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WACHOVIA MUNICIPAL FUNDS
N-30D, 2000-07-31

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THE WACHOVIA FUNDS

WACHOVIA EQUITY FUND
WACHOVIA QUANTITATIVE EQUITY FUND
WACHOVIA GROWTH AND INCOME FUND
WACHOVIA EQUITY INDEX FUND
WACHOVIA SPECIAL VALUES FUND
WACHOVIA EMERGING MARKETS FUND
WACHOVIA PERSONAL EQUITY FUND
WACHOVIA BALANCED FUND
WACHOVIA FIXED INCOME FUND
WACHOVIA INTERMEDIATE FIXED INCOME FUND
WACHOVIA SHORT-TERM FIXED INCOME FUND

THE WACHOVIA MUNICIPAL FUNDS

WACHOVIA GA MUNICIPAL BOND FUND
WACHOVIA NC MUNICIPAL BOND FUND
WACHOVIA SC MUNICIPAL BOND FUND
WACHOVIA VA MUNICIPAL BOND FUND

Combined Semi-Annual Report
May 31, 2000

[Graphic Representation Omitted - See Appendix]

 

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		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		9.21	%		$0.03		$0.51		$17.42 to $18.46
Class B Shares		8.77	%		$0.00		$0.51		$17.32 to $18.31
Class Y Shares		9.35	%		$0.05		$0.51		$17.42 to $18.46

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		5.38	%		$0.02		—		$21.00 to $22.11
Class B Shares		4.93	%		$0.00		—		$20.91 to $21.94
Class Y Shares		5.45	%		$0.05		—		$21.04 to $22.14

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		2.22	%		$0.01		$4.26		$24.86 to $21.20
Class Y Shares		2.34	%		$0.03		$4.26		$24.88 to $21.22

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		2.57	%		$0.14		$0.53		$26.18 to $26.19
Class Y Shares		2.69	%		$0.17		$0.53		$26.21 to $26.22

*	Performance quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

**

The Standard & Poor’s 500 Index is an unmanaged index comprised of common stocks in industry, transportation, and financial and public utility companies. Investments cannot be made in an index. The Fund is not sponsored, endorsed, sold or promoted by or affiliated with Standard & Poor’s rating group.

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		5.50	%		$0.28		$0.52		$16.03 to $16.07
Class B Shares		5.11	%		$0.25		$0.52		$15.99 to $16.00
Class Y Shares		5.64	%		$0.32		$0.52		$16.07 to $16.09

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		3.23	%		$0.11		—		$11.74 to $12.02
Class Y Shares		3.60	%		$0.14		—		$11.75 to $12.05

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		2.81	%		$0.01		$0.19		$10.67 to $10.77
Class Y Shares		2.90	%		$0.02		$0.19		$10.68 to $10.78

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		6.77	%		$0.14		$0.09		$13.45 to $14.12
Class B Shares		6.42	%		$0.09		$0.09		$13.41 to $14.08
Class Y Shares		6.90	%		$0.16		$0.09		$13.47 to $14.14

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		1.12	%		$0.28		—		$9.52 to $9.35
Class B Shares		0.64	%		$0.24		—		$9.52 to $9.34
Class Y Shares		1.15	%		$0.29		—		$9.52 to $9.34

*	Small cap stocks have historically experienced greater volatility than average.

**

Foreign investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards. Emerging markets economic structures may be less diverse and mature, and their political systems may be less stable than those of established markets.

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		0.68	%		$0.27		$0.01		$9.57 to $9.36
Class Y Shares		0.92	%		$0.28		$0.01		$9.57 to $9.37

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		1.36	%		$0.28		—		$9.63 to $9.48
Class Y Shares		1.38	%		$0.29		—		$9.63 to $9.47

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		0.39	%		$0.24		—		$10.61 to $10.41
Class Y Shares		0.51	%		$0.25		—		$10.61 to $10.41

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		(0.18%	)		$0.22		$0.01		$10.72 to $10.47
Class Y Shares		(0.05%	)		$0.24		$0.01		$10.72 to $10.47

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		0.65	%		$0.25		$0.00**		$10.57 to $10.39
Class Y Shares		0.77	%		$0.26		$0.00**		$10.57 to $10.39

		Total Return Based on NAV*			Income		Capital Gains		Share Price Change
Class A Shares		0.58	%		$0.23		—		$9.84 to $9.67
Class Y Shares		0.70	%		$0.24		—		$9.84 to $9.67

**	Less than $0.01 per share.

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Shares				Value
Common Stocks—93.6%
		Basic Materials—3.3%
27,833		Alcoa, Inc.		$  1,626,491
51,122		Du Pont (E.I.) de Nemours & Co.		2,504,978
65,164		Praxair, Inc.		2,736,888
57,211		Rohm & Haas Co.		1,952,325
98,013		Weyerhaeuser Co.		4,863,895
		Total		13,684,577
		Capital Goods—7.5%
197,212		General Electric Co.		10,378,281
88,477		Honeywell International, Inc.		4,838,586
69,677		Ingersoll-Rand Co.		3,174,658
37,811		(1)Sanmina Corp.		2,405,725
98,571		Tyco International Ltd.		4,638,998
84,342		United Technologies Corp.		5,097,420
		Total		30,533,668
		Communication Services—5.4%
130,362		(1)Global Crossing Ltd.		3,267,198
200,576		(1)MCI Worldcom, Inc.		7,546,672
30,364		(1)NEXTEL Communications, Inc., Class A		2,812,466
63,491		SBC Communications, Inc.		2,773,763
36,617		Sprint Corp.		2,215,329
60,560		(1)Sprint PCS Group		3,361,080
		Total		21,976,508
		Consumer Cyclicals—4.6%
36,037		Black & Decker Corp.		1,315,350
74,542		Circuit City Stores, Inc.		3,713,123
50,579		(1)Federated Department Stores, Inc.		1,947,291
91,175		Lowe’s Cos., Inc.		4,245,336
59,588		McGraw-Hill Cos., Inc.		3,065,058
78,277		Wal-Mart Stores, Inc.		4,510,712
		Total		18,796,870
		Consumer Staples—9.1%
53,956		(1)AT&T Corp.-Liberty Media Group, Inc., Class A		2,390,925
113,797		CVS Corp.		4,950,169
41,417		(1)Clear Channel Communications, Inc.		3,101,098
86,832		Comcast Corp., Class A		3,288,762
49,671		Kimberly-Clark Corp.		3,005,096
274,065		(1)Kroger Co., Inc.		5,447,042
158,938		(1)Outback Steakhouse, Inc.		4,817,808

Shares				Value
Common Stocks—continued
		Consumer Staples—continued
63,735		Time Warner, Inc.		$  5,031,082
82,380		(1)Viacom, Inc., Class B		5,107,560
		Total		37,139,542
		Energy—6.3%
62,271		BP Amoco PLC, ADR		3,385,986
150,684		Conoco, Inc., Class A		4,030,797
98,578		Exxon Mobil Corp.		8,212,780
83,418		Royal Dutch Petroleum Co., ADR		5,208,411
63,902		Schlumberger Ltd.		4,700,791
		Total		25,538,765
		Finance—14.7%
130,623		American Express Co.		7,029,150
22,395		American General Corp.		1,434,680
79,398		American International Group, Inc.		8,937,237
76,451		Bank of America Corp.		4,247,809
52,429		Bank of New York Co., Inc.		2,460,886
48,218		Chase Manhattan Corp.		3,601,282
191,548		Citigroup, Inc.		11,911,891
69,041		Freddie Mac		3,072,324
25,384		First Union Corp.		893,200
29,320		MBIA, Inc.		1,695,063
64,894		MBNA Corp.		1,808,920
22,218		Marsh & McLennan Cos., Inc.		2,445,369
25,499		Morgan Stanley, Dean Witter & Co.		1,834,334
44,048		SunTrust Banks, Inc.		2,631,868
129,808		Wells Fargo Co.		5,873,812
		Total		59,877,825
		Health Care—10.1%
15,516		American Home Products Corp.		835,924
33,004		(1)Amgen, Inc.		2,099,879
80,373		Bristol-Myers Squibb Co.		4,425,538
6,574		Genentech, Inc.		705,883
25,551		Guidant Corp.		1,293,519
79,897		Johnson & Johnson		7,150,781
39,125		Lilly (Eli) & Co.		2,978,391
63,848		Medtronic, Inc.		3,296,153
77,944		Merck & Co., Inc.		5,816,571
166,227		Pfizer, Inc.		7,407,491
42,903		Warner-Lambert Co.		5,239,529
		Total		41,249,659

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Shares				Value
Common Stocks—continued
		Technology—29.4%
335,160		(1)Cisco Systems, Inc.		$ 19,083,172
98,608		(1)EMC Corp.		11,469,343
22,645		(1)I2 Technologies, Inc.		2,408,862
60,602		Intel Corp.		7,556,312
91,081		(1)JDS Uniphase Corp.		8,015,128
101,872		(1)Microsoft Corp.		6,373,367
105,956		(1)Network Appliance, Inc.		6,840,784
159,686		Nokia Corp., ADR		8,303,672
108,499		Nortel Networks Corp.		5,892,852
43,858		(1)RF Micro Devices, Inc.		4,605,090
28,316		(1)SDL, Inc.		6,415,344
163,076		(1)Sun Microsystems, Inc.		12,495,699
142,612		Texas Instruments, Inc.		10,303,717
87,133		(1)Veritas Software Corp.		10,150,995
		Total		119,914,337
		Transportation—0.6%
134,537		Southwest Airlines Co.		2,581,429

Shares or Principal Amount				Value
Common Stocks—continued
		Utilities—2.6%
76,087		Duke Energy Corp.		$  4,432,068
83,679		Enron Corp.		6,098,107
		Total		10,530,175
		Total Common Stocks (identified cost $270,330,096)		381,823,355
(2) U.S. Treasury Obligations—0.7%
$ 2,400,000		United States Treasury Bill, 6/15/2000		2,395,824
500,000		United States Treasury Bill, 9/14/2000		491,835
		Total U.S. Treasury Obligations (identified cost $2,885,076)		2,887,659
(3) Repurchase Agreement—10.5%
42,923,285		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		42,923,285
		Total Investments (identified cost $316,138,457)		$427,634,299

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Shares				Value
Common Stocks—96.4%
		Basic Materials—2.8%
60,000		Du Pont (E.I.) de Nemours & Co.		$    2,940,000
220,000		Ecolab, Inc.		8,415,000
80,000		Georgia-Pacific Corp.		2,620,000
30,000		Praxair, Inc.		1,260,000
100,000		Weyerhaeuser Co.		4,962,500
		Total		20,197,500
		Capital Goods—4.7%
384,000		General Electric Co.		20,208,000
220,000		Tyco International Ltd.		10,353,750
50,000		United Technologies Corp.		3,021,875
		Total		33,583,625
		Communication Services—6.7%
55,000		AT&T Corp.		1,907,812
100,000		Bell Atlantic Corp.		5,287,500
240,000		BellSouth Corp.		11,205,000
85,000		GTE Corp.		5,376,250
326,760		SBC Communications, Inc.		14,275,328
110,000		Sprint Corp.		6,655,000
50,000		U.S. West, Inc.		3,600,000
		Total		48,306,890
		Consumer Cyclicals—5.6%
95,000		(1)Best Buy Co., Inc.		6,080,000
15,000		Black & Decker Corp.		547,500
80,000		Gannett Co., Inc.		5,180,000
62,500		Home Depot, Inc.		3,050,781
70,000		Knight-Ridder, Inc.		3,710,000
145,000		TJX Cos., Inc.		3,135,625
15,000		Tandy Corp.		636,563
120,000		Target Corp.		7,522,500
175,000		Wal-Mart Stores, Inc.		10,084,375
		Total		39,947,344
		Consumer Staples—11.1%
130,000		Albertsons, Inc.		4,761,250
78,000		Anheuser-Busch Cos., Inc.		6,045,000
40,000		BestFoods		2,580,000
80,000		CVS Corp.		3,480,000
210,000		IBP, Inc.		3,465,000
195,000		PepsiCo, Inc.		7,934,063
192,000		Philip Morris Cos., Inc.		5,016,000
45,000		Procter & Gamble Co.		2,992,500
150,000		Quaker Oats Co.		11,034,375
194,000		(1)Safeway, Inc.		8,948,250
266,000		SUPERVALU, Inc.		5,536,125
170,000		SYSCO Corp.		7,129,375
172,254		(1)Viacom, Inc., Class B		10,679,748
		Total		79,601,686

Shares				Value
Common Stocks—continued
		Energy—6.0%
100,000		BP Amoco PLC, ADR		$    5,437,500
40,000		Chevron Corp.		3,697,500
255,851		Exxon Mobil Corp.		21,315,586
180,000		Royal Dutch Petroleum Co., ADR		11,238,750
20,000		Texaco, Inc.		1,148,750
		Total		42,838,086
		Finance—13.6%
48,000		AEGON NV, ADR		1,734,000
200,000		Ambac Financial Group, Inc.		10,075,000
95,000		American General Corp.		6,085,937
30,000		American National Insurance Co.		1,620,000
270,000		AmSouth Bancorporation		4,876,875
75,000		Bank of America Corp.		4,167,187
140,000		Bank of New York Co., Inc.		6,571,250
50,000		CIGNA Corp.		4,440,625
170,000		Chase Manhattan Corp.		12,696,875
420,000		Citigroup, Inc.		26,118,750
20,000		J.P. Morgan & Co., Inc.		2,575,000
47,000		Marsh & McLennan Cos., Inc.		5,172,938
125,000		PNC Bank Corp.		6,296,875
200,000		SouthTrust Corp.		5,412,500
		Total		97,843,812
		Health Care—10.7%
85,000		Abbott Laboratories		3,458,437
120,000		(1)Amgen, Inc.		7,635,000
38,000		Baxter International, Inc.		2,527,000
205,200		Bristol-Myers Squibb Co.		11,298,825
150,000		Guidant Corp.		7,593,750
75,000		Johnson & Johnson		6,712,500
110,000		Lilly (Eli) & Co.		8,373,750
69,200		Merck & Co., Inc.		5,164,050
150,000		Pfizer, Inc.		6,684,375
40,000		Pharmacia Upjohn Corp.		2,077,500
319,200		Schering Plough Corp.		15,441,300
		Total		76,966,487
		Technology—30.3%
115,000		(1)ADC Telecommunications, Inc.		7,726,562
50,000		(1)America Online, Inc.		2,650,000
50,000		(1)Applied Materials, Inc.		4,175,000
480,000		(1)Cisco Systems, Inc.		27,330,000
220,000		Computer Associates International, Inc.		11,330,000
140,000		Corning, Inc.		27,081,250
260,000		(1)EMC Corp.		30,241,250
60,000		Eastman Kodak Co.		3,585,000
90,000		Intel Corp.		11,221,875
128,000		International Business Machines Corp.		13,736,000

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Shares				Value
Common Stocks—continued
		Technology—continued
215,000		(1)Lexmark International Group, Class A		$  14,996,250
303,000		Lucent Technologies, Inc.		17,384,625
175,000		(1)Microsoft Corp.		10,948,438
70,000		(1)Oracle Corp.		5,031,250
390,000		(1)Sun Microsystems, Inc.		29,883,750
30,000		(1)SunGuard Data Systems, Inc.		1,018,125
		Total		218,339,375
		Transportation—0.5%
20,000		Delta Air Lines, Inc.		1,028,750
50,000		GATX Corp.		1,684,375
20,000		Union Pacific Corp.		846,250
		Total		3,559,375
		Utilities—4.5%
230,000		Coastal Corp.		14,116,250
60,000		DQE, Inc.		2,535,000
75,000		Duke Energy Corp.		4,368,750

Shares or Principal Amount				Value
Common Stocks—continued
		Utilities—continued
60,000		Enron Corp.		$    4,372,500
65,000		Southern Co.		1,685,938
125,000		Williams Cos., Inc. (The)		5,195,313
		Total		32,273,751
		Total Common Stocks (identified cost $336,206,554)		693,457,931
(2) U.S. Treasury Obligation—0.2%
$ 1,700,000		United States Treasury Bill, 6/15/2000 (identified cost $1,697,017)		1,696,960
(3) Repurchase Agreement—3.4%
24,409,833		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		24,409,833
		Total Investments (identified cost $362,313,404)		$719,564,724

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Shares				Value
Common Stocks—96.9%
		Basic Materials—1.7%
106,127		Du Pont (E.I.) de Nemours & Co.		$      5,200,223
		Capital Goods—6.5%
263,055		General Electric Co.		13,843,269
111,266		United Technologies Corp.		6,724,639
		Total		20,567,908
		Communication Services—5.2%
50,820		AT&T Corp.		1,762,819
61,844		Alltel Corp.		4,046,917
195,421		(1)MCI Worldcom, Inc.		7,352,715
8,087		(1)NEXTEL Communications, Inc., Class A		749,058
57,417		(1)Qwest Communications International, Inc.		2,429,457
		Total		16,340,966
		Consumer Cyclicals—6.3%
16,572		Circuit City Stores, Inc.		825,493
64,046		(1)Federated Department Stores, Inc.		2,465,771
47,836		Gannett Co., Inc.		3,097,381
33,157		General Motors Corp.		2,341,713
60,226		Lowe’s Cos., Inc.		2,804,273
60,169		Marriott International, Inc., Class A		2,181,126
25,949		McGraw-Hill Cos., Inc.		1,334,752
85,186		Wal-Mart Stores, Inc.		4,908,843
		Total		19,959,352
		Consumer Staples—9.9%
71,343		(1)AT&T Corp.-Liberty Media Group, Inc., Class A		3,161,387
49,761		CVS Corp.		2,164,604
47,197		(1)Clear Channel Communications, Inc.		3,533,875
80,921		Colgate-Palmolive Co.		4,258,468
44,176		Comcast Corp., Class A		1,673,166
64,935		(1)Kroger Co., Inc.		1,290,583
91,669		PepsiCo, Inc.		3,729,782
60,674		Procter & Gamble Co.		4,034,821
40,094		Time Warner, Inc.		3,164,920
67,197		(1)Viacom, Inc., Class B		4,166,214
		Total		31,177,820

Shares				Value
Common Stocks—continued
		Energy—5.2%
130,715		Exxon Mobil Corp.		$    10,890,193
90,140		Royal Dutch Petroleum Co., ADR		5,628,116
		Total		16,518,309
		Finance—15.4%
77,634		American Express Co.		4,177,680
37,075		American International Group, Inc.		4,173,255
204,631		Citigroup, Inc.		12,725,490
80,000		Franklin Resources, Inc.		2,400,000
184,000		Freddie Mac		8,188,000
169,418		Morgan Stanley, Dean Witter & Co.		12,187,507
100,000		Norwest Corp.		4,525,000
		Total		48,376,932
		Health Care—10.5%
153,703		Abbott Laboratories		6,253,791
40,978		Bristol-Myers Squibb Co.		2,256,351
75,489		Johnson & Johnson		6,756,266
114,632		Merck & Co., Inc.		8,554,413
187,654		Schering Plough Corp.		9,077,762
		Total		32,898,583
		Technology—34.2%
345,602		(1)Cisco Systems, Inc.		19,677,828
100,670		(1)EMC Corp.		11,709,179
66,173		Honeywell International, Inc.		3,618,836
18,711		(1)I2 Technologies, Inc.		1,990,383
102,524		Intel Corp.		12,783,461
89,255		(1)JDS Uniphase Corp.		7,854,440
77,918		(1)Microsoft Corp.		4,874,745
152,420		Nokia Corp., ADR		7,925,840
93,072		Nortel Networks Corp.		5,054,973
162,706		(1)Sun Microsystems, Inc.		12,467,347
203,488		Texas Instruments, Inc.		14,702,008
43,964		(1)Veritas Software Corp.		5,121,806
		Total		107,780,846
		Utilities—2.0%
107,752		Duke Energy Corp.		6,276,554
		Total Common Stocks (identified cost $159,138,908)		305,097,493

---

---

Principal Amount				Value
(2) U.S. Treasury Obligation—0.3%
$1,000,000		United States Treasury Bill, 6/15/2000 (identified cost $997,818)		$          998,260
(3) Repurchase Agreement—2.8%
8,720,225		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		8,720,225
		Total Investments (identified cost $168,856,951)		$  314,815,978

---

---

Shares				Value
Common Stocks—94.8%
		Basic Materials—2.2%
9,722		Air Products & Chemicals, Inc.		$          336,624
9,562		Alcan Aluminum Ltd.		313,753
18,292		Alcoa, Inc.		1,068,939
1,681		Armstrong World Industries, Inc.		28,892
16,579		Barrick Gold Corp.		299,458
2,200		Bemis Co., Inc.		75,625
5,460		(1)Bethlehem Steel Corp.		21,157
2,366		Boise Cascade Corp.		68,910
4,015		Champion International Corp.		293,095
9,298		Dow Chemical Co.		995,467
44,105		Du Pont (E.I.) de Nemours & Co.		2,161,145
3,329		Eastman Chemical Co.		151,678
5,435		Ecolab, Inc.		207,889
5,317		Engelhard Corp.		92,715
1,390		(1)FMC Corp.		84,443
9,261		Fort James Corp.		209,530
6,954		Freeport-McMoRan Copper & Gold, Inc., Class B		63,890
7,392		Georgia-Pacific Corp.		242,088
4,603		Goodrich (B.F.) Co.		163,406
2,638		(1)Grace (W.R.) & Co.		33,140
2,293		Great Lakes Chemical Corp.		63,631
4,225		Hercules, Inc.		69,977
10,041		Homestake Mining Co.		67,777
7,426		Inco Ltd.		120,672
4,457		International Flavors & Fragrances, Inc.		151,538
17,224		International Paper Co.		599,611
4,565		Louisiana-Pacific Corp.		51,356
4,316		Mead Corp.		132,987
11,798		Newell Rubbermaid, Inc.		309,698
7,024		Newmont Mining Corp.		161,991
3,679		Nucor Corp.		143,021
7,443		PPG Industries, Inc.		368,894
3,771		Phelps Dodge Corp.		169,224
13,753		Placer Dome, Inc.		113,462
1,219		Potlatch Corp.		46,170
6,627		Praxair, Inc.		278,334
8,872		Rohm & Haas Co.		302,757
4,227		Sigma-Aldrich Corp.		141,076
2,336		Temple-Inland, Inc.		116,070
3,711		USX-U.S. Steel Group, Inc.		83,729
5,582		Union Carbide Corp.		305,266
4,250		Vulcan Materials Co.		198,688
4,060		(1)Watson Pharmaceuticals, Inc.		179,148

Shares				Value
Common Stocks—continued
		Basic Materials—continued
4,252		Westvaco Corp.		$          128,092
9,879		Weyerhaeuser Co.		490,245
4,661		Willamette Industries, Inc.		151,483
3,884		Worthington Industries, Inc.		47,094
		Total		11,903,835
		Capital Goods—8.2%
7,650		(1)Allied Waste Industries, Inc.		77,934
4,884		Avery Dennison Corp.		299,145
1,295		Ball Corp.		38,445
38,442		Boeing Co.		1,501,625
977		Briggs & Stratton Corp.		39,080
15,067		Caterpillar, Inc.		576,313
4,346		Cooper Industries, Inc.		145,591
11,501		Corning, Inc.		2,224,725
2,883		Crane Co.		76,039
5,419		Crown Cork & Seal Co., Inc.		92,800
5,618		Danaher Corp.		270,717
9,569		Deere & Co.		397,712
8,922		Dover Corp.		414,873
2,999		Eaton Corp.		217,615
18,502		Emerson Electric Co.		1,091,618
8,523		General Dynamics Corp.		503,390
412,950		General Electric Co.		21,731,494
3,989		Grainger (W.W.), Inc.		159,311
33,444		Honeywell, Inc.		1,828,969
640		(1)Huttig Building Products, Inc.		2,960
12,629		Illinois Tool Works, Inc.		733,271
6,907		Ingersoll-Rand Co.		314,700
3,557		Johnson Controls, Inc.		202,527
16,488		Lockheed Martin Corp.		403,956
18,250		Masco Corp.		359,297
1,615		Milacron, Inc.		25,537
1,848		Millipore Corp.		133,749
16,859		Minnesota Mining & Manufacturing Co.		1,445,659
8,125		Molex, Inc.		396,602
344		NACCO Industries, Inc., Class A		12,986
1,742		National Service Industries, Inc.		37,889
2,891		Northrop Grumman Corp.		221,523
6,526		(1)Owens-Illinois, Inc.		73,418
7,147		(1)Pactiv Corp.		63,876
5,205		Pall Corp.		109,305
4,575		Parker-Hannifin Corp.		190,720
11,453		Pitney Bowes, Inc.		498,206

---

---

Shares				Value
Common Stocks—continued
		Capital Goods—continued
8,031		Rockwell International Corp.		$          329,271
3,504		(1)Sealed Air Corp.		196,224
24,452		(1)Solectron Corp.		808,444
6,206		Textron, Inc.		389,427
6,672		(1)Thermo Electron Corp.		123,849
2,384		Thomas & Betts Corp.		67,646
2,609		Timken Co.		49,245
71,334		Tyco International Ltd.		3,357,156
20,247		United Technologies Corp.		1,223,678
25,378		Waste Management, Inc.		517,077
		Total		43,975,594
		Communication Services—6.9%
134,282		AT&T Corp.		4,657,907
11,978		Alltel Corp.		783,810
65,207		Bell Atlantic Corp.		3,447,820
79,869		BellSouth Corp.		3,728,884
5,775		CenturyTel, Inc.		155,925
40,991		GTE Corp.		2,592,681
116,890		(1)MCI Worldcom, Inc.		4,397,986
25,494		(1)MediaOne Group, Inc.		1,703,318
15,076		(1)NEXTEL Communications, Inc., Class A		1,396,415
31,130		(1)Qualcomm, Inc.		2,066,254
143,604		SBC Communications, Inc.		6,273,700
35,618		Sprint Corp.		2,154,889
34,900		Sprint Corp. (PCS Group)		1,936,950
21,109		U.S. West, Inc.		1,519,848
		Total		36,816,387
		Consumer Cyclicals—7.6%
2,976		American Greetings Corp., Class A		55,428
6,416		(1)AutoZone, Inc.		179,648
5,880		(1)Bed Bath & Beyond, Inc.		216,457
8,560		(1)Best Buy Co., Inc.		547,840
3,691		Black & Decker Corp.		134,721
4,223		Block (H&R), Inc.		130,385
25,712		Carnival Corp., Class A		697,438
33,335		(1)Cendant Corp.		441,689
2,496		Centex Corp.		51,792
8,430		Circuit City Stores, Inc.		419,919
8,698		Clorox Co.		344,658
4,599		(1)Consolidated Stores Corp.		59,787
3,184		Cooper Tire & Rubber Co.		38,407
18,188		Costco Cos., Inc.		580,879
1,760		Cummins Engine Co., Inc.		57,310
6,954		Dana Corp.		179,500

Shares				Value
Common Stocks—continued
		Consumer Cyclicals—continued
23,665		Delphi Auto Systems Corp.		$          427,449
3,379		Deluxe Corp.		83,419
4,487		Dillards, Inc., Class A		67,025
11,504		Dollar General Corp.		201,316
5,705		Donnelley (R.R.) & Sons Co.		140,842
3,943		Dow Jones & Co.		268,124
7,020		Dun & Bradstreet Corp.		215,865
9,008		(1)Federated Department Stores, Inc.		346,808
3,183		Fluor Corp.		103,447
50,829		Ford Motor Co.		2,468,383
11,829		Gannett Co., Inc.		765,928
35,913		Gap (The), Inc.		1,259,200
23,443		General Motors Corp.		1,655,662
7,557		Genuine Parts Co.		180,423
6,548		Goodyear Tire & Rubber Co.		162,881
2,983		Harcourt General, Inc.		117,828
7,392		Hasbro, Inc.		121,044
15,454		Hilton Hotels Corp.		131,359
96,613		Home Depot, Inc.		4,715,922
13,456		IMS Health, Inc.		222,024
4,360		ITT Industries, Inc.		150,692
11,676		Interpublic Group Cos., Inc.		501,338
20,207		(1)K Mart Corp.		171,759
2,008		Kaufman & Broad Homes Corp.		34,763
3,296		Knight-Ridder, Inc.		174,688
13,290		(1)Kohl’s Corp.		687,757
8,260		Leggett and Platt, Inc.		165,716
17,604		Limited, Inc.		424,696
2,713		Liz Claiborne, Inc.		106,655
14,808		Lowe’s Cos., Inc.		689,497
10,557		Marriott International, Inc., Class A		382,691
14,271		May Department Stores Co.		429,022
3,779		Maytag Corp.		123,762
2,479		McDermott International, Inc.		24,790
8,266		McGraw-Hill Cos., Inc.		425,182
2,198		Meredith Corp.		66,902
2,816		(1)Navistar International Corp.		90,464
7,211		New York Times Co., Class A		276,722
12,027		Nike, Inc., Class B		515,658
5,857		Nordstrom, Inc.		147,157
15,600		(1)Office Depot, Inc.		110,175
7,536		Omnicom Group, Inc.		632,553
2,279		Owens Corning		35,182
3,282		PACCAR, Inc.		137,434
15,458		Paychex, Inc.		541,013
11,068		Penney (J.C.) Co., Inc.		200,608
1,813		Pulte Corp.		40,226

---

---

Shares				Value
Common Stocks—continued
		Consumer Cyclicals—continued
2,371		(1)Reebok International Ltd.		$            32,898
1,518		Russell Corp.		33,776
5,445		(1)Sabre Group Holdings, Inc., Class A		156,544
16,093		Sears, Roebuck & Co.		594,435
7,223		Sherwin-Williams Co.		167,935
2,473		Snap-On Corp.		63,525
753		Springs Industries, Inc., Class A		35,768
3,730		Stanley Works		100,244
19,741		(1)Staples, Inc.		291,180
13,533		TJX Cos., Inc.		292,651
5,030		TRW, Inc.		243,955
8,316		Tandy Corp.		352,910
18,481		Target Corp.		1,158,528
3,343		Times Mirror Co., Class A		322,600
10,577		(1)Toys ’R’ Us, Inc.		166,588
9,978		Tribune Co.		384,153
2,420		Tupperware Corp.		53,391
5,038		V.F. Corp.		144,528
186,872		Wal-Mart Stores, Inc.		10,768,499
2,825		(1)Wellpoint Health Networks, Inc.		205,166
3,194		Whirlpool Corp.		181,060
2,780		Young & Rubicam, Inc.		132,745
		Total		40,960,988
		Consumer Staples—9.8%
2,315		Alberto-Culver Co., Class B		60,913
17,579		Albertsons, Inc.		643,831
20,076		Anheuser-Busch Cos., Inc.		1,555,890
25,694		Archer-Daniels-Midland Co.		306,722
11,035		Avon Products, Inc.		455,883
11,554		BestFoods		745,233
2,885		Brown-Forman Corp., Class B		167,510
3,635		Brunswick Corp.		69,974
16,381		CVS Corp.		712,573
18,369		Campbell Soup Co.		569,439
13,868		(1)Clear Channel Communications, Inc.		1,038,366
103,552		Coca-Cola Co.		5,527,088
17,764		Coca-Cola Enterprises, Inc.		304,208
24,600		Colgate-Palmolive Co.		1,294,575
38,892		Comcast Corp., Class A		1,473,034
20,555		ConAgra, Inc.		474,050
1,537		Coors Adolph Co., Class B		86,456
5,838		Darden Restaurants, Inc.		100,341
86,959		Disney (Walt) Co.		3,668,583
4,505		(1)Energizer Holdings, Inc.		76,585
7,184		Fortune Brands, Inc.		191,274

Shares				Value
Common Stocks—continued
		Consumer Staples—continued
12,848		General Mills, Inc.		$          509,905
46,599		Gillette Co.		1,555,242
1,608		Great Atlantic & Pacific Tea Co., Inc.		29,547
12,640		Harley-Davidson, Inc.		470,840
5,304		(1)Harrah’s Entertainment, Inc.		104,754
15,209		Heinz (H.J.) Co.		596,003
6,013		Hershey Foods Corp.		311,924
17,026		Kellogg Co.		517,165
22,813		Kimberly-Clark Corp.		1,380,186
34,506		(1)Kroger Co., Inc.		685,807
1,634		Longs Drug Stores Corp.		32,986
16,383		Mattel, Inc.		222,194
56,840		McDonald’s Corp.		2,035,583
8,212		(1)Mirage Resorts, Inc.		171,939
13,650		Nabisco Group Holdings Corp.		297,741
62,084		PepsiCo, Inc.		2,526,043
101,363		Philip Morris Cos., Inc.		2,648,108
55,736		Procter & Gamble Co.		3,706,444
5,724		Quaker Oats Co.		421,072
13,515		Ralston Purina Co.		250,872
10,858		Rite Aid Corp.		75,327
20,874		(1)Safeway, Inc.		962,813
37,921		Sara Lee Corp.		682,578
16,559		Seagram Co. Ltd.		789,657
5,862		SUPERVALU, Inc.		122,003
14,034		SYSCO Corp.		588,551
54,171		Time Warner, Inc.		4,276,123
6,407		(1)Tricon Global Restaurants, Inc.		187,805
7,362		UST, Inc.		122,393
24,009		Unilever NV, ADR		1,219,957
64,105		(1)Viacom, Inc., Class B		3,974,510
41,898		Walgreen Co.		1,188,856
5,228		Wendy’s International, Inc.		102,273
6,239		Winn-Dixie Stores, Inc.		98,654
4,882		Wrigley (Wm.), Jr. Co.		390,865
		Total		52,779,248
		Energy—5.6%
3,796		Amerada-Hess Corp.		251,960
4,605		Anadarko Petroleum Corp.		244,353
4,106		Apache Corp.		249,953
790		Arch Coal, Inc.		5,925
3,212		Ashland, Inc.		112,219
13,734		Baker Hughes, Inc.		497,857
4,300		CMS Energy Corp.		97,825
27,407		Chevron Corp.		2,533,435
26,321		Conoco, Inc., Class B		750,148

---

---

Shares				Value
Common Stocks—continued
		Energy—continued
6,269		Constellation Energy Group, Inc.		$    215,105
145,375		Exxon Corp.		12,111,555
18,469		Halliburton Co.		941,919
3,927		Kerr-McGee Corp.		234,393
4,802		New Century Energies, Inc.		161,467
14,531		Occidental Petroleum Corp.		344,203
10,696		Phillips Petroleum Co.		612,346
12,400		Reliant Energy, Inc.		353,400
3,892		(1)Rowan Companies, Inc.		120,895
90,076		Royal Dutch Petroleum Co., ADR		5,624,120
22,932		Schlumberger Ltd.		1,686,935
8,582		Sempra Energy		161,449
3,929		Sunoco, Inc.		126,956
11,860		TXU Corp.		423,995
22,454		Texaco, Inc.		1,289,702
8,639		Transocean Sedco Forex, Inc.		424,931
10,544		Union Pacific Resources Group, Inc.		249,761
10,139		Unocal Corp.		389,718
		Total		30,216,525
		Finance—13.4%
10,850		AFLAC, Inc.		560,808
10,716		AON Corp.		376,399
5,775		Aetna, Inc.		385,481
34,016		Allstate Corp.		901,424
56,973		American Express Co.		3,065,860
10,588		American General Corp.		678,294
64,941		American International Group, Inc.		7,309,921
16,610		AmSouth Bancorporation		300,018
30,356		Associates First Capital Corp., Class A		832,893
14,507		BB&T Corp.		425,236
50,040		Bank One Corp.		1,654,447
73,150		Bank of America Corp.		4,064,397
31,953		Bank of New York Co., Inc.		1,499,794
4,793		Bear Stearns Cos., Inc.		188,724
6,804		CIGNA Corp.		604,280
8,265		Capital One Financial Corp.		390,521
35,529		Chase Manhattan Corp.		2,653,572
7,445		Chubb Corp.		521,150
7,014		Cincinnati Financial Corp.		281,546
142,108		Citigroup, Inc.		8,837,341
6,534		Comerica, Inc.		330,784
13,609		Conseco, Inc.		85,056
4,699		Countrywide Credit Industries, Inc.		144,494

Shares				Value
Common Stocks—continued
		Finance—continued
43,107		Fannie Mae		$  2,591,808
29,416		Freddie Mac		1,309,012
12,496		Fifth Third Bancorp		849,728
40,709		First Union Corp.		1,432,448
41,437		Firstar Corp.		1,059,233
38,532		Fleet Boston Financial Corp.		1,456,991
10,629		Franklin Resources, Inc.		318,870
7,173		Golden West Financial Corp.		299,473
9,356		Hartford Financial Services Group, Inc.		553,173
20,281		Household International, Inc.		953,207
9,752		Huntington Bancshares, Inc.		188,945
7,344		J.P. Morgan & Co., Inc.		945,540
4,452		Jefferson-Pilot Corp.		305,518
18,671		KeyCorp		392,091
5,322		Lehman Brothers Holdings, Inc.		410,792
8,488		Lincoln National Corp.		328,910
4,776		Loews Corp.		314,619
4,173		MBIA Insurance Corp.		241,252
33,681		MBNA Corp.		938,858
4,600		MGIC Investment Corp.		227,988
11,259		Marsh & McLennan Cos., Inc.		1,239,194
21,940		Mellon Bank Corp.		846,061
15,350		Merrill Lynch & Co., Inc.		1,513,894
47,632		Morgan Stanley, Dean Witter & Co.		3,426,527
26,888		National City Corp.		537,760
7,441		Niagara Mohawk Holdings, Inc.		109,290
9,330		Northern Trust Corp.		614,031
5,560		Old Kent Financial Corp.		184,870
12,639		PNC Bank Corp.		636,690
6,000		PaineWebber Group, Inc.		269,625
4,400		Price (T. Rowe) Asscoiates		168,025
3,045		Progressive Corp.		285,849
5,948		Providian Financial Corp.		529,000
9,290		Regions Financial Corp.		210,186
5,724		SAFECO Corp.		140,596
6,961		SLM Holding Corp.		234,499
54,376		Schwab (Charles) Corp.		1,563,435
6,730		SouthTrust Corp.		182,131
9,452		St. Paul Cos., Inc.		354,450
6,742		State Street Corp.		751,733
7,293		Summit Bancorp		209,218
13,350		SunTrust Banks, Inc.		797,663
11,679		Synovus Financial Corp.		233,580
5,442		Torchmark Corp.		147,954
31,485		U.S. Bancorp, Inc.		818,610
9,960		UNUM Corp.		225,968

---

---

Shares				Value
Common Stocks—continued
		Finance—continued
5,716		Union Planters Corp.		$    178,625
8,517		Wachovia Corp.		588,738
24,921		Washington Mutual, Inc.		716,479
69,682		Wells Fargo Co.		3,153,111
		Total		72,078,688
		Health Care—10.4%
63,751		Abbott Laboratories		2,593,869
5,544		Allergan, Inc.		380,803
3,660		(1)Alza Corp.		185,974
54,916		American Home Products Corp.		2,958,599
42,764		(1)Amgen, Inc.		2,720,859
2,252		Bard (C.R.), Inc.		102,747
2,356		Bausch & Lomb, Inc.		163,742
12,014		Baxter International, Inc.		798,931
10,385		Becton, Dickinson & Co.		303,112
6,270		(1)Biogen, Inc.		341,715
4,713		Biomet, Inc.		169,963
16,505		(1)Boston Scientific Corp.		422,941
83,474		Bristol-Myers Squibb Co.		4,596,287
11,212		Cardinal Health, Inc.		727,378
23,926		Columbia/HCA Healthcare Corp.		646,002
2,402		(1)Edwards Lifesciences Corp.		48,791
12,656		Guidant Corp.		640,710
17,321		(1)HEALTHSOUTH Corp.		111,504
7,031		(1)Humana, Inc.		39,549
58,486		Johnson & Johnson		5,234,497
46,195		Lilly (Eli) & Co.		3,516,594
2,997		Mallinckrodt, Inc.		86,726
4,656		(1)Manor Care, Inc.		32,883
11,400		McKesson HBOC, Inc.		187,388
49,078		Medtronic, Inc.		2,533,652
99,156		Merck & Co., Inc.		7,399,517
8,368		PE Corp.—PE Biosystems Group		464,424
163,548		Pfizer, Inc.		7,288,108
51,713		Pharmacia & Upjohn, Inc.		2,685,844
4,840		(1)Quintiles Transnational Corp.		71,390
61,734		Schering Plough Corp.		2,986,382
3,535		(1)St. Jude Medical, Inc.		127,039
13,007		(1)Tenet Healthcare Corp.		333,304
7,373		UnitedHealth Group, Inc.		549,749
35,875		Warner-Lambert Co.		4,381,234
412		(1)Water Pik Technologies, Inc.		2,652
		Total		55,834,859
		Technology—27.6%
15,064		(1)3Com Corp.		629,864
11,000		(1)ADC Telecommunications, Inc.		739,062

Shares				Value
Common Stocks—continued
		Technology—continued
4,330		(1)Adaptec, Inc.		$     85,247
5,520		Adobe System, Inc.		621,345
6,082		(1)Advanced Micro Devices, Inc.		495,303
7,200		(1)Altera Corp.		618,300
3,490		Allegheny Technologies Inc.		78,743
94,940		(1)America Online, Inc.		5,031,820
15,000		(1)Analog Devices, Inc.		1,155,000
3,617		(1)Andrew Corp.		127,047
6,631		(1)Apple Computer, Inc.		557,004
31,548		(1)Applied Materials, Inc.		2,634,258
1,948		Autodesk, Inc.		72,441
25,781		Automatic Data Processing, Inc.		1,416,344
9,054		(1)BMC Software, Inc.		398,376
7,319		(1)Cabletron Systems, Inc.		167,880
6,010		(1)Ceridian Corp.		144,991
286,244		(1)Cisco Systems, Inc.		16,298,018
7,440		(1)Citrix Systems, Inc.		391,530
70,962		Compaq Computer Corp.		1,862,752
24,611		Computer Associates International, Inc.		1,267,466
6,657		(1)Computer Sciences Corp.		638,656
15,438		(1)Compuware Corp.		157,275
5,860		(1)Comverse Technology, Inc.		535,458
8,850		(1)Conexant Systems, Inc.		332,981
107,542		(1)Dell Computer Corp.		4,637,749
43,261		(1)EMC Corp.		5,031,795
13,608		Eastman Kodak Co.		813,078
20,699		Electronic Data Systems Corp.		1,331,204
6,194		Equifax, Inc.		171,496
18,144		First Data Corp.		1,017,198
13,130		(1)Gateway 2000, Inc.		649,935
32,678		(1)Global Crossing Ltd.		818,992
42,266		Hewlett-Packard Co.		5,077,203
5,694		Ikon Office Solutions, Inc.		28,470
140,642		Intel Corp.		17,536,299
76,220		International Business Machines Corp.		8,179,359
7,344		(1)KLA-Tencor Corp.		363,987
11,868		(1)LSI Logic Corp.		625,295
5,400		(1)Lexmark International Group, Inc., Class A		376,650
13,000		Linear Technology Corp.		767,812
133,184		Lucent Technologies, Inc.		7,641,432
11,900		(1)Maxim Integrated Products, Inc.		754,906
21,538		Micron Technology, Inc.		1,506,314
218,674		(1)Microsoft Corp.		13,680,792
29,514		Motorola, Inc.		2,766,938

