<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES TRUST
Principal Market Value
Security Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENTS IN SECURITIES 82.57%
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury U.S. Treasury Strips due 5/15/2003 $20,000M $ 11,425,000
16.74% --------------------------------------------------------------------------------------------------
U.S. Treasury Notes 5 3/8% due 5/31/1998 26,000M 25,008,750
--------------------------------------------------------------------------------------------------
U.S. Treasury Notes 6 1/4% due 2/15/2003 17,600M 16,764,000
--------------------------------------------------------------------------------------------------
U.S. Treasury Notes 7 1/2% due 2/15/2005 2,000M 2,061,875
--------------------------------------------------------------------------------------------------
Total 55,259,625
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Government
Agencies 2.01% Federal National Mortgage Association 7.65% due 3/10/2005 6,500M 6,648,280
- ----------------------------------------------------------------------------------------------------------------------------------
Federal National 6 1/2% due on an announced basis 19,000M 18,186,562
Mortgage Association --------------------------------------------------------------------------------------------------
Pass-Through Securities 7 1/2% due on an announced basis 22,000M 21,924,375
36.30% --------------------------------------------------------------------------------------------------
8% due on an announced basis 36,900M 36,815,156
--------------------------------------------------------------------------------------------------
8% due 12/1/2024 16,804M 16,773,037
--------------------------------------------------------------------------------------------------
8 1/2% due 4/1/2025 25,740M 26,158,275
--------------------------------------------------------------------------------------------------
Total 119,857,405
- ----------------------------------------------------------------------------------------------------------------------------------
Government National 7% due 2023 to 2024 36,946M 34,994,287
Mortgage Association --------------------------------------------------------------------------------------------------
Pass-Through Securities 8% due 3/1/2024 4,699M 4,700,851
27.52% --------------------------------------------------------------------------------------------------
8 1/4% due 6/15/2029 2,913M 2,899,667
--------------------------------------------------------------------------------------------------
8 3/8% due 9/15/2016 5,864M 5,897,485
--------------------------------------------------------------------------------------------------
8 1/2% due 1/15/2028 2,216M 2,239,372
--------------------------------------------------------------------------------------------------
9% due on an announced basis 7,000M 7,262,500
--------------------------------------------------------------------------------------------------
9% due 2018 to 2024 27,199M 28,292,712
--------------------------------------------------------------------------------------------------
9 1/2% due 2019 to 2020 4,321M 4,552,726
--------------------------------------------------------------------------------------------------
Total 90,839,600
--------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $270,574,499) 272,604,910
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 17.43%
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Federal Home Loan Banks 12 1/2% due 4/18/1996 50,000M 52,781,250
Short-Term --------------------------------------------------------------------------------------------------
Investments, U.S. Treasury Notes 5 1/2% due 4/30/1996 8,600M 8,530,125
at Market --------------------------------------------------------------------------------------------------
U.S. Treasury Notes 9 1/4% due 1/15/1996 75,700M 77,225,828
--------------------------------------------------------------------------------------------------
Total (Cost $138,872,328) 138,537,203
------------------------------------------------------------------------------------------------------------------
Receivable for: Securities sold 74,790,587
--------------------------------------------------------------------------------------------------
Other 5,742,896
--------------------------------------------------------------------------------------------------
Total Other Assets 219,070,686
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities Payable for: Securities purchased 158,393,234
--------------------------------------------------------------------------------------------------
Other 3,141,735
--------------------------------------------------------------------------------------------------
Total Liabilities 161,534,969
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 57,535,717
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.49 a share on 73,524,577 shares of
beneficial interest outstanding) $330,140,627
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
LIMITED DURATION U.S. GOVERNMENT SECURITIES TRUST
Principal Market Value
Security Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENTS IN SECURITIES 85.35%
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury 7.76% U.S. Treasury Notes 6 7/8% due 2/28/1997 $1,000M $ 1,005,156
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Government
Agencies 11.58% Student Loan Marketing Association 6.04% due 2/22/1999 1,500M 1,499,531
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corporation
Pass-Through Securities
4.69% 9 1/2% CMO Class 175-F due 10/15/2019 597M 607,434
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
LIMITED DURATION U.S. GOVERNMENT SECURITIES TRUST
Principal Market Value
Security Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Federal National 7 1/2% due on an announced basis $2,400M $ 2,390,625
Mortgage Association --------------------------------------------------------------------------------------------------
Pass-Through Securities 8 1/2% due 2002 to 2009 1,447M 1,491,220
32.45% --------------------------------------------------------------------------------------------------
8 1/2% CMO Class 90-106-H due 1/25/2019 317M 320,965
--------------------------------------------------------------------------------------------------
Total 4,202,810
- ----------------------------------------------------------------------------------------------------------------------------------
Government National 10% due 3/15/2019 365M 393,315
Mortgage Association --------------------------------------------------------------------------------------------------
Pass-Through Securities 10 1/2% due 9/15/2016 344M 375,700
5.94% --------------------------------------------------------------------------------------------------
Total 769,015
- ----------------------------------------------------------------------------------------------------------------------------------
Other 6.95% CMO Class 92-12-A2 due 12/25/2022 642M 655,740
22.93% --------------------------------------------------------------------------------------------------
7% due 6/25/2019 988M 988,010
--------------------------------------------------------------------------------------------------
8.60% CMO Class 32-B due 5/1/2016 1,294M 1,325,290
--------------------------------------------------------------------------------------------------
Total 2,969,040
--------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $11,015,492) 11,052,986
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 14.65%
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets
Short-Term Investments,
at Market U.S. Treasury Notes 9 1/4% due 1/15/1996 (Cost $2,440,196) 2,390M 2,438,172
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments, Federal Farm Credit Banks 5.90% due 5/15/1995 1,300M 1,298,296
at Cost --------------------------------------------------------------------------------------------------
Ford Motor Credit Co. 5.946% due 5/3/1995 600M 600,000
--------------------------------------------------------------------------------------------------
Total Short-Term Investments 4,336,468
------------------------------------------------------------------------------------------------------------------
Receivable for: Interest 172,934
--------------------------------------------------------------------------------------------------
Other 188,218
--------------------------------------------------------------------------------------------------
Total Other Assets 4,697,620
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities Payable for: Securities purchased 2,388,627
--------------------------------------------------------------------------------------------------
Other 411,237
--------------------------------------------------------------------------------------------------
Total Liabilities 2,799,864
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 1,897,756
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.70 a share on 2,754,559 shares of
beneficial interest outstanding) $12,950,742
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL BONDS 96.03%
- ----------------------------------------------------------------------------------------------------------------------------------
Prerefunded Maryland St 6.70% 3/1/2005 AAA $ 500M $ 545,000
23.31% --------------------------------------------------------------------------------------------------
New York City NY Muni Wtr Fin Auth Wtr & Sewer Sys Rev
6 3/4% 6/15/2014 AAA 810M 876,825
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth 7.30% 7/1/2020 AAA 250M 282,188
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Hwy 6 1/2% 7/1/2022 AAA 150M 165,375
--------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2012 AAA 1,000M 1,125,000
--------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 750M 843,750
--------------------------------------------------------------------------------------------------
Texas Muni Pwr Agy Rev 14 5/8% 9/1/2012 AAA 2,000M 2,342,500
--------------------------------------------------------------------------------------------------
West Virginia St Sch Bldg Auth Rev MBIA+ 7 1/4% 7/1/2015 AAA 1,000M 1,116,250
--------------------------------------------------------------------------------------------------
Wisconsin St Clean Wtr Rev 6 3/4% 6/1/2008 AAA 2,175M 2,387,062
--------------------------------------------------------------------------------------------------
Total 9,683,950
- ----------------------------------------------------------------------------------------------------------------------------------
General Obligation New York St 6% 8/15/2018 A 200M 195,000
State --------------------------------------------------------------------------------------------------
4.95% Ohio St 6.20% 8/1/2013 AA 750M 777,188
--------------------------------------------------------------------------------------------------
Tennessee St Ser A 5 3/4% 3/1/2015 Aaa 555M 547,369
--------------------------------------------------------------------------------------------------
Texas St Wtr Dev Bd 7.15% 8/1/2035 AA 500M 535,000
--------------------------------------------------------------------------------------------------
Total 2,054,557
--------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Education Alabama Agric & Mechanical Univ Revs MBIA+ 5 1/2% 11/1/2020 AAA $1,000M $ 916,250
4.56% --------------------------------------------------------------------------------------------------
Pennsylvania St Higher Ed 5.90% 9/1/2015 AA 1,000M 976,250
--------------------------------------------------------------------------------------------------
Total 1,892,500
- ----------------------------------------------------------------------------------------------------------------------------------
Finance Cumberland Co NC Ctfs Part AMBAC+ 6.40% 12/1/2024 AAA 500M 513,750
2.47% --------------------------------------------------------------------------------------------------
Iowa St Fin Auth Rev 6 1/4% 5/1/2024 A 500M 511,250
--------------------------------------------------------------------------------------------------
Total 1,025,000
- ----------------------------------------------------------------------------------------------------------------------------------
Health and Hospital Flint MI Hosp Bldg Auth Rev 9 1/2% 7/1/2006 Baa 1,500M 1,537,500
16.84% --------------------------------------------------------------------------------------------------
Massachusetts St Health & Ed Facs Auth Rev
LINK MBIA+ 5.24% 7/1/2017 AAA 6,000M 5,460,000
--------------------------------------------------------------------------------------------------
Total 6,997,500
- ----------------------------------------------------------------------------------------------------------------------------------
Housing Maine St Hsg Auth Mtge Pur Ser A-2 AMT 6 3/4% 11/15/2035 AA 980M 968,975
4.88% --------------------------------------------------------------------------------------------------
Rhode Island St Hsg & Mtge Fin Homeownership Oppty-16-b
AMT 7.65% 10/1/2025 AA 500M 544,375
--------------------------------------------------------------------------------------------------
Tennessee St Hsg Dev Agy Mtge Ser A AMT 7 1/8% 7/1/2026 A 500M 513,750
--------------------------------------------------------------------------------------------------
Total 2,027,100
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial Revenue Maryland St Ind Dev Fin Auth Economic Dev Rev
Bonds 3.52% LINK FSA+ 5.929% 8/26/2022 AAA 1,500M 1,460,625
- ----------------------------------------------------------------------------------------------------------------------------------
Pollution Control Monroe Co MI Poll Ctrl Rev AMBAC+ AMT 7.30% 9/1/2019 AAA 500M 541,250
Revenue --------------------------------------------------------------------------------------------------
10.99% New Hampshire St Ind Dev Auth Rev AMT 10 3/4% 10/1/2012 BBB 1,130M 1,275,487
--------------------------------------------------------------------------------------------------
Ohio St Air Quality Dev Auth Rev FGIC+ 8% 12/1/2013 AAA 2,000M 2,317,500
--------------------------------------------------------------------------------------------------
Ohio St Wtr Dev Auth Poll Ctrl Rev 5.95% 5/15/2029 BBB 500M 433,125
--------------------------------------------------------------------------------------------------
Total 4,567,362
- ----------------------------------------------------------------------------------------------------------------------------------
Power Milwaukee WI Loc Dist Heat AMT 6.85% 10/1/2021 AA 500M 522,500
10.75% --------------------------------------------------------------------------------------------------
New York St Energy Res & Dev RIBS 8.133% 4/1/2020++ A 1,000M 997,500
--------------------------------------------------------------------------------------------------
Piedmont Muni Pwr Agy SC Elec Rev Ref FGIC+ 6 3/4% 1/1/2019 AAA 500M 547,500
--------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth RIBS FSA+ 7.688% 7/1/2023++ AAA 2,500M 2,396,875
--------------------------------------------------------------------------------------------------
Total 4,464,375
- ----------------------------------------------------------------------------------------------------------------------------------
Solid Waste 1.28% Connecticut St Dev Auth Solid Waste Disp Facs Rev
AMT 7% 7/1/2025 AAA 500M 533,125
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation Capital Regional Arpt Comm VA AMBAC+ 8 1/8% 7/1/2014 AAA 2,380M 2,808,400
9.25% --------------------------------------------------------------------------------------------------
Metropolitan Atlanta Rapid Trans Auth GA Sales Tax Rev
AMBAC+ 6 1/4% 7/1/2020 Aaa 1,000M 1,033,750
--------------------------------------------------------------------------------------------------
Total 3,842,150
- ----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev
3.23% FGIC+ 6 3/4% 6/15/2014 AAA 390M 405,112
--------------------------------------------------------------------------------------------------
Philadelphia PA Wtr & Wastewtr Rev MBIA+ 5 1/2% 8/1/2014 AAA 1,000M 938,750
--------------------------------------------------------------------------------------------------
Total 1,343,862
--------------------------------------------------------------------------------------------------
Total Investments in Municipal Bonds (Cost $40,507,257) 39,892,106
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 3.97%
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes
Securities 4 1/2% 6/30/1995 MIG1 1,000M 999,930
--------------------------------------------------------------------------------------------------
Texas St Tax & Rev Anticipation Notes 5% 8/31/1995 MIG1 800M 801,808
--------------------------------------------------------------------------------------------------
Total (Cost $1,802,482) 1,801,738
- ----------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities (152,138)
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 1,849,600
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.57 a share on 9,091,849 shares of
beneficial interest outstanding) $41,541,706
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Insured or guaranteed by the indicated municipal bond insurance corporation.
