Tax-Free High Yield Portfolio
<TABLE>
<CAPTION>
The Portfolio's ten largest holdings
The ten holdings here make up 7.60% of the Portfolio's net assets
Picture of: Pie Chart
_____________________________________________________________________________________
Percent Value
(of Fund's net assets (as of May 31, 1996)
_____________________________________________________________________________________
<S> <C> <C>
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A
6.25% 2021 .91% $55,545,510
New Hampshire Industrial Development Authority
Pollution Control Revenue Bonds
State Public Service Series 1991B
7.50% 2021 .88 53,498,578
Eastern North Carolina Municipal Power Agency
Power System Refunding Revenue Bonds Series 1991A
5.75% 2019 .81 49,672,700
Northern California Power Agency Geothermal #3
Revenue Bonds
5.00% 2009 .75 45,684,550
Puerto Rico Electric Power Agency Revenue Bonds
Series N-O
6.00% 2010 .74 45,047,215
Utah Intermountain Power Agency Power Supply Refunding
Revenue Bonds Series 1996C
5.70% 2017 .73 44,481,540
Development Finance Authority Pollution Control
Revenue Bonds Illinois Power Series 1986A-C A.M.T.
7.625% 2016 .72 44,252,186
Monroe County Michigan Pollution Control Revenue Bonds
Detroit Edison
7.75% 2019 .71 43,436,593
Foothill Eastern California Transportation Corridor Agency
Revenue Bonds Series 1995A
6.00% 2034 .70 42,987,401
Texas Alliance Airport Authority Special Facility
Revenue Bonds American Airlines Series 1990
7.50% 2029 .65 39,448,398
Note: Certain of the Portfolio's investment income may be subject to the
Alterative Minimum Tax.
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
Tax-Free High Yield Portfolio
May 31, 1996
Assets
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
(identified cost $5,677,829,623) $5,953,384,811
Dividends and accrued interest receivable 131,575,200
Receivable for investment securities sold 77,383,318
Total assets 6,162,343,329
Liabilities
Disbursements in excess of cash on demand deposit 25,394,516
Payable for investment securities purchased 26,106,334
Accrued investment management services fee 74,028
Other accrued expenses 48,166
Total liabilities 51,623,044
Net assets $6,110,720,285
See accompany notes to financial statements.
<PAGE>
Statement of Operations
Tax-Free High Yield Portfolio
For the period from May 13, 1996 (commencement of operations)
to May 31, 1996
Investment income
(Unaudited)
Income:
Interest $23,119,613
Expenses (Note 2):
Investment management services fee 1,548,401
Compensation of board members 2,356
Custodian fees 17,735
Audit fees 3,387
Administrative 350
Other 11,359
Total expenses 1,583,588
Earning credits on cash balances (3,284)
Total net expenses 1,580,304
Investment income -- net 21,539,309
Realized and unrealized gain -- net
Net realized gain on security transactions (Note 3) 5,925,448
Net realized loss on futures 1,066,306,979
Net realized gain on closed ,exercised or expired
written contracts (Note 5) 1,795,302
Net realized gain on investments 285,905
Net change in unrealized appreciation or
depreciation of investments 2,984,788
Net gain on investments 3,270,693
Net increase in net assets
resulting from operations $24,810,002
See accompanying notes to financial statements.
Statement of changes in net assets
Tax-Free High Yield Portfolio
For the period from May 13, 1996 to May 31, 1996
Operations and distributions
(Unaudited)
Investment income - net $21,539,309
Net realized gain on investments 285,905
Net change in unrealized appreciation or
depreciation of investments 2,984,788
Net increase in net assets
resulting from operations 24,810,002
Net contributions 6,085,910,283
Total increase in net assets 6,110,720,285
Net assets at beginning of period 0
Net assets at end of period $6,110,720,285
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
Tax-Free High Yield Portfolio
(Unaudited as to May 31, 1996)
_______________________________________________________________________
1. Summary of significant accounting policies
The Tax-Free High Yield Portfolio (Portfolio) is a series of Tax Free
Income Trust (Trust) and is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company.
Tax Free Income Portfolio seeks to provide unitholders with a high
yield generally exempt from federal income taxes by investing in
medium- and lower-quality bonds and notes issued by or on behalf
of state and local governmental units whose interest generally
is exempt from federal income tax. The Portfolio also may invest
in derivative instruments and money market instruments. The
Declaration of Trust permits the Trustees to issue
non-transferable interests in the Portfolio. The
Portfolio commenced operations on May 13, 1996. At this
time an existing fund transferred its assets to the Portfolio
in return for an ownership percentage of the Portfolio.
Significant accounting polices followed by the Portfolio are summarized
below:
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 of assets
and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increase and decrease in net assets from operations during the
period. Actual results could differ from those estimates.
Valuation of securities
All securities are valued at the close of each business day. Securities
traded on national securities exchanges or included in national market
systems are valued at the last quoted sales price; securities for which
market quotations are not readily available are valued at fair value
according to methods selected in good faith by the board. Determination
of fair value involves, among other things, reference to market indexes,
matrixes and data from independent brokers. Short-term securities maturing
in more than 60 days from the valuation date are valued at the market
price or approximate market value based on current interest rates; those
maturing in 60 days or less are valued at amortized cost.
Option transactions
In order to produce incremental earnings, protect gains and facilitate
buying and selling of securities for investment purposes, the Portfolio
may buy or write options traded on any U.S. or foreign exchange or in
the over-the-counter market where the completion of the obligation is
dependent upon the credit standing of the other party. The Portfolio also
may buy and sell put and call options and write covered call options on
portfolio securities and may write cash-secured put options. The risk in
writing a call option is that the Portfolio gives up the opportunity of
profit if the market price of the security increases. The risk in writing
a put option is that the Portfolio may incur a loss if the market price
of the security decreases and the option is exercised. The risk in buying
an option is that the Portfolio pays a premium whether or not the option
is exercised. The Portfolio also has the additional risk of not being able
to enter into a closing transaction if a liquid secondary market does not
exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The
Portfolio will realize a gain or loss upon expiration or closing of the
option transaction. When an option is exercised, the proceeds on sales
for a written call option, the purchase cost for a written put option or
the cost of a security for a purchased put or call option is adjusted by
the amount of premium received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the market,
the Portfolio may buy and sell stock index futures contracts traded on
any U.S. or foreign exchange. The Portfolio also may buy or write put and
call options on these futures contracts. Risks of entering into futures
contracts and related options include the possibility that there may be
an illiquid market and that a change in the value of the contract or option
may not correlate with changes in the value of the underlying securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Portfolio each day. The variation margin
payments are equal to the daily changes in the contract value and are
recorded as unrealized gains and losses. The Portfolio recognizes a realized
gain or loss when the contract is closed or expires.
Federal taxes
For federal income tax purposes the Portfolio qualifies as a partnership
and each investor in the Portfolio is treated as the owner of its
proportionate share of the net assets, income, expenses and realized and
unrealized gains and losses of the Portfolio. Accordingly, as a "pass-through"
entity, the Portfolio does not pay any income dividends or capital gain
distributions.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including level-yield amortization of
premium and discount, is accrued daily.
________________________________________________________________________
2. Fees and expenses
The Trust, on behalf of the Portfolio, has entered into an Investment
Management Services Agreement with American Express Financial Corporation
(AEFC) for managing its portfolio. Under this agreement, AEFC determines
which securities will be purchased, held or sold. The management fee is
a percentage of the Portfolio's average daily net assets in reducing
percentages from 0.49% to 0.36% annually.
Under the agreement, the Trust also pays taxes and nonadvisory expenses,
which include custodian fees to be paid to an affiliate of AEFC; audit
and certain legal fees; fidelity bond premiums; registration fees for
units; Portfolio office expenses; consultants' fees; compensation of
trustees; corporate filing fees; and any other expenses properly payable
by the Trust or Portfolio, approved by the board.
For the period from May 13, 1996 to May 31, 1996, the Portfolio's custodian
fees were reduced by $3,284 as a result of earnings credits from overnight
cash balances.
Pursuant to a Placement Agency Agreement, American Express Financial
Advisors Inc. acts as placement agent of the units of the Trust.
________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $40,619,570 and $58,871,412,
respectively, for the period from May 13, 1996 to May 31, 1996. For the
same period, the portfolio turnover rate was 14%. Realized gains and losses
are determined on an identified cost basis.
_______________________________________________________________________
4. Interest rate futures contracts
At May 31, 1996, investments in securities included securities valued at
$38,083,319 that were pledged as collateral to cover initial margin
deposits on 745 purchase and 100 sale contracts. The market value of the
open contracts at May 31, 1996 was $91,312,813 with a net unrealized loss
of $1,904,531. The Portfolio maintains, in a segregated account with its
custodian, securities with at least a market value equal to the value of
these open long futures contracts.
_______________________________________________________________________
5. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
Period ended May 31, 1996
__________________________
Calls
__________________________
Contracts Premium
________________________________________________________
Opened 1,800 $1,795,302
Exercised (1,800) (1,795,302)
________________________________________________________
Balance May 31, 1996 -- $ --
________________________________________________________
_______________________________________________________________________
6.Capital loss carryover
For federal income tax purposes, the Fund has a capital loss carryover of
$16,716,000 at May 31, 1996, that if not offset by subsequent capital
gains, will expire in 2004. It is unlikely the board will authorize a
distribution of any realized gains until the available capital loss
carryover has been offset or expires.
