<PAGE>
PAGE 1
AMERICAN
EXPRESS
Financial
Direct
Strategist Tax-Free Income Fund, Inc.
1996 Annual Report
Strategist Tax-Free High Yield Fund
<PAGE>
PAGE 2
<TABLE><CAPTION>
Table of contents
<S> <C>
From the portfolio managers................................................1
Independent auditors' report...............................................3
Financial statements (Strategist Tax-Free High Yield Fund).................4
Notes to financial statements (Strategist Tax-Free High Yield Fund)........7
Federal income tax information (Strategist Tax-Free High Yield Fund)......11
Independent auditors' report (Tax-Free Income Trust)......................13
Financial Statements (Tax-Free High Yield Portfolio)......................14
Notes to financial statements (Tax-Free High Yield Portfolio).............17
Investments in securities (Tax-Free High Yield Portfolio).................21
</TABLE>
<PAGE>
PAGE 3
From the portfolio manager
(Photo of) Kurt Larson
The first six-and-a-half months of operation for Strategist Tax-
Free High Yield Fund provided a solid return for investors through
a sometimes volatile bond market. For the period, the Fund
achieved a total return of 5.50%, with a good portion of that
return attributable to dividend income that is generally exempt
from taxation at the federal level.
Uncertainties abound
During the spring and summer, the bond markets were held back by
persistent concerns about rising inflation. Typically, the threat
of higher inflation can lead to lower bond prices, since interest
rates and inflation rates tend to move in the same direction.
Recognizing the market's concern, I positioned the Portfolio to
limit the impact of an uptick in interest rates. As a result, the
Fund managed to survive this volatile period with a positive
return.
Stronger finish
By September, it seemed that most of the news on the inflation
front was positive. Fears of an overheated economy, which could
trigger higher inflation, fizzled. Like the bond market, the Fund
responded accordingly. In fact, the bulk of our return for the
fiscal year end occurred between September and November.
It should be noted that our own outlook for the economy continues
to be positive for bonds. Nevertheless, it has been prudent for us
to position the Portfolio to deal with the realities of the bond
market, not just our own forecasts. That's why I have taken a
farily cautious approach, steering the Portfolio in a way that will
reduce the negative effects of a sudden surge in interest rates.
Fortunately, no significant interest rate hikes occurred in the
last three months of the fiscal year, which greatly benefited
shareholders.
Maintaining an effective mix of bonds
The Portfolio has the ability to own a large percentage of higher-
yielding tax-exempt bonds. The focus is on providing a high level
of income to shareholders which is generally exempt from federal
income tax. While the term "high-yield" may imply low quality, my
practice, in fact, has been to invest in a mix of bonds with
various ratings for quality. Throughout the period, I invested
close to 80% of the Portfolio's assets inbonds that are considered
to be of either high or medium investment quality.
I expect to continue that approach in the upcoming months. In
addition, I think it is fair to say that bond yields will most
likely not drop significantly if the economy remains fairly stable.
Therefore, I will maintain a cautious positioning of the Portfolio <PAGE>
PAGE 4
to help avoid wild swings in value during periods of market
volatility. As always, my focus will be on providing shareholders
with the highest level of income available that is exempt from
taxation at the federal level.
Kurt Larson
<PAGE>
<PAGE>
Independent auditors' report
The board and shareholders
Strategist Tax-Free Income Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Strategist Tax-Free High Yield Fund (series of Strategist Tax-Free Income Fund,
Inc.) as of November 30, 1996, and the related statement of operations,
statement of changes in net assets and the financial highlights for the period
from May 13, 1996 (commencement of operations) to November 30, 1996. These
financial statements and financial highlights are the responsibility of fund
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Strategist Tax-Free High Yield
Fund at November 30, 1996, and the results of its operations, the changes in its
net assets and the financial highlights for the period from May 13, 1996
(commencement of operations) to November 30, 1996, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 3, 1997
<PAGE>
Statement of assets and liabilities
Strategist Tax-Free High Yield Fund, Inc.
Nov. 30, 1996
Assets
Investment in Tax-Free High Yield Portfolio (Note 1) $ 580,707
Expense reimbursement receivable from AEFC 931
Organizational costs (Note 1) 17,955
----------
Total assets 599,593
----------
Liabilities
Dividends payable to shareholders 823
Payable to investment manager for organizational costs 18,239
Other accrued expenses 45,819
----------
Total liabilities 64,881
==========
Net assets applicable to outstanding capital stock $ 534,712
==========
Represented by
Capital stock -- authorized 3,000,000,000
shares of $.01 par value; outstanding 117,305 shares $ 1,173
Additional paid-in capital 516,100
Undistributed net investment income 553
Accumulated net realized loss (Notes 1 and 4) (1,262)
Unrealized appreciation of investments 18,148
==========
Total -- representing net assets applicable to outstanding
capital stock $ 534,712
==========
Net asset value per share of outstanding capital stock $ 4.56
----------
Statement of operations
Strategist Tax-Free High Yield Fund, Inc.
For the period from May 13, 1996
(commencement of operations) to Nov. 30, 1996
Investment Income
Income:
Interest $ 15,737
----------
Expenses (Note 2):
Distribution fee 546
Transfer agency fee 32
Administrative services fee 87
Custodian fee 3,380
Postage 7,402
Registration fees 27,726
Reports to shareholders 3,986
Audit fees 8,334
Administrative 170
Other 325
----------
Total feeder expenses 51,988
Expenses allocated from Tax-Free High Yield Portfolio 1,034
----------
Total expenses 53,022
Less expenses reimbursed by AEFC (50,932)
----------
Total net expenses 2,090
----------
Investment income -- net 13,647
----------
Realized and unrealized gain (loss) -- net
Net realized loss on security transactions (673)
Net realized loss on financial futures contracts (591)
Net realized gain on closed option contracts written 4
----------
Net realized loss on investments (1,260)
Net change in unrealized appreciation or depreciation 18,148
----------
Net gain on investments 16,888
==========
Net increase in net assets resulting from operations $ 30,535
==========
Statement of changes in net assets
Strategist Tax-Free High Yield Fund, Inc.
For the period from May 13, 1996
(commencement of operations) to Nov. 30, 1996
Operations and distributions
Investment income -- net $ 13,647
Net realized loss on investments (1,260)
Net change in unrealized appreciation or depreciation 18,148
---------
Net increase in net assets resulting from operations 30,535
---------
Distributions to shareholders from:
Net investment income (13,647)
----------
Capital share transactions (Note 3)
Proceeds from sales 405,000
Reinvestment of distributions at net asset value 12,824
----------
Increase in net assets from capital share transactions 417,824
Net assets at beginning of period (Note 1) 100,000
----------
Net assets at end of period (including undistributed
net investment income of $553) $ 534,712
==========
Notes to financial statements
Strategist Tax-Free Income Fund, Inc.
- ------------------------------------------------------------------
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.
On April 15, 1996, American Express Financial Corporation (AEFC) invested
$100,000 in the Fund which represented 22,422 shares. Operations did not
formally commence until May 13, 1996.
Investment in Tax-Free High Yield Portfolio
The Fund invests all of its net investable assets in the Tax-Free High Yield
Portfolio (the Portfolio), a series of Tax-Free Income Trust, an open-end
investment company that has the same objectives as the Fund. The Portfolio
invests primarily 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 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. The
percentage of the Portfolio owned by the Fund at Nov. 30, 1996 was 0.01%.
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 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.
<PAGE>
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.
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 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.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by $553, and
accumulated net realized loss has been increased by $2, resulting in a net
reclassification adjustment to additional paid-in capital of $551.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly, 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.
Other
As of Nov. 30, 1996, AEFC owned 116,157 shares of the Fund.
<PAGE>
__________________________________________________________________
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 AEFC for providing administrative services
and serving as transfer agent. 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; 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.
Under a Plan and Agreement of Distribution, the Fund pays American Express
Service Corporation (the Distributor) a distribution fee at an annual rate of
0.25% of the Fund's average daily net assets for distribution related services.
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 and the Distributor have agreed to waive certain fees and to absorb other
of the Fund's expenses until Nov. 30, 1997. Under this agreement, the Fund's
total expenses will not exceed 0.95% of the Fund's average daily net assets.
__________________________________________________________________
3. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Period ended Nov. 30, 1996*
- ------------------------------------------------------
Sold 92,032
Issued for reinvested 2,851
distributions
- ------------------------------------------------------
Net increase 94,883
- ------------------------------------------------------
*Inception date was May 13, 1996.
__________________________________________________________________
4. Capital loss carryover
For Federal income tax purposes, Tax-Free High Yield Fund had a capital loss
carryover at Nov. 30, 1996 of $1,194 that, if not offset by subsequent capital
gains, will expire in 2004. It is unlikely the board will authorize a
distribution of any net realized gain for a fund until its capital loss
carryover has been offset or expires.
Independent auditors' report
The board of trustees and unitholders Tax Free Income Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of Tax-Free High Yield Portfolio (a
series of Tax Free Income Trust) as of November 30, 1996, and the related
statements of operations and changes in net assets for the period from May 13,
1996 (commencement of operations) to November 30, 1996. These financial
statements are the responsibility of Portfolio management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Investment securities
held in custody are confirmed to us by the custodian. As to securities purchased
and sold but not received or delivered, we request confirmations from brokers,
and where replies are not received, we carry out other appropriate auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Tax-Free High Yield Portfolio
at November 30, 1996, and the results of its operations, changes in its net
assets for the period stated in the first paragraph above, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 3, 1997
<PAGE>
Statement of assets and liabilities
Tax-Free High Yield Portfolio
Nov. 30, 1996
Assets
Investments in securities, at value (Note 1)
(identified cost $5,629,402,073) $6,072,595,429
Accrued interest receivable 127,069,856
Receivable for investment securities sold 1,150,000
- -------------------------------------------------------------------------------
Total assets 6,200,815,285
- -------------------------------------------------------------------------------
Liabilities
Disbursements in excess of cash on demand deposit 3,277,129
Payable for investment securities purchased 33,466,051
Accrued investment management services fee 147,653
Other accrued expenses 132,297
- -------------------------------------------------------------------------------
Total liabilities 37,023,130
- -------------------------------------------------------------------------------
Net assets $6,163,792,155
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statement of operations
Tax-Free High Yield Portfolio
For the period from May 13, 1996
(commencement of operations) to Nov. 30, 1996
Investment income
Income:
Interest $229,180,401
- -------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 14,890,546
Compensation of board members 22,691
Compensation of officers 108
Custodian fees 127,156
Audit fees 35,000
Administrative 5,146
Other 28,116
- -------------------------------------------------------------------------------
Total expenses 15,108,763
Earnings credits on cash balances (Note 2) (29,538)
- -------------------------------------------------------------------------------
Total net expenses 15,079,225
- -------------------------------------------------------------------------------
Investment income -- net 214,101,176
- -------------------------------------------------------------------------------
Realized and unrealized gain (loss) -- net
Net realized gain on security transactions (Note 3) 11,420,640
Net realized loss on financial futures contracts (11,214,829)
Net realized gain on option contracts written (Note5) 1,795,303
- -------------------------------------------------------------------------------
Net realized gain on investments 2,001,114
Net change in unrealized appreciation or depreciation 142,421,758
- -------------------------------------------------------------------------------
Net gain on investments 144,422,872
- -------------------------------------------------------------------------------
Net increase in net assets resulting from operations $358,524,048
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statement of changes in net assets
Tax-Free High Yield Portfolio
For the period from May 13, 1996
(commencement of operations) to Nov. 30, 1996
Operations and distributions
Investment income -- net $ 214,101,176
Net realized gain on investments 2,001,114
Net change in unrealized appreciation or depreciation 142,421,758
- -------------------------------------------------------------------------------
Net increase in net assets resulting from operations 358,524,048
Net contributions 5,805,168,107
- -------------------------------------------------------------------------------
Total increase in net assets 6,163,692,155
Net assets at beginning of period (Note 1) 100,000
- -------------------------------------------------------------------------------
Net assets at end of period $6,163,792,155
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Notes to financial statements
Tax-Free High Yield Portfolio
- ----------------------------------------------------------------------
1. Summary of significant accounting policies
The Tax-Free High Yield Portfolio (the Portfolio) is a series of Tax Free Income
Trust (the Trust) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. Tax-Free High
Yield Portfolio invests primarily 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. On
April 15, 1996, AEFC contributed $100,000 to the Portfolio. Operations did not
formally commence until May 13, 1996, at which 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 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 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. The Portfolio may write over-the-counter options where
the completion of the obligation is dependent upon the credit standing of the
other party.
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 options on debt securities or futures are exercised, the
Portfolio will realize a gain or loss. When other options are 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 interest rate 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.
Securities purchased on a when-issued basis
Delivery and payment for securities that have been purchased by the Portfolio on
a forward-commitment or when-issued basis can take place one month or more after
the transaction date. During this period, such securities are subject to market
fluctuations, and they may affect the Portfolio's gross assets the same as owned
securities. The Portfolio designates cash or liquid high-grade short-term debt
securities at least equal to the amount of its commitment. As of Nov. 30, 1996,
the Portfolio had entered into outstanding when-issued or forward commitments of
$2,274,953.
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; 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 Nov. 30, 1996, the Portfolio's custodian
fees were reduced by $29,538 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 $247,148,742 and $286,072,683, respectively, for the
period from May 13, 1996 to Nov. 30, 1996. For the same period, the portfolio
turnover rate was 4%. Realized gains and losses are determined on an identified
cost basis.
- -----------------------------------------------------------------------
4. Interest rate futures contracts
At Nov. 30, 1996, investments in securities included securities valued at
$11,868,500 that were pledged as collateral to cover initial margin deposits on
3,500 sale contracts. The arket value of the open sale contracts at Nov. 30,
1996 was $406,765,625 with a net unrealized loss of $30,217,435. See Summary of
significant accounting policies.
- -----------------------------------------------------------------------
5. Options contracts written
The number of contracts and premium amounts associated with option contracts
written is as follows:
Period ended Nov. 30, 1996
--------------------------
Calls
--------------------------
Contracts Premium
- --------------------------------------------------------------
Opened 1,800 $1,795,303
Expired (1,800) (1,795,303)
- --------------------------------------------------------------
Balance Nov. 30, 1996 -- $ --
- --------------------------------------------------------------
<PAGE>
<TABLE>
Investments in securities
Tax-Free High Yield Portfolio (Percentages represent value of
Nov. 30, 1996 investments compared to net assets)
- ---------------------------------------------------------------------------------------------------------------
Municipal bonds (97.6%)
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Name of issuer and title Coupon Maturity Principal Value(a)
of issue (b,c,j) rate year amount
- ---------------------------------------------------------------------------------------------------------------
Alabama (0.8%)
Baldwin County Eastern Shore Health Care Authority
<S> <C> <C> <C> <C>
Hospital Revenue Bonds Thomas Hospital Series 1991 8.50 % 2016 $ 4,765,000 $ 5,600,209
Camden Industrial Development Board Solid Waste Disposal
Revenue Bonds MacMillan Bloedel Series 1991A A.M.T. 7.75 2019 8,500,000 9,137,330
Courtland Industrial Development Board Pollution Control
Refunding Bonds Champion International 6.15 2019 17,000,000 17,185,980
Marengo County Limited Obligation Capital Outlay
Warrants Series 1988 8.50 2018 3,000,000 3,306,630
Mobile Industrial Development Board Solid Waste
Refunding Revenue Bonds Mobile Energy Services 6.95 2020 11,250,000 12,009,825
Mobile Medical Clinic Board Psychiatric Revenue Bonds
Charter Medical 11.50 2008 2,740,000 2,765,647
--------------
Total 50,005,621
- ---------------------------------------------------------------------------------------------------------------
Alaska (0.5%)
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.05 2004 7,000,000 (f) 4,805,640
North Slope Borough General Obligation Bonds Series 1984B
Zero Coupon (CGIC Insured) 7.15 2005 7,000,000 (f) 4,535,020
State Finance Housing Authority Series 1995A (MBIA Insured) 5.875 2030 18,500,000 18,459,300
--------------
Total 27,799,960
- ---------------------------------------------------------------------------------------------------------------
Arizona (0.5%)
Chandler Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 2,830,000 2,929,446
Maricopa County Hospital System Revenue Bonds
Samaritan Health Services Series 1981 12.00 2008 4,590,000 5,014,543
Maricopa County Industrial Development Authority
Multi-family Housing Revenue Bonds Series B 7.375 2026 2,335,000 2,354,311
Maricopa County Pollution Control Refunding Revenue Bonds
Palo Verde Public Service 6.375 2023 3,500,000 3,530,975
Phoenix Civic Improvement Waste Water System
Lease Refunding Revenue Bonds 5.00 2018 5,000,000 4,620,750
Phoenix Industrial Development Authority
Refunding Revenue Bonds Christian Care Apartments 6.50 2026 9,525,000 9,616,916
Scottsdale Industrial Development Authority
Beverly Enterprises Series 1994 7.625 2008 3,110,000 3,219,285
--------------
Total 31,286,226
- ---------------------------------------------------------------------------------------------------------------
Arkansas (0.1%)
Pope County Solid Waste Disposal Revenue Bonds
Arkansas Power & Light Series 1991 A.M.T. 8.00 2021 3,250,000 3,556,930
See accompanying notes to investments in securities.
<PAGE>
- ---------------------------------------------------------------------------------------------------------------
California (8.3%)
ABAG Financial Authority for Nonprofit Corporations
International Schools Certificate of Participation
Series 1996 7.375 2026 8,000,000 7,698,160
Burbank Redevelopment Agency Tax Allocation Bonds
Golden State Series 1993A 6.00 2013-23 9,500,000 9,676,745
Community Development Authority Health Facilities
Unihealth America Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 7.52 2011 22,400,000 (d) 23,940,000
East Bay Municipal Utility District Water Revenue Bonds
Series 1993 Inverse Floater (MBIA Insured) 6.47 2008 15,500,000 (d) 15,461,250
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 3,762,300
Foothill Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 5.00 2035 41,070,000 35,875,877
Foothill Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 6.00 2034 46,225,000 46,360,902
Fresno Health Facility Refunding Revenue Bonds
Holy Cross Health System (MBIA Insured) 5.625 2013 3,000,000 3,017,880
Irwindale Redevelopment Agency Subordinate Lein
Tax Allocation Bonds 7.05 2026 5,750,000 6,108,340
Los Angeles County Certificate of Participation 6.71 2015 20,000,000 20,667,600
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
Delta Airlines 6.35 2025 13,000,000 13,352,040
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
United Airlines Series 1984 8.80 2021 11,650,000 13,229,158
Los Angeles Water & Power Electric Plant
Refunding Revenue Bonds Series 1992 6.375 2020 10,000,000 10,604,400
Modesto Santa Clara Redding Public Power Bonds
San Juan Series C (AMBAC Insured) 5.50 2021 4,500,000 4,428,270
Northern California Power Agency Geothermal #3
Revenue Bonds 5.00 2009 49,635,000 48,589,687
Novato Community Facility District #1 Vintage Oaks
Public Improvement Special Tax Refunding Bonds 7.25 2021 5,000,000 5,272,850
Oceanside Certificate of Participation Refunding Bonds
Oceanside Civic Center (MBIA Insured) 5.25 2019 7,000,000 6,827,380
Orange County Special Tax Community Facilities Bonds
Aliso Veijo District 88-1 Series 1992A 7.35 2018 6,000,000 7,024,920
Pleasanton Joint Powers Financing Authority Reassessment
Revenue Bonds Series 1993A 6.15 2012 4,720,000 4,900,587
Regional Airports Improvement Facilities Sublease
Revenue Bonds Continental Airlines Los Angeles
International Airport Series 1988 A.M.T. 9.00 2008-17 12,400,000 13,150,941
Sacramento Cogeneration Authority Revenue Bonds
Proctor & Gamble Series 1995 6.50 2014-21 11,800,000 12,343,578
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series R 6.00 2015-17 20,385,000 20,395,069
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.70 2005 15,800,000 (d) 16,609,750
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured) 6.89 2006 16,400,000 (d) 17,240,500
<PAGE>
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (MBIA Insured) 7.35 2015 15,000,000 (d) 14,868,750
Sacramento Power Authority Cogeneration Revenue Bonds
Campbell Soup Series 1995 6.00 2022 25,000,000 25,227,000
San Joaquin Hills Orange County Transportation
Corridor Agency Senior Lien Toll Road Revenue Bonds 6.75 2032 14,785,000 15,690,433
San Jose Redevelopment Agency Merged Area Tax
Allocation Bonds Series 1993 Inverse Floater
(MBIA Insured) 6.63 2014 33,600,000 (d) 32,298,000
San Marcos Public Facility Authority
Refunding Revenue Bonds
Civic Center Public Improvement Series A 6.20 2022 12,300,000 12,415,497
Sierra Unified School District Fresno County
Certificate of Participation Capital Financing
Refunding Bonds Series 1993 6.125 2018 6,470,000 6,503,255
Southern California Public Power Authority
Power Revenue Bonds Palo Verde
Series 1993 Inverse Floater (FGIC Insured) 6.80 2017 20,000,000 (d) 18,700,000
South Tahoe Joint Power Financing Authority
Refunding Revenue Bonds South Tahoe Area #1
Series 1995B 6.00 2028 9,900,000 9,885,051
Ukiah Unified School District Mendocino County
Certificate of Participation Series 1993 6.00 2010 5,000,000 5,092,450
University of California Refunding Revenue Bonds
Multiple Purpose Project (AMBAC Insured) 5.25 2016 6,000,000 5,827,140
--------------
Total 513,045,760
- ---------------------------------------------------------------------------------------------------------------
Colorado (6.5%)
Arapahoe County Capital Improvement Trust Fund
E-470 Highway Revenue Bonds 7.00 2026 22,000,000 24,382,820
Arapahoe County Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 4,000,000 4,489,040
Aurora Centretech Metropolitan District
Arapahoe County Series 1987B 6.00 2023 5,732,785 4,307,156
Bowles Metropolitan District General Obligation Bonds
Series 1995 7.75 2015 16,000,000 15,905,760
Briargate Public Building Authority
Landowner Assessment Lien Bonds Series 1985A 10.25 2000 5,000,000 (e) 3,750,000
Castle Rock Ranch Public Facility Improvement
Revenue Bonds Series 1996 6.25 2017 10,000,000 10,719,600
Colorado Health Facility Authority Hospital Improvement
Refunding Revenue Bonds
Parkview Episcopal Medical Center Series 1995 6.125 2025 7,000,000 6,947,710
Colorado Health Facility Authority Revenue Bonds
Escrowed to Maturity Liberty Heights Zero Coupon 7.50 2022 81,465,000 (f) 14,862,475
Colorado Springs Hospital Revenue Bonds
Memorial Hospital Series 1990 7.875 2010 5,000,000 5,616,500
