<PAGE> PAGE 1
000 B000000 10/31/96
000 C000000 0000889388
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 INVESTMENT SERIES FUNDS, INC.
001 B000000 811-07021
001 C000000 4122886653
002 A000000 FEDERATED INVESTORS TOWER
002 B000000 PITTSBURGH
002 C000000 PA
002 D010000 15222
002 D020000 3779
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C010200 2
007 C020200 FEDERATED BOND FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 FEDERATED ADVISERS
008 B00AA01 A
008 C00AA01 801-34612
008 D01AA01 PITTSBURGH
008 D02AA01 PA
008 D03AA01 15222
008 D04AA01 3779
010 A00AA01 FEDERATED SERVICES COMPANY
010 C01AA01 PITTSBURGH
010 C02AA01 PA
010 C03AA01 15222
010 C04AA01 3779
011 A00AA01 FEDERATED SECURITIES CORP.
011 B00AA01 8-15561
011 C01AA01 PITTSBURGH
011 C02AA01 PA
<PAGE> PAGE 2
011 C03AA01 15222
011 C04AA01 3779
012 A00AA01 FEDERATED SHAREHOLDER SERVICES COMPANY
012 B00AA01 84-1869
012 C01AA01 PITTSBURGH
012 C02AA01 PA
012 C03AA01 15222
012 C04AA01 3779
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 PITTSBURGH
013 B02AA01 PA
013 B03AA01 15219
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
020 B000001 13-5674085
020 C000001 2
020 A000002 INSTINET CORP.
020 B000002 13-3443395
020 C000002 2
020 A000003 EXECUTION SERVICES, INC.
020 C000003 2
020 A000004 MORGAN STANLEY & CO., INC.
020 B000004 13-2655998
020 C000004 2
020 A000005 JANNEY MONTGOMERY SCOTT, INC.
020 B000005 23-0731260
020 C000005 2
020 A000006 SMITH BARNEY, INC.
020 B000006 13-1912900
020 C000006 1
020 A000007 PAINEWBBER, INC.
020 B000007 13-2638166
020 C000007 1
020 A000008 LEHMAN BROTHERS, INC.
020 B000008 13-2518466
020 C000008 1
020 A000009 SALOMON BROTHERS, INC.
020 B000009 13-3082694
020 C000009 1
020 A000010 BERNSTEIN & CO.
020 B000010 25-1248291
020 C000010 1
021 000000 22
022 A000001 B.T. SECURITIES CORP.
022 B000001 13-4941247
022 C000001 644145
022 D000001 1325
022 A000002 MORGAN GUARANTY TRUST CO. OF NEW YORK
022 B000002 13-5123346
<PAGE> PAGE 3
022 C000002 415860
022 D000002 3504
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000003 13-5674085
022 C000003 28309
022 D000003 11457
022 A000004 LEHMAN BROTHERS, INC.
022 B000004 13-2518466
022 C000004 24109
022 D000004 5449
022 A000005 DLJ CAPITAL MARKETS
022 B000005 13-2741729
022 C000005 20579
022 D000005 2463
022 A000006 FIRST ALABAMA INVESTMENTS, INC.
022 B000006 63-0922558
022 C000006 14899
022 D000006 4557
022 A000007 GOLDMAN, SACHS & CO.
022 B000007 13-5108880
022 C000007 12902
022 D000007 4777
022 A000008 MORGAN STANLEY & CO., INC.
022 B000008 13-2655998
022 C000008 6052
022 D000008 9322
022 A000009 WHEAT FIRST BUTCHER SINGER
022 B000009 54-0796506
022 C000009 14949
022 D000009 0
022 A000010 DEUTSCHE MORGAN GRENFELL
022 C000010 9251
022 D000010 2352
023 C000000 1264508
023 D000000 72860
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 N
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
027 000000 Y
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
054 A00AA00 N
<PAGE> PAGE 4
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 N
054 I00AA00 N
054 J00AA00 N
054 K00AA00 N
054 L00AA00 N
054 M00AA00 N
054 N00AA00 N
054 O00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 500
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 THE AETNA CASUALTY AND SURETY COMPANY