<PAGE>
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<CAPTION>
Investments in securities
Tax-Free High Yield Portfolio (Percentages represent value of
May 31, 1996 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (95.9%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,i) Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama (0.8%)
Baldwin County Eastern Shore Health Care Authority Hospital
Revenue Bonds Thomas Hospital Series 1991 8.50 % 2016 $ 4,765,000 $ 5,143,818
Camden Industrial Development Board Solid Waste Disposal
Revenue Bonds MacMillan Bloedel Series 1991A A.M.T. 7.75 2019 8,500,000 (g) 9,017,650
Courtland Industrial Development Board Pollution Control
Refunding Bonds Champion International 6.15 2019 17,000,000 16,369,300
Marengo County Limited Obligation Capital Outlay
Warrants Series 1988 8.50 2018 3,000,000 3,344,310
Mobile Industrial Development Board Solid Waste
Refunding Revenue Bonds Mobile Energy Services 6.95 2020 11,250,000 11,634,862
Mobile Medical Clinic Board Psychiatric
Revenue Bonds Charter Medical 11.50 2008 2,740,000 2,778,524
______________
Total 48,288,464
_____________________________________________________________________________________________________________________________
Alaska (0.4%)
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.05 2004 7,000,000 (f) 4,536,000
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.15 2005 7,000,000 (f) 4,261,110
State Finance Housing Authority Series 1995A (MBIA Insured) 5.875 2030 18,500,000 17,623,100
______________
Total 26,420,210
_____________________________________________________________________________________________________________________________
Arizona (0.5%)
Chandler Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 2,900,000 2,962,147
Maricopa County Hospital System Revenue Bonds
Samaritan Health Services Series 1981 12.00 2008 4,590,000 5,044,394
Maricopa County Industrial Development Authority
Multi-family Housing Revenue Bonds Series B 7.375 2026 2,335,000 2,298,200
Maricopa County Pollution Control Refunding Revenue Bonds
Palo Verde Public Service 6.375 2023 3,500,000 3,237,115
Phoenix Civic Improvement Waste Water System
Lease Refunding Revenue Bonds 5.00 2018 5,000,000 4,381,200
Phoenix Industrial Development Authority
Refunding Revenue Bonds Christian Care Apartments 6.50 2026 9,525,000 8,977,884
Scottsdale Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 3,170,000 3,237,933
______________
Total 30,138,873
_____________________________________________________________________________________________________________________________
Arkansas (0.1%)
Pope County Solid Waste Disposal Revenue Bonds
Arkansas Power & Light Series 1991 A.M.T. 8.00 2021 3,250,000 3,500,575
_____________________________________________________________________________________________________________________________
California (8.0%)
Burbank Redevelopment Agency Tax Allocation Bonds
Golden State Series 1993A 6.00 2013-23 9,500,000 9,133,370
Community Development Authority Health Facilities
Unihealth America Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 7.32 2011 22,400,000 (d) 21,700,000
East Bay Municipal Utility District Water Revenue Bonds
Series 1993 Inverse Floater (MBIA Insured) 7.42 2008 15,500,000 (d) 14,492,500
Eden Township Hospital District Insured Health Facilities
Refunding Revenue Bonds Certificate of Participation
Eden Hospital Health Services Series 1993 5.85 2018 3,750,000 3,482,625
Foothill Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 5.00 2035 41,070,000 32,728,683
Foothill Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 6.00 2034 46,225,000 42,987,401
Fresno Health Facility Refunding Revenue Bonds
Holy Cross Health System (MBIA Insured) 5.625 2013 3,000,000 2,955,720
Irwindale Redevelopment Agency Subordinate Lein
Tax Allocation Bonds 7.05 2026 5,750,000 5,771,448
Los Angeles County Certificate of Participation 6.708 2015 20,000,000 20,162,800
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
Delta Airlines 6.35 2025 13,000,000 12,794,990
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
United Airlines Series 1984 8.80 2021 11,650,000 12,894,686
Los Angeles International Airport Regulatory Airports
Improvement Sublease Revenue Bonds Western Airlines
Series 1985 11.25 2025 10,000,000 10,369,600
Los Angeles Water & Power Electric Plant
Refunding Revenue Bonds Series 1992 6.375 2020 10,000,000 10,279,500
Modesto Santa Clara Redding Public Power Bonds
San Juan Series C (AMBAC Insured) 5.50 2021 4,500,000 4,198,860
Northern California Power Agency Geothermal #3
Revenue Bonds 5.00 2009 49,635,000 45,684,550
Novato Community Facility District #1 Vintage Oaks
Public Improvement Special Tax Refunding Bonds 7.25 2021 5,000,000 5,109,950
Oceanside Certificate of Participation Refunding Bonds
Oceanside Civic Center (MBIA Insured) 5.25 2019 7,000,000 6,346,830
Orange County Special Tax Community Facilities Bonds
Aliso Veijo District 88-1 Series 1992A 7.35 2018 6,000,000 6,906,420
Pleasanton Joint Powers Financing Authority Reassessment
Revenue Bonds Series 1993A 6.15 2012 4,825,000 4,698,875
Regional Airports Improvement Facilities Sublease
Revenue Bonds Continental Airlines Los Angeles
International Airport Series 1988 A.M.T. 9.00 2008-17 12,600,000 13,420,845
Sacramento Cogeneration Authority Revenue Bonds
Proctor & Gamble Series 1995 6.50 2014-21 11,800,000 11,877,040
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series R 6.00 2015-17 20,385,000 19,662,282
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.60 2005 15,800,000 (d) 15,602,500
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.80 2006 16,400,000 (d) 16,318,000
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (MBIA Insured) 7.25 2015 15,000,000 (d) 13,837,500
Sacramento Power Authority Cogeneration Revenue Bonds
Series 1995 6.00 2022 25,000,000 23,349,000
San Joaquin Hills Orange County Transportation
Corridor Agency Senior Lien Toll Road Revenue Bonds 6.75 2032 14,785,000 15,082,474
San Jose Redevelopment Agency Merged Area Tax
Allocation Bonds Series 1993 Inverse Floater
(MBIA Insured) 7.08 2014 33,600,000 (d) 29,442,000
San Marcos Public Facility Authority
Refunding Revenue Bonds
Civic Center Public Improvement Series A 6.20 2022 12,300,000 11,458,557
Sierra Unified School District Fresno County
Certificate of Participation Capital Financing
Refunding Bonds Series 1993 6.125 2018 6,470,000 6,167,139
Southern California Public Power Authority
Power Revenue Bonds Palo Verde Series 1993 Inverse Floater
(FGIC Insured) 5.30 2017 20,000,000 (d) 16,750,000
Southern California Public Power Authority Power Revenue Bonds
Series 1986B 5.75 2017 2,025,000 1,939,100
Southern California Public Power Authority Transmission
Refunding Revenue Bonds Series 1986B 7.00 2022 240,000 246,463
South Tahoe Joint Power Financing Authority
Refunding Revenue Bonds South Tahoe Area #1
Series 1995B 6.00 2028 9,900,000 8,963,361
Ukiah Unified School District Mendocino County
Certificate of Participation Series 1993 6.00 2010 5,000,000 4,868,850
University of California Refunding Revenue Bonds
Multiple Purpose Project (AMBAC Insured) 5.25 2016 6,000,000 5,417,400
______________
Total 487,101,319
_____________________________________________________________________________________________________________________________
Colorado (6.0%)
Arapahoe County Capital Improvement Trust Fund
E-470 Highway Revenue Bonds 7.00 2026 22,000,000 22,709,720
Arapahoe County Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 4,000,000 4,391,720
Aurora Centretech Metropolitan District
Arapahoe County Series 1987B 6.00 2023 5,732,785 4,227,986
Bowles Metropolitan District General Obligation Bonds
Series 1995 7.75 2015 16,000,000 15,930,080
Briargate Public Building Authority Landowner
Assessment Lien Bonds Series 1985A 10.25 2000 5,000,000 (e) 3,400,000
Castle Rock Ranch Public Facility Improvement
Revenue Bonds Series 1996 6.25 2017 10,000,000 9,918,300
Colorado Health Facility Authority Hospital Improvement
Refunding Revenue Bonds
Parkview Episcopal Medical Center Series 1995 6.125 2025 7,000,000 6,462,260
Colorado Health Facility Authority Revenue Bonds
Escrowed to Maturity Liberty Heights Zero Coupon 7.50 2022 81,465,000 (f) 12,870,655
Colorado Springs Hospital Revenue Bonds
Memorial Hospital Series 1990 7.875 2010 5,000,000 5,584,650
Colorado Springs Stetson Hills Public Building Authority
Landowner Assessment Lien Bonds Series 1988A 9.75 2008 2,869,110 (e) 86,073
Colorado Springs Utilities System Refunding Revenue Bonds
Series 1991C 6.50 2015 24,895,000 26,291,112
Colorado Springs Utilities System Refunding Revenue Bonds
Series 1991C 6.75 2021 30,000,000 32,688,225
Colorado Springs Utilities System
Pre-Refunded Revenue Bonds Series 1991C 6.50 2015 1,505,000 1,649,721
Denver City & County Airport Systems Revenue Bonds
Series 1991A A.M.T. 8.75 2023 10,000,000 (g) 11,929,000
Denver City & County Airport Systems Revenue Bonds
Series 1991D A.M.T. 7.75 2021 8,650,000 9,487,407
Denver City & County Airport Systems Revenue Bonds
Series 1992A 7.25 2025 20,975,000 23,097,251
Denver City & County Airport Systems Revenue Bonds
Series 1992B A.M.T. 7.25 2023 20,500,000 21,473,545
Denver City & County Airport Systems Revenue Bonds
Series 1994A A.M.T. 7.50 2012-23 24,340,000 26,925,039
Denver City & County Airport Systems Revenue Bonds
Series 1995A (MBIA Insured) 5.70 2025 20,000,000 19,174,600
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1991 8.00 2006 1,385,000 1,390,651
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1995B 11.00 2006 730,000 708,100
Denver Special Facility Airport Revenue Bonds
United Air Lines Series A A.M.T. 6.875 2032 25,400,000 25,572,466
Denver Urban Renewal Authority Tax Increment
Revenue Bonds Downtown Denver Redevelopment
Adams Mark Hotel Series 1989 A.M.T. 8.00 2015-17 20,000,000 19,992,163
Denver Urban Renewal Authority Tax Increment
Revenue Bonds South Broadway Montgomery Ward
Urban Renewal Series 1992 8.50 2016 14,280,000 14,744,814
Denver West Metropolitan District General Obligation
Refunding Improvement Bonds Series 1995 7.00 2014 4,230,000 4,331,012
Hotchkiss Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 1,500,000 1,646,895
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.25 2011 3,065,000 3,222,847
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.30 2018 2,775,000 2,885,611
Northern Colorado Water District Revenue Bonds Series D 6.00 2015 4,000,000 4,002,520
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 7.50 1998 2,700,000 2,802,114
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.25 2013 2,580,000 2,769,346
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.50 2013 12,000,000 13,078,560
Thornton Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 4,500,000 4,500,000
Westminster Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 3,500,000 3,842,755
______________
Total 363,787,198
_____________________________________________________________________________________________________________________________
District of Columbia (0.6%)
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.00 2010 27,875,000 27,978,974
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.10 2011 7,580,000 7,636,395
Housing Finance Agency Multiple Family Mortgage
Revenue Bonds Temple Courts Section 8 Series 1985 (FHA Insured) 12.00 2022 1,320,000 1,464,725
______________
Total 37,080,094
_____________________________________________________________________________________________________________________________
Florida (3.7%)