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 26,918,217
Colorado Springs Utilities System Refunding Revenue Bonds
Series 1991C 6.75 2021 30,000,000 33,359,271
Colorado Springs Utilities System
Pre-Refunded Revenue Bonds Series 1991C 6.50 2015 1,505,000 1,676,570
Denver City & County Airport Systems Revenue Bonds
Series 1991A A.M.T. 8.75 2023 10,000,000 (h) 11,868,500
<PAGE>
Denver City & County Airport Systems Revenue Bonds
Series 1991D A.M.T. 7.75 2021 8,650,000 9,644,923
Denver City & County Airport Systems Revenue Bonds
Series 1992A 7.25 2025 20,975,000 24,282,757
Denver City & County Airport Systems Revenue Bonds
Series 1992B A.M.T. 7.25 2023 20,500,000 22,184,690
Denver City & County Airport Systems Revenue Bonds
Series 1994A 7.50 2012 5,000,000 5,882,000
Denver City & County Airport Systems Revenue Bonds
Series 1994A A.M.T. 7.50 2023 19,340,000 21,552,303
Denver City & County Airport Systems Revenue Bonds
Series 1995A (MBIA Insured) 5.70 2025 20,000,000 20,391,400
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1991 8.00 2006 1,385,000 1,419,625
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1995B 11.00 2006 730,000 708,319
Denver Special Facility Airport Revenue Bonds
United Air Lines Series A A.M.T. 6.875 2032 25,400,000 26,609,294
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 20,215,800
Denver Urban Renewal Authority Tax Increment
Revenue Bonds South Broadway Montgomery Ward
Urban Renewal Series 1992 8.50 2016 14,280,000 15,184,924
Denver West Metropolitan District
General Obligation Bonds Series 1996 6.50 2016 2,560,000 2,620,595
Denver West Metropolitan District General Obligation
Refunding Improvement Bonds Series 1995 7.00 2014 4,230,000 4,525,043
Hotchkiss Industrial Development Revenue Bonds
Dillion Real Estate-Kroger 8.00 2009 1,500,000 1,683,390
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.25 2011 2,910,000 3,083,203
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured) 7.30 2018 2,635,000 2,766,328
Lowry Economic Redevelopment Authority
Revenue Bonds Series 1996 7.50 2010 19,000,000 18,918,680
Northern Colorado Water District Revenue Bonds Series D 6.00 2015 4,000,000 4,013,160
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 7.50 1998 2,500,000 2,592,075
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.25 2013 2,580,000 2,819,811
Superior Metropolitan District #2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B 8.50 2013 12,000,000 13,180,800
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 3,927,910
--------------
Total 397,596,722
- ---------------------------------------------------------------------------------------------------------------
District of Columbia (0.6%)
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.00 2010 27,875,000 29,105,681
General Obligation Refunding Bonds Series 1994A
(MBIA Insured) 6.10 2011 7,580,000 7,941,718
<PAGE>
Housing Finance Agency Multiple Family Mortgage
Revenue Bonds Temple Courts Section 8
Series 1985 (FHA Insured) 12.00 2022 1,320,000 1,583,604
--------------
Total 38,631,003
- ---------------------------------------------------------------------------------------------------------------
Florida (3.9%)
Broward County Airport System Revenue Bonds
Series 1989B A.M.T. 7.625 2013 15,000,000 16,179,450
Charlotte County Development Authority 1st Mortgage
Refunding Revenue Bonds
Royal Palm Retirement Centre Series 1991 9.50 2014 4,145,000 4,411,606
Crossings at Fleming Island Community Development District
Special Assessment Bonds Series 1995 8.25 2016 10,375,000 11,053,733
Crossings at Fleming Island Community Development
District Utility Revenue Bonds Series 1994 7.375 2019 13,800,000 13,820,010
Department of Transportation Turnpike Revenue Bonds
Series 1991A (AMBAC Insured) 6.25 2020 20,000,000 20,937,800
Gateway Centre Development District Pinellas County
Special Assessment Revenue Bonds Series 1988 9.125 2009 1,640,000 1,742,516
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A 7.00 2014 24,000,000 26,171,182
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A (MBIA Insured) 6.50 2016 24,760,000 27,170,881
Jacksonville Electric Authority St. John's River Power
Park System Revenue Bonds Series 1989 6.00 2015 10,300,000 10,459,753
Jacksonville Health Facilities Authority Hospital
Refunding Revenue Bonds Riverside Hospital
Series 1989 7.625 2013 1,600,000 1,692,224
Lakewood Ranch Community Development District #1
Special Assessment Bonds Series 1994 8.25 2014 7,115,000 7,447,769
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988A A.M.T. 9.625 2018 5,545,000 6,138,870
Lee County Industrial Development Authority
Industrial Development Revenue Bonds Gulf Utility
Series 1988B A.M.T. 9.50 2020 3,945,000 4,358,949
Miami Health Facility Authorization Revenue Bonds
Inverse Floater (AMBAC Insured) 6.82 2015 3,500,000 (d) 3,154,375
Palm Beach County Health Facilities Authority Hospital
Revenue Bonds Good Samaritan Health Series 1993 6.30 2022 4,250,000 4,421,743
Polk County Industrial Development Authority 1st Mortgage
Refunding Revenue Bonds Spring Haven II 8.75 2014 6,270,000 6,703,508
Port Everglades Port Authority Revenue Bonds Junior Lien 5.00 2016 18,635,000 17,669,893
Riverwood Community Development District Charlotte County
Special Assessment Revenue Bonds Series 1992A-B 8.50 2012 6,250,000 6,642,125
State Board of Education Refunding Bonds Series 1989A 6.00 2025 16,750,000 17,008,285
Sumter County Village Community Development District #1
Capital Improvement Revenue Bonds Series 1992 8.40 2012 2,120,000 2,233,123
Sunrise Utility System Refunding & Improvement
Revenue Bonds 10.75 2018 5,000,000 6,129,500
Village Center Community Development District #2
Lake County Recreational Revenue Bonds
Anticipation Notes Series 1996 6.50 2000 6,365,000 6,375,948
Village Community Development District #2
Special Assessment District Revenue Bonds Series 1996 7.625 2017 6,055,000 6,080,128
<PAGE>
Volusia County Industrial Development Authority
1st Mortgage Refunding Revenue Bonds Series 1996 7.625 2026 10,925,000 10,941,715
--------------
Total 238,945,086
- ---------------------------------------------------------------------------------------------------------------
Georgia (2.3%)
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 6.25 2019 8,685,000 8,724,951
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T. 7.90 2018 13,500,000 14,487,390
Colquitt County Development Authority Revenue Bonds
Escrowed to Maturity Zero Coupon 6.87 2021 46,350,000 (f) 8,920,057
Effingham County Pollution Control Revenue Bonds
Fort Howard Series 1988 7.90 2005 19,850,000 20,871,878
Fulco Hospital Authority Revenue Anticipation Certificate
Georgia Baptist Health Care Systems Series 1992A 6.375 2022 20,300,000 20,328,217
Municipal Electric Authority Power Refunding Bonds
Series 1989R 6.00 2014 9,130,000 9,175,559
Municipal Electric Authority Power Revenue Bonds 6.00 2020 3,350,000 3,350,167
Municipal Electric Authority Power Revenue Bonds
Series 5 (FGIC Insured) 6.00 2025 34,490,000 34,898,362
Municipal Electric Authority Power Revenue Bonds
Series L 5.00 2020 1,150,000 1,066,763
Rockdale County Development Authority Solid Waste
Disposal Revenue Bonds Visy Paper Series 1993 A.M.T. 7.50 2026 10,000,000 10,391,700
Savannah Georgia Economic Development Authority
Revenue Bonds Escrowed to Maturity Zero Coupon 6.87 2021 64,220,000 (f) 12,418,864
--------------
Total 144,633,908
- ---------------------------------------------------------------------------------------------------------------
Hawaii (0.4%)
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 6.73 2006 10,000,000 (d) 10,600,000
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater 7.03 2008 10,000,000 (d) 10,625,000
--------------
Total 21,225,000
- -----------------------------------------------------------------------------------------------------------------------------
Illinois (8.5%)
Bradley Kankakee County Tax Increment
Refunding Revenue Bonds Series 1993 8.40 2012 5,800,000 6,351,696
Broadview Cook County Senior Lien Tax Increment
Revenue Bonds Series 1993 8.25 2013 12,000,000 13,088,400
Chicago General Obligation Refunding Bonds
Series 1995A (AMBAC Insured) 5.50 2018 20,000,000 20,123,400
Chicago General Obligation Bonds Series 1991
(AMBAC Insured) 6.00 2016 6,170,000 6,330,543
Chicago General Obligation Bonds Series 1994A
(AMBAC Insured) 5.875 2022 17,850,000 18,049,741
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 6.00 2018 29,000,000 29,187,340
Chicago O'Hare International Airport General Airport
Revenue Bonds Series 1990A A.M.T. 7.50 2016 21,000,000 22,921,080
Chicago O'Hare International Airport General Airport
Refunding Revenue Bonds Series 1993A 5.00 2016 14,450,000 13,683,717
Chicago O'Hare International Airport
Special Revenue Facility Bonds Delta Airlines
Series 1992 6.45 2018 10,000,000 10,195,100
<PAGE>
Chicago O'Hare International Airport
Special Revenue Facility Bonds United Airlines
Series C 8.20 2018 23,235,000 25,282,468
Chicago O'Hare International Airport Terminal
Special Revenue Bonds A.M.T. 7.50 2017 32,250,000 35,005,440
Chicago O'Hare International Airport Terminal
Special Revenue Bonds (FGIC Insured) A.M.T. 7.875 2025 17,750,000 19,289,813
Chicago Ridge Special Service Area #1 Unlimited Ad Valorem
Tax Bonds Series 1990 9.00 2008 2,700,000 2,900,367
Chicago Wastewater Transmission Revenue Bonds
Series 1994 (MBIA Insured) 6.375 2024 22,500,000 24,187,950
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds Mark IV Series 1992 9.75 2012 1,740,000 2,008,447
Development Finance Authority Lifecare Revenue Bonds
Presbyterian Homes Series 1996B 6.40 2031 6,700,000 6,957,347
Development Finance Authority Pollution Control
Refunding Revenue Bonds Central Illinois Public Service
Series 1993B-2 5.90 2028 2,500,000 2,542,075
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison
Series 1994 5.70 2009 2,000,000 2,083,140
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison
Series 1994 5.85 2014 4,500,000 4,664,835
Development Finance Authority Pollution Control
Refunding Revenue Bonds Illinois Power Series 1991A 7.375 2021 19,250,000 21,555,957
Development Finance Authority Pollution Control
Revenue Bonds Illinois Power Series 1986A-C A.M.T. 7.625 2016 42,560,000 44,190,474
Development Finance Authority Retirement Housing
Revenue Bonds Escrowed to Maturity Zero Coupon 7.75 2020 68,000,000 (f) 14,734,240
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) 10,080,000
Educational Facilities Authority Refunding Revenue Bonds
Art Institute of Chicago Series 1993 5.75 2018 1,750,000 1,755,530
Educational Facilities Authority Refunding Revenue Bonds
Art Institute of Chicago Series 1993 5.80 2027 3,350,000 3,364,907