++The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
April 30, 1995.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL BONDS 96.95%
- ----------------------------------------------------------------------------------------------------------------------------------
Prerefunded Los Angeles CA Convention 7 3/8% 8/15/2018 AAA $1,100M $ 1,219,625
26.26% --------------------------------------------------------------------------------------------------
Los Angeles Trans Comm 8% 7/1/2018 AAA 1,750M 1,946,875
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Hwy 8 1/8% 7/1/2013 AAA 1,100M 1,230,625
--------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldg Auth 7 7/8% 7/1/2007 AAA 250M 271,875
--------------------------------------------------------------------------------------------------
Sacramento CA Muni Util Dist Elec Rev 7 7/8% 8/15/2016 AAA 600M 667,500
--------------------------------------------------------------------------------------------------
Total 5,336,500
- ----------------------------------------------------------------------------------------------------------------------------------
General Obligation
State .49% Puerto Rico Commonwealth RIBS MBIA+ 7.484% 7/1/2008++ AAA 100M 100,375
- ----------------------------------------------------------------------------------------------------------------------------------
General Obligation Benica CA Unified Sch Dist Ser C MBIA+ 6.45% 6/1/2019 AAA 300M 309,750
Local --------------------------------------------------------------------------------------------------
2.78% San Francisco CA City & Co FGIC+ 6.30% 6/15/2014 AAA 250M 254,375
--------------------------------------------------------------------------------------------------
Total 564,125
- ----------------------------------------------------------------------------------------------------------------------------------
Education California Ed Fac Auth Rev/Loyola Marymount
6.67% Univ-Ser B 6.60% 10/1/2022 A 735M 750,618
--------------------------------------------------------------------------------------------------
California St Univ & Colleges Students Union Rev MBIA+
6 1/8% 11/1/2024 AAA 300M 298,125
--------------------------------------------------------------------------------------------------
University of California Revs MBIA+ 6 3/8% 9/1/2019 AAA 300M 306,375
--------------------------------------------------------------------------------------------------
Total 1,355,118
- ----------------------------------------------------------------------------------------------------------------------------------
Health and Hospital California Health Fac/San Diego Hosp Assn MBIA+ 6.95%
3.85% 10/1/2021 AAA 500M 531,875
--------------------------------------------------------------------------------------------------
California Health Fac/Small Fac 6 3/4% 3/1/2020 A 250M 250,938
--------------------------------------------------------------------------------------------------
Total 782,813
- ----------------------------------------------------------------------------------------------------------------------------------
Housing California Hsg Fin Agy Home Mtge 7 1/4% 8/1/2017 Aa 450M 469,687
3.69% --------------------------------------------------------------------------------------------------
California Hsg Fin Agy Home Mtge 7 3/8% 8/1/2017 Aa 265M 279,243
--------------------------------------------------------------------------------------------------
Total 748,930
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial Revenue
Bonds 1.51% San Diego CA Ind Dev Rev Gas & Elec MBIA+ 6.40% 9/1/2018 AAA 300M 306,750
- ----------------------------------------------------------------------------------------------------------------------------------
Pollution Control California Poll Ctrl Rev/Pacific Gas & Elec MBIA+ AMT 8 3/4%
Revenue 1/1/2007 AAA 1,000M 1,110,000
13.78% --------------------------------------------------------------------------------------------------
California Poll Ctrl Rev/Pacific Gas & Elec MBIA+ AMT 8 7/8%
1/1/2010 AAA 400M 443,500
--------------------------------------------------------------------------------------------------
California Poll Ctrl Rev/So CA Edison MBIA+ AMT 6.90%
12/1/2017 AAA 700M 741,125
--------------------------------------------------------------------------------------------------
California Poll Ctrl Rev/So CA Edison AMBAC+ AMT 6.40%
12/1/2024 AAA 500M 504,375
--------------------------------------------------------------------------------------------------
Total 2,799,000
- ----------------------------------------------------------------------------------------------------------------------------------
Power Kings River CA Consv Dist CA Pine Flat Pwr Rev 6 3/8%
12.20% 1/1/2012 AA 300M 307,500
--------------------------------------------------------------------------------------------------
Northern CA Transmission Rev RIBS MBIA+ 6.457% 4/29/2024++ AAA 600M 498,000
--------------------------------------------------------------------------------------------------
Palo Alto CA Util Rev 6 1/4% 6/1/2020 AA 460M 466,325
--------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth 7% 7/1/2021 A 475M 513,594
--------------------------------------------------------------------------------------------------
Riverside CA Elec Rev 6% 10/1/2015 Aa 445M 441,663
--------------------------------------------------------------------------------------------------
Santa Clara CA Elec Rev Ser A MBIA+ 6 1/4% 7/1/2013 AAA 250M 252,813
--------------------------------------------------------------------------------------------------
Total 2,479,895
- ----------------------------------------------------------------------------------------------------------------------------------
Solid Waste California Poll Ctrl Fin Auth Solid Waste Disp Rev/Browning
.50% Ferris AMT 6 3/4% 9/1/2019 A 100M 101,125
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation Los Angeles CA Hbr Rev 6 1/2% 8/1/2025 AA 300M 307,875
9.73% --------------------------------------------------------------------------------------------------
Port Oakland CA Port Rev MBIA+ 7 1/4% 11/1/2016 AAA 350M 368,375
--------------------------------------------------------------------------------------------------
San Francisco CA Bay Area Rapid Trans Dist Sales Tax Rev
FGIC+ 6.60% 7/1/2012 AAA 240M 252,000
--------------------------------------------------------------------------------------------------
San Francisco CA City & Co Arpt Rev AMBAC+ AMT 6 1/2% 5/1/2018 AAA 500M 513,125
--------------------------------------------------------------------------------------------------
San Francisco CA City & Co Arpt Rev MBIA+ 6 3/4% 5/1/2020 AAA 500M 535,000
--------------------------------------------------------------------------------------------------
Total 1,976,375
- ----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer Cucamonga Co CA Wtr Dist FGIC+ 6 1/2% 9/1/2022 AAA 700M 719,250
15.49% --------------------------------------------------------------------------------------------------
East Bay CA Muni Util Dist Wtr Sys Rev AMBAC+ 6 1/2% 6/1/2017 AAA 435M 453,488
--------------------------------------------------------------------------------------------------
Long Beach CA Wtr Rev 6 1/8% 5/1/2019 AA 300M 298,875
--------------------------------------------------------------------------------------------------
Los Angeles CA Wastewtr 7.10% 6/1/2018 A 480M 510,000
--------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Metropolitan Wtr Dist So CA Wtrwks Rev RIBS 6.29% 8/5/2022++ AA $ 350M $ 327,250
--------------------------------------------------------------------------------------------------
San Francisco CA City & Co Wtr Rev 6 1/2% 11/1/2017 AA 250M 256,250
--------------------------------------------------------------------------------------------------
Vallejo CA Rev Wtr Imp FGIC+ 6 1/2% 11/1/2014 AAA 565M 582,656
--------------------------------------------------------------------------------------------------
Total 3,147,769
--------------------------------------------------------------------------------------------------
Total Investments in Municipal Bonds (Cost $19,447,829) 19,698,775
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 3.05%
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes
Securities 4 1/2% 6/30/1995 (Cost $99,990) MIG1 100M 99,993
- ----------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 520,468
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 620,461
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.42 a share on 4,596,237 shares of
beneficial interest outstanding) $20,319,236
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Insured or guaranteed by the indicated municipal bond insurance corporation or
Federal agency.
++The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
April 30, 1995.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL BONDS 97.38%
- ----------------------------------------------------------------------------------------------------------------------------------
Prerefunded Dade Co FL Health Facs Auth Hosp Rev So Miami Hosp Prjt
25.98% MBIA+ 9 1/8% 7/1/2018 AAA $ 750M $ 803,438
--------------------------------------------------------------------------------------------------
Florida St Bd of Ed Cap Outlay 7 1/4% 6/1/2023 AAA 200M 223,500
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth 7 5/8% 7/1/2010 AAA 150M 171,563
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth 6.80% 7/1/2021 AAA 500M 560,625
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Hwy 8% 7/1/2005 AAA 100M 111,500
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Hwy 7 3/4% 7/1/2016 AAA 325M 373,344
--------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth 9 1/4% 7/1/2006 AAA 350M 390,250
--------------------------------------------------------------------------------------------------
Total 2,634,220
- ----------------------------------------------------------------------------------------------------------------------------------
General Obligation Florida St Bd Pub Ed
State 2.59% 6.70% 6/1/2022 AA 250M 263,125
- ----------------------------------------------------------------------------------------------------------------------------------
General Obligation Florida St Jacksonville Trans-SR Lien
Local 4.02% 6.40% 7/1/2022 AA 400M 408,000
- ----------------------------------------------------------------------------------------------------------------------------------
Finance 5.04% Puerto Rico Muni Fin Agy 6 1/2% 7/1/2019 A 500M 511,250
- ----------------------------------------------------------------------------------------------------------------------------------
Health and Hospital Miami FL Health Fac Auth Rev RIBS AMBAC+ 6.12% 8/15/2015++ AAA 600M 465,750
11.40% --------------------------------------------------------------------------------------------------
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
MBIA+ 6 1/4% 7/1/2024 AAA 150M 153,000
--------------------------------------------------------------------------------------------------
St Petersburg FL Health Facs Auth Rev/Allegheny Health Sys
MBIA+ 7% 12/1/2015 AAA 250M 270,000
--------------------------------------------------------------------------------------------------
Tampa FL Health Rev Allegheny Health Sys/St Joseph
MBIA+ 6.70% 12/1/2018 AAA 250M 267,187
--------------------------------------------------------------------------------------------------
Total 1,155,937
- ----------------------------------------------------------------------------------------------------------------------------------
Housing Florida Hsg Fin Agy Sing Fam Mtge Ser B GNMA+
4.43% AMT 6.65% 7/1/2026 AAA 240M 242,700
--------------------------------------------------------------------------------------------------
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 200M 207,000
--------------------------------------------------------------------------------------------------
Total 449,700
- ----------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 2.39% Jacksonville FL Cap Imp Rev Ctfs AMBAC+ 5 7/8% 10/1/2025 AAA 250M 242,500
- ----------------------------------------------------------------------------------------------------------------------------------
Pollution Control Citrus Co FL Poll Ctrl Rev FL Pwr Crystal MBIA+
Revenue 6.35% 2/1/2022 AAA 200M 204,250
4.60% --------------------------------------------------------------------------------------------------
Citrus Co FL Poll Ctrl Rev FL Pwr Crystal MBIA+
6 5/8% 1/1/2027 AAA 250M 262,500
--------------------------------------------------------------------------------------------------
Total 466,750
- ----------------------------------------------------------------------------------------------------------------------------------
Power Charlotte Co FL Util Rev FGIC+ 6 3/4% 10/1/2013 AAA 200M 214,750
14.24% --------------------------------------------------------------------------------------------------
Port St Lucie FL Util Rev FGIC+ 6% 9/1/2024 AAA 200M 198,250
--------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Puerto Rico Elec Pwr Auth 7% 7/1/2021 A $ 750M $ 810,937
--------------------------------------------------------------------------------------------------
Reedy Creek FL Imp Dist Util Rev MBIA+ AMT 8 1/2% 10/1/2009 AAA 200M 219,500
--------------------------------------------------------------------------------------------------
Total 1,443,437
- ----------------------------------------------------------------------------------------------------------------------------------
Solid Waste 2.52% Orange Co FL Solid Waste Fac Rev FGIC+ 6 3/8% 10/1/2017 AAA 250M 255,312
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation Dade Co FL Aviation Rev MBIA+ AMT 6.60% 10/1/2022 AAA 150M 154,875
13.84% --------------------------------------------------------------------------------------------------
Dade Co FL Aviation Rev Ser C MBIA+ AMT 6 1/8% 10/1/2020 AAA 350M 344,312
--------------------------------------------------------------------------------------------------
Dade Co FL Seaport Bd AMBAC+ 6 1/4% 10/1/2021 AAA 150M 151,688
--------------------------------------------------------------------------------------------------
Dade Co FL Seaport Bd AMBAC+ 6 1/2% 10/1/2026 AAA 350M 361,812
--------------------------------------------------------------------------------------------------
Greater Orlando FL Aviation Auth Arpt Fac Rev AMT
8 3/8% 10/1/2016 A 350M 390,688
--------------------------------------------------------------------------------------------------
Total 1,403,375
- ----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer Orlando FL Util Comm Wtr 6 3/4% 10/1/2017 Aa 400M 443,500
6.33% --------------------------------------------------------------------------------------------------
Titusville FL Wtr & Sewer MBIA+ 6% 10/1/2024 AAA 200M 198,250
--------------------------------------------------------------------------------------------------
Total 641,750
--------------------------------------------------------------------------------------------------
Total Investments in Municipal Bonds (Cost $9,819,784) 9,875,356
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 2.62%
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes
Securities 4 1/2% 6/30/1995 (Cost $164,996) MIG1 165M 164,989
- ----------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 100,724
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 265,713
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.45 a share on 2,277,442 shares
of beneficial interest outstanding) $10,141,069
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
April 30, 1995.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL BONDS 99.57%
- ----------------------------------------------------------------------------------------------------------------------------------
Prerefunded New York City Wtr Fin Auth 7 3/4% 6/15/2020 AAA $1,085M $1,251,819
24.20% --------------------------------------------------------------------------------------------------
New York St Loc Govt Assistance Corp 7 1/2% 4/1/2020 AAA 260M 296,725
--------------------------------------------------------------------------------------------------
New York St Urban Dev 7 3/4% 1/1/2014 AAA 275M 311,780
--------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Hwy 8 1/8% 7/1/2013 AAA 150M 167,812
--------------------------------------------------------------------------------------------------
Total 2,028,136
- ----------------------------------------------------------------------------------------------------------------------------------
Education New York St Dorm Auth Revs/City Univ MBIA+ 6 7/8% 7/1/2014 AAA 250M 270,313