Broward County Airport System Revenue Bonds
Series 1989B A.M.T. 7.625 2013 15,000,000 16,171,200
Charlotte County Development Authority 1st Mortgage
Refunding Revenue Bonds
Royal Palm Retirement Centre Series 1991 9.50 2014 4,145,000 4,354,239
Crossings at Fleming Island Community Development District
Special Assessment Bonds Series 1995 8.25 2016 10,375,000 10,982,975
Crossings at Fleming Island Community Development
District Utility Revenue Bonds Series 1994 7.375 2019 14,000,000 13,806,380
Department of Transportation Turnpike Revenue Bonds
Series 1991A (AMBAC Insured) 6.25 2020 20,000,000 20,215,000
Gateway Centre Development District Pinellas County
Special Assessment Revenue Bonds Series 1988 9.125 2009 2,195,000 2,336,885
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A (MBIA Insured) 6.50 2016 24,760,000 25,688,748
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A 7.00 2014 24,000,000 25,959,592
Jacksonville Electric Authority St. John's River Power
Park System Revenue Bonds Series 1989 6.00 2015 10,300,000 10,308,240
Jacksonville Health Facilities Authority Hospital
Refunding Revenue Bonds Riverside Hospital
Series 1989 7.625 2013 1,600,000 1,684,464
Lakeland Electric & Water Refunding Revenue Bonds
Series 1986 7.00 2009 5,000,000 5,040,500
Lakewood Ranch Community Development District #1
Special Assessment Bonds Series 1994 8.25 2014 8,270,000 8,526,866
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988A A.M.T. 9.625 2018 5,545,000 6,204,190
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988B 9.50 2020 3,970,000 4,431,235
Miami Health Facility Authorization Revenue Bonds
Inverse Floater (AMBAC Insured) 6.62 2015 3,500,000 (d) 2,918,125
Municipal Power Agency Refunding Revenue Bonds
St. Lucie Series 1986 7.375 2016 6,000,000 6,191,760
Palm Beach County Health Facilities Authority Hospital
Revenue Bonds Good Samaritan Health Series 1993 6.30 2022 4,250,000 4,258,457
Polk County Industrial Development Authority 1st Mortgage
Refunding Revenue Bonds Spring Haven II 8.75 2014 6,415,000 6,748,003
Port Everglades Port Authority Revenue Bonds Junior Lien 5.00 2016 18,635,000 16,605,835
Riverwood Community Development District Charlotte County
Special Assessment Revenue Bonds Series 1992A-B 8.50 2012 6,415,000 6,774,817
State Board of Education Refunding Bonds Series 1989A 6.00 2025 16,750,000 16,590,875
Sumter County Village Community Development District #1
Capital Improvement Revenue Bonds Series 1992 8.40 2012 2,755,000 2,871,151
Sunrise Utility System Refunding & Improvement
Revenue Bonds 10.75 2018 5,000,000 6,140,300
______________
Total 224,809,837
_____________________________________________________________________________________________________________________________
Georgia (2.3%)
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 6.25 2019 8,685,000 8,299,647
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 7.90 2018 13,500,000 14,301,225
Colquitt County Development Authority Revenue Bonds
Escrowed to Maturity Zero Coupon 6.87 2021 46,350,000 (f) 7,651,922
Effingham County Pollution Control Revenue Bonds
Fort Howard Series 1988 7.90 2005 19,850,000 20,754,168
Fulco Hospital Authority Revenue Anticipation Certificate
Georgia Baptist Health Care Systems Series 1992A 6.375 2022 20,300,000 19,439,077
Municipal Electric Authority Power Refunding Bonds
Series 1989R 6.00 2014 9,130,000 9,051,208
Municipal Electric Authority Power Revenue Bonds 6.00 2020 3,350,000 3,241,962
Municipal Electric Authority Power Revenue Bonds
Series 5 (FGIC Insured) 6.00 2025 34,490,000 33,840,898
Municipal Electric Authority Power Revenue Bonds
Series L 5.00 2020 1,150,000 988,988
Rockdale County Development Authority Solid Waste
Disposal Revenue Bonds Visy Paper Series 1993 A.M.T. 7.50 2026 10,000,000 10,056,600
Savannah Georgia Economic Development Authority
Revenue Bonds Escrowed to Maturity Zero Coupon 6.87 2021 64,220,000 (f) 10,602,080
______________
Total 138,227,775
_____________________________________________________________________________________________________________________________
Hawaii (0.3%)
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 6.52 2006 10,000,000 (d) 9,912,500
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 6.82 2008 10,000,000 (d) 9,987,500
______________
Total 19,900,000
_____________________________________________________________________________________________________________________________
Illinois (8.4%)
Bradley Kankakee County Tax Increment
Refunding Revenue Bonds Series 1993 8.40 2012 5,800,000 6,280,588
Broadview Cook County Senior Lien Tax Increment
Revenue Bonds Series 1993 8.25 2013 12,000,000 12,939,240
Chicago General Obligation Refunding Bonds
Series 1995A (AMBAC Insured) 5.50 2018 20,000,000 18,728,600
Chicago General Obligation Bonds Series 1991
(AMBAC Insured) 6.00 2016 6,170,000 6,085,779
Chicago General Obligation Bonds Series 1994A
(AMBAC Insured) 5.875 2022 17,850,000 17,331,993
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 6.00 2018 29,000,000 28,012,260
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 7.50 2016 21,000,000 22,551,480
Chicago O'Hare International Airport General Airport
Refunding Revenue Bonds Series 1993A 5.00 2016 14,450,000 12,752,125
Chicago O'Hare International Airport
Special Revenue Facility Bonds Delta Airlines
Series 1992 6.45 2018 10,000,000 9,832,400
Chicago O'Hare International Airport
Special Revenue Facility Bonds United Airlines
Series C 8.20 2018 23,235,000 24,996,910
Chicago O'Hare International Airport Terminal
Special Revenue Bonds A.M.T. 7.50 2017 32,250,000 34,600,057
Chicago O'Hare International Airport Terminal
Special Revenue Bonds (FGIC Insured) A.M.T. 7.875 2025 17,750,000 18,971,910
Chicago Ridge Special Service Area #1 Unlimited Ad Valorem
Tax Bonds Series 1990 9.00 2008 2,700,000 2,892,132
Chicago Wastewater Transmission Revenue Bonds
Series 1994 (MBIA Insured) 6.375 2024 22,500,000 23,028,750
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds Mark IV Series 1992 9.75 2012 1,740,000 1,995,154
Development Finance Authority Improvement
Refunding Revenue Bonds Catholic Partners
Series 1995A (Connie Lee Insured) 5.30 2018 15,750,000 14,052,465
Development Finance Authority Pollution Control
Refunding Revenue Bonds Central Illinois Public Service
Series 1993B-2 5.90 2028 2,500,000 2,423,200
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison Series 1994 5.70 2009 2,000,000 1,915,700
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison Series 1994 5.85 2014 4,500,000 4,150,215
Development Finance Authority Pollution Control
Refunding Revenue Bonds Illinois Power Series 1991A 7.375 2021 19,250,000 20,966,715
Development Finance Authority Pollution Control
Revenue Bonds Illinois Power Series 1986A-C A.M.T. 7.625 2016 42,560,000 44,252,186
Development Finance Authority Retirement Housing
Revenue Bonds Escrowed to Maturity Zero Coupon 7.75 2020 68,000,000 (f) 12,307,320
Development Finance Authority Solid Waste Disposal Facility
Revenue Bonds Ford Heights Waste Tire to Energy
Series 1994 A.M.T. 7.875 2011 32,000,000 (e) 7,360,000
Educational Facilities Authority Refunding Revenue Bonds
Art Institute of Chicago Series 1993 5.75 2018 1,750,000 1,648,500
Educational Facilities Authority Refunding Revenue Bonds
Art Institute of Chicago Series 1993 5.80 2027 3,350,000 3,144,779
Educational Facilities Authority Refunding Revenue Bonds
Loyola University of Chicago Series 1993 Inverse Floater
(FGIC Insured) 7.32 2012 11,000,000 (d) 10,491,250
Granite City Madison County Hospital
Refunding Revenue Bonds St. Elizabeth Medical Center
Series 1989A 8.125 2008 3,500,000 3,584,000
Hanover Park Cook & DuPage Counties 1st Mortgage
Revenue Bonds Windsor Park Manor Series 1989 9.50 2014 7,000,000 7,555,240
Health Facilities Authority Refunding Revenue Bonds
Edwards Hospital Series 1993A 6.00 2019 6,350,000 6,018,276
Health Facilities Authority Refunding Revenue Bonds
Masonic Hospital 6.125 2023 3,005,000 2,761,084
Health Facilities Authority Refunding Revenue Bonds
Masonic Medical Center Series 1993 5.50 2019 2,000,000 1,778,800
Health Facilities Authority Refunding Revenue Bonds
Peoria Methodist Medical Center Series 1985A 8.00 2014 4,000,000 4,006,760
Health Facilities Authority Refunding Revenue Bonds
University of Chicago Series 1993 Inverse Floater
(MBIA Insured) 7.32 2014 10,000,000 (d) 9,287,500
Health Facility Authority Revenue Bonds
Delnore Community Hospital Series 1989 8.00 2019 7,000,000 7,791,420
Health Facility Authority Revenue Bonds
Sarah Bush Lincoln Health Center Series 1992 7.25 2012-22 4,000,000 4,128,840
Health Facility Authority Revenue Bonds
South Suburban Hospital Series 1992 7.00 2009-18 9,000,000 9,457,230
Hodgkins General Obligation Tax Increment Bonds
Series 1991 9.50 2009 13,000,000 15,946,354
Hodgkins General Obligation Tax Increment Bonds
Series 1995C 9.00 2001 1,010,000 1,007,717
Hodgkins General Tax Increment Bonds
Series 1995 A 7.625 2013 9,000,000 9,133,470
Lansing Tax Increment Refunding Revenue Bonds
Landings Redevelopment Area Limited Sales Tax Pledge
Series 1992 7.00 2008 10,000,000 10,768,700
Marion General Obligation Hospital Alternate
Revenue Source Bonds Series 1991 7.50 2016 3,800,000 4,057,754
Metropolitan Fair & Exposition Authority
Dedicated State Tax Revenue Bonds 6.00 2014 5,585,000 5,488,603
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds McCormick Place
Zero Coupon (FGIC Insured) 5.55 2016 4,250,000 (f) 1,252,730
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (FGIC Insured) 5.60 2021 4,410,000 (f) 933,112
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (MBIA Insured) 6.61 2017 11,210,000 (f) 3,077,257
Northwest Suburban Water Supply Joint
Action Water Agency (MBIA Insured) 5.75 2012 2,000,000 1,981,400
Northwest Water Commission Cook & Lake County Water
Revenue Bonds (MBIA Insured) 6.50 2012 5,025,000 5,246,753
Pekin Pollution Control Revenue Bonds
Commonwealth Edison Series 1979B 6.75 2004 2,250,000 2,255,108
Regional Transportation Authority General Obligation Bonds
Counties of Cook, Dupage, Kane, Lake, McHenry and Will
Series 1992A (AMBAC Insured) 6.125 2022 7,200,000 7,201,800
Tinley Park Cook & Will Counties Limited Sales Tax
Revenue Bonds Series 1988 10.25 1999 895,000 (e) 349,050
Tinley Park Cook & Will Counties Unlimited Ad Valorem
Tax Bonds of Special Service 10.65 2007 1,335,000 1,159,600
Robbins Cook County Resource Recovery Revenue Bonds
Robbins Resource Recovery Partners Series 1994A A.M.T. 9.25 2014 21,000,000 20,160,000
Waukegan Pollution Control Revenue Bonds
Commonwealth Edison Series B 6.875 2009 5,000,000 5,007,350
______________
Total 515,107,616
_____________________________________________________________________________________________________________________________
Indiana (3.0%)
Brazil 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 4,225,000 4,564,859
Carmel Retirement Rental Housing Refunding Revenue Bonds
Beverly Enterprises Series 1992 8.75 2008 7,000,000 (g) 7,657,370
East Chicago Elementary School Building Lake County
First Mortgage Refunding Bonds Series 1995 6.25 2016 8,000,000 7,892,800
Hammond Multi-School Building 1st Mortgage Bonds
Series 1995 (MBIA Insured) 5.80 2015 3,590,000 3,505,922
Hammond Multi-School Building 1st Mortgage Bonds
Series 1995 (MBIA Insured) 5.85 2020 16,015,000 15,633,523
Hanover 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 6,910,000 7,465,840
Health Facility Authority Hospital Revenue Bonds
