FIDELITY
(REGISTERED TRADEMARK)
MUNICIPAL MONEY MARKET
FUND
SEMIANNUAL REPORT
APRIL 30, 1998
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.
PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.
INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.
INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.
FINANCIAL STATEMENTS 51 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 55 NOTES TO THE FINANCIAL STATEMENTS.
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Low interest rates and subdued inflation were two main factors that
bolstered stock and bond markets in the U.S. during the first four
months of 1998. The stock market continued to soar to record heights
as corporate earnings proved to be stronger than expected and
investors shrugged off concerns about the effects of economic
difficulties in Asia. The Federal Reserve Board continued its steady
interest rate policy, which boosted the performance of bonds.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
FIDELITY MUNICIPAL MONEY MARKET 1.61% 3.34% 15.90% 45.08%
ALL TAX-FREE MONEY MARKET 1.52% 3.15% 14.96% 42.67%
FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the all tax-free money market
funds average which reflects the performance of municipal money market
funds with similar objectives tracked by IBC Financial Data, Inc. The
past six months average represents a peer group of 444 money market
funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY MUNICIPAL MONEY MARKET 3.34% 2.99% 3.79%
ALL TAX-FREE MONEY MARKET 3.15% 2.83% 3.61%
FUNDS AVERAGE
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
4/27/98 2/2/98 11/3/97 7/28/97 4/28/97
FIDELITY MUNICIPAL MONEY 3.64% 3.17% 3.29% 3.34% 3.76%
MARKET FUND
ALL TAX-FREE MONEY MARKET 3.47% 3.02% 3.13% 3.12% 3.57%
FUNDS AVERAGE
FIDELITY MUNICIPAL MONEY 5.69% 4.95% 5.14% 5.22% 5.88%
MARKET FUND TAX-EQUIVALENT
Row: 1, Col: 1, Value: 3.64
Row: 1, Col: 2, Value: 3.47
Row: 1, Col: 3, Value: 5.69
Row: 2, Col: 1, Value: 3.17
Row: 2, Col: 2, Value: 3.02
Row: 2, Col: 3, Value: 4.95
Row: 3, Col: 1, Value: 3.29
Row: 3, Col: 2, Value: 3.13
Row: 3, Col: 3, Value: 5.14
Row: 4, Col: 1, Value: 3.34
Row: 4, Col: 2, Value: 3.12
Row: 4, Col: 3, Value: 5.22
Row: 5, Col: 1, Value: 3.76
Row: 5, Col: 2, Value: 3.57
Row: 5, Col: 3, Value: 5.88
Fidelity Municipal
Money Market Fund
All Tax-Free Money
Market Funds
Average
Fidelity Municipal
Money Market Fund
Tax-Equivalent
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the all
tax-free money market funds average as tracked by IBC Financial Data,
Inc. Or you can look at the fund's tax-equivalent yield, which is
based on a combined effective 1997 income tax rate of 36%. A portion
of the fund's income may be subject to the alternative minimum tax.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However,
a straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the yield
you'd have to earn on a similar
taxable investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Fidelity
Municipal Money Market Fund
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PAST SIX MONTHS?
A. The unique combination of strong economic growth with an
increasingly tight labor market amidst benign inflation provided the
backdrop for the period. Real GDP - gross domestic product adjusted
for inflation - grew at an average annual rate of 3.9% in the fourth
quarter of 1997 and preliminary numbers showed a growth rate of 4.8%
in the first quarter of 1998. Employment was strong throughout the
period, as indicated by unemployment in April falling to a 28-year low
of 4.3%. Low unemployment generally leads to wage increases, which can
eventually lead to increased prices at the consumer level. However,
labor cost pressures were contained as increased compensation was
offset by increases in productivity. Furthermore, prices at the
producer level have actually been declining over the past six months,
while prices at the consumer level were up only marginally.
Q. HOW DID THESE FACTORS AFFECT MONETARY POLICY?
A. Market sentiment, as to the Federal Reserve Board's next potential
move on interest rates, shifted several times during the period.
Despite little evidence of inflation, the market expected the Fed to
raise rates during the summer of 1997 as another preemptive strike
against inflation that was almost certain to accompany the economy's
continued rapid growth. However, sentiment dramatically shifted at the
beginning of the period - in November and December - when many
participants believed the Asian financial crisis would cause a
significant slowdown in the U.S. economy. In fact, many market
observers began to expect the Fed to lower short-term interest rates
to bolster economic growth. When first-quarter economic data failed to
show evidence of a slowdown, however, fears of a rate increase were
reignited.
Q. WHAT WAS YOUR STRATEGY AS THIS UNFOLDED?
A. I kept the fund's average maturity pretty short during the period
because there has been a tremendous amount of municipal supply. In the
first four months of 1998, municipal bond issuance rose almost 60%
over the comparable period last year, which kept short-term rates
attractive. The fund began the period with an average maturity of 44
days, a fairly neutral position relative to its peers. However, the
fund's collection of variable rate demand notes (VRDNs), significantly
shortened the fund's average maturity to 28 days by April 30, 1998.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on April 30, 1998, was 3.66%, compared
to 3.31% six months ago. The latest yield was the equivalent of a
5.72% taxable yield for investors in the 36% federal tax bracket.
Through April 30, 1998, the fund's six-month total return was 1.61%,
compared to 1.52% for the all tax-free money market funds average,
according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Although the Asian crisis has dampened U.S. net exports, strong
consumer demand and business investment within the U.S. has allowed
economic growth to continue at a rapid pace. Despite this strength,
inflationary pressures have not materialized. Wage increases and price
appreciation in the service sector have been offset by increases in
productivity, a strong dollar and declining commodity prices. Several
of these factors that had been restraining inflation appear to have
been temporary. First-quarter non-farm productivity rose only 0.2% -
much lower than levels seen in 1996 and 1997 when inflation was
subdued, suggesting that these productivity increases may not be
sustained. In addition, the fall of oil prices and the appreciation of
the dollar have stabilized. Consequently, inflation may pick up -
possibly causing the Fed to raise interest rates later this year.
Another factor to consider going forward is that most one-year notes
in the municipal market are issued for settlement in July. The fund
may participate in the one-year market at this time, as the increased
supply should make these longer-term issues attractive. However, given
my outlook on interest rates, I may target a slightly shorter average
maturity, allowing me to take advantage of higher yields if the Fed
moves to raise short-term rates.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: high current income
while maintaining a stable
$1 share price by investing
in high-quality, short-term
municipal money market
securities
FUND NUMBER: 010
TRADING SYMBOL: FTEXX
START DATE: January 2, 1980
SIZE: as of April 30, 1998,
more than $4.6 billion
MANAGER: Diane McLaughlin,
since 1996; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1992
(checkmark)
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/98 10/31/97 4/30/97
0 - 30 75 73 75
31 - 90 15 14 18
91 - 180 8 2 4
181 - 397 2 11 3
WEIGHTED AVERAGE MATURITY
4/30/98 10/31/97 4/30/97
FIDELITY MUNICIPAL 28 DAYS 44 DAYS 28 DAYS
MONEY MARKET FUND
ALL TAX-FREE MONEY 39 DAYS 49 DAYS 40 DAYS
MARKET FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF APRIL 30, 1998 AS OF OCTOBER 31, 1997
Row: 1, Col: 1, Value: 1.6
Row: 1, Col: 2, Value: 7.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 68.40000000000001
Row: 1, Col: 1, Value: 1.6
Row: 1, Col: 2, Value: 10.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 68.40000000000001
Variable rate
demand
notes (VRDNs) 69%
Commercial paper
(including
commercial
paper mode) 20%
Tender bonds 3%
Municipal
notes 7%
Other 1%
Variable rate
demand
notes (VRDNs) 69%
Commercial paper
(including
commercial
paper mode) 17%
Tender bonds 3%
Municipal
notes 10%
Other 1%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS APRIL 30, 1998 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALABAMA - 1.4%
Alabama Hsg. Fin. Auth. Multi-Family Hsg.
(Gazebo East Proj.) Series 1991 B, 4.45%,
LOC AmSouth Bank of Alabama, VRDN $ 3,430 $ 3,430
Alabama Ind. Dev. Auth. Rev. (Southern Ionics Proj.) 4.35%,
LOC Southtrust Bank, Alabama, VRDN (d) 4,000 4,000
Birmingham Private Edl. Auth. (Altamont School) Series 1998,
4.25%, LOC Amsouth Bank, Birmingham, VRDN 4,625 4,625
Chatam Ind. Dev. Board Poll. Cont. Rev. Bonds (Alabama Elec.
Coop., Inc.) Series 1993:
3.55% 5/15/98 (Nat'l. Rural Util. Coop. Fin.
Guaranteed) CP mode 3,800 3,800
3.70% 9/10/98 (Nat'l. Rural Util. Coop. Fin.
Guaranteed) CP mode 2,600 2,600
Courtland Ind. Dev. Board (Speciality Minerals, Inc.) 4.30%,
LOC Wachovia Bank, NA, VRDN (d) 5,000 5,000
Decatur Ind. Dev. Board Ind. Dev. Rev. (Monsanto Co. Proj.)
Series 1996, 4.30%, VRDN (d) 1,900 1,900
Decatur Ind. Dev. Board Solid Waste Rev. (Trico Steel Co. Proj.)
Series 1997, 4.20%, LOC Chase Manhattan Bank, VRDN (d) 3,500 3,500
Demopolis Ind. Dev. Rev. Board VRDN:
(McClain of Alabama Proj.) 4.25%, LOC LaSalle
Nat'l. Bank, Chicago, Illinois (d) 2,325 2,325
(Systech Environmental Corp.)
Series 1990, 4.20%, LOC NBD Bank, NA (d) 1,800 1,800
Jackson Ind. Dev. Auth. (Specialty Minerals, Inc.) 4.30%,
LOC Wachovia Bank of Georgia, NA, VRDN 4,300 4,300
Jefferson County Swr. Rev. Participating VRDN, 4.15%
(BPA Bank of New York, NA) (e) 5,400 5,400
Lafayette Ind. Dev. Rev. (Kardoes Rubber Co., Inc.) 4.35%,
LOC Amsouth Bank, NA, VRDN (d) 3,800 3,800
Mobile Ind. Dev. Board Rev. (Newark Group Proj.) 4.25%,
LOC First Union Nat'l. Bank, VRDN 7,450 7,450
Montgomery Ind. Dev. Rev. (Feldmeier/Alabama Equipment)
Series 1996, 4.35%, LOC Southtrust Bank of Alabama,
VRDN (d) 925 925
Phoenix City Ind. Dev. Board Envir. Impr. Bonds
(Mead Coating Board Proj.) Series 1988, 3.77% 7/13/98,
LOC ABN-AMRO Bank, NV, CP mode (d) 3,000 3,000
Roanoke Ind. Dev. Rev. (Steel Fab, Inc. Proj.) Series 1997,
4.35%, LOC Nationsbank, NA, VRDN (d) 1,500 1,500
Tuscaloosa County Ind. Dev. Auth. (Hanna Steel Co.) 4.35%,
LOC Nationsbank, NA, VRDN 1,090 1,090
Wetumpka Ind. Dev. Board Rev. (US Fabtec LLC) 4.70%,
LOC Bank of Tokyo-Mitsubishi Ltd., VRDN (d) 1,860 1,860
62,305
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALASKA - 1.0%
Alaska Hsg. Fin. Corp. Participating VRDN, Series 1997 A,
4.20% (Liquidity Facility Bank of America Nat'l.
Trust & Savings Bank) (e) $ 4,185 $ 4,185
Alaska Hsg. Fin. Corp. Participating VRDN, Series 1995 A,
4.15% (Liquidity Facility Bank of New York, NA) (e) 5,600 5,600
Alaska Ind. Dev. & Export Auth. Exempt Facs. Rev.
(Fairbanks Gold Mining) Series 1997, 4.20%,
LOC Union Bank of Switzerland, VRDN (d) 30,400 30,400
Valdez Marine Terminal Rev.:
Bonds (Atlantic Richfield Co. Proj.) Series 1994 A, 3.50%
6/12/98, CP mode 1,000 1,000
Participating VRDN (Sohio Pipeline, British Petroleum)
4.20% (Liquidity Facility Banque National de Paris) (e) 4,945
4,945
46,130
ARIZONA - 2.6%
Apache County Ind. Dev. Auth. (Tucson Elec.
Pwr. Co. Proj.) Series 1981 B, 4.45%,
LOC Bank of Tokyo-Mitsubishi Ltd., VRDN 16,500 16,500
Cochise County Poll. Cont. Rev. Bonds (Arizona Elec.
Pwr. Coop.) 3.50%, tender 9/1/98
(CFC Guaranteed-Nat'l. Rural Util. Coop.) (d) 5,300 5,300
Flagstaff Ind. Dev. Auth. Bonds (Citizens Util. Co.) 3.60%
6/12/98, CP mode (d) 2,100 2,100
Maricopa County:
Commty College Dist. Participating VRDN, Series 1988,
4.25% (Liquidity Facility Bankers Trust Co.) (e) 14,000 14,000
Ind. Dev. Auth. Multi-Family Hsg. Auth. Rev. VRDN:
(Privado Park Apt. Proj.) Series 1994 A, 4.20%
(Fannie Mae Guaranteed) (d) 1,000 1,000
(Shadow Creek Apt. Proj.) Series 1994 C, 4.20%
(Fannie Mae Guaranteed) (d) 5,100 5,100
Poll. Cont. Rev. Bonds
(Southern California Edison Co. Proj.):
Series 1985 E, 3.65% 9/11/98, CP mode 3,250 3,250
Series 1985 F, 3.50% 6/12/98, CP mode 5,950 5,950
Mohave County Ind. Dev. Auth. Bonds
(Citizens Util. Co. Proj.):
Series 1993 E, 3.50% 6/9/98, CP mode (d) 1,360 1,360
Series 1993 E, 3.80% 5/15/98, CP mode (d) 2,500 2,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARIZONA - CONTINUED
Phoenix Ind. Dev. Auth. VRDN:
Multi-Family Hsg. Rev.:
(Bell Square Apt. Proj.) Series 1995, 4.30%,
LOC General Elec. Capital Corp. $ 6,000 $ 6,000
(Del Mar Terrace Apts. Proj.) Series 1984, 4.10%,
LOC Bank of America Nat'l. Trust & Savings Bank 8,500 8,500
(Heather Ridge Apt. Proj.) Series 1988, 4.20%
(Fannie Mae Guaranteed) (d) 2,000 2,000
Rev. (Plastican Project) Series 1997, 4.40%,
LOC Fleet Nat'l. Bank (d) 2,700 2,700
Rev. Rfdg. (V.A.W. of America Proj.)
Series 1997, 4.25%, LOC Nationsbank, NA 1,100 1,100
Pima County Ind. Dev. Auth. Multi-Family Rev. (Quail Ridge
Apt.-B) 4.20% (Fannie Mae Guaranteed) VRDN 4,000 4,000
Salt River Proj. Agricultural Impt. & Pwr. Dist. CP:
3.50%, LOC Bank of New York, NA (Liquidity Facility
Wells Fargo Bank, First Nat'l. Bank of Chicago) 5,800 5,800
3.55% (Liquidity Facility Wells Fargo Bank, First Nat'l.
Bank of Chicago) 16,400 16,400
3.80% (Liquidity Facility Wells Fargo Bank, First Nat'l.
Bank of Chicago) 2,500 2,500
Tempe Union High School Dist. #213 TAN 4.40% 6/30/98 2,000 2,002
Tucson Ind. Dev. Auth. Multi-Family Hsg. Rev. (Lincoln Garden
Proj.) 4.50% LOC Sumitomo Bank Ltd., VRDN 5,625 5,625
Yavapai County Ind. Dev. Auth. Ind. Dev. Rev. Bonds (Citizens
Util. Co.) Series 1993:
3.50% 6/9/98, CP mode (d) 4,600 4,600
3.70% 7/10/98, CP mode (d) 2,000 2,000
120,287
ARKANSAS - 1.0%
Arkansas Dev. Fin. Agcy.:
Bonds Single Family Mtg. Rev. Series D,
4.05% tender 7/1/98 6,400 6,400
Participating VRDN, 4.25% (Liquidity Facility Bank of
America Nat'l. Trust & Savings Bank) (e) 7,380 7,380
Multi-Family Hsg. Rev. (Kiehl Partners LP Proj.) Series 1998,
4.30%, LOC Bank One, Louisiana, NA, VRDN 5,200 5,200
Clark County Solid Waste Disp. Rev. (Reynolds Metals Co.
