<PAGE>
The Americas Income Trust - 1998 Semiannual Report
1998 Semiannual Report
[LOGO]
The Americas
Income Trust
XUS
<PAGE>
<TABLE>
CONTENTS
<S> <C>
Average Annualized Total Returns . . . . . . . . . . . . . . . . . . . . . 1
Portfolio Managers' Letter . . . . . . . . . . . . . . . . . . . . . . . . 3
Financial Statements and Notes . . . . . . . . . . . . . . . . . . . . . . 7
Investments in Securities. . . . . . . . . . . . . . . . . . . . . . . . . 18
Shareholder Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Glossary(***). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
</TABLE>
(***) This report includes a glossary to help you understand financial terms
used in the portfolio manager's letter. When you see this symbol, it indicates a
word that is defined in the glossary.
[LOGO]
THE AMERICAS INCOME TRUST
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PRIMARY INVESTMENTS
The fund invests at least 65% of total assets in debt securities of issuers
located in the United States, Canada and Mexico. It may invest up to 35% in
debt securities of issuers in other areas of the world. The fund may invest
up to 35% of its assets in non-investment grade securities or unrated
securities of comparable quality. Non-investment grade securities, commonly
known as "high-yield" or "junk" bonds, are subject to higher risks and
greater market fluctuations than lower yielding, higher rated securities.
Debt securities that the fund may invest in include: mortgage-related
securities, including mortgage derivative securities; asset-backed
securities; structured securities, including foreign linked index securities;
municipal obligations; Brady Bonds and corporate debt securities; and U.S.
and foreign government securities. International investing involves risks not
typically associated with U.S. investing, including currency fluctuations,
political instability and different accounting standards. Risks are
particularly significant when investing in emerging markets.
FUND OBJECTIVE
High level of current income. Its secondary objective is to seek capital
appreciation. As with other investment companies, there can be no assurance this
fund will achieve its objective.
*** - This symbol represents a graduation cap, used throughout this report to
indicate terms defined in the glossary.
<PAGE>
AVERAGE ANNUALIZED TOTAL RETURNS
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Based on net asset value for the periods ended April 30, 1998
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[GRAPH]
<TABLE>
<S> <C> <C> <C>
One Year 14.03% 8.58% 11.82%
Three Year 14.78% 14.03% 13.77%
Since Inception (0.48%) 6.84% 8.56%
1/28/94
</TABLE>
The Americas Income Trust
Lipper World Income Funds Average: Developed Nations
Lehman Brothers Aggregate Bond Index (60%)
Lehman Brothers Emerging Americas Index (30%)
Salomon Brothers Canada Only Index (10%)
PERFORMANCE
The Americas Income Trust's total returns are based on the change in its net
asset value (NAV), assume all distributions were reinvested and do not reflect
sales charges. NAV-based performance is used to measure investment management
results.
Average annualized total returns based on the change in market price for the
one-year, three-year and since inception periods ended April 30, 1998, were
27.69%, 18.56% and -2.63%, respectively. These returns assume reinvestment of
all distributions and reflect sales charges on those reinvestments as described
in the fund's dividend reinvestment plan, but not on initial purchases.
PLEASE REMEMBER, YOU COULD LOSE MONEY WITH THIS INVESTMENT. NEITHER SAFETY OF
PRINCIPAL NOR STABILITY OF INCOME IS GUARANTEED. PAST PERFORMANCE DOES NOT
GUARANTEE FUTURE RESULTS. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more or
less than their original cost. Closed-end funds, such as this fund, often trade
at discounts to net asset value. Therefore, you may be unable to realize the
full net asset value of your shares when you sell.
In May 1996, Salomon Brothers Asset Management Inc assumed management of the
fund.
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1998 Semiannual Report 1 The Americas Income Trust
<PAGE>
AVERAGE ANNUALIZED TOTAL RETURNS (CONTINUED)
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THE FUND'S BENCHMARKS
The Lipper World Income Funds Average: Developed Nations is a universe of funds
that represents the average total return of 14 developed nation closed-end
funds. Funds in the average invest in non-U.S. dollar and U.S. dollar debt
instruments with unspecified maturities or other income-producing securities as
characterized by Lipper Analytical Services.
The Lehman Brothers Aggregate Bond Index is an unmanaged index that includes all
fixed rate debt issues with at least one year to maturity that are rated
investment grade or higher by a nationally recognized ratings service. The
Lehman Brothers Emerging Americas Index is an unmanaged index that includes all
U.S. dollar-denominated securities from issuers in Latin America. The Salomon
Brothers Canada Only Index is an unmanaged index that includes all Canadian
dollar-denominated government bonds with more than one year to maturity. The
indexes had individual one-year returns of 10.91%, 13.73% and 9.79%; three-year
returns of 8.87%, 24.86% and 10.54%; and since inception returns of 6.69%,
12.29% and 6.69%, respectively.
The benchmark returns assume reinvested distributions and do not include sales
charges. Indexes in the blended benchmark do not reflect expenses or transaction
costs. The since inception returns are calculated from the month end following
the fund's inception through April 30, 1998.
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1998 Semiannual Report 2 The Americas Income Trust
<PAGE>
PORTFOLIO MANAGER'S LETTER
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[PHOTO]
PETER WILBY, CFA, CPA,
has primary responsibility for the management of The Americas Income Trust. He
is a managing director at Salomon Brothers Asset Management Inc and has 15 years
of financial experience.
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June 10, 1998
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DEAR SHAREHOLDERS:
THE AMERICAS INCOME TRUST ACHIEVED A NET ASSET VALUE (NAV) TOTAL RETURN OF
10.72%* OVER THE SIX MONTHS ENDED APRIL 30, 1998 COMPARED TO 5.83% FOR THE
FUND'S BLENDED BENCHMARK.*** Over the same period, the Lipper World Income Funds
Average: Developed Nations gained 4.36%. The fund returned 13.49% based on its
market price.