Community Hospital of Anderson Series 1993 6.00 2023 10,000,000 9,322,900
Health Facility Authority Hospital Revenue Bonds
Union Hospital (MBIA Insured) Series 1993 5.125 2018 10,000,000 8,765,400
Indianapolis Resource Recovery Revenue Bonds
Ogden Martin System of Indianapolis Series 1985AB 7.80 2004 9,400,000 9,817,580
Indianapolis Resource Recovery Revenue Bonds
Ogden Martin System of Indianapolis Series 1985B 7.90 2008 2,050,000 2,140,754
Kokomo Hospital Authority Hospital Refunding Revenue Bonds
St. Joseph's Hospital Series 1988A 8.75 2013 5,000,000 5,532,650
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.00 2023 2,990,000 2,688,219
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.25 2012 5,070,000 4,832,876
Lawrenceburg Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series E 5.90 2019 8,100,000 7,544,664
Marion County Hospital Authority Hospital Facility
Revenue Bonds Methodist Hospital Series 1989 6.50 2008-13 19,670,000 20,571,438
Municipal Power Agency Power Supply System
Refunding Revenue Bonds 5.75 2018 6,470,000 6,067,307
Princeton Pollution Control Revenue Bonds
State Public Service Series 1987C (MBIA Insured) 7.60 2012 16,000,000 16,687,520
Rockport Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series B 7.60 2016 5,500,000 5,880,105
St. Joseph County Hospital Facility Revenue Bonds
Memorial Hospital of South Bend 9.40 2010 2,000,000 2,410,540
Sullivan Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series C 5.95 2009 18,500,000 17,951,290
Vincennes Economic Development
Revenue Bonds Southwest Indiana
Regional Youth Village Facility Series 1993 8.50 2024 16,575,000 16,867,715
______________
Total 183,801,272
_____________________________________________________________________________________________________________________________
Iowa (0.8%)
Iowa City Refunding Revenue Bonds Mercy Hospital
Series 1986 6.00 2012 6,300,000 6,159,951
Keokuk Hospital Facilities Refunding Revenue Bonds
Keokuk Area Hospital Series 1991 7.625 2021 5,350,000 5,632,640
Muscatine Electric Refunding Revenue Bonds Series 1986 5.00 2007-08 7,720,000 7,326,841
Muscatine Electric Refunding Revenue Bonds Series 1986 6.00 2005-06 23,280,000 23,292,293
Sioux City Hospital Facility Revenue Bonds
St. Lukes Regional Medical Center 10.875 2013 3,670,000 3,907,779
______________
Total 46,319,504
_____________________________________________________________________________________________________________________________
Kentucky (1.2%)
Development Finance Authority Hospital Facility
Revenue Bonds St. Luke Hospital Series 1989B 6.00 2019 22,695,000 21,626,746
Development Finance Authority Medical Center
Refunding Revenue Improvement Bonds Ashland Hospital
Series 1987 9.75 2011 4,000,000 4,388,556
Jefferson County Multi-family Housing Revenue Bonds
Brownsboro Gardens Series 1986A (FHA Insured) A.M.T. 8.00 2026 5,495,000 5,640,508
Louisville Airport Lease Revenue Bonds Series 1989A A.M.T. 7.875 2019 4,000,000 4,364,280
Louisville & Jefferson County Riverport Authority Mortgage
Revenue Bonds Series 1986 A.M.T. 7.875 2016 7,185,000 7,431,589
McCracken County Revenue Bonds Lourdes Hospital 6.00 2012 8,300,000 8,377,439
Muhlenberg County Hospital Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1988 9.50 2010 4,205,000 4,520,291
Turnpike Authority Economic Road Development
Refunding Revenue Bonds Series 1993 Inverse Floater
(AMBAC Insured) 7.183 2012 15,000,000 (d) 14,400,000
______________
Total 70,749,409
_____________________________________________________________________________________________________________________________
Louisiana (3.2%)
Calcasieu Parish Industrial Development Pollution Control
Refunding Revenue Bonds Gulf State Utilities Series 1992 6.75 2012 10,500,000 10,462,725
Energy & Power Authority Refunding Revenue Bonds
Rodemacher Unit #2 Series 1991 (FGIC Insured) 6.00 2013 28,000,000 28,176,120
Hodge Village Combined Utility System Revenue Bonds
Stone Container Series 1990 A.M.T. 9.00 2010 23,000,000 24,861,160
New Orleans Audobon Park Commission Aquarium
Revenue Bonds Series 1992A 7.00 1997 500,000 508,140
New Orleans Audobon Park Commission Aquarium
Revenue Bonds Series 1992A 8.00 2012 7,100,000 7,631,790
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.50 2015 1,000,000 950,810
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.70 2025 1,500,000 1,428,405
Public Facilities Authority Revenue Bonds
Windsor Multi-Family Housing Foundation Series 1996A 6.25 2026 9,570,000 9,256,774
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1984 8.25 2014 28,600,000 31,260,086
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1991 A.M.T. 7.50 2021 20,700,000 21,716,784
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light 2nd Series 1984 8.00 2014 29,155,000 32,026,184
St. James Parish Pollution Control Revenue Bonds
B.F. Goodrich Series 1981 14.50 2011 500,000 538,405
Southern Louisiana Port Commission
Dock & Wharf Facilities B.F. Goodrich 14.50 2011 3,335,000 3,582,757
Southern Louisiana Port Commission Terminal
Refunding Revenue Bonds Gatx Terminal Series 1993 7.00 2023 13,180,000 13,469,960
West Feliciana Parish Demand Pollution Control
Revenue Bonds Gulf State Utilities Series 1985B 9.00 2015 6,000,000 6,700,800
______________
Total 192,570,900
_____________________________________________________________________________________________________________________________
Maine (0.3%)
Bucksport Solid Waste Disposal Revenue Bonds
Champion International Series 1985 6.25 2010 14,185,000 14,118,898
Health & Higher Educational Facilities Authority
Revenue Bonds St. Mary's Hospital Series 1989 8.625 2022 3,500,000 3,940,790
______________
Total 18,059,688
_____________________________________________________________________________________________________________________________
Maryland (0.6%)
Frederick County Economic Refunding Revenue Bonds
Alumax Series 1992 7.25 2017 9,880,000 10,156,146
Harford County Industrial Development Revenue Bonds
Dorsey 8.00 2005 546,000 547,016
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.00 2022 7,000,000 7,884,940
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.25 2017 11,400,000 12,989,730
State Transportation Authority Facility Revenue Bonds
Series 1992 Capital Appreciation Zero Coupon
(FGIC Insured) 6.33 2010-11 9,700,000 (f) 4,202,426
State Transportation Authority Facility Revenue Bonds
Series 1992 Zero Coupon (FGIC Insured) 6.35 2012 5,000,000 (f) 2,002,850
______________
Total 37,783,108
______________________________________________________________________________________________________________________________
Massachusetts (2.3%)
Bay Transportation Authority Refunding Revenue Bonds
Series 1994A (MBIA Insured) 6.00 2012 8,000,000 8,179,280
Greater Lawrence Sanitary District North Andover
General Obligation Bonds 8.50 2005 3,670,000 3,794,193
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 2,000,000 1,790,600
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 6.00 2020 4,000,000 3,462,320
Health & Educational Facilities Authority Revenue Bonds
Beverly Hospital Inverse Floater (MBIA Insured) 7.42 2020 8,000,000 (d) 7,230,000
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series B 7.25 2013 6,455,000 6,830,746
Industrial Finance Agency 1st Mortgage Revenue Bonds
Berkshire Retirement Community Lennox Series 1988 9.00 2000 130,000 129,565
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison Series 1993 5.875 2008 4,250,000 4,068,100
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A 9.00 2015 18,885,000 20,789,363
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991B A.M.T. 9.25 2015 25,000,000 27,557,750
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1992B 6.75 2017 10,130,000 11,284,313
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1993A Inverse Floater
(AMBAC Insured) 6.97 2018 6,500,000 (d) 5,525,000
Water Resources Authority General
Refunding Revenue Bonds Series 1992B 5.50 2015 22,175,000 20,600,353
Water Resources Authority General Revenue Bonds
Series 1992A 6.50 2019 3,500,000 3,753,610
Water Resources Authority General Revenue Bonds
Series 1993B-95B (MBIA Insured) 5.00 2022-25 19,000,000 16,469,400
______________
Total 141,464,593
_____________________________________________________________________________________________________________________________
Michigan (4.0%)
Crawford County Economic Development Corporation
Environmental Improvement Revenue Bonds
Weyerhaeuser Series 1991A 7.125 2007 10,800,000 11,742,408
Detroit Unlimited Tax General Obligation Bonds
Series 1993 6.35 2014 6,120,000 5,966,572
Detroit Unlimited Tax General Obligation Bonds
Series 1995A 6.80 2015 1,375,000 1,437,370
Lincoln Consolidated School District Unlimited Tax
General Obligation Refunding Bonds (FGIC Insured) 5.85 2018 6,455,000 6,314,345
Midland County Economic Development Corporation
Pollution Control Limited Obligation Refunding Revenue Bonds
Midland Cogeneration Series 1990B A.M.T. 9.50 2009 35,200,000 38,039,584
Midland County Economic Development Corporation
Pollution Control Limited Obligation Refunding Revenue Bonds
Midland Cogeneration Series 1990C 8.50 2009 18,900,000 19,925,703
Monroe County Pollution Control
Revenue Bonds Detroit Edison A.M.T. 7.75 2019 40,250,000 (g) 43,436,593
Regents of the University of Michigan Hospital
Refunding Revenue Bonds Series 1986A 7.75 2012 5,000,000 5,198,650
State Hospital Finance Authority Hospital
Refunding Revenue Bonds Detroit Medical Center
Series 1993A 6.50 2018 10,000,000 10,143,900
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.625 2016 2,750,000 2,705,423
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.70 2026 3,000,000 2,933,730
State Hospital Finance Authority Hospital
Revenue Bonds Central Michigan Community Hospital 6.25 2016 2,095,000 1,977,261
State Hospital Finance Authority Hospital
Revenue Bonds McLaren Obligated Group Series 1991A 7.50 2021 7,500,000 8,559,525
State Job Development Authority Pollution Control
Revenue Bonds Chrysler 5.70 1999 4,350,000 4,447,092
Strategic Fund Limited Obligation Refunding Revenue Bonds
Detroit Edison Series 1995AA (MBIA Insured) 6.40 2025 12,000,000 12,436,920
Strategic Fund Limited Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 16,400,000 18,362,424
Strategic Fund Limited Obligation Refunding Revenue Bonds
Great Lakes Pulp & Fibre Series 1994 A.M.T. 10.25 2016 35,000,000 30,800,000
Troy City Downtown Development Authority Revenue Bonds
Oakland County Series 1995A 6.375 2018 1,000,000 1,008,400
Van Buren County Downtown Development Authority
Tax Increment Revenue Bonds Series 1994 8.40 2016 4,000,000 4,393,560
Wayne County Special Airport Facilities
Refunding Revenue Bonds Northwest Airlines Series 1995 6.75 2015 11,325,000 11,342,893
______________
Total 241,172,353
_____________________________________________________________________________________________________________________________
Minnesota (3.4%)
Appleton Correctional Facility Revenue Bonds Series 1990A 9.875 2020 15,000,000 (e) 9,450,000
Apple Valley 1st Mortgage Nursing Home Revenue Bonds
Apple Valley Health Care (FHA Insured) 10.50 2012 430,000 486,184
Becker Solid Waste Disposal Facility Revenue Bonds
Liberty Paper Series 1994B A.M.T. 9.00 2015 18,000,000 18,308,520
Bloomington Community Development Refunding Revenue Note
24th Avenue Motel 8.50 2005 1,546,838 1,562,307
Bloomington Health Care Facility Revenue Bonds
Friendship Village of Bloomington Series 1992 8.50 2002 4,255,000 4,550,722
Brainerd Economic Development Authority