Proj.) 4.20%, LOC SunTrust Bank, Atlanta, VRDN (d) 13,800 13,800
Miller County Solid Waste Disp. Rev. (Tyson Foods, Inc. Proj.)
Series 1996, 4.25%, LOC Commerzbank, AG, VRDN (d) 5,600 5,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARKANSAS - CONTINUED
Pine Bluff Ind. Dev. Rev. (Rolling Pin Corp. Proj.)
Series 1988, 4.35%, LOC Wells Fargo Bank, NA,
San Francisco, VRDN (d) $ 4,500 $ 4,500
West Memphis Ind. Dev. Rev. (Proform Co. LLC Project)
Series 1996, 4.30%, LOC U.S. Bank, NA, VRDN (d) 1,000 1,000
43,880
CALIFORNIA - 2.8%
California Higher Ed. Student Loan Auth. Rev.:
Bonds:
Series E-5, 4.25%, tender 6/1/98, LOC Student Loan
Marketing Assoc. (d) 7,100 7,100
Series 1987 C, 3.95% tender 6/1/98, LOC Student
Loan Marketing Assoc. (d) 4,000 4,000
Series 1994 A, 3.95% tender 6/1/98
LOC State Street Bank and Trust Co., Boston (d) 7,450 7,450
VRDN:
Series 1987 C, 4.15%, LOC Student Loan
Marketing Assoc. (d) 1,600 1,600
Series 1992 E-1, 4.20%, LOC Student Loan
Marketing Assoc. (d) 8,350 8,350
California Pub. Works Board Lease Rev. Bonds
(Dept. of Corrections) Series 1997 C, 4.75% 9/1/98 4,100 4,111
California School Cash Reserves Prog. TRAN
1997 Pool Bonds Series A, 4.75% 7/2/98 15,000 15,020
Central Valley School Fin. Auth. TRAN 1997 Pool Bonds,
4.50% 8/27/98 6,400 6,412
Clovis Unified School Dist. TRAN (Fresno County)
4.25% 6/30/98 13,300 13,309
Fresno County Gen. Oblig. TRAN 4.25% 7/1/98 1,500 1,501
Kern High School Dist. TRAN, 4.50% 8/20/98 7,700 7,713
Los Angeles County Gen. Oblig. TRAN 4.50% 6/30/98 10,860 10,874
Los Angeles Unified School Dist. TRAN Series 1997-98,
4.50% 7/1/98 8,300 8,309
Riverside County Gen. Oblig. TRAN 4.50% 6/30/98 12,700 12,711
San Luis Obispo County Office of Ed. TRAN
4.50% 6/30/98 5,000 5,005
South Coast Local Ed. TRAN Series A,
4.50% 6/30/98 (MBIA Insured) 17,000 17,016
130,481
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
COLORADO - 2.6%
Aurora Multi Family Hsg. Rev. Series 1996, 4.70%
(Fannie Mae Guaranteed) VRDN (d) $ 8,300 $ 8,300
Colorado Springs Util. Sys. Impt. Rev. Participating VRDN:
Series 1996 A, 4.25% (Liquidity Facility
Societe Generale) (e) 14,900 14,900
Series 1997 A, 4.20% (Liquidity Facility Bank of
New York, NA) (e) 9,100 9,100
Denver City & County Dept. of Aviation Airport Sys. Rev.
Participating VRDN, Series 1997-Q:
4.15% (Liquidity Facility Corestates Bank) (e) 1,900 1,900
4.25% (Liquidity Facility CoreStates Bank) (e) 6,600 6,600
Denver City & County Gen. Oblig. Rev. Rfdg.
Participating VRDN, Series 1998 A, 4.25%
(Liquidity Facility Bankers Trust Co.) (e) 13,870 13,870
Denver County Arpt. Rev. Participating
VRDN, 4.25% (Liquidity Facility Caisse des
Depots et Consigns) (e) 29,095 29,095
Fort Collins County Ind. Dev. Rev. (Phelps-Tointon
Millwork Proj.) Series 1993, 4.25%,
LOC Bank One, Milwaukee, VRDN (d) 1,295 1,295
Highlands Ranch County Metro Dist. #2
Participating VRDN, Series 1996 E, 4.60%
(Liquidity Facility Norwest Bank NA, Minnesota) (e) 1,850 1,850
Moffat County Poll. Cont. Rev. Rfdg.
(Colorado-UTE Elec. Assoc. Inc.) Series 1984, 4.10%
(AMBAC Insured) (BPA Societe Generale) VRDN 12,600 12,600
Platte County River Pwr. Auth. Bonds
(Adj. Elec. Rev. Proj.) Series S-1, 3.50% 6/10/98
(BPA Morgan Guaranty Trust Co., NY) CP mode 15,700 15,700
Westminster County Multi-Family Hsg. Rev. Series 1997
(Lakeview Apts.) 4.70% (Fannie Mae Guaranteed)
VRDN (d) 4,510 4,510
119,720
CONNECTICUT - 0.1%
Connecticut Hsg. Fin. Auth. Participating VRDN,
(Merlot Proj.) Series 1997 L, 4.35%
(Liquidity Facility CoreStates Bank) (e) 4,700 4,700
DELAWARE - 0.7%
Delaware Econ. Dev. Auth. Multi-Family Rev.
(Schoolhouse Trust Prog.) 4.30%,
LOC Marine Midland Bank, VRDN 25,100 25,100
Delaware Hsg. Auth. Participating VRDN, Series PA-39,
4.15% (Liquidity Facility Merrill Lynch & Co.) (e) 7,550 7,550
32,650
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
DISTRICT OF COLUMBIA - 0.2%
Metro Washington Arpt. Auth. Rev. Bonds 3.60% 7/23/98,
LOC NationsBank, NA, CP mode (d) $ 11,000 $ 11,000
FLORIDA - 5.2%
Brevard County Hsg. Fin. Auth. Rev.
(Sun Pointe Bay Apts. Proj.) Series 1993, 4.25%
(Continental Casualty Co. Guaranteed) VRDN 2,180 2,180
Broward County Sales Rax Rev. Series B, 3.90% 5/7/98
(Liquidity Facility Bank of Tokyo-Mitsubishi, Ltd.) CP (d) 23,000
23,000
Dade County Hsg. Fin. Auth. Single Family Mort. Rev. Bonds
Series 1997 C, 4.05%, tender 10/16/98
(FGIC Capital Markets Svcs. Guaranteed) (d) 4,200 4,200
Eagle Tax Exempt Trust, Class A, Participating VRDN, 4.20%
(Liquidity Facility Citibank, NY) (e) 11,400 11,400
Florida Board of Ed. Participating VRDN, Series 96C0917,
4.20% (Liquidity Facility Citibank) (e) 4,700 4,700
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev. Rfdg.
(Hillsborough-Oxford Proj.) Series D, 4.15%
(Continental Casualty Co. Guaranteed) VRDN 5,000 5,000
Florida Local Gov't. Fin. Auth. Rev. (Finance Commission)
Series A, CP:
3.60% 6/11/98, LOC First Union Nat'l. Bank 4,100 4,100
3.75% 7/14/98, LOC First Union Nat'l. Bank 12,540 12,540
3.60% 8/7/98, LOC First Union Nat'l. Bank 3,100 3,100
3.65% 9/8/98, LOC First Union Nat'l. Bank 4,570 4,570
Highlands County Health Facs. Auth. Rev.
(Adventist Health/Sunbelt) VRDN:
4.15% (Capital Markets Assurance Corp. Insured)
(BPA First Nat'l. Bank of Chicago) 6,800 6,800
Series B, 4.15% (Capital Markets Assurance Corp. Insured)
(Liquidity Facility Canadian Imperial Bank of Commerce) 13,000
13,000
Highlands County Ind. Dev. Auth. (Lesco Inc. Proj.) Series 1997,
4.30%, LOC PNC Bank, NA, VRDN (d) 2,500 2,500
Hillsborough County Aviation Auth. (Tampa Int'l. Arpt.)
2nd Series, 3.70% 9/9/98, LOC Nat'l. Westminster Bank,
PLC, CP (d) 4,600 4,600
Jacksonville Elec. Auth. Rev. CP:
Series A, 3.80% 9/8/98 (Liquidity Facility Morgan
Guaranty Trust Co., NY) 5,600 5,600
Series C-1, 3.50% 7/10/98 (Liquidity Facility Morgan
Guaranty Trust Co., NY) 14,000 14,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Jacksonville Health Fac. Auth. Participating VRDN,
Series 1996 M, 4.20% (Liquidity Facility Caisse des
Depots et Consigns) (e) $ 9,810 $ 9,810
Jacksonville Hosp. Rev. (Univ. Med. Ctr.) Series 1988, 4.95%,
LOC Sumitomo Bank Ltd.,VRDN 1,200 1,200
Jacksonville Poll. Cont. Rev. Rfdg. Bonds
(Florida Pwr. & Lt. Co., Proj.) Series1994,
3.65% 9/11/98, CP mode 7,400 7,400
Jacksonville River City Renaissance Program CP:
3.60% 7/13/98 (BPA Morgan Guaranty Trust Co, NY, &
Credit Swiss First Boston) 4,400 4,400
3.80% 9/8/98 (BPA Morgan Guaranty Trust Co, NY, &
Credit Swiss First Boston) 3,000 3,000
3.65% 9/11/98 (BPA Morgan Guaranty Trust Co, NY, &
Credit Swiss First Boston) 9,800 9,800
Lee County Hosp. Board Hosp. Rev. Bonds
(Lee Memorial Hosp. Proj.) Series 1997-B, 3.85% 5/8/98,
LOC Facility SunTrust Bank, NA, CP mode 10,000 10,000
Sarasota County Pub. Hosp. Dist. Bonds
(Sarasota Memorial Hosp.):
Series 1991:
3.70% 5/18/98, CP mode 9,000 9,000
3.70% 5/19/98, CP mode 15,000 15,000
3.70% 5/20/98, CP mode 6,000 6,000
3.80% 8/12/98, CP mode 8,500 8,500
Series 1993 A:
3.70% 5/20/98, CP mode 15,000 15,000
3.70% 5/19/98, CP mode 900 900
3.80% 8/13/98, CP mode 5,000 5,000
St. Lucie County Poll. Cont. Rev. Rfdg. Bonds
(Florida Pwr. & Lt. Co., Proj.) Series 1994 A,
3.70% 9/8/98, CP mode 3,500 3,500
Sunrise Util. Sys. Rev. Participating VRDN:
Series SG-16 1996 A, 4.25% (Liquidity Facility Societe
Generale) (e) 1,000 1,000
Series SGB-17 1996 A, 4.25% (Liquidity Facility Societe
Generale) (e) 6,400 6,400
237,200
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - 2.9%
Albany Dougherty Payroll Dev. Auth. Poll. Cont. Rev. Rfdg.
(Philip Morris Co. Proj.) 4.25%, VRDN $ 2,790 $ 2,790
Atlanta Gen. Oblig. Participating VRDN, Series SG-58,
4.15% (Liquidity Facility Societe Generale) (e) 7,200 7,200
Atlanta Urban Residential Fin. Auth.
(Villages of Cascade Proj.) Series 1997 A, 4.25%,
LOC SunTrust Bank, Atlanta, VRDN (d) 6,700 6,700
Cartersville Poll. Cont. Rev. (Burtin Reality Enterprises) 4.25%,
LOC Wachovia Bank of Georgia, NA, VRDN 1,000 1,000
Chattanooga County Poll. Cont. Rev.
(Aladdin Manufacturing Co.) 4.35%,
LOC Wachovia Bank of Georgia, NA, VRDN (d) 4,300 4,300
Cherokee County Dev. Auth. Rev.
(Blue Circle Aggregates, Inc.) Series 1997, 4.20%,
LOC Den Danske Bank Group AS, VRDN (d) 3,500 3,500
Clayton County Hsg. Auth. Multi-Family Hsg. Rev. (Hyde Park
Club Apts. Proj.) Series 1997, 4.23%,
LOC Key Bank Nat'l. Assoc., VRDN (d) 3,500 3,500
Cobb County Dev. Auth. Ind. Dev. (Amoena Corp. Proj.)
Series 1992, 4.35%, LOC Bayerische Hypotheken-und
Wechsel Bank, VRDN (d) 2,150 2,150
Coweta County Ind. Dev. Auth. (E.G.O. Products, Inc. Proj.)
Series 1996, 4.30%, LOC Swiss Bank Corp., VRDN (d) 3,900 3,900
Dekalb County Dev. Auth. Ind. Dev. Rev. (Qualex Proj.) 4.35%,
LOC Comerica Bank, Texas, VRDN (d) 2,900 2,900
Dekalb County Hsg. Auth. Multi-Family Hsg. Rev. VRDN:
(Bryton Hill Apts. Proj.) Series 1996, 4.30%,
LOC PNC Bank, Kentucky (d) 1,000 1,000
(Eales Trace Apts.) Series 1996, 4.23%,
LOC Key Bank Nat'l. Assoc. (d) 2,675 2,675
Floyd County Dev. Auth. Ind. Dev. Rev.
(Marglen Ind., Inc. Proj.) Series 1997, 4.25%,
LOC SunTrust Bank, Atlanta, VRDN (d) 1,500 1,500
Fulton County Dev. Auth. VRDN:
(Georgia Tech. Athletic Assoc.) 4.15%,
LOC SunTrust Bank Atlanta 1,900 1,900
(Woodward Academy, Inc. Proj.)
Series 1997, 4.15%, LOC SunTrust Bank, Atlanta 5,000 5,000
Georgia Gen. Oblig. Participating VRDN, Series BT-122,
4.25% (BPA Bankers Trust Co.) (e) 4,580 4,580
Georgia Hsg. & Fin. Auth. Single Family Hsg. Rev. Bonds
3.85% 9/1/98 (FGIC Insured) (d) 7,600 7,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Georgia Municipal Elec. Auth. Bonds (Gen. Resolution
Proj.) Series 1985A:
3.55% 5/15/98, LOC Morgan Guaranty
Trust Co., NY, & Credit Swiss First Boston, CP mode $ 6,000 $ 6,000
3.70% 9/10/98, LOC Morgan Guaranty
Trust Co., NY, & Credit Swiss First Boston, CP mode 1,000 1,000
3.65% 9/11/98, LOC Morgan Guaranty
Trust Co., NY, & Credit Swiss First Boston, CP mode 3,100 3,100
Georgia Port Auth. (Colonel's Island Terminal) 4.25%,
LOC SunTrust Bank, Atlanta, VRDN (d) 1,940 1,940
Gwinnett County Ind. Dev. Rev. VRDN:
(Curtis 1000, Inc. Proj.) Series 1996, 4.25%,
LOC SunTrust Bank, Atlanta (d) 1,200 1,200
(Sheperd Construction Co. Ltd.)
4.50%, LOC SunTrust Bank (d) 1,100 1,100
Gwinnett County Multi-Family Hsg. Rev. (Herrington
Woods Apt.) Series 1996 A, 4.23%, LOC Key
Bank Nat'l. Assoc., VRDN (d) 6,700 6,700
Gwinnett Ind. Dev. Rev. VRDN:
(Klockner Namasco Corp.) 4.20%, LOC NationsBank, NA (d) 1,000 1,000
(O'Neal Steel Inc.) 4.20%, LOC NationsBank, NA (d) 1,500 1,500
Henry County Dev. Auth. Solid Waste Rev.
(Atlas Roofing Corp. Proj.) Series 1997, 4.25%,
LOC SunTrust Bank, Atlanta, VRDN (d) 2,500 2,500
Jenkins County Poll. Cont. Rev. (Metal Industries Inc. of
Georgia) 4.20%, LOC Nationsbank, NA South, VRDN (d) 2,400 2,400
Lafayette Dev. Auth. Rev (The Dixie Group Proj.) Series 1998,
4.25%, LOC SunTrust Bank, Atlanta, VRDN (d) 2,000 2,000
Metro Atlanta Rapid Transit Auth. Sales Tax Rev.
Participating VRDN, Series SG-57, 4.15%
(Liquidity Facility Societe Generale) (e) 10,000 10,000
Paulding County Ind. Bldg. Auth. Rev. (Cadillac Products, Inc.)
Series 1994, 4.30%, LOC NBD Bank, NA, VRDN 3,860 3,860
Roswell Hsg. Auth. Multi-Family Hsg. Rev. VRDN:
Rfdg. (Roswell-Oxford Proj.) Series 1990, 4.15%
(Continental Casualty Co. Guaranteed) 6,100 6,100
(Autumnbrook Apts.) Series 1991 A, 4.30%,
LOC AmSouth Bank, NA 7,165 7,165
Savannah Econ. Dev. Auth. Ind. Dev. Rev.
(Fuji Vegetable Oil Inc. Proj.) 4.70%,
LOC Bank of Tokyo-Mitsubishi Ltd., VRDN (d) 1,000 1,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Savannah Econ. Dev. Auth. Rev. VRDN:
(Home Depot, Inc.) Series 1995 A, 4.25% (d) $ 1,500 $ 1,500
(Kaolin Terminals Inc.) 4.20%, LOC NationsBank, NA (d) 5,000 5,000
Vienna Ind. Dev. Auth. (Mid Georgia Processing Co. LLC)
4.20%, LOC NationsBank, NA, VRDN (d) 3,200 3,200
Worth County Ind. Dev. Rev. Rfdg. (Seabrook Peanut Co. Proj.)
Series 1996B, 4.25%, LOC SunTrust Bank, Atlanta, VRDN 1,700 1,700
132,160
HAWAII - 0.5%
Hawaii Dept. of Budget & Fin.:
Participating VRDN, Series PT-139,
4.25% (Liquidity Facility Commerzbank, AG) (e) 5,000 5,000
Spl. Purp. Rev. Bonds:
(Citizens Utilities):
Series 1988A, 3.75% 6/5/98, CP mode (d) 4,400 4,400
Series 1988B, 3.50% 6/9/98, CP mode (d) 1,190 1,190
Series 1988B, 3.60% 6/12/98, CP mode (d) 2,000 2,000
Series 1988C, 3.60% 5/12/98, CP mode (d) 2,210 2,210
(Kaiser Permanante Proj.) Series 1984 D,
6.05% 3/1/98 3,000 3,000
Hawaii Gen. Oblig. Participating VRDN, Series BTP-282,
4.25% (Liquidity Facility Bankers Trust Co.) (e) 5,000 5,000
22,800
IDAHO - 0.1%
Idaho Health Facs. Auth. Hosp. Rev. (Holy Cross Health
Sys. Corp.) 4.15% (Liquidity Facility Morgan Guaranty
Trust Co., NY) VRDN 1,200 1,200
Idaho Hsg. & Fin. Assoc. Participating VRDN, 4.25%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e) 3,300 3,300
4,500
ILLINOIS - 8.6%
Bolingbrook Multi-Family Hsg. Rev. (Amerton Apt.) 4.20%,
LOC LaSalle Nat'l. Bank of Chicago, VRDN (d) 12,300 12,300
Carol Stream Multi-Family Hsg. (St. Charles Square LP) 4.30%
(Fannie Mae Guaranteed) VRDN (d) 2,000 2,000
Chicago Arpt. Spl. Fac. Rev. (Centerpoint O'Hare LLC) 4.30%,
LOC First Nat'l. Bank of Chicago, VRDN (d) 10,000 10,000
Chicago Collateralized Single Family Mtg. Rev. Bonds
Series 98-B, 3.70% 4/1/99 (d) 5,600 5,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Chicago Gas Supply Rev. Bonds (Peoples Gas Lt. & Coke Co.)
3.70%, tender 12/1/98 (d) $ 7,200 $ 7,200
Chicago Gen. Arpt. Rev. (O' Hare Int'l. Arpt.)
Series 1988 A, 4.20%, LOC Bayerische
Landesbank Girozentrale, VRDN (d) 48,800 48,800
Chicago Ind. Dev. Rev. VRDN:
(Ampere Automotive Corp. Proj.) Series 1996, 4.25%,
LOC Harris Trust & Savings Bank, Chicago (d) 4,000 4,000
(Guernsey Bel, Inc. Proj.) 4.25%, LOC Harris Trust &
Savings Bank, Chicago (d) 1,400 1,400
Chicago Midway Arpt. Rev. Bonds
Series 1998, 3.65% tender 6/1/98,
LOC Bayerische Landesbank Girozentrale (d) 4,000 4,000
Chicago O'Hare Int'l. Arpt. Passenger Fac. Rev.
Participating VRDN, Series PT-138, 4.15%
(Liquidity Facility Commerzbank, AG) (e) 8,890 8,890
Chicago School Reform Participating VRDN:
Series 1997 E, 4.25% (Liquidity Facility CoreStates Bank) (e) 8,700
8,700
Series 1996-BB, 4.25% (Liquidity Facility Bank of America
Nat'l. Trust & Savings Bank) (e) 18,690 18,690
Chicago Wtr. Rev. Participating VRDN, Series 1997 V,
4.25% (Liquidity Facility CoreStates Bank) (e) 11,560 11,560
Cook County Ind. Dev. Rev. (Little Lady Foods Proj.)
Series 1997, 4.25%, LOC LaSalle Nat'l Bank) VRDN (d) 3,000 3,000
Glendale Heights Participating VRDN, 4.20% (Liquidity Facility
Bayerische Hypotheken-und Wechsel Bank) (e) 2,600 2,600
Illinois Dev. Fin. Auth. Rev. VRDN:
Ind. Dev. Auth.:
(FC Ltd. Partnership) 4.25%, LOC LaSalle Nat'l. Bank (d) 715 715
(Glenwood School for Boys) Series 1998,
4.25%, LOC Harris Trust & Savings Bank, Chicago (d) 7,500 7,500
(Kindlon Partners Proj.) 4.25%, LOC Northern Trust,
Chicago (d) 900 900
(Kindlon Partners Proj.) Series 1994, 4.25%,
LOC LaSalle Nat'l. Bank (d) 800 800
(Maples & Sprowl Steel Ltd. Proj.) Series 1996 A, 4.30%,
LOC LaSalle Nat'l. Bank (d) 2,800 2,800
(Overton Gear and Tool Corp.) 4.25%, LOC Harris Trust
and Savings Bank of Chicago (d) 2,100 2,100
(Olive Can Co. Proj.) 4.25%, LOC LaSalle Nat'l. Bank (d) 2,660
2,660
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Illinois Dev. Fin. Auth. Rev. VRDN: - continued
Ind. Dev. Auth.:
(Touhy Ltd. Partnership) Series 1996, 4.25%,
LOC LaSalle Nat'l. Bank (d) $ 1,400 $ 1,400
(Toyal America, Inc. Proj.) 4.70%,
LOC Bank of Tokyo-Mitsubishi Ltd. (d) 3,800 3,800
Multi-Family Hsg. Rev. Rfdg. (Garden Glen Apts.)
Series 1993, 4.35% 11,610 11,610
Poll. Cont. Rev. (Illinois Pwr. Co. Proj.):
Series 1987 B, 4.65%, LOC Bank of
Tokyo-Mitsubishi, Ltd. (d) 9,400 9,400
Series 1987 C, 4.65%, LOC Bank of
Tokyo-Mitsubishi Ltd. (d) 1,600 1,600
Series 1987 D, 4.70%, LOC Bank of
Tokyo-Mitsubishi Ltd. (d) 6,100 6,100
Series A, 4.20% (Liquidity Facility First Nat'l. Bank
of Chicago) (MBIA Insured) (d) 21,200 21,200
Series B, 4.25% (Liquidity Facility First Nat'l. Bank
of Chicago) (MBIA Insured) (d) 26,600 26,600
Series C, 4.30% (Liquidity Facility First Nat'l. Bank
of Chicago) (MBIA Insured) (d) 15,200 15,200
Illinois Edl. Facs. Auth. Rev. (Shedd Aquarium Merlot)
Participating VRDN, Series 1997 U, 4.25%
(Liquidity Facility CoreStates Bank) (e) 9,040 9,040
Illinois Health Fac. Auth.:
Participating VRDN, Series 1991 A & 1991 B,
4.15% (Liquidity Facility Robobank Nederland,
COOP Central) (e) 8,200 8,200
Rev. VRDN:
(Little Co. of Mary Hosp. and Health Care Centers)
Series 1997 B, 4.20% (MBIA Insured) (Liquidity Facility
First Nat'l. Bank, Chicago) 6,400 6,400
(Methodist Med. Ctr. Proj.) Series 1985 B, 4.30%,
LOC Sumitomo Bank, Ltd. Japan 10,300 10,300
(Rehabilitation Inst. of Chicago)
Series 1997, 4.15%, LOC Bank of America, Illinois 4,800 4,800
Illinois Hsg. Dev. Auth. Multi-Family Hsg. Rev.
(Williamsburg Apt. Proj.) Series 1991, 4.20%,
(Fannie Mae Guaranteed) VRDN (d) 16,500 16,500
Illinois Reg'l. Trans. Auth. Participating VRDN:
Series SG-3, 4.15% (Liquidity Facility Societe Generale) (e) 4,000
4,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Illinois Reg'l. Trans. Auth. Participating VRDN: - continued
Series SG-19, 4.25% (Liquidity Facility
Societe Generale) (e) $ 8,675 $ 8,675
Series SG-82, 4.15% (Liquidity Facility
Societe Generale) (e) 14,500 14,500
Illinois Student Asst. Comm. Student Loan Rev. VRDN:
Series 1988 A, 4.20% (MBIA Insured)
(BPA Bank of America Nat'l. Trust & Savings Bank) (d) 5,900 5,900
Series 1997 A, 4.20%, LOC First Nat'l.
Bank of Chicago (d) 4,800 4,800
Libertyville Ind. Rev. Rfdg. (Libertyville Manor Facs. Proj.)
Series 1992, 4.15%, LOC First of America Bank, VRDN 50 50
Metropolitan Pier & Exposition Auth. Participating VRDN,
Series A, 4.15% (Liquidity Facility Bank of
New York, NA) (e) 3,400 3,400
Mundelein Ind. Dev. Rev. (Print-O-Tape Proj.) Series 1997,
4.25%, LOC Harris Trust & Savings Bank, Chicago, VRDN 5,200 5,200
Palos Hills Multi-Family Hsg. Rev. (Green Oaks Proj.)
Series 1998, 4.25%, LOC LaSalle Nat'l. Bank of
Chicago, VRDN (d) 2,900 2,900
Plainfield Ind. Dev. Auth. (Plainfield Molding, Inc.)
Series 1997, 4.25%, LOC LaSalle National Bank of
Chicago, VRDN (d) 1,300 1,300
Rockford Ind. Dev. Auth. Rev. (Ringcan Corp. Proj.) Series 1998,
4.15%, LOC SunTrust Bank, Nashville, NA, VRDN 2,000 2,000
St. Charles Ind. Dev. Rev. (Pier 1 Imports-Midwest, Inc. Proj.)
Series 1986, 4.30%, LOC Nat'l. Westminster Bank,
VRDN (d) 3,000 3,000
Univ. of Illinois Participating VRDN, Series SG-65, 4.15%
(Liquidity Facility Societe Generale) (e) 2,705 2,705
Vernon Hills Ind. Dev. Rev. (Accurate Transmission Proj.)
4.25%, LOC Harris Trust & Savings Bank of
Chicago, NA, VRDN (d) 5,475 5,475
Village of Crestwood Ind. Dev. Rev. (GMG Warehouse LLC Proj.)
4.25%, LOC LaSalle Nat'l. Bank, VRDN (d) 2,500 2,500
Village of Lisle Multi-Family Hsg. Rev. (Devonshire of Isle
Proj.) Series 1991, 4.15%, LOC LaSalle Nat'l. Bank
of Chicago, VRDN 3,800 3,800
West Chicago Ind. Dev. Auth. Rev. (Bison Gear & Engineering
Corp.) 4.15%, LOC Bank of America, Illinois, VRDN (d) 5,160 5,160
Woodridge Dupage, Will & Cook County Ind. Dev. Rev.
(McDavid Knee Guard Proj.) 4.35%,
LOC Firstar Bank of Milwaukee, NA, VRDN (d) 1,185 1,185
394,915
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
INDIANA - 2.4%
Columbus Rev. (Rock-Tenn Co. Mill Division) Series 1995,
4.25%, LOC SunTrust Bank, Atlanta, VRDN (d) $ 4,450 $ 4,450
Connersville Econ. Dev. Rev. (Inland Southern Corp. Proj.)
Series 1997, 4.35%, LOC Bank of America, Illinois,
VRDN (d) 2,500 2,500
Crawford County Econ. Dev. Rev. (Jasper Engine Exchange
Proj.) 4.35%, LOC PNC Bank, VRDN (d) 3,800 3,800
Elkhart Commty. Schools TAN 4% 12/31/98 2,900 2,906
Elkhart County (Burger Dairy Project) 4.70%, LOC Old Kent
Bank, Michigan, VRDN (d) 1,995 1,995
Franklin Gen. Oblig. Multi-Family Hsg. 4.20%, LOC
Federal Home Loan Bank, VRDN 2,211 2,211
Ft. Wayne Poll. Cont. Rev. (General Motors Corp. Proj.)
4.25%, VRDN 2,200 2,200
Gary Envir. Improv. Rev. Bonds (USX Proj.) Series 1986
3.60% 6/9/98, LOC Bank of New York, NA, CP mode 2,500 2,500
Greenwood Econ. Dev. Rev. (Endress & Hauser Inc.)
Series A, 4.25%, LOC Deutsche Bank, AG, VRDN (d) 4,000 4,000
Indiana Dev. Auth. Bonds Solid Waste Disp. Rev.
(Pure Air on the Lake Proj.) Series 1990A, 3.65% 9/4/98,
LOC Nat'l. Westminster Bank, PLC (d) 11,000 11,000
Indiana Hsg. Fin. Auth. Single-Family Hsg. Mtg.