WE ATTRIBUTE THE FUND'S OUTPERFORMANCE TO OUR OVERWEIGHTED*** POSITION IN
EMERGING-MARKET DEBT*** DURING THE SIX-MONTH PERIOD. During the summer and early
fall of 1997, the financial crisis in Asia caused a sharp sell-off in Latin
American and Eastern European bond markets. Although these economies were not
* All returns assume reinvestment of distributions and do not reflect sales
charges, except the fund's total return based on market price, which does
reflect sales charges on those reinvestments as described in the fund's dividend
reinvestment plan, but not on initial purchases. Past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more or
less than their original cost.
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PORTFOLIO COMPOSITION BY COUNTRY
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As a percentage of total assets on April 30, 1998
<TABLE>
<CAPTION>
Emerging Markets Developed Markets
<S> <C> <C> <C>
Argentina 10% Canada 13%
Brazil 1% United States 40%
Croatia 4%
Ecuador 1%
Mexico 15%
Panama 4%
Peru 2%
Poland 2%
Russia 4%
Venezuela 2%
Other Assets 2%
</TABLE>
*** This report includes a glossary to help you understand financial terms used
in the portfolio manager's letter. When you see this symbol, it indicates a word
that is defined in the glossary.
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1998 Semiannual Report 3 The Americas Income Trust
<PAGE>
PORTFOLIO MANAGER'S LETTER (CONTINUED)
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pressured by the same factors that led to the difficulties in Asia, global
fixed-income investors nonetheless avoided emerging-market bonds and instead
sought refuge in highly-liquid developed markets. At the peak of the crisis, the
yield differential between U.S. Treasury securities and emerging-market debt
soared to roughly 8%.
THE WIDENING OF CREDIT SPREADS*** IN THE WAKE OF THE ASIAN TURMOIL CREATED AN
OPPORTUNITY FOR THE FUND TO BUY EMERGING-MARKET BONDS AT ATTRACTIVE PRICES. In
particular, the fund took overweighted positions in the debt markets of
Argentina, Mexico, Russia, Venezuela and Panama. Together, these five countries
accounted for the bulk of the fund's outperformance. As the reporting period
ended, emerging-market credit spreads had contracted to about 5%.
ECONOMIC FUNDAMENTALS IN LATIN AMERICA REMAIN SOLID. BOTH MEXICO AND ARGENTINA
ARE ENJOYING BETTER-THAN-EXPECTED ECONOMIC GROWTH. Inflation is under control
throughout the region, and significant political, market and economic reforms
are going forward. Also, continued robust economic activity in the United States
has created a vibrant export market for Latin American goods, helping to offset
weakness in the region's exports of oil and industrial commodities to Asia.
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PORTFOLIO COMPOSITION BY CURRENCY
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As a percentage of total assets on April 30, 1998
<TABLE>
<S> <C>
United States * 76%
Canada 11%
Mexico 5%
Argentina 8%
</TABLE>
*Includes 2% other assets, denominated in U.S. dollars.
- --------------------------------------------------------------------------------
*** This report includes a glossary to help you understand financial terms used
in the portfolio manager's letter. When you see this symbol, it indicates a word
that is defined in the glossary.
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1998 Semiannual Report 4 The Americas Income Trust
<PAGE>
PORTFOLIO MANAGER'S LETTER (CONTINUED)
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IN THE UNITED STATES, BOND PRICES TRADED WITHIN A NARROW RANGE. After beginning
the reporting period at 6.14%, the yield on the Treasury's benchmark 30-year
bond fell to 5.66% in January as the deepening crisis in Asia reassured
investors that domestic inflation would remain under control. However, as
evidence accumulated that some Asian economies were poised to begin a recovery
later this year, the long-term Treasury yield rose modestly to close the
reporting period at 5.94%.
DESPITE ROBUST ECONOMIC GROWTH, INFLATION IN THE UNITED STATES WAS VIRTUALLY
NONEXISTENT. For the year ended April 30, prices at the consumer level rose by
just 1.4%. Meanwhile, producer prices actually fell during five of the six
months of the reporting period. Sluggish demand for U.S. goods overseas, weak
commodity prices, and the strong dollar helped to offset the inflationary
implications of rapid economic growth and a tight labor market.
WE REMAIN OPTIMISTIC ABOUT THE OUTLOOK FOR EMERGING-MARKET DEBT. While
fixed-income securities in emerging economies are inherently volatile, we
believe that the fundamental long-term case for owning emerging-market debt
remains solidly in place. The widened credit spreads that resulted from the
emotion-based reaction to last year's Asian crisis have provided the fund with
additional buying opportunities.
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PORTFOLIO COMPOSITION BY RATING
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As a percentage of total assets on April 30, 1998
<TABLE>
<S> <C> <C> <C>
Investment Grade 70% Non-Investment Grade 30%
AAA(or equivalent) 45% BB 24%
A 2% B 1%
A2 5% Not Rated 5%
BBB 16%
Other Assets 2%
</TABLE>
*** This report includes a glossary to help you understand financial terms used
in the portfolio manager's letter. When you see this symbol, it indicates a word
that is defined in the glossary.
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1998 Semiannual Report 5 The Americas Income Trust
<PAGE>
PORTFOLIO MANAGER'S LETTER (CONTINUED)
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On May 1, Piper Jaffray Companies Inc., the parent company of Piper Capital, was
acquired by U.S. Bancorp. As a result of this acquisition, the fund's board of
directors approved a proposal to merge the fund into First American Strategic
Income Fund, a newly created open-end fund with similar investment objectives,
which is managed by First American Asset Management, U.S. Bancorp's asset
management arm. This proposal is subject to shareholder approval and will be
voted on at the fund's annual meeting in July.
