<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
ALABAMA (1.1%)
$ 1,000,000 Alabama Mental Health Finance Authority
(Series 1989) MBIA Insured............
Revenue Bond Aaa/AAA 05/01/01 7.375% $ 1,092,770
2,010,000 Childersburg Industrial Development
Board, PCR, (Kimberly Clark Corp.
Project, Escrowed to Maturity)........
Revenue Bond Aa2/AA 11/15/99 7.400 2,164,790
1,000,000 Daphne Special Care Facilities Financing
Authority (Presbyterian Retirement,
Series A, Prerefunded)................
Revenue Bond NR/NR 08/15/01 (A) 7.300 1,112,850
-------------
Total Alabama 4,370,410
-------------
ALASKA (1.9%)
2,000,000 Anchorage (Refunding, Series 1991) MBIA
Insured...............................
General Obligation Aaa/AAA 07/01/02 6.600 2,118,440
1,075,000 Anchorage (Refunding, Series 1989) AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/99 (A) 7.100 1,148,337
1,000,000 Anchorage (Series 1990A) AMBAC
Insured...............................
General Obligation Aaa/AAA 02/01/00 6.850 1,064,580
3,000,000 North Slope Borough (Series 1992A) MBIA
Insured...............................
General Obligation Aaa/AAA 06/30/00 5.550 3,037,020
-------------
Total Alaska 7,368,377
-------------
ARIZONA (0.3%)
1,000,000 Maricopa County, School District #11
(Peoria Unified School Improvement,
Series 1990H, Prerefunded) MBIA
Insured...............................
General Obligation Aaa/AAA 07/01/01 (A) 7.000 1,097,770
-------------
CALIFORNIA (4.5%)
2,520,000 California Department of Water Resources
Revenue, Water Systems Service,
Refunding Series J-1 AMBAC Insured....
Revenue Bond Aa/AA 12/01/12 7.000 2,807,381
8,740,000 California Public Works Board Lease
Revenue, (State Prisons, Refunding)
AMBAC Insured.........................
Revenue Bond Aaa/AAA 12/01/05 5.250 8,591,245
1,850,000 Kaweah Delta Hospital District, Tubre
County, Series G......................
Revenue Bond NR/NR 06/01/14 6.400 1,915,046
4,000,000 Los Angeles Department of Water & Power
(California Electric Plant, Crossover
Refunded).............................
Revenue Bond Aa/AA 05/15/00 (A) 7.125 4,379,760
-------------
Total California 17,693,432
-------------
</TABLE>
See Accompanying Notes.
15
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
CONNECTICUT (2.5%)
$ 2,000,000 Connecticut Housing Finance Authority
(Housing Mortgage Finance Program,
Series 1987B).........................
Revenue Bond A1/AA 09/01/07 4.750% $ 2,135,660
2,815,000 Connecticut (Special Tax Obligation,
Transportation Infrastructure, Series
1991A)................................
Revenue Bond A1/AA- 06/01/04 6.600 3,043,212
5,000,000 Connecticut (Special Tax Obligation,
Transportation Infrastructure, Series
1987A)................................
Revenue Bond Aa/AA 11/15/97 8.100 4,834,200
-------------
Total Connecticut 10,013,072
-------------
DENVER (0.4%)
1,515,000 Denver Colorado City & County Airport
(Stapleton International Airport
Management, Escrowed to Maturity).....
Revenue Bond Aaa/AAA 12/01/95 10.000 1,580,175
-------------
DISTRICT OF COLUMBIA (3.5%)
3,000,000 District of Columbia (Refunding, Series
A) MBIA Insured.......................
General Obligation Aaa/AAA 06/01/07 6.000 2,989,350
7,500,000 District of Columbia (Refunding, Series
C) FGIC Insured.......................
General Obligation Aaa/AAA 12/01/03 5.250 7,174,425
2,600,000 District of Columbia (Series B) MBIA
Insured...............................
General Obligation Aaa/AAA 06/01/02 6.000 2,620,982
1,000,000 Washington, D.C. Transportation
Authority (Refunding, Series 1993)
FGIC Insured..........................
Revenue Bond Aaa/AAA 07/01/07 6.000 1,037,010
-------------
Total District of Columbia 13,821,767
-------------
FLORIDA (1.1%)
1,535,000 Florida Board of Education (Capital
Outlay, Series 1986C, Escrowed to
Maturity).............................
General Obligation Aaa/AA 06/01/96 (A) 7.000 1,679,152
465,000 Florida Board of Education (Capital
Outlay, Full Faith and Credit, Series
1986C)................................