Rev. Participating VRDN, 4.35%
(Liquidity Facility CoreStates Bank) (e) 8,845 8,845
Indiana Municipal Pwr. Agcy. Rev. Rfdg. Series 1998 A,
4.05%, LOC Toronto-Dominion Bank, VRDN 7,000 7,000
Indiana Trans. Fin. Auth. Arpt. Facs. Lease Participating VRDN:
Series BTP-217, 4.20% (Liquidity Facility Bankers Trust Co.) (e)
3,500 3,500
Series BTP-219, 4.20% (Liquidity Facility Bankers Trust Co.) (e)
6,930 6,930
Indianapolis Econ. Dev. Rev. (LLC Proj.) Series 1996. 4.25%,
LOC Bank One, Indianapolis, VRDN 950 950
Kendallville Ind. Dev. Rev. Rfdg. Series 1993
(Philip Morris Co., Inc.) 4.25%, VRDN 2,475 2,475
Lawrence County Ind. Dev. Rev. (D&M Tool Proj.) 4.30%,
LOC Huntington Nat'l. Bank of Columbus, VRDN (d) 2,500 2,500
Logansport Ind. Dev. Rev. (Nelson Tube Co.) Series 1996,
4.30%, LOC Huntington Nat'l. Bank, VRDN (d) 1,800 1,800
Muncie Ind. Dev. Rev. (Diamond Plastics Corp.) Series 1996,
4.25%, LOC NationsBank of Texas, VRDN (d) 3,500 3,500
Rockport Ind. Poll. Cont. Rev. (AK Steel Proj). VRDN:
Series 1997 A, 4.20%, LOC PNC Bank, NA (d) 5,500 5,500
Series 1998 A, 4.20%, LOC PNC Bank, NA (d) 6,000 6,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
INDIANA - CONTINUED
Scottsburg Ind. Dev. Auth. (Multi-Color Corp. Proj.) 4.35%,
LOC PNC Bank Ohio VRDN (d) $ 3,000 $ 3,000
St. Joseph County Ind. Econ. Dev. Auth. (Pin Oak Apts.) 4.30%,
LOC Federal Home Loan Bank, Indianapolis, VRDN (d) 2,100 2,100
Sullivan Poll. Cont. Rev. Bonds (Hoosier Energy Proj.):
Series 85L-1, 3.50% 6/12/98
(Nat'l. Rural Util. Coop. Guaranteed) 11,500 11,500
Series 85L-4, 3.80% 9/8/98
(Nat'l. Rural Util. Coop. Guaranteed) 1,250 1,250
Series 895L-6:
3.50% 6/11/98 (Nat'l. Rural Util. Coop. Guaranteed) 1,000 1,000
3.60% 7/13/98 (Nat'l. Rural Util. Coop. Guaranteed) 2,000 2,000
3.80% 9/8/98 (Nat'l. Rural Util. Coop. Guaranteed) 2,000 2,000
109,412
IOWA - 0.9%
Iowa Fin. Auth. Hosp. Facs. Rev. Series 1988 B, VRDN:
4.10% (Liquidity Facility Harris Trust & Savings
Bank of Chicago) (d) 5,100 5,100
4.10% (Liquidity Facility Harris Trust & Savings
Bank of Chicago) (d) 14,300 14,300
Iowa Fin. Auth. Single Family Mtg. Rev. Bonds Series 1998 B,
3.70% tender 2/24/99 (d) 3,400 3,400
Iowa Fin. Auth. Small Bus. Dev. Rev. (Corporate Ctr. Proj.)
4.40% (Principal Mutual Life Ins. Co. Guaranteed) VRDN 6,000 6,000
Iowa School Cash Anticipation Program TRAN
Series A, 4.50% 6/26/98 (FSA Insured) 9,600 9,609
Marshalltown Commty. School Dist. RAN
Series 1997, 4.50% 6/24/98 1,000 1,001
39,410
KANSAS - 0.7%
Burlington Poll. Cont. Rev. Bonds:
(Kansas City Pwr. & Lt. Co. Proj.) Series 1985A, 3.70%
8/12/98, LOC Toronto-Dominion Bank, PLC, CP mode 3,000 3,000
(Kansas Elec. Pwr. Coop.):
Series 1985 C-2, 3.50% 6/11/98 (Nat'l. Rural Util.
Coop. Guaranteed) CP mode 1,200 1,200
Series 1985 C-1, 3.80% 9/8/98 (Nat'l. Rural Util.
Coop. Guaranteed) CP mode 2,300 2,300
Coffeyville Ind. Dev. Rev. (Dixon Industries 1994) 4.25%,
LOC Nationsbank, NA, VRDN (d) 1,800 1,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
KANSAS - CONTINUED
Kansas City Util. Sys. Rev. Rfdg. & Impt. Participating VRDN,
Series 1994, 4.15% (Liquidity Facility Bank of
New York, NA) (e) $ 14,840 $ 14,840
La Cygne Envir. Impt. Rev. Rfdg. (Kansas City Pwr. & Lt.)
Series 1994, 4.25%, VRDN 7,500 7,500
Wichita Arpt. Facs. Rev. (Cessna Citation Proj.) 4.30%,
LOC Westdeutsche Landesbank Girozentrale, VRDN (d) 2,345 2,345
32,985
KENTUCKY - 1.9%
Boone County Kentucky (Hennegan Co. Proj.) 4.32%,
LOC Star Bank NA, VRDN 1,525 1,525
Elizabethtown Ind. Bldg. Rev. (Altec Proj.) Series 1997,
4.25%, LOC Wachovia Bank, NA, VRDN (d) 5,000 5,000
Franklin County Ind. Bldg. Rev. (Certified Tool & Manufacturing
Proj.) 4.25%, LOC Bank One, Illinois, NA, VRDN (d) 3,310 3,310
Jefferson County:
Ind. Dev. Rev. VRDN:
(Commercial Lithographics Co. Project) 4.35%,
LOC PNC Bank of Kentucky (d) 2,800 2,800
(Wynn Starr Foods Proj.) Series 1996, 4.25%,
LOC Bank One Kentucky, NA (d) 2,580 2,580
Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.):
Series 1996A, 3.60% 7/13/98, CP mode 1,000 1,000
Series 1996A, 3.65% 9/11/98, CP mode 4,700 4,700
Louisville & Jefferson County Reg'l. Arpt. Auth. Rev:
VRDN:
4.30%, LOC Nat'l. City Bank, Kentucky (d) 8,900 8,900
Series 1996 A, 4.30%, LOC Nat'l. City Bank, Kentucky 21,150 21,150
Louisville Arpt. Lease Rev. Series 1989 B, 4.20%,
LOC Nat'l. City Bank, Kentucky, VRDN (d) 14,600 14,600
Trimble County Poll. Cont. Rev. Bonds (Louisville Gas &
Elec. Co. Proj.):
Series1992A, 3.50% 6/12/98, CP mode 4,735 4,735
Series1997A, 3.65% 9/8/98, CP mode 13,300 13,300
Walton City Ind. Bldg. Rev. (Clarion Mfg. Corp. of America)
4.35%, LOC Fifth Third Bank, Cincinnati, VRDN (d) 1,975 1,975
85,575
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
LOUISIANA - 1.4%
Caddo Parish Ind. Dev. Board Exempt Facs. Rev.
(Atlas Project) Series 1996 A, 4.20%,
LOC ABN-AMRO Bank, NV, VRDN (d) $ 15,500 $ 15,500
Lincoln Parish (William Inds. Inc. Proj.) Series 1995, 4.20%,
LOC Deutschebank, VRDN (d) 3,500 3,500
Louisiana Pub. Facs. Auth. Hosp. Auth. Rev. Bonds:
(Our Lady of the Lake Med. Center) Series 1985:
3.70% 6/18/98 (FSA Insured) (BPA Commerzbank, AG)
CP mode 7,000 7,000
3.70% 7/10/98 (FSA Insured) (BPA Commerzbank, AG)
CP mode 1,000 1,000
3.70% 7/10/98 (FSA Insured) (BPA Commerzbank, AG)
CP mode 1,925 1,925
New Orleans Aviation Board Series 1997 A, 4.20%
(MBIA Insured) (Liquidity Facility Credit Swiss First Boston)
VRDN (d) 12,600 12,600
Parish of St. James Resource Recovery
(American Iron Prod. Proj.) Series 1997, 4.25%,
LOC NationsBank, NA, VRDN 7,000 7,000
South Louisiana Port Commission Rev. Port Facs. Rev. Bonds
(Holnam Inc. Project) 4.20%, LOC ABN-AMRO
Bank, NV, VRDN (d) 3,600 3,600
West Baton Rouge Parish District No. 3 Rev.:
(Dow Chemical Co. Project):
Bonds Series 1991, 3.80% 5/7/98, CP mode 6,600 6,600
VRDN:
Series 1993, 4.40% (d) 1,400 1,400
Series1994 A, 4.40% (d) 500 500
Series 1995, 4.40% (d) 1,800 1,800
62,425
MAINE - 0.3%
Maine Edl. Loan Marketing Corp. Student Loan Rev. Series 1997
A-2, 4.10% (BPA Credit Swiss First Boston) VRDN (d) 7,500 7,500
Maine State Hsg. Auth. Mtg. Purchase Participating VRDN,
Series 1997 V, 4.25% (Liquidity Facility Caisse des
Depots Consigns) (e) 4,000 4,000
Maine State Hsg. Auth. Multi-Family Dev. Rev.
(Park Village Apts. Proj.) 4.25%, LOC Gen. Elec. Cap.
Corp., VRDN (d) 3,600 3,600
15,100
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MARYLAND - 1.4%
Baltimore Participating VRDN, Series SG-20, 4.20%
(Liquidity Facility Societe Generale) (e) $ 14,900 $ 14,900
Howard County Consolidated Pub. Impt. Series B, 3.55%
6/11/98 (Liquidity Facility Union Bank of Switzerland) CP 18,100
18,100
Howard County Econ. Dev. Rev. (Pace Inc. Proj.) 4.20%,
LOC Nationsbank, NA, VRDN 1,900 1,900
Maryland Commty. Dev. Administration Dept. of Hsg. &
Commty. Dev. Participating VRDN, Series PT-36, 4.25%
(Liquidity Facility Banque Nationale de Paris) (e) 790 790
Maryland Econ. Dev. Auth. Rev. (Grafco Ind. LP) Series 1996,
4.20%, LOC Nationsbank, NA, VRDN (d) 3,800 3,800
Montgomery County Hsg. Rev. Opportunities Commission
1997 Issue I, 4.20%, LOC Key Bank Nat'l. Assoc., VRDN (d) 22,500
22,500
Montgomery County Multi-Family Hsg. Rev. Series 1993 I,
4.70% (BPA Sumitomo Bank Ltd.) VRDN 2,600 2,600
64,590
MASSACHUSETTS - 0.8%
Eagle Tax-Exempt Trust Participating VRDN, Series 1996,
4.25% (Liquidity Facility Citibank, NA) (e) 22,000 22,000
Massachusetts Bay Trans. Auth. Series C, 3.70% 5/7/98,
LOC Westdeutsche Landesbank Girozentrale, CP 2,000 2,000
Massachusetts Turnpike Authority Participating VRDN,
Series 1997 N, 4.28% (Liquidity Facility Bank
of America Nat'l. Trust & Savings Bank, San Francisco) (e) 14,000
14,000
38,000
MICHIGAN - 1.2%
Detroit Consolidated School Dist. BAN 4.50% 5/1/98 23,500 23,500
Michigan Gen. Oblig. RAN 4.50% 9/18/98 2,500 2,506
Michigan Hosp. Fin. Auth. Participating VRDN, Series 1997 X,
4.25% (Liquidity Facility CoreStates Bank) (e) 7,200 7,200
Michigan Hsg. & Dev. Auth. Ltd. Oblig. Rev. (Woodland
Meadows Apt. Proj.) 4.15%, LOC Swiss Bank Corp. (d) 2,500 2,500
Michigan Strategic Fund:
(Bosal Ind. Proj.) Series 1998, 4.35%,
LOC Bank of New York, NA, VRDN (d) 4,500 4,500
Bonds (Dow Chemical Co. Proj.):
Series 1986, 3.50% 6/11/98, CP mode (d) 1,000 1,000
Series 1986, 3.50% 6/12/98, CP mode (d) 1,000 1,000
Series 1988, 3.70% 5/8/98, CP mode (d) 2,000 2,000
Series 1988, 3.70% 6/5/98, CP mode (d) 1,150 1,150
Series 1988, 3.50% 6/12/98, CP mode (d) 3,250 3,250
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MICHIGAN - CONTINUED
Michigan Strategic Fund: - continued
Limited Obligation Rev. Series 1995, 4.30%
(National Rubber of Michigan, Inc.) LOC Nat'l. Bank
of Canada VRDN (d) $ 2,100 $ 2,100
Solid Waste. Disp. Sys. Rev. (Great Lakes Recovery) 4.30%,
LOC NBD Bank, Michigan, VRDN 1,600 1,600
Michigan Trunk Line Participating VRDN, Series SG-87,
4.15% (FGIC Insured) (Liquidity Facility Societe
Generale) (e) 1,000 1,000
Wayne County Arpt. Rev. Rfdg. Series A, 4.15%,
LOC Bayerische Landesbank Girozentrale, VRDN (d) 3,600 3,600
56,906
MINNESOTA - 1.2%
Anoka County Solid Waste Disp. Bonds
(United Pwr. Assoc. Proj.) Series 88, 3.65% 6/12/98
(Nat'l. Rural Util. Coop. Guaranteed) CP mode (d) 1,700 1,700
Becker Poll. Cont. Rev. Bonds (Northern States Pwr. Co.,
Sherburne Co. Gen #3) Series 1993 B:
3.50% 6/12/98, CP mode 4,500 4,500
3.55% 7/13/98, CP mode 4,000 4,000
3.70% 9/8/98, CP mode 3,500 3,500
Duluth Econ. Dev. Auth. Health Care Facs. Participating VRDN:
Series 1994 E, 4.60% (Connie Lee Insured)
(Liquidity Facility Norwest Bank NA, Minnesota) (e) 1,575 1,575
Series 1994 F, 4.60% (Connie Lee Insured)
(Liquidity Facility Norwest Bank NA, Minnesota) (e) 1,890 1,890
Hennepin County Rev. Rfdg. Series 1996 C, 4.30%, VRDN (d) 3,100
3,100
Maplewood Multi-Family Hsg. Rev. Rfdg. (Silver Ridge Proj.)
Series 1993, 4.60%, LOC Federal Home Loan Bank of
Chicago, VRDN 2,500 2,500
Minneapolis & St. Paul Hsg. & Hosp. Participating VRDN,
Series 1996 G, 4.60% (Liquidity Facility Norwest
Bank NA, Minnesota) (e) 1,310 1,310
Minnesota Hsg. Fin. Agcy. Participating VRDN, Series 1995 A,
4.15%, LOC Rabobank Nederland Coop. Central (e) 21,300 21,300
Osseo Ind. School Dist. Participating VRDN, Series 1994 H,
4.60% (Liquidity Facility Norwest Bank NA, Minnesota) (e) 1,325
1,325
Red Wing Poll. Cont. Rev. (Northern States Pwr. Co.)
4.25%, VRDN 1,200 1,200
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MINNESOTA - CONTINUED
Rochester Health Care Facs.:
(Mayo Foundation Proj.) Series 1985 C, 4.30%
(Liquidity Facility Credit Swiss First Boston) VRDN $ 5,400 $ 5,400
Participating VRDN, Series 1994 K, 4.60%
(Liquidity Facility Norwest Bank) (e) 1,260 1,260
Spring Lake Park Independent School Dist. #16
Participating VRDN, Series 1996 E, 4.60%
(Liquidity Facility Norwest Bank, NA Minnesota) (e) 1,175 1,175
55,735
MISSISSIPPI - 0.1%
De Soto County Ind. Dev. Rev. (Flavorite Labs. Proj.)
Series 1991 A, 4.15%, LOC First Tennessee Bank NA,
Minnesota, VRDN 900 900
Mississippi Bus. Fin. Corp. (Calgon Carbon Corp.) 4.35%,
LOC PNC Bank, NA, VRDN (d) 2,000 2,000
2,900
MISSOURI - 0.9%
Independence Ind. Dev. Auth. (Interlock Realty Co. Proj.)
4.35%, LOC Star Bank, NA, VRDN (d) 350 350
Missouri Health & Edl. Facs. Research Facs. Rev.
(Stowers Institute Med. Research) 4.15%,
LOC Morgan Guaranty Trust Co., NY, VRDN 28,200 28,200
Missouri Higher Ed. Loan Auth. Student Loan Rev. VRDN:
Series1988 A, 4.20%, LOC Nat'l. Westminster Bank PLC (d) 3,000
3,000
Series 1990 B, 4.20%, LOC Nat'l. Westminster Bank PLC (d) 3,500
3,500
Missouri Hsg. Dev. Commission Participating VRDN, 4.25%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e) 2,170 2,170
Missouri Hsg. Dev. Rev. Single Family Mtg. Bonds
Series 1998-C, 3.90% tender 4/1/99 (d) 5,200 5,200
42,420
MONTANA - 0.1%
Forsythe Poll. Cont. Rev. (Portland Gen. Elec. Co.)
Series 1983 A, 4.05%, LOC Union Bank of
Switzerland, VRDN 2,000 2,000
Montana Board of Hsg. Single-Family Participating VRDN,
Series PT-87, 4.25% (Liquidity Facility Banco
Santander) (e) 2,400 2,400
4,400
NEBRASKA - 0.3%
Nebhelp Inc. Nebraska Rev. Series C, 4.20%,
LOC Student Loan Marketing Assoc.) VRDN 2,300 2,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEBRASKA - CONTINUED
Nebraska Investment Fin. Auth. Single Family Mtg. Rev.