11.50% --------------------------------------------------------------------------------------------------
New York St Dorm Auth Revs/City Univ FGIC+ 7% 7/1/2014 AAA 175M 187,250
--------------------------------------------------------------------------------------------------
New York St Dorm Auth Revs/City Univ AMBAC+ 6.30% 7/1/2024 AAA 275M 279,125
--------------------------------------------------------------------------------------------------
New York St Dorm Auth Revs/St Univ Ed Fac-Ser B
7 1/2% 5/15/2011 BBB 200M 227,500
--------------------------------------------------------------------------------------------------
Total 964,188
- ----------------------------------------------------------------------------------------------------------------------------------
Finance 6.96% New York St Loc Govt Assistance Corp 6 7/8% 4/1/2019 A 550M 583,687
- ----------------------------------------------------------------------------------------------------------------------------------
Health and Hospital New York NY City Health & Hosp Corp Rev
11.98% LINK AMBAC+ 5.396% 2/15/2011 AAA 300M 288,750
--------------------------------------------------------------------------------------------------
New York St Med Care Facs Fin/Mental Health 7 1/2% 2/15/2021 BBB 225M 243,844
--------------------------------------------------------------------------------------------------
New York St Med Care Facs Fin/North Shore Univ Hosp
MBIA+ 7.20% 11/1/2020 AAA 200M 216,000
--------------------------------------------------------------------------------------------------
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
MBIA+ 6 1/4% 7/1/2024 AAA 250M 255,000
--------------------------------------------------------------------------------------------------
Total 1,003,594
- ----------------------------------------------------------------------------------------------------------------------------------
Housing New York St Mtge Agy Rev Ser 41-A MBIA+ 6.45% 10/1/2014 AAA 325M 332,313
5.82% --------------------------------------------------------------------------------------------------
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 150M 155,250
--------------------------------------------------------------------------------------------------
Total 487,563
--------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK TAX-FREE INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Industrial Revenue New York NY City Ind Dev Agy Civil Fac Rev Natl Tennis Ctr
Bonds FSA+ 6 3/8% 11/15/2014 AAA $ 350M $ 359,188
8.42% --------------------------------------------------------------------------------------------------
Puerto Rico Tel Auth Rev RIBS MBIA+ 6.389% 1/16/2015++ AAA 400M 346,000
--------------------------------------------------------------------------------------------------
Total 705,188
- ----------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 6.94% United Nations Dev Corp 6% 7/1/2026 A 600M 582,000
- ----------------------------------------------------------------------------------------------------------------------------------
Pollution Control New York St Energy Res & Dev/Bklyn Union Gas
Revenue MBIA+ AMT 6 3/4% 2/1/2024 AAA 200M 208,000
5.78% --------------------------------------------------------------------------------------------------
New York St Energy Res & Dev/Central Hudson Gas & Elec
MBIA+ AMT 8 3/8% 12/1/2028 AAA 250M 276,563
--------------------------------------------------------------------------------------------------
Total 484,563
- ----------------------------------------------------------------------------------------------------------------------------------
Power New York St Energy Res & Dev/Con Edison AMT 7 1/2% 7/1/2025 Aa 300M 315,375
10.89% --------------------------------------------------------------------------------------------------
New York St Energy Res & Dev/Con Edison MBIA+
AMT 7 1/8% 12/1/2029 AAA 150M 161,625
--------------------------------------------------------------------------------------------------
New York St Energy Res & Dev Poll Ctrl Rev/Niagara Mohawk
FGIC+ 7.20% 7/1/2029 AAA 150M 165,187
--------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth 7% 7/1/2021 A 250M 270,312
--------------------------------------------------------------------------------------------------
Total 912,499
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation New York St Twy Auth Gen Rev Ser C FGIC+ 6% 1/1/2015 AAA 150M 148,687
4.13% --------------------------------------------------------------------------------------------------
Triborough Brdg & Tunl Auth AMBAC+ 6% 1/1/2015 AAA 200M 197,750
--------------------------------------------------------------------------------------------------
Total 346,437
- ----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev
2.95% FGIC+ 6% 6/15/2019 AAA 250M 247,188
--------------------------------------------------------------------------------------------------
Total Investments in Municipal Bonds (Cost $8,383,771) 8,345,043
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES .43%
- ----------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 36,235
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.53 a share on 1,851,111 shares of
beneficial interest outstanding) $8,381,278
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Insured or guaranteed by the indicated municipal bond insurance
corporation or Federal agency.
++The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
April 30, 1995.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
GLOBAL INCOME TRUST
Principal
Amount
Rating: S&P in Local Market Value
Security or Moody's Currency (Note 1a & 1b)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INVESTMENTS IN SECURITIES 93.84%
- ----------------------------------------------------------------------------------------------------------------------------------
FOREIGN 55.51%
- ----------------------------------------------------------------------------------------------------------------------------------
Australia 1.10% Australian Commonwealth Government Loan Stock 8 3/4%
due 1/15/2001 AAA $ 110M $ 76,465
- ----------------------------------------------------------------------------------------------------------------------------------
Belgium 2.70% Government of Belgium 8 3/4% due 6/25/2002 AA 5,000M 187,550
- ----------------------------------------------------------------------------------------------------------------------------------
Denmark 2.59% Denmark Government 8% due 11/15/2001 AAA 1,000M 180,040
- ----------------------------------------------------------------------------------------------------------------------------------
France 6.90% Republic of France (OAT) 8 1/2% due 4/25/2003 AAA 2,250M 478,935
- ----------------------------------------------------------------------------------------------------------------------------------
Germany Bundesrepublic 7 1/8% due 12/20/2002 AAA 400M 291,584
11.86% --------------------------------------------------------------------------------------------------
Bundesrepublic 7 3/8% due 1/3/2005 AAA 720M 531,547
--------------------------------------------------------------------------------------------------
Total 823,131
- ----------------------------------------------------------------------------------------------------------------------------------
Italy 4.25% Republic of Italy (BTP) 11% due 6/1/1998 AA 500,000M 295,000
- ----------------------------------------------------------------------------------------------------------------------------------
Japan 14.44% International Bank for Reconstruction & Development
5 1/4% due 3/20/2002 AAA 75,000M 1,002,750
- ----------------------------------------------------------------------------------------------------------------------------------
Netherlands 2.06% Nederland Government 7 1/2% due 4/15/2010 AAA 220M 143,012
- ----------------------------------------------------------------------------------------------------------------------------------
Spain 2.26% Government of Spain 11.30% due 1/15/2002 AA 20,000M 156,600
- ----------------------------------------------------------------------------------------------------------------------------------
Sweden 2.16% Kingdom of Sweden 13% due 6/15/2001 AAA 1,000M 149,690
- ----------------------------------------------------------------------------------------------------------------------------------
United Kingdom 5.19% Conversion 9 1/2% due 4/18/2005 AAA 210M 360,557
--------------------------------------------------------------------------------------------------
Total Investments in Foreign Securities (Cost $3,628,975) 3,853,730
--------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
GLOBAL INCOME TRUST
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES 38.33%
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Banks 8.34% due 1/26/2005 AAA $ 250M $ 257,969
--------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation 8.373% due 1/20/1998 AAA 500M 508,125
--------------------------------------------------------------------------------------------------
Federal National Mortgage Association 0% CMO
Class 94-26 G due 1/25/2024 AAA 88M 37,940
--------------------------------------------------------------------------------------------------
Federal National Mortgage Association 7% due on an
announced basis AAA 250M 238,203
--------------------------------------------------------------------------------------------------
Federal National Mortgage Association 8 1/2%
due on an announced basis AAA 600M 609,375
--------------------------------------------------------------------------------------------------
Federal National Mortgage Association 8 1/2% due 9/1/2006 AAA 270M 277,577
--------------------------------------------------------------------------------------------------
Government National Mortgage Association 8 1/2%
due on an announced basis AAA 250M 254,922
--------------------------------------------------------------------------------------------------
U.S. Treasury Bonds Zero Coupon due 8/15/1999 AAA 300M 224,672
--------------------------------------------------------------------------------------------------
U.S. Treasury Notes 7 1/8% due 2/29/2000 AAA 250M 252,422
--------------------------------------------------------------------------------------------------
Total Investments in United States Securities
(Cost $2,683,696) 2,661,205
--------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $6,312,671) 6,514,935
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 6.16%
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets
Short-Term Investments, U.S. Treasury Notes
at Market 11 1/2% due 11/15/1995 (Cost $1,288,868) AAA 1,250M 1,288,086
------------------------------------------------------------------------------------------------------------------
Receivable for: Securities sold 1,680,004
--------------------------------------------------------------------------------------------------
Other 318,304
--------------------------------------------------------------------------------------------------
Total Other Assets 3,286,394
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities Payable for: Securities purchased 2,856,543
--------------------------------------------------------------------------------------------------
Other 1,905
--------------------------------------------------------------------------------------------------
Total Liabilities 2,858,448
--------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 427,946
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.79 a share on 1,450,236 shares of beneficial
interest outstanding) $6,942,881
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
BOND-DEBENTURE TRUST
Principal Market Value
Security Amount (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENTS IN SECURITIES 83.46%
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT-GRADE CORPORATE BONDS .59%
- -----------------------------------------------------------------------------------------------------------------------------------
RJR Nabisco Inc. Sub. Deb. 9 1/4/2013 (Cost $513,750) $ 500M $ 485,625
- -----------------------------------------------------------------------------------------------------------------------------------
LOWER RATED STRAIGHT DEBT (Note 2) 59.52%
- -----------------------------------------------------------------------------------------------------------------------------------
Agricultural Agricultural Minerals & Chemical Inc. Sr. Notes 10 3/4/2003 500M 522,500
3.13% ---------------------------------------------------------------------------------------------------
Arcadian Partner Sr. Notes 10 3/4/2005 1,000M 1,030,625
---------------------------------------------------------------------------------------------------
PMI Acquisition Corp. Sr. Sub. Notes 10 1/4/2003 1,000M 1,005,000
---------------------------------------------------------------------------------------------------
Total 2,558,125
- -----------------------------------------------------------------------------------------------------------------------------------
Airlines .34% US Air Inc. 10.61/2007 300M 277,827
- -----------------------------------------------------------------------------------------------------------------------------------
Building Materials 1.13% Associated Materials, Inc. Sr. Sub. Notes 11 1/2/2003 1,000M 924,687
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals Huntsman Corp. 1st Mtge. Notes 11/2004 1,000M 1,086,250
4.14% ---------------------------------------------------------------------------------------------------
Polymer Group Inc. Sr. Notes 12 1/4/2002+ 750M 746,250
---------------------------------------------------------------------------------------------------
UCC Investors Holdings Sr. Sub. Notes 11/2003 1,500M 1,548,750
---------------------------------------------------------------------------------------------------
Total 3,381,250
- -----------------------------------------------------------------------------------------------------------------------------------
Communications Adelphia Communications 9 7/8/2005 1,000M 865,000
8.84% ---------------------------------------------------------------------------------------------------
Adelphia Communications Corp. Sr. Notes 12 1/2/2002 500M 490,000
---------------------------------------------------------------------------------------------------
Cellular Inc. Sr. Sub. Discount Notes due 2003 2,000M 1,430,000
---------------------------------------------------------------------------------------------------
Cencall Communications Zero Coupon Sr. Notes due 2004++ 1,000M 486,250
---------------------------------------------------------------------------------------------------
Dial Page Sr. Notes 12 1/4/2000 500M 510,000
---------------------------------------------------------------------------------------------------
Horizon Cellular Inc. Zero Coupon Sr. Notes due 2000 1,000M 772,500
---------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
BOND-DEBENTURE TRUST
Principal Market Value
Security Amount (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Marcus Cable Co. Sr. Deb. 117/8/2005 $ 1,000M $ 975,000
---------------------------------------------------------------------------------------------------
MFS Communications Zero Coupon Sr. Discount Notes due 2004++ 1,000M 663,750
---------------------------------------------------------------------------------------------------
Rogers Communications Inc. Sr. Sub. Deb. 107/8/2004 1,000M 1,027,500
---------------------------------------------------------------------------------------------------
Total 7,220,000
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Systems
and Peripherals 1.05% Digital Equipment Sr. Notes 73/4/2023 1,000M 858,750
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Products
1.80% American Standard Inc. Zero Coupon Sr. Sub. Deb. due 2005 2,000M 1,470,000
- -----------------------------------------------------------------------------------------------------------------------------------
Container and Container Corp. of America Sr. Notes 111/4/2004 1,000M 1,072,500
Packaging 2.56% ---------------------------------------------------------------------------------------------------
Owens Illinois Inc. Sr. Sub. Notes 10/2002 1,000M 1,016,250
---------------------------------------------------------------------------------------------------
Total 2,088,750
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment
.31% Exide Corp. 250M 254,062
- -----------------------------------------------------------------------------------------------------------------------------------