Health Care Facility Revenue Bonds
Benedictine Health System St. Joseph Medical Center
Series 1990 8.375 2020 4,670,000 5,334,121
Duluth Economic Development Authority Health Care Facility Revenue Bonds
Benedictine Health System St. Mary's Medical Center Series 1990 8.375 2020 8,300,000 9,480,343
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.00 2000 170,000 170,218
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.25 2009 750,000 751,110
Fergus Falls Health Care Facilities Revenue Bonds
Series 1995 6.50 2025 1,530,000 1,486,089
International Falls Solid Waste Disposal
Revenue Bonds Boise Cascade
Series 1990 A.M.T. 7.75 2015 10,000,000 10,363,200
Maplewood Elder Care Facility Revenue Bonds
Care Institute Series 1994 7.75 2024 8,000,000 8,022,080
Maplewood Multifamily Housing Refunding Revenue Bonds
Carefree Cottages Series 1995 A.M.T 7.20 2032 5,000,000 4,862,350
Mille Lacs Capital Improvement Authority Infrastructure
Revenue Bonds Series 1992A 9.25 2012 4,710,000 5,248,212
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 5.075 2005 9,200,000 (d) 8,050,000
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 6.075 2013 18,000,000 (d) 14,872,500
St. Louis Park Health Care Park Nicollet
Medical Center Facility Revenue Bonds Series 1990A 9.25 2020 6,000,000 6,997,740
St. Louis Park Multi-family Housing Refunding Revenue Bonds
Park Boulevard Towers Series 1996A 7.00 2031 11,705,000 11,582,917
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds Lyngblomsten Care Center
Series 1993A 7.125 2017 2,840,000 2,855,279
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds Lyngblomsten Care Center
Series 1993A 9.60 2006 2,025,000 2,124,306
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Multi-family Rental Housing
Series 1993B 7.00 2024 2,845,000 2,736,492
St. Paul Port Authority Redevelopment Multi-family
Refunding Revenue Bonds Burlington Apartments
Series A (GNMA Insured) 5.75 2031 14,355,000 13,831,904
St. Paul Port Authority Redevelopment Multi-family
Subordinate Refunding Revenue Bonds
Burlington Apartments Series A 8.625 2031 3,770,000 3,702,027
Southern Minnesota Municipal Power Agency
Power Supply System Refunding Revenue Bonds
Series 1992 5.75 2018 32,210,000 31,052,050
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.72 2021 13,500,000 (f) 3,069,360
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.73 2022 17,500,000 (f) 3,743,425
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.74 2023 27,500,000 (f) 5,534,100
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.75 2024-27 87,410,000 (f) 15,238,107
Vadnais Heights Multi-Family Housing
Refunding Revenue Bonds Cottages of Vadnais Heights
Series 1995 A.M.T. 7.00 2031 2,000,000 1,931,600
______________
Total 207,397,263
_____________________________________________________________________________________________________________________________
Mississippi (0.7%)
Claiborne County Pollution Control Refunding Revenue Bonds
System Energy Resources Series 1995 7.30 2025 4,000,000 4,102,600
Claiborne County Pollution Control Revenue Bonds
Middle South Energy 9.50 2013 1,500,000 1,664,790
Claiborne County Pollution Control Revenue Bonds
Middle South Energy Series C 9.875 2014 15,375,000 17,196,323
Harrison County Waste Water Management District
Refunding Bonds Series 1986 5.00 2015 4,250,000 3,865,077
Jackson Industrial Development Revenue Bonds Dorsey 8.00 2005 475,000 477,926
Lowndes County Solid Waste Disposal Pollution Control
Revenue Bonds Weyerhaeuser Series 1989 A.M.T. 7.875 2005 12,250,000 13,389,862
Lowndes County Solid Waste Disposal Pollution Control
Refunding Revenue Bonds Weyerhaeuser Series 1989
Inverse Floater 8.39 2022 4,000,000 (d) 4,322,720
______________
Total 45,019,298
_____________________________________________________________________________________________________________________________
Missouri (0.6%)
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991B 7.00 2021 5,810,000 6,527,651
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991C 7.90 2021 2,700,000 2,926,611
State Environment & Improvement Energy Resources
Authority Pollution Control Revenue Bonds Chrysler 5.70 1999 9,250,000 9,323,075
Sikeston Electric System Refunding Revenue Bonds
Series 1992 (MBIA Insured) 5.80 2002 4,165,000 4,362,255
St. Louis Industrial Development Authority
Refunding Revenue Bonds Kiel Center Multipurposes Arena
Series 1992 A.M.T. 7.875 2024 15,400,000 16,394,224
______________
Total 39,533,816
_____________________________________________________________________________________________________________________________
Nebraska (--%)
Omaha Public Power District Electric System
Revenue Bonds Series 1986A 6.00 2015 1,370,000 1,381,220
_________________________________________________________________________________________________________________________________
Nevada (0.5%)
Clark County Collateralized Pollution Control
Revenue Bonds State Power A.M.T. 7.80 2009 11,850,000 12,468,689
Clark County Industrial Development Revenue Bonds
State Power Series 1990 A.M.T. 7.80 2020 5,000,000 5,282,900
Humboldt County Collateralized Pollution Control &
Water Facilities Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1989A 7.60 2019 2,750,000 3,015,183
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.00 2010 2,000,000 1,890,300
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.10 2014 2,750,000 2,578,647
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1993A 6.00 2015 7,250,000 6,820,147
______________
Total 32,055,866
_____________________________________________________________________________________________________________________________
New Hampshire (2.7%)
Business Financial Authority Pollution Control
Refunding Revenue Bonds United Illuminating
Series 1993A 5.875 2033 13,200,000 11,865,348
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991B 7.50 2021 51,485,000 53,498,578
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991C A.M.T. 7.65 2021 25,000,000 25,924,750
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1987A A.M.T. 9.375 2012 15,000,000 16,147,050
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1989A A.M.T. 8.00 2014 8,000,000 8,573,360
State Higher Education & Health Facility Authority Hospital
Revenue Bonds Hitchcock Clinic Series 1994
(MBIA Insured) 6.00 2024 13,000,000 12,740,000
State Higher Education & Health Facility Authority Hospital
Revenue Bonds Mary Hitchcock Memorial Hospital
Series 1993 Inverse Floater (FGIC Insured) 5.29 2013 17,000,000 (d) 16,395,990
State Turnpike System Refunding Revenue Bonds Series 1992 5.75 2020 20,615,000 19,514,984
______________
Total 164,660,060
_____________________________________________________________________________________________________________________________
New Jersey (0.3%)
Economic Development Authority 1st Mortgage
Gross Revenue Bonds Mega Care Union Hospital 8.625 2007 2,500,000 2,682,200
Health Care Facility Finance Authority Revenue Bonds
St. Peter Medical Center Series 1994F (MBIA Insured) 5.00 2016 10,000,000 8,894,700
Health Care Facility Finance Authority Revenue Bonds
Zurbrugg Memorial Hospital Series C 8.50 2012 3,500,000 3,638,215
______________
Total 15,215,115
_____________________________________________________________________________________________________________________________
New Mexico (1.8%)
Albuquerque Airport Revenue Bonds Series 1987B A.M.T. 8.75 2019 15,000,000 15,820,200
Albuquerque Health Care System Revenue Bonds
Lovelace Medical Fund 10.25 2011 55,000 55,638
Cibola County Correctional Facility
Certificate of Participation Series 1993 8.50 2015 17,045,000 17,946,169
Farmington Pollution Control Refunding Revenue Bonds
State Public Service San Juan Series 1994A 6.40 2023 30,650,000 29,292,205
Farmington Pollution Control Revenue Bonds
State Public Service 6.50 2009 5,935,000 5,814,757
Farmington Pollution Control Revenue Bonds
State Public Service San Juan Series 1978A 6.00 2008 9,105,000 8,669,235
Farmington Power Refunding Revenue Bonds
Generating Division 9.875 2013 5,000,000 6,655,450
Las Vegas Hospital Facility Refunding Revenue Bonds
Northeastern Regional Hospital Series 1987 9.625 2013 5,805,000 6,098,675
Lordsberg Pollution Control Refunding Revenue Bonds
Phelps Dodge 6.50 2013 20,000,000 20,604,000
______________
Total 110,956,329
_____________________________________________________________________________________________________________________________
New York (7.8%)
Battery Park City Authority Refunding Revenue Bonds
Series 1993A 5.50 2010 9,940,000 9,594,386
Dormitory Authority New York State University Education
Facility Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 10,000,000 11,255,300
Dormitory Authority New York State University Education
Facility Revenue Bonds Series 1993A 5.50 2013 24,530,000 22,550,184
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 5.00 2017 20,820,000 17,303,086
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 6.00 2016 39,465,000 37,520,954
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990D 7.00 2009 5,000,000 5,410,650
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1994A 5.75 2018 5,500,000 5,147,725
Dormitory Authority New York Court Facility Lease
Revenue Bonds Series 1993A 5.375 2016 11,000,000 9,682,750
Metropolitan Transportation Authority Commuter Facility
Revenue Bonds Series H 6.00 2014 6,150,000 5,875,587
Metropolitan Transportation Authority Transit Facility
Revenue Bonds Series G 6.00 2014 4,970,000 4,851,963
Metropolitan Transportation Transit Facilities
Service Contract Series 3 6.00 2019 6,395,000 6,044,170
New York City General Obligation Bonds Series 1992B 7.40 2000 30,000,000 31,999,500
New York City General Obligation Bonds Series 1994B 7.00 2016 16,500,000 17,274,345
New York City General Obligation Bonds Series 1996F-G 5.75 2019-20 7,825,000 7,023,834
New York City General Obligation Bonds Series 1996J 5.875 2019 20,060,000 18,292,915
New York City Industrial Development Agency
Special Facility Revenue BondsAmerican Airlines
Series 1990 A.M.T. 8.00 2020 16,130,000 17,045,861
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series 1994B
Inverse Floater (MBIA Insured) 6.44 2009 15,500,000 (d) 14,163,125
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A 6.25 2021 55,500,000 55,545,510
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series B 5.00 2017 6,255,000 5,506,089
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental &
Eastern Airlines A.M.T. 9.00 2006 2,645,000 2,905,982
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental &
Eastern Airlines Series 2 A.M.T. 9.00 2010 8,800,000 9,682,640
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental &
Eastern Airlines Series 2 A.M.T. 9.125 2015 17,500,000 19,157,250
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.125 2022 10,750,000 11,050,140
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.375 2024 23,000,000 24,226,590
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.50 2021 9,000,000 9,270,450
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison
Series 1990A A.M.T. 7.50 2025 30,975,000 33,241,131
State Housing Finance Agency Service Contract Obligation
Revenue Bonds Series 1995A 6.50 2025 12,475,000 12,562,699
State Housing Finance Agency State University Construction
Refunding Bonds Series 1986A 6.50 2013 3,500,000 3,771,460
State Local Government Assistance Corporation
Series 1991A 6.50 2020 11,000,000 11,241,670
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993D 5.25 2023 15,000,000 12,687,150
