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.25 2012 5,070,000 5,106,808
Lawrenceburg Pollution Control Refunding Revenue Bonds
Revenue Bonds Methodist Hospital Series 1989 6.50 2008-13 19,670,000 21,081,993
Municipal Power Agency Power Supply System
Refunding Revenue Bonds 5.75 2018 6,470,000 6,415,717
Rockport Pollution Control Refunding Revenue Bonds
Indiana Michigan Electric Series B 7.60 2016 5,500,000 5,918,990
St. Joseph County Hospital Facility Revenue Bonds
Memorial Hospital of South Bend 9.40 2010 1,930,000 2,415,665
Vincennes Economic Development
Revenue Bonds Southwest Indiana
Regional Youth Village Facility Series 1993 8.50 2024 16,575,000 17,234,022
Total 117,881,030
Iowa (0.8%)
Iowa City Refunding Revenue Bonds Mercy Hospital
Series 1986 6.00 2012 6,300,000 6,318,585
Keokuk Hospital Facilities Refunding Revenue Bonds
Keokuk Area Hospital Series 1991 7.625 2021 5,350,000 5,739,480
Muscatine Electric Refunding Revenue Bonds Series 1986 5.00 2007-08 7,350,000 7,159,669
Muscatine Electric Refunding Revenue Bonds Series 1986 6.00 2005-06 22,175,000 22,194,958
Sioux City Hospital Facility Revenue Bonds
St. Luke Regional Medical Center 10.875 2013 3,595,000 3,657,769
Total 45,070,461
Kentucky (1.3%)
Development Finance Authority Hospital Facility
Revenue Bonds St. Luke Hospital Series 1989B 6.00 2019 22,695,000 22,769,894
Development Finance Authority Medical Center
Refunding Revenue Improvement Bonds Ashland Hospital
Series 1987 9.75 2011 4,000,000 4,221,842
Louisville Airport Lease Revenue Bonds Series 1989A A.M.T. 7.875 2019 4,000,000 4,317,680
Louisville & Jefferson County Riverport Authority Mortgage
Revenue Bonds Series 1986 A.M.T. 7.875 2016 7,185,000 7,445,313
McCracken County Revenue Bonds Lourdes Hospital 6.00 2012 8,300,000 8,308,549
Muhlenberg County Hospital Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1988 9.50 2010 4,070,000 4,396,902
Muhlenberg County Hospital Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1996 6.75 2010 9,565,000 9,680,354
Turnpike Authority Economic Road Development
Refunding Revenue Bonds Series 1993 Inverse Floater
(AMBAC Insured) 6.94 2012 15,000,000(d) 14,868,750
Total 76,009,284
Louisiana (3.2%)
Calcasieu Parish Industrial Development Pollution Control
Refunding Revenue Bonds Gulf State Utilities Series 1992 6.75 2012 10,500,000 10,746,750
Energy & Power Authority Refunding Revenue Bonds
Rodemacher Unit #2 Series 1991 (FGIC Insured) 6.00 2013 28,000,000 28,421,120
Hodge Village Combined Utility System Revenue Bonds
Stone Container Series 1990 A.M.T. 9.00 2010 23,000,000 24,512,940
New Orleans Audubon Park Commission Aquarium
Revenue Bonds Series 1992A 8.00 2012 7,100,000 7,766,051
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.50 2015 1,000,000 1,006,650
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.70 2025 1,500,000 1,524,510
Public Facilities Authority Revenue Bonds
Windsor Multi-Family Housing Foundation Series 1996A 6.25 2026 9,570,000 8,875,792
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1984 8.25 2014 28,600,000 31,011,266
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1991 A.M.T. 7.50 2021 20,700,000 22,482,270
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light 2nd Series 1984 8.00 2014 29,155,000 31,824,140
Southern Louisiana Port Commission Terminal
Refunding Revenue Bonds Gatx Terminal Series 1993 7.00 2023 13,180,000 13,823,711
West Feliciana Parish Demand Pollution Control
Revenue Bonds Gulf State Utilities Series 1985B 9.00 2015 6,000,000 6,638,580
Total 188,633,780
Maine (0.1%)
Health & Higher Educational Facilities Authority
Revenue Bonds St. Mary's Hospital Series 1989 8.625 2022 3,500,000 3,850,805
Maryland (0.6%)
Frederick County Economic Refunding Revenue Bonds
Alumax Series 1992 7.25 2017 9,880,000 10,385,263
Harford County Industrial Development Revenue Bonds
Dorsey 8.00 2005 516,000 517,636
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.00 2022 7,000,000 7,851,340
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.25 2017 11,400,000 12,914,262
State Transportation Authority Facility Revenue Bonds
Series 1992 Capital Appreciation Zero Coupon
(FGIC Insured) 6.33 2010-11 9,700,000(f) 4,592,040
State Transportation Authority Facility Revenue Bonds
Series 1992 Zero Coupon (FGIC Insured) 6.35 2012 5,000,000(f) 2,182,850
Total 38,443,391
Massachusetts (2.5%)
Bay Transportation Authority Refunding Revenue Bonds
Series 1994A (MBIA Insured) 6.00 2012 8,000,000 8,300,000
Greater Lawrence Sanitary District North Andover
General Obligation Bonds 8.50 2005 3,255,000 3,365,214
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 2,000,000 1,927,000
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 6.00 2020 4,000,000 3,824,760
Health & Educational Facilities Authority Revenue Bonds
Beverly Hospital Inverse Floater (MBIA Insured) 7.17 2020 8,000,000(d) 7,630,000
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series B 7.25 2013 6,455,000 7,020,845
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison Series 1993 5.875 2008 4,250,000 4,181,023
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A 9.00 2015 18,885,000 21,180,661
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991B A.M.T. 9.25 2015 25,000,000 28,039,250
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1992B 6.75 2017 10,130,000 11,258,178
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1993A Inverse Floater
(AMBAC Insured) 7.07 2018 6,500,000(d) 5,768,750
State Health & Educational Facilities Authority
Revenue Bonds Holyoke Hospital
Series 1994B 6.50 2015 500,000 501,355
Water Resources Authority General
Refunding Revenue Bonds Series 1992B 5.50 2015 22,175,000 21,647,457
Water Resources Authority General Revenue Bonds
Series 1992A 6.50 2019 3,500,000 3,934,805
Water Resources Authority General Revenue Bonds
Series 1993B-95B (MBIA Insured) 5.00 2022-25 19,000,000 17,167,550
Total 145,746,848
Michigan (3.8%)
Crawford County Economic Development Corporation
Environmental Improvement Revenue Bonds
Weyerhaeuser Series 1991A 7.125 2007 10,800,000 12,114,576
Detroit Unlimited Tax General Obligation Bonds
Series 1993 6.35 2014 5,930,000 6,109,916
Detroit Unlimited Tax General Obligation Bonds
Series 1995A 6.80 2015 1,375,000 1,558,356
Lincoln Consolidated School District Unlimited Tax
General Obligation Refunding Bonds (FGIC Insured) 5.85 2018 6,455,000 6,512,643
Midland County Economic Development Corporation