Educational Facilities Authority Refunding Revenue Bonds
Loyola University of Chicago Series 1993 Inverse Floater
(FGIC Insured) 7.37 2012 11,000,000 (d) 11,178,750
Granite City Madison County Hospital
Refunding Revenue Bonds St. Elizabeth Medical Center
Series 1989A 8.125 2008 3,500,000 3,631,915
Hanover Park Cook & DuPage Counties 1st Mortgage
Revenue Bonds Windsor Park Manor Series 1989 9.50 2014 7,000,000 7,490,000
Health Facilities Authority Refunding Revenue Bonds
Edwards Hospital Series 1993A 6.00 2019 6,350,000 6,393,942
Health Facilities Authority Refunding Revenue Bonds
Masonic Hospital 6.125 2023 3,005,000 2,906,917
Health Facilities Authority Refunding Revenue Bonds
Masonic Medical Center Series 1993 5.50 2019 2,000,000 1,904,980
Health Facilities Authority Refunding Revenue Bonds
Peoria Methodist Medical Center Series 1985A 8.00 2014 4,000,000 4,007,920
Health Facilities Authority Refunding Revenue Bonds
University of Chicago Series 1993 Inverse Floater
(MBIA Insured) 7.82 2014 10,000,000 (d) 10,037,500
<PAGE>
Health Facilities Authority Revenue Bonds
Sarah Bush Lincoln Health Center
Series 1996B 5.75 2022 2,915,000 2,798,692
Health Facility Authority Revenue Bonds
Delnore Community Hospital Series 1989 8.00 2019 7,000,000 7,743,610
Health Facility Authority Revenue Bonds
Sarah Bush Lincoln Health Center Series 1992 7.25 2012-22 4,000,000 4,577,440
Health Facility Authority Revenue Bonds
South Suburban Hospital Series 1992 7.00 2009-18 9,000,000 9,714,180
Hodgkins General Obligation Tax Increment Bonds
Series 1991 9.50 2009 12,600,000 15,438,975
Hodgkins General Obligation Tax Increment Bonds
Series 1995C 9.00 2001 1,010,000 1,009,020
Hodgkins General Tax Increment Bonds
Series 1995A 7.625 2013 9,000,000 9,266,580
Lansing Tax Increment Refunding Revenue Bonds
Landings Redevelopment Area Limited Sales Tax Pledge
Series 1992 7.00 2008 10,000,000 11,034,600
Marion General Obligation Hospital Alternate
Revenue Source Bonds Series 1991 7.50 2016 3,800,000 4,155,072
Metropolitan Fair & Exposition Authority
Dedicated State Tax Revenue Bonds 6.00 2014 5,585,000 5,585,838
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (FGIC Insured) 6.37 2019 6,000,000 (f) 1,682,580
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (MBIA Insured) 6.61 2017 11,210,000 (f) 3,518,931
Metropolitan Pier & Exposition Authority
Sales Tax & Miscellaneous Tax Revenue
Capital Appreciation Refunding Bonds Series 1996A 6.20 2022 5,000,000 (f) 1,149,500
Northwest Suburban Water Supply Joint
Action Water Agency (MBIA Insured) 5.75 2012 2,000,000 2,000,380
Northwest Water Commission Cook & Lake County Water
Revenue Bonds (MBIA Insured) 6.50 2012 5,025,000 5,184,695
Regional Transportation Authority General Obligation Bonds
Counties of Cook, Dupage, Kane, Lake, McHenry & Will
Series 1992A (AMBAC Insured) 6.125 2022 7,200,000 7,376,976
Robbins Cook County Resource Revenue Bonds
Robbins Resource Recovery Partners
Series 1996A A.M.T. 8.375 2016 21,500,000 22,145,000
Tinley Park Cook & Will Counties Limited Sales Tax
Revenue Bonds Series 1988 10.25 1999 895,000 (e) 340,100
Tinley Park Cook & Will Counties Unlimited Ad Valorem
Tax Bonds of Special Service 10.65 2007 1,335,000 1,188,150
--------------
Total 523,996,250
- ---------------------------------------------------------------------------------------------------------------
Indiana (2.8%)
Brazil 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 4,225,000 4,584,674
Carmel Retirement Rental Housing Refunding Revenue Bonds
Beverly Enterprises Series 1992 8.75 2008 7,000,000 7,745,010
Development Finance Authority Environmental Improvement
Refunding Revenue Bonds USX Corporation Series 1996 6.25 2030 2,000,000 2,030,240
East Chicago Elementary School Building Lake County
First Mortgage Refunding Bonds Series 1995 6.25 2016 8,000,000 8,478,640
Hanover 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990 10.375 2020 6,910,000 7,498,248
<PAGE>
Health Facility Authority Hospital Revenue Bonds
Community Hospital of Anderson Series 1993 6.00 2023 10,000,000 9,986,300
Health Facility Authority Hospital Revenue Bonds
Union Hospital (MBIA Insured) Series 1993 5.125 2018 10,000,000 9,334,500
Health Facility Finance Authority Hospital Revenue Bonds
Hancock Memorial Series 1996 6.125 2017 2,295,000 (k) 2,293,417
Indianapolis Resource Recovery Revenue Bonds
Ogden Martin System of Indianapolis Series 1985A-B 7.80 2004 9,400,000 9,684,068
Indianapolis Resource Recovery Revenue Bonds
Ogden Martin System of Indianapolis Series 1985B 7.90 2008 2,050,000 2,111,972
Kokomo Hospital Authority Hospital Refunding Revenue Bonds
St. Joseph's Hospital Series 1988A 8.75 2013 5,000,000 5,464,600
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.00 2023 2,990,000 2,845,792
La Porte County Hospital Authority Hospital
Refunding Revenue Bonds La Porte Hospital Series 1993 6.25 2012 5,070,000 5,054,587
Lawrenceburg Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series E 5.90 2019 8,100,000 7,979,553
Marion County Hospital Authority Hospital Facility
Revenue Bonds Methodist Hospital Series 1989 6.50 2008-13 19,670,000 21,040,551
Municipal Power Agency Power Supply System
Refunding Revenue Bonds 5.75 2018 6,470,000 6,469,288
Princeton Pollution Control Revenue Bonds
Public Service of Indiana Series 1987C (MBIA Insured) 7.60 2012 16,000,000 16,488,320
Rockport Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series B 7.60 2016 5,500,000 5,952,430
St. Joseph County Hospital Facility Revenue Bonds
Memorial Hospital of South Bend 9.40 2010 2,000,000 2,538,580
Sullivan Pollution Control Refunding Revenue Bonds
Indiana-Michigan Electric Series C 5.95 2009 18,500,000 18,637,640
Vincennes Economic Development
Revenue Bonds Southwest Indiana
Regional Youth Village Facility Series 1993 8.50 2024 16,575,000 17,238,166
--------------
Total 173,456,576
- ---------------------------------------------------------------------------------------------------------------
Iowa (0.8%)
Iowa City Refunding Revenue Bonds Mercy Hospital
Series 1986 6.00 2012 6,300,000 6,326,964
Keokuk Hospital Facilities Refunding Revenue Bonds
Keokuk Area Hospital Series 1991 7.625 2021 5,350,000 5,750,234
Muscatine Electric Refunding Revenue Bonds Series 1986 5.00 2007-08 7,720,000 7,710,594
Muscatine Electric Refunding Revenue Bonds Series 1986 6.00 2005-06 23,280,000 23,302,116
Sioux City Hospital Facility Revenue Bonds
St. Luke Regional Medical Center 10.875 2013 3,595,000 3,817,099
--------------
Total 46,907,007
- ---------------------------------------------------------------------------------------------------------------
Kentucky (1.3%)
Development Finance Authority Hospital Facility
Revenue Bonds St. Luke Hospital Series 1989B 6.00 2019 22,695,000 22,806,206
Development Finance Authority Medical Center
Refunding Revenue Improvement Bonds Ashland Hospital
Series 1987 9.75 2011 4,000,000 4,316,605
Louisville Airport Lease Revenue Bonds Series 1989A A.M.T. 7.875 2019 4,000,000 4,377,960
Louisville & Jefferson County Riverport Authority Mortgage
Revenue Bonds Series 1986 A.M.T. 7.875 2016 7,185,000 7,445,025
McCracken County Revenue Bonds Lourdes Hospital 6.00 2012 8,300,000 8,308,632
<PAGE>
Muhlenberg County Hospital Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1988 9.50 2010 4,070,000 4,496,170
Muhlenberg County Hospital Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1996 6.75 2010 10,000,000 10,069,500
Turnpike Authority Economic Road Development
Refunding Revenue Bonds Series 1993 Inverse Floater
(AMBAC Insured) 7.44 2012 15,000,000 (d) 15,337,500
--------------
Total 77,157,598
- ---------------------------------------------------------------------------------------------------------------
Louisiana (3.2%)
Calcasieu Parish Industrial Development Pollution Control
Refunding Revenue Bonds Gulf State Utilities Series 1992 6.75 2012 10,500,000 10,723,230
Energy & Power Authority Refunding Revenue Bonds
Rodemacher Unit #2 Series 1991 (FGIC Insured) 6.00 2013 28,000,000 28,597,240
Hodge Village Combined Utility System Revenue Bonds
Stone Container Series 1990 A.M.T. 9.00 2010 23,000,000 24,944,190
New Orleans Audubon Park Commission Aquarium
Revenue Bonds Series 1992A 7.00 1997 500,000 504,105
New Orleans Audubon Park Commission Aquarium
Revenue Bonds Series 1992A 8.00 2012 7,100,000 7,815,822
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.50 2015 1,000,000 1,001,550
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995 6.70 2025 1,500,000 1,517,325
Public Facilities Authority Revenue Bonds
Windsor Multi-Family Housing Foundation Series 1996A 6.25 2026 9,570,000 9,646,369
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1984 8.25 2014 28,600,000 31,361,044
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1991 A.M.T. 7.50 2021 20,700,000 22,691,340
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light 2nd Series 1984 8.00 2014 29,155,000 32,144,845
St. James Parish Pollution Control Revenue Bonds
B.F. Goodrich Series 1981 14.50 2011 500,000 515,290
Southern Louisiana Port Commission
Dock & Wharf Facilities B.F. Goodrich 14.50 2011 3,335,000 3,436,984
Southern Louisiana Port Commission Terminal
Refunding Revenue Bonds Gatx Terminal Series 1993 7.00 2023 13,180,000 13,842,954
West Feliciana Parish Demand Pollution Control
Revenue Bonds Gulf State Utilities Series 1985B 9.00 2015 6,000,000 6,706,920
--------------
Total 195,449,208
- ---------------------------------------------------------------------------------------------------------------
Maine (0.3%)
Bucksport Solid Waste Disposal Revenue Bonds
Champion International Series 1985 6.25 2010 14,185,000 14,455,224
Health & Higher Educational Facilities Authority
Revenue Bonds St. Mary's Hospital Series 1989 8.625 2022 3,500,000 3,919,790
--------------
Total 18,375,014
- ---------------------------------------------------------------------------------------------------------------
Maryland (0.6%)
Frederick County Economic Refunding Revenue Bonds
Alumax Series 1992 7.25 2017 9,880,000 10,405,814
Harford County Industrial Development Revenue Bonds
Dorsey 8.00 2005 531,000 532,667
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.00 2022 7,000,000 8,010,030
<PAGE>
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992 7.25 2017 11,400,000 13,184,784
State Transportation Authority Facility Revenue Bonds
Series 1992 Capital Appreciation Zero Coupon
(FGIC Insured) 6.33 2010-11 9,700,000 (f) 4,615,161
State Transportation Authority Facility Revenue Bonds
Series 1992 Zero Coupon (FGIC Insured) 6.35 2012 5,000,000 (f) 2,205,500
--------------
Total 38,953,956
- ---------------------------------------------------------------------------------------------------------------