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993F 5.25 2019 5,790,000 4,960,930
State Urban Development Correctional Facility
Refunding Revenue Bonds Series A 5.50 2016 2,750,000 2,467,272
State Urban Development Correctional Facility
Revenue Bonds Series 1993A 5.25 2021 12,110,000 10,303,067
State Urban Development Correctional Facility
Revenue Bonds Series 6 5.375 2025 9,000,000 7,754,220
______________
Total 477,370,585
_____________________________________________________________________________________________________________________________
North Carolina (3.6%)
Eastern Municipal Power Agency Power Supply System
Refunding Revenue Bonds Series 1993B 6.25 2012 24,655,000 24,054,897
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 4.00 2018 8,675,000 6,784,110
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 5.00 2017 6,500,000 5,801,978
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1988A 6.00 2026 3,125,000 3,096,648
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 5.50 2011 37,800,000 34,781,292
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 6.50 2024 16,750,000 16,362,908
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 7.50 2010 29,160,000 33,141,496
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1991A 5.75 2019 55,000,000 49,672,700
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1994B 7.25 2007 5,000,000 5,426,900
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series B 6.125 2009 10,000,000 10,091,100
Eastern Municipal Power Agency Power System
Revenue Bonds Series 1993D 5.875 2013 2,300,000 2,159,700
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1988 7.00 2016 5,140,000 5,354,955
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater
(MBIA Insured) 6.82 2012 7,400,000 (d) 6,715,500
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater
(MBIA Insured) 7.02 2020 15,000,000 (d) 13,125,000
Offiss Incorporation Recreational Facilities
Gross Revenue Bonds
Smoky Mountain Golf Course
Series 1994 7.50 2019 5,695,000 5,696,766
______________
Total 222,265,950
_____________________________________________________________________________________________________________________________
North Dakota (0.3%)
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 6.875 2012 3,000,000 3,365,670
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 7.00 2022 4,250,000 4,735,775
General Obligation Bonds Real Estate Series 1986A 6.00 2013 10,000,000 10,053,100
______________
Total 18,154,545
_____________________________________________________________________________________________________________________________
Ohio (2.4%)
Air Quality Development Authority Pollution Control
Refunding Revenue Bonds Ohio Edison Series A 5.95 2029 13,300,000 11,993,275
Air Quality Development Authority Pollution Control
Revenue Bonds Ohio Edison Series 1989A 7.625 2023 6,750,000 7,106,130
Bellefontaine Hospital Facilities Refunding Revenue Bonds
Mary Rutan Health Association Series 1993 6.00 2013 5,330,000 4,933,395
Butler County Hospital Facilities
Refunding Revenue & Improvement Bonds
Fort Hamilton-Hughes Memorial Center Series 1991 7.50 2010 8,650,000 9,134,573
Carroll District Water & Sewer Unlimited Tax
General Obligation Bonds Water System Improvement 6.25 2010 9,185,000 8,532,222
Cleveland Parking Facilities Improvement
Revenue Bonds Series 1992 8.10 2022 15,000,000 16,421,250
Coshocton County Solid Waste Disposal
Refunding Revenue Bonds Stone Container Series 1992 7.875 2013 17,500,000 18,363,800
Erie County Hospital Improvement &
Refunding Revenue Bonds Firelands Community Hospital
Series 1992 6.75 2015 6,540,000 6,782,568
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds United Church Homes
Series 1993 6.30 2015 1,800,000 1,690,704
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds United Church Homes
Series 1993 6.375 2010 2,000,000 1,936,740
Montgomery County Health Facilities
Refunding Revenue Bonds Friendship Village of Dayton
Series 1990A 9.25 2016 9,000,000 9,401,130
Water Development Authority Collateralized Pollution Control
Refunding Revenue Bonds Cleveland Electric Series 1995 7.70 2025 13,000,000 13,094,640
Water Development Authority Collateralized Pollution Control
Revenue Bonds Cleveland Electric Series 1989 A.M.T. 8.00 2023 10,000,000 10,138,400
Water Development Authority Collateralized Pollution Control
Revenue Bonds Toledo Edison Series 1989 A.M.T. 8.00 2023 8,500,000 8,571,570
Water Development Authority Pollution Control Revenue Bonds
Ohio Edison A.M.T. 8.10 2023 10,000,000 10,582,800
Water Development Authority Pollution Control
Refunding Revenue Bonds Toledo Edison
Series 1994A A.M.T. 8.00 2023 10,000,000 10,056,000
___________
Total 148,739,197
_____________________________________________________________________________________________________________________________
Oklahoma (1.6%)
Grand River Dam Authority Refunding Revenue Bonds
Series 1987 5.00 2012 10,105,000 9,210,606
Hinton Economic Development Authority
Certificate of Participation Series 1994 8.75 2015 12,475,000 12,931,585
Hinton Economic Development Authority
Certificate of Participation Dominion Leasing
Series 1990A 9.75 2015 19,090,000 20,965,783
Jackson County Memorial Hospital Authority Hospital
Refunding Revenue Bonds
Jackson County Memorial Hospital Series 1994 7.30 2015 6,580,000 6,301,666
Midwest City Memorial Hospital Authority Hospital
Revenue Bonds Series 1992 7.375 2022 7,815,000 7,978,881
Oklahoma City Central Oklahoma Transportation &
Parking Authority Parking System
Refunding Revenue Bonds Series 1986 (AMBAC Insured) 6.90 2008 8,180,000 8,361,760
Tulsa Municipal Airport Trust Revenue Bonds
American Airlines Series 1995 6.25 2020 31,550,000 30,814,885
______________
Total 96,565,166
_____________________________________________________________________________________________________________________________
Oregon (0.6%)
State Health Housing Educational &
Cultural Facilities Authority Revenue Bonds
Oregon Baptist Retirement Homes-Weidler Retirement Center
Series 1995 8.00 2026 7,720,000 7,265,601
State Veterans Welfare Department Pre-Refunded Bonds
Series LXVII 12.40 2000 2,000,000 2,082,460
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994A 7.125 2021 19,200,000 19,585,344
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994B A.M.T. 7.40 2016 9,000,000 9,253,260
______________
Total 38,186,665
_____________________________________________________________________________________________________________________________
Pennsylvania (3.9%)
Allegheny County Industrial Development Authority
Environment Improvement Revenue Bonds
USX Corporation Series 1994A 6.70 2020 6,000,000 6,033,840
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995 7.625 2025 7,500,000 7,540,575
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995A 7.75 2025 21,150,000 21,461,751
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Toledo Edison Series 1995A 7.75 2020 14,000,000 14,210,280
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds Toledo Edison-Beaver Valley
Series 1995 7.625 2020 11,700,000 11,763,297
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds Ohio Edison 7.75 2024 34,650,000 36,445,909
Butler County Industrial Development Authority Health Care
Refunding Revenue Bonds Pittsburgh Lifetime Care
Community Sherwood Oaks Series 1993 5.75 2011-16 5,000,000 4,651,860
Convention Center Authority Refunding Revenue Bonds
Philadelphia Series 1994A 6.75 2019 5,300,000 5,587,949
Delaware County Authority 1st Mortgage Revenue Bonds
Whitehorse Village Continuing Care Series 1989 9.70 2009-19 11,000,000 11,998,030
Delaware County Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Philadelphia Electric Series A 7.375 2021 900,000 949,932
Fayette County Hospital Authority Hospital
Refunding Revenue Bonds Uniontown Hospital
Series 1987 7.625 2015 9,000,000 9,282,960
Montgomery County Higher Education and Health Authority
Retirement Community Revenue Bonds G.D.L. Farms
Series A 9.50 2020 3,000,000 3,504,660
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 8.875 2005 1,680,000 1,720,018
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 9.00 2015 5,750,000 5,887,540
Philadelphia Gas Works Revenue Bonds Series 13 7.70 2021 4,150,000 4,755,485
Philadelphia Hospital & Higher Education Facility
Authority Hospital Revenue Bonds
Albert Einstein Medical Center 7.625 2011 15,545,000 16,576,877
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.25 2013 2,500,000 2,423,250
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.30 2017 1,550,000 1,505,856
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.00 2018 14,000,000 15,400,140
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.50 2010 13,200,000 15,032,160
Philadelphia Water & Wastewater Revenue Bonds
Series 1993 (CGIC Insured) 5.50 2015 11,000,000 10,428,220
State Department of General Services Certificate of
Participation Series 1994A (AMBAC Insured) 5.00 2015 25,000,000 22,180,500
Wilkins Industrial Development Authority Revenue Bonds
Retirement Community Longwood at Oakmont Series 1991A 10.00 2021 8,495,000 10,178,745
______________
Total 239,519,834
_____________________________________________________________________________________________________________________________
Puerto Rico (0.7%)
Electric Power Agency Revenue Bonds Series N-O 6.00 2010 45,305,000 45,047,215
_____________________________________________________________________________________________________________________________
Rhode Island (--%)
Public Building Authority Revenue Bonds
Series 1994A (AMBAC Insured) 5.25 2007 3,485,000 3,415,126
_____________________________________________________________________________________________________________________________
South Carolina (0.9%)
Cherokee County Spring City Knitting Cluett Peabody 7.40 2009 5,200,000 5,575,752
Piedmont Municipal Power Agency Electric
Refunding Revenue Bonds Series 1986B 5.75 2024 7,550,000 6,926,748
Public Service Authority Electric System Expansion
Revenue Bonds Santee Cooper Series 1991D 6.625 2031 14,975,000 16,575,528
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1991B 6.00 2031 8,000,000 7,564,960
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1993A Inverse Floater (MBIA Insured) 7.10 2013 17,700,000 (d) 16,328,250
______________
Total 52,971,238
_____________________________________________________________________________________________________________________________
South Dakota (0.3%)
Heartland Consumers Power District Electric System
Refunding Revenue Bonds Series 1986 6.00 2010 10,205,000 10,627,589
State Lease Revenue Trust Certificates Series 1993
(CGIC Insured) 6.70 2017 7,260,000 7,929,517
______________
Total 18,557,106
_____________________________________________________________________________________________________________________________
Tennessee (0.4%)
Nashville & Davidson County Health & Education Facility
1st Mortgage Revenue Bonds
Blakeford at Green Hills CCRC 9.25 2024 12,230,000 13,127,315
Knox County Health Education & Housing Facility Hospital
Revenue Bonds Baptist Health System East Tennessee
Series 1989 8.60 2016 10,000,000 10,559,200
______________
Total 23,686,515
_____________________________________________________________________________________________________________________________
Texas (8.5%)
Alliance Airport Authority Special Facility Revenue Bonds
American Airlines Series 1990 A.M.T. 7.50 2029 37,400,000 39,448,398
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1985 10.75 2010-15 12,000,000 14,545,080
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1986 5.00 2013 20,000,000 17,953,600
Austin General Obligation Public Improvement Bonds
Series 1986 6.75 2006 2,000,000 2,015,240
Austin General Obligation Public Improvement Bonds
Series 1986 7.00 2007 5,450,000 5,494,581
Board of Regents of the University System General
Refunding Revenue Bonds Series 1986 6.50 2007 17,500,000 17,615,544
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1989A A.M.T. 8.25 2019 14,000,000 15,090,320
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1990A A.M.T. 8.125 2020 13,205,000 14,422,237
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1991A A.M.T. 7.875 2021 24,450,000 26,769,327
Brazos River Authority Collateralized
Refunding Revenue Bonds Houston Lighting & Power
(MBIA Insured) 5.80 2015 15,000,000 14,676,300
Brazos River Authority Collateralized
Refunding Revenue Bonds Houston Lighting & Power
Series 1989A 7.625 2019 26,300,000 28,541,023
Brownsville Utility System Priority Revenue Bonds
Series 1990 (AMBAC Insured) 6.50 2017 10,015,000 10,865,674
Clay Road Municipal Utility District Tax
Refunding Bonds Series 1996 6.25 2015 2,000,000 1,941,020
Colony Municipal Utility District #1 Denton County
Series 1980 9.25 2007 1,000,000 1,327,280
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds American Airlines Series 1990 A.M.T. 7.50 2025 26,200,000 27,617,944
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds Delta Air Lines Series 1991 A.M.T. 7.125 2026 13,500,000 13,888,395
Denison Hospital Authority Hospital Revenue Bonds
Texoma Medical Center Series 1994 7.10 2024 3,950,000 4,016,755
Fort Bend County Municipal Utility District #23
Unlimited Tax Bonds 6.625 2016 3,085,000 2,979,709
Harris County Health Facilities Development Hospital
Refunding Revenue Bonds Memorial Hospital Series 1985 6.00 2004 6,460,000 6,460,517
Harris County Health Facilities Hospital Revenue Bonds
Memorial Hospital Series 1992 7.125 2015 16,000,000 17,103,520
Harris County Industrial Development Marine Terminal
Refunding Revenue Bonds GATX Terminal Series 1992 6.95 2022 15,000,000 15,482,850
Houston Water & Sewer System Junior Lein
Refunding Revenue Bonds Series A (FGIC Insured) 5.25 2025 24,125,000 21,883,064
Karnes County Public Facility Lease Revenue Bonds 9.20 2015 15,990,000 16,197,870
Kings Manor Municipal Utility District
Waterworks & Sewer Systems Combination
Unlimited Tax & Revenue Bonds Series 1995 6.875 2018 2,470,000 2,473,829
Matagorda County Navigation District #1
Collateral Pollution Control Refunding Revenue Bonds
Houston Power & Light (MBIA Insured) 5.80 2015 15,000,000 14,674,650
Matagorda County Navigation District #1
Collateral Pollution Control Revenue Bonds
Central Power & Light Series 1986A
(AMBAC Insured) A.M.T. 7.50 2020 6,500,000 7,042,685
Matagorda County Navigation District #1
Collateral Pollution Control Revenue Bonds
Houston Power & Light Series 1986A A.M.T. 7.875 2016 8,000,000 8,273,680
Matagorda County Navigation District #1
Pollution Control Revenue Bonds
Central Power & Light Series 1986 A.M.T. 7.875 2016 18,000,000 18,597,960
Midland County Hospital District Revenue Bonds Series 1992 7.50 2016 3,025,000 3,182,421
Mills Road Municipal Utility District Harris County
Unlimited Tax Refunding Bonds Series 1993 6.50 2014 2,690,000 2,655,729
Municipal Power Agency Refunding Revenue Bonds
(MBIA Insured) 5.25 2009 8,000,000 7,820,160
Municipal Power Agency Revenue Bonds Series 1986 6.50 2014 4,000,000 4,027,800
Municipal Power Agency Revenue Bonds 5.50 2013 7,410,000 7,052,690
Municipal Power Agency Revenue Bonds (BIG Insured) 6.25 2010 13,940,000 14,608,284
North Austin Municipal Utility District #1 Austin Contract
Revenue Bonds Series 1985 9.90 2006-07 2,800,000 2,917,180
North Austin Municipal Utility District #1 Austin Contract
Revenue Bonds Series 1985 10.00 2008-09 2,625,000 2,735,985
North Central Texas Health Facility Development Hospital
Revenue Bonds University Medical Center 8.20 2019 4,245,000 4,422,950
North Central Texas Health Facility Development Hospital
Revenue Bonds University Medical Center Series 1987 7.75 2017 7,500,000 7,731,975
Plano Collin & Denton County General Obligation Bonds
Limited Tax Series 1986 6.00 2006 1,600,000 1,604,336
Rio Grande City Consolidated Independent School District
Public Facilities Lease Revenue Bonds Series 1995 6.75 2010 4,000,000 4,037,720
Sabine River Authority Collateralized Pollution Control
Revenue Bonds Texas Utilities Electric Series 1990A A.M.T. 8.125 2020 30,500,000 32,621,580
San Antonio Electric & Gas System
Refunding Revenue Bonds Series 1989B 5.00 2016 11,000,000 9,692,760
San Antonio Electric & Gas System
Revenue Bonds Series 1987 5.00 2014 8,680,000 7,672,599
West Side Calhoun County Navigation District
Solid Waste Disposal Revenue Bonds
Union Carbide Chemical & Plastics Series 1991 A.M.T. 8.20 2021 17,550,000 19,513,318
_____________
Total 519,696,539
_____________________________________________________________________________________________________________________________
Utah (1.9%)
Association Municipal Power System Hunter Series A
(AMBAC Insured) 5.50 2012 4,000,000 3,859,160
Carbon County Solid Waste Disposal
Refunding Revenue Bonds Sunnyside Cogeneration Associates
Series 1991 A.M.T. 9.25 2018 25,350,000 25,350,000
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.30 2011 1,285,000 1,351,807
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.35 2016 1,020,000 1,071,459
Hurricane Health Facilities Development Revenue Bonds
Mission Health Services Series 1990 10.50 2020 7,770,000 8,719,339
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series F (AMBAC Insured) 5.00 2013 5,000,000 4,460,100
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1993B Inverse Floater 7.14 2011 7,600,000 (d) 6,897,000
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C (MBIA Insured) 5.70 2017 46,000,000 44,481,540
Intermountain Power Agency Power Supply
Revenue Bonds Series 1987A (MBIA Insured) 5.00 2012 8,000,000 7,204,400
Intermountain Power Agency Power Supply
Revenue Bonds Series 1989A-B 6.00 2023 10,665,000 13,571,577
______________
Total 116,966,382
_____________________________________________________________________________________________________________________________
Virginia (0.3%)
Hopewell City Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Stone Container Series 1992 8.25 2010 3,170,000 3,390,220
Housing Development Authority Commonwealth
Mortgage Bonds Series 1992A 7.15 2033 15,000,000 15,767,400
_____________
Total 19,157,620
_____________________________________________________________________________________________________________________________
Washington (3.7%)
Health Care Facilities Authority Revenue Bonds
Seattle Highline Community Hospital
Series 1993 (Connie Lee Insured) 5.50 2014 7,500,000 7,039,950
King County Housing Authority Pooled Housing
Refunding Revenue Bonds Series 1995A 7.20 2026 4,000,000 3,994,480
Longview Industrial Development Corporation Solid Waste
Revenue Bonds Weyerhauser Series 1991 A.M.T. 7.45 2013 20,000,000 21,566,600
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Series A 6.50 2015 21,000,000 21,341,040
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Bonneville Power Administration
Series 1993A Inverse Floater (FSA Insured) 7.32 2011 25,000,000 (d) 24,187,500
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1989 6.00 2017 28,070,000 27,284,040
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1990A 6.00 2017 38,875,000 37,786,500
Public Power Supply System Nuclear Project #2
Revenue Bonds Series 1994A 5.375 2011 10,000,000 9,143,600
Public Power Supply System Nuclear Project #2
Revenue Linked Bonds (FGIC Insured) 5.55 2010 20,000,000 19,317,400
Public Power Supply System Nuclear Project #3
Revenue Bonds Series 1989B 5.50 2017-18 27,550,000 24,575,566
Seattle Municipal Light & Power
Refunding Revenue Bonds Series 1986 5.875 2010 6,000,000 6,043,740
Snohomish County Public Utility District #1
Generation System Revenue Bonds Series 1986A 5.00 2020 17,750,000 15,832,113
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.00 2017 3,700,000 3,702,849
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.125 2027 3,600,000 3,592,332
______________
Total 225,407,710
_____________________________________________________________________________________________________________________________
West Virginia (1.6%)
Kanawha County Pollution Control
Revenue Bonds Union Carbide Series 1984 7.35 2004 3,000,000 3,338,130
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1993 A.M.T. 7.75 2011 20,000,000 13,662,000
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1994 A.M.T. 8.25 2011 10,000,000 7,175,500
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995 A.M.T. 9.00 2011 5,000,000 3,887,500
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995B A.M.T. 9.25 2011 5,000,000 3,975,200
Mason County Pollution Control Refunding Revenue Bonds
Appalachian Power Series 1992J 6.60 2022 25,000,000 25,300,250
Pea Ridge Public Service District Sewer
Refunding Revenue Bonds Series 1990 9.25 2020 2,605,000 2,711,310
Putnam County Pollution Control Revenue Bonds
Appalachian Power Series C 6.60 2019 10,600,000 10,758,046
School Building Authority Capital Improvement
Revenue Bonds Series 1991A 6.00 2021 20,785,000 20,544,725
South Charleston Pollution Control Refunding
Revenue Bonds Union Carbide Series 1985 7.625 2005 3,000,000 3,416,280
______________
Total 94,768,941
_____________________________________________________________________________________________________________________________
Wisconsin (0.7%)
Health & Education Facilities Authority
Revenue Bonds St. Clare Hospital 7.00 2022 12,115,000 12,753,097
Health Facilities Authority Refunding Revenue Bonds
Villa Clement Series 1986 8.75 2012 4,500,000 4,508,505
Madison Industrial Development
Refunding Revenue Bonds Madison Gas & Electric
Series 1992B 6.70 2027 19,300,000 20,083,966
Superior Water Supply Facility Revenue Bonds
Superior Water Light & Power Series 1986 A.M.T. 7.875 2021 6,500,000 6,693,375
______________
Total 44,038,943
_____________________________________________________________________________________________________________________________
Wyoming (0.2%)
Green River & Rock Springs Sweetwater County
Joint Powers Water Board Revenue Bonds
Series 1988A 8.50 2007 2,500,000 2,669,500
Natrona County Hospital Revenue Bonds
Wyoming Medical Center 8.125 2010 6,500,000 6,954,870
State Farm Loan Board Capital Facilities
Revenue Bonds Series 1994 6.10 2024 5,000,000 4,959,800
______________
Total 14,584,170
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $5,586,045,216) $5,861,601,202
_____________________________________________________________________________________________________________________________
<PAGE>
Short-term securities (1.5%)
_____________________________________________________________________________________________________________________________
Issuer (c,i) Annualized Amount Value(a)
yield on date payable at
of purchase maturity
_____________________________________________________________________________________________________________________________
Municipal notes
Breckenridge Health Facility Revenue Bonds
(MBIA Insured)
11-15-13 3.75% $ 2,595,000 (h) $ 2,595,000
Emery County Utah Pollution Control Revenue Bonds
Pacificorp V.R.D B. Series 1994
11-01-24 3.70 2,000,000 (h) 2,000,000
Irvine Ranch California Water District
Adjustable Rate Bonds V.R.D.B.