Thank you for your investment in The Americas Income Trust.
Sincerely,
/s/ Peter Wilby
Peter Wilby
Managing Director, Senior Portfolio Manager
Salomon Brothers Asset Management
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1998 Semiannual Report 6 The Americas Income Trust
<PAGE>
Financial Statements (Unaudited)
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STATEMENT OF ASSETS AND LIABILITIES April 30, 1998
................................................................................
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value* (note 2) ........ $77,036,438
Cash in bank on demand deposit ............................. 138,454
Fee Income ................................................. 2,701
Accrued interest receivable ................................ 1,073,438
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Total assets ............................................. 78,251,031
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LIABILITIES:
Net unrealized depreciation of forward foreign currency
contracts held (note 2) .................................. 457
Payable for investment securities purchased on a when issued
basis (note 2) ........................................... 18,483,625
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Total liabilities ........................................ 18,484,082
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Net assets applicable to outstanding capital stock ....... $59,766,949
-----------------
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COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital ............... $72,465,613
Undistributed net investment income ........................ 719,910
Accumulated net realized loss on investments and foreign
currency transactions .................................... (15,756,525)
Unrealized appreciation of investments and on translation of
other assets and liabilities denominated in foreign
currencies ............................................... 2,337,951
-----------------
Total - representing net assets applicable to capital
stock .................................................. $59,766,949
-----------------
-----------------
* Investments in securities at identified cost ............. $74,697,548
-----------------
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NET ASSET VALUE AND MARKET PRICE:
Net assets ................................................. $59,766,949
Shares outstanding (authorized 2 billion shares of $0.01 par
value) ................................................... 6,251,305
Net asset value ............................................ $ 9.56
Market price ............................................... $ 9.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 7 The Americas Income Trust
<PAGE>
Financial Statements (Unaudited) (continued)
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STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1998
................................................................................
<TABLE>
<S> <C>
INCOME:
Dividends .................................................. $ 7,838
Interest ................................................... 2,533,644
Fee income (note 2) ........................................ 104,218
-----------------
Total investment income .................................. 2,645,700
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EXPENSES (NOTE 3):
Investment management fee .................................. 145,274
Administrative fee ......................................... 58,110
Custodian and accounting fees .............................. 41,772
Transfer agent fees ........................................ 10,784
Registration fees .......................................... 16,170
Reports to shareholders .................................... 29,468
Directors' fees ............................................ 6,207
Audit and legal fees ....................................... 47,733
Other expenses ............................................. 2,729
-----------------
Total expenses ........................................... 358,247
Less expenses paid indirectly .......................... (1,546)
-----------------
Total net expenses ....................................... 356,701
-----------------
Net investment income .................................... 2,288,999
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NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized loss on investments (note 4) .................. (408,559)
Net realized loss on foreign currency transactions ......... (8,137)
-----------------
Net realized loss on investments and foreign currency .... (416,696)
Net change in unrealized appreciation or depreciation of
investments and on translation of other assets and
liabilities denominated in foreign currencies ............ 4,078,853
-----------------
Net gain on investments and foreign currency ............. 3,662,157
-----------------
Net increase in net assets resulting from operations ... $ 5,951,156
-----------------
-----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 8 The Americas Income Trust
<PAGE>
Financial Statements (continued)
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STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
SIX MONTHS ENDED
4/30/98 YEAR ENDED
(UNAUDITED) 10/31/97
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ...................................... $ 2,288,999 $ 4,424,736
Net realized gain (loss) on investments and foreign currency
transactions ............................................. (416,696) 4,792,455
Net change in unrealized appreciation or depreciation of
investments and on translation of other assets and
liabilities denominated in foreign currencies ............ 4,078,853 (4,463,289)
----------------- -----------------
Net increase in net assets resulting from operations ..... 5,951,156 4,753,902
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ................................. (2,125,444) (3,875,810)
----------------- -----------------
Total increase in net assets ............................. 3,825,712 878,092
Net assets at beginning of period .......................... 55,941,237 55,063,145
----------------- -----------------
Net assets at end of period ................................ $59,766,949 $55,941,237
----------------- -----------------
----------------- -----------------
Undistributed net investment income ........................ $ 719,910 $ 556,355
----------------- -----------------
----------------- -----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 9 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited)
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(1) ORGANIZATION
................................
The Americas Income Trust Inc. (the fund) is registered under
the Investment Company Act of 1940 (as amended) as a non-
diversified, closed-end management investment company. The fund
primarily invests in debt securities that are issued by issuers
located in the United States, Canada and Mexico. The fund may
invest up to 35% of its assets in non-rated and below
investment grade debt securities. Debt securities that the fund
may invest in include: mortgage-related securities;
asset-backed securities; structured securities, including
foreign linked index securities; municipal obligations; Brady
bonds and corporate debt securities, and U.S. and foreign
government securities. The fund may enter into dollar roll
transactions. Fund shares are listed on the New York Stock
Exchange under the symbol XUS.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
................................
INVESTMENTS IN SECURITIES
Portfolio securities for which market quotations are readily
available are valued at current market value. If market
quotations or valuations are not readily available, or if such
quotations or valuations are believed to be inaccurate,
unreliable or not reflective of market value, portfolio
securities are valued according to procedures adopted by the
fund's board of directors in good faith at "fair value", that
is, a price that the fund might reasonably expect to receive
for the security or other asset upon its current sale.
The current market value of certain fixed income securities is
provided by an independent pricing service. Fixed income
securities for which prices are not available from an
independent pricing service but where an active market exists
are valued using market quotations obtained from one or more
dealers that make markets in the securities or from a
widely-used quotation system. Short-term securities with
maturities of 60 days or less are valued at amortized cost,
which approximates market value.