General Obligation Aa/AA 06/01/96 (A) 7.000 483,619
2,000,000 Volusia County, School District
(Refunding, Series 1991) FGIC
Insured...............................
General Obligation Aaa/AAA 08/01/02 6.100 2,118,420
-------------
Total Florida 4,281,191
-------------
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
GEORGIA (4.0%)
$ 2,630,000 Fulton County Georgia School District
(Refunding)...........................
General Obligation Aa/AA 05/01/14 6.375% $ 2,778,227
1,000,000 Georgia Municipal Electric Power
Authority (Series D)..................
General Obligation A/A+ 01/01/06 6.000 1,011,020
1,155,000 Georgia Residential Finance Authority
(Single Family Insured Mortgages,
1986A) FHA Insured....................
Revenue Bond Aa/AA+ 12/01/98 6.600 1,212,438
3,000,000 Georgia (Series B)......................
General Obligation Aaa/AA+ 03/01/10 6.300 3,183,030
2,270,000 Georgia (Series D)......................
General Obligation Aaa/AA+ 08/01/06 6.800 2,554,749
2,000,000 Georgia (Series E)......................
General Obligation Aaa/AA+ 12/01/05 6.750 2,233,520
2,500,000 Gwinnett County Georgia School
District..............................
General Obligation Aa1/AA 02/01/08 6.400 2,694,025
-------------
Total Georgia 15,667,009
-------------
HAWAII (1.0%)
2,000,000 Hawaii..................................
General Obligation Aa/AA 10/01/12 6.000 2,025,940
2,000,000 Honolulu (City & County Refunding and
Improvement, Series B)................
General Obligation Aa/AA 10/01/11 5.500 1,924,120
-------------
Total Hawaii 3,950,060
-------------
ILLINOIS (7.6%)
1,500,000 Chicago O'Hare International Airport
(Refunding, Series C-1) MBIA
Insured...............................
Revenue Bond Aaa/AAA 01/01/09 5.750 1,489,950
3,775,000 Cook County (Illinois Community College,
District 508, Series C) MBIA
Insured...............................
General Obligation Aaa/AAA 12/01/95 6.900 3,837,174
3,280,000 Cook County (Refunding, Series C) FGIC
Insured...............................
General Obligation Aaa/AAA 11/15/04 5.800 3,343,074
2,500,000 Cook County (Series 1991) AMBAC
Insured...............................
General Obligation Aaa/AAA 11/01/98 6.100 2,585,975
1,375,000 Du Page County Illinois (Refunding,
Series C-1, Prerefunded)..............
Revenue Bond Aaa/AAA 01/01/02 (A) 6.550 1,498,283
1,640,000 Illinois (Building Sales Tax Revenue,
Series 1991O, Prerefunded)............
Revenue Bond A1/AAA 06/01/97 (A) 7.500 1,764,460
2,000,000 Illinois (Refunding, Series 1987).......
General Obligation A1/AA- 04/01/97 (A) 6.500 2,075,380
3,350,000 Illinois Sales Tax Revenue (Series R)...
Revenue Bond A1/AAA 06/15/01 4.600 3,155,332
2,000,000 Illinois (Series 1986)..................
General Obligation A1/AA- 12/01/96 (A) 6.250 2,063,340
950,000 Kendall Kane & Will Counties Community
Unit School District #308, FGIC
Insured...............................
General Obligation Aaa/AAA 03/01/99 6.200 984,314
2,500,000 Metropolitan Pier & Exposition Authority
FGIC Insured..........................
General Obligation A/A+ 06/15/06 8.500 3,072,150
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,810,000 Regional Transportation Authority
Illinois FGIC Insured.................
General Obligation Aaa/AAA 06/01/07 7.750% $ 3,333,363
1,000,000 University of Illinois (Auxiliary
Facilities, Series 1992N, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 10/01/01 6.000 1,043,540
-------------
Total Illinois 30,246,335
-------------
INDIANA (1.9%)
4,175,000 Indiana Bond Bank Common School Fund,
AMBAC Insured.........................
Revenue Bond Aaa/AAA 02/01/97 4.100 4,084,277
3,915,000 Indiana Transportation Finance Authority
(Highway Revenue Refunding, Series A)
AMBAC Insured.........................
Revenue Bond Aaa/AAA 06/01/09 5.250 3,693,137
-------------
Total Indiana 7,777,414
-------------
KENTUCKY (1.2%)
4,400,000 Kentucky Turnpike Authority, (Series A,
Escrowed to Maturity).................