Pollution Control Limited Obligation
Refunding Revenue Bonds Midland Cogeneration
Series 1990B A.M.T. 9.50 2009 35,200,000 38,314,144
Midland County Economic Development Corporation
Pollution Control Limited Obligation
Refunding Revenue Bonds Midland Cogeneration
Series 1990C 8.50 2009 18,900,000 20,095,803
Monroe County Pollution Control
Revenue Bonds Detroit Edison A.M.T. 7.75 2019 40,250,000(h) 43,370,180
State Hospital Finance Authority Hospital
Refunding Revenue Bonds Detroit Medical Center
Series 1993A 6.50 2018 10,000,000 10,552,400
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.625 2016 2,750,000 2,856,838
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.70 2026 3,000,000 3,122,040
State Hospital Finance Authority Hospital
Revenue Bonds Central Michigan Community Hospital 6.25 2016 2,095,000 2,084,336
State Hospital Finance Authority Hospital
Revenue Bonds McLaren Obligated Group Series 1991A 7.50 2021 7,500,000 8,464,125
State Job Development Authority Pollution Control
Revenue Bonds Chrysler 5.70 1999 4,350,000 4,454,792
Strategic Fund Limited Obligation Refunding Revenue Bonds
Detroit Edison Series 1995AA (MBIA Insured) 6.40 2025 12,000,000 12,797,760
Strategic Fund Limited Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 16,400,000 18,809,816
Strategic Fund Limited Obligation Refunding Revenue Bonds
Great Lakes Pulp & Fibre Series 1994 A.M.T. 10.25 2016 35,000,000(e) 16,290,050
Troy City Downtown Development Authority Revenue Bonds
Oakland County Series 1995A 6.375 2018 1,000,000 1,056,450
Van Buren County Downtown Development Authority
Tax Increment Revenue Bonds Series 1994 8.40 2016 4,000,000 4,509,880
Wayne County Special Airport Facilities
Refunding Revenue Bonds Northwest Airlines Series 1995 6.75 2015 11,310,000 11,705,511
Total 224,779,616
Minnesota (3.7%)
Becker Solid Waste Disposal Facility Revenue Bonds
Liberty Paper Series 1994B A.M.T. 9.00 2015 18,000,000 18,789,300
Bloomington Community Development
Refunding Revenue Note 24th Avenue Motel 8.50 2005 1,515,786(k) 1,523,364
Bloomington Health Care Facility Revenue Bonds
Friendship Village of Bloomington Series 1992 8.50 2002 3,680,000 3,958,981
Brainerd Economic Development Authority
Health Care Facility Revenue Bonds
Benedictine Health System St. Joseph Medical Center
Series 1990 8.375 2020 4,670,000 5,215,596
Duluth Economic Development Authority
Health Care Facility Revenue Bonds
Benedictine Health System St. Mary's Medical Center
Series 1990 8.375 2020 8,300,000 9,269,689
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.00 2000 140,000 140,226
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.25 2009 750,000 751,365
Fergus Falls Health Care Facilities Revenue Bonds
Series 1995 6.50 2025 1,530,000 1,566,934
International Falls Solid Waste Disposal
Revenue Bonds Boise Cascade
Series 1990 A.M.T. 7.75 2015 10,000,000 10,465,500
Mahtomedi Multi-family Housing Revenue Bonds
Briarcliff Series 1996 A.M.T. 7.35 2036 2,000,000 2,033,160
Maplewood Elder Care Facility Revenue Bonds
Care Institute Series 1994 7.75 2024 8,000,000 8,231,040
Maplewood Multi-family Housing Refunding Revenue Bonds
Carefree Cottages Series 1995 A.M.T. 7.20 2032 5,000,000 4,974,800
Mille Lacs Capital Improvement Authority Infrastructure
Revenue Bonds Series 1992A 9.25 2012 4,590,000 5,145,757
Richfield Multi-family Housing
Refunding Revenue Bonds
Village Shores Apartments Series 1996 7.625 2031 5,000,000 5,057,200
Robbinsdale Multi-family Housing
Revenue Bonds
Copperfield Hill Series A 7.35 2020 3,500,000 3,473,960
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 4.475 2005 9,200,000(d) 8,613,500
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 5.475 2013 18,000,000(d) 15,885,000
St. Louis Park Health Care Park Nicollet
Medical Center Facility Revenue Bonds Series 1990A 9.25 2020 6,000,000 6,800,520
St. Louis Park Multi-family Housing Refunding Revenue Bonds
Park Boulevard Towers Series 1996A 7.00 2031 11,625,000 11,737,646
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 4,705,000 4,838,314
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Multi-family Rental Housing
Series 1993B 7.00 2024 2,815,000 2,777,617
St. Paul Port Authority Redevelopment Multi-family
Refunding Revenue Bonds Burlington Apartments
Series A (GNMA Insured) 5.75 2031 14,355,000 14,101,921
St. Paul Port Authority Redevelopment Multi-family
Subordinate Refunding Revenue Bonds
Burlington Apartments Series A 8.625 2031 3,770,000 3,763,063
Southern Minnesota Municipal Power Agency
Power Supply System Refunding Revenue Bonds
Series 1992 5.75 2018 32,210,000 31,863,420
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.72 2021 13,500,000(f) 3,449,115
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.73 2022 17,500,000(f) 4,219,775
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.74 2023 27,500,000(f) 6,258,175
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.75 2024-27 87,410,000(f) 17,369,909
Vadnais Heights Multi-family Housing
Refunding Revenue Bonds Cottages of Vadnais Heights
Series 1995 A.M.T. 7.00 2031 1,995,000 1,979,579
Washington County Housing & Redevelopment Authority
Woodbury Multi-family Housing Refunding Revenue Bonds
Series 1996 6.95 2023 4,970,000 4,963,986
Total 219,218,412
Mississippi (0.8%)
Claiborne County Pollution Control Refunding Revenue Bonds
System Energy Resources Series 1995 7.30 2025 4,000,000 4,206,600
Claiborne County Pollution Control Revenue Bonds
Middle South Energy 9.50 2013 1,500,000 1,632,720
Claiborne County Pollution Control Revenue Bonds
Middle South Energy Series C 9.875 2014 15,375,000 16,769,359
Harrison County Waste Water Management District
Refunding Bonds Series 1986 5.00 2015 4,250,000 4,066,995
Jackson Industrial Development Revenue Bonds Dorsey 8.00 2005 436,000 439,270
Lowndes County Solid Waste Disposal Pollution Control
Revenue Bonds Weyerhaeuser Series 1989 A.M.T. 7.875 2005 12,250,000 13,325,427
Lowndes County Solid Waste Disposal Pollution Control
Refunding Revenue Bonds Weyerhaeuser Series 1989 7.70 2022 4,000,000(i) 4,456,880
Total 44,897,251
Missouri (0.7%)
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991B 7.00 2021 5,810,000 6,511,848
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991C 7.90 2021 2,700,000 3,125,655
State Environment & Improvement Energy Resources
Authority Pollution Control Revenue Bonds Chrysler 5.70 1999 9,250,000 9,372,285
Sikeston Electric System Refunding Revenue Bonds
Series 1992 (MBIA Insured) 5.80 2002 4,165,000 4,370,918
St. Louis Industrial Development Authority
Refunding Revenue Bonds Kiel Center
Multipurposes Arena Series 1992 A.M.T. 7.875 2024 15,400,000 16,572,864
Total 39,953,570
Nebraska (--%)
Omaha Public Power District Electric System
Revenue Bonds Series 1986A 6.00 2015 1,370,000 1,417,429
Nevada (0.7%)
Clark County Collateralized Pollution Control Revenue Bonds
Nevada Power A.M.T. 7.80 2009 11,850,000 12,514,785
Clark County Industrial Development Revenue Bonds
Nevada Power Series 1990 A.M.T. 7.80 2020 5,000,000 5,328,400
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.00 2010 2,000,000 1,957,520
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.10 2014 2,750,000 2,692,938
Las Vegas Special Improvement District 707
Local Improvement Bonds
Summerlin Area Series 1996 7.10 2016 6,000,000 6,171,900
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1989A 7.60 2019 2,750,000 2,966,810
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1993A 6.00 2015 7,250,000 7,268,197
Total 38,900,550
New Hampshire (2.6%)
Business Financial Authority Pollution Control
Refunding Revenue Bonds United Illuminating
Series 1993A 5.875 2033 13,200,000 12,419,484
Business Financial Authority Pollution Control &
Solid Waste Disposal Refunding Revenue Bonds
Crown Paper Company Series 1996 7.75 2022 4,255,000 4,472,388
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991B 7.50 2021 51,485,000 52,758,739
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991C A.M.T. 7.65 2021 25,000,000 25,728,500
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1987A A.M.T. 9.375 2012 15,000,000 15,492,600
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1989A A.M.T. 8.00 2014 8,000,000 8,501,520
State Higher Education & Health Facility Authority Hospital
Revenue Bonds Hitchcock Clinic Series 1994
(MBIA Insured) 6.00 2024 13,000,000 13,217,490
State Turnpike System Refunding Revenue Bonds
Series 1992 5.75 2020 20,615,000 20,406,376
Total 152,997,097
New Jersey (0.3%)
Economic Development Authority 1st Mortgage
Gross Revenue Bonds Mega Care Union Hospital 8.625 2007 2,500,000 2,569,600
Health Care Facility Finance Authority Revenue Bonds
St. Peter Medical Center Series 1994F (MBIA Insured) 5.00 2016 10,000,000 9,191,500
Health Care Facility Finance Authority Revenue Bonds
Zurbrugg Memorial Hospital Series C 8.50 2012 3,500,000 3,573,605
Total 15,334,705
New Mexico (2.1%)
Albuquerque Airport Revenue Bonds Series 1987B A.M.T. 8.75 2019 15,000,000 15,212,550
Albuquerque Health Care System Revenue Bonds
Lovelace Medical Fund 10.25 2011 55,000 55,780
Bernalillo County Multi-family Housing Revenue Bonds
Series 1997D 7.70 2027 10,050,000 10,110,401
Cibola County Correctional Facility
Certificate of Participation Series 1993 8.50 2015 16,710,000 17,717,446
Farmington Pollution Control Refunding Revenue Bonds
Series 1996 A&B 6.30 2016 10,000,000 10,163,600
Farmington Pollution Control Refunding Revenue Bonds
State Public Service San Juan Series 1994A 6.40 2023 30,650,000 31,174,115
Farmington Pollution Control Refunding Revenue Bonds
Series 1997A 6.95 2020 4,000,000 4,116,400
Farmington Power Refunding Revenue Bonds
Generating Division 9.875 2013 5,000,000 6,645,550
Las Vegas Hospital Facility Refunding Revenue Bonds
Northeastern Regional Hospital Series 1987 9.625 2013 5,670,000 5,811,183
Lordsberg Pollution Control Refunding Revenue Bonds
Phelps Dodge 6.50 2013 20,000,000 21,159,600
Total 122,166,625
New York (8.4%)
Battery Park City Authority Refunding Revenue Bonds
Series 1993A 5.50 2010 9,940,000 9,959,383
Dormitory Authority New York State University Education
Facility Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 10,000,000 11,078,700
Dormitory Authority New York State University Education
Facility Revenue Bonds Series 1993A 5.50 2013 24,530,000 23,919,448
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 5.00 2017 20,820,000 18,296,824
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 6.00 2016 39,465,000 39,462,632
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990D 7.00 2009 5,000,000 5,566,500
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1994A 5.75 2018 5,500,000 5,479,705
Dormitory Authority New York Court Facility Lease
Revenue Bonds Series 1993A 5.375 2016 11,000,000 10,215,700
Metropolitan Transportation Authority Commuter Facility
Revenue Bonds Series H 6.00 2014 6,150,000 6,168,450
Metropolitan Transportation Authority Transit Facility
Revenue Bonds Series G 6.00 2014 4,970,000 4,987,693
Metropolitan Transportation Transit Facilities
Service Contract Series 3 6.00 2019 6,395,000 6,363,601
New York City General Obligation Bonds Series 1992B 7.40 2000 30,000,000 31,825,500
New York City General Obligation Bonds Series 1994B 7.00 2016 16,500,000 17,892,105
New York City General Obligation Bonds Series 1996F-G 5.75 2017-20 27,825,000 27,110,006
New York City Industrial Development Agency
Special Facility Revenue Bonds American Airlines
Series 1990 A.M.T. 8.00 2020 16,130,000 17,055,862
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series 1994B
Inverse Floater (MBIA Insured) 6.12 2009 15,500,000(d) 14,821,875
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A 6.25 2021 55,500,000 56,807,025
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series B 5.00 2017 6,255,000 5,756,727
Port Authority Special Obligation Revenue Bonds
KIAC A.M.T. 6.75 2019 3,500,000 3,670,695
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines A.M.T. 9.00 2006 2,645,000 2,950,021
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines Series 2 A.M.T. 9.00 2010 8,800,000 9,814,816
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines Series 2 A.M.T. 9.125 2015 17,500,000 19,758,900
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.125 2022 10,750,000 10,977,255
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.375 2024 23,000,000 23,794,420
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.50 2021 9,000,000 9,199,440
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison
Series 1990A A.M.T. 7.50 2025 30,975,000 32,759,160
State Housing Finance Agency Service Contract Obligation
Revenue Bonds Series 1995A 6.50 2025 12,475,000 13,232,607
State Housing Finance Agency State University Construction
Refunding Bonds Series 1986A 6.50 2013 3,500,000 3,866,695
State Local Government Assistance Corporation
Series 1991A 6.50 2020 11,000,000 11,710,820
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993D 5.25 2023 15,000,000 13,431,000
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993F 5.25 2019 5,790,000 5,240,239
State Urban Development Correctional Facility
Refunding Revenue Bonds Series A 5.50 2016 2,750,000 2,617,725
State Urban Development Correctional Facility
Revenue Bonds Series 1993A 5.25 2021 12,110,000 10,886,648
State Urban Development Correctional Facility
Revenue Bonds Series 6 5.375 2025 9,000,000 8,371,260
Total 495,049,437
North Carolina (3.9%)
Eastern Municipal Power Agency Power Supply System
Refunding Revenue Bonds Series 1993B 6.25 2012 24,655,000 24,875,169
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 4.00 2018 8,675,000 7,046,095
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 5.00 2017 6,500,000 6,084,239
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1988A 6.00 2026 3,125,000 3,244,236
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 5.50 2011 37,800,000 36,363,978
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 6.50 2024 16,750,000 16,858,708
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 7.50 2010 29,160,000 34,162,004
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1991A 5.75 2019 55,000,000 52,513,450
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1994B 7.25 2007 5,000,000 5,582,400
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series B 6.125 2009 10,000,000 10,347,600
Eastern Municipal Power Agency Power System
Revenue Bonds Series 1993D 5.875 2013 2,300,000 2,256,185
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1988 7.00 2016 5,140,000 5,302,167
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater (MBIA Insured) 6.97 2012 7,400,000(d) 7,187,250
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater (MBIA Insured) 7.17 2020 15,000,000(d) 13,875,000
Offiss Incorporation Recreational Facilities
Gross Revenue Bonds Smoky Mountain Golf Course
Series 1994-96 Zero Coupon 8.38 1997 8,295,000(e,g) 7,702,986
Total 233,401,467
North Dakota (0.5%)
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 6.875 2012 3,000,000 3,346,650
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 7.00 2022 4,250,000 4,766,333
General Obligation Bonds Real Estate Series 1986A 6.00 2013 8,585,000 8,633,334
Ward County Health Care Facilities
Refunding Revenue Bonds Series 1996B 6.25 2021 4,000,000 4,014,200
Ward County Health Care Facilities
Refunding Revenue Bonds Trinity Group Series 1996A 6.25 2026 6,110,000 6,131,690
Total 26,892,207
Ohio (2.8%)
Air Quality Development Authority Pollution Control
Refunding Revenue Bonds Ohio Edison Series A 5.95 2029 13,300,000 13,123,509
Air Quality Development Authority Pollution Control
Revenue Bonds Ohio Edison Series 1989A 7.625 2023 6,750,000 7,102,215
Bellefontaine Hospital Facilities Refunding Revenue Bonds
Mary Rutan Health Association Series 1993 6.00 2013 5,330,000 5,214,392
Butler County Hospital Facilities
Refunding Revenue & Improvement Bonds
Fort Hamilton-Hughes Memorial Center Series 1991 7.50 2010 9,800,000 10,455,620
Carroll Water & Sewer District Unlimited Tax
General Obligation Bonds 6.25 2010 8,795,000 8,371,961
Cleveland Parking Facilities Improvement
Revenue Bonds Series 1992 8.10 2022 15,000,000 17,565,450
Coshocton County Solid Waste Disposal
Refunding Revenue Bonds Stone Container Series 1992 7.875 2013 17,500,000 18,488,050
Cuyahoga County Health Care Facilities Lifecare
Refunding Revenue Bonds Judson Retirement Community
Series 1996A 7.25 2013-18 6,210,000 6,292,860
Erie County Hospital Improvement and
Refunding Revenue Bonds Firelands Community Hospital
Series 1992 6.75 2015 6,540,000 7,010,291
Lorain County Independent Living &
Hospital Facilities Mortgage
Refunding Revenue Bonds Elyria United Methodist
Series 1996C 6.875 2022 3,100,000 3,158,652
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds
United Church Homes Series 1993 6.30 2015 1,800,000 1,812,816
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds
United Church Homes Series 1993 6.375 2010 2,000,000 2,040,880
Montgomery County Health Facilities
Refunding Revenue Bonds Friendship Village of Dayton
Series 1990A 9.25 2016 9,025,000 9,467,225
Water Development Authority Collateralized Pollution Control
Refunding Revenue Bonds Cleveland Electric Series 1995 7.70 2025 13,000,000 14,156,870
Water Development Authority Collateralized Pollution Control
Revenue Bonds Cleveland Electric Series 1989 A.M.T. 8.00 2023 10,000,000 10,275,800
Water Development Authority Collateralized Pollution Control
Revenue Bonds Toledo Edison Series 1989 A.M.T. 8.00 2023 8,500,000 8,874,255
Water Development Authority Pollution Control
Revenue Bonds Ohio Edison A.M.T. 8.10 2023 10,000,000 10,591,800
Water Development Authority Pollution Control
Refunding Revenue Bonds Toledo Edison
Series 1994A A.M.T. 8.00 2023 10,000,000 10,866,900
Total 164,869,546
Oklahoma (1.0%)
Grand River Dam Authority Refunding Revenue Bonds
Series 1987 5.00 2012 10,105,000 9,663,007
Hinton Economic Development Authority
Certificate of Participation Series 1994 8.75 2015 12,100,000 12,852,257
Hinton Economic Development Authority
Certificate of Participation Dominion Leasing
Series 1990A 9.75 2015 19,090,000 21,073,451
Jackson County Hospital Authority
Refunding Revenue Bonds
Jackson County Memorial Hospital Series 1994 7.30 2015 6,580,000 6,725,747
Midwest City Memorial Hospital Authority Hospital
Revenue Bonds Series 1992 7.375 2022 7,815,000 8,823,213
Stillwater Medical Center Authority
Hospital Revenue Bonds Series 1997B 6.50 2019 1,750,000 1,755,705
Total 60,893,380
Oregon (0.6%)
State Health Housing Educational &
Cultural Facilities Authority Revenue Bonds
Oregon Baptist Retirement Homes-Weidler
Retirement Center Series 1995 8.00 2026 7,720,000 7,625,739
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994A 7.125 2021 19,200,000 20,013,504
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994B A.M.T. 7.40 2016 9,000,000 9,470,340
Total 37,109,583
Pennsylvania (4.3%)
Allegheny County Industrial Development Authority
Environment Improvement Revenue Bonds
USX Corporation Series 1994A 6.70 2020 6,000,000 6,305,880
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995 7.625 2025 7,500,000 8,149,500
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995A 7.75 2025 21,150,000 23,163,057
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Toledo Edison Series 1995A 7.75 2020 14,000,000 15,390,760