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1998 Semiannual Report 10 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
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Securities transactions are accounted for on the date
securities are purchased or sold. Realized gains and losses are
calculated on the identified-cost basis. Interest income,
including amortization of bond discount and premium, is
recorded on an accrual basis.
FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS
Securities and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars at the
closing rate of exchange. Foreign currency amounts related to
the purchase or sale of securities and income and expenses are
translated at the exchange rate on the transaction date. For
financial reporting purposes the realized and unrealized gain
(loss) on investments reflects changes in exchange rates as
well as changes in the market value of investments.
The fund also may enter into forward foreign currency exchange
contracts for hedging purposes. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by
the fund, and the resulting unrealized appreciation or
depreciation, are determined using foreign currency exchange
rates from independent pricing sources. The fund is subject to
the credit risk that the other party will not complete the
obligations of the contract.
On April 30, 1998, the fund had open foreign currency exchange
contracts which obligate the fund to deliver and receive
currencies at specified future date. The unrealized
depreciation on these contracts is reflected in the
accompanying financial statements. The terms of the open
contracts are as follows:
<TABLE>
<CAPTION>
U.S. U.S.
CURRENCY $ VALUE CURRENCY $ VALUE
SETTLEMENT TO BE AS OF TO BE AS OF
DATE DELIVERED 4/30/98 RECEIVED 4/30/98 DEPRECIATION
- ---------------------------------------- ----------- ------- ------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
May 1, 1998 141,375 CAD 98,805 98,348 USD 98,348 $457
CAD=Canadian Dollar
USD=United States Dollar
</TABLE>
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1998 Semiannual Report 11 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
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SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been purchased by
the fund on a when-issued or forward-commitment basis can take
place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior
to their delivery. The fund segregates, with its custodian,
assets with a market value equal to the amount of its purchase
commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of the
fund's net asset value if the fund makes such purchases while
remaining substantially fully invested. As of April 30, 1998,
the fund had entered into outstanding when-issued or forward
commitments of $18,483,625.
In connection with its ability to purchase securities on a
when-issued or forward-commitment basis, the fund may enter
into mortgage dollar rolls in which the fund sells securities
purchased on a forward commitment basis and simultaneously
contracts with a counterparty to repurchase similar (same type,
coupon and maturity) but not identical securities on a
specified future date. As an inducement to "roll over" its
purchase commitments, the fund receives negotiated fees. For
the six months ended April 30, 1998, such fees earned by the
fund amounted to $104,218.
FEDERAL TAXES
The fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies and not be subject to federal income tax. Therefore,
no income tax provision is required. The fund also intends to
distribute its taxable net investment income and realized
gains, if any, to avoid the payment of any federal excise
taxes.
Net investment income and net realized gains (losses) may
differ for financial statement and tax purposes primarily
because of the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes. The
character of distributions
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1998 Semiannual Report 12 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
made during the year from net investment income or net realized
gains may differ from its ultimate characterization for federal
income tax purposes. Distributions that exceed the net
investment income or net realized gains recorded on a tax basis
are presented as a "tax return of capital" in the statements of
changes in net assets and the financial highlights. In
addition, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from
the year that the income or realized gains or losses were
recorded by the funds.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are made monthly and
realized capital gains, if any, will be distributed at least
annually. These distributions are recorded as of the close of
business on the ex-dividend date. Such distributions are
payable in cash or, pursuant to the fund's dividend
reinvestment plan, reinvested in additional shares of the
fund's capital stock. Under the plan, fund shares will be
purchased in the open market unless the market price plus
commissions exceeds the net asset value by 10% or more. If, at
the close of business on the dividend payment date, the shares
purchased in the open market are insufficient to satisfy the
dividend reinvestment requirement, the fund will issue new
shares at a discount of up to 5% from the current market price.
REPURCHASE AGREEMENTS
For repurchase agreements entered into with certain broker-
dealers, the fund, along with other affiliated registered
investment companies, may transfer uninvested cash balances
into a joint trading account, the daily aggregate of which is
invested in repurchase agreements secured by U.S. government or
agency obligations. Securities pledged as collateral for all
individual and joint repurchase agreements are held by the
fund's custodian bank until maturity of the repurchase
agreement. Provisions for all agreements ensure that the daily
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1998 Semiannual Report 13 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
market value of the collateral is in excess of the repurchase
amount, including accrued interest, to protect the fund in the
event of a default.
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
in the financial statements. Actual results could differ from
these estimates.
(3) EXPENSES
................................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The fund has entered into the following agreements with Piper
Capital Management Incorporated (the advisor and the
administrator):
The investment advisory agreement provides the advisor with a
monthly investment management fee equal to an annualized rate
of 0.50% of the fund's average weekly net assets. For its fee,
the advisor provides investment advice and conducts the
management and investment activity of the fund.
Salomon Brothers Asset Management Inc. has been retained by
Piper Capital Management Incorporated as the subadvisor of the
fund and is paid a fee equal to 75% of the investment
management fee.
The administration agreement provides the administrator with a
monthly fee in an amount equal to an annualized rate of 0.20%
of the fund's average weekly net assets. For its fee, the
administrator provides reporting, regulatory and record-keeping
services for the fund.
OTHER FEES AND EXPENSES
In addition to the investment management and administrative
fees, the fund is responsible for paying most other operating
expenses, including: outside directors' fees and expenses;
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1998 Semiannual Report 14 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
custodian fees; registration fees; printing and shareholder
reports; transfer agent fees and expenses; legal, auditing and
accounting services; insurance; interest; taxes and other
miscellaneous expenses.
Expenses paid indirectly represents a reduction of custodian
fees for earnings on miscellaneous cash balances maintained by
the fund.
(4) INVESTMENT
SECURITY
TRANSACTIONS
................................
Cost of purchases and proceeds from sales of securities, other
than temporary investments in short-term securities and dollar
roll transactions, for the six months ended April 30, 1998,
aggregated $26,688,578 and $19,621,715, respectively. Including
dollar rolls, such purchases and sales aggregated $155,797,551
and $148,730,688, respectively.
(5) CAPITAL LOSS
CARRYOVER
................................
For federal income tax purposes, the fund had capital loss
carryovers at October 31, 1997, which, if not offset by
subsequent capital gains, will expire on the fund's fiscal
year-ends as indicated below. It is unlikely the board of
directors will authorize a distribution of any net realized
capital gains until the available capital loss carryovers have
been offset or expire.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYOVER EXPIRATION
------------- ---------------
<S> <C> <C>
$ 300,876 2002
9,607,653 2003
5,431,300 2004
-------------
$ 15,339,829
-------------
-------------
</TABLE>
(6) ADVISOR
ACQUISITION
................................
On May 1, 1998, Piper Jaffray Companies Inc., the parent
company of the funds' investment advisor, was acquired by U.S.
Bancorp.
U.S. Bancorp is a multi-state bank holding company
headquartered in Minneapolis, Minnesota with a geographic
service area spanning 17 states. As of March 31, 1998, U.S.
Bancorp was the 15th largest U.S. commercial bank holding
- ---------------------------------------------------------------------
1998 Semiannual Report 15 The Americas Income Trust
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
company, with assets of nearly $70.9 billion. U.S. Bank
National Association ("U.S. Bank"), a wholly owned subsidiary
of U.S. Bancorp, currently acts as the investment advisor to 32
mutual funds (the "First American Funds"). As of March 31,
1998, U.S. Bank, acting through its First American Asset
Management group, managed more than $65.3 billion in assets,
including approximately $23.3 billion in assets of the First
American Funds.
Under the Investment Company Act of 1940, as amended,
consummation of the acquisition of Piper Jaffray Companies by
U.S. Bancorp resulted in the assignment and automatic
termination of the fund's investment advisory agreement with
Piper Capital Management Incorporated. The fund has entered
into a new investment advisory agreement with Piper Capital
Management, which shareholders will vote on at the fund's
annual meeting in July.
(7) REORGANIZATION OF
THE FUND
................................
On April 27, 1998, the fund's board of directors approved the
newly created open end fund in the First American family of
funds. Shareholders will vote on the proposal at the fund's
annual meeting in July.
- ---------------------------------------------------------------------
1998 Semiannual Report 16 The Americas Income Trust
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(8) FINANCIAL
HIGHLIGHTS
................................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Year Year Period
4/30/98 Ended Ended Ended Ended
(Unaudited) 10/31/97 10/31/96(e) 10/31/95 10/31/94(f)
------------ --------- --------------- --------- ---------------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ... $ 8.95 $ 8.81 $ 8.21 $ 10.26 $ 14.04
------------ --------- --------------- --------- ---------------
Operations:
Net investment income ................ 0.37 0.71 0.59 0.79 0.92
Net realized and unrealized gains
(losses) on investments ............ 0.58 0.05 0.64 (1.96) (3.85)
------------ --------- --------------- --------- ---------------
Total from operations .............. 0.95 0.76 1.23 (1.17) (2.93)
------------ --------- --------------- --------- ---------------
Distributions to shareholders:
From net investment income ........... (0.34) (0.62) -- -- (0.73)
Tax return of capital ................ -- -- (0.63) (0.88) (0.12)
------------ --------- --------------- --------- ---------------
Total distributions to
shareholders . (0.34) (0.62) (0.63) (0.88) (0.85)
------------ --------- --------------- --------- ---------------
Net asset value, end of period $ 9.56 $ 8.95 $ 8.81 8.21 $ 10.26
------------ --------- --------------- --------- ---------------
------------ --------- --------------- --------- ---------------
Market value, end of period $ 9.00 $ 8.25 $ 7.38 $ 6.88 $ 9.75
------------ --------- --------------- --------- ---------------
------------ --------- --------------- --------- ---------------
SELECTED INFORMATION
Total return, net asset value (a) ...... 10.72% 8.63% 15.78% (10.96)% (20.98)%
Total return, market value (b) ......... 13.49% 21.02% 17.32% (20.90)% (29.98)%
Net assets at end of period (in
millions) $ 60 $ 56 $ 55 $ 52 $ 66
Ratio of expenses to average weekly net
assets excluding interest expense .... 1.23%(g) 1.15% 1.27% 1.21% 0.93%(g)
Ratio of expenses to average weekly net
assets including interest expense 1.23%(g) 1.15% 1.27% 1.21% 1.60%(g)
Ratio of net investment income to
average weekly net assets ............ 7.87%(g) 7.66% 7.23% 9.60% 10.82%(g)
Portfolio turnover rate (excluding
short-term securities and dollar roll
transactions) ........................ 23% 121% 104% 61% 62%
Amount of borrowings outstanding at end
of period (in millions) (c) .......... -- -- -- -- $ 15
Per-share amount of borrowings
outstanding at end of period ......... -- -- -- -- $ 2.33
Per-share amount of net assets,
excluding borrowings, at end of
period ............................... -- -- -- -- $ 12.59
Asset coverage ratio (d) ............... -- -- -- -- 540%
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH LIQUID SECURITIES ARE
SEGREGATED ARE NOT CONSIDERED BORROWINGS. SEE NOTE 2 IN THE NOTES TO
FINANCIAL STATEMENTS.
(d) REPRESENTS NET ASSETS, EXCLUDING BORROWINGS, AT END OF PERIOD DIVIDED BY
BORROWINGS OUTSTANDING AT END OF PERIOD.
(e) EFFECTIVE MAY 22, 1996, SALOMON BROTHERS ASSET MANAGEMENT INC. BECAME THE
SUBADVISOR TO THE FUND.