Participating VRDN, Series 1992 D, 4.25% (Liquidity
Facility Bayerische Hypotheken-und Wechsel Bank) (e) $ 4,250 $ 4,250
Nebraska Single Family Hsg. Rev. Participating VRDN,
Series BTP-251, 4.30% (Liquidity Facility Bankers
Trust Co., NY) (e) 5,220 5,220
11,770
NEVADA - 2.6%
Clark County:
Arpt. Rev. Bonds (Adj. Rate Arpt. Sys.) Sub Lien
Rev. Series 1998B, 3.875% tender 7/8/98
(BPA Westdeutsche Landesbank Girozentrale) 19,000 19,000
Poll. Cont. Rev. Bonds (Southern California Edison Co. Proj.)
Series 1987A, 3.65% 9/9/98 CP mode (d) 7,100 7,100
School Dist. Participating VRDN:
Series BT-192, 4.25% (Liquidity Facility
Bankers Trust Co) (e) 4,850 4,850
Series SG-62, 4.15% (Liquidity Facility
Societe Generale) (e) 2,600 2,600
Spl. Fac. Arpt. Rev. Bonds (Signature Flight Support Corp.
Proj.) Series 1997 A, 3.70%, tender 6/1/98,
LOC Bayerische Landesbank Girozentrale 3,600 3,600
Las Vegas Valley Wtr. Dist. Series A, 3.70% 9/10/98,
LOC Union Bank of Switzerland, CP 16,800 16,800
Nevada Capital Improv. Bonds Participating VRDN, 4.25%
(Liquidity Facility Bankers Trust Co.) (e) 3,800 3,800
Nevada Gen. Oblig. Participating VRDN:
4.15% (Liquidity Facility Societe Generale) (e) 18,160 18,160
Series FR/RI-36, 4.15% (Liquidity Facility
Bank of New York, NA) (e) 4,175 4,175
Nevada Hsg. Div. VRDN:
(Oakmont at Flamingo Rd. Proj.) Series 1996 A, 4.20%,
LOC ABN-AMRO Bank, NV (d) 4,800 4,800
(Oakmont at Fort Apache Road Proj.) Series 1996 A,
4.20%, LOC ABN-AMRO Bank, NV (d) 3,800 3,800
(Pecos Owens Court Apt. Proj.) Series 1996,
4.20%, LOC Commerzbank, AG (d) 9,500 9,500
Nevada Muni. Participating VRDN, Series 1996 A, 4.25%
(Liquidity Facility Citibank NA) (e) 20,200 20,200
118,385
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW HAMPSHIRE - 3.7%
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.:
Bonds (New England Pwr. Co. Proj.):
Series 1990 A, 3.70% 5/19/98, CP mode (d) $ 3,000 $ 3,000
Series 1990 A, 3.65% 5/20/98, CP mode (d) 9,700 9,700
Series 1990 A, 3.70% 5/20/98, CP mode (d) 1,650 1,650
Series 1990 A, 3.60% 5/22/98, CP mode (d) 4,450 4,450
Series 1990 A, 3.45% 6/1/98, CP mode (d) 3,000 3,000
Series 1990 A, 3.55% 6/1/98, CP mode (d) 10,500 10,500
Series 1990 A, 3.55% 6/1/98, CP mode (d) 2,100 2,100
Series 1990 A, 3.70% 6/1/98, CP mode (d) 26,700 26,700
(United Illumination Co.) Series 1997 A,
4.20%, LOC Barclays Bank, PLC, VRDN (d) 52,000 52,000
New Hampshire Health. & Ed. (VHA New England, Inc.)
Series 85D, 4.15% (AMBAC Insured) VRDN 2,250 2,250
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev.:
(Countryside Ltd. Partnership) 4.15%,
LOC General Elec. Capital Corp., VRDN (d) 2,400 2,400
(Fairways Proj.) 4.20%, LOC General Elec. Capital
Corp., VRDN (d) 29,300 29,300
Rfdg. (Nashua-Oxford Proj.) Series 1990, 4.15%
(Continental Casualty Co. Guaranteed) VRDN 16,900 16,900
New Hampshire Hsg. Fin. Auth. Participating VRDN,
Series 1997 C, 4.25% (Liquidity Facility Merrill
Lynch & Co., Inc.) (e) 7,800 7,800
171,750
NEW JERSEY - 1.1%
New Jersey Gen. Oblig. Participating VRDN, Series 943005,
4.20% (Liquidity Facility Citibank, NA) (e) 9,700 9,700
New Jersey TRAN Series 1998A:
3.75% 5/14/98 (Liquidity Facility Bank of Nova Scotia) 23,500
23,500
3.50% 6/12/98 (Liquidity Facility Bank of Nova Scotia) 19,000
19,000
52,200
NEW MEXICO - 0.6%
Albuquerque Ind. Dev. Rev. (Plastech Corp.) Series 1994 A,
4.40%, LOC First Bank NA Minnesota VRDN (d) 185 185
Dona Ana County Ind. Rev. (Karr Tool & Mfg.) Series 1996,
4.35%, LOC Firstar Bank of Milwaukee, NA (d) 2,975 2,975
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW MEXICO - CONTINUED
New Mexico Mtg. Fin. Auth. Single-Family Mtg. Prog.:
Participating VRDN, Series PA-118, 4.25%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e) $ 4,810 $ 4,810
Bonds Series 1997-2, 3.90%, tender 10/15/98
(FGIC/Capital Market Svc. Guaranteed) (d) 5,000 5,000
New Mexico Student Loan Rev. Participating VRDN,
Series PT-67, 4.25% (Liquidity Facility Credit Swiss
First Boston Corp) (e) 1,760 1,760
New Mexico TRAN Series 1997, 4.50% 6/30/98 7,400 7,408
Sandoval County Multi-Family Hsg. Rev. Bonds
(Meadowlark Apts. Proj.):
Series 1997, 4%, tender 8/1/98 (FGIC/Capital Market
Svc. Guaranteed) (d) 3,000 3,000
Series 1997A, 3.90% tender 8/1/98 (FGIC Insured) (d) 2,530 2,530
27,668
NEW YORK - 1.7%
Nassau County BAN, Series 1998 A, 4.25% 8/17/98 7,000 7,013
New York City Gen. Oblig. Bonds:
Series L, 4.75% 8/1/98 1,900 1,904
Series H-3, 3.80% 5/7/98 (FSA Insured)
(BPA State Street Bank & Trust Co., Boston) CP mode 7,500 7,500
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev.
(400 W. 59th St. Proj.) 4.10%, LOC Bayerische
Hypotheken-und Wechsel Bank, VRDN (d) 7,200 7,200
New York City Participating VRDN, Series FR/RI-33 Reg. D,
4.10% (Liquidity Facility Bank of New York, NA) (e) 8,185 8,185
New York City RAN Series 1988 A, 4.50% 6/30/98 15,160 15,175
New York Metro Trans. Auth. Participating VRDN,
Series 983204, 4.20% (Liquidity Facility Citibank,
New York, NA) (e) 8,900 8,900
New York State Energy Research Dev. Auth.
Participating VRDN, 4.20% (Liquidity Facility Citibank) (e) 1,900
1,900
New York State Hsg. (Tribeca Park) Series 1997 A, 4%,
LOC Bayerische Hypotheken-und Wechsel Bank, VRDN 5,800 5,800
New York State Mtg. Agcy. Participating VRDN:
Series 1997, 4.30% (Liquidity Facility
Bank of New York, NA) (e) 2,600 2,600
Series 97J, 4.25% (Liquidity Facility CoreStates Bank) (e) 12,000
12,000
78,177
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW YORK & NEW JERSEY - 0.8%
New York & New Jersey Port Auth. Participating VRDN:
Series 6, 4.15% (Liquidity Facility Societe Generale) (e) $ 22,120 $
22,120
Series 6, 4.15% (Liquidity Facility Societe Generale) (e) 12,800
12,800
34,920
NORTH CAROLINA - 0.6%
Buncombe County Ind. Facs. & Poll. Cont. Fin. Auth.
(Gold Star Coating) Series 1997, 4.20%,
LOC Comerica Bank, Detroit, VRDN (d) 3,200 3,200
Buncombe County Poll. Cont. Fin. Auth. (Rich Mont)
Series 1991, 4.55%, LOC Bank of Tokyo-Mitsubishi,
Ltd, VRDN (d) 2,700 2,700
Robeson County Ind. Facs. & Poll. Cont. Rev.
(Culp Inc. Proj.) 4.20%, LOC Wachovia, NA, VRDN (d) 8,500 8,500
Surry Ind. Facs Poll. Cont. Rev. (Intex Corp.) 4.20%,
LOC Nationsbank, NA, VRDN (d) 1,100 1,100
Wake County Ind. Facs. & Poll. Cont. Fing. Auth. Rev.
(Carolina Pwr. & Lt. Co.) VRDN:
Series 1985, 4.75%, LOC Sumitomo Bank, Ltd. 10,800 10,800
Series B, 4.75%, LOC Sumitomo Bank, Ltd. 2,900 2,900
29,200
OHIO - 1.9%
Butler County BAN 3.95% 6/19/98 2,615 2,616
Cleveland City School Dist. Rev. Participating VRDN, 4.25%
(Liquidity Facility Bankers Trust Co.) (e) 4,800 4,800
Greene County Gen Oblig BAN:
Series C, 4.25% 6/4/98 5,000 5,001
Series E, 4.25% 6/4/98 4,380 4,382
Ohio Air Quality Dev. Auth.:
Bonds (Duquesne Lt. Co. Proj.) Series 88, 3.65% 9/10/98,
LOC Toronto-Dominion Bank, PLC, CP mode (d) 3,000 3,000
(JMG Funding Ltd.) 4.15%, LOC Societe Generale,
VRDN (d) 4,000 4,000
Ohio Higher Ed. (Pooled Fing. Prog.) 4.25%, LOC Fifth
Third Bank, VRDN 10,100 10,100
Ohio Hsg. Fin. Agcy. Mtg. Rev.:
(Willowlakes Apt. Proj.) Series A, 4.25%,
LOC Bank One, NA, VRDN (d) 1,500 1,500
Participating VRDN, Series 1998 A-1, 4.15%
(Liquidity Facility Bank of New York, NA) (e) 3,800 3,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
OHIO - CONTINUED
Ohio Hsg. Fin. Agcy. Mtg. Rev.: - continued
Participating VRDN, Series 1998 A-1, 4.25% (Liquidity
Facility Bank of America Nat'l. Trust & Savings Bank) (e) $ 20,300 $
20,300
Ohio Wtr. Dev. Auth. Bonds:
(Cleveland Elec. Proj.) Series 88A, 3.80% 8/11/98
(FGIC Insured) CP mode (d) 7,400 7,400
(Duquesne Lt. Co. Proj.):
3.65% 5/19/98, LOC Toronto-Dominion Bank, PLC,
CP mode (d) 3,350 3,350
3.65% 9/4/98, LOC Toronto-Dominion Bank, PLC,
CP mode (d) 3,000 3,000
3.75% 5/11/98, LOC Toronto-Dominion Bank, PLC,
CP mode (d) 3,000 3,000
Richland County Ind. Dev. Rev. (Sabin Robbins Paper Co.)
Series 1997, 4.30%, LOC Fifth Third Bank,
Cincinnati, VRDN 1,200 1,200
Scioto County Marine Term. Facs. Rev.
(Norfolk Southern Corp. Proj.) 5.40%, VRDN 3,400 3,400
Stark County (H-P Products, Inc. Proj.) 4.38%,
LOC Key Bank Nat'l. Assoc., VRDN (d) 2,300 2,300
Student Loan Funding Corp. Rev., Series 1990-A3, 4.10%,
LOC Nat'l. Westminster Bank PLC, VRDN (d) 3,800 3,800
86,949
OKLAHOMA - 1.1%
Guymon Utils. Auth. Rev. (Seaboard Proj.) Series 1995,
4.25%, LOC SunTrust Bank, Atlanta, VRDN (d) 3,300 3,300
Oklahoma Hsg. Fin. Auth. Single Family Mtg. Rev.
Series 1997 A, Participating VRDN, 4.25% (Liquidity
Facility Bayerische Hypotheken-und Wechsel Bank) (e) 3,770 3,770
Oklahoma Hsg. Fin. Agcy. Participating VRDN:
4.52% (Liquidity Facility Banque Nationale de Paris) (e) 5,000
5,000
Series 1996 G, 4.25% (Liquidity Facility Caisse
des Depots et Consigns) (e) 2,260 2,260
Oklahoma School Dist. Cfts. of Prtn. RAN Series 1997 A,
4.50% 6/30/98 6,200 6,202
Oklahoma Student Loan Auth. Series 1997 A, 4.20%
(MBIA Insured) (BPA Student Loan Marketing Assoc.) VRDN (d) 17,900
17,900
Tulsa Int'l. Arpt. Gen. Rev. Participating VRDN:
Series 1997 B1, 4.25% (Liquidity Facility Bank of
America Nat'l. Trust & Savings Bank) (e) 4,100 4,100
Series 1997 B2, 4.20% (Liquidity Facility
Bank of America Nat'l. Trust & Savings Bank (e) 7,200 7,200
49,732
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
OREGON - 0.3%
Oregon Board of Higher Ed. Participating VRDN,
Series SGA-29, 4.20% (Liquidity Facility Societe
Generale) (e) $ 10,000 $ 10,000
Oregon Econ. Dev. Rev. (Schnitzer Steel Ind. Inc.) Series 176,
4.30%, LOC Commerzbank, Germany, VRDN (d) 2,300 2,300
Oregon Hsg. & Commty. Svc. Dept. Mtg. Rev. Bonds
Series 1997 D, 4.05%, tender 5/14/98 (d) 3,150 3,150
15,450
PENNSYLVANIA - 6.9%
Berks County Ind. Dev. Auth. Ind. Dev. Rev.
(Continental Assurance Co. Proj.) Series 82, 3.80%
(Continental Casualty Co. Guaranteed) VRDN 2,800 2,800
Carbon County Ind. Dev. Auth. Resource Recovery Bonds
(Panther Creek Partners Proj.):
Series 90A, 3.60% 6/12/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 5,000 5,000
Series 90A, 3.65% 9/4/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 4,445 4,445
Series 90B, 3.65% 9/11/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 3,350 3,350
Series 91A, 3.65% 9/9/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 5,700 5,700
City of Pittsburgh Gen. Oblig. Participating VRDN,
Series 1996 A, 4.25% (Liquidity Facility
Bankers Trust Co.) (e) 3,500 3,500
Crawford County Ind. Dev. Auth. (Clear Lake Lumber, Inc. Proj.)
Series 1997, 4.35%, LOC PNC Bank, NA, VRDN 4,000 4,000
Dallastown Area School Dist. York County Pennsylvania
Series 98, 4.17% (FGIC Insured)
(BPA FGIC Security Purchase Inc.) VRDN 9,750 9,750
Dauphin County School Dist. Rev. 4.25% (AMBAC Insured)
(BPA Bank of Nova Scotia, Commerzbank, AG) VRDN 14,400 14,400
Del Valley Reg. Fin. Auth. Local Govt. Participating VRDN,
Series B, 4.15% (Liquidity Facility
Merrill Lynch & Co., Inc.) (e) 3,580 3,580
Lycoming County Ind. Dev. Auth. (Coastal Aluminum
Rolling Mills) Series 1995, 4.35%,
LOC Meridian Bank, VRDN (d) 3,800 3,800
North Lebanon Township Rev. (Grace Commty. Inc. Proj.)
Series 1992 B, 4.55%, LOC CoreStates Bank, VRDN 2,095 2,095
North Penn Wtr. Auth. Wtr. Rev. Participating VRDN,
Series SG-30, 4.20% (Liquidity Facility Societe
Generale) (e) 4,000 4,000
Northampton County Ind. Dev. Auth. (Binney & Smith, Inc. Proj.)
