Semiannual Report
Corporate Income Fund
November 30, 1996
T. Rowe Price
REPORT HIGHLIGHTS
o Bonds bounced back in the second half of 1996, erasing negative first
half performance and producing strong returns for the six months ended
November 30.
o A robust rate of economic growth in the second quarter triggered
concerns that the Fed might tighten, but moderate growth during the
summer calmed investors.
o Your fund's return was strong during the past six months (9.31%),
exceeding that of the 12-month period (7.66%).
o Results for both periods were ahead of the Lipper benchmark for similar
funds, primarily due to our strategic employment of lower-rated
securities.
o We expect economic growth in 1997 to repeat this year's pattern and
long-term Treasury yields to range between 6% and 7%. In that
environment, corporate bonds should continue to provide attractive
returns.
Fellow Shareholders
The bond market and your fund rebounded during the second half of the year,
erasing the negative returns of the first half and producing strong six-month
returns and reasonable 12-month returns. When the economy slowed during the
summer, fears abated that the Fed would tighten monetary policy following
robust growth in the second quarter.
MARKET ENVIRONMENT
With inflation in the 2.5% to 3% range for several years, and the economy
producing strong job growth and full employment, concerns abounded that any
uptick in inflation beyond that range would be met with higher short-term
rates from the Fed. During the second quarter the economy registered an
annualized growth rate of 4.7%, well above the level considered compatible
with moderate inflation. As a result, long-term Treasury yields rose to more
than 7%. However, signs of accelerating inflation failed to materialize. With
economic growth slowing to around 2% in the third quarter, longer-term rates
fell to below 6.5% at the end of November. The federal funds rate target,
controlled by the Fed, has remained at 5.25% for almost a year, and we see no
compelling reason at this time for the Fed to push it either higher or lower.
Chart 1 - Interest Rate Levels - Interest Rate Levels chart showing yields of
BBB-rated corporate bonds and 10-year Treasuries from 11/30/95 through
11/30/96.
The chart compares the yields of BBB-rated corporate bonds with those of
10-year Treasuries over the past 12 months. Rising rates earlier this year
hurt the fund's high-quality holdings but benefited lower-quality securities,
which react more like stocks to robust growth in the economy. During the past
six months, slowing economic growth and a drop in rates produced more
consistent returns across credit sectors, as price appreciation in
higher-rated securities matched the income returns of lower-rated bonds.
PERFORMANCE REVIEW
Your fund posted a solid return during the past six months and a reasonable
return over the 12 months ended November 30. Six-month performance was aided
by a substantial increase in net asset value since the May reporting period,
while 12-month results were largely from income.
Performance Comparison
Periods Ended 11/30/96 6 Months 12 Months
Corporate Income Fund 9.31% 7.66%
Lipper Corporate Debt BBB Funds Average 7.98 6.04
Returns exceeded those of the Lipper benchmark for both periods, primarily
because of the portfolio's greater exposure to high-yield bonds. Your fund's
flexible investment guidelines allow it to invest in a broad variety of
securities in an effort to enhance income and achieve some capital
appreciation. Our weightings among various sectors of the market reflect our
in-house credit research, as well as our outlook for the economy and the
markets.
STRATEGY
We continued to make maximum use of lower credit quality securities in both
the investment-grade (BBB and higher) and high-yield (B and BB) sectors of the
portfolio. We raised the investment-grade component to 72% of net assets, well
above the minimum requirement of 65%, with 53% of assets in BBB-rated
securities (compared with 47% at the end of May). We kept B-rated holdings at
the maximum allowable limit of 10%, and invested the balance of assets in
BB-rated bonds and a convertible preferred stock.
We expect to maintain this aggressive quality distribution as long as the
economy seems moderately strong. Should a slowdown develop in 1997, we would
upgrade credit quality by reducing B-rated bonds in favor of BB, for example,
and BBB in favor of A. In a slowing economy, higher-quality bonds generally do
better because their prices rise when interest rates fall.
Chart 2 - Quality Diversification - Quality diversification pie chart showing
A-rated and above 19%, BBB 53%, BB 17%, B 10%, Convertible Preferred Stock 1%.
Our investment decisions continue to emphasize protection of principal and
level of income, while using our in-house credit research to find improving
credit situations.
OUTLOOK
We expect 1997 to repeat this year's economic pattern, with low unemployment,
barely rising inflation, and moderate growth overall, but varying from quarter
to quarter. Through most of this year, the bond market's response to the
economic climate assisted the Federal Reserve in keeping the economy on its
moderate growth track, which is appropriate at this phase of the business
cycle. Until either growth or inflation deviates from its current path, we
expect long-term Treasury yields to move between 6% and 7%.
The recent drop in rates following the November elections reflected an
expectation by investors of progress toward a balanced budget. Prospects of a
balanced budget in the not-too-distant future should increase the likelihood
of subdued inflation over the long term. In this type of economic environment,
we believe corporate securities can continue to provide attractive investment
returns for shareholders.
Thank you for investing with T. Rowe Price.
Respectfully submitted,
Peter Van Dyke
President and Chairman of the Investment Advisory Committee
December 20, 1996
T. Rowe Price Corporate Income Fund
Portfolio Highlights
Key Statistics
5/31/96 11/30/96
Price Per Share $ 9.58 $ 10.09
Dividends Per Share
For 6 months 0.37 0.36
For 12 months - 0.74
Dividend Yield *
For 6 months 7.53% 7.62%
For 12 months - 7.70
Weighted Average Maturity (years) 14.5 13.9
Weighted Average Effective Duration (years) 6.3 6.0
Weighted Average Quality ** BBB BBB
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the average daily net asset values per share for the same
period.
** Based on T. Rowe Price research.
T. Rowe Price Corporate Income Fund
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
5/31/96 11/30/96
Electric Utilities 13% 15%
Energy 8 10
Chemicals 9 9
Finance and Credit - 6
Insurance 7 6
Entertainment and Leisure 6 5
Airlines 4 4
Banking 2 4
Container 5 4
Lodