<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
American American American American
Adjustable Adjustable Adjustable Adjustable
Rate Term Rate Term Rate Term Rate Term
Trust 1996 Trust 1997 Trust 1998 Trust 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities at market value* (note
2)
(including repurchase agreements of $27,747,000;
$46,476,000; $32,816,000 and $17,032,000,
respectively) .............................. $ 221,204,945 452,005,820 460,488,418 267,022,964
Investments in put options (note 5) (cost:
$1,528,800; $2,575,600; $2,613,500 and
$2,010,000, respectively) .................... 30,412 440,335 1,049,577 1,323,278
Cash in bank on demand deposit ................. 53,806 50,802 185,826 145,470
Receivable for investment securities sold ...... -- 10,772,536 9,608,323 5,024,719
Accrued interest receivable .................... 1,583,689 2,552,686 3,179,373 2,573,348
----------- ----------- ----------- -----------
Total assets ............................... 222,872,852 465,822,179 474,511,517 276,089,779
----------- ----------- ----------- -----------
LIABILITIES:
Reverse repurchase agreements payable .......... 25,000,000 90,000,000 65,000,000 36,000,000
Accrued investment management fee .............. 52,649 99,539 108,753 63,524
Accrued administrative fee ..................... 22,564 42,660 46,608 27,225
Accrued interest ............................... 115,218 788,541 55,521 236,641
Payable for federal excise taxes (note 2) ...... 96,670 -- -- --
Other accrued expenses ......................... 47,383 71,137 56,408 41,415
----------- ----------- ----------- -----------
Total liabilities .......................... 25,334,484 91,001,877 65,267,290 36,368,805
----------- ----------- ----------- -----------
Net assets applicable to outstanding capital
stock ........................................ $ 197,538,368 374,820,302 409,244,227 239,720,974
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
REPRESENTED BY:
Capital stock - authorized 1 billion shares of
$0.01 par value; outstanding, 21,874,282;
42,481,599; 47,141,017 and 28,152,572 shares,
respectively (notes 7 and 8) ............... $ 218,743 424,816 471,410 281,526
Additional paid-in capital ..................... 212,231,909 413,478,779 460,593,623 275,899,646
Undistributed net investment income ............ 11,434,011 12,200,609 6,890,639 1,516,163
Accumulated net realized loss on investments ... (21,174,651) (42,707,902) (47,636,669) (32,634,607)
Unrealized depreciation of investments ......... (5,171,644) (8,576,000) (11,074,776) (5,341,754)
----------- ----------- ----------- -----------
Total - representing net assets applicable
to outstanding capital stock ........... $ 197,538,368 374,820,302 409,244,227 239,720,974
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net asset value per share of outstanding
capital stock ................................ $ 9.03 8.82 8.68 8.52
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
* Investments in securities at identified
cost ......................................... $ 224,878,201 458,446,555 469,999,271 271,677,996
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
<TABLE>
<CAPTION>
American American American American
Adjustable Adjustable Adjustable Adjustable
Rate Term Rate Term Rate Term Rate Term
Trust 1996 Trust 1997 Trust 1998 Trust 1999
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
INCOME:
Interest (net of interest expense of $1,362,361;
$3,055,019; $3,124,489 and $1,894,709,
respectively) .............................. $ 6,154,161 11,860,545 12,991,817 7,688,337
Fee income (note 2) ............................ 130,648 356,398 300,962 197,723
------------ ------------ ------------- -------------
Total investment income .................... 6,284,809 12,216,943 13,292,779 7,886,060
------------ ------------ ------------- -------------
EXPENSES (NOTE 3):
Investment management fee ...................... 359,741 671,098 727,704 423,772
Administrative fee ............................. 154,175 287,614 306,057 176,590
Custodian, accounting and transfer agent
fees ......................................... 74,016 100,041 100,051 75,549
Reports to shareholders ........................ 56,387 98,846 80,994 47,395
Audit and legal fees ........................... 26,675 25,900 26,240 24,907
Directors' fees ................................ 7,333 8,833 10,333 8,833
Federal excise taxes (note 2) .................. 96,670 -- -- --
Other expenses ................................. -- 59,505 -- --
------------ ------------ ------------- -------------
Total expenses ............................. 774,997 1,251,837 1,251,379 757,046
------------ ------------ ------------- -------------
Net investment income ...................... 5,509,812 10,965,106 12,041,400 7,129,014
------------ ------------ ------------- -------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS:
Net realized loss on investments (note 4) ...... (3,070,178) (8,355,566) (8,990,424) (6,969,365)
Net realized gain (loss) on closed interest rate
swap contracts ............................... 527,325 1,374,546 (9,831,106) (7,968,599)
Net realized gain on closed futures
contracts .................................... 75,713 148,300 209,151 116,228
------------ ------------ ------------- -------------
Net realized loss on investments ............. (2,467,140) (6,832,720) (18,612,379) (14,821,736)
Net change in unrealized appreciation or
depreciation of investments .................. 779,579 1,647,292 10,658,039 8,773,058
------------ ------------ ------------- -------------
Net loss on investments ...................... (1,687,561) (5,185,428) (7,954,340) (6,048,678)
------------ ------------ ------------- -------------
Net increase in net assets resulting from
operations ............................. $ 3,822,251 5,779,678 4,087,060 1,080,336
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
<TABLE>
<CAPTION>
American American American American
Adjustable Adjustable Adjustable Adjustable
Rate Term Rate Term Rate Term Rate Term
Trust 1996 Trust 1997 Trust 1998 Trust 1999
----------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest and fee income ...................... $ 6,284,809 12,216,943 13,292,779 7,886,060
Expenses ....................................... (774,997) (1,251,837) (1,251,379) (757,046)
----------- ------------- ------------- -------------
Net investment income ...................... 5,509,812 10,965,106 12,041,400 7,129,014
----------- ------------- ------------- -------------
Adjustments to reconcile net investment income to
cash provided by operating expenses:
Change in accrued interest receivable ........ 1,238,442 784,028 1,048,441 94,235
Net amortization of bond discount and
premium .................................... (1,113,530) (2,100,514) (1,804,849) (994,739)
Change in accrued fees and expenses .......... (31,686) 469,996 (257,583) 98,584
----------- ------------- ------------- -------------
Total adjustments .......................... 93,226 (846,490) (1,013,991) (801,920)
----------- ------------- ------------- -------------
Net cash provided by operating
activities ............................... 5,603,038 10,118,616 11,027,409 6,327,094
----------- ------------- ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investments ............. 88,991,602 159,338,925 169,659,830 111,945,755
Purchases of investments ....................... (41,689,620) (68,887,500) (63,564,700) (48,867,190)
Net sales of short-term securities ............. 39,838,995 11,408,866 69,410,303 45,328,307
Cash received from (paid for) interest rate swap
transactions ................................. 527,325 1,374,546 (11,533,881) (9,245,680)
Net variation margin received from futures
contracts .................................... 75,713 148,300 209,151 116,228
----------- ------------- ------------- -------------
Net cash provided by investing
activities ............................... 87,744,015 103,383,137 164,180,703 99,277,420
----------- ------------- ------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments for reverse repurchase
agreements ................................... (45,000,000) (35,000,000) (80,000,000) (49,000,000)
Tender of fund shares (note 8) ................. (42,827,852) (65,033,835) (79,419,655) (47,240,592)
Retirement of fund shares (note 7) ............. (1,289,698) (3,149,477) (3,450,850) (1,740,741)
Distributions paid to shareholders ............. (4,314,211) (10,313,160) (12,211,005) (7,728,042)
----------- ------------- ------------- -------------
Net cash used by financing activities ...... (93,431,761) (113,496,472) (175,081,510) (105,709,375)
----------- ------------- ------------- -------------
Net increase (decrease) in cash ................ (84,708) 5,281 126,602 (104,861)
Cash at beginning of period .................... 138,514 45,521 59,224 250,331
----------- ------------- ------------- -------------
Cash at end of period .................... $ 53,806 50,802 185,826 145,470
----------- ------------- ------------- -------------
----------- ------------- ------------- -------------
Supplemental disclosure of cash flow information:
Cash paid for interest on reverse repurchase
agreements ................................. $ 1,510,810 2,608,695 3,380,326 1,802,243
----------- ------------- ------------- -------------
----------- ------------- ------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
<TABLE>
<CAPTION>
Six Months
Ended 2/28/95 Year Ended
(Unaudited) 8/31/94
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................ $ 5,509,812 17,520,126
Net realized loss on investments ............... (2,467,140) (10,318,058)
Net change in unrealized appreciation or
depreciation of investments .................. 779,579 (9,945,239)
------------- -------------
Net increase (decrease) in net assets
resulting from operations ................... 3,822,251 (2,743,171)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (4,314,211) (12,495,376)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Payments for tender of 4,767,018 shares (note
8) ........................................... (42,827,852) --
Payments for retirement of 146,000 and 142,700
shares, respectively (note 7) ................ (1,229,488) (1,215,470)
------------- -------------
Decrease in net assets from capital share
transactions ................................ (44,057,340) (1,215,470)
------------- -------------
Total decrease in net assets ............... (44,549,300) (16,454,017)
Net assets at beginning of period ................ 242,087,668 258,541,685
------------- -------------
Net assets at end of period .................... $ 197,538,368 242,087,668
------------- -------------
------------- -------------
Undistributed net investment income ............ $ 11,434,011 10,238,410
------------- -------------
------------- -------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
<TABLE>
<CAPTION>
Six Months
Ended 2/28/95 Year Ended
(Unaudited) 8/31/94
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................ $ 10,965,106 31,764,264
Net realized loss on investments ............... (6,832,720) (23,803,088)
Net change in unrealized appreciation or
depreciation of investments .................. 1,647,292 (19,413,596)
------------- -------------
Net increase (decrease) in net assets
resulting from operations ................... 5,779,678 (11,452,420)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (10,313,160) (26,867,223)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Payments for tender of 7,396,113 shares (note
8) ........................................... (65,033,835) --
Payments for retirement of 372,200 and 290,700
shares, respectively (note 7) ................ (3,000,946) (2,437,499)
------------- -------------
Decrease in net assets from capital share
transactions ................................ (68,034,781) (2,437,499)
------------- -------------
Total decrease in net assets ............... (72,568,263) (40,757,142)
Net assets at beginning of period ................ 447,388,565 488,145,707
------------- -------------
Net assets at end of period .................... $ 374,820,302 447,388,565
------------- -------------
------------- -------------
Undistributed net investment income ............ $ 12,200,609 11,548,663
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
Six Months
Ended 2/28/95 Year Ended
(Unaudited) 8/31/94
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................ $ 12,041,400 33,892,114
Net realized loss on investments ............... (18,612,379) (25,012,875)
Net change in unrealized appreciation or
depreciation of investments .................. 10,658,039 (25,676,685)
------------- -------------
Net increase (decrease) in net assets
resulting from operations ................... 4,087,060 (16,797,446)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (12,211,005) (31,740,989)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Payments for tender of 9,135,819 shares (note
8) ........................................... (79,419,655) --
Payments for retirement of 413,100 and 335,000
shares, respectively (note 7) ................ (3,273,925) (2,768,772)
------------- -------------
Decrease in net assets from capital share
transactions ................................ (82,693,580) (2,768,772)
------------- -------------
Total decrease in net assets ............... (90,817,525) (51,307,207)
Net assets at beginning of period ................ 500,061,752 551,368,959
------------- -------------
Net assets at end of period .................... $ 409,244,227 500,061,752
------------- -------------
------------- -------------
Undistributed net investment income ............ $ 6,890,639 7,060,244
------------- -------------
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
Six Months
Ended 2/28/95 Year Ended
(Unaudited) 8/31/94
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................ $ 7,129,014 20,160,682
Net realized loss on investments ............... (14,821,736) (17,443,179)
Net change in unrealized appreciation or
depreciation of investments .................. 8,773,058 (14,015,353)
------------- -------------
Net increase (decrease) in net assets
resulting from operations ................... 1,080,336 (11,297,850)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (7,728,042) (19,270,500)
In excess of net realized gains ................ -- (183,586)
------------- -------------
Total distributions .......................... (7,728,042) (19,454,086)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Payments for tender of 5,535,062 shares (note
8) ........................................... (47,240,592) --
Payments for retirement of 198,600 and 205,100
shares, respectively (note 7) ................ (1,549,618) (1,674,424)
------------- -------------
Decrease in net assets from capital share
transactions ................................ (48,790,210) (1,674,424)
------------- -------------
Total decrease in net assets ............... (55,437,916) (32,426,360)
Net assets at beginning of period ................ 295,158,890 327,585,250
------------- -------------
Net assets at end of period .................... $ 239,720,974 295,158,890
------------- -------------
------------- -------------
Undistributed net investment income ............ $ 1,516,163 2,115,191
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
American Adjustable Rate Term Trusts 1996
(BDJ), 1997 (CDJ), 1998 (DDJ) and 1999 (EDJ)
are registered under the Investment Company
Act of 1940 (as amended) as diversified,
closed-end management investment companies.
BDJ, CDJ, DDJ and EDJ commenced operations on
September 27, 1990; July 24, 1991; January 30,
1992; and September 24, 1992; respectively,
upon completion of initial public offerings of
common stock. Shares of the funds are listed
on the New York Stock Exchange and the Chicago
Stock Exchange. The funds will terminate
operations and distribute all of their
respective net assets to shareholders on or
shortly before March 31, 1996 (BDJ); March 31,
1997 (CDJ); March 31, 1998 (DDJ) and March 31,
1999 (EDJ).