---

---

Shares				Value
Common Stocks—continued
		Technology—continued
4,050		(1)NCR Corp.		$    170,859
6,980		(1)National Semiconductor Corp.		375,175
12,000		(1)Network Appliance, Inc.		774,750
117,176		Nortel Networks Corp.		6,364,122
13,490		(1)Novell, Inc.		112,136
119,880		(1)Oracle Corp.		8,616,375
11,035		(1)Parametric Technology Corp.		117,247
11,138		(1)Peoplesoft, Inc.		153,844
1,878		PerkinElmer, Inc.		98,595
1,842		Polaroid Corp.		35,343
14,155		Raytheon Co., Class B		331,758
2,450		(1)Sapient Corp.		244,847
6,296		Scientific-Atlanta, Inc.		354,937
9,572		(1)Seagate Technology, Inc.		555,176
1,117		Shared Medical Systems Corp.		81,122
7,800		(1)Siebel Systems, Inc.		912,600
7,874		(1)Silicon Graphics, Inc.		52,165
64,448		(1)Sun Microsystems, Inc.		4,938,328
1,988		Tektronix, Inc.		106,358
1,177		(1)Teledyne Technologies, Inc.		17,140
16,320		(1)Tellabs, Inc.		1,059,780
7,150		(1)Teradyne, Inc.		614,900
66,516		Texas Instruments, Inc.		4,805,781
11,570		(1)Unisys Corp.		313,836
16,200		(1)Veritas Software Corp.		1,887,300
28,000		Xerox Corp.		759,500
13,400		(1)Xilinx, Inc.		1,020,075
22,000		(1)Yahoo, Inc.		2,487,375
		Total		147,595,489
		Transportation—0.6%
6,290		(1)AMR Corp.		179,265
19,705		Burlington Northern Santa Fe		465,531
9,169		CSX Corp.		199,426
5,998		Delta Air Lines, Inc.		308,522
11,896		(1)FDX Corp		420,821
4,920		Kansas City Southern Industries, Inc.		330,870
15,929		Norfolk Southern Corp.		283,735
2,701		Ryder Systems, Inc.		51,825
21,193		Southwest Airlines Co.		406,641
3,222		(1)US Airways Group, Inc.		136,935
10,392		Union Pacific Corp.		439,712
		Total		3,223,283
		Utilities—2.5%
8,574		(1)AES Corp.		748,081
5,764		Ameren Corp.		211,466
8,038		American Electric Power Co., Inc.		285,851

Shares or Principal Amount				Value
Common Stocks—continued
		Utilities—continued
9,185		Burlington Resources, Inc.		$    420,214
6,657		Carolina Power & Light Co.		228,834
8,931		Central & SouthWest Corp.		185,876
6,662		Cinergy Corp.		177,376
8,934		Coastal Corp.		548,324
3,505		Columbia Energy Group		226,730
9,345		Consolidated Edison Co.		304,881
6,094		DTE Energy Co.		210,624
10,039		Dominion Resources, Inc.		459,284
15,205		Duke Energy Corp.		885,691
945		Eastern Enterprises		58,295
14,816		Edison International		316,692
9,622		El Paso Energy Corp.		495,533
29,386		Enron Corp.		2,141,505
10,359		Entergy Corp.		300,411
7,598		FPL Group, Inc.		376,101
9,959		FirstEnergy Corp.		250,220
4,100		Florida Progress Corp.		203,462
5,375		GPU, Inc.		151,844
2,001		NICOR, Inc.		73,412
6,409		Northern States Power Co.		141,799
1,324		ONEOK, Inc.		38,562
8,042		PECO Energy Co.		353,345
16,068		P G & E Corp.		416,764
6,804		P P & L Resources, Inc.		160,745
1,487		Peoples Energy Corp.		50,465
3,570		Pinnacle West Capital Corp.		127,628
9,187		Public Service Enterprises Group, Inc.		342,216
29,289		Southern Co.		759,683
6,400		Tosco Corp.		196,000
12,921		USX Corp.		351,290
9,123		Unicom Corp.		380,315
17,969		Williams Cos., Inc. (The)		746,837
		Total		13,326,356
		Total Common Stocks (identified cost $233,973,129)		508,711,252
(2) U.S. Treasury Obligation—0.6%
$ 3,000,000		United States Treasury Bill, 6/15/2000 (identified cost $2,993,459)		2,994,780
(3) Repurchase Agreement—4.5%
24,372,547		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		24,372,547
		Total Investments (identified cost $261,339,135)		$536,078,579

---

---

Shares				Value
Common Stocks—87.5%
		Basic Materials—13.9%
162,000		(1)American Pacific Corp.		$    951,750
25,500		(1)Bush Boake Allen, Inc.		831,937
145,200		(1)Chase Industries, Inc.		1,343,100
105,900		Cleveland Cliffs, Inc.		2,693,831
83,300		Deltic Timber Corp.		1,780,538
55,500		Greif Brothers Corp., Class A		1,720,500
152,300		Lafarge Corp.		3,883,650
14,900		NCH Corp.		596,000
108,650		Roanoke Electric Corp.		1,439,613
107,000		Rock-Tenn Co.		1,023,188
61,400		Southdown, Inc.		3,768,425
76,400		Texas Industries, Inc.		2,191,725
169,900		Universal Corp.		3,939,556
		Total		26,163,813
		Capital Goods—16.4%
135,300		Amcast Industrial Corp.		1,166,962
122,100		Ampco-Pittsburgh Corp.		1,350,731
82,700		Briggs & Stratton Corp.		3,308,000
98,150		Butler Manufacturing Co.		2,189,972
100,800		Centex Construction Products, Inc.		3,024,000
112,500		(1)EMCOR Group, Inc.		2,482,031
10,500		Franklin Electronics, Inc.		735,000
106,300		GP Strategies Corp.		405,269
116,300		Granite Construction, Inc.		3,031,069
27,500		Millipore Corp.		1,990,313
152,400		(1)Morrison Knudsen Corp.		1,181,100
9,000		(1)Mueller Industries, Inc.		264,375
180,950		Smith (A.O.) Corp.		3,799,950
90,400		Superior Industries International, Inc.		2,525,550
95,000		(1)Todd Shipyards Corp.		676,875
29,800		Twin Disc, Inc.		461,900
38,700		USG Corp.		1,458,506
94,800		World Fuel Services Corp.		645,825
		Total		30,697,428
		Communication Services—1.1%
19,700		(1)Emmis Communications Corp., Class A		672,262
29,800		Galileo International, Inc.		670,500
32,300		(1)Young Broadcasting, Inc., Class A		742,900
		Total		2,085,662

Shares				Value
Common Stocks—continued
		Consumer Cyclicals—9.4%
13,500		Allen Organ Co., Class B		$    864,000
240,700		(1)Barnett, Inc.		2,271,606
81,500		Boston Acoustics, Inc.		855,750
63,000		(1)Buckhead America Corp.		318,937
23,100		(1)Coastcast Corp.		441,787
33,350		Cordiant Communications Group PLC, ADR		639,903
14,500		Deluxe Corp.		357,969
4,200		Grey Advertising, Inc.		1,976,100
57,750		(1)GTECH Holdings Corp.		1,274,109
215,550		Intermet Corp.		1,481,906
236,000		Johns Manville Corp.		2,699,250
145,000		(1)Oneita Industries, Inc.		145
44,800		Raven Industries, Inc.		604,800
88,300		Skyline Corp.		1,821,188
167,535		(1)Supreme Industries, Inc., Class A		848,150
119,500		Velcro Industries NV		1,262,219
		Total		17,717,819
		Consumer Services—0.1%
8,220		(1)Imperial Parking Corp.		119,190
		Consumer Staples—5.5%
106,000		(1)800-JR Cigar, Inc.		1,079,875
111,900		(1)Alltrista Corp.		2,748,544
27,034		(1)Chris Craft Industries, Inc.		1,645,695
23,400		(1)Craig Corp.		96,524
2,100		Deb Shops, Inc.		25,987
30,000		(1)GC Cos., Inc.		793,125
265,450		(1)M & F Worldwide Corp.		1,360,431
231,400		(1)Omega Protein Corp.		650,813
40,800		(1)On Command Corp.		657,900
23,050		(1)Payless ShoeSource, Inc.		1,164,025
		Total		10,222,919
		Energy—4.6%
26,400		(1)Atwood Oceanics, Inc.		1,443,750
73,200		Berry Petroleum Co., Class A		1,148,325
68,328		(1)Forest Oil Corp.		1,088,977
76,500		(1)Global Marine, Inc.		2,165,906
211,750		(1)Kaneb Services, Inc.		1,032,281
146,020		(1)Santa Fe Snyder Corp.		1,843,503
		Total		8,722,742

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---

Shares				Value
Common Stocks—continued
		Finance—22.2%
109,200		Aegis Realty, Inc.		$  1,085,175
24,370		Ace Ltd.		653,421
9,800		Argonaut Group, Inc.		175,175
66,900		CNA Surety Corp.		836,250
29,000		Cameron Financial Corp.		340,750
148,400		Charter Municipal Mortgage Acceptance Co.		1,734,425
200,100		(1)Danielson Holding Corp.		950,475
47,100		Eaton Vance Corp.		2,048,850
214,400		Enhance Financial Services Group, Inc.		2,948,000
46,994		Equity Residential Properties Trust		2,097,107
19,300		First Securityfed Financial, Inc.		219,538
164,400		First Union Real Estate Equity & Mortgage Investments		421,275
88,550		Forest City Enterprises, Inc., Class A		2,623,294
202,500		(1)Healthcare Recoveries, Inc.		708,750
128,800		IPC Holdings Ltd.		1,899,800
99,900		John Nuveen & Co., Inc., Class A		4,127,119
136,400		LaSalle Re Holdings Ltd.		1,909,600
83,500		Leucadia National Corp.		2,176,219
98,600		Liberty Corp.		3,463,325
133,900		Liberty Financial Cos., Inc.		3,155,019
254,300		Meditrust Cos.		476,812
50,500		Merchants Group, Inc.		766,969
83,000		(1)Standard Management Corp.		280,125
164,000		Stewart Information Services Corp.		2,070,500
55,000		Unico American Corp.		331,719
56,200		Virginia Capital Bancshares, Inc.		814,900
24,000		White Mountain Insurance Group, Inc.		3,388,500
		Total		41,703,092
		Health Care—2.8%
82,700		(1)America Service Group, Inc.		1,343,875
37,900		(1)Dura Pharmaceuticals, Inc.		442,956
80,800		(1)Hanger Orthopedic Group, Inc.		388,850
160,266		(1)Per-Se Technologies, Inc.		1,041,727
98,500		(1)Sunrise Medical, Inc.		437,094
92,950		(1)Thermotrex Corp.		923,691
24,500		West Pharmaceutical Services, Inc.		575,750
		Total		5,153,943

Shares				Value
Common Stocks—continued
		Technology—8.1%
56,260		(1)Anacomp, Inc.		$    154,715
11,500		(1)Cypress Semiconductor Corp.		483,719
117,300		(1)ESCO Electronics Corp.		2,067,412
54,700		(1)Eagle Point Software Corp.		273,500
20,400		(1)Electroglas, Inc.		540,600
12,300		(1)Exar Corp.		845,625
20,000		Investment Technology Group, Inc.		675,000
10,400		(1)Kulicke & Soffa Industries		523,250
75,600		Nam Tai Electronics, Inc.		1,152,900
65,500		National Data Corp.		1,445,094
19,500		(1)National Semiconductor Corp.		1,048,125
51,000		(1)Parametric Technology Corp.		541,875
38,749		(1)Phoenix Technology Ltd.		697,482
26,500		(1)Remedy Corp.		1,099,750
33,800		(1)Silicon Valley Group, Inc.		899,925
45,100		(1)Standard Microsystems Corp.		589,119
132,100		United Industrial Corp.		1,164,131
24,000		(1)Xircom, Inc.		990,000
		Total		15,192,222
		Transportation—1.9%
65,625		(1)A.C.L.N. Ltd.		1,853,906
121,800		(1)Consolidated Freightways Corp.		548,100
45,000		USFreightways Corp.		1,234,688
		Total		3,636,694
		Utilities—1.5%
126,100		UGI Corp.		2,789,963
		Total Common Stocks (identified cost $159,113,936)		164,205,487
Preferred Stocks—0.9%
		Consumer Staples—0.3%
151,300		(1)Craig Corp., Pfd., Class A		586,288
		Finance—0.6%
82,000		Price Enterprises, Inc., Cumulative Pfd., Series A, $1.40		1,153,125
		Total Preferred Stocks (identified cost $1,962,318)		1,739,413

---

---

Principal Amount				Value
Corporate Bond—0.2%
		Healthcare—0.2%
$   600,000		Medaphis Corp., Company Guarantee, Series B, 9.50%, 2/15/2005 (identified cost $432,000)		$    465,000
(2) U.S. Treasury Obligation—0.5%
950,000		United States Treasury Bill, 6/15/2000 (identified cost $948,781)		948,347

Shares or Principal Amount				Value
Closed-End Investment Company—0.4%
138,400		(1)Royce FocusTrust, Inc. (identified cost $643,560)		$    700,650
(3) Repurchase Agreement—10.3%
$19,281,161		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		19,281,161
		Total Investments (identified cost $182,381,756)		$187,340,058

---

---

Shares				Value in U.S. Dollars
Common Stocks—78.2%
		Argentina—1.3%
34,680		Banco de Galicia y Buenos Aires SA de CV, Class B, ADR		$    520,200
20,000		Nortel Inversora SA, Class B, ADR		360,000
63,425		(1)PC Holdings SA, Class B, ADR		1,000,365
150,000		Siderca SA, Class A		279,036
25,000		Telecom Argentina SA, ADR		615,625
		Total		2,775,226
		Brazil—6.1%
20,000		Aracruz Cellulose, ADR		335,000
15,000		Companhia Brasileira de Distribuicao Groupo Pao de Acucar, ADR		450,000
40,000		Companhia Cervajaria Brahma, ADR		580,000
57,000		Companhia Vale Do Rio Doce		1,280,197
156,500,000		Embratel Participacoes SA		2,563,325
23,000		(1)Tele Centro Sul Participacoes SA, ADR		1,380,000
162,880		Tele Norte Leste Participacoes SA, ADR		3,196,520
19,000		(1)Telesp Celular Participacoes SA, ADR		719,625
90,000		Unibanco Uniao de Bancos Brasileiros SA, GDR		2,176,875
		Total		12,681,542
		Chile—1.6%
39,045		Banco de A. Edwards, ADR		551,511
15,800		Compania Cervecerias Unidas SA, ADR		351,550
47,000		Compania Telecomunicacion Chile, ADR		928,250
25,000		(1)Distribucion y Servicio D&S SA, ADR		460,938
20,000		Enersis SA, ADR		428,750
30,000		(1)Quinenco SA, ADR		303,750
10,578		Sociedad Quimica Y Minera De Chile, ADR		239,988
		Total		3,264,737

Shares				Value in U.S. Dollars
Common Stocks—continued
		Croatia—0.5%
40,000		(4)Pliva D.D., GDR		$   464,088
33,250		(1)(4)Zagrebacka Banka, GDR		556,938
		Total		1,021,026
		Czech Republic—1.4%
24,100		(1)Ceske Radiokomunikace, GDR		1,060,400
115,710		Ceska Sporitelna AS		642,004
50,000		(1)SPT Telecom AS		935,484
250,000		(1)Unipetrol		345,806
		Total		2,983,694
		Egypt—0.9%
64,000		(1)Al-Ahram Beverages Co., GDR		1,142,400
50,000		(1)Commercial International Bank Egypt, GDR		525,000
22,000		Suez Cement Co., Class S, GDR		243,100
		Total		1,910,500
		Greece—1.9%
13,686		Alpha Bank AE		581,718
13,875		Commercial Bank of Greece		753,282
13,500		Hellenic Bottling Co., SA		217,633
1,170		Hellenic Technodomiki		28,519
42,188		Hellenic Telecommunication Organization SA		1,041,203
12,433		National Bank of Greece SA		585,455
20,000		(1)STET Hellas Telecommunications SA, ADR		420,000
10,400		Titan Cement Co.		429,948
		Total		4,057,758
		Hong Kong—7.5%
500,000		Amoy Properties Ltd.		296,769
117,000		CLP Holdings Ltd.		543,540
60,000		Cheung Kong (Holdings) Ltd.		548,622
300,000		(1)China Telecom (Hong Kong) Ltd.		2,242,613
340,000		Citic Pacific Ltd.		1,614,424
1,600,000		Cosco Pacific Ltd.		1,190,926
230,000		Dao Heng Bank Group Ltd.		932,722
172,900		HSBC Holdings PLC		1,908,229
100,000		Henderson Land Development Co. Ltd.		391,415

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---

Shares				Value in U.S. Dollars
Common Stocks—continued
		Hong Kong—continued
55,000		Hong Kong Electric Holdings Ltd.		$          184,221
110,000		Hutchison Whampoa Ltd.		1,266,964
120,000		Johnson Electric Holdings Ltd.		885,495
348,000		Li & Fung Ltd.		1,491,636
20,000		Sun Hung Kai Properties Ltd.		121,659
200,000		Swire Pacific Ltd., Class A		1,152,427
125,000		Television Broadcasts Ltd.		810,100
		Total		15,581,762
		Hungary—2.3%
10,354		(1)Antenna Hungaria RT		316,450
15,000		(4)BorsodChem RT, GDR		495,000
15,000		Danubius Hotels RT		304,911
12,000		EGIS RT		518,079
50,000		Matav RT, ADR		1,706,250
18,000		OTP Bank RT, GDR		967,500
14,000		Pick Szeged RT		518,798
		Total		4,826,988
		India—2.3%
60,000		BSES Ltd., GDR		1,131,000
40,000		Gujarat Ambuja Cements Ltd., GDR		169,000
18,000		(4)Hindalco Industries Ltd., GDR		306,000
37,000		Indian Hotels Co. Ltd., GDR		161,875
24,500		Larsen & Toubro Ltd., GDR		219,888
55,000		Mahanagar Telephone Nigam Ltd., GDR		567,875
42,000		Ranbaxy Laboratories Ltd., GDR		703,500
65,000		(4)Reliance Industries Ltd., GDR		1,592,500
		Total		4,851,638
		Indonesia—1.0%
770,000		PT Daya Guna Samudera		58,029
225,000		PT Gudang Garam		292,174
1,742,115		PT Indah Kiat Pulp & Paper Corp.		282,778
517,500		PT Indosat		561,000
419,345		PT Semen Gresik		359,786
1,333,800		PT Telekomunikasi Indonesia		436,868
		Total		1,990,635

Shares				Value in U.S. Dollars
Common Stocks—continued
		Israel—2.7%
340,000		Bank Hapoalim Ltd.		$          978,182
560,000		Bank Leumi Le-Israel		1,221,769
9,250		Koor Industries Ltd.		907,258
13,500		(1)NICE-Systems Ltd., ADR		794,813
10,000		ECI Telecommunications Ltd.		271,250
30,000		Teva Pharmaceutical Industries Ltd.		1,504,675
		Total		5,677,947
		Korea, Republic of—9.0%
50,375		Dongwon Securities		410,310
70,000		(1)(4)Housing & Commercial Bank, Korea, GDR		1,247,750
150,000		(1)Hyundai Engineering & Construction Co.		456,175
49,520		Kookmin Bank		530,493
50,500		(1)Korea Telecom Corp., ADR		1,868,500
122,000		Korean Air Co. Ltd.		767,968
25,000		LG Chemical Ltd.		486,941
43,118		(1)LG Electronics, Inc., GDR		597,400
12,069		LG Information & Communication Ltd.		703,090
7,500		Pohang Iron and Steel Co. Ltd.		581,341
20,000		SK Corp.		320,496
2,370		SK Telecom Co. Ltd.		807,835
37,660		SK Telecom Co. Ltd., ADR		1,508,754
27,875		Samsung Display Devices Co.		1,061,200
25,027		Samsung Electronics Co.		6,824,548
3,177		Samsung Fire & Marine Insurance		72,293
27,000		Ssangyong Oil Refining Co.		448,207
		Total		18,693,301
		Malaysia—7.4%
315,000		APM Automotive Holdings Berhad		1,301,447
540,000		Commerce Asset Holdings Berhad		1,548,947
245,000		Genting Berhad		915,526
820,000		Malayan Banking Berhad		3,495,789
150,000		Malaysian International Shipping Berhad		252,632
120,000		Malaysian Pacific Industries		1,350,000
200,000		New Straits Times		600,000
950,000		Public Bank Berhad		1,337,500

---

---

Shares				Value in U.S. Dollars
Common Stocks—continued
		Malaysia—continued
360,000		Resorts World Berhad		$  1,127,368
355,000		Tanjong PLC		999,605
165,000		Telekom Malaysia Berhad		603,553
500,000		Tenaga Nasional Berhad		1,828,947
		Total		15,361,314
		Mexico—9.5%
200,000		Alfa, SA de CV, Class A		545,741
600,000		Carso Global Telecom, Class A-1		1,359,621
370,299		Cemex SA de CV		1,569,195
60,000		Coca-Cola Femsa SA, ADR		911,250
500,000		Controladora Comercial Mexicana SA de CV		436,383
260,000		(1)Corporacion GEO, SA de CV, Class B		450,557
45,000		(1)Fomento Economico Mexicano, SA de CV, ADR		1,712,813
300,000		GPO Continental Sa		302,839
249,800		Grupo Carso SA de CV		761,745
600,000		Grupo Elektra, SA de CV		485,804
650,000		Grupo Financiero Banamex Accival, SA de CV, Class O		2,122,240
75,000		Grupo Mexico SA, Class B		255,521
35,000		Grupo Televisa SA, GDR		1,949,063
110,000		Telefonos de Mexico, Class L, ADR		5,355,625
800,000		Wal Mart de Mexico		1,549,526
		Total		19,767,923
		Peru—0.7%
29,246		Cementos Lima SA		379,784
722,353		Cervecer Backus & Johnston, Class T		226,830
45,000		Cia de Minas Buenaventura SA, Class B		340,037
48,721		Credicorp Ltd.		431,181
		Total		1,377,832
		Philippines—1.0%
3,500,000		Ayala Corp.		558,030
300,000		Bank of The Philippine Islands		573,271
48,500		Philippine Long Distance Telephone Co., ADR		854,813
5,100,000		Solid Group, Inc.		176,975
		Total		2,163,089

Shares				Value in U.S. Dollars
Common Stocks—continued
		Poland—2.0%
25,000		Bank Handlowy W. Warszawie		$      379,977
6,500		Bank Slaski SA		349,033
54,756		(1)Budimex SA		353,827
75,000		Elektrim Spolka Akcyina SA		982,935
55,000		KGHM Polska Miedz SA		400,455
40,000		(1)Orbis SA		309,443
45,000		(4)Polski Koncern Naftowy SA, GDR		421,875
8,000		Softbank SA		342,207
50,000		(1)(4)Telekomunikacja Polska SA, GDR		348,750
50,000		WBK (Wielkopolski Bank Kreditowy SA)		267,349
		Total		4,155,851
		Romania—0.0%
266,478		(1)Terapia SA		13,001
		Russia—2.3%
702,000		Aeroflot		122,850
34,142		Kubanelectrosvyaz		413,972
35,000		Lukoil Holding Co., Class B, ADR		1,920,800
60,000		(1)Sun Interbrew Ltd., Class A		120,000
60,000		(4)Sun InterBrew Ltd., Class B		237,000
140,000		Surgutneftegaz		2,002,000
16,000		(1)Udmurt Telecom		15,600
		Total		4,832,222
		Slovakia—0.3%
275,000		(4)Slovakofarna AS, GDR		634,500
		South Africa—6.3%
75,000		ABSA Group Ltd.		274,390
20,000		(1)Anglo American PLC		868,867
70,504		Bidvest Group Ltd.		455,191
25,000		Coronation Holdings Ltd.		400,287
50,000		(1)DataTec Ltd.		322,812
70,000		De Beers Consolidated Mines, ADR		1,522,500
120,763		Dimension Data Holdings Ltd.		840,316
30,000		Impala Platinum Holdings Ltd.		1,002,869
40,901		Imperial Holdings Ltd.		302,210

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---

Shares				Value in U.S. Dollars
Common Stocks—continued
		South Africa—continued
100,000		Iscor Ltd.		$          223,816
90,000		Johnnic Holdings Ltd.		1,131,133
19,790		Mobile Industries Ltd.		596
40,053		Mobile Industries Ltd., Class N		1,149
60,000		Nedcor Ltd.		1,144,907
800,000		Profurn Ltd.		436,154
1,300,000		(1)Sanlam Ltd.		1,402,583
100,000		Sappi Ltd.		746,055
100,000		Sasol Ltd.		654,950
225,000		(1)South African Breweries PLC		1,371,951
		Total		13,102,736
		Taiwan, Republic of China—3.3%
59,446		Advanced Semiconductor Engineering Inc., GDR		971,942
73,330		Asia Cement Corp., GDR		546,309
80,000		Asustek Computer, Inc., GDR		970,000
55,000		China Steel Corp., GDR		808,500
32,207		(1)GVC Corp., GDR		148,957
54,528		(1)Taiwan Semiconductor Manufacturing Co., ADR		1,925,520
38,016		(1)Uni-President Enterprises Co., GDR		273,715
76,146		(1)Yageo Corp., GDR		685,314
52,179		(1)Yang Ming Marine Transport, GDR		470,915
		Total		6,801,172
		Thailand—1.0%
65,000		BEC World Public Company Ltd.		397,908
100,000		Hana Microelectronics Co., Ltd.		765,208
103,600		Shinawatra Computer Co.		517,934
650,000		Thai Farmers Bank Co.		493,241
		Total		2,174,291
		Turkey—4.7%
47,443,828		Akbank T.A.S.		732,098
21,520,000		Aksigorta		463,153
2,200,000		Alcatel Teletas		544,952
8,500,000		Arcelik AS		552,262
35,000,000		Dogan Sirketler Grubu Holding AS		810,119
4,027,000		Ege Biracilik Ve Malt Sanayii AS		317,241
14,000,000		Erciyas Biracilik Ve Malt Sanayii		727,686

Shares				Value in U.S. Dollars
Common Stocks—continued
		Turkey—continued
17,240,000		Eregli Demir Ve Celik Fabrikalari T.A.S.		$          798,083
105,750,000		Haci Omer Sabanci		1,356,980
13,490,936		Koc Holding AS		1,139,493
8,140,000		T IS Bankasi		228,076
2,500,000		Vestel Elektronik Sanayi Ve Ticaret AS		781,694
104,500,000		Yapi ve Kredi Bankasi AS		1,290,019
		Total		9,741,856
		Venezula—1.2%
50,000		Compania Anonima Nacional Telefonos de Venezuela, Class D, ADR		1,421,875
1,903,032		La Electricidad de Caracas		982,977
70,000		Mavesa SA, ADR		188,125
		Total		2,592,977
		Total Common Stocks (identified cost $136,623,398)		163,035,518
Preferred Stocks—4.0%
		Brazil—3.5%
50,000,000		Centrais Eletricas Brasileiras SA, Preference, Series B		846,343
55,251,630		Companhia Energetica de Minas Gerais, Preference		850,491
120,000,000		Companhia Paranaense de Energia-Copel, Preference, Series B		966,311
130,000,000		Gerdau SA , Preference		1,476,965
14,000,000		Petroleo Brasileiro SA, Preference		3,213,366
66,740		Telecomunicacoes de Minas Gerais, Preference, Series B		2,175
66,740		Telemig Celular Participacoes SA, Series C		1,459
		Total		7,357,110
		Russia—0.5%
8,000,000		Surgutneftegaz, Pfd.		1,060,000
		Total Preferred Stocks (identified cost $6,904,626)		8,417,110

---

---

Shares or Principal Amount				Value in U.S. Dollars
Rights—0.0%
		Turkey—0.0%
11,000,000		(1)T IS Bankasi, Rights (identified cost $0)		$            73,256
Warrants—0.0%
		Indonesia—0.0%
233,350		(1)PT Bank Pan Dagang Indonesia		27
163,544		(1)PT Indah Kiat Pulp & Paper Corp.		28,253
		Total		28,280
		Mexico—0.0%
23,000		(1)Cemex SA de CV		13,302
		Philippines—0.0%
500,000		(1)Belle Corp.		2,286
		Thailand—0.0%
9,375		(1)Thai Farmers Bank Co.		622
		Total Warrants (identified cost $20,508)		44,490
Convertible Bonds—0.0%
		Brazil—0.0%
$        53,500		Companhia Vale Do Rio Doce, Conv. Deb., 12/12/2009		293
		South Africa—0.0%
3,781		Mobile Industries Ltd., Conv. Sub. Deb., 6.00%, 12/31/2049		4
		Total Corporate Bonds (identified cost $753)		297
Closed-End Investment Companies—8.8%
		Bulgaria—0.1%
65,000		Framlington Bulgaria Fund		211,250

Shares or Principal Amount				Value in U.S. Dollars
Closed-End Investment Companies—continued
		Channel Islands—0.2%
335		(1)First Hungary Fund Ltd.		$          494,125
		India—1.4%
35,000		India Fund, Inc.		428,750
10,000		India I.T. Fund		570,000
175,000		(1)The Morgan Stanley India Investment Fund, Inc.		1,914,063
		Total		2,912,813
		Romania—0.2%
760		(1)Romania Investment Fund Ltd.		304,000
		South Africa—0.9%
40,000		ASA Ltd.		612,500
105,657		Southern Africa Fund, Inc.		1,287,695
		Total		1,900,195
		Taiwan, Republic of China—5.9%
90,000		Formosa Growth Fund Ltd.		2,522,700
550,000		ROC Taiwan Fund		4,925,625
251,100		Taiwan Fund, Inc.		4,786,594
		Total		12,234,919
		Ukraine—0.1%
6,667		(1)Societe Generale Ukraine Fund		263,347
		Total Closed-End Investment Companies (identified cost $18,529,893)		18,320,649
Open-End Investment Company—3.5%
7,218,557		Bank of New York Cash Reserve Fund (at cost)		7,218,557
(3) Repurchase Agreement—5.4%
$11,276,129		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		11,276,129
		Total Investments (identified cost $180,573,864)		$  208,386,006

---

---

Shares				Value
Common Stocks—93.7%
		Basic Materials—1.7%
153,436		Du Pont (E.I.) de Nemours & Co.		$      7,518,364
		Capital Goods—7.5%
344,262		General Electric Co.		18,116,788
84,101		Honeywell, Inc.		4,599,273
169,033		United Technologies Corp.		10,215,932
		Total		32,931,993
		Communication Services—6.0%
134,205		AT&T Corp.		4,655,236
83,364		(1)Global Crossing Ltd.		2,089,310
307,488		(1)MCI Worldcom, Inc.		11,569,236
52,520		(1)NEXTEL Communications, Inc., Class A		4,864,665
65,955		Vodafone AirTouch PLC, ADR		3,021,563
		Total		26,200,010
		Consumer Cyclicals—5.9%
62,526		Circuit City Stores, Inc.		3,114,576
38,307		(1)Federated Department Stores, Inc.		1,474,819
21,771		Gannett Co., Inc.		1,409,672
66,699		Home Depot, Inc.		3,255,745
43,322		Lowe’s Cos., Inc.		2,017,181
48,741		Marriott International, Inc., Class A		1,766,861
33,364		McGraw-Hill Cos., Inc.		1,716,161
194,722		Wal-Mart Stores, Inc.		11,220,855
		Total		25,975,870
		Consumer Staples—8.8%
108,697		(1)AT&T Corp.—Liberty Media Group, Inc., Class A		4,816,636
80,336		CVS Corp.		3,494,616
57,110		(1)Clear Channel Communications, Inc.		4,276,111
126,785		Comcast Corp., Class A		4,801,982
209,832		(1)Kroger Co., Inc.		4,170,411
80,661		PepsiCo, Inc.		3,281,894
102,597		Time Warner, Inc.		8,098,751
93,260		(1)Viacom, Inc., Class B		5,782,120
		Total		38,722,521

Shares				Value
Common Stocks—continued
		Energy—5.3%
175,183		Exxon Mobil Corp.		$    14,594,934
141,969		Royal Dutch Petroleum Co., ADR		8,864,189
		Total		23,459,123
		Finance—15.5%
234,060		American Express Co.		12,595,354
111,177		American International Group, Inc.		12,514,361
79,627		Chase Manhattan Corp.		5,947,142
261,387		Citigroup, Inc.		16,255,004
48,987		Fannie Mae		2,945,343
153,000		Freddie Mac		6,808,500
32,411		Marsh & McLennan Cos., Inc.		3,567,236
11,532		Merrill Lynch & Co., Inc.		1,137,343
145,826		Wells Fargo Co.		6,598,627
		Total		68,368,910
		Health Care—10.5%
121,486		Abbott Laboratories		4,942,962
154,988		Bristol-Myers Squibb Co.		8,534,027
93,960		Johnson & Johnson		8,409,420
98,565		Medtronic, Inc.		5,088,418
102,128		Merck & Co., Inc.		7,621,302
265,671		Pfizer, Inc.		11,838,964
		Total		46,435,093
		Technology—29.5%
400,060		(1)Cisco Systems, Inc.		22,778,416
131,765		(1)EMC Corp.		15,325,917
24,562		(1)I2 Technologies, Inc.		2,612,783
120,000		Intel Corp.		14,962,500
122,649		(1)JDS Uniphase Corp.		10,793,112
118,503		(1)Microsoft Corp.		7,413,844
173,036		Nokia Corp., ADR		8,997,872
127,783		Nortel Networks Corp.		6,940,214
213,503		(1)Sun Microsystems, Inc.		16,359,667
222,576		Texas Instruments, Inc.		16,081,116
65,427		(1)Veritas Software Corp.		7,622,246
		Total		129,887,687

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---

Shares or Principal Amount				Value
Common Stocks—continued
		Utilities—3.0%
95,300		Duke Energy Corp.		$      5,551,225
104,900		Enron Corp.		7,644,587
		Total		13,195,812
		Total Common Stocks (identified cost $228,083,168)		412,695,383
(2) U.S. Treasury Obligation—0.3%
$ 1,500,000		United States Treasury Bill, 6/15/2000 (identified cost $1,496,728)		1,496,728

Principal Amount				Value
(3) Repurchase Agreement—6.0%
$26,228,694		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		$    26,228,694
		Total Investments (identified cost $255,808,590)		$  440,420,805

---

---

Shares				Value
Common Stocks—54.6%
		Basic Materials—2.0%
28,024		Alcoa, Inc.		$      1,637,652
51,534		Du Pont (E.I.) de Nemours & Co.		2,525,166
65,689		Praxair, Inc.		2,758,938
57,601		Rohm & Haas Co.		1,965,634
98,678		Weyerhaeuser Co.		4,896,896
		Total		13,784,286
		Capital Goods—4.4%
198,798		General Electric Co.		10,461,745
90,075		Honeywell International, Inc.		4,925,977
70,237		Ingersoll-Rand Co.		3,200,173
38,576		(1)Sanmina Corp.		2,454,398
99,216		Tyco International Ltd.		4,669,353
84,914		United Technologies Corp.		5,131,990
		Total		30,843,636
		Communication Services—3.1%
131,514		(1)Global Crossing Ltd.		3,296,070
201,904		(1)MCI Worldcom, Inc.		7,596,638
30,611		(1)NEXTEL Communications, Inc., Class A		2,835,344
63,889		SBC Communications, Inc.		2,791,151
36,862		Sprint Corp.		2,230,151
61,052		(1)Sprint PCS Group		3,388,386
		Total		22,137,740
		Consumer Cyclicals—2.7%
36,112		Black & Decker Corp.		1,318,088
74,697		Circuit City Stores, Inc.		3,720,844
50,975		(1)Federated Department Stores, Inc.		1,962,537
91,362		Lowe’s Cos., Inc.		4,254,043
59,994		McGraw-Hill Cos., Inc.		3,085,941
78,890		Wal-Mart Stores, Inc.		4,546,036
		Total		18,887,489
		Consumer Staples—5.3%
54,321		(1)AT&T Corp.-Liberty Media Group, Inc., Class A		2,407,099
114,543		CVS Corp.		4,982,620
41,689		(1)Clear Channel Communications, Inc.		3,121,464
87,401		Comcast Corp., Class A		3,310,313
50,007		Kimberly-Clark Corp.		3,025,423

Shares				Value
Common Stocks—continued
		Consumer Staples—continued
275,857		(1)Kroger Co., Inc.		$      5,482,658
168,405		(1)Outback Steakhouse, Inc.		5,104,792
64,165		Time Warner, Inc.		5,065,025
82,921		(1)Viacom, Inc., Class B		5,141,102
		Total		37,640,496
		Energy—3.7%
62,694		BP Amoco PLC, ADR		3,408,986
151,703		Conoco, Inc., Class A		4,058,055
99,936		Exxon Mobil Corp.		8,325,918
84,559		Royal Dutch Petroleum Co., ADR		5,279,653
64,778		Schlumberger Ltd.		4,765,232
		Total		25,837,844
		Finance—8.5%
131,496		American Express Co.		7,076,128
22,542		American General Corp.		1,444,097
80,012		American International Group, Inc.		9,006,351
76,970		Bank of America Corp.		4,276,646
52,773		Bank of New York Co., Inc.		2,477,033
48,545		Chase Manhattan Corp.		3,625,705
192,764		Citigroup, Inc.		11,987,511
69,493		Freddie Mac		3,092,438
25,558		First Union Corp.		899,322
29,519		MBIA, Inc.		1,706,567
65,335		MBNA Corp.		1,821,213
22,370		Marsh & McLennan Cos., Inc.		2,462,098
25,666		Morgan Stanley, Dean Witter & Co.		1,846,348
44,349		SunTrust Banks, Inc.		2,649,853
130,632		Wells Fargo Co.		5,911,098
		Total		60,282,408
		Healthcare—5.9%
15,644		American Home Products Corp.		842,820
33,213		(1)Amgen, Inc.		2,113,177
80,919		Bristol-Myers Squibb Co.		4,455,602
6,628		Genentech, Inc.		711,681
25,761		Guidant Corp.		1,304,151
80,779		Johnson & Johnson		7,229,720
39,387		Lilly (Eli) & Co.		2,998,335
64,281		Medtronic, Inc.		3,318,507
78,586		Merck & Co., Inc.		5,864,480
167,297		Pfizer, Inc.		7,455,173

---

---

Shares or Principal Amount				Value
Common Stocks—continued
		Healthcare—continued
43,256		Warner-Lambert Co.		$    5,282,639
		Total		41,576,285
		Technology—17.1%
337,822		(1)Cisco Systems, Inc.		19,234,740
99,404		(1)EMC Corp.		11,561,928
22,772		(1)I2 Technologies, Inc.		2,422,371
61,095		Intel Corp.		7,617,783
91,783		(1)JDS Uniphase Corp.		8,076,904
102,616		(1)Microsoft Corp.		6,419,913
104,582		(1)Network Appliance, Inc.		6,752,075
160,952		Nokia Oyj, Class A, ADR		8,369,504
109,373		Nortel Networks Corp.		5,940,321
44,212		RF Micro Devices, Inc.		4,642,260
28,545		SDL, Inc.		6,467,227
164,180		(1)Sun Microsystems, Inc.		12,580,292
143,392		Texas Instruments, Inc.		10,360,072
87,803		(1)Veritas Software Corp.		10,229,049
		Total		120,674,439
		Transportation—0.4%
136,381		Southwest Airlines Co.		2,616,810
		Utilities—1.5%
76,504		Duke Energy Corp.		4,456,358
84,247		Enron Corp.		6,139,500
		Total		10,595,858
		Total Common Stocks (identified cost $250,592,067)		384,877,291
Asset-Backed Securities—1.7%
$  4,000,000		American Express Credit Account Master Trust 1997-1, Class A, 6.40%, 4/15/2005		3,922,480
1,000,000		AT&T Universal Card Master Trust 1995-2, Class A, 5.95%, 10/17/2002		995,620
2,025,000		Carco Auto Loan Master Trust 1999-4, Class A, 6.43%, 11/15/2004		1,973,221
1,350,000		Chase Credit Card Master Trust, Class A, 6.30%, 4/15/2003		1,348,731
629,500		Deutsche Mortgage and Asset Receiving Corp. 1998-C1, Class D, 7.231%, 6/15/2031		567,366

Principal Amount				Value
Asset-Backed Securities—continued
$ 7,869,571		Deutsche Mortgage and Asset Receiving Corp. 1998-C1, Class X, 1.000%, 6/15/2031		$      393,479
2,100,000		DLJ Commercial Mortgage Corp. 1999-CG1, Class A1B, 6.46%, 1/10/2009		1,913,271
1,000,000		First Omni Bank Credit Card Master Trust, 1996-A, Class A, 6.65%, 9/15/2003		993,430
78,055		Prudential Home Mortgage Securities 1993-60, Class A1, 6.75%, 12/25/2023		77,640
		Total Asset-Backed Securities (identified cost $12,901,299)		12,185,238
Collateralized Mortgage Obligation—0.2%
1,510,000		First Union National Bank 2000-C1, Class A2, 7.841%, 3/15/2010		1,499,583
		Total Collateralized Mortgage Obligation (identified cost $1,517,483)		1,499,583
Corporate Bonds—13.9%
		Basic Materials—0.3%
1,365,000		Du Pont (E.I.) de Nemours & Co., Note, 6.75%, 10/15/2004		1,332,022
750,000		Temple-Inland, Inc., Unsecd. Note, 7.25%, 9/15/2004		724,733
		Total		2,056,755
		Communication Services—1.2%
2,500,000		AT&T Corp., Global Bond, 6.00%, 3/15/2009		2,182,300
680,000		GTE California, Inc., Deb., Series G, 5.50%, 1/15/2009		568,772
1,000,000		New England Telephone & Telegraph, Note, 5.875%, 4/15/2009		861,450
3,980,000		New York Telephone Co., Deb., 6.00%, 4/15/2008		3,497,823
1,300,000		Southwestern Bell Telephone Co., MTN 7.00%, 8/26/2002		1,283,776
		Total		8,394,121

---

---

Principal Amount				Value
Corporate Bonds—continued
		Consumer Cyclicals—0.7%
$    3,000,000		Carnival Corp., Unsecd. Note, 7.05%, 5/15/2005		$      2,826,240
2,000,000		Tribune Co., Note, 6.25%, 11/10/2026		1,959,580
		Total		4,785,820
		Consumer Durables—0.2%
1,450,000		DaimlerChrysler AG, Unsecd. Note, 7.40%, 1/20/2005		1,419,709
		Consumer Staples—0.7%
750,000		Archer-Daniels-Midland Co., Note, 6.625%, 5/1/2029		605,452
5,145,000		Coca Cola Enterprises, Inc., Deb, 6.75%, 1/15/2038		4,177,997
		Total		4,783,449
		Finance—6.8%
1,000,000		American General Finance Corp., Sr. Note, 6.52%, 6/23/2000		999,870
1,000,000		Associates Corp. of North America, Note, 6.00%, 12/1/2002		960,890
1,100,000		Associates Corp. of North America, Sr. Note, 6.50%, 7/15/2002		1,073,831
750,000		Bank of America Corp., Note, 6.625%, 6/15/2004		718,515
865,000		Bankers Trust Corp., Sub. Note, 7.375%, 5/1/2008		814,709
1,000,000		Bear Stearns Cos., Inc., Sr. Note, 6.50%, 7/5/2000		1,000,430
1,250,000		Bradley Operating Ltd. Partnership, Unsecd. Note, 8.875%, 3/15/2006		1,111,187
2,000,000		CIT Group, Inc., MTN, 6.375%, 10/1/2002		1,929,420
500,000		Caterpillar Financial Services Corp., Note, 7.96%, 1/26/2004		499,980
3,000,000		Chase Manhattan Corp., MTN, 5.15%, 12/15/2000		2,966,610
1,075,000		Commercial Credit Co., Deb., 8.70%, 6/15/2010		1,119,870
1,000,000		Commercial Credit Co., Note, 6.50%, 8/1/2004		950,950
1,000,000		Countrywide Home Loans, Inc., Company Guarantee, 6.05%, 3/1/2001		990,200
1,000,000		DaimlerChrysler North America Holding Corp., 6.63%, 9/21/2001		989,480

Principal Amount				Value
Corporate Bonds—continued
		Finance—continued
$    1,000,000		Distribution Financial Services RV Trust, 6.480%, 5/15/2016		$          965,080
1,605,000		First Union National Bank, Charlotte, NC, Sub. Note, 6.18%, 2/15/2036		1,486,760
1,000,000		Ford Motor Credit Co., Note, 7.00%, 9/25/2001		988,790
1,650,000		General Motors Acceptance Corp., MTN, 7.48%, 2/28/2003		1,632,296
1,545,000		Goldman Sachs Group, Inc., Note, MTN, Series B, 7.35%, 10/1/2009		1,439,971
1,000,000		Goldman Sachs Group, Inc., Sr. Unsub., 6.65%, 5/15/2009		896,380
1,500,000		Hartford Life, Inc., Note, 7.10%, 6/15/2007		1,428,900
1,295,000		Household Finance Corp., Note, 6.00%, 5/1/2004		1,201,242
1,000,000		KFW International Finance, Company Guarantee, 8.25%, 11/30/2004		1,018,367
1,500,000		KFW International Finance, Note, 7.00%, 3/1/2013		1,443,855
735,000		Landeskreditbank B-W, Sub. Note, 7.875%, 4/15/2004		740,042
2,000,000		Lehman Brothers Holdings, Inc., Bond, 7.00%, 5/15/2003		1,926,440
1,000,000		Lehman Brothers Holdings, Inc., Note, 6.125%, 7/15/2003		937,580
2,500,000		Merrill Lynch & Co., Inc., Bond, 6.00%, 7/15/2005		2,309,900
500,000		Merrill Lynch & Co., Inc., Note, 7.375%, 5/15/2006		488,070
1,000,000		Morgan Stanley Group, Inc., Note, 7.125%, 1/15/2003		986,340
750,000		Morgan Stanley, Dean Witter & Co., Unsecd. Note, Series I, 7.07%, 2/10/2014		676,530
750,000		National Rural Utilities Cooperative Finance Corp., Collateral Trust, 5.75%, 11/1/2008		650,700
1,000,000		NationsBank Corp., MTN, Series B, 6.20%, 8/15/2003		957,070
1,000,000		NationsBank Corp., Sr. Note, 6.375%, 5/15/2005		940,290
2,500,000		NationsBank Corp., Sub. Note, 7.25%, 10/15/2025		2,185,775

---

---

Principal Amount				Value
Corporate Bonds—continued
		Finance—continued
$   3,500,000		Norwest Financial, Inc., Sr. Note, 6.375%, 9/15/2002		$  3,401,195
1,000,000		Norwest Financial, Inc., Sr. Note, 6.625%, 7/15/2004		955,860
2,380,000		Union Planters Corp., Sub. Note, 6.50%, 3/15/2018		2,034,710
		Total		47,818,085
		Real Estate—0.4%
1,679,288		Rosecliff Realty/General Services Administration, Note, 8.00%, 11/15/2008		1,672,729
1,250,000		Simon DeBartolo Group, Inc., Sr. Note, 6.875%, 10/27/2005		1,145,538
		Total		2,818,267
		Technology—0.8%
4,250,000		Eastman Kodak Co., Note, 6.50%, 8/15/2001		4,196,237
1,500,000		Motorola, Inc., Sr. Deb., 6.50%, 9/1/2025		1,422,165
		Total		5,618,402
		Utilities—2.8%
1,750,000		General Electric Capital Corp., 6.81%, 11/3/2003		1,717,135
7,475,000		General Electric Capital Corp., 7.50%, 5/15/2005		7,473,505
2,750,000		General Electric Capital Corp., Note, 7.00%, 2/3/2003		2,722,638
2,500,000		General Electric Capital Corp., Note, 8.85%, 4/1/2005		2,627,775
3,060,000		National Fuel Gas Co., Note, 6.303%, 5/27/2008		2,843,995
1,500,000		Ontario Hydro, Sr. Note, 6.10%, 1/30/2008		1,354,590
1,500,000		Virginia Electric Power Co., 1st Ref. Mtg., Series B, 6.625%, 4/1/2003		1,447,170
		Total		20,186,808
		Total Corporate Bonds (identified cost $98,387,554)		97,881,416
Mortgage Backed Securities—15.0%
		Federal Home Loan Bank— 0.1%
1,000,000		5.40%, 3/1/2004		933,120

Principal Amount				Value
Mortgage Backed Securities—continued
		Federal Home Loan Mortgage Corporation—2.6%
$        473,470		6.00%, 10/1/2000		$    469,219
1,268,882		6.00%, 8/1/2013		1,182,040
1,000,000		6.25%, 10/15/2002		975,940
126,857		6.50%, 12/1/2008		122,576
30,237		6.50%, 2/1/2009		29,217
416,760		6.50%, 3/1/2009		401,065
33,693		6.50%, 4/1/2009		32,424
162,209		6.50%, 6/1/2009		156,100
169,953		6.50%, 7/1/2010		162,888
366,877		7.00%, 2/1/2023		351,486
5,000,000		7.00%, 6/1/2099		4,750,800
10,000,000		7.50%, 12/1/2099		9,721,900
		Total		18,355,655
		Federal National Mortgage Association—8.6%
3,000,000		5.125%, 2/13/2004		2,779,680
1,530,020		6.00%, 1/1/2013		1,428,167
604,354		6.00%, 12/1/2010		567,525
4,707,309		6.00%, 12/1/2012		4,393,943
1,035,812		6.00%, 4/1/2011		972,690
3,155,904		6.00%, 4/1/2013		2,945,815
1,900,234		6.00%, 7/1/2013		1,773,735
1,689,578		6.13%, 9/1/2008		1,542,370
993,205		6.50%, 1/1/2028		921,505
5,312,961		6.50%, 11/1/2029		4,924,424
11,933,706		6.50%, 2/1/2029		11,060,994
10,500,000		6.50%, 4/29/2009		9,641,940
2,237,067		6.50%, 7/1/2013		2,128,010
5,324,269		6.50%, 8/1/2029		4,934,905
487,883		6.54%, 12/1/2007		458,239
1,845,220		6.56%, 12/1/2007		1,734,967
1,639,586		7.00%, 2/25/2021		1,618,566
2,412,549		7.06%, 8/1/2006		2,332,766
2,525,000		7.125%, 2/15/2005		2,496,190
715,384		7.50%, 4/1/2007		709,868
398,845		7.50%, 9/1/2022		390,119
135,528		8.00%, 1/1/2023		135,273
110,379		8.00%, 6/1/2022		110,207
6,932		8.50%, 10/1/2024		7,010
152,463		8.50%, 12/1/2024		154,179
10,058		8.50%, 6/1/2024		10,171
124,080		8.50%, 7/1/2024		125,495
16,549		8.50%, 8/1/2016		16,774
7,540		10.50%, 6/1/2001		7,578
		Total		60,323,105

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---

Principal Amount				Value
Mortgage Backed Securities—continued
		Government National Mortgage Association—3.7%
$    3,581,034		6.00%, 2/15/2029		$      3,249,789
3,088,890		6.00%, 2/15/2029		2,803,167
2,964,507		6.00%, 2/15/2029		2,691,683
5,858,634		6.00%, 3/15/2029		5,316,710
585,162		6.50%, 10/15/2008		567,156
861,795		6.50%, 12/15/2012		822,204
812,387		6.50%, 2/15/2013		775,066
730,416		6.50%, 2/15/2013		698,840
690,640		6.50%, 2/15/2013		658,912
324,870		6.50%, 3/15/2024		305,885
1,972,873		6.50%, 4/15/2029		1,845,248
1,695,991		6.50%, 4/15/2029		1,586,278
570,763		7.00%, 12/20/2025		545,798
476,703		7.00%, 5/15/2023		459,570
1,042,323		7.00%, 8/15/2023		1,004,862
251,080		7.00%, 8/15/2023		242,056
278,258		7.50%, 3/15/2023		274,260
925,998		7.50%, 8/15/2027		909,497
390,180		8.00%, 10/15/2022		392,493
148,649		8.00%, 6/15/2023		149,438
133,484		9.00%, 1/15/2021		138,154
38,851		9.00%, 11/15/2016		40,344
66,238		9.00%, 11/15/2019		68,639
240,365		9.00%, 12/15/2019		249,076
47,222		9.00%, 3/15/2009		48,959
27,255		9.00%, 4/15/2021		28,208
		Total		25,872,292
		Total Mortgage Backed Securities (identified cost $114,386,282)		105,484,172
U.S. Government Agency—0.3%
		Tennessee Valley Authority—0.3%
2,200,000		Tennessee Valley Authority, Bond, 5.28%, 9/14/2001		2,144,648
		Total U.S. Government Agency (identified cost $2,200,000)		2,144,648

Principal Amount or Shares				Value
(2) U.S. Treasury Obligations—6.1%
		U.S. Treasury Bill—0.4%
$   3,000,000		United States Treasury Bill, 6/15/2000		$      2,994,780
		U.S. Treasury Bonds—4.9%
2,660,000		United States Treasury Bond, 6.125%, 11/15/2027		2,605,550
11,625,000		United States Treasury Bond, 6.375%, 8/15/2027		11,750,317
16,079,000		United States Treasury Bond, 7.125%, 2/15/2023		17,546,209
1,900,000		United States Treasury Bond, 8.125%, 8/15/2019		2,257,428
		Total		34,159,504
		U.S. Treasury Note—0.8%
6,210,000		United States Treasury Note, 5.875%, 11/15/2005		6,013,019
		Total U.S. Treasury Obligations (identified cost $43,346,227)		43,167,303
Closed-End Investment Companies—1.7%
44,000		2002 Target Term Trust, Inc.		588,500
338,501		Blackrock 2001 Term Trust, Inc.		3,025,353
30,600		Blackrock Advantage Term Trust		263,925
222,900		Blackrock Strategic Term Trust, Inc.		1,922,512
368,011		Blackrock Target Term Trust		3,542,106
55,900		RCM Strategic Global Government Fund		478,644
12,500		TCW/DW Term Trust 2002		111,719
124,800		TCW/DW Term Trust 2003		1,092,000
153,700		Templeton Global Income Fund		883,775
		Total Closed-End Investment Companies (identified cost $12,008,063)		11,908,534
(3) Repurchase Agreement—8.1%
$  57,334,887		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		57,334,887
		Total Investments (identified cost $592,673,862)		$  716,483,072

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---

Principal Amount				Value
Asset-Backed Securities—6.8%
		Finance—6.8%
$11,575,000		American Express Credit Account Master Trust 1997-1, Class A, 6.40%, 4/15/2005		$   11,350,677
8,020,000		Carco Auto Loan Master Trust 1999-4, Class A, 6.43%, 11/15/2004		7,814,929
2,300,000		Circuit City Credit Card Master Trust 1995-1, Class A, 6.375%, 8/15/2005		2,297,378
4,880,000		DLJ Commercial Mortgage Corp. 1999-CG1, Class A1B, 6.46%, 1/10/2009		4,446,078
3,250,000		Distribution Financial Services Trust 1999-1, Class A5, 5.97%, 8/15/2013		3,107,747
1,000,000		Merrill Lynch Mortgage Investors, Inc., Class A2, 6.48%, 11/15/2026		898,330
640,000		PP&L Transition Bond Co. LLC, Class A7, 7.05%, 6/25/2009		620,595
5,000,000		Prime Credit Card Master Trust 1996-1, Class A, 6.70%, 7/15/2004		4,962,500
1,885,000		Providian Master Trust 2000-1, Class A, 7.49%, 8/17/2009		1,873,125
		Total Asset-Backed Securities (identified cost $38,525,615)		37,371,359
Collateralized Mortgage Obligations—3.5%
		Finance—3.5%
2,000,000		Commercial Mortgage Asset Trust 1999-C1, Class C, 7.35%, 8/17/2013		1,856,226
2,000,000		Criimi Mae CMBS Corp. 1998-1, Class A2, 6.01%, 2/20/2005		1,824,764
2,825,000		Deutsche Mortgage and Asset Receiving Corp. 1998-C1, Class D, 7.23%, 6/15/2031		2,546,161
33,421,387		Deutsche Mortgage and Asset Receiving Corp. 1998-C1, Class X, 1.254%, 6/15/2023		1,671,069
1,090,442		FSA Finance, Inc., Class A, 7.42%, 6/1/2007		1,078,957
3,600,000		First Union National Bank 2000- C1, Class A2, 7.841%, 3/15/2010		3,575,155

Principal Amount				Value
Collateralized Mortgage Obligations—continued
		Finance—continued
$    5,000,000		Merrill Lynch Mortgage Investors, Inc. 1998—C1, Class A3, 6.72%, 11/15/2026		$    4,276,900
2,000,000		Nomura Asset Securities Corp. 1998-D6, Class A3, 7.23%, 3/17/2028		1,816,284
27,004,050		Nomura Asset Securities Corp. 1998-D6, Class ACS1, 1.91%, 3/17/2028		564,385
		Total Collateralized Mortgage Obligations (identified cost $18,380,001)		19,209,901
Corporate Bonds—25.0%
		Banking & Finance—0.1%
500,000		First Colony Corp., Sr. Note, 6.625%, 8/1/2003		481,595
		Basic Materials—0.7%
240,000		Armstrong World Industries, Inc., Deb., 9.75%, 4/15/2008		261,953
1,405,000		Du Pont (E.I.) de Nemours & Co., Note, 6.875%, 10/15/2009		1,329,917
500,000		Du Pont (E.I.) de Nemours & Co., Sr. Note, 6.75%, 9/1/2007		475,955
1,000,000		Du Pont (E.I.) de Nemours & Co., Unsecd. Note, Series G, 6.47%, 9/26/2002		980,990
750,000		Temple-Inland, Inc., Unsecd. Note, 7.25%, 9/15/2004		724,733
		Total		3,773,548
		Capital Goods—1.0%
5,670,000		Ingersoll-Rand Co., Note, 6.13%, 11/18/2027		5,519,121
		Communication Services—1.2%
3,600,000		AT&T Corp., Global Note, 6.00%, 3/15/2009		3,142,512
3,500,000		Sprint Capital Corp., Company Guarantee, 6.88%, 11/15/2028		3,294,188
		Total		6,436,700
		Consumer Cyclicals—0.7%
500,000		General Motors Corp., Unsecd. Note, 7.10%, 3/15/2006		477,255

---

---

Principal Amount				Value
Corporate Bonds—continued
		Consumer Cyclicals—continued
$ 3,000,000		Tribune Co., Note, 6.25%, 11/10/2026		$  2,939,370
500,000		Wal-Mart Stores, Inc., Unsecd. Note, 6.75%, 5/15/2002		494,795
		Total		3,911,420
		Consumer Staples—0.6%
500,000		Anheuser-Busch Cos., Inc., Unsecd. Note, 6.90%, 10/1/2002		489,540
840,000		Archer-Daniels-Midland Co., Note, 6.625%, 5/1/2029		678,107
2,000,000		McDonald’s Corp., Note, 6.00%, 6/23/2002		1,941,300
		Total		3,108,947
		Finance—15.0%
1,000,000		American Express Co., Discount Note, 12/12/2000		961,895
1,340,000		BB&T Corp., Sub. Note, 7.25%, 6/15/2007		1,266,555
1,250,000		Bank of America Corp., Note, 6.625%, 6/15/2004		1,197,525
1,000,000		Bank of America Corp., Sub. Note, 6.625%, 8/1/2007		939,260
1,000,000		Bankers Trust Corp., Sr. Note, 6.75%, 10/3/2001		990,350
1,220,000		Bankers Trust Corp., Sub. Note, 7.25%, 10/15/2011		1,110,578
1,880,000		Bankers Trust Corp., Sub. Note, 7.375%, 5/1/2008		1,770,697
5,000,000		BankUnited Financial Corp., Note, 5.40%, 2/2/2004		4,638,000
1,975,000		Bear Stearns Cos., Inc., Sr. Note, 6.70%, 8/1/2003		1,891,339
2,250,000		Bradley Operating Ltd. Partnership, Unsecd. Note, 8.875%, 3/15/2006		2,000,137
1,000,000		Caterpillar Financial Services Corp., Note, 7.96%, 1/26/2004		999,960
2,500,000		Commercial Credit Co., Unsecd. Note, 7.375%, 4/15/2005		2,435,075
185,000		Deutsche Bank Financial, Inc., Bank Guarantee, 7.50%, 4/25/2009		176,372
5,000,000		Distribution Financial Services Trust, Series 1999-2, Class A4, 6.480%, 5/15/2013		4,825,400

Principal Amount				Value
Corporate Bonds—continued
		Finance—continued
$   755,000		First Union Corp., Sub. Deb., 6.824%, 8/1/2026		$    713,399
800,000		General Motors Acceptance Corp., Sr. Note, 5.63%, 1/15/2003		757,312
3,115,000		Goldman Sachs Group, Inc., Note, MTN, Series B, 7.35%, 10/1/2009		2,903,242
3,000,000		Hanson Overseas B.V., Sr. Note, 7.375%, 1/15/2003		2,968,380
2,000,000		Hartford Life, Inc., Note, 7.10%, 6/15/2007		1,905,200
500,000		Household Finance Corp., 6.40%, 6/17/2008		441,020
3,000,000		IKON Capital Resources, Inc., Note, 6.94%, 5/21/2001		2,945,490
2,000,000		Inter-American Development Bank, Deb., 8.88%, 6/1/2009		2,183,580
2,145,000		International Lease Finance Corp., Note, 5.625%, 5/1/2002		2,064,584
4,915,000		Landeskreditbank B-W, Sub. Note, 7.875%, 4/15/2004		4,948,717
7,000,000		Lehman Brothers Holdings, Inc., Sr. Note, 7.875%, 11/1/2009		6,709,710
1,000,000		Lehman Brothers Holdings, Inc., Sr. Note, 8.75%, 3/15/2005		1,006,360
1,375,000		Mercantile Bancorporation, Inc., 6.80%, 6/15/2001		1,365,512
500,000		Merrill Lynch & Co., Inc., Note, 6.375%, 10/15/2008		448,460
2,000,000		Merrill Lynch & Co., Inc., Note, 6.00%, 2/17/2009		1,726,020
1,100,000		Metropolitan Life Insurance Co., 7.00%, 11/1/2005		1,061,478
2,090,000		Morgan Stanley Group, Inc., Note, 6.875%, 3/1/2007		1,968,989
1,500,000		Morgan Stanley, Dean Witter & Co., Note, 7.07%, 2/10/2014		1,353,060
2,250,000		National Rural Utilities Cooperative Finance Corp., Collateral Trust, 5.75%, 11/1/2008		1,952,100
2,135,000		National Westminster Bank, PLC, Deb., 9.375%, 11/15/2003		2,233,915
2,000,000		Norwest Corp., Note, 6.75%, 6/15/2007		1,893,720
1,750,000		Norwest Financial, Inc., Sr. Note, 6.625%, 7/15/2004		1,672,755

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---

Principal Amount				Value
Corporate Bonds—continued
		Finance—continued
$ 2,000,000		Private Export Funding Corp., Unsecd. Note, Series I, 7.20%, 1/15/2010		$  1,973,140
2,100,000		Salomon, Inc., Note, 6.375%, 10/1/2004		1,980,678
2,250,000		Simon Property Group, Inc., 6.875%, 10/27/2005		2,061,967
4,700,000		Union Planters Corp., Sub. Note, 6.50%, 3/15/2018		4,018,124
3,000,000		Xerox Capital Trust I, Company Guarantee, 8.00%, 2/1/2027		2,465,070
		Total		82,925,125
		Real Estate—0.8%
4,516,777		Rosecliff Realty/General Services Administration, Note, 8.00%, 11/15/2008		4,680,362
		Technology—1.7%
3,000,000		Electronic Data Systems Corp., Note, 7.125%, 10/15/2009		2,877,540
3,370,000		Motorola, Inc., Deb., 5.22%, 10/1/2097		2,031,267
5,000,000		Motorola, Inc., Sr. Deb., 6.50%, 9/1/2025		4,740,550
		Total		9,649,357
		Utilities—3.2%
500,000		GTE California, Inc., Deb., Series A, 5.625%, 2/1/2001		494,480
1,820,000		GTE California, Inc., Deb., Series G, 5.50%, 1/15/2009		1,522,303
1,000,000		General Electric Capital Corp., 6.81%, 11/3/2003		981,220
3,750,000		General Electric Capital Corp., Note, 7.00%, 2/3/2003		3,712,687
2,500,000		General Electric Capital Corp., Note, 8.85%, 4/1/2005		2,627,775
5,000,000		National Fuel Gas Co., Note, 6.303%, 5/27/2008		4,647,050
1,135,000		Ontario Hydro, Sr. Note, 6.10%, 1/30/2008		1,024,973
3,000,000		SCANA Corp., Sr. Note, Series B, 6.25%, 7/8/2003		2,839,710
		Total		17,850,198
		Total Corporate Bonds (identified cost $147,935,624)		138,336,373

Principal Amount				Value
U.S. Government Agencies—46.8%
		Federal Farm Credit Bank—0.3%
$ 1,700,000		5.73%, 7/28/2003		$  1,617,397
		Federal Home Loan Bank—1.7%
1,000,000		6.520%, 4/2/2003		976,870
4,300,000		5.765%, 6/11/2003		4,103,146
2,000,000		5.720%, 8/25/2003		1,900,620
500,000		5.500%, 1/21/2003		477,185
2,000,000		5.485%, 3/23/2004		1,870,000
		Total		9,327,821
		Federal Home Loan Mortgage—11.4%
6,578		12.50%, 7/1/2011		7,209
2,040		12.50%, 3/1/2014		2,229
1,614		12.50%, 2/1/2010		1,760
7,420		11.00%, 10/1/2015		7,909
791		11.00%, 10/1/2010		836
12,503		9.50%, 7/1/2016		13,003
729		9.50%, 2/1/2019		758
399		9.50%, 2/1/2019		415
814		9.00%, 1/1/2019		828
1,000		9.00%, 1/1/2019		1,020
797		8.50%, 8/1/2017		803
5,418		8.50%, 7/1/2017		5,445
5,540		8.25%, 10/1/2007		5,431
26,693		8.00%, 4/1/2009		26,142
720,382		8.00%, 2/1/2017		713,047
3,698		8.00%, 2/1/2009		3,492
7,302		8.00%, 12/1/2008		7,117
1,333		8.00%, 1/1/2019		1,318
394		8.00%, 1/1/2009		383
12,670		8.00%, 1/1/2008		12,445
22,517		7.50%, 9/1/2007		22,360
18,000,000		7.50%, 7/1/2026		17,516,340
95,034		7.50%, 2/1/2023		93,153
62,045		7.50%, 2/1/2023		60,817
185,484		7.50%, 2/1/2023		181,811
53,988		7.50%, 2/1/2023		52,919
46,929		7.50%, 2/1/2023		46,000
12,000,000		7.00%, 6/1/2025		11,401,920
434,356		7.00%, 6/1/2008		424,892
686,926		7.00%, 2/1/2023		658,110
4,942,672		7.00%, 10/1/2029		4,695,539
19,851,058		7.00%, 1/1/2030		18,858,505
148,559		7.00%, 1/1/2023		142,327
1,564,221		6.50%, 8/1/2013		1,488,450
102,146		6.50%, 7/1/2008		98,700
203,389		6.50%, 6/1/2008		196,527

---

---

Principal Amount				Value
U.S. Government Agencies—continued
		Federal Home Loan Mortgage—continued
$    67,255		6.50%, 6/1/2008		$      64,986
10,532		6.50%, 6/1/2008		10,218
364,122		6.50%, 6/1/2008		351,837
386,134		6.50%, 5/1/2008		373,106
409,210		6.50%, 4/1/2009		393,799
1,114,277		6.50%, 11/1/2011		1,065,171
1,000,000		6.05%, 9/15/2022		958,750
250,939		6.00%, 10/1/2000		248,686
3,000,000		5.75%, 7/15/2003		2,860,320
		Total		63,076,833
		Federal National Mortgage Association—23.6%
173		12.50%, 9/1/2013		191
188		9.50%, 7/1/2016		196
1,279		9.50%, 7/1/2016		1,338
293		9.00%, 1/1/2017		301
148		8.50%, 2/1/2019		149
18,600		8.00%, 9/1/2009		18,557
1,101,368		8.00%, 7/1/2025		1,096,896
30,807		8.00%, 6/1/2022		30,759
1,979		8.00%, 11/1/2008		1,973
4,008		8.00%, 1/1/2009		3,999
160,506		7.50%, 6/1/2023		156,944
245,714		7.50%, 6/1/2023		240,261
659,619		7.50%, 5/1/2026		643,333
325,174		7.50%, 4/1/2007		322,667
408,877		7.50%, 12/1/2022		399,804
618,201		7.50%, 1/1/2023		604,675
183,327		7.50%, 1/1/2023		179,372
237,608		7.50%, 1/1/2023		232,336
88,215		7.50%, 1/1/2023		86,258
70,104		7.50%, 1/1/2023		68,570
2,427,780		7.16%, 1/1/2010		2,341,787
3,536,132		7.10%, 12/1/2006		3,423,828
4,901,506		7.00%, 8/1/2029		4,651,823
2,459,379		7.00%, 2/25/2021		2,427,850
2,186,360		7.00%, 11/1/2028		2,079,097
14,845,449		7.00%, 10/1/2029		14,089,222
4,371,146		6.935%, 4/1/2004		4,239,796
6,247,090		6.90%, 4/1/2006		6,002,043
2,029,635		6.50%, 9/1/2012		1,935,764
2,337,454		6.50%, 9/1/2012		2,229,347
822,263		6.50%, 8/1/2013		782,178
1,000,000		6.50%, 7/29/2002		982,340
1,608,183		6.50%, 7/1/2013		1,529,785

Principal Amount				Value
U.S. Government Agencies—continued
		Federal National Mortgage Association—continued
$ 6,477,908		6.50%, 7/1/2013		$   6,162,110
28,631,749		6.50%, 1/1/2029		26,537,910
2,400,000		6.50%, 1/25/2014		2,244,000
2,798,609		6.50%, 1/1/2029		2,593,947
2,211,995		6.50%, 1/1/2028		2,052,311
2,514,640		6.49%, 6/1/2009		2,300,201
2,752,606		6.47%, 7/1/2009		2,514,754
2,936,326		6.29%, 4/1/2008		2,714,202
982,066		6.20%, 9/1/2008		900,086
2,494,921		6.10%, 8/1/2008		2,274,726
3,414,316		6.10%, 3/1/2008		3,124,695
3,382,018		6.00%, 8/1/2013		3,144,194
8,536,079		6.00%, 7/1/2013		7,967,832
2,519,517		6.00%, 7/1/2013		2,351,793
1,652,333		6.00%, 6/1/2013		1,542,337
9,862,205		6.00%, 4/1/2013		9,205,678
1,161,021		6.00%, 4/1/2011		1,090,268
761,684		6.00%, 1/1/2009		723,181
		Total		130,247,664
		Government National Mortgage Association—9.3%
6,292		11.00%, 9/15/2015		6,862
106		11.00%, 11/15/2015		116
998		11.00%, 11/15/2015		1,090
529		10.50%, 8/15/2017		567
149		10.50%, 11/15/2000		150
90		10.50%, 11/15/2000		91
213		10.50%, 10/15/2000		215
21,909		9.50%, 9/15/2020		22,977
6,276		9.50%, 9/15/2017		6,590
2,515		9.50%, 7/15/2021		2,638
1,358		9.50%, 7/15/2018		1,425
1,705		9.50%, 7/15/2016		1,791
1,664		9.50%, 7/15/2016		1,748
8,652		9.50%, 6/15/2020		9,073
34,273		9.50%, 6/15/2020		35,943
15,616		9.50%, 6/15/2016		16,402
848		9.50%, 5/15/2016		891
1,042		9.50%, 5/15/2016		1,094
4,326		9.50%, 5/15/2016		4,543
3,767		9.50%, 4/15/2020		3,950
10,993		9.50%, 4/15/2020		11,529
15,101		9.50%, 12/15/2020		15,837
80,027		9.50%, 12/15/2016		84,053
2,240		9.50%, 12/15/2016		2,353

---

---

Principal Amount				Value
U.S. Government Agencies—continued
		Government National Mortgage Association—continued
$    13,600		9.50%, 11/15/2020		$     14,263
9,303		9.50%, 10/15/2020		9,756
6,276		9.50%, 10/15/2020		6,582
39,669		9.50%, 10/15/2020		41,603
7,899		9.50%, 10/15/2017		8,294
16,114		9.00%, 9/15/2022		16,678
137,469		9.00%, 9/15/2020		142,279
88,931		9.00%, 9/15/2019		92,154
18,113		9.00%, 9/15/2016		18,809
12,857		9.00%, 9/15/2016		13,352
1,010		9.00%, 9/15/2016		1,049
11,839		9.00%, 9/15/2016		12,294
8,105		9.00%, 9/15/2016		8,417
40,735		9.00%, 8/15/2021		42,160
5,648		9.00%, 8/15/2020		5,846
653		9.00%, 8/15/2016		678
63		9.00%, 8/15/2016		65
4,174		9.00%, 7/15/2022		4,320
67,937		9.00%, 7/15/2021		70,314
14,352		9.00%, 7/15/2021		14,854
57,598		9.00%, 7/15/2021		59,614
7,989		9.00%, 7/15/2018		8,276
180		9.00%, 7/15/2017		187
1,358		9.00%, 7/15/2016		1,410
6,400		9.00%, 7/15/2016		6,646
9,853		9.00%, 7/15/2016		10,232
9,863		9.00%, 6/15/2018		10,217
2,290		9.00%, 6/15/2017		2,377
6,242		9.00%, 6/15/2017		6,480
3,044		9.00%, 6/15/2016		3,161
11,809		9.00%, 6/15/2016		12,263
57,527		9.00%, 5/15/2022		59,540
7,244		9.00%, 5/15/2017		7,520
10,689		9.00%, 5/15/2016		11,100
5,263		9.00%, 5/15/2016		5,465
5,001		9.00%, 5/15/2016		5,193
59,358		9.00%, 4/15/2022		61,435
1,919		9.00%, 4/15/2018		1,988
117,938		9.00%, 3/15/2020		122,065
118,682		9.00%, 3/15/2017		123,206
64,200		9.00%, 2/15/2021		66,446
10,839		9.00%, 2/15/2020		11,218
63,454		9.00%, 2/15/2017		65,873
8,035		9.00%, 12/15/2019		8,327
2,052		9.00%, 12/15/2016		2,131
50,335		9.00%, 11/15/2020		52,096

Principal Amount				Value
U.S. Government Agencies—continued
		Government National Mortgage Association—continued
$     7,709		9.00%, 11/15/2020		$      7,978
16,275		9.00%, 11/15/2020		16,845
2,250		9.00%, 11/15/2019		2,332
18,421		9.00%, 11/15/2016		19,129
21,218		9.00%, 11/15/2016		22,033
28,881		9.00%, 10/15/2020		29,891
20,936		9.00%, 10/15/2019		21,695
266		9.00%, 10/15/2016		276
16,492		9.00%, 10/15/2016		17,126
29,373		9.00%, 10/15/2016		30,502
12,082		9.00%, 10/15/2016		12,546
22,970		9.00%, 1/15/2021		23,774
47,696		9.00%, 1/15/2021		49,365
5,820		9.00%, 1/15/2021		6,023
23,733		9.00%, 1/15/2021		24,564
17,136		9.00%, 1/15/2021		17,735
10,558		9.00%, 1/15/2021		10,927
14,259		9.00%, 1/15/2020		14,758
42,990		9.00%, 1/15/2017		44,629
2,231		9.00%, 1/15/2017		2,316
12,583		9.00%, 1/15/2017		13,062
5,375		9.00%, 1/15/2017		5,546
132,375		9.00%, 1/15/2017		137,421
18,669		9.00%, 1/15/2017		19,380
266,668		8.50%, 9/15/2022		272,002
348,089		8.50%, 9/15/2022		355,051
602		8.50%, 9/15/2017		617
1,847		8.50%, 7/15/2016		1,893
16,597		8.50%, 6/15/2022		16,929
3,227		8.50%, 6/15/2017		3,307
42,716		8.50%, 6/15/2016		43,785
3,219		8.50%, 6/15/2016		3,300
7,405		8.50%, 6/15/2016		7,590
41,739		8.50%, 5/15/2022		42,573
16,739		8.50%, 5/15/2021		17,063
14,280		8.50%, 5/15/2016		14,638
2,984		8.50%, 4/15/2022		3,044
27,061		8.50%, 12/15/2021		27,585
192,680		8.50%, 11/15/2022		196,534
31,234		8.50%, 11/15/2021		31,839
12,568		8.50%, 11/15/2021		12,811
40,888		8.50%, 11/15/2021		41,680
84,705		8.00%, 9/15/2022		85,208
95,933		8.00%, 9/15/2022		96,502
176,714		8.00%, 9/15/2022		177,762
627,629		8.00%, 6/15/2023		630,962

---

---

Principal Amount				Value
U.S. Government Agencies—continued
		Government National Mortgage Association—continued
$     6,480		8.00%, 6/15/2017		$      6,539
6,954		8.00%, 6/15/2004		7,004
197,053		8.00%, 5/15/2022		198,222
70,229		8.00%, 4/15/2022		70,645
430,568		8.00%, 4/15/2017		434,469
5,774		8.00%, 2/15/2017		5,826
119,063		7.50%, 8/15/2022		117,408
47,131		7.50%, 3/15/2023		46,454
92,076		7.50%, 2/15/2023		90,753
89,201		7.50%, 2/15/2023		87,919
79,811		7.50%, 2/15/2022		78,702
70,485		7.50%, 2/15/2022		69,506
110,585		7.50%, 12/15/2022		109,048
38,469		7.50%, 12/15/2022		37,934
82,855		7.50%, 12/15/2022		81,703
79,778		7.50%, 12/15/2022		78,669
90,473		7.50%, 11/15/2022		89,215
102,141		7.50%, 10/15/2022		100,721
527,631		7.50%, 1/15/2024		519,716
4,878,496		7.00%, 9/15/2029		4,678,770
540,856		7.00%, 6/15/2023		521,418
527,234		6.50%, 5/15/2011		505,865
864,549		6.50%, 5/15/2009		834,903
2,072,289		6.50%, 4/15/2024		1,951,185
3,418,253		6.50%, 3/15/2029		3,197,126
649,741		6.50%, 3/15/2024		611,770
3,312,676		6.50%, 11/20/2027		3,087,016
9,414,504		6.50%, 1/15/2029		8,805,480
920,930		6.00%, 5/15/2009		874,248
5,820,656		6.00%, 3/15/2029		5,282,246
3,557,822		6.00%, 2/15/2029		3,228,723
3,068,867		6.00%, 2/15/2029		2,784,997
2,945,290		6.00%, 2/15/2029		2,674,235
6,684,260		6.00%, 1/15/2029		6,072,249
		Total		51,453,373
Sovereign Agency—0.5%
$  1,000,000		Israel AID, 5.625%, 9/15/2003		$        952,830
1,590,000		Israel AID, 6.125%, 3/15/2003		1,544,971
		Total		2,497,801
		Total U.S. Government Agencies (identified cost $272,995,081)		258,220,889

Principal Amount or Shares				Value
U.S. Treasury Obligations—13.0%
		United States Treasury Notes—0.6%
$  1,550,000		(2)5.75%, 8/15/2003		$    1,508,584
1,500,000		(2)5.875%, 11/15/2005		1,452,420
250,000		7.50%, 11/15/2001		252,382
		Total		3,213,386
		United States Treasury Bonds—12.4%
13,195,000		6.375%, 8/15/2027		13,337,242
40,100,000		6.75%, 8/15/2026		42,362,041
10,720,000		8.00%, 11/15/2021		12,737,290
		Total		68,436,573
		Total U.S. Treasury Obligations (identified cost $73,216,171)		71,649,959
Closed-End Investment Companies—8.0%
265,250		2002 Target Term Trust, Inc.		3,547,719
780,100		Blackrock 2001 Term Trust, Inc.		6,972,144
28,400		Blackrock Advantage Term Trust		244,950
570,900		Blackrock Strategic Term Trust, Inc.		4,924,012
1,505,700		Blackrock Target Term Trust, Inc.		14,492,362
3,200		Nations Government Income Term Trust 2003		27,200
1,201,800		RCM Strategic Global Government Fund		10,290,412
14,400		TCW/DW Term Trust 2002		128,700
58,400		TCW/DW Term Trust 2003		511,000
496,300		Templeton Global Income Fund		2,853,725
		Total Closed-End Investment Companies (identified cost $44,212,525)		43,992,224
(3) Repurchase Agreement—1.3%
$  7,351,574		Goldman Sachs Group, LP, 6.36%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		7,351,574
		Total Investments (identified cost $602,616,591)		$576,132,279

---

---

Principal Amount				Value
Asset-Backed Securities—6.3%
		Finance—6.3%
$  2,000,000		AT&T Universal Card Master Trust 1995-2, Class A, 5.950%, 10/17/2002		$     1,991,240
760,000		DLJ Commercial Mortgage Corp. 1999-CG1, Class A1B, 6.460%, 1/10/2009		692,422
1,135,000		Discover Card Master Trust I 1998-7, Class A, 5.600%, 5/16/2006		1,072,212
1,475,000		Distribution Financial Services Trust 1999-1, Class A5, 5.970%, 8/15/2013		1,410,439
100,000		MBNA Master Credit Card Trust II 1995-D, Class A, 6.050%, 6/15/2000		99,968
1,000,000		Merrill Lynch Mortgage Investors, Inc., 1998-C1, Class A2, 6.480%, 11/15/2026		898,330
2,140,000		Premier Auto Trust 1998-1, Class A4, 5.700%, 10/6/2002		2,108,563
		Total Asset-Backed Securities (identified cost $7,061,074)		8,273,174
Collateralized Mortgage Obligations—2.1%
1,000,000		(4)FSA Finance, Inc., Class B, 7.780%, 6/1/2007		991,251
1,600,000		First Union National Bank 2000- C1 A2, Class A2, 7.841%, 3/15/2010		1,588,958
7,799,857		Nomura Asset Securities Corp. 1998-D6, Class ACS, 1.650%, 3/17/2028		163,017
		Total Collateralized Mortgage Obligations (identified cost $2,764,332)		2,743,226
Corporate Bonds—37.4%
		Banking—0.4%
500,000		Dresdner Bank AG, Frankfurt, Sub. Note, 6.625%, 9/15/2005		474,815
		Basic Materials—1.3%
750,000		Du Pont (E.I.) de Nemours & Co., Unsecd. Note, 6.750%, 10/15/2002		738,037
1,000,000		Monsanto Co., Note, 6.000%, 7/1/2000		1,000,130
		Total		1,738,167

Principal Amount				Value
Corporate Bonds—continued
		Communication Services—0.6%
$      900,000		AT&T Corp., Global Bond, 6.000%, 3/15/2009		$          785,628
		Consumer Cyclicals—2.9%
750,000		Coca Cola Enterprises, Inc., 5.750%, 11/1/2008		645,502
1,000,000		Ford Motor Co., Note, 7.250%, 10/1/2008		946,020
1,400,000		Hasbro, Inc., 5.600%, 11/1/2005		1,268,764
1,000,000		Wal-Mart Stores, Inc., Note, 5.875%, 10/15/2005		928,810
		Total		3,789,096
		Consumer Durables—0.5%
650,000		DaimlerChrysler AG, Gtd. Note, 7.400%, 1/20/2005		636,421
		Finance—10.6%
1,000,000		BankBoston, N.A., Sub. Note, 6.500%, 12/19/2007		919,220
450,000		Bradley Operating Ltd. Partnership, Unsecd. Note, 8.875%, 3/15/2006		400,027
1,000,000		CIGNA Corp., Note, 7.400%, 5/15/2007		952,240
2,350,000		Ford Motor Credit Co., Unsecd. Note, 6.250%, 11/8/2000		2,340,013
750,000		General Electric Capital Corp., MTN, 5.500%, 4/15/2002		724,958
1,000,000		General Electric Capital Corp., MTN, 5.960%, 5/14/2001		988,630
1,000,000		General Electric Capital Corp., MTN, 7.000%, 2/3/2003		990,050
1,000,000		J.P. Morgan & Co., Inc., MTN, 6.000%, 1/15/2009		866,860
1,000,000		J.P. Morgan & Co., Inc., Sub. Note, 7.625%, 9/15/2004		993,680
1,000,000		Pitney Bowes Credit Corp., MTN, 6.780%, 7/16/2001		999,900
2,100,000		Southern National Corp., Sub. Note, 7.050%, 5/23/2003		2,047,500
1,000,000		State Street Boston Corp., 5.950%, 9/15/2003		949,470
1,000,000		Union Planters Corp., Sub. Note, 6.500%, 3/15/2018		854,920
		Total		14,027,468