Series 1997 A, 4.35%, LOC First Nat'l. Bank of
Chicago, VRDN (d) 1,900 1,900
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Northeastern Hosp. Auth. Rev. Bonds (Hosp. Center Services)
Series B, 3.50% 6/12/98 (MBIA Insured)
(BPA PNC Bank, NA) CP mode $ 4,000 $ 4,000
Northumberland County Ind. Dev. Auth. Rev.
(Foster Wheeler Mt. Carmel Proj.) 4.15%,
LOC Union Bank of Switzerland, VRDN (d) 6,455 6,455
Northumberland County Ind. Dev. Resource Recovery
(Foster Wheeler Mt. Carmel Proj.) Series 1987 B, 4.15%,
LOC Union Bank of Switzerland, VRDN 1,450 1,450
Pennsylvania Econ. Dev. Auth. Rev. VRDN:
Series 1995 A6, 4.35%, LOC PNC Bank, NA (d) 1,700 1,700
Series 1996 D5, 4.35%, LOC PNC Bank, NA (d) 3,000 3,000
Series 1997 B1, 4.35%, LOC PNC Bank, NA (d) 1,700 1,700
Series 1997 B6, 4.35%, LOC PNC Bank, NA (d) 1,100 1,100
Series 1997 B7, 4.35%, LOC PNC Bank, NA (d) 1,000 1,000
Series 1997 B8, 4.35%, LOC PNC Bank, NA (d) 1,200 1,200
Series 1997 B9, 4.35%, LOC PNC Bank, NA (d) 1,300 1,300
(Alpha Carb Enterprises) Series 1991 D1, 4.35%,
LOC PNC Bank, NA (d) 1,300 1,300
Pennsylvania Higher Ed. Assistance Agcy. Student Loan Rev. VRDN:
Series 1988 A, 4.20%, LOC Student Loan Marketing Assoc. (d) 13,000
13,000
Series 1988 B, 4.20%, LOC Student Loan Marketing Assoc. (d) 6,000
6,000
Series 1988 E, 4.20%, LOC Student Loan Marketing Assoc. (d) 16,800
16,800
Series 1994 A, 4.20%, LOC Student Loan Marketing Assoc. (d) 67,550
67,550
Series 1997 A, 4.25%, LOC Student Loan Marketing Assoc. (d) 8,700
8,700
Pennsylvania Higher Ed. Fac. Auth. Health Rev. Participating
VRDN, Series MGT-4A, 4.25% (Liquidity Facility Morgan
Guaranty Trust Co.) (e) 4,750 4,750
Pennsylvania Higher Ed. Loan Assistance Prog.
Student Loan Rev. 4.20%,
LOC Student Loan Marketing Assoc., VRDN (d) 19,500 19,500
Pennsylvania Hsg. Fin. Agcy. Single-Family Mtg. Rev.
Participating VRDN:
Series 1997-56C, 4.15% (Liquidity Facility Credit
Swiss First Boston) (e) 5,520 5,520
Series ML PT-119B, 4.15% (Liquidity Facility Credit
Swiss First Boston) (e) 3,220 3,220
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Philadelphia Arpt. Rev. Trust Receipts
Participating VRDN, Series 1997, 4.15%
(Liquidity Facility Bank of New York, NA) (e) $ 14,800 $ 14,800
Philadelphia Gen. Oblig. TRAN Series A 1997-98,
4.50% 6/30/98 17,800 17,814
Philadelphia Redevelopment Auth. (Southwork Plaza Proj.)
Series 1997 A, 3.45%, LOC PNC Bank, NA, VRDN (d) 12,500 12,500
Philadelphia School Dist. Participating VRDN, Series 1997 W,
4.25% (Liquidity Facility CoreStates Bank) (e) 5,450 5,450
Sayre Health Care Facs. Auth. Hosp. Rev. (VHA of
Pennsylvania) Series 1985 K, 4.10% (AMBAC Insured)
(BPA First Nat'l. Bank of Chicago) VRDN 2,100 2,100
Venango Ind. Dev. Auth. Resource Recovery Bonds
(Scrubgrass Proj.):
Series 1990A, 3.60% 7 /10/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 2,900 2,900
Series 1990B, 3.65% 5/19/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 3,300 3,300
Series 1993, 3.65% 9/11/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (d) 2,000 2,000
Westmoreland County Ind. Dev. Auth. Rev.
(Nat'l. Waste & Energy Corp.) Series 1993, 4.35%,
LOC Fleet Bank, NA, VRDN (d) 3,300 3,300
York City Gen. Auth. Pooled Fing. Rev. Series 1996, 4.15%,
LOC First Union Nat'l. Bank of NC, VRDN 13,500 13,500
315,229
RHODE ISLAND - 0.3%
Rhode Island Hsg. & Mtg. Fin. Auth. Participating VRDN:
Series 23, 4.25% (Liquidity Facility Caisse des Depots
et Consigns) (e) 6,260 6,260
Series 30, 4.30% (Liquidity Facility Bank of New York, NA) (e) 8,075
8,075
Rhode Island Ind. Facs. Corp. Ind. Dev. Rev. (NFA Corp.Proj.)
4.50%, LOC BankBoston, VRDN (d) 1,900 1,900
16,235
SOUTH CAROLINA - 3.6%
Kershaw County Ind. Dev. Rev. Rfdg. (New South Proj.)
Series 1992, 4.15%, LOC NationsBank, NA., VRDN 6,500 6,500
Lancaster County Ind. Dev. Rev. (Synteen Tech., Inc. Proj.)
Series 1997, 4.25%, LOC NationsBank, NA, VRDN (d) 2,500 2,500
Marlboro County Ind. Dev. Rev. (Reliance Trading Corp.)
Series 1997, 4.25%, LOC LaSalle Nat'l. Bank, Chicago,
VRDN (d) 1,250 1,250
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
SOUTH CAROLINA - CONTINUED
Marlboro County Solid Waste Disposal Fac.
(Willamette Ind. Inc. Proj.) Series 1995, 4.20%,
LOC Deutsche Bank, AG, VRDN (d) $ 15,000 $ 15,000
Orangeburg County Solid Waste Disp.
Participating VRDN, Series 1997 B, 4.30%
(Liquidity Facility CoreStates Bank) (e) 6,400 6,400
South Carolina Cap. Impt. Participating VRDN, Series BT-27,
4.26% (Liquidity Facility Automatic Data Processing, Inc.) (e) 2,193
2,193
South Carolina Hsg. Fin. & Dev. Auth. Series 1997 B, 3.90%
tender 12/1/98 (d) 13,000 13,000
South Carolina Jobs Econ. Dev. Auth. VRDN:
(Chambers Richland Co. Landfill) 4.25%,
LOC SunTrust Bank, Atlanta (d) 3,000 3,000
(Mita South Carolina, Inc. Proj.) Series 1997, 4.45%,
LOC Bank of Tokyo-Mitsubishi Ltd. (d) 3,500 3,500
(Mohawk Industries Inc.):
4.35%, LOC First Union Nat'l. Bank of Georgia (d) 1,500 1,500
4.35%, LOC First Union Nat'l. Bank of Georgia (d) 1,800 1,800
4.35%, LOC First Union Nat'l. Bank of Georgia (d) 3,900 3,900
South Carolina Jobs Econ. Dev. Auth. Healthcare Facs.
Rev. (The Methodist Home Proj.) Series 1994, 4.15%,
LOC NationsBank NA, VRDN 6,900 6,900
South Carolina Port Auth. Jr. Lien, 4.20%,
LOC Wachovia Bank, NA, VRDN (d) 1,000 1,000
South Carolina Pub. Svc. Auth.:
(Santee Cooper Proj.) CP:
3.55% 7/10/98 (Liquidity Facility Bank of Nova Scotia) 47,000
47,000
3.60% 7/13/98 (Liquidity Facility Bank of Nova Scotia) 1,200 1,200
3.70% 7/16/98 (Liquidity Facility Bank of Nova Scotia) 21,100
21,100
3.55% 7/24/98 (Liquidity Facility Bank of Nova Scotia) 11,500
11,500
3.50% 8/21/98 (Liquidity Facility Bank of Nova Scotia) 4,400 4,400
Participating VRDN, Series 1996, 4.20% (Liquidity Facility
Citibank, NA (e) 6,300 6,300
Williamsburg County Ind. Dev. Auth. (Peddinghaus Corp.)
4.25%, LOC LaSalle National Bank of Chicago, VRDN (d) 3,500 3,500
163,443
SOUTH DAKOTA - 1.2%
South Dakota Hsg. Dev. Auth.:
Participating VRDN:
Series PT-85, 4.25% (Liquidity Facility Rabobank
Nederland, NV) (e) 16,170 16,170
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
SOUTH DAKOTA - CONTINUED
South Dakota Hsg. Dev. Auth.: - continued
Participating VRDN: - continued
Series PA-119, 4.25% (Liquidity Facility Merrill
Lynch & Co.) (e) $ 7,500 $ 7,500
Series 1997 E, 4.40%, LOC Westdeutsche Landesbank
Girozentrale, VRDN (d) 27,015 27,015
Bonds Series G, 3.95% tender 8/13/98 (d) 6,600 6,600
57,285
TENNESSEE - 3.2%
Chattanooga Ind. Dev. Board:
(Burner Systems Inc.) 4.20%, LOC NationsBank, NA,
VRDN (d) 2,000 2,000
(Chattanooga Bakery Inc.) 4.25%, LOC Suntrust Bank
Nashville NA VRDN (d) 3,500 3,500
Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products
Inc. Proj.) 4.35%, LOC PNC Bank, VRDN (d) 500 500
Cumberland County Ind. Dev. Board Ind. Dev. Rev. (Delbar
Products, Inc. Proj.) 4.35%, LOC PNC Bank, NA, VRDN (d) 1,500 1,500
Dickson County Ind. Dev. Board Ind. Dev. Rev. (Tennessee Bun
Co.) Series 1996, 4.35%, LOC PNC Bank, Ohio, VRDN (d) 2,500 2,500
Fayetteville & Lincoln County Ind. Dev. Rev. (V.A.W. of
America, Inc.) Series 1997, 4.25%,
LOC NationsBank, NA, VRDN (d) 1,000 1,000
Jackson Ind. Dev. Board Rev. (Florida Steel Corp. Proj.)
Series 1995, 4.20%, LOC NationsBank, NA
South, VRDN (d) 3,000 3,000
Knox County Ind. Dev. Board (Southern Foundry Supply Inc.
Project) 4.25%, LOC Suntrust Bank Nashville NA VRDN 1,900 1,900
Memphis-Shelby County Arpt. Auth. Rev. VRDN:
Series 1996 A, 4.15%, LOC First Union
Nat'l. Bank of North Carolina (d) 900 900
Series 1996 B-1, 4.15%, LOC First Union
Nat'l. Bank of North Carolina (d) 27,700 27,700
Series 1996 B-3, 4.15%, LOC First Union
Nat'l. Bank of North Carolina (d) 2,400 2,400
Series 1996 B-4, 4.15%, LOC First Union
Nat'l. Bank of North Carolina (d) 24,000 24,000
Memphis-Shelby County Poll. Cont. Rev.
(Birmingham Steel) Series 1996, 4.35%,
LOC PNC Bank, Kentucky, VRDN (d) 4,300 4,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TENNESSEE - CONTINUED
Memphis Ctr. Rev. Fin. Corp. (Arbors of Hbr. Town Project) Series
1990, 4.45% (Northwestern Mutual Guaranteed) VRDN $ 10,150 $ 10,150
Metropolitan Govt. Nashville & Davidson County Gen. Oblig.
Participating VRDN, Series SG-11, 4.20%
(Liquidity Facility Societe Generale) (e) 4,100 4,100
Montgomery County Pub. Bldg. Auth. Adj. Rate Pooled Fin. Rev.
Series 1997, 4.10%, LOC Nationsbank, NA, VRDN 6,000 6,000
Morristown Ind. Rev. (Tuff Torq Corp. Proj.) Series 1989,
4.20%, LOC Bank of Tokyo-Mitsubishi, VRDN (d) 1,830 1,830
Nashville & Davidson County Gen. Oblig. Participating VRDN,
4.20% (Liquidity Facility Citibank New York, NA) (e) 16,200 16,200
Nashville & Davidson County Health & Edl. Facs. Rev. Bonds
(Vanderbilt Univ.) 3.50% 6/11/98
(Liquidity Facility Nationsbank, NA) CP mode 1,500 1,500
Oakridge Ind. Dev. Board Rev. Solid Waste Fac.
(Environmental L.P.) Series 1996, 4.25%,
LOC SunTrust Bank, Atlanta, VRDN (d) 1,800 1,800
Selmer McNairy County Ind. Dev. Rev. (United Stainless Proj.)
4.15%, LOC Bank of America, Illinois, VRDN (d) 3,600 3,600
Shelby County Gen. Oblig. Participating VRDN, Series 964201,
4.25% (Liquidity Facility Citibank, NA) (e) 13,500 13,500
South Pittsburg Ind. Dev. Board Rev. (Lodge Manufacturing Proj.)
4.25%, LOC SunTrust Bank Nashville, NA, VRDN (d) 1,800 1,800
Tennessee Hsg. Dev. Agcy. Participating, VRDN Series PT-59B,
4.25% (Liquidity Facility Credit Swiss First Boston (e) 1,000 1,000
Volunteer State Student Funding Corp. Student Loan Rev.,
Series 1988 A-1, 4.20%, LOC Sumitomo Bank, VRDN (d) 6,100 6,100
Williamson County First Mtg. Rev. (Telco, Inc.) Series 1996,
4.25%, LOC NationsBank of Tennessee, VRDN (d) 2,400 2,400
145,180
TEXAS - 15.5%
Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Riverchase Proj.) Series 1985 A, 4.60%,
LOC Household Finance Corp., VRDN 1,600 1,600
Austin Independent School Dist. Adj. Rate TRAN:
4.11% 8/31/98 (f) 2,200 2,200
4.11% 8/31/98 (f) 3,080 3,080
4.11% 8/31/98 (f) 5,720 5,720
Austin Util. Sys. Rev. Bonds Series A, 3.50% 6/12/98,
LOC Morgan Guaranty Trust Co., NY, CP 5,585 5,585
Brazos Hbr. Ind. Dev. Auth. Bonds:
(Dow Chemical Co. Proj.):
Series 1986, 3.50% 6/12/98, CP mode 6,000 6,000
Series 1986, 3.60% 6/10/98, CP mode 1,460 1,460
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Brazos River Auth. Poll. Cont. Rev. Rfdg. Bonds
(Texas Util.Elec. Proj.) Series 1994A:
3.60% 5/15/98, LOC Canadian Imperial Bank
of Commerce, CP mode (d) $ 1,000 $ 1,000
3.65% 911/98, LOC Canadian Imperial Bank
of Commerce, CP mode (d) 6,500 6,500
Brazos River Bonds Hbr. Navigation Dist. of Brazoria County:
(Dow Chemical Co. Proj.):
Bonds:
Series 1988, 3.50% 5/18/98, CP mode (d) 5,000 5,000
Series 1988, 3.70% 6/5/98, CP mode (d) 8,970 8,970
Series 1988, 3.50% 6/11/98, CP mode (d) 2,200 2,200
Series 1988, 3.50% 6/12/98, CP mode (d) 13,000 13,000
Series 1991, 3.55% 5/22/98, CP mode (d) 8,200 8,200
Series 1991, 3.55% 6/11/98, CP mode (d) 4,000 4,000
Series 1992, 3.70% 6/5/98, CP mode (d) 4,400 4,400
Series 1992, 3.50% 6/12/98, CP mode (d) 14,260 14,260
VRDN:
Series 1992 A, 4.40% (d) 1,500 1,500
Series 1993, 4.40% (d) 5,700 5,700
Series 1996, 4.40% (d) 2,700 2,700
Brownsville Ind. Dev. Corp. Rev. (Rich-Seapak Corp. Proj.)