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
INVESTMENTS IN SECURITIES
The values of fixed income securities are
determined using pricing services or prices
quoted by independent brokers. Exchange-listed
options are valued at the last sale price and
open financial futures contracts are valued at
the last settlement price. When market
quotations are not readily available,
securities are valued at fair value according
to methods selected in good faith by the board
of directors. Short-term securities with
maturities less than 60 days are valued at
amortized cost which approximates market
value.
Securities transactions are accounted for on
the date the securities are purchased or sold.
Realized gains and losses are calculated on
the identified-cost basis. Interest income,
including amortization of bond discount and
premium computed on a level-yield basis, is
accrued daily.
OPTION TRANSACTIONS
For hedging purposes, the funds may buy and
sell put and call options, write covered call
options on portfolio securities, write
cash-secured puts, and write call options that
are not covered for cross-hedging purposes.
The risk in writing a call option is that a
fund gives up the opportunity for profit if
the market price of the security increases.
The risk in writing a put option is that a
fund 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 a fund pays a premium whether or not the
option is exercised. A fund also has the
additional risk of not being able to enter
into a closing transaction if a liquid
secondary market does not exist. The funds
also may write over-the-counter options where
the completion of the obligation is dependent
upon the credit standing of another party.
Option contracts are valued daily, and
unrealized appreciation or depreciation is
recorded. A fund will realize a gain or loss
upon expiration or closing of the option
transaction. When an option is 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
against changes in the market, the funds may
buy and sell interest rate futures contracts
and related options. Risks of entering into
futures contracts and related options include
the possibility of 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
fund 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 a fund each
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
day. The variation margin payments are equal
to the daily changes in the contract value and
are recorded as unrealized gains and losses. A
fund recognizes a realized gain or loss when
the contract is closed or expires.
INTEREST RATE TRANSACTIONS
To preserve a return or spread on a particular
investment or portion of its portfolio or for
other non-speculative purposes, the funds may
enter into interest rate swaps and the
purchase or sale of interest rate caps and
floors. Interest rate swaps involve the
exchange of commitments to pay or receive
interest, e.g., an exchange of floating-rate
payments for fixed rate payments. The purchase
of an interest rate cap entitles the
purchaser, to the extent that a specified
index exceeds a predetermined interest rate,
to receive payments of interest on a
contractually based notional principal amount
from the party selling such an interest rate
cap. The purchase of an interest rate floor
entitles the purchaser, to the extent that a
specified index falls below a predetermined
interest rate, to receive payments of interest
on a contractually based notional principal
amount from the party selling such an interest
rate floor.
If forecasts of interest rates and other
market factors are incorrect, investment
performance will diminish compared to what
performance would have been if these
investment techniques were not used. Even if
the forecasts are correct, there is risk that
the positions may correlate imperfectly with
the asset or liability being hedged. Other
risks of entering into these transactions are
that a liquid secondary market may not always
exist, or that another party to a transaction
may not perform.
For interest rate swaps, the funds accrue
weekly, as an increase or decrease to interest
income, the net amount due or owed by the
funds. Interest rate swap, cap and floor
valuations are based on prices quoted by
independent brokers. These valuations
represent the net present value of all future
cash settlement amounts based on implied
forward interest rates. As of February 28,
1995, the funds had no open interest rate swap
agreements.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have
been purchased by the funds on a
forward-commitment or when-issued basis can
take place one month or more after the
transaction date. During this period, such
securities do not earn interest, are subject
to market fluctuations and may increase or
decrease in value prior to their delivery. The
funds maintain, in segregated accounts with
their custodian, securities with a market
value equal to the amount of their purchase
commitments. The purchase of securities on a
when-issued or forward-commitment basis may
increase the volatility of the funds' NAVs to
the extent the funds make such purchases while
remaining substantially fully invested. As of
February 28, 1995, the funds had no
outstanding when-issued or forward
commitments.
Consistent with their ability to purchase
securities on a when-issued or forward-
commitment basis, the funds may enter into
mortgage "dollar rolls" in which the funds
sell securities for delivery in the current
month and simultaneously contract with the
same counterparty to repurchase similar (same
type, coupon and maturity) but not identical
securities. As an inducement to "roll over"
their purchase commitments, the funds receive
negotiated fees. For the six months ended
February 28, 1995, such fees earned by the
funds amounted to $130,648; $356,398; $300,962
and $197,723 for BDJ, CDJ, DDJ and EDJ,
respectively.
FEDERAL TAXES
Each fund's policy is to comply with the
requirements of the Internal Revenue Code
applicable to regulated investment companies
and not be subject to federal income
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
tax. Therefore, no income tax provision is
required. However, BDJ incurred federal excise
taxes of $96,670 ($0.004 per share) on income
retained by the fund during the 1994 excise
tax year.
Net investment income and net realized gains
(losses) may differ for financial statement
and tax purposes primarily because of the
recognition of certain foreign currency gains
(losses) as ordinary income for tax purposes,
and losses deferred due to "wash sale" and
"straddle" 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. The effect on
dividend distributions of certain book-to-tax
differences is presented an as "excess
distribution" in the statement of changes in
net assets and the financial highlights. 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.
DISTRIBUTIONS
The funds pay monthly distributions from net
investment income. Realized capital gains, if
any, will be distributed on an annual basis.
These distributions are recorded as of the
close of business on the ex-dividend date.
Such distributions are payable in cash or,
pursuant to the funds' dividend reinvestment
plan, reinvested in additional shares of the
funds' common stock. Under the plan, fund
shares will be purchased in the open market.
REPURCHASE AGREEMENTS
For repurchase agreements entered into with
certain broker-dealers, the funds along with
other affiliated registered investment
companies may transfer uninvested cash
balances into a joint trading account, the
daily aggregate of which is invested in
repurchase agreements secured by U.S.
government and agency obligations. Securities
pledged as collateral for all individual and
joint repurchase agreements are held by the
funds' custodian bank until maturity of the
repurchase agreements. Provisions for all
agreements ensure the daily market value of
the collateral is in excess of the repurchase
amount in the event of default.
(3) EXPENSES
The funds have entered into the following
agreements with Piper Capital Management
Incorporated (the adviser and administrator):
The investment advisory agreement provides the
adviser with a monthly investment management
fee based on each fund's average weekly net
assets computed at the per-annum rate of
0.35%. For its fee, the adviser provides
investment advice and, in general, conducts
the management and investment activity of the
fund.
The administration agreement provides the
administrator with a monthly fee in an amount
equal to an annualized rate of 0.15% of the
each fund's average weekly net assets. For its
fee, the administrator provides certain
reporting, regulatory and record-keeping
services for the funds.
In addition to the investment management fee
and the administrative fee, the funds are
responsible for paying most other operating
expenses including outside directors' fees and
expenses, custodian fees, registration fees,
printing and shareholder reports, transfer
agent fees and expenses, legal, auditing and
accounting services, insurance, interest,
taxes and other miscellaneous expenses.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(4) SECURITIES
TRANSACTIONS
Cost of purchases and proceeds from sales of
securities (other than temporary investments
in short-term securities) for the six months
ended February 28, 1995, were as follows:
<TABLE>
<CAPTION>
Sales
Purchases Proceeds
----------- ------------
<S> <C> <C>
BDJ .......................................... $ 18,413,992 88,991,602
CDJ .......................................... $ 7,034,889 170,111,461
DDJ .......................................... $ 21,641,424 179,268,153
EDJ .......................................... $ 10,863,492 116,970,474
</TABLE>
During the six months ended February 28, 1995,
the funds paid Piper Jaffray Inc., an
affiliated broker, brokerage commissions of
$850; $1,700; $1,700 and $850 for BDJ, CDJ,
DDJ and EDJ, respectively.
(5) INVESTMENTS IN PUT
OPTIONS
In order to hedge the value of adjustable rate
mortgage securities under certain interest
rate scenarios, each fund purchased four-year
U.S. Treasury note put option contracts. Each
fund will be entitled to a cash payment during
the exercise period if at such time yields on
the then current four-year U.S. Treasury notes
are in excess of the strike yield specified in
the option contracts.
<TABLE>
<CAPTION>
American American American American
Adjustable Adjustable Adjustable Adjustable
Rate Term Rate Term Rate Term Rate Term
Trust 1996 Trust 1997 Trust 1998 Trust 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Number of contracts ..... 2,170 4,060 4,550 2,650
Notional value ........ $ 217,000,000 406,000,000 455,000,000 265,000,000
Purchase price ........ $ 1,528,800 2,575,600 2,613,500 2,010,000
Exercise period ......... 3/1/96-3/31/96 3/1/97-3/31/97 3/1/98-3/31/98 3/1/99-3/31/99
Strike yield ............ 11.25% 11.00% 11.00% 10.50%
</TABLE>
(6) CAPITAL LOSS
CARRYOVER
For federal income tax purposes, the funds had
capital loss carryovers of $18,707,511;
$35,875,182; $29,024,290 and $17,812,871 for
BDJ, CDJ, DDJ and EDJ, respectively, at August
31, 1994. If these loss carryovers are not
offset by subsequent capital gains, they will
expire at various times during 1999 through
2003. It is unlikely the board of directors
will authorize a distribution of any net
realized capital gains until the available
capital loss carryovers have been offset or
expire.
(7) RETIREMENT OF FUND
SHARES
The funds' board of directors has approved a
plan to repurchase shares of the funds in the
open market and retire those shares.
Repurchases may only be made when the previous
day's closing market price was at a discount
from net asset value. Daily repurchases are
limited to 25% of the previous four weeks
average daily trading volume on the New York
Stock Exchange. Under the current plan,
cumulative repurchases in each fund cannot
exceed 3% of the total shares originally
issued. The board of directors will review the
plan every six months and may change the
amount which may be repurchased. The plan was
last reviewed and reapproved by the board of
directors on February 9, 1995. Pursuant to the
plan, the funds have repurchased and retired
the following cumulative number of shares as
of February 28, 1995:
<TABLE>
<CAPTION>
Shares Percent of Shares
Repurchased Originally Issued
------------ -------------------
<S> <C> <C>
BDJ ....................................... 288,700 1.07%
CDJ ....................................... 662,900 1.31%
DDJ ....................................... 748,100 1.31%
EDJ ....................................... 403,700 1.18%
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(8) TENDER OFFER OF
FUND SHARES
On August 22, 1994, shareholders of the funds
approved a fundamental policy that allows
shareholders of BDJ, CDJ, DDJ, and EDJ to
periodically tender their shares back to the
respective fund at net asset value. A tender
of 5% to 25% of the outstanding shares will be
offered annually and is voluntary.
Shareholders may elect not to tender their
shares or may tender only a portion of their
shares.
The first tender offer to repurchase up to 25%
of each fund's outstanding shares was mailed
to shareholders on September 6, 1994. The
deadline for participating in the offer was
October 3, 1994. The repurchase prices were
determined on October 10, 1994, at the close
of the New York Stock Exchange (4 p.m. Eastern
Time). Proceeds of the tender offer were paid
to shareholders on October 17, 1994. The total
proceeds (including tender fees) paid by the
funds and number and percentage of shares
tendered are as follows:
<TABLE>
<CAPTION>
Percentage Shares Proceeds
Tendered Tendered Paid
--------------- --------- ------------
<S> <C> <C> <C>
BDJ .......................................... 18% 4,767,018 $ 42,827,852
CDJ .......................................... 15% 7,396,113 $ 65,033,835
DDJ .......................................... 16% 9,135,819 $ 79,419,655
EDJ .......................................... 16% 5,535,062 $ 47,240,592
</TABLE>
(9) PENDING LITIGATION
A complaint purporting to be a class action
lawsuit has been filed in the United States
District Court for the District of Minnesota,
by Herman D. Gordon, against DDJ and EDJ,
Piper Capital Management Incorporated, Piper
Jaffray Inc., and certain affiliated
individuals. The complaint, which was filed on
October 20, 1994, alleges violations of
federal securities laws. DDJ and EDJ intend to
defend this lawsuit vigorously. Although it is
impossible to predict the outcome, management
believes, based on the facts currently
available, there will be no material adverse
effect on the financial statements of DDJ or
EDJ.
(10) PROPOSED
REORGANIZATION OF
THE FUNDS
The funds' boards of directors have approved a
plan to reorganize the funds, subject to
shareholder approval. In effect, the
reorganization would convert the four funds
from separate closed-end investment companies
into a single open-end mutual fund. The funds'
termination dates would be eliminated and
shares would no longer trade on the New York
Stock Exchange or Chicago Stock Exchange at
market prices. Instead, shareholders could
redeem shares at net asset value on a daily
basis and purchase new shares at net asset
value plus sales charges, if applicable.
The proxy statement will be filed with the
Securities and Exchange Commission (SEC) for
review as promptly as possible. Following the
SEC review, which is expected to take at least
30 days, shareholders will receive a proxy
statement in the mail. The proposal to
reorganize will be voted upon separately for
each fund and must be approved by the vote of
two-thirds of the outstanding shares. It is
anticipated that, if approved, the merger
would occur in August 1995.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(11) QUARTERLY DATA
<TABLE>
<CAPTION>
Net Realized Net Increase
Total and Unrealized (Decrease) in Net Distributions Quarter End
Investment Net Investment Gains (Losses) Assets Resulting From Net Investment Net Asset
Quarter Ended Income Income on Investments from Operations Income Value
- ------------------ ---------- ----------------- ------------------- ------------------ ------------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
<CAPTION>
Per Per Per Per
Amount Share Amount Share Amount Share Amount Share
---------- ----- ----------- ----- ---------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/94 $ 3,467,478 2,960,212 0.13 (3,750,264) (0.16) (790,052) (0.03) (2,177,611) (0.10) 8.91
2/28/95 2,817,331 2,549,600 0.12 2,062,703 0.09 4,612,303 0.21 (2,136,600) (0.09) 9.03
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
$ 6,284,809 5,509,812 0.25 (1,687,561) (0.07) 3,822,251 0.18 (4,314,211) (0.19)
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
<CAPTION>
Per Per Per Per
Amount Share Amount Share Amount Share Amount Share
---------- ----- ----------- ----- ---------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/94 $ 6,734,775 6,055,630 0.15 (10,412,854) (0.23) (4,357,224) (0.08) (5,200,212) (0.12) 8.70
2/28/95 5,482,168 4,909,476 0.12 5,227,426 0.12 10,136,902 0.24 (5,112,948) (0.12) 8.82
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
$ 12,216,943 10,965,106 0.27 (5,185,428) (0.11) 5,779,678 0.16 (10,313,160) (0.24)
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
<CAPTION>
Per Per Per Per
Amount Share Amount Share Amount Share Amount Share
---------- ----- ----------- ----- ---------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/94 $ 7,336,741 6,642,223 0.14 (13,545,000) (0.28) (6,902,777) (0.14) (6,183,665) (0.12) 8.56
2/28/95 5,956,038 5,399,177 0.12 5,590,660 0.12 10,989,837 0.24 (6,027,340) (0.12) 8.68
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
$ 13,292,779 12,041,400 0.26 (7,954,340) (0.16) 4,087,060 0.10 (12,211,005) (0.24)
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
<CAPTION>
Per Per Per Per
Amount Share Amount Share Amount Share Amount Share
---------- ----- ----------- ----- ---------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/94 $ 4,210,736 3,781,356 0.13 (9,724,958) (0.32) (5,943,602) (0.19) (3,917,275) (0.13) 8.39
2/28/95 3,675,324 3,347,658 0.12 3,676,280 0.14 7,023,938 0.26 (3,810,767) (0.13) 8.52
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
$ 7,886,060 7,129,014 0.25 (6,048,678) (0.18) 1,080,336 0.07 (7,728,042) (0.26)
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
---------- ---------- ----- ----------- ----- ---------- ----- ----------- -----
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(12) FINANCIAL
HIGHLIGHTS
Per-share data for a share of capital stock
outstanding throughout each period and
selected information for each period are as
follows:
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
<TABLE>
<CAPTION>
Six Months Period from
Ended 2/28/95 Year Ended Year Ended Year Ended 9/27/90* to
(Unaudited) 8/31/94 8/31/93 8/31/92 8/31/91
------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 9.04 9.60 9.74 9.64 9.53
------ ---------- ---------- ---------- -----------
Operations:
Net investment income .......................... 0.25 0.65 0.75 0.82 0.83
Net realized and unrealized gains (losses) on
investments .................................. (0.07) (0.75) (0.27) 0.07 0.05
------ ---------- ---------- ---------- -----------
Total from operations ........................ 0.18 (0.10) 0.48 0.89 0.88
------ ---------- ---------- ---------- -----------
Distributions to shareholders:
From net investment income ..................... (0.19) (0.46) (0.62) (0.79) (0.77)
------ ---------- ---------- ---------- -----------
Net asset value, end of period ................. $ 9.03 9.04 9.60 9.74 9.64
------ ---------- ---------- ---------- -----------
------ ---------- ---------- ---------- -----------
Per share market value, end of period .......... $ 8.63 8.50 9.50 10.25 10.13
------ ---------- ---------- ---------- -----------
------ ---------- ---------- ---------- -----------
SELECTED INFORMATION
Total investment return, net asset value+ ........ 2.03% (1.06%) 5.18% 9.58% 9.55%
Total investment return, market value** .......... 3.75% (5.94%) (1.37%) 9.29% 9.15%
Net assets at end of period (in millions) ...... $ 197 242 259 262 260
Ratio of expenses to average weekly net
assets*** ...................................... 0.75%++ 0.65% 0.61% 0.62% 0.64%++
Ratio of net investment income to average weekly
net assets*** .................................. 5.36%++ 6.97% 7.91% 8.44% 9.90%++
Portfolio turnover rate (excluding short-term
securities) .................................... 8% 43% 58% 26% 60%
Amount of borrowings outstanding at end of period
(in millions)+++ ............................. $ 25 70 86 70 70
Per-share amount of borrowings outstanding at end
of period .................................... $ 1.14 2.61 3.18 2.60 2.60
Per-share asset coverage of borrowings outstanding
at end of period++++ ......................... $ 10.17 11.65 12.78 12.34 12.24
</TABLE>
* COMMENCEMENT OF OPERATIONS.
** TOTAL INVESTMENT RETURN, MARKET VALUE, IS BASED ON THE
CHANGE IN MARKET PRICE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES
PURSUANT TO THE FUND'S DIVIDEND REINVESTMENT PLAN.
*** INCLUDES 0.09% AND 0.01% FROM FEDERAL EXCISE TAXES IN THE
SIX MONTHS ENDED FEBRUARY 28, 1995 AND FISCAL YEAR 1994,
RESPECTIVELY.
+ TOTAL INVESTMENT RETURN, NET ASSET VALUE, IS BASED ON THE
CHANGE IN NET ASSET VALUE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE.
++ ADJUSTED TO AN ANNUAL BASIS.
+++ SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH
LIQUID, HIGH-GRADE OBLIGATIONS ARE MAINTAINED IN A
SEGREGATED ACCOUNT ARE NOT CONSIDERED BORROWINGS. SEE
FOOTNOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
++++ REPRESENTS NET ASSETS (EXCLUDING BORROWINGS) DIVIDED BY
SHARES OUTSTANDING.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(12) FINANCIAL
HIGHLIGHTS
(CONTINUED)
Per-share data for a share of capital stock
outstanding throughout each period and
selected information for each period are as
follows:
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
<TABLE>
<CAPTION>
Six Months Period from
Ended 2/28/95 Year Ended Year Ended Year Ended 7/24/91* to
(Unaudited) 8/31/94 8/31/93 8/31/92 8/31/91
------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 8.90 9.66 9.68 9.68 9.58
------ ---------- ---------- ---------- -----------
Operations:
Net investment income .......................... 0.27 0.63 0.72 0.78 0.07
Net realized and unrealized gains (losses) on
investments .................................. (0.11) (0.86) (0.10) 0.05 0.03
------ ---------- ---------- ---------- -----------
Total from operations ........................ 0.16 (0.23) 0.62 0.83 0.10
------ ---------- ---------- ---------- -----------
Distributions to shareholders:
From net investment income ..................... (0.24) (0.53) (0.63) (0.80) --
From net realized gains ........................ -- -- (0.01) (0.03) --
------ ---------- ---------- ---------- -----------
Total distributions to shareholders .......... (0.24) (0.53) (0.64) (0.83) --
------ ---------- ---------- ---------- -----------
Net asset value, end of period ................. $ 8.82 8.90 9.66 9.68 9.68
------ ---------- ---------- ---------- -----------
------ ---------- ---------- ---------- -----------
Per share market value, end of period .......... $ 8.25 8.50 9.38 10.00 10.25
------ ---------- ---------- ---------- -----------
------ ---------- ---------- ---------- -----------
SELECTED INFORMATION
Total investment return, net asset value+ ........ 1.80% (2.46%) 6.73% 8.97% 1.04%
Total investment return, market value** .......... (0.13%) (3.96%) 0.04% 5.87% 2.50%
Net assets at end of period (in millions) ...... $ 375 447 488 489 212
Ratio of expenses to average weekly net assets ... 0.65%++ 0.61% 0.58% 0.60% 0.60%++
Ratio of net investment income to average weekly
net assets ..................................... 5.71%++ 6.76% 7.55% 7.99% 7.88%++
Portfolio turnover rate (excluding short-term
securities) .................................... 1% 43% 47% 38% 10%
Amount of borrowings outstanding at end of period
(in millions)+++ ............................. $ 90 125 162 143 50
Per-share amount of borrowings outstanding at end
of period .................................... $ 2.12 2.49 3.20 2.83 2.29
Per-share asset coverage of borrowings outstanding
at end of period++++ ......................... $ 10.94 11.39 12.86 12.51 11.97
</TABLE>
* COMMENCEMENT OF OPERATIONS.
** TOTAL INVESTMENT RETURN, MARKET VALUE, IS BASED ON THE
CHANGE IN MARKET PRICE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES
PURSUANT TO THE FUND'S DIVIDEND REINVESTMENT PLAN.
+ TOTAL INVESTMENT RETURN, NET ASSET VALUE, IS BASED ON THE
CHANGE IN NET ASSET VALUE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE.
++ ADJUSTED TO AN ANNUAL BASIS.
+++ SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH
LIQUID, HIGH-GRADE OBLIGATIONS ARE MAINTAINED IN A
SEGREGATED ACCOUNT ARE NOT CONSIDERED BORROWINGS. SEE
FOOTNOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
++++ REPRESENTS NET ASSETS (EXCLUDING BORROWINGS) DIVIDED BY
SHARES OUTSTANDING.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(12) FINANCIAL
HIGHLIGHTS
(CONTINUED)
Per-share data for a share of capital stock
outstanding throughout each period and
selected information for each period are as
follows:
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
<TABLE>
<CAPTION>
Six Months Period from
Ended 2/28/95 Year Ended Year Ended 1/30/92* to
(Unaudited) 8/31/94 8/31/93 8/31/92
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 8.82 9.67 9.74 9.58
------ ---------- ---------- -----------
Operations:
Net investment income .......................... 0.26 0.60 0.69 0.43
Net realized and unrealized gains (losses) on
investments .................................. (0.16) (0.89) (0.10) 0.08
------ ---------- ---------- -----------
Total from operations ........................ 0.10 (0.29) 0.59 0.51
------ ---------- ---------- -----------
Distributions to shareholders:
From net investment income ..................... (0.24) (0.56) (0.66) (0.35)
------ ---------- ---------- -----------
Net asset value, end of period ................. $ 8.68 8.82 9.67 9.74
------ ---------- ---------- -----------
------ ---------- ---------- -----------
Per share market value, end of period .......... $ 8.13 8.38 9.63 9.88
------ ---------- ---------- -----------
------ ---------- ---------- -----------
SELECTED INFORMATION
Total investment return, net asset value+ ........ 1.30% (3.18%) 6.24% 5.49%
Total investment return, market value** .......... 0.08% (7.48%) 4.23% 2.31%
Net assets at end of period (in millions) ...... $ 409 500 551 555
Ratio of expenses to average weekly net assets ... 0.59%++ 0.60% 0.58% 0.58%++
Ratio of net investment income to average weekly
net assets ..................................... 5.70%++ 6.39% 7.25% 7.70%++
Portfolio turnover rate (excluding short-term
securities) .................................... 4% 39% 39% 41%
Amount of borrowings outstanding at end of period
(in millions)+++ ............................. $ 65 145 145 145
Per-share amount of borrowings outstanding at end
of period .................................... $ 1.38 2.56 2.54 2.54
Per-share asset coverage of borrowings outstanding
at end of period++++ ......................... $ 10.06 11.38 12.21 12.28
</TABLE>
* COMMENCEMENT OF OPERATIONS.
** TOTAL INVESTMENT RETURN, MARKET VALUE, IS BASED ON THE
CHANGE IN MARKET PRICE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES
PURSUANT TO THE FUND'S DIVIDEND REINVESTMENT PLAN.
+ TOTAL INVESTMENT RETURN, NET ASSET VALUE, IS BASED ON THE
CHANGE IN NET ASSET VALUE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE.
++ ADJUSTED TO AN ANNUAL BASIS.
+++ SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH
LIQUID, HIGH-GRADE OBLIGATIONS ARE MAINTAINED IN A
SEGREGATED ACCOUNT ARE NOT CONSIDERED BORROWINGS. SEE
FOOTNOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
++++ REPRESENTS NET ASSETS (EXCLUDING BORROWINGS) DIVIDED BY
SHARES OUTSTANDING.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(12) FINANCIAL
HIGHLIGHTS
(CONTINUED)
Per-share data for a share of capital stock
outstanding throughout each period and
selected information for each period are as
follows:
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
<TABLE>
<CAPTION>
Six Months Period from
Ended 2/28/95 Year Ended 9/24/92* to
(Unaudited) 8/31/94 8/31/93
------------- ---------- -----------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 8.71 9.61 9.58
----- ---------- -----------
Operations:
Net investment income .......................... 0.25 0.60 0.60
Net realized and unrealized losses on
investments .................................. (0.18) (0.93) (0.04)
----- ---------- -----------
Total from operations ........................ 0.07 (0.33) 0.56
----- ---------- -----------
Distributions to shareholders:
From net investment income ..................... (0.26) (0.56) (0.53)
In excess of net realized gains ................ -- (0.01) --
----- ---------- -----------
Total distributions to shareholders .......... (0.26) (0.57) (0.53)
----- ---------- -----------
Net asset value, end of period ................. $ 8.52 8.71 9.61
----- ---------- -----------
----- ---------- -----------
Per share market value, end of period .......... $ 7.88 8.25 9.63
----- ---------- -----------
----- ---------- -----------
SELECTED INFORMATION
Total investment return, net asset value+ ........ 0.93% (3.61%) 6.05%
Total investment return, market value** .......... (1.31%) (8.75%) 1.62%
Net assets at end of period (in millions) ...... $ 240 295 328
Ratio of expenses to average weekly net assets ... 0.61%++ 0.60% 0.57%++
Ratio of net investment income to average weekly
net assets ..................................... 5.77%++ 6.40% 6.76%++
Portfolio turnover rate (excluding short-term
securities) .................................... 4% 35% 40%
Amount of borrowings outstanding at end of period
(in millions)+++ ............................. $ 36 85 102
Per-share amount of borrowings outstanding at end
of period .................................... $ 1.28 2.51 3.00
Per-share asset coverage of borrowings outstanding
at end of period++++ ......................... $ 9.80 11.22 12.61
</TABLE>
* COMMENCEMENT OF OPERATIONS.
** TOTAL INVESTMENT RETURN, MARKET VALUE, IS BASED ON THE
CHANGE IN MARKET PRICE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES
PURSUANT TO THE FUND'S DIVIDEND REINVESTMENT PLAN.
+ TOTAL INVESTMENT RETURN, NET ASSET VALUE, IS BASED ON THE
CHANGE IN NET ASSET VALUE OF A SHARE DURING THE PERIOD AND
ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE.
++ ADJUSTED TO AN ANNUAL BASIS.
+++ SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH
LIQUID, HIGH-GRADE OBLIGATIONS ARE MAINTAINED IN A
SEGREGATED ACCOUNT ARE NOT CONSIDERED BORROWINGS. SEE
FOOTNOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
++++ REPRESENTS NET ASSETS (EXCLUDING BORROWINGS) DIVIDED BY
SHARES OUTSTANDING.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MORTGAGE-BACKED SECURITIES (77.5%):
U.S. AGENCY ADJUSTABLE-RATE MORTGAGES (43.0%):
7.41%, FHLMC, 10/1/22 .............................. $ 2,976,706 3,039,958
6.37%, FHLMC, 7/1/23 ................................. 7,543,059 7,651,490
6.07%, FHLMC, 9/1/23 ................................. 1,619,298 1,601,081
6.88%, FHLMC, 6/1/21 ................................. 2,711,992 2,774,693
7.25%, FHLMC, 11/1/16 ................................ 10,395,903(b) 10,493,313
7.41%, FHLMC, 6/1/18 ................................. 2,243,436 2,285,500
6.93%, FHLMC, 5/1/19 ................................. 2,244,192 2,279,246
7.04%, FHLMC, 10/1/18 ................................ 7,158,192(b) 7,274,513
7.37%, FHLMC, 10/1/19 ................................ 2,744,581 2,815,337
6.50%, FHLMC, 8/1/20 ................................. 10,918,192 11,054,669
6.00%, FHLMC, 1/1/24 ................................. 1,679,507 1,679,507
6.24%, FHLMC, 1/1/24 ................................. 1,890,572 1,904,751
6.49%, FNMA, 7/1/17 .................................. 1,945,441 1,929,625
6.62%, FNMA, 4/1/18 .................................. 5,218,850 5,287,321
6.96%, FNMA, 1/1/28 .................................. 2,507,498 2,549,023
7.07%, FNMA, 5/1/27 .................................. 1,847,177 1,881,239
6.71%, FNMA, 1/1/20 .................................. 2,185,878 2,236,415
6.03%, FNMA, 12/1/23 ................................. 3,794,163 3,749,088
6.07%, FNMA, 8/1/23 .................................. 2,305,412 2,339,993
7.00%, GNMA II, 8/20/23 .............................. 5,105,190(b) 5,143,479
6.00%, GNMA II, 5/20/21 .............................. 4,909,887(b) 4,897,612
------------
84,867,853
------------
COLLATERALIZED MORTGAGE OBLIGATIONS AND
OTHER MORTGAGE-BACKED SECURITIES (34.5%):
ADJUSTABLE RATE (34.5%):
6.48%, Citicorp Mortgage Securities, Series 1991-14,
Class M, 9/25/21 .................................... 5,879,874 5,802,701
7.36%, Columbia Savings and Loan, Series 1987-1, Class
A, 12/1/17 .......................................... 396,157 396,977
7.79%, Donaldson, Lufkin and Jenrette, Series
1992-MF3, Class A3, 5/25/22 ......................... 6,000,000 6,093,750
7.00%, FHLMC, Series 1249, Class A, 4/15/22 .......... 15,144,357 15,115,885
6.47%, Meridian Asset Acceptance Corporation, Series
1991-1, Class A1, 4/27/20 ........................... 2,400,677 2,367,668
5.69%, Merrill Lynch Mortgage Investors, Series
1993-D, Class A1-2, 10/25/23 ........................ 2,000,000 1,924,380
6.00%, Merrill Lynch Mortgage Investors, Series
1993-H, Class A1-2, 10/25/23 ........................ 2,320,000 2,228,105
6.00%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-10, Class M1, 11/25/23 .................. 13,226,235 13,160,104
7.01%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-8, Class M2, 8/25/23 .................... 5,115,940 4,860,143
6.63%, Residential Funding Corporation, Series
1992-S25, Class A, 7/25/22 .......................... 5,054,286 5,065,254
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
7.54%, Residential Funding Corporation, Series
1993-S8, Class A, 2/25/23 ......................... $ 5,651,338 5,722,601
6.70%, Ryland Mortgage Securities, Series 1991-B1,
Class 1, 3/25/20 .................................... 1,770,646 1,784,756
7.04%, Salomon Brothers Mortgage, Series 1987-2, Class
A, 12/25/16 ......................................... 3,122,465 3,044,403
5.61%, Salomon Brothers Mortgage, Series 1988-3, Class
A, 6/25/17 .......................................... 751,830 732,094
------------
68,298,821
------------
Total Mortgage-Backed Securities
(cost: $157,202,562) ............................... 153,166,674
------------
MUNICIPAL ZERO-COUPON SECURITIES (C) (20.4%):
Alabama State Public School and College, 6.73%,
11/1/96 ............................................. 725,000 662,469
Alief, Texas, School District, 4.24%, 2/15/97 ........ 760,000 690,650
Arlington, Texas, Independent School District,
6.10%-6.78%, 2/15/96 ................................ 680,000 649,400
Bellevue, Washington Convention Center, 6.06%,
12/1/96 ............................................. 1,000,000 918,225
California State Custodial Receipts, 4.63%-4.68%,
7/25/95-4/25/96 ..................................... 13,209,863 12,510,606
Clairton, Pennsylvania, School District, 6.83%,
11/1/96 ............................................. 1,035,000 949,613
Corpus Christi, Texas, Series A, 6.78%, 11/1/96 ...... 735,000 678,488
Eastern Illinois University Facility, 5.67%,
10/1/96 ............................................. 1,055,000 985,106
Illinois Educational Facility, 6.07%, 7/1/96 ......... 5,550,000 5,223,938
Maricopa County, Arizona, School District, 6.48%,
7/1/96 .............................................. 3,050,000 2,863,188
Mesa, Arizona, General Obligation, 6.01%, 7/1/96 ..... 1,845,000 1,729,688
North Slope Boro, Alaska, Series I, 5.07%-5.72%,
6/30/96 ............................................. 9,800,000 9,163,000
Orleans Parish, Louisiana, School Board, 5.83%,
8/1/96 .............................................. 400,000 426,000
Phoenix, Arizona, Excise Tax Parking Revenue, 6.22%,
7/1/96 .............................................. 1,000,000 940,000
Illinois State Sales Tax Revenue,
6.38%, 6/15/96 ...................................... 500,000 471,875
University of Illinois Auxillary Facility, 6.01%,
4/1/96 .............................................. 1,140,000 1,085,850
Vermont State College Savers, General Obligation,
5.75%, 10/15/96 ..................................... 370,000 343,175
------------
Total Municipal Zero-Coupon Securities
(cost: $39,928,639) ................................ 40,291,271
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
SHORT-TERM SECURITIES (14.0%):
Repurchase agreement with Morgan Stanley in a joint
trading account collateralized by U.S. government
agency securities, acquired on 2/28/95, accrued
interest at repurchase date of $4,702, 6.10%, 3/1/95
(cost: $27,747,000) ............................... $ 27,747,000 27,747,000
------------
Total Investments in Securities
(cost: $224,878,201) (d) ......................... $ 221,204,945
------------
------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
<TABLE>
<S> <C>
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN
NOTE 2 TO THE FINANCIAL STATEMENTS.
(B) ON FEBRUARY 28, 1995, SECURITIES VALUED AT $26,618,103 ARE
PLEDGED AS COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE
REPURCHASE AGREEMENTS:
</TABLE>
<TABLE>
<CAPTION>
NAME OF
BROKER AND
DESCRIPTION
ACQUISITION ACCRUED OF
AMOUNT DATE RATE* DUE INTEREST COLLATERAL
- ------------ ---------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
$25,000,000 2/2/95 6.15% 5/30/95 $115,218 (1)
*INTEREST RATE IS AS OF FEBRUARY 28, 1995. RATE IS BASED ON THE LONDON
INTERBANK OFFERED RATE (LIBOR) AND RESETS MONTHLY.
</TABLE>
<TABLE>
<S> <C> <C>
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY: GNMA II, ARM, 7.00%, 8/20/23, $5,105,190 PAR.
GNMA II, ARM, 6.00%, 5/20/21, $4,909,887 PAR.
FHLMC, ARM, 7.25%, 11/1/16, $10,395,903 PAR.
FHLMC, ARM, 7.04%, 10/1/18, $5,986,419 PAR.
(C) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE
EFFECTIVE YIELD ON THE DATE OF PURCHASE.
(D) AT FEBRUARY 28, 1995, FOR FEDERAL INCOME TAX PURPOSES, THE COST
OF INVESTMENTS IN SECURITIES, INCLUDING THE PUT OPTIONS DESCRIBED
IN NOTE 5 TO THE FINANCIAL STATEMENTS, APPROXIMATED $226,407,001.