Revenue Bond Aaa/AAA 07/01/02 7.100 4,630,252
-------------
LOUISIANA (0.7%)
2,900,000 Louisiana (Series A)....................
General Obligation Baa1/A 02/01/96 5.500 2,915,892
-------------
MARYLAND (2.4%)
1,000,000 Maryland Department of Transportation,
(Series 1990, Prerefunded)............
Revenue Bond Aaa/AAA 08/15/99 (A) 6.700 1,083,280
5,000,000 Maryland (1st Series)...................
General Obligation Aaa/AAA 07/01/00 6.500 5,328,050
3,000,000 Maryland (3rd Series)...................
General Obligation Aaa/AAA 07/15/01 (A) 6.400 3,203,940
-------------
Total Maryland 9,615,270
-------------
MASSACHUSETTS (5.0%)
4,950,000 Massachusetts Bay Transportation
Authority (General Transportation
System, Refunding, Series A)..........
Revenue Bond A1/A+ 03/01/08 7.000 5,520,884
6,500,000 Massachusetts (Refunding, Series B).....
General Obligation A1/A+ 11/01/01 5.000 6,401,720
5,000,000 Massachusetts (Refunding, Series B).....
General Obligation A1/A+ 11/01/06 5.400 4,918,900
1,495,000 Massachusetts State College Building
Authority.............................
Revenue Bond A1/A+ 05/01/11 7.500 1,736,786
1,060,000 Wareham School Project Loan Bonds, AMBAC
Insured...............................
General Obligation Aaa/AAA 01/15/03 6.800 1,156,979
-------------
Total Massachusetts 19,735,269
-------------
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
MINNESOTA (2.0%)
$ 1,380,000 Metropolitan Council Minnesota
(Minneapolis-St. Paul Metropolitan
Area, Refunding, Series B, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 02/01/99 4.500% $ 1,348,426
5,685,000 Western Minnesota Municipal Power Agency
(Series 1983A, Prerefunded)...........
Revenue Bond Aaa/AAA 01/01/99 (A) 10.125 6,556,511
-------------
Total Minnesota 7,904,937
-------------
MISSOURI (1.8%)
2,500,000 Missouri Higher Education Loan Authority
(Series 1992A)........................
Revenue Bond Aa/NR 02/15/96 4.875 2,495,375
4,000,000 St. Louis County Regional Convention
(Series B, Prerefunded)...............
Revenue Bond Aaa/AAA 08/15/03 (A) 7.000 4,458,840
-------------
Total Missouri 6,954,215
-------------
NEBRASKA (1.0%)
4,000,000 Nebraska Public Power District (Nuclear
Facilities, Refunding)................
Revenue Bond A1/A+ 07/01/00 5.200 3,973,960
-------------
NEVADA (4.7%)
500,000 Carson City School District, (Series
1990, Prerefunded) FGIC Insured.......
General Obligation Aaa/AAA 04/01/00 (A) 6.750 544,520
3,000,000 Clark County Nevada Passenger Facilities
(Las Vegas Mc.Carran International
Airport, Series A) AMBAC Insured......
General Obligation Aaa/AAA 07/01/08 6.250 3,138,120
8,000,000 Clark County Nevada School District
(Series A)............................
General Obligation Aaa/AAA 06/01/11 7.000 8,955,760
1,280,000 Las Vegas (Clark County Library
District, Refunding, Series B) FGIC
Insured...............................
General Obligation Aaa/AAA 08/01/01 (A) 6.700 1,379,046
1,685,000 Las Vegas (Clark County Library
District, Series 1991A, Prerefunded)
FGIC Insured..........................
General Obligation Aaa/AAA 06/01/01 (A) 6.600 1,824,501
1,200,000 Las Vegas (Clark County Library
District, Series 1991A, Prerefunded)
FGIC Insured..........................
General Obligation Aaa/AAA 06/01/01 (A) 6.700 1,305,684
1,330,000 Nevada Prison Facilities, (Series 1990A,
Prerefunded)..........................
General Obligation NR/AA 08/01/00 (A) 7.000 1,467,934
-------------
Total Nevada 18,615,565
-------------
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
NEW HAMPSHIRE (0.5%)
$ 1,720,000 New Hampshire (Series 1991A)............
General Obligation Aa/AA 06/15/01 (A) 6.600% $ 1,864,893
-------------
NEW JERSEY (3.8%)
6,200,000 New Jersey Economic Development
Authority (Market Transition
Facilities, Series A) MBIA Insured....
