<PAGE>
Deutsche Asset Management
Mutual Fund
Semi-Annual Report
April 30, 2000
Municipal Bond
Fixed Income
Short-Term Municipal Bond
Short-Term Fixed Income
High Yield Bond
Each formerly a Morgan Grenfell Fund
[LOGO OF DEUTSCHE BANK GROUP]
<PAGE>
Domestic Fixed Income Funds
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Table of Contents
<TABLE>
<S> <C>
Letter to Shareholders........................................ 3
Domestic Fixed Income Funds
Schedule of Investments.................................... 14
Statements of Assets and Liabilities....................... 66
Statements of Operations................................... 67
Statements of Changes in Net Assets........................ 68
Financial Highlights....................................... 70
Notes to Financial Statements.............................. 72
</TABLE>
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The Fund is not insured by the FDIC and is not a deposit,
obligation of or guaranteed by Deutsche Bank. The Fund is
subject to investment risks, including possible loss of
principal amount invested.
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2
<PAGE>
Domestic Fixed Income Funds
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Letter to Shareholders
Dear Fellow Shareholder:
We are pleased to present you with this newly-designed semi-annual report for
the U.S. fixed income funds of the Morgan Grenfell Investment Trust. Please note
that the Board of Trustees approved a change in the name of your Funds. The
Funds' investment objectives, policies and strategies remain the same.
We are also pleased to announce that Morningstar(TM) continued to recognize
several of the Funds for their excellent performance./1/ Most notably, our fixed
income offerings' Institutional Class received excellent Morningstar Overall
Ratings(TM) based on their risk-adjusted performance.
As of April 30, 2000:
. Municipal Bond was rated 5 stars out of 1,692 municipal bond funds.
. Fixed Income was rated 4 stars out of 1,696 taxable bond funds.
. Short-Term Municipal Bond was rated 5 stars out of 1,692 municipal bond funds.
. Short-Term Fixed Income was rated 5 stars out of 1,696 taxable bond funds.
In the pages that follow, you will find a discussion of the Funds' investment
performance by the portfolio management teams. The analyses highlight key
factors influencing recent performance of the Funds and are followed by detailed
financial statements for the six month period ended April 30, 2000.
Our continuing goal is to provide you with high-quality investment management
services across a broad range of specialized mutual funds. As always, the Board
of Trustees of the Morgan Grenfell Investment Trust and the employees of
Deutsche Asset Management, Inc. thank you for investing in our family of mutual
funds. We appreciate your continued support and confidence.
Sincerely,
/S/ David W. Baldt
David W. Baldt
Executive Vice President
Lead Manager of the Funds
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Tax-Exempt Fixed Income Funds
. Municipal Bond
. Short-Term Municipal Bond
MARKET REVIEW
Municipal bonds performed slightly better during this semi-annual period ended
April 30, 2000 than during the prior six months. The strong U.S. economy and
rising oil prices sent short-term U.S. Treasury rates higher than long-term
Treasury rates, causing an inversion of the yield curve for the first time since
1990. The inverted curve historically means that investors fear the effects of
possible inflation in the short-term, but believe the Federal Reserve Board is
taking action to combat inflation for the long-term. In fact, the Federal
Reserve Board raised interest rates three times within the six month period.
Additionally, the bond market was affected by the U.S. Treasury announcement
that it was going to reduce issuance of debt across all maturities and retire
existing debt through a buyback program, whereby the U.S. Treasury would buy
back its own long-term issues with budget surplus monies.
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/1/Past performance is no guarantee of future results. Morningstar proprietary
ratings on U.S. domiciled funds reflect historical risk-adjusted performance
as of April 30, 2000. The ratings are subject to change every month.
Morningstar ratings are calculated from the fund's three-, five-, and 10-year
average annual returns (if applicable) in excess of 90-day Treasury bill
returns with appropriate fee adjustments, and a risk factor that reflects
fund performance below 90-day T-bill returns. Municipal Bond was rated 5
stars among 1,692 and 1,438 municipal bond funds for the 3- and 5-year
periods, respectively. Fixed Income was rated 4 stars among 1,696 and 1,292
taxable bond funds for the 3- and 5-year periods, respectively. Short-Term
Municipal Bond was rated 5 stars among 1,692 and 1,438 municipal bond funds
for the 3- and 5-year periods, respectively. Short-Term Fixed Income was
rated 5 stars among 1,696 and 1,292 taxable bond funds for the 3- and 5-year
periods, respectively. The top 10% of the funds in a broad asset class
receive 5 stars and the next 22.5% receive 4 stars. The Funds were rated
exclusively against U.S. domiciled funds. Ratings are for Institutional
Class; other classes may vary.
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3
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Domestic Fixed Income Funds
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Letter to Shareholders
Municipal bond yields mirrored the situation in the Treasury market, with the
shorter-end of the curve struggling and the longer-end rallying. Municipal
yields in 5-year maturities increased 0.30%, while 30-year municipal yields
decreased by 0.16%.
Lack of supply and reduced institutional demand continued to dominate the
municipal market. Rising interest rates made it less attractive for
municipalities to refund older debt, and new issue supply was down. For example,
supply was down approximately 30% just over the first calendar quarter compared
to the same quarter one year prior. This caused investors to bid up the prices
of available bonds. Institutional demand for municipal bonds was modest compared
to historical standards, due primarily to investor preoccupation with the
technology sector's high equity returns and to reduced activity from property
and casualty insurers. Insurers, who comprise close to half of the traditional
institutional market, have been suffering from decreased profitability and have
been seeking attractive yield spread opportunities in the taxable bond market.
Still, municipal bonds continued to be attractive relative to other fixed income
classes. Municipal bond yields relative to Treasury yields remained
significantly above historical norms. For example, a 30-year AA municipal bond
yield relative to a 30-year Treasury yield was 95% at the end of the semi-annual
period. Historically, this relationship has been between 82% and 84%.
. Municipal Bond
Municipal Bond outperformed its benchmark index, the Lehman 5-Year General
Obligations Index, for the six months ended April 30, 2000. Since the inception
of the Fund in December 1991, we have sought to provide shareholders with a high
level of federally tax-exempt income consistent with the preservation of
capital, without investing exclusively in long-term bonds to obtain that high
level of income. In pursuit of this goal, we focused on purchasing issues with
intermediate maturities and early retirement features, such as sinking funds and
prepayment bond calls.
We slightly extended the duration of the Fund at the end of 1999 to take
advantage of the extreme undervaluation of municipal bonds relative to U.S.
Treasury bonds. Since that time, we kept the duration relatively constant to
allow the portfolio to benefit when the yield ratio returns to its historic
relationship. We also focused on the purchase of government-backed bonds, i.e.
escrowed-to-maturity and prerefunded issues, as these high quality issues
offered attractive yields.
. Short-Term Municipal Bond
Short-Term Municipal Bond outperformed its benchmark, the iMoneyNet, Inc. All
Tax-Free Money Funds Average, for the six months ended April 30, 2000. The
Short-Term Municipal Bond is a diversified portfolio of federally tax-exempt
municipal securities with a dollar weighted effective average maturity of no
longer than three years. This very short duration is intended to provide
investors with an attractive investment alternative to lower yield, tax-free
money market funds. We seek to achieve relative stability of principal in the
fund by investing in bonds with short-term maturities and anticipated early
redemptions.
During the semi-annual period, we continued to add value through individual
selection of attractively priced bonds. We continue to believe that bonds with
sinking fund retirements and mortgage prepayment calls offer attractive
investment opportunities and maintain our investments in these securities.
MARKET OUTLOOK
In our view, municipal bonds remain moderately undervalued at current U.S.
Treasury bond yield levels. The relative lack of supply, especially if
municipalities cannot refund due to still-rising interest rates, as well as the
level of participation by large institutional players will continue to be key
drivers of municipal market conditions over the months ahead. We will continue
to focus on the purchase of high quality issues, such as government-backed
bonds, as we believe investors are seldom rewarded for purchasing lower-rated
issues.
4
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Domestic Fixed Income Funds
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Letter to Shareholders
Taxable Fixed Income Funds:
Investment Grade
. Fixed Income
. Short-Term Fixed Income
MARKET REVIEW
Overall, the U.S. fixed income markets were buffeted by a significant increase
in interest rates and a dramatic flattening of the yield curve during the six
months ended April 30, 2000. The continuing strength of the U.S. economy
induced the Federal Reserve Board to raise interest rates a total of 0.75% over
the semi-annual period--on November 16, February 2 and March 21. These three
hikes brought the fed funds rate back to its pre-crisis level of 1998.
As the year 1999 ended, the fixed income markets were pricing in significant
additional tightening by the Federal Reserve Board during the upcoming year.
However, the various fixed income sectors did so in different ways. The U.S.
Treasury market suffered from rising rates for the first quarter of the Funds'
fiscal year. Conversely, the spread sectors--the corporate, mortgage and asset-
backed sectors--experienced positive relative performance. Credit spreads
continued the narrowing trend begun the previous quarter as the predictions of
massive Y2K issue supply failed to materialize. The spread sectors' rally was
supported by investors scrambling to take advantage of the newly positive
supply/demand balance.
During the second quarter of the Funds' semi-annual period, the combination of
continued Federal Reserve Board interest rate hikes and the U.S. Treasury
retiring debt resulted in a significant inversion of the yield curve and a
widening in credit spreads. The yield curve flattened by 1.20%, as the 2-year
Treasury note increased in yield by 0.90% and the 30-year Treasury yield
declined by 0.20%. This scenario caused all of the spread sectors to
underperform on a relative basis. In fact, the corporate, mortgage and asset-
backed sectors quickly reversed their narrowing trend when the U.S. Treasury
announced its decision during the quarter to reduce the number of auctions held
and to institute a buyback program, whereby the U.S. Treasury would buy back its
own 30-year issues with budget surplus monies. The result was less supply,
giving U.S. Treasuries a perceived scarcity value. By the end of the semi-
annual period, the spread sectors had retraced the entirety of their end of 1999
advance, and the intermediate-term to long-term end of the U.S. Treasury market
rallied.
. Fixed Income
Fixed Income outperformed its benchmark index, the Lehman Aggregate Bond Index,
for the six months ended April 30, 2000. We stayed true to our guiding
principle that regardless of the direction of interest rates, a focused bottom-
up approach to determining fundamental value in individual issues provides
superior risk-adjusted returns over the long term.
Given the Fund's higher allocation to spread sectors, the portfolio benefited
from the contraction in credit spreads during the first quarter of the fiscal
year, which resulted in positive relative returns for all sectors of the fixed
income market versus duration-matched Treasuries. The commercial mortgage sector
turned in the best relative performance as compared to U.S. Treasuries, as the
sector continued to benefit from the solid credit fundamentals of the commercial
real estate market. The corporate sector posted the second best relative
performance, as it rebounded from Y2K-induced concerns. Based on their shorter-
duration profile, the asset-backed and residential mortgage sectors were the
only two to turn in a positive absolute return. Mortgages particularly benefited
from the slowdown in pre-payments as interest rates rose. Taxable municipal
securities provided the Fund with a liquid trading vehicle, allowing us to
capitalize on significant relative value opportunities.
During these months, the new issue corporates that were purchased at a
concession to the overall market during the third calendar quarter of 1999
tightened fairly dramatically. In particular, airline equipment bonds and real
estate investment trusts were among the top performing bonds in the portfolio.
In addition, new issue asset-backed auto and equipment loans and leases, also
purchased at concession to the market and since tightened, performed well for
the portfolio. So, too, did commercial mortgages.
The spread sectors underperformed duration-matched U.S. Treasuries for the
second quarter of the Fund's fiscal year. Credit spreads widened significantly
as the Treasury yield curve inverted and spread sector yields were basically
unchanged. In the mortgage sector, on a duration-adjusted basis, GNMAs
outperformed conventional pass-throughs, as comments made by the U.S. Treasury
roiled the agency market. More specifically, there was a pull-back of the
credit line from what are known as Government Sponsored Entities, i.e. the U.S.
agency sector of the fixed income market including Fannie Maes, Freddie Macs,
and more.
5
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Domestic Fixed Income Funds
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Letter to Shareholders
These securities suffered. GNMAs, on the other hand, are explicitly guaranteed
by the U.S. government.
Given light new issuance in the whole loan market and the excellent extension
protection afforded by private label mortgage bonds, these securities were among
the top performers in the portfolio during the Fund's second fiscal quarter. In
the corporate sector, performance was purely a function of maturity. Issues
with maturities of five years or longer underperformed, while securities with
maturities of three years or less outperformed duration-matched Treasuries.
Short-dated asset-backed securities were also among the portfolio's best
performers.
. Short-Term Fixed Income
Short-Term Fixed Income purchases short-term investment grade securities
providing a high level of income with limited price volatility.
Short-Term Fixed Income outperformed its benchmark, the Merrill Lynch 1 Year
Treasury Bill Index, but slightly underperformed the Merrill Lynch 6 Month
Treasury Bill Index, for the six months ended April 30, 2000. The Fund was able
to benefit from the significant dislocations in the spread sectors in what
proved to be a volatile market environment. In particular, short-duration, high
quality taxable municipal securities were one of the best performing sectors
through the semi-annual period. Over the period, these securities were sold
opportunistically in favor of mortgages, corporates and asset-backed securities.
MARKET OUTLOOK
Fundamentally, we believe the fixed income markets remain sound, however, the
conflicting forces of the Treasury buyback program and continued Federal Reserve
Board tightening will likely further invert the yield curve and result in wider
credit spreads. Thus, we expect continued volatility in the spread sectors over
the near term, but we remain constructive on these sectors and will look to take
advantage of any technically-driven situations as opportunities arise. We
believe the spread sectors should outperform Treasuries on a relative basis over
the second half of the Funds' fiscal year.
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Taxable Fixed Income Funds: High Yield
. High Yield Bond
MARKET REVIEW
For the six months ended April 30, 2000, high yield bonds outperformed 10-Year
Treasuries. The CS First Boston High Yield Index posted a six month return of
1.11%, while 10-Year Treasuries returned just 0.70% for the same time period.
Still, the high yield market was impacted by rising interest rates, supply
outpacing demand, and what is known as negative event risk. During the semi-
annual period this negative event risk consisted of credit rating downgrades and
a default rate that stood at 5.6% at the end of April. While this default rate
is slightly down from the 5.8% it had been six months earlier, it is still
historically high.
Interestingly, there was a rather dramatic divergence in the performance of high
yield bonds pre- and post-millennium. The last two months of 1999 witnessed the
high yield market outperform U.S. Treasuries by 4.58%, as investors became
convinced that Y2K might not be worth all the consternation of the prior six
months. There was little supply in high yield available and a very favorable
technical position, wherein dealers had light inventory and managers had cash.
Thus, the high yield market rallied into year end, as buyers came back into the
market and pushed prices higher.
The beginning of 2000 was exactly the opposite--the first four months of the
year saw U.S. Treasuries outperform high yield by 4.18%. Supply in high yield
picked up while demand evaporated, as investors continued to focus on chasing
technology stocks with high price/earnings ratios. In addition, facing a
potentially overheating economy, the Federal Reserve Board became more
aggressive in its posture to reduce GDP growth and, having already tightened
three times in 1999, raised interest rates twice more. These factors combined
to create a tough environment for high yield bond investors and credit spreads
widened.
. High Yield Bond
High Yield Bond returned 6.90% for the six months ended April 30, 2000,
significantly outperforming its benchmark
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6
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Domestic Fixed Income Funds
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Letter to Shareholders
return of 1.11%. This strong performance was primarily due to our issue specific
credit analysis and to our overweighting of growth sectors and global issuers.
The biggest change to our strategy since our last report is our increasingly
defensive posture in sector selection. During the semi-annual period, we
decreased the portfolio's industrial and cyclical exposure and increased its
overweightings in more defensive or less cyclically-tied industries.
There are several reasons for these strategic sector moves. First, the Federal
Reserve Board had become more active through a series of interest rate hikes and
thus seemingly more determined to slow economic growth. This does not bode well
for weaker industrials, which would need to refinance at higher rates than they
were previously paying. Second, while we believe the economy will continue to
be strong, the richer valuations of certain industrial and cyclical sectors make
their risk/reward profile unfavorable. Third, many "Old Economy" industrials
are frustrated with their low price/earnings stock multiples and are trying to
find ways to increase their valuations. One way to do this is to increase debt
leverage through share repurchases or leveraged buyouts. Although leveraged
buyout risk is more relevant for investment grade issuers, downgrades into
"junk" status will also put pressure on credit spreads for high yield issuers in
these sectors.
We redeployed proceeds from industrial and cyclical sector sales into the cable,
media, technology and telecommunications sectors. These sectors have
experienced comparatively greater growth and, with the exception of technology,
have been less tied to cyclical swings. The Fund's largest increase in
allocation went to mobile communications companies that are experiencing rapid
growth and industry consolidation. While many of the companies have lofty
equity valuations, this does not greatly concern us as fixed income investors.
What is important is whether these companies can service their debt and show
positive free cash flow in order to pay down their debt. We believe these
companies offer attractive yields and the potential to de-leverage quickly.
We modestly increased the amount of short-duration paper in the Fund. Such a
strategy is intended to provide some cushion in the event that markets become
even more volatile. For example, the Fund's largest holding at the end of the
semi-annual period was Firstcom. This is a defensive piece of paper that we
expect to be tendered at some point later this year. This will give us
additional cash to reinvest later in the year if spreads are wider. In the
meantime, we own debt that is trading to an anticipated tender date with an
attractive yield and that has little interest rate or market sensitivity. We
also increased the amount of lower quality paper in the portfolio, as we believe
these sectors offered better risk/reward profiles. These issues were trading at
more depressed levels than higher quality paper primarily due to the increased
liquidity premium for smaller, lower rated issuers that the market was
demanding.
We continued to overweight global issuers, as we believe that they offered
better relative value. Interestingly, these global sectors also had better
supply/demand technicals than U.S. sectors as of the end of the semi-annual
period.
MARKET OUTLOOK
Looking ahead, we believe the outlook for high yield bonds is solid,
particularly given the poor start of the year. High yield is now very
undervalued relative to U.S. Treasuries. As evidence, the Moody's trailing
twelve month default rate currently stands at 5.6%. But, at the time of this
writing, current spread levels (which had widened further with the extreme
equity market volatility in the first week of April) correspond to a 9.2%
default rate/1/, discounting a significant pick-up in defaults. High yield
spreads to Treasuries are trading at near recessionary levels despite a very
strong economy. In our view, then, high yield bonds have been this attractive
on a fundamental basis relative to Treasuries only two other times in the last
ten years--during the fall of 1998 and at the start of 1991. Both periods were
followed by notable outperformance of this asset class. Of course, past
performance does not guarantee future results, but history may serve as a useful
guide.
That said, we do not believe the high yield market will experience a dramatic
bounce, as cash flow continues to be channeled into equity markets, market
technicals remain weak, and new issue supply awaits any pick up in demand. The
major risks to the high yield market, in our opinion, are a dramatic slowdown in
the economy or significantly higher interest rates. Both or either could lead
to a higher default rate. Currently, the high yield market has largely
discounted these events without actual evidence that either is likely in the
near term. In addition,
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/1/Martin S. Fridson, "Spread-versus-Treasuries Exceptionally Generous,"
Merrill Lynch, April 4, 2000.
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7
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Domestic Fixed Income Funds
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Letter to Shareholders
with the average price of high yield debt in the Index trading at 83 cents on
the dollar, we like the risk/reward outlook for this asset class. For yield-
oriented investors we believe high yield bonds currently offer attractive value
versus equities and other fixed income investments.
We believe the Fund is well positioned to take advantage of the attractive
yields of high yield bonds over the next year. Most importantly, we continue to
invest with a longer-term perspective in companies we believe to either be
improving on a fundamental credit basis or that are trading at undervalued
levels. We intend to keep our focus on growth stories, such as communications,
and on companies that we believe are relatively immune to economic weakness or
are strong enough to survive any such weakness that may develop.
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8
<PAGE>
Domestic Fixed Income Funds
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Performance Comparison (Unaudited)
MUNICIPAL BOND, INSTITUTIONAL CLASS/2/, LEHMAN 5 YEAR G.O. INDEX AND LIPPER
INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE GROWTH OF A $250,000 INVESTMENT (SINCE
DECEMBER 13, 1991)
[GRAPH APPEARS HERE]
Dec-91 $250,000 $250,000 $250,000
Apr-92 $259,653 $256,278 $252,400
Apr-93 $295,239 $281,839 $279,583
Apr-94 $305,906 $289,970 $285,706
Apr-95 $328,628 $304,998 $300,449
Apr-96 $353,562 $326,923 $319,978
Apr-97 $376,534 $342,665 $336,745
Apr-98 $407,939 $366,147 $361,664
Apr-99 $430,031 $389,967 $383,291
Apr-00 $440,125 $391,350 $384,975
Municipal Bond, Institutional Class - $440,125
Lehman 5 Year G.O. Index - $391,350
Lipper Intermediate Municipal Debt Funds Average - $384,975
Average Annual Total Return for the Period Ended April 30, 2000: 1 year (0.47)%,
3 year 4.35%, 5 year 5.41%. Since 12/13/91/1/ 6.98%. Benchmark returns are for
the period beginning 12/31/91.
MUNICIPAL BOND, INVESTMENT CLASS/3/, LEHMAN 5 YEAR G.O. INDEX AND LIPPER
INTERMEDIATE MUNICIPAL DEBT FUND AVERAGE GROWTH OF A $2,500 INVESTMENT (SINCE
JULY 30, 1997)
[GRAPH APPEARS HERE]
Jul-97 2500 2500 2500
Apr-98 2602 2573 2574
Apr-99 2736 2740 2728
Apr-00 2701 2800 2689
Municipal Bond, Investment Class - $2,701
Lehman 5 Year G.O. Index - $2,800
Lipper Int Municipal Debt Fund Average -$2,689
Average Annual Total Return for the Period Ended April 30, 2000:
1 year (0.69)%. Since 7/30/97/1/ 2.91%.
Benchmark returns are for the period beginning 7/31/97.
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Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance figures assume the
reinvestment of dividends and capital gain distributions. Performance would have
been lower during the specified period if certain fees and expenses had not been
waived. The Lehman Brothers 5-Year G.O. Index is an unmanaged index which
includes over 1900 intermediate term General Obligation tax exempt municipal
bonds with an average maturity range of 4 to 6 years. Lipper figures represent
the average of the total returns reported by all the mutual funds designated by
Lipper Inc. as falling into the respective categories indicated. These figures
do not reflect sales charges.
/1/The Fund's inception date.
/2/On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/On February 28, 2000 the Service Shares were renamed the Investment Class.
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9
<PAGE>
Domestic Fixed Income Funds
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Performance Comparison (Unaudited)
FIXED INCOME, INSTITUTIONAL CLASS/2/, LEHMAN AGGREGATE BOND INDEX AND LIPPER
INTERMEDIATE INVESTMENT GRADE BOND FUND AVERAGE GROWTH OF A $250,000 INVESTMENT
(SINCE SEPTEMBER 18, 1992)
[GRAPH APPEARS HERE]
<TABLE>
<S> <C> <C> <C>
Sept-92 250,000 250,000 250,000
Apr-93 271,891 263,254 263,043
Apr-94 281,607 265,492 265,147
Apr-95 302,562 284,899 281,772
Apr-96 329,243 309,515 304,342
Apr-97 354,910 331,428 325,037
Apr-98 392,009 367,587 357,769
Apr-99 415,379 390,635 378,018
Apr-00 421,300 395,000 377,700
</TABLE>
Fixed Income, Institutional Class - $421,300
Lehman Aggregate Bond Index - $395,000
Lipper Intermediate Investment Grade Bond Fund Average - $377,700
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 1.53%, 3 year 5.91%, 5 year 6.86%. Since 9/18/92/1/ 7.09%.
Benchmark returns are for the period beginning 9/30/92.
FIXED INCOME, INVESTMENT CLASS/3/, LEHMAN AGGREGATE BOND INDEX AND LIPPER
INTERMEDIATE INVESTMENT GRADE FUND AVERAGE GROWTH OF A $2,500 INVESTMENT (SINCE
FEBRUARY 11, 1998)
Jan-98 2500 2500 2500
Apr-98 2516 2522 2521
Apr-99 2660 2680 2664
Apr-00 2693 2714 2658
Fixed Income, Investment Class - $2,693
Lehman Aggregate Bond Index - $2,714
Lipper Intermediate Investment Grade Bond Fund Average - $2,658
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 1.29%. Since 2/11/98/1/ 3.42%.
Benchmark returns are for the period beginning 2/28/98.
--------------------------------------------------------------------------------
Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance figures assume the
reinvestment of dividends and capital gain distributions. Performance would have
been lower during the specified period if certain fees and expenses had not been
waived. The Lehman Brothers Aggregate Bond Index is an unmanaged index which
represents U.S. domestic taxable investment grade bonds which include securities
from the following sectors: U.S. Treasuries, agencies, corporate, mortgage-
backed and asset-backed securities. The index includes over 5,500 public issued
securities with a minimum one year to final maturity and $150 million par amount
outstanding. The average maturity and duration of the index is in the
intermediate range. Lipper figures represent the average of the total returns
reported by all the mutual funds designated by Lipper Inc. as falling into the
respective categories indicated. These figures do not reflect sales charges.
/1/The Fund's inception date.
/2/On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/On February 28, 2000 the Service Shares were renamed the Investment Class.
--------------------------------------------------------------------------------
10
<PAGE>
Domestic Fixed Income Funds
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Performance Comparison (Unaudited)
SHORT TERM MUNICIPAL BOND, INSTITUTIONAL CLASS/2/, iMONEYNET, INC. ALL TAX-FREE
MONEY FUNDS AVERAGE AND LIPPER SHORT TERM MUNICIPAL DEBT FUND AVERAGE GROWTH OF
A $250,000 INVESTMENT (SINCE MARCH 6, 1995)
<TABLE>
<S> <C> <C> <C>
Mar-95 $250,000 $250,000 $250,000
Apr-95 $253,070 $251,435 $252,204
Apr-96 $267,428 $259,485 $264,057
Apr-97 $283,911 $267,140 $275,121
Apr-98 $302,241 $275,429 $288,630
Apr-99 $317,221 $283,037 $302,022
Apr-00 $322,950 $291,050 $305,250
</TABLE>
Short Term Municipal Bond, Institutional Class - $322,950
iMoneyNet, Inc. All Tax-Free Money Funds Average - $291,050
Lipper Short Term Municipal Debt Fund Average - $305,250
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 1.85%, 3 year 4.40%, 5 year 5.00%. Since 3/6/95/1/ 5.09%.
Benchmark returns are for the period beginning 3/31/95.
SHORT TERM MUNICIPAL BOND, INVESTMENT CLASS/3/,
iMONEYNET, INC. ALL TAX-FREE MONEY FUNDS AVERAGE AND LIPPER
SHORT TERM MUNICIPAL DEBT FUND AVERAGE
GROWTH OF A $2,500 INVESTMENT (SINCE DECEMBER 3, 1997)
<TABLE>
<S> <C> <C> <C>
Dec-97 $2,500 $2,500 $2,500
Apr-98 $2,542 $2,524 $2,527
Apr-99 $2,659 $2,594 $2,644
Apr-00 $2,701 $2,678 $2,701
</TABLE>
Short Term Municipal Bond, Investment Class - $2,701
iMoneyNet, Inc. All Tax-Free Money Funds Average - $2,678
Lipper Short Term Municipal Debt Fund Average - $2,701
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 1.58%. Since 12/3/97/1/ 3.26%.
Benchmark returns are for the period beginning 11/30/97.
--------------------------------------------------------------------------------
Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance figures assume the
reinvestment of dividends and capital gain distributions. Performance would have
been lower during the specified period if certain fees and expenses had not been
waived. The iMoneyNet, Inc. -- All Tax-Free Money Funds Average is the average
of all tax-exempt municipal money market funds that invest in obligations of
tax-exempt entities, including state and municipal authorities. Lipper figures
represent the average of the total returns reported by all the mutual funds
designated by Lipper Inc. as falling into the respective categories indicated.
These figures do not reflect sales charges.
/1/The Fund's inception date.
/2/On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/On February 28, 2000 the Service Shares were renamed the Investment Class.
--------------------------------------------------------------------------------
11
<PAGE>
Domestic Fixed Income Funds
--------------------------------------------------------------------------------
Performance Comparison (Unaudited)
SHORT TERM FIXED INCOME, MERRILL LYNCH
6 MONTH TREASURY BILL INDEX AND LIPPER SHORT
INVESTMENT GRADE DEBT FUNDS AVERAGE
GROWTH OF A $250,000 INVESTMENT (SINCE MARCH 13, 1995)
<TABLE>
<S> <C> <C> <C>
4/1/94 250000 250000 250000
Apr-95 251755 251875 253411
Apr-96 266231 268247 270491
Apr-97 283115 283912 287532
Apr-98 301732 301345 307400
Apr-99 321157 317467 323231
Apr-00 336725 328700 329225
</TABLE>
Short Term Fixed Income - $336,725
Merrill Lynch 6 Month Treasury Bill Index - $328,700
Lipper Short Investment Grade Debt Funds Average - $329,225
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 4.91%, 3 year 5.96%, 5 year 5.99%. Since 3/13/95/1/ 5.97%.
Benchmark returns are for the period beginning 3/31/95.
--------------------------------------------------------------------------------
Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance figures assume the
reinvestment of dividends and capital gain distributions. Performance would have
been lower during the specified period if certain fees and expenses had not been
waived. The Merrill Lynch 6 month T-bill Index tracks the performance of the 6
month treasury market. Lipper figures represent the average of the total returns
reported by all the mutual funds designated by Lipper Inc. as falling into the
respective categories indicated. These figures do not reflect sales charges.
----------------------------------------------------------------------------
12
<PAGE>
DOMESTIC FIXED Income Fund
Performance Comparison (Unaudited)
HIGH YEILD BOND, INSTITUTIONAL CLASS/2/. CSFB HIGH YEILD AND LIPPER HIGH YEILD
BOND AVARAGE GROWTH OF A $250,000 INVECTMENT (SINCE MARCH 16, 1998)
<TABLE>
<S> <C> <C> <C>
Mar-98 $250,000 $250,000 $250,000
Apr-98 $253,210 $251,674 $252,806
Apr-99 $268,494 $253,414 $255,360
Apr-00 $286,950 $248,300 $243,500
</TABLE>
High Yield Bond, Institutional Class - $286,950
CSFB High Yield Index - $248,300
Lipper High Yield Bond Average - $243,500
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 6.90%. Since 3/16/98/1/ 6.70%.
Benchmark returns are for the period beginning 3/31/98.
HIGH YEILD BOND, INSTITUTIONAL CLASS/3/, CSFB HIGH YEILD AND LIPPER HIGH YEILD
BOND AVARAGE GROWTH OF A $25,00 INVESTMENT (SINCE SEPTEMBER 15, 1998)
Sep-98 2500 2500 2500
Apr-99 2913 2669 2729
Apr-00 3110 2615 2635
High Yield Bond, Investment Class - $3,110
CSFB High Yield Index - $2,615
Lipper High Yield Bond Average - $2,635
Average Annual Total Return for the Period Ended April 30, 2000:
1 year 6.80%. Since 9/15/98/1/ 14.38%.
Benchmark returns are for the period beginning September 30, 1998.
------------------------------------------------------------------------------
/1/Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance figures assume the
reinvestment of dividends and capital gain distributions. Performance would have
been lower during the specified period if certain fees and expenses had not been
waived. The CS First Boston High Yield Index is an unmanaged, trader priced
portfolio constructed to mirror the global high yield debt market. The index
includes over 1,625 issues with a total market value of $350 billion. Lipper
figures represent the average of the total returns reported by all the mutual
funds designated by Lipper Inc. as falling into the respective categories
indicated. These figures do not reflect sales charges.
/1/The Fund's inception date.
/2/On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/On February 28, 2000 the Service Shares were renamed the Investment Class.
--------------------------------------------------------------------------------
13
<PAGE>
Municipal Bond
-------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Municipal Bonds - 96.20%
Alabama - 1.28%
Birmingham, Industrial
Development Board,
Industrial Revenue
Development, American
Metal Products, RB, AMT,
LOC
4.500%, 04/01/04......................... $ 60,000 $ 57,294
4.500%, 04/01/04......................... 90,000 85,941
5.000%, 04/01/09......................... 95,000 88,753
5.000%, 04/01/09......................... 110,000 102,766
5.500%, 04/01/14......................... 120,000 111,494
5.750%, 04/01/19......................... 225,000 203,141
5.750%, 04/01/19......................... 40,000 36,114
Birmingham, Medical Clinic
Board, Baptist Medical
Centers, RB, ETM
8.250%, 07/01/05......................... 105,000 112,122
Birmingham, Private
Education Building,
Miles College, RB, ACA
5.500%, 05/01/28......................... 310,000 273,981
Birmingham, Special Care
Facilities Financing
Authority, Methodist
Home for Aging, RB, LOC
5.000%, 03/01/14......................... 3,560,000 3,109,518
Housing Finance Authority,
Multi-Family Mortgage, The
Club Apartments, RB,
Series I, AMT
5.650%, 06/01/08......................... 1,875,000 1,832,250
Lauderdale & Florence
Counties, Public Hospital,
RB, ETM
7.000%, 07/01/07......................... 215,000 226,282
----------
6,239,656
----------
Arizona - 1.69%
Coconino County, Unified
School District, GO,
AMBAC
5.000%, 07/01/01......................... 515,000 515,824
Health Facilities, Authority
Hospital System Revenue
Refunding, RB, ETM, MBIA
6.250%, 09/01/11......................... 280,000 292,816
Maricopa County, Hospital
Revenue Authority,
Phoenix Baptist Hospital &
Medical Center, RB, ETM
7.125%, 10/01/02......................... 80,000 82,169
Maricopa County, Industrial
Development Authority,
John C Lincoln Hospital,
RB, FSA
7.000%, 12/01/00......................... $ 210,000 $ 213,175
Maricopa County, Industrial
Development Authority,
Pines at Camelback
Apartments Project, RB,
Series A, Asset Guaranty
4.900%, 05/01/06......................... 145,000 139,423
5.000%, 05/01/07......................... 125,000 119,445
5.300%, 05/01/13......................... 310,000 296,521
Maricopa County, Samaritan
Health Service, RB, ETM
6.750%, 01/01/04......................... 230,000 237,418
Pinal County, Community
College, Pledged
Obligation, RB, AMBAC
5.250%, 07/01/05......................... 390,000 393,483
5.250%, 07/01/06......................... 675,000 680,258
5.250%, 07/01/07......................... 715,000 719,619
5.250%, 07/01/08......................... 750,000 753,405
4.800%, 07/01/09......................... 520,000 495,810
Pinal County, Community
College, RB, AMBAC
5.400%, 07/01/05......................... 290,000 294,681
5.300%, 07/01/06......................... 310,000 313,292
5.200%, 07/01/07......................... 305,000 306,064
4.750%, 07/01/09......................... 280,000 265,588
Santa Cruz County, Industrial
Development Authority,
Citizens Utility Company
Project, RB, Optional
Put @ 100/C/
4.750%, 08/01/07......................... 850,000 808,784
Yuma, Industrial
Development Authority,
Multi-Family Mortgage,
Regency Apartments, RB,
Series A, GNMA
5.400%, 12/20/17......................... 1,425,000 1,323,810
----------
8,251,585
----------
Arkansas - 1.17%
Arkansas State,
Development Finance
Authority, Correction
Facilities Revenue, RB,
MBIA
5.100%, 10/01/16......................... 400,000 400,636
Drew County, Public
Facilities Board, Single
Family Mortgage, RB,
Series A-2, FNMA
7.900%, 08/01/11......................... 152,839 158,005
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Fayetteville, Public Facilities
Board, Single Family
Mortgage, RB
7.250%, 04/01/11......................... $ 430,000 $ 442,049
Jefferson County, Health
Care Facility, 1978
Conventional Series, RB,
ETM, FSA
7.400%, 12/01/10......................... 130,000 143,225
Lonoke County, Residential
Housing, RB, Series B
7.375%, 04/01/11......................... 119,557 123,119
Mississippi County, Public
Facilities Board, RB,
Series 1
7.200%, 07/15/10......................... 380,000 405,669
North Little Rock, Residential
Housing Facilities, Capital
Appreciation, RB/A/
0.000%, 12/01/10......................... 2,585,000 1,250,597
Rogers County, Sales & Use
Tax Redevelopment, RB
5.350%, 11/01/11......................... 1,875,000 1,898,925
Rogers, Sales & Use Tax
Revenue, RB
5.000%, 11/01/15......................... 425,000 423,003
Saline County, Residential
Housing Facilities, Single
Family Mortgage, RB
7.875%, 03/01/11......................... 305,000 313,830
Stuttgart, Public Facilities
Board, Single Family
Mortgage, RB, Series B
7.750%, 09/01/11......................... 133,549 139,314
----------
5,698,372
----------
California - 4.38%
Abag, Finance Authority for
Nonprofit Corporations,
American Baptist Homes,
COP, Series A
5.500%, 10/01/07......................... 400,000 379,256
Atwater, Redevelopment
Agency, Downtown
Redevelopment Project,
Tax Allocation Bond,
Series A, ACA
5.500%, 06/01/00......................... 100,000 100,077
5.500%, 06/01/01......................... 60,000 60,381
5.500%, 06/01/02......................... 55,000 55,439
5.500%, 06/01/03......................... 65,000 65,566
5.500%, 06/01/04......................... 65,000 65,540
5.500%, 06/01/05......................... 70,000 70,459
5.200%, 06/01/11......................... 100,000 94,604
5.300%, 06/01/12......................... 105,000 99,551
5.300%, 06/01/13......................... 105,000 98,847
Bellevue, Unified School
District, COP, MBIA/A/
5.450%, 09/01/19......................... $ 235,000 $ 204,048
Contra Costa County, Multi-
Family Housing, Bollinger
Crest Apartments, RB,
Series C, AMT, FNMA
4.850%, 05/01/11......................... 400,000 374,968
Delta County, California
Home Mortgage Finance,
Pacific Mortgage Backed
Securities, RB, Series A,
AMT, MBIA / GNMA
6.700%, 06/01/24......................... 415,000 436,626
Emeryville, Redevelopment
Agency, Residential
Mortgage, RB, ETM
7.500%, 09/01/11......................... 155,000 171,387
Fairfield, COP, Pre-Refunded
@ 100/D/
10.750%, 08/01/00........................ 90,000 91,457
Fresno, Multi-Family Housing
Authority, Central Valley
Coalition Projects, RB,
Series A, AMT, FNMA
5.150%, 08/01/07......................... 250,000 246,413
Fresno, Multi-Family Housing
Authority, Central Valley
Coalition Projects, RB,
Series B, AMT, FNMA
5.150%, 08/01/07......................... 130,000 128,135
Fresno, Multi-Family Housing
Authority, Woodlands
Apartments Projects, RB,
Series A, GNMA
6.650%, 05/20/08......................... 375,000 388,684
Home Finance Authority,
Mortgage Backed
Securities Program,
RB, Series B, AMT,
GNMA / FNMA
6.900%, 10/01/24......................... 115,000 117,662
Los Angeles, Community
Redevelopment Authority,
Monterey Hills Project,
RB, Series B
8.650%, 12/01/22......................... 175,000 187,317
Los Angeles, Community
Redevelopment Agency,
Angelus Plaza Project, RB,
Series A, FNMA
7.400%, 06/15/10......................... 2,670,000 2,913,771
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
15
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Los Angeles, Multi-Family
Housing, Earthquake
Rehabilitation, RB,
Series B, Mandatory Put
@ 100, AMT, FNMA/B/
5.850%, 12/01/07......................... $3,135,000 $ 3,200,208
Los Angeles, Multi-Family
Housing, Earthquake
Rehabilitation, RB,
Series A, Mandatory
Tender @ 100,
AMT, FNMA
5.700%, 12/01/06......................... 895,000 910,126
Los Angeles, Multi-Family
Housing, Earthquake
Rehabilitation, RB,
Series C, AMT, FNMA
4.850%, 07/01/02......................... 3,035,000 3,034,818
Los Angeles, Regional
Airports Lease, RB
10.000%, 01/01/01........................ 85,000 86,251
Napa, Housing Facility, Napa
Park Apartments A-10, RB,
GNMA
7.500%, 06/20/00......................... 168,061 168,047
Pleasant Hill, Multi-Family
Housing, Ellinswood
Apartments Project, RB,
Series A, Mandatory Put @
100, FNMA/B/
5.300%, 10/01/05......................... 2,380,000 2,378,786
Sacramento, Municipal Utility
District, RB, Series M,
ETM
8.750%, 04/01/03......................... 145,000 155,159
Santa Clara County, RB
5.080%, 06/20/00......................... 62,783 62,783
Statewide Community
Housing Development,
Cudahy Gardens Project,
RB, Series I, AMT, LOC
5.100%, 10/01/12......................... 935,000 901,452
Statewide Community
Housing Development,
Cudahy Gardens Project,
RB, Series I, Mandatory
Put @ 100, AMT, LOC/B/
5.600%, 04/01/16......................... 925,000 910,607
Statewide Community
Housing Development,
Riverside Gardens Project,
RB, Series J, AMT, LOC
5.100%, 10/01/12......................... 820,000 790,578
Turlock, Public Financing
Authority Revenue, RB
5.250%, 09/01/15......................... 35,000 31,413
Vista, Multi-Family Housing,
Pepperwood Apartments
Project, RB, Series A,
Mandatory Put @ 100,
FNMA/B/
5.700%, 06/01/05.......................... $2,360,000 $ 2,387,872
-----------
21,368,288
-----------
Colorado - 2.43%
Arvada, Industrial
Development Authority,
Wanco Incorporated
Project, RB, AMT, LOC
5.600%, 12/01/12.......................... 245,000 228,093
5.800%, 12/01/17.......................... 355,000 319,944
Aurora, Centretech
Metropolitan District, GO,
Series C, Mandatory Put @
100, LOC/B/
4.875%, 12/01/08.......................... 1,280,000 1,223,974
Aurora, Single Family
Mortgage Revenue, RB,
Series A
7.300%, 05/01/10.......................... 215,000 220,315
Boulder County, Community
Hospital Project, RB, ETM
7.000%, 07/01/09.......................... 90,000 95,825
Castle Rock Ranch, Public
Improvements Authority, RB
5.900%, 12/01/03.......................... 755,000 771,225
Commerce City, Single
Family Mortgage, RB,
Series A
6.875%, 03/01/12.......................... 170,000 170,303
Denver, City & County, Single
Family Mortgage Revenue
Home, Metro Mayors
Caucus, RB,
GNMA/FNMA/FHLMC
5.000%, 11/01/15.......................... 120,000 112,838
Denver, Multi-Family
Mortgage, Buerger
Brothers Project, RB,
Series A, AMT, FHA
5.100%, 11/01/07.......................... 200,000 195,974
Denver, Multi-Family
Mortgage, Garden Court
Community, RB, FHA
4.700%, 07/01/08.......................... 370,000 354,453
Housing Finance Authority,
Multi-Family Insured
Mortgage, RB, Series C-3,
FHA
5.700%, 10/01/21.......................... 1,455,000 1,397,600
Housing Finance Authority,
Single Family Program,
RB, Series C
5.000%, 05/01/05.......................... 170,000 166,685
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Housing Finance Authority
Single Family Program,
RB, Series D-1, AMT
5.200%, 12/01/05.............. $ 725,000 $ 713,516
Housing Finance Authority,
Single Family Program,
RB, Series A-3
6.500%, 05/01/16.............. 765,000 796,426
Housing Finance Authority,
Single Family Program,
RB, Series A
4.750%, 11/01/05............. 170,000 164,637
Housing Finance Authority,
Single Family Program,
RB, Series B-2, AMT
6.400%, 11/01/24............. 755,000 766,582
Housing Finance Authority,
Single Family Program,
RB, Series B-3,
6.550%, 05/01/25............. 1,110,000 1,160,094
Housing Finance Authority,
Single Family Program,
RB, AMT
5.750%, 11/01/04............. 130,000 128,480
Student Obligation Board
Authority, RB, Series C,
Pre-Refunded @ 102, AMT/D/
7.150%, 09/01/01............. 710,000 745,699
Vail, Single Family Mortgage,
RB, Series A
8.125%, 06/01/10............. 145,000 155,315
Westminster, Multi-Family
Housing, Semper Village
Apartments, RB,
Mandatory Put @ 100, AXA/B/
5.950%, 09/01/06............. 1,670,000 1,700,461
Westminster, Multifamily
Revenue Refunding,
Housing, Oasis Wexford
Apartments, RB,
Mandatory Put @ 100,
FNMA/B/
5.350%, 12/01/05............. 280,000 280,385
----------
11,868,824
----------
Connecticut - 0.65%
Stamford, Housing Authority
Multifamily Revenue
Refunding, Fairfield
Apartments, RB, Mandatory
Put @ 100, AMT/B/
4.750%, 12/01/08............. 135,000 122,104
State Development Revenue
Authority, Life Care
Facility - Seabury Project,
RB, Asset Guaranty
5.000%, 09/01/15............. $ 400,000 $ 356,896
Waterbury, Housing
Mortgage Authority, RB,
Series A, AMBAC / FHA
4.850%, 07/01/09............. 1,365,000 1,325,552
Waterbury, Housing
Mortgage Authority, RB,
Series C, AMBAC / FHA
4.850%, 07/01/09............. 1,420,000 1,378,962
---------
3,183,514
---------
Delaware - 0.36%
State Economic
Development Authority
RB, Peninsula United,
Series A
6.000%, 05/01/09............. 5,000 33,962
State Economic
Development Authority,
Wilmington Friends School
Project
6.300%, 07/01/00............. 50,000 49,951
6.300%, 07/01/01............. 55,000 54,743
6.300%, 07/01/02............. 60,000 59,396
6.300%, 07/01/03............. 60,000 59,048
6.300%, 07/01/04............. 65,000 63,586
6.300%, 07/01/05............. 70,000 67,880
6.300%, 07/01/06............. 75,000 71,906
6.300%, 07/01/07............. 80,000 76,031
6.300%, 07/01/08............. 85,000 79,899
6.300%, 07/01/09............. 90,000 83,620
6.300%, 07/01/10............. 95,000 87,448
6.300%, 07/01/11............. 100,000 90,698
6.300%, 07/01/12............. 110,000 98,476
6.300%, 07/01/13............. 115,000 101,585
State Housing Authority, Multi-
Family Mortgage, RB, HUD
6.600%, 07/01/01............. 60,000 60,666
State Housing Authority,
Residential Mortgage, RB,
Series A
8.750%, 06/01/17............. 625,000 627,306
---------
1,766,201
---------
District Of Columbia - 0.49%
Housing Finance Agency,
Mayfair Mansions
Apartments, RB, AMT, FHA
5.000%, 02/01/08............. 675,000 648,506
Housing Finance Agency,
Single Family Mortgage,
RB, Series A, AMT,
FNMA / GNMA
6.250%, 12/01/28............. 1,740,000 1,767,579
---------
2,416,085
---------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
17
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Florida - 2.65%
Boca Place Associates,
RB, LOC
4.650%, 02/01/04..................... 3,245,000 $ 3,164,232
Brevard County, Health
Facility Revenue Authority,
Courtenay Springs Village,
RB, ETM
7.375%, 11/15/04..................... 815,000 854,413
Broward County, Water &
Sewer Utility Revenue,
RB, Pre-Refunded @100/D/
6.875%, 09/01/06..................... 195,000 206,879
Dade County, Government
Leasing Corporation, COP,
Series B
8.500%, 04/01/07..................... 45,000 45,809
Dade County, Government
Leasing Corporation, COP,
Series C
9.000%, 04/01/20..................... 250,000 258,170
Dade County, Housing
Finance Authority, Multi-
Family Mortgage, Midway
Point Phase I, RB, Series
A, Mandatory Put @ 100,
AMT, FNMA/B/
5.900%, 06/01/06..................... 790,000 806,985
Daytona Beach, Water &
Sewer Revenue, RB,
Series 1978, ETM
6.750%, 11/15/07..................... 400,000 422,616
Duval County, Housing
Finance Authority, GNMA
Mortgage Backed Securities Program,
RB, Series C, FGIC / GNMA
7.650%, 09/01/10..................... 75,000 77,273
Jacksonville, Health Facilities
Authority, Saint Vincent
Medical Center
Incorporated, RB, ETM
9.125%, 01/01/03..................... 290,000 308,160
Jacksonville, Health Facility
Authority, Saint Catherine
Laboure Manor
Incorporated, RB, ETM
9.125%, 01/01/03..................... 140,000 148,781
Miami Beach, Housing
Authority, Section 8, RB,
HUD
6.625%, 01/15/09..................... 900,000 918,720
Miami-Dade County, Housing
Finance Authority, RB,
Series A, AMT,
FNMA / GNMA
5.900%, 06/01/25..................... $ 1,550,000 $ 1,524,208
Miami, Fernando Apartments
9.750%, 10/01/11..................... 671,280 698,970
MIRAMAR Water
Improvement Assessment,
RB, FGIC
5.125%, 10/01/20..................... 1,270,000 1,274,242
Palm Beach County, Airport
Systems, RB, MBIA
7.500%, 10/01/00..................... 235,000 238,053
Palm Beach County,
Justice Facilities Revenue
RB, Prerefunded
FGIC/D/
7.250%, 06/01/00.................... 1,000,000 1,022,500
Pinellas County, H
Finance Authority
Family Mortgage
RB, Series A, AM
6.850%, 03/01/29.................... 755,000 795,279
St. John's County,
Development Authority
RB, Series A, MBIA
5.500%, 03/01/17.................... 185,000 181,561
------------
12,946,851
------------
Georgia - 1.81%
Athens, Water & Sewer
Revenue, RB, ETM
6.200%, 07/01/08.................... 800,000 855,400
Augusta, Housing
Rehabilitation,Multi-Family
Housing, Bon Air
Series C, HUD
7.000%, 09/01/05.................... 800,000 827,168
Clayton County, Multi-Family
Housing Authority, Pointe
South Apartments
Projects, RB, AMT,FNMA
5.750%, 01/01/13.................... 100,000 100,203
Fulton County, Housing
Authority, Single Family
Mortgage, RB, Series A,
AMT, GNMA
6.200%, 03/01/13.................... 190,000 186,215
Gwinnett County, Multi-
Family Housing Authority
Singleton-Oxford
Association, Series A, RB,
Mandatory Put @ 100
FNMA/B/
5.500%, 04/01/06.................... 755,000 757,990
</TABLE>
See Notes To Financial Statements.
--------------------------------------------------------------------------------
18
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Housing Authority Multi-
Family Housing, Ridge
Point Project Apartments Project,
RB, Series A, Mandatory
Put @ 100, FNMA/B/
5.700%. 06/01/05....................... $ 1,985,000 $ 2,004,929
Houston County,
Development Housing
Authority, Emerald Coast
Housing, RB, Series A
7.000%, 08/01/28....................... 2,010,000 1,800,116
Savannah, Economic Develop-
ment Authority Revenue,
College of Art & Design, RB
6.200%, 10/01/09....................... 1,070,000 1,061,665
6.500%, 10/01/13....................... 800,000 800,584
St. Marys, Housing Authority,
Multi-Family Mortgage,
Cumberland Oaks Apart-
ments, RB, Series A, FHA
7.250%, 09/01/05....................... 330,000 335,706
St. Marys, Housing Authority,
Multi-Family Mortgage,
Pines Apartments, RB,
Series C, FHA
7.250%, 10/01/05....................... 130,000 131,596
---------
8,861,572
---------
Hawaii - 0.42%
Honolulu, Housing Authority,
Multi-Family Mortgage,
Waipahu Towers Project,
RB, Series A, AMT, GNMA
6.900%, 06/20/05....................... 190,000 194,756
Estate Housing Finance &
Development Corporation,
Single Family Mortgage,
Series A, RB, AMT, FNMA
5.200%, 07/01/12....................... 1,940,000 1,864,728
---------
2,059,484
---------
Idaho - 0.89%
Bingham County, Industrial
Development Company,
Supreme Potatoes Incorporated
Project, RB, AMT, LOC
4.600%, 11/01/00....................... 45,000 44,974
4.750%, 11/01/01....................... 145,000 144,192
4.850%, 11/01/02....................... 65,000 64,171
4.950%, 11/01/03....................... 240,000 235,838
5.050%, 11/01/04....................... 260,000 254,652
5.150%, 11/01/05....................... 265,000 258,606
5.200%, 11/01/06....................... 290,000 281,897
5.300%, 11/01/07....................... 305,000 296,399
5.400%, 11/01/08....................... 325,000 315,855
5.500%, 11/01/09....................... 355,000 346,033
5.600%, 11/01/10....................... 80,000 78,127
5.700%, 11/01/11....................... 85,000 82,971
5.800%, 11/01/12....................... 90,000 87,814
Housing Agency, Single
Family Mortgage, RB,
Series C-1
7.650% 07/01/10...................... $ 120,000 $ 122,068
Housing Agency, Single
Family Mortgage, RB,
Series F, AMT
5.800%, 07/01/07..................... 525,000 522,218
Housing & Finance
Association, Multi-Family
Housing, Teton
Apartments, RB,
Mandatory Put @ 100,
AMT, LOC/B/
5.150%, 08/01/04...................... 155,000 152,893
Housing & Finance
Association, Single Family
Mortgage, RB, Series B,
AMT
5.650%, 07/01/09...................... 305,000 298,153
Housing & Finance
Association, Single Family
Mortgage, RB, Series C-2,
AMT
5.250%, 07/01/11...................... 250,000 242,885
Housing & Finance
Association, Single Family
Mortgage, RB, Series F-2,
AMT
5.100%, 07/01/12...................... 535,000 503,424
---------
4,333,170
---------
Illinois - 8.26%
Alton, Hospital Facility, Alton
Memorial Hospital Project,
RB, ETM
7.000%, 07/01/05...................... 395,000 413,300
Berwyn, Illinois, GO, AMBAC
5.375%, 11/15/10...................... 800,000 759,152
Bolingbrook, Capital
Appreciation, RB,
Series 1/A/
0.000%, 01/01/11...................... 1,135,000 523,757
Buffalo Grove, Economic
Development Authority,
RB
5.450%, 08/15/02...................... 515,000 511,235
Chicago, Multi-Family
Mortgage, Bryne Mawr/
Belle Project, RB, AMT,
GNMA
4.950%, 06/01/05...................... 140,000 138,433
5.250%, 06/01/08...................... 135,000 132,986
5.350%, 06/01/09...................... 135,000 132,982
5.450%, 06/01/10...................... 145,000 143,685
5.500%, 06/01/11...................... 140,000 138,620
5.550%, 06/01/12...................... 145,000 143,483
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
19
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Des Plaines, Hospital Facility,
Holy Family Hospital, RB,
ETM
7.000%, 01/01/07..................... $ 155,000 $ 162,257
Des Plaines, Hospital Facility,
Holy Family Hospital, RB,
ETM, FGIC
7.000%, 01/01/07.................... 145,000 151,789
Des Plaines, Hospital Facility,
Holy Family Hospital, RB,
ETM, MBIA
7.000%, 01/01/07.................... 145,000 151,789
Development Finance
Authority, Community
Rehabilitation Providers,
RB, Series A
5.375%, 07/01/09.................... 640,000 578,963
5.600%, 07/01/19.................... 1,915,000 1,573,919
Development Finance
Authority, Section 8, RB,
Series A, FHA / MBIA
5.200%, 07/01/08.................... 135,000 133,751
Development Finance
Authority, Debt
Restructure East Saint
Louis, GO
6.875%, 11/15/05.................... 705,000 738,854
Development Finance
Authority, Catholic Health,
RB, Series A, Connie Lee
5.150%, 02/15/06.................... 765,000 759,423
Development Finance
Authority, Fund For Child
Project, RB, Series A
7.400%, 09/01/04.................... 1,405,000 1,412,994
Development Finance
Authority Revenue,
Provena Health, RB,
Series A, MBIA
5.125%, 05/15/23.................... 1,220,000 1,053,519
Du Page County, Community
High School District, GO,
FSA
5.500%, 12/01/14.................... 1,335,000 1,324,360
Educational Facilities,
Authority Revenue
Refunding, Augustana
College, RB
4.600%, 10/01/08.................... 135,000 120,902
5.000%, 10/01/13.................... 280,000 246,176
Fairfield, Economic
Development Authority,
Wayne County Center
Project, RB
6.000%, 12/15/05.................... 410,000 408,807
Glenview, Multi-Family
Housing Revenue, Valley
Towers II Project, RB,
Mandatory Put @ 100,
FNMA/B/
5.200%, 12/01/07.................... $ 350,000 $ 345,842
Granite City, Hospital Facilities
Revenue, RB, ETM
7.000%, 01/01/08.................... 155,000 163,207
Grayslake, Multi-Family
Housing, Country Squire
Apartments Project, RB,
Series A, FHA
6.000%, 06/01/05.................... 685,000 699,988
Greater Peoria, Airport
Authority, GO, AMT
6.500%, 12/01/05.................... 95,000 99,823
6.600%, 12/01/06.................... 430,000 452,493
6.700%, 12/01/07.................... 185,000 196,039
Health Facilities Authority,
Lutheran Social Services,
RB
6.125%, 08/15/10.................... 635,000 592,646
Health Facilities Authority,
Michael Reese Hospital &
Medical Center, RB, ETM
6.750%, 12/01/08.................... 265,000 280,206
Health Facilities Authority,
Midwest Group LTD, RB,
ACA
5.375%, 11/15/08.................... 620,000 613,124
Health Facilities Authority,
Northwestern Medical
Facility Foundation, RB,
MBIA
5.125%, 11/15/28.................... 1,755,000 1,489,662
Health Facilities Authority,
Northwestern Memorial
Hospital Project, RB,
ETM
6.375%, 05/01/03.................... 165,000 168,465
Health Facilities Authority,
Sydney R. Forkosh
Memorial Hospital, RB,
Pre-Refunded @ 100/D/
7.000%, 07/01/02.................... 350,000 361,529
Health Facilities Revenue
Authority, Community
Hospital Of Ottawa
Project, RB
6.750%, 08/15/14.................... 420,000 425,520
Industrial Pollution Control,
Finance Revenue Authority,
Commonwealth Edison
Company Project, RB
5.875%, 05/15/07.................... 755,000 758,624
</TABLE>
See Notes To Financial Statements.
--------------------------------------------------------------------------------
20
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Lake County, Community
United School District, GO,
Series A, FSA
5.375%, 12/01/12................... $1,345,000 $1,330,999
Lake County, Community
United School District, GO,
Series A, FSA/A/
0.000%, 12/01/17................... 6,790,000 2,387,771
Lake County, Community
United School District, GO,
Series C
4.300%, 12/15/10 805,000 711,306
Lake County, Township High
School District Number
113, GO
8.100%, 12/01/12................... 380,000 472,359
Palatine, Tax Increment
Revenue, Dundee Road
Redevelopment Project,
Tax Allocation, AMBAC
5.000%, 01/01/15................... 9,030,000 8,330,356
Quincy, Single Family
Mortgage, RB
6.875%, 03/01/10................ 235,000 239,552
Rockford-Concord Commons,
Housing Facility, Concord
Commons Project, RB,
Series A, FHA
6.150%, 11/01/22................... 1,385,000 1,376,648
5.550%, 11/01/06................... 345,000 347,056
Rockford, Faust Landmark
Apartments, RB, Series A,
AMT, MBIA
5.625%, 01/01/07................... 340,000 343,832
Silvas, Mortgage Revenue,
RB, FHA
4.900%, 08/01/11................... 1,610,000 1,485,515
Silvas, Mortgage Revenue,
RB, FHA
5.200%, 08/01/17................... 1,285,000 1,164,788
Southwestern Development
Authority, Wood River
Township Hospital Project,
RB, ETM
6.875%, 08/01/03................... 125,000 128,670
Upper River Valley
Development Authority,
Waste Recovery Illinois
Project, RB, AMT
5.900%, 02/01/14................... 2,165,000 2,103,860
Woodridge, Multi-Family
Revenue, Hawthorn Ridge
Housing, Series A, RB,
GNMA
5.650%, 12/20/32................... $1,510,000 $ 1,390,227
-----------
40,315,243
-----------
Indiana - 2.66%
Bond Book Special Program
Waste Water Treatment,
RB, Series C
5.200%, 08/01/07.................. 95,000 93,160
5.300%, 08/01/08.................. 220,000 215,976
5.400%, 08/01/09.................. 190,000 187,427
Fort Wayne, Hospital
Revenue Authority,
Parkview Memorial
Hospital, RB, ETM
6.500%, 01/01/05.................. 595,000 611,130
Gary, Mortgage
Redevelopment, Willow
On Clark Apartments, RB,
Series A, AMT, LNMA
4.750%, 08/20/08.................. 220,000 210,806
5.150%, 08/20/13.................. 280,000 261,531
5.400%, 08/20/38.................. 655,000 572,758
Health Facilities Finance
Authority, Kings Daughters
Hospital, RB, Asset
Guaranty
5.000%, 08/15/05.................. 195,000 191,519
5.100%, 02/15/06.................. 290,000 285,157
5.100%, 08/15/06.................. 300,000 294,630
5.250%, 02/15/08.................. 305,000 298,680
5.350%, 08/15/09.................. 330,000 324,476
Health Facility Authority,
Floyd Memorial
Hospital, RB
4.850%, 02/15/06.................. 505,000 474,846
Indianapolis, Economic
Development Authority,
RB, AMT, GNMA
5.350%, 04/20/17.................. 1,270,000 1,175,944
Indianapolis, Industrial
Economic Development
Authority, Knob in the
Woods Project, RB,
Mandatory Put @ 100,
AMT, FNMA/B/
6.375%, 12/01/04.................. 2,530,000 2,653,059
See Notes to Financial Statements.