THE AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 465,593
GROSS UNREALIZED DEPRECIATION ...... (5,637,237)
-------------
NET UNREALIZED DEPRECIATION .... $ (5,171,644)
-------------
-------------
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MORTGAGE-BACKED SECURITIES (87.2%):
U.S. AGENCY ADJUSTABLE-RATE MORTGAGES (46.4%):
7.10%, FHLMC, 5/1/20 ............................... $ 2,485,069 2,545,208
6.86%, FHLMC, 6/1/21 ................................. 4,735,260(b) 4,868,416
7.41%, FHLMC, 10/1/22 ................................ 5,953,412 6,079,922
6.07%, FHLMC, 9/1/23 ................................. 1,619,298 1,601,081
6.34%, FHLMC, 8/1/19 ................................. 2,013,726 2,038,898
7.30%, FHLMC, 1/1/19 ................................. 209,536 214,118
5.94%, FHLMC, 4/1/22 ................................. 1,050,711 1,065,484
6.10%, FHLMC, 10/1/23 ................................ 1,684,822 1,695,352
6.00%, FHLMC, 1/1/24 ................................. 2,522,527(b) 2,522,527
6.24%, FHLMC, 1/1/24 ................................. 4,145,150 4,176,238
7.53%, FNMA, 1/1/18 .................................. 2,137,600 2,180,352
6.99%, FNMA, 1/1/29 .................................. 3,856,473 3,909,499
6.97%, FNMA, 5/1/18 .................................. 1,635,526 1,656,984
7.07%, FNMA, 8/1/27 .................................. 9,372,030(b) 9,506,706
6.62%, FNMA, 4/1/18 .................................. 8,744,722 8,859,452
6.96%, FNMA, 1/1/28 .................................. 1,355,888 1,378,341
6.98%, FNMA, 3/1/28 .................................. 10,724,485(b) 10,871,947
6.62%, FNMA, 1/1/20 .................................. 3,252,843(b) 3,252,843
6.83%, FNMA, 11/1/20 ................................. 5,837,002 5,917,261
6.78%, FNMA, 12/1/20 ................................. 8,316,137(b) 8,430,484
6.28%, FNMA, 5/1/21 .................................. 7,408,603(b) 7,552,107
7.32%, FNMA, 8/1/21 .................................. 3,956,202(b) 4,017,998
6.01%, FNMA, 12/1/23 ................................. 3,897,917 3,934,441
6.08%, FNMA, 12/1/23 ................................. 3,813,400(b) 3,856,301
6.12%, FNMA, 1/1/24 .................................. 3,593,808(b) 3,631,974
6.13%, FNMA, 7/1/23 .................................. 4,987,106 5,050,691
5.96%, FNMA, 2/1/24 .................................. 8,857,861(b) 8,780,355
4.01%, FNMA, 3/1/24 .................................. 4,505,705 4,432,487
6.63%, GNMA II, 11/20/21 ............................. 4,017,589(b) 4,050,212
6.50%, GNMA II, 6/20/22 .............................. 1,213,992 1,227,650
6.75%, GNMA II, 6/20/23 .............................. 1,730,580 1,737,069
6.50%, GNMA II, 10/20/23 ............................. 4,613,352(b) 4,590,285
6.50%, GNMA II, 11/20/23 ............................. 4,599,503(b) 4,576,506
5.50%, GNMA II, 12/20/23 ............................. 9,147,443(b) 8,735,808
4.50%, GNMA II, 5/20/24 .............................. 5,025,168(b) 4,761,347
4.50%, GNMA II, 4/20/24 .............................. 739,542 685,926
4.50%, GNMA II, 6/20/24 .............................. 4,292,885(b) 4,067,509
6.00%, GNMA II, 8/20/21 .............................. 7,807,772(b) 7,798,012
6.13%, GNMA II, 10/20/21 ............................. 7,708,113(b) 7,606,906
------------
173,864,697
------------
COLLATERALIZED MORTGAGE OBLIGATIONS AND OTHER MORTGAGE-BACKED SECURITIES (40.8%):
ADJUSTABLE RATE (40.8%):
7.79%, Donaldson, Lufkin and Jenrette, Series
1992-MF3, Class A3, 5/25/22 ......................... 17,000,000 17,265,621
7.17%, First Federal of Rochester, Series 1988-SE1,
Class A, 10/25/18 ................................... 3,122,188 3,091,942
6.78%, Glendale Federal Savings, Series 1989-5, Class
A, 4/1/29 ........................................... 19,295,932 19,155,265
6.89%, Greenwich Capital Acceptance, Series 1992-LB5,
Class A3, 7/25/22 ................................... 12,883,000 12,432,095
6.76%, Merrill Lynch Mortgage Investors, Series
1988-M, Class A, 10/1/18 ............................ 3,386,628 3,360,009
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
6.81%, Merrill Lynch Mortgage Investors, Series
1993-C, Class A4, 3/15/18 ......................... $ 7,000,000 6,816,250
5.69%, Merrill Lynch Mortgage Investors, Series
1993-D, Class A1-2, 10/25/23 ........................ 6,000,000 5,773,140
6.00%, Merrill Lynch Mortgage Investors, Series
1993-H, Class A1-2, 10/25/23 ........................ 6,523,000 6,264,624
6.35%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-11, Class M1, 12/1/23 ................... 2,890,709 2,878,063
7.19%, Prudential Home Mortgage Securities, Series
1991-9, Class A1, 7/25/21 ........................... 7,220,737 7,286,518
6.63%, Residential Funding Corporation, Series
1992-S25, Class A, 7/25/22 .......................... 12,635,715 12,663,134
7.54%, Residential Funding Corporation, Series
1993-S8, Class A, 2/25/23 ........................... 8,477,007 8,583,902
7.23%, Resolution Trust Corporation, Series 1991-10,
Class A1, 5/25/21 ................................... 5,604,194 5,574,267
6.74%, Resolution Trust Corporation, Series 1991-2,
Class B, 4/25/21 .................................... 5,000,000 4,997,000
7.39%, Resolution Trust Corporation, Series 1991-8,
Class A-1, 12/25/20 ................................. 12,625,787 12,955,241
6.78%, Resolution Trust Corporation, Series 1992-4,
Class B2, 7/25/28 ................................... 15,000,601 14,871,690
7.39%, Resolution Trust Corporation, Series 1992-9,
Class A6, 7/25/20 ................................... 2,053,453 2,004,684
6.70%, Ryland Mortgage Securities, Series 1991-B1,
Class 1, 3/25/20 .................................... 6,843,105 6,897,636
------------
152,871,081
------------
Total Mortgage-Backed Securities
(cost: $335,696,515) ............................... 326,735,778
------------
MUNICIPAL ZERO-COUPON SECURITIES (C) (21.0%):
Austin, Texas, Public Parking, 5.72%-6.03%, 9/1/97 ... 5,000,000 4,443,750
Bellevue, Washington, Convention Center, 6.24%,
12/1/97 ............................................. 1,370,000 1,188,544
Bismark, North Dakota, Hospital Revenue, 6.19%,
5/1/97 .............................................. 2,530,000 2,289,650
Blue Ridge Texas, West Municipal Utility General
Obligation, 6.09%, 4/1/97 ........................... 440,000 399,850
Boulder, Colorado, School District, 6.26%,
12/15/97 ............................................ 4,000,000 3,530,000
Calallen, Texas, School District, 5.88%, 2/15/98 ..... 1,485,000 1,282,669
Cambria, Pennsylvania, School District, 6.39%,
8/15/97 ............................................. 1,030,000 912,838
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
Cypress-Fairbanks, Texas, School District,
5.82%-5.93%, 2/1/98 ............................... $ 8,340,000 7,203,675
Eastern Camden, New Jersey, School District, 5.88%,
9/1/97 .............................................. 500,000 442,500
Illinois State College Savers, 5.93%, 8/1/98 ......... 890,000 744,263
Intermountain Power Authority, 3.10%, 7/1/97 ......... 470,000 478,813
Irving, Texas, School District, 6.31%, 2/15/97 ....... 960,000 871,200
Kansas City, Kansas Utility Systems Revenue,
6.24%-6.26%, 9/1/97 ................................. 6,520,000 5,805,412
Kentucky Development Finance Authority, 5.60%-6.08%,
11/1/97 ............................................. 1,980,000 1,732,500
Kentucky Turnpike Revenue, 3.95%, 7/1/97 ............. 1,000,000 1,057,500
Lewisburg, Pennsylvania, School District, 6.29%,
8/15/97 ............................................. 500,000 444,375
Louisiana College Savers, General Obligation, 5.99%,
7/1/97 .............................................. 4,000,000 3,580,000
Lubbock, Texas, Electric Power, 6.29%, 4/15/97 ....... 1,360,000 1,234,200
Maricopa County, Arizona, School District, 5.47%,
7/1/97 .............................................. 1,010,000 900,163
Massachusetts, General Obligation Bonds, 5.96%-5.98%,
6/1/98 .............................................. 12,345,000 10,462,388
McHenry County, Illinois, Conservation District,
5.88%, 2/1/98 ....................................... 1,580,000 1,360,775
Michigan Municipal Bond Authority, 6.02%, 5/15/97 .... 1,500,000 1,338,750
North Montgomery, Indiana, School Bond, 5.82%-5.98%,
1/1/97-7/1/98 ....................................... 2,100,000 1,834,875
North Slope Boro, Alaska, 5.88%-6.39%,
6/30/97-6/30/98 ..................................... 12,000,000 10,340,000
Oklahoma City, Oklahoma, Water and Sewer, 5.83%,
7/1/97 .............................................. 1,000,000 898,750
Rosemont, Illinois, Various Purpose, 6.22%,
12/1/97 ............................................. 2,670,000 2,319,563
Sioux City, Iowa, Hospital Revenue, 2.93%, 1/1/97 .... 11,510,000 11,697,039
------------
Total Municipal Zero-Coupon Securities
(cost: $76,274,040) ................................ 78,794,042
------------
SHORT-TERM SECURITIES (12.4%):
Repurchase agreement with Morgan Stanley in a joint
trading account collateralized by U.S. government
agency securities, acquired on 2/28/95, accrued
interest at repurchase date of $7,707, 5.97%, 3/1/95
(cost: $46,476,000) ................................. 46,476,000 46,476,000
------------
Total Investments in Securities
(cost: $458,446,555) (d) ......................... $ 452,005,820
------------
------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
NOTES TO INVESTMENTS IN SECURITIES:
<TABLE>
<S> <C>
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN
NOTE 2 TO THE FINANCIAL STATEMENTS.
(B) ON FEBRUARY 28, 1995, SECURITIES VALUED AT $97,556,369 WERE
PLEDGED AS COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE
REPURCHASE AGREEMENTS:
</TABLE>
<TABLE>
<CAPTION>
NAME OF
BROKER AND
DESCRIPTION
ACQUISITION ACCRUED OF
AMOUNT DATE RATE* DUE INTEREST COLLATERAL
- ------------ ---------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
$50,000,000 2/1/95 6.16% 8/1/95 $239,652 (1)
40,000,000 12/15/94 6.50% 3/15/95 548,889 (2)
- ------------ ---------
$90,000,000 $788,541
- ------------ ---------
- ------------ ---------
*INTEREST RATE IS AS OF FEBRUARY 28, 1995. RATES ARE BASED ON THE
LONDON INTERBANK OFFERED RATE (LIBOR) AND RESET MONTHLY OR QUARTERLY.
</TABLE>
<TABLE>
<S> <C> <C>
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY: GNMA II, ARM, 4.50%, 5/20/24, $5,025,168 PAR.
GNMA II, ARM, 4.50%, 6/20/24, $4,292,885 PAR.
GNMA II, ARM, 6.63%, 11/20/21, $4,017,589 PAR.
FNMA, ARM, 7.07%, 8/1/27, $2,343,008 PAR.
FNMA, ARM, 6.78%, 12/1/20, $8,316,137 PAR.
FNMA, ARM, 7.32%, 8/1/21, $3,956,202 PAR.
FNMA, ARM, 6.08%, 12/1/23, $3,813,400 PAR.
FNMA, ARM, 6.12%, 1/1/24, $3,194,496 PAR.
FNMA, ARM, 5.96%, 2/1/24, $8,857,861 PAR.
FNMA, ARM, 6.62%, 1/1/20, $3,252,843 PAR.
FHLMC, ARM, 6.86%, 6/1/21, $4,735,260 PAR.
FHLMC, ARM, 6.00%, 1/1/24, $2,522,527 PAR.
(2) MORGAN STANLEY: GNMA II, ARM, 6.00%, 8/20/21, $7,807,772 PAR.
GNMA II, ARM, 6.13%, 10/20/21, $7,708,113 PAR.
GNMA II, ARM, 6.50%, 11/20/23, $4,599,503 PAR.
GNMA II, ARM, 6.50%, 10/20/23, $4,613,352 PAR.
GNMA II, ARM, 5.50%, 12/20/23, $9,147,443 PAR.
FNMA, ARM, 6.28%, 5/1/21, $910,752 PAR.
FNMA, ARM, 7.07%, 8/1/27, $5,154,617 PAR.
FNMA, ARM, 6.98%, 3/1/28, $3,865,529 PAR.
(C) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE
EFFECTIVE YIELD ON THE DATE OF PURCHASE.
(D) AT FEBRUARY 28, 1995, FOR FEDERAL INCOME TAX PURPOSES, THE COST
OF INVESTMENTS IN SECURITIES, INCLUDING THE PUT OPTIONS DESCRIBED
IN NOTE 5 TO THE FINANCIAL STATEMENTS, APPROXIMATED $461,022,155.