(f) COMMENCEMENT OF OPERATIONS WAS JANUARY 28, 1994.
(g) ANNUALIZED.
- ---------------------------------------------------------------------
1998 Semiannual Report 17 The Americas Income Trust
<PAGE>
Investments in Securities (Unaudited)
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
THE AMERICAS INCOME TRUST April 30, 1998
.................................................................................................
Credit
Principal Rating Market
Description of Security (a) Amount (b) (c) Value (d)
- --------------------------------------------------------- ----------- -------- ------------
<S> <C> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
UNITED STATES OF AMERICA (52.5%):
CORPORATE SECURITIES (6.0%):
General Motors, 8.80%, 3/1/21 ....................... 1,000,000 A $ 1,233,590
Hollinger International Publishing, 9.25%, 2/1/06 ... 1,250,000 BB- 1,309,376
Royal Caribbean Cruises, 8.13%, 7/28/04 1,000,000 BBB- 1,068,570
------------
3,611,536
------------
GOVERNMENT SECURITIES (15.7%):
U.S. Treasury Bond, 7.25%, 5/15/16 .................. 2,000,000 N/A 2,271,600
U.S. Treasury Note, 5.88%, 2/15/04 .................. 2,000,000 N/A 2,020,436
U.S. Treasury Note, 5.88%, 3/31/99 .................. 1,000,000 N/A 1,003,760
U.S. Treasury Note, 6.75%, 4/30/00 .................. 4,000,000 N/A 4,088,040
------------
9,383,836
------------
MORTGAGE-BACKED SECURITIES (30.8%):
FHLMC, 6.50%, 5/1/30 ................................ 5,000,000(e) N/A 4,956,250
FNMA, 8.00%, 5/1/30 ................................. 13,000,000(e) N/A 13,475,280
------------
18,431,530
------------
Total United States of America
(cost: $30,864,472) ............................ 31,426,902
------------
CANADA (17.5%):
CORPORATE SECURITIES (2.8%):
Rogers Cablesystems, 10.00%, 3/15/05 . 1,500,000 BB+ 1,657,500
------------
GOVERNMENT SECURITIES (14.7%):
Canadian Government (Canadian Dollar), 9.75%,
5/1/00 ............................................ 2,900,000 AAA 2,201,110
Canadian Government (Canadian Dollar), 8.00%,
6/1/23 ............................................ 3,000,000 AAA 2,742,426
Canadian Government (Canadian Dollar), 8.75%,
12/1/05 ........................................... 2,850,000 AAA 2,410,684
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 18 The Americas Income Trust
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
THE AMERICAS INCOME TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Credit
Principal Rating Market
Description of Security (a) Amount (b) (c) Value (d)
- --------------------------------------------------------- ----------- -------- ------------
<S> <C> <C> <C>
Canadian Government Residual (Canadian Dollar),
7.17%, 10/1/08 .................................... 3,700,000(f) N-R $ 1,448,607
------------
8,802,827
------------
Total Canada
(cost: $9,438,738) ............................. 10,460,327
------------
MEXICO (19.3%):
GOVERNMENT SECURITIES (12.3%):
Mexican Discount, Brady Bond, Series A, 6.59%,
12/31/19 .......................................... 2,000,000(l) BB 1,875,313
Mexican Discount, Brady Bond, Series B, 6.62%,
12/31/19 .......................................... 1,500,000(l) BB 1,406,484
United Mexican States, 9.88%, 1/15/07 ............... 2,975,000 BB 3,168,375
United Mexican States, 8.63%, 3/12/08 ............... 950,000 BB 936,938
------------
7,387,110
------------
SHORT-TERM SECURITIES (7.0%):
Mexican Cetes, (Mexican Peso), 20.05%, 9/24/98 ...... 18,852,510(f) A-2 2,061,582
Mexican Cetes, (Mexican Peso), 22.65%, 9/3/98 ....... 18,979,340(f) A-2 2,096,914
------------
4,158,496
------------
Total Mexico
(cost: $11,533,428) ............................ 11,545,606
------------
ARGENTINA (12.8%):
GOVERNMENT SECURITIES (12.8%):
Argentina Bocon Pre 1, 3.21%, 4/1/01 ................ 2,078,526(h) BBB- 1,837,354
Argentina Bocon Pro 1, 2.98%, 4/1/07 ................ 622,672(h) BBB- 456,665
Argentina Global, 11.38%, 1/30/17 ................... 250,000 BB 273,750
Argentina Global (Argentine Peso) 144A, 11.75%,
2/12/07 ........................................... 3,750,000(g) BBB- 3,825,478
Argentina Global 144A, 11.75%, 2/12/07 1,000,000(g) BBB- 1,020,000
Argentina Registered, 8.75%, 7/10/02 ................ 250,000 BBB- 229,591
------------
Total Argentina
(cost: $7,380,405) ............................. 7,642,838
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 19 The Americas Income Trust
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
THE AMERICAS INCOME TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Credit
Principal Rating Market
Description of Security (a) Amount (b) (c) Value (d)
- --------------------------------------------------------- ----------- -------- ------------
<S> <C> <C> <C>
BRAZIL (1.5%):
GOVERNMENT SECURITIES (1.5%):
Brazil C Bond, Payment-in-Kind, 5.42%, 4/15/14 ...... 957,177(i) BB- $ 794,457
Brazil Global, 10.13%, 5/15/27 ...................... 100,000 BB- 96,000
------------
Total Brazil
(cost: $781,741) ............................... 890,457
------------
CROATIA (4.5%):
GOVERNMENT SECURITIES (4.5%):
Croatia, Brady Bond, Series A, 6.50%, 7/31/10