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds
Toledo Edison-Beaver Valley Series 1995 7.625 2020 11,700,000 12,713,220
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds Ohio Edison 7.75 2024 34,650,000 36,380,767
Butler County Industrial Development Authority Health Care
Refunding Revenue Bonds Pittsburgh Lifetime Care
Community Sherwood Oaks Series 1993 5.75 2011-16 5,000,000 4,959,520
Convention Center Authority Refunding Revenue Bonds
Philadelphia Series 1994A 6.75 2019 5,300,000 5,663,845
Delaware County Authority 1st Mortgage Revenue Bonds
Riddle Village Series 1996 7.00 2026 10,000,000 10,005,200
Delaware County Authority 1st Mortgage Revenue Bonds
Whitehorse Village Continuing Care Series 1989 9.70 2009-19 11,000,000 12,430,550
Delaware County Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Philadelphia Electric Series A 7.375 2021 900,000 970,875
Fayette County Hospital Authority Hospital
Refunding Revenue Bonds Uniontown Hospital
Series 1987 7.625 2015 9,000,000 9,208,440
Montgomery County Higher Education & Health Authority
Retirement Community Revenue Bonds G.D.L. Farms
Series A 9.50 2020 3,000,000 3,406,110
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 8.875 2005 1,680,000 1,724,100
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 9.00 2015 5,750,000 5,901,225
Philadelphia Gas Works Revenue Bonds Series 13 7.70 2021 4,150,000 4,695,103
Philadelphia Hospital & Higher Education Facility
Authority Hospital Revenue Bonds
Albert Einstein Medical Center 7.625 2011 15,545,000 16,352,252
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.25 2013 2,500,000 2,523,525
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.30 2017 1,550,000 1,564,554
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.00 2018 14,000,000 15,282,540
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.50 2010 13,200,000 14,876,004
Philadelphia Water & Wastewater Revenue Bonds
Series 1993 (CGIC Insured) 5.50 2015 11,000,000 10,814,540
State Department of General Services Certificate of
Participation Series 1994A (AMBAC Insured) 5.00 2015 25,000,000 23,306,750
Wilkins Industrial Development Authority Revenue Bonds
Retirement Community Longwood at Oakmont
Series 1991A 10.00 2021 8,495,000 9,958,909
Total 255,747,226
Puerto Rico (0.8%)
Electric Power Agency Revenue Bonds Series N-O 6.00 2010 45,305,000 45,929,756
South Carolina (0.9%)
Cherokee County Spring City Knitting Cluett Peabody 7.40 2009 5,200,000 5,616,468
Piedmont Municipal Power Agency Electric
Refunding Revenue Bonds Series 1986B 5.75 2024 7,550,000 7,271,178
Public Service Authority Electric System Expansion
Revenue Bonds Santee Cooper Series 1991D 6.625 2031 14,975,000 16,551,568
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1991B 6.00 2031 8,000,000 7,953,440
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1993A Inverse Floater
(MBIA Insured) 6.94 2013 17,700,000(d) 17,058,375
Total 54,451,029
South Dakota (0.5%)
Heartland Consumers Power District Electric System
Refunding Revenue Bonds Series 1986 6.00 2010 10,205,000 10,728,925
Souix Falls Multi-family Housing Revenue Bonds
Series 1996A 7.50 2034 12,200,000 12,286,742
State Lease Revenue Trust Certificates Series 1993
(CGIC Insured) 6.70 2017 7,260,000 8,315,313
Total 31,330,980
Tennessee (0.4%)
Nashville & Davidson County Health & Education Facility
1st Mortgage Revenue Bonds
Blakeford at Green Hills CCRC 9.25 2024 12,230,000 13,395,519
Knox County Health Education & Housing Facility Hospital
Revenue Bonds Baptist Health System East Tennessee
Series 1989 8.60 2016 10,000,000 10,925,400
Total 24,320,919
Texas (7.0%)
Alliance Airport Authority Special Facility Revenue Bonds
American Airlines Series 1990 A.M.T. 7.50 2029 37,400,000 40,050,912
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1985 10.75 2010-15 12,000,000 14,051,640
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1986 5.00 2013 20,000,000 18,537,400
Board of Regents of the University System General
Refunding Revenue Bonds Series 1986 6.50 2007 2,565,000 2,615,659
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1989A A.M.T. 8.25 2019 14,000,000 14,917,980
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1990A A.M.T. 8.125 2020 13,205,000 14,362,550
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1991A A.M.T. 7.875 2021 24,450,000 26,725,317
Brazos River Authority Collateralized
Refunding Revenue Bonds Houston Lighting & Power
Series 1989A 7.625 2019 26,300,000 28,062,100
Brownsville Utility System Priority Revenue Bonds
Series 1990 (AMBAC Insured) 6.50 2017 10,015,000 10,803,080
Clay Road Municipal Utility District Tax
Refunding Bonds Series 1996 6.25 2015 2,000,000 1,978,320
Colony Municipal Utility District #1 Denton County
Series 1980 9.25 2007 1,000,000 1,337,840
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds American Airlines Series 1990 A.M.T. 7.50 2025 26,200,000 28,026,402
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds Delta Air Lines Series 1991 A.M.T. 7.125 2026 13,500,000 14,155,560
Denison Hospital Authority Hospital Revenue Bonds
Texoma Medical Center Series 1994 7.10 2024 3,950,000 4,187,000
Fort Bend County Municipal Utility District #23
Unlimited Tax Bonds 6.625 2016 3,085,000 3,049,893
Harris County Health Facilities Development Hospital
Refunding Revenue Bonds Memorial Hospital Series 1985 6.00 2004 6,460,000 6,460,775
Harris County Health Facilities Hospital Revenue Bonds
Memorial Hospital Series 1992 7.125 2015 16,000,000 18,252,160
Harris County Industrial Development Marine Terminal
Refunding Revenue Bonds GATX Terminal Series 1992 6.95 2022 15,000,000 15,820,050
Hidalgo County Health Services Corporation
Hospital Revenue Bonds Mission Hospital
Series 1996 6.875 2026 7,880,000 8,014,984
Interstate Municipal Utility District
Unlimited Tax Bonds Harris County Series 1996 6.75 2021 3,020,000 3,038,120
Karnes County Public Facility Lease Revenue Bonds 9.20 2015 15,990,000 16,548,051
Kings Manor Municipal Utility District
Waterworks & Sewer Systems Combination
Unlimited Tax & Revenue Bonds Series 1995 6.875 2018 2,470,000 2,517,054
Matagorda County Navigation District #1
Collateral Pollution Control Revenue Bonds
Central Power & Light Series 1986A
(AMBAC Insured) A.M.T. 7.50 2020 6,500,000 7,006,610
Midland County Hospital District Revenue Bonds Series 1992 7.50 2016 3,025,000 3,234,784
Mills Road Municipal Utility District Harris County