Series 1997 4.25%, LOC SunTrust Bank, Atlanta,
VRDN (d) 1,500 1,500
Brownsville Util. Sys. Rev. Series A, CP:
3.50% 6/12/98, LOC Toronto-Dominion Bank, PLC 1,000 1,000
3.55% 7/10/98, LOC Toronto-Dominion Bank, PLC 7,900 7,900
3.70% 9/8/98, LOC Toronto-Dominion Bank, PLC 1,000 1,000
Colorado River Muni. Wtr. Dist. Rev. Participating VRDN,
Series PA-187, 4.15% (Liquidity Facility Merrill
Lynch & Co., Inc.) (e) 8,930 8,930
Comal County Health Facs. Dev. (McKenna Memorial
Health Sys.) 4.20%, LOC Texas Commerce Bank, NA,
Houston, VRDN 6,700 6,700
Dallas-Fort Worth Reg. Arpt Participating VRDN:
Series SG-5, 4.25% (Liquidity Facility Societe Generale) (e) 5,000
5,000
Series 954301, 4.25% (Liquidity Facility Citibank, NA) (e) 23,400
23,400
De Soto Independent School Dist. Participating VRDN,
Series SGA-25, 4.20% (Liquidity Facility Societe
Generale) (e) 7,230 7,230
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Denton Util. Sys. Rev. Rfdg. Participating VRDN,
Series SG-32, 4.20% (Liquidity Facility
Societe Generale) (e) $ 7,230 $ 7,230
El Paso Ind. Dev. Auth. (Camden Wire Co. Inc.) Series 1996,
4.30%, LOC NationsBank, NA VRDN (d) 2,300 2,300
Galveston Ind. Dev. Corp. Rev. Rfdg. (Mitchell Interests) 4.25%,
LOC National Westminster Bank PLC, VRDN (d) 6,000 6,000
Georgetown Ind. Dev. Auth. Rev. (Chatsworth Products, Inc.)
Series 1996, 4.25%, LOC Bank One Texas, VRDN (d) 4,040 4,040
Goose Creek Consolidated Independent School Dist.
Adj. Rate TRAN:
4.11% 8/28/98 (f) 2,400 2,400
4.11% 8/28/98 (f) 3,408 3,408
Grand Prairie Ind. Dev. Auth. Rev. (Precision/
API Ketema Proj.) Series 1996, 4.55%, LOC Marine
Midland Bank, NA, VRDN (d) 780 780
Greater East Texas Higher Ed. Auth. Student Loan Rev. Bonds:
Series 1992 A, 4.05%, tender 9/1/98 LOC Student Loan
Marketing Assoc. (d) 7,500 7,500
Series 1993 B, 4.10%, tender 6/1/98, LOC Student Loan
Marketing Assoc. (d) 1,500 1,500
Greater East Texas Higher Ed. Auth. Student Loan Rev. Rfdg.,
Series 1992 B, 3.60%, LOC SLMA, VRDN (d) 1,800 1,800
Greater Texas Student Loan Corp. Bonds
Series 1998-A, 3.70%, tender 2/1/99,
LOC Student Loan Marketing Assoc. (d) 14,550 14,550
Gulf Coast Ind. Dev. Auth. Rev. (Mueller Flow Tech., Inc. Proj.)
Series 1997, 4.35%, LOC NBD Bank, NA, Detroit,
VRDN (d) 5,000 5,000
Gulf Coast Waste Disp. Auth. Solid Waste Disp.
Rev. Bonds (Amoco Oil Co. Proj.)
Series 1991, 3.80% tender 10/1/98 4,600 4,600
Harlingen Ind. Dev. Auth. (Gibbs-Texas Die Casting) 4.40%,
LOC Harris Trust & Savings Bank of Chicago, VRDN (d) 6,000 6,000
Harris County:
Health Facs Rev. Bonds (Sisters of Charity Incarnate Word)
Series 1997A, 3.60% 6/8/98 (BPA Toronto-Dominion
Bank) CP mode 6,000 6,000
Hsg. Fin. Corp. (The Mills Apts. Proj.) 4.20%
(Fannie Mae Guaranteed) VRDN (d) 4,000 4,000
Multi-Family Housing Auth. (Trails of Ashford Apt.)
Series 1997, 4.20% (Fannie Mae Guaranteed) VRDN (d) 9,050 9,050
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Houston Arpt. Sys. Senior Lien Notes Series 1993 CP:
3.70% 5/5/98, LOC Canadian Imperial
Bank of Commerce (d) $ 5,000 $ 5,000
3.50% 6/10/98, LOC Canadian Imperial
Bank of Commerce (d) 2,400 2,400
3.70% 7/13/98, LOC Canadian Imperial
Bank of Commerce (d) 8,600 8,600
Houston Gen. Oblig. Series B CP:
3.55% 7/24/98 (Liquidity Facility Morgan Guaranty
Trust Co., NY) 18,000 18,000
3.55% 9/11/98 (Liquidity Facility Morgan Guaranty
Trust Co., NY) 7,000 7,000
Houston Higher Ed. Fin. Corp. (The Graduate Apts. Proj.)
4.20% 7/1/98, LOC Texas Commerce Bank, NA, VRDN 4,750 4,750
Houston TRAN Series 1997, 4.50% 6/30/98 10,000 10,010
Houston Wtr. & Swr. Rev. Series A, 3.85% 8/13/98
(Liquidity Facility Credit Swiss First Boston) CP 9,700 9,700
Houston Wtr. & Swr. Sys. Participating VRDN:
Series 1998, 4.15% (Liquidity Facility Bank of
New York, NA) (e) 13,230 13,230
Series SG-24, 4.25% (Liquidity Facility Societe Generale) (e) 4,700
4,700
Hurst Euless Bedford Ind. School Dist. Unltd. Tax Rfdg.
Participating VRDN, Series ML SG-98, 4.15%
(Liquidity Facility Societe Generale) (e) 5,270 5,270
Matagorda County Navigation Dist. #1 Participating VRDN:
Series 1989 C, 4.20% (Liquidity Facility Caisse des Depots
et Consigns) (e) 14,800 14,800
Series 1989 D, 4.25% (Liquidity Facility Caisse des Depots
et Consigns) (e) 5,240 5,240
McKinney Ind. Dev. Corp. Ind. Dev. Rev. (Delta Daily Food Inc.
Proj.) Series 1994, 4.25%, LOC ABN-AMRO Bank, VRDN (d) 8,500 8,500
Mineral Wells Ind. Dev. Corp. (Electronic Interconnects)
Series 1997, 4.55%, LOC NBD Bank, NA Detroit,
VRDN (d) 5,100 5,100
Nacogdoches Ind. Dev. Auth. Rev. Rfdg. (La Quinta Motor Inns
Inc. Proj.) 4.15%, LOC NationsBank of Texas, VRDN 1,605 1,605
North Central Texas Health Facs. Dev. Auth. Bonds (Methodist
Hosp. of Dallas) Series 91B, 3.50% 6/11/98 (MBIA Insured)
(BPA Rabobank Nederland Coop. Central) CP mode 3,000 3,000
North Texas Higher Ed. Auth. Student Loan Rev. VRDN:
Series 1990, 4.20%, LOC Student Loan Marketing Assoc. (d) 5,900
5,900
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
North Texas Higher Ed. Auth. Student Loan Rev. VRDN: - continued
Series 1990, 4.20%, LOC Student Loan Marketing Assoc. (d) $ 4,600 $
4,600
Series 1991 F, 4.20% (AMBAC Insured) (BPA Student Loan
Marketing Assoc.) (d) 7,600 7,600
Series 1993 A, 4.20%, LOC Student Loan Marketing Assoc. (d) 5,500
5,500
Series A, 4.20% (AMBAC Insured) (Liquidity Facility
Student Loan Marketing Assoc.) (d) 7,400 7,400
North Texas Tollway Auth. Participating VRDN, Series 1997 A,
4.15% (Liquidity Facility Merrill Lynch & Co., Inc.) (e) 10,000
10,000
Plano Health Facs. Dev. Auth. Bonds (Children's & Presbyterian
Health Care Center Proj.) 3.60% 6/8/98 (MBIA Insured)
(BPA Texas Commerce Bank, NA) CP mode 1,100 1,100
Port Arthur Navigational Dist. Poll. Cont. Rev.
(Star Enterprise Proj.) Series 1994, 4.30%,
LOC Swiss Bank Corp., VRDN (d) 43,200 43,200
Port Arthur Texas Navigation Dist. Rev. (Star Enterprise Proj.)
Series 1998, 4.30%, LOC Bank of Montreal, VRDN 23,000 23,000
Port Corpus Christi Ind. Dev. Corp. (Coastal Corp.) Series 1997,
4.20%, LOC Banque Nationale. de Paris, VRDN (d) 25,000 25,000
Port Corpus Christi Waste Rev. (Coastal Refining & Mktg.)
4.20%, LOC Banque Nationale de Paris, VRDN (d) 4,900 4,900
San Antonio Elec. & Gas Rev.:
Participating VRDN:
Series SG101, 4.15% (Liquidity Facility Societe
Generale) (e) 9,225 9,225
Series SG104, 4.15% (Liquidity Facility Societe
Generale) (e) 11,725 11,725
Series SG105, 4.15% (Liquidity Facility Societe
Generale) (e) 21,800 21,800
Series A, CP:
3.55% 9/11/98 5,000 5,000
3.60% 9/16/98 6,800 6,800
San Antonio Hotel Occupancy Tax Rev. Participating VRDN,
Series SG-51, 4.15% (Liquidity Facility Societe Generale) (e) 4,150
4,150
San Antonio Hsg. Fin. Auth. VRDN:
(Eagle's Nest Apt. Proj.) 4.20% (Fannie Mae Guaranteed) (d) 1,100
1,100
(Hbr. Care Ambassador) 4.20% (Fannie Mae Guaranteed) (d) 3,700
3,700
(La Jolla Apts.) 4.20% (Fannie Mae Guaranteed) (d) 8,000 8,000
(Wellington Place Proj.) 4.20% (Fannie MAe Guaranteed) (d) 5,945
5,945
San Antonio Hsg. Fin. Auth. Multi-Family Rev. VRDN:
(Cape Cod Apts.) Series 1990, 4.20%
(Fannie Mae Guaranteed) (d) 8,100 8,100
(Mesa Ridge Apts. Proj.) 4.20% (Fannie Mae Guaranteed) (d) 5,100
5,100
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
San Antonio Wtr. Rev. Participating VRDN, Series 1996,
4.25% (Liquidity Facility Citibank, NA) (e) $ 5,800 $ 5,800
San Marcos Ind. Dev. Corp. Ind. Dev. Rev.
(Butler Manufacturing Co.) Series 1995, 4.57%,
LOC NationsBank of Texas, VRDN (d) 3,000 3,000
Terrel Dev. Corp.Ind. Dev. Rev. (Consolidated Systems) 4.25%,
LOC Wachovia Bank, VRDN (d) 5,400 5,400
Texas A&M Univ. Rev. Bonds Series B, 3.60% 6/8/98
(Liquidity Facility Morgan Guaranty Trust Co., NY) CP mode 3,600
3,600
Texas A&M Univ. Sys. Participating VRDN, Series SG-21,
4.20% (Liquidity Facility Societe Generale) (e) 7,500 7,500
Texas Assoc. of School Boards TRAN Series 1997,
4.30% 8/31/98 10,770 10,770
Texas Dept. of Hsg. & Commty. Affairs Participating VRDN:
Series PT-9, 4.15% (BPA Merrill Lynch & Co.) (e) 2,510 2,510
4.15% (Liquidity Facility Bayerische Hypotheken-und
Wechsel Bank) (e) 5,340 5,340
Texas Gen. Oblig. TRAN 4.75% 8/31/98 18,900 18,954
Texas Pub. Fin. Auth.:
Series B, 3.60% 5/15/98, CP 1,000 1,000
Participating VRDN, Series 1996-CB2,
4.25% (Liquidity Facility Chase Manhattan Bank) (e) 4,970 4,970
Texas Tpk. Auth. Participating VRDN, Series PA-189, 4.15%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e) 12,595 12,595
Texas Wtr. Dev. Board Participating VRDN, Series SGA-23,
4.20% (Liquidity Facility Societe Generale) (e) 5,600 5,600
Travis Multi-Family Hsg. Rev. (Aspen Hills Project) 4.20%,
VRDN (Fannie Mae Guaranteed) (d) 9,800 9,800
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev
(Primecrest Ltd. Proj.) VRDN:
Series 1990 A, 4.20%, LOC ABN-AMRO Bank (d) 3,400 3,400
Series 1990 B, 4.20%, LOC Bank of America (d) 2,400 2,400
Tuloso Midway Independent School Dist. Adj. Rate TRAN:
4.11% 8/31/98 (f) 1,750 1,750
4.11% 8/31/98 350 350
712,382
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
UTAH - 0.7%
Intermountain Pwr. Agcy.:
Series 97B, CP:
3.50% 6/11/98 (Liquidity Facility Bank of Nova Scotia) $ 4,000 $
4,000
3.70% 5/7/98 (Liquidity Facility Bank of Nova Scotia) 2,700 2,700
Bonds Series F, 3.70% 5/7/98 (AMBAC Insured)
(BPA Union Bank of Switzerland) CP mode 1,200 1,200
Participating VRDN, 4.25% (Liquidity Facility
Citibank New York NA) (e) 7,600 7,600
Timpanogos Spl. Svc. Dist. Participating VRDN, Series SG-83,
4.15% (Liquidity Facility Societe Generale) (e) 2,100 2,100
Toole City Ind. Dev. Rev. (Nelson & Sons Project ) Series 1997,
4.35%, LOC Key Bank Nat'l. Assoc. VRDN (d) 1,500 1,500
Utah Board of Regents Student Loan, 4.20% (AMBAC Insured)
(BPA Barclays Bank, PLC) VRDN 13,100 13,100
Utah Hsg. Fin. Agcy. Participating VRDN, Series PT-84B,
4.25% (Liquidity Facility Rabobank Nederland, NV) (e) 760 760
32,960
VERMONT - 0.1%
Vermont Econ. Dev. Auth. (Huber and Suhner Proj.)
4.38%, LOC Key Bank Nat'l. Assoc., VRDN 2,275 2,275
Vermont Ind. Dev. Auth. Rev. (Ryegate Proj.) Series 1990,
4.25%, LOC ABN-AMRO Bank, NA, VRDN (d) 1,000 1,000
3,275
VIRGINIA - 1.1%
Botetourt County Ind. Dev. Auth. (VA Forge Co. Proj.)
Series 1996, 4.25%, LOC Harris Trust & Savings Bank,
Chicago, VRDN (d) 1,200 1,200
Chesapeake Ind. Dev. Auth. Poll Cont. Rev. Bonds
(Virginia Elec. Pwr. Co. Proj.) Series 1985, 3.70% 9/9/98,
CP mode 2,000 2,000
Chesapeake Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.):
Series 1985, 3.60% 9/11/98, CP mode 2,800 2,800
Series B, 3.50% 6/11/98 CP mode 3,000 3,000
Chesterfield County Ind. Dev. Auth. Poll. Cont. Rev. Bonds:
(Virginia Elec. Pwr. Co. Proj.):
Series 87A, 3.50% 7/17/98, CP mode 3,400 3,400
Series 87A, 3.60% 9/11/98, CP mode 2,000 2,000
Greensville County (Beach Mold & Tool) 4.35%,
LOC National City Bank, Kentucky, VRDN (d) 1,680 1,680
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
VIRGINIA - CONTINUED
Loudoun County Ind. Dev. Auth. Arpt. Sys. Bonds
(Signature Flight Proj.) Series 98, 4.15% 6/1/98,
LOC Bayerische Landesbank Girozentrale, CP mode (d) $ 3,250 $ 3,250
Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co. Proj.):
Series 1987, 3.70% 9/9/98, CP mode 1,300 1,300
Series 1985, 3.60% 5/21/98
(BPA Bank of New York, NA) CP mode (d) 2,975 2,975
Series 1987, 3.85% 5/15/98, CP mode 5,100 5,100
Lynchburg Ind. Dev. Auth. (Volunteer Hosp. of America
Mid-Atlantic States Proj.) Series 1985 B, 3.80%
(AMBAC Insured) (BPA First Chicago Corp.) VRDN 3,000 3,000
Madison County Ind. Dev. Auth. Rev.