--------------------------------------------------------------------------------
21
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Lawrence, Multi-Family
Housing, Pinnacle
Apartments Project, RB,
Mandatory Put @ 100,
AMT, FNMA/B/
5.150%, 01/01/08.............. $1,615,000 $ 1,571,993
Lawrence, Multi-Family
Housing, Revenue
Refunding, Pinnacle
Apartments, RB, AMT,
FNMA
5.050%, 01/01/08.............. 345,000 335,989
South Bend, Community
School Building
Corporation Refunding,
Edison, RB, AMBAC
5.125%, 01/15/11.............. 2,510,000 2,422,528
State Health Facility,
Floyd Memorial Hospital, RB
4.800%, 02/15/07.............. 265,000 244,900
4.850%, 02/15/08.............. 255,000 233,590
4.950%, 02/15/09.............. 245,000 224,449
Vigo County, Hospital
Authority, RB, ETM
6.875%, 04/01/04.............. 85,000 88,103
-----------
12,972,651
-----------
Iowa - 0.35%
Dubuque, Hospital Facilities,
Finley Hospital Project,
RB, ETM
6.875%, 01/01/12.............. 450,000 472,905
Financial Authority, Small
Business, Terrace Center
Association LP Project, RB
7.500%, 03/01/22.............. 1,170,000 1,219,351
-----------
1,692,256
-----------
Kansas - 0.87%
Labette & Cowley County,
Single Family Mortgage,
RB, Series A-2, GNMA
7.650%, 12/01/11.............. 155,000 159,810
Manhattan, Central Business
District Redevelopment,
Tax Allocation, Series A,
Asset Guaranty
5.200%, 12/01/03.............. 375,000 375,791
McPherson, Electric Utility
Revenue, RB, Pre-
Refunded @ 100, ETM/D/
5.900%, 03/01/03.............. 1,620,000 1,652,692
Merriam, Hospital Revenue,
Shawnee Mission Medical
Center, RB, ETM
6.900%, 06/01/05.............. 30,000 31,148
Reno County, Single Family
Mortgage, RB, Series B
8.700%, 09/01/11.............. $ 140,000 $ 146,777
Saline County, Residential
Housing Facilities, RB,
Series A
9.500%, 10/01/11.............. 35,000 35,750
Sedgwick & Shawnee
Counties, Mortgage
Backed Securities
Program, RB, Series A-1,
GNMA
4.700%, 12/01/08.............. 765,000 751,505
State Development Finance
Authority, Multi-Family
Housing, Four Seasons
Apartment Project, RB,
AMT, LOC
5.300%, 10/01/07.............. 240,000 233,959
State Development Finance
Authority, Multi-Family
Housing, Four Seasons
Apartment Project, RB,
Mandatory Put @ 100,
AMT, LOC/B/
5.600%, 10/01/07.............. 780,000 758,800
Wichita, Single Family
Mortgage, RB, Series A
7.100%, 09/01/09.............. 105,000 106,686
-----------
4,252,918
-----------
Kentucky - 0.38%
Ashland, Environmental
Import, Allied Chemical
Corporation Project,
RB, ETM
5.800%, 03/01/03.............. 565,000 571,130
Greater Kentuky, Housing
Assistance Corporation,
Section 8, RB, Series C,
FHA / MBIA
5.350%, 07/01/07.............. 350,000 346,689
Lakeland, Wesley Village
Housing Incorporated,
Section 8 Assisted Project,
RB, FHA
7.125%, 11/01/02.............. 140,000 142,253
Owensboro, Electric Light &
Power, RB, ETM
10.500%, 01/01/04............. 190,000 205,569
State Turnpike Authority, RB,
ETM
6.125%, 07/01/07.............. 357,000 366,553
6.625%, 07/01/08.............. 195,000 204,038
----------
1,836,232
----------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Louisiana - 1.83%
Housing Finance Agency,
Malta Square Project, RB,
AMT, GNMA
6.450%, 09/01/27.............. $ 470,000 $ 482,793
Housing Finance Agency,
Single Family Housing, RB,
Series A-1, GNMA/FNMA
4.625%, 06/01/09.............. 290,000 278,130
Iberia, Single Family
Mortgage, RB
7.375%, 01/01/11.............. 380,000 394,201
Jefferson Parish, Hospital
Services District, RB, ETM
7.125%, 01/01/02.............. 140,000 143,718
6.500%, 09/01/38.............. 1,220,000 1,253,135
Public Facility Authority,
Single Family Mortgage,
RB, Series C
8.450%, 12/01/12.............. 232,452 238,256
Public Facility Authority,
Single Family Mortgage,
RB, Series A
7.375%, 10/01/12.............. 250,000 255,205
Public Facilities Authority,
Public Health & Education,
RB, Series A-1, Mandatory
Put @ 100, AMBAC/B/
5.000%, 06/01/02.............. 635,000 632,485
Public Facilities Authority,
Multi-Family Housing,
Oakleigh Apartments
Project, RB, AXA
5.750%, 03/15/03.............. 225,000 226,346
5.850%, 03/15/04.............. 235,000 235,759
5.950%, 03/15/05.............. 250,000 250,000
Public Facility Authority,
Multi-Family Housing,
Beau Terre Project, RB,
Mandatory Put @ 100,
FNMA/B/
5.800%, 06/01/05.............. 560,000 567,482
Public Facilities Authority,
Multi Family Housing,
Edgewood Apartments,
RB, Mandatory Put @ 100,
FNMA/B/
5.800%, 06/01/05.............. 3,950,000 4,002,772
----------
8,960,282
----------
Maine - 0.06%
Bucksport, Solid Waste
Disposal Revenue, Champ
International Corporation
Project, RB
6.250%, 05/01/10.............. $ 100,000 $ 100,808
Finance Revenue Authority,
Electronic Rate
Stabilization, RB, AMT, FSA
5.200%, 07/01/18.............. 195,000 177,220
----------
278,028
----------
Maryland - 0.61%
Annapolis, Economic
Development, Saint John's
College Facility, RB
4.700%, 10/01/03.............. 140,000 135,863
4.800%, 10/01/04.............. 100,000 96,345
5.000%, 10/01/06.............. 170,000 162,872
5.000%, 10/01/07.............. 180,000 170,676
5.000%, 10/01/08.............. 185,000 173,711
Baltimore County, Mortgage
Revenue, Three Garden
Village Project, RB,
Series A, FHLMC
4.800%, 01/01/13.............. 450,000 412,241
Cecil County, Economic
Development Authority,
Northeast Plaza Association,
Series A
6.875%, 01/15/08.............. 1,280,000 1,287,091
Cecil County, Economic
Development Authority,
Northeast Plaza
Association, Series B
6.875%, 01/15/10.............. 385,000 384,596
Frederick County, Economic
Redevelopment Authority,
Northhampton, RB,
Series A, FHA
5.900%, 02/01/05.............. 175,000 178,906
----------
3,002,301
----------
Massachusetts - 3.09%
Boston, Industrial
Development Finance
Authority, North End
Community, RB. Series A,
FHA
6.450%, 08/01/37.............. 1,480,000 1,494,933
Boston, Deutsches
Altenheim, RB, Series A,
FHA
5.950%, 10/01/18.............. 580,000 573,829
See Notes to Financial Statements.
--------------------------------------------------------------------------------
23
<PAGE>
Municipal Bond
---------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Dartmouth, Housing Development
Corporation, CrossRoads Apartments,
RB, Series A, MBIA/FHA
4.850%, 07/01/09............................... $ 470,000 $ 452,112
Educational Loan Authority, RB,
Series A, AMT, MBIA 7.250%, 01/01/09........... 440,000 453,165
Massachusetts State, Development Finance
Agency, Human Services Provider, Seven
Hills Foundation & Affiliate, RB, Asset
Guaranty 4.850%, 09/01/13...................... 310,000 274,325
Massachusetts State, Industrial Finance
Agency, Assisted Living Facilities, Arbors
at Taunton, RB, AMT, GNMA 5.300%, 06/20/19..... 410,000 371,411
Massachusetts State, Industrial Finance Agency,
Museum Revenue, Norman Rockwell Stockbridge,
RB, GNMA 8.125%, 07/01/11...................... 2,695,000 2,802,988
State Development Finance Agency, Worchester
Redevelopment Authority, RB, Asset Guaranty
6.000%, 06/01/24............................... 1,050,000 1,076,660
State Health & Education Authority, Beth
Isreal Hospital, RB, ETM 5.750%, 07/01/06...... 70,000 71,026
State Health & Educational Facilities Authority,
RB, 8.000%, 07/01/00........................... 20,000 20,125
State Industrial Finance Agency, Draper
Place Project, RB, AMT, GNMA 5.400%, 08/20/12.. 315,000 295,347
6.450%, 08/20/39............................... 5,490,000 5,485,443
State Housing Finance Agency, RB, Series A,
AMT, MBIA 6.125%, 12/01/11..................... 175,000 172,184
State Industrial Finance Agency,
Higher Education, Hampshire College
Project, RB 5.800%, 10/01/17................... 1,655,000 1,525,430
----------
15,068,978
----------
Michigan - 1.05%
Avondale, School District,
GO 5.800%, 05/01/07............................ $ 135,000 $ 137,048
Battle Creek, Economic Development Authority,
Kellogg Company Project, RB 5.125%, 02/01/09... 315,000 310,716
Detroit, Water Supply, RB, ETM 8.875%, 01/01/05. 425,000 463,726
Dickinson County, Economic Development
Authority, Champion International Corporation,
RB 6.550%, 03/01/07............................ 560,000 570,926
Grand Rapids Charter Township, Porter Hills
Obligated Group, RB 5.200%, 07/01/14........... 890,000 797,796
Kalamazoo, Economic Development Corporation,
Revenue Refunding, RB 5.750%, 05/15/05......... 100,000 98,498
Novi, Water Supply & Sewer Disposal System,
RB, MBIA 5.000%, 07/01/19...................... 800,000 713,704
Petoskey, Hospital Finance Authority, RB, ETM
6.700%, 03/01/07........................... 560,000 582,467
Saginaw, Hospital Finance Authority, Saint Luke
Hospital, RB, ETM 7.500%, 11/01/10............. 205,000 225,277
State Building Authority, RB, Series II, ETM,
MBIA 7.400%, 04/01/01.......................... 60,000 61,114
State Hospital Finance Authority, Saint Joseph
Mercy Hospital Project, RB, ETM
7.000%, 07/01/05............................... 350,000 365,253
State Hospital Finance Authority, William
Beaumont Hospital Project, RB, ETM
6.200%, 01/01/03............................... 140,000 142,568
State Housing Development Authority, RB,
Series D, AMT, AMBAC
5.050%, 12/01/07............................... 95,000 93,039
5.150%, 12/01/08............................... 95,000 93,175
5.250%, 12/01/09............................... 95,000 92,553
5.350%, 12/01/10............................... 95,000 94,555
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24
<PAGE>
Municipal Bond
---------------------------------------------------------------------------
Schedule of Investments April 30,2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
State Strategic Fund Obligation, The
Oxford Institute, RB, Series A, ETM
7.875%, 08/15/05................................. $ 250,000 $ 264,838
----------
5,107,253
----------
Minnesota - 0.26%
Cambridge, Mortgage Revenue, Health Care
Center, RB, Series A, GNMA.
5.400%, 11/20/05................................. 355,000 355,550
Dakota County, Housing & Redevelopment
Authority, RB, AMT, FNMA / GNMA
5.550%, 10/01/02................................. 100,000 100,908
5.750%, 10/01/04................................. 130,000 131,866
Monticello, Pollution Control Authority,
Northern States Power Company, RB
5.375%, 02/01/03................................. 305,000 305,177
Rochester, Saint Mary's Hospital, RB, ETM
5.750%, 10/01/07................................. 350,000 355,124
---------
1,248,625
---------
Mississippi - 2.68%
Business Finance Corporation, Landau Uniforms
Project, RB, AMT, LOC
5.450%, 09/01/01................................. 215,000 215,082
5.600%, 09/01/02................................. 225,000 224,678
5.800%, 09/01/04................................. 260,000 257,839
5.900%, 09/01/05................................. 265,000 262,922
Business Finance Corporation, Millsaps College
Project, Series B, MBIA
5.000%, 11/01/19................................. 880,000 784,256
Business Financial Corporation, Mississippi
Retirement Facilities Revenue Refunding,
Aldersgate Community, RB, GNMA
5.450%, 05/20/34................................. 1,160,000 1,026,471
Business Financial Corporation, Mississippi
Retirement Facilities Revenue Refunding,
Wesley Manor, RB,Series A, GNMA
5.450%, 05/20/34................................. 1,455,000 1,287,515
Corinth & Alcorn County, Magnolia Regional
Health Center, RB, Series A
5.000%, 10/01/08................................. 1,275,000 1,178,062
Corinth & Alcorn County, Magnolia Regional
Health Center, RB, Series B
5.125%, 10/01/10................................. $ 840,000 $ 712,295
Health Facilities Finance Authority, Kings
Daughters Hospital, RB, Asset Guaranty
5.500%, 04/01/18................................. 1,345,000 1,246,640
Home Corporation, Single Family Mortgage,
Access Program, RB, Series A, AMT, GNMA
5.000%, 06/01/04................................. 175,000 172,641
Home Corporation, Single Family Mortgage,
RB, Series I, AMT, GNMA
7.375%, 06/01/28................................. 2,255,000 2,398,035
Home Corporation, Single Family Mortgage,
RB, Series A, GNMA
5.125%, 12/01/17................................. 570,000 562,693
Jackson, Mississippi, Housing Authority,
Multi-Family Revenue, The Woodlands, RB,
Series A, AMT, FSA
5.300%, 04/01/19................................. 490,000 438,232
Jackson, Mississippi, Housing Authority,
Multi-Family Revenue, Elton Park Apartments,
RB, Series B, Mandatory
Put @100, AMT, QBE/B/
5.400%, 04/01/19................................. 1,080,000 973,361
Perry County, Pollution Control Revenue,
Leaf River Forest Project, RB
5.200%, 10/01/12................................. 1,475,000 1,336,896
----------
13,077,618
----------
Missouri - 4.81%
Boone County, Industrial Development Authority,
Otscon Incorporated Project, RB, Mandatory
Put @100, AMT, LOC/B/
5.125%, 05/01/05................................. 1,815,000 1,735,449
Bridgeton, Industrial Development Authority,
Mizpah Assisted Living, RB, GNMA
5.250%, 12/20/19................................. 170,000 153,394
Joplin, Industrial Development, Tri State
Osteopathic Hospital, Pre-Refunded @102/D/
8.250%, 12/15/01................................. 6,040,000 6,450,720
See Notes to Financial Statements.
--------------------------------------------------------------------------------
25
<PAGE>
Municipal Bond
------------------------------------------------------------------------------
Schedule of Investments April 30,2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Kansas City, Industrial Development Authority,
Coves North Duplexes Project, RB, AMT,
Mandatory Put @ 100, FNMA/B/
5.600%, 09/01/05................................ $3,440,000 $ 3,482,415
Kansas City, Industrial Development Authority,
Royal Woods Apartment Project, RB, AMT,
Mandatory Put @ 100, FNMA/B/
5.600%, 01/01/10................................ 5,840,000 5,758,123
Pacific & Franklin Counties, Industrial
Development Authority, Clayton Corporation
Project, RB, AMT, LOC
5.450%, 05/01/02................................ 360,000 360,742
5.950%, 05/01/07............................ 720,000 728,208
6.200%, 05/01/12............................ 720,000 724,867
6.450%, 05/01/17............................ 720,000 726,444
State Developmet Finance Board, Greater St.
Louis Project, RB, LOC
4.900%, 09/01/10................................ 685,000 625,631
State Development Financial Board, Recreation
Facilities Revenue, YMCA, Greater St. Louis,
RB, Series A, LOC
4.750%, 09/01/07................................ 170,000 161,075
State Housing Development Community, Single
Family Mortgage, RB, AMT, GNMA
6.625%, 12/01/17................................ 265,000 269,569
St. Charles County, Industrial Development
Authority, Health Care Facilities Revenue,
Garden View Care Center Project,
RB, AMT, LOC
5.400%, 11/15/16................................ 1,480,000 1,239,559
St Louis County, Regional Covention & Sports
Center RB, Series B
6.500%, 08/15/01................................ 585,000 595,325
St. Louis, Land Clearance Redevelopment
Authority, Westminsters Place Apartments, RB,
Series A, Mandatory Put @ 100, FNMA/B/
5.950%, 04/01/07................................ 450,000 464,643
-----------
23,476,164
-----------
Montana - 0.65%
Great Falls, Multi-Family Housing, Autumn Run
Apartments Project, RB, Mandatory Put @ 100,
AMT, LOCB
4.900%, 01/02/08................................ $2,860,000 $ 2,751,749
Missoula County, Community Hospital, ETM
7.125%, 06/01/07................................ 398,000 420,809
-----------
3,172,558
-----------
Nebraska - 1.02%
Clay County, Industrial Development Revenue,
Hybrids Cooperative Project, RB, AMT LOC
5.250%, 03/15/14................................ 1,610,000 1,454,989
Fillmore County, Industrial Development
Revenue, O'Malley Grain Incorporated
Project, RB, AMT, LOC
5.000%, 12/01/10................................ 45,000 41,508
5.000%, 12/01/11................................ 180,000 163,985
5.100%, 12/01/12................................ 135,000 121,669
5.200%, 12/01/13................................ 195,000 175,256
Investment Finance Authority, Multi-Family
Housing, Tara Hills Villa, RB, FNMA
4.875%, 01/01/08................................ 530,000 515,255
Investment Finance Authority, Multi-Family
Housing, Cheney Apartments, RB, Series A,
Mandatory Put @ 100, FNMA/B/
5.500%, 12/01/05................................ 1,510,000 1,517,852
Nebraska, Help, Revenue Student Loan,
Program-B, RB, AMT, MBIA
5.250%, 06/01/02................................ 380,000 380,278
Woolworth, Housing Mortgage Development
Corporation, Section 8 Assisted Project, RB,
MBIA 5.350%, 07/01/21........................... 690,000 623,560
----------
4,994,352
----------
Nevada - 0.70%
Housing Division, Single Family Mortgage,
RB, Series B-1
4.950%, 04/01/12................................ 465,000 443,610
See notes to Financial Statements.
--------------------------------------------------------------------------------
26
<PAGE>
Municipal Bond
--------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Housing Division,
Single Family Program, RB,
Series A, AMT
6.350%, 10/01/07................... $ 575,000 $ 570,544
Housing Division, Multi-Unit
Housing, Campaige, RB,
Series A, AMT, LOC
5.450%, 10/01/18................... 550,000 509,585
Multi Unit Housing, Saratoga
Palms, RB, AMT, FNMA
5.900%, 04/01/06................... 430,000 443,614
State Housing Division,
Single Family Mortgage,
RB, Series B, AMT
6.450%, 10/01/07................... 445,000 451,760
State Housing Division,
Single Family Mortgage,
RB, Series E, AMT
6.000%, 10/01/09................... 330,000 318,938
State Housing Division,
Single Family Mortgage, RB,
Series C-1, AMT
5.450%, 04/01/10................... 340,000 329,355
State Housing Division,
Austin Crest Project, RB,
AMT, FNMA,
5.500%, 10/01/09................... 360,000 356,854
-----------
3,424,260
-----------
New Hampshire - 0.45%
Higher Education & Health
Facility, Kendal at Hanover
Issue, RB, LOC
5.200%, 10/01/06................... 625,000 611,506
5.300%, 10/01/07................... 475,000 464,617
Higher Educational & Health
Authority, Franklin Pierce
College, RB, ACA
4.900%, 10/01/08................... 120,000 112,633
Higher Educational & Health
Authority, Franklin Pierce
College, RB, ACA
5.000%, 10/01/09................... 375,000 353,696
Higher Education & Health
Authority, River College
4.650%, 01/01/04................... 125,000 120,118
4.750%, 01/01/05................... 130,000 123,704
4.850%, 01/01/07................... 130,000 121,742
4.900%, 01/01/08................... 145,000 135,056
New Hampshire, Higher
Educational & Health
Facilities Authority
Revenue, Rivier
College, RB
5.550%, 01/01/18.................... 185,000 165,921
-----------
2,208,993
-----------
New Jersey - 0.97%
Church Street Corporation,
Keansburg Elderly
Housing, Series 1994,
HUD Section 8 Assistance
5.000%, 03/01/01................... $ 55,000 $ 54,969
Deptford Township, GO
5.600%, 10/15/06................... 140,000 142,961
5.850%, 10/15/07................... 145,000 150,113
Economic Development
Authority, Cadbury
Corporation Project, RB,
Series A, ACA
4.600%, 07/01/02................... 160,000 157,762
4.750%, 07/01/03................... 230,000 225,216
4.850%, 07/01/04................... 265,000 258,248
Economic Development
Authority, RB, Series H-2,
AMT, LOC
5.000%, 10/01/05.................... 390,000 387,364
Economic Development
Authority Revenue
Adjusted, Reformed
Church, RB, Series B
4.950%, 12/01/28.................... 125,000 120,986
Economic Development
Authority Revenue,
RB, Series B, AMT, LOC
5.300%, 12/01/07.................... 175,000 174,451
Essex County, Utilities
Authority, Solid Waste
Revenue, RB, Series A,
FSA
4.800%, 04/01/14.................... 800,000 726,960
Gloucester County, Import
Authority, Electric Mobility
Project, RB, AMT, County
Guaranteed
4.250%, 11/01/01.................... 145,000 143,624
4.500%, 11/01/03.................... 155,000 151,513
4.600%, 11/01/04.................... 105,000 102,095
4.700%, 11/01/05.................... 105,000 101,868
4.750%, 11/01/06.................... 110,000 106,061
4.800%, 11/01/07.................... 115,000 110,225
5.000%, 11/01/08.................... 125,000 121,293
5.000%, 11/01/10.................... 215,000 206,009
Secaucus Municipal Utilities
Authority, Sewer Revenue,
RB, ETM
6.875%, 12/01/08.................... 30,000 31,776
State Building Authority, RB,
ETM
9.625%, 02/01/03.................... 320,000 343,587
See Notes to Financial Statements.
--------------------------------------------------------------------------------
27
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
State Education Facility
Authority, Caldwell
College, RB, Series A
7.250%, 07/01/25.................. $ 885,000 $ 912,001
-----------
4,729,082
-----------
New Mexico - 0.74%
Albuquerque, Class B-2,
CMO, FGIC/A/
0.000%, 05/15/11................. 4,342,000 1,928,326
Bernalillo County, Multi-
Family Housing, Sunchase
Apartments, Series A,
Mandatory Put @100,
AXA/B/
5.800%, 11/01/06................. 1,130,000 1,143,820
Mortgage Finance Authority,
Single Family Mortgage
Program, RB, FHLMC /
FNMA / GNMA
5.500%, 07/01/17................. 170,000 161,473
5.600%, 07/01/28................. 365,000 336,329
Santa Fe, Single Family
Mortgage, RB
8.450%, 12/01/11................. 55,099 57,018
-----------
3,626,966
-----------
New York - 6.19%
Albany, Housing Authority,
Lark Drive Associates, RB,
AMT, LOC
5.200%, 12/01/13................. 40,000 36,947
5.400%, 12/01/18................. 40,000 36,208
5.500%, 12/01/28................. 265,000 237,366
Amherst, Industrial
Development Agency,
Multi Service Rink
Complex, RB, ETM, LOC
4.750%, 10/01/02................. 155,000 154,468
5.180%, 10/01/06................. 265,000 264,846
Capital District Youth Center
Lease, RB, LOC
6.000%, 02/01/17................. 375,000 373,391
Dutchess County, Solid
Waste Systems, RB,
Series C, AMT, MBIA
5.000%, 01/01/10................. 2,255,000 2,159,681
Nassau County, General
Improvement, GO, Series
X, AMBAC
5.000%, 11/01/06................. 160,000 159,035
New York City, Series B, GO,
AMBAC
7.250%, 08/15/07................. 2,975,000 3,339,765
New York City, GO, MBIA
8.000%, 08/01/06................. 2,985,000 3,426,273
New York City, Industrial
Development Agency,
College of Aeronautics
Project
5.000%, 05/01/06................. $ 345,000 $ 332,176
5.200%, 05/01/09................. 205,000 196,185
Oneida County, Industrial
Development Agency,
Mohawk Valley, RB,
Series A, FSA
4.550%, 02/01/04................. 635,000 621,240
4.650%, 02/01/05................. 540,000 526,473
4.700%, 02/01/06................. 685,000 663,786
5.200%, 02/01/13................. 755,000 725,661
5.000%, 01/01/13................. 765,000 717,731
Oneida County, Industrial
Development Agency,
Mohawk Valley, RB,
Series B, FSA
5.000%, 01/01/13................. 1,230,000 1,153,998
Onondaga County, Industrial
Development Agency,
Civic Facility Revenue,
Lemoyne College Project,
RB, Series A
5.000%, 03/01/07................. 180,000 170,392
5.500%, 03/01/14................. 410,000 385,367
State Dormitory Authority,
Long Island University, RB,
Pre-Refunded @102, Asset
Guaranty/D/
6.000%, 09/01/05................. 2,370,000 2,436,550
State Dormitory Authority,
Capital Appreciation,
Prerefunded City, RB,
Series C, ETM, FSA/A/
0.000%, 07/01/04................. 105,000 82,892
State Dormitory Authority,
Lease Revenue, State
University Dormitory
Facilities, RB, Series A,
AMBAC
5.250%, 07/01/12................. 265,000 260,307
State Dormitory Authority,
Saint Mary's Hospital
Amsterdam, RB, MBIA
5.250%, 05/01/05................. 1,010,000 1,015,292
State Dormitory Authority,
Hunts Point Multi Service
Center, RB
5.625%, 07/01/22................. 2,255,000 2,133,365
State Dormitory Authority,
Lutheran Nursing Home,
RB, AMBAC / FHA
5.125%, 02/01/18................. 1,000,000 933,240
See Notes to Financial Statements.
--------------------------------------------------------------------------------
28
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
State Power Authority, RB,
Series C, ETM
9.500%, 01/01/01................. $ 5,000 $ 5,168
State Urban Development
Corporation, Correctional
Facility, RB, AMBAC
5.625%, 01/01/07................. 3,835,000 3,907,942
Syracuse, Housing Authority,
Loretto Rest Homes, RB,
Series A, FHA
5.000%, 08/01/07................. 1,805,000 1,775,777
Triborough Bridge & Tunnel
Authority, Convention
Center Project, RB,
Series E
7.250%, 01/01/10................. 355,000 391,558
UFA Development
Corporation, Loretto Utica
Project, RB, FHA
5.150%, 07/01/03................. 650,000 650,702
Ulster County, Industrial
Development Agency,
Kingston Hospital Project,
RB, LOC
4.400%, 11/15/01................. 230,000 227,776
4.500%, 11/15/02................. 245,000 239,982
Yates County, Industrial
Development Agency,
Soldiers & Sailors
Memorial Hospital, RB,
FHA
5.500%, 02/01/19................. 560,000 532,297
-----------
30,273,837
-----------
North Carolina - 0.03%
Wake County, North Carolina,
Hospital Revenue, RB,
ETM
6.250%, 01/01/08................. 165,000 170,920
-----------
North Dakota - 0.10%
State Housing Financial
Agency Revenue, Housing
Finance Program, RB,
Series D, AMT
4.550%, 07/01/08................. 110,000 104,129
4.850%, 07/01/11................. 130,000 122,984
4.950%, 01/01/12................. 130,000 123,204
5.000%, 01/01/13................. 125,000 117,706
-----------
468,023
-----------
Ohio - 3.05%
Capital Corporation for
Housing Mortgage
Revenue, Section 8
Assisted Project, RB,
Series E, FHA / MBIA
5.700%, 01/01/05................. 250,000 253,350
Capital Housing Corporation
Mortgage, Georgetown
Section 8, RB, Series A,
FHA
6.625%, 07/01/22................. $ 935,000 $ 962,592
Capital Corporation for
Housing Mortgage
Revenue, Section 8
Assisted Project, RB,
Series C, FHA / MBIA
5.100%, 07/01/09................. 1,465,000 1,437,561
Capital Corporation for
Housing Mortgage
Revenue, Section 8
Assisted Project, RB,
Series A, FHA / MBIA
4.500%, 01/01/03................. 135,000 133,056
Cuyahoga County, Mortgage
Revenue, RB, AMT, GNMA
5.200%, 09/20/09................. 205,000 201,052
Cuyahoga County, Multi-
Family Housing, Water
Street Association, RB,
AMT, GNMA
6.250%, 12/20/36................. 975,000 967,961
Franklin County, Ohio,
Housing Revenue,
Rosewind Limited
Partnership, AMT, RB
4.900%, 01/01/02................. 175,000 174,627
Hancock County, Multi-
Family Housing, Crystal
Glen Apartments, RB,
Series C, AMT, LOC
5.050%, 01/01/10................. 915,000 870,504
Jefferson County, GO, Asset
Guaranty
6.625%, 12/01/05................. 240,000 250,886
Lorain County, Hospital
Finance Authority, Humility
Of Mary Health Care, RB,
Series D, ETM
7.125%, 12/15/06................. 825,000 872,083
Lorain County, Hospital
Finance Authority, Humility
Of Mary Health Care, RB,
Series B, ETM
7.200%, 12/15/11................. 755,000 798,971
Lorain County, Hospital
Finance Authority, Humility
Of Mary Health Care, RB,
Series A, Pre-Refunded @
100/D/
5.900%, 06/15/05................. 4,520,000 4,666,267
See Notes to Financial Statements.