Unlimited Tax Refunding Bonds Series 1993 6.50 2014 2,690,000 2,701,163
Mount Houston Road Municipal Utility District
Waterworks & Sewer System Combined Unlimited
Tax & Refunding Revenue Bonds Series 1996 6.375 2010 2,195,000 2,159,990
Municipal Power Agency Refunding Revenue Bonds
(MBIA Insured) 5.25 2009 8,000,000 8,078,640
Municipal Power Agency Revenue Bonds 5.50 2013 7,410,000 7,230,604
Municipal Power Agency Revenue Bonds (BIG Insured) 6.25 2010 13,940,000 14,303,973
Plano Collin & Denton County General Obligation Bonds
Limited Tax Series 1986 6.00 2006 1,600,000 1,608,672
Rio Grande City Consolidated Independent School District
Public Facilities Lease Revenue Bonds Series 1995 6.75 2010 4,000,000 4,140,360
Sabine River Authority Collateralized Pollution Control
Revenue Bonds Texas Utilities Electric Series 1990A A.M.T.8.125 2020 30,500,000 33,173,630
San Antonio Electric & Gas System
Refunding Revenue Bonds Series 1989B 5.00 2016 11,000,000 10,168,950
San Antonio Electric & Gas System
Revenue Bonds Series 1987 5.00 2014 8,680,000 8,066,324
West Side Calhoun County Navigation District
Solid Waste Disposal Revenue Bonds
Union Carbide Chemical & Plastics Series 1991 A.M.T. 8.20 2021 17,550,000 19,508,756
Total 414,895,303
Utah (1.8%)
Association Municipal Power System Hunter Series A
(AMBAC Insured) 5.50 2012 4,000,000 3,999,600
Carbon County Solid Waste Disposal
Refunding Revenue Bonds Sunnyside
Cogeneration Associates Series 1991 A.M.T. 9.25 2018 25,350,000(e) 13,942,500
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.30 2011 950,000 1,001,766
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.35 2016 755,000 795,279
Hurricane Health Facilities Development Revenue Bonds
Mission Health Services Series 1990 10.50 2020 7,705,000 8,579,209
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series F (AMBAC Insured) 5.00 2013 5,000,000 4,724,900
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1993B Inverse Floater 6.71 2011 7,600,000(d) 7,343,500
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C (MBIA Insured) 5.70 2017 46,000,000 45,942,960
Intermountain Power Agency Power Supply
Revenue Bonds Series 1987A (MBIA Insured) 5.00 2012 8,000,000 7,616,720
Intermountain Power Agency Power Supply
Revenue Bonds Series 1989A-B 6.00 2023 13,665,000 13,764,894
Total 107,711,328
Virginia (0.5%)
Fairfax County Redevelopment & Housing Authority
Multi-family Housing Revenue Bonds
Burkeshire Commons Series 1996 7.60 2036 13,290,000 13,368,145
Hopewell City Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Stone Container Series 1992 8.25 2010 3,170,000 3,392,502
Housing Development Authority Commonwealth
Mortgage Bonds Series 1992A 7.15 2033 15,000,000 15,566,400
Total 32,327,047
Washington (3.5%)
King County Housing Authority Pooled Housing
Refunding Revenue Bonds Series 1995A 7.20 2026 4,000,000 4,046,800
Longview Industrial Development Corporation Solid Waste
Revenue Bonds Weyerhauser Series 1991 A.M.T. 7.45 2013 20,000,000 21,504,600
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Series A 6.50 2015 21,000,000 21,892,290
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Bonneville Power Administration
Series 1993A Inverse Floater (FSA Insured) 7.47 2011 25,000,000(d) 25,750,000
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1989 6.00 2017 28,070,000 28,073,649
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1990A 6.00 2017 38,875,000 38,883,164
Public Power Supply System Nuclear Project #2
Revenue Bonds Series 1994A 5.375 2011 10,000,000 9,687,600
Public Power Supply System Nuclear Project #3
Revenue Bonds Series 1989B 5.50 2017-18 27,550,000 26,116,404
Snohomish County Public Utility District #1
Generation System Revenue Bonds Series 1986A 5.00 2020 17,750,000 16,718,725
State General Obligation
Refunding Revenue Bonds
Series 1997A Zero Coupon 5.95 2019 16,260,000(f) 4,530,849
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.00 2017 3,700,000 3,772,372
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.125 2027 3,850,000 3,923,304
Total 204,899,757
West Virginia (1.4%)
Kanawha County Pollution Control
Revenue Bonds Union Carbide Series 1984 7.35 2004 3,000,000 3,392,730
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1993 A.M.T. 7.75 2011 20,000,000(e) 8,953,800
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1994 A.M.T. 8.25 2011 10,000,000(e) 4,476,700
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995 A.M.T. 9.00 2011 5,000,000(e) 2,238,150
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995B A.M.T. 9.25 2011 5,000,000(e) 2,238,200
Mason County Pollution Control Refunding Revenue Bonds
Appalachian Power Series 1992J 6.60 2022 25,000,000 25,962,500
Pea Ridge Public Service District Sewer
Refunding Revenue Bonds Series 1990 9.25 2020 2,575,000 2,678,438
Putnam County Pollution Control Revenue Bonds
Appalachian Power Series C 6.60 2019 10,600,000 10,983,614
School Building Authority Capital Improvement
Revenue Bonds Series 1991A 6.00 2021 20,785,000 20,993,058
South Charleston Pollution Control Refunding
Revenue Bonds Union Carbide Series 1985 7.625 2005 3,000,000 3,450,240
Total 85,367,430
Wisconsin (0.6%)
Health & Education Facilities Authority
Revenue Bonds St. Clare Hospital 7.00 2022 12,115,000 12,936,761
Health Facilities Authority Refunding Revenue Bonds
Villa Clement Series 1986 8.75 2012 4,365,000 4,374,690
Madison Industrial Development
Refunding Revenue Bonds Madison Gas & Electric
Series 1992B 6.70 2027 19,300,000 20,605,838
Total 37,917,289
Wyoming (0.2%)
Green River & Rock Springs Sweetwater County
Joint Powers Water Board Revenue Bonds
Series 1988A 8.50 2007 2,500,000 2,635,175
Natrona County Hospital Revenue Bonds
Wyoming Medical Center 8.125 2010 6,500,000 6,991,530
State Farm Loan Board Capital Facilities
Revenue Bonds Series 1994 6.10 2024 5,000,000 5,092,050
Total 14,718,755
Total municipal bonds
(Cost: $5,230,133,895) $5,601,698,227
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
<TABLE>
Short-term securities (3.4%)
<CAPTION>
Issuer (c,i,j) Effective Amount Value(a)
yield payable at
maturity
Municipal notes
Burke County Development Authority Pollution Control
Revenue Bonds Georgia Power Vogtle 4th Series
<S> <C> <C> <C>
07-01-24 4.15% $ 8,600,000 $ 8,600,000
Burke County Pollution Control Revenue Bonds
Georgia Power Series 1994
07-01-24 4.15 16,500,000 16,500,000
Columbia Industrial Development Authority
Pollution Control Revenue Bonds Alabama Power Series C V.R.