Food Heilman Acquisition Co. 95/8/2004 1,000M 680,000
1.39% ---------------------------------------------------------------------------------------------------
Seven-Up/R.C. Bottling Co. 111/2/1999 500M 452,500
---------------------------------------------------------------------------------------------------
Total 1,132,500
- -----------------------------------------------------------------------------------------------------------------------------------
Hotel/Leisure 1.31% Act III Inc. Sr. Sub. Notes 117/8/2003 1,000M 1,075,000
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial and
Capital Goods 1.31% SPX Corp. Sr. Sub. Notes 113/4/2002 1,000M 1,070,000
- -----------------------------------------------------------------------------------------------------------------------------------
Machinery Carbide Graphite Group Inc. Sr. Notes 111/2/2003 500M 530,625
4.81% ---------------------------------------------------------------------------------------------------
Eagle Industries Inc. Zero Coupon Sr. Discount Notes due 2003++ 2,000M 1,390,000
---------------------------------------------------------------------------------------------------
Essex Group Inc. Sr. Notes 10/2003 1,000M 970,000
---------------------------------------------------------------------------------------------------
IMO Industries Sr. Sub. Deb. 12/2001 1,000M 1,035,000
---------------------------------------------------------------------------------------------------
Total 3,925,625
- -----------------------------------------------------------------------------------------------------------------------------------
Media Benedek Broadcasting Corp. Sr. 2nd Notes 117/8/2005 1,000M 1,020,000
5.18% ---------------------------------------------------------------------------------------------------
Granite Broadcasting Co. Sr. Sub. Deb. 123/4/2002 1,000M 1,055,000
---------------------------------------------------------------------------------------------------
Heritage Media Services, Inc. Sr. Secured Notes 11/2002 1,000M 1,070,000
---------------------------------------------------------------------------------------------------
Young Broadcasting Inc. Sr. Sub. Notes 113/4/2004 1,000M 1,083,750
---------------------------------------------------------------------------------------------------
Total 4,228,750
- -----------------------------------------------------------------------------------------------------------------------------------
Medical Integrated Health Service Sr. Sub. Notes 103/4/2004 1,000M 1,057,500
4.49% ---------------------------------------------------------------------------------------------------
National Medical Ent., Inc. Sr. Sub. Notes 101/8/2005 500M 521,875
---------------------------------------------------------------------------------------------------
Paracelsus Health Care Corp. Sr. Sub. Notes 97/8/2003 1,000M 995,000
---------------------------------------------------------------------------------------------------
Quorum Healthcare 117/8/2002 1,000M 1,095,000
---------------------------------------------------------------------------------------------------
Total 3,669,375
- -----------------------------------------------------------------------------------------------------------------------------------
Oil and Gas Astra Compania Argentina Petroleo Sr. Sub. 115/8/1999+ 500M 457,500
4.98% ---------------------------------------------------------------------------------------------------
Clark USA Inc. Sr. Collateralized Notes due 2000 2,500M 1,490,625
---------------------------------------------------------------------------------------------------
Crown Central Petroleum Corp. Sr. Notes 107/8/2005 1,000M 1,013,750
---------------------------------------------------------------------------------------------------
Gulf Canada Resources Sr. Sub. Notes 91/4/2004 600M 578,250
---------------------------------------------------------------------------------------------------
Nuevo Energy Co. 121/2/2002 500M 527,500
---------------------------------------------------------------------------------------------------
Total 4,067,625
- -----------------------------------------------------------------------------------------------------------------------------------
Oil Service .64% Rowan Cos. Sr. Notes 117/8/2001 500M 526,250
- -----------------------------------------------------------------------------------------------------------------------------------
Paper and Pulp Domtar Inc. Deb. 111/4/2017 1,500M 1,597,500
3.66% ---------------------------------------------------------------------------------------------------
Fort Howard Corp. Sub. Notes 9/2006 1,000M 905,000
---------------------------------------------------------------------------------------------------
S.D. Warren Co. Sr. Sub. Notes 12/2004+ 450M 487,125
---------------------------------------------------------------------------------------------------
Total 2,989,625
- -----------------------------------------------------------------------------------------------------------------------------------
Printing and Publishing
.54% Webcraft Technologies Inc. Sub. Notes 93/8/2002 500M 442,500
- -----------------------------------------------------------------------------------------------------------------------------------
Retail .62% United Stationers Supply Co. Sr. Sub. Notes 123/4/2005+ 500M 505,625
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
BOND-DEBENTURE TRUST
Principal
Amount or
Number of Market Value
Security Shares (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Steel AK Steel Corp. Sr. Notes 10 3/4/2004 $ 1,000M $ 1,047,500
1.91% ---------------------------------------------------------------------------------------------------
Bethlehem Steel Sr. Notes 10 3/8/2003 500M 510,000
---------------------------------------------------------------------------------------------------
Total 1,557,500
- -----------------------------------------------------------------------------------------------------------------------------------
Supermarket Farm Fresh Holdings Sr. Notes P.I.K.+++ 14 1/4/2002 615M 307,335
1.77% ---------------------------------------------------------------------------------------------------
Pathmark Stores Inc. Zero Coupon Sub. Notes due 2003 2,000M 1,140,000
---------------------------------------------------------------------------------------------------
Total 1,447,335
- -----------------------------------------------------------------------------------------------------------------------------------
Textile Dan River Inc. Sr. Sub. Notes 10 1/8/2003 750M 731,250
3.38% ---------------------------------------------------------------------------------------------------
Fieldcrest Cannon Inc. Sr. Sub. Notes 11 1/4/2004 1,000M 1,050,000
---------------------------------------------------------------------------------------------------
Tultex Corp. Sr. Notes 10 5/8/2005 500M 505,000
---------------------------------------------------------------------------------------------------
Westpoint Stevens Sr. Sub. Deb. 9 3/8/2005 500M 477,500
---------------------------------------------------------------------------------------------------
Total 2,763,750
- -----------------------------------------------------------------------------------------------------------------------------------
Utility .23% Beaver Valley Funding Corp. Secured Lease Obligation 9/2017 246M 191,880
---------------------------------------------------------------------------------------------------
Total Investments in Lower Rated Straight Debt (Cost $48,880,275) 48,626,791
- -----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE DEBT 5.16%
- -----------------------------------------------------------------------------------------------------------------------------------
Business Services .67% Olsten Corp. Sub. Deb. 4 7/8/2003 500M 547,500
- -----------------------------------------------------------------------------------------------------------------------------------
Communications .79% Telekom Malaysia Sub. Deb. 8 1/2/2012+ 750M 646,875
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Systems and
Peripherals 1.26% EMC Corp. Conv. Sub. Deb. 4 1/4/2001 900M 1,030,500
- -----------------------------------------------------------------------------------------------------------------------------------
Data Processing
Equipment .54% Automatic Data Processing Zero Coupon Conv. Sub. Deb. due 2012 1,000M 440,000
- -----------------------------------------------------------------------------------------------------------------------------------
Drugs .83% Roche Holdings Inc. Zero Coupon Conv. Deb. due 2010 1,800M 677,250
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial and Capital
Goods .57% Albany International Sub. Deb. 5 1/4/2002 500M 465,000
- -----------------------------------------------------------------------------------------------------------------------------------
Waste Management .50% WMX Technologies Sub. Notes 2/2005 500M 410,000
---------------------------------------------------------------------------------------------------
Total Investments in Convertible Debt (Cost $4,127,616) 4,217,125
- -----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE-PREFERRED STOCKS 5.53%
- -----------------------------------------------------------------------------------------------------------------------------------
Banking Ahmanson, H.F. & Co. $3.00 Conv. Pfd. D 15,000 735,000
1.90% ---------------------------------------------------------------------------------------------------
BankAmerica Corp. $3.25 Conv. Pfd. G 15,000 815,625
---------------------------------------------------------------------------------------------------
Total 1,550,625
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals .63% Atlantic Richfield (Lyondell Petrochemical) $2.23 Conv. Pfd. 20,000 515,000
- -----------------------------------------------------------------------------------------------------------------------------------
Data Processing
Equipment .77% General Motors Corp. (Electronic Data Systems) $3.25 Conv. Pfd. 10,000 626,250
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance .49% Allstate Group (pmi) $2.30 Conv. Pfd. 11,000 397,375
- -----------------------------------------------------------------------------------------------------------------------------------
Medical 1.24% Beverly Enterprises $2.75 Conv. Pfd. 17,500 1,010,625
- -----------------------------------------------------------------------------------------------------------------------------------
Oil and Gas .50% Unocal Corp. $3.50 Conv. Pfd.+ 7,500 406,875
---------------------------------------------------------------------------------------------------
Total Investments in Convertible-Preferred Stocks (Cost $4,396,811) 4,506,750
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY ISSUES 12.66%
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Banks 8.05/2000 2,000M 2,012,500
---------------------------------------------------------------------------------------------------
Federal National Mortgage Association 7.50% due on an announced basis 3,000M 2,923,125
---------------------------------------------------------------------------------------------------
Federal National Mortgage Association 8.625/2004 3,000M 3,139,219
---------------------------------------------------------------------------------------------------
Government National Mortgage Association 8/2024 984M 983,873
---------------------------------------------------------------------------------------------------
U.S. Treasury Notes 9.25/1998 1,200M 1,286,250
---------------------------------------------------------------------------------------------------
Total Investments in Government Agency Issues (Cost $10,188,672) 10,344,967
---------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $68,107,124) 68,181,258
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 16.54%
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Federal Home Loan Banks 15/1995 3,000M 3,061,875
Short-Term ---------------------------------------------------------------------------------------------------
Investments, Federal Home Loan Mortgage Corporation 12/1996 3,000M 3,095,625
at Market ---------------------------------------------------------------------------------------------------
Student Loan Marketing Association 15% due 10/13/1995 5,000M 5,204,688
---------------------------------------------------------------------------------------------------
Total (Cost $11,859,900) 11,362,188
---------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Statement of Net Assets April 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
BOND-DEBENTURE TRUST
Principal Market Value
Security Amount (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Short-Term Chevron Oil Finance Co. 5.90% due 5/4/1995 $ 300M $ 300,000
Investments, ---------------------------------------------------------------------------------------------------
at Cost Ford Motor Credit Co. 5.95% due 5/3/1995 450M 450,000
---------------------------------------------------------------------------------------------------
Prudential Funding Corp. 5.86% due 5/3/1995 200M 200,000
---------------------------------------------------------------------------------------------------
Total 950,000
---------------------------------------------------------------------------------------------------
Total Short-Term Investments 12,312,188
- -----------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 1,203,825
---------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 13,516,013
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% (equivalent to $4.71 a share on 17,341,334 shares of beneficial interest outstanding) $81,697,271
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Restricted security under Rule 144A.
++Deferred interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
+++Represents a payment-in-kind security, which may pay interest/dividends in
additional face/shares.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
================================================================================
Statement of Net Assets April 30, 1995
- --------------------------------------------------------------------------------
GROWTH & INCOME TRUST
Market
Number Value
Security of Shares (Note 1a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENTS IN COMMON AND
CONVERTIBLE-PREFERRED STOCKS 92.59%
- --------------------------------------------------------------------------------
Aerospace Boeing Co. 5,900 $ 324,500
2.68% ---------------------------------------------------------
Lockheed Martin Corp. 2,878 166,205
---------------------------------------------------------
Total 490,705
- --------------------------------------------------------------------------------
Airlines 1.23% British Airways ADS 3,500 226,187
- --------------------------------------------------------------------------------
Auto Parts Genuine Parts Co. 13,100 507,625
5.22% ---------------------------------------------------------
Snap-On, Inc. 4,200 156,450
---------------------------------------------------------
TRW Inc. 3,900 290,062
---------------------------------------------------------
Total 954,137
- --------------------------------------------------------------------------------
Automobiles Ford Motor Co.
2.39% $4.20 Cum. Conv. Pfd. A 500 44,062
---------------------------------------------------------
General Motors Corp. 8,700 392,588
---------------------------------------------------------
Total 436,650
- --------------------------------------------------------------------------------
Banks:
Money Center
1.19% Chemical Banking Corp. 5,200 217,100
- --------------------------------------------------------------------------------
Banks: BankAmerica Corp. 4,200 207,900
Regional ---------------------------------------------------------
1.64% Fleet Financial Group, Inc. 2,800 91,700
---------------------------------------------------------
Total 299,600
- --------------------------------------------------------------------------------
Beverages Anheuser-Busch
.63% Companies Inc. 2,000 116,250
- --------------------------------------------------------------------------------
Chemicals Dow Chemical Co. 3,900 271,050
2.90% ---------------------------------------------------------
Union Carbide Corp. 8,100 259,200
---------------------------------------------------------
Total 530,250
- --------------------------------------------------------------------------------
Data Processing
Equipment
1.37% Hewlett-Packard Co. 3,800 251,275
- --------------------------------------------------------------------------------
Data Processing General Motors Corp.