Massachusetts (2.4%)
Bay Transportation Authority Refunding Revenue Bonds
Series 1994A (MBIA Insured) 6.00 2012 8,000,000 8,391,600
Greater Lawrence Sanitary District North Andover
General Obligation Bonds 8.50 2005 3,670,000 3,797,459
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 2,000,000 1,912,820
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 6.00 2020 4,000,000 3,791,240
Health & Educational Facilities Authority Revenue Bonds
Beverly Hospital Inverse Floater (MBIA Insured) 7.58 2020 8,000,000 (d) 7,830,000
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series B 7.25 2013 6,455,000 7,007,871
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison Series 1993 5.875 2008 4,250,000 4,185,145
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A 9.00 2015 18,885,000 21,097,000
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991B A.M.T. 9.25 2015 25,000,000 28,013,500
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1992B 6.75 2017 10,130,000 11,456,524
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series 1993A Inverse Floater
(AMBAC Insured) 7.02 2018 6,500,000 (d) 5,971,875
State Health & Educational Facilities Authority
Authorized Revenue Bonds Holyoke Hospital
Series 1994B 6.50 2015 500,000 496,765
Water Resources Authority General
Refunding Revenue Bonds Series 1992B 5.50 2015 22,175,000 21,891,825
Water Resources Authority General Revenue Bonds
Series 1992A 6.50 2019 3,500,000 3,969,350
Water Resources Authority General Revenue Bonds
Series 1993B-95B (MBIA Insured) 5.00 2022-25 19,000,000 17,745,670
--------------
Total 147,558,644
- ---------------------------------------------------------------------------------------------------------------
Michigan (3.8%)
Crawford County Economic Development Corporation
Environmental Improvement Revenue Bonds
Weyerhaeuser Series 1991A 7.125 2007 10,800,000 12,130,236
Detroit Unlimited Tax General Obligation Bonds
Series 1993 6.35 2014 6,120,000 6,238,238
Detroit Unlimited Tax General Obligation Bonds
Series 1995A 6.80 2015 1,375,000 1,462,038
Lincoln Consolidated School District Unlimited Tax
General Obligation Refunding Bonds (FGIC Insured) 5.85 2018 6,455,000 6,595,267
<PAGE>
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 38,187,424
Midland County Economic Development Corporation
Pollution Control Limited Obligation
Refunding Revenue Bonds Midland Cogeneration
Series 1990C 8.50 2009 18,900,000 20,056,302
Monroe County Pollution Control
Revenue Bonds Detroit Edison A.M.T. 7.75 2019 40,250,000 43,706,268
Regents of the University of Michigan Hospital
Refunding Revenue Bonds Series 1986A 7.75 2012 5,000,000 5,101,100
State Hospital Finance Authority Hospital
Refunding Revenue Bonds Detroit Medical Center
Series 1993A 6.50 2018 10,000,000 10,563,300
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.625 2016 2,750,000 2,786,410
State Hospital Finance Authority Hospital
Refunding Revenue Bonds
Sinai Hospital Greater Detroit Series 1995 6.70 2026 3,000,000 3,033,660
State Hospital Finance Authority Hospital
Revenue Bonds Central Michigan Community Hospital 6.25 2016 2,095,000 2,072,185
State Hospital Finance Authority Hospital
Revenue Bonds McLaren Obligated Group Series 1991A 7.50 2021 7,500,000 8,637,300
State Job Development Authority Pollution Control
Revenue Bonds Chrysler 5.70 1999 4,350,000 4,473,279
Strategic Fund Limited Obligation Refunding Revenue Bonds
Detroit Edison Series 1995AA (MBIA Insured) 6.40 2025 12,000,000 13,163,400
Strategic Fund Limited Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 16,400,000 18,874,760
Strategic Fund Limited Obligation Refunding Revenue Bonds
Great Lakes Pulp & Fibre Series 1994 A.M.T. 10.25 2016 35,000,000 21,005,950
Troy City Downtown Development Authority Revenue Bonds
Oakland County Series 1995A 6.375 2018 1,000,000 1,062,630
Van Buren County Downtown Development Authority
Tax Increment Revenue Bonds Series 1994 8.40 2016 4,000,000 4,538,040
Wayne County Special Airport Facilities
Refunding Revenue Bonds Northwest Airlines Series 1995 6.75 2015 11,310,000 11,619,215
--------------
Total 235,307,002
- ---------------------------------------------------------------------------------------------------------------
Minnesota (3.6%)
Apple Valley 1st Mortgage Nursing Home Revenue Bonds
Apple Valley Health Care (FHA Insured) 10.50 2012 420,000 440,467
Becker Solid Waste Disposal Facility Revenue Bonds
Liberty Paper Series 1994B A.M.T. 9.00 2015 18,000,000 19,111,500
Bloomington Community Development
Refunding Revenue Note 24th Avenue Motel 8.50 2005 1,531,641 1,546,957
Bloomington Health Care Facility Revenue Bonds
Friendship Village of Bloomington Series 1992 8.50 2002 4,255,000 4,592,251
Brainerd Economic Development Authority
Health Care Facility Revenue Bonds
Benedictine Health System St. Joseph Medical Center
Series 1990 8.375 2020 4,670,000 5,327,629
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 9,468,806
<PAGE>
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.00 2000 140,000 140,218
Duluth Housing & Redevelopment Authority
Lakeshore Lutheran Home
1st Mortgage Revenue Bonds 8.25 2009 750,000 751,320
Fergus Falls Health Care Facilities Revenue Bonds
Series 1995 6.50 2025 1,530,000 1,559,866
International Falls Solid Waste Disposal
Revenue Bonds Boise Cascade
Series 1990 A.M.T. 7.75 2015 10,000,000 10,508,000
Mahtomedi Multi-family Housing Revenue Bonds
Briarcliff Series 1996 A.M.T. 7.35 2036 2,000,000 2,045,160
Maplewood Elder Care Facility Revenue Bonds
Care Institute Series 1994 7.75 2024 8,000,000 8,200,320
Maplewood Multi-family Housing Refunding Revenue Bonds
Carefree Cottages Series 1995 A.M.T. 7.20 2032 5,000,000 5,013,100
Mille Lacs Capital Improvement Authority Infrastructure
Revenue Bonds Series 1992A 9.25 2012 4,590,000 5,153,882
Richfield Multi-family Housing
Refunding Revenue Bonds
Village Shores Apartments Series 1996 7.625 2031 5,010,000 5,098,677
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 5.175 2005 9,200,000 (d) 8,636,500
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993
Inverse Floater (AMBAC Insured) 6.175 2013 18,000,000 (d) 16,177,500
St. Louis Park Health Care Park Nicollet
Medical Center Facility Revenue Bonds Series 1990A 9.25 2020 6,000,000 6,967,140
St. Louis Park Multi-family Housing Refunding Revenue Bonds
Park Boulevard Towers Series 1996A 7.00 2031 11,665,000 11,836,709
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 2,790,000 2,868,232
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 9.60 2006 1,915,000 1,990,259
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Multi-family Rental Housing
Series 1993B 7.00 2024 2,815,000 2,797,688
St. Paul Port Authority Redevelopment Multi-family
Refunding Revenue Bonds Burlington Apartments
Series A (GNMA Insured) 5.75 2031 14,355,000 14,354,282
St. Paul Port Authority Redevelopment Multi-family
Subordinate Refunding Revenue Bonds
Burlington Apartments Series A 8.625 2031 3,770,000 3,782,667
Southern Minnesota Municipal Power Agency
Power Supply System Refunding Revenue Bonds
Series 1992 5.75 2018 32,210,000 32,169,093
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.72 2021 13,500,000 (f) 3,527,280
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.73 2022 17,500,000 (f) 4,320,400
<PAGE>
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.74 2023 27,500,000 (f) 6,414,650
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds Series 1994A
Zero Coupon (MBIA Insured) 6.75 2024-27 87,410,000 (f) 17,845,813
Vadnais Heights Multi-family Housing
Refunding Revenue Bonds Cottages of Vadnais Heights
Series 1995 A.M.T. 7.00 2031 2,000,000 1,999,980
Washington County Housing & Redevelopment Authority
Woodbury Multi-family Housing Refunding Revenue Bonds
Series 1996 6.95 2023 5,000,000 5,020,150
--------------
Total 219,666,496
- ---------------------------------------------------------------------------------------------------------------
Mississippi (0.7%)
Claiborne County Pollution Control Refunding Revenue Bonds
System Energy Resources Series 1995 7.30 2025 4,000,000 4,203,760
Claiborne County Pollution Control Revenue Bonds
Middle South Energy 9.50 2013 1,500,000 1,662,855
Claiborne County Pollution Control Revenue Bonds
Middle South Energy Series C 9.875 2014 15,375,000 17,110,376
Harrison County Waste Water Management District
Refunding Bonds Series 1986 5.00 2015 4,250,000 4,106,903
Jackson Industrial Development Revenue Bonds Dorsey 8.00 2005 451,000 454,378
Lowndes County Solid Waste Disposal Pollution Control
Revenue Bonds Weyerhaeuser Series 1989 A.M.T. 7.875 2005 12,250,000 13,451,480
Lowndes County Solid Waste Disposal Pollution Control
Refunding Revenue Bonds Weyerhaeuser Series 1989
Inverse Floater 8.25 2022 4,000,000 (d) 4,517,720
--------------
Total 45,507,472
- ---------------------------------------------------------------------------------------------------------------
Missouri (0.7%)
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991B 7.00 2021 5,810,000 6,639,203
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991C 7.90 2021 2,700,000 2,991,546
State Environment & Improvement Energy Resources
Authority Pollution Control Revenue Bonds Chrysler 5.70 1999 9,250,000 9,393,005
Sikeston Electric System Refunding Revenue Bonds
Series 1992 (MBIA Insured) 5.80 2002 4,165,000 4,442,306
St. Louis Industrial Development Authority
Refunding Revenue Bonds Kiel Center
Multipurposes Arena Series 1992 A.M.T. 7.875 2024 15,400,000 16,624,762
--------------
Total 40,090,822
- ---------------------------------------------------------------------------------------------------------------
Nebraska (--%)
Omaha Public Power District Electric System
Revenue Bonds Series 1986A 6.00 2015 1,370,000 1,434,102
- ---------------------------------------------------------------------------------------------------------------
Nevada (0.6%)
Clark County Collateralized Pollution Control Revenue Bonds
Nevada Power A.M.T. 7.80 2009 11,850,000 12,594,891
Clark County Industrial Development Revenue Bonds
Nevada Power Series 1990 A.M.T. 7.80 2020 5,000,000 5,360,350
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.00 2010 2,000,000 1,996,260
<PAGE>
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A 6.10 2014 2,750,000 2,755,803
Las Vegas Special Improvement District 707
Local Improvement Bonds
Summerlin Area Series 1996 7.10 2016 6,000,000 6,185,820
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1989A 7.60 2019 2,750,000 3,004,980
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1993A 6.00 2015 7,250,000 7,250,000
--------------
Total 39,148,104
- ---------------------------------------------------------------------------------------------------------------