08-02-16 3.30 4,500,000 (h) 4,500,000
Lincoln County Wyoming Pollution Control
Revenue Bonds Exxon Series 1984B
11-01-14 3.60 2,300,000 (h) 2,300,000
Los Angeles Country T.R.A.N.
07-01-96 4.50 7,000,000 7,003,609
Minneapolis Minnesota Special School District
(MBIA Insured)
02-01-15 3.75 1,285,000 (h) 1,285,000
Maricopa County Arizona Pollution Control
Revenue Bonds Southern California Edison
06-05-96 3.70 2,500,000 2,500,000
Monroe County Georgia Development Authority
Pollution Control Revenue Bonds V.R.D.B.
Series 1995
09-01-24 3.80 3,100,000 (h) 3,100,000
07-01-25 3.80 7,900,000 (h) 7,900,000
New Jersey State Authority Turnpike
V.R.D.B. Series D
01-01-18 3.25 3,800,000 (h) 3,800,000
New York City Municipal Water Finance
Authority Sewer System Revenue Bonds
V.R.D.B. (FGIC Insured)
06-15-23 3.60 300,000 (h) 300,000
New York City General Obligation Bonds
V.R.D.N. Series B
08-15-05 3.65 5,000,000 (h) 5,000,000
05-15-05 3.65 5,300,000 (h) 5,300,000
Regents of University of Michigan Hospital
Revenue Bonds Series 1995A
12-01-27 3.70 8,100,000 (h) 8,100,000
Rockport Indiana Pollution Control Revenue Bonds
AEP Generating V.R.D.B.
07-01-25 3.70 6,000,000 (h) 6,000,000
St. Charles Parish Louisiana Pollution Control
Revenue Bonds Shell Oil V.R.D.B. Series B 3.75 5,100,000 (h) 5,100,000
St. Louis Park Minnesota Health System
Revenue Bonds V.R.D.B.
07-01-13 3.75 25,000,000 (h) 25,000,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $91,784,407) $ 91,783,609
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $5,677,829,623)(j) $5,953,384,811
_____________________________________________________________________________________________________________________________
<PAGE>
Notes to investments in securities
____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Investments in bonds, by rating category as a percentage of total bonds, are as follows:
(Unaudited)
__________________________________________
Rating 05-31-96 11-30-95
_______________________________________________________________________________________________________
AAA 26% 29%
AA 6 6
A 20 20
BBB 29 27
BB and below 19 18
________________________________________________________________________________________________________
Total 100% 100%
_______________________________________________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions to identify
the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) Inverse floaters represent securities, that pay interest at a rate that
increases (decreases) in the same magnitude as, or in a multiple of, a
decline (increase) in market short-term rates. Interest rate disclosed
is the rate in effect on May 31, 1996. Inverse floaters in the aggregate
represent 5.3% of the Portfolio's net assets as of May 31, 1996.
(e) Presently non-income producing. For long-term debt securities items
identified are in default as to payment of interest and/or principal.
(f) For zero coupon bonds, the interest rate disclosed represents the
annualized effective yield on the date of acquisition.
(g) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 4 to the financial statements):
Type of security Notional amount
Purchase contracts
_________________________________________________________________
T- Bonds Futures June 1996 $74,500,000
_________________________________________________________________
Sale contracts
_________________________________________________________________
T- Bonds Futures June 1996 $10,000,000
_________________________________________________________________
(h) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on May 31, 1996.
(i) The following abbreviations are used in portfolio descriptions:
T.R.A.N. -- Tax & Revenue Anticipation Note
V.R.D.B. -- Variable Rate Demand Bond
V.R.D.N. -- Variable Rate Demand Note
A.M.T. -- Alternative Minimum Tax - As of May 31, 1996, the value of
securities subject to alternate minimum tax represented 19.7%
of net assets.
(j) At May 31, 1996, the cost of securities for federal income tax purposes was approximately
$5,671,160,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $373,705,000
Unrealized depreciation (91,480,000)
___________________________________________________________________________
Net unrealized appreciation $282,225,000
___________________________________________________________________________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
Strategist Tax-Free High Yield Fund
May 31, 1996
Assets
<S> <C>
(Unaudited)
Investment in Tax-Free High Yield Portfolio (Note 1) $105,202
Expense receivable from AEFC 299
Organizational costs (Note 1) 13,880
Total assets 119,381
Liabilities
Dividends payable to shareholders 46
Payable to advisor 13,906
Other accrued expenses 5,366
Total liabilities 19,318
Net assets applicable to outstanding capital stock $100,063
Represented by
Capital stock -- authorized 10,000,000,000
shares of $.01 par value; outstanding 22,472 shares $225
Additional paid-in-capital 100,003
Accumulated net realized loss (Note 1) (104)
Unrealized appreciation of investments (61)
Total representing net assets applicable to outstanding capital stock $100,063
Net asset value per share of outstanding capital stock $4.45
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Strategist Tax-Free High Yield Fund
Period ended May 31, 1996
<S> <C>
Investment Income (Unaudited)
Income:
Interest $321
Expenses (Note 2):
Distribution fee 12
Transfer agency fee 1
Administrative services fee 2
Custodian fees 396
Postage 666
Registration fees 2,888
Reports to shareholders 359
Audit fees 1,038
Administrative 15
Other 29
Total feeder expenses 5,406
Expenses allocated from Tax-Free High Yield Portfolio 22
Total expenses 5,428
Less expenses reimbursed by AEFC (5,381)
Total net expenses 47
Investment income -- net 274
Realized and unrealized gain (loss) -- net
Net realized loss on investments (104)
Net change in unrealized appreciation or
depreciation of investments (61)
Net loss on investments (165)
Net increase in net assets resulting from operations 109
Statement of changes in net assets
Strategist Tax-Free High Yield Fund
Operations and distributions May 31, 1996
Period ended
(Unaudited)
Investment income - net $274
Net realized gain on investments (104)
Net change in unrealized appreciation or
depreciation of investments (61)
Net increase (decrease) in net assets resulting from operations 109
Distributions to shareholders from:
Net investment income (274)
Total distributions (274)
Capital share transactions (Note 4)
Proceeds from sales 100,000
Reinvestment of distributions at net asset value 228
Increase in net assets from capital share transactions 100,228
Total increase (decrease) in net assets 100,063
Net assets at beginning of period 0
Net assets at end of period $100,063
</TABLE>
<PAGE>
Notes to financial statements
Strategist Tax-Free High Yield Fund
(Unaudited as to May 31, 1996)
________________________________________________________________________
1. Summary of significant accounting policies
The Fund is a series of Strategist Tax-Free Income Fund, Inc. and is
registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Fund seeks to
provide shareholders with a high yield generally exempt from federal
income taxes.
Investment in Tax-Free High Yield Portfolio
The Fund invests all of its assets in the Tax-Free High Yield Portfolio
(Portfolio), a series of Tax Free Income Trust, an open-end investment
company that has the same objectives as the Fund. The percentage of the
Portfolio owned by the Fund at May 31, 1996 was 0.001%. The Fund records
daily its share of the Portfolio's income, expenses and realized and
unrealized gains and losses. The financial statements of the Portfolio
are included elsewhere in this report and should be read in conjunction
with the Fund's financial statements.
The Fund records its investment in the Portfolio at value which is equal
to the Fund's proportionate ownership interest in the net assets of the
Portfolio. Valuation of securities held by the Portfolio is discussed in
Note 1 of the Portfolio's Notes to Financial Statements.
Organizational Costs
The Fund incurred organizational expenses in connection with the start-up
and initial registration of the Fund. These costs will be amortized over
60 months on a straight-line basis beginning with the commencement of
operations. If any or all of the shares held by American Express
Financial Corporation (AEFC) representing initial capital of the Fund
are redeemed during the amortization period, the redemption proceeds
will be reduced by the pro rata portion of the unamortized organizational
cost balance.
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 of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease
in net assets from operations during the period. Actual results could
differ from those estimates.
<PAGE>
Federal taxes
Since the Fund's policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to the shareholders, no provision
for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) allocated
from the Portfolio may differ for financial statement and tax purposes
primarily because of the deferral of losses on certain futures contracts,
the recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash sale"
transactions. The character of distributions made during the year from
net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, 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 (losses) were
recorded by the Fund.
Dividends to shareholders
Dividends declared daily and payable monthly, from net investment income,
are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along
with the last income dividend of the calendar year.
________________________________________________________________________
2. Expenses and sales charges
In addition to the expenses allocated from the Portfolio, the Fund accrues
its own expenses as follows:
The Fund entered into agreements with American Express Financial
Corporation (AEFC) for providing administrative services and
serving as transfer agent as follows: Under its Administrative
Services Agreement, the Fund pays AEFC for administration and
accounting services at a percentage of the Fund's average daily net
assets in reducing percentages from 0.04% to 0.02% annually. Under this
agreement, the Fund also pays taxes; audit and certain legal fees;
registration fees for shares; office expenses; consultant's fees;
compensation of board members, officers and employees; corporate
filing fees; organizational expenses; and any other expenses properly
payable by the Fund approved by the board.
Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder
account of $25.
<PAGE>
Under a Plan and Agreement of Distribution, the Fund pays a distribution
fee at an annual rate of 0.25% of the Fund's average daily net assets.
A redemption fee of 0.5% is applied and retained by the Fund, if shares are
redeemed or exchanged within 180 days of purchase.
AEFC will assume and pay any expenses (except taxes and brokerage commissions)
that exceed the most restrictive applicable state expense limitation.
However, the Advisor and the Distributor have agreed to waive certain fees
and to absorb certain other Fund expenses until Nov. 30, 1997. Under this
agreement, the Fund's total expenses will not exceed 0.95%.
________________________________________________________________________
3. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Period ended May 31, 1996*
________________________________________________________________________
Sold 22,421
Issued for reinvested 51
distributions
________________________________________________________________________
Net increase 22,472
________________________________________________________________________
*Inception date was May 13, 1996.
<PAGE>
<TABLE>
<CAPTION>
4. Financial highlights
The table below shows certain important financial
information for evaluating the Fund's results.
Strategist Tax-Free Income Fund, Inc.
Performance
Financial Highlights
Fiscal period ended May 31,
Per share income and capital changes*
1996**
<S> <C>
Net asset value, 4.46
beginning of period
Income from investment operations:
Net investment income 0.01
Net losses (0.01)
(both realized
and unrealized)
Total from investment 0.00
operations
Less distributions:
Dividends from net (0.01)
investment income
Net asset value, 4.46
end of period
Ratios/supplemental data
Net assets, end of 100
period (in thousands)
Ratio of expenses to .95%+
average daily net assets***
Ratio of net income 5.54%+
to average
daily net assets
Total return ++ 4.8%
Portfolio turnover rate 6%
(excluding short-term
securities) for High Yield
Portfolio
*For a share outstanding throughout the period. Rounded to the nearest cent.
** Period from May 13, 1996 to May 31, 1996 (Unaudited).
***The Advisor and Distributor voluntarily limited total operating expenses to 0.95% of average daily net assets.
Without this agreement, the ratio of expenses to average daily net assets would have been 110%.
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge
</TABLE>