Services (Electronic Data Systems)
1.51% $3.25 Conv. Pfd. 4,400 275,550
- --------------------------------------------------------------------------------
Drugs/Health Bristol-Myers Squibb
Care Products Company 2,000 130,250
5.26% ---------------------------------------------------------
Lilly, Eli & Co. 2,200 164,450
---------------------------------------------------------
Merck & Co., Inc. 7,500 321,562
---------------------------------------------------------
SmithKline Beecham
plc ADR 8,900 345,988
---------------------------------------------------------
Total 962,250
- --------------------------------------------------------------------------------
Electric Power Baltimore Gas &
4.63% Electric Co. 9,100 214,987
---------------------------------------------------------
CINergy Corp. 13,300 334,162
---------------------------------------------------------
Public Service
Enterprises Group Inc. 10,800 297,000
---------------------------------------------------------
Total 846,149
- --------------------------------------------------------------------------------
Electrical
Equipment
2.21% Emerson Electric Co. 6,000 403,500
- --------------------------------------------------------------------------------
Electronics:
Communications
.85% Harris Corp. 3,300 155,100
- --------------------------------------------------------------------------------
Electronics:
Components
2.71% AMP Inc. 11,600 495,900
- --------------------------------------------------------------------------------
Electronics: Perkin-Elmer Corp. 2,500 77,812
Equipment ---------------------------------------------------------
1.26% Raytheon Company 2,100 152,775
---------------------------------------------------------
Total 230,587
- --------------------------------------------------------------------------------
Financial: American Express Company 5,500 191,125
Miscellaneous ---------------------------------------------------------
1.51% Transamerica Corp. 1,500 84,937
---------------------------------------------------------
Total 276,062
- --------------------------------------------------------------------------------
Food Archer-Daniels-
8.83% Midland Co. 18,237 332,825
---------------------------------------------------------
Conagra Inc. 3,600 119,700
---------------------------------------------------------
Conagra Inc.
$1.6875 Conv. Pfd. E 4,000 136,500
---------------------------------------------------------
Dean Foods Co. 9,000 256,500
---------------------------------------------------------
Hershey Foods Corp. 6,500 341,250
---------------------------------------------------------
Sara Lee Corp. 4,000 111,500
---------------------------------------------------------
Supervalu Inc. 12,000 316,500
---------------------------------------------------------
Total 1,614,775
---------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statement of Net Assets April 30, 1995
- --------------------------------------------------------------------------------
GROWTH & INCOME TRUST Number of
Shares or Market
Principal Value
Security Amount (Note 1a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Health Care
Products .67% Baxter International Inc. 3,500 $ 121,625
- --------------------------------------------------------------------------------
Insurance Aetna Life &
5.99% Casualty Company 6,250 356,250
---------------------------------------------------------
Chubb Corp.
Conv. Sub. Deb. 6/1998 100M 104,000
---------------------------------------------------------
Cigna Corp. 5,200 377,650
---------------------------------------------------------
Lincoln National Corp. 2,000 81,500
---------------------------------------------------------
SAFECO Corp. 1,400 79,100
---------------------------------------------------------
St. Paul Companies Inc. 2,000 96,250
---------------------------------------------------------
Total 1,094,750
- --------------------------------------------------------------------------------
Machinery: Deere & Co. 4,700 385,400
Diversified ---------------------------------------------------------
2.95% Goulds Pumps, Inc. 6,200 153,450
---------------------------------------------------------
Total 538,850
- --------------------------------------------------------------------------------
Metals: Cyprus Amax
Miscellaneous Minerals+
.69% $4.00 Conv. Pfd. A 1,200 74,400
---------------------------------------------------------
Inco Ltd. 2,000 51,750
---------------------------------------------------------
Total 126,150
- --------------------------------------------------------------------------------
Miscellaneous Minnesota Mining &
3.32% Mfg. Co. 8,200 488,925
---------------------------------------------------------
Moore Corp. Ltd. 6,000 118,500
---------------------------------------------------------
Total 607,425
- --------------------------------------------------------------------------------
Natural Gas
Distribution .65% Eastern Enterprises 4,000 119,500
- --------------------------------------------------------------------------------
Natural Gas
Diversified 1.41% Equitable Resources, Inc. 9,000 257,625
- --------------------------------------------------------------------------------
Natural Gas
Transmission 1.11% Coastal Corp. 6,800 202,300
- --------------------------------------------------------------------------------
Office Equipment/
Supplies .25% Apple Computer Inc. 1,200 45,900
- --------------------------------------------------------------------------------
Oil: Amoco Corp. 1,000 65,625
Domestic ---------------------------------------------------------
1.30% Ultramar Corp. 3,500 91,438
---------------------------------------------------------
Unocal Corp.+
$3.50 Conv. Pfd. 1,500 81,375
---------------------------------------------------------
Total 238,438
- --------------------------------------------------------------------------------
Oil: Chevron Corp. 11,000 521,125
International ---------------------------------------------------------
5.32% Exxon Corp. 6,500 452,563
---------------------------------------------------------
Total 973,688
- --------------------------------------------------------------------------------
Paper and Boise Cascade Corp. 4,000 131,000
Forest Products ---------------------------------------------------------
4.39% Federal Paper Board Inc. 11,300 334,763
---------------------------------------------------------
International Paper Co. 2,800 215,600
---------------------------------------------------------
James River Corp. 4,500 122,063
---------------------------------------------------------
Total 803,426
- --------------------------------------------------------------------------------
Printing and Donnelley, R.R.
Publishing & Sons Co. 9,000 306,000
2.25% ---------------------------------------------------------
Gannett Co., Inc. 2,000 105,250
---------------------------------------------------------
Total 411,250
- --------------------------------------------------------------------------------
Retail Dayton Hudson Corp. 3,950 265,144
2.31% ---------------------------------------------------------
Sears, Roebuck & Co. 2,900 157,325
---------------------------------------------------------
Total 422,469
- --------------------------------------------------------------------------------
Savings and Ahmanson, H.F. & Co. 8,600 180,600
Loan 3.17% ---------------------------------------------------------
Great Western
Financial Corp. 18,900 399,262
---------------------------------------------------------
Total 579,862
- --------------------------------------------------------------------------------
Textiles: National Service
Apparel Industries, Inc. 2,500 70,625
1.74% ---------------------------------------------------------
V.F. Corp. 4,900 247,450
---------------------------------------------------------
Total 318,075
- --------------------------------------------------------------------------------
Tire and Rubber Cooper Tire &
Goods 1.05% Rubber Company 7,800 191,100
- --------------------------------------------------------------------------------
Tobacco 2.08% American Brands Inc. 9,400 380,700
- --------------------------------------------------------------------------------
Transportation:
Miscellaneous
.19% Ryder Systems Inc. 1,500 35,063
- --------------------------------------------------------------------------------
Telecommun- MCI Communications
ications .93% Corp. 7,800 169,650
- --------------------------------------------------------------------------------
Waste Disposal Browning Ferris
2.80% Industries Inc. 10,900 359,700
---------------------------------------------------------
WMX Technologies Inc. 5,600 152,600
---------------------------------------------------------
Total 512,300
---------------------------------------------------------
Total Investments in Securities
(Cost $15,613,795) 16,932,173
- --------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 7.41%
- --------------------------------------------------------------------------------
Corporate Obligations, at Cost
- --------------------------------------------------------------------------------
Commercial Credit Co.
5.88% due 5/2/1995 300M 299,657
---------------------------------------------------------
Ford Motor Credit Co.
5.95% due 5/3/1995 400M 400,000
---------------------------------------------------------
Prudential Funding Corp.
5.93% due 5/4/1995 300M 300,000
---------------------------------------------------------
Total 999,657
- --------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 354,657
---------------------------------------------------------
Total Other Assets, Less Liabilities 1,354,314
- --------------------------------------------------------------------------------
Net Assets (equivalent to $5.50 a share on
100.00% 3,327,478 shares of beneficial
interest outstanding) $18,286,487
- --------------------------------------------------------------------------------
</TABLE>
+Restricted security under Rule 144A.
See Notes to Financial Statements.
12
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statement of Net Assets April 30, 1995
- --------------------------------------------------------------------------------
BALANCED TRUST
- --------------------------------------------------------------------------------
Market
Number Value
Security of Shares (Note 1a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENTS IN SECURITIES 96.75%
- --------------------------------------------------------------------------------
COMMON STOCKS 45.94%
- --------------------------------------------------------------------------------
Aerospace 1.32% Boeing Co. 350 $ 19,250
- --------------------------------------------------------------------------------
Auto Parts Genuine Parts Co. 500 19,375
2.61% ---------------------------------------------------------
TRW Inc. 250 18,594
---------------------------------------------------------
Total 37,969
- --------------------------------------------------------------------------------
Automobiles
1.39% General Motors Corp. 450 20,306
- --------------------------------------------------------------------------------
Banks: Money
Center .86% Chemical Banking Corp. 300 12,525
- --------------------------------------------------------------------------------
Banks:
Regional 1.02% BankAmerica Corp. 300 14,850
- --------------------------------------------------------------------------------
Chemicals Dow Chemical Co. 400 27,800
2.90% ---------------------------------------------------------
Union Carbide Corp. 450 14,400
---------------------------------------------------------
Total 42,200
- --------------------------------------------------------------------------------
Data Processing
Equipment .91% Hewlett-Packard Co. 200 13,225
- --------------------------------------------------------------------------------
Data Processing General Motors Corp.
Services 1.04% Class E (Electronic
Data Systems) 350 15,138
- --------------------------------------------------------------------------------
Drugs/Health Merck & Co., Inc. 400 17,150
Care Products ---------------------------------------------------------
2.38% SmithKline Beecham
plc ADR 450 17,494
---------------------------------------------------------
Total 34,644
- --------------------------------------------------------------------------------
Electric Baltimore Gas
Power & Electric Co. 550 12,994
2.86% ---------------------------------------------------------
CINergy Corp. 700 17,588
---------------------------------------------------------
Public Service
Enterprises Group Inc. 400 11,000
---------------------------------------------------------
Total 41,582
- --------------------------------------------------------------------------------
Electrical
Equipment
1.16% Emerson Electric Co. 250 16,812
- --------------------------------------------------------------------------------
Electronics:
Components
2.06% AMP Inc. 700 29,925
- --------------------------------------------------------------------------------
Financial:
Miscellaneous
.84% American Express Company 350 12,162
- --------------------------------------------------------------------------------
Food Archer-Daniels-
4.21% Midland Co. 1,050 19,163
---------------------------------------------------------
Conagra Inc. 400 13,300
---------------------------------------------------------
Dean Foods Co. 550 15,675
---------------------------------------------------------
Hershey Foods Corp. 250 13,125
---------------------------------------------------------
Total 61,263
- --------------------------------------------------------------------------------
Insurance Aetna Life &
2.03% Casualty Company 200 11,400
---------------------------------------------------------
Cigna Corp. 250 18,156
---------------------------------------------------------
Total 29,556
- --------------------------------------------------------------------------------
Machinery:
Diversified
1.41% Deere & Co. 250 20,500
- --------------------------------------------------------------------------------
Miscellaneous Minnesota Mining &
1.64% Mfg. Co. 400 23,850
- --------------------------------------------------------------------------------
Natural Gas
Diversified .98% Equitable Resources, Inc. 500 14,312
- --------------------------------------------------------------------------------
Natural Gas
Transmission .61% Coastal Corp. 300 8,925
- --------------------------------------------------------------------------------
Oil: Chevron Corp. 500 23,688
International ---------------------------------------------------------
3.54% Exxon Corp. 400 27,850
---------------------------------------------------------
Total 51,538
- --------------------------------------------------------------------------------
Paper and Forest Federal Paper Board Inc. 600 17,775
Products ---------------------------------------------------------
2.28% International Paper Co. 200 15,400
---------------------------------------------------------
Total 33,175
- --------------------------------------------------------------------------------
Printing and
Publishing 1.29% Donnelley, R.R. & Sons Co. 550 18,700
- --------------------------------------------------------------------------------
Retail .92% Dayton Hudson Corp. 200 13,425
- --------------------------------------------------------------------------------
Savings and Ahmanson, H.F. & Co. 550 11,550
Loan 2.03% ---------------------------------------------------------
Great Western
Financial Corp. 850 17,956
---------------------------------------------------------
Total 29,506
- --------------------------------------------------------------------------------
Textiles:
Apparel .87% V.F. Corp. 250 12,625
- --------------------------------------------------------------------------------
Tire and
Rubber Goods Cooper Tire &
.42% Rubber Company 250 6,125
- --------------------------------------------------------------------------------
Tobacco 1.11% American Brands Inc. 400 16,200
- --------------------------------------------------------------------------------
Waste Disposal Browning Ferris
1.25% Industries Inc. 550 18,150
---------------------------------------------------------
Total Investments in Common Stocks
(Cost $612,966) 668,438
- --------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS 50.81%
- --------------------------------------------------------------------------------
Federal National
Mortgage Association
81/2% to be announced 475M 482,422
---------------------------------------------------------
U.S. Treasury Notes
71/2% due 11/15/2001 250M 257,031
---------------------------------------------------------
Total Investments in
U.S. Government Obligations
(Cost $729,319) 739,453
---------------------------------------------------------
Total Investments in Securities
(Cost $1,342,285) 1,407,891
- --------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES 3.25%
- --------------------------------------------------------------------------------
Short-Term Investments, at Cost
- --------------------------------------------------------------------------------
Federal Home Loan Banks
5.90% due 5/4/1995 300M 299,705
---------------------------------------------------------
Federal Home Loan
Mortgage Corp.