Revenue Bond Aaa/AAA 07/01/00 5.125 6,180,966
7,000,000 New Jersey Economic Development
Authority (Market Transition
Facilities, Series A) MBIA Insured....
Revenue Bond Aaa/AAA 07/01/02 5.400 7,054,250
1,500,000 New Jersey Sports & Exposition Authority
(Sports Complex Refunding, Escrowed to
Maturity).............................
General Obligation Aa1/NR 01/01/00 8.100 1,689,030
-------------
Total New Jersey 14,924,246
-------------
NEW YORK (7.8%)
2,100,000 Monroe County Public Improvement AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/09 6.000 2,181,522
1,415,000 Monroe County Public Improvement, AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/10 6.000 1,463,563
1,000,000 Municipal Assistance Corp. for the City
of New York, Custodial Receipt
Certificates, Series 1987-61, MBIA
Insured...............................
Revenue Bond Aaa/AAA 07/01/97 (A) 6.875 1,052,290
2,645,000 New York City (Refunding, Series A).....
General Obligation Baa1/A- 08/01/02 5.750 2,571,813
3,500,000 New York City (Refunding, Series B).....
General Obligation Mig1/Sp1 06/30/95 4.750 3,504,865
1,465,000 New York City (Refunding, Series B).....
General Obligation Baa1/A- 06/01/01 8.000 1,604,615
2,560,000 New York City (Series E)................
General Obligation Baa1/A- 08/01/01 5.125 2,415,821
4,675,000 New York City (Series H1)...............
General Obligation Baa1/A- 08/01/01 5.500 4,513,011
1,000,000 New York Dormitory Authority, (Iona
College Series 1988) MBIA Insured.....
Revenue Bond Aaa/AAA 07/01/98 (A) 7.625 1,090,570
200,000 New York State Energy Pollution
Control...............................
Revenue Bond NR/A-1+ 03/01/95 (A) 4.100 200,000
4,050,000 Triborough Bridge & Tunnel Authority
(Series T, Prerefunded)...............
Revenue Bond Aaa/A+ 01/01/01 (A) 7.000 4,494,650
5,500,000 Triborough Bridge & Tunnel Authority
(Refunding, Series X).................
Revenue Bond Aa/A+ 01/01/12 6.625 5,958,260
-------------
Total New York 31,050,980
-------------
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
NORTH CAROLINA (0.4%)
$ 1,500,000 Durham Public Improvement...............
General Obligation Aa1/AAA 02/01/06 5.000% $ 1,461,750
-------------
OHIO (3.1%)
3,000,000 Cleveland (Ohio Waterworks Revenue,
Series E, Prerefunded)................
Revenue Bond Aaa/NR 01/01/97 (A) 7.750 3,213,840
3,675,000 Ohio Water Development Authority (Series
Safe Water II, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 12/01/10 9.375 4,515,655
4,000,000 Summit County (Justice Facilities,
Prerefunded) AMBAC Insured............
General Obligation Aaa/AAA 12/01/97 (A) 8.000 4,396,720
-------------
Total Ohio 12,126,215
-------------
OREGON (0.0%)
100,000 Umatilla County Oregon Hospital
Facilities Authority LOC Toronto
Dominion Bank.........................
Revenue Bond VMig1/A-1+ 03/01/95 (A) 3.750 100,000
-------------
PENNSYLVANIA (1.2%)
1,175,000 Bethel Park School District, (Series
1991B, Prerefunded) AMBAC Insured.....
General Obligation Aaa/AAA 02/01/00 (A) 6.550 1,252,527
970,000 Pennsylvania Higher Education Assistance
Agency, (Student Loan Refunding,
Series 1985A) FGIC Insured............
Revenue Bond Aaa/AAA 12/01/00 6.800 1,032,390
1,000,000 Pennsylvania (Refunding and Projects,
Custodial Receipt Certificates, 1st
Series A) AMBAC Insured...............
General Obligation Aaa/AAA 01/01/01 6.600 1,066,020
1,500,000 Pennsylvania (2nd Series 1991A) MBIA
Insured...............................
General Obligation Aaa/AAA 11/01/01 (A) 6.500 1,609,245
-------------
Total Pennsylvania 4,960,182
-------------
RHODE ISLAND (2.8%)
3,785,000 Rhode Island (Series 1991B).............
General Obligation A1/AA- 05/15/00 6.000 3,890,072
2,000,000 Rhode Island (Series 1990B,
Prerefunded)..........................