(Madison Wood Preserves) Series 98, 4.20%,
LOC Wachovia Bank, NA, VRDN (d) 4,600 4,600
Mecklenburg County Ind. Dev. Auth. Rev. American Bldgs.
Co. Proj.) 4.35%, LOC LaSalle National Bank, VRDN (d) 1,050 1,050
Prince William County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co. Proj.):
3.50% 7/17/98, CP mode 1,800 1,800
3.60% 6/12/98, CP mode 3,000 3,000
York County Ind. Dev. Auth.:
(Philip Morris Co. Proj.) Series 1991, 4.25%, VRDN 4,000 4,000
Bonds (Virginia Elec. Pwr. Co. Proj.) Series 85, 3.85%
5/15/98, CP mode 5,200 5,200
51,355
WASHINGTON - 4.4%
Chelan County Pub. Utils. Dist. #1 Participating VRDN, 4.25%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e) 5,705 5,705
Kent Gen. Oblig. Participating VRDN, Series SGA-27, 4.20%
(Liquidity Facility Societe Generale) (e) 5,070 5,070
King County Pub. Hosp. Dist. Rev. Rfdg. Participating VRDN,
Series PL-170, 4.20% (AMBAC Insured)
(Liquidity Facility Banco Santander, SA) (e) 5,940 5,940
Klickitat County Pub. Corp. Ind. Dev. Rev. (Rabanco Landfill
Proj.) Series 1990, 4.30%, LOC Bank of America, VRDN (d) 5,700 5,700
Pierce County Econ. Dev. Corp. Rev. (Pacific LLC Proj.) 4.50%,
LOC Wells Fargo Bank, VRDN (d) 3,000 3,000
Pilchuck Dev. Pub. Corp. (Romac Ind.) 4.65%,
LOC Union Bank of California, VRDN (d) 5,200 5,200
Port Bellingham Ind. Dev. Rev. (Sauder Woodcraft Corp.)
4.30%, LOC Bank of America Nat'l. Trust &
Savings Bank, VRDN (d) 2,380 2,380
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WASHINGTON - CONTINUED
Port of Seattle Sub Lien Rev. Series B, CP:
4.15% 5/7/98, LOC Bank of America Nat'l.
Trust & Savings Bank $ 4,500 $ 4,500
3.70% 9/11/98, LOC Bank of America Nat'l.
Trust & Savings Bank 4,001 4,001
Washington Econ. Dev. Fin. Auth. Rev. VRDN:
(Ferry Brothers, Inc. Proj.) 4.23%,
LOC Key Bank Nat'l. Assoc. (d) 5,000 5,000
(Hunter Douglas Project) Series 1997 A, 4.25% (d) 2,200 2,200
Washington Gen. Oblig. Participating VRDN:
Series 195, 4.25% (Liquidity Facility Bankers Trust Co.) (e) 5,300
5,300
Series 1993 B, 4.25% (Liquidity Facility Citibank, NA) (e) 13,300
13,300
Series 1996, 4.25% (Liquidity Facility Citibank, NA) (e) 4,000
4,000
Series BT-101, 4.25% (BPA Bankers Trust Co.) (e) 12,065 12,065
Series BT-114, 4.25% (BPA Bankers Trust Co.) (e) 9,005 9,005
Series SG-9, 4.25% (Liquidity Facility Societe Generale) (e) 4,100
4,100
Series SG-11, 4.25% (Liquidity Facility Societe Generale) (e) 3,700
3,700
Series SG-13, 4.25% (Liquidity Facility Societe Generale) (e) 10,000
10,000
Series SG-35, 4.20% (Liquidity Facility Societe Generale) (e) 12,500
12,500
Series SG-36, 4.20% (Liquidity Facility Societe Generale) (e) 11,000
11,000
Series SG-37, 4.15% (Liquidity Facility Societe Generale) (e) 11,080
11,080
Series 984702, 4.20% (Liquidity Facility Citibank, NA) (e) 12,200
12,200
Washington Hsg. Fin. Commission:
Multi-Family Mtg. Rev. (Winterhill Apt. Proj.) Series 1996A,
4.30% (FSA Insured) (Liquidity Facility Wells Fargo
Bank, NA) VRDN (d) 4,300 4,300
Single-Family Mtg Rev.:
Participating VRDN:
Series 1997 D, 4.35% (Liquidity Facility CoreStates
Bank) (e) 7,500 7,500
Series PT-86, 4.25% (Liquidity Facility Merrill Lynch &
Co., Inc.) (e) 3,980 3,980
Bonds Series 1997 5A-5, 3.90% tender 12/15/98 (d) 4,910 4,910
Washington Pub. Pwr. Supply Sys. Participating VRDN:
Series 94 B, 4.25% (Liquidity Facility Citibank) (e) 20,600 20,600
Series BT-61, 4.32% (Liquidity Facility Automatic
Data Processing, Inc.) (e) 2,335 2,335
Washington State Hsg. Fin. Commission Multi-Family Rev.
(Eaglepointe Apts.) Series 1996 A, 4.30% (FSA Insured)
(Liquidity Facility Wells Fargo, NA) VRDN (d) 2,840 2,840
203,411
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WEST VIRGINIA - 1.8%
Grant County Solid Waste Disp. Rev. Bonds
(Virginia Elec. & Pwr. Co. Proj.) Series 96,
3.75% 7/16/98, CP mode (d) $ 3,200 $ 3,200
Marion County Solid Waste Disp. Rev. VRDN:
(American Bituminous Pwr. Partners) Series 1990 D, 4.20%,
LOC Nat'l. Westminster Bank PLC (d) 10,200 10,200
(Grant Town Cogeneration Proj.):
Series 1990 A, 4.20%, LOC Nat'l. Westminster
Bank PLC (d) 34,200 34,200
Series 1990 B, 4.20%, LOC Nat'l. Westminster
Bank PLC (d) 13,100 13,100
Series 1990 C, 4.20%, LOC Nat'l. Westminster
Bank PLC (d) 2,500 2,500
West Virginia Pub. Energy Auth. Bonds:
(Morgantown Energy Assoc.):
3.60% 5/15/98, LOC Swiss Bank Corp., CP mode (d) 4,600 4,600
3.60% 5/15/98, LOC Swiss Bank Corp., CP mode (d) 6,100 6,100
3.50% 5/18/98, LOC Swiss Bank Corp., CP mode (d) 2,000 2,000
3.65% 5/19/98, LOC Swiss Bank Corp., CP mode (d) 1,000 1,000
3.60% 6/12/98, LOC Swiss Bank Corp., CP mode (d) 2,000 2,000
3.55% 7/10/98, LOC Swiss Bank Corp., CP mode (d) 2,400 2,400
3.65% 9/9/98, LOC Swiss Bank Corp., CP mode (d) 1,000 1,000
82,300
WISCONSIN - 1.3%
Appleton Area School Dist. BAN 4.05% 11/10/98 2,800 2,803
City of Ladysmith Solid Waste Disp. Rev.
(Cityforest Corp. Proj.) Series 98, 4.25%,
LOC Union Bank of California, VRDN (d) 5,000 5,000
Eau Claire Area School Dist. TRAN 4.10% 9/28/98 5,900 5,904
Merrill Ind. Dev. Rev. (C&H Packaging Co. Inc.) Series 1996,
4.35%, LOC Firstar Bank Milwaukee, NA, VRDN (d) 5,765 5,765
Milwaukee School Dist. Rev. RAN 4.25% 8/27/98 16,500 16,522
Oak Creek Ind. Dev. Rev. (Outlook Packaging, Inc.) 4.30%,
LOC Firstar Bank Milwaukee NA, VRDN (d) 2,000 2,000
Platteville Ind. Dev. Auth. Rev.
(Woodward Communications) 4.25%,
LOC Harris Trust & Savings Bank of Chicago, VRDN (d) 1,650 1,650
Prentice Ind. Dev. Rev. (Blount Proj.) Series 1994, 4.25%,
LOC NationsBank, NA South, VRDN (d) 2,000 2,000
Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994,
4.25%, LOC Bank One, Milwaukee, VRDN (d) 1,595 1,595
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WISCONSIN - CONTINUED
River Falls Ind. Dev. Rev. (Quadion Corp. Proj.) 4.30%,
LOC First Bank, Minnesota, VRDN (d) $ 2,365 $ 2,365
Sturgeon Ind. Dev. Rev. (Marine Travelift Proj.) Series 1996,
4.35%, LOC Firstar Bank Milwaukee NA, VRDN (d) 1,600 1,600
Sturtevant Ind. Dev. Rev. (Quadra, Inc. Proj.) 4.25%,
LOC Bank One, Wisconsin, VRDN (d) 2,035 2,035
Sun Prairie Ind. Rev. (Flambeau Corp. Proj.) Series 95,
4.35%, LOC Firstar Bank Milwaukee NA, VRDN (d) 7,000 7,000
Wisconsin Gen. Oblig. Participating VRDN, Series 1992,
4.25% (Liquidity Facility Bankers Trust Co.) (e) 5,800 5,800
62,039
WYOMING - 1.2%
Converse County Poll. Cont. Rev. Bonds (Pacificorp Proj.)
Series 1992, 3.80% 5/7/98, LOC Union Bank of
Switzerland, CP mode 8,000 8,000
Laramie County Ind. Dev. Rev. (Cheyenne Light, Fuel and Pwr.)
VRDN:
4.35% (AMBAC Insured) (Liquidity Facility
Norwest Bank, NA) (d) 5,000 5,000
4.35% (AMBAC Insured) (Liquidity Facility
Norwest Bank, NA) (d) 3,500 3,500
Wyoming Commty. Dev. Auth. Hsg. Rev. Participating
VRDN, Series 1997 1 & 3, 4.15% (Liquidity Facility
Bayerische Hypotheken-und Wechsel Bank) (e) 4,005 4,005
Wyoming Gen. Oblig. TRAN Series 1997:
4.25% 6/26/98 3,800 3,803
4.50% 6/26/98 28,900 28,928
53,236
MULTIPLE STATES - 0.6%
Clipper Participating VRDN, Series 1995-1, 4.57% (Liquidity
Facility State Street Bank & Trust Co., Boston) (d)(e) 3,452 3,452
Eagle Tax-Exempt Trust Participating VRDN, 4.20% (Liquidity
Facility Citibank, New York, NA) (e) 3,300 3,300
Stephens Equity Trust II Participating VRDN, Series 1996,
4.25%, LOC Republic Nat'l. Bank, NY (e) 19,081 19,081
25,833
SHARES
(000'S)
OTHER - 0.4%
Municipal Central Cash Fund (b) (c) 20,483 20,483
TOTAL INVESTMENTS - 100% $ 4,593,433
Total Cost For Income Tax Purposes $ 4,593,437
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation
Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
(b) Information in this report regarding holdings by state and
security types do not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 4.13%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION COST
SECURITY DATE (000S)
Austin Independent
School Dist.
Adj. Rate TRAN:
4.11% 8/31/98 12/2/97 $ 2,200
4.11% 8/31/98 11/10/97 $ 3,080
4.11% 8/31/98 11/25/97 $ 5,720
Goose Creek
Consolidated
Independent
School Dist.
Adj. Rate TRAN:
4.11% 8/28/98 11/14/97 $ 2,400
4.11% 8/31/98 12/11/97 $ 3,408
Tuloso Midway
Independent
School Dist.
Adj. Rate TRAN
4.11% 8/31/98 9/12/97 $ 1,750
INCOME TAX INFORMATION
At October 31, 1997, the fund had a capital loss carryforward of
approximately $490,000 all of which will expire on October 31, 2004.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) APRIL 30, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - SEE $ 4,593,433
ACCOMPANYING SCHEDULE
CASH 4,549
RECEIVABLE FOR INVESTMENTS SOLD 32,770
RECEIVABLE FOR FUND SHARES SOLD 90,753
INTEREST RECEIVABLE 38,229
TOTAL ASSETS 4,759,734
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 44,096
PAYABLE FOR FUND SHARES REDEEMED 63,954
DISTRIBUTIONS PAYABLE 275
ACCRUED MANAGEMENT FEE 1,144
OTHER PAYABLES AND ACCRUED EXPENSES 852
TOTAL LIABILITIES 110,321
NET ASSETS $ 4,649,413
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 4,649,908
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (495)
NET ASSETS, FOR 4,649,900 SHARES OUTSTANDING $ 4,649,413
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($4,649,413 (DIVIDED BY) 4,649,900 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
INTEREST INCOME $ 82,949
EXPENSES
MANAGEMENT FEE $ 6,441
TRANSFER AGENT FEES 3,814
ACCOUNTING FEES AND EXPENSES 118
NON-INTERESTED TRUSTEES' COMPENSATION 13
CUSTODIAN FEES AND EXPENSES 249
REGISTRATION FEES 239
AUDIT 36
LEGAL 25
MISCELLANEOUS 79
TOTAL EXPENSES BEFORE REDUCTIONS 11,014
EXPENSE REDUCTIONS (12) 11,002
NET INTEREST INCOME 71,947
REALIZED AND UNREALIZED GAIN (LOSS) (2)
NET REALIZED GAIN (LOSS) ON INVESTMENT SECURITIES
INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM (1)
ACCRETION OF DISCOUNT
NET GAIN (LOSS) (3)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 71,944
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 71,947 $ 128,205
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (2) 149
INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM (1) 1
ACCRETION OF DISCOUNT
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 71,944 128,355
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (71,947) (128,205)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 8,798,694 13,444,798
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 69,708 123,338
COST OF SHARES REDEEMED (8,351,005) (13,110,599)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 517,397 457,537
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 517,394 457,687
NET ASSETS
BEGINNING OF PERIOD 4,132,019 3,674,332
END OF PERIOD $ 4,649,413 $ 4,132,019
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998
(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .016 .032 .031 .034 .023 .022
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.016) (.032) (.031) (.034) (.023) (.022)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B 1.61% 3.28% 3.17% 3.48% 2.33% 2.23%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 4,649 $ 4,132 $ 3,674 $ 3,606 $ 3,495 $ 2,936
(IN MILLIONS)
RATIO OF EXPENSES TO .49% A .49% .49% .50% .52% .49%
AVERAGE NET ASSETS
RATIO OF NET INTEREST 3.22% A 3.23% 3.12% 3.43% 2.31% 2.21%
INCOME TO AVERAGE
NET ASSETS
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1998 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Municipal Money Market Fund (the fund) is a fund of Fidelity
Union Street Trust II (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Delaware
business trust. The financial statements have been prepared in
conformity with generally accepted accounting principles which require
management to make certain estimates and assumptions at the date of
the financial statements. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned. Accretion of
discount represents unrealized gain until realized at the time of a
security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the fund may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc., (formerly FMR Texas, Inc.) an
affiliate of Fidelity Management & Research Company (FMR). The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in high-quality, short-term municipal securities of
various states and municipalities. Income distributions from the Cash
Fund are declared daily and paid monthly from net interest income.
Income distributions earned by the fund are recorded as interest
income in the accompanying financial statements.
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities (excluding 144A
issues) amounted to $18,558,000 or 0.4% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .15%. In the event that
these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. For the period, the management
fee was equivalent to an annualized rate of .29% of average net
assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc. (formerly FMR Texas, Inc.), a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the fund.
UMB has entered into a sub-contract with Fidelity Service Company,
Inc. (FSC), an affiliate of FMR, under which FSC performs the
activities associated with the fund's transfer and shareholder
servicing agent and accounting functions. The fund pays account fees
and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is
based on the level of average net assets for the month plus
out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an
annualized rate of .17% of average net assets.
4. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its custodian whereby
credits realized as a result of uninvested cash balances were used to
reduce a portion of the fund's expenses. During the period, the fund's
custodian fees were reduced by $12,000 under this arrangement.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
4001 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
Diane M. McLaughlin, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Market
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