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---

Principal Amount				Value
Corporate Bonds—continued
		Financial Services—14.6%
$  2,000,000		CIT Group, Inc., Sr. Note, 5.80%, 3/26/2002		$      1,929,120
2,000,000		Countrywide Home Loans, Inc., Company Guarantee, MTN, 6.050%, 3/1/2001		1,980,400
3,180,000		First Union Corp., Note, 6.180%, 2/15/2036		2,945,729
1,500,000		First Union Corp., Note, 6.625%, 6/15/2004		1,429,125
2,000,000		Fleet Credit Card LLC, Sub. Note, 7.000%, 8/1/2003		1,954,980
790,000		Goldman Sachs Group, Inc., Note, MTN, 7.350%, 10/1/2009		736,296
1,000,000		KFW International Finance, Company Guarantee, 8.250%, 11/30/2004		1,018,367
1,000,000		Lehman Brothers Holdings, Inc., Bond, 7.000%, 5/15/2003		963,220
1,000,000		Lehman Brothers Holdings, Inc., Note, 7.375%, 5/15/2004		962,780
500,000		McDonnell Douglas Finance Corp., MTN, 6.830%, 5/21/2001		495,935
1,000,000		Merrill Lynch & Co., Inc., MTN, Series B, 5.710%, 1/15/2002		970,300
1,000,000		Merrill Lynch & Co., Inc., Note, 6.000%, 2/12/2003		959,440
1,000,000		Merrill Lynch & Co., Inc., Note, 6.000%, 7/15/2005		923,960
1,000,000		Norwest Financial, Inc., Sr. Note, Series 2002, 7.875%, 2/15/2002		1,001,910
1,000,000		Salomon, Inc., Sr. Note, 7.300%, 5/15/2002		991,430
		Total		19,262,992
		Health Care—0.7%
1,000,000		Bristol-Myers Squibb Co., Deb., 7.150%, 6/15/2023		958,700
		Real Estate—0.3%
450,000		Simon DeBartolo Group, Inc., Sr. Note, 6.875%, 10/27/2005		412,394
		Recreation—2.3%
3,250,000		Disney (Walt) Co., Bond, Series B, 6.750%, 3/30/2006		3,094,910
		Retail—0.2%
265,000		Archer-Daniels-Midland Co., Note, 6.625%, 5/1/2029		213,927

Principal Amount				Value
Corporate Bonds—continued
		Technology—0.4%
$      500,000		First Data Corp., MTN, 6.610%, 6/9/2000		$          499,990
		Transportation—1.5%
1,000,000		Burlington Northern, Inc., Equipment Trust, Series 96AA, 7.460%, 9/24/2011		963,432
1,000,000		CSX Corp., Deb., 7.050%, 5/1/2002		977,630
		Total		1,941,062
		Utilities—1.1%
730,000		National Rural Utilities Cooperative Finance Corp., Collateral Trust, 5.750%, 11/1/2008		633,348
1,000,000		SCANA Corp., MTN, Series B, 7.440%, 10/19/2004		998,610
		Total		1,631,958
		Total Corporate Bonds (identified cost $52,863,967)		49,467,528
U.S. Government Agencies—33.6%
		Federal Farm Credit—0.8%
1,080,000		5.750%, 9/1/2005		999,508
		Federal Home Loan Bank System—4.8%
1,000,000		5.280%, 1/6/2004		931,870
1,000,000		5.575%, 2/17/2009		871,250
2,000,000		6.250%, 8/13/2004		1,911,880
1,500,000		6.405%, 4/10/2001		1,492,740
1,030,000		8.090%, 12/28/2004		1,054,627
		Total		6,262,367
		Federal Home Loan Mortgage Corporation—3.2%
2,463,462		7.000%, 7/1/2029		2,340,289
2,000,000		7.000%, 6/1/2099		1,900,320
		Total		4,240,609
		Federal National Mortgage Association—20.1%
1,000,000		6.240%, 9/7/2000		998,910
2,000,000		5.460%, 11/3/2003		1,885,940
2,958,000		5.125%, 2/13/2004		2,740,764
3,031,481		6.500%, 7/1/2013		2,883,697
3,360,414		6.000%, 8/1/2013		3,124,109
3,453,477		6.500%, 8/1/2028		3,204,170
6,858,452		6.500%, 2/1/2029		6,356,893

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---

Principal Amount				Value
U.S. Government Agencies—continued
		Federal National Mortgage Association—continued
$  1,500,000		6.710%, 7/24/2001		$      1,489,215
1,454,529		6.740%, 1/1/2004		1,406,499
2,652,371		7.000%, 9/1/2027		2,522,246
		Total		26,612,443
		Government National Mortgage Association—4.3%
1,444,808		6.000%, 2/15/2029		1,311,163
1,246,247		6.000%, 2/15/2029		1,130,969
1,196,063		6.000%, 2/15/2029		1,085,989
2,363,731		6.000%, 3/15/2029		2,145,086
		Total		5,673,207
		Sovereign Agency—0.4%
600,000		Israel AID, Note, Series 3-C, 6.600%, 2/15/2008		579,618
		Total U.S. Government Agencies (identified cost $46,723,345)		44,367,752
U.S. Treasury Obligations—13.2%
		United States Treasury Bond—0.6%
675,000		United States Treasury Bond, 7.250%, 5/15/2016		730,796
		(2)United States Treasury
		Notes—12.6%
1,000,000		United States Treasury Note, 5.250%, 5/15/2004		952,970
1,000,000		United States Treasury Note, 5.625%, 5/15/2008		948,910
335,000		United States Treasury Note, 5.75%, 8/15/2003		326,049
455,000		United States Treasury Note, 5.875%, 11/30/2001		449,240
1,000,000		United States Treasury Note, 5.875%, 9/30/2002		981,560

Principal Amount or Shares				Value
U.S. Treasury Obligations—continued
		(2)United States Treasury Notes—continued
$  2,000,000		United States Treasury Note, 6.250%, 2/15/2003		$      1,976,240
3,705,000		United States Treasury Note, 6.375%, 8/15/2002		3,677,805
680,000		United States Treasury Note, 6.500%, 5/31/2002		676,811
900,000		United States Treasury Note, 6.500%, 8/15/2005		896,058
1,500,000		United States Treasury Note, 6.875%, 5/15/2006		1,521,795
4,150,000		United States Treasury Note, 7.000%, 7/15/2006		4,238,188
		Total		16,645,626
		Total U.S. Treasury Obligations (identified cost $17,752,768)		17,376,422
Closed-End Investment Companies—5.8%
26,155		2002 Target Term Trust, Inc.		349,823
235,965		Blackrock 2001 Term Trust, Inc.		2,108,937
155,667		Blackrock Strategic Term Trust, Inc.		1,342,628
130,905		Blackrock Target Term Trust, Inc.		1,259,961
23,100		Hyperion 2002 Term Trust		184,800
50,000		TCW/DW Term Trust 2002		446,875
228,550		TCW/DW Term Trust 2003		1,999,813
		Total Closed-End Investment Companies (identified cost $7,723,483)		7,692,837
(3) Repurchase Agreement—2.0%
$2,681,581		Goldman Sachs Group, LP, 6.360%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		2,681,581
		Total Investments (identified cost $137,570,550)		$  132,602,520

---

---

Principal Amount				Value
Asset-Backed Securities—2.1%
$  1,000,000		Distribution Financial Services RV Trust, Series 1999-2, Class A4, 6.480%, 10/15/2013 (identified cost $999,781)		$        965,080
Collateralized Mortgage Obligations—2.6%
		Finance—2.6%
1,090,442		(4)FSA Finance, Inc., Class A, 7.420%, 6/1/2007		1,078,957
145,010		Federal National Mortgage Association, Series 1993-137, Class B, 5.85%, 7/25/2000		144,285
		Total Collateralized Mortgage Obligations (identified cost $1,225,435)		1,223,242
Corporate Bonds—39.9%
		Consumer Durables—7.4%
2,500,000		DaimlerChrysler AG, Note, 7.125%, 3/1/2002		2,479,500
1,000,000		DaimlerChrysler AG, GTD Note, 7.400%, 1/20/2005		979,110
		Total		3,458,610
		Finance—16.7%
2,000,000		Deere (John) Capital Corp., MTN, 6.750%, 3/7/2001		1,987,840
2,000,000		Ford Motor Credit Co., Note, 5.750%, 2/23/2004		1,861,360
1,000,000		General Electric Capital Corp., MTN, 7.000%, 2/3/2003		990,050
1,000,000		Household Finance Corp., MTN, 6.125%, 7/15/2002		962,260
2,000,000		Merrill Lynch & Co., Inc., MTN, 6.020%, 5/11/2001		1,971,060
		Total		7,772,570

Principal Amount				Value
Corporate Bonds—continued
		Technology—15.8%
$1,945,000		BellSouth Telecommunications, Inc., 6.000%, 6/15/2002		$    1,892,738
1,500,000		Eastman Kodak Co., 6.500%, 8/15/2001		1,481,025
1,000,000		First Data Corp., 6.625%, 4/1/2003		976,440
3,000,000		Xerox Corp., 5.750%, 7/21/2000		2,994,258
		Total		7,344,461
		Total Corporate Bonds (identified cost $18,759,142)		18,575,641
Government Agencies—20.8%
		Federal Home Loan Bank—12.3%
6,000,000		5.735%, 7/22/2003		5,711,220
		Federal National Mortgage Association—8.5%
4,233,819		6.000%, 9/1/2013		3,936,097
		Total U.S. Government Agencies (identified cost $10,191,558)		9,647,317
U.S. Treasury Obligations—25.7%
		United States Treasury Notes—25.7%
1,000,000		5.500%, 1/31/2003		970,000
3,000,000		5.750%, 4/30/2003		2,925,480
2,000,000		5.750%, 8/15/2003		1,946,560
6,000,000		5.875%, 11/15/2004		5,833,140
250,000		6.250%, 10/31/2001		248,217
		Total U.S. Treasury Obligations (identified cost $12,336,685)		11,923,397
(3) Repurchase Agreement—7.7%
3,579,416		Goldman Sachs Group, LP, 6.360%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		3,579,416
		Total Investments (identified cost $47,092,017)		$  45,914,093

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—92.9%
		Georgia—92.6%
$1,530,000		Alpharetta, GA Development Authority, University and College Improvement Revenue Bonds, 4.80% (Original Issue Yield: 4.925%), 11/1/2018		AA		$      1,317,605
1,000,000		Atlanta & Fulton County, GA Recreation Authority, Revenue Bonds, 5.375% (MBIA INS)/(Original Issue Yield: 5.70%), 12/1/2021		AAA		926,760
2,000,000		Atlanta, GA Downtown Development Authority, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.10%), 10/1/2006		AA		2,059,240
100,000		Atlanta, GA Downtown Development Authority, Refunding Revenue Bonds, 6.25% (Original Issue Yield: 6.435%), 10/1/2016		AA		101,750
1,500,000		Atlanta, GA Downtown Development Authority, Revenue Bonds, 6.75% (Trust Co. Bank LOC)/(Original Issue Yield: 6.95%), 11/1/2014		Aa3		1,596,465
3,500,000		Atlanta, GA, GO UT, Series A, 6.125% (Original Issue Yield: 6.18%), 12/1/2023		AA		3,693,375
510,000		Atlanta, GA, Urban Residential Finance Authority, Dorm Facility Refunding Revenue Bonds, 5.70% (Morehouse College)/(MBIA INS), 12/1/2010		AAA		517,920
80,000		Brunswick, GA, Water & Sewer Refunding Revenue Bonds, 6.10% (MBIA INS)/(Original Issue Yield: 6.27%), 10/1/2019		AAA		82,694

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  1,155,000		Burke County, GA Development Authority, PCR Bonds, 7.50% (Oglethorpe Power Corp.)/(MBIA INS), 1/1/2003		AAA		$      1,193,519
1,000,000		Chatham County, GA School District, Series B, 5.50% (FGIC INS)/(Original Issue Yield: 5.651%), 8/1/2020		AAA		950,280
50,000		Chatham County, GA School District, GO UT, 6.75% (MBIA INS), 8/1/2018		AAA		53,331
500,000		Cherokee County, GA Water & Sewer Authority, Refunding Bonds, 6.90% (MBIA INS)/(Original Issue Yield: 6.982%), 8/1/2018		AAA		520,125
1,400,000		Cherokee County, GA Water & Sewer Authority, Revenue Bonds, 4.75% (Original Issue Yield: 4.99%), 8/1/2028		AAA		1,134,112
1,835,000		Cherokee County, GA Water & Sewer Authority, Revenue Bonds, 5.20% (MBIA INS)/ (Original Issue Yield: 5.30%), 8/1/2025		AAA		1,678,952
100,000		Cobb County, GA Solid Waste Management Authority, Revenue Bonds, 6.35%, 1/1/2009		AAA		105,216
1,000,000		Cobb County, GA, Refunding Revenue Bonds, 5.125% (Original Issue Yield: 5.55%), 7/1/2008		AA		991,480
1,250,000		Cobb-Marietta, GA Coliseum & Exhibit Hall Authority, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.60%), 10/1/2012		AAA		1,250,450

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  4,000,000		Cobb-Marietta, GA Coliseum & Exhibit Hall Authority, Refunding Revenue Bonds, 5.625% (MBIA INS)/(Original Issue Yield: 5.70%), 10/1/2026		AAA		$      3,866,480
1,000,000		Dalton, GA, Refunding Revenue Bonds, 5.00% (MBIA INS), 1/1/2004		AAA		997,200
3,075,000		De Kalb County, GA Development Authority, Refunding Bonds, Series A, 6.00% (Original Issue Yield: 6.086%), 10/1/2014		AA		3,128,905
2,000,000		De Kalb County, GA School District, GO UT Bonds, Series A, 6.25%, 7/1/2010		AA		2,134,740
200,000		De Kalb County, GA School District, GO UT Bonds, Series A, 6.25%, 7/1/2011		AA		214,806
1,000,000		De Kalb County, GA School District, GO UT Refunding Bonds, 5.60% (Original Issue Yield: 5.70%), 7/1/2008		AA		1,015,170
3,055,000		De Kalb County, GA Water & Sewer, Refunding Revenue Bonds, 5.25% (Original Issue Yield: 5.42%), 10/1/2023		AA		2,742,535
150,000		De Kalb County, GA, GO UT Bonds, 5.50% (Original Issue Yield: 5.60%), 1/1/2016		AA+		145,042
100,000		Decatur, GA Housing Authority, Mortgage Refunding Revenue Bonds, 6.45% (FHA and MBIA INS)/(Original Issue Yield: 6.524%), 7/1/2025		AAA		101,494
1,000,000		Douglas County, GA School District, GO UT, 5.00% (Original Issue Yield: 4.85%), 1/1/2003		AA-		998,400
500,000		Downtown Savannah, GA, Refunding Revenue Bonds, Series A, 4.95% (Original Issue Yield: 5.05%), 1/1/2006		AA		493,345

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  1,995,000		Fayette County, GA School District, GO UT Bonds, 6.25%, 3/1/2005		A+		$      2,084,955
160,000		Fayette County, GA, Water Revenue Bonds, Series B, 6.20% (FGIC INS)/(Original Issue Yield: 6.30%), 10/1/2022		AAA		167,253
60,000		Forsyth County, GA School District, GO UT Bonds, 6.70%, 7/1/2012		AA-		66,191
1,000,000		Forsyth County, GA School District, GO UT Bonds, 6.75%, 7/1/2016		AA-		1,111,340
1,000,000		Forsyth County, GA School District, GO, Revenue Bond, 5.00%, 2/1/2004		AA-		997,120
1,000,000		Forsyth County, GA, 5.50% (Original Issue Yield: 5.80%), 3/1/2020		AA-		955,290
1,880,000		Fulton County, GA Building Authority, Refunding Bonds, Series A, 5.80% (Original Issue Yield: 5.90%), 1/1/2005		AA		1,929,613
1,000,000		Fulton County, GA Facilities Corp. Certificates of Participation, 5.50% (Original Issue Yield: 5.88%), 11/1/2018		AAA		953,760
25,000		Fulton County, GA School District, GO UT Bonds, 5.60% (Original Issue Yield: 5.65%), 1/1/2011		AA		25,800
5,250,000		Fulton County, GA Water & Sewage System, 4.75%, 1/1/2020		AA-		4,411,680
475,000		Fulton County, GA Water & Sewage System, 6.25% (FGIC INS)/(Original Issue Yield: 6.425%), 1/1/2007		AAA		500,992
1,000,000		Fulton County, GA Water & Sewage System, Refunding Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 4.974%), 1/1/2014		AAA		958,250

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  1,000,000		Fulton De Kalb, GA Hospital Authority, Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.85%), 1/1/2012		AAA		$          985,240
210,000		Georgia Medical Center Hospital Authority, PRF Revenue Bond, Series C, 5.90% (MBIA INS)/(Original Issue Yield: 5.95%), 8/1/2001		AAA		212,730
90,000		Georgia Medical Center Hospital Authority, Unrefunded Revenue Bond, Series C, 5.90% (MBIA INS)/(Original Issue Yield: 5.95%), 8/1/2001		AAA		91,134
285,000		Georgia Municipal Electric Authority, Electric Power Refunding Revenue Bonds, Series B, 6.125% (FGIC INS)/(Original Issue Yield: 6.30%), 1/1/2014		AAA		290,327
500,000		Georgia Municipal Electric Authority, Refunding Bonds, Series B, 6.375% (Original Issue Yield: 6.45%), 1/1/2016		A		506,485
1,750,000		Georgia Municipal Electric Authority, Refunding Revenue Bonds, Series Z, 5.50% (AMBAC INS)/ (Original Issue Yield: 5.619%), 1/1/2012		AAA		1,746,203
445,000		Georgia State HFA, Refunding Revenue Bonds, Series A, 7.50% (FHA/VA MTGS GTD), 6/1/2017		AA+		453,455
490,000		Georgia State HFA, Refunding Revenue SFM Bonds, Subseries A-2, 6.55% (FHA/VA MTGS GTD), 12/1/2027		AAA		492,293
500,000		Georgia State Municipal Gas Authority, Revenue Bonds, 6.00%, 7/1/2004		A-		513,320

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  1,000,000		Georgia State Municipal Gas Authority, Revenue Bonds, 6.30% (Original Issue Yield: 6.40%), 7/1/2009		A-		$      1,000,930
1,000,000		Georgia State, Series A, 6.20% (Original Issue Yield: 6.199%), 2/1/2004		AAA		1,029,660
1,000,000		Georgia State, GO UT Bonds, Series A, 6.00% (Original Issue Yield: 6.40%), 2/1/2007		AAA		1,028,360
1,430,000		Georgia State, GO UT Bonds, Series A, 6.25%, 4/1/2007		AAA		1,514,885
1,300,000		Georgia State, GO UT Bonds, Series A, 6.25%, 4/1/2008		AAA		1,382,069
1,000,000		Georgia State, GO UT Bonds, Series B, 5.95%, 3/1/2004		AAA		1,030,270
200,000		Georgia State, GO UT Bonds, Series B, 7.20%, 3/1/2006		AAA		219,648
500,000		Georgia State, GO UT Bonds, Series C, 6.50% (Original Issue Yield: 6.63%), 4/1/2006		AAA		532,950
765,000		Georgia State, GO UT Bonds, Series C, 7.25%, 7/1/2004		AAA		824,310
2,000,000		Georgia State, GO UT Bonds, Series D, 6.80%, 8/1/2005		AAA		2,148,140
200,000		Georgia State, GO UT Bonds, Series F, 6.50%, 12/1/2007		AAA		215,656
1,880,000		Gwinnett County, GA Housing Authority, Refunding Revenue Bonds, Series A, 5.50% (FNMA COL), 4/1/2026		AAA		1,886,354
1,000,000		Gwinnett County, GA, Certificates of Participation, 8.50% (Original Issue Yield: 6.50%), 8/1/2002		AAA		1,070,070
1,100,000		Gwinnett County, GA, Water & Sewage Utility Certificates of Participation, 8.40%, 8/1/2001		AAA		1,143,901
1,000,000		Hall County, GA School District, GO UT Refunding Bonds, 4.50% (Original Issue Yield: 5.20%), 11/1/2014		Aa2		850,100

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  1,600,000		Henry County, GA Water & Sewer Authority, Revenue Bond, 5.00% (AMBAC INS)/(Original Issue Yield: 5.32%), 2/1/2026		AAA		$  1,373,984
1,000,000		Henry County, GA School District, GO UT Bonds, Series A, 6.45%, 8/1/2011		A+		1,074,240
1,000,000		Henry County, GA School District, GO UT Bonds, 5.625% (MBIA INS), 8/1/2007		AAA		1,020,250
1,000,000		Macon-Bibb County, GA Hospital Authority, Refunding Revenue Bond, Series A, 5.30% (FGIC INS), 8/1/2011		AAA		979,890
500,000		Macon-Bibb County, GA Hospital Authority, Refunding Revenue Bond, Series C, 5.25% (FGIC INS), 8/1/2011		AAA		488,210
400,000		Marietta, GA Development Authority, Revenue Bonds, Series B, 5.75% (Life College, Inc.)/(CGIC INS)/(Original Issue Yield: 5.91%), 9/1/2014		AAA		400,548
3,425,000		Marietta, GA, GO UT, Series A, School Improvement Bonds, 4.50% (Original Issue Yield: 4.88%), 2/1/2019		AA-		2,794,252
500,000		Meriwether County, GA School District, GO UT Bonds, 7.00% (FSA INS), 2/1/2007		AAA		547,020
1,000,000		Metropolitan Atlanta GA Rapid Transit Authority, Series P, 6.25% (AMBAC INS)/(Original Issue Yield: 6.35%), 7/1/2011		AAA		1,067,990
1,000,000		Paulding County, GA School District, GO UT, Series A, 6.625% (Original Issue Yield: 6.75%), 2/1/2009		A		1,082,720
100,000		Peach County, GA School District, GO UT Bonds, 6.30% (MBIA INS)/(Original Issue Yield: 6.35%), 2/1/2014		AAA		106,436

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  2,000,000		Peachtree County GA, Water & Sewer Authority, Revenue Bond, Series A, 5.375% (Original Issue Yield: 5.60%), 3/1/2022		AA		$    1,843,360
1,000,000		Private Colleges & Universities Facilities of GA, Refunding Revenue Bonds, 5.625% (Agnes Scott College Project)/(Original Issue Yield: 5.70%), 6/1/2023		AAA		951,750
1,500,000		Private Colleges & Universities Facilities of GA, Revenue Bonds, 5.00% (Agnes Scott College Project)/(MBIA INS)/(Original Issue Yield: 5.06%), 6/1/2024		AAA		1,292,610
2,000,000		Richmond County, GA Public Facilities, Inc., Certificates of Participation, 6.10% (AMBAC INS), 11/1/2020		Aaa		2,021,580
1,000,000		Rockdale County, GA School District, GO UT, 6.20%, 1/1/2006		A1		1,044,670
1,500,000		Rockdale County, GA School District, GO UT Bonds, 6.30%, 1/1/2007		Aa2		1,567,125
1,785,000		Rockdale County, GA Water & Sewer, Series A, 5.50% (MBIA INS)/(Original Issue Yield: 5.88%), 7/1/2025		AAA		1,671,010
150,000		Savannah, GA Resources Recovery Development Authority, Refunding Revenue Bonds, 5.95% (Savannah Energy Systems Co.), 12/1/2002		A+		153,011
2,335,000		Savannah, GA Resources Recovery Development Authority, Revenue Bonds, 6.30% (Savannah Energy Systems Co.), 12/1/2006		A+		2,388,985
110,000		Savannah, GA Water & Sewage, Revenue Bonds, 5.10% (Original Issue Yield: 5.55%), 12/1/2010		AA-		106,288

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Georgia—continued
$  5,000,000		Upper Oconee Basin, GA Water Authority, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.41%), 7/1/2027		AAA		$      4,458,000
		Total				97,776,054
		Puerto Rico—0.3%
35,000		Puerto Rico Commonwealth Infrastructure Financing Authority, Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		30,316
30,000		Puerto Rico Electric Power Authority, Revenue Bonds, Series DD, 5.00% (MBIA INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		25,985

Principal Amount or Shares				Credit Rating*		Value
Long-Term Municipals—continued
		Puerto Rico—continued
$      265,000		Puerto Rico Highway and Transportation Authority, Refunding Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.16%), 7/1/2028		AAA		$          229,538
		Total				285,839
		Total Long-Term Municipals (identified cost $100,336,989)				98,061,893
Open-End Investment Companies—5.7%
1,000,355		AIM Global Management Short Term Investments				1,000,355
188		Dreyfus Tax Exempt Money Market Fund				188
2,131,544		Federated Tax-Free Obligations Fund				2,131,544
2,903,286		Fidelity Tax Exempt Money Market Fund				2,903,286
		Total Open-End Investment Companies (at cost)				6,035,373
		Total Investments (identified cost $106,372,362)				$  104,097,266

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—98.3%
		North Carolina—96.7%
$ 8,650,000		Appalachian State University, NC, Electricity, Light, Power, University and College Improvement Revenue Bonds, 6.20% (MBIA INS)/(Original Issue Yield: 6.27%), 5/15/2024		AAA		$  9,141,234
1,030,000		Buncombe County, NC, GO UT Bonds, 4.90% (Original Issue Yield: 5.15%), 4/1/2014		AA		945,416
1,000,000		Carteret County, NC, 5.625% (AMBAC INS)/ (Original Issue Yield: 5.65%), 6/1/2020		AAA		961,720
1,400,000		Carteret County, NC, GO UT Bonds, 5.40% (MBIA INS)/(Original Issue Yield: 5.60%), 5/1/2015		AAA		1,364,818
1,300,000		Carteret County, NC, GO UT School Improvements, 5.40% (MBIA INS)/(Original Issue Yield: 5.55%), 5/1/2013		AAA		1,285,544
1,305,000		Carteret County, NC, GO UT School Improvements, 5.40% (MBIA INS)/(Original Issue Yield: 5.55%), 5/1/2014		AAA		1,280,805
5,090,000		Charlotte, NC, GO UT, 5.25% (Original Issue Yield: 4.90%), 2/1/2014		AAA		4,928,087
1,000,000		Charlotte, NC, Refunding Bonds, Series A, GO UT, 5.50%, 7/1/2005		AAA		1,020,580
8,655,000		Charlotte, NC, Refunding Bonds, 5.25% (Original Issue Yield: 5.03%), 2/1/2020		AAA		8,046,467

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 7,290,000		Charlotte, NC, Refunding Bonds, 5.25% (Original Issue Yield: 5.05%), 2/1/2021		AAA		$  6,740,042
500,000		Charlotte, NC, GO Refunding Bonds, 4.50%, 6/1/2001		AAA		499,375
1,960,000		Charlotte, NC, GO UT Bonds, 5.70%, 2/1/2007		AAA		2,026,150
2,000,000		Charlotte, NC, GO UT Refunding Bonds, Series A, 5.50%, 7/1/2004		AAA		2,036,800
1,250,000		Charlotte, NC, GO UT Refunding Bonds, 5.00% (Original Issue Yield: 5.10%), 2/1/2009		AAA		1,227,950
840,000		Charlotte, NC, GO UT Refunding Bonds, 5.00% (Original Issue Yield: 5.15%), 2/1/2012		AAA		808,668
3,000,000		Charlotte, NC, GO UT Refunding Bonds, 5.40%, 6/1/2012		AAA		2,993,970
2,205,000		Charlotte, NC, GO UT Refunding Bonds, 5.50% (Original Issue Yield: 5.55%), 7/1/2004		AAA		2,245,572
900,000		Charlotte, NC, GO UT Water & Sewer Bonds, Series A, 5.30%, 4/1/2008		AAA		905,949
9,200,000		Charlotte, NC, GO UT Water Utility and Sewer Improvements, 5.60%, 5/1/2018		AAA		9,542,240
1,000,000		Charlotte, NC, GO UT, 5.00% (Original Issue Yield: 4.45%), 6/1/2003		AAA		1,001,240
1,000,000		Charlotte, NC, GO UT, 5.00% (Original Issue Yield: 5.10%), 2/1/2020		AAA		891,190
1,755,000		Charlotte, NC, GO UT, 5.00% (Original Issue Yield: 5.15%), 6/1/2024		AAA		1,534,291

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,120,000		Charlotte, NC, GO UT, 5.50%, 5/1/2005		AAA		$  1,139,454
5,050,000		Charlotte, NC, GO UT, 5.80%, 2/1/2014		AAA		5,258,211
1,000,000		Charlotte, NC, GO UT, 5.90%, 2/1/2018		AAA		1,044,530
3,500,000		Charlotte, NC, Public Improvements, 5.375% (Original Issue Yield: 5.50%), 6/1/2013		AA		3,401,230
2,000,000		Charlotte, NC, Refunding Bonds, 5.25% (AMBAC INS)/(Original Issue Yield: 5.70%), 12/1/2020		AAA		1,818,920
1,000,000		Charlotte, NC, Storm Water Fee, 6.00%, 6/1/2025		AA+		1,001,990
1,180,000		Charlotte-Mecklenburg Hospital Authority, NC, Refunding Bonds, 5.75% (Original Issue Yield: 6.50%), 1/1/2012		AA		1,216,261
1,780,000		Charlotte-Mecklenburg Hospital Authority, NC, PRF, 5.75% (Original Issue Yield: 6.50%), 1/1/2012		AA		1,780,178
1,190,000		Charlotte-Mecklenburg Hospital Authority, NC, Refunding Bonds, 6.00% (Original Issue Yield: 6.25%), 1/1/2005		AA		1,215,049
3,950,000		Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.05%), 1/15/2012		AA		3,639,688
1,000,000		Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.30%), 1/15/2017		AA		875,120

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$   735,000		Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.25%), 1/1/2005		AA		$    760,350
1,000,000		Charlotte-Mecklenburg Hospital Authority, NC, Revenue Bonds, 5.60% (Original Issue Yield: 5.70%), 1/15/2009		AA		1,002,570
2,250,000		Concord, NC, Series A, Multiple Utility Improvement Revenue Bonds, 5.00% (MBIA INS), 12/1/2022		AAA		1,957,905
445,000		Concord, NC, Certificates of Participation, 5.40% (MBIA INS)/(Original Issue Yield: 5.50%), 6/1/2003		AAA		447,261
345,000		Concord, NC, Certificates of Participation, 5.60% (MBIA INS)/(Original Issue Yield: 5.70%), 6/1/2005		AAA		348,816
2,600,000		Concord, NC, Revenue Bonds, Series A, 5.00% (MBIA INS), 12/1/2017		AAA		2,329,756
2,250,000		Cumberland County, NC Civic Center Project, Series A, 6.40% (AMBAC INS)/(Original Issue Yield: 6.62%), 12/1/2024		AAA		2,405,452
2,000,000		Cumberland County, NC Hospital Facilities, Refunding Revenue Bonds, 4.00%, 10/1/2002		A-		1,921,300
2,000,000		Cumberland County, NC Hospital Facilities, Revenue Refunding Bonds, 4.10%, 10/1/2003		A-		1,888,600

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,000,000		Cumberland County, NC Hospital Facilities, Refunding Revenue Bonds, 4.20% (Original Issue Yield: 4.25%), 10/1/2004		A-		$    929,430
210,000		Cumberland County, NC Hospital Facilities, Revenue Bonds, 6.00% (MBIA INS)/(Original Issue Yield: 6.84%), 10/1/2021		AAA		213,160
2,000,000		Cumberland County, NC, GO UT, 5.00% (FGIC INS)/(Original Issue Yield: 5.15%), 3/1/2017		AAA		1,816,860
1,000,000		Cumberland County, NC, Certificates of Participation, Series A, 6.375% (Cumberland County, NC Civic Center Project)/(AMBAC INS)/ (Original Issue Yield: 6.50%), 12/1/2010		AAA		1,068,100
615,000		Currituck County, NC, GO UT Bonds, 5.40% (MBIA INS), 4/1/2009		AAA		619,895
100,000		Durham County, NC, GO UT Bonds, 5.75% (Original Issue Yield: 5.95%), 2/1/2009		AAA		102,606
2,820,000		Durham County, NC, GO UT Bonds, 5.75% (Original Issue Yield: 5.95%), 2/1/2010		AAA		2,891,205
4,400,000		Durham County, NC, GO UT Public Improvement Bonds, 5.90%, 4/1/2012		AAA		4,541,504
1,810,000		Durham County, NC, Refunding Bonds, 5.00%, 5/1/2004		AA		1,803,249
2,130,000		Durham County, NC, Refunding Bonds, 5.00%, 5/1/2005		AA		2,115,729
2,235,000		Durham County, NC, Refunding Bonds, 5.00%, 5/1/2006		AA		2,210,706

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,000,000		Durham County, NC, Refunding Bonds, 5.00%, 5/1/2007		AA		$    983,620
1,500,000		Durham County, NC, Refunding Bonds, 5.00%, 5/1/2014		AA		1,384,380
1,550,000		Durham, NC, GO UT Bonds, 5.20% (Original Issue Yield: 5.30%), 2/1/2008		AAA		1,549,395
2,000,000		Durham, NC, GO UT Revenue Bonds, 5.80% (Original Issue Yield: 5.95%), 2/1/2012		AAA		2,060,700
12,200,000		Fayetteville, NC Public Works Commission, Refunding Revenue Bonds, 4.75% (FGIC INS)/(Original Issue Yield: 5.23%), 3/1/2014		AAA		10,916,560
1,000,000		Forsyth County, NC, GO UT Bonds, 4.75%, 2/1/2005		AAA		984,140
3,140,000		Forsyth County, NC, GO UT Bonds, 4.90% (Original Issue Yield: 5.00%), 3/1/2007		AAA		3,088,284
2,510,000		Forsyth County, NC, GO UT Bonds, 5.40% (Original Issue Yield: 5.65%), 6/1/2006		AAA		2,550,436
160,000		Franklin County, NC, Certificates of Participation, Jail and School Improvements, 6.10% (FGIC INS), 6/1/2003		AAA		164,794
305,000		Fremont, NC Housing Development Corp., First Lien Refunding Revenue Bonds, 6.75% (Torhunta Apts)/(FNMA COL), 7/15/2022		Aaa		310,877

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,050,000		Gaston County, NC, GO UT Bonds, 5.20% (AMBAC INS)/(Original Issue Yield: 5.35%), 3/1/2014		AAA		$  1,006,698
1,600,000		Gaston County, NC, GO UT Bonds, 5.20% (AMBAC INS)/(Original Issue Yield: 5.40%), 3/1/2015		AAA		1,521,680
2,025,000		Gastonia, NC Combined Utilities System, Refunding Revenue Bonds, 4.75% (Original Issue Yield: 4.98%), 5/1/2015		AAA		1,784,066
100,000		Gastonia, NC Combined Utilities System, Revenue Bonds, 6.00% (MBIA INS)/ (Original Issue Yield: 6.10%), 5/1/2014		AAA		104,949
2,000,000		Gastonia, NC Combined Utilities System, Refunding Revenue Bonds, 6.10% (MBIA INS)/(Original Issue Yield: 6.15%), 5/1/2019		AAA		2,106,000
500,000		Gastonia, NC, GO UT, 5.40% (MBIA INS), 5/1/2011		AAA		500,260
3,485,000		Greensboro, NC, Certificates of Participation, Series A, 5.625% (Coliseum Arena Expansion Project)/ (Original Issue Yield: 6.05%), 12/1/2015		A1		3,597,182
105,000		Greensboro, NC, Certificates of Participation, 6.65% (Coliseum Arena Expansion Project)/(Original Issue Yield: 6.70%), 12/1/2004		A1		109,597

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 2,200,000		Greensboro, NC, GO UT Bonds, 4.70% (Original Issue Yield: 4.80%), 4/1/2014		AAA		$  1,966,558
2,535,000		Greensboro, NC, GO UT Bonds, 4.70% (Original Issue Yield: 4.90%), 4/1/2016		AAA		2,215,793
2,455,000		Greensboro, NC, GO UT Bonds, 4.75% (Original Issue Yield: 4.95%), 4/1/2017		AAA		2,143,043
1,465,000		Greensboro, NC Enterprise System, Revenue Bonds, 6.50%, 6/1/2006		AA-		1,559,375
1,000,000		Greensboro, NC Enterprise System, Water & Sewer Improvements, Series A, 5.30% (MBIA INS)/ (Original Issue Yield: 5.518%), 6/1/2015		AAA		951,030
6,900,000		Greensboro, NC Enterprise System, Water & Sewer Improvements, Series A, 5.375% (Original Issue Yield: 5.594%), 6/1/2019		AA-		6,470,682
500,000		Harnett County, NC, Certificates of Participation, 6.20% (AMBAC INS), 12/1/2009		AAA		522,100
600,000		High Point, NC, GO UT Revenue Bonds, 5.60%, 3/1/2008		AA		614,136
1,980,000		Iredell County, NC Iredell Memorial Hospital, 5.125% (AMBAC INS)/(Original Issue Yield: 5.30%), 10/1/2013		AAA		1,865,160
5,000,000		Iredell County, NC, Certificates of Participation, 6.125% (FGIC INS)/(Original Issue Yield: 6.23%), 6/1/2007		AAA		5,147,300

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,130,000		Lee County, NC, GO UT Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.05%), 4/1/2009		AAA		$  1,106,643
1,725,000		Lee County, NC, GO UT Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.15%), 4/1/2010		AAA		1,675,958
2,700,000		Lee County, NC, GO UT Bonds, 5.00% (MBIA INS)/ (Original Issue Yield: 5.20%), 4/1/2011		AAA		2,598,156
100,000		Martin County, NC IFA, PCR Bonds, 6.80% (Weyerhaeuser Co.), 5/1/2024		A		101,569
2,000,000		Mecklenburg County, NC, GO UT Bonds, Series A, 4.40% (Original Issue Yield: 4.65%), 2/1/2014		AAA		1,716,520
8,435,000		Mecklenburg County, NC, GO UT Bonds, Series B, 4.90% (Original Issue Yield: 5.10%), 3/1/2011		AAA		8,029,614
1,925,000		Mecklenburg County, NC, GO UT Bonds, Series B, 4.40% (Original Issue Yield: 4.60%), 2/1/2013		AAA		1,674,615
3,500,000		Mecklenburg County, NC, GO UT Bonds, 4.10% (Original Issue Yield: 4.25%), 4/1/2003		AAA		3,387,685
3,670,000		Mecklenburg County, NC, GO UT Bonds, 4.40% (Original Issue Yield: 4.45%), 2/1/2011		AAA		3,278,484
13,000,000		Mecklenburg County, NC, GO UT Bonds, 4.40%, 2/1/2010		AAA		11,753,560
4,405,000		Mecklenburg County, NC, GO UT Bonds, 4.80% (Original Issue Yield: 4.90%), 3/1/2009		AAA		4,211,885
820,000		Mecklenburg County, NC, GO UT Bonds, 5.00%, 4/1/2008		AAA		809,758

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$10,000,000		Mecklenburg County, NC, GO UT Bonds, 5.40%, 4/1/2007		AAA		$ 10,150,400
2,000,000		Mecklenburg County, NC, GO UT Bonds, 5.50% (Original Issue Yield: 5.60%), 4/1/2011		AAA		2,025,080
1,000,000		Moore County, NC, GO UT Bonds, 4.60% (MBIA INS)/(Original Issue Yield: 4.65%), 6/1/2011		AAA		911,859
1,600,000		Moore County, NC, GO UT Public Improvement, 4.90% (MBIA INS)/(Original Issue Yield: 4.90%), 6/1/2014		AAA		1,467,696
1,675,000		Moore County, NC, GO UT Public Improvement, 4.90% (MBIA INS)/(Original Issue Yield: 4.95%), 6/1/2015		AAA		1,521,738
750,000		New Hanover County, NC PCFA, Revenue Bond, 6.90% (Carolina Power & Light Co.), 4/1/2009		A		765,345
1,195,000		New Hanover County, NC, Certificates of Participation, 4.80% (Original Issue Yield: 4.90%), 12/1/2009		AAA		1,125,391
1,250,000		New Hanover County, NC, Certificates of Participation, 4.90% (MBIA INS)/(Original Issue Yield: 5.00%), 12/1/2010		AAA		1,179,437
1,315,000		New Hanover County, NC, Certificates of Participation, 5.00% (MBIA INS)/(Original Issue Yield: 5.05%), 12/1/2011		AAA		1,247,159
2,475,000		New Hanover County, NC, GO UT Bonds, 4.80%, 2/1/2017		AA-		2,166,739

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 2,475,000		New Hanover County, NC, GO UT Bonds, 4.90%, 2/1/2018		AA-		$  2,183,420
1,000,000		North Carolina Eastern Municipal Power Agency, Series B, 7.00% (Original Issue Yield: 6.25%), 1/1/2008		A		1,065,150
100,000		North Carolina Educational Facilities Finance Agency, Refunding Revenue Bonds, 6.00% (Davidson College)/(Original Issue Yield: 6.20%), 12/1/2012		AA		101,989
450,000		North Carolina Educational Facilities Finance Agency, Revenue Bonds, Series B, 4.25% (Duke University)/ (Original Issue Yield: 4.30%), 10/1/2003		AA		436,577
1,000,000		North Carolina Educational Facilities Finance Agency, Revenue Bonds, Series C, 6.75% (Duke University)/ (Original Issue Yield: 6.769%), 10/1/2021		AA+		1,040,380
20,000		North Carolina HFA, Multi-Family Refunding Revenue Bonds, Series B, 6.90% (FHA INS), 7/1/2024		Aa2		20,788
85,000		North Carolina HFA, Revenue Bonds, Series Z, 6.60%, 9/1/2026		AA		85,941
2,100,000		North Carolina HFA, Single Family Revenue Bonds, 6.45%, 9/1/2014		AA		2,135,973
1,355,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 4.625% (Rex Healthcare)/ (Original Issue Yield: 4.93%), 6/1/2011		AAA		1,214,107