New Hampshire (2.5%)
Business Financial Authority Pollution Control
Refunding Revenue Bonds United Illuminating
Series 1993A 5.875 2033 13,200,000 12,461,724
Business Financial Authority Pollution Control &
Solid Waste Disposal Refunding Revenue Bonds
Crown Paper Company Series 1996 7.75 2022 4,255,000 4,504,726
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991B 7.50 2021 51,485,000 53,035,213
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991C A.M.T. 7.65 2021 25,000,000 25,812,000
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1987A A.M.T. 9.375 2012 15,000,000 15,749,700
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1989A A.M.T. 8.00 2014 8,000,000 8,545,840
State Higher Education & Health Facility Authority Hospital
Revenue Bonds Hitchcock Clinic Series 1994
(MBIA Insured) 6.00 2024 13,000,000 13,313,170
State Turnpike System Refunding Revenue Bonds
Series 1992 5.75 2020 20,615,000 20,760,336
--------------
Total 154,182,709
- ---------------------------------------------------------------------------------------------------------------
New Jersey (0.3%)
Economic Development Authority 1st Mortgage
Gross Revenue Bonds Mega Care Union Hospital 8.625 2007 2,500,000 2,629,800
Health Care Facility Finance Authority Revenue Bonds
St. Peter Medical Center Series 1994F (MBIA Insured) 5.00 2016 10,000,000 9,415,900
Health Care Facility Finance Authority Revenue Bonds
Zurbrugg Memorial Hospital Series C 8.50 2012 3,500,000 3,621,520
--------------
Total 15,667,220
- ---------------------------------------------------------------------------------------------------------------
New Mexico (2.0%)
Albuquerque Airport Revenue Bonds Series 1987B A.M.T. 8.75 2019 15,000,000 15,390,450
Albuquerque Health Care System Revenue Bonds
Lovelace Medical Fund 10.25 2011 55,000 55,780
Cibola County Correctional Facility
Certificate of Participation Series 1993 8.50 2015 17,045,000 18,143,380
Farmington Pollution Control Refunding Revenue Bonds
Series 1996 A&B 6.30 2016 10,000,000 10,075,300
Farmington Pollution Control Refunding Revenue Bonds
State Public Service San Juan Series 1994A 6.40 2023 30,650,000 30,933,206
Farmington Pollution Control Revenue Bonds
State Public Service 6.50 2009 5,935,000 5,935,475
Farmington Pollution Control Revenue Bonds
State Public Service San Juan Series 1978A 6.00 2008 9,105,000 9,104,090
<PAGE>
Farmington Power Refunding Revenue Bonds
Generating Division 9.875 2013 5,000,000 6,795,600
Las Vegas Hospital Facility Refunding Revenue Bonds
Northeastern Regional Hospital Series 1987 9.625 2013 5,670,000 5,894,758
Lordsberg Pollution Control Refunding Revenue Bonds
Phelps Dodge 6.50 2013 20,000,000 21,184,400
--------------
Total 123,512,439
- ---------------------------------------------------------------------------------------------------------------
New York (8.1%)
Battery Park City Authority Refunding Revenue Bonds
Series 1993A 5.50 2010 9,940,000 9,988,209
Dormitory Authority New York State University Education
Facility Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 10,000,000 11,306,800
Dormitory Authority New York State University Education
Facility Revenue Bonds Series 1993A 5.50 2013 24,530,000 24,164,258
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 5.00 2017 20,820,000 18,647,849
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990C 6.00 2016 39,465,000 39,550,639
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1990D 7.00 2009 5,000,000 5,669,650
Dormitory Authority New York City University System
Consolidated 2nd General Resource Revenue Bonds
Series 1994A 5.75 2018 5,500,000 5,595,370
Dormitory Authority New York Court Facility Lease
Revenue Bonds Series 1993A 5.375 2016 11,000,000 10,348,690
Metropolitan Transportation Authority Commuter Facility
Revenue Bonds Series H 6.00 2014 6,150,000 6,171,218
Metropolitan Transportation Authority Transit Facility
Revenue Bonds Series G 6.00 2014 4,970,000 5,025,515
Metropolitan Transportation Transit Facilities
Service Contract Series 3 6.00 2019 6,395,000 6,406,831
New York City General Obligation Bonds Series 1992B 7.40 2000 30,000,000 32,365,800
New York City General Obligation Bonds Series 1994B 7.00 2016 16,500,000 18,068,985
New York City General Obligation Bonds Series 1996F-G 5.75 2017-20 27,825,000 26,971,359
New York City Industrial Development Agency
Special Facility Revenue Bonds American Airlines
Series 1990 A.M.T. 8.00 2020 16,130,000 17,143,771
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series 1994B
Inverse Floater (MBIA Insured) 6.57 2009 15,500,000 (d) 15,228,750
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A 6.25 2021 55,500,000 57,309,300
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series B 5.00 2017 6,255,000 5,931,679
Port Authority Special Obligation Revenue Bonds
KIAC A.M.T. 6.75 2019 3,500,000 3,592,330
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines A.M.T. 9.00 2006 2,645,000 2,936,611
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines Series 2 A.M.T. 9.00 2010 8,800,000 9,770,200
<PAGE>
Port Authority Special Project Bonds La Guardia
Airport Passenger Terminal Continental and
Eastern Airlines Series 2 A.M.T. 9.125 2015 17,500,000 19,366,900
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.125 2022 10,750,000 11,009,827
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.375 2024 23,000,000 24,161,730
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison A.M.T. 7.50 2021 9,000,000 9,199,350
State Energy Research & Development Authority Electric
Facility Revenue Bonds Consolidated Edison
Series 1990A A.M.T. 7.50 2025 30,975,000 33,197,766
State Housing Finance Agency Service Contract Obligation
Revenue Bonds Series 1995A 6.50 2025 12,475,000 13,311,449
State Housing Finance Agency State University Construction
Refunding Bonds Series 1986A 6.50 2013 3,500,000 3,913,525
State Local Government Assistance Corporation
Series 1991A 6.50 2020 11,000,000 11,943,470
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993D 5.25 2023 15,000,000 13,658,250
State Medical Facilities Finance Agency Mental Health Services
Improvement Refunding Revenue Bonds Series 1993F 5.25 2019 5,790,000 5,333,632
State Urban Development Correctional Facility
Refunding Revenue Bonds Series A 5.50 2016 2,750,000 2,621,822
State Urban Development Correctional Facility
Revenue Bonds Series 1993A 5.25 2021 12,110,000 11,118,433
State Urban Development Correctional Facility
Revenue Bonds Series 6 5.375 2025 9,000,000 8,508,060
--------------
Total 499,538,028
- ---------------------------------------------------------------------------------------------------------------
North Carolina (3.8%)
Eastern Municipal Power Agency Power Supply System
Refunding Revenue Bonds Series 1993B 6.25 2012 24,655,000 25,028,030
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 4.00 2018 8,675,000 7,156,701
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A 5.00 2017 6,500,000 6,231,182
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1988A 6.00 2026 3,125,000 3,298,667
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 5.50 2011 37,800,000 36,225,252
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 6.50 2024 16,750,000 16,868,590
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A 7.50 2010 29,160,000 34,441,661
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1991A 5.75 2019 55,000,000 52,613,550
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1994B 7.25 2007 5,000,000 5,641,350
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series B 6.125 2009 10,000,000 10,309,700
Eastern Municipal Power Agency Power System
Revenue Bonds Series 1993D 5.875 2013 2,300,000 2,279,806
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1988 7.00 2016 5,140,000 5,353,670
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater (MBIA Insured) 6.97 2012 7,400,000 (d) 7,270,500
<PAGE>
Municipal Power Agency #1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater (MBIA Insured) 7.17 2020 15,000,000 (d) 14,118,750
Offiss Incorporation Recreational Facilities
Gross Revenue Bonds Smoky Mountain Golf Course
Series 1994-6 8.25 2019 8,295,000 (g) 7,736,829
--------------
Total 234,574,238
- ---------------------------------------------------------------------------------------------------------------
North Dakota (0.4%)
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 6.875 2012 3,000,000 3,414,870
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992 7.00 2022 4,250,000 4,817,417
General Obligation Bonds Real Estate Series 1986A 6.00 2013 10,000,000 8,682,183
Ward County Health Care Facilities
Refunding Revenue Bonds Series 1996B 6.25 2021 4,000,000 4,006,640
Ward County Health Care Facilities
Refunding Revenue Bonds Trinity Group Series 1996A 6.25 2026 6,110,000 6,109,572
--------------
Total 27,030,682
- ---------------------------------------------------------------------------------------------------------------
Ohio (2.7%)
Air Quality Development Authority Pollution Control
Refunding Revenue Bonds Ohio Edison Series A 5.95 2029 13,300,000 12,976,810
Air Quality Development Authority Pollution Control
Revenue Bonds Ohio Edison Series 1989A 7.625 2023 6,750,000 7,148,385
Bellefontaine Hospital Facilities Refunding Revenue Bonds
Mary Rutan Health Association Series 1993 6.00 2013 5,330,000 5,175,377
Butler County Hospital Facilities
Refunding Revenue & Improvement Bonds
Fort Hamilton-Hughes Memorial Center Series 1991 7.50 2010 9,800,000 10,504,914
Carroll Water & Sewer District Unlimited Tax
General Obligation Bonds 6.25 2010 8,795,000 8,516,374
Cleveland Parking Facilities Improvement
Revenue Bonds Series 1992 8.10 2022 15,000,000 17,973,900
Coshocton County Solid Waste Disposal
Refunding Revenue Bonds Stone Container Series 1992 7.875 2013 17,500,000 18,803,050
Cuyahoga County Health Care Facilities Lifecare
Refunding Revenue Bonds Judson Retirement Community
Series 1996A 7.25 2013-18 6,210,000 6,261,335
Erie County Hospital Improvement and
Refunding Revenue Bonds Firelands Community Hospital
Series 1992 6.75 2015 6,540,000 6,964,380
Lorain County Independent Living &
Hospital Facilities Mortgage
Refunding Revenue Bonds Elyria United Methodist
Series 1996C 6.875 2022 3,100,000 3,116,864
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds
United Church Homes Series 1993 6.30 2015 1,800,000 1,813,896
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds
United Church Homes Series 1993 6.375 2010 2,000,000 2,033,340
Montgomery County Health Facilities
Refunding Revenue Bonds Friendship Village of Dayton
Series 1990A 9.25 2016 9,000,000 9,467,100
Water Development Authority Collateralized Pollution Control