5.85% due 5/3/1995 135M 134,803
---------------------------------------------------------
Total 434,508
- --------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities
---------------------------------------------------------
Total Other Assets, Less Liabilities 47,275
- --------------------------------------------------------------------------------
Net Assets (equivalent to $10.71 a share on
100.00% 135,862 shares of beneficial
interest outstanding) $1,455,166
- --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
Statements of Operations
- -----------------------------------------------------------------------------------------------------------
For the Six Months Ended 4/30/95
------------------------------------------------------------------------------
Limited
Duration
U.S. U.S. Tax-Free Income Trusts
Government Government -------------------------------------------------
Securities Securities National California Florida New York
Investment Income Trust Trust Trust Trust Trust Trust
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Income
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Interest $ 16,098,620 $ 515,938 $ 1,350,164 $ 647,980 $ 360,252 $ 264,924
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Dividends - - - - - -
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Total income 16,098,620 515,938 1,350,164 647,980 360,252 264,924
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Expenses (Note 5)
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
12b-1 distribution
plan (Note 5) 1,497,804 49,185 180,302 87,933 44,367 34,963
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Management fee 849,949 34,840 99,579 48,675 26,355 20,344
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Shareholder servicing 42,000 4,500 12,000 6,000 4,800 4,212
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Reports to shareholders 29,000 2,750 3,000 2,000 1,200 1,500
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Audit and tax 25,500 8,550 8,000 7,500 6,900 5,500
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Registration 20,000 6,000 2,052 2,000 1,500 1,500
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Organization (Note 1e) 11,442 4,056 3,942 930 906 1,038
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Legal 4,500 1,350 600 150 150 150
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Other 62,272 4,781 7,353 7,200 4,050 2,780
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Management fees waived
and expenses assumed by
Lord, Abbett & Co. - - (136,526) (74,455) (45,861) (37,024)
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net expenses 2,542,467 116,012 180,302 87,933 44,367 34,963
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net investment income 13,556,153 399,926 1,169,862 560,047 315,885 229,961
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Notes 1g & 8)
- -----------------------------------------------------------------------------------------------------------
Realized gain (loss)
from security transactions
and foreign currency
transactions
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Proceeds from sales 1,560,730,898 36,995,683 68,077,100 17,054,373 11,899,612 5,692,245
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Cost of securities sold 1,570,780,148 37,063,787 68,670,094 17,699,439 12,489,714 5,900,726
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net realized gain (loss) (10,049,250) (68,104) (592,994) (645,066) (590,102) (208,481)
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Unrealized appreciation
(depreciation) of
investments and foreign
currency holdings
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Beginning of period 13,602,308 (168,261) (3,552,811) (1,176,684) (891,975) (643,136)
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
End of period 1,695,286 35,470 (615,895) 250,949 55,565 (38,728)
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net unrealized appreciation 15,297,594 203,731 2,936,916 1,427,633 947,540 604,408
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net realized and unrealized
gain on investments and
foreign currency transactions 5,248,344 135,627 2,343,922 782,567 357,438 359,927
- ---------------------------- -------------- ----------- ----------- ----------- ----------- ----------
Net Increase in Net Assets
Resulting from Operations $ 18,804,497 $ 535,553 $ 3,513,784 $ 1,342,614 $ 673,323 $ 625,888
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
For the Period
12/27/94
(Commencement
For the Six Months Ended 4/30/95 of Operations
-------------------------------- to 4/30/95
Global Bond- Growth & ----------
Income Debenture Income Balanced
Investment Income Trust Trust Trust Trust
- ---------------------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Income
- ---------------------------- -------------- ----------- ----------- -----------
Interest $ 269,132 $ 3,402,876 $ 23,895 $ 12,938
- ---------------------------- ----------- ----------- ---------- ----------
Dividends - 102,884 195,148 5,167
- ---------------------------- ----------- ----------- ---------- ----------
Total income 269,132 3,505,760 219,043 18,105
- ---------------------------- ----------- ----------- ---------- ----------
Expenses (Note 5)
- ---------------------------- -------------- ----------- ----------- -----------
12b-1 distribution
plan (Note 5) 30,755 314,158 52,535 744
- ---------------------------- ----------- ----------- ---------- ----------
Management fee 17,070 167,626 47,954 3,282
- ---------------------------- ----------- ----------- ---------- ----------
Shareholder servicing 6,100 45,000 15,600 300
- ---------------------------- ----------- ----------- ---------- ----------
Reports to shareholders 2,500 9,000 2,677 500
- ---------------------------- ----------- ----------- ---------- ----------
Audit and tax 5,200 11,000 8,000 2,250
- ---------------------------- ----------- ----------- ---------- ----------
Registration 3,000 10,000 5,250 500
- ---------------------------- ----------- ----------- ---------- ----------
Organization (Note 1e) 3,666 3,666 3,666 2,452
- ---------------------------- ----------- ----------- ---------- ----------
Legal 200 800 200 100
- ---------------------------- ----------- ----------- ---------- ----------
Other 4,121 5,038 2,897 50
- ---------------------------- ----------- ----------- ---------- ----------
Management fees waived
and expenses assumed by
Lord, Abbett & Co. (41,857) - (70,829) (9,434)
- ---------------------------- ----------- ----------- ---------- ----------
Net expenses 30,755 566,288 67,950 744
- ---------------------------- ----------- ----------- ---------- ----------
Net investment income 238,377 2,939,472 151,093 17,361
- ---------------------------- ----------- ----------- ---------- ----------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Notes 1g & 8)
- ---------------------------------------------------------------------------------------------------
Realized gain (loss)
from security transactions
and foreign currency
transactions
- ---------------------------- -------------- ----------- ----------- -----------
Proceeds from sales 25,005,543 33,741,744 1,642,292 1,508,083
- ---------------------------- ----------- ----------- ---------- ----------
Cost of securities sold 24,887,535 34,171,828 1,589,901 1,489,342
- ---------------------------- ----------- ----------- ---------- ----------
Net realized gain (loss) 118,008 (430,084) 52,391 18,741
- ---------------------------- ----------- ----------- ---------- ----------
Unrealized appreciation
(depreciation) of
investments and foreign
currency holdings
- ---------------------------- ----------- ----------- ---------- ----------
Beginning of period (26,361) (2,232,303) 144,498 -
- ---------------------------- ----------- ----------- ---------- ----------
End of period 134,446 (423,578) 1,318,378 65,605
- ---------------------------- ----------- ----------- ---------- ----------
Net unrealized appreciation 160,807 1,808,725 1,173,880 65,605
- ---------------------------- ----------- ----------- ---------- ----------
Net realized and unrealized
gain on investments and
foreign currency transactions 278,815 1,378,641 1,226,271 84,346
- ---------------------------- ----------- ----------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations $ 517,192 $ 4,318,113 $1,377,364 $ 101,707
- ---------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets For the Six Months Ended April 30, 1995
- -----------------------------------------------------------------------------------------------------------------------------------
Tax-Free Income Trusts
Limited Duration ------------------------------------------------
U.S. Government U.S. Government National California Florida New York
Increase (Decrease) in Net Assets Securities Trust Securities Trust Trust Trust Trust Trust
- --------------------------------------------- ----------------- ----------------- -------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 13,556,153 $ 399,926 $ 1,169,862 $ 560,047 $ 315,885 $ 229,961
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net realized loss from security
transactions (10,049,250) (68,104) (592,994) (645,066) (590,102) (208,481)
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net unrealized appreciation of
investments 15,297,594 203,731 2,936,916 1,427,633 947,540 604,408
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net increase in net assets
resulting from operations 18,804,497 535,553 3,513,784 1,342,614 673,323 625,888
- --------------------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Distributions to shareholders
from net investment income (13,072,740) (366,379) (1,118,276) (521,988) (281,056) (215,191)
- --------------------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Share transactions (Note 6)
- --------------------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net proceeds from sales of
shares 24,367,708 3,815,585 7,858,665 3,351,154 1,253,670 866,035
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net asset value of shares
issued to shareholders in
reinvestment of net investment
income 3,147,586 125,526 508,145 90,773 29,481 94,741
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Total 27,515,294 3,941,111 8,366,810 3,441,927 1,283,151 960,776
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Cost of shares reacquired (46,650,306) (5,825,739) (8,420,347) (3,496,650) (2,880,763) (1,358,797)
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Decrease in net assets derived
from share transactions (19,135,012) (1,884,628) (53,537) (54,723) (1,597,612) (398,021)
- --------------------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Total increase (decrease) in net assets (13,403,255) (1,715,454) 2,341,971 765,903 (1,205,345) 12,676
- --------------------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
Net Assets
============================================= ================= ================= =================================================
Beginning of period 343,543,882 14,666,196 39,199,735 19,553,333 11,346,414 8,368,602
------------------------------- ----------------- ----------------- ------------ ------------ ------------ ----------
End of period+ $330,140,627 $12,950,742 $41,541,706 $20,319,236 $10,141,069 $8,381,278
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+See footnote below.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
For the Period
1/3/94
(Commencement Year Ended 10/31/94
of Operations) to
10/31/94
Year Ended ----------------- Tax-Free Income Trusts
10/31/94 Limited Duration ---------------------------------------------------
U.S. Government U.S. Government National California Florida New York
Increase (Decrease) in Net Assets Securities Trust Securities Trust Trust Trust Trust Trust
- ------------------------------------------- ----------------- ----------------- ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 27,030,370 $ 526,110 $ 1,838,402 $ 868,631 $ 515,405 $ 408,813
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net realized loss from
security transactions (37,187,536) (673,244) (2,142,246) (1,712,556) (783,954) (604,185)
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net unrealized depreciation
of investments (13,586,704) (168,261) (3,493,283) (1,158,944) (884,478) (636,357)
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net decrease in net assets
resulting from operations (23,743,870) (315,395) (3,797,127) (2,002,869) (1,153,027) (831,729)
- ------------------------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Distributions to shareholders from
net investment income (26,783,987) (521,579) (1,871,600) (926,697) (543,056) (427,198)
- ------------------------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Share transactions (Note 6)
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net proceeds from sales of
shares 199,301,843 19,940,716 46,197,456 21,905,912 12,220,832 9,477,574
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net asset value of shares
issued to shareholders in
reinvestment of net
investment income 6,386,072 146,135 697,273 170,156 39,293 127,310
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Total 205,687,915 20,086,851 46,894,729 22,076,068 12,260,125 9,604,884
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Cost of shares reacquired (79,355,750) (4,584,681) (10,487,169) (3,314,615) (1,636,253) (2,465,092)
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Increase in net assets
derived from share
transactions 126,332,165 15,502,170 36,407,560 18,761,453 10,623,872 7,139,792
- ------------------------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Total increase in net assets 75,804,308 14,665,196 30,738,833 15,831,887 8,927,789 5,880,865
- ------------------------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
Net Assets
- ------------------------------------------- ----------------- ----------------- ---------------------------------------------------
Beginning of period 267,739,574 1,000 8,460,902 3,721,446 2,418,625 2,487,737
----------------------------- ----------------- ----------------- ------------- ------------ ------------ -----------
End of period+ $343,543,882 $14,666,196 $39,199,735 $19,553,333 $11,346,414 $8,368,602
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Includes undistributed (overdistributed) net investment income of $661,848,
$38,078, $11,147, $(22,280), $5,150 and $(5,165), respectively, as of
April 30, 1995 and $178,435, $4,531, $(40,438), $(60,338), $(29,679) and
$(19,937), respectively, as of October 31, 1994.
See Notes to Financial Statements.
15
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
For the Period
12/27/94 For the Period 1/3/94
Six Months (Commencement (Commencement of Operations) to
Ended 4/30/95 of Operations) 10/31/94
-------------------------------------- to 4/30/95 -------------------------------------
Global Bond- Growth & ---------- Global Bond- Growth &
Income Debenture Income Balanced Income Debenture Income
Increase (Decrease) in Net Assets Trust Trust Trust Trust Trust Trust Trust
- -------------------------------------------------------------------------------- ----------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 238,377 $ 2,939,472 $ 151,093 $ 17,361 $ 293,221 $2,328,322 $ 93,364
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Net realized gain (loss)
from security transactions
and foreign currency
transactions 118,008 (430,084) 52,391 18,741 (307,394) (448,912) (9,220)
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Unrealized appreciation
(depreciation) of
investments and foreign
currency holdings 160,807 1,808,725 1,173,880 65,605 (26,361) (2,232,303) 144,498
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Net increase (decrease)
in net assets resulting
from operations 517,192 4,318,113 1,377,364 101,707 (40,534) (352,893) 228,642
- ---------------------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Undistributed net income included in
price of shares sold (reacquired)
(Note 1f) - 16,975 43,790 1,679 - 136,242 26,426
- ---------------------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Distributions to shareholders from
net investment income (245,007) (3,008,745) (132,711) (10,283) (327,890) (2,291,629) (68,201)
- ---------------------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Share transactions (Note 6)
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Net proceeds from sales
of shares 1,479,126 25,738,180 8,505,625 1,352,440 7,808,743 64,189,791 9,456,716
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Net asset value of shares
issued to shareholders in
reinvestment of net
investment income and
realized gain from
security transactions 57,142 849,109 103,629 9,120 66,497 639,214 52,223
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Total 1,536,268 26,587,289 8,609,254 1,361,560 7,875,240 64,829,005 9,508,939
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Cost of shares reacquired (1,575,150) (4,960,062) (771,375) (497) (798,238) (3,578,024) (536,641)
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Increase (decrease) in net
assets derived from share
transactions (38,882) 21,627,227 7,837,879 1,361,063 7,077,002 61,250,981 8,972,298
- ---------------------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Total increase in net assets 233,303 22,953,570 9,126,322 1,454,166 6,708,578 58,742,701 9,159,165
- ---------------------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Beginning of period 6,709,578 58,743,701 9,160,165 1,000 1,000 1,000 1,000
--------------------------- ----------- ------------- ------------- ----------- ------------ ------------- ----------
End of period+ $6,942,881 $81,697,271 $18,286,487 $1,455,166 $6,709,578 $58,743,701 $9,160,165
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Includes undistributed (overdistributed) net investment income of $(41,299),
$120,637, $113,761 and $8,757, respectively, as of April 30, 1995 and $(34,669),
$172,935 and $51,589, respectively, as of October 31, 1994.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES TRUST
For the Period
6/1/93
Six Months (Commencement
Ended Year Ended of Operations) to
Per Share Operating Performance: 4/30/95 10/31/94 10/31/93
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 4.41 $ 5.08 $ 5.00
------------------------------------------------------------------- --------------- --------------------- -----------
Income from investment operations
------------------------------------------------------------ --------------- --------------------- -----------
Net investment Income .161+ .364 .149+
------------------------------------------------------------ --------------- --------------------- -----------
Net realized and unrealized gain (loss) on investments .093 (.6731) .082
------------------------------------------------------------ --------------- --------------------- -----------
Total from investment operations .254 (.3091) .231
------------------------------------------------------------------- --------------- --------------------- -----------
Distributions
------------------------------------------------------------ --------------- --------------------- -----------
Dividends from net investment income (.174) (.3609) (.151)
- -------------------------------------------------------------------------------- --------------- --------------------- -----------
Net asset value, end of period $ 4.49 $ 4.41 $ 5.08
- -------------------------------------------------------------------------------- --------------- --------------------- -----------
Total Return 5.89%+ (6.25)% 4.65%+
- -------------------------------------------------------------------------------- --------------- --------------------- -----------
Ratios/Supplemental Data:
- -------------------------------------------------------------------------------- --------------- --------------------- -----------
Net assets, end of period (000) $330,141 $343,544 $267,740
------------------------------------------------------------ --------------- --------------------- -----------
Ratios to Average Net Assets:
------------------------------------------------------------------- --------------- --------------------- -----------
Expenses .77%+ 1.64% .71%+
------------------------------------------------------------ --------------- --------------------- -----------
Net investment income 4.10%+ 7.68% 2.68%+
------------------------------------------------------------------- --------------- --------------------- -----------
Portfolio turnover rate 456.07% 995.50% 141.97%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Not annualized.