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,000,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.03%), 10/1/2004		AA		$    981,440
2,000,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 5.00% BANS, 6/1/2013		AAA		1,842,440
1,525,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 5.20% (Wilson Memorial Hospital)/(AMBAC INS)/(Original Issue Yield: 5.35%), 11/1/2010		AAA		1,489,361
4,000,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 5.40% (Original Issue Yield: 5.75%), 2/15/2011		A+		3,769,520
6,335,000		North Carolina Medical Care Commission, Refunding Revenue Bond, 5.50% (Original Issue Yield: 6.10%), 5/1/2015		AA		6,034,278
50,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 6.125% (Rex Hospital)/ (Original Issue Yield: 6.219%), 6/1/2010		A+		52,338
850,000		North Carolina Medical Care Commission, Refunding Revenue Bonds, 7.375% (Presbyterian Hospital)/(United States Treasury PRF)/(Original Issue Yield: 7.417%), 10/1/2000 (Callable @ 102)		AAA		874,506
6,240,000		North Carolina Medical Care Commission, Revenue Bonds, Series C, 5.25% (Duke University Hospital)/(Original Issue Yield: 5.72%), 6/1/2021		AA		5,572,632

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 8,000,000		North Carolina Medical Care Commission, Revenue Bonds, 5.25% (Original Issue Yield: 5.72%), 5/1/2026		AA		$  6,965,440
525,000		North Carolina Medical Care Commission, Revenue Bonds, 5.20% (Moore Regional Hospital)/(FGIC INS)/(Original Issue Yield: 5.30%), 10/1/2013		AAA		490,298
1,000,000		North Carolina Medical Care Commission, Revenue Bonds, Series C, 5.25% (Duke University Hospital)/(Original Issue Yield: 5.65%), 6/1/2017		AA		912,310
1,000,000		North Carolina Medical Care Commission, Revenue Bonds, 7.00% (Duke University Hospital)/(Original Issue Yield: 7.08%), 6/1/2021		AA		1,041,520
3,680,000		North Carolina Municipal Power Agency No. 1, Refunding Revenue Bonds, 6.25% (Original Issue Yield: 6.477%), 1/1/2017		BBB+		3,842,472
4,115,000		North Carolina State, GO UT, 4.60%, 4/1/2015		AAA		3,586,675
3,500,000		North Carolina State, Series A, 4.70% (Original Issue Yield: 4.30%), 2/1/2003		AAA		3,471,370
1,300,000		North Carolina State, Series A, 5.20% (Original Issue Yield: 5.40%), 3/1/2014		AAA		1,250,002
2,225,000		North Carolina State, Capital Improvement, GO UT Bonds, Series A, 4.70%, 2/1/2006		AAA		2,168,619
5,000,000		North Carolina State, GO, Series A, 4.50%, 5/1/2006		AAA		4,792,800

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 3,000,000		North Carolina State, GO, Series B, 4.50% (Original Issue Yield: 4.55%), 6/1/2005		AAA		$  2,901,540
1,675,000		North Carolina State, GO UT, Series A, 4.50%, 5/1/2005		AAA		1,620,764
5,000,000		North Carolina State, GO UT, Series A, 5.20% (Original Issue Yield: 5.45%), 3/1/2015		AAA		4,769,650
7,260,000		North Carolina State, GO UT Bonds, Series A, 4.70%, 2/1/2005		AAA		7,122,859
5,000,000		North Carolina State, GO UT Bonds, Series A, 4.75%, 4/1/2006		AAA		4,888,900
5,000,000		North Carolina State, GO UT Bonds, 5.00%, 5/1/2011		AAA		4,826,450
1,000,000		North Carolina State, GO UT Bonds, 5.10%, 3/1/2003		AAA		1,003,610
1,000,000		North Carolina State, GO UT Refunding Bonds, Series C, 4.80% (North Carolina Prison Facilities)/(Original Issue Yield: 4.85%), 3/1/2009		AAA		956,160
2,850,000		North Carolina State, GO UT, Series A, 4.75% (Original Issue Yield: 5.00%), 2/1/2012		AAA		2,631,662
4,575,000		North Carolina State, GO UT, 4.60% (Original Issue Yield: 3.72%), 4/1/2003		AAA		4,522,525
3,500,000		North Carolina State, GO UT, 4.60% (Original Issue Yield: 3.82%), 4/1/2004		AAA		3,437,490
575,000		Onslow County, NC, GO UT Bonds, 5.70% (MBIA INS)/(Original Issue Yield: 5.85%), 3/1/2013		AAA		584,068
2,500,000		Orange County, NC, GO UT Bonds, 5.50% (Original Issue Yield: 5.75%), 2/1/2013		AA+		2,500,925

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 1,000,000		Piedmont Triad Airport Authority, NC, Revenue Bonds, Series A, 6.50% (MBIA INS)/(Original Issue Yield: 6.55%), 7/1/2000		AAA		$  1,001,570
3,845,000		Piedmont Triad Airport Authority, NC, Refunding Bonds, 5.00% (MBIA INS), 7/1/2008		AAA		3,743,915
2,380,000		Pitt County, NC, Refunding Revenue Bonds, 5.10% (Pitt County Memorial Hospital)/ (Original Issue Yield: 5.20%), 12/1/2007		Aaa		2,357,366
3,635,000		Pitt County, NC, Refunding Revenue Bonds, 5.20% (Pitt County Memorial Hospital)/ (Original Issue Yield: 5.30%), 12/1/2008		Aaa		3,611,591
3,000,000		Pitt County, NC, Refunding Bonds, 5.25% (Pitt County Memorial Hospital)/(Original Issue Yield: 5.85%), 12/1/2021		Aaa		2,769,330
3,000,000		Pitt County, NC, Refunding Bonds, 5.30% (Pitt County Memorial Hospital)/(Original Issue Yield: 5.40%), 12/1/2009		Aaa		2,992,260
350,000		Raleigh, NC, Certificates of Participation Refunding Bonds, 5.00% (Cabarrus Street Parking Facilities Project)/(Original Issue Yield: 5.10%), 12/1/2009		AA		333,823
230,000		Raleigh, NC, Certificates of Participation Refunding Bonds, 5.10% (Cabarrus Street Parking Facilities Project)/(Original Issue Yield: 5.20%), 12/1/2010		AA		219,365
2,645,000		Raleigh, NC, Refunding Bonds, 5.00%, 4/1/2005		AAA		2,640,900

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$   400,000		Raleigh, NC, GO UT Refunding Bonds, 6.40%, 3/1/2006		AAA		$    412,908
2,000,000		Raleigh, NC, Water Utility Improvement Revenue Bonds, 5.125% (Original Issue Yield: 5.61%), 3/1/2022		AA+		1,772,580
800,000		Randolph County, NC, Certificates of Participation, 4.875% (MBIA INS)/(Original Issue Yield: 5.05%), 6/1/2006		AAA		781,720
1,025,000		Sanford, NC, GO UT Bonds, 4.90% (MBIA INS), 3/1/2009		AAA		988,510
2,500,000		University of North Carolina at Chapel Hill, Hospital Revenue Bonds, 5.25%, 2/15/2026		AA		2,192,075
6,220,000		University of North Carolina at Chapel Hill, Refunding Bonds, 5.00% (Original Issue Yield: 5.65%), 8/1/2011		AA		5,980,157
8,200,000		University of North Carolina at Chapel Hill, Utility Refunding Bonds, 5.00% (Original Issue Yield: 5.60%), 8/1/2010		AA		7,960,970
1,500,000		Wake County, NC Industrial Facilities & PCFA, Series 1990A, Revenue Bonds, 4.30% (Carolina Power & Light Co.)/(Fuji Bank, Ltd., Tokyo LOC)		A+		1,500,000
1,000,000		Wake County, NC, GO UT Bonds, 4.50% (Original Issue Yield: 4.52%), 3/1/2008		AAA		937,810
3,000,000		Wake County, NC, GO UT Bonds, 4.50% (Original Issue Yield: 4.72%), 3/1/2010		AAA		2,742,780

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		North Carolina—continued
$ 7,925,000		Wake County, NC, GO UT Bonds, 4.60% (Original Issue Yield: 4.87%), 3/1/2012		AAA		$  7,164,279
650,000		Wake County, NC, GO UT Refunding Bonds, 4.70% (Original Issue Yield: 4.80%), 4/1/2005		AAA		637,338
7,400,000		Wake County, NC, GO UT, 4.50% (Original Issue Yield: 4.62%), 3/1/2009		AAA		6,839,968
1,375,000		Wake County, NC, Hospital Revenue Bonds, 5.125% (MBIA INS)/(Original Issue Yield: 5.35%), 10/1/2026		AAA		1,251,401
825,000		Winston-Salem, NC Water & Sewer System, Refunding Bonds, 5.00%, 6/1/2012		AA+		781,135
2,745,000		Winston-Salem, NC Water & Sewer System, Revenue Bonds, 4.80% (Original Issue Yield: 4.90%), 6/1/2013		AA+		2,492,350
3,350,000		Winston-Salem, NC Water & Sewer System, Revenue Bonds, 4.875% (Original Issue Yield: 4.95%), 6/1/2014		AA+		3,039,254
		Total				402,611,583
		Puerto Rico—1.6%
1,900,000		Commonwealth of Puerto Rico, GO, 5.375% (MBIA INS)/(Original Issue Yield: 5.60%), 7/1/2021		AAA		1,785,905
45,000		Puerto Rico Commonwealth Infrastructure Financing Authority, Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		38,978

Principal Amount or Shares				Credit Rating*		Value
Long-Term Municipals—continued
		Puerto Rico—continued
$   400,000		Puerto Rico Electric Power Authority, Series W, 5.00% (MBIA INS)/(Original Issue Yield: 5.05%), 7/1/2004		AAA		$    401,372
5,220,000		Puerto Rico Electric Power Authority, Revenue Bonds, Series DD, 5.00% (MBIA INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		4,521,460
45,000		Puerto Rico Highway and Transportation Authority, Refunding Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.16%), 7/1/2028		AAA		38,978
		Total				6,786,693
		Total Long-Term Municipals (identified cost ($419,768,106)				409,398,276
Open-End Investment Companies—1.5%
1,152,007		AIM Global Management Short Term Investments				1,152,007
19		Dreyfus Tax Exempt Money Market Fund				19
41,580		Federated Tax-Free Obligations Fund				41,580
4,904,450		Fidelity Tax Exempt Money Market Fund				4,904,450
		Total Open-End Investment Companies (at cost)				6,098,056
		Total Investments (identified cost $425,866,162)				$415,496,332

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—98.5%
		South Carolina—97.4%
$   850,000		Barnwell County, SC School District No. 45, GO UT, 5.40% (Original Issue Yield: 5.45%), 2/1/2009		AAA		$    850,170
1,350,000		Beaufort County, SC School District, GO UT, Series B, 4.85% (MBIA INS), 3/1/2004		AAA		1,335,649
1,300,000		Beaufort County, SC School District, GO UT, 4.70%, 3/1/2006		AA		1,263,613
500,000		Beaufort County, SC, Certificate of Participation, 5.00% (Hilton Head Airport), 7/1/2001		A2		500,005
675,000		Beaufort County, SC, Certificates of Participation, 7.125% (AMBAC INS)/(Original Issue Yield: 7.45%), 6/1/2012		AAA		688,500
1,415,000		Beaufort County, SC, GO UT, 5.65% (MBIA INS)/(Original Issue Yield: 5.65%), 12/1/2009		AAA		1,424,650
2,855,000		Beaufort-Jasper, SC Water & Sewer Authority, Waterworks and Sewer System Revenue Bonds, 5.90% (FGIC INS)/(Original Issue Yield: 6.00%), 3/1/2016		AAA		2,994,352
750,000		Berkeley County, SC Pollution Control Facilities, 6.50% (South Carolina Electric and Gas), 10/1/2014		A-		780,668
3,000,000		Berkeley County, SC School District, GO UT, 5.00% (Original Issue Yield: 5.70%), 4/1/2020		AA+		2,688,180
4,500,000		Berkeley County, SC School District, GO UT, 5.375% (Original Issue Yield: 5.50%), 4/1/2016		AA		4,332,555

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 5,000,000		Berkeley County, SC School District, GO UT, 5.375% (Original Issue Yield: 5.55%), 4/1/2017		AA		$  4,786,100
3,000,000		Berkeley County, SC School District, GO UT, 5.375%, 4/1/2018		AA		2,848,050
5,500,000		Berkeley County, SC School District, GO UT, 5.375%, 4/1/2019		AA		5,194,695
1,500,000		Berkeley County, SC Water & Sewer, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.55%), 6/1/2013		AAA		1,484,235
2,420,000		Berkeley County, SC Water & Sewer, Refunding Revenue Bonds, 5.55% (MBIA INS)/(Original Issue Yield: 5.60%), 6/1/2014		AAA		2,389,677
1,040,000		Berkeley County, SC Water & Sewer, Refunding Revenue Bonds, 6.55% (MBIA INS), 6/1/2002		AAA		1,069,942
1,000,000		Camden, SC Public Utility, Revenue Refunding Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.80%), 3/1/2022		AAA		941,330
2,000,000		Cayce SC, Water and Sewer, Refunding Revenue Bond, 5.25% (AMBAC INS)/(Original Issue Yield: 5.65%), 7/1/2015		AAA		1,887,420
1,105,000		Charleston County, SC Airport District, Airport System Refunding Revenue Bonds, 4.75% (MBIA INS), 7/1/2015		AAA		964,632
770,000		Charleston County, SC School District, Certificate of Participation, 5.625% (Original Issue Yield: 5.761%), 2/1/2003		A		776,522

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 3,000,000		Charleston County, SC School District, GO UT School Improvement, 4.00%, 2/1/2002		AA		$  2,937,540
5,500,000		Charleston County, SC, 5.50% (Charleston Public Facilities Corp.)/(MBIA INS)/(Original Issue Yield: 5.70%), 12/1/2015		AAA		5,351,940
3,495,000		Charleston County, SC, 6.00% (MBIA INS)/(Original Issue Yield: 5.40%), 12/1/2009		AAA		3,650,562
500,000		Charleston County, SC, 7.05%, 2/1/2002		A		510,805
3,260,000		Charleston, SC Waterworks and Sewer, 5.00% (MBIA INS), 1/1/2022		AAA		2,820,389
1,000,000		Charleston, SC Waterworks and Sewer, 6.00% (Original Issue Yield: 6.242%), 1/1/2012		AA-		1,012,930
2,000,000		Charleston, SC Waterworks and Sewer, Refunding Revenue Bond, 5.50% (Original Issue Yield: 6.10%), 1/1/2008		AA-		2,004,540
7,030,000		Charleston, SC Waterworks and Sewer, Refunding Revenue Bond, 6.00% (AMBAC INS)/(Original Issue Yield: 6.201%), 1/1/2016		AAA		7,075,625
2,000,000		Charleston, SC Waterworks and Sewer, Refunding Revenue Bond, 6.00% (Original Issue Yield: 6.285%), 1/1/2018		AA-		2,007,220
4,295,000		Charleston, SC Waterworks and Sewer, Refunding Revenue Bonds, 5.125%, 1/1/2013		AA-		4,129,170

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 9,500,000		Charleston, SC Waterworks and Sewer, Revenue Refunding Bonds, 4.50% (FGIC INS)/(Original Issue Yield: 5.03%), 1/1/2024		AAA		$  7,467,570
1,900,000		Charleston, SC, Certificates of Participation, 5.00% (AMBAC INS)/(Original Issue Yield: 5.39%), 9/1/2015		AAA		1,716,118
1,000,000		Charleston, SC, Certificates of Participation, 7.10% (MBIA INS)/(United States Treasury PRF), 6/1/2001 (@102)		AAA		1,042,480
250,000		Charleston, SC, GO Bonds, Series A, 6.30%, 9/1/2005		AA		258,445
1,155,000		Chester County, SC School District, GO UT, 5.30% (AMBAC INS)/(Original Issue Yield: 5.45%), 2/1/2011		AAA		1,131,253
1,140,000		Chester County, SC School District, GO UT, 5.30% (AMBAC INS)/(Original Issue Yield: 5.50%), 2/1/2012		AAA		1,107,191
1,785,000		Clemson University, Revenue Bond, 6.00% (AMBAC INS), 5/1/2013		AAA		1,836,622
1,000,000		Clover, SC School District No. 2 York County, GO UT, 6.00%, 2/1/2001		AA		1,008,960
2,785,000		Clover, SC School District No. 2 York County, GO UT, 6.10%, 2/1/2002		AA		2,834,072
1,000,000		Columbia, SC Waterworks & Sewer System, Refunding Revenue Bond, 5.30% (Original Issue Yield: 5.50%), 2/1/2006		AA		1,004,640

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 2,145,000		Columbia, SC Waterworks & Sewer System, Refunding Revenue Bond, 6.50% (Original Issue Yield: 6.55%), 2/1/2002		AA		$  2,195,386
2,970,000		Columbia, SC Waterworks & Sewer System, Refunding Revenue Bonds, 5.70%, 2/1/2010		AA		3,039,528
2,160,000		Columbia, SC Waterworks & Sewer System, Revenue Bonds, 5.00%, 2/1/2003		AA		2,156,911
2,000,000		Columbia, SC, Parking Facilities Refunding Revenue Bonds, 5.875% (AMBAC INS)/(Original Issue Yield: 6.007%), 12/1/2013		AAA		2,028,000
1,250,000		Dillon County SC, Health Facilities, Refunding Revenue Bond, 6.25% (MBIA INS), 6/1/2008		AAA		1,302,725
1,065,000		Dorchester County, SC School District No. 002, GO UT Bonds, 5.125% (FGIC INS)/(Original Issue Yield: 5.25%), 2/1/2012		AAA		1,020,770
3,000,000		Dorchester County, SC School District No. 002, GO UT Bonds, 5.20% (FGIC INS), 2/1/2018		AAA		2,757,960
2,250,000		Dorchester County, SC School District No. 002, GO UT Bonds, 5.20% (FGIC INS)/(Original Issue Yield: 5.35%), 2/1/2017		AAA		2,087,977
1,000,000		Dorchester County, SC School District No. 002, GO UT, 5.50% (AMBAC INS)/(Original Issue Yield: 5.55%), 1/1/2005		AAA		1,010,460
870,000		Edgefield County, SC School District, GO UT Bonds, 6.40% (FSA INS)/(Original Issue Yield: 6.60%), 2/1/2009		AAA		914,901

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,205,000		Fairfield County, SC School District, Certificates of Participation, 5.50% (Fairfield Primary Geiger)/(Asset Guaranty GTD)/(Original Issue Yield: 5.60%), 3/1/2007		AA		$  1,206,566
2,000,000		Fairfield County, SC, PCR Bonds, 6.50% (South Carolina Electric and Gas), 9/1/2014		A		2,098,380
1,000,000		Fairfield County, SC, Pollution Control, Revenue Bond, 6.50% (South Carolina Electric and Gas)/(MBIA INS), 9/1/2014		AAA		1,051,370
1,000,000		Florence County, SC Hospital, Refunding Revenue Bond, 5.25% (FGIC INS)/(Original Issue Yield: 5.457%), 11/1/2009		AAA		977,820
1,500,000		Florence County, SC Hospital, Revenue Bonds, 4.75% (Mcleod Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 4.75%), 11/1/2027		AAA		1,177,935
500,000		Florence County, SC Hospital, Revenue Bonds, 6.75% (McLeod Regional Medical Center)/(FGIC INS)/(Original Issue Yield: 7.00%), 11/1/2010		AAA		514,240
1,485,000		Florence County, SC, Law Enforcement Control Project, 5.70% (AMBAC INS)/(Original Issue Yield: 5.90%), 3/1/2003		AAA		1,508,032
1,220,000		Florence County, SC, Law Enforcement Control Project, 6.00% (AMBAC INS)/(Original Issue Yield: 6.15%), 3/1/2006		AAA		1,253,013
1,600,000		Florence, SC Water & Sewer, Refunding Revenue Bond, 5.20% (AMBAC INS)/(Original Issue Yield: 5.35%), 3/1/2007		AAA		1,590,976

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 3,805,000		Grand Strand Water & Sewage Authority, SC, Revenue Refunding Bonds, 6.375% (South Carolina Waterworks & Sewer System)/(MBIA INS)/(Original Issue Yield: 6.508%), 6/1/2012		AAA		$  4,108,563
1,800,000		Grand Strand Water & Sewage Authority, SC, Waterworks & Sewer System Revenue Refunding Bonds, 6.00% (MBIA INS)/(Original Issue Yield: 6.595%), 6/1/2019		AAA		1,802,178
1,230,000		Greenville County, SC, Certificate of Participation, PRF, 6.80% (AMBAC INS), 3/1/2005		AAA		1,273,271
1,000,000		Greenville, SC Hospital System Facilities, Refunding Revenue Bond, Series A, 5.75% (Original Issue Yield: 6.00%), 5/1/2014		AA		976,120
600,000		Greenville, SC Hospital System Facilities, Refunding Revenue Bonds, 5.75% (Original Issue Yield: 5.95%), 5/1/2013		AA		590,046
2,000,000		Greenville, SC Waterworks Revenue, Revenue Bonds, 5.50% (Original Issue Yield: 5.60%), 2/1/2022		AA		1,889,860
1,020,000		Greenwood County, SC Hospital, Refunding Revenue Bond, 5.875% (Self Memorial Hospital)/(MBIA INS)/(Original Issue Yield: 6.112%), 10/1/2017		AAA		1,006,822
1,400,000		Greenwood SC, Combined Public Utility, Refunding Revenue Bond, 5.35% (AMBAC INS)/(Original Issue Yield: 5.45%), 12/1/2005		AAA		1,411,592

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,320,000		Greenwood SC, Combined Public Utility, Refunding Revenue Bond, 5.70% (AMBAC INS), 12/1/2010		AAA		$  1,335,814
1,125,000		Greer SC, Combined Utility System, Revenue Bonds, 4.75% (AMBAC INS)/(Original Issue Yield: 4.85%), 9/1/2011		AAA		1,034,842
1,000,000		Hilton Head Island, SC Public Facilities Corp., Certificates of Participation, 5.40% (AMBAC INS)/(Original Issue Yield: 5.599%), 3/1/2009		AAA		1,000,190
2,000,000		Hilton Head Public Services District No. 1, SC, Water Workes & Sewer Refunding Revenue Bond, 5.50% (MBIA INS)/(Original Issue Yield: 5.80%), 8/1/2015		AAA		1,946,720
4,000,000		Hilton Head Public Services District No. 1, SC, Waterworks and Sewer Systems Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.85%), 8/1/2020		AAA		3,769,720
2,350,000		Lancaster County, SC School District, GO UT, 5.25% (FSA INS)/(Original Issue Yield: 5.39%), 3/1/2014		AAA		2,238,093
1,960,000		Lancaster County, SC School District, GO UT, 6.50% (MBIA INS)/(Original Issue Yield: 6.599%), 7/1/2008		AAA		2,055,334
3,650,000		Lancaster County, SC Water & Sewer District, Refunding Revenue Bond, 5.20% (FGIC INS)/(Original Issue Yield: 5.32%), 5/1/2015		AAA		3,425,196
1,030,000		Laurens County, SC Health Care Systems, GO UT, 5.70% (MBIA INS), 1/1/2008		AAA		1,046,727
1,025,000		Laurens County, SC School District No. 055, GO UT, 5.50% (FGIC INS), 3/1/2016		AAA		997,028

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,395,000		Laurens, SC Public Utility, Refunding Revenue Bond, 5.00% (FGIC INS)/(Original Issue Yield: 5.393%), 1/1/2018		AAA		$  1,238,397
655,000		Lexington & Richland Counties, SC School District No. 005, GO UT Bonds, 5.05% (MBIA INS), 3/1/2005		AAA		652,629
4,000,000		Lexington County, SC Health Services District, Inc., Refunding Revenue Bonds, 5.125% (FSA INS)/(Original Issue Yield: 5.50%), 11/1/2021		AAA		3,470,360
1,210,000		Lexington County, SC Health Services District, Inc., Revenue Bond, 6.60% (FSA INS)/(Original Issue Yield: 6.65%), 10/1/2001		AAA		1,237,939
2,500,000		Lexington County, SC Health Services District, Inc., Revenue Bonds, 5.125% (FSA INS)/(Original Issue Yield: 5.53%), 11/1/2026		AAA		2,128,425
370,000		Lexington County, SC School District No. 001, PRF Certificate of Participation, 6.90% (MBIA INS), 9/1/2003		AAA		386,347
2,000,000		Lexington, SC Water & Sewage, Refunding Revenue Bonds, 5.50% (Asset Guaranty LOC)/(Original Issue Yield: 5.68%), 4/1/2029		AAA		1,857,020
3,750,000		North Charleston, SC Sewer District, Refunding Revenue Bond, 6.375% (MBIA INS)/(Original Issue Yield: 6.508%), 7/1/2012		AAA		4,050,450
2,900,000		North Charleston, SC Sewer District, Refunding Revenue Bonds, Series A, 6.00% (MBIA INS)/(Original Issue Yield: 6.593%), 7/1/2018		AAA		2,906,264

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$   500,000		North Charleston, SC Sewer District, Revenue Bonds, Series B, 6.00% (MBIA INS)/(Original Issue Yield: 6.593%), 7/1/2018		AAA		$    510,395
1,420,000		North Charleston, SC, Certificate of Participation, 5.50% (FGIC INS)/(Original Issue Yield: 5.65%), 1/1/2002		AAA		1,432,652
1,670,000		North Charleston, SC, GO UT, 5.50% (Original Issue Yield: 5.60%), 8/1/2006		AA-		1,689,673
1,000,000		North Charleston, SC, GO UT, 5.50%, 8/1/2005		AA-		1,014,490
275,000		Oconee County, SC School District, GO UT Bonds, 5.10% (MBIA INS)/(Original Issue Yield: 5.50%), 9/1/2013		AAA		258,071
1,000,000		Oconee County, SC School District, GO UT, 5.00% (Original Issue Yield: 5.35%), 9/1/2010		AAA		957,730
1,155,000		Oconee County, SC School District, GO UT, 5.10% (Original Issue Yield: 5.40%), 9/1/2011		AAA		1,104,573
1,090,000		Oconee County, SC School District, GO UT, 5.10% (Original Issue Yield: 5.45%), 9/1/2012		AAA		1,032,066
2,500,000		Oconee County, SC, PCR Refunding Bonds, 5.80% (Duke Energy Corp.), 4/1/2014		AA-		2,470,550
590,000		Piedmont Municipal Power Agency, SC, Electricity Refunding Revenue Bonds, 6.85% (FGIC INS), 1/1/2007		AAA		607,977
290,000		Piedmont Municipal Power Agency, SC, Escrowed to Maturity, Refunding Revenue Bond, 6.50% (FGIC INS)/(Original Issue Yield: 6.625%), 1/1/2014		AAA		315,880

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$   970,000		Piedmont Municipal Power Agency, SC, Refunding Revenue Bonds, Series A, 6.375% (FGIC INS)/(Original Issue Yield: 6.45%), 1/1/2006		AAA		$  1,017,152
695,000		Piedmont Municipal Power Agency, SC, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 5.60%), 1/1/2013		AAA		695,278
1,000,000		Piedmont Municipal Power Agency, SC, Refunding Revenue Bonds, 6.50% (FGIC INS)/(Original Issue Yield: 6.88%), 1/1/2011		AAA		1,028,480
500,000		Piedmont Municipal Power Agency, SC, Refunding Revenue Bonds, 6.75% (FGIC INS)/(Original Issue Yield: 6.78%), 1/1/2019		AAA		551,445
1,000,000		Richland County, SC Hospital Facilities, Refunding Revenue Bond, Series B, 5.00% (Richland Memoral Hospital)/(MBIA INS)/(Original Issue Yield: 5.15%), 6/1/2005		AAA		1,015,510
1,000,000		Richland County, SC Hospital Facilities, Refunding Revenue Bond, 4.90% (Richland Memoral Hospital)/(MBIA INS)/(Original Issue Yield: 5.05%), 6/1/2004		AAA		1,012,760
2,435,000		Richland County, SC Hospital Facilities, Revenue Bonds, Series PG-A, 7.10% (Community Provider Pooled Loan Program)/(CGIC INS), 7/1/2005		AAA		2,581,709
3,175,000		Richland County, SC School District No. 001, GO UT, 4.625%, 3/1/2022		AA		2,585,180

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$   650,000		Richland County, SC Solid Waste Disposal Facilities, Revenue Bonds, Series A, 7.45% (Union Camp Corp. Project)/(Original Issue Yield: 7.513%), 4/1/2021		BBB+		$    668,987
1,645,000		Richland County, SC, GO UT, Series C, 5.80% (Original Issue Yield: 5.85%), 3/1/2007		AA		1,674,709
1,000,000		Richland County, SC, Refunding Revenue Bond, Series C, 6.10%, 11/1/2004		BBB+		1,021,810
1,000,000		Richland County, SC, Refunding Revenue Bond, Series C, 6.20%, 11/1/2005		BBB+		1,022,150
1,000,000		Richland County, SC, Refunding Revenue Bond, Series C, 6.30%, 11/1/2006		BBB+		1,023,590
125,000		Rock Hill, SC Housing Development Corp., Multi- Family Refunding Revenue Bonds, 7.50%, 7/1/2010		Aaa		129,064
2,630,000		Rock Hill, SC Utility System, Refunding Revenue Bond, 5.25% (AMBAC INS)/(Original Issue Yield: 5.40%), 1/1/2008		AAA		2,611,222
1,190,000		South Carolina Job Development Authority, Series A, Refunding Bonds, 5.20% (South Carolina Baptist Hospital)/(AMBAC INS)/(Original Issue Yield: 5.30%), 8/1/2006		AAA		1,177,993
2,000,000		South Carolina Job Development Authority, Revenue Bonds, 5.25% (Anderson Area Medical Center, Inc.)/(MBIA INS)/(Original Issue Yield: 5.63%), 2/1/2015		AAA		1,853,960
500,000		South Carolina Resources Authority, Local Government Program, Revenue Bonds, Series A, 7.00%, 6/1/2003		AA		510,805

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,000,000		South Carolina State Educational Assistance Authority, Refunding Revenue Bonds, Series A-3, 5.80% (Original Issue Yield: 5.90%), 9/1/2004		AAA		$  1,016,620
1,000,000		South Carolina State Educational Assistance Authority, Refunding Revenue Bonds, Series B, 5.70% (Original Issue Yield: 5.75%), 9/1/2005		A		1,001,020
3,475,000		South Carolina State Housing Finance & Development Authority, Refunding Revenue Bonds, Series A, 6.15%, 7/1/2008		AA		3,509,820
800,000		South Carolina State Housing Finance & Development Authority, Revenue Bonds, Series A, 7.30% (FHA/VA MTGS GTD), 7/1/2011		AA		826,640
995,000		South Carolina State Housing Finance & Development Authority, Revenue Bonds, Series A-1, 6.45% (FHA/VA MTGS GTD), 7/1/2017		Aa2		1,007,378
335,000		South Carolina State Housing Finance & Development Authority, Revenue Bonds, Series C, 7.70% (FHA/VA MTGS GTD), 7/1/2010		AA		340,604
360,000		South Carolina State Housing Finance & Development Authority, Revenue Bonds, Series C, 7.75% (FHA/VA MTGS GTD), 7/1/2022		AA		367,438
500,000		South Carolina State Ports Authority, Refunding Revenue Bond, 6.50% (AMBAC INS)/(Original Issue Yield: 6.75%), 7/1/2006		AAA		517,900

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$   500,000		South Carolina State Ports Authority, Refunding Revenue Bonds, 6.625% (Original Issue Yield: 6.823%), 7/1/2011		AAA		$    518,550
260,000		South Carolina State Ports Authority, Refunding Revenue Bonds, 6.75% (AMBAC INS)/(Original Issue Yield: 6.90%), 7/1/2021		AAA		269,984
500,000		South Carolina State Ports Authority, Revenue Bonds, 6.50% (AMBAC INS)/(Original Issue Yield: 6.75%), 7/1/2006		AAA		517,900
500,000		South Carolina State Ports Authority, Revenue Bonds, 6.625% (AMBAC INS)/(Original Issue Yield: 6.823%), 7/1/2011		AAA		518,550
265,000		South Carolina State Ports Authority, Revenue Bonds, 6.75% (AMBAC INS)/(Original Issue Yield: 6.90%), 7/1/2021		AAA		275,176
670,000		South Carolina State Public Service Authority, Series B, 6.50% (Original Issue Yield: 7.24%), 7/1/2026		AAA		695,554
2,495,000		South Carolina State Public Service Authority, Series C, Refunding Revenue Bonds, 5.125% (Original Issue Yield: 5.47%), 1/1/2032		AAA		2,116,084
5,000,000		South Carolina State Public Service Authority, Electric, Light, & Power Improvement Refunding Revenue Bonds, 7.10%, 7/1/2021		AAA		5,222,000
2,500,000		South Carolina State Public Service Authority, Refunding Revenue Bond, Series C, 5.00% (AMBAC INS)/(Original Issue Yield: 5.25%), 1/1/2014		AAA		2,303,700

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 2,585,000		South Carolina State Public Service Authority, Refunding Revenue Bond, 5.125% (MBIA INS)/(Original Issue Yield: 5.40%), 1/1/2021		AAA		$  2,268,544
2,250,000		South Carolina State Public Service Authority, Refunding Revenue Bond, 5.50% (AMBAC INS)/(Original Issue Yield: 5.834%), 1/1/2023		AAA		2,086,830
2,500,000		South Carolina State Public Service Authority, Refunding Revenue Bonds, Series A, 5.125% (MBIA INS)/(Original Issue Yield: 5.35%), 1/1/2032		AAA		2,120,325
1,000,000		South Carolina State Public Service Authority, Refunding Revenue Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.15%), 1/1/2014		AAA		921,480
2,500,000		South Carolina State Public Service Authority, Refunding Revenue Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.20%), 1/1/2025		AAA		2,116,900
1,000,000		South Carolina State Public Service Authority, Revenue Bond, Series D, 5.80% (Santee Cooper), 7/1/2000		AA-		1,000,860
2,000,000		South Carolina State Public Service Authority, Revenue Bond, 5.00% (MBIA INS)/(Original Issue Yield: 5.20%), 1/1/2015		AAA		1,828,220
1,950,000		South Carolina State Public Service Authority, Revenue Bonds, Series D, 6.50% (Santee Cooper)/(AMBAC INS)/(Original Issue Yield: 6.553%), 7/1/2014		AAA		2,044,848
2,500,000		South Carolina State Public Service Authority, Refunding Revenue Bonds, 5.00% (FGIC INS)/(Original Issue Yield: 5.30%), 1/1/2018		AAA		2,219,350

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,040,000		South Carolina State, GO UT, Series A, Highway Improvement Bonds, 4.50%, 4/1/2020		AAA		$    850,491
2,540,000		South Carolina State, GO UT, Series A, Highway Improvement Bonds, 4.50% (Original Issue Yield: 4.90%), 2/1/2010		AAA		2,323,643
2,625,000		South Carolina State, GO UT, Series A, Highway Improvement Bonds, 4.50% (Original Issue Yield: 4.95%), 2/1/2011		AAA		2,372,685
800,000		South Carolina State, GO UT, Series A, Highway Improvement Bonds, 4.50%, 4/1/2021		AAA		648,896
1,400,000		South Carolina State, GO UT, Series B, Highway Improvement Bonds, 5.625%, 7/1/2008		AAA		1,439,256
1,210,000		South Carolina State, GO UT Bonds, Series A, State Highway, 4.50%, 4/1/2023		AAA		968,581
3,900,000		South Carolina State, GO UT Bonds, Series A, 4.60% (Original Issue Yield: 4.93%), 5/1/2019		AAA		3,271,281
4,500,000		South Carolina State, GO UT Revenue Bonds, Series A, 5.00% (Original Issue Yield: 5.45%), 3/1/2008		AAA		4,444,245
1,150,000		South Carolina State, GO UT, State Highway, 4.50%, 4/1/2022		AAA		926,543
1,000,000		South Carolina State, GO UT, 5.75% (Original Issue Yield: 4.70%), 8/1/2003		AAA		1,022,370
325,000		South Carolina State, GO UT, 6.00% (Medical University of South Carolina)/(Original Issue Yield: 6.05%), 3/1/2002		AAA		329,953

---

---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$   350,000		South Carolina State, GO UT, 6.00% (Medical University of South Carolina)/(Original Issue Yield: 6.15%), 3/1/2003		AAA		$    357,325
375,000		South Carolina State, GO UT, 6.00% (Medical University of South Carolina)/(Original Issue Yield: 6.25%), 3/1/2004		AAA		383,602
975,000		South Carolina State, Revenue Bond, 4.00% (Columbia Mill Building)/(MBIA INS)/(Original Issue Yield: 5.10%), 2/1/2007		AAA		880,289
1,000,000		South Carolina State, GO UT, Series A, 4.25% (Original Issue Yield: 5.60%), 3/1/2009		AAA		899,510
590,000		South Carolina State, State Capital Improvement, Series B, 5.75%, 8/1/2000		AAA		591,121
10,900,000		South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series A, 4.50% (MBIA INS), 10/1/2016		AAA		9,027,598
1,040,000		South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series A, 5.00% (MBIA INS), 10/1/2007		AAA		1,021,478
10,500,000		South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series A, 5.375% (AMBAC INS)/(Original Issue Yield: 5.50%), 10/1/2024		Aaa		9,608,550
6,000,000		South Carolina Transportation Infrastructure Bank, Revenue Bonds, 4.50% (MBIA INS), 10/1/2014		AAA		5,088,360

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,000,000		Spartanburg County, SC Health Services District, Inc., Refunding Revenue Bond, Series B, 5.125% (MBIA INS)/(Original Issue Yield: 5.55%), 4/15/2022		AAA		$    863,040
2,595,000		Spartanburg County, SC Health Services District, Inc., Refunding Revenue Bond, 5.00% (AMBAC INS)/(Original Issue Yield: 5.60%), 4/15/2011		AAA		2,460,190
3,000,000		Spartanburg County, SC Health Services District, Inc., Refunding Revenue Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 5.70%), 4/15/2015		AAA		2,921,100
1,125,000		Spartanburg County, SC Hospital Facilities, Revenue Bond, Series B, 6.20% (Spartanburg General Hospital System)/(FSA INS), 4/15/2002		AAA		1,147,455
955,000		Spartanburg County, SC Hospital Facilities, Revenue Bond, Series B, 6.30% (Spartanburg General Hospital System)/(FSA INS), 4/15/2003		AAA		994,843
3,000,000		Spartanburg County, SC Hospital Facilities, Refunding Revenue Bonds, 6.55% (Spartanburg General Hospital System)/(FSA INS), 4/15/2010		AAA		3,105,840
450,000		Spartanburg, SC Leased Housing Corp., Refunding Revenue Bonds, 7.50%, 10/1/2011		A2		466,677
1,000,000		Spartanburg, SC Waterworks, Refunding Revenue Bonds, 5.00% (FGIC INS), 6/1/2027		AAA		851,890

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,035,000		Sumter County, SC Hospital Facilities, Refunding Revenue Bond, 6.50% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.80%), 11/15/2002		AAA		$  1,068,855
965,000		Sumter County, SC Hospital Facilities, Refunding Revenue Bond, 6.50% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.80%), 11/15/2002		AAA		998,592
635,000		Sumter County, SC Hospital Facilities, Refunding Revenue Bond, 6.45% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.55%), 11/15/2000		AAA		640,296
920,000		Sumter County, SC Hospital Facilities, Refunding Revenue Bond, 6.45% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.55%), 11/15/2000		AAA		927,148
475,000		Sumter County, SC Hospital Facilities, Refunding Revenue Bond, 6.625% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.98%), 11/15/2004		AAA		503,049
525,000		Sumter County, SC Hospita l Facilities, Refunding Revenue Bond, 6.625% (Tuomey Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 6.98%), 11/15/2004		AAA		553,014

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 2,295,000		University South Carolina, Parking Facilities Refunding Revenue Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.40%), 5/1/2015		AAA		$  2,095,037
1,015,000		University of South Carolina, Revenue Bond, 5.60% (AMBAC INS)/(Original Issue Yield: 5.70%), 6/1/2017		Aaa		987,372
3,465,000		University of South Carolina, Revenue Bonds, 5.70% (MBIA INS), 6/1/2020		AAA		3,349,165
990,000		Western Carolina Regional Sewer Authority, SC, Partially Prerefunded Revenue Bond, 7.00% (AMBAC INS)/(Original Issue Yield: 7.125%), 3/1/2002		AAA		1,011,523
1,000,000		Western Carolina Regional Sewer Authority, SC, Refunding Revenue Bond, 5.10% (FGIC INS)/(Original Issue Yield: 5.20%), 3/1/2004		AAA		999,080
2,090,000		Western Carolina Regional Sewer Authority, SC, Refunding Revenue Bond, 5.40% (FGIC INS)/(Original Issue Yield: 5.465%), 3/1/2007		AAA		2,098,924
2,300,000		Western Carolina Regional Sewer Authority, SC, Sewer System Revenue Bonds, 5.50% (FGIC INS)/(Original Issue Yield: 5.627%), 3/1/2010		AAA		2,305,014
1,830,000		York County, SC PCR, Refunding Revenue Bond, Series A, 7.40%, 1/1/2010		BBB		1,872,584

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		South Carolina—continued
$ 1,000,000		York County, SC, GO UT Refunding Bonds, 4.90% (AMBAC INS)/(Original Issue Yield: 5.10%), 6/1/2010		AAA		$    943,370
		Total				320,665,885
		Puerto Rico—1.1%
35,000		Puerto Rico Commonwealth Infrastructure Financing Authority, Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		30,316
1,115,000		Puerto Rico Electric Power Authority, Revenue Bonds, Series DD, 5.00% (MBIA INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		965,791
150,000		Puerto Rico Highway and Transportation Authority, Refunding Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.16%), 7/1/2028		AAA		129,927

Principal Amount or Shares				Credit Rating*		Value
Long-Term Municipals—continued
		Puerto Rico—continued
$ 2,800,000		Puerto Rico Public Building Authority, Series B, 5.25% (FSA INS)/(Original Issue Yield: 5.65%), 7/1/2021		AAA		$  2,583,504
		Total				3,709,538
		Total Long-Term Municipals (identified cost $331,428,776)				324,375,423
Open-End Investment Companies—0.1%
36,261		AIM Global Management Short Term Investments				36,261
4,562		Dreyfus Tax Exempt Money Market Fund				4,562
145,340		Federated Tax-Free Obligations Fund				145,340
27,365		Fidelity Tax Exempt Money Market Fund				27,365
		Total Open-End Investment Companies (at cost)				213,528
		Total Investments (identified cost $331,642,304)				$324,588,951