THE AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 2,550,712
GROSS UNREALIZED DEPRECIATION ...... (11,126,712)
-------------
NET UNREALIZED DEPRECIATION .... $ (8,576,000)
-------------
-------------
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MORTGAGE-BACKED SECURITIES (88.6%):
U.S. AGENCY ADJUSTABLE-RATE MORTGAGES (45.4%):
7.05%, FHLMC, 2/1/22 ............................... $ 12,510,519(b) 12,655,172
7.14%, FHLMC, 2/1/22 ................................. 17,026,683(b) 17,420,340
6.12%, FHLMC, 8/1/23 ................................. 7,140,906(b) 7,123,054
7.13%, FHLMC, 11/1/16 ................................ 3,702,454 3,732,518
6.00%, FHLMC, 5/1/17 ................................. 3,778,140 3,791,401
5.96%, FHLMC, 1/1/21 ................................. 6,236,161(b) 6,261,106
6.10%, FHLMC, 10/1/23 ................................ 3,369,644(b) 3,390,704
6.93%, FNMA, 9/1/17 .................................. 4,086,944 4,145,673
6.97%, FNMA, 5/1/18 .................................. 6,371,737(b) 6,455,334
7.04%, FNMA, 7/1/17 .................................. 6,700,593 6,784,350
7.93%, FNMA, 7/1/19 .................................. 2,910,727 2,933,922
6.73%, FNMA, 11/1/20 ................................. 5,272,421(b) 5,236,147
6.69%, FNMA, 11/1/17 ................................. 10,572,300 10,691,238
7.15%, FNMA, 7/1/19 .................................. 4,570,437 4,687,532
6.73%, FNMA, 11/1/21 ................................. 7,893,764 8,012,170
7.01%, FNMA, 10/1/20 ................................. 3,773,294 3,615,268
6.03%, FNMA, 12/1/23 ................................. 1,686,295 1,666,261
6.10%, FNMA, 2/1/24 .................................. 4,328,577 4,312,344
6.00%, GNMA II, 7/20/22 .............................. 8,641,928(b) 8,539,262
6.50%, GNMA II, 7/20/22 .............................. 8,338,926(b) 8,380,621
6.00%, GNMA II, 4/20/22 .............................. 7,229,997 7,166,734
6.00%, GNMA II, 5/20/22 .............................. 3,222,573(b) 3,194,375
6.00%, GNMA II, 6/20/22 .............................. 8,907,032 8,851,363
6.75%, GNMA II, 6/20/23 .............................. 8,652,899 8,685,347
7.00%, GNMA II, 8/20/23 .............................. 9,556,745(b) 9,628,421
6.50%, GNMA II, 10/20/23 ............................. 9,226,707(b) 9,180,573
4.50%, GNMA II, 5/20/24 .............................. 3,854,407 3,652,050
4.50%, GNMA II, 4/20/24 .............................. 6,189,564 5,740,821
------------
185,934,101
------------
COLLATERALIZED MORTGAGE OBLIGATIONS AND
OTHER MORTGAGE-BACKED SECURITIES (43.2%):
ADJUSTABLE RATE (43.2%):
7.36%, Columbia Savings and Loan, Series 1987-1, Class
A, 12/1/17 .......................................... 594,234 595,464
7.79%, Donaldson, Lufkin and Jenrette, Series
1992-MF3, Class A3, 5/25/22 ......................... 5,000,000 5,078,125
7.17%, First Federal of Rochester, Series 1988-SE1,
Class A, 10/25/18 ................................... 6,634,649 6,570,376
6.37%, Glendale Federal Savings, Series 1988-3,
8/1/28 .............................................. 6,740,191 6,651,726
6.47%, Meridian Asset Acceptance Corporation, Series
1991-1, Class A1, 4/27/20 ........................... 5,404,404 5,330,094
7.13%, Merrill Lynch Mortgage Investor, Series 88-V,
Class A, 1/25/19 . 1,155,110 1,145,003
6.66%, Merrill Lynch Mortgage Investors, Series
1992-C, Class A-2, 6/15/17 .......................... 25,000,000 24,926,750
5.69%, Merrill Lynch Mortgage Investors, Series
1993-D, Class A1-2, 10/25/23 ........................ 6,000,000 5,773,140
6.00%, Merrill Lynch Mortgage Investors, Series
1993-H, Class A1-2, 10/25/23 ........................ 7,340,000 7,049,263
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
5.24%, Merrill Lynch Mortgage Investors, Series 88-C,
3/1/18 ............................................ $ 3,740,036 3,524,984
6.30%, Paine Webber Mortgage Acceptance, Series
1993-3, Class M2, 4/25/23 ........................... 2,720,913 2,666,494
6.35%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-11, Class M1, 12/1/23 ................... 2,951,731 2,938,817
7.01%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-8, Class M1, 8/25/23 .................... 6,771,161 6,720,377
7.19%, Prudential Home Mortgage Securities, Series
1991-9, Class A1, 7/25/21 ........................... 7,220,653 7,286,434
7.19%, Residential Funding Corporation, Series
1992-S8, Class A, 3/25/22 ........................... 12,752,859 12,799,407
6.63%, Residential Funding Corporation, Series
1992-S25, Class A, 7/25/22 .......................... 12,635,715 12,663,134
7.54%, Residential Funding Corporation, Series
1993-S8, Class A, 2/25/23 ........................... 8,477,007 8,583,902
6.85%, Resolution Trust Corporation, Series 1992-1,
Class A1, 5/25/28 ................................... 3,793,198 3,770,325
5.68%, Resolution Trust Corporation, Series 1992-3,
Class B2, 9/25/19 ................................... 8,094,806 8,013,858
6.78%, Resolution Trust Corporation, Series 1992-4,
Class B2, 7/25/28 ................................... 10,000,401 9,914,460
7.06%, Resolution Trust Corporation, Series 1992-6,
Class B3, 1/25/26 ................................... 13,342,983 13,142,838
6.70%, Ryland Mortgage Securities, Series 1991-B1,
Class 1, 3/25/20 .................................... 5,663,259 5,708,389
6.32%, Sears Mortgage Securities, Series 1991-K, Class
A1, 9/25/21 ......................................... 16,149,816 15,685,508
------------
176,538,868
------------
Total Mortgage-Backed Securities
(cost: $373,289,389) ............................... 362,472,969
------------
MUNICIPAL ZERO-COUPON SECURITIES (C) (15.9%):
Allegheny County, Pennsylvania, 4.69%, 2/15/98 ....... 2,000,000 1,905,000
Boulder, Larimer and Weld County, South Dakota, School
District, 5.58%, 12/15/98 ........................... 4,000,000 3,305,000
California, General Obligation, Various Purpose,
5.72%-5.93%, 3/1/98-3/1/99 . 10,465,000 8,733,125
Chelan County, Washington, Public Utilities District,
5.88%, 7/1/98 ....................................... 1,370,000 1,155,938
Collin County, Texas, Community College District,
5.98%, 8/15/98 ...................................... 4,475,000 3,753,406
Connecticut, State College, Capital Appreciation,
5.27%, 12/15/97 ..................................... 985,000 858,181
Corpus Christi, Texas, General Improvement Refunding
Bonds, 5.59%, 11/1/98 ............................... 4,225,000 3,506,950
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
Dallas County, Texas, Road Improvement Refunding
Bonds, 6.19%, 8/15/98 ............................. $ 3,085,000 2,602,969
Grand Prairie, Texas, Independent School District,
5.93%, 2/15/98 ...................................... 1,150,000 993,313
Harris County, Texas, Toll Road Refunding Bonds,
6.09%, 8/15/98 ...................................... 845,000 708,744
Idaho Falls, Idaho, General Obligation and Electric
Refunding Bonds, 5.63%, 4/1/98 ...................... 1,500,000 1,286,250
Lake County, Illinois, General Obligation Forest
Preservation District, 6.09%, 12/1/98 ............... 1,000,000 823,750
Larimer, Weld and Boulder County, Colorado, School
District, 5.58%, 12/15/98 ........................... 3,260,000 2,709,875
Maricopa County, Arizona, School District,
5.57%-5.88%, 1/1/98-7/1/99 .......................... 16,140,000 13,358,732
Mesquite, Texas, School District, 5.57%-5.73%,
8/15/98-8/15/99 ..................................... 3,665,000 3,017,356
North East, Texas, Independent School District, 5.98%,
2/1/99 .............................................. 1,000,000 817,500
North Lawrence, Indiana, School Building Refunding,
Capital Appreciation, 5.62%-5.88%, 1/1/98-7/1/99 .... 2,320,000 1,911,825
Pleasanton, California, School District, 5.78%,
8/1/98 .............................................. 1,000,000 848,750
Salt Lake County, Utah, Water Conservation District,
5.83%, 10/1/98 . 1,300,000 1,090,372
Shreveport, Louisianna, Water and Sewer, 6.03%,
12/1/98 ............................................. 5,880,000 4,821,600
State of Texas, Veterans' Land General Obligation,
5.83%, 6/1/98 ....................................... 1,000,000 855,000
Tarrant County, Texas, Junior College District, 6.08%,
2/15/98 ............................................. 1,750,000 1,502,813
Tomball, Texas, Hospital Authority Revenue, 6.09%,
7/1/99 .............................................. 1,000,000 800,000
Utah Associated Municipal Power System, 5.57%,
7/1/98 .............................................. 2,765,000 2,350,250
Will County, Illinois, School District, 5.57%,
12/15/98 ............................................ 1,800,000 1,482,750
------------
Total Municipal Zero-Coupon Securities
(cost: $63,893,882) ................................ 65,199,449
------------
SHORT-TERM SECURITIES (8.0%):
Repurchase agreement with Morgan Stanley in a joint
trading account collateralized by U.S. government
agency securities, acquired on 2/28/95, accrued
interest at repurchase date of $5,560, 6.10%, 3/1/95
(cost: $32,816,000) ................................. 32,816,000 32,816,000
------------
Total Investments in Securities
(cost: $469,999,271) (d) ......................... $ 460,488,418
------------
------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
NOTES TO INVESTMENTS IN SECURITIES:
<TABLE>
<S> <C>
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN
NOTE 2 TO THE FINANCIAL STATEMENTS.
(B) ON FEBRUARY 28, 1995, SECURITIES VALUED AT $70,488,321 WERE
PLEDGED AS COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE
REPURCHASE AGREEMENTS:
</TABLE>
<TABLE>
<CAPTION>
NAME OF
BROKER AND
DESCRIPTION
ACQUISITION ACCRUED OF
AMOUNT DATE RATE* DUE INTEREST COLLATERAL
- ------------ ---------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
$65,000,000 2/24/95 6.15% 3/2/95 $55,521 (1)
*INTEREST RATE IS AS OF FEBRUARY 28, 1995. RATES ARE BASED ON THE
LONDON INTERBANK OFFERED RATE (LIBOR) AND RESET MONTHLY.
</TABLE>
<TABLE>
<S> <C> <C>
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY: FHLMC, ARM, 7.05%, 2/1/22, $12,510,519 PAR.
FHLMC, ARM, 7.14%, 2/1/22, $2,642,072 PAR.
FHLMC, ARM, 6.12%, 8/1/23, $7,140,906 PAR.
FHLMC, ARM, 5.96%, 1/1/21, $6,236,161 PAR.
FHLMC, ARM, 6.10%, 10/1/23, $3,369,644 PAR.
FNMA, ARM, 6.97%, 5/1/18, $3,748,081 PAR.
FNMA, ARM, 6.73%, 11/1/20, $2,146,999 PAR.
GNMA II, ARM, 6.00%, 7/20/22, $8,641,928 PAR.
GNMA II, ARM, 6.50%, 7/20/22, $8,338,926 PAR.
GNMA II, ARM, 7.00%, 8/20/23, $3,107,507 PAR.
GNMA II, ARM, 6.50%, 10/20/23, $9,226,707 PAR.
GNMA II, ARM, 6.00%, 5/20/22, $3,222,573 PAR.
(D) AT FEBRUARY 28, 1995, FOR FEDERAL INCOME TAX PURPOSES, THE COST
OF INVESTMENTS IN SECURITIES, INCLUDING THE PUT OPTIONS DESCRIBED
IN NOTE 5 TO THE FINANCIAL STATEMENTS, APPROXIMATED $472,612,771.
THE AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 1,305,568
GROSS UNREALIZED DEPRECIATION ...... (12,380,344)
-------------
NET UNREALIZED DEPRECIATION .... $ (11,074,776)
-------------
-------------
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MORTGAGE-BACKED SECURITIES (89.1%):
U.S. AGENCY ADJUSTABLE-RATE MORTGAGES (38.7%):
6.30%, FHLMC, 6/1/22 ............................... $ 29,434,791(b) 29,986,694
7.27%, FHLMC, 11/1/22 ................................ 10,835,163 11,068,796
7.34%, FHLMC, 9/1/22 ................................. 5,906,203 6,016,944
6.37%, FHLMC, 7/1/23 ................................. 5,900,016(b) 5,984,829
6.52%, FHLMC, 4/1/23 ................................. 4,599,168 4,665,258
6.21%, FNMA, 11/1/22 ................................. 3,504,049 3,545,677
5.96%, FNMA, 2/1/24 .................................. 8,857,861 8,780,355
6.50%, GNMA II, 7/20/22 .............................. 4,169,463(b) 4,190,310
6.50%, GNMA II, 9/20/22 .............................. 3,781,360(b) 3,800,267
6.00%, GNMA II, 9/20/22 .............................. 2,549,517 2,519,229
6.00%, GNMA II, 7/20/23 .............................. 6,661,894(b) 6,549,441
6.75%, GNMA II, 6/20/23 .............................. 5,628,874 5,649,982
------------
92,757,782
------------
COLLATERALIZED MORTGAGE OBLIGATIONS AND
OTHER MORTGAGE-BACKED SECURITIES (50.4%):
ADJUSTABLE RATE (50.4%):
6.73%, California Federal, Series 1987-F, Class A2,
7/1/17 .............................................. 5,629,518 5,531,002
6.79%, Donaldson, Lufkin and Jenrette, Series 1991-3,
Class A1, 3/20/21 ................................... 7,948,462 8,013,043
6.94%, Donaldson, Lufkin and Jenrette, Series 1992-12,
Class A1, 12/25/22 .................................. 6,779,144 6,815,158
6.71%, Donaldson, Lufkin and Jenrette, Series 1992-6,
Class A3, 7/25/22 ................................... 3,512,459 3,497,092
7.79%, Donaldson, Lufkin and Jenrette, Series
1992-MF3, Class A3, 5/25/22 ......................... 10,000,000 10,156,250
7.17%, First Federal of Rochester, Series 1988-SE1,
Class A, 10/25/18 ................................... 10,572,510 10,470,088
6.66%, Merrill Lynch Mortgage Investors, Series
1992-E, Class A3, 9/15/17 ........................... 5,000,000 4,983,750
7.69%, Merrill Lynch Mortgage Investors, Series
1992-H, Class A1-2, 1/25/23 ......................... 4,392,791 4,399,512
6.71%, Merrill Lynch Mortgage Investors, Series
1993-B, Class A3, 12/15/17 .......................... 13,650,000 13,649,864
5.69%, Merrill Lynch Mortgage Investors, Series
1993-D, Class A1-2, 10/25/23 ........................ 4,000,000 3,848,760
6.81%, Merrill Lynch Mortgage Investors, Series
1993-E, Class A4, 6/15/18 ........................... 6,500,000 6,326,320
6.00%, Merrill Lynch Mortgage Investors, Series
1993-H, Class A1-2, 10/25/23 ........................ 3,640,000 3,495,820
6.35%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-11, Class M1, 12/1/23 ................... 1,475,865 1,469,408
7.01%, Paine Webber Mortgage Acceptance Corporation,
Series 1993-8, Class M1, 8/25/23 .................... 6,771,161 6,720,377
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
6.63%, Residential Funding Corporation, Series
1992-S25, Class A, 7/25/22 ........................ $ 3,689,629 3,697,635
7.54%, Residential Funding Corporation, Series
1993-S8, Class A, 2/25/23 ........................... 5,651,338 5,722,601
6.78%, Resolution Trust Corporation, Series 1992-4,
Class B2, 7/25/28 ................................... 3,000,120 2,974,338
7.06%, Resolution Trust Corporation, Series 1992-6,
Class B3, 1/25/26 ................................... 10,002,236 9,852,202
7.74%, Salomon Brothers Mortgage, Series 1992-5, Class
A1, 11/25/22 ........................................ 3,348,845 3,323,729
6.52%, Sears Mortgage Securities, Series 1992-12,
Class A1, 7/25/22 ................................... 5,940,407 5,769,620
------------
120,716,569
------------
Total Mortgage-Backed Securities
(cost: $218,256,688) ............................... 213,474,351
------------
MUNICIPAL ZERO-COUPON SECURITIES (C) (15.2%):
Amarillo, Texas, School District, 5.44%, 2/1/99 ...... 4,300,000 3,504,500
Brazoria County, Texas, General Obligation,
5.54%-5.59%, 9/1/99-9/1/00 .......................... 1,425,000 1,084,656
Chelan County, Washington, Public Utilities District,
5.98%-6.09%, 7/1/99-7/1/00 .......................... 2,970,000 2,361,419
Cook and Will County, Illinois, Series A, 5.63%,
12/1/99 ............................................. 2,390,000 1,852,250
Copperas Cove, Texas, School District, 5.52%,
6/1/99 .............................................. 920,000 733,700
Cypress-Fairbanks, Texas, School District,
5.47%-5.64%, 2/1/99-2/1/00 .......................... 5,065,000 3,988,382
District of Columbia, General Obligation, 5.57%-5.71%,
6/1/99-6/1/00 ....................................... 13,900,000 10,609,500
Mesquite, Texas, School District, 5.63%, 8/15/99 ..... 1,605,000 1,265,944
Metropolitan Pier and Exposition Authority, Illinois,
State Revenue, 5.67%-5.69%, 6/15/99-12/15/99 ........ 7,875,000 6,217,762
North Slope Boro, Alaska, 5.58%, 6/30/99 ............. 4,710,000 3,673,800
Texas State General Obligation, 5.68%, 10/1/00 ....... 1,655,000 1,224,700
------------
Total Municipal Zero-Coupon Securities
(cost: $36,389,308) ................................ 36,516,613
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- -------------- ------------
<S> <C> <C>
SHORT-TERM SECURITIES (7.1%):
Repurchase agreement with Morgan Stanley in a joint
trading account collateralized by U.S. government
agency securities, acquired on 2/28/95, accrued
interest at repurchase date of $2,886, 6.10%, 3/1/95
(cost: $17,032,000) ............................... $ 17,032,000 17,032,000
------------
Total Investments in Securities
(cost: $271,677,996) (d) ......................... $ 267,022,964
------------
------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
<TABLE>
<S> <C>
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN
NOTE 2 TO THE FINANCIAL STATEMENTS.