See Notes to Financial Statements.
16
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------------
LIMITED DURATION U.S. GOVERNMENT SECURITIES TRUST
For the Period
1/3/94
Six Months (Commencement
Ended of Operations) to
Per Share Operating Performance: 4/30/95 10/31/94
- ---------------------------------------------------------------------------------------------------- ------------ -----------------
<S> <C> <C>
Net asset value, beginning of period $ 4.64 $ 5.00
--------------------------------------------------------------------------------------- ------------ -----------------
Income from investment operations
-------------------------------------------------------------------------------- ------------ -----------------
Net investment income .136+ .210+
-------------------------------------------------------------------------------- ------------ -----------------
Net realized and unrealized gain (loss) on investments .048 (.3613)
-------------------------------------------------------------------------------- ------------ -----------------
Total from investment operations .184 (.1513)
--------------------------------------------------------------------------------------- ------------ -----------------
Distributions
-------------------------------------------------------------------------------- ------------ -----------------
Dividends from net investment income (.124) (.2087)
- ---------------------------------------------------------------------------------------------------- ------------ -----------------
Net asset value, end of period $ 4.70 $ 4.64
- ---------------------------------------------------------------------------------------------------- ------------ -----------------
Total Return 4.02%+ (3.04)%+
- ---------------------------------------------------------------------------------------------------- ------------ -----------------
Ratios/Supplemental Data:
- ---------------------------------------------------------------------------------------------------- ------------ -----------------
Net assets, end of period (000) $12,951 $14,666
-------------------------------------------------------------------------------- ------------ -----------------
Ratios to Average Net Assets:
--------------------------------------------------------------------------------------- ------------ -----------------
Expenses, including waiver .85%+ 1.31%+
-------------------------------------------------------------------------------- ------------ -----------------
Expenses, excluding waiver .85%+ 1.52%+
-------------------------------------------------------------------------------- ------------ -----------------
Net investment income 2.93%+ 4.33%+
-------------------------------------------------------------------------------- ------------ -----------------
Portfolio turnover rate 258.30% 630.52%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Not annualized.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE INCOME TRUST
CALIFORNIA TAX-FREE INCOME TRUST
For the Period 10/1/93
Six Months Year Ended (Commencement of Operations)
Ended 4/30/95 10/31/94 to 10/31/93
------------------------- ------------------------- -------------------------
National California National California National California
Per Share Operating Performance: Trust Trust Trust Trust Trust Trust
- ------------------------------------------------- ---------- -------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.30 $ 4.23 $ 4.99 $ 4.97 $ 5.00 $ 5.00
------------------------------------ ---------- -------------- ------------ -------------- ------------ --------------
Income from investment operations
----------------------------- ---------- -------------- ------------ -------------- ------------ --------------
Net investment income .130+ .129+ .253 .273 .017+ .018+
----------------------------- ---------- -------------- ------------ -------------- ------------ --------------
Net realized and unrealized
gain (loss) on investments .264 .177 (.6903) (.7603) (.0061) (.0271)
----------------------------- ---------- -------------- ------------ -------------- ------------ --------------
Total from investment
operations .394 .306 (.4373) (.4873) .0109 (.0091)
------------------------------------ ---------- -------------- ------------ -------------- ------------ --------------
Distributions
----------------------------- ---------- -------------- ------------ -------------- ------------ --------------
Dividends from net
investment income (.124) (.116) (.2527) (.2527) (.0209) (.0209)
- ------------------------------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Net asset value, end of period $ 4.57 $ 4.42 $ 4.30 $ 4.23 $ 4.99 $ 4.97
- ------------------------------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Total Return 9.30%+ 7.33%+ (9.02)% (10.07%) .35%+ .08%+
- ------------------------------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Ratios/Supplemental Data:
- ------------------------------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Net assets, end of Period $41,542 $20,319 $39,200 $19,553 $8,460 $3,721
----------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Ratios to Average Net Assets:
------------------------------------ ---------- -------------- ------------ -------------- ------------ -------------
Expenses, including waiver .45%+ .45%+ .91% .99% .05%+ .04%+
----------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Expenses, excluding waiver .80%+ .83%+ 1.65% 1.79% .35%+ .60%+
----------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Net investment income 2.94%+ 2.88%+ 5.28% 5.07% .14%+ .16%+
----------------------------- ---------- -------------- ------------ -------------- ------------ -------------
Portfolio turnover rate 135.49% 72.18% 381.17% 159.44% .00% .00%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Not annualized.
See Notes to Financial Statements.
17
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA TAX-FREE INCOME TRUST
NEW YORK TAX-FREE INCOME TRUST
For the Period 10/1/93
Six Months Year Ended (Commencement of Operations)
Ended 4/30/95 10/31/94 to 10/31/93
------------------------ ------------------------ ------------------------
Florida New York Florida New York Florida New York
Per Share Operating Performance: Trust Trust Trust Trust Trust Trust
- ------------------------------------------------------------------- ------------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.28 $ 4.30 $ 4.99 $ 5.00 $ 5.00 $ 5.00
------------------------------------------------------ ------------ ----------- ------------ ----------- ------------
Income from investment operations
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Net investment income .127+ .123+ .246 .246 .017+ .018+
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Net realized and unrealized
gain (loss) on investments .158 .223 (.7045) (.6933) (.0061) .0029
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Total from investment
operations .285 .346 (.4585) (.4473) .0109 .0209
------------------------------------------------------ ------------ ----------- ------------ ----------- ------------
Distributions
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Dividends from net
investment income (.115) (.116) (.2515) (.2527) (.0209) (.0209)
- ------------------------------------------------------------------- ------------ ----------- ------------ ----------- ------------
Net asset value, end of period $ 4.45 $ 4.53 $ 4.28 $ 4.30 $ 4.99 $ 5.00
- ------------------------------------------------------------------- ------------ ----------- ------------ ----------- ------------
Total Return 6.75%+ 8.15%+ (9.44)% (9.19)% .22%+ .55%+
- ------------------------------------------------------------------- ------------ ----------- ------------ ----------- ------------
Ratios/Supplemental Data:
- ------------------------------------------------------------------- ------------ ----------- ------------ ----------- ------------
Net assets, end of period (000) $10,141 $ 8,381 $11,346 $8,369 $ 2,427 $2,488
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Ratios to Average Net Assets:
------------------------------------------------------ ------------ ----------- ------------ ----------- ------------
Expenses, including waiver .42%+ .43%+ .89% .84% .04%+ .05%+
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Expenses, excluding waiver .86%+ .88%+ 1.88% 1.79% .82%+ .81%+
----------------------------------------------- ------------ ----------- ------------ ----------- ------------
Net investment income 3.00%+ 2.83%+ 5.07% 5.16% .13%+ .18%+
------------------------------------------------------ ------------ ----------- ------------ ----------- ------------
Portfolio turnover rate 80.40% 68.53% 224.59% 200.13% .00% .00%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Not annualized.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
GLOBAL INCOME TRUST
BOND-DEBENTURE TRUST For the Period For the Period 1/3/94
GROWTH & INCOME TRUST For the Six Months 12/27/94 (Commencement of Operations)
BALANCED TRUST Ended 4/30/95 (Commencement of to 10/31/94
------------------------------ Operations) ----------------------------------
Global Bond- Growth & to 4/30/95 Global Bond- Growth &
Income Debenture Income --------------- Income Debenture Income
Per Share Operating Performance: Trust Trust Trust Balanced Trust Trust Trust Trust
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.60 $ 4.65 $ 5.07 $10.00 $ 5.00 $ 5.00 $ 5.00
Income from investment
operations
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Net investment income .160+ .203+ .066+ .142+ .276+ .294+ .089+
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Net realized and
unrealized gain (loss)
on investments and
foreign currency
holdings .195 .067 .424 .645 .3763) (.364) .041
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Total from investment
operations .355 .27 .49 .787 (.1003) (.070) .013
---------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Distributions
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Dividends from net
investment income (.165) (.21) (.06) (.077) (.2997) (.28) (.06)
- ----------------------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Net asset value, end of period $ 4.79 $ 4.71 $ 5.50 $10.71 $ 4.60 $ 4.65 $ 5.07
- ----------------------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Total Return 7.92%+ 6.04%+ 9.78%+ 7.89%+ (1.90)%+ (1.38)%+ 2.62%+
- ----------------------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Ratios/Supplemental Data:
- ----------------------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Net assets, end of
period (000) $ 6,943 $81,697 $ 18,286 $1,455 $6,710 $58,743 $9,160
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Ratios to Average Net
Assets:
---------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Expenses, including
waiver .45%+ .84%+ .53%+ .06%+ 1.09%+ 1.23%+ .61%+
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Expenses, excluding
waiver 1.06%+ .84%+ 1.09%+ .80%+ 1.69%+ 1.43%+ 1.94%+
--------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Net investment income 3.49%+ 4.38%+ 1.18%+ 1.37%+ 5.58%+ 6.70%+ 2.03%+
---------------------------- ----------- ------------ ---------- ------------------ ------------ ---------- ----------
Portfolio turnover rate 311.51% 37.54% 13.86% 145.62% 1,348.68% 52.34% 31.95%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+Not annualized.
See Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies The Company was organized as a Delaware
business trust on February 26, 1993, and is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company. On
June 1, 1993, Lord Abbett U.S. Government Securities Trust commenced operations
when the Company received an initial capital contribution of $100,000 and issued
20,000 shares of the Government Trust to the partners of Lord, Abbett & Co. On
October 1, 1993, Lord Abbett National Tax-Free Income Trust, Lord Abbett
California Tax-Free Income Trust, Lord Abbett Florida Tax-Free Income Trust and
Lord Abbett New York Tax-Free Income Trust and, on January 3, 1994, Lord Abbett
Limited Duration U.S. Government Securities Trust, Lord Abbett Global Income
Trust, Lord Abbett Bond-Debenture Trust and Lord Abbett Growth & Income Trust
commenced operations, respectively, when the Company received an initial capital
contribution of $1,000 for each of the above-mentioned series and issued 200
shares of each series to the partners of Lord, Abbett & Co. On December 22, 1994
Lord Abbett Balanced Trust received an initial capital contribution of $1,000
and issued 100 shares of the series to the partners of Lord, Abbett & Co.
The following is a summary of significant accounting policies consistently
followed by the Company. The policies are in conformity with generally accepted
accounting principles. (a) Market value is determined as follows: Securities
listed or admitted to trading privileges on any securities exchange are valued
at the last sales price on the exchange on which such securities are traded, as
of the close of business on the day the securities are being valued or, lacking
any sales, at the latest price on the basis of current quotations from dealers
(as in the case of bonds), from valuations furnished by an independent pricing
service or, in their absence, fair value as determined under procedures approved
by the Board of Trustees. (b) Transactions denominated in foreign currencies are
recorded in the Fund's records at the rate prevailing when earned or incurred.