General Obligation A1/AA- 10/15/99 (A) 6.700 2,168,040
5,000,000 Rhode Island State Public Buildings
Authority (Public Projects Refunding,
Series A) AMBAC Insured...............
Revenue Bond Aaa/AAA 02/01/00 4.700 4,837,600
-------------
Total Rhode Island 10,895,712
-------------
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
TENNESSEE (0.5%)
$ 2,000,000 Chattanooga Industrial Development
Board, (IDR, Gerber/Buster Brown
Manufacturing, Inc.)..................
Revenue Bond A2/NR 11/01/95 (A) 4.000% $ 1,960,280
-------------
TEXAS (13.0%)
1,500,000 Addison (Refunding Series 1991) FGIC
Insured...............................
General Obligation Aaa/AAA 09/01/00 6.250 1,543,620
1,000,000 Arlington (Series 1989) AMBAC Insured...
General Obligation Aaa/AAA 08/01/00 6.850 1,070,110
1,050,000 Austin Independent School District,
(Permanent School Fund Guarantee,
Refunding, Series 1991) PSFG
Insured...............................
General Obligation Aaa/AAA 08/01/99 6.200 1,099,833
2,000,000 Austin Water Sewer & Electric
(Refunding)...........................
General Obligation A/A- 11/15/97 13.500 2,435,140
1,500,000 Austin Utilities System Revenue (Series
6, Escrowed to Maturity)..............
Revenue Bond Aaa/AAA 10/01/01 6.500 1,611,015
1,835,000 Canyon Independent School District,
(Series 1986) MBIA Insured............
General Obligation Aaa/AAA 02/15/98 6.500 1,911,923
1,100,000 Conroe Independent School District
(Schoolhouse and Refunding) PSFG
Insured...............................
General Obligation Aaa/AAA 02/01/02 6.500 1,180,872
1,265,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1993) PSFG Insured....................
General Obligation Aaa/AAA 02/01/03 6.500 1,365,504
975,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1989, Prerefunded) MBIA Insured.......
General Obligation Aaa/AAA 02/01/99 (A) 7.100 1,043,513
25,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1989) MBIA Insured....................
General Obligation Aaa/AAA 02/01/01 7.100 26,502
1,305,000 Dallas County Tax Flood Control District
#1 (Prerefunded)......................
General Obligation Aaa/NR 04/01/08 (A) 9.250 1,723,905
1,650,000 El Paso Independent School District,
(Permanent School Fund Guarantee,
Series 1991, Prerefunded) PSFG
Insured...............................
General Obligation Aaa/NR 07/01/01 (A) 6.550 1,774,394
3,805,000 Fort Worth Independent School District
(Refunding, Series 1987)..............
General Obligation Aa/AA 02/15/98 6.000 3,910,627
1,700,000 Harris County Road Improvement Authority
(Series 1989, Prerefunded) MBIA
Insured...............................
General Obligation Aaa/AAA 11/01/99 (A) 7.000 1,837,802
</TABLE>
See Accompanying Notes.
22
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 880,000 Katy Independent School District
(Refunding, Series 1986) MBIA
Insured...............................
General Obligation Aaa/AAA 08/01/95 (A) 7.350% $ 889,768
120,000 Katy Independent School District (Series
1986, Prerefunded) MBIA Insured.......
General Obligation Aaa/AAA 08/01/95 (A) 7.350 121,571
2,000,000 Plano Independent School District
(Series 1991B, Prerefunded) FGIC
Insured...............................
General Obligation Aaa/AAA 02/15/01 (A) 6.550 2,140,020
700,000 Texas A&M University (Refunding, Series
1989).................................
Revenue Bond Aa1/AA+ 07/01/98 6.500 733,194
750,000 Texas A&M University (Series 1989,
Prerefunded)..........................
Revenue Bond Aa1/AAA 07/01/97 (A) 6.600 793,950
11,700,000 Texas National Research Laboratory
Commission (Superconductor,
Prerefunded)..........................
General Obligation Aaa/AA 04/01/00 (A) 7.125 12,903,579
1,000,000 Texas Public Finance Authority
(Refunding, Series 1991A,
Prerefunded)..........................
General Obligation NR/AA 10/01/00 (A) 6.500 1,068,800
2,175,000 Texas Public Finance Authority (Series
1990B, Prerefunded)...................
General Obligation NR/AA 10/01/99 (A) 6.800 2,331,861
2,000,000 Texas Public Finance Authority (Series
1988A, Prerefunded)...................