--------------------------------------------------------------------------------
29
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Lorain County, Health Care
Facilities, Kendal at
Oberlin, RB, Series B,
Optional Put @100/C/
4.750%, 02/01/02..................... $ 1,175,000 $ 1,142,605
Lucas-Palmer Housing
Development Corporation,
Palmer Gardens, RB,
Series A, MBIA/FHA
5.900%, 07/01/07..................... 225,000 229,723
Sandusky County, Ohio,
Health Care Facilities
Revenue, Bethany Place
Retirement Center Project,
RB, FNMA
5.150%, 07/01/09..................... 90,000 87,593
Stark County, Health Care
Facility, Rose Land
Incorporated Project, RB,
GNMA / FHA
5.300%, 07/20/18..................... 850,000 777,291
5.350%, 07/20/23..................... 940,000 845,004
State Pollution Control RB,
General Motors
Corporation Project
6.500%, 03/01/06..................... 185,000 188,885
State Water Development
Authority, Pollution Control
Facilities Revenue, Republic
Steel Project, RB, ETM
6.375%, 06/01/07..................... 35,000 36,168
-----------
14,896,179
-----------
Oklahoma - 0.93%
Cleveland County, Home
Loan Authority, Single
Family Mortgage,
Series 1992
8.375%, 08/01/12..................... 840,000 869,156
Grand River, Dam Authority,
RB, ETM
6.250%, 11/01/08..................... 1,935,000 1,990,302
Housing Finance Agency,
Multi-Family Housing,
Northpark & Meadowlane
Project, RB, FNMA
5.100%, 12/01/07..................... 285,000 277,815
McAlester, Public Works
Authority, RB, ETM, FSA
8.250%, 12/01/04..................... 115,000 130,132
8.250%, 12/01/05..................... 560,000 646,962
8.250%, 12/01/06..................... 145,000 170,643
Payne County, Home Finance
Authority, Single Family
Mortgage, RB, Series A
8.625%, 03/01/11..................... 180,000 186,169
Tulsa, Municipal Airport
Travel Revenue, RB, AMT
7.600%, 12/01/30..................... $ 280,000 $ 286,987
-----------
4,558,166
-----------
Oregon - 0.23%
Cow Creek Band, Umpqua
Tribe of Indians, Oregon
Revenue, RB, Series B,
144A, AMBAC
5.100%, 07/01/12..................... 880,000 832,691
State Economic Development
Communication, Economic
& Industrial Development
Revenue, Globe-Union, RB
6.250%, 04/01/03..................... 160,000 158,797
State Health Housing
Educational & Cultural
Facilities Authority,
Cedarwest Housing, RB,
Series A, AMT, LOC
4.650%, 01/02/08..................... 145,000 136,489
-----------
1,127,977
-----------
Pennsylvania - 16.40%
Aliquippa Beaver County,
Asset Guaranty, GO,
Partially ETM
8.250%, 09/15/01..................... 395,000 406,799
Allegheny County, Hospital
Development Authority,
North Hills Passavant
Hospital, RB, ETM
6.750%, 07/01/05..................... 245,000 254,655
Allegheny County, Hospital
Development Authority,
Allegheny General Hospital
Project, RB, Series A, MBIA
6.200%, 09/01/15..................... 2,820,000 2,846,170
Allegheny County, Hospital
Development Authority,
Health Center - UPMC
Health Systems, RB, MBIA
4.650%, 11/01/09..................... 1,690,000 1,553,651
Allegheny County, Hospital
Development Authority,
Health Center-UPMC
Health Systems, RB, MBIA
5.000%, 11/01/23..................... 1,420,000 1,207,469
Allegheny County, Industrial
Development Authority,
HVL Plaza Project, RB,
AMT, LOC
6.000%, 10/01/04..................... 755,000 743,788
Allegheny County, Industrial
Development Authority,
RB, Series A
6.700%, 12/01/20..................... 320,000 319,264
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
30
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Allegheny County,
Residential Finance
Authority, Single Family
Mortgage, RB,
Series CC-1, GNMA
5.200%, 05/01/17..................... $ 595,000 $ 552,225
Allegheny County,
Residential Finance
Authority, Single Family
Mortgage, RB,
Series CC-2, GNMA
5.200%, 05/01/17..................... 280,000 259,871
Allegheny County,
Residential Finance
Authority, Single Family
Mortgage, RB,
Series DD-1, AMT, GNMA
4.850%, 05/01/08..................... 155,000 149,398
Allegheny County,
Residential Finance
Authority, Single Family
Mortgage, RB, GNMA
6.500%, 11/01/14..................... 230,000 230,370
Allentown, Hospital
Authority, Sacred Heart
Hospital of Allentown, RB
6.200%, 11/15/03..................... 325,000 327,418
Beaver County, Pennsylvania,
Industrial Development
Authority, Health Care
Revenue Refunding, RB,
GNMA
4.850%, 05/20/10..................... 2,515,000 2,461,355
Berks County, Municipal
Authority, Health Care
Pooled Financing
Project, RB
5.000%, 03/01/28..................... 1,200,000 959,772
Berks County,
Redevelopment Authority,
Multi-Family Revenue,
Woodgate Associate
Project, RB, Series A, FNMA
5.150%, 01/01/19..................... 1,610,000 1,435,814
Bucks County, Saint Mary's
Hospital Authority, RB, ETM
6.625%, 07/01/04..................... 75,000 77,429
Chester County, Health &
Educational Facility
Authority, Barclay Friends
Project, RB, Series B,
Mandatory Put @ 100,
LOC/B/
4.600%, 08/01/02..................... 2,445,000 2,390,648
Chester County, Health &
Education Facility,
Immaculata College, RB
4.500%, 10/15/00..................... $ 195,000 $ 194,569
4.650%, 10/15/01..................... 170,000 168,446
4.750%, 10/15/02..................... 230,000 225,734
4.850%, 10/15/03..................... 215,000 209,541
4.900%, 10/15/04..................... 270,000 261,298
5.000%, 10/15/06..................... 265,000 253,152
5.000%, 10/15/07..................... 310,000 293,700
5.100%, 10/15/08..................... 120,000 113,672
5.125%, 10/15/09..................... 230,000 216,651
5.300%, 10/15/11..................... 280,000 262,500
Clearfield, Hospital Revenue
Authority, Clearfield
Hospital Project, RB
6.875%, 06/01/16..................... 920,000 916,909
Cumberland County,
Municipal Revenue
Authority, Presbyterian
Homes Project, RB
6.000%, 12/01/26..................... 1,210,000 1,028,306
Dauphin County, General
Authority, WW15 Term,
RB, Mandatory Tender @
100/B/
6.850%, 06/01/09..................... 525,000 538,991
Delaware County, College
Revenue Authority, RB
Series B
4.750%, 10/01/06..................... 200,000 185,966
4.850%, 10/01/07..................... 205,000 190,138
4.950%, 10/01/08..................... 345,000 319,166
5.500%, 10/01/19..................... 2,675,000 2,349,988
Delaware County, Housing
Authority, Dunwoody
Village Project, RB
5.625%, 04/01/09..................... 130,000 128,071
Delaware County, Multi-
Family Redevelopment
Revenue Authority,
Chester Heights
Association, RB, Series A,
FNMA
5.150%, 01/01/19..................... 3,315,000 2,956,350
Delaware River Port
Authority, RB, ETM
6.500%, 01/15/11..................... 135,000 142,394
Erie, Higher Education
Building Authority,
Mercyhurst College
Project, RB
5.750%, 03/15/12..................... 110,000 106,770
5.850%, 03/15/17..................... 325,000 304,902
</TABLE>
31
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
Erie, Higher Education
Building Authority,
Mercyhurst College
Project, RB,
5.750%, 03/15/13........$1,370,000 $ 1,319,269
Erie, Higher Education
Building Authority,
Mercyhurst College
Project, RB
5.750%, 03/15/13........ 600,000 577,782
Erie, Higher Education
Building Authority,
Gannon University
Project, RB, Series E
5.200%, 07/15/16........ 800,000 702,760
Falls Township, Hospital
Authority, Delaware Valley
Medical Center, RB, FHA
6.900%, 08/01/11........ 2,375,000 2,428,153
Fayette County, Hospital
Authority, Uniontown
Hospital, RB, Connie Lee
Insured
5.200%, 06/15/04........ 210,000 210,063
5.400%, 06/15/06........ 845,000 848,879
5.450%, 06/15/07........ 450,000 452,606
5.550%, 06/15/08........ 1,070,000 1,081,075
5.650%, 06/15/09........ 1,135,000 1,151,151
Franklin County, Industrial
Development Authority,
Hospital Revenue
Refunding, RB, AMBAC
5.000%, 07/01/08........ 205,000 198,178
Hampton Township, GO
6.300%, 06/01/02........ 400,000 403,624
Housing Finance Agency,
Rental Housing, RB,
FNMA
5.150%, 07/01/03........ 305,000 303,972
6.500%, 07/01/23........ 3,945,000 3,974,548
Housing Finance Agency,
Single Family Mortgage,
RB, Series 65A, AMT
4.600%, 10/01/08........ 145,000 137,809
Housing Finance Agency,
Single Family Mortgage,
RB, Series 1991-31A,AMT
7.000%, 10/01/05........ 175,000 179,303
Housing Finance Agency,
Single Family Mortgage,
RB, Series 64, AMT/A/
0.000%, 04/01/30........ 1,575,000 810,905
Jefferson County, Municipal
Authority, RB, ETM, MBIA
7.000%, 12/01/02........ 70,000 71,992
Lancaster, Sewer Authority,
RB, ETM
6.000%, 04/01/12........ $ 50,000 $ 51,876
Lebanon County, Good
Samaritan Hospital
Authority, RB, ETM
6.800%, 11/01/01........ 10,000 10,203
Lehigh County, General
Purpose Authority,
Muhlenberg Hospital
Center, RB, ETM
4.800%, 07/15/00........ 320,000 320,147
4.800%, 07/15/00........ 170,000 170,078
Monroeville, Hospital
Authority, East Suburban
Health Center Project, RB,
Pre-Refunded @ 100/D/
7.600%, 07/01/04........ 835,000 880,032
Montgomery County,
GO, ETM
9.000%, 08/15/04........ 225,000 241,261
Montgomery County, Higher
Education Authority,
Waverly Heights
Project, RB
5.000%, 01/01/03........ 230,000 225,789
Montgomery County,
Industrial Development
Authority, ECRI
Project, RB
6.400%, 06/01/03........ 285,000 281,691
Montgomery County,
Industrial Development
Authority, Meadowood
Corporation Project, RB,
Series A, Pre-Refunded @
102/D/
10.250%, 12/01/00....... 1,875,000 1,971,000
Montgomery County,
Industrial Development
Authority RB, BMHR
Associated Project, LOC
6.750%, 11/15/04........ 185,000 191,691
Mount Lebanon, Hospital
Authority, RB, ETM
7.000%, 07/01/06........ 115,000 121,066
Northampton County,
Industrial Development
Authority, Strawbridge &
Clothier Project, RB, ETM
7.200%, 12/15/01........ 165,000 169,610
See Notes to Financial Statements.
-------------------------------------------------------------------------------
32
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
Philadelphia, Hospital &
Higher Education Facilities
Authority Revenue,
Temple University
Childrens Medical, RB
4.400%, 06/15/01........ $ 65,000 $ 64,052
Philadelphia, Industrial
Development Authority,
Elmira Jefferies Memorial
Home, RB, FHA
4.750%, 02/01/08........ 430,000 393,007
Philadelphia, Authority For
Industrial Development,
Simpson Housing Project
5.000%, 08/15/09........ 240,000 215,443
5.000%, 08/15/10........ 290,000 255,612
5.100%, 08/15/11........ 240,000 209,383
Philadelphia, Saint Agnes
Medical Center Project,
RB, ETM
6.750%, 08/15/01........ 95,000 95,380
Philadelphia, Housing
Redevelopment Authority,
Multi-Family Housing,
RB, HUD
5.450%, 02/01/23........ 795,000 724,515
Philadelphia, Redevelopment
Authority, First Lien
Mortgage, Series A
6.500%, 01/01/29........ 700,000 636,111
Philadelphia, Industrial
Development Authority,
Jeanes Physicians' Office,
RB, Series A
9.375%, 07/01/10........ 640,000 639,859
Philadelphia Hospital &
Higher Education Auhority,
Health System, RB, Series
A, FHA
5.375%, 01/01/28........ 2,690,000 2,386,541
Philadelphia, Hospitals &
Higher Education, RB,
ACA
6.200%, 05/01/11........ 1,550,000 1,554,604
Pittsburgh, Urban
Redevelopment Authority,
Center Triangle Tax
Increment, Series A, LOC
5.125%, 06/01/00........ 295,000 295,133
Pittsburgh, Urban
Redevelopment Authority,
RB, Series C, AMT,
FNMA / GNMA
5.950%, 10/01/29........ 160,000 154,400
Potter County, Hospital
Redevelopment Authority,
Charles Cole Memorial
Hospital, RB, Asset
Guaranty
5.100%, 08/01/02........ $ 230,000 $ 229,768
Pottsville, Hospital Authority,
Hospital Revenue, Hospital
& Warne Clinic, RB, ACA
5.625%, 07/01/24........ 530,000 467,362
Pottsville, Hospital Authority,
Pottsville Hospital &
Warne Clinic, RB, Pre-
Refunded @102/D/
7.250%, 07/01/04........ 455,000 496,182
Pottsville, Hospital Authority,
Pottsville Hospital &
Warne Clinic, RB
4.700%, 07/01/01........ 600,000 592,080
4.800%, 07/01/02........ 630,000 614,660
5.150%, 07/01/09........ 680,000 599,556
5.500%, 07/01/18........ 1,790,000 1,446,016
Rose Tree Media School
District, GO, FGIC
4.400%, 02/15/11........ 600,000 532,536
Scranton-Lackawanna
Counties, Health &
Welfare Authority, RB
6.625%, 04/15/07........ 170,000 170,247
Somerset County, Hospital
Authority, Community
Hospital District B, RB,
Asset Guaranty
5.200%, 03/01/10........ 455,000 436,154
5.300%, 03/01/11........ 135,000 129,445
Southeastern Greene School
District, GO, ETM
9.375%, 07/01/03........ 30,000 32,093
State, COP, Series A, AMBAC
5.400%, 07/01/09........ 320,000 318,192
State Finance Authority,
Municipal Capital Imports
Program, RB, Investment
Agreement
6.600%, 11/01/09........ 1,815,000 1,912,683
State Higher Educational
Facility, Allegheny
Delaware Valley Obligation,
RB, Series A, MBIA
5.600%, 11/15/09........ 1,010,000 1,007,748
5.700%, 11/15/11........ 2,215,000 2,196,460
State Higher Educational
Facility, Gwynedd Mercy
College, RB
5.000%, 11/01/08........ 965,000 927,703
See Notes to Financial Statements.
-------------------------------------------------------------------------------
33
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
State Higher Educational
Facility, University of
The Arts, RB, Asset
Guaranty
4.850%, 03/15/06........ $ 200,000 $ 192,154
5.100%, 03/15/09........ 230,000 221,092
5.200%, 03/15/10........ 245,000 236,256
5.250%, 03/15/11........ 265,000 254,167
5.300%, 03/15/12........ 265,000 252,974
State Higher Educational
Facility Authority,
College & University
Revenue, RB, Asset
Guaranty
5.150%, 03/15/20........ 800,000 695,480
State Higher Educational
Facility, Ursinus
College, RB
5.000%, 01/01/02........ 120,000 119,611
5.100%, 01/01/03........ 140,000 139,142
5.200%, 01/01/04........ 140,000 138,957
5.300%, 01/01/05........ 165,000 163,736
5.400%, 01/01/06........ 190,000 188,795
5.850%, 01/01/17........ 960,000 912,854
State Higher Educational
Facility, University
of The Arts, RB,
Asset Guaranty
4.750%, 03/15/05........ 125,000 120,046
State Higher Educational
Facilities Authority,
Health Services Revenue,
RB, Series A,
7.000%, 01/01/09........ 3,735,000 3,893,775
State Higher Educational
Facility Authority,
Health Services Revenue,
Allegheny Delaware
Valley Obligation, RB,
Series C, MBIA
5.875%, 11/15/18........ 1,450,000 1,437,835
State Higher Educational
Facility Authority, Health
Services Revenue,
Allegheny Delaware Valley
Obligation, RB, Series A,
MBIA
5.400%, 11/15/07........ 200,000 199,016
State Higher Educational
Facilities Authority, UPMC
Health Systems, RB,
Series A, FSA
5.250%, 08/01/10........ 800,000 781,960
5.250%, 08/01/11........ 800,000 775,480
Williamsport, Multi-Family
Housing Authority, RB,
Series A, MBIA/FHA
5.250%, 01/01/15........ 1,165,000 1,071,893
York County, Hospital
Authority, Hanover
Hospital Incorporated,
RB, AMBAC
4.600%, 12/01/09........ $ 745,000 $ 680,617
York, Housing
Redevelopment Mortgage
Corporation, RB, Series.A
6.875%, 11/01/09........ 870,000 888,401
------------
80,126,988
------------
Rhode Island " 0.81%
Central Falls, GO, Pre-
Refunded @ 103/D/
9.250%, 11/15/00........ 125,000 131,229
State Health & Educational
Building Corporation
Revenue, Higher
Education Facility, Roger
Williams, RB, AMBAC
5.000%, 11/15/24........ 490,000 419,072
State Industrial Facilities
Corporation, Industrial
Development Revenue,
Building Authority
Program, RB, AMT
4.700%, 04/01/05........ 175,000 165,886
4.800%, 04/01/06........ 190,000 178,980
4.900%, 04/01/07........ 185,000 173,617
5.000%, 04/01/08........ 160,000 149,826
5.100%, 04/01/09........ 210,000 196,524
5.200%, 04/01/10........ 225,000 210,204
5.250%, 04/01/11........ 230,000 213,350
5.300%, 04/01/12........ 245,000 226,321
5.350%, 04/01/13........ 265,000 245,202
5.400%, 04/01/14........ 65,000 59,727
5.500%, 04/01/19........ 305,000 272,502
5.600%, 04/01/24........ 380,000 335,202
State Industrial Facility
Corporation, Crystal
Thermoplastics Project,
Series A, AMT
6.90%, 08/01/14......... 285,000 279,024
West Warwick, GO, Series
A, Asset Guaranty
7.300%, 07/15/08........ 635,000 679,431
-----------
3,936,097
-----------
South Carolina " 2.23%
Economic Jobs Development,
Westminster Presbyterian,
RB, Series A
5.125%, 11/15/08........ 735,000 677,192
Job Economic Development,
Caterpillar Incorporated
Project, RB, AMT
5.050%, 06/01/08........ 375,000 352,178
See Notes to Financial Statements.
-------------------------------------------------------------------------------
34
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Myrtle Beach, Convention
Center Project, COP, ETM
6.750%, 07/01/02...................... $ 905,000 $ 922,747
State Housing Finance &
Development Authority,
Westbury Plantation,
RB, FHA
6.050%, 07/01/27...................... 345,000 337,762
State Housing Finance &
Development Authority,
Bryton Point Apartments
Project, Mandatory
Put @ 100, FNMA/B/
5.700%, 06/01/05...................... 2,290,000 2,334,380
State Housing Finance &
Development Authority,
Hunting Ridge Apartments,
RB, Mandatory Put @ 100,
AMT/B/ 6.750%, 06/01/10.............. 755,000 772,010
State Housing Finance &
Development Authority,
Runway Bay Apartments
Projects, RB
5.500%, 12/01/05...................... 600,000 598,824
York County, Industrial
Revenue, Hoechst Celanese,
RB, AMT
5.700%, 01/01/24...................... 5,565,000 4,878,502
-----------
10,873,595
-----------
South Dakota - 0.20%
Housing Development Authority,
Multi-Family Housing, RB,
Series B, HUD
7.000%, 04/01/12...................... 755,000 791,663
State Building Authority, RB,
Pre-Refunded @ 100
10.500%, 09/01/00..................... 195,000 198,915
-----------
990,578
-----------
Tennessee - 1.50%
Energy Acquisition Corporation,
Gas Revenue, RB, Series B, AMBAC
5.000%, 09/01/07...................... 140,000 130,276
Greeneville, Health & Education
Facility Board, Southern Advent
Hospital, RB, ETM
8.700%, 10/01/09...................... 270,000 310,462
Nashville & Davidson County,
Health & Education Facility Revenue
Board, Multi-Family Housing, RB,
Mandatory Put @ 100, FNMA/B/
5.200%, 02/01/06...................... 1,610,000 1,576,206
Nashville & Davidson, Multi-Family
Housing , Welch Bend Apartments, RB,
Series A, Mandatory Put @100,
FNMA/B,C/
5.500%, 01/01/07...................... $ 1,600,000 $ 1,607,840
Nashville & Davidson Counties, Health
& Education Facilities Board, Homes
Inc. Project, RB, Series A,
Pre-Refunded @ 105/D/
9.000%, 10/01/07...................... 185,000 228,022
Nashville & Davidson County, Health
& Education Facilities Board, Modal
Health, RB, Asset Guaranty
5.500%, 05/01/23...................... 640,000 584,013
Shelby County, Health Educational &
Housing Facility Board, Methodist
Health Systems, RB, MBIA
5.200%, 08/01/13...................... 1,550,000 1,478,158
Shelby County, Multi-Family Housing,
Windsor Apartments, RB, Series A,
Asset Guaranty
6.500%, 10/01/07...................... 1,000,000 1,036,370
6.750%, 10/01/17...................... 370,000 386,317
-----------
7,337,664
-----------
Texas - 6.46%
Austin, Hotel Occupancy Tax, RB,
Series A, AMBAC
5.125%, 11/15/14...................... 1,340,000 1,265,858
Austin, Water Sewer & Electric
Revenue, RB, ETM
14.000%, 11/15/01..................... 5,000 5,436
Austin, Water Sewer & Electric
Revenue, RB
14.000%, 11/15/01..................... 460,000 492,159
Bexar County, Housing Finance
Corporation, GOA
0.000%, 03/01/15...................... 1,330,000 531,734
Bryon, Higher Education Authority,
Allen Academy Project, RB,
Series A
6.500%, 12/01/06...................... 320,000 312,954
7.300%, 12/01/16...................... 1,315,000 1,302,665
Capital Area, Housing Finance
Corporation, IDK Partners II
Trust, Series A
6.500%, 11/01/19...................... 1,314,739 1,188,196
See Notes to Financial Statements.
--------------------------------------------------------------------------------
35
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Collin County, Housing Financial
Corporation, Preston Bend
Apartments Project, RB, Mandatory
Put @ 100/B/, AXA
6.500%, 09/01/03...................... $ 755,000 $ 759,243
De Soto, Housing Finance Corporation,
The Colonies Apartments Project,
RB, Mandatory Put @ 100, FNMA/B/, AXA
5.125%, 10/01/07...................... 2,765,000 2,717,221
Del Rio, GO, Asset Guaranty
7.500%, 04/01/03...................... 115,000 120,703
7.500%, 04/01/04...................... 145,000 153,873
7.500%, 04/01/08...................... 95,000 104,097
7.500%, 04/01/09...................... 145,000 158,359
6.500%, 04/01/10...................... 95,000 97,775
5.550%, 04/01/11...................... 45,000 42,948
5.650%, 04/01/13...................... 95,000 89,622
5.750%, 04/01/16...................... 45,000 41,806
5.750%, 04/01/17...................... 185,000 170,694
Denison, Hospital Authority,
Texoma Medical Center, RB, ETM
7.125%, 07/01/08...................... 125,000 133,924
Edgewood, Independent School
District, RB
4.900%, 08/15/08...................... 530,000 483,917
5.000%, 08/15/09...................... 560,000 510,782
5.000%, 08/15/10...................... 585,000 526,734
5.250%, 08/15/13...................... 645,000 580,255
Gregg County, Housing Finance
Corporation, Summer Lake
Project, RB, Series A, Mandatory
Put @ 100/B/, AXA
6.400%, 03/01/06...................... 615,000 634,090
Gulf Coast Waste Disposal Authority,
Atlantic Richfield Company
Project, RB, Pre-Refunded @
100/D/
6.500%, 08/01/03...................... 285,000 291,769
Harris County, Health Facilities
Development Corporation, Memorial
Hospital System, RB, Pre-Refunded
7.125%, 06/01/04...................... 2,000,000 2,114,860
Harris County, Toll Road Authority,
GO, MBIA/A/
0.000%, 08/15/01...................... 855,000 802,896
Harris County, Housing Finance
Corporation, Cypress Ridge
Apartments, RB, AMT, FSA
5.650%, 06/01/06...................... $ 210,000 $ 211,168
Houston, Housing Finance Corporation,
Series A-1, RB
8.000%, 06/01/14...................... 625,000 667,363
Houston, Housing Finance Corporation,
RB, Series A-2A
0.000%, 06/01/14...................... 1,380,000 494,661
Houston, Port Authority, Airport and
Marina Improvement, RB
5.750%, 05/01/02...................... 140,000 141,193
Houston, Sewer Systems, RB,
ETM
5.400%, 10/01/04...................... 260,000 261,069
6.375%, 10/01/08...................... 135,000 141,298
McAllen, Development Corporation,
RB, FSA
4.700%, 02/15/08...................... 185,000 172,849
4.800%, 02/15/09...................... 185,000 172,836
Northeast Hospital Authority, RB,
ETM
8.000%, 07/01/08...................... 570,000 626,618
Odessa, Housing Finance Corporation,
Single Family Mortgage, RB,
Series A, FNMA
8.450%, 11/01/11...................... 133,208 139,157
Panhandle, Regional Housing Finance
Corporation, Single Family Mortgage,
RB, Series A, AMT, GNMA
7.500%, 05/01/24...................... 330,000 332,594
Robstown, Electric Light & Power
Revenue, RB
6.000%, 12/01/02...................... 100,000 100,085
6.000%, 12/01/03...................... 100,000 100,085
6.000%, 12/01/04...................... 100,000 100,085
6.000%, 12/01/05...................... 100,000 100,085
6.000%, 12/01/06...................... 100,000 100,085
Tarrant County, Health Facility,
South Central Nursing, RB,
Series A, MBIA/FHA
6.000%, 01/01/37...................... 185,000 181,089
Tarrant County, Housing Finance
Corporation, Multi-Family Housing,
Summit Project, RB, Series A,
Mandatory Put @ 100, FNMA/B/
5.080%, 09/01/07...................... 1,510,000 1,479,136
See Notes to Financial Statements.
--------------------------------------------------------------------------------
36
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Texarkana, Housing Finance
Corporation, Summerhill,
RB, Series A, GNMA
5.550%, 01/20/07................$ 175,000 $ 175,081
Southeast, Housing Finance
Corporation, Residual
Revenue Capital
Appreciation, RBA
0.000%, 09/01/17................ 9,140,000 3,580,504
State Department Housing &
Community Affairs,
Meadow Ridge
Apartments Project, RB,
AMT, FNMA
5.050%, 08/01/08................ 1,185,000 1,163,741
State Department Housing &
Community Affairs,
Volente Project, RB, AMT,
FNMA
5.000%, 07/01/08................ 885,000 862,928
Travis County, Housing
Finance Corporation,
Broadmoor Apartments
Project, RB, AMT, FSA
5.700%, 06/01/06................ 725,000 730,887
Water Resident Finance
Authority Revenue
Refunding, RB, AMBAC
4.600%, 08/15/08................ 485,000 454,341
Webb County, COP, Series A,
ETM, Asset Guaranty
5.100%, 10/01/07................ 560,000 551,488
5.200%, 10/01/07................ 585,000 583,608
5.300%, 10/01/07................ 600,000 602,208
Willow Fork, Drain District,
GO, AMBAC
4.600%, 09/01/05................ 80,000 77,267
4.600%, 09/01/06................ 185,000 176,651
4.650%, 09/01/07................ 320,000 303,469
4.700%, 09/01/08................ 215,000 202,777
4.800%, 09/01/09................ 310,000 292,559
4.900%, 09/01/10................ 325,000 307,346
4.900%, 09/01/11................ 390,000 364,046
----------
31,584,927
----------
Utah - 1.28%
Brigham City, Special
Assessment Bond,
Pre-Refunded @ 102/D/
9.000%, 08/01/00................ 200,000 205,272
Hilldale, GO
7.500%, 12/15/03................ 220,000 228,426
Provo City, Housing
Authority, Multi-Family
Housing, Lookout Pointe
Apartments, RB, GNMA
6.000%, 07/20/08................ 405,000 417,677
State Housing Finance
Agency, Single Family
Mortgage, RB, AMT, FHA
7.600%, 01/01/22................$ 25,000 $ 25,326
State Housing Finance
Agency, Sub-Single Family
Mortgage, RB, AMBAC
5.850%, 07/01/07................ 435,000 441,825
State Housing Finance
Agency, Single Family
Mortgage, RB, Series F-1,
Class I
5.500%, 07/01/16................ 305,000 295,454
State Housing Finance
Agency, Single Family
Mortgage, RB, Series A-2,
AMT
5.400%, 07/01/16................ 685,000 653,600
State Housing Finance
Agency, Single Family
Mortgage, Series A-2,
AMT
5.200%, 07/01/11................ 350,000 339,616
State Housing Finance
Agency, Single Family
Mortgage, RB, Series B-2,
AMT
5.250%, 07/01/11................ 395,000 384,556
State Housing Agency,
Single Family Mortgage,
RB, AMT
5.400%, 07/01/20................1,640,000 1,527,791
State Housing Finance
Agency, Single Family
Mortgage, RB, AMT
5.250%, 07/01/12................ 255,000 242,852
State Housing Finance
Agency, Single Family
Mortgage, RB, Series A-2,
Class III, AMT
5.050%, 07/01/12................ 480,000 454,613
Weber County, Municipal
Building Authority, RB,
Asset Guaranty
6.750%, 12/15/04................ 960,000 1,012,654
----------
6,229,662
----------
Virginia - 1.18%
Alexandria Redevelopment &
Housing Authority, Multi-Family
Housing, United Dominion-
Parkwood Court, RB, AMT
6.625%, 05/01/24................2,245,000 2,294,233
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
37
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Chesterfield County, Virginia,
Industrial Development
Authority, Multi-Family
Housing, Winchester
Greens, RB, Standby LOC
5.000%, 07/01/14.............. $ 170,000 $ 155,581
Chesterfield County, Virginia,
Industrial Development
Authority, Multi-Family
Housing, Winchester
Greens, RB, Standby LOC
5.200%, 07/01/19.............. 135,000 120,523
Newport News, Industrial
Development Authority,
Mennowood Communities,
RB, Series A, GNMA
7.250%, 08/01/16.............. 885,000 962,668
Richmond, Metro
Expressway Authority, RB,
Partially Pre-Refunded @
102, AMBAC/D/
7.000%, 10/15/00.............. 1,480,000 1,581,898
State Housing Development
Authority, Multi-Family
Mortgage, RB, Series D
6.800%, 11/01/09.............. 600,000 624,581
----------
5,739,484
----------
Vermont - 0.27%
Education & Health Building
Finance Authority, Norwich
University Project, RB
4.300%, 07/01/00.............. 105,000 104,870
4.750%, 07/01/04.............. 150,000 144,464
5.000%, 07/01/06.............. 275,000 263,145
5.000%, 07/01/07.............. 310,000 294,190
5.750%, 07/01/13.............. 525,000 505,259
----------
1,311,928
----------
Washington - 1.54%
Grays Harbor County, Public
Utility District Number 1,
RB, ETM,
5.375%, 01/01/06.............. 245,000 245,970
King County, Housing
Authority, Multi-Family
Mortgage, Section 8
Assisted, RB, Series A
7.000%, 08/01/03.............. 405,000 406,661
King County, Housing
Authority, Multi-Family
Mortgage, Section 8
Assisted, RB, Series B
7.000%, 08/01/03.............. 125,000 125,510
Seattle, Low Income
Housing Assistance
Authority, Kin On Project,
RB, Series A, GNMA
7.400%, 11/20/36 $1,132,000 $1,246,117
Spokane, Housing Authority,
Valley 206 Apartments,
RB, Series A
5.625%, 04/01/28.............. 755,000 664,913
Spokane, Housing Authority,
Valley 206 Apartments,
RB, Series B, LOC
5.750%, 04/01/28.............. 440,000 397,712
State Health Care Facilities
Authority Revenue
Refunding, Our Lady of
Lourdes Health, RB,
Pre-Refunded @ 102
7.875%, 12/01/00.............. 280,000 290,754
State Housing Finance
Commission, Nonprofit
Housing Revenue,
Presbyterian Ministries,
RB, Series A, ACA
5.100%, 01/01/14.............. 995,000 895,828
5.300%, 01/01/19.............. 840,000 732,623
State Housing Finance
Commision, RB,
Series B, GNMA/FNMA
6.900%, 07/01/16.............. 1,100,000 1,102,365
State Housing Finance
Commision, Convention
Deferred Interest, RB, Series
4A, AMT, FNMA / GNMA
0.000%, 12/01/20.............. 2,440,000 1,406,514
----------
7,514,967
----------
West Virginia - 1.51%
Beckley, Nursing Facility,
Beckley Healthcare
Corporation Project,
RB, Standby LOC
5.550%, 09/01/08.............. 190,000 181,746
5.700%, 09/01/09.............. 150,000 141,591
Harrison County, CMO,
Series B, AMBAC/D/
0.000%, 10/20/10.............. 2,127,000 925,011
Marshall County, Capital
Appreciation, RB, MBIAA
0.000%, 05/01/14.............. 2,255,000 772,698
Mason County, Point
Pleasant Haven, RB, LOC
6.200%, 12/01/05.............. 635,000 625,996
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
38
<PAGE>
Municipal bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 200 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Preston County, Pollution
Control Authority, Community-
Monoogahela, RB, Series C
4.500%, 03/01/03................... $4,105,000 $ 3,972,983
Raleigh Fayette & Nicholas
County, Series B, AMBAC/A/
0.000%, 06/20/10................... 1,627,000 748,095
------------
7,368,120
------------
Wisconsin - 1.75%
Housing & Economic
Development Authority,
RB, Series B, AMT
4.950%, 09/01/09.................. 305,000 290,198
Oshkosh, Hospital Facility,
Mercy Medical Center. RB,
Pre-Refunded @ 100/D/
7.375%, 07/01/07.................. 180,000 197,977
Pewaukee, Industrial
Development Authority, Lake
County Development Project,
RB, AMT, LOC
5.800%, 06/01/04.................. 100,000 100,871
5.900%, 06/01/05.................. 105,000 106,152
6.000%, 06/01/06.................. 130,000 131,992
Shell Lake, Nursing Home
Revenue, Terraceview
Living, RB, GNMA
5.300%, 09/20/18.................. 1,290,000 1,163,296
State Health & Educational
Facilities, Sister Sorrowful
Mothers, RB, Series A,
MBIA
5.100%, 08/15/07.................. 850,000 833,315
5.200%, 08/15/08.................. 1,260,000 1,236,299
5.300%, 08/15/09.................. 890,000 876,597
State Health & Educational
Facilities, Viterbo College
Incorporated Project,
RB, LOC
5.250%, 02/01/04.................. 110,000 109,215
5.400%, 02/01/05.................. 95,000 94,520
5.750%, 02/01/12.................. 390,000 381,498
6.000%, 02/01/17.................. 405,000 394,940
State Health & Education
Facility, Richland Hospital
Inc Project, RB, Series A,
ACA
5.375%, 06/01/28.................. 2,755,000 2,304,005
West Bend, GO
6.400%, 02/01/05.................. 140,000 145,645
Whitewater, Waterworks
Systems Mortgage,RB
7.500%, 07/01/16.................. 185,000 195,608
------------
8,562,128
------------
Wyoming - 0.88%
Cheyenne, Federal Mineral
Royalty, RB
6.200%, 06/01/09................ $ 755,000 $ 776,306
Community Development
Authority, Single Family
Mortgage, RB, Series B,
AMT
8.125%, 06/01/21................ 100,000 101,816
Community Development
Authority, RB, Series 5,
AMT
5.700%, 12/01/07................ 145,000 145,045
Green River-Sweetwater
County, Joint Powers
Board, RB, Series B, FSA
4.500%, 03/01/14................ 765,000 759,973
Multi-Family Community
Development Authority,
Aspen Court Apartments
Project, RB, Series A,
Mandatory Put @ 100,
AMT, LOC/B/
4.750%, 12/01/08................ 2,410,000 2,266,967
Teton County Hospital, St.
John's, RB, ACA
5.000%, 12/01/03................ 250,000 245,803
------------
4,295,910
------------
Total Municipal Bonds
(Cost $486,547,207)................ 469,805,512
------------
Tax-Exempt Asset-Backed Securities - 0.75%
Bridlewood Village
Apartments, Participation
Certificate, Class A, FHA
5.600%, 09/01/21................. 1,670,266 1,670,266
FHA Insured Trust, Series
1996-1, Class A-3, Private
Placement
7.000%, 07/01/23................. 1,383,380 1,390,297
FHA Insured Trust, Series
1996-1, Class A-2, Private
Placement
6.750%, 02/01/13................. 606,877 609,911
------------
Total Tax-Exempt Asset-Backed
Securities
(Cost $3,661,415) 3,670,474
------------
Cash Equivalent - 1.96% Shares
------
Provident Institutional
Municipal Cash Fund
(Cost $9,552,480).................. 9,552,480 9,552,480
------------
See Notes to Financial Statements
--------------------------------------------------------------------------------
39
<PAGE>
Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Description Value
----------- -----
Total Investments
(Cost $499,761,102)......... 98.91% $483,028,466
Other Assets in Excess
of Liabilities.............. 1.09% 5,315,973
------------
Total Net Assets............... 100.00% $488,344,439
============
-------------------------------------------------------------------------------
A Zero Coupon Security
B Mandatory Put/Tender Security. The mandatory put/tender date is shown as the
maturity date on the Scedule of Investments.