10-01-22 4.15 800,000 800,000
Dade County Industrial Development Authority
Facilities Revenue Bonds Florida Power & Light
06-01-21 4.10 3,500,000 3,500,000
Development Authority of Monroe County Georgia Power
2nd Series
07-01-25 4.15 2,600,000 2,600,000
Development Authority of Monroe County Gulf Power
2nd Series
09-01-24 4.15 2,250,000 2,250,000
Emery County Pollution Control Refunding
Revenue Bonds Pacificorp Series 1994
11-01-24 4.10 2,900,000 2,900,000
Jackson County Port Facility Chevron V.R.
06-01-23 4.05 24,800,000 24,800,000
Lincoln County Pollution Control Revenue Bonds
Exxon
08-01-15 4.05 7,500,000 7,500,000
Louisiana Offshore Term Authority Deepwater
Port Revenue Bonds Loop V.R.
09-01-08 4.05 6,000,000 6,000,000
Maricopa County Industrial Development Authority
Hospital Facilities Revenue Bonds
Samaritan Health Services Hospital Series B2
12-01-08 4.00 10,835,000 10,835,000
Maricopa County Pollution Control Revenue Bonds
Arizona Public Service Company Morgan Guaranty V.R.
05-01-29 4.05 15,400,000 15,400,000
Michigan State Strategic Fund Consumer Power Company
Series 1988A V.R. 4.10 2,900,000 2,900,000
Missouri State Health & Education Washington University
Series A
09-01-30 4.15 1,500,000 1,500,000
Missouri State Health & Education Washington University
Series B V.R.
09-01-30 4.15 4,500,000 4,500,000
New York City General Obligation Bonds
Series 1995 B
08-15-23 4.05 5,100,000 5,100,000
New York City General Obligation Bonds Series A-10 V.R.
08-12-06 4.20 2,000,000 2,000,000
New York City General Obligation Bonds V.R.
08-12-06 4.05 2,500,000 2,500,000
New York City General Obligation SubSeries B-2
08-15-20 4.20 2,000,000 2,000,000
New York City General Obligation SubSeries B-3 V.R.D.N.
08-15-04 4.05 2,300,000 2,300,000
New York City Municipal Water & Sewer System
Revenue Bonds
06-15-22 4.05 3,800,000 3,800,000
New York City Municipal Water & Sewer System
Revenue Bonds
06-15-25 4.20 7,550,000 7,550,000
New York City Municipal Water Financial Authority
Series 1994C
06-15-23 4.05 14,050,000 14,050,000
Ohio State Air Quality Development Authority
Revenue Bonds Series 1995B V.R. Cincinnati Gas & Electric
12-01-15 4.20 13,300,000 13,300,000
Ohio State Air Quality Development Authority
Revenue Bonds Series A Cincinnati Gas & Electric
03-01-02 4.10 6,000,000 6,000,000
Peninsula Port Authority Shell Oil V.R.
12-01-05 4.00 4,800,000 4,800,000
Perry County Pollution Control Revenue Bonds Leaf River V.R.
03-01-02 4.00 15,585,000 15,585,000
Putnam County Development Authority Pollution Control
Revenue Georgia Power Company Branch
04-01-32 4.15 4,900,000 4,900,000
Sabine River Authority Pollution Control Revenue
Series A Texas Utilities
03-01-26 4.15 4,150,000 4,150,000
Regents of the University Hospital Refunding Revenue Bonds
Series 1995A
12-01-27 4.15 2,600,000 2,600,000
Total short-term securities
(Cost: $,201,220,000) $ 201,220,000
Total investments in securities
(Cost: $5,431,353,895) (l) $5,802,918,227
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Investments in bonds, by rating category as a percentage of total bonds, are
as follows:
(Unaudited)
Rating 05-31-97 11-30-96
AAA 26% 25%
AA 5 6
A 16 16
BBB 31 33
BB and below 22 20
Non-rated -- --
Total 100% 100%
(c) The following abbreviations are used in portfolio descriptions to identify
the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) Inverse floaters represent securities that pay interest at a rate that
increases (decreases) in the same magnitude as, or in a multiple of, a decline
(increase) in market short-term rates. Interest rate disclosed is the rate in
effect on May 31, 1997. Inverse floaters in the aggregate represent 5.4% of the
Portfolio's net assets as of May 31, 1997.
(e) Non-income producing. Items identified are in default as to payment of
interest and/or principal.
(f) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(g) For those zero coupon bonds that become coupon paying at a future date, the
interest rate disclosed represents the annualized effective yield from the date
of acquisition to interest reset date disclosed.
(h) Pledged as initial deposit on the following open interest rate futures
contracts (see Note 4 to the financial statements):
Type of security Notional amount
Sales contracts
Municipal Bonds June 1997 $150,000,000
(i) Interest rate varies to reflect current market conditions; rate shown is the
effective rate on May 31, 1997.
(j) The Portfolio is entitled to receive principal amount from issuer or
corporate guarantor, if indicated in parentheses, after a day or a week's
notice. The maturity date disclosed represents the final maturity. The following
abbreviations are used in the portfolio descriptions:
V.R. -- Variable Rate
V.R.D.N. -- Variable Rate Demand Note
A.M.T. -- Alternative Minimum Tax -- As of May 31, 1997, the value of securities
subject to alternative minimum tax represented 19.0% of net assets.
(k) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). Information concerning such security
holdings at May 31, 1997, is as follows:
Security Acquisition Purchase
date cost
Bloomington Community Development
Refunding Revenue Note 24th Avenue Motel 03-31-88 $1,721,000
(l) At May 31, 1997, the cost of securities for federal income tax purposes was
approximately $5,431,343,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.........................................$458,640,000
Unrealized depreciation..........................................(87,065,000)
Net unrealized appreciation.....................................$371,575,000
<PAGE>
Board members and officers of the Fund
President and interested
board member
William R. Pearce
Chairman of the board, Board Services Corporation (provides
administrative services to boards including the boards of the IDS and
IDSLife funds and Master Trust portfolios).
Independent
board members
H. Brewster Atwater, Jr.
Former chairman and chief executive officer, General Mills, Inc.
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public Policy
Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Alan K. Simpson
Former United States senator for Wyoming.
Edson W. Spencer
Former chairman and chief executive officer,
Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
Interested board
members who are
officers and/or
employees of AEFC
William H. Dudley
Senior advisor to the chief executive officer, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
Officers who also
are officers and/or
employees of AEFC
Peter J. Anderson
Senior vice president, AEFC. Vice president - Investments for the Fund.