(cost: $2,515,162) ................................ 3,000,000(h) BBB- 2,663,438
------------
ECUADOR (1.8%):
GOVERNMENT SECURITIES (1.8%):
Ecuador PDI, 3.00%, 2/27/15 1,668,995(h)
(cost: $930,177) .................................. (i) N-R 1,051,467
------------
PANAMA (5.5%):
GOVERNMENT SECURITIES (5.5%):
Panama FLIRB (interest rate reduction bond), 3.75%,
7/17/14 ........................................... 2,000,000(j) BB+ 1,569,375
2,004,827(h)
Panama PDI, 4.00%, 7/17/16 .......................... (i) BB+ 1,689,067
------------
Total Panama
(cost: $3,335,011) ............................. 3,258,442
------------
PERU (3.1%):
GOVERNMENT SECURITIES (3.1%):
Peru FLIRB, 3.25%, 3/7/17
(cost: $1,797,449) ................................ 3,000,000(k) BB 1,837,500
------------
POLAND (2.3%):
GOVERNMENT SECURITIES (2.3%):
Poland Registered Discount, 3.75%, 10/27/24
(cost: $1,352,763) ................................ 2,000,000(h) BBB- 1,398,750
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 20 The Americas Income Trust
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
THE AMERICAS INCOME TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Credit
Principal Rating Market
Description of Security (a) Amount (b) (c) Value (d)
- --------------------------------------------------------- ----------- -------- ------------
<S> <C> <C> <C>
RUSSIA (5.3%):
LOAN PARTICIPATION (5.3%):
Russia 144A, Brady Bond, Interest Notes, 6.72%,
12/15/15 .......................................... 3,650,000(l) N-R $ 2,623,438
Russia Global Registered, 10.00%, 6/26/07 ........... 550,000 BB- 530,131
------------
Total Russia
(cost: $3,125,185) ............................. 3,153,569
------------
VENEZUELA (2.9%):
GOVERNMENT SECURITIES (2.9%):
Venezuela DCB (debt conversion bond), 6.81%, 12/18/07
(cost: $1,643,017) ................................ 1,904,760(l) B+ 1,707,142
------------
Total Investments in Securities
(cost: $74,697,548) (m) ........................ $ 77,036,438
------------
------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) PORTFOLIO ABBREVIATIONS AND DEFINITIONS:
LIBOR - LONDON INTERBANK OFFERED RATE
BRADY BOND - U.S. DOLLAR DENOMINATED FOREIGN GOVERNMENT DEBT ISSUED TO
PAY FOR DELINQUENT PRINCIPAL AND/OR INTEREST PAYMENTS ON BANK LOANS.
ALL OR A PORTION OF PRINCIPAL AND/OR INTEREST PAYMENTS MAY BE
COLLATERALIZED BY U.S. TREASURIES.
PDI - PAST DUE INTEREST BOND - TYPE OF BRADY BOND WHICH IS ISSUED TO
PAY FOR PAST DUE INTEREST ON BANK LOANS.
PAYMENT-IN-KIND - INTEREST IS GENERALLY PAID BY ISSUING ADDITIONAL PAR
OF THE SECURITY RATHER THAN PAYING CASH.
FLIRB - FRONT-LOADED INTEREST REDUCTION BOND - TYPE OF BRADY BOND FOR
WHICH COUPON RATES ARE FIXED AT AN INCREMENTALLY INCREASING RATE FOR A
SET PERIOD OF TIME AFTER WHICH THE COUPON RATE INCREASES (DECREASES)
IN LINE WITH AN INCREASE (DECREASE) IN A FINANCIAL INDEX SUCH AS
LIBOR.
DISCOUNT BOND - TYPE OF BRADY BOND WHICH IS ISSUED AT A DISCOUNT TO THE
PAR VALUE OF THE BANK LOAN.
DCB - DEBT CONVERSION BOND - TYPE OF FLOATING RATE BRADY BOND.
CETES - MEXICAN TREASURY NOTE.
(b) SECURITIES ARE DENOMINATED AND PRINCIPAL AMOUNTS ARE STATED IN U.S. DOLLARS
EXCEPT FOR THOSE DENOTED OTHERWISE.
(c) THE STANDARD & POOR'S (S&P) AND MOODY'S INVESTORS SERVICE INC. (MOODY'S)
RATINGS ARE A CURRENT ASSESSMENT OF THE CREDIT WORTHINESS OF AN ISSUER WITH
RESPECT TO A SPECIFIC OBLIGATION. RATINGS PROVIDED AND DESCRIBED BELOW ARE
S&P RATINGS. SECURITIES DESIGNATED AS "N-R" ARE NOT RATED BY STANDARD &
POOR'S OR MOODY'S.
"AAA" - Extremely low sensitivity to changing market conditions
and offer the greatest stability of returns.
"AA" - Low sensitivity to changing market conditions and offer
stable returns over short and intermediate holding periods.
- ---------------------------------------------------------------------
1998 Semiannual Report 21 The Americas Income Trust
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
<TABLE>
<S> <C>
"A" - Sensitive to changing market conditions and offer stable
returns over intermediate and long holding periods.
"A-2" - S&P commercial paper rating. The degree of safety
regarding timely payment is strong.
"BBB" - An adequate capacity to pay interest and repay principal.
Whereas it normally exhibits adequate protection parameters,
adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay
principal for debt in this category than in higher rated
categories.
"BB" - Less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties
or exposure to adverse business, financial or economic conditions
which could lead to inadequate capacity to meet timely interest
payments and principal repayments.
"B" - A greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments.
Adverse business, financial or economic conditions will likely
impair capacity or willingness to pay interest and repay
principal.
"N/A" - Certain U.S. and Canadian securities are not individually
rated by S&P or Moody's. Such securities are implied to carry the
country's overall debt rating which in these cases is "AAA". In
addition, repurchase agreements are not rated by S&P or Moody's.