C Variable Rate Security. The rate reported on the Schedule of Investments is
the rate in effect as of April 30, 2000.
D Pre-Refunded Security. The pre-refunded date is shown as the maturity date on
the Schedule of Investments.
AMT Income from security may be subject to alternative minimum tax.
CMO Collaterized Mortgage Obligation
COP Certificate of Participation
ETM Escrowed to Maturity
GO General Obligation
LOC Securities are held in connection with a letter of credit by a major
commercial bank.
RB Revenue Bond
The following organizations have provided underlying credit support for the
securities as defined in the Schedule of Investments.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corporation
Asset Guaranty Asset Guaranty
AXA Multi-Line Insurance
BIGI Bond Investors Guaranty Insurance
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
HUD Housing & Urban Development
MBIA Municipal Bond Investors Assurance
QBE Insurance Group Limited
See Notes to Financial Statements.
------------------------------------------------------------------------------
40
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Corporate Obligations - 33.35%
Access Financial
Manufacturing Housing
Contract Trust, Series
1995-1, Class A3
7.100%, 05/15/21.................. $ 740,000 $ 728,338
Air 2 US, 144A
8.027%, 10/01/20.................. 30,558,968 30,079,192
Allstate Corporation
7.200%, 12/01/09.................. 1,220,000 1,143,750
America West Airlines, 144A
7.930%, 07/02/20.................. 18,244,434 18,161,787
American United Life
Insurance, 144A
7.750%, 03/30/26.................. 7,525,000 6,969,324
Archstone Community Trust
7.200%, 04/15/03.................. 24,500,000 23,775,437
Banamex, 144A
7.500%, 10/01/06.................. 21,725,000 21,242,977
BFC Finance, Series 1996-A
7.375%, 12/01/17.................. 7,925,000 8,041,577
Cleveland Electric Illuminating
7.430%, 11/01/09.................. 9,250,000 8,745,366
Colonial Realty, MTN
7.930%, 08/09/02.................. 18,375,000 17,874,428
Columbus Southern Power, MTN
6.550%, 06/26/08.................. 14,640,000 13,799,225
Dynex Capital
7.875%, 07/15/02.................. 2,825,000 2,713,444
Eastern Energy
6.750%, 12/01/06.................. 9,828,000 9,153,160
Farmers Insurance Exchange, 144A
8.625%, 05/01/24.................. 9,230,000 9,037,176
First American Financial
7.550%, 04/01/28.................. 5,795,000 4,899,562
Ford Motor Credit
6.700%, 07/16/04.................. 1,700,000 1,635,448
7.375%, 10/28/09.................. 2,500,000 2,422,525
HSBC America Capital Trust, 144A
7.808%, 12/15/26.................. 9,070,000 7,893,349
HSBC USA
7.000%, 11/01/06.................. 690,000 652,504
Jackson National Life Insurance, 144A
8.150%, 03/15/27.................. 5,575,000 5,481,150
Lehman Brothers Holdings
7.750%, 01/15/05,................. 4,940,000 4,862,165
Lumbermens Mutual Casualty, 144A
8.450%, 12/01/97.................. 3,130,000 2,616,711
National Bank of Canada
7.750%, 11/01/09.................. 773,000 757,703
National Westminster Bank
7.375%, 10/01/09.................. $ 1,062,000 $ 1,016,844
Norwest Corp., MTN
6.875%, 08/08/06.................. 3,424,000 3,286,602
Ohio National Life Insurance, 144A
8.500%, 05/15/26.................. 3,725,000 3,741,934
Paine Webber Group, MTN
6.650%, 10/15/02.................. 12,405,000 12,016,996
Pemex Finance
7.330%, 05/15/12.................. 11,575,000 11,123,228
Pemex Finance, 144A
6.550%, 02/15/08.................. 5,858,000 5,547,175
Pemex Finance, Series 2A1, Class A2
6.550%, 02/15/08.................. 22,775,000 21,566,559
PNC Funding Corporation
6.125%, 02/15/09.................. 2,945,000 2,591,893
PP&L Capital Funding, Series MBIA
6.790%, 11/22/04.................. 25,605,000 25,051,369
Puget Sound Energy
6.740%, 06/15/18.................. 730,000 646,854
Raytheon, 144A
8.200%, 03/01/06.................. 6,900,000 6,885,234
8.300%, 03/01/10.................. 6,600,000 6,505,957
Republic New York Corporation
7.200%, 07/15/97.................. 1,000,000 816,644
9.700%, 02/01/09.................. 6,160,000 6,771,343
7.530%, 12/04/26.................. 5,025,000 4,369,941
Security Capital Industrial
8.720%, 03/01/09.................. 9,175,000 9,162,430
7.625%, 07/01/17.................. 16,485,000 14,753,679
Summit Properties Partnership, MTN
6.750%, 07/30/01.................. 27,500,000 26,873,467
Union Center Life, 144A
8.200%, 11/01/26.................. 1,845,000 1,730,961
United Mexican States
9.875%, 01/15/07.................. 7,195,000 7,392,863
Wells Fargo Company
7.200%, 05/01/03.................. 18,655,000 18,480,389
------------
Total Corporate Obligations
(Cost $386,027,495).............. 393,018,660
------------
Asset-Backed Securities - 16.92%
Aames Mortgage Trust,
Series 1998-C, Class A4F
6.268%, 01/15/27.................. 9,900,000 9,393,318
Americredit Automobile
Receivables Trust, Series
1999-C, Class A3
6.840%, 10/05/03.................. 7,604,000 7,568,489
5.960%, 03/05/06.................. 24,025,000 23,246,350
See Notes to Financial Statements.
--------------------------------------------------------------------------------
41
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
<S> <C> <C>
Capital Auto Receivables
Trust, Series 2000-1,
Class A5
7.070%, 09/15/05............. $ 12,330,000 $ 12,327,598
CNH Equipment Trust, Series
2000-A, Class A4
7.340%, 02/15/07............. 940,000 933,570
Comed Transitional Funding
Trust, Series 1998-1,
Class A6
5.630%, 06/25/09............. 15,750,000 14,319,743
Copelco Capital Funding
Corporation, Series
2000-A, Class A4
7.220%, 08/18/05............. 5,295,000 5,294,828
Copelco Capital Funding,
Series 1999-B, Class A4
6.900%, 12/18/04............. 3,090,000 3,048,316
FMAC Loan Receivables
Trust, Series 1998-DA,
Class A2
6.404%, 12/15/19............. 10,000,000 9,187,500
Green Tree Home
Improvement Loan Trust,
Series 1998-D, Class HIB1
7.700%, 06/15/29............. 9,150,000 8,895,905
Green Tree Home
Improvement Loan Trust,
Series 1998-E, Class HIB1
7.790%, 12/15/23............. 3,300,000 3,185,721
Green Tree Home
Improvement Loan Trust,
Series 1999-E, Class B1
10.340%, 03/15/15............ 7,240,000 7,177,446
Heller Equipment Asset
Receivables Trust, Series
1999-2, Class A4
6.790%, 03/14/07............. 595,000 582,380
Household Automotive Trust
III, Series 1999-1, Class A4
6.650%, 04/17/06............. 2,975,000 2,920,349
Lehman Home Equity Loan
Trust, Series 1995-7,
Class A3
6.840%, 08/25/10............. 842,391 838,592
MBNA Master Credit Card
Trust, Series 1999-J,
Class A
7.000%, 02/15/12............. 4,350,000 4,220,718
MMCA Automobile Trust,
Series 1999-2, Class
7.000%, 05/15/04............. 10,395,000 10,314,543
Nissan Auto Receivables
Owner Trust, Series
2000-A, Class A4
7.170%, 08/15/04............. 6,730,000 6,696,283
Onyx Acceptance Auto Trust,
Series 2000-B, Class A4
7.380%, 08/15/05............. $ 3,225,000 $ 3,227,999
PP&L Transition Bond
Company, Series 1999-1,
Class A7
7.050%, 06/25/09............. 1,862,000 1,823,345
Provident Auto Lease ABS
Trust, Series 1999-1,
Class A2
7.025%, 01/14/12............. 15,475,000 15,376,468
Residential Asset Securities,
REMIC, Series 2000-Ks1,
Class AI6
7.905%, 02/25/31............. 2,420,000 2,436,456
Ryder Vehicle Lease
Trust,Series 1999-A,
Class A5
7.130%, 10/15/06............. 9,500,000 9,260,980
Sears Credit Account Master
Trust, Series 1997-1,
Class A
6.200%, 07/16/07............. 2,033,000 1,987,298
Southern Pacific Secured
Assets, Series 1997-4,
Class A4
6.630%, 11/25/25............. 12,552,984 12,412,767
Southern Pacific Secured
Assets, Series 1998-1,
Class A5
6.460%, 01/25/26............. 11,854,000 11,694,801
The Money Store Home
Equity Trust, Series
1997-A, Class A9
7.235%, 05/15/28............. 10,000,000 9,805,900
UCFC Home Equity Loan,
Series 1994-D1, Class A4
8.775%, 02/10/16............. 1,274,316 1,272,341
UCFC Home Equity Loan,
Series 1997-D, Class A-2
6.475%, 06/15/12............. 6,865 6,847
-----------
Total Asset-Backed Securities
(Cost $218,668,785)............. 199,456,851
-----------
Mortgage-Backed Securities - 11.00%
Associates Manufactured
Housing, Series 1997-2,
Class A5
6.675%, 03/15/28............. 10,035,000 9,734,652
Chase Mortgage Finance,
REMIC, Series 1994-B,
Class A1
6.750%, 02/25/25............. 490,399 484,480
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
42
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30,.2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
<S> <C> <C>
Conseco Finance
Securitizations
Corporation, Series
1999-6, Class B1
9.200%, 06/01/29............. $ 3,180,000 $ 3,110,962
First Union - Lehman
Brothers Commercial
Mortgage, CMO, Series
1997-C1, Class A3
7.380%, 04/18/29............. 24,215,000 23,827,633
GE Capital Mortgage
Services, CMO, Series
1999-18, Class A12
7.000%, 09/25/24............. 18,430,000 17,243,845
GE Capital Mortgage
Services, Inc., CMO,
Series 1999-14, Class A8
6.500%, 06/25/29............. 5,380,000 4,513,551
General Electric Capital
Mortgage Services,
REMIC, Series 1994-10,
Class A10
6.500%, 03/25/24............. 2,555,650 2,387,385
General Electric Capital
Mortgage Services,
REMIC, Series 1997-7,
Class A7
7.500%, 08/25/27............. 2,445,444 2,437,692
Green Tree Financial
Corporation, Series 1999-
2, Class B1
8.410%, 03/01/30............. 2,000,000 1,895,620
Green Tree Financial, Series
1994-6, Class A5
8.250%, 01/15/20............. 4,655,000 4,686,654
Green Tree Financial, Series
1996-2, Class A4
7.200%, 04/15/26............. 6,520,000 6,365,998
Green Tree Financial, Series
1996-5, Class A5
7.450%, 07/15/26............. 4,145,000 4,133,643
Green Tree Financial, Series
1997-6, Class B1
7.170%, 01/15/29............. 2,795,000 2,579,226
Green Tree Financial, Series
1998-4, Class B1
7.260%, 04/01/30............. 10,570,000 9,616,058
Merrill Lynch Mortgage
Investors, Series 1990-C,
Class B, 144A
9.700%, 06/15/10............. 7,470,362 7,601,093
Merrill Lynch Mortgage
Investors, Series 1991-I,
Class A
7.650%, 01/15/12............. 102,941 102,675
Merrill Lynch Mortgage
Investors, Series 1995-C1,
Class A
7.075%, 05/25/15............. $ 987,022 $ 978,603
NYC Mortgage Loan Trust,
Series 1996, Class A3,
144A
6.750%, 09/25/19............. 8,615,000 7,524,664
Oakwood Mortgage
Investors, Series 1996-B,
Class A3
7.100%, 10/15/26............. 2,150,153 2,144,326
Oakwood Mortgage
Investors, Series 1999-E,
Class M2
8.400%, 03/15/30............. 3,380,000 3,109,161
Oakwood Mortgage
Investors, Series 2000-A,
Class M1
8.300%, 04/15/30............. 1,830,000 1,822,369
Oakwood Mortgage
Investors, Series 2000-A,
Class M2
8.250%, 04/15/30............. 2,607,000 2,539,322
Prudential Home Mortgage
Securities, CMO, Series
1993-27, Class A3
7.500%, 06/25/23............. 1,006,529 1,002,986
Prudential Home Mortgage
Securities, REMIC, Series
1994-12, Class A7
6.050%, 04/25/24............. 3,724,000 2,961,176
Prudential Home Mortgage
Securities, REMIC, Series
1994-17, Class A5
6.250%, 04/25/24............. 5,310,000 4,515,783
Residential Asset Securities,
REMIC, Series 1998-Ks2,
Class Ai3
6.240%, 02/25/17............. 1,267,529 1,255,874
Residential Funding, CMO,
Series 1995-S15, Class A2
7.000%, 10/25/10............. 1,100,996 1,095,733
-----------
Total Mortgage-Backed Obligations
(Cost $139,415,320)............ 129,671,164
-----------
Taxable Municipal Bond - 7.44%
Allegheny County,
Pennsylvania, Residential
Finance Authority, RB,
FHAA
0.000% 08/01/28.............. 7,025,000 774,998
Arkansas State, Financial
Development Authority,
CMO, Series A, Class 4,
FSA/A/
0.000%, 07/10/14............. 500,000 161,795
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
43
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Atlanta, Georgia, Urban
Residential Finance
Authority, RB, FNMA/A/
0.000%, 10/01/16.............. $ 5,455,000 $ 1,448,303
Atlanta, Georgia, Urban
Residential Finance
Authority/A/
0.000%, 04/01/22.............. 1,053,698 1,055,015
Baltimore, Maryland, Public
Improvements, Series B,
GO, FGIC
8.100%, 10/15/10.............. 1,775,000 1,824,771
8.700%, 10/15/15.............. 1,875,000 2,009,775
Belmont, California,
Redevelopment Agency,
Tax Allocation Bond, MBIA
7.550%, 08/01/11.............. 895,000 880,188
Berwyn, Illinois, GO, AMBAC
5.375%, 11/15/10.............. 1,500,000 1,423,410
California State, Housing
Finance Agency, Single
Family Mortgage, Issue A-
1, RB, AMBAC
7.900%, 08/01/07.............. 4,675,000 4,665,463
California State, Housing
Finance Authority, Single
Family Mortgage,
Mezzanine-Issue A-1, RB,
AMBAC / FHA
8.240%, 08/01/14.............. 1,585,000 1,604,923
Cameron County, Texas,
Housing Finance
Corporation, RB, Series A,
Class 1B, FGIC
10.210%, 09/01/10............. 750,246 744,867
Cameron County, Texas,
Housing Finance
Corporation, Series A,
Class 1C, FGIC
10.450%, 09/01/11............. 945,000 974,106
Chattahoochee Valley,
Alabama, Water Supply,
RB, Asset Guaranty
8.600%, 10/01/07.............. 200,000 210,000
Connecticut State, Health &
Education Authority,
Sheriden Woods Center
Project, RB
7.950%, 11/01/05.............. 1,755,000 1,776,938
8.730%, 11/01/17.............. 1,150,000 1,212,825
Contra Costa County,
California, Multi-Family
Housing Revenue, Willow
Pass Apartments, RB,
Series D-T, FNMA
6.800%, 12/01/15.............. 2,425,000 2,241,985
Dade County, Florida,
Aviation Revenue, RB,
Series C, AMBAC
8.650%, 10/01/03.............. $ 930,000 $ 970,204
Fulton, Missouri, GO, MBIA
7.500%, 07/01/07.............. 1,045,000 1,049,253
Harrisburg, Pennsylvania,
Resource Recovery
Authority, RB, Series B,
ETM
6.875%, 09/01/03.............. 425,000 420,950
Idaho State, Sand Creek
Associates Ltd
Partnership, Multi-Family
Housing Revenue, RB,
Hud Section 8
8.250%, 12/01/18.............. 3,420,000 3,217,468
Idaho State, Water Reserves
Board, Fall River Rural
Electric
9.500%, 04/01/13.............. 5,135,000 5,431,803
Kanawha & Putnam County,
West Virginia, RB,
AMBACA
0.000%, 12/01/16.............. 1,620,000 507,206
Lake Mills, Iowa, Investors
Ltd, RB, Series 1995
7.600%, 11/01/00.............. 280,000 279,185
7.600%, 11/01/01.............. 360,000 355,979
7.750%, 11/01/02.............. 385,000 378,963
7.850%, 11/01/03.............. 410,000 402,202
7.850%, 11/01/04.............. 410,000 400,144
7.900%, 11/01/05.............. 450,000 438,156
8.000%, 11/01/06.............. 590,000 573,622
8.000%, 11/01/07.............. 610,000 588,016
Long Beach, California, RB,
Series A
9.500%, 01/01/23.............. 5,100,000 5,103,315
Manatee County, Florida,
Housing Finance Authority,
RB, GNMA
7.300%, 11/01/12.............. 1,020,000 1,009,871
Mississippi State, Residual
Home Corporation, RB,
FHAA
0.000%, 12/01/12.............. 3,710,000 1,478,287
Mississippi State, Single
Family Home Corporation,
RB, Series D, Class 3,
GNMA / FNMA
7.750%, 07/01/24.............. 2,591,664 2,601,875
Nevada Housing Division,
Multi " Unit Housing, RB,
Series A, Bank N.A.
5.550%, 10/01/28.............. 3,660,000 3,312,190
</TABLE>
See Notes to.Financial Statements.
--------------------------------------------------------------------------------
44
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
<S> <C> <C>
New Hampshire Higher
Education & Health
Facilities, RB, AMBAC
5.150%, 07/01/29.............. $ 2,120,000 $ 1,864,307
New Mexico State,
Mortgage Finance
Authority, Single Family
Mortgage Program, RB,
GNMA / FNMA / FHLMC
7.430%, 07/01/29.............. 3,220,000 3,227,631
New Orleans, Louisiana,
Home Mortgage Authority,
Single Family Mortgage,
RB, Series A, MBIA/A/
0.000%, 10/01/15.............. 2,060,000 509,623
New York City, New York,
GO, Pre-Refunded @
102/A,B/
0.000%, 11/15/01.............. 240,000 219,149
New York City, New York,
GO, Series F, Pre-
Refunded @ 102/B/
10.500%, 11/15/01............. 575,000 612,841
New York City, New York,
Industrial Development
Agency, Civic Facilities
Revenue, RB, Series B,
MBIA
8.100%, 09/01/06.............. 1,450,000 1,477,159
New York State, Housing
Finance Agency, Multi-
Family Housing, RB, FHA
8.110%, 11/15/38.............. 2,965,000 2,951,124
North Miami, Florida,
Pension Funding Project,
RB, FSA
6.850%, 07/01/05.............. 255,000 250,305
7.000%, 01/01/08.............. 165,000 159,761
Oklahoma City, Oklahoma,
Airport Trust, RB, 17Th
Series
8.300%, 10/01/12.............. 1,000,000 1,023,570
Oklahoma City, Oklahoma,
Airport Trusts, Federal
Bureau Prisons Project, RB
9.800%, 11/01/14.............. 2,650,000 2,971,260
Oklahoma County,
Oklahoma, Single Family
Home Finance Authority,
RB, Series B/A/
0.000%, 07/01/12.............. 3,450,000 1,090,994
Panhandle, Texas, Regional
Housing Finance
Corporation, Single Family
Mortgage Revenue,
RB/A/
0.000%, 10/01/11.............. $ 1,215,000 $ 451,749
Philadelphia, Pennsylvania,
Hospitals & Higher
Education Facilities, RB
5.125%, 05/15/18.............. 2,000,000 1,794,400
5.125%, 05/15/21.............. 2,000,000 1,755,480
Pima & Maricopa Counties,
Arizona, Industrial
Development Authority,
Bulk Sale Program, RB,
FNMA
6.500%, 01/01/06.............. 485,000 476,551
Sedwick & Shawnee
Counties, Kansas, Single
Family Revenue, Mortgage
Backed Second Program,
RB, Series A-3, GNMA
6.520%, 12/01/12.............. 3,695,000 3,656,018
8.375%, 06/01/18.............. 5,940,000 6,051,197
Southwestern Illinois,
Development Authority,
Solid Waste Disposal, RB
6.900%, 02/01/03.............. 545,000 536,656
Southwestern Illinois,
Developmental Sports
Authority, Gateway
International Motorsports,
RB
9.200%, 02/01/13.............. 2,250,000 2,452,703
9.250%, 02/01/17.............. 2,000,000 2,214,780
Tarrant County, Texas,
Housing Finance
Corporation, RB, MBIA
6.650%, 07/15/16.............. 295,000 291,318
Utah State, Housing Finance
Agency, Single Family
Mortgage, Series D-1, RB,
FHA
9.850%, 07/01/10.............. 120,000 121,017
-----------
Total Taxable Municipal Bonds
(Cost $88,578,629)............... 87,687,644
-----------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
45
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
U.S. Government Agency
Mortgage-Backed Obligations - 15.72%
Federal Home Loan
Mortgage Corporation,
CMO, Series 2071,
Class EV
6.500%, 04/15/09............ $ 5,283,913 $ 5,077,664
Federal Home Loan
Mortgage Corporation,
Gold, Pool C00742
6.500%, 04/01/29............ 24,221,609 22,638,717
Federal Home Loan
Mortgage Corporation,
Gold, Pool C00785
6.500%, 06/01/29............ 2,729,176 2,550,824
Federal Home Loan
Mortgage Corporation,
Gold, Pool C29108
6.500%, 07/01/29............ 13,902,353 12,993,828
Federal Home Loan
Mortgage Corporation,
Gold, Pool C31226
6.500%, 09/01/29............ 142,943 133,602
Federal Home Loan
Mortgage Corporation,
REMIC, Series 1496,
Class KB
6.500%, 05/15/08............ 1,955,000 1,843,370
Federal Home Loan
Mortgage Corporation,
REMIC, Series 1562,
Class J
7.000%, 05/15/10............ 9,650,000 9,333,799
Federal Home Loan
Mortgage Corporation,
REMIC, Series 1633,
Class PE
5.750%, 10/15/17............ 471,693 468,957
Federal Home Loan
Mortgage Corporation,
REMIC, Series 2136,
Class BD
6.500%, 12/15/26............ 9,316,108 8,811,920
Federal National Mortgage
Association, CMO, Series
1998-36, Class J
6.000%, 07/18/28............ 14,385,000 12,695,521
Federal National Mortgage
Association, CMO, Series
1998-46, Class GV
6.500%, 05/18/09............ 9,983,040 9,451,207
Federal National Mortgage
Association, Pool
#251985
6.500%, 10/01/28............ 5,774,296 5,394,443
Federal National Mortgage
Association, Pool
#303387
8.000%, 07/01/02............ $ 533,690 $ 535,241
Federal National Mortgage
Association, Pool
#323692
6.000%, 05/01/29............ 5,727,392 5,193,011
Federal National Mortgage
Association, Pool
#419597
6.000%, 08/01/28............ 668,259 605,909
Federal National Mortgage
Association, Pool
#443869
6.500%, 09/01/28............ 7,742,484 7,233,157
Federal National Mortgage
Association, Pool 481445
6.000%, 01/01/29............ 12,370,830 11,216,599
Federal National Mortgage
Association, REMIC,
Series 1994-92, Class DE
7.500%, 07/25/07............ 5,837,556 5,737,967
Federal National Mortgage
Association, REMIC,
Series 1995-2, Class H
8.500%, 06/25/10............ 16,945,000 17,088,787
Federal National Mortgage
Association, REMIC,
Series 1997-W2, Class A3
6.575%, 11/25/27............ 2,000,000 1,971,120
Federal National Mortgage
Association, REMIC,
Series G92-39, Class Q
7.000%, 03/25/01............ 1,114,779 1,110,119
Federal National Mortgage
Association, REMIC,
Series G93-31, Class G
7.000%, 01/25/03............ 2,429,369 2,417,659
Federal National Mortgage
Association, Series 1995-
M2, Class C
6.800%, 05/25/28............ 858,223 846,122
Federal National Mortgage
Association, Series 1997-
M2, Class B
7.350%, 02/17/08............ 14,089,063 14,009,037
Government National
Mortgage Association,
CMO, Series 1999-4,
Class VA
6.000%, 12/20/09............ 22,940,466 21,128,332
Government National
Mortgage Association,
Pool #462682
6.500%, 04/15/28............ 4,637,158 4,350,188
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
46
<PAGE>
Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Government National
Mortgage Association,
Pool #464272
6.500%, 10/15/28................ $ 423,552 $ 397,342
---------------
Total U.S. Government Agency
Mortgage-Backed Obligations
(Cost $192,514,569)................ 185,234,442
---------------
U.S. Treasury Obligations - 13.69%
U.S Treasury Bond
8.125%, 08/15/19................83,834,000 100,679,436
U.S. Treasury Notes
5.500%, 05/31/03................ 2,655,000 2,572,863
7.875%, 11/15/04................29,947,000 31,435,007
7.000%, 07/15/06................ 4,440,000 4,542,675
6.000%, 08/15/09................22,671,000 22,125,490
---------------
Total U.S. Treasury Obligations
(Cost $159,945,472)................ 161,355,471
---------------
Cash Equivalent - 0.74%.............. Shares
------
SEI Daily Income Trust
Government II
(Cost $8,755,823)............... 8,755,823 8,755,823
---------------
Total Investments
(Cost $1,193,906,093).............. 98.86% 1,165,180,056
---------------
Other Assets in Excess of
Liabilities........................ 1.14% 13,432,627
-------- ---------------
Total Net Assets..................... 100.00% $ 1,178,612,683
======== ===============
</TABLE>
--------------------------------------------------------------------------------
/A/ Zero Coupon Bond
/B/ Pre-Refunded Security. The pre-refunded date is shown as the maturity date
on the Schedule of Investments.
CMO Collaterized Mortgage Obligation
ETM Escrowed to Maturity
GO General Obligation
MTN Medium Term Note
RB Revenue Bond
REMIC Real Estate Mortgage Investment Conduit
The following organizations have provided underlying credit support for the
securities as defined in the Schedule of Investments
AMBAC American Municipal Bond Assurance Corporation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
MBIA Municipal Bond Investors Assurance
See Notes to Financial Statements.