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—97.0%
		Virginia—95.9%
$  500,000		Albemarle County, VA, Refunding Revenue Bonds, 5.50% (Original Issue Yield: 5.634%), 8/1/2006		A+		$          504,865
250,000		Alexandria, VA, GO UT, 5.65% (Original Issue Yield: 5.70%), 12/1/2001		AAA		253,167
850,000		Arlington County, VA, GO UT Refunding Bonds, 6.00%, 6/1/2004		AAA		880,005
1,255,000		Arlington County, VA, Refunding Bonds, 4.70% (Original Issue Yield: 4.75%), 6/1/2006		AAA		1,219,170
1,070,000		Arlington, VA IDA, Series A, 6.55% (Original Issue Yield: 6.55%), 9/1/2003		Aaa		1,112,843
1,100,000		Arlington, VA IDA, Refunding Revenue Bonds, 5.30% (Arlington Hospital)/(United States Treasury PRF)/(Original Issue Yield: 5.47%), 9/1/2003		A1		973,852
200,000		Augusta County, VA IDA, Refunding Revenue Bond, 6.30% (AMBAC INS)/ (Original Issue Yield: 6.40%), 9/1/2002		AAA		207,482
2,000,000		Augusta County, VA IDA, Revenue Bonds, 6.625% (Augusta Hospital Corp.)/(AMBAC INS)/(Original Issue Yield: 6.817%), 9/1/2012		AAA		2,082,620
1,700,000		Big Stone Gap, VA Redevelopment & Housing Authority, 5.50% (Wallens Ridge Development Project)/ (Original Issue Yield: 5.75%), 9/1/2015		AA+		1,649,510

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$  1,000,000		Chesapeake Bay Bridge & Tunnel District, VA, Refunding Revenue Bonds, 5.50% (MBIA INS)/(Original Issue Yield: 4.86%), 7/1/2025		AAA		$          951,050
1,750,000		Chesapeake, VA, GO UT, 5.40% (Original Issue Yield: 5.50%), 5/1/2008		AA		1,766,170
1,485,000		Chesterfield County, VA, 4.50% (Original Issue Yield: 4.75%), 1/1/2019		AAA		1,229,431
1,000,000		Chesterfield County, VA, GO UT, 5.60% (Original Issue Yield: 5.65%), 7/15/2006		AAA		1,026,710
250,000		Culpeper, VA IDA, Refunding Revenue Bond, 6.40% (FHA INS), 1/15/2003		AA-		251,585
600,000		Danville, VA, GO UT, 6.40% (Original Issue Yield: 6.45%), 5/1/2009		A3		626,418
500,000		Danville, VA, GO UT, 6.40% (Original Issue Yield: 6.50%), 5/1/2010		A3		522,015
1,000,000		Fairfax County, VA IDA, Refunding Revenue Bonds, 5.00% (Inova Health System)/(AMBAC INS)/ (Original Issue Yield: 5.30%), 8/15/2013		AAA		936,900
400,000		Fairfax County, VA IDA, Refunding Revenue Bonds, 5.00% (Inova Health System)/(Original Issue Yield: 5.10%), 8/15/2008		AA		379,932
1,250,000		Fairfax County, VA IDA, Refunding Revenue Bonds, 5.25% (Inova Health System)/(FSA INS)/(Original Issue Yield: 5.35%), 8/15/2019		AAA		1,152,537

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$  1,000,000		Fairfax County, VA IDA, Refunding Revenue Bonds, 5.25% (Inova Health System)/(Original Issue Yield: 5.35%), 8/15/2019		AA		$          917,740
2,735,000		Fairfax County, VA Water Authority, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.281%), 4/1/2022		AAA		2,895,353
1,265,000		Fairfax County, VA Water Authority, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.281%), 4/1/2022		AA		1,270,465
500,000		Fairfax County, VA Water Authority, Revenue Bonds, 5.00% (Original Issue Yield: 5.375%), 4/1/2016		AA		455,265
3,800,000		Fairfax County, VA Water Authority, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.22%), 4/1/2021		AA		3,353,234
1,000,000		Fairfax County, VA Water Authority, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.30%), 4/1/2029		AA		852,070
570,000		Fairfax County, VA, Series B, GO UT, 6.00% (Original Issue Yield: 6.10%), 5/1/2007		AAA		580,249
2,000,000		Fairfax County, VA, GO UT Refunding Bonds, Series A, 4.50% (Original Issue Yield: 4.68%), 6/1/2013		AAA		1,754,080
500,000		Fairfax County, VA, GO UT, Series A, 5.00% (Original Issue Yield: 5.07%), 6/1/2018		AAA		450,255
850,000		Fairfax County, VA, GO UT, 4.50% (Original Issue Yield: 4.426%), 6/1/2010		AAA		774,579
5,000,000		Fairfax County, VA, GO UT, 4.50% (Original Issue Yield: 4.73%), 6/1/2014		AAA		4,324,150

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      500,000		Hampton Roads, VA Sanitation District, Refunding Revenue Bond, 4.30% (Original Issue Yield: 4.40%), 10/1/2000		AA		$          499,490
1,000,000		Hampton, VA, GO UT, 5.90% (Original Issue Yield: 6.00%), 1/15/2007		AA		1,046,460
500,000		Hanover County, VA IDA, Revenue Bond, 4.50% (Original Issue Yield: 4.60%), 8/15/2000		AAA		499,760
500,000		Hanover County, VA IDA, Revenue Bond, 5.375% (Original Issue Yield: 5.55%), 5/1/2004		Aa		500,500
250,000		Hanover County, VA IDA, Revenue Bond, 6.00% (MBIA INS)/(Original Issue Yield: 6.10%), 10/1/2001		AAA		253,682
1,000,000		Hanover County, VA IDA, Revenue Bonds, 6.375% (Memorial Regional Medical Center)/(MBIA INS), 8/15/2018		AAA		1,056,830
250,000		Harrisonburg, VA Redevelopment & Housing Authority, Refunding Revenue Bond, 6.60% (Original Issue Yield: 6.70%), 9/1/2002		A2		260,045
2,000,000		Henrico County, VA, GO UT Refunding Bonds, 5.30% (Original Issue Yield: 5.45%), 1/15/2010		AAA		1,995,260
400,000		Henrico County, VA, Refunding Revenue Bonds, 6.25% (Original Issue Yield: 6.65%), 5/1/2013		AA-		409,244
600,000		Henrico County, VA, Refunding Revenue Bond, 6.25% (Original Issue Yield: 6.25%), 5/1/2013		AA-		609,732

---

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      250,000		Henry County, VA Public Service Authority, Refunding Revenue Bond, 6.00% (FGIC INS)/(Original Issue Yield: 6.05%), 11/15/2003		AAA		$          254,720
1,000,000		James City County, VA, GO UT, 5.20% (State Aid Withholding GTD)/(FGIC INS)/(Original Issue Yield: 5.35%), 12/15/2010		AAA		988,570
250,000		Loudoun County, VA Sanitation Authority, Refunding Revenue Bond, 6.00% (FGIC INS)/(Original Issue Yield: 6.05%), 1/1/2003		AAA		255,702
1,000,000		Loudoun County, VA Sanitation Authority, Revenue Bonds, 4.75% (MBIA INS), 1/1/2021		AAA		835,180
1,000,000		Loudoun County, VA Sanitation Authority, Revenue Bonds, 4.75% (MBIA INS)/ (Original Issue Yield: 5.04%), 1/1/2030		AAA		806,210
1,000,000		Loudoun County, VA, Series C, 5.25% (Original Issue Yield: 5.33%), 12/1/2014		AA		959,330
1,000,000		Manassa, VA, GO UT, 5.00% (Original Issue Yield: 5.05%), 1/1/2012		AA-		947,280
50,000		Metropolitan Washington, DC Airport Authority, Refunding Revenue Bond, 4.90% (MBIA INS)/(Original Issue Yield: 5.00%), 10/1/2005		AAA		49,349
1,000,000		Newport News, VA, GO UT, Series A, 5.20% (Original Issue Yield: 5.35%), 1/15/2018		AA		921,500
1,000,000		Newport News, VA, GO UT, Series A, 6.00% (Original Issue Yield: 6.05%), 6/1/2006		AA		1,028,410
1,000,000		Newport News, VA, GO UT, Series A, 6.00% (Original Issue Yield: 6.10%), 6/1/2007		AA		1,030,670

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      500,000		Newport News, VA, GO UT Bonds, Series A, 5.80% (Original Issue Yield: 5.85%), 6/1/2004		AA		$          510,055
900,000		Norfolk, VA IDA, Refunding Revenue Bonds, 5.50% (Sentara Hospitals), 11/1/2017		AA		853,128
1,000,000		Norfolk, VA IDA, Refunding Revenue Bonds, 6.50% (Daughter’s Charity-DePaul Hospital), 12/1/2007		Aa2		1,052,810
2,500,000		Norfolk, VA IDA, Refunding Revenue Bonds, 6.50% (Sentara Hospitals), 11/1/2013		AA		2,613,575
100,000		Norfolk, VA IDA, Revenue Bonds, Series A, 6.75% (Children’s Hospital King’s Group), 6/1/2001				102,000
250,000		Norfolk, VA IDA, Revenue Bonds, 6.80% (Sentara Hospitals)/(Original Issue Yield: 6.85%), 11/1/2002		AA		260,012
1,000,000		Norfolk, VA, GO UT Refunding Bonds, Series A, 6.00% (Original Issue Yield: 6.20%), 2/1/2008		AAA		1,028,360
125,000		Norfolk, VA, GO UT Refunding Bonds, 5.00% (FGIC INS), 7/1/2009		AAA		122,010
500,000		Norfolk, VA, GO UT Refunding Bonds, 5.00% (FGIC INS)/(Original Issue Yield: 5.05%), 7/1/2015		AAA		461,305
1,000,000		Norfolk, VA, GO UT Refunding Bonds, 5.25% (Original Issue Yield: 5.35%), 2/1/2006		AA		1,001,360
2,000,000		Norfolk, VA, GO UT Refunding Bonds, 5.50% (Original Issue Yield: 5.55%), 2/1/2008		AA		2,014,140

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---

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      500,000		Peumansend Creek Regional Jail Authority, VA, Revenue Bonds, 5.00% (MBIA INS)/ (Original Issue Yield: 5.05%), 6/1/2006		AAA		$          494,775
250,000		Portsmouth, VA, GO UT Refunding Bonds, 6.25%, 11/1/2002		AA-		256,817
2,000,000		Prince William County, VA IDA, Refunding Revenue Bonds, 6.85% (Original Issue Yield: 6.938%), 10/1/2025		Aaa		2,192,140
500,000		Prince William County, VA, Certificate of Participation Refunding Bonds, 5.20% (MBIA INS)/(Original Issue Yield: 5.35%), 12/1/2005		AAA		498,700
500,000		Prince William County, VA, GO UT Bonds, Series C, 5.00% (Original Issue Yield: 5.10%), 8/1/2006		AA		496,435
1,000,000		Prince William County, VA, GO UT Refunding Bonds, 5.90% (Original Issue Yield: 6.00%), 12/1/2003		AA		1,026,020
1,980,000		Richmond, VA Metropolitan Authority Expressway, Refunding Revenue Bonds, 5.25% (FGIC INS), 7/15/2022		AAA		1,809,463
1,000,000		Richmond, VA Public Utility, Refunding Revenue Bonds, 5.125% (FGIC INS)/ (Original Issue Yield: 5.31%), 1/15/2028		AAA		872,290
1,500,000		Richmond, VA, GO UT Bonds, 5.50% (State Aid Withholding INS)/(Original Issue Yield: 5.72%), 7/15/2023		AA		1,405,860
1,000,000		Richmond, VA, GO UT Refunding Bonds, Series B, 5.00% (FGIC INS)/(Original Issue Yield: 5.259%), 1/15/2021		AAA		875,550

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$  1,000,000		Rivanna Water & Sewer Authority, Refunding Revenue Bonds, 4.80% (Original Issue Yield: 5.10%), 10/1/2015		A+		$          878,790
500,000		Roanoke County, VA Water System, Refunding Revenue Bonds, 5.00% (FGIC INS), 7/1/2021		AAA		434,945
250,000		Roanoke, VA IDA, Refunding Bonds, Series B, 5.80% (Roanoke Memorial Hospital)/(Original Issue Yield: 5.90%), 7/1/2005		AA-		252,923
250,000		Roanoke, VA, GO UT Bonds, Series B, 6.00%, 8/1/2003		AA		254,713
2,225,000		Roanoke, VA, GO UT Bonds, 5.25% (Original Issue Yield: 5.30%), 8/1/2024		AA		1,991,197
1,000,000		Roanoke, VA, GO UT Bonds, 6.20%, 8/1/2005		AA		1,025,830
1,250,000		Roanoke, VA, GO UT Bonds, 6.30% (Original Issue Yield: 6.35%), 8/1/2007		AA		1,289,600
500,000		Spotsylvania County, VA, GO UT Bonds, 5.40% (Original Issue Yield: 5.45%), 7/15/2004		A+		505,205
1,000,000		Spotsylvania County, VA, GO UT Bonds, 5.50% (Original Issue Yield: 5.55%), 7/15/2005		A+		1,027,590
1,000,000		Spotsylvania County, VA, GO UT Bonds, 5.70% (Original Issue Yield: 5.75%), 7/15/2007		A+		1,031,570
1,500,000		University of Virginia, Refunding Revenue Bonds, Series A, 5.20% (Original Issue Yield: 5.45%), 6/1/2015		AA+		1,418,265
3,010,000		Upper Occoquan Sewage Authority, VA, Series A, 4.75% (MBIA INS)/(Original Issue Yield: 5.30%), 7/1/2029		AAA		2,430,244

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      250,000		Upper Occoquan Sewage Authority, VA, Refunding Bonds, 5.45% (AMBAC INS)/ (Original Issue Yield: 5.55%), 7/1/2003		AAA		$          253,060
250,000		Virginia Beach, VA IDA, Hospital Facilities Revenue Bonds, 6.30% (Sentara Bayside Hospital)/(Sentara Bayside Hospital LOC)/(Original Issue Yield: 6.35%), 11/1/2004		AA		259,733
500,000		Virginia Beach, VA IDA, Refunding Bonds, 5.00% (AMBAC INS)/(Original Issue Yield: 5.15%), 2/15/2007		AAA		491,725
250,000		Virginia Beach, VA, Certificate of Participation Bonds, 6.90% (FGIC INS)/(Original Issue Yield: 6.95%), 9/1/2000		AAA		251,440
1,250,000		Virginia Beach, VA, GO UT Bonds, Series C, 6.10% (Original Issue Yield: 6.15%), 8/1/2002		AA		1,279,525
1,000,000		Virginia Beach, VA, GO UT Bonds, 5.70%, 7/15/2006		AA		1,032,390
250,000		Virginia Beach, VA, GO UT Bonds, 5.80%, 2/1/2003		AA		254,885
1,000,000		Virginia Beach, VA, GO UT Bonds, 5.80%, 7/15/2007		AA		1,034,380
1,000,000		Virginia Beach, VA, GO UT Refunding Bonds, 6.20% (State Aid Withholding INS)/(Original Issue Yield: 6.25%), 9/1/2014		AA		1,057,020
860,000		Virginia College Building Authority, Series A, 5.00% (Original Issue Yield: 5.275%), 9/1/2016		AA		781,826
1,000,000		Virginia College Building Authority, Refunding Revenue Bonds, 5.80% (Washington & Lee University Project), 1/1/2024		AAA		1,040,810

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      815,000		Virginia College Building Authority, Revenue Bonds, Series A, 4.625%, 9/1/2014		AA		$          710,721
500,000		Virginia College Building Authority, Revenue Bonds, 5.00%, 8/1/2008		AA+		489,960
1,500,000		Virginia Polytechnical Institute & State University, Refunding Revenue Bonds, Series C, 5.50% (Original Issue Yield: 5.70%), 6/1/2016		AA		1,452,735
500,000		Virginia State Housing Development Authority, Refunding Revenue Bonds, 6.10%, 1/1/2007		AA+		501,040
500,000		Virginia State Housing Development Authority, Refunding Revenue Bonds, 6.20%, 1/1/2008		AA+		511,610
500,000		Virginia State Housing Development Authority, Refunding Revenue Bonds, 6.30%, 1/1/2009		AA+		512,225
400,000		Virginia State Housing Development Authority, Refunding Revenue Bonds, 6.45%, 5/1/2001		AA+		402,828
870,000		Virginia State Housing Development Authority, Revenue Bonds, Series A, 6.40%, 7/1/2017		AA+		881,902
1,000,000		Virginia State Housing Development Authority, Revenue Bonds, Series B, 6.35%, 1/1/2015		AA+		1,013,720
500,000		Virginia State Housing Development Authority, Revenue Bonds, Series C, 5.45%, 7/1/2002		AA+		502,455
560,000		Virginia State Housing Development Authority, Revenue Bonds, Series F, 6.40%, 7/1/2017		AA+		564,816
2,000,000		Virginia State Public Building Authority, Series A, Refunding Bonds, 5.40%, 8/1/2012		AA+		1,966,100

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      515,000		Virginia State Public Building Authority, Series B, 5.50% (Original Issue Yield: 5.63%), 8/1/2014		AA+		$          505,771
300,000		Virginia State Public Building Authority, Refunding Bonds, Series A, 5.00%, 8/1/2004		AA+		298,920
3,000,000		Virginia State Public Building Authority, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 4.64%), 8/1/2009		AA+		2,904,420
500,000		Virginia State Public Building Authority, Revenue Bonds, Series C, 5.20% (Original Issue Yield: 5.30%), 8/1/2003		AA+		501,770
2,550,000		Virginia State Public School Authority, Series B, 5.25% (Original Issue Yield: 5.58%), 1/1/2010		AA		2,526,234
2,000,000		Virginia State Public School Authority, 5.13% (Original Issue Yield: 5.28%), 8/1/2016				1,850,740
1,405,000		Virginia State Public School Authority, GO, Series B, 5.50%, 8/1/2011		AA+		1,406,630
1,000,000		Virginia State Public School Authority, Refunding Revenue Bond, Series I, 5.25%, 8/1/2010		AA+		990,230
2,000,000		Virginia State Public School Authority, Refunding Revenue Bonds, 5.00% (Original Issue Yield: 5.10%), 8/1/2012		AA+		1,887,420
250,000		Virginia State Public School Authority, Revenue Bonds, Series A, 6.30% (Original Issue Yield: 6.40%), 8/1/2001		AA		254,370
1,000,000		Virginia State Public School Authority, Revenue Refunding Bonds, 6.25% (Original Issue Yield: 6.30%), 1/1/2004		AA		1,031,570

Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$      300,000		Virginia State Public School Authority, School Financing Revenue Bonds, Series B, 5.75% (State Aid Withholding COL), 1/1/2008		AA		$          305,475
250,000		Virginia State Resource Authority Solid Waste Disposal Systems, Revenue Bonds, Series B, 5.20%, 5/1/2003		AA		250,960
225,000		Virginia State Resources Authority Water and Sewer System, Refunding Bonds, 5.65% (Original Issue Yield: 5.75%), 10/1/2004		AA		229,608
1,000,000		Virginia State Resources Authority Water and Sewer System, Refunding Revenue Bonds, 5.25% (Appomattox River Water Authority)/ (Original Issue Yield: 5.70%), 10/1/2013		AA		957,840
1,000,000		Virginia State Resources Authority Water and Sewer System, Revenue Bonds, Series A, 5.60% (Original Issue Yield: 5.75%), 10/1/2025		AA		1,020,690
690,000		Virginia State Resources Authority Water and Sewer System, Revenue Bonds, 5.50% (Original Issue Yield: 5.80%), 10/1/2022		AA		651,436
500,000		Virginia State Transportation Board, Revenue Bonds, 5.80%, 5/15/2001		AA		505,165
2,000,000		Virginia State University- Virginia Commonwealth, Revenue Bonds, Series A, 5.75% (Original Issue Yield: 5.827%), 5/1/2021		AA-		1,944,220
250,000		Virginia State, GO UT Bonds, Series A, 5.90% (Original Issue Yield: 5.95%), 6/1/2000		AAA		250,000
250,000		Virginia State, GO UT Bonds, Series C, 5.80%, 6/1/2004		AAA		253,453

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Principal Amount				Credit Rating*		Value
Long-Term Municipals—continued
		Virginia—continued
$  1,000,000		Virginia State, GO UT Bonds, 5.50% (Original Issue Yield: 5.55%), 6/1/2006		AAA		$      1,016,360
1,000,000		Virginia State, GO UT Bonds, 6.00%, 6/1/2006		AAA		1,020,110
750,000		Washington County, VA IDA, Refunding Revenue Bonds, 6.00% (Original Issue Yield: 6.16%), 7/1/2014		A2		785,445
		Total				123,645,046
		Puerto Rico—1.1%
1,595,000		Puerto Rico Commonwealth Infrastructure Financing Authority, Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		1,381,557
40,000		Puerto Rico Electric Power Authority, Revenue Bonds, Series DD, 5.00% (MBIA INS)/(Original Issue Yield: 5.28%), 7/1/2028		AAA		34,647
45,000		Puerto Rico Highway and Transportation Authority, Refunding Revenue Bonds, Series A, 5.00% (AMBAC INS)/(Original Issue Yield: 5.16%), 7/1/2028		AAA		38,978
		Total				1,455,182
		Total Long-Term Municipals (identified cost $127,558,673)				125,100,228

Shares				Credit Rating*		Value
Open-End Investment Companies—1.6%
599		AIM Global Management Short Term Investments				$                599
1,137		Dreyfus Tax Exempt Money Market Fund				1,137
266,979		Federated Tax-Free Obligations Fund				266,979
1,780,500		Fidelity Tax Exempt Money Market Fund				1,780,500
		Total Open-End Investment Companies (at cost)				2,049,215
		Total Investments (identified cost $129,607,888)				$  127,149,443

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*	Please refer to the Appendix of the Statement of Additional Information for an explanation of the credit ratings. Current credit ratings are unaudited.

(1)	Non-income producing.

(2)	Represents securities held as collateral within a margin account, used to ensure the fund is able to satisfy the obligations of its outstanding long futures contracts.

(3)	The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio.

(4)

Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund’s Board of Trustees. At May 31, 2000, the Emerging Markets Fund, Intermediate Fixed Income Fund, and Short Term Fixed Income Fund held restricted securities amounting to $5,082,701, $991,251, and $1,078,957 respectively, which represents 2.4%, 0.8%, and 2.3% respectively, of net assets.

ADR—American Depository Receipt AID-Agency of International Development AMBAC— American Municipal Bond Assurance Corporation BANS—Bond Anticipation Notes CGIC—Capital Guaranty Insurance Corporation COL—Collateralized FGIC—Financial Guaranty Insurance Corporation FHA—Federal Housing Administration FNMA—Federal National Mortgage Association FSA—Financial Security Assurance GDR—Global Depository Receipt GO—General Obligation GTD—Guaranteed HFA—Housing Finance Authority IDA—Industrial Development Authority

IFA—Industrial Finance Authority INS—Insured LOC—Letter of Credit MBIA—Municipal Bond Investors Assurance MTGS—Mortgages MTN—Medium Term Note PCFA—Pollution Control Finance Authority PCR—Pollution Control Revenue PRF—Prerefunded SFM—Single Family Mortgage UT—Unlimited Tax VA—Veterans Administration

Fund		Cost of Investments for Federal Tax Purposes		Net Unrealized Appreciation/ (Depreciation) for Federal Tax Purposes			Gross Unrealized Appreciation for Federal Tax Purposes		Gross Unrealized Depreciation for Federal Tax Purposes		Total Net Assets**
Equity Fund		$316,138,457		$111,495,842			$120,158,184		$8,662,342		$407,759,160
Quantitative Equity Fund		362,313,404		357,251,320			364,567,012		7,315,692		719,549,039
Growth and Income Fund		168,856,951		145,959,027			152,811,425		6,852,398		314,973,185
Equity Index Fund		261,339,135		274,739,444			289,526,878		14,787,434		536,319,239
Special Values Fund		182,381,756		4,958,302			26,077,284		21,118,982		187,607,513
Emerging Markets Fund		180,573,864		27,812,142			49,802,511		21,990,369		208,426,133
Personal Equity Fund		255,808,590		184,612,215			194,625,438		10,013,223		440,426,954
Balanced Fund		592,673,862		123,809,210			143,453,301		19,644,091		705,018,908
Fixed Income Fund		602,616,591		(26,484,312	)		2,135,704		28,620,016		551,357,373
Intermediate Fixed Income Fund		137,570,550		(4,968,030	)		294,711		5,262,741		132,137,343
Short-Term Fixed Income Fund		47,092,017		(1,177,924	)		—		1,177,924		46,476,808
Georgia Municipal Bond Fund		106,372,362		(2,275,096	)		928,278		3,203,374		105,560,145
North Carolina Municipal Bond Fund		425,866,162		(10,369,830	)		3,563,908		13,933,738		416,565,163
South Carolina Municipal Bond Fund		331,642,304		(7,053,353	)		3,489,579		10,542,932		329,152,904
Virginia Municipal Bond Fund		129,607,888		(2,458,445	)		1,335,494		3,793,939		128,898,931

**	The categories of investments are shown as a percentage of net assets at May 31, 2000.

Fund		Percentage of total market value subject to alternative minimum tax
Georgia Municipal Bond Fund		0.5	%
North Carolina Municipal Bond Fund		0.2	%
South Carolina Municipal Bond Fund		1.9	%

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		Wachovia Equity Fund			Wachovia Quantitative Equity Fund			Wachovia Growth & Income Fund			Wachovia Equity Index Fund
Assets:
Investments in securities, at value		$384,711,014			$695,154,891			$306,095,753			$511,706,032
Investments in repurchase agreements		42,923,285			24,409,833			8,720,225			24,372,547
Cash		38,061			22,391			—			28,753
Income receivable		507,972			853,193			390,185			743,488
Receivable for investments sold		—			82,954			—			—
Receivable for shares sold		—			—			69,904			—
Total assets		428,180,332			720,523,262			315,276,067			536,850,820
Liabilities:
Payable for investments purchased		19,904,728			—						—
Payable for shares redeemed		85,069			286,418			16,083			96,784
Payable for daily variation margin		81,250			92,500			38,750			97,500
Payable to adviser		240,836			425,403			186,961			136,007
Accrued expenses		109,289			169,902			61,088			201,290
Total liabilities		20,421,172			974,223			302,882			531,851
Net Assets Consist of:
Paid in capital		282,880,811			332,247,068			150,344,699			259,930,231
Net unrealized appreciation of investments and futures contracts		111,575,022			357,193,154			146,260,129			274,848,521
Accumulated net realized gain on investments and futures contracts		12,756,790			29,761,150			18,260,196			845,191
Undistributed net investment income		546,537			347,667			108,161			695,296
Total Net Assets		$407,759,160			$719,549,039			$314,973,185			$536,319,239
Net Assets:
Class A Shares		$127,092,241			$  92,904,899			$  91,557,872			$189,715,597
Class B Shares		$  10,896,651			$  25,220,862			—			—
Class Y Shares		$269,770,268			$601,423,278			$223,415,313			$346,603,642
Shares Outstanding
Class A Shares		6,886,021			4,202,832			4,319,476			7,244,967
Class B Shares		595,196			1,149,502			—			—
Class Y Shares		14,611,851			27,164,478			10,530,308			13,217,747
Total Shares Outstanding		22,093,068			32,516,812			14,849,784			20,462,714
Net Asset Value Per Share
Class A Shares		$            18.46			$            22.11			$            21.20			$            26.19
Class B Shares		$            18.31			$            21.94			—			—
Class Y Shares		$            18.46			$            22.14			$            21.22			$            26.22
Offering Price Per Share*
Class A Shares		$            19.59	**		$            23.46	**		$            22.49	**		$            27.79	**
Class B Shares		$            18.31			$            21.94			—			—
Class Y Shares		$            18.46			$            22.14			$            21.22			$            26.22
Redemption Proceeds Per Share*
Class A Shares		$            18.46			$            22.11			$            21.20			$            26.19
Class B Shares		$            17.39	***		$            20.84	***		—			—
Class Y Shares		$            18.46			$            22.14			$            21.22			$            26.22
Investments, at identified cost		$316,138,457			$362,313,404			$168,856,951			$261,339,135
Investments, at tax cost		$316,138,457			$362,313,404			$168,856,951			$261,339,135

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		Wachovia Special Values Fund			Wachovia Emerging Markets Fund			Wachovia Personal Equity Fund			Wachovia Balanced Fund
Assets:
Investments in securities, at value		$168,058,897			$197,109,877			$414,192,111			$659,148,185
Investments in repurchase agreements		19,281,161			11,276,129			26,228,694			57,334,887
Cash		—			—			906			55,865
Cash denominated in foreign currencies		—			318,983			—			—
Income receivable		362,823			156,695			537,757			3,541,587
Receivable for investments sold		567,243			697,363			—			237,897
Receivable for shares sold		31,609			847,070			—			348,771
Total assets		188,301,733			210,406,117			440,959,468			720,667,192
Liabilities:
Payable for investments purchased		317,239			930,638			—			14,452,222
Payable for shares redeemed		63,881			944			133,397			267,986
Payable for capital gains taxes withheld		—			690,747			—			—
Payable for daily variation margin		95,000			—			60,000			263,078
Payable to adviser		126,970			175,720			260,811			389,210
Accrued expenses		91,130			188,557			78,306			275,788
Total liabilities		694,220			1,986,606			532,514			15,648,284
Net Assets consist of:
Paid in capital		172,648,458			196,113,949			243,871,796			551,103,042
Net unrealized appreciation of investments, futures contracts, and translation of assets and liabilities in foreign currency		3,128,357			27,805,873			184,667,481			122,697,620
Accumulated net realized gain (loss) on investments, futures, and foreign currency transactions		10,859,040			(15,273,188	)		11,524,508			28,170,869
Undistributed net investment income (Distributions in excess of net investment income)		971,658			(227,123	)		363,169			3,047,377
Total Net Assets		$187,607,513			$208,419,511			$440,426,954			$705,018,908
Net Assets:
Class A Shares		$  64,684,610			$  20,489,270			$        117,114			$209,422,271
Class B Shares		$        395,237			—			—			$  22,504,527
Class Y Shares		$122,527,666			$187,930,241			$440,309,840			$473,092,110
Shares Outstanding
Class A Shares		4,025,542			1,704,528			10,876			14,832,693
Class B Shares		24,699			—			—			1,598,821
Class Y Shares		7,616,506			15,599,858			40,849,970			33,466,513
Total Shares Outstanding		11,666,747			17,304,386			40,860,846			49,898,027
Net Asset Value Per Share
Class A Shares		$            16.07			$            12.02			$            10.77			$            14.12
Class B Shares		$            16.00			—			—			$            14.08
Class Y Shares		$            16.09			$            12.05			$            10.78			$            14.14
Offering Price Per Share*
Class A Shares		$            17.05	**		$            12.75	**		$            11.43	**		$            14.98	**
Class B Shares		$            16.00			—			—			$            14.08
Class Y Shares		$            16.09			$            12.05			$            10.78			$            14.14
Redemption Proceeds Per Share*
Class A Shares		$            16.07			$            12.02			$            10.77			$            14.12
Class B Shares		$            15.20	***		—			—			$            13.38	***
Class Y Shares		$            16.09			$            12.05			$            10.78			$            14.14
Investments, at identified cost		$182,381,756			$180,573,864			$255,808,590			$592,673,862
Investments, at tax cost		$182,381,756			$180,573,864			$255,808,590			$592,673,862

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		Wachovia Fixed Income Fund			Wachovia Intermediate Fixed Income Fund			Wachovia Short Term Fixed Income Fund			Wachovia Georgia Municipal Bond Fund			Wachovia North Carolina Municipal Bond Fund			Wachovia South Carolina Municipal Bond Fund			Wachovia Virginia Municipal Bond Fund
Assets:
Investments in securities, at value		$568,780,705			$129,920,939			$42,334,677			$104,097,266			$415,496,332			$324,588,951			$127,149,443
Investments in repurchase agreements		7,351,574			2,681,581			3,579,416			—			—			—			—
Cash		1,816,989			—			3,732			4,365			6,680			6,958			5,643
Income receivable		5,178,355			1,525,978			575,691			1,947,877			6,423,734			5,766,289			2,334,071
Receivable for investments sold		—			—			—			—			—			501,807			—
Receivable for shares sold		181,904			9,135			32,021			8,819			—			—			21,201
Total assets		583,309,527			134,137,633			46,525,537			106,058,327			421,926,746			330,864,005			129,510,358
Liabilities:
Payable for investments purchased		31,278,231			1,888,805			—			—			994,873			—			—
Payable for shares redeemed		16,652			—			—			—			2,512,198			131,135			—
Income distribution payable		—			—			—			430,493			1,618,127			1,379,170			530,467
Payable for daily variation margin		262,109			23,563			—			—			—			—			—
Payable to adviser		279,841			66,932			15,095			37,178			171,308			126,997			47,624
Accrued expenses		115,321			20,990			33,634			30,511			65,077			73,799			33,336
Total liabilities		31,952,154			2,000,290			48,729			498,182			5,361,583			1,711,101			611,427
Net Assets Consist of:
Paid in capital		581,664,702			137,855,732			50,753,316			109,708,750			430,086,794			336,751,230			133,463,660
Net unrealized depreciation of investments, futures contracts, and translation of assets and liabilities in foreign currency		(26,164,613	)		(4,981,883	)		(1,177,924	)		(2,275,096	)		(10,369,830	)		(7,053,353	)		(2,458,445	)
Accumulated net realized loss on investments, futures, and foreign currency transactions		(4,918,331	)		(757,566	)		(3,103,968	)		(1,874,403	)		(3,230,015	)		(608,804	)		(2,107,837	)
Undistributed net investment income		775,615			21,060			5,384			894			78,214			63,831			1,553
Total Net Assets		$551,357,373			$132,137,343			$46,476,808			$105,560,145			$416,565,163			$329,152,904			$128,898,931
Net Assets
Class A Shares		$  65,974,477			$    2,800,178			$  8,997,969			$    4,405,280			$    7,483,820			$  53,646,467			$    6,971,723
Class B Shares		$        835,666			—			—			—			—			—			—
Class Y Shares		$484,547,230			$129,337,165			$37,478,839			$101,154,865			$409,081,343			$275,506,437			$121,927,208
Shares Outstanding
Class A Shares		7,059,765			299,031			949,440			423,335			714,718			5,161,204			720,823
Class B Shares		89,456			—			—			—			—			—			—
Class Y Shares		51,869,330			13,809,573			3,955,614			9,720,530			39,068,048			26,505,921			12,606,319
Total Shares Outstanding		59,018,551			14,108,604			4,905,054			10,143,865			39,782,766			31,667,125			13,327,142
Net Asset Value Per Share
Class A Shares		$              9.35			$              9.36			$            9.48			$            10.41			$            10.47			$            10.39			$              9.67
Class B Shares		$              9.34			—			—			—			—			—			—
Class Y Shares		$              9.34			$              9.37			$            9.47			$            10.41			$            10.47			$            10.39			$              9.67
Offering Price Per Share*
Class A Shares		$              9.79	**		$              9.80	**		$            9.72	***		$            10.90	**		$            10.96	**		$            10.88	**		$            10.13	**
Class B Shares		$              9.34			—			—			—			—			—			—
Class Y Shares		$              9.34			$              9.37			$            9.47			$            10.41			$            10.47			$            10.39			$              9.67
Redemption Proceeds Per Share*
Class A Shares		$              9.35			$              9.36			$            9.48			$            10.41			$            10.47			$            10.39			$              9.67
Class B Shares		$              8.87	****		—			—			—			—			—			—
Class Y Shares		$              9.34			$              9.37			$            9.47			$            10.41			$            10.47			$            10.39			$              9.67
Investments, at identified cost		$600,316,591			$137,570,550			$47,092,017			$106,372,362			$425,866,162			$331,642,304			$129,607,888
Investments, at tax cost		$600,316,591			$137,570,550			$47,092,017			$106,372,362			$425,866,162			$331,642,304			$129,607,888

****	Computation of Redemption Proceeds: 95/100 of net asset value.

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		Wachovia Equity Fund		Wachovia Quantitative Equity Fund		Wachovia Growth & Income Fund			Wachovia Equity Index Fund		Wachovia Special Values Fund			Wachovia Emerging Markets Fund			Wachovia Personal Equity Fund		Wachovia Balanced Fund
Investment Income:
Dividends		$  1,553,381		$  4,152,025		$  1,425,573			$  3,051,684		$ 1,769,771			$ 1,735,687	*		$  1,906,155		$  2,096,558
Interest		1,417,218		594,896		312,220			1,252,597		832,900			318,306			750,867		9,069,598
Total income		2,970,599		4,746,921		1,737,793			4,304,281		2,602,671			2,053,993			2,657,022		11,166,156
Expenses:
Investment adviser fee		1,367,951		2,530,008		1,152,445			824,398		726,033			1,111,497			1,587,589		2,387,140
Administrative personnel and services fee		140,814		262,406		118,660			198,063		65,418			80,091			163,463		247,114
Custodian fees		35,563		54,893		30,945			46,230		18,153			175,197			40,273		52,852
Transfer and dividend disbursing agent fees and expenses		15,039		21,236		15,377			12,429		19,359			15,000			6,129		15,718
Directors’/Trustees’ fees		5,072		5,560		3,216			9,144		2,251			2,000			731		5,431
Auditing fees		7,859		8,179		7,294			7,510		7,713			12,122			7,650		7,739
Legal fees		5,030		3,309		2,178			4,773		3,595			5,000			3,851		3,127
Portfolio accounting fees		1,351		1,236		394			7,951		1,871			8,045			1,462		2,667
Distribution services fee— Class B Shares		38,532		94,744		—			—		1,402			—			—		83,261
Shareholder services fee— Class A Shares		159,854		114,911		118,719			237,038		81,342			24,506			107		264,935
Shareholder services fee— Class B Shares		12,844		31,581		—			—		467			—			—		27,754
Share registration costs		27,911		21,212		9,237			14,463		15,459			15,165			16,397		20,463
Printing and postage		12,601		8,660		8,072			11,274		7,491			10,529			9,000		12,841
Insurance premiums		263		920		862			824		593			1,250			1,196		987
Miscellaneous		3,186		1,412		1,280			1,461		3,092			7,000			829		1,992
Total expenses		1,833,870		3,160,267		1,468,679			1,375,558		954,239			1,467,402			1,838,677		3,134,021
Waivers—
Waiver of investment    adviser fee		—		—		—			—		—			—			—		(165,019	)
Net expenses		1,833,870		3,160,267		1,468,679			1,375,558		954,239			1,467,402			1,838,677		2,969,002
Net investment               income		1,136,729		1,586,654		269,114			2,928,723		1,648,432			586,591			818,345		8,197,154
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments, futures contracts, and foreign currency transactions		14,895,595		30,634,818		18,722,308			1,998,784		11,084,403			12,166,867	**		11,729,830		30,525,275
Net change in unrealized appreciation (depreciation) of investments, futures contracts, and translation of assets and liabilities in foreign currency		16,347,527		5,840,892		(10,382,180	)		9,995,723		(2,987,013	)		(6,990,247	)		718,798		3,715,663
Net realized and unrealized        gain (loss) on        investments		31,243,122		36,475,710		8,340,128			11,994,507		8,097,390			5,176,620			12,448,628		34,240,938
Change in net assets               resulting from               operations		$32,379,851		$38,062,364		$  8,609,242			$14,923,230		$  9,745,822			$  5,763,211			$13,266,973		$42,438,092

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		Wachovia Fixed Income Fund			Wachovia Intermediate Fixed Income Fund			Wachovia Short Term Fixed Income Fund			Wachovia Georgia Municipal Bond Fund			Wachovia North Carolina Municipal Bond Fund			Wachovia South Carolina Municipal Bond Fund			Wachovia Virginia Municipal Bond Fund
Investment Income:
Dividends		$  1,434,614			$    206,384			$      12,980			$            —			$              —			$            —			$            —
Interest		17,697,334			4,247,963			1,519,041			2,954,992			11,007,900			9,473,116			3,632,967
Total income		19,131,948			4,454,347			1,532,021			2,954,992			11,007,900			9,473,116			3,632,967
Expenses:
Investment adviser fee		1,668,068			408,563			132,888			410,053			1,613,709			1,277,056			490,223
Administrative personnel and services fee		200,478			49,082			17,418			39,409			155,096			122,735			47,750
Custodian fees		46,564			13,619			4,832			10,935			38,524			31,791			13,249
Transfer and dividend disbursing agent fees and expenses		10,660			6,092			3,360			3,082			7,602			7,268			5,851
Directors’/Trustees’ fees		4,642			1,016			1,005			517			902			1,981			1,521
Auditing fees		7,783			7,458			7,445			7,251			7,396			7,428			8,235
Legal fees		3,243			1,700			1,714			1,760			1,716			1,595			1,782
Portfolio accounting fees		7,559			552			748			5,701			10,747			10,456			8,681
Distribution services fee—Class B Shares		3,005			—			—			—			—			—			—
Shareholder services fee—Class A Shares		85,242			3,919			12,032			5,949			9,950			70,639			9,169
Shareholder services fee—Class B Shares		1,002			—			—			—			—			—			—
Share registration costs		15,052			9,698			10,967			10,602			7,812			11,528			9,142
Printing and postage		9,045			6,994			9,940			9,231			6,534			6,964			5,589
Insurance premiums		293			330			507			502			384			492			132
Miscellaneous		5,443			1,001			1,951			7,062			4,064			1,536			925
Total expenses		2,068,079			510,024			204,807			512,054			1,864,436			1,551,469			602,249
Waivers—
Waiver of investment adviser fee		—			(2,210	)		(40,557	)		(178,031	)		(563,520	)		(493,239	)		(195,603	)
Net expenses		2,068,079			507,814			164,250			334,023			1,300,916			1,058,230			406,646
Net investment income		17,063,869			3,946,533			1,367,771			2,620,969			9,706,984			8,414,886			3,226,321
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments, futures contracts, and foreign curren- cy transactions		(2,858,402	)		(712,058	)		(39,053	)		(1,298,922	)		(3,213,498	)		(609,580	)		(672,668	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts, and translation of assets and liabilities in foreign currency		(7,626,698	)		(2,070,961	)		(651,683	)		(849,242	)		(6,720,329	)		(4,997,415	)		(1,689,164	)
Net realized and unrealized loss        on investments		(10,485,100	)		(2,783,019	)		(690,736	)		(2,148,164	)		(9,933,827	)		(5,606,995	)		(2,361,832	)
Change in net assets resulting               from operations		$  6,578,769			$1,163,514			$    677,035			$    472,805			$    (226,843	)		$2,807,891			$    864,489