General Obligation NR/AA 10/01/00 (A) 6.300 2,119,360
3,000,000 Texas State Public Finance Authority
Revenue (Refunding, Series A).........
Revenue Bond A/A+ 02/01/96 3.800 2,945,760
2,500,000 University of Texas (Permanent
University Fund, Refunding, Series
1991).................................
Revenue Bond Aa1/AA+ 07/01/01 6.300 2,637,025
-------------
Total Texas 51,219,648
-------------
VIRGINIA (3.7%)
3,000,000 Richmond (Public Improvement and
Refunding, Series A)..................
General Obligation A1/AA 01/15/07 5.400 2,938,050
5,000,000 Virginia Public School Authority
(Refunding, Series 1991C).............
Revenue Bond Aa/AA 01/01/02 6.000 5,215,700
4,445,000 Virginia Public School Authority
(Refunding, Series B).................
Revenue Bond Aa/AA 01/01/00 4.500 4,274,401
2,000,000 Virginia Public School Authority,
(Series A)............................
Revenue bond Aa/AA 08/01/01 (A) 6.500 2,154,320
-------------
Total Virginia 14,582,471
-------------
WASHINGTON (9.0%)
6,355,000 King County Washington (Refunding,
Series B).............................
Revenue Bond Aa1/AA+ 01/01/01 6.700 6,799,659
</TABLE>
See Accompanying Notes.
23
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 1,555,000 North Shore School District #417, (King
& Snohomish Counties, Series 1991)
FGIC Insured..........................
General Obligation Aaa/AAA 12/01/01 (A) 6.600% $ 1,645,330
1,000,000 Pierce County School District #320,
(Sumner Washington, Custodial Receipt
Certificates, Series 1991) MBIA
Insured...............................
General Obligation Aaa/AAA 12/01/02 6.600 1,071,170
5,480,000 Seattle Municipal Light & Power (Light
and Power Revenue Refunding)..........
Revenue Bond Aa/AA 05/01/00 4.600 5,255,320
2,955,000 Seattle Municipal Sewer Revenue (Series
T, Prerefunded).......................
Revenue Bond Aaa/AA- 01/01/00 (A) 6.875 3,223,521
1,960,000 Seattle Water System Revenue
(Refunding)...........................
Revenue Bond Aa/AA 12/01/00 4.700 1,894,595
1,250,000 Snohomish County Washington School
District #2, (Everett, Custodial
Receipt Certificates, Refunding,
Series A) MBIA Insured................
General Obligation Aaa/AAA 12/01/02 6.700 1,332,463
5,265,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
A)....................................
Revenue Bond Aa/AA 07/01/01 6.300 5,433,480
2,000,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
1990A)................................
Revenue Bond Aa/AA 07/01/06 7.250 2,208,500
1,500,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
1990C)................................
Revenue Bond Aa/AA 01/01/01 (A) 7.500 1,666,665
2,000,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
C) FGIC Insured.......................
Revenue Bond Aaa/AAA 07/01/01 7.000 2,154,160
1,750,000 Washington State (Series R-92A).........
General Obligation Aa/AA 09/01/01 (A) 6.300 1,855,000
1,000,000 Washington (Series 1990B)...............
General Obligation Aa/AA 08/01/02 6.750 1,066,080
-------------
Total Washington 35,605,943
-------------
WEST VIRGINIA (0.3%)
1,000,000 Berkeley County, Board of Education
(Series 1988) MBIA Insured............
General Obligation Aaa/AAA 04/01/01 7.300 1,097,450
-------------
WISCONSIN (2.8%)
1,500,000 Racine Unified School District AMBAC
Insured...............................
General Obligation Aaa/AAA 04/01/01 6.500 1,565,895
5,000,000 Wisconsin Transportation (Refunding,
Series A).............................
Revenue Bond A1/AA- 07/01/06 4.600 4,463,800
</TABLE>
See Accompanying Notes.
24
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
$ 5,000,000 Wisconsin State (Series A)..............
General Obligation Aa/AA 05/01/99 5.750% $ 5,126,050
-------------
Total Wisconsin 11,155,745
-------------
WYOMING (1.3%)
3,600,000 Platte County Pollution Control (Basin
Electric Power Cooperative,
Refunding)............................
Revenue Bond A2/A 01/01/06 4.950 3,288,132
2,115,000 Platte County Pollution Control (Basin
Electric Power Cooperative,
Refunding)............................