(D) ON FEBRUARY 28, 1995, SECURITIES VALUED AT $39,416,280 WERE
PLEDGED AS COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE
REPURCHASE AGREEMENTS:
</TABLE>
<TABLE>
<CAPTION>
NAME OF
BROKER AND
DESCRIPTION
ACQUISITION ACCRUED OF
AMOUNT DATE RATE* DUE INTEREST COLLATERAL
- ------------ ---------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
$16,000,000 12/15/94 6.50% 3/15/95 $219,558 (1)
20,000,000 2/24/95 6.15% 3/2/95 17,083 (2)
- ------------ ---------
$36,000,000 $236,641
- ------------ ---------
- ------------ ---------
*INTEREST RATE IS AS OF FEBRUARY 28, 1995. RATES ARE BASED ON THE
LONDON INTERBANK OFFERED RATE (LIBOR) AND RESET MONTHLY OR QUARTERLY.
</TABLE>
<TABLE>
<S> <C> <C>
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY: FHLMC, ARM, 6.37%, 8/1/23, $1,269,624 PAR.
FHLMC, ARM, 6.30%, 6/1/22, $15,507,412 PAR.
(2) MORGAN STANLEY: GNMA II, ARM, 6.50%, 7/20/22, $4,169,463 PAR.
GNMA II, ARM, 6.50%, 9/20/22, $1,167,374 PAR.
GNMA II, ARM, 6.00%, 7/20/23, $2,893,178 PAR.
FHLMC, ARM, 6.30%, 6/1/22, $13,210,017 PAR.
(C) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE
EFFECTIVE YIELD ON THE DATE OF PURCHASE.
(D) AT FEBRUARY 28, 1995, FOR FEDERAL INCOME TAX PURPOSES, THE COST
OF INVESTMENT IN SECURITIES, INCLUDING THE PUT OPTIONS DESCRIBED
IN NOTE 5 TO THE FINANCIAL STATEMENTS, APPROXIMATED $273,687,996.
THE AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 427,964
GROSS UNREALIZED DEPRECIATION ...... (5,769,718)
-------------
NET UNREALIZED DEPRECIATION .... $ (5,341,754)
-------------
-------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SHAREHOLDER UPDATE
ANNUAL MEETING RESULTS
An annual meeting of the funds' shareholders was held on August 22, 1994. Each
matter voted upon at the meeting, as well as the number of votes cast for,
against or withheld, the number of absentions, and the number of broker
non-votes with respect to such matter, are set forth below.
1. The funds' shareholders elected the following eight directors:
AMERICAN ADJUSTABLE RATE TERM TRUST 1996 (BDJ)
<TABLE>
<CAPTION>
Shares Shares Withholding
Voted "For" Authority to Vote
----------- ------------------
<S> <C> <C>
David T. Bennett.......................................................... 19,407,539 821,042
Jaye F. Dyer.............................................................. 19,394,865 833,717
William H. Ellis.......................................................... 19,398,957 829,624
Karol D. Emmerich......................................................... 19,410,965 817,616
Luella G. Goldberg........................................................ 19,400,946 827,636
John T. Golle............................................................. 19,396,840 831,741
Edward J. Kohler*......................................................... 19,398,756 829,826
George Latimer............................................................ 19,370,495 858,087
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1997 (CDJ)
<TABLE>
<CAPTION>
Shares Shares Withholding
Voted "For" Authority to Vote
----------- ------------------
<S> <C> <C>
David T. Bennett.......................................................... 41,420,890 2,853,183
Jaye F. Dyer.............................................................. 41,383,464 2,890,610
William H. Ellis.......................................................... 41,396,392 2,877,682
Karol D. Emmerich......................................................... 41,409,352 2,864,722
Luella G. Goldberg........................................................ 41,406,918 2,867,156
John T. Golle............................................................. 41,343,182 2,930,891
Edward J. Kohler*......................................................... 41,417,878 2,856,196
George Latimer............................................................ 41,313,726 2,960,347
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1998 (DDJ)
<TABLE>
<CAPTION>
Shares Shares Withholding
Voted "For" Authority to Vote
----------- ------------------
<S> <C> <C>
David T. Bennett.......................................................... 44,665,699 2,128,977
Jaye F. Dyer.............................................................. 44,638,810 2,155,865
William H. Ellis.......................................................... 44,653,968 2,140,707
Karol D. Emmerich......................................................... 44,663,198 2,131,478
Luella G. Goldberg........................................................ 44,658,637 2,136,039
John T. Golle............................................................. 44,566,747 2,227,929
Edward J. Kohler*......................................................... 44,661,181 2,133,495
George Latimer............................................................ 44,531,764 2,262,912
</TABLE>
AMERICAN ADJUSTABLE RATE TERM TRUST 1999 (EDJ)
<TABLE>
<CAPTION>
Shares Shares Withholding
Voted "For" Authority to Vote
----------- ------------------
<S> <C> <C>
David T. Bennett.......................................................... 25,684,564 1,122,730
Jaye F. Dyer.............................................................. 25,668,724 1,138,571
William H. Ellis.......................................................... 25,684,471 1,122,823
Karol D. Emmerich......................................................... 25,686,477 1,120,817
Luella G. Goldberg........................................................ 25,680,299 1,126,994
John T. Golle............................................................. 25,638,533 1,168,761
Edward J. Kohler*......................................................... 25,683,363 1,123,931
George Latimer............................................................ 25,596,505 1,210,789
<FN>
*MR. KOHLER RESIGNED AS DIRECTOR OF THE FUNDS, EFFECTIVE NOVEMBER 30,
1994.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SHAREHOLDER UPDATE
2. The funds' shareholders ratified the selection by a majority of the
independent members of the funds' Boards of Directors of KPMG Peat
Marwick LLP as the independent public accountants for the funds for the
fiscal year ending August 31, 1994. The following votes were cast
regarding this matter:
<TABLE>
<CAPTION>
Shares Shares Voted Broker
Voted "For" "Against" Absentions Non-Votes
----------- --------------- ----------- ---------------
<S> <C> <C> <C> <C>
BDJ................................................. 19,242,371 271,319 714,892 --
CDJ................................................. 41,146,177 650,008 2,477,888 1
DDJ................................................. 44,510,175 452,538 1,831,963 --
EDJ................................................. 25,450,729 321,851 1,034,714 --
</TABLE>
3. The shareholders of American Adjustable Rate Term Trust 1999 (EDJ)
approved the Investment Advisory and Management Agreement dated September
17, 1992, between the fund and Piper Capital Management. The following
votes were cast regarding this matter:
<TABLE>
<CAPTION>
Shares Shares Voted Broker
Voted "For" "Against" Absentions Non-Votes
----------- --------------- ----------- -----------
<S> <C> <C> <C> <C>
24,522,892 617,138 1,342,096 325,168
</TABLE>
4. The shareholders of American Adjustable Rate Term Trust 1999 (EDJ)
approved the Administration Agreement dated September 17, 1992, between
the fund and Piper Capital Management. The following votes were cast
regarding this matter:
<TABLE>
<CAPTION>
Shares Shares Voted Broker
Voted "For" "Against" Absentions Non-Votes
----------- --------------- ----------- ---------------
<S> <C> <C> <C> <C>
24,823,342 618,546 1,365,407 --
</TABLE>
5. The funds' shareholders approved a fundamental policy requiring the funds
to conduct periodic repurchases of outstanding shares at net asset value.
The funds will make offers to repurchase shares annually, for acceptance
no later than October 1 (or the next business day if October 1 is not a
business day). The amount of each annual repurchase offer will be between
5% and 25% of each fund's outstanding shares, as determined by the Boards
of Directors. The following votes were cast regarding this matter:
<TABLE>
<CAPTION>
Shares Shares Voted Broker
Voted "For" "Against" Absentions Non-Votes
----------- --------------- ----------- -----------
<S> <C> <C> <C> <C>
BDJ................................................ 13,256,252 478,774 936,811 5,556,744
CDJ................................................ 26,268,925 1,135,577 2,902,809 13,966,763
DDJ................................................ 25,885,624 1,088,986 2,400,421 17,419,645
EDJ................................................ 16,158,205 536,296 770,376 9,342,417
</TABLE>
SHARE REPURCHASE PROGRAM
Your fund's board of directors has reapproved a share repurchase program, which
enables each fund to 'buy back' shares of its common stock in the open market.
Repurchases may only be made when the previous day's closing market price per
share was at a discount from net asset value. Repurchases cannot exceed 3% of
each fund's originally issued shares.
WHAT EFFECT WILL THIS PROGRAM HAVE ON SHAREHOLDERS?
- - We do not expect any adverse impact on the adviser's ability to manage the
fund.
- - Because repurchases will be at a price below net asset value, remaining shares
outstanding may experience a slight increase in
net asset value.
- - Although the effect of share repurchases on market price is less certain, the
board of directors believes the program may have a favorable effect on the
market price of fund shares.
- - We do not anticipate any material increase in the fund's expense ratio.
WHEN WILL SHARES BE REPURCHASED?
Share repurchases may be made from time to time in the open market when shares
are trading at a discount from net asset value and may be discontinued at any
time. Share repurchases are not mandatory when fund shares are trading at a
discount from net asset value; all repurchases will be at the discretion of the
fund's investment adviser. The board of directors will consider whether to
continue the Share Repurchase Program on at least a semiannual basis and will
notify shareholders of its determination in the next semiannual or
annual report.
HOW WILL SHARES BE REPURCHASED?
We expect to finance the repurchase of shares by liquidating portfolio
securities or using current cash balances. We do not anticipate borrowing in
order to finance share repurchases.
<PAGE>
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
<TABLE>
<S> <C>
DIRECTORS David T. Bennett, CHAIRMAN, HIGHLAND HOMES, INC., USL PRODUCTS, INC., KIEFER BUILT, INC.,
OF COUNSEL, GRAY, PLANT, MOOTY, MOOTY, & BENNETT, P.A.
Jaye F. Dyer, PRESIDENT, DYER MANAGEMENT COMPANY
William H. Ellis, CHAIRMAN OF THE BOARD, PRESIDENT, PIPER CAPITAL MANAGEMENT INCORPORATED,
PIPER JAFFRAY COMPANIES INC.
Karol D. Emmerich, PRESIDENT, THE PARACLETE GROUP
Luella G. Goldberg, DIRECTOR, TCF FINANCIAL, NWNL COMPANIES, HORMEL FOODS CORP.