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		Wachovia Equity Fund						Wachovia Quantitative Equity Fund						Wachovia Growth & Income Fund
		Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets:
Operations—
Net investment income		$    1,136,729			$    1,900,993			$    1,586,654			$    2,667,009			$        269,114			$    1,311,366
Net realized gain on investments and futures contracts		14,895,595			14,330,020			30,634,818			29,407,587			18,722,308			60,678,778
Net change in unrealized appreciation (depreciation) of    investments and futures contracts		16,347,527			48,286,545			5,840,892			31,769,230			(10,382,180	)		1,531,826
Change in net assets resulting from operations		32,379,851			64,517,558			38,062,364			63,843,826			8,609,242			63,521,970
Distributions to Shareholders—
Distributions from net investment income
Class A Shares		(221,250	)		(362,278	)		(76,148	)		(504,434	)		(24,451	)		(456,714	)
Class B Shares		—			(293	)		—			(10,684	)		—			—
Class Y Shares		(718,550	)		(1,373,680	)		(1,257,602	)		(2,379,853	)		(329,398	)		(1,160,298	)
Distributions from net realized gain on investments and    futures contracts
Class A Shares		(3,446,576	)		(6,403,780	)		—			(9,777,137	)		(16,149,793	)		(15,960,065	)
Class B Shares		(266,448	)		(682,925	)		—			(2,553,864	)		—			—
Class Y Shares		(6,546,330	)		(23,092,487	)		—			(25,353,209	)		(43,099,075	)		(25,242,279	)
Change in net assets from distributions to shareholders		(11,199,154	)		(31,915,443	)		(1,333,750	)		(40,579,181	)		(59,602,717	)		(42,819,356	)
Share Transactions—
Proceeds from sale of shares		75,488,170			126,213,398			23,370,415			45,216,048			12,072,357			79,304,120
Proceeds from shares issued in connection with the tax-free    transfer of assets from a Common Trust Fund		—			—			—			373,318,412			—			—
Net asset value of shares issued to shareholders in payment    of dividends declared		8,624,562			24,618,584			452,929			36,090,601			31,010,576			20,328,598
Cost of shares redeemed		(49,370,531	)		(90,750,849	)		(53,215,615	)		(75,233,898	)		(26,709,651	)		(107,223,683	)
Change in net assets from share transactions		34,742,201			60,081,133			(29,392,271	)		379,391,163			16,373,282			(7,590,965	)
Change in net assets		55,922,898			92,683,248			7,336,343			402,655,808			(34,620,193	)		13,111,649
Net Assets:
Beginning of period		351,836,262			259,153,014			712,212,696			309,556,888			349,593,378			336,481,729
End of period		$407,759,160			$351,836,262			$719,549,039			$712,212,696			$314,973,185			$349,593,378
Undistributed net investment income included in net assets at end of period		$        546,537			$        349,608			$        347,667			$          94,763			$        108,161			$        192,896
Net gain as computed for federal tax purposes		$  14,895,595			$  10,259,620			$  30,634,818			$  26,412,197			$  18,722,308			$  59,248,423

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		Wachovia Equity Index Fund						Wachovia Special Values Fund						Wachovia Emerging Markets Fund
		Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets:
Operations—
Net investment income		$    2,928,723			$    6,229,670			$    1,648,432			$    2,893,962			$        586,591			$        981,662
Net realized gain on investments, futures contracts, and    foreign currency transactions		1,998,784			17,541,090			11,084,403			7,161,252			12,166,867			2,891,987
Net change in unrealized appreciation (depreciation) of    investments, futures contracts, and translation of assets    and liabilities in foreign currency		9,995,723			64,241,493			(2,987,013	)		(1,650,644	)		(6,990,247	)		52,585,006
Change in net assets resulting from operations		14,923,230			88,012,253			9,745,822			8,404,570			5,763,211			56,458,655
Distributions to Shareholders—
Distributions from net investment income    Class A Shares		(2,358,425	)		(1,667,787	)		(1,132,623	)		(597,826	)		(147,714	)		(48,950	)
Class B Shares		—			—			(5,460	)		—			—			—
Class Y Shares		(968,856	)		(4,270,929	)		(2,258,956	)		(1,140,362	)		(2,046,168	)		(1,079,581	)
Distributions from net realized gain on investments, futures    contracts, and foreign currency    Class A Shares		(7,614,389	)		(2,179,495	)		(2,135,061	)		(2,756,902	)		—			—
Class B Shares		—			—			(11,576	)		—			—			—
Class Y Shares		(3,671,428	)		(4,801,448	)		(3,732,965	)		(4,195,184	)		—			—
Change in net assets from distributions to shareholders		(14,613,098	)		(12,919,659	)		(9,276,641	)		(8,690,274	)		(2,193,882	)		(1,128,531	)
Share Transactions—
Proceeds from sale of shares		78,799,883			148,792,010			27,434,797			55,734,701			42,731,052			35,132,998
Proceeds from shares issued in connection with the tax-free    transfer of assets from a Common Trust Fund		—			—			—			6,217,889			—			—
Net asset value of shares issued to shareholders in payment    of dividends declared		13,709,311			12,226,266			7,169,649			7,362,549			820,530			384,630
Cost of shares redeemed		(101,131,438	)		(114,781,275	)		(23,133,697	)		(43,319,704	)		(33,151,228	)		(35,972,882	)
Change in net assets from share transactions		(8,622,244	)		46,237,001			11,470,749			25,995,435			10,400,354			(455,254	)
Change in net assets		(8,312,112	)		121,329,595			11,939,930			25,709,731			13,969,683			54,874,870
Net Assets:
Beginning of period		544,631,351			423,301,756			175,667,583			149,957,852			194,449,828			139,574,958
End of period		$536,319,239			$544,631,351			$187,607,513			$175,667,583			$208,419,511			$194,449,828
Undistributed net investment income (Distributions in excess of net investment income) included in net assets at end of period		$        695,296			$    1,093,854			$        971,658			$    2,752,766			$      (227,123	)		$    1,380,168
Net gain as computed for federal tax purposes		$    1,998,784			$  11,284,463			$  11,084,403			$    5,879,628			$  12,166,867			$    2,465,582

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		Wachovia Personal Equity Fund						Wachovia Balanced Fund						Wachovia Fixed Income Fund
		Six-Months Ended (unaudited) May 31, 2000			Period Ended November 30, 1999(1)			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets:
Operations—
Net investment income		$        818,345			$        463,895			$    8,197,154			$  11,667,132			$  17,063,869			$  20,213,685
Net realized gain (loss) on investments and    futures contracts		11,729,830			7,806,983			30,525,275			21,074,744			(2,858,402	)		(1,975,659	)
Net change in unrealized appreciation (depreciation)    of investments and futures contracts		718,798			20,381,700			3,715,663			37,368,946			(7,626,698	)		(16,216,784	)
Change in net assets resulting from operations		13,266,973			28,652,578			42,438,092			70,110,822			6,578,769			2,021,242
Distributions to Shareholders—
Distributions from net investment income
Class A Shares		(60	)		—			(2,143,447	)		(4,340,110	)		(1,990,664	)		(2,884,514	)
Class B Shares		—			—			(145,171	)		(276,558	)		(20,422	)		(35,054	)
Class Y Shares		(706,411	)		(212,600	)		(4,920,662	)		(6,781,441	)		(14,870,054	)		(16,617,132	)
Distributions from net realized gain on investments    and futures contracts
Class A Shares		(2,483	)		—			(1,397,802	)		(17,377,408	)		—			(111,279	)
Class B Shares		—			—			(144,259	)		(1,929,181	)		—			(2,141	)
Class Y Shares		(8,009,822	)		—			(2,878,970	)		(32,938,534	)		—			(741,696	)
Change in net assets from distributions to shareholders		(8,718,776	)		(212,600	)		(11,630,311	)		(63,643,232	)		(16,881,140	)		(20,391,816	)
Share Transactions—
Proceeds from sale of shares		8,322,978			2,244,187			80,562,497			216,793,701			60,036,572			165,467,506
Proceeds from shares issued in connection with the tax-free    transfer of assets from a Common Trust Fund		—			428,394,696			—			249,842,105			—			265,851,176
Net asset value of shares issued to shareholders in payment    of dividends declared		7,993,270			63			7,983,516			57,849,606			5,186,089			9,617,907
Cost of shares redeemed		(24,999,847	)		(14,516,568	)		(64,933,680	)		(304,243,599	)		(61,838,749	)		(102,333,202	)
Change in net assets from share transactions		(8,683,599	)		416,122,378			23,612,333			220,241,813			3,383,912			338,603,387
Change in net assets		(4,135,402	)		444,562,356			54,420,114			226,709,403			(6,918,459	)		320,232,813
Net Assets:
Beginning of period		444,562,356			—			650,598,794			423,889,391			558,275,832			238,043,019
End of period		$440,426,954			$444,562,356			$705,018,908			$650,598,794			$551,357,373			$558,275,832
Undistributed net investment income included in net assets at end of period		$        363,169			$        251,295			$    3,047,377			$    2,059,503			$        775,615			$        592,886
Net gain (loss) as computed for federal tax purposes		$  11,729,830			$    8,014,524			$  30,525,275			$  17,205,726			$    (2,858,402	)		$    (2,177,586	)

(1)	Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

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		Wachovia Intermediate Fixed Income Fund						Wachovia Short-Term Fixed Income Fund						Wachovia Georgia Municipal Bond Fund
		Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets:
Operations—
Net investment income		$    3,946,533			$    5,770,456			$  1,367,771			$    2,938,621			$    2,620,969			$    2,435,531
Net realized gain (loss) on investments and futures contracts		(712,058	)		35,200			(39,053	)		491,231			(1,298,922	)		(561,411	)
Net change in unrealized appreciation (depreciation) of    investments and futures contracts		(2,070,961	)		(5,768,480	)		(651,683	)		(1,634,947	)		(849,242	)		(3,747,837	)
Change in net assets resulting from operations		1,163,514			37,176			677,035			1,794,905			472,805			(1,873,717	)
Distributions to Shareholders—
Distributions from net investment income
Class A Shares		(85,838	)		(202,679	)		(284,940	)		(547,972	)		(109,130	)		(245,913	)
Class Y Shares		(3,957,204	)		(5,512,076	)		(1,212,327	)		(2,779,470	)		(2,526,521	)		(2,174,539	)
Distributions from net realized gain on investments and    futures contracts
Class A Shares		(1,841	)		(92,062	)		—			—			—			(17,469	)
Class Y Shares		(77,491	)		(1,701,330	)		—			—			—			(43,655	)
Change in net assets from distributions to shareholders		(4,122,374	)		(7,508,147	)		(1,497,267	)		(3,327,442	)		(2,635,651	)		(2,481,576	)
Share Transactions—
Proceeds from sale of shares		14,474,949			20,483,149			7,911,350			13,979,811			8,787,928			13,513,690
Proceeds from shares issued in connection with the tax-free    transfer of assets from a Common Trust Fund		—			59,122,769			—			7,116,836			—			88,191,199
Net asset value of shares issued to shareholders in payment    of dividends declared		259,750			651,094			1,030,335			2,803,311			110,150			290,940
Cost of shares redeemed		(21,351,187	)		(23,663,167	)		(10,376,890	)		(82,504,658	)		(15,380,638	)		(7,365,394	)
Change in net assets from share transactions		(6,616,488	)		56,593,845			(1,435,205	)		(58,604,700	)		(6,482,560	)		94,630,435
Change in net assets		(9,575,348	)		49,122,874			(2,255,437	)		60,137,237			(8,645,406	)		90,275,142
Net Assets:
Beginning of period		141,712,691			92,589,817			48,732,245			108,869,482			114,205,551			23,930,409
End of period		$132,137,343			$141,712,691			$46,476,808			$  48,732,245			$105,560,145			$114,205,551
Undistributed net investment income included in net assets at end of period		$          21,060			$        117,569			$          5,384			$        134,880			$              894			$          15,576
Net gain (loss) as computed for federal tax purposes		$      (712,058	)		$          79,785			$      (39,053	)		$        491,231			$    (1,298,922	)		$      (575,481	)

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		Wachovia North Carolina Municipal Bond Fund						Wachovia South Carolina Municipal Bond Fund						Wachovia Virginia Municipal Bond Fund
		Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999			Six-Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets:
Operations—
Net investment income		$    9,706,984			$    8,316,437			$    8,414,886			$    9,519,727			$    3,226,321			$    5,471,458
Net realized gain (loss) on investments		(3,213,498	)		263,247			(609,580	)		64,300			(672,668	)		169,324
Net change in unrealized appreciation (depreciation)    of investments		(6,720,329	)		(13,454,369	)		(4,997,415	)		(15,832,915	)		(1,689,164	)		(7,994,414	)
Change in net assets resulting from operations		(226,843	)		(4,874,685	)		2,807,891			(6,248,888	)		864,489			(2,353,632	)
Distributions to Shareholders—
Distributions from net investment income
Class A Shares		(169,110	)		(354,496	)		(1,326,682	)		(2,932,843	)		(170,308	)		(366,695	)
Class Y Shares		(9,488,237	)		(7,981,753	)		(7,022,987	)		(6,591,278	)		(3,061,767	)		(5,090,199	)
Distributions from net realized gain on investments
Class A Shares		(4,855	)		(47,957	)		(10,661	)		(116,632	)		—			—
Class Y Shares		(257,094	)		(279,986	)		(52,540	)		(92,877	)		—			—
Change in net assets from distributions to        shareholders		(9,919,296	)		(8,664,192	)		(8,412,870	)		(9,733,630	)		(3,232,075	)		(5,456,894	)
Share Transactions—
Proceeds from sale of shares		21,200,798			40,895,769			15,080,380			37,278,910			6,251,638			26,296,082
Proceeds from shares issued in connection with    the tax-free transfer of assets from a Common    Trust Fund		—			366,043,958			—			225,809,305			—			32,818,769
Net asset value of shares issued to shareholders    in payment of dividends declared		450,682			717,052			842,488			2,188,807			183,911			555,659
Cost of shares redeemed		(38,107,666	)		(17,244,173	)		(29,620,596	)		(23,066,610	)		(12,662,621	)		(22,355,749	)
Change in net assets from share transactions		(16,456,186	)		390,412,606			(13,697,728	)		242,210,412			(6,227,072	)		37,314,761
Change in net assets		(26,602,325	)		376,873,729			(19,302,707	)		226,227,894			(8,594,658	)		29,504,235
Net Assets:
Beginning of period		443,167,488			66,293,759			348,455,611			122,227,717			137,493,589			107,989,354
End of period		$416,565,163			$443,167,488			$329,152,904			$348,455,611			$128,898,931			$137,493,589
Undistributed net investment income (Distributions in excess of net investment income) included in net assets at end of period		$          78,214			$          28,577			$          63,831			$          (1,386	)		$            1,553			$            7,307
Net gain (loss) as computed for federal tax purposes		$    (3,213,498	)		$        257,307			$      (609,580	)		$          64,300			$      (672,668	)		$        169,324

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Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income/ (Operating Loss)			Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, and Foreign Currency Transactions			Total from Investment Operations		Distributions from Net Investment Income			Distributions from Net Realized Gain on Investment Transactions, Futures Contracts and Foreign Currency Transactions			Total Distributions
Wachovia Equity Fund
1995		$10.32		0.23			2.64			2.87		(0.25	)		(0.23	)		(0.48	)
1996		$12.71		0.22	(6)		2.83			3.05		(0.22	)		(0.73	)		(0.95	)
1997		$14.81		0.14	(6)		2.43			2.57		(0.13	)		(1.86	)		(1.99	)
1998		$15.39		0.13	(6)		2.21			2.34		(0.14	)		(1.68	)		(1.82	)
1999		$15.91		0.06			3.41			3.47		(0.07	)		(1.89	)		(1.96	)
2000(4)		$17.42		0.04			1.54			1.58		(0.03	)		(0.51	)		(0.54	)
Wachovia Quantitative Equity Fund
1995		$  9.60		0.22			3.51			3.73		(0.22	)		—			(0.22	)
1996		$13.11		0.24	(6)		2.77			3.01		(0.21	)		(0.24	)		(0.45	)
1997		$15.67		0.18	(6)		4.14			4.32		(0.20	)		(0.79	)		(0.99	)
1998		$19.00		0.11	(6)		3.12			3.23		(0.19	)		(1.75	)		(1.94	)
1999		$20.29		0.09			3.16			3.25		(0.12	)		(2.42	)		(2.54	)
2000(4)		$21.00		0.03			1.10			1.13		(0.02	)		—			(0.02	)
Wachovia Growth & Income Fund
1995		$  9.80		0.17			3.09			3.26		(0.18	)		—			(0.18	)
1996		$12.88		0.15			3.67			3.82		(0.15	)		(0.14	)		(0.29	)
1997		$16.41		0.13			4.44			4.57		(0.13	)		(0.25	)		(0.38	)
1998		$20.60		0.11			3.94			4.05		(0.10	)		(1.01	)		(1.11	)
1999		$23.54		0.05			4.24			4.29		(0.08	)		(2.89	)		(2.97	)
2000(4)		$24.86		0.01			0.60			0.61		(0.01	)		(4.26	)		(4.27	)
Wachovia Equity Index Fund
1995		$10.27		0.28			3.37			3.65		(0.27	)		(0.03	)		(0.30	)
1996		$13.62		0.32	(6)		3.13			3.45		(0.31	)		(0.78	)		(1.09	)
1997		$15.98		0.25	(6)		3.85			4.10		(0.28	)		(0.91	)		(1.19	)
1998		$18.89		0.26	(6)		3.90			4.16		(0.24	)		(0.40	)		(0.64	)
1999		$22.41		0.27			4.13			4.40		(0.26	)		(0.37	)		(0.63	)
2000(4)		$26.18		0.12			0.56			0.68		(0.14	)		(0.53	)		(0.67	)
Wachovia Special Values Fund
1995		$  9.75		0.09			2.42			2.51		(0.02	)		(0.06	)		(0.08	)
1996		$12.18		0.35			4.13			4.48		(0.08	)		(0.91	)		(0.99	)
1997		$15.67		0.13	(6)		4.53			4.66		(0.08	)		(1.61	)		(1.69	)
1998		$18.64		0.19	(6)		(0.87	)		(0.68)		(0.12	)		(1.71	)		(1.83	)
1999		$16.13		0.25			0.56			0.81		(0.16	)		(0.75	)		(0.91	)
2000(4)		$16.03		0.14			0.70			0.84		(0.28	)		(0.52	)		(0.80	)
Wachovia Emerging Markets Fund
1995(1)		$10.00		0.05			0.36			0.41		—			—			—
1996		$10.41		0.09	(6)		1.20			1.29		(0.03	)		—			(0.03	)
1997		$11.67		0.03	(6)		(0.47	)		(0.44)		(0.11	)		—			(0.11	)
1998		$11.12		0.09	(6)		(2.68	)		(2.59)		(0.10	)		—			(0.10	)
1999		$  8.43		0.04	(6)		3.32			3.36		(0.05	)		—			(0.05	)
2000(4)		$11.74		(0.02	)		0.41			0.39		(0.11	)		—			(0.11	)

(1)	Reflects operations for the period from December 26, 1994 (date of initial public investment) to November 30, 1995.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Less than 0.01%.

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Year Ended November 30,		Net Asset Value, end of period		Total Return(2)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net Investment income			Expense Waiver/ Reimbursement(3)
Wachovia Equity Fund
1995		$12.71		28.74	%		0.90	%		1.99	%		0.07	%		$130,150		65	%
1996		$14.81		25.56	%		0.90	%		1.62	%		0.15	%		$  20,774		64	%
1997		$15.39		20.22	%		1.14	%		0.95	%		0.07	%		$  39,494		124	%
1998		$15.91		17.34	%		1.12	%		0.91	%		—			$  53,103		150	%
1999		$17.42		24.31	%		1.09	%		0.49	%		—			$118,967		45	%
2000(4)		$18.46		9.21	%		1.09	%(5)		0.44	%(5)		—			$127,092		24	%
Wachovia Quantitative Equity Fund
1995		$13.11		39.33	%		0.87	%		1.93	%		0.10	%		$121,895		63	%
1996		$15.67		23.74	%		0.87	%		1.70	%		0.15	%		$  15,742		44	%
1997		$19.00		29.38	%		1.11	%		1.09	%		0.07	%		$  35,413		74	%
1998		$20.29		18.98	%		1.11	%		0.95	%		—			$  82,682		38	%
1999		$21.00		16.60	%		1.11	%		0.48	%		—			$  89,140		34	%
2000(4)		$22.11		5.38	%		1.07	%(5)		0.26	%(5)		—			$  92,905		7	%
Wachovia Growth & Income Fund
1995		$12.88		33.59	%		1.35	%		1.58	%		0.36	%		$119,484		30	%
1996		$16.41		30.10	%		1.35	%		1.04	%		0.31	%		$186,147		12	%
1997		$20.60		28.50	%		1.30	%		0.70	%		0.30	%		$338,724		13	%
1998		$23.54		20.77	%		1.21	%		0.59	%		0.08	%		$130,306		24	%
1999		$24.86		20.40	%		1.09	%		0.24	%		—			$  94,674		44	%
2000(4)		$21.20		2.22	%		1.07	%(5)		(0.01	%)(5)		—			$  91,558		12	%
Wachovia Equity Index Fund
1995		$13.62		36.15	%		0.48	%		2.39	%		0.05	%		$186,841		60	%
1996		$15.98		27.19	%		0.48	%		2.23	%		0.13	%		$  18,154		12	%
1997		$18.89		27.55	%		0.72	%		1.46	%		0.02	%		$  50,917		4	%
1998		$22.41		22.74	%		0.70	%		1.23	%		—			$131,594		29	%
1999		$26.18		19.97	%		0.69	%		1.07	%		—			$182,697		11	%
2000(4)		$26.19		2.57	%		0.66	%(5)		0.90	%(5)		—			$189,716		9	%
Wachovia Special Values Fund
1995		$12.18		25.91	%		1.29	%		0.80	%		0.58	%		$  24,093		57	%
1996		$15.67		39.78	%		1.21	%		0.47	%		0.29	%		$    6,642		38	%
1997		$18.64		33.08	%		1.35	%		0.74	%		0.01	%		$  37,766		46	%
1998		$16.13		(3.86	%)		1.25	%		0.98	%		—			$  59,408		20	%
1999		$16.03		5.40	%		1.23	%		1.61	%		0.00	%(7)		$  65,348		44	%
2000(4)		$16.07		5.50	%		1.21	%(5)		1.66	%(5)		—			$  64,685		19	%
Wachovia Emerging Markets Fund
1995(1)		$10.41		4.10	%		1.80	%(5)		0.85	%(5)		0.28	%(5)		$  71,276		17	%
1996		$11.67		12.45	%		1.69	%		0.73	%		0.09	%		$    5,488		30	%
1997		$11.12		(3.82	%)		1.79	%		0.26	%		—			$    7,996		60	%
1998		$  8.43		(23.46	%)		1.68	%		0.90	%		—			$    8,677		51	%
1999		$11.74		40.07	%		1.60	%		0.37	%		—			$  16,007		56	%
2000(4)		$12.02		3.23	%		1.55	%(5)		0.33	%(5)		—			$  20,489		28	%

(1)	Reflects operations for the period from December 26, 1994 (date of initial public investment) to November 30, 1995.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Less than 0.01%.

---

---

Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain/(Loss) on Investments and Futures Contracts		Total from Investment Operations			Distributions from Net Investment Income		Distributions from Net Realized Gain on Investment Transactions and Futures Contracts			Total Distributions
Wachovia Personal Equity Fund
1999(1)		$10.00		0.01			0.67		0.68			(0.01)		—			(0.01)
2000(4)		$10.67		0.01			0.29		0.30			(0.01)		(0.19	)		(0.20)
Wachovia Balanced Fund
1995		$  9.93		0.40			2.13		2.53			(0.38)		(0.16	)		(0.54)
1996		$11.92		0.38	(6)		1.72		2.10			(0.38)		(0.34	)		(0.72)
1997		$13.30		0.34	(6)		1.40		1.74			(0.34)		(1.44	)		(1.78)
1998		$13.26		0.24	(6)		1.50		1.74			(0.38)		(0.90	)		(1.28)
1999		$13.72		0.29			1.44		1.73			(0.31)		(1.69	)		(2.00)
2000(4)		$13.45		0.16			0.74		0.90			(0.14)		(0.09	)		(0.23)
Wachovia Fixed Income Fund
1995		$  8.97		0.58			0.92		1.50			(0.57)		—			(0.57)
1996		$  9.90		0.61	(6)		(0.09)		0.52			(0.59)		—			(0.59)
1997		$  9.83		0.54	(6)		0.04		0.58			(0.56)		—			(0.56)
1998		$  9.85		0.53	(6)		0.30		0.83			(0.54)		—			(0.54)
1999		$10.14		0.51			(0.58)		(0.07	)		(0.51)		(0.04	)		(0.55)
2000(4)		$  9.52		0.29			(0.18)		0.11			(0.28)		—			(0.28)
Wachovia Intermediate Fixed Income Fund
1995		$  9.31		0.55			0.76		1.31			(0.55)		—			(0.55)
1996		$10.07		0.55			(0.11)		0.44			(0.55)		—			(0.55)
1997		$  9.96		0.54			0.06		0.60			(0.53)		—			(0.53)
1998		$10.03		0.47			0.40		0.87			(0.52)		—			(0.52)
1999		$10.38		0.50			(0.61)		(0.11	)		(0.50)		(0.20	)		(0.70)
2000(4)		$  9.57		0.27			(0.20)		0.07			(0.27)		(0.01	)		(0.28)
Wachovia Short-Term Fixed Income Fund
1995		$  9.58		0.59			0.24		0.83			(0.52)		—			(0.52)
1996		$  9.89		0.56	(6)		(0.06)		0.50			(0.60)		—			(0.60)
1997		$  9.79		0.50	(6)		(0.01)		0.49			(0.51)		—			(0.51)
1998		$  9.77		0.52	(6)		0.14		0.66			(0.51)		—			(0.51)
1999		$  9.92		0.48			(0.25)		0.23			(0.52)		—			(0.52)
2000(4)		$  9.63		0.29			(0.16)		0.13			(0.28)		—			(0.28)
Wachovia Georgia Municipal Bond Fund
1995(7)		$10.00		0.41			0.96		1.37			(0.41)		—			(0.41)
1996		$10.96		0.47			0.05		0.52			(0.47)		(0.01	)		(0.48)
1997		$11.00		0.44			0.13		0.57			(0.44)		(0.02	)		(0.46)
1998		$11.11		0.42			0.27		0.69			(0.42)		(0.00	)(8)		(0.42)
1999		$11.38		0.43			(0.74)		(0.31	)		(0.43)		(0.03	)		(0.46)
2000(4)		$10.61		0.24			(0.20)		0.04			(0.24)		—			(0.24)
Wachovia North Carolina Municipal Bond Fund
1995(7)		$10.00		0.43			0.99		1.42			(0.43)		—			(0.43)
1996		$10.99		0.45			0.09		0.54			(0.45)		(0.05	)		(0.50)
1997		$11.03		0.43			0.14		0.57			(0.43)		(0.02	)		(0.45)
1998		$11.15		0.43			0.32		0.75			(0.43)		(0.01	)		(0.44)
1999		$11.46		0.42			(0.68)		(0.26	)		(0.42)		(0.06	)		(0.48)
2000(4)		$10.72		0.22			(0.24)		(0.02	)		(0.22)		(0.01	)		(0.23)

(1)	Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Reflects operations for the period from December 26, 1994 (date of initial public investment) to November 30, 1995.

(8)	Less than $0.01 per share.

(9)	Less than 0.01%.

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---

Year Ended November 30,		Net Asset Value, end of period		Total Return(2)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net Investment income			Expense Waiver/ Reimbursement(3)
Wachovia Personal Equity Fund
1999(1)		$10.67		6.75	%		1.15	%(5)		0.39	%(5)		0.01	%(5)		$      110		11	%
2000(4)		$10.77		2.81	%		1.06	%(5)		0.09	%(5)		—			$      117		15	%
Wachovia Balanced Fund
1995		$11.92		26.32	%		0.76	%		3.58	%		0.16	%		$207,421		102	%
1996		$13.30		18.55	%		0.76	%		3.05	%		0.24	%		$  18,619		99	%
1997		$13.26		15.17	%		1.02	%		2.77	%		0.16	%		$  50,968		143	%
1998		$13.72		14.36	%		1.01	%		2.88	%		0.09	%		$119,093		124	%
1999		$13.45		13.95	%		1.01	%		2.26	%		0.08	%		$205,167		66	%
2000(4)		$14.12		6.77	%		1.01	%(5)		2.26	%(5)		0.05	%(5)		$209,422		31	%
Wachovia Fixed Income Fund
1995		$  9.90		17.20	%		0.74	%		6.07	%		0.10	%		$169,846		155	%
1996		$  9.83		5.51	%		0.74	%		6.05	%		0.18	%		$    4,853		181	%
1997		$  9.85		6.14	%		0.98	%		5.65	%		0.11	%		$  10,039		174	%
1998		$10.14		8.65	%		0.97	%		5.30	%		0.05	%		$  24,624		111	%
1999		$  9.52		(0.77	%)		0.97	%		5.34	%		0.03	%		$  69,475		49	%
2000(4)		$  9.35		1.12	%		0.96	%(5)		5.91	%(5)		—			$  65,974		32	%
Wachovia Intermediate Fixed Income Fund
1995		$10.07		14.44	%		1.10	%		5.60	%		0.41	%		$  35,796		44	%
1996		$  9.96		4.46	%		1.09	%		5.62	%		0.31	%		$  43,277		84	%
1997		$10.03		6.32	%		1.04	%		5.50	%		0.30	%		$  96,626		81	%
1998		$10.38		9.39	%		1.06	%		5.39	%		0.14	%		$    4,759		57	%
1999		$  9.57		(1.03	%)		0.99	%		5.16	%		0.04	%		$    3,205		89	%
2000(4)		$  9.36		0.68	%		0.99	%(5)		5.55	%(5)		0.00	%(5)(9)		$    2,800		26	%
Wachovia Short-Term Fixed Income Fund
1995		$  9.89		8.82	%		0.63	%		5.83	%		0.18	%		$124,720		147	%
1996		$  9.79		5.29	%		0.63	%		5.50	%		0.27	%		$    1,675		145	%
1997		$  9.77		5.10	%		0.87	%		5.49	%		0.19	%		$    7,233		215	%
1998		$  9.92		6.93	%		0.88	%		5.22	%		0.10	%		$  10,437		135	%
1999		$  9.63		2.44	%		0.88	%		4.97	%		0.14	%		$  10,409		25	%
2000(4)		$  9.48		1.36	%		0.88	%(5)		5.45	%(5)		0.17	%(5)		$    8,998		44	%
Wachovia Georgia Municipal Bond Fund
1995(7)		$10.96		13.93	%		0.92	%(5)		4.30	%(5)		1.88	%(5)		$  10,220		14	%
1996		$11.00		4.97	%		0.89	%		4.40	%		1.61	%		$    7,531		14	%
1997		$11.11		5.41	%		1.14	%		4.03	%		1.11	%		$    6,531		25	%
1998		$11.38		6.35	%		1.17	%		3.72	%		0.34	%		$    6,900		14	%
1999		$10.61		(2.83	%)		1.07	%		3.87	%		0.30	%		$    5,450		48	%
2000(4)		$10.41		0.39	%		0.85	%(5)		4.55	%(5)		0.33	%(5)		$    4,405		23	%
Wachovia North Carolina Municipal Bond Fund
1995(7)		$10.99		14.40	%		0.85	%(5)		4.40	%(5)		1.19	%(5)		$  18,679		19	%
1996		$11.03		5.17	%		0.84	%		4.24	%		0.77	%		$  13,752		7	%
1997		$11.15		5.36	%		1.07	%		3.91	%		0.44	%		$  11,563		17	%
1998		$11.46		6.82	%		1.10	%		3.80	%		0.16	%		$    9,533		9	%
1999		$10.72		(2.34	%)		1.02	%		3.73	%		0.20	%		$    8,644		11	%
2000(4)		$10.47		(0.18	%)		0.85	%(5)		4.26	%(5)		0.26	%(5)		$    7,484		11	%

(1)	Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Reflects operations for the period from December 26, 1994 (date of initial public investment) to November 30, 1995.

(8)	Less than $0.01 per share.

(9)	Less than 0.01%.

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Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income		Net Realized and Unrealized Gain/(Loss) on Investments			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Net Realized Gain on Investment Transactions			Total Distributions
Wachovia South Carolina Municipal Bond Fund
1995		$10.05		0.56		1.10			1.66			(0.56	)		(0.10	)		(0.66	)
1996		$11.05		0.55		0.03			0.58			(0.55	)		(0.03	)		(0.58	)
1997		$11.05		0.53		0.11			0.64			(0.52	)		(0.05	)		(0.57	)
1998		$11.12		0.51		0.24			0.75			(0.51	)		(0.00	)(5)		(0.51	)
1999		$11.36		0.50		(0.77	)		(0.27	)		(0.50	)		(0.02	)		(0.52	)
2000(3)		$10.57		0.25		(0.18	)		0.07			(0.25	)		(0.00	)(5)		(0.25	)
Wachovia Virginia Municipal Bond Fund
1995		$  9.40		0.42		0.85			1.27			(0.42	)		—			(0.42	)
1996		$10.25		0.44		(0.10	)		0.34			(0.44	)		—			(0.44	)
1997		$10.15		0.46		0.13			0.59			(0.45	)		—			(0.45	)
1998		$10.29		0.48		0.14			0.62			(0.42	)		—			(0.42	)
1999		$10.49		0.45		(0.65	)		(0.20	)		(0.45	)		—			(0.45	)
2000(3)		$  9.84		0.23		(0.17	)		0.06			(0.23	)		—			(0.23	)

(1)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(3)	For six-months ended May 31, 2000 (Unaudited).

(4)	Computed on an annualized basis.

(5)	Less than $0.01 per share.

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Year Ended November 30,		Net Asset Value, end of period		Total Return(1)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net Investment income			Expense Waiver/ Reimbursement(2)
Wachovia South Carolina Municipal Bond Fund
1995		$11.05		16.97	%		0.58	%		5.23	%		0.55	%		$  93,725		15	%
1996		$11.05		5.54	%		0.57	%		5.10	%		0.59	%		$  65,981		20	%
1997		$11.12		6.01	%		0.81	%		4.79	%		0.48	%		$  64,696		12	%
1998		$11.36		6.88	%		0.83	%		4.52	%		0.36	%		$  67,458		6	%
1999		$10.57		(2.49	%)		0.83	%		4.50	%		0.35	%		$  59,655		9	%
2000(3)		$10.39		0.65	%		0.83	%(4)		4.73	%(4)		0.29	%(4)		$  53,646		12	%
Wachovia Virginia Municipal Bond Fund
1995		$10.25		13.79	%		1.05	%		4.33	%		0.46	%		$  54,041		78	%
1996		$10.15		3.50	%		1.04	%		4.45	%		0.40	%		$  70,378		37	%
1997		$10.30		5.97	%		0.96	%		4.50	%		0.40	%		$111,160		15	%
1998		$10.49		6.76	%		0.95	%		4.35	%		0.33	%		$    8,835		15	%
1999		$  9.84		(2.01	%)		0.90	%		4.36	%		0.29	%		$    7,682		29	%
2000(3)		$  9.67		0.58	%		0.85	%(4)		4.63	%(4)		0.30	%(4)		$    6,972		10	%

(1)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(3)	For six-months ended May 31, 2000 (Unaudited).

(4)	Computed on an annualized basis.

(5)	Less than $0.01 per share.

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Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income/ (Operating Loss)			Net Realized and Unrealized Gain/(Loss) on Investments and Futures Contracts			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Net Realized Gain on Investment Transactions and Futures Contracts			Total Distributions
Wachovia Equity Fund
1996(1)		$12.43		0.02			2.37			2.39			(0.03	)		—			(0.03	)
1997		$14.79		0.04			2.42			2.46			(0.04	)		(1.86	)		(1.90	)
1998		$15.35		0.03			2.20			2.23			(0.03	)		(1.68	)		(1.71	)
1999		$15.87		(0.04	)		3.38			3.34			(0.00	)(7)		(1.89	)		(1.89	)
2000(4)		$17.32		(0.02	)		1.52			1.50			—			(0.51	)		(0.51	)
Wachovia Quantitative Equity Fund
1996(1)		$13.09		0.04			2.56			2.60			(0.04	)		—			(0.04	)
1997		$15.65		0.08			4.10			4.18			(0.09	)		(0.79	)		(0.88	)
1998		$18.95		0.05			3.04			3.09			(0.06	)		(1.75	)		(1.81	)
1999		$20.23		(0.05	)		3.16			3.11			(0.01	)		(2.42	)		(2.43	)
2000(4)		$20.91		(0.06	)		1.09			1.03			—			—			—
Wachovia Special Values Fund
1999(6)		$14.60		0.17			1.22			1.39			—			—			—
2000(4)		$15.99		0.09			0.69			0.78			(0.25	)		(0.52	)		(0.77	)
Wachovia Balanced Fund
1996(1)		$11.68		0.09			1.59			1.68			(0.07	)		—			(0.07	)
1997		$13.29		0.26			1.38			1.64			(0.26	)		(1.44	)		(1.70	)
1998		$13.23		0.28			1.37			1.65			(0.29	)		(0.90	)		(1.19	)
1999		$13.69		0.20			1.42			1.62			(0.21	)		(1.69	)		(1.90	)
2000(4)		$13.41		0.11			0.74			0.85			(0.09	)		(0.09	)		(0.18	)
Wachovia Fixed Income Fund
1996(1)		$  9.45		0.15			0.40			0.55			(0.17	)		—			(0.17	)
1997		$  9.83		0.48			0.01			0.49			(0.48	)		—			(0.48	)
1998		$  9.84		0.47			0.30			0.77			(0.47	)		—			(0.47	)
1999		$10.14		0.43			(0.58	)		(0.15	)		(0.43	)		(0.04	)		(0.47	)
2000(4)		$  9.52		0.24			(0.18	)		0.06			(0.24	)		—			(0.24	)

(1)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000. (Unaudited)

(5)	Computed on an annualized basis.

(6)	Reflects operations for the period from March 26, 1999 (date of initial public investment) to November 30, 1999.

(7)	Less than $0.01 per share.

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---

Year Ended November 30,		Net Asset Value, end of period		Total Return(2)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net  Investment  income			Expense Waiver/ Reimbursement(3)
Wachovia Equity Fund
1996(1)		$14.79		19.25	%		1.90	%(5)		0.02	%(5)		0.20	%(5)		$    976		64	%
1997		$15.35		19.27	%		1.90	%		0.18	%		0.06	%		$  3,448		124	%
1998		$15.87		16.52	%		1.87	%		0.17	%		—			$  5,725		150	%
1999		$17.32		23.37	%		1.84	%		(0.26	%)		—			$  8,992		45	%
2000(4)		$18.31		8.77	%		1.84	%(5)		(0.31	%)(5)		—			$10,897		24	%
Wachovia Quantitative Equity Fund
1996(1)		$15.65		19.90	%		1.87	%(5)		0.46	%(5)		0.11	%(5)		$  1,414		44	%
1997		$18.95		28.33	%		1.85	%		0.31	%		0.07	%		$  6,564		74	%
1998		$20.23		18.15	%		1.86	%		0.20	%		—			$19,532		38	%
1999		$20.91		15.85	%		1.86	%		(0.27	%)		—			$24,652		34	%
2000(4)		$21.94		4.93	%		1.82	%(5)		(0.49	%)(5)		—			$25,221		7	%
Wachovia Special Values Fund
1999(6)		$15.99		9.52	%		1.98	%(5)		0.93	%(5)		0.01	%(5)		$    350		44	%
2000(4)		$16.00		5.11	%		1.96	%(5)		0.90	%(5)		—			$    395		19	%
Wachovia Balanced Fund
1996(1)		$13.29		14.47	%		1.76	%(5)		1.93	%(5)		0.16	%(5)		$  1,821		99	%
1997		$13.23		14.19	%		1.78	%		2.01	%		0.16	%		$  5,916		143	%
1998		$13.69		13.56	%		1.76	%		2.13	%		0.09	%		$13,963		124	%
1999		$13.41		13.08	%		1.76	%		1.50	%		0.08	%		$20,927		66	%
2000(4)		$14.08		6.42	%		1.76	%(5)		1.51	%(5)		0.05	%(5)		$22,505		31	%
Wachovia Fixed Income Fund
1996(1)		$  9.83		5.83	%		1.74	%(5)		5.20	%(5)		0.13	%(5)		$    113		181	%
1997		$  9.84		5.21	%		1.75	%		4.89	%		0.11	%		$    140		174	%
1998		$10.14		7.97	%		1.72	%		4.55	%		0.05	%		$    533		111	%
1999		$  9.52		(1.51	%)		1.72	%		4.57	%		0.03	%		$    819		49	%
2000(4)		$  9.34		0.64	%		1.71	%(5)		5.17	%(5)		—			$    836		32	%

(1)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000. (Unaudited)

(5)	Computed on an annualized basis.

(6)	Reflects operations for the period from March 26, 1999 (date of initial public investment) to November 30, 1999.

(7)	Less than $0.01 per share.