Revenue Bond A2/A 01/01/07 5.050 1,951,275
-------------
Total Wyoming 5,239,407
-------------
TOTAL INVESTMENTS (98.8%) (COST $382,538,400)
$ 390,457,293
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%)
4,862,266
-------------
NET ASSETS (100.0%) $ 395,319,559
-------------
-------------
</TABLE>
(A) The date shown represents a mandatory/optional put date or call date, or
interest reset date.
1. Based on the cost of investments of $382,538,400 for federal income tax
purposes at February 28, 1995, the aggregate gross unrealized appreciation
and depreciation was $11,310,753, and $3,391,860, respectively, resulting
in net unrealized appreciation of investments of $7,918,893.
2. Abbreviations used in the schedule of investments are as follows: AMBAC -
Ambac Indemnity Corp., FHA - Federal Housing Authority, FGIC - Financial
Guaranty Insurance Company, IDR - Industrial Development Revenue, LOC -
Letter of Credit, MBIA - Municipal Bond Investors Assurance Corp., PCR -
Pollution Control Revenue, PSFG -- Permanent School Fund, TRAN - Tax
Revenue Anticipation Note, VRDN - Variable Rate Demand Note.
3. Crossover Refunded - Bonds for which the issuer of the bond invests the
proceeds from a subsequent bond issue in cash and/or securities which have
been deposited with a third party to cover the payments of principal and
interest at the maturity of the bond.
Escrowed to Maturity - Bonds for which cash and/or securities have been
deposited with a third party to cover the payments of principal and
interest at the maturity of the bond.
Prerefunded - Bonds for which the issuer of the bond invests the proceeds
from a subsequent bond issuance in treasury securities, whose maturity
coincides with the first call date of the first bond.
Refunding - Bonds for which the issuer has issued new bonds and canceled
the old issue.
See Accompanying Notes.
25
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $382,538,400) (Note 1a) $ 390,457,293
Interest Receivable 5,397,408
Cash 86,744
Prepaid Expenses 2,668
-------------
Total Assets 395,944,113
-------------
LIABILITIES
Financial and Fund Accounting Services Fee Payable (Note 2c) 302,018
Advisory Fee Payable (Note 2a) 184,806
Custodian Fees and Expenses Payable 101,618
Fund Services Fee Payable (Note 2d) 3,912
Administration Fee Payable (Note 2b) 2,200
Accrued Expenses 30,000
-------------
Total Liabilities 624,554
-------------
NET ASSETS
Applicable to Investors' Beneficial Interests $ 395,319,559
-------------
-------------
</TABLE>
See Accompanying Notes.
26
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B)
$ 10,883,386
Interest
EXPENSES
Advisory Fee (Note 2a) $ 573,638
Financial and Fund Accounting Services Fee (Note 91,425
2c)
Custodian Fees and Expenses 66,924
Professional Fees 31,046
Fund Services Fee (Note 2d) 20,370
Administration Fee (Note 2b) 12,498
Trustees' Fees and Expenses (Note 2e) 5,731
Miscellaneous 4,377
---------
806,009
Total Expenses
------------
10,077,377
NET INVESTMENT INCOME
(812,152)
NET REALIZED LOSS ON INVESTMENTS
(894,468)
NET CHANGE IN UNREALIZED APPRECIATION OF
INVESTMENTS
------------
$ 8,370,757
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
------------
------------
</TABLE>
See Accompanying Notes.
27
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 28, FISCAL YEAR
1995 ENDED AUGUST
(UNAUDITED) 31, 1994
------------- -------------
<S> <C> <C>
DECREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 10,077,377 $ 21,579,695
Net Realized Gain (Loss) on Investments (812,152) 1,199,109
Net Change in Unrealized Appreciation of
Investments (894,468) (16,878,531)
------------- -------------
Net Increase in Net Assets Resulting from
Operations 8,370,757 5,900,273
------------- -------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 138,042,019 246,505,829
Withdrawals (160,706,074) (328,342,574)
------------- -------------
Net Decrease from Investors' Transactions (22,664,055) (81,836,745)
------------- -------------
Total Decrease in Net Assets (14,293,298) (75,936,472)
NET ASSETS
Beginning of Period 409,612,857 485,549,329
------------- -------------
End of Period $395,319,559 $409,612,857
------------- -------------
------------- -------------
</TABLE>
- - --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED FISCAL
FEBRUARY YEAR ENDED
28, 1995 AUGUST 31,
(UNAUDITED) 1994
---------- ----------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.42%(a) 0.41%
Net Investment Income 5.27%(a) 4.68%
Portfolio Turnover 22% 33%
<FN>
- - ------------------------
(a) Annualized
</TABLE>
See Accompanying Notes.