080 B00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 85000
081 A00AA00 Y
081 B00AA00 74
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
<PAGE> PAGE 5
085 B00AA00 N
015 A000101 STATE STREET BANK AND TRUST COMPANY
015 B000101 C
015 C010101 BOSTON
015 C020101 MA
015 C030101 02266
015 C040101 3700
015 E010101 X
015 A000102 PNC BANK, NA
015 B000102 S
015 C010102 PITTSBURGH
015 C020102 PA
015 C030102 15265
015 E010102 X
015 A000103 NATIONSBANK OF NORTH CAROLINA
015 B000103 S
015 C010103 CHARLOTTE
015 C020103 NC
015 C030103 28255
015 E010103 X
015 A000104 NATIONSBANC CAPITAL MARKETS, INC.
015 B000104 S
015 C010104 RICHMOND
015 C020104 VA
015 C030104 23261
015 E010104 X
015 A000105 MORGAN GUARANTY BANK AND TRUST COMPANY
015 B000105 S
015 C010105 NEW YORK
015 C020105 NY
015 C030105 10015
015 E010105 X
015 A000106 THE CHASE MANHATTAN CORPORATION
015 B000106 S
015 C010106 NEW YORK
015 C020106 NY
015 C030106 10006
015 E010106 X
015 A000107 BANK OF NEW YORK
015 B000107 S
015 C010107 NEW YORK
015 C020107 NY
015 C030107 10006
015 E010107 X
015 A000108 BANKERS TRUST COMPANY
015 B000108 S
015 C010108 NEW YORK
015 C020108 NY
015 C030108 10015
015 E010108 X
074 A000100 0
<PAGE> PAGE 6
074 B000100 0
074 C000100 0
074 D000100 0
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 0
074 M000100 0
074 N000100 0
015 A000201 STATE STREET BANK AND TRUST COMPANY
015 B000201 C
015 C010201 BOSTON
015 C020201 MA
015 C030201 02266
015 C040201 8600
015 E010201 X
015 A000202 PNC BANK,NA
015 B000202 S
015 C010202 PITTSBURGH
015 C020202 PA
015 C030202 15265
015 E010202 X
015 A000203 NATIONS BANK SERVICES INC.
015 B000203 S
015 C010203 CHARLOTTE
015 C020203 NC
015 C030203 28255
015 E010203 X
015 A000204 MORGAN GUARANTY BANK & TRUST CO.
015 B000204 S
015 C010204 NEW YORK
015 C020204 NY
015 C030204 10015
015 E010204 X
015 A000205 CHEMICAL BANK & TRUST CO.
015 B000205 S
015 C010205 NEW YORK
015 C020205 NY
015 C030205 10006
015 E010205 X
015 A000206 BANK OF NEW YORK
015 B000206 S
015 C010206 NEW YORK
015 C020206 NY
015 C030206 10006
015 E010206 X
015 A000207 BANKERS TRUST CO.
<PAGE> PAGE 7
015 B000207 S
015 C010207 NEW YORK
015 C020207 NY
015 C030207 10015
015 E010207 X
024 000200 Y
025 A000201 DONALDSON, LUFKIN JENRETTE (DLJ)
025 C000201 D
025 D000201 5150
025 A000202 LEGG MASON
025 C000202 D
025 D000202 2000
025 A000203 MERRILL LYNCH
025 C000203 D
025 D000203 2000
025 D000204 0
025 D000205 0
025 D000206 0
025 D000207 0
025 D000208 0
028 A010200 21501
028 A020200 1090
028 A030200 0
028 A040200 7204
028 B010200 25598
028 B020200 1150
028 B030200 0
028 B040200 5278
028 C010200 15983
028 C020200 1189
028 C030200 0
028 C040200 9181
028 D010200 20868
028 D020200 1238
028 D030200 0
028 D040200 6243
028 E010200 17078
028 E020200 1297
028 E030200 0
028 E040200 6951
028 F010200 17976
028 F020200 1351
028 F030200 0
028 F040200 7222
028 G010200 119004
028 G020200 7315
028 G030200 0
028 G040200 42079
028 H000200 42183
029 000200 Y
030 A000200 5176
<PAGE> PAGE 8
030 B000200 4.50
030 C000200 0.00
031 A000200 71
031 B000200 0
032 000200 5105
033 000200 0
034 000200 Y
035 000200 202
036 A000200 N
036 B000200 0
042 A000200 0
042 B000200 0
042 C000200 100
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 716
044 000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.750
048 A010200 0
048 A020200 0.000
048 B010200 0
048 B020200 0.000
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 Y
<PAGE> PAGE 9
053 B000200 Y
053 C000200 N
055 A000200 Y
055 B000200 N
056 000200 N
057 000200 N
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.7
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 1.5
062 N000200 0.0
062 O000200 0.0
062 P000200 85.7
062 Q000200 0.7
062 R000200 0.1
063 A000200 0
063 B000200 16.0
064 A000200 Y
064 B000200 Y
065 000200 N
066 A000200 N
067 000200 N
068 A000200 N
068 B000200 N
069 000200 N
070 A010200 Y
070 A020200 Y
070 B010200 N
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
<PAGE> PAGE 10
070 I020200 N
070 J010200 Y