Refunding Revenue Bonds Cleveland Electric Series 1995 7.70 2025 13,000,000 13,901,290
<PAGE>
Water Development Authority Collateralized Pollution Control
Revenue Bonds Cleveland Electric Series 1989 A.M.T. 8.00 2023 10,000,000 10,332,200
Water Development Authority Collateralized Pollution Control
Revenue Bonds Toledo Edison Series 1989 A.M.T. 8.00 2023 8,500,000 8,923,470
Water Development Authority Pollution Control
Revenue Bonds Ohio Edison A.M.T. 8.10 2023 10,000,000 10,655,600
Water Development Authority Pollution Control
Refunding Revenue Bonds Toledo Edison
Series 1994A A.M.T. 8.00 2023 10,000,000 10,849,600
-----------
Total 165,417,885
- ---------------------------------------------------------------------------------------------------------------
Oklahoma (1.6%)
Grand River Dam Authority Refunding Revenue Bonds
Series 1987 5.00 2012 10,105,000 9,923,312
Hinton Economic Development Authority
Certificate of Participation Series 1994 8.75 2015 12,100,000 12,854,798
Hinton Economic Development Authority
Certificate of Participation Dominion Leasing
Series 1990A 9.75 2015 19,090,000 21,156,874
Jackson County Hospital Authority
Refunding Revenue Bonds
Jackson County Memorial Hospital Series 1994 7.30 2015 6,580,000 6,545,916
Midwest City Memorial Hospital Authority Hospital
Revenue Bonds Series 1992 7.375 2022 7,815,000 8,913,242
Oklahoma City Central Oklahoma Transportation &
Parking Authority Parking System
Refunding Revenue Bonds Series 1986 (AMBAC Insured) 6.90 2008 8,180,000 8,326,177
Tulsa Municipal Airport Trust Revenue Bonds
American Airlines Series 1995 6.25 2020 31,550,000 32,059,848
--------------
Total 99,780,167
- ---------------------------------------------------------------------------------------------------------------
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 7,525,533
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994A 7.125 2021 19,200,000 20,023,872
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994B A.M.T. 7.40 2016 9,000,000 9,455,940
--------------
Total 37,005,345
- ---------------------------------------------------------------------------------------------------------------
Pennsylvania (4.2%)
Allegheny County Industrial Development Authority
Environment Improvement Revenue Bonds
USX Corporation Series 1994A 6.70 2020 6,000,000 6,269,940
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995 7.625 2025 7,500,000 8,132,700
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995A 7.75 2025 21,150,000 23,130,909
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Toledo Edison Series 1995A 7.75 2020 14,000,000 15,337,980
<PAGE>
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds
Toledo Edison-Beaver Valley Series 1995 7.625 2020 11,700,000 12,687,012
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds Ohio Edison 7.75 2024 34,650,000 36,581,044
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 4,874,460
Convention Center Authority Refunding Revenue Bonds
Philadelphia Series 1994A 6.75 2019 5,300,000 5,768,679
Delaware County Authority 1st Mortgage Revenue Bonds
Riddle Village Series 1996 7.00 2026 10,000,000 9,925,900
Delaware County Authority 1st Mortgage Revenue Bonds
Whitehorse Village Continuing Care Series 1989 9.70 2009-19 11,000,000 12,720,070
Delaware County Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Philadelphia Electric Series A 7.375 2021 900,000 963,801
Fayette County Hospital Authority Hospital
Refunding Revenue Bonds Uniontown Hospital
Series 1987 7.625 2015 9,000,000 9,378,540
Montgomery County Higher Education & Health Authority
Retirement Community Revenue Bonds G.D.L. Farms
Series A 9.50 2020 3,000,000 3,492,030
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 8.875 2005 1,680,000 1,720,757
Philadelphia Airport Revenue Bonds
Philadelphia Airport System Series 1985 9.00 2015 5,750,000 5,889,840
Philadelphia Gas Works Revenue Bonds Series 13 7.70 2021 4,150,000 4,791,424
Philadelphia Hospital & Higher Education Facility
Authority Hospital Revenue Bonds
Albert Einstein Medical Center 7.625 2011 15,545,000 16,646,363
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.25 2013 2,500,000 2,554,900
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D 6.30 2017 1,550,000 1,583,961
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.00 2018 14,000,000 15,570,940
Philadelphia Water & Sewer Revenue Bonds 16th Series 7.50 2010 13,200,000 15,173,928
Philadelphia Water & Wastewater Revenue Bonds
Series 1993 (CGIC Insured) 5.50 2015 11,000,000 10,873,720
State Department of General Services Certificate of
Participation Series 1994A (AMBAC Insured) 5.00 2015 25,000,000 23,610,500
Wilkins Industrial Development Authority Revenue Bonds
Retirement Community Longwood at Oakmont
Series 1991A 10.00 2021 8,495,000 10,182,536
------------
Total 257,861,934
- ---------------------------------------------------------------------------------------------------------------
Puerto Rico (0.7%)
Electric Power Agency Revenue Bonds Series N-O 6.00 2010 45,305,000 45,787,498
- ---------------------------------------------------------------------------------------------------------------
South Carolina (0.9%)
Cherokee County Spring City Knitting Cluett Peabody 7.40 2009 5,200,000 5,689,424
Piedmont Municipal Power Agency Electric
Refunding Revenue Bonds Series 1986B 5.75 2024 7,550,000 7,367,441
Public Service Authority Electric System Expansion
Revenue Bonds Santee Cooper Series 1991D 6.625 2031 14,975,000 16,872,033
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1991B 6.00 2031 8,000,000 8,056,800
<PAGE>
Public Service Authority Electric System Revenue Bonds
Santee Cooper Series 1993A Inverse Floater
(MBIA Insured) 7.19 2013 17,700,000 (d) 17,456,625
--------------
Total 55,442,323
- ---------------------------------------------------------------------------------------------------------------
South Dakota (0.3%)
Heartland Consumers Power District Electric System
Refunding Revenue Bonds Series 1986 6.00 2010 10,205,000 10,859,651
State Lease Revenue Trust Certificates Series 1993
(CGIC Insured) 6.70 2017 7,260,000 8,580,449
--------------
Total 19,440,100
- ---------------------------------------------------------------------------------------------------------------
Tennessee (0.4%)
Nashville & Davidson County Health & Education Facility
1st Mortgage Revenue Bonds
Blakeford at Green Hills CCRC 9.25 2024 12,230,000 13,407,138
Knox County Health Education & Housing Facility Hospital
Revenue Bonds Baptist Health System East Tennessee
Series 1989 8.60 2016 10,000,000 10,573,800
--------------
Total 23,980,938
- ---------------------------------------------------------------------------------------------------------------
Texas (7.9%)
Alliance Airport Authority Special Facility Revenue Bonds
American Airlines Series 1990 A.M.T. 7.50 2029 37,400,000 40,203,878
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1985 10.75 2010-15 12,000,000 14,494,200
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1986 5.00 2013 20,000,000 18,863,600
Board of Regents of the University System General
Refunding Revenue Bonds Series 1986 6.50 2007 2,565,000 2,648,593
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1989A A.M.T. 8.25 2019 14,000,000 15,105,720
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1990A A.M.T. 8.125 2020 13,205,000 14,511,503
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1991A A.M.T. 7.875 2021 24,450,000 27,183,266
Brazos River Authority Collateralized
Refunding Revenue Bonds Houston Lighting & Power
(MBIA Insured) 5.80 2015 15,000,000 15,229,950
Brazos River Authority Collateralized
Refunding Revenue Bonds Houston Lighting & Power
Series 1989A 7.625 2019 26,300,000 28,585,733
Brownsville Utility System Priority Revenue Bonds
Series 1990 (AMBAC Insured) 6.50 2017 10,015,000 10,989,159
Clay Road Municipal Utility District Tax
Refunding Bonds Series 1996 6.25 2015 2,000,000 2,017,940
Colony Municipal Utility District #1 Denton County
Series 1980 9.25 2007 1,000,000 1,357,860
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds American Airlines Series 1990 A.M.T. 7.50 2025 26,200,000 28,159,498
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds Delta Air Lines Series 1991 A.M.T. 7.125 2026 13,500,000 14,237,910
<PAGE>
Denison Hospital Authority Hospital Revenue Bonds
Texoma Medical Center Series 1994 7.10 2024 3,950,000 4,173,491
Fort Bend County Municipal Utility District #23
Unlimited Tax Bonds 6.625 2016 3,085,000 3,110,019
Harris County Health Facilities Development Hospital
Refunding Revenue Bonds Memorial Hospital Series 1985 6.00 2004 6,460,000 6,463,359
Harris County Health Facilities Hospital Revenue Bonds
Memorial Hospital Series 1992 7.125 2015 16,000,000 17,386,400
Harris County Industrial Development Marine Terminal
Refunding Revenue Bonds GATX Terminal Series 1992 6.95 2022 15,000,000 15,856,500
Hidalgo County Health Services Corporation
Hospital Revenue Bonds Mission Hospital
Series 1996 6.875 2026 7,880,000 7,975,584
Interstate Municipal Utility District
Unlimited Tax Bonds Harris County Series 1996 6.75 2021 3,020,000 3,086,651
Karnes County Public Facility Lease Revenue Bonds 9.20 2015 15,990,000 16,548,691
Kings Manor Municipal Utility District
Waterworks & Sewer Systems Combination
Unlimited Tax & Revenue Bonds Series 1995 6.875 2018 2,470,000 2,555,759
Matagorda County Navigation District #1
Collateral Pollution Control Refunding Revenue Bonds
Houston Power & Light (MBIA Insured) 5.80 2015 15,000,000 15,237,300
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 7,181,590
Matagorda County Navigation District #1
Collateral Pollution Control Revenue Bonds
Houston Power & Light Series 1986A A.M.T. 7.875 2016 8,000,000 8,187,680
Matagorda County Navigation District #1
Pollution Control Revenue Bonds
Central Power & Light Series 1986 A.M.T. 7.875 2016 18,000,000 18,363,960
Midland County Hospital District Revenue Bonds Series 1992 7.50 2016 3,025,000 3,238,595
Mills Road Municipal Utility District Harris County
Unlimited Tax Refunding Bonds Series 1993 6.50 2014 2,690,000 2,733,766
Mount Houston Road Municipal Utility District
Waterworks & Sewer System Combined Unlimited
Tax & Refunding Revenue Bonds Series 1996 6.375 2010 2,195,000 2,201,563
Municipal Power Agency Refunding Revenue Bonds
(MBIA Insured) 5.25 2009 8,000,000 8,163,600
Municipal Power Agency Revenue Bonds 5.50 2013 7,410,000 7,345,311
Municipal Power Agency Revenue Bonds (BIG Insured) 6.25 2010 13,940,000 14,485,751
North Central Texas Health Facility Development Hospital
Revenue Bonds University Medical Center 8.20 2019 4,245,000 4,397,098
North Central Texas Health Facility Development Hospital
Revenue Bonds University Medical Center Series 1987 7.75 2017 7,500,000 7,734,075