28
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Tax Exempt Bond Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified, open-end
management investment company which was organized as a trust under the laws of
the State of New York. The Portfolio commenced operations on July 12, 1993 and
received a contribution of certain assets and liabilities, including securities,
with a value of $466,873,082 on that date from The Pierpont Tax Exempt Bond Fund
(the "Fund") in exchange for a beneficial interest in the Portfolio. The
Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)Portfolio securities with a maturity of 60 days or more, including
securities that are listed on an exchange or traded over the counter, are
valued using prices supplied daily by an independent pricing service or
services that (i) are based on the last sale price on a national
securities exchange, or in the absence of recorded sales, at the readily
available bid price on such exchange or at the quoted bid price in the
over-the-counter market, if such exchange or market constitutes the
broadest and most representative market for the security and (ii) in other
cases, take into account various factors affecting market value, including
yields and prices of comparable securities, indication as to value from
dealers and general market conditions. If such prices are not supplied by
the Portfolio's independent pricing services, such securities are priced
in accordance with procedures adopted by the Trustees, All portfolio
securities with a remaining maturity of less than 60 days are valued by
the amortized cost method. Because of the large number of municipal bond
issues outstanding and the varying maturity dates, coupons and risk
factors applicable to each issuer's books, no readily available market
quotations exist for most municipal securities.
b)Securities transactions are recorded on a trade date basis. Interest
income, which includes the amortization of premiums and discounts, if any,
is recorded on an accrual basis. For financial and tax reporting purposes,
realized gains and losses are determined on the basis of specific lot
identification.
c)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxed on its
share of the Portfolio's ordinary income and capital gains. It is intended
that the Portfolio's assets will be managed in such a way that an investor
in the Portfolio will be able to satisfy the requirements of Subchapter M
of the Internal Revenue Code.
29
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.30%
of the Portfolio's average daily net assets. For the six months ended
February 28, 1995, this fee amounted to $573,638.
b)The Portfolio retains Signature Broker-Dealer Services, Inc. ("Signature")
to serve as Administrator and Distributor. Signature provides
administrative services necessary for the operations of the Portfolio,
furnishes office space and facilities required for conducting the business
of the Portfolio and pays the compensation of the Portfolio's officers
affiliated with Signature. The agreement provides for a fee to be paid to
Signature at an annual rate determined by the following schedule: 0.01% of
the first $1 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios subject to the Administrative Services
Agreement, 0.008% of the next $2 billion of such net assets, 0.006% of the
next $2 billion of such net assets, and 0.004% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied to
the daily net assets of the Portfolio. For the six months ended February
28, 1995, Signature's fee for these services amounted to $12,498.
c)The Portfolio has a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan under which Morgan receives a fee,
based on the percentages described below, for overseeing certain aspects
of the administration and operation of the Portfolio. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Portfolio. If total expenses of the Portfolio, excluding
the advisory fee, custody expenses, fund services fee, and brokerage
costs, exceed the expense limit of 0.10% of the Portfolio's average daily
net assets up to $200 million, 0.05% of the next $200 million of average
daily net assets, and 0.03% of average daily net assets thereafter, Morgan
will reimburse the Portfolio for the excess expense amount and receive no
fee. Should such expenses be less than the expense limit, Morgan's fee
would be limited to the difference between such expenses and the fee
calculated under the Services Agreement. For the six months ended February
28, 1995, this fee amounted to $91,425.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio are the sole shareholders of Group. The Portfolio's allocated
portion of Group's costs in performing its services amounted to $20,370
for the six months ended February 28, 1995.
e)An aggregate fee of $55,000 is paid to each Trustee for serving as a
Trustee of The Pierpont Funds, The JPM Institutional Funds, The JPM
Institutional Plus Fund and their corresponding Portfolios. The Trustees'
Fees and Expenses shown in the financial statements represents the
Portfolio's allocated portion of the total fees. On April 1, 1995, the
aggregate annual trustee fee was increased to $65,000. The Trustee who
serves as Chairman and Chief Executive Officer of these Funds and
30
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
Portfolios also serves as Chairman of Group and received compensation and
employee benefits from Group in his role as Group's Chairman. The
allocated portion of such compensation and benefits included in the Fund
Services Fee shown in the financial statements was $2,300.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six months
ended February 28, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------ ------------
<S> <C> <C>
$ 81,657,361 $ 87,008,516
</TABLE>
31