---

---

Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, and Foreign Currency Transactions			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Net Realized Gain on Investment Transactions, Futures Contracts and Foreign Currency Transactions			Total Distributions
Wachovia Equity Fund
1996(1)		$12.43		0.03			2.40			2.43			(0.05	)		—			(0.05	)
1997		$14.81		0.17			2.43			2.60			(0.16	)		(1.86	)		(2.02	)
1998		$15.39		0.17			2.21			2.38			(0.17	)		(1.68	)		(1.85	)
1999		$15.92		0.12			3.38			3.50			(0.11	)		(1.89	)		(2.00	)
2000(4)		$17.42		0.06			1.54			1.60			(0.05	)		(0.51	)		(0.56	)
Wachovia Quantitative Equity Fund
1996(1)		$13.09		0.04			2.60			2.64			(0.06	)		—			(0.06	)
1997		$15.67		0.23			4.12			4.35			(0.23	)		(0.79	)		(1.02	)
1998		$19.00		0.23			3.06			3.29			(0.23	)		(1.75	)		(1.98	)
1999		$20.31		0.18			3.14			3.32			(0.17	)		(2.42	)		(2.59	)
2000(4)		$21.04		0.05			1.10			1.15			(0.05	)		—			(0.05	)
Wachovia Growth & Income Fund
1998(7)		$22.31		0.09			1.24			1.33			(0.09	)		—			(0.09	)
1999		$23.55		0.12			4.24			4.36			(0.14	)		(2.89	)		(3.03	)
2000(4)		$24.88		0.03			0.60			0.63			(0.03	)		(4.26	)		(4.29	)
Wachovia Equity Index Fund
1996(1)		$13.37		0.09	(6)		2.60			2.69			(0.08	)		—			(0.08	)
1997		$15.98		0.29			3.86			4.15			(0.31	)		(0.91	)		(1.22	)
1998		$18.91		0.30			3.92			4.22			(0.29	)		(0.40	)		(0.69	)
1999		$22.44		0.33			4.13			4.46			(0.32	)		(0.37	)		(0.69	)
2000(4)		$26.21		0.15			0.56			0.71			(0.17	)		(0.53	)		(0.70	)
Wachovia Special Values Fund
1996(1)		$13.62		0.03			2.02			2.05			—			—			—
1997		$15.67		0.16			4.53			4.69			(0.08	)		(1.61	)		(1.69	)
1998		$18.67		0.21			(0.84	)		(0.63	)		(0.15	)		(1.71	)		(1.86	)
1999		$16.18		0.30			0.54			0.84			(0.20	)		(0.75	)		(0.95	)
2000(4)		$16.07		0.16			0.70			0.86			(0.32	)		(0.52	)		(0.84	)
Wachovia Emerging Markets Fund
1996(1)		$11.92		0.01	(6)		(0.26	)		(0.25	)		—			—			—
1997		$11.67		0.07			(0.50	)		(0.43	)		(0.11	)		—			(0.11	)
1998		$11.13		0.13			(2.69	)		(2.56	)		(0.13	)		—			(0.13	)
1999		$  8.44		0.04			3.34			3.38			(0.07	)		—			(0.07	)
2000(4)		$11.75		0.04			0.40			0.44			(0.14	)		—			(0.14	)
Wachovia Personal Equity Fund
1999(8)		$10.00		0.02			0.67			0.69			(0.01	)		—			(0.01	)
2000(4)		$10.68		0.02			0.29			0.31			(0.02	)		(0.19	)		(0.21	)
Wachovia Balanced Fund
1996(1)		$11.68		0.08			1.63			1.71			(0.09	)		—			(0.09	)
1997		$13.30		0.38			1.39			1.77			(0.37	)		(1.44	)		(1.81	)
1998		$13.26		0.42			1.37			1.79			(0.41	)		(0.90	)		(1.31	)
1999		$13.74		0.32			1.44			1.76			(0.34	)		(1.69	)		(2.03	)
2000(4)		$13.47		0.18			0.74			0.92			(0.16	)		(0.09	)		(0.25	)
Wachovia Fixed Income Fund
1996(1)		$  9.45		0.17			0.40			0.57			(0.19	)		—			(0.19	)
1997		$  9.83		0.57			0.03			0.60			(0.58	)		—			(0.58	)
1998		$  9.85		0.56			0.29			0.85			(0.56	)		—			(0.56	)
1999		$10.14		0.53			(0.58	)		(0.05	)		(0.53	)		(0.04	)		(0.57	)
2000(4)		$  9.52		0.29			(0.18	)		0.11			(0.29	)		—			(0.29	)

(1)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Reflects operations for the period from March 30, 1998 (date of initial public investment) to November 30, 1998.

(8)	Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

(9)	Less than 0.01%.

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Year Ended November 30,		Net Asset Value, end of period		Total Return(2)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net Investment income			Expenses Waiver/ Reimbursement(3)
Wachovia Equity Fund
1996(1)		$14.81		19.57	%		0.90	%(5)		0.91	%(5)		0.19	%(5)		$129,205		64	%
1997		$15.39		20.44	%		0.90	%		1.18	%		0.07	%		$156,238		124	%
1998		$15.92		17.69	%		0.90	%		1.13	%		—			$200,324		150	%
1999		$17.42		24.52	%		0.84	%		0.73	%		—			$223,878		45	%
2000(4)		$18.46		9.35	%		0.84	%(5)		0.69	%(5)		—			$269,770		24	%
Wachovia Quantitative Equity Fund
1996(1)		$15.67		20.19	%		0.87	%(5)		1.19	%(5)		0.11	%(5)		$152,571		44	%
1997		$19.00		29.60	%		0.87	%		1.35	%		0.08	%		$183,019		74	%
1998		$20.31		19.38	%		0.87	%		1.21	%		—			$207,343		38	%
1999		$21.04		16.97	%		0.86	%		0.67	%		—			$598,420		34	%
2000(4)		$22.14		5.45	%		0.82	%(5)		0.51	%(5)		—			$601,423		7	%
Wachovia Growth & Income Fund
1998(7)		$23.55		6.03	%		0.86	%(5)		0.90	%(5)		0.08	%(5)		$206,176		24	%
1999		$24.88		20.73	%		0.84	%		0.49	%		—			$254,919		44	%
2000(4)		$21.22		2.34	%		0.82	%(5)		0.24	%(5)		—			$223,415		12	%
Wachovia Equity Index Fund
1996(1)		$15.98		20.14	%		0.48	%(5)		1.92	%(5)		0.06	%(5)		$213,833		12	%
1997		$18.91		27.91	%		0.47	%		1.72	%		0.02	%		$248,030		4	%
1998		$22.44		23.05	%		0.45	%		1.46	%		—			$291,708		29	%
1999		$26.21		20.24	%		0.44	%		1.32	%		—			$361,934		11	%
2000(4)		$26.22		2.69	%		0.41	%(5)		1.15	%(5)		—			$346,604		9	%
Wachovia Special Values Fund
1996(1)		$15.67		15.05	%		1.15	%(5)		1.76	%(5)		0.24	%(5)		$  58,697		38	%
1997		$18.67		33.29	%		1.11	%		0.88	%		0.02	%		$  84,501		46	%
1998		$16.18		(3.59	%)		1.00	%		1.26	%		—			$  90,550		20	%
1999		$16.07		5.61	%		0.98	%		1.85	%		0.00	%(9)		$109,969		44	%
2000(4)		$16.09		5.64	%		0.96	%(5)		1.91	%(5)		—			$122,528		19	%
Wachovia Emerging Markets Fund
1996(1)		$11.67		0.00	%		0.63	%(5)		0.45	%(5)		0.13	%(5)		$123,036		30	%
1997		$11.13		(3.73	%)		1.54	%		0.54	%		—			$139,700		60	%
1998		$  8.44		(23.34	%)		1.44	%		1.04	%		—			$130,898		51	%
1999		$11.75		40.39	%		1.35	%		0.61	%		—			$178,443		56	%
2000(4)		$12.05		3.60	%		1.30	%(5)		0.55	%(5)		—			$187,930		28	%
Wachovia Personal Equity Fund
1999(8)		$10.68		6.85	%		0.90	%(5)		0.33	%(5)		0.01	%(5)		$444,453		11	%
2000(4)		$10.78		2.90	%		0.81	%(5)		0.36	%(5)		—			$440,310		15	%
Wachovia Balanced Fund
1996(1)		$13.30		14.69	%		0.76	%(5)		2.85	%(5)		0.16	%(5)		$235,791		99	%
1997		$13.26		15.37	%		0.77	%		3.02	%		0.16	%		$250,083		143	%
1998		$13.74		14.77	%		0.76	%		3.15	%		0.09	%		$290,833		124	%
1999		$13.47		14.21	%		0.76	%		2.50	%		0.08	%		$424,506		66	%
2000(4)		$14.14		6.90	%		0.76	%(5)		2.52	%(5)		0.05	%(5)		$473,092		31	%
Wachovia Fixed Income Fund
1996(1)		$  9.83		6.12	%		0.75	%(5)		6.33	%(5)		0.14	%(5)		$175,836		181	%
1997		$  9.85		6.38	%		0.74	%		5.91	%		0.11	%		$185,398		174	%
1998		$10.14		8.92	%		0.72	%		5.55	%		0.05	%		$212,886		111	%
1999		$  9.52		(0.53	%)		0.72	%		5.65	%		0.03	%		$487,982		49	%
2000(4)		$  9.34		1.15	%		0.71	%(5)		6.17	%(5)		—			$484,547		32	%

(1)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Per share information is based on average shares outstanding.

(7)	Reflects operations for the period from March 30, 1998 (date of initial public investment) to November 30, 1998.

(8)	Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

(9)	Less than 0.01%.

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Year Ended November 30,		Net Asset Value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain/(Loss) on Investments and Futures Contracts			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Net Realized Gain on Investment Transactions and Futures Contracts			Total Distributions
Wachovia Intermediate Fixed Income Fund
1998(1)		$10.12		0.42			0.25			0.67			(0.41	)		—			(0.41	)
1999		$10.38		0.53			(0.61	)		(0.08	)		(0.53	)		(0.20	)		(0.73	)
2000(4)		$  9.57		0.28			(0.19	)		0.09			(0.28	)		(0.01	)		(0.29	)
Wachovia Short-Term Fixed Income Fund
1996(6)		$  9.67		0.11	(7)		0.18			0.29			(0.17	)		—			(0.17	)
1997		$  9.79		0.56			(0.05	)		0.51			(0.53	)		—			(0.53	)
1998		$  9.77		0.54			0.14			0.68			(0.53	)		—			(0.53	)
1999		$  9.92		0.51			(0.25	)		0.26			(0.55	)		—			(0.55	)
2000(4)		$  9.63		0.26			(0.13	)		0.13			(0.29	)		—			(0.29	)
Wachovia Georgia Municipal Bond Fund
1996(6)		$10.71		0.17			0.29			0.46			(0.17	)		—			(0.17	)
1997		$11.00		0.47			0.13			0.60			(0.47	)		(0.02	)		(0.49	)
1998		$11.11		0.45			0.27			0.72			(0.45	)		(0.00	)(8)		(0.45	)
1999		$11.38		0.45			(0.74	)		(0.29	)		(0.45	)		(0.03	)		(0.48	)
2000(4)		$10.61		0.25			(0.20	)		0.05			(0.25	)		—			(0.25	)
Wachovia North Carolina Municipal Bond Fund
1996(6)		$10.71		0.16			0.32			0.48			(0.16	)		—			(0.16	)
1997		$11.03		0.46			0.13			0.59			(0.45	)		(0.02	)		(0.47	)
1998		$11.15		0.46			0.32			0.78			(0.46	)		(0.01	)		(0.47	)
1999		$11.46		0.45			(0.68	)		(0.23	)		(0.45	)		(0.06	)		(0.51	)
2000(4)		$10.72		0.24			(0.24	)		0.00			(0.24	)		(0.01	)		(0.25	)
Wachovia South Carolina Municipal Bond Fund
1996(6)		$10.73		0.20			0.32			0.52			(0.20	)		—			(0.20	)
1997		$11.05		0.55			0.12			0.67			(0.55	)		(0.05	)		(0.60	)
1998		$11.12		0.54			0.24			0.78			(0.54	)		(0.00	)(8)		(0.54	)
1999		$11.36		0.52			(0.77	)		(0.25	)		(0.52	)		(0.02	)		(0.54	)
2000(4)		$10.57		0.26			(0.18	)		0.08			(0.26	)		(0.00	)(8)		(0.26	)
Wachovia Virginia Municipal Bond Fund
1998(1)		$10.34		0.32			0.15			0.47			(0.32	)		—			(0.32	)
1999		$10.49		0.47			(0.65	)		(0.18	)		(0.47	)		—			(0.47	)
2000(4)		$  9.84		0.24			(0.17	)		0.07			(0.24	)		—			(0.24	)

(1)	Reflects operations for the period from March 30, 1998 (date of initial public investment) to November 30, 1998.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(7)	Per share information is based on average shares outstanding.

(8)	Less than $0.01 per share

(9)	Less than 0.01%.

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Year Ended November 30,		Net Asset Value, end of period		Total Return(2)			Ratios to Average Net Assets									Net Assets, end of period (000 omitted)		Portfolio Turnover Rate
							Expenses			Net Investment income			Expenses Waiver/ Reimbursement(3)
Wachovia Intermediate Fixed Income Fund
1998(1)		$10.38		7.11	%		0.74	%(5)		5.39	%(5)		0.14	%(5)		$  87,831		57	%
1999		$  9.57		(0.77	%)		0.74	%		5.46	%		0.04	%		$138,508		89	%
2000(4)		$  9.37		0.92	%		0.74	%(5)		5.80	%(5)		0.00	%(5)(9)		$129,337		26	%
Wachovia Short-Term Fixed Income Fund
1996(6)		$  9.79		3.00	%		0.64	%(5)		5.77	%(5)		0.19	%(5)		$116,138		145	%
1997		$  9.77		5.33	%		0.63	%		5.63	%		0.20	%		$  91,063		215	%
1998		$  9.92		7.19	%		0.63	%		5.47	%		0.10	%		$  98,433		135	%
1999		$  9.63		2.70	%		0.63	%		5.26	%		0.14	%		$  38,323		25	%
2000(4)		$  9.47		1.38	%		0.63	%(5)		5.71	%(5)		0.17	%(5)		$  37,479		44	%
Wachovia Georgia Municipal Bond Fund
1996(6)		$11.00		4.31	%		0.89	%(5)		4.84	%(5)		1.57	%(5)		$    6,803		14	%
1997		$11.11		5.63	%		0.92	%		4.24	%		1.06	%		$  12,308		25	%
1998		$11.38		6.62	%		0.91	%		3.96	%		0.34	%		$  17,030		14	%
1999		$10.61		(2.59	%)		0.68	%		4.46	%		0.37	%		$108,755		48	%
2000(4)		$10.41		0.51	%		0.60	%(5)		4.80	%(5)		0.33	%(5)		$101,155		23	%
Wachovia North Carolina Municipal Bond Fund
1996(6)		$11.03		4.55	%		0.84	%(5)		4.16	%(5)		0.65	%(5)		$  28,283		7	%
1997		$11.15		5.57	%		0.85	%		4.16	%		0.42	%		$  44,104		17	%
1998		$11.46		7.09	%		0.85	%		4.05	%		0.16	%		$  56,760		9	%
1999		$10.72		(2.09	%)		0.66	%		4.27	%		0.30	%		$434,523		11	%
2000(4)		$10.47		(0.05	%)		0.60	%(5)		4.51	%(5)		0.26	%(5)		$409,081		11	%
Wachovia South Carolina Municipal Bond Fund
1996(6)		$11.05		4.86	%		0.57	%(5)		5.56	%(5)		0.54	%(5)		$  36,511		20	%
1997		$11.12		6.23	%		0.58	%		5.01	%		0.48	%		$  43,881		12	%
1998		$11.36		7.15	%		0.58	%		4.77	%		0.36	%		$  54,770		6	%
1999		$10.57		(2.24	%)		0.58	%		4.85	%		0.35	%		$288,800		9	%
2000(4)		$10.39		0.77	%		0.58	%(5)		4.98	%(5)		0.29	%(5)		$275,506		12	%
Wachovia Virginia Municipal Bond Fund
1998(1)		$10.49		4.61	%		0.68	%(5)		4.62	%(5)		0.33	%(5)		$  99,154		15	%
1999		$  9.84		(1.76	%)		0.65	%		4.64	%		0.29	%		$129,811		29	%
2000(4)		$  9.67		0.70	%		0.60	%(5)		4.88	%(5)		0.30	%(5)		$121,927		10	%

(1)	Reflects operations for the period from March 30, 1998 (date of initial public investment) to November 30, 1998.

(2)	Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3)	This contractual expense decrease is reflected in both the expense and net investment income ratios.

(4)	For six-months ended May 31, 2000 (Unaudited).

(5)	Computed on an annualized basis.

(6)	Reflects operations for the period from July 22, 1996 (date of initial public investment) to November 30, 1996.

(7)	Per share information is based on average shares outstanding.

(8)	Less than $0.01 per share.

(9)	Less than 0.01%.

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Portfolio		Investment Objective
Wachovia Equity Fund (“Equity Fund”)		To produce growth of principal and income.
Wachovia Quantitative Equity Fund (“Quantitative Equity Fund”)		To provide growth of principal and income.
Wachovia Growth & Income Fund (“Growth & Income Fund”)		To provide total return through growth of capital and current income.
Wachovia Equity Index Fund (“Equity Index Fund”)		To provide a total return that approximates that of the stock market as measured by the S&P 500 Index.
Wachovia Special Values Fund (“Special Values Fund”)		To produce growth of principal.
Wachovia Emerging Markets Fund (“Emerging Markets Fund”)		To produce long-term capital appreciation.
Wachovia Personal Equity Fund (“Personal Equity Fund”)		To produce growth of principal and income while minimizing the impact of taxes on shareholder returns.
Wachovia Balanced Fund (“Balanced Fund”)		To provide long-term growth of principal and current income.
Wachovia Fixed Income Fund (“Fixed Income Fund”)		To seek a high level of total return.
Wachovia Intermediate Fixed Income Fund (“Intermediate Fixed Income Fund”)		To seek current income consistent with preservation of capital.
Wachovia Short-Term Fixed Income Fund (“Short-Term Fixed Income Fund”)		To produce a high level of current income.
THE WACHOVIA MUNICIPAL FUNDS
Portfolio		Investment Objective
Wachovia Georgia Municipal Bond Fund (“Georgia Municipal Bond Fund”)**		To provide current income which is exempt from federal regular income tax and the income taxes imposed by the State of Georgia.
Wachovia North Carolina Municipal Bond Fund (“North Carolina Municipal Bond Fund”)**		To provide current income which is exempt from federal regular income tax and the income taxes imposed by the State of North Carolina.
Wachovia South Carolina Municipal Bond Fund (“South Carolina Municipal Bond Fund”)**		To provide current income which is exempt from federal regular income tax and South Carolina state income taxes.

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Portfolio		Investment Objective
Wachovia Virginia Municipal Bond Fund (“Virginia Municipal Bond Fund”)**		To provide a high level of current income that is exempt from federal regular income tax and the income tax imposed by the Commonwealth of Virginia as is consistent with the preservation of capital.

*

In addition, The Wachovia Funds offer the following money market portfolios, each having distinctive investment objectives and policies: Wachovia Money Market Fund, Wachovia Prime Cash Management Fund, Wachovia Tax-Free Money Market Fund, and Wachovia U.S. Treasury Money Market Fund. The financial statements of the money market portfolios are presented separately. The Wachovia Funds also offer Wachovia Executive Fixed Income Fund and Wachovia Executive Equity Fund, which during the reporting period had no assets.

**	Non-diversified portfolio.

		Fund Shares Issued		Common Trust Fund Net Assets Received		Unrealized Appreciation/ (Depreciation)(1)
Quantitative Equity Fund		18,308,897		$373,318,412		$210,964,004
Special Values Fund		368,577		6,217,889		740,648
Personal Equity Fund		42,839,470		428,394,696		163,566,983
Balanced Fund		19,580,102		249,842,105		32,051,587
Fixed Income Fund		27,808,700		265,851,176		(7,410,780	)
Intermediate Fixed Income Fund		6,139,436		59,122,769		101,597
Short-Term Fixed Income Fund		737,496		7,116,836		12,696
Georgia Municipal Bond Fund		8,083,520		88,191,199		1,136,482
North Carolina Municipal Bond Fund		33,367,726		366,043,958		6,254,172
South Carolina Municipal Bond Fund		20,754,532		225,809,305		5,863,930
Virginia Municipal Bond Fund		3,242,961		32,818,769		(57,431	)

(1)	Unrealized appreciation/(depreciation) is included in the Common Trust Fund net assets acquired above.

INVESTMENT VALUATIONS— Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue, and any other factors or market data the pricing service deems relevant. U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, unlisted securities and private placement securities are generally valued at the latest bid prices as furnished by an independent pricing service. Listed equity securities and investments in closed-end investment companies are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of sixty days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. With respect to valuation of fo reign securities, trading in foreign cities may be completed at times which vary from the closing of the New York Stock Exchange. Therefore, foreign securities are valued at the latest closing price on the exchange on which they are traded prior to the closing of the New York Stock Exchange. Foreign securities quoted in foreign currencies are translated into US dollars at the foreign exchange rate in effect at noon, eastern time, on the day the value of the foreign security is determined.

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REPURCHASE AGREEMENTS— It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank’s vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement’s collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds’ adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Boards of Trustees (the “Trustees”). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. The Funds, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

INVESTMENT INCOME , EXPENSES AND DISTRIBUTIONS— Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the “Code”). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Certain dividends from foreign securities may be recorded after the ex-dividend date based upon when the Fund is reasonably able to obtain information. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Funds offer multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the respective Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

FEDERAL TAXES— It is the Funds’ policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal tax is necessary.

Withholding taxes on foreign interest, dividends and capital gains in the Emerging Markets Fund have been provided for in accordance with understanding of the applicable country’s tax rules and rates.

At November 30, 1999, the Funds listed below, for federal tax purposes, had capital loss carryforwards, as noted, which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax.

Fund		Total Tax Loss Carryforward		Amount Expiring In 2002		Amount Expiring In 2003		Amount Expiring In 2004		Amount Expiring In 2005		Amount Expiring In 2006		Amount Expiring In 2007
Emerging Markets Fund		$26,221,931		$            —		$        —		$        —		$939,725		$25,282,206		$            —
Fixed Income Fund		2,177,586		—		—		—		—		—		2,177,586
Short-Term Fixed Income Fund		3,064,915		2,260,880		250,580		467,184		86,271		—		—
Georgia Municipal Bond Fund		575,481		—		—		—		—		—		575,481
Virginia Municipal Bond Fund		1,435,169		950,642		—		484,527		—		—		—

WHEN -ISSUED AND DELAYED DELIVERY TRANSACTIONS— The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

FUTURES CONTRACTS— The Funds listed below purchase stock index or bond futures contracts to manage cashflows, enhance yield, and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Funds listed below are required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Funds receive from or pay to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Funds recognize a realized gain or loss.

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For the period ended May 31, 2000, the following Funds had realized gains/losses on futures contracts as follows:

Fund		Realized Gain (Loss) on Futures Contracts
Equity Fund		$  (740,098	)
Quantitative Equity Fund		827,694
Growth & Income Fund		1,210,273
Equity Index Fund		1,754,835
Special Values Fund		1,061,371
Personal Equity Find		383,862
Balanced Fund		(56,407	)
Fixed Income Fund		(1,118,318	)
Intermediate Fixed Income Fund		114,382

Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities.

At May 31, 2000, the Funds had outstanding futures contracts as set forth below:

EQUITY FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation
June 2000		65 S&P 500 Index Futures		Long		$      79,180
QUANTITATIVE EQUITY FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized (Depreciation)
June 2000		74 S&P 500 Index Futures		Long		$    (58,166)
GROWTH & INCOME FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation
June 2000		31 S&P 500 Index Futures		Long		$    301,102
EQUITY INDEX FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation
June 2000		78 S&P 500 Index Futures		Long		$    109,077
SPECIAL VALUES FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized (Depreciation)
June 2000		40 Russell 2000 Index Futures		Long		$(1,829,945)
PERSONAL EQUITY FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation
June 2000		48 S&P 500 Index Futures		Long		$      55,266

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BALANCED FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation/ (Depreciation)
June 2000		119 S&P 500 Index Futures		Long		$(1,036,252	)
June 2000		150 2-Year U.S. Treasury Notes Futures		Short		90,680
June 2000		157 4-Year U.S. Treasury Notes Futures		Short		(87,956	)
June 2000		72 10-Year U.S. Treasury Notes Futures		Short		(78,062	)
						$(1,111,590	)
FIXED INCOME FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation/ (Depreciation)
September 2000		90 10-Year U.S. Treasury Agency Futures		Long		$      26,179
June 2000		55 30-Year U.S. Treasury Bonds Futures		Long		(154,059	)
June 2000		345 2-Year U.S. Treasury Notes Futures		Short		204,931
June 2000		265 5-Year U.S. Treasury Notes Futures		Short		132,636
June 2000		388 10-Year U.S. Treasury Notes Futures		Short		110,012
						$    319,699
INTERMEDIATE FIXED INCOME FUND
Expiration Date		Contract to Deliver/Receive		Position		Unrealized Appreciation/ (Depreciation)
June 2000		15 2-Year U.S. Treasury Notes Futures		Short		$        9,051
June 2000		28 5-Year U.S. Treasury Notes Futures		Short		(8,076	)
June 2000		22 10-Year U.S. Treasury Notes Futures		Short		(14,828	)
						$    (13,853	)

FOREIGN EXCHANGE CONTRACTS— Emerging Markets Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. Emerging Markets Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the securities against currency fluctuations. Risks may arise upon entering into these contracts from the potential inability of counter-parts to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency translations are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purpose as unrealized until the settlement date. At May 31, 2000, Emerging Markets Fund had no outstanding foreign currency commitments.

FOREIGN CURRENCY TRANSLATION— The accounting records of Emerging Markets Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (“FC”) are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

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RESTRICTED SECURITIES— Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund’s restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Funds’ pricing committee.

USE OF ESTIMATES— The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

OTHER— Investment transactions are accounted for on a trade date basis.

		Equity Fund												Quantitative Equity Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		1,255,160			$22,789,263			4,052,281			$63,873,580			453,232			$  9,799,251			953,578			$19,776,828
Shares issued to shareholders in payment of distributions declared		207,259			3,657,403			461,898			6,725,775			3,533			74,762			485,602			10,032,446
Shares redeemed		(1,406,815	)		(25,557,345	)		(1,021,992	)		(16,434,402	)		(498,085	)		(10,806,214	)		(1,269,823	)		(26,574,214	)
Net change resulting from   Class A Shares transactions		55,604			$      889,321			3,492,187			$54,164,953			(41,320	)		$    (932,201	)		169,357			$  3,235,060
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class B Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		88,412			$  1,616,899			143,892			$  2,281,670			51,808			$  1,115,371			210,364			$  4,363,910
Shares issued to shareholders in payment of distributions declared		14,957			262,347			46,508			673,905			—			—			122,061			2,518,535
Shares redeemed		(27,321	)		(500,456	)		(32,015	)		(512,884	)		(81,271	)		(1,755,860	)		(118,994	)		(2,474,854	)
Net change resulting from   Class B Shares transactions		76,048			$  1,378,790			158,385			$  2,442,691			(29,463	)		$    (640,489	)		213,431			$  4,407,591

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		Equity Fund (continued)												Quantitative Equity Fund (continued)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		2,771,713			$51,082,008			3,776,292			$60,058,148			572,706			$12,455,793			1,025,164			$  21,075,310
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			—			—			—			—			18,308,897			373,318,412
Shares issued to shareholders in payment of distributions declared		266,635			4,704,812			1,183,674			17,218,904			17,853			378,167			1,137,268			23,539,620
Shares redeemed		(1,277,169	)		(23,312,730	)		(4,695,161	)		(73,803,563	)		(1,867,753	)		(40,653,541	)		(2,241,018	)		(46,184,830	)
Net change resulting from   Class Y Shares transactions		1,761,179			$32,474,090			264,805			$  3,473,489			(1,277,194	)		$(27,819,581	)		18,230,311			$371,748,512
Net change resulting from   fund shares transactions		1,892,831			$34,742,201			3,915,377			$60,081,133			(1,347,977	)		$(29,392,271	)		18,613,099			$379,391,163
		Growth & Income Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars
Shares sold		136,553			$  3,117,397			281,205			$  6,454,877
Shares issued to shareholders in payment of distributions declared		735,534			15,810,252			755,024			16,039,988
Shares redeemed		(360,316	)		(7,887,315	)		(2,764,933	)		(66,276,113	)
Net change resulting from   Class A Shares transactions		511,771			$11,040,334			(1,728,704	)		$(43,781,248	)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars
Shares sold		419,741			$  8,954,960			3,064,027			$72,849,243
Shares issued to shareholders in payment of distributions declared		706,755			15,200,324			201,549			4,288,610
Shares redeemed		(840,795	)		(18,822,336	)		(1,776,432	)		(40,947,570	)
Net change resulting from   Class Y Shares transactions		285,701			$  5,332,948			1,489,144			$36,190,283
Net change resulting from   fund shares transactions		797,472			$16,373,282			(239,560	)		$  (7,590,965	)

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		Equity Index Fund												Special Values Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		902,071			$23,595,586			2,433,185			$59,425,268			560,050			$  8,818,365			1,648,997			$25,747,530
Shares issued to shareholders in payment of distributions declared		172,357			4,539,758			161,487			3,783,553			208,714			3,225,879			221,638			3,320,559
Shares redeemed		(808,589	)		(21,327,945	)		(1,486,793	)		(36,669,214	)		(820,307	)		(12,915,375	)		(1,475,880	)		(23,294,839	)
Net change resulting from   Class A Shares transactions		265,839			$  6,807,399			1,107,879			$26,539,607			(51,543	)		$    (871,131	)		394,755			$  5,773,250
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Period Ended November 30, 1999(1)
Class B Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		—			—			—			—			3,172			$        49,796			22,330			$      360,128
Shares issued to shareholders in payment of distributions declared		—			—			—			—			1,093			16,863			—			—
Shares redeemed		—			—			—			—			(1,456	)		(23,177	)		(440	)		(7,001	)
Net change resulting from   Class B Shares transactions		—			—			—			—			2,809			$        43,482			21,890			$      353,127
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		2,078,662			$55,204,297			3,624,816			$89,366,742			1,171,055			$18,566,636			1,866,656			$29,627,043
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			—			—			—			—			368,577			6,217,889
Shares issued to shareholders in payment of distributions declared		347,960			9,169,553			359,520			8,442,713			254,662			3,926,907			269,815			4,041,990
Shares redeemed		(3,016,310	)		(79,803,493	)		(3,174,724	)		(78,112,061	)		(652,425	)		(10,195,145	)		(1,259,252	)		(20,017,864	)
Net change resulting from   Class Y Shares transactions		(589,688	)		$(15,429,643	)		809,612			$19,697,394			773,292			$12,298,398			1,245,796			$19,869,058
Net change resulting from   fund shares transactions		(323,849	)		$  (8,622,244	)		1,917,491			$46,237,001			724,558			$11,470,749			1,662,441			$25,995,435

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		Emerging Markets Fund												Personal Equity Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Period Ended November 30, 1999(1)
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		1,419,597			$18,460,162			1,435,937			$13,700,861			11,681			$      126,397			10,285			$        108,394
Shares issued to shareholders in payment of distributions declared		10,868			146,947			5,838			48,574			230			2,501			—			—
Shares redeemed		(1,089,662	)		(14,179,085	)		(1,107,036	)		(11,087,791	)		(11,320	)		(126,558	)		—			—
Net change resulting from   Class A Shares transactions		340,803			$  4,428,024			334,739			$  2,661,644			591			$          2,340			10,285			$        108,394
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Period Ended November 30, 1999(1)
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		1,794,957			$24,270,890			2,120,687			$21,432,137			749,551			$  8,196,581			212,717			$    2,135,793
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			—			—			—			—			42,839,470			428,394,696
Shares issued to shareholders in payment of distributions declared		49,858			673,583			40,439			336,057			734,450			7,990,769			6			63
Shares redeemed		(1,425,465	)		(18,972,143	)		(2,487,448	)		(24,885,092	)		(2,263,828	)		(24,873,289	)		(1,422,396	)		(14,516,568	)
Net change resulting from   Class Y Shares transactions		419,350			$  5,972,330			(326,322	)		$  (3,116,898	)		(779,827	)		$  (8,685,939	)		41,629,797			$416,013,984
Net change resulting from   fund shares transactions		760,153			$10,400,354			8,417			$    (455,254	)		(779,236	)		$  (8,683,599	)		41,640,082			$416,122,378
(1) Reflects operations for the period from July 30, 1999 (date of initial public investment) to November 30, 1999.

		Balanced Fund												Fixed Income Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		1,266,918			$17,673,793			13,302,993			$175,398,809			1,024,736			$  9,634,277			5,871,429			$58,049,075
Shares issued to shareholders in payment of distributions declared		254,697			3,492,839			1,655,692			21,296,221			209,476			1,968,338			303,232			2,942,729
Shares redeemed		(1,939,492	)		(27,289,501	)		(8,386,327	)		(110,347,891	)		(1,472,935	)		(13,842,946	)		(1,305,306	)		(12,764,043	)
Net change resulting from   Class A Shares transactions		(417,877	)		$  (6,122,869	)		6,572,358			$  86,347,139			(238,723	)		$  (2,240,331	)		4,869,355			$48,227,761
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class B Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		113,000			$  1,580,904			482,978			$    6,309,015			11,374			$      105,687			34,614			$      346,537
Shares issued to shareholders in payment of distributions declared		20,301			277,422			168,767			2,160,724			1,493			14,027			2,744			26,754
Shares redeemed		(94,830	)		(1,329,526	)		(111,088	)		(1,451,271	)		(9,488	)		(89,059	)		(3,870	)		(37,172	)
Net change resulting from   Class B Shares transactions		38,471			$      528,800			540,657			$    7,018,468			3,379			$        30,655			33,488			$      336,119

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		Balanced Fund (continued)												Fixed Income Fund (continued)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		4,220,792			$61,307,800			2,668,388			$  35,085,877			5,344,751			$50,296,608			10,929,844			$107,071,894
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			19,580,102			249,842,105			—			—			27,808,700			265,851,176
Shares issued to shareholders in payment of distributions declared		307,958			4,213,255			2,693,593			34,392,661			341,272			3,203,724			680,497			6,648,424
Shares redeemed		(2,582,425	)		(36,314,653	)		(14,589,443	)		(192,444,437	)		(5,096,722	)		(47,906,744	)		(9,142,482	)		(89,531,987	)
Net change resulting from   Class Y Shares transactions		1,946,325			$29,206,402			10,352,640			$126,876,206			589,301			$  5,593,588			30,276,559			$290,039,507
Net change resulting from   fund shares transactions		1,566,919			$23,612,333			17,465,655			$220,241,813			353,957			$  3,383,912			35,179,402			$338,603,387
		Intermediate Fixed Income Fund												Short-Term Fixed Income Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		528,401			$  4,967,622			9,273			$          90,669			73,964			$      704,567			334,823			$    3,271,760
Shares issued to shareholders in payment of distributions declared		7,650			72,042			25,998			258,389			28,639			272,194			53,919			526,016
Exchange from Class Y shares		—			—			—			—			—			—			—			—
Shares redeemed		(571,979	)		(5,374,095	)		(158,864	)		(1,556,247	)		(233,789	)		(2,224,000	)		(360,394	)		(3,523,088	)
Net change resulting from   Class A Shares transactions		(35,928	)		$    (334,431	)		(123,593	)		$    (1,207,189	)		(131,186	)		$  (1,247,239	)		28,348			$        274,688
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		1,009,943			$  9,507,327			2,073,597			$  20,392,480			751,652			$  7,206,783			1,090,901			$  10,708,051
Exchange from Class A shares		—			—			—			—			—			—			—			—
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			6,139,436			59,122,769			—			—			737,496			7,116,836
Shares issued to shareholders in payment of distributions declared		19,907			187,708			39,790			392,705			79,773			758,141			232,891			2,277,295
Shares redeemed		(1,693,513	)		(15,977,092	)		(2,241,312	)		(22,106,920	)		(854,808	)		(8,152,890	)		(8,005,559	)		(78,981,570	)
Net change resulting from   Class Y Shares transactions		(663,663	)		$  (6,282,057	)		6,011,511			$  57,801,034			(23,383	)		$    (187,966	)		(5,944,271	)		$  (58,879,388	)
Net change resulting from   fund shares transactions		(699,591	)		$  (6,616,488	)		5,887,918			$  56,593,845			(154,569	)		$  (1,435,205	)		(5,915,923	)		$  (58,604,700	)

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		Georgia Municipal Bond Fund												North Carolina Municipal Bond Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		31,788			$      335,174			33,237			$      371,656			34,526			$      366,181			90,928			$    1,014,339
Shares issued to shareholders in payment of distributions declared		6,741			70,779			19,481			215,076			10,341			109,449			28,563			317,676
Shares redeemed		(128,954	)		(1,354,812	)		(145,519	)		(1,595,698	)		(136,312	)		(1,449,257	)		(145,558	)		(1,600,626	)
Net change resulting from   Class A Shares transactions		(90,425	)		$    (948,859	)		(92,801	)		$  (1,008,966	)		(91,445	)		$    (973,627	)		(26,067	)		$      (268,611	)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999						Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Shares sold		805,952			$  8,452,754			1,193,251			$13,142,034			1,971,883			20,834,617			3,602,963			$  39,881,430
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			8,083,520			88,191,199			—			—			33,367,726			366,043,958
Shares issued to shareholders in payment of distributions declared		3,748			39,371			6,888			75,864			32,267			341,233			35,745			399,376
Shares redeemed		(1,340,710	)		(14,025,826	)		(529,304	)		(5,769,696	)		(3,458,956	)		(36,658,409	)		(1,438,326	)		(15,643,547	)
Net change resulting from   Y Shares transactions		(531,010	)		$  (5,533,701	)		8,754,355			$95,639,401			(1,454,806	)		$(15,482,559	)		35,568,108			$390,681,217
Net change resulting from   fund shares transactions		(621,435	)		$  (6,482,560	)		8,661,554			$94,630,435			(1,546,251	)		$(16,456,186	)		35,542,041			$390,412,606
		South Carolina Municipal Bond Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars
Shares sold		101,509			$  1,052,171			499,667			$  5,542,698
Shares issued to shareholders in payment of distributions declared		68,690			718,569			181,068			1,989,742
Shares redeemed		(655,101	)		(6,846,017	)		(974,649	)		(10,649,307	)
Net change resulting from   Class A Shares transactions		(484,902	)		$  (5,075,277	)		(293,914	)		$  (3,116,867	)

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		South Carolina Municipal Bond Fund (continued)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars
Shares sold		1,338,538			$14,028,209			2,892,396			$  31,736,212
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			20,754,532			225,809,305
Shares issued to shareholders in payment of distributions declared		11,857			123,919			18,138			199,065
Shares redeemed		(2,178,290	)		(22,774,579	)		(1,154,051	)		(12,417,303	)
Net change resulting from   Class Y Shares transactions		(827,895	)		$  (8,622,451	)		22,511,015			$245,327,279
Net change resulting from   fund shares transactions		(1,312,797	)		$(13,697,728	)		22,217,101			$242,210,412
		Virginia Municipal Bond Fund
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class A Shares		Shares			Dollars			Shares			Dollars
Shares sold		348			$          3,387			24,086			$        251,062
Shares issued to shareholders in payment of distributions declared		11,042			107,598			27,430			279,843
Shares redeemed		(70,934	)		(689,221	)		(113,459	)		(1,154,829	)
Net change resulting from   Class A Shares transactions		(59,544	)		$    (578,236	)		(61,943	)		$      (623,924	)
		Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class Y Shares		Shares			Dollars			Shares			Dollars
Shares sold		641,955			$  6,248,251			2,556,035			$  26,045,020
Shares issued in connection with the tax-free transfer of assets from a Common Trust Fund		—			—			3,242,961			32,818,769
Shares issued to shareholders in payment of distributions declared		7,833			76,313			27,283			275,816
Shares redeemed		(1,228,947	)		(11,973,400	)		(2,089,477	)		(21,200,920	)
Net change resulting from   Class Y Shares transactions		(579,159	)		$  (5,648,836	)		3,736,802			$  37,938,685
Net change resulting from   fund shares transactions		(638,703	)		$  (6,227,072	)		3,674,859			$  37,314,761

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Fund		Annual Rate
Equity Fund		0.70%
Quantitative Equity Fund		0.70%
Growth & Income Fund		0.70%
Equity Index Fund		0.30%
Special Values Fund		0.80%
Emerging Markets Fund		1.00%
Personal Equity Fund		0.70%
Balanced Fund		0.70%
Fixed Income Fund		0.60%
Intermediate Fixed Income Fund		0.60%
Short-Term Fixed Income Fund		0.55%
Georgia Municipal Bond Fund		0.75%
North Carolina Municipal Bond Fund		0.75%
South Carolina Municipal Bond Fund		0.75%
Virginia Municipal Bond Fund		0.74%

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Fund		Purchases		Sales
Equity Fund		$140,404,734		$  83,158,499
Quantitative Equity Fund		47,267,172		85,028,889
Growth & Income Fund		38,309,720		78,765,818
Equity Index Fund		44,385,553		51,888,902
Special Values Fund		47,981,578		30,011,068
Emerging Markets Fund		57,742,485		59,525,756
Personal Equity Fund		62,797,574		79,428,541
Balanced Fund		203,188,463		218,517,407
Fixed Income Fund		207,699,853		176,990,748
Intermediate Fixed Income Fund		33,784,772		36,663,054
Short-Term Fixed Income Fund		25,220,869		19,629,318
Georgia Municipal Bond Fund		24,030,378		34,481,463
North Carolina Municipal Bond Fund		44,790,445		54,318,663
South Carolina Municipal Bond Fund		39,733,616		52,641,619
Virginia Municipal Bond Fund		12,203,242		15,870,336

Industry		% of Net Assets
Communication Services		18.0%
Finance		17.0%
Other		9.0%
Closed-End Investment Companies		8.8%
Basic Materials		7.6%
Technology		7.5%
Consumer Cyclicals		7.0%
Consumer Staples		6.0%
Energy		4.6%
Multi-Industry		4.1%
Utilities		3.7%
Capital Goods		2.7%
Transportation		2.1%
Health Care		1.8%

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Fund		% of Portfolio Guaranteed/Insured			% of Portfolio Backed by Largest Guarantor/Insurer
Georgia Municipal Bond Fund		31.4	%		15.9	%
North Carolina Municipal Bond Fund		19.8	%		11.9	%
South Carolina Municipal Bond Fund		64.5	%		28.4	%
Virginia Municipal Bond Fund		18.3	%		5.8	%

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TRUSTEES   James A. Hanley Samuel E. Hudgins D. Dean Kaylor Alvin J. Schexnider Charles S. Way, Jr.

OFFICERS   John W. McGonigle     President and Treasurer R. Edward Bowling     Vice President James E. Ostrowski     Vice President and Assistant Treasurer Gail Cagney     Secretary Peter J. Germain     Assistant Secretary

Federated Securities Corp., Distributor
Investment Company Act File No. 811-6504
Investment Company Act File No. 811-6201

831-27 (7/00)

Cusips 929901734
929901742
929901759
929901809
929901882
929901700
929901676
929901668
929901767
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929901858
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929902609
929902104
929902203
929902708
929902807

G01715-01 (7/00)