Plano Collin & Denton County General Obligation Bonds
Limited Tax Series 1986 6.00 2006 1,600,000 1,606,080
Rio Grande City Consolidated Independent School District
Public Facilities Lease Revenue Bonds Series 1995 6.75 2010 4,000,000 4,211,400
Sabine River Authority Collateralized Pollution Control
Revenue Bonds Texas Utilities Electric Series 1990A A.M.T. 8.125 2020 30,500,000 33,517,670
San Antonio Electric & Gas System
Refunding Revenue Bonds Series 1989B 5.00 2016 11,000,000 10,217,130
San Antonio Electric & Gas System
Revenue Bonds Series 1987 5.00 2014 8,680,000 8,127,778
<PAGE>
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 19,688,117
-------------
Total 487,383,728
- ---------------------------------------------------------------------------------------------------------------
Utah (1.8%)
Association Municipal Power System Hunter Series A
(AMBAC Insured) 5.50 2012 4,000,000 3,999,840
Carbon County Solid Waste Disposal
Refunding Revenue Bonds Sunnyside
Cogeneration Associates Series 1991 A.M.T. 9.25 2018 25,350,000 17,935,125
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.30 2011 1,090,000 1,156,555
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured) 7.35 2016 865,000 916,848
Hurricane Health Facilities Development Revenue Bonds
Mission Health Services Series 1990 10.50 2020 7,705,000 8,653,640
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series F (AMBAC Insured) 5.00 2013 5,000,000 4,771,850
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1993B Inverse Floater 7.12 2011 7,600,000 (d) 7,505,000
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C (MBIA Insured) 5.70 2017 46,000,000 46,502,780
Intermountain Power Agency Power Supply
Revenue Bonds Series 1987A (MBIA Insured) 5.00 2012 8,000,000 7,689,680
Intermountain Power Agency Power Supply
Revenue Bonds Series 1989A-B 6.00 2023 13,665,000 13,883,569
-------------
Total 113,014,887
- ---------------------------------------------------------------------------------------------------------------
Virginia (0.5%)
Fairfax County Redevelopment & Housing Authority
Multi-family Housing Revenue Bonds
Burkeshire Commons Series 1996 7.60 2036 13,330,000 13,420,910
Hopewell City Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Stone Container Series 1992 8.25 2010 3,170,000 3,448,263
Housing Development Authority Commonwealth
Mortgage Bonds Series 1992A 7.15 2033 15,000,000 15,649,200
-------------
Total 32,518,373
- ---------------------------------------------------------------------------------------------------------------
Washington (3.4%)
Health Care Facilities Authority Revenue Bonds
Seattle Highline Community Hospital
Series 1993 (Connie Lee Insured) 5.50 2014 3,750,000 3,683,100
King County Housing Authority Pooled Housing
Refunding Revenue Bonds Series 1995A 7.20 2026 4,000,000 4,068,920
Longview Industrial Development Corporation Solid Waste
Revenue Bonds Weyerhauser Series 1991 A.M.T. 7.45 2013 20,000,000 21,912,600
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Series A 6.50 2015 21,000,000 22,008,840
Public Power Supply System Nuclear Project #1
Refunding Revenue Bonds Bonneville Power Administration
Series 1993A Inverse Floater (FSA Insured) 7.47 2011 25,000,000 (d) 26,625,000
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1989 6.00 2017 28,070,000 28,161,227
<PAGE>
Public Power Supply System Nuclear Project #1
Revenue Bonds Series 1990A 6.00 2017 38,875,000 39,046,439
Public Power Supply System Nuclear Project #2
Revenue Bonds Series 1994A 5.375 2011 10,000,000 9,738,300
Public Power Supply System Nuclear Project #3
Revenue Bonds Series 1989B 5.50 2017-18 27,550,000 26,412,867
Snohomish County Public Utility District #1
Generation System Revenue Bonds Series 1986A 5.00 2020 17,750,000 16,976,455
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.00 2017 3,700,000 3,799,271
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty Insured) 6.125 2027 3,850,000 3,951,063
--------------
Total 206,384,082
- ---------------------------------------------------------------------------------------------------------------
West Virginia (1.4%)
Kanawha County Pollution Control
Revenue Bonds Union Carbide Series 1984 7.35 2004 3,000,000 3,412,230
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1993 A.M.T. 7.75 2011 20,000,000 9,661,600
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1994 A.M.T. 8.25 2011 10,000,000 4,855,700
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995 A.M.T. 9.00 2011 5,000,000 2,465,250
Marion County Solid Waste Disposal Facility
Revenue Bonds American Power Paper Recycling
Series 1995B A.M.T. 9.25 2011 5,000,000 2,465,300
Mason County Pollution Control Refunding Revenue Bonds
Appalachian Power Series 1992J 6.60 2022 25,000,000 25,991,000
Pea Ridge Public Service District Sewer
Refunding Revenue Bonds Series 1990 9.25 2020 2,605,000 2,750,958
Putnam County Pollution Control Revenue Bonds
Appalachian Power Series C 6.60 2019 10,600,000 11,042,656
School Building Authority Capital Improvement
Revenue Bonds Series 1991A 6.00 2021 20,785,000 21,057,491
South Charleston Pollution Control Refunding
Revenue Bonds Union Carbide Series 1985 7.625 2005 3,000,000 3,468,750
--------------
Total 87,170,935
- ---------------------------------------------------------------------------------------------------------------
Wisconsin (0.7%)
Health & Education Facilities Authority
Revenue Bonds St. Clare Hospital 7.00 2022 12,115,000 13,069,904
Health Facilities Authority Refunding Revenue Bonds
Villa Clement Series 1986 8.75 2012 4,500,000 4,509,720
Madison Industrial Development
Refunding Revenue Bonds Madison Gas & Electric
Series 1992B 6.70 2027 19,300,000 20,624,752
Superior Water Supply Facility Revenue Bonds
Superior Water Light & Power Series 1986 A.M.T. 7.875 2021 6,500,000 6,644,690
--------------
Total 44,849,066
<PAGE>
- ---------------------------------------------------------------------------------------------------------------
Wyoming (0.2%)
Green River & Rock Springs Sweetwater County
Joint Powers Water Board Revenue Bonds
Series 1988A 8.50 2007 2,500,000 2,685,425
Natrona County Hospital Revenue Bonds
Wyoming Medical Center 8.125 2010 6,500,000 7,000,760
State Farm Loan Board Capital Facilities
Revenue Bonds Series 1994 6.10 2024 5,000,000 5,137,200
--------------
Total 14,823,385
- ---------------------------------------------------------------------------------------------------------------
Total municipal bonds
(Cost: $5,571,907,073) $6,015,100,429
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
Short-term securities (0.9%)
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Issuer (c,i,j) Effective Amount Value(a)
yield payable at
maturity
- --------------------------------------------------------------------------------------------------------------------
Municipal notes
Breckenridge Health Facility Revenue Bonds V.R.D.B.
(MBIA Insured)
<S> <C> <C> <C>
11-15-13 3.50% $ 2,595,000 $ 2,595,000
Burke County Development Authority Pollution Control
Refunding Revenue Bonds Georgia Power Vogtle 5th V.R.
07-01-24 3.95 4,500,000 4,500,000
Burke County Development Authority Pollution Control
Revenue Bonds Georgia Power Plant Vogtle
09-01-26 4.10 900,000 900,000
Burke County Pollution Control Revenue Bonds
Georgia Power Series 1994
07-01-24 4.20 3,000,000 3,000,000
Development Authority of Monroe County Georgia Power
2nd Series
07-01-25 4.25 6,000,000 6,000,000
Development Authority of Monroe County Gulf Power
2nd Series
09-01-24 4.25 2,000,000 2,000,000
Harris County Health Facilities Development Hospital
Revenue V.R. Methodist Hospital
12-01-25 4.10 19,000,000 19,000,000
Missouri State Health & Education Washington University
Series B V.R.
09-01-30 4.20 800,000 800,000
Pennsylvania State Higher Education Facilities
Authorized College & University Revenue Bonds
Temple University
10-01-09 4.00 7,700,000 7,700,000
St. Louis Park Minnesota Health System Revenue
Bonds V.R.D.B.
07-01-13 3.50 11,000,000 11,000,000
- ---------------------------------------------------------------------------------------------------------------------
Total short-term securities
(Cost: $57,495,000) $57,495,000
- ---------------------------------------------------------------------------------------------------------------------
Total investments in securities
(Cost: $5,629,402,073)(l) $6,072,595,429
</TABLE>
<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 11-30-96 11-30-95
----------------------------------------------------------------------
AAA 25% 29%
AA 6 6
A 16 20
BBB 33 27
BB and below 20 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 Nov. 30, 1996. Inverse floaters in the aggregate
represent 5.4% of the Portfolio's net assets as of Nov. 30, 1996.
(e) Presently non-income producing. 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) For those zero coupon bonds that become coupon paying at a future date, the
interest rate disclosed represents the annualized effective yield from the
date of acquisition to interest reset date disclosed.
(h) Pledged as initial deposit on the following open interest rate futures
contracts (see Note 4 to the financial statements):
Type of security Notional amount
Sales contracts
U.S. Treasury Bonds Dec. 1996 $350,000,000
(i) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on Nov. 30, 1996.
(j) The Portfolio is entitled to receive principal amount from issuer or
corporate guarantor, if indicated in parentheses, after a day or a week's
notice. The maturity date disclosed represents the final maturity. The
following abbreviations are used in the portfolio descriptions:
V.R. -- Variable Rate
V.R.D.B. -- Variable Rate Demand Bond
V.R.D.N. -- Variable Rate Demand Note
A.M.T. -- Alternative Minimum Tax -- As of Nov. 30, 1996, the value of
securities subject to alternative minimum tax represented 19.51%
of net assets.
<PAGE>
(k) At Nov. 30, 1996, the cost of securities purchased on a when-issued basis
was $2,274,953.
(l) At Nov. 30, 1996, the cost of securities for federal income tax purposes
was $5,630,528,910 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation $514,777,135
Unrealized depreciation (72,710,616)
---------------------------------------------------------------------------
Net unrealized appreciation $442,066,519
---------------------------------------------------------------------------
<PAGE>
<PAGE>
PAGE 5
This page intentionally left blank.
<PAGE>
PAGE 6
This page intentionally left blank.
<PAGE>
PAGE 7
This page intentionally left blank.
<PAGE>
PAGE 8
This page intentionally left blank.
<PAGE>
PAGE 9
This page intentionally left blank.
<PAGE>
PAGE 10
American Express Service Corporation, Distributor