070 J020200 Y
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 N
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 166352
071 B000200 387168
071 C000200 341876
071 D000200 49
072 A000200 12
072 B000200 29936
072 C000200 46
072 D000200 0
072 E000200 0
072 F000200 2651
072 G000200 267
072 H000200 0
072 I000200 306
072 J000200 64
072 K000200 0
072 L000200 73
072 M000200 10
072 N000200 142
072 O000200 30
072 P000200 0
072 Q000200 151
072 R000200 13
072 S000200 4
072 T000200 1600
072 U000200 0
072 V000200 0
072 W000200 14
072 X000200 5325
072 Y000200 764
072 Z000200 25421
072AA000200 0
072BB000200 150
<PAGE> PAGE 11
072CC010200 317
072CC020200 0
072DD010200 1763
072DD020200 23892
072EE000200 0
073 A010200 0.0000
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 10
074 B000200 3310
074 C000200 0
074 D000200 444458
074 E000200 600
074 F000200 285
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 5681
074 K000200 0
074 L000200 11838
074 M000200 0
074 N000200 466182
074 O000200 10649
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 2252
074 S000200 0
074 T000200 453281
074 U010200 3812
074 U020200 42831
074 V010200 0.00
074 V020200 0.00
074 W000200 0.0000
074 X000200 12912
074 Y000200 0
075 A000200 0
075 B000200 353614
076 000200 0.00
SIGNATURE S. ELLIOT COHAN
TITLE ASST. GEN COUNSEL
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> Federated Bond Fund
Class A Shares
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Oct-31-1996
<PERIOD-END> Oct-31-1996
<INVESTMENTS-AT-COST> 443,965,411
<INVESTMENTS-AT-VALUE> 448,652,871
<RECEIVABLES> 17,518,801
<ASSETS-OTHER> 10,457
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 466,182,129
<PAYABLE-FOR-SECURITIES> 10,649,264
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,251,385
<TOTAL-LIABILITIES> 12,900,649
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 452,459,667
<SHARES-COMMON-STOCK> 3,811,668
<SHARES-COMMON-PRIOR> 519,301
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (279,124)
<ACCUMULATED-NET-GAINS> (3,586,203)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,687,140
<NET-ASSETS> 37,044,798
<DIVIDEND-INCOME> 46,012
<INTEREST-INCOME> 29,935,824
<OTHER-INCOME> 0
<EXPENSES-NET> 4,561,322
<NET-INVESTMENT-INCOME> 25,420,514
<REALIZED-GAINS-CURRENT> (149,872)
<APPREC-INCREASE-CURRENT> 317,325
<NET-CHANGE-FROM-OPS> 25,587,967
<EQUALIZATION> 620,232
<DISTRIBUTIONS-OF-INCOME> 1,762,704
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,691,576
<NUMBER-OF-SHARES-REDEEMED> 550,070
<SHARES-REINVESTED> 150,861
<NET-CHANGE-IN-ASSETS> 219,433,931
<ACCUMULATED-NII-PRIOR> 585,193
<ACCUMULATED-GAINS-PRIOR> (3,445,406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,650,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,325,435
<AVERAGE-NET-ASSETS> 353,613,547
<PER-SHARE-NAV-BEGIN> 9.760
<PER-SHARE-NII> 0.710
<PER-SHARE-GAIN-APPREC> (0.040)
<PER-SHARE-DIVIDEND> 0.710
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.720
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> Federated Bond Fund
Class B Shares
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Oct-31-1996
<PERIOD-END> Oct-31-1996
<INVESTMENTS-AT-COST> 443,965,411
<INVESTMENTS-AT-VALUE> 448,652,871
<RECEIVABLES> 17,518,801
<ASSETS-OTHER> 10,457
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 466,182,129
<PAYABLE-FOR-SECURITIES> 10,649,264
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,251,385
<TOTAL-LIABILITIES> 12,900,649
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 452,459,667
<SHARES-COMMON-STOCK> 12,926,180
<SHARES-COMMON-PRIOR> 2,845,544
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (279,124)
<ACCUMULATED-NET-GAINS> (3,586,203)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,687,140
<NET-ASSETS> 125,620,241
<DIVIDEND-INCOME> 46,012
<INTEREST-INCOME> 29,935,824
<OTHER-INCOME> 0
<EXPENSES-NET> 4,561,322
<NET-INVESTMENT-INCOME> 25,420,514
<REALIZED-GAINS-CURRENT> (149,872)
<APPREC-INCREASE-CURRENT> 317,325
<NET-CHANGE-FROM-OPS> 25,587,967