John T. Golle, CHAIRMAN AND CEO, EDUCATION ALTERNATIVES
George Latimer, SPECIALIST CONSULTANT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICERS Thomas S. McGlinch, SENIOR VICE PRESIDENT
Douglas J. White, SENIOR VICE PRESIDENT
Amy K. Johnson, VICE PRESIDENT
Robert H. Nelson, VICE PRESIDENT
J. Bradley Stone, VICE PRESIDENT
David E. Rosedahl, SECRETARY
Charles N. Hayssen, TREASURER
INVESTMENT ADVISER Piper Capital Management Incorporated
222 SOUTH NINTH STREET, MINNEAPOLIS, MN 55402-3804
CUSTODIAN AND TRANSFER Investors Fiduciary Trust Company
AGENT 127 WEST 10TH STREET, KANSAS CITY, MO 64105-1716
LEGAL COUNSEL Dorsey & Whitney P.L.L.P.
220 SOUTH SIXTH STREET, MINNEAPOLIS, MN 55402
</TABLE>
<PAGE>
AMERICAN ADJUSTABLE
RATE TERM TRUSTS (1996-1999)
[4 PHOTOS] * * *
SEMIANNUAL REPORT
1995
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ........................................... 1
FINANCIAL STATEMENTS AND NOTES ................................... 4
INVESTMENTS IN SECURITIES ....................................... 19
SHAREHOLDER UPDATE .............................................. 26
AMERICAN ADJUSTABLE RATE TERM TRUSTS
The American Adjustable Rate Term Trusts are four diversified, closed-end funds
with termination dates in 1996, 1997, 1998 and 1999. Shares trade on the New
York Stock Exchange under the symbols BDJ, CDJ, DDJ and EDJ, respectively. The
funds invest primarily in adjustable rate mortgage securities. In addition, they
may invest in derivative collateralized mortgage obligations, tax-exempt
zero-coupon bonds, structured securities and Canadian securities. BDJ, CDJ, DDJ
and EDJ have been rated AAf by Standard & Poors Corporation (S&P).*
* THE FUNDS ARE RATED AAf, WHICH MEANS INVESTMENTS IN THE FUNDS HAVE AN OVERALL
CREDIT QUALITY OF AA. CREDIT QUALITIES ARE ASSESSED BY STANDARD & POOR'S
MUTUAL FUNDS RATING GROUP. S&P DOES NOT EVALUATE THE MARKET RISK OF AN
INVESTMENT WHEN ASSIGNING CREDIT RATINGS. SEE STANDARD & POOR'S CORPORATE &
MUNICIPAL RATING DEFINITIONS FOR AN EXPLANATION OF AA. ALTHOUGH THE FUNDS'
SECURITIES HAVE AN OVERALL CREDIT RATING OF AA, CERTAIN SECURITIES HAVE BEEN
DESIGNATED BY S&P AS SECURITIES THAT MAY EXPERIENCE HIGH VOLATILITY OR HIGH
VARIABILITY IN EXPECTED RETURNS DUE TO NON-CREDIT RISKS.
THE FUNDS HAVE ALSO BEEN GIVEN MARKET RISK RATINGS BY S&P, WHICH WE CANNOT
PUBLISH DUE TO NASD REGULATIONS. RISK RATINGS EVALUATE VARIOUS INVESTMENT
RISKS THAT CAN AFFECT THE PERFORMANCE OF A BOND FUND AND INDICATE THE FUND'S
OVERALL STABILITY AND SENSITIVITY TO CHANGING MARKET CONDITIONS. THESE
RATINGS ARE AVAILABLE BY CALLING S&P AT 1-800-424-FUND.
<PAGE>
AMERICAN ADJUSTABLE RATE TERM TRUSTS
AMERICAN ADJUSTABLE RATE TERM TRUST 1996
[GRAPH]
AMERICAN ADJUSTABLE RATE TERM TRUST 1997
[GRAPH]
AMERICAN ADJUSTABLE RATE TERM TRUST 1998
[GRAPH]
AMERICAN ADJUSTABLE RATE TERM TRUST 1999
[GRAPH]
TOTAL RETURN FIGURES FOR THE AMERICAN ADJUSTABLE RATE TERM TRUSTS (BDJ-EDJ) ARE
BASED ON CHANGES IN THEIR NET ASSET VALUES (NAVS) SINCE THE FUNDS' RESPECTIVE
INCEPTION DATES AND ASSUME ALL DISTRIBUTIONS WERE REINVESTED. NAV-BASED
PERFORMANCE IS USED TO MEASURE INVESTMENT MANAGEMENT RESULTS.
TOTAL RETURN SINCE INCEPTION FIGURES BASED ON CHANGES IN MARKET PRICES RATHER
THAN NAVS THROUGH FEBRUARY 28, 1995, WERE 14.81% FOR BDJ, 4.19% FOR CDJ, -1.26%
FOR DDJ AND -8.44% FOR EDJ. THESE FIGURES ASSUME REINVESTMENT OF DISTRIBUTIONS.
THE LIPPER ARM FUND AVERAGE REPRESENTS THE AVERAGE TOTAL RETURN, WITH DIVIDENDS
REINVESTED, OF 86 OPEN-END MUTUAL FUNDS, WHICH INVEST AT LEAST 65% OF THEIR
ASSETS IN ADJUSTABLE RATE MORTGAGE SECURITIES (ARMS) AS CHARACTERIZED BY LIPPER
ANALYTICAL SERVICES.
THE ONE-YEAR CONSTANT MATURITY TREASURY (CMT) IS THE MONTHLY AVERAGE YIELD OF
TREASURY SECURITIES WITH ONE YEAR LEFT TO MATURITY.
* FIGURES SHOWN REFLECT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
THE RETURNS AND MARKET VALUES OF INVESTMENTS IN THE FUNDS WILL FLUCTUATE AND
SHARES, WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
April 7, 1995
Dear Shareholders:
THE PERIOD FROM FEBRUARY 1994 TO FEBRUARY 1995 HAS BEEN COSTLY FOR BOND
INVESTORS AND ONE OF THE WORST ENVIRONMENTS IMAGINABLE FOR THE AMERICAN
ADJUSTABLE RATE TERM TRUSTS DATED 1996 THROUGH 1999 (BDJ, CDJ, DDJ AND EDJ).
During that time, the Federal Reserve raised the federal funds rate seven times,
from 3% last February to 6% this February. Adjustable rate mortgage securities
(ARMs), which the funds are mainly invested in, lost value in this rapidly
rising interest rate environment. ARMs could not fully adjust to the higher
interest rates because of their periodic caps and the lag times in their resets.
The values of the funds' non-ARM holdings were reduced by rising rates as well,
causing a corresponding decline in the net asset value of the funds. The funds'
net asset value and market returns for the six months ended February 28, 1995,
are as follows:
NAV MARKET
FUND RETURN* RETURN*
BDJ 2.03% 3.75%
CDJ 1.80% -0.13%
DDJ 1.30% 0.08%
EDJ 0.93% -1.31%
The funds' performance, when based on change in net asset value, underperformed
the Lipper U.S. Mortgage Bond Funds: Term Trusts Average return of 2.71% for 29
closed-end funds and outperformed the Lipper ARM Fund Average of 0.29% for 86
open-end funds for the six months ended February 28, 1995.
1
<PAGE>
AMERICAN ADJUSTABLE RATE TERM TRUSTS
PORTFOLIO COMPOSITIONS
FEBRUARY 28, 1995
AMERICAN ADJUSTMENT RATE TERM TRUST 1996
[PIE CHART]
AMERICAN ADJUSTMENT RATE TERM TRUST 1997
[PIE CHART]
AMERICAN ADJUSTMENT RATE TERM TRUST 1998
[PIE CHART]
AMERICAN ADJUSTMENT RATE TERM TRUST 1999
[PIE CHART]
INVESTMENT CATEGORIES REFLECT PERCENTAGE OF TOTAL ASSETS.
AS A RESULT OF THIS UNPRECEDENTED RISING INTEREST RATE ENVIRONMENT, WE UNDERTOOK
AN IN-DEPTH REVIEW OF BDJ THROUGH EDJ USING BOTH INTERNAL RESOURCES AND THE
INDEPENDENT APPRAISAL OF AN EXTERNAL CONSULTANT. WE HAVE CONCLUDED FROM THAT
REVIEW THAT THESE FOUR FUNDS CANNOT BE EXPECTED TO REACH $10 PER SHARE AT THEIR
RESPECTIVE SCHEDULED TERMINATIONS. The amount of risk which we would need to
take in these portfolios in an effort to achieve the $10 objective is, in our
opinion, simply unacceptable. Although the funds achieved high current income in
previous years, we understand that you purchased shares also expecting these
funds to achieve the $10 per share objective. While there was no guarantee that
the funds would meet either of these objectives, we know anything less than $10
will be disappointing for shareholders.
THEREFORE, IN FEBRUARY, WE PROPOSED TO THE FUNDS' BOARDS OF DIRECTORS THAT WE
REORGANIZE BDJ THROUGH EDJ. IN EFFECT: CONVERT THEM FROM CLOSED-END INVESTMENT
COMPANIES INTO A SINGLE OPEN-END MUTUAL FUND. The board members for these funds
reviewed our proposal and determined it is in the best interest of shareholders.
If shareholders approve the reorganization, the funds' termination dates would
be eliminated and shares would no longer trade on the New York and Chicago Stock
Exchanges at market prices, which are at discounts to net asset value as of
April 7, 1995.
FUND NAV MARKET PRICE DISCOUNT
BDJ $9.06 $8.63 4.75%
CDJ $8.84 $8.38 5.20%
DDJ $8.70 $8.13 6.55%
EDJ $8.52 $8.03 5.75%
Instead, shareholders could redeem shares at net asset value on a daily basis
and purchase new shares at net asset value plus sales charges, if applicable.
Reorganization would not dilute the interest of any shareholder. We are
currently in the process of filing our proxy statement describing the proposal
with the Securities and Exchange Commission (SEC). After SEC review, we will
submit the proposal to shareholders for a vote. It's important to note that each
fund will be voted on separately. In early June, you will receive a letter and
proxy statement with more information and a ballot for voting before the
anticipated August 1 annual shareholder meeting. It is important that you vote
and return your proxy card promptly.
OVER THE PAST FEW MONTHS, BDJ THROUGH EDJ HAVE BEEN REPOSITIONED. The funds no
longer own any foreign securities, structured securities, or CMO derivatives.
These securities all contributed to some of the funds' net asset value
volatility in the rapidly rising rate environment. However, by selling these
securities, the funds realized losses which may not be
2
<PAGE>
[PHOTO]
[PHOTO]
Thomas S. McGlinch, (above) SHARES PRIMARY RESPONSIBILITY FOR THE MANAGEMENT OF
THE AMERICAN ADJUSTABLE RATE TERM TRUSTS. HE HAS 14 YEARS OF INVESTMENT
EXPERIENCE.
Mike Jansen, (below) SHARES PRIMARY RESPONSIBILITY FOR THE MANAGEMENT OF THE
AMERICAN ADJUSTABLE RATE TERM TRUSTS. HE HAS 14 YEARS OF INVESTMENT EXPERIENCE.
recovered. Although ARM coupons will continue to adjust up in the next few
months and the values of those securities will rise somewhat in response, any
potential improvement in the net asset values of the funds has been dampened by
the repositioning of the portfolios. In addition, there is no sale-forward
program in any of the funds, and borrowing (through the use of reverse
repurchase agreements) now represents approximately 6% to 12% of each fund. This
positioning means the funds should not be as sensitive to interest rate moves as
they have been in the past, either in a positive or a negative direction. BDJ
through EDJ holdings now include agency ARM securities, privately issued ARM
securities, municipal zero-coupon bonds and cash. All of the securities in the
portfolio are rated AA or higher by Standard & Poor's. Over the next few months,
we anticipate a further reduction in the amount of borrowing in each portfolio.
EFFECTIVE IN FEBRUARY, PORTFOLIO MANAGEMENT DUTIES FOR THE TERM TRUSTS WERE
REASSIGNED. Tom McGlinch and Mike Jansen are responsible for the day-to-day
management decisions regarding these portfolios. Tom, who was added to the
funds' management team in October, is a Chartered Financial Analyst with 14
years of investment experience. Mike is a senior member of our portfolio
management staff with 14 years in the financial industry and broad experience in
mortgage-backed securities. Ben Rinkey, who previously managed the funds, has
left Piper Capital Management to pursue other career opportunities. Jeff
Griffin, also a previous co-manager, is now concentrating on private portfolio
management at Piper Capital Management.
We are confident in this team's ability to manage your investment going forward.
This past year has been difficult for fixed income investors and we appreciate
your patience during a very volatile period in the fixed income market. We
remain dedicated to putting your investment needs first.
Sincerely,
/s/ William H. Ellis
William H. Ellis
President, Piper Capital Management
3
<PAGE>
[LOGO] [POST OFFICE PERMIT STAMP]
PIPER CAPTIAL MANAGEMENT
222 SOUTH NINTH STREET
MINNEAPOLIS, MN 55402-3804
PIPER JAFFRAY INC., FUND SPONSOR AND NASD MEMBER.
[LOGO] THIS DOCUMENT IS PRINTED ON PAPER MADE FROM
100% TOTAL RECOVERED FIBER, INCLUDING 15% POST-CONSUMER WASTE.
150-95 XDJ-02