--------------------------------------------------------------------------------
47
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Municipal Bonds - 97.67%
Alabama - 0.02%
Hartselle Medical Clinic,
Hospital Clinic America,
Board Hospital RB, ETM
6.250%, 10/01/02............... $ 15,000 $ 15,273
----------
Alaska - 0.19%
Valdez, Marine Terminal
Revenue, ARCO Pipe
Line Company Project,
RB, Pre-Refunded
@ 100/D/
6.000%, 08/01/03............... 175,000 179,522
----------
Arizona - 1.18%
Maricopa County, Hospital
Revenue Authority, RB,
Phoenix Baptist Hospital
& Medical Center, ETM
7.125%, 10/01/02............... 135,000 138,660
Maricopa County, Hospital
Revenue Authority,
Samaritan Health
Services, RB, ETM
6.750%, 01/01/04............... 110,000 113,548
Maricopa County, Hospital
Revenue Authority,
Sun Health Corp., RB, ETM
7.875%, 04/01/02............... 230,000 238,977
Maricopa County, Industrial
Development Authority,
Lutheran Hospital &
Homes, RB, ETM
6.750%, 12/01/03............... 235,000 241,296
Phoenix, Industrial
Development Authority,
Single Family Mortgage
Revenue, RB, Series
D, FGIC, GIC
4.200% 06/01/02................ 400,000 393,983
----------
1,126,464
----------
Arkansas - 3.65%
Crosett, Industrial
Development Authority,
Georgia Pacific Project,
RB, Pre-Refunded
@ 100/D/
6.000%, 06/01/01............... 415,000 420,080
Little Rock, Residential
Housing & Public Facility
Board, RB, Series B/A/
0.000%, 07/15/11............... 515,000 243,775
Mississippi County, Hospital
Revenue, RB, AMBAC,
ETM
7.250%, 11/01/02............... $ 80,000 $ 82,701
Rogers Ark, Residential
Housing Facility Board,
Innisfree Apartment
Project, RB, Mandatory
Put @ 100 LOC/B/
4.875%, 05/01/03............... 1,000,000 983,560
Rogers Ark, Sales & Use
Tax Revenue, RB,
Series 1996
5.000%, 11/01/15............... 640,000 636,992
Arkansas State,
Development Finance
Authority, Multi-Family
Housing, RB, Series I,
AMT, GIC
4.500%, 10/25/00............... 1,100,000 1,099,725
----------
3,466,833
----------
California - 0.90%
ABAG Finance Authority
For The Non-Profit Co.,
American Baptist Homes,
Series A, COP
5.500%, 10/01/07............... 350,000 331,849
Brea, Public Finance
Revenue Authority,
Pre-Refunded @ 102,
MBIA/D/
7.000%, 08/01/01............... 120,000 125,786
Fairfield, COP, Pre-Refunded
@ 100/D/
10.750%, 08/01/00.............. 20,000 20,324
Los Angeles, Housing
Authority, Multi-Family
Housing, The Palm
Apartments, RB,
Series E, AMT FNMA
4.200%, 07/01/00............... 85,000 84,892
4.300%, 01/01/01............... 35,000 34,846
Los Angeles, Public Facility
Corporation, RB, ETM
5.400%, 08/01/07............... 80,000 81,285
Santa Clara County, Housing
Authority, Amberwood
Apartments Project, RB,
Series C, FNMA
4.750%, 10/01/07............... 180,000 174,517
----------
853,499
----------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
48
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Colorado - 1.13%
El Paso County, Colonial
Multi-Family Mortgage
Revenue, Cottonwood
Terrace Project, RB,
GNMA
5.250%, 09/20/03............. $ 20,000 $ 20,067
El Paso County, Colonial
Residual Revenue,
RB, Series C, AMT/A/
0.000%, 07/10/14............. 1,000,000 342,850
Housing & Finance
Authority, Single Family
Housing Program, RB,
AMT, Series E
6.250%, 12/01/09............. 45,000 45,077
Housing Finance Authority,
Single Family Program,
Series B, RB
4.625%, 11/01/05............. 30,000 29,271
Logan County, Single Family
Mortgage, RB, Series A
8.500%, 11/01/11............. 55,000 57,736
Student Obligation Board
Authority, Series C, RB,
AMT
6.900%, 09/01/01............. 565,000 580,978
----------
1,075,979
----------
Connecticut - 0.43%
Health & Educational
Facilities, Lutheran
General Health Care
System, RB, ETM
7.250%, 07/01/04............. 60,000 62,579
State Housing Finance
Authority, Housing
Mortgage Finance
Program, RB,
Series B
7.000%, 11/15/02............. 150,000 152,985
State, GO
5.250%, 07/01/02............. 195,000 195,069
----------
410,633
----------
Delaware - 0.21%
Delaware State, Health
Facilities Authority, Beebe
Medical Center, RB
5.800%, 06/01/01............. 180,000 178,902
Dover, Water & Sewer
Revenue, RB, Series
B, MBIA
7.200%, 07/01/01............. 20,000 20,043
----------
198,945
----------
Florida - 5.42%
Alachua County Health
Facility Authority, Shands
Teaching Hospital &
Clinics Inc., RB, ETM
7.000%, 12/01/01............. $ 210,000 $ 215,555
Dade County, Housing
Finance Authority, Single
Family Mortgage
Revenue, RB, Series B-1,
AMT, FNMA / GNMA
6.100%, 04/01/27............. 3,223,492 3,260,433
Fort Meyers, Improvement
Revenue Authority,
Special Assessment, Pre-
Refunded @ 100/D/
7.050%, 07/01/03............. 275,000 291,170
Gainesville, Utility Systems
Revenue, RB, ETM
6.200%, 10/01/02............. 1,000,000 1,012,950
Lee County, Justice Center
Complex, RB, Series A,
ETM, MBIA
10.750%, 01/01/01............ 5,000 5,184
Orange County, Housing
Authority, RB, CMO,
Series A, AMT, GNMA
7.250%, 09/01/11............. 50,000 51,319
Putnam County,
Development Authority,
Pollution Control
Revenue, Hudson Pulp &
Paper Corporation Project,
RB
7.250%, 05/01/02............. 310,000 314,030
----------
5,150,641
----------
Georgia - 0.78%
Canton, Multi-Family
Housing Authority,
Canterbury Ridge
Apartments Project, RB,
FNMA, AMT
4.900%, 03/01/08............. 500,000 481,985
Clarke County, Hospital
Authority, RB, MBIA,
ETM
9.750%, 01/01/02............. 85,000 89,734
Cobb County, Kennestone
Hospital Authority,RB,
MBIA, ETM
10.250%, 02/01/02............ 30,000 31,840
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
49
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30,.2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Crisp County, Industrial
Development Authority,
Cobis Products Company,
RB, ETM
6.300%, 07/01/02............. $ 134,000 $ 135,039
----------
738,598
----------
Idaho - 0.76%
Boise City, Industrial
Development
Corporation, Western
Trailer Company Project,
RB, AMT, LOC
4.750%, 12/15/02............. 650,000 634,914
Idaho Falls Electric, RB,
ETM
8.750%, 04/01/01............. 5,000 5,177
State Housing Agency,
Single Family Mortgage,
RB, Series C-1
7.650%, 07/01/10............. 85,000 86,464
----------
726,555
----------
Illinois - 11.99%
Chicago, School Finance
Authority,GO, Series B,
MBIA
7.500%, 06/01/00............. 65,000 65,181
Dupage County, Water &
Sewer, RB, MBIA, ETM
10.500%, 01/01/02............ 275,000 292,358
Health Facilities Authority,
Evangelical Hospital
Association Project, RB,
ETM
6.600%, 10/01/03............. 170,000 174,667
Health Facilities Authority
Revenue, Macneal
Memorial Hospital
Association Project, RB,
Pre-Refunded @ 100/D/
6.600%, 08/01/01............. 95,000 96,901
Health Facilities Authority
Revenue, Midwest Group
Ltd., RB, ACA
5.375%, 11/15/08............. 3,300,000 3,263,403
Health Facilities Revenue
Authority, Community
Hospital Of Ottawa
Project, RB
6.750%, 08/15/14............. 300,000 303,942
Health Facilities Authority
Revenue, RB, Series A,
FSA
7.600%, 08/15/00............. 1,350,000 1,387,409
Health Facilities Authority
Revenue, RB, Pre-
Refunded @ 102
9.000%, 10/01/02............. $ 655,000 $ 725,642
Homewood, CTFS, GO,
MBIA
5.700%, 12/01/01............. 20,000 20,229
Palatine County, Multi-family
Housing, Clover Ridge
East Apartments, RB,
Mandatory Put @ 100,
LOC/B/,/C/
4.750%, 12/15/02............. 500,000 492,220
Palatine County, Tax
Increment Revenue,
Dundee Road
Redevelopment Project,
Tax Allocation Bond,
AMBAC
5.250%, 01/01/17............. 1,000,000 973,070
Pittsburgh, Urban
Redevelopment Authority,
Hazlewood Project, RB,
MBIA/FHA
5.400%, 01/01/22............. 60,000 54,847
State Housing Development
Authority, Home Owner
Mortgage, RB, Series A-1
5.250%, 08/01/00............. 45,000 45,037
State Toll Highway
Authority, RB, Pre-
Refunded @ 100/D/
6.750%, 01/01/06............. 195,000 204,662
St. Clair County,
COP, MBIA
8.000%, 12/01/01............. 230,000 241,117
St. Clair County, Public
Building, GO,
ETM, MBIA
8.000%, 12/01/05............. 500,000 503,070
Urbana, Residential
Mortgage Revenue,
RB, ETM
7.300%, 09/01/06............. 2,455,000 2,561,276
----------
11,405,031
----------
Indiana - 0.53%
Health Facilities Financing
Authority, Hancock
Memorial Hospital
Project, RB, Pre-Refunded
@ 102/D/
8.300%, 08/15/00............. 195,000 200,971
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
50
<PAGE>
Short-Term Municipal Bond
-------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
La Porte, Economic
Development Agency,
RB, FGIC, ETM
7.375%, 06/01/01 .............. $ 70,000 $ 71,261
Reid Memorial Hospital Inc.,
RB, ETM
6.250%, 05/01/00 125,000 125,018
Vigo County, Hospital
Authority, RB, ETM
6.875%, 04/01/04 .............. 100,000 103,650
----------
500,900
----------
Iowa - 3.88%
Des Moines, Hospital
Revenue Authority,
Fairview Community,
Lutheran Hospital, MBIA,
ETM
9.500%, 11/15/02 .............. 1,135,000 1,207,992
Dubuque, Hospital Facilities,
Finley Hospital Project,
RB, ETM
6.875%, 01/01/12 .............. 2,275,000 2,390,798
Muscatine, Electric
Revenue, RB, ETM
6.500%, 01/01/04 .............. 90,000 92,588
----------
3,691,378
----------
Kansas - 1.14%
Saline County, Single Family
Mortgage, RB, Series A
9.500%, 10/01/11 .............. 40,000 40,857
Sedgwick & Shawnee
County, Single Family
Mortgage-Backed
Securities Programs,
RB, AMT, GNMA
4.700%, 12/01/08 .............. 810,000 795,712
Wichita, Hospital Revenue,
RB, ETM
6.000%, 07/01/04 .............. 40,000 40,594
7.000%, 03/01/06 .............. 45,000 47,246
Wichita, Hospital Revenue,
Wesley Medical Center,
RB, MBIA, ETM
10.000%, 04/01/02 ............. 150,000 160,394
----------
1,084,803
Kentucky - 1.22% ----------
Campbell & Kenton
Counties, Sanitation
District Revenue
Authority, RB, ETM
6.375%, 08/01/03 .............. 225,000 227,988
Kentucky State, Pollution
Abatement, Authority
Revenue, RB, ETM
5.900%, 08/01/03 .............. $ 40,000 $ 40,780
Rural Economic
Development Authority,
RB, Optional Put @ 100,
AMT, LOC
6.750%, 12/01/04 .............. 915,000 892,884
----------
1,161,444
Louisiana - 1.94% ----------
East Baton Rouge Parish
Hospital, RB, ETM
6.200%, 10/01/02 .............. 45,000 45,780
Public Facilities Revenue
Authority, RB, Series A-
6.200%, 03/01/01 1,325,000 1,342,967
State Health Education
Authority, Alton Ochsner
Medical Foundation
Issue-A, RB, ETM
8.750%, 05/01/05 .............. 420,000 453,785
----------
1,842,532
----------
Massachusetts - 1.73%
Boston City Hospital, FHA
Insured, Series A, RB,
Pre-Refunded @ 100 &
102, FHA/D/
7.625%, 08/15/00 .............. 170,000 174,391
Boston City Hospital, FHA
Insured, Series A, RB,
Pre-Refunded @ 100 &
102, FHA/D/
7.650%, 08/15/00 .............. 271,250 279,157
State Development Finance
Agency, Curry College,
Series A, RB, ACA
4.100%, 03/01/04 .............. 175,000 163,889
State Health & Educational
Facilities Authority,
Community Health
Center, RB, Series B,
Mandatory Put @ 100,
LOC/B/
5.500%, 05/15/01 .............. 900,000 893,493
State Industrial Finance
Agency, Ames Safety
Envelope Company,
RB, Mandatory Put @
100, AMT/B/
5.350%, 09/01/00 .............. 130,000 130,206
----------
1,641,136
----------
</TABLE>
See Notes to Financial Statements
-------------------------------------------------------------------------------
51
<PAGE>
Short-Term Municipal Bond
-------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Maine - 1.87%
Bucksport, Solid Waste
Disposal Revenue,
Champ International
Corporation Project, RB
6.250%, 05/01/10 ............... $ 395,000 $ 398,192
Finance Revenue Authority,
Electronic Rate
Stabilization, RB,
AMT, FSA
5.200%, 07/01/18 ............... 1,515,000 1,376,862
-----------
1,775,054
-----------
Maryland - 0.18%
Annapolis, Economic
Development, Saint
John's College
Facility, RB
4.600%, 10/01/02 ............... 175,000 171,540
-----------
Michigan - 1.74%
Building Revenue Authority,
Ionia Maximum Prison,
RB, Series II, ETM
7.250%, 09/01/00 ............... 15,000 15,111
Detroit, Water Supply
System, RB, ETM
8.875%, 01/01/05 ............... 870,000 949,275
Home Corporation, Single
Family Revenue, Series
A, FNMA / GNMA
4.800%, 06/01/19 ............... 460,000 452,024
Kalamazoo, Hospital Finance
Authority, RB, ETM
7.000%, 07/01/01 ............... 215,000 218,137
State Building Authority,
RB, Series II, ETM, MBIA
7.400%, 04/01/01 ............... 15,000 15,278
-----------
1,649,825
-----------
Minnesota - 1.51%
Fridley, Communal
Development Revenue,
Fridley Bus Plaza, RB,
Mandatory
Put @ 100, AMT, LOC/B/
5.375%, 09/01/01 ............... 1,145,000 1,146,419
St. Paul, Science Museum,
COP, ETM
7.500%, 12/15/01 ............... 282,590 289,722
-----------
1,436,141
-----------
Mississippi - 2.61%
Corinth & Alcorn County,
Magnolia Regional Health
Center, Series A, RB
4.750%, 10/01/03 ............... $ 1,000,000 $ 963,860
Gulfport, Hospital Facility
Revenue, Memorial
Hospital at Gulfport,
RB, ETM
6.250%, 07/01/02 ............... 165,000 167,460
Higher Educational
Authority, RB, Series B
6.100%, 07/01/01 ............... 350,000 354,456
Jackson, Housing Authority,
Multifamily, Arbor Peak
Apartment Project, RB,
Mandatory Put @ 100,
AMT, LOC/B/
5.050%, 12/01/01 ............... 1,000,000 993,690
-----------
2,479,466
-----------
Missouri - 3.07%
Freeman Hospital, RB, ETM
6.750%, 08/01/03 ............... 95,000 97,747
Neosho, Water Systems
Revenue, RB
5.875%, 02/01/01 ............... 100,000 101,022
5.875%, 02/01/02 ............... 105,000 106,613
5.875%, 02/01/03 115,000 117,315
Saint Louis County, Single
Family Mortgage,
RB, AMBAC
9.250%, 10/01/16 ............... 25,000 25,207
Saint Louis, Airport
Revenue, RB, ETM
12.100%, 07/01/01 .............. 45,000 48,776
State Housing
Development, Single
Family Mortgage,
RB, AMT, GNMA
6.625%, 12/01/17 ............... 280,000 284,827
St. Louis, Land Clearance
Redevelopment Authority,
RB, Pre-Refunded @ 102/D/
7.750%, 01/01/01 2,065,000 2,139,629
-----------
2,921,136
-----------
Montana - 1.82%
State Higher Education
Assistance, RB,
Series C AMT
5.950%, 12/01/12 ............... 1,715,000 1,732,081
-----------
</TABLE>
See Notes to Financial Statements
-------------------------------------------------------------------------------
52
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Nebraska - 3.26%
Buffalo County, Hospital
Authority, Good Samaritan
Hospital Project,
RB, ETM
7.400%, 11/01/00................ $ 5,000 $ 5,076
Clay County, Industrial
Development Revenue,
Hybrids Cooperative
Project, RB, AMT, LOC
4.750%, 03/15/09................ 1,000,000 914,520
Douglas County, Hospital
Authority, Immanuel
Medical Center, RB, ETM
6.250%, 10/01/00................ 65,000 65,462
Nebhelp Incorporated,
Student Loan Program,
RB, MBIA, AMT
5.875%, 06/01/14................ 1,690,000 1,693,548
Scotts Bluff County, Hospital
Authority, West Nebraska
General Hospital Project,
RB, MBIA, ETM
6.850%, 10/01/00................ 335,000 338,534
State Investment Finance
Authority, Single Family
Mortgage, RB, AMT, GNMA
7.500%, 03/15/15................ 80,000 81,362
------------
3,098,502
------------
Nevada - 0.14%
State Housing Division,
Multi Unit Housing
Revenue, RB,
Issue A, AMT, FNMA
6.450%, 10/01/04................ 35,000 36,013
State, Municipal Bond Bank
Project #18 & 19,
GO, ETM
8.300%, 09/01/00................ 100,000 101,310
------------
137,323
------------
New Hampshire - 0.27%
Housing Finance Authority,
Single Family Housing,
RB, Series B
7.55%, 07/01/09................. 50,000 50,806
State, Housing Finance
Authority, RB, AMT, LOC/C/
6.125%, 01/01/18................ 205,000 205,226
------------
256,032
------------
New Jersey - 9.48%
Economic Development
Authority, Reformed
Church Ministries
4.950%, 12/01/28................ 2,220,000 2,148,716
Educational Facilities Authority
Centenary College
5.000%, 04/30/02................ $ 420,000 $ 417,370
Health Care Facilities,
Financing Authority
Revenue Refunding, RB,
Pre-Refunded @ 102, FHA
6.800%, 02/01/01................ 2,000,000 2,074,220
Health Care Facilities,
Muhlenberg REGL-B,
RB, MBIA
8.000%, 07/01/18................ 850,000 854,616
Health Care Facilities, Saint
Elizabeth Hospital, RB,
Pre-Refunded @ 102/D/
8.250%, 07/01/00................ 245,000 251,326
State Educational Facilities,
Fairleigh Dickinson
University, RB, Series C,
ETM
7.750%, 07/01/01................ 1,110,000 1,132,478
State Turnpike Authority
RB, ETM
10.375%, 01/01/03............... 1,945,000 2,118,377
State Turnpike Authority,
RB, ETM, MBIA
10.375%, 01/01/03............... 15,000 16,243
------------
9,013,346
------------
New Mexico - 1.00%
Albuquerque, CMO, Class
B-2, FGIC/A/
0.000%, 05/15/11................ 1,288,000 572,013
Clovis, Hospital Revenue,
RB, ETM
7.375%, 08/01/03................ 90,000 93,595
Taos County, Local Hospital
Gross, RB, Series B,
Asset Guaranty
5.000%, 05/15/02................ 285,000 284,225
------------
949,833
------------
New York - 1.45%
Battery Park City, New York
Revenue Authority, RB,
Series B
5.200%, 11/01/23................ 620,000 615,127
Onondaga County, Industrial
Development Agency,
Lemoyne College Project,
RB, Series A
5.000%, 03/01/03................ 190,000 186,443
State Dormitory Authority
Revenues, Capital
Appreciation, RB, Series
C, FSA/A/
0.000%, 07/01/04................ 340,000 269,087
See Notes to Financial Statements.
--------------------------------------------------------------------------------
53
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ------ -----
Yates County, Industrial
Development Agency,
Soldiers & Sailors
Memorial Hospital, RB,
Series A, FHA
5.000%, 02/01/09................ $ 320,000 $ 311,350
------------
1,382,007
------------
North Carolina - 0.32%
Medical Care Community
Hospital, Duke University
Hospital Project, RB, ETM
6.700%, 07/01/03................ 293,000 301,485
------------
North Dakota - 0.16%
Minot, Health Care Facilities,
RB, ETM
6.500%, 09/01/07................ 150,000 155,471
------------
Ohio - 2.92%
Barberton Hospital
Improvement Revenue,
RB, ETM
6.500%, 07/15/00................ 15,000 15,061
Elyria, Hospital Revenue,
RB, ETM
6.800%, 04/01/03................ 220,000 226,589
Hamilton County Hospital
Facilities, Saint Francis -
Saint Georges Hospital
Inc., RB, ETM
7.625%, 02/15/01................ 40,000 40,889
Housing Finance Agency,
Single Family Mortgage,
RB, Series A, BIGI
5.750%, 04/01/16................ 305,000 305,000
Lucas County Hospital,
Riverside Hospital Project,
RB, ETM
6.950%, 08/01/04................ 35,000 36,441
Lucas County, Mercy
Hospital Project, RB, ETM
6.000%, 09/01/04................ 175,000 178,579
Mason, Health Care
Facilities, MCV Health
Care Facilities Project,
RB, GNMA
5.250%, 02/20/20................ 45,000 40,536
Middletown, Improvement
Revenue, RB, ETM
6.375%, 04/01/06................ 20,000 20,702
Stark County, Hospital
Revenue Authority,
RB, ETM
6.875%, 12/01/06................ 1,240,000 1,295,130
State Capital Housing
Corporation, Section 8
Assisted, RB, MBIA
4.500%, 01/01/03................ $ 625,000 $ 616,000
------------
2,774,927
------------
Oklahoma - 2.03%
Bryan County, Economic
Development Revenue
Authority, Single Family
Mortgage, RB, Series A
8.600%, 07/01/10................ 70,000 71,546
Oklahoma City, Hospital,
RB, ETM
6.400%, 02/01/05................ 280,000 287,843
Ponca City, Hospital
Revenue Authority,
RB, ETM
7.625%, 04/01/03................ 200,000 207,588
State Industrial Authority,
Baptist Medical Center,
RB, ETM
7.000%, 07/01/03................ 235,000 241,467
State Industrial Authority
Revenue, Presbyterian
Hospital, RB, ETM
6.250%, 10/01/02................ 245,000 249,494
State Turnpike Revenue
Authority, RB, ETM
4.700%, 01/01/06................ 55,000 54,498
Stillwater, Medical Center
Authority, ETM
6.300%, 01/01/04................ 245,000 251,167
Tulsa, Airport
Improvements, Tulsa
International Airport,
RB, FGIC, ETM
6.200%, 06/01/00................ 55,000 55,090
Tulsa, Municipal Airport,
AMT, RB
7.600%, 12/01/30................ 500,000 512,475
-----------
1,931,168
------------
Pennsylvania - 14.27%
Allegheny County, Hospital
Development Revenue
Authority, North Hills,
Passavant Hospital,
RB, ETM
6.750%, 07/01/05................ 70,000 72,759
Allegheny County, Industrial
Development Authority,
Three Parkway Center
East, RB, Optional Put @
100, LOC/C/
5.050%, 12/01/00................ 5,000 4,911
See Notes to Financial Statements.
--------------------------------------------------------------------------------
54
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Allegheny County,
Residential Finance
Authority, Single Family
Mortgage, RB, Series AA,
AMT, GNMA
5.100%, 05/01/01...................... $ 105,000 $ 105,398
Allegheny Valley School
District, GO, ETM
6.000%, 12/01/03...................... 95,000 96,574
Beaver County, Hospital
Authority Revenue, Saint
Francis General Hospital,
RB, ETM
7.750%, 07/15/01...................... 100,000 100,667
Beaver County, Industrial
Development & Pollution
Control Revenue
Authority, RB
6.000%, 05/01/07...................... 25,000 25,050
Bensalem Township, Water
& Sewer Authority,
RB, ETM
5.700%, 11/01/02...................... 15,000 15,162
Blairsville-Saltsburg, School
District, GO, ETM,
AMBAC
9.000%, 05/15/03...................... 45,000 47,590
Bucks County, Saint Mary
Hospital Authority,
RB, ETM
6.625%, 07/01/04...................... 90,000 92,915
California, Area School
Building, MBIA, ETM
5.750%, 05/15/03...................... 45,000 45,501
Cambria County, GO, ETM
8.250%, 06/01/00...................... 25,000 25,086
Chester County, Hospital
Authority, RB, ETM
7.500%, 07/01/09...................... 20,000 21,708
Clearfield Hospital Authority,
Clearfield Hospital
Project, RB
6.875%, 06/01/16...................... 295,000 294,009
Dauphin County, General
Authority, RB, Mandatory
Put @ 100/C/
6.400%, 06/03/02...................... 200,000 203,112
Dauphin County, General
Authority Sub Series
QQQ2- Mandatory Put @
100, RB, AMBAC/B,C/
4.625%, 06/02/03...................... 1,015,000 989,990
Delaware County, Authority
University Revenues,
Villanova University
RB, ETM
9.625%, 08/01/02...................... 55,000 58,248
East Pennsboro Township,
GO, ETM
6.000%, 03/01/02...................... $ 90,000 $ 91,272
Energy Development
Authority, Piney Creek,
RB, Series B, AMT
LOC
7.200%, 12/01/11...................... 15,000 15,194
Hazleton, Health Services,
Authority Hospital, RB,
Pre-Refunded @ 102/D/
8.375%, 01/01/03...................... 2,135,000 2,334,836
Housing Finance Agency,
Single Family Mortgage,
RB, Series 65A, AMT
4.800%, 10/01/22...................... 440,000 428,952
Interboro School District
Authority,
RB, MBIA, ETM
6.400%, 09/01/01...................... 345,000 353,035
Intergovernmental
Corporation Authority,
Special Tax Bond, ETM,
FGIC
6.000%, 06/15/02...................... 110,000 111,898
Lehigh County, Industrial
Development Authority,
RB, ETM
7.200%, 12/15/01...................... 580,000 595,550
Ligonier, Municipal Water
Revenue Authority, RB
6.300%, 04/15/06...................... 95,000 95,108
Montour, School Authority,
RB, ETM, MBIA
6.400%, 12/01/02...................... 70,000 71,168
Northampton County,
Hospital Authority,
RB, ETM
7.500%, 07/01/02...................... 170,000 175,032
Northampton County,
Industrial Development
Authority, Strawbridge
Project, RB, ETM
7.200%, 12/15/01...................... 45,000 46,257
Pennsylvania State, Higher
Education Facilities
Authority, Health Services
Revenue, MBIA RB
4.800%, 11/15/00...................... 200,000 200,097
Philadelphia, Authority for
Industrial Development
Revenues, Mandatory
Put @ 100 LOC/B/
5.000%, 12/01/01...................... 1,200,000 1,190,376
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
55
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Philadelphia, Hospitals &
Higher Educational
Facilities Authority,
Philadelphia Manager
Project, RB
5.500%, 08/01/01...............................$ 1,175,000 $ 1,176,539
Philadelphia, Hospital &
Higher Educational
Facilities Authority,
Temple University
Hospital, RB, Series A
6.000%, 11/15/00............................... 215,000 215,499
Philadelphia Hospitals &
Higher Education,
Saint Agnes Medical
Center Project, RB, ETM,
6.750%, 08/15/01............................... 95,000 95,380
Pittsburgh, Urban
Redevelopment Authority,
Oliver Garage Project,
RB, FGIC, LOC
4.400%, 06/01/01............................... 90,000 89,631
4.550%, 06/01/03............................... 60,000 58,813
Pocono Mountain, School
District,GO, MBIA, ETM
9.100%, 03/01/02............................... 15,000 15,855
Ridgway, Area School
Revenue Authority,
RB, ETM
6.250%, 06/15/02............................... 40,000 40,536
Rochester, Area School
District, GO, MBIA/A/
0.000%, 10/01/00............................... 55,000 53,909
Sayre Boro, Hospital
Authority, RB,
AMBAC, ETM
6.900%, 11/01/02............................... 155,000 159,425
Scranton Lackawanna,
Moses Taylor
Hospital Project, RB, Series A, ETM
8.250%, 07/01/01............................... 65,000 66,528
Southeastern Pennsylvania, Area Schools,
RB, Series A
5.000%, 04/01/01............................... 25,000 25,008
State Finance Authority, Capital
Improvements Program, Investment
Agreement RB
6.600%, 11/01/09............................... 1,250,000 1,317,275
State Higher Education Assistance, RB,
FGIC, Series A/C/
6.800%, 12/01/00............................... 25,000 25,331
Stroudsburg Area, School District, GO,
FGIC, ETM
8.400%, 09/01/01 $ 55,000 $ 55,810
Uniontown Area, School Authority,
RB, ETM,
6.300%, 10/01/02............................... 125,000 127,378
Valley View School Building Authority,
RB, ETM
6.050%, 02/01/02............................... 20,000 20,281
6.250%, 02/01/02............................... 15,000 15,250
Wayne Pike, Joint School Authority, RB,
MBIA, ETM
6.000%, 12/01/07............................... 535,000 552,420
Wilkes-Barre, General Municipal Authority,
Misericordia College, RB, Series B
7.750%, 12/01/12............................... 1,260,000 1,330,447
William Penn, Area School District, GO, ETM
8.000%, 08/01/00............................... 10,000 10,086
Williamsport Area, Joint School Authority,
RB, MBIA, ETM
6.000%, 03/01/07............................... 110,000 112,860
York County, Industrial Development Authority,
Fox Ridge Personal Care Facility,
RB, Series A, Pre-Refunded @ 100/D/
9.500%, 10/01/02............................... 100,000 109,843
-----------
13,581,559
-----------
Rhode Island - 0.05%
Housing & Mortgage,
Finance Corporation,
RB, Series 2
7.150%, 10/01/01.............................. 50,000 50,597
-----------
South Carolina - 0.59%
Charleston, Waterworks &
Sewer Revenue, RB, ETM
10.125%, 01/01/02............................. 40,000 42,398
Medical University
Harborview Office, COP
7.375%, 01/01/04.............................. 500,000 518,360
-----------
560,758
-----------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
56
<PAGE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ----------- -------
<S> <C> <C>
South Dakota - 0.44%
Housing Development
Authority, Home
Ownership Mortgage,
RB, Series E
5.600%, 05/01/01............... $ 50,000 $ 50,404
State Health & Educational
Facilities Authority, Rapid
City Regional Hospital
Project, RB, ETM
7.750%, 09/01/07............... 65,000 70,371
State Health & Educational
Facilities Authority, Saint
Joseph Hospital,
RB, ETM
5.950%, 07/01/02............... 290,000 293,840
----------
414,615
----------
Tennessee - 1.52%
Bristol, Health & Educational
Facilities, RB, ETM
6.900%, 01/01/07............... 140,000 146,880
Fayetteville & Lincoln
County, Industrial
Development Board,
Franke Incorporated
Project, RB, AMT, LOC
5.000%, 06/01/01............... 740,000 740,792
Housing Development
Agency, Homeownership
Program, AMT, RB
7.375%, 07/01/23............... 100,000 101,252
Shelby County, Health &
Educational Authority,
Multi-Family Housing,
Windsor Apartments,
RB, Asset Guaranty
6.500%, 10/01/07............... 100,000 103,636
6.000%, 10/01/02............... 350,000 353,430
----------
1,445,990
----------
Texas - 3.34%
Collin County, Community
College, RB, AMBAC
5.150%, 02/01/07............... 25,000 24,914
Forth Worth, Housing
Financial Services
Program, Single Family
Mortgage, RB, Series A,
AMT, GNMA
7.900%, 06/01/01............... 35,000 35,350
Houston, Housing Finance
Corporation, Single Family
Housing, RB, Series A-1
8.000%, 06/01/14............... $ 240,000 $ 256,267
Matagorda County, Port
of Bay City Authority,
Hoechst Celanese
Corporation Project,
RB, AMT
6.500%, 05/01/26............... 1,250,000 1,218,950
South Plains, Regional
Housing Authority,
Section 8 Assistance
Project, RB, Series A
6.000%, 08/01/00............... 35,000 34,981
Southeast Housing Finance
Corporation, Capital
Appreciation,
Pre-Refunded @ 36.127
RB, Series B/A/,/D/
0.000%, 12/01/02............... 1,100,000 348,161
Texoma, Housing Finance
Corporation, Single Family
Mortgage, RB, AMT
FNMA / GNMA
5.050%, 09/01/07............... 40,000 38,936
Water Residential Finance
Authority, RB, AMBAC
4.700%, 08/15/09............... 1,250,000 1,172,163
4.800%, 08/15/10............... 45,000 42,195
----------
3,171,917
----------
Utah - 0.46%
Ogden City, Housing
Finance Corporation,
Section 8 Assisted
Project, RB, Series A,
FNMA
5.500%, 07/01/05............... 255,000 253,047
Salt Lake City, Industrial
Development, Hermes
Associates Project,
RB, LOC
5.900%, 09/01/02................ 185,000 185,664
----------
438,711
----------
Virginia - 1.60%
Henrico County, Industrial
Development Revenue
Authority, Optional Put @
100, RB, AMT, LOC
4.100%, 03/01/02.................. 10,000 1,464,700
</TABLE>
See Note to Financial Statements.
--------------------------------------------------------------------------------
57
<PAGE>
<TABLE>
Short-Term Municipal Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Face
Description Amount Value
----------- ----------- -------
<S> <C> <C>
State Housing Development
Authority, Multi-Family
Mortgage, RB, Series A
6.125%, 11/01/09............... $ 55,000 $ 55,078
-----------
1,519,778
-----------
Washington - 2.40%
State Housing Finance
Authority, Nonprofit
Housing Revenue, Taxable
RB, Series B, ACA
6.500%, 07/01/08............... 1,690,000 1,610,198
State Housing Finance
Commission, Multi-Family
Housing, Summit
Apartments Project,
Mandatory Put @ 100,
AMT, RB, Series A,
LOC/B/,/C/
4.900%, 07/01/08............... 165,000 153,999
Washington County, Health
Facilities Development
Corporation, Trinity
Community Medical
Center, RB, ACA
4.600%, 06/01/02............... 320,000 314,209
Washington State, Public
Power Supply, Systems
Nuclear Project, Revenue
Refunding, RB, Series B
7.375%, 07/01/04............... 200,000 204,658
-----------
2,283,064
-----------
West Virginia - 1.06%
State Board of Regents,
RB, ETM
6.000%, 04/01/04............... 315,000 319,820
Wheeling, Parking Revenue,
RB, ETM
7.125%, 03/01/02............... 30,000 30,883
Wood County, Building
Community, Saint
Joseph's Hospital
Parkersburg, RB,
AMBAC, ETM
6.625%, 01/01/06............... 630,000 652,535
-----------
1,003,238
-----------
Wyoming - 1.01%
Green River-Sweetwater
County, Joint Powers
Revenue Board, RB,
Series B, FSA
4.500%, 03/01/14............... 925,000 918,923
State Community
Development Authority,
Single Family Mortgage,
RB, Series B, AMT
8.000%, 06/01/08 $ 45,000 $ 45,795
-----------
964,718
-----------
Total Municipal Bonds
(Cost $93,681,324)............... 92,870,448
-----------
Shares
------
Cash Equivalents - 1.03%
Provident Institutional
Municipal Cash Fund
(Cost $984,148)................ 984,148 984,148
-----------
Total Investments
(Cost $94,665,472).............. 98.70% 93,854,596
Other Assets in Excess
of Liabilities.................. 1.30% 1,236,089
------- -----------
Total Net Assets................... 100.00% $95,090,685
======= ===========
</TABLE>
--------------------------------------------------------------------------------
/A/ Zero Coupon Security
/B/ Mandatory Put/Tender Security. The mandatory put/tender date is shown as the
maturity date on the Schedule of Investments.
/C/ Variable Rate Security. The rate reported on the Schedule of Investments is
the rate in effect as of April 30, 2000.
/D/ Pre-Refunded Security. The pre-refunded date is shown as the maturity date
on the Schedule of Investments.
AMT Income from security may be subject to
alternative minimum tax.
CMO Collaterized Mortgage Obligation
COP Certificate of Participation
ETM Escrowed to Maturity
GO General Obligation
LOC Securities are held in connection with a letter of credit by a major
commercial bank.
RB Revenue Bond
The following organizations have provided underlying credit support for the
securities as defined in the Schedule of Investments.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corporation
BIGI Bond Investors Guaranty Insurance
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GIC Guaranteed Investment Corporation
GNMA Government National Mortgage Association
HUD Housing & Urban Development
MBIA Municipal Bond Investors Assurance
See Note to Financial Statements.