Asset and liability accounts that are denominated in foreign currencies are
adjusted to reflect current exchange rates. (c) It is the policy of the Company
to meet the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income in taxable
distributions. Therefore, no federal income tax provision is required. (d)
Security transactions are accounted for on the date that the securities are
purchased or sold (trade date). Dividend income and distributions to
shareholders are recorded on the ex-dividend date and interest is recorded on
the accrual basis. Discounts on strips are accrued to maturity using the
constant yield method. The Funds have elected not to amortize premiums on
taxable bonds, which is consistent with the treatment for federal income tax
purposes. (e) The organization expenses of each series of the Company are
amortized evenly over a period of five years from their respective commencements
of operations. (f) With respect to the Bond-Debenture Trust, Growth & Income
Trust and Balanced Trust, a portion of the proceeds from sales and costs of
repurchases of shares, equivalent to the amount of distributable net investment
income on the date of the transaction, is credited or charged to undistributed
income. Undistributed net investment income per share thus is unaffected by
sales or repurchases of shares. (g) The Global Income Trust enters into forward
currency contracts in order to hedge its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. A forward contract is a
commitment to purchase or sell a foreign currency at a future date (usually the
security transaction settlement date) at a negotiated forward rate. The
contracts are valued daily at current exchange rates and any unrealized gain or
loss is included in net unrealized appreciation or depreciation of investments
and foreign currency holdings. The gain or loss, if any, arising from the
difference between the settlement value of the forward contract and the closing
of such contract is included in net realized gain or loss from security and
foreign currency transactions. Risks may arise as a result of the potential
inability of the counterparties to meet the terms of their contracts.
2. Repurchase Agreements The Trust may enter into repurchase agreements with
certain banks and broker/dealers whereby the Trust, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100% of the resale
price. 3. Investment Grades Investment-grade corporate bonds consist of
securities rated within one of the four highest ratings determined either by
Moody's Investors Service, Inc. or Standard & Poor's Corporation. Lower rated
straight debt consists of securities rated lower than the four highest ratings
or that have not been rated. 4. Distributions Dividends from net investment
income are declared daily and paid monthly, except for the Bond-Debenture Trust
which is declared and paid monthly and Growth & Income Trust which is declared
and paid quarterly. Taxable net realized gains from security transactions, if
any, will be distributed to shareholders in December 1995. At April 30, 1995,
accumulated net realized (loss) gain for financial statement purposes aggregated
$(47,361,236) for the U.S. Government Securities Trust, $(741,348) for the
Limited Duration U.S. Government Securities Trust, $(2,735,412) for the National
Tax-Free Income Trust, $(2,357,631) for the California Tax-Free Income Trust,
$(1,374,056) for the Florida Tax-Free Income Trust, $(812,594) for the New York
Tax-Free Income Trust, $(180,004) for the Global Income Trust, $878,996 for the
Bond-Debenture Trust, $43,171 for the Growth & Income Trust and $18,741 for the
Balanced Trust. Income and capital gains distributions are determined in
accordance with income tax regulations which may differ from methods used to
determine the corresponding income and capital gains amounts in accordance with
generally accepted accounting principles. 5. Management Fee and Other
Transactions with Affiliates Lord, Abbett & Co. received a management fee of
$849,949 from the U.S. Government Securities Trust, $34,840 from the Limited
Duration U.S. Government Securities Trust and $167,626 from the Bond-Debenture
Trust for which it provided the Company with investment management services and
executive and other personnel, paid the remuneration of officers, provided
office space and paid for ordinary and necessary office and clerical expenses
relating to research, statistical work and the supervision of the investment
portfolios.
19
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
Lord Abbett has entered into a sub-advisory agreement with Dunedin Fund Managers
Limited ("Dunedin"); Dunedin furnishes investment advisory services in
connection with the management of the Global Income Trust. Lord Abbett pays for
the cost of Dunedin's services. From November 1, 1994 to April 30, 1995, Lord,
Abbett & Co. waived $99,579 in National Tax-Free Income Trust management fees
and assumed $36,947 of other expenses. With respect to the California Tax-Free
Income Trust, Lord, Abbett & Co. waived $48,675 in management fees and assumed
$25,780 of other expenses. With respect to the Florida Tax-Free Income Trust,
Lord, Abbett & Co. waived $26,355 in management fees and assumed $19,506 of
other expenses. With respect to the New York Tax-Free Income Trust, Lord, Abbett
& Co. waived $20,344 in management fees and assumed $16,680 of other expenses.
With respect to the Global Income Trust, Lord, Abbett & Co. waived $17,070 in
management fees and assumed $24,787 of other expenses. With respect to the
Growth & Income Trust, Lord, Abbett & Co. waived $47,954 in management fees and
assumed $22,875 of other expenses. From December 27, 1994 to April 30, 1995
Lord, Abbett & Co. waived $3,282 of the Balanced Trust management fees and
assumed $6,152 of other expenses. The management fee is based on average daily
net assets for each month at the annual rate of .50 of 1% for each of the above-
mentioned Trusts, except for the Growth & Income Trust and the Balanced Trust,
which have a management fee of .75 of 1% of average daily net assets for each
month, respectively. Lord, Abbett & Co. may waive its management fees and pay or
reimburse the Trust for certain of its other expenses. Any such expenses paid
are subject to repayment by each Series, pursuant to a formula based on the
asset size and expense ratio of each Series. Each Series shall not be obligated
to repay Lord, Abbett & Co. after five full fiscal years after the commencement
of the repayment formula or the termination of the Management Agreement,
whichever is earlier.
Each Series of the Company has adopted a distribution plan (the "Plan") pursuant
to Rule 12b-1 under the Investment Company Act of 1940 which authorizes the
payment of fees to dealers in order to provide additional incentives for them
(a) to maintain Series shareholder accounts and/or to provide Series
shareholders with personal services, including shareholder liaison services,
such as responding to customer inquiries and providing information on their
investments and (b) to sell shares of the Series. Under the Plan, the Series pay
dealers through Lord, Abbett & Co. (1) a service fee and a distribution fee, at
the time shares are sold, not to exceed .25% and .75%, respectively, of the net
asset value of such shares and (2) at each quarter-end after the first
anniversary of the sale of such shares, fees for services and distribution at
annual rates not to exceed .25% and .75%, respectively, of the average annual
net asset value of shares outstanding (payments with respect to shares not
outstanding during the full quarter to be prorated). Lord, Abbett &Co. may
retain from the quarterly distribution fee, for payment of distribution expenses
incurred directly by it, an amount not to exceed .10% of the average annual net
asset value of such shares outstanding.
Certain of the Company's officers and trustees have an interest in Lord,
Abbett & Co.
20
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Share Transactions
Transactions in shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended 4/30/95
-------------------------------------------------------------------------------------
Tax-Free Income Trusts
Limited Duration --------------------------------------------------
U.S. Government U.S. Government National California Florida New York
Securities Trust Securities Trust Trust Trust Trust Trust
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sales of shares 5,516,932 825,359 1,807,180 774,923 292,260 200,932
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Shares issued to shareholders in reinvestment
of net investment income 713,689 27,100 45,122 21,307 6,816 21,687
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Total 6,230,621 852,459 1,922,302 796,230 299,076 222,619
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Shares reacquired (10,587,068) (1,259,400) (1,951,290) (821,173) (671,774) (318,761)
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Decrease in shares (4,356,447) (406,941) (28,988) (24,943) (372,698) (96,142)
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
<CAPTION>
For the Period
1/3/94
(Commencement
Year of Operations) to Year Ended 10/31/94
Ended 10/31/94
10/31/94 ----------------- Tax-Free Income Trusts
---------------- Limited Duration --------------------------------------------------
U.S. Government U.S. Government National California Florida New York
Securities Trust Securities Trust Trust Trust Trust Trust
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sales of shares 40,979,580 4,106,627 9,578,110 4,557,723 2,519,506 1,956,272
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Shares issued to shareholders in reinvestment
of net investment income 1,359,996 30,999 151,394 37,427 8,576 27,678
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Total 42,339,576 4,137,626 9,729,504 4,595,150 2,528,082 1,983,950
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Shares reacquired (17,135,893) (976,326) (2,304,802) (722,147) (363,021) (534,521)
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
Increase in shares 25,203,683 3,161,300 7,424,702 3,873,003 2,165,061 1,449,429
- --------------------------------------------- ---------------- ----------------- ------------- ------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the Period For the Period 1/3/94
12/27/94 (Commencement of Operations) to
Six Months Ended 4/30/95 (Commencement 10/31/94
------------------------------------- of Operations) ---------------------------------------
Global Bond- Growth & to 4/30/95 Global Bond- Growth &
Income Debenture Income ---------------- Income Debenture Income
Trust Trust Trust Balanced Trust Trust Trust Trust
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Sales of shares 320,960 5,606,891 1,652,848 134,937 1,612,842 13,252,808 1,900,839
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
Shares issued to shareholders in
reinvestment of net investment income 12,445 184,647 20,576 872 14,467 135,481 10,345
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
Total 333,405 5,791,538 1,673,424 135,809 1,627,309 13,388,289 1,911,184
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
Shares reacquired (340,350) (1,084,731) (151,409) (47) (170,328) (753,962) (105,921)
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
Increase (decrease) in shares (6,945) 4,706,807 1,522,015 135,762 1,456,981 12,634,327 1,805,263
- ------------------------------------- ---------- ------------- ------------ ---------------- ------------ ------------- ------------
</TABLE>
7. Capital Paid In
At April 30, 1995, capital paid in aggregated $375,144,731 for the U.S.
Government Securities Trust, $13,618,541 for the Limited Duration U.S.
Government Securities Trust, $44,881,864 for the National Tax-Free Income Trust,
$22,448,200 for the California Tax-Free Income Trust, $11,454,410 for the
Florida Tax-Free Income Trust, $9,238,230 for the New York Tax-Free Income
Trust, $7,039,122 for the Global Income Trust, $82,879,209 for the Bond-
Debenture Trust, $16,811,179 for the Growth & Income Trust and $1,362,062 for
the Balanced Trust.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
8. Purchases and Sales of Securities
(a) Purchases and sales of investment securities (other than short-term
investments) were as follows:
<TABLE>
<CAPTION>
Series Purchases Sales
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Securities Trust $1,358,867,883 $1,431,628,703
- -------------------------------------------------------------------------------
Limited Duration
U.S. Government Securities Trust $ 32,596,496 $ 34,975,341
- -------------------------------------------------------------------------------
National Tax-Free Income Trust $ 52,995,834 $ 53,428,462
- -------------------------------------------------------------------------------
California Tax-Free Income Trust $ 13,794,141 $ 13,902,859
- -------------------------------------------------------------------------------
Florida Tax-Free Income Trust $ 8,262,804 $ 9,895,186
- -------------------------------------------------------------------------------
New York Tax-Free Income Trust $ 5,493,897 $ 5,492,260
- -------------------------------------------------------------------------------
Global Income Trust $ 19,799,297 $ 19,865,339
- -------------------------------------------------------------------------------
Bond-Debenture Trust $ 44,359,342 $ 20,768,400
- -------------------------------------------------------------------------------
Growth & Income Trust $ 9,070,349 $ 1,642,292
- -------------------------------------------------------------------------------
Balanced Trust $ 1,985,673 $ 1,508,083
- -------------------------------------------------------------------------------
</TABLE>
Security gains and losses are computed on the identified cost basis.
As of April 30, 1995, unrealized appreciation and depreciation of investments
based on cost for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized
Series Appreciation Depreciation
- ---------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Securities Trust $2,693,932 $ 998,646
- ---------------------------------------------------------------------------
Limited Duration U.S. Government
Securities Trust $ 50,858 $ 15,388
- ---------------------------------------------------------------------------
National Tax-Free Income Trust $ 418,623 $1,034,518
- ---------------------------------------------------------------------------
California Tax-Free Income Trust $ 482,064 $ 231,115
- ---------------------------------------------------------------------------
Florida Tax-Free Income Trust $ 279,268 $ 223,703
- ---------------------------------------------------------------------------
New York Tax-Free Income Trust $ 164,825 $ 203,553
- ---------------------------------------------------------------------------
Global Income Trust $ 206,896 $ 72,450
- ---------------------------------------------------------------------------
Bond-Debenture Trust $1,710,351 $2,133,929
- ---------------------------------------------------------------------------
Growth & Income Trust $1,418,206 $ 99,828
- ---------------------------------------------------------------------------
Balanced Trust $ 69,368 $ 3,763
- ---------------------------------------------------------------------------
</TABLE>
The cost of investments for federal income tax purposes is substantially the
same as that used for financial statement purposes.
(b) At April 30, 1995, the Global Income Trust had outstanding forward
currency contracts to sell and buy foreign currencies as follows:
<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Sell Contracts Receivable Value Depreciation
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Japanese Yen
expiring 8/21/95 $625,000 $720,772 $(95,772)
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Buy Contracts Payable Value Appreciation
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Japanese Yen
expiring 8/21/95 $325,000 $353,736 $ 28,736
</TABLE>
9. Trustees' Remuneration
The Trustees of the Company associated with Lord, Abbett & Co. and all officers
of the Company receive no compensation from the Company for acting as such.
Outside Trustees' fees, including attendance fees for board and committee
meetings, and outside Trustees' retirement costs, are allocated among all funds
in the Lord Abbett group based on net assets of each fund. The direct
remuneration accrued during the period for outside Trustees of the Company as a
group was $3,145 (exclusive of expenses), which has been deemed invested in
shares of the Company under a deferred compensation plan contemplating future
payment of the value of those shares. As of April 30, 1995, the aggregate amount
in Trustees' accounts maintained under the plan was $7,205. Retirement costs
accrued during the period amounted to $1,830.
- --------------------------------------------------------------------------------
Copyright (C) 1995 by Lord Abbett Securities Trust, 767 Fifth Avenue,
New York, NY 10153-0203
This publication, when not used for the general information of shareholders of
Lord Abbett Securities Trust, is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning the
Trust's investment objectives and policies and other matters.
All rights reserved. Printed in the U.S.A.
- --------------------------------------------------------------------------------
Lord Abbett Counsel Group
The General Motors Building
767 Fifth Avenue
New York, NY 10153-0203
Lord, Abbett & Co. Investment Management
LST-3-495