Rating provided is the short-term rating of the counterparty.
</TABLE>
(d) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS. MARKET VALUES ARE STATED IN U.S. DOLLARS.
(e) ON APRIL 30, 1998, THE TOTAL COST OF INVESTMENTS PURCHASED ON A WHEN-ISSUED
BASIS WAS $18,483,625.
(f) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE EFFECTIVE YIELD
ON THE DATE OF PURCHASE.
(g) SECURITIES SOLD WITHIN TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT FROM
REGISTRATION UNDER RULE 144(A) OF THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM OR OTHER ACCREDITED
INVESTORS. SECURITY IS CONSIDERED LIQUID UNDER GUIDELINES ESTABLISHED BY
THE BOARD OF DIRECTORS.
(h) FLOATING RATE BOND. INTEREST RATE DISCLOSED IS THE RATE IN EFFECT ON APRIL
30, 1998.
(i) A PORTION OF THE COUPON INTEREST ON THIS BOND IS ADDED TO PRINCIPAL AND A
PORTION IS RECEIVED IN CASH.
(j) COUPON RATE ON THIS SECURITY INCREASES ANNUALLY IN 0.25% INCREMENTS FROM
3.50% IN 1996 TO 5.00% IN 2002, THEREAFTER RATE INCREASES (DECREASES) WITH
AN INCREASE (DECREASE) IN LIBOR.
(k) COUPON RATE ON THIS SECURITY INCREASES EVERY OTHER YEAR FROM 3.25% IN 1997
TO 5.00% IN 2007, THEREAFTER RATE INCREASES (DECREASES) WITH AN INCREASE
(DECREASE) IN LIBOR.
(l) VARIABLE RATE BOND. INTEREST RATE INCREASES (DECREASES) WITH AN INCREASE
(DECREASE) IN LIBOR. INTEREST RATE DISCLOSED IS THE RATE IN EFFECT ON APRIL
30, 1998.
(m) ALSO APPROXIMATES COST FOR FEDERAL INCOME TAX PURPOSES. THE AGGREGATE GROSS
UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS IN SECURITIES,
BASED ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ...... $ 2,539,112
GROSS UNREALIZED DEPRECIATION ...... (200,222)
------------
NET UNREALIZED APPRECIATION ...... $ 2,338,890
------------
------------
</TABLE>
- ---------------------------------------------------------------------
1998 Semiannual Report 22 The Americas Income Trust
<PAGE>
Shareholder Update
- --------------------------------------------------------------------------------
SPECIAL SHAREHOLDER MEETING RESULTS
A special meeting of shareholders of the fund was held on April
9, 1998. The purpose of the meeting was to vote on a new
sub-advisory agreement between Piper Capital Management
Incorporated ("Piper Capital") and Salomon Brothers Asset
Management Inc. ("SBAM"). In November 1997, Salomon Inc., the
ultimate parent company of SBAM, merged with and into Smith
Barney Holdings Inc., a subsidiary of Travelers Group Inc. ("the
Merger"). Under the Investment Company Act of 1940, the Merger
arguably resulted in the assignment and automatic termination of
the sub-advisory agreement between Piper Capital and SBAM that
was in place at the time, and required the parties to enter in
the new sub-advisory agreement. The terms of the new sub-advisory
agreement are identical in all material respects to the terms of
the sub-advisory agreement in place at the time of the Merger.
The following votes were cast regarding this matter:
<TABLE>
<CAPTION>
SHARES SHARES BROKER
VOTED "FOR" VOTED "AGAINST" ABSTENTIONS NON-VOTES
------------- ----------------- ----------- ---------
<S> <C> <C> <C>
3,810,732 603,763 55,454 --
</TABLE>
- ---------------------------------------------------------------------
1998 Semiannual Report 23 The Americas Income Trust
<PAGE>
Glossary of Terms***
- --------------------------------------------------------------------------------
BENCHMARK
An established basis of comparison for an investment's performance. A benchmark
may be an unmanaged market index or a group of similar investments.
CREDIT SPREAD
The credit spread of a security is the incremental yield over the Treasury curve
that investors demand for assuming the credit risk of the security.
EMERGING-MARKET DEBT
Debt issued by countries characterized as emerging market countries. According
to the World Bank, "emerging market" refers to countries with per-capita annual
incomes of less than $8,625 that have the potential for development. In this
fund, examples include: Brazil, Argentina, Poland and Mexico. Emerging market
debt is usually non-investment grade.
OVERWEIGHTED OR OVERWEIGHTING
In portfolio management, overweighting means a fund's portfolio contains a
higher percentage of a certain sector than its benchmark.
- --------------------------------------------------------------------------------
1998 Semiannual Report 24 The Americas Income Trust
<PAGE>
FOR MORE INFORMATION
- --------------------------------------------------------------------------------
BY PHONE h
- --------------------------------------------------------------------------------
800 866-7778
FOR GENERAL INFORMATION
press 5, our Mutual Fund Services representatives are ready to answer your
questions.
TO ORDER LITERATURE
press 5, ask a service representative to mail you additional literature,
including a Quarterly Update. You can also request to be put on a mailing list
to receive this information automatically each quarter.
BY MAIL N
- --------------------------------------------------------------------------------
Piper Capital Management
Attn: Mutual Fund Services
222 South Ninth Street
Minneapolis, MN 55402-3804
To reduce costs to our shareholders, we have implemented a process to reduce
duplicate mailings of the fund's shareholder reports. This householding process
should allow us to mail one report to each address where one or more registered
shareholders with the same last name reside. If you would like to have
additional reports mailed to your address, please call our Mutual Fund Services
area at 800 866-7778, or mail a request to us.
ON-LINE W
- --------------------------------------------------------------------------------
http://www.piperjaffray.com/
<PAGE>
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