--------------------------------------------------------------------------------
58
<PAGE>
Short-Term Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Asset-Backed Securities - 10.64%
Advanta Mortgage Loan
Trust, Series 1993-4,
Class A-1
5.500%, 03/25/10....................... $ 71,257 $ 68,116
Advanta Mortgage Loan
Trust, Series 1997-3, Class A3
6.690%, 03/25/17....................... 222,320 218,068
Amresco Residential
Securities, Series 1996-3,
Class A5
7.550%, 02/25/23....................... 640,694 638,894
Delta Funding Home Equity
Loan Trust,
Series 1996-3,
Class A2
6.525%, 10/25/11....................... 50,448 50,200
First Sierra Receivables,
Series 1996-2, Class A
6.290%, 11/10/04....................... 832,286 827,467
Lehman Home Equity Loan
Trust, Series 1995-7,
Class A3
6.840%, 08/25/10....................... 88,579 88,180
Saxon Asset Securities Trust,
Series 1999-2, Class BF1A
7.925%, 08/25/01....................... 270,997 264,984
The Money Store Home
Equity Trust, Series 1996-D,
Class A13
6.635%, 09/15/14....................... 469,541 466,578
UCFC Home Equity Loan,
Series 1995-A1, Class A5
8.550%, 01/10/20....................... 669,657 672,691
UCFC Home Equity Loan,
Series 1996-A1, Class A6
6.700%, 11/15/19....................... 500,000 496,124
-----------
Total Asset-Backed Securities
(Cost $2,983,336)........................ 3,791,302
-----------
Corporate Obligations - 10.66%
Archstone Communities
Trust
6.750%, 10/23/00....................... 200,000 199,398
6.370%, 10/15/01....................... 400,000 390,515
Bear Stearns
6.700%, 08/01/03....................... 250,000 241,539
Colonial Realty
7.500%, 07/15/01....................... 350,000 345,952
Colonial Realty, MTN
7.930%, 08/09/02....................... 325,000 316,146
Erac USA Finance, 144A
6.375%, 05/15/03....................... 350,000 333,143
Erac USA Finance, MTN
7.000%, 06/15/00....................... 350,000 350,201
Erp Operating
6.150%, 09/15/00....................... $ 500,000 $ 497,263
Florida Residential Property &
Casualty Insurance,
Series A, MBIA
7.375%, 07/01/03....................... 100,000 97,579
Midland Funding I
10.330%, 07/23/02...................... 423,696 437,440
Summit Properties Partnership
6.750%, 07/30/01....................... 500,000 488,609
Wellsford Residential
7.250%, 08/15/00....................... 50,000 49,941
9.375%, 02/01/02....................... 50,000 51,039
-----------
Total Corporate Obligations
(Cost $3,848,268)........................ 3,798,765
-----------
Mortgage Backed Obligations - 9.08%
General Electric Capital
Mortgage Services, CMO,
Series 1998-12, Class 1A1
6.500%, 07/25/28....................... 375,000 366,825
Green Tree Financial, Series
1994-6, Class A5
8.250%, 01/15/20....................... 87,000 87,592
Merrill Lynch Mortgage
Investors, Series 1995-C3,
Class A1
6.759%, 12/26/25....................... 357,220 351,705
Oakwood Mortgage
Investors, Series 1996-B,
Class A3
7.100%, 10/15/26....................... 126,480 126,137
Oakwood Mortgage
Investors, Series 1997-C,
Class A2
6.450%, 11/15/27....................... 643,452 640,911
Prudential Securities Financial
Asset Funding Corporation,
Series 1993-4, Class A4
6.830%, 09/25/09....................... 600,000 594,803
Residential Accredit Loans,
CMO, Series 1997-QS6,
Class A4
7.500%, 06/25/12....................... 500,000 488,605
Residential Accredit Loans,
CMO, Series 1998-QS1,
Class A2
7.000%, 01/25/28....................... 589,819 579,780
-----------
Total Mortgage Backed Obligations
(Cost $4,116,752)....................... 3,236,358
-----------
Taxable Municipal Bonds - 35.72%
Alaska State Financial
Corporation, RB, Series C,
MBIA / FHA
7.400%, 01/01/02....................... 85,000 85,194
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
59
<PAGE>
Short-Term Fixed Income
---------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Cleveland County, Oklahoma,
Home Loan Authority, RB,
Series A-2, MBIA
7.730%, 10/15/09....................... $ 400,402 $ 400,286
Comanche County, Oklahoma,
Home Finance Authority,
RB, FNMA/FHA
6.150%, 12/01/00....................... 35,000 34,959
Costa Rica, U.S. Government
Guarantee
7.360%, 08/01/01....................... 880,000 879,560
Cuyahoga County, Ohio,
Maple Care, RB, GNMA
7.350%, 08/20/00....................... 50,000 50,065
Denver, Colorado, City And
County Multi-Family
Housing, Buerger Brothers,
RB, Series B, FHA
6.750%, 05/01/01....................... 50,000 49,904
Erie County, New York, Water
Authority, RB, AMBAC
5.875%, 12/01/03....................... 140,000 134,421
Florida State, Housing Finance
Agency, RB, Series S-2
6.650%, 06/01/01....................... 70,000 69,833
Fresno, California, Multi-
Family Housing Authority,
Woodlands Apartments
Project, RB, GNMA
7.250%, 11/20/20....................... 205,000 205,084
Greater Kentucky Housing
Assistance Corporation,
RB, Series B, MBIA / FHA
6.500%, 01/01/02....................... 20,000 19,990
Halifax Hospital Medical
Center, Florida Health Care
Facilities, RB, ACA
6.375%, 04/01/01....................... 920,000 909,346
Harris County, Texas, Housing
Finance Corporation, Single
Family Mortgage Revenue,
Series A
7.750%, 09/01/14....................... 1,250,000 1,230,413
Illinois, Housing Development
Authority, Affordable
Housing Project, RB,
AMBAC
7.480%, 06/01/00....................... 420,000 420,101
Illinois State Health Facilities
Authority, RB, Series C,
MBIA
10.300%, 08/15/03...................... 426,000 426,818
Indianapolis, Indiana,
Economic Development
Authority, Castle Dore, RB,
Series B, FHA
6.750%, 12/01/00....................... 35,000 34,980
Kansas City, Missouri,
Industrial Development
Authority, Hilltop Village
Apartments, RB, Series B,
FNMA
6.700%, 10/01/02....................... $ 95,000 $ 94,364
King County, Washington,
Low Income Housing
Authority, Fred Lind Manor,
RB, Series B, GNMA
7.250%, 06/20/00....................... 20,000 20,010
Maine State, Bond
Anticipation Notes
7.250%, 06/22/00....................... 1,050,000 1,050,903
Massachusetts State,
Industrial Finance Agency,
Briscoe Housing
Assistance, Series B, FHA
7.100%, 02/01/12....................... 800,000 784,920
Oak Ridge, Tennessee,
Industrial Development
Board, The Gardens, Series
B, RB, GNMA
6.150%, 08/20/03....................... 505,000 494,844
Ohio Capital Housing
Mortgage Corporation,
Bella Vista, RB, FHA
6.300%, 02/01/03....................... 260,000 254,810
Ohio Housing Financial
Agency, Ravenwood
Project, RB, FHA
6.125%, 09/01/04....................... 140,000 136,011
Oklahoma Housing Finance
Agency, Single Family
Mortgage, RB, MBIA
8.700%, 09/01/13....................... 125,000 127,919
Pima County, Arizona,
Industrial Development
Authority, Western Winds,
RB, Series B, HUD
6.550%, 06/01/01....................... 200,000 199,362
Polk County, Florida, Housing
Finance Authority, REMIC,
Series 1, MBIA
9.550%, 01/15/11....................... 101,413 100,784
Prince Georges County,
Maryland, Housing
Authority, Foxglenn Project,
RB, GNMA
6.250%, 11/20/04....................... 240,000 235,394
Rensselaer County, New York
7.900%, 03/15/01....................... 1,724,881 1,715,651
Rockford, Illinois, RB, Series
B, MBIA
7.450%, 01/01/03....................... 205,000 205,174
</TABLE>
See Notes to Financial Statement.
--------------------------------------------------------------------------------
60
<PAGE>
Short-Term Fixed Income
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Sedgwick & Shawnee
Counties, Kansas, Single
Family Mortgage, RB,
GNMA
8.375%, 06/01/18............ $ 350,000 $ 356,552
Shawnee, Kansas, Multi-
Family Housing, Haverford
West Apartments, RB,
Series B, FNMA
6.750%, 06/01/02............ 60,000 59,593
Southeast Texas, Housing
Finance Corporation, RB/A/
0.000%, 09/01/17............ 3,000,000 750,750
Spokane, Washington, Elderly
Housing Authority, Cheney
Care Center, RB, Series B,
GNMA
6.125%, 08/20/04............ 125,000 121,730
State Development Finance
Authority, Series D,
Class D/A/
0.000%, 02/15/14............ 1,720,000 501,191
Tarrant County, Texas, Health
Facilities Development
Corporation, South Central
Project, RB, MBIA / FHA
6.750%, 01/01/37............ 270,000 267,627
Tarrant County, Texas,
Housing Financial
Corporation, Series B, RB,
FNMA
6.550%, 09/01/02............ 160,000 157,429
Wilmington, Delaware, Multi-
Family Rent, Prestwyck
Apartments, RB, Series B,
FHA
6.625%, 11/01/03............ 135,000 134,309
------------
Total Taxable Municipal Bonds
(Cost $12,876,270)............. 12,720,281
------------
U.S. Treasury Obligations - 26.03%
U.S. Treasury Notes
4.625%, 12/21/00............ 5,000,000 5,015,835
6.500%, 05/31/01............ 4,260,000 4,257,338
------------
(Cost $9,279,269)........... 9,273,173
------------
U.S. Government Mortgage-
Backed Obligations - 4.24%
Federal Home Loan Mortgage
Corporation, CMO, Series
1311, Class I
7.500%, 03/15/21............ 63,964 63,897
Federal Home Loan Mortgage
Corporation, Series 128,
Class I
6.500%, 02/15/21............ 133,228 127,506
Federal National Mortgage
Association, REMIC, Series
1995-23, Class M
6.500%, 10/25/22............ $ 40,352 $ 40,096
Federal National Mortgage
Association, REMIC, Series
1997-W2, Class A3
6.575%, 11/25/27............ 400,000 394,224
Federal National Mortgage
Association, Series 1995-
M2, Class C
6.801%, 05/25/28............ 496,657 489,654
Federal National Mortgage
Association, Series 1997-
27, Class B
7.000%, 02/18/25............ 190,000 188,203
Government National
Mortgage Association,
CMO, Series 1998-23,
Class DA
8.500%, 10/20/12............ 206,437 208,154
------------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $1,535,935).............. 1,511,734
------------
Shares
------
Cash Equivalent - 2.64%
SEI Daily Income Trust
Government II
(Cost $939,881)............. 939,881 939,881
------------
Total Investments
(Cost $35,579,711)............. 99.01% 35,271,494
------------
Other Assets in Excess of
Liabilities.................... 0.99% 353,877
======= ------------
Total Net Assets................. 100.00% $ 35,625,371
======= ============
</TABLE>
--------------------------------------------------------------------------------
/A/ Zero Coupon Security
/B/ Variable Rate Security. The rate reported on the Schedule of Investments is
the rate in effect as of April 30, 2000. The maturity date shown is the next
reset date.
CMO Collateralized Mortgage Obligation
CPO Certificate of Participation
GO General Obligation
MTN Medium Term Note
RB Revenue Bond
REMIC Real Estate Mortgage Investment Conduit
The following organizations have provided underlying credit support for the
securities as defined in the Schedule of Investment.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corporation
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
HUD Housing and Urban Development
MBIA Municipal Bond Investors Assurance
See Notes to Financial Statements.
--------------------------------------------------------------------------------
61
<PAGE>
High Yield Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Corporate Bonds - 95.92%
Automotive - 0.53%
Astra Overseas Finance
BV, 144A
6.688%, 12/31/05............ $ 2,500,000 $ 1,812,500
-----------
Cable - 11.30%
Adelphia Communications
7.875%, 05/01/09............ 3,840,000 3,278,400
Cable Satisfaction
International
12.750%, 03/01/10........... 3,650,000 3,412,750
Cablevision SA
13.750%, 05/01/09........... 170,000 162,775
Cablevision SA, 144A
13.750%, 04/30/07........... 7,400,000 7,178,000
Classic Cable Incorporated,
144A/A/
9.375%, 08/01/09............ 2,520,000 2,356,200
@Entertainment, Series B/A/
0.000%, 02/01/09............ 12,125,000 7,396,250
James Cable Partners,
Series B
10.750%, 08/15/04........... 5,483,000 5,400,755
Ono Finance
13.000%, 05/01/09........... 4,310,000 4,396,200
RBS Participacoes SA,
Reg S
11.000%, 04/01/07........... 2,925,000 2,440,471
Supercanal Holdings SA,
Reg S
11.500%, 05/15/05........... 2,550,000 1,448,966
United Pan-Europe
Communications, 144A
11.250%, 02/01/10........... 1,645,000 1,529,850
-----------
39,000,617
-----------
Consumer Manufacturing - 1.01%
International De Ceramica,
Reg S
9.750%, 08/01/02............ 3,950,000 3,482,849
-----------
Energy - 4.30%
Ocean Energy, Series B
8.375%, 07/01/08............ 500,000 480,000
Parker & Parsley
8.250%, 08/15/07............ 2,000,000 1,888,348
Petroleos Mexicanos,
Series P
9.500%, 09/15/27............ 1,470,000 1,484,700
Pioneer Natural Resource
6.500%, 01/15/08............ 1,110,000 941,964
9.625%, 04/01/10............ 4,795,000 4,907,313
7.200%, 01/15/28............ 250,000 193,262
Pride International
Incorporated
10.000%, 06/01/09........... $1,850,000 $ 1,854,625
Ram Energy
11.500%, 02/15/08........... 1,500,000 738,750
RBF Finance Company
11.000%, 03/15/06........... 2,250,000 2,368,125
-----------
14,857,087
-----------
Financial - 1.19%
HSBC Capital Funding, 144A
10.176%, 12/31/49........... 2,445,000 2,536,333
Labranche & Company, 144A
12.000%, 03/01/07........... 1,625,000 1,576,250
-----------
4,112,583
-----------
Fixed Communications - 11.58%
E.SPIRE Communications,
PIK
14.750%, 07/15/08........... 1,154,000 369,280
Global Crossing Holdings,
PIK
10.500%, 12/01/08........... 12,080,000 11,838,400
Interamericas
Communications
14.000%, 10/27/07........... 10,700,000 11,823,500
Intermedia Communications,
Series B, PIK
13.500%, 03/31/09........... 5,709 5,452,095
Metromedia Fiber Network
10.000%, 12/15/09........... 3,585,000 3,414,713
MGC Communications, 144A
13.000%, 04/01/10........... 1,000,000 920,000
MGC Communications, Series B
13.000%, 10/01/04........... 1,060,000 1,075,900
Williams Communications
Group
10.700%, 10/01/07........... 4,800,000 4,896,000
10.875%, 10/01/09........... 180,000 180,900
-----------
39,970,788
-----------
Fixed Communications - Intl. - 13.04%
360Networks, Reg S
13.000%, 05/01/08........... 3,610,000 3,205,675
Alestra SA
12.125%, 05/15/06........... 7,675,000 7,483,125
Atlantic Telecom Group PLC,
144A
13.000%, 01/15/10........... 800,000 713,362
Bestel SA
12.750%, 05/15/05........... 5,415,000 4,115,400
Call-Net Enterprises
Incorporated
8.000%, 08/15/08............ 335,000 211,050
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
62
<PAGE>
High Yield Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Call-Net Enterprises
Incorporated/A/
8.940%, 08/15/08.............. $ 3,250,000 $ 1,267,500
0.000%, 05/15/09.............. 6,245,000 2,248,200
Enitel ASA, Reg S
12.500%, 04/15/10............. 2,125,000 1,956,547
Flag Telecom Holdings,
Reg S
11.625%, 03/30/10............. 1,000,000 854,015
GT Group Telecom/A/
13.250%, 02/01/10............. 3,250,000 1,738,750
Jazztel PLC
14.000%, 04/01/09............. 1,825,000 1,870,625
Maxcom Telecomunicacione
13.750%, 04/01/07............. 3,375,000 3,341,250
Netia Holdings, Series B/A/
0.000%, 11/01/07.............. 12,400,000 8,742,000
Tele1 Europe BV
13.000%, 05/15/09............. 1,705,000 1,747,625
Versatel Telecom BV
11.875%, 07/15/09............. 500,000 490,000
Versatel Telecom BV, 144A
4.000%, 03/30/05.............. 415,000 370,075
Viatel/A/
0.000%, 04/15/08.............. 8,400,000 4,662,000
-----------
45,017,199
-----------
Food & Beverage - 4.19%
Agrilink Foods
11.875%, 11/01/08............. 945,000 836,325
Bepensa SA, Reg S
9.750%, 09/30/04.............. 2,975,000 2,751,875
Doane Pet Care Company
9.750%, 05/15/07.............. 2,200,000 1,925,000
Fage Dairy Industries
9.000%, 02/01/07.............. 3,050,000 2,531,500
Gruma SA
7.625%, 10/15/07.............. 7,515,000 6,431,324
-----------
14,476,024
-----------
General Industrial - 1.78%
Alliance Laundry Systems,
Series B
9.625%, 05/01/08.............. 3,810,000 3,133,725
Precision Partners, 144A
12.000%, 03/15/09............. 3,375,000 2,193,750
United Rentals
8.800%, 08/15/08.............. 910,000 800,800
-----------
6,128,275
-----------
Healthcare - 1.15%
Beverly Enterprises
9.000%, 02/15/06.............. 1,575,000 1,334,813
DJ Orthopedics
12.625%, 06/15/09............. 2,860,000 2,641,925
-----------
3,976,738
-----------
Media - 4.56%
Antenna TV SA
9.000%, 08/01/07.............. $ 8,000,000 $ 7,260,000
Fox Family Worldwide/A/
0.000%, 11/01/07.............. 13,875,000 8,463,750
-----------
15,723,750
-----------
Metals & Mining - 2.17%
AEI Resources, 144A
10.500%, 12/15/05............. 6,410,000 961,500
Grupo Minero Mexico SA,
Series A
8.250%, 04/01/08.............. 1,000,000 810,000
Grupo Minero Mexico,
Series B
9.250%, 04/01/28.............. 7,155,000 5,724,000
-----------
7,495,500
-----------
Mobile Communications - 21.71%
Airgate PCS/A/
13.500%, 10/01/09............. 4,680,000 2,726,100
Alamosa PCS Holdings/A/
12.875%, 02/15/10............. 4,975,000 2,587,000
Comunicacion Cellular,
144A/A/
14.125%, 03/01/05............. 9,625,000 6,328,438
CTI Holdings/A/
0.000%, 04/15/08.............. 8,650,000 5,363,000
Dobson Communications
12.250%, 12/15/08............. 910,000 946,400
Dobson Communications,
PIK
12.250%, 01/15/08............. 14,790 1,464,210
Grupo IUSACELL SA, 144A
14.250%, 12/01/06............. 8,475,000 8,856,375
Grupo IUSACELL SA,
Series B
10.000%, 07/15/04............. 3,400,000 3,289,500
Leap Wireless
14.500%, 04/15/10............. 3,670,000 1,743,250
Occidente Y Caribe Cellular,
Series B/A/
14.000%, 03/15/04............. 10,545,000 6,537,900
Pannon Finance BV, Reg S
7.750%, 08/03/04.............. 3,450,000 3,119,975
PTC International Finance
BV/A/
10.750%, 07/01/07............. 10,200,000 7,242,000
PTC International Finance,
144A
11.250%, 12/01/09............. 2,600,000 2,704,000
Rural Cellular Corporation,
Series B, PIK
11.375%, 05/15/00............. 2,260 2,169,600
Slovak Wireless Finance
Company, 144A
11.250%, 03/30/07............. 2,575,000 2,342,993
Telecorp PCS
11.625%, 04/15/09............. 3,680,000 2,410,400
</TABLE>
See Notes to.Financial Statements.
--------------------------------------------------------------------------------
63
<PAGE>
High Yield Bond
--------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Description Amount Value
----------- ------ -----
<S> <C> <C>
Total Access
Communications, Reg S
7.625%, 11/04/01.............. $ 2,280,000 $ 2,086,200
8.375%, 11/04/06.............. 875,000 748,125
Tritel PCS/A/
12.750%, 05/15/09............. 7,895,000 5,210,700
US Unwired, 144A/A/
13.375%, 11/01/09............. 5,575,000 3,122,000
Voicestream Wire, 144A
10.375%, 11/15/09............. 1,270,000 1,289,050
Voicestream Wire, 144A/A/
11.875%, 11/15/09............. 4,285,000 2,635,274
-----------
74,922,490
-----------
Mobile Communications
Towers & Paging - 5.92%
Crown Castle, 144A
12.750%, 12/31/25............. 8,923 9,101,460
Pinnacle Holdings/A/
0.000%, 03/15/08.............. 12,170,000 8,032,200
SBA Communications
Corporation/A/
12.000%, 03/01/08............. 4,790,000 3,305,100
-----------
20,438,760
-----------
Paper & Packaging - 2.13%
APP China Group
14.000%, 03/15/10............. 1,880,000 1,504,000
Indah Kiat
10.000%, 07/01/07............. 1,615,000 1,065,900
Repap New Brunswick
10.625%, 04/15/05............. 2,855,000 2,690,838
Sweetheart Cup
10.500%, 09/01/03............. 2,265,000 2,083,800
-----------
7,344,538
-----------
Services - 0.89%
Allied Waste, North America,
Series B
7.625%, 01/01/06.............. 100,000 74,000
10.000%, 08/01/09............. 1,000,000 677,500
American Plumbing &
Mechanic, Series B
11.625%, 10/15/08............. 2,610,000 2,303,325
-----------
3,054,825
-----------
Supermarkets & Drugs - 0.05%
Jitney - Jungle Stores
12.000%, 03/01/06............. 1,000,000 180,000
-----------
Technology - 4.29%
Covad Communications
Group, Series B/A/
13.500%, 03/15/08............. 2,165,000 1,320,650
Cybernet Internet Service
14.000%, 07/01/09............. 1,500,000 1,155,000
Exodus Communications
10.750%, 12/15/09............. 1,600,000 1,596,000
Globix Corporation, 144A
12.500%, 02/01/10............. $ 3,790,000 $ 3,335,200
Northpoint Communication
Group, 144A
12.875%, 02/15/10............. 1,810,000 1,610,900
PSINet
11.000%, 08/01/09............. 2,125,000 1,870,000
Viasystems
9.750%, 06/01/07.............. 1,250,000 1,078,125
Viasystems, Series B
9.750%, 06/01/07.............. 860,000 741,750
WAM!Net, Series B/A/
0.000%, 03/01/05.............. 3,810,000 2,095,500
-----------
14,803,125
-----------
Transportation - 3.98%
Budget Group Incorporated
9.125%, 04/01/06.............. 3,535,000 2,863,350
Cenargo International PLC
9.750%, 06/15/08.............. 2,045,000 1,717,800
Railworks Corporation
11.500%, 04/15/09............. 3,600,000 3,402,000
Sea Containers
10.750%, 10/15/06............. 1,035,000 781,425
Stena AB
10.500%, 12/15/05............. 725,000 670,625
8.750%, 06/15/07.............. 5,200,000 4,316,000
-----------
13,751,200
-----------
Utilities - 0.15%
Orion Power Holdings, 144A
12.000%, 05/01/10............. 500,000 501,250
-----------
Total Corporate Bonds
(Cost $347,121,045).............. 331,050,098
-----------
Shares
------
Common Stock - 0.73%
Classic Communications*.......... 1,500 25,005
Firstcom Corporation*............ 42,000 871,500
Tele1 Europe Holding
AB-ADR*....................... 105,675 1,637,963
-----------
Total Common Stock
(Cost $662,395).................. 2,534,468
-----------
Warrants - 1.40%
Airgate PCS*..................... 3,930 726,068
Atlantic Telecom*................ 2,050 111,918
Bell Technology/Globix*.......... 1,500 401,121
Cybernet Internet Service*....... 1,500 208,124
Jazztel PLC*..................... 15,000 2,636,250
Ono Finance *.................... 5,000 750,000
-----------
Total Warrants
(Cost $950,305).................. 4,833,481
-----------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
64
<PAGE>
High Yield Bond
-------------------------------------------------------------------------------
Schedule of Investments April 30, 2000 (Unaudited)
Description Value
Total Investments
(Cost $348,733,745)...... 98.05% $338,418,047
Other Assets in Excess
of Liabilities........... 1.95% 6,733,277
------ ------------
Total Net Assets........... 100.00% $345,151,324
====== ============
-----------------------------------------------------
* Non-income producing security.
/A/ Step Up Bond -- The rate reflected on the Schedule of Investments is the
rate in effect on April 30, 2000. The initial coupon on a step up bond
changes on a specific date, to a predetermined higher rate.
PIK Payment-In-Kind Security
144A Security exempt from registration under Rule 144A of the Security Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See Notes to Financial Statements.
-------------------------------------------------------------------------------
65
<PAGE>
Domestic Fixed Income Funds
--------------------------------------------------------------------------------
Statements of Assets and Liabilities April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Short-Term Short-Term
Municipal Fixed Municipal Fixed High Yield
Bond Income Bond Income Bond Assets
<S> <C> <C> <C> <C> <C>
Assets
Investment at Value/1/................................. $483,028,466 $1,165,180,056 $93,854,596 $35,271,494 $338,418,047
Cash................................................... -- -- -- -- 4,227,320
Receivable for Securities Sold......................... -- 18,862,085 -- 887,129 11,450,934
Receivable for Capital Shares Sold..................... 1,026,616 1,464,802 147,398 97,000 2,483,439
Interest Receivable.................................... 8,671,927 14,165,594 1,852,361 502,280 5,953,725
Net Unrealized Appreciation on Forward
Currency Contracts................................... -- -- -- -- 864,564
------------ -------------- ----------- ----------- ------------
Total Assets.............................................. 492,727,009 1,199,672,537 95,854,355 36,757,903 363,398,029
------------ -------------- ----------- ----------- ------------
Liabilities
Due to Advisor......................................... 141,673 441,249 11,221 3,357 140,207
Due to Administrator................................... 84,818 153,814 11,278 10,093 43,486
Due to Custodian....................................... -- 26,248 14,385 13,167 6,555
Payable for Securities Purchased....................... 1,942,813 13,554,014 299,173 398,438 14,850,502
Payable for Capital Shares Redeemed.................... 22,969 364,650 66,463 488,439 --
Dividend Payable....................................... 2,075,611 6,423,507 349,765 174,878 3,036,573
Net Unrealized Depreciation on Forward
Currency Contracts................................... -- -- -- -- 95,631
Accrued Other Expenses................................. 114,686 96,372 11,385 44,160 73,751
------------ -------------- ----------- ----------- ------------
Total Liabilities......................................... 4,382,570 21,059,854 763,670 1,132,532 18,246,705
------------ -------------- ----------- ----------- ------------
Net Assets................................................ $488,344,439 $1,178,612,683 $95,090,685 $35,625,371 $345,151,324
============ ============== =========== =========== ============
Composition of Net Assets
Capital Shares of Institutional Class/2/ (unlimited
authorization $0.001 par value). Based on
Outstanding Shares of Beneficial Interest............ $500,488,724 $1,219,278,477 $96,863,571 $35,962,838 $355,941,374
Capital Shares of Investment Class/3/ (unlimited
authorization $0.001 par value).
Based on Outstanding Shares
of Beneficial Interest............................... 12,883,083 10,043,634 241,497 -- 3,615,691
Undistributed Net Investment Loss...................... (38,626) (243,877) (3,406) (2,892) (349,358)
Accumulated Net Realized Loss from Securities
and Forward Currency Contracts....................... (8,256,106) (21,739,513) (1,200,100) (26,324) (3,979,577)
Net Unrealized Depreciation on Investments............. (16,732,636) (28,726,038) (810,877) (308,251) (10,887,686)
Net Unrealized Appreciation on Forward
Currency Contracts................................... -- -- -- -- 810,880
------------ -------------- ----------- ----------- ------------
Net Assets................................................ $488,344,439 $1,178,612,683 $95,090,685 $35,625,371 $345,151,324
============ ============== =========== =========== ============
Computation of Net Asset Value
Institutional Class:
Net Assets............................................. 475,659,841 1,168,496,640 94,852,276 35,625,371 341,852,183
Shares Outstanding..................................... 44,876,183 116,446,866 9,376,725 3,596,344 37,535,600
Net Asset Value Per Share.............................. $ 10.60 $ 10.03 $ 10.12 $ 9.91 $ 9.11
Investment Class:
Net Assets............................................. 12,684,598 10,116,043 238,409 -- 3,299,141
Shares Outstanding..................................... 1,197,045 1,008,511 23,582 -- 362,238
Net Asset Value Per Share.............................. $ 10.60 $ 10.03 $ 10.11 -- $ 9.11
</TABLE>
--------------------------------------------------------------------------------
/1/ Cost of Investments Investments
------------------- --------------
Municipal Bond Fund $ 499,761,102
Fixed Income Fund 1,193,906,093
Short-Term Municipal Bond Fund 94,665,472
Short-Term Fixed Income Fund 35,579,711
High Yield Bond Fund 348,733,745
/2/ On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/ On February 28, 2000 the Service Shares were renamed the Investment
Class.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
66
<PAGE>
Domestic Fixed Income Funds
________________________________________________________________________________
Statements of Operations For the 6 months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Short-Term Short-Term
Municipal Fixed Municipal Fixed High Yield
Bond Income Bond Income Bond
<S> <C> <C> <C> <C> <C>
Investment Income
Interest..................................................... $15,749,074 $42,140,500 $2,612,303 $991,167 $23,431,646
----------- ----------- ---------- -------- -----------
Total Investment Income......................................... 15,749,074 42,140,500 2,612,303 991,167 23,431,646
----------- ----------- ---------- -------- -----------
Expenses
Investment Advisory Fee...................................... 1,092,186 2,437,565 219,080 57,422 886,488
Administration Services...................................... 327,656 726,410 65,724 17,227 212,763
Custody Fee.................................................. 100,641 76,405 49,438 16,008 52,646
Registration & Filing Fees................................... 12,194 22,803 34,526 13,670 11,031
Professional................................................. 13,439 11,224 29,209 27,918 29,542
Printing Fees................................................ 9,296 9,297 8,747 8,773 6,722
Servicing Plan Fee........................................... 16,394 10,841 307 - 6,552
Trustees" Fees............................................... 4,775 2,025 5,876 5,875 5,810
Transfer Agency Fee.......................................... 428 428 428 428 338
Miscellaneous................................................ 8,149 4,239 3,187 2,387 59,049
----------- ----------- ---------- -------- -----------
Total Expenses............................................... 1,585,158 3,301,237 416,522 149,708 1,270,941
Less: Fee Waivers or
Expense Reimbursements..................................... (64,915) -- (114,499) (70,753) (52,195)
----------- ----------- ---------- -------- -----------
Net Expenses................................................. 1,520,243 3,301,237 302,023 78,955 1,218,746
----------- ----------- ---------- -------- -----------
Net Investment Income........................................... 14,228,831 38,839,263 2,310,280 912,212 22,212,900
----------- ----------- ---------- -------- -----------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions:
Net Realized Gain (Loss) from:
Investment Transactions.................................... (8,096,703) (10,332,260) (1,049,865) (11,070) 1,426,100
Foreign Currency Transactions.............................. -- -- -- -- (107,226)
Net Change in Unrealized Appreciation/
(Depreciation):
On Investments............................................. (3,578,878) (6,473,276) 877,218 (119,756) (192,633)
On Foreign Currencies and Forward
Currency Contracts....................................... -- -- -- -- 810,878
----------- ----------- ---------- -------- -----------
Net Realized and Unrealized Gain (Loss) on
Investments, Foreign Currencies and
Forward Currency Contracts................................... (4,517,825) (16,805,536) (172,647) (130,826) 1,937,119
----------- ----------- ---------- -------- -----------
Net Increase in Net Assets
from Operations.............................................. $ 9,711,006 $22,033,727 $2,137,633 $781,386 $24,150,019
=========== =========== ========== ======== ===========
</TABLE>
See Notes to Financial Statements.