<EQUALIZATION> 620,232
<DISTRIBUTIONS-OF-INCOME> 5,584,736
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,011,129
<NUMBER-OF-SHARES-REDEEMED> 2,267,434
<SHARES-REINVESTED> 336,941
<NET-CHANGE-IN-ASSETS> 219,433,931
<ACCUMULATED-NII-PRIOR> 585,193
<ACCUMULATED-GAINS-PRIOR> (3,445,406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,650,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,325,435
<AVERAGE-NET-ASSETS> 353,613,547
<PER-SHARE-NAV-BEGIN> 9.760
<PER-SHARE-NII> 0.640
<PER-SHARE-GAIN-APPREC> (0.040)
<PER-SHARE-DIVIDEND> 0.640
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.720
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 003
<NAME> Federated Bond Fund
Class C Shares
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Oct-31-1996
<PERIOD-END> Oct-31-1996
<INVESTMENTS-AT-COST> 443,965,411
<INVESTMENTS-AT-VALUE> 448,652,871
<RECEIVABLES> 17,518,801
<ASSETS-OTHER> 10,457
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 466,182,129
<PAYABLE-FOR-SECURITIES> 10,649,264
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,251,385
<TOTAL-LIABILITIES> 12,900,649
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 452,459,667
<SHARES-COMMON-STOCK> 2,356,018
<SHARES-COMMON-PRIOR> 564,130
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (279,124)
<ACCUMULATED-NET-GAINS> (3,586,203)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,687,140
<NET-ASSETS> 22,896,604
<DIVIDEND-INCOME> 46,012
<INTEREST-INCOME> 29,935,824
<OTHER-INCOME> 0
<EXPENSES-NET> 4,561,322
<NET-INVESTMENT-INCOME> 25,420,514
<REALIZED-GAINS-CURRENT> (149,872)
<APPREC-INCREASE-CURRENT> 317,325
<NET-CHANGE-FROM-OPS> 25,587,967
<EQUALIZATION> 620,232
<DISTRIBUTIONS-OF-INCOME> 916,585
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,109,387
<NUMBER-OF-SHARES-REDEEMED> 386,472
<SHARES-REINVESTED> 68,973
<NET-CHANGE-IN-ASSETS> 219,433,931
<ACCUMULATED-NII-PRIOR> 585,193
<ACCUMULATED-GAINS-PRIOR> (3,445,406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,650,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,325,435
<AVERAGE-NET-ASSETS> 353,613,547
<PER-SHARE-NAV-BEGIN> 9.760
<PER-SHARE-NII> 0.640
<PER-SHARE-GAIN-APPREC> (0.040)
<PER-SHARE-DIVIDEND> 0.640
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.720
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 004
<NAME> Federated Bond Fund
Class F Shares
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Oct-31-1996
<PERIOD-END> Oct-31-1996
<INVESTMENTS-AT-COST> 443,965,411
<INVESTMENTS-AT-VALUE> 448,652,871
<RECEIVABLES> 17,518,801
<ASSETS-OTHER> 10,457
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 466,182,129
<PAYABLE-FOR-SECURITIES> 10,649,264
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,251,385
<TOTAL-LIABILITIES> 12,900,649
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 452,459,667
<SHARES-COMMON-STOCK> 27,549,123
<SHARES-COMMON-PRIOR> 20,027,973
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (279,124)
<ACCUMULATED-NET-GAINS> (3,586,203)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,687,140
<NET-ASSETS> 267,719,837
<DIVIDEND-INCOME> 46,012
<INTEREST-INCOME> 29,935,824
<OTHER-INCOME> 0
<EXPENSES-NET> 4,561,322
<NET-INVESTMENT-INCOME> 25,420,514
<REALIZED-GAINS-CURRENT> (149,872)
<APPREC-INCREASE-CURRENT> 317,325
<NET-CHANGE-FROM-OPS> 25,587,967
<EQUALIZATION> 620,232
<DISTRIBUTIONS-OF-INCOME> 17,390,922
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,961,299
<NUMBER-OF-SHARES-REDEEMED> 5,233,916
<SHARES-REINVESTED> 793,767
<NET-CHANGE-IN-ASSETS> 219,433,931
<ACCUMULATED-NII-PRIOR> 585,193
<ACCUMULATED-GAINS-PRIOR> (3,445,406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,650,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,325,435
<AVERAGE-NET-ASSETS> 353,613,547
<PER-SHARE-NAV-BEGIN> 9.760
<PER-SHARE-NII> 0.710
<PER-SHARE-GAIN-APPREC> (0.040)
<PER-SHARE-DIVIDEND> 0.710
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.720
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