Melinda S. Urion
Senior vice president and chief financial officer, AEFC. Treasurer for the
Fund.
Other officer
Leslie L. Ogg
President, treasurer and corporate secretary of Board Services
Corporation. Vice president, general counsel and secretary for the Fund.
Refer to the SAI for the board members' and officers' biographies.
<PAGE>
IDS mutual funds
Global/International funds
Funds in this group seek capital growth and/or income by investing primarily in
foreign securities. Foreign investments may be subject to currency fluctuations
and political and economic risks of the countries in which the investments are
made. They are high risk mutual funds with a potential for high reward.
IDS Emerging Markets Fund
Invests in a Portfolio comprised primarily of stocks of companies in developing
countries throughout the world that are believed to offer growth potential.
Seeks to provide long-term growth of capital.
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IDS Global Growth Fund
Invests in a Portfolio comprised primarily of stocks of companies throughout the
world that are positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
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IDS International Fund
Invests primarily in common stocks of foreign companies that offer potential for
superior growth. The Fund may invest up to 20% of its assets in the U.S. market.
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IDS Global Balanced Fund
Invests in stocks-and bonds in, for the most part, major markets throughout the
world, including the U.S. Seeks to provide a balance of growth of capital and
current income.
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IDS Global Bond Fund
Invests in a Portfolio comprised primarily of debt securities of U.S. and
foreign issuers to seek high total return through income and growth of capital.
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Growth funds
Funds in this group seek capital growth, primarily from common stocks. They are
high risk mutual funds with a potential for high reward.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies that
explore for, mine and process or distribute gold and other precious metals. A
highly aggressive and speculative fund that seeks long-term growth of capital.
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IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies emphasizing
technological innovation and productivity enhancement. Buys and holds larger
growth-oriented stocks.
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IDS Small Company Index Fund
Invests in all or a representative group of the equity securities comprising the
S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation.
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IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected for their
potential for above-average growth. Above-average means that their growth
potential is better, in the opinion of the portfolio's investment manager, than
the Standard & Poor's Corporation (S&P) 500 Stock Index.
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IDS Research Opportunities Fund
Invests in a Portfolio comprised primarily of equity securities of companies
included in the S&P 500 Index that are believed to have strong growth potential.
The Portfolio is managed using a research methodology by the Research Department
of AEFC. Goal is long-term appreciation.
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IDS Growth Fund
Invests in a Portfolio comprised primarily of companies that have above-average
potential for long-term growth as a result of new management, marketing
opportunities or technological superiority.
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IDS New Dimensions Fund
Invests in a Portfolio comprised primarily of companies with
significant growth potential due to superiority in
technology, marketing or management. The Fund frequently
changes its industry mix.
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IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds stocks for the
long term with the goal of capital growth.
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Growth and income funds
These funds focus on securities of medium to large,
well-established companies that offer long-term growth of capital and reasonable
income from dividends and interest.
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks, higher-yielding
equities and bonds. Seeks growth of capital and income.
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IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities purchased are
those recommended by our research analysts as the best from each industry
represented on the index. Offers potential for long-term growth as well as
dividend income.
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IDS Managed Allocation Fund
Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and
foreign debt securities, foreign equity securities and money market instruments.
The Fund provides diversification among these major investment categories and
has a target mix that represents the way the Fund's investments will be
allocated over the long term. Seeks maximum total return.
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IDS Stock Fund
Invests in a Portfolio comprised primarily of common stocks of companies
representing many sectors of the economy. Seeks current income and growth of
capital.
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IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential for growth
of capital and income.
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IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek high current
income and growth of income and capital with reduced volatility.
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IDS Diversified Equity Income Fund
Invests in a Portfolio comprised primarily in high-yielding common stocks to
seek high current income and, secondarily, to benefit from the growth potential
offered by stock investments.
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IDS Mutual
Invests in a Portfolio which seeks to balance between common stocks and senior
securities (preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
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Income funds
The funds in this group invest their assets primarily in corporate bonds or
government securities to seek interest income. Secondary objective is capital
growth.
Risk varies by bond quality.
IDS Extra Income Fund
Invests in a Portfolio comprised mainly in long-term, high-yielding corporate
fixed-income securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
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IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk
bond categories, or the equivalent, and in government bonds.
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IDS Selective Fund
Invests in a Portfolio comprised primarily of high-quality corporate bonds and
other highly rated debt instruments including government securities and
short-term investments. Seeks current income and preservation of capital.
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IDS Federal Income Fund
Invests in a Portfolio comprised primarily of securities issued or guaranteed as
to the timely payment of principal and interest by the U.S. government, its
agencies and instrumentalities. Seeks a high level of current income and safety
of principal consistent with its type of investments.
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Tax-exempt income funds
These funds provide tax-free income by investing in municipal bonds. The income
is generally free from federal income tax, but a portion of the income may be
subject to state and local taxes. Risk varies by bond quality.
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government units, with at
least 75% in the four highest rated, lowest risk bond categories.
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IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to the timely
payment of principal and interest. The insurance feature minimizes credit risk
of the Fund but does not guarantee the market value of the Fund's shares.
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IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to provide
income to residents of each respective state that is exempt from federal, state
and local income taxes. (New York is the only state that is exempt at the local
level.)
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IDS High Yield Tax-Exempt Fund
Invests in a Portfolio comprised primarily of medium- and lower-quality
municipal bonds and notes. Lower-quality securities generally involve greater
risk of principal and income.
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IDS Intermediate Tax-Exempt Fund
Invests in mainly investment-grade bonds and other debt securities with
intermediate-term maturities issued by state and local government units. Goal is
to seek a high level of current income exempt from federal taxes.
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Money market funds
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current
income consistent with these objectives. An investment in
these funds is neither insured nor guaranteed by the U.S. government,
and there can be no assurance that these funds
will be able to maintain a stable net asset value of $1.00
per share. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial paper,
bankers' acceptances, certificates of deposit (CDs) and other bank securities.
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IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and local
governments to seek high current income exempt from federal income taxes.
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For more complete information about any of these funds, including charges and
expenses, you can obtain a prospectus by contacting your financial advisor or
writing to American Express Shareholder Service, P.O. Box 534, Minneapolis, MN
55440-0534. Read it carefully before you invest or send money.
<PAGE>
Quick telephone reference
American Express Redemptions and exchanges, National/Minnesota
Financial Advisors dividend payments or 800-437-3133
Telephone Transaction reinvestments and automatic
Service payment arrangements Mpls./St. Paul area:
671-3800
TTY Service For the hearing impaired 800-846-4852
American Express Automated account information 800-862-7919
Financial Advisors (TouchTone(R) phones only),
Easy Access Line including current fund prices
and performance, account values
and recent account transactions
<PAGE>
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS High Yield Tax-Exempt Fund
IDS Tower 10
Minneapolis, MN 55440-0010