________________________________________________________________________________
67
<PAGE>
<TABLE>
<CAPTION>
Domestic Fixed Income Funds
----------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
Municipal Bond Fixed Income
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
April 30,2000/1/ Oct 31, 1999 April 30,2000/1/ Oct 31, 1999
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net Investment Income................................. $ 14,228,831 $ 30,016,002 $ 38,839,263 $ 76,020,850
Net Realized Gain (Loss) on Investments............... (8,086,703) (146,778) (10,332,260) (11,245,563)
Net Realized Loss on Foreign Currencies
and Forward Currency Contracts...................... -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments......................... 3,578,878 (35,969,285) (6,473,276) (53,489,063)
Net Change in Unrealized Appreciation on Foreign
Currencies and Forward Currency Contracts............. -- -- -- --
------------- ------------ -------------- ------------
Net Increase (Decrease) in Net Assets from Operations... 9,711,006 (6,100,061) 22,033,727 11,286,224
------------- ------------ -------------- ------------
Distributions to Shareholders:
Net Investment Income
Institutional Class/2/.............................. (13,901,646) (29,835,658) (38,570,464) (75,910,823)
Investment Class /3/................................ (327,180) (193,521) (268,799) (177,781)
Net Realized Gain from Investment Transactions
Institutional Class/2/.............................. -- (2,515,971) -- (19,756,357)
Investment Class/3/................................. -- (22,717) -- (39,013)
------------- ------------ -------------- ------------
Total Distributions..................................... (14,228,826) (32,567,867) (38,839,263) (95,883,974)
------------- ------------ -------------- ------------
Capital Share Transactions
Institutional Class:
Proceeds from Shares Issued......................... 210,112,575 272,801,653 118,293,774 311,505,932
Shares Issued in Lieu of Cash Distributions......... 9,922,605 26,526,583 24,701,037 77,243,309
Cost of Shares Repurchased.......................... (362,862,452) (208,734,293) (216,665,863 (308,695,051)
------------- ------------ -------------- ------------
Increase (Decrease) in Net Assets from Institutional
Class Transactions.................................. (142,827,272) 90,593,943 (73,671,052) 80,054,190
------------- ------------ -------------- --------------
Investment Class:
Proceeds from Shares Issued......................... 12,785,419 6,686,001 8,400,877 7,637,574
Shares Issued in Lieu of Cash Distributions......... 266,510 193,256 215,763 212,423
Cost of Shares Repurchased.......................... (7,431,253) (4,605,682) (5,785,173) (1,796,349)
------------- ------------ -------------- --------------
Increase (Decrease) in Net Assets from Investment
Class Transactions.............................. 5,620,676 2,273,575 2,831,467 6,053,648
------------- ------------ -------------- --------------
Net Increase (Decrease) in Net Assets from Capital
Transactions........................................ (137,206,596) 92,867,518 (70,839,585) 86,107,838
------------- ------------ -------------- --------------
Total Increase (Decrease) in Net Assets................. (141,724,416) 54,199,590 (87,645,121) 1,510,088
------------- ------------ -------------- --------------
Net Assets
Beginning of Period................................. 630,068,855 575,869,265 1,266,257,804 1,264,747,716
------------- ------------ -------------- --------------
End of Period....................................... $ 488,344,439 $630,068,855 $1,178,612,683 $1,266,257,804
============= ============ ============== ==============
Capital Share Transactions:
Institutional Class:
Shares Issued....................................... 19,744,336 24,412,161 11,702,417 29,729,916
Shares Issued in Lieu of Cash Distributions......... 935,764 2,397,143 2,455,669 7,332,710
Shares Repurchased.................................. (34,223,601) 18,898,905) (21,463,252) (29,391,506)
------------- ------------ -------------- --------------
Increase (Decrease) in Capital Shares from
Institutional Class Transactions.................... (13,543,501) 7,910,399 (7,305,166) 7,671,120
============= ============ ============== ==============
Investment Class:
Shares Issued....................................... 1,201,122 618,354 836,145 738,879
Shares Issued in Lieu of Cash Distributions......... 25,161 17,429 21,440 19,205
Shares Repurchased.................................. (702,072) (416,594) (575,496) (172,515)
------------- ------------ -------------- --------------
Increase (Decrease) in Capital Shares from Investment
Class Transactions.................................. 524,211 219,189 282,089 585,569
============= ============ ============== ==============
</TABLE>
--------------------------------------------------------------------------------
/1/ Unaudited
/2/ On February 28, 2000 the Institutional Shares were renamed the Institutional
Class.
/3/ On February 28, 2000 the Service Shares were renamed the Investment Class.
--------------------------------------------------------------------------------
68
<PAGE>
Domestic Fixed Income Funds
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term Municipal Bond Short-Term Fixed Income High Yield Bond
For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
April 30, 2000/1/ Oct. 31, 1999 April 30, 2000/1/ Oct. 31, 1999 April 30, 2000/1/ OCt. 31, 1999
----------------- ------------- ----------------- ------------- ----------------- -------------
<S> <C> <C> <C> <C> <C>
$ 2,310,280 $ 3,369,059 $ 912,212 $ 1,461,521 $ 22,212,900 $ 28,129,258
(1,049,865) (63,978) (11,070) (15,249) 1,426,100 (1,263,178)
-- -- -- -- (107,226) --
877,218 (2,369,647) (119,756) (376,966) (192,633) (2,941,646)
-- -- -- -- 810,878 --
------------ ------------ ------------ ------------ ------------ ------------
2,137,633 935,434 781,386 1,069,306 24,150,019 23,924,434
------------ ------------ ------------ ------------ ------------ ------------
(2,305,405) (3,359,152) (912,212) (1,459,090) (22,453,175) (27,807,069)
(4,875) (12,249) -- -- (330,078) (293,643)
-- -- -- (37,118) -- --
-- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
(2,310,280) (3,371,401) (912,212) (1,496,208) (22,783,253) (28,100,712)
------------ ------------ ------------ ------------ ------------ ------------
47,305,617 101,367,709 32,875,760 17,885,934 68,435,350 239,156,171
1,674,092 2,998,349 141,091 305,266 19,160,457 27,632,128
(61,381,559) (48,879,321) (24,013,576) (11,212,834) (65,329,571) (37,397,182)
------------ ------------ ------------ ------------ ------------ ------------
(12,401,850) 55,486,737 9,003,275 6,978,366 22,266,236 229,392,117
------------ ------------ ------------ ------------ ------------ ------------
25,000 273,958 -- -- 9,026,869 7,699,239
3,896 9 200 -- -- 300,340 292,542
(58,608) (444,705) -- -- (8,931,593) (4,852,943)
------------ ------------ ------------ ------------ ------------ ------------
(29,712) (161,547) -- -- 395,616 3,138,838
------------ ------------ ------------ ------------ ------------ ------------
(12,431,562) 55,325,190 9,003,275 6,978,366 22,661,852 232,529,955
------------ ------------ ------------ ------------ ------------ ------------
(12,604,209) 52,889,223 8,872,449 6,551,464 24,028,618 228,353,677
------------ ------------ ------------ ------------ ------------ ------------
107,694,894 54,805,671 26,752,922 20,201,458 321,122,706 92,769,029
------------ ------------ ------------ ------------ ------------ ------------
$ 95,090,685 $107,694,894 $ 35,625,371 $ 26,752,922 $345,151,324 $321,122,706
============ ============ ============ ============ ============ ============
4,672,842 9,833,188 3,314,810 1,781,956 7,382,830 25,505,970
165,765 291,963 14,229 30,765 2,052,507 2,991,875
(6,084,478) (4,747,479) (2,419,472) (1,119,284) (6,952,653) (4,080,947)
------------ ------------ ------------ ------------ ------------ ------------
(1,245,871) 5,377,672 909,567 693,437 2,482,684 24,416,898
============ ============ ============ ============ ============ ============
2,488 26,418 -- -- 961,748 806,586
385 894 -- -- 32,173 31,716
(5,790) (42,899) -- -- (948,580) (530,749)
------------ ------------ ------------ ------------ ------------ ------------
(2,917) (15,587) -- -- 45,341 307,553
============ ============ ============ ============ ============ ============
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements
--------------------------------------------------------------------------------
69
<PAGE>
Domestic Fixed Income Funds
--------------------------------------------------------------------------------
Financial Highlights For the six months ended April 30, 2000 and the years
ended Oct. 31 (Unaudited)
<TABLE>
<CAPTION>
Net
Net Realized Distributions Distributions Net
Asset and from from Asset
Value Net Unrealized Net Realized Value
Beginning Investment Gains/ Investment Capital End of Total
of Period Income (Loss) Income Gains Period Return
--------- ------ ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Municipal Bond:
Institutional Class/10/
2000 $10.66 $0.28 $(0.06) $(0.28) $ -- $10.60 2.03%
1999 11.30 0.51 (0.59) (0.51) (0.05) 10.66 (0.78)
1998 11.12 0.53 0.18 (0.53) -- 11.30 6.58
1997 10.99 0.57 0.22 (0.57) (0.09) 11.12 7.49
1996 10.86 0.60 0.13 (0.60) -- 10.99 6.90
1995/1/ 10.37 0.61 0.49 (0.61) -- 10.86 10.90
Investment Class/11/
2000 $10.66 $0.26 $(0.06) $(0.26) $ -- $10.60 1.92%
1999 11.30 0.49 (0.59) (0.49) (0.05) 10.66 (1.01)
1998 11.11 0.50 0.19 (0.50) -- 11.30 6.42
1997/2/ 11.11 0.14 -- (0.14) -- 11.11 1.22+
Fixed Income:
Institutional Class/10/
2000 $10.16 $0.32 $(0.13) $(0.32) $ -- $10.03 1.82%
1999 10.88 0.64 (0.54) (0.64) (0.17) 10.17 0.86
1998 10.76 0.65 0.20 (0.65) (0.08) 10.88 8.25
1997 10.51 0.68 0.25 (0.68) -- 10.76 9.22
1996 10.62 0.68 (0.04) (0.68) (0.07) 10.51 6.27
1995/3/ 9.93 0.70 0.69 (0.70) -- 10.62 14.53
Investment Class/11/
2000 $10.16 $0.31 $(0.09) $(0.31) $ -- $10.03 1.69%
1999 10.88 0.61 (0.54) (0.61) (0.17) 10.17 0.65
1998/4/ 10.75 0.45 0.13 (0.45) -- 10.88 5.28+
Short-Term Municipal Bond:
Institutional Class/10/
2000 $10.12 $0.21 $ -- $(0.21) $ -- $10.12 2.22%
1999 10.37 0.40 (0.26) (0.40) -- 10.11 1.33
1998 10.28 0.46 0.09 (0.46) -- 10.37 5.51
1997 10.13 0.52 0.16 (0.52) (0.01) 10.28 6.93
1996 10.13 0.54 0.04 (0.54) (0.04) 10.13 5.90
1995/5/ 10.00 0.30 0.13 (0.30) -- 10.13 4.39+
Investment Class/11/
2000 $10.11 $0.20 $(0.01) $(0.20) $ -- $10.11 1.98%
1999 10.37 0.37 (0.26) (0.37) -- 10.11 1.08
1998/6/ 10.28 0.39 0.09 (0.39) -- 10.37 4.81+
<CAPTION>
Ratio of
Net
Ratio of Ratio of Investment
Net Expenses to Income to
Net Ratio of Investment Average Average
Assets Expenses Income Net Net
End to to Assets Assets
of Average Average (Excluding (Excluding Portfolio
Period Net Net Expense Expense Turnover
(000) Assets Assets Limitations) Limitations) Rate
------ ------- ------ ------------ ------------ ----
<S> <C> <C> <C> <C> <C> <C>
Municipal Bond:
Institutional Class/10/
2000 $ 475,660 0.55% 5.22% 0.57% 5.19% 10%
1999 622,896 0.55 4.62 0.58 4.59 27
1998 570,743 0.54 4.71 0.58 4.68 42
1997 361,461 0.54 5.19 0.61 5.12 67
1996 252,152 0.55 5.50 0.61 5.44 66
1995/1/ 221,058 0.54 5.75 0.62 5.67 63
Investment Class/11/
2000 $ 12,685 0.80% 5.79% 0.83% 5.77% 10%
1999 7,172 0.80 4.33 0.82 4.31 27
1998 5,126 0.79 4.41 0.85 4.35 42
1997/2/ 192 0.79 4.95 0.85 4.89 67
Fixed Income:
Institutional Class/10/
2000 $1,168,497 0.54% 6.96% 0.55% 6.96% 56%
1999 1,258,869 0.55 6.08 0.55 6.08 157
1998 1,263,215 0.55 6.01 0.56 6.00 122
1997 1,103,121 0.55 6.50 0.60 6.45 178
1996 758,003 0.55 6.52 0.61 6.46 176
1995/3/ 494,221 0.54 6.81 0.63 6.72 182
Investment Class/11/
2000 $ 10,116 0.80% 7.00% 0.81% 6.99% 56%
1999 7,389 0.80 5.86 0.80 5.86 157
1998/4/ 1,533 0.80 5.77 0.87 5.70 122
Short-Term Municipal Bond:
Institutional Class/10/
2000 $ 94,852 0.55% 4.77% 0.76% 4.56% 43%
1999 107,427 0.55 3.92 0.80 3.67 64
1998 54,369 0.55 4.46 0.82 4.19 28
1997 19,950 0.53 5.14 1.02 4.65 95
1996 9,132 0.53 5.34 1.58 4.29 129
1995/5/ 3,724 0.52 4.60 2.16 2.96 62
Investment Class/11/
2000 $ 238 0.80% 4.77% 1.02% 4.55% 43%
1999 268 0.80 3.91 1.00 3.71 64
1998/6/ 436 0.80 4.20 1.02 3.98 26
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
70
<PAGE>
Domestic Fixed Income Funds
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net
Net Realized Distributions Distributions Net
Asset and from from Asset
Value Net Unrealized Net Realized Value
Beginning Investment Gains/ Investment Capital End of Total
of Period Income (Loss) Income Gains Period Return
--------- ---------- ---------- ------------- ------------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Short-Term Fixed Income:
Institutional Class/10/
2000 $ 9.96 $0.32 $(0.05) $(0.32) $ -- $ 9.91 2.66%
1999 10.13 0.59 (0.14) (0.60) (0.02) 9.96 4.49
1998 10.06 0.60 0.07 (0.60) -- 10.13 6.85
1997 10.00 0.58 0.06 (0.58) -- 10.06 6.61
1996 10.01 0.60 (0.01) (0.60) -- 10.00 6.09
1995/7/ 10.00 0.37 0.01 (0.37) -- 10.01 3.82+
High Yield Bond:
Institutional Class/10/
2000 $ 9.08 $0.60 $ 0.03 $(0.60) $ -- $ 9.11 6.90%
1999 8.71 1.03 0.37 (1.03) -- 9.08 16.54
1998/8/ 10.00 0.54 (1.29) (0.54)+ -- 8.71 (7.84)
Investment Class/11/
2000 $ 9.07 $0.59 $ 0.06 $(0.59) $ -- $ 9.11 6.94%
1999 8.71 1.00 0.36 (1.00) -- 9.07 16.07
1998/9/ 10.28 0.11 (1.57) (0.11) -- 8.71 0.27+
<CAPTION>
Ratio of
Net
Ratio of Ratio of Investment
Net Expenses to Income to
Net Ratio of Investment Average Average
Assets Expenses Income Net Net
End to to Assets Assets
of Average Average (Excluding (Excluding Portfolio
Period Net Net Expense Expense Turnover
(000) Assets Assets Limitations) Limitations) Rate
-------- -------- --------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
2000 $ 35,625 0.55% 6.35% 1.04% 6.85% 44%
1999 26,753 0.55 6.03 1.29 5.29 142
1998 20,201 0.55 5.92 0.93 5.54 98
1997 17,083 0.53 5.77 1.09 5.21 186
1996 6,751 0.53 6.00 1.29 5.24 124
1995/7/ 4,140 0.52 5.86 2.84 3.54 90
High Yield Bond:
Institutional Class/10/
2000 $341,852 0.65% 13.49% 0.69% 13.45% 65%
1999 318,247 0.65 11.37 0.75 11.27 180
1998/8/ 92,668 0.65 9.34 0.82 9.17 131
Investment Class/11/
2000 $ 3,299 0.90% 13.43% 0.91% 13.43% 65%
1999 2,875 0.90 11.24 1.00 11.14 180
1998/9/ 81 0.90 11.89 1.05 11.74 131
</TABLE>
________________________________________________________________________________
+ Returns are for the period indicated and have not been annualized.
/1/ Municipal Bond Institutional Class commenced operations on 12/13/91. All
ratios, except for Portfolio Turnover Rate, for the period have been
annualized.
/2/ Municipal Bond Investment Class commenced operations on 7/30/97. All
ratios, except for Portfolio Turnover Rate, for the period have been
annualized.
/3/ Fixed Income Institutional Class commenced operations on 9/18/92. All
ratios, except for Portfolio Turnover Rate, for the period have been
annualized.
/4/ Fixed Income Investment Class commenced operations on 2/11/98. All ratios,
except for Portfolio Turnover Rate, for the period have been annualized.
/5/ Short-Term Municipal Bond Institutional Class commenced operations on
3/06/95. All ratios, except for Portfolio Turnover Rate, for the period
have been annualized.
/6/ Short-Term Municipal Bond Investment Class commenced operations on 12/3/97.
All ratios, except for Portfolio Turnover Rate, for the period have been
annualized.
/7/ Short-Term Fixed Income Institutional Class commenced operations on
3/13/95. All ratios, except for Portfolio Turnover Rate, for the period
have been annualized.
/8/ High Yield Bond Institutional Class commenced operations on 3/16/98. All
ratios, except for Portfolio Turnover Rate, for the period have been
annualized.
/9/ High Yield Bond Investment Class commenced operations on 9/15/98. All
ratios, except for Portfolio Turnover Rate, for the period have been
annualized. 10On February 28, 2000 the Institutional Shares were renamed
the Institutional Class.
/11/ On February 28, 2000 the Service Shares were renamed the Investment Class.
Amounts designated as "__" are either $0.00 or have been rounded to $0.00 All
ratios, except for Portfolio Turnover Rate, for the period have been annualized.
--------------------------------------------------------------------------------
71
<PAGE>
Domestic Fixed Income Funds
------------------------------------------------------------------------------
Notes to Financial Statements April 30, 2000 (Unaudited)
1. Organization
Morgan Grenfell Investment Trust (the "Trust") was organized as a Delaware
business trust on September 13, 1993. The Trust is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company consisting of fourteen investment portfolios. The Domestic Funds are
hereafter referred to each as the "Fund" and collectively as the "Funds". The
Funds' prospectuses provide a description of each Fund's investment objectives,
policies and strategies.
2. Significant Accounting Policies
The preparation of financial statements in accordance with generally accepted
accounting principles requires Trust management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Funds.
Security Valuation--Securities listed on a securities exchange for which market
quotations are readily available are valued at the last quoted sales price on
the principal exchange on which they are traded on the valuation date or, if
there is no such reported sale on the valuation date, at the most recently
quoted bid price. Unlisted securities for which market quotations are readily
available are valued at the most recently quoted bid price. Certain debt and
fixed income investments owned by the Funds are valued at prices supplied by
independent pricing agents selected by Deutsche Asset Management, Inc. ("DeAM",
formerly Morgan Grenfell Inc.) and Deutsche Asset Management Investment Services
Limited ("DAMIs", formerly Morgan Grenfell Investment Services Limited),
(collectively, the "Advisers", each an affiliate of Deutsche Bank AG), which
prices reflect broker-dealer supplied valuations. Short-term investments, with
less than 60 days to maturity, are valued at amortized cost which approximates
market value. Other securities for which market quotations are not readily
available or securities whose market quotations do not, in the opinion of the
applicable Adviser, reflect market value are valued at fair value using methods
determined in good faith by the valuation committee of the Board of Trustees.
Income Taxes--It is the intention of each Fund to qualify as a regulated
investment company and to distribute all of its taxable income. Accordingly, no
provision for Federal income taxes is considered necessary.
Net Asset Value Per Share--The net asset value per share is calculated on a
daily basis by dividing the assets of each Fund or Class, less its liabilities,
by the number of outstanding shares, of the Fund or Class.
Classes--Class-specific expenses, such as service plan fees, are borne by that
class. Income, expenses and realized and unrealized gains/losses are allocated
to the respective classes on the basis of relative daily net assets.
Repurchase Agreements--Securities pledged as collateral for repurchase
agreements are held by the custodian banks until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Trust require that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty.
The Funds may also invest in tri-party repurchase agreements. Securities held as
collateral for tri-party repurchase agreements are maintained in a segregated
account by the broker's custodian bank until maturity of the repurchase
agreement. Provisions of the agreements require that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default by the counterparty.
If the counterparty defaults and the value of the collateral declines or if the
counterparty enters an insolvency proceeding, realization of the collateral by
the Funds may be delayed or limited.
Distributions--Distributions from net investment income and net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid in capital in the period that the difference arises.
Expenses--Expenses that are directly related to a Fund are charged directly to
that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets. DeAM absorbed all expenses of organizing the
Trust.
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Domestic Fixed Income Funds
--------------------------------------------------------------------------------
Notes to Financial Statements
Other--Security transactions are accounted for on the date the security is
purchased or sold (trade date). Costs used in determining net realized capital
gains and losses on the sale of investment securities are those of the specific
securities sold adjusted for the accretion and amortization of original issue
discounts and purchase premiums during the respective holding period. Original
issue discounts and purchase premiums on securities held by the Funds are
accreted and amortized ratably to maturity using the effective interest method.
Dividend income is recognized on the ex-dividend date or, using reasonable
diligence, when known to the Funds. Interest income is recognized using the
accrual method.
3. Administration, Investment Advisory, Distribution and Service Agreements
By an agreement dated August 27, 1998, the Trust entered into an administration
agreement with DeAM (the "Administrator"), pursuant to which the Administrator
will receive an annual fee based on the average daily net assets of each Fund as
follows:
Annual
Fund Fees
---- -----
Municipal Bond 0.12%
Fixed Income 0.12%
Short-Term Municipal Bond 0.12%
Short-Term Fixed Income 0.12%
High Yield Bond 0.12%
The Administrator generally assists in all matters relating to the
administration of the Funds, including the coordination and monitoring of any
third parties furnishing services to the Funds, preparation and maintenance of
financial accounting records, and the provision of necessary office space,
equipment and personnel to perform administrative and clerical functions. The
Administrator is also responsible for engaging an accounting agent, custodian
and transfer agent for the Trust's operations. Fees for services rendered by the
accounting agent and the transfer agent are paid by the Administrator and not
the Fund. At a meeting held on August 19, 1999 the Board of Trustees of the
Trust adopted a resolution to approve a transfer agent agreement between
Investment Company Capital Corp., an affiliate of Deutsche Bank AG, and the
Trust, replacing DST Systems Inc., effective November 22, 1999.
Under the advisory agreements with the Trust, DeAM serves as the Adviser for the
Domestic Funds. For these services, the Advisers are entitled to a monthly fee
at an annual rate of each Fund's average daily net assets as follows:
Municipal Bond 0.40%
Fixed Income 0.40%
Short-Term Municipal Bond 0.40%
Short-Term Fixed Income 0.40%
High Yield Bond 0.50%
The Adviser has voluntarily agreed to reduce its advisory fees and/or reimburse
each Fund to the extent necessary to limit the Fund's operating expenses to a
specified percentage of its average net assets as follows:
Institutional Investment
Class Class
------------- ----------
Municipal Bond 0.55% 0.80%
Fixed Income 0.55% 0.80%
Short-Term Municipal Bond 0.55% 0.80%
Short-Term Fixed Income 0.55% 0.80%
High Yield Bond 0.65% 0.90%
By an Expense Limitation agreement dated November 1999, between the Trust and
the Adviser, the Adviser has agreed to waive fees and reimburse expenses to each
Fund in order to limit the total operating expenses of each Fund at the above
levels for a period of 16 months from February 28, 2000.
Certain officers and/or Trustees of the Trust are affiliated with the
Administrator or the Adviser.
ICC Distributors, Inc. (the "Distributor") serves as the distributor of shares
of the Funds pursuant to a distribution agreement with the Trust and assisted in
the sale of shares of the Funds. The Adviser, and not the Trust, is responsible
for payment of any expenses or fees incurred in the marketing and distribution
of shares of the Trust. SEI Investments Distribution Co. served as the Funds
distributor prior to November 1, 1999.
The Trust, on behalf of each Fund, has adopted a service plan pursuant to which
each Fund that offers an Investment Class pays service fees at an aggregate
annual rate of up to 0.25% of the Fund's average daily net assets attributable
to the Investment Class. Service plan fees are payable to
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Domestic Fixed Income Funds
--------------------------------------------------------------------------------
Notes to Financial Statements
Service Organizations that have agreements with the Trust, and are intended to
compensate Service Organizations for providing personal services and/ or account
maintenance services to their customers who invest in the Investment Class.
During the period ended April 30, 2000, certain portfolios of the Trust
purchased securities from and sold securities to other portfolios of the Trust
or other accounts managed by the Advisers at market value.
4. Forward Foreign Currency Contracts
High Yield may enter into forward foreign currency contracts for hedging against
portfolio positions denominated in foreign currencies as well as for non-hedging
purposes. Such contracts, which protect the value of the Fund's investment
securities against a decline in the value of the hedged currency, do not
eliminate fluctuations in the underlying prices of the securities. They simply
establish an exchange rate at a future date. Also, although such contracts tend
to minimize the risk of loss due to a decline in the value of a hedged currency,
at the same time they tend to limit any potential gain that might be realized
should the value of such foreign currency increase.
The following forward foreign currency contracts were outstanding at April 30,
2000:
Net
Currency to In Unrealized
Maturity (Deliver)/ Exchange Appreciation/
Date Receive For (Depreciation)
----------------- ---------- --------- --------------
High Yield Bond
Foreign Currency Sales:
05/02/00 euro (415,000) $ 405,517 $ 27,908
06/19/00 euro (1,544,563) 1,504,944 94,874
06/30/00 euro (2,158,821) 2,155,583 183,376
07/31/00 euro (3,473,000) 3,520,927 341,005
09/15/00 euro (2,713,406) 2,659,952 167,449
09/15/00 euro (3,752,495) 3,496,950 $ 49,952
---------
$864,564
=========
Foreign Currency Purchases:
06/19/00 euro 514,854 $ (493,102) $(23,078)
06/30/00 euro 526,542 (511,456) (30,430)
06/30/00 euro 789,813 (763,662) (42,123)
---------
$(95,631)
---------
$768,933
=========
5. Investment Transactions
The cost of securities purchased and the proceeds from the sale of securities,
other than short-term investments and U.S. government securities, during the
year ended April 30, 2000, were as follows:
Purchases Sales
--------- -----
Municipal Bond $ 59,396,822 $194,621,161
Fixed Income 348,666,780 438,209,105
Short-Term Municipal
Bond 56,443,408 57,842,446
Short-Term Fixed Income 10,981,099 11,879,051
High Yield Bond 241,738,776 250,250,480
The cost of U.S. government securities purchased and the proceeds from the sale
of securities during the period ended April 30, 2000 were as follows:
Purchases Sales
--------- -----
Fixed Income $339,729,622 $318,099,178
Short-Term Fixed Income 10,465,763 6,529,049
For federal income tax purposes, the cost of securities owned, the aggregate
gross unrealized appreciation and depreciation and the net unrealized
appreciation (depreciation) on investments at April 30, 2000 for each Fund are
as follows:
Fund Tax Cost
------ -----------
Municipal Bond $ 499,761,102
Fixed Income 1,193,906,093
Short-Term Municipal Bond 94,665,472
Short-Term Fixed Income 35,579,711
High Yield Bond 348,733,745
Net
Unrealized
Appreciated Depreciated Appreciation/
Fund Securities Securities (Depreciation)
----- ------------ ------------ ------------
Municipal Bond $1,959,817 $(18,692,453) $(16,732,636)
Fixed Income 3,340,050 (32,066,088) (28,726,038)
Short-Term Municipal
Bond 709,607 (1,520,484) (810,877)
Short-Term Fixed
Income 33,951 (342,202) (308,251)
High Yield Bond 13,730,535 (24,618,221) (10,887,686)
74
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Domestic Fixed Income Funds
-------------------------------------------------------------------------------
Notes to Financial Statements
At October 31, 2000 the following Funds had available realized capital losses to
offset future net capital gains:
Expiration
Date
---------------
Municipal Bond $ 150,144 10/31/2007
Fixed Income 7,769,404 10/31/2007
Short-Term Municipal Bond 144,583 10/31/2005-2007
Short-Term Fixed Income 15,249 10/31/2007
High Yield Bond 4,781,756 10/31/2006-2007
6. Concentration of Risks
Municipal Bond and Short-Term Municipal Bond invest primarily in diversified
portfolios of municipal securities, including municipal bonds and debentures.
Although Municipal Bond and Short-Term Municipal Bond maintain diversified
portfolios, the municipal bond issuers' abilities to meet their obligations may
be affected by economic developments in a specific state or region.
Fixed Income, Short-Term Fixed Income and High Yield Bond invest primarily in
fixed income securities, the market value of which may change in response to
interest rate changes. Although Fixed Income, Short-Term Fixed Income and High
Yield Bond maintain diversified portfolios, the ability of the issuers of the
Fund's portfolio securities to meet their obligations may be affected by
changing business and economic conditions in a specific industry or region.
Fixed Income, Short-Term Fixed Income and High Yield Bond may have a
concentration of their investments in financial companies.
High Yield Bond invests in securities rated below investment grade, which
typically involve risks not associated with higher rated securities. Yield on
high yield debt securities reflect, among other things, perceived credit risk.
7. Borrowing Agreements
By an agreement dated November 2, 1998, certain Funds of the Trust entered into
a Credit Agreement (the "Agreement") with the BankBoston, N.A. (the "Lender").
The maximum aggregate credit available to all the participating Funds under the
Agreement, was approximately $50,000,000. The Agreement expires on February 27,
2001. Interest payments on borrowings are payable by the borrowing Funds on a
monthly basis at the federal funds rate plus 1.00% per annum and the borrowings
are payable on demand. The participating Funds are also subject to a commitment
fee of 0.10% per annum of the unused portion of the maximum aggregate credit
available under the Agreement. During the 6 months ended April 30, 2000, the
participating Funds incurred commitment fees under the Agreement which have been
allocated to the participating Funds based on their relative net assets during
the non-borrowing period. During the period ended April 30, 2000, High Yield
Bond, Municipal Bond, and Short-Term Municipal Bond borrowed under the Agreement
at different times.
At April 30, 2000 there were no borrowings from BBH outstanding. Following is
the summary of borrowings made under the Agreement with BankBoston., N.A.:
Weighted Weighted
Maximum Average Average
Amount Balance Interest Interest
Fund Borrowed Outstanding Paid Rate
---- -------- ----------- ---- ----
Credit Agreement:
High Yield Bond $ 9,300,000 $ 9,646,842 $30,732 7.04%
Municipal Bond 18,733,600 13,683,600 3,945 5.28%
Short-Term
Municipal Bond 3,800,000 3,800,000 539 5.19%
8. Fund Reorganizations
At its meeting on August 19, 1999, the Board of Trustees adopted the following
resolutions:
i. Approval of the tax-free transfer of substantially all of the assets of the
Intermediate Tax-Free ("Tax-Free Fund"), an affiliate of the Trust, to
Municipal Bond in exchange solely for the Institutional Class shares of
beneficial interest of Municipal Bond and the assumption by Municipal Bond of
all of the liabilities of Tax-Free Fund and the distribution of such shares
of Municipal Bond to the shareholders of the Tax-Free Fund in liquidation of
the Tax-Free Fund. The transfer is likely to be a tax-free reorganization
under the provisions of the Internal Revenue Code of 1986, as amended, and
will take place on August 31, 2000.
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<PAGE>
For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or write
to us at:
Deutsche Asset Management Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
or call our toll-free number: 1-800-730-1313
This report must be preceded or accompanied by a current prospectus for the
Fund.
Municipal Bond CUSIP #61735K810
Fixed Income 61735K836
Short Term Municipal Bond 61735K794
Short Term Fixed Income 61735K828
High Yield Bond 61735K646
Morgan Grenfell Investment Trust DOMFISA (04/00)
Distributed by:
ICC Distributors, Inc.
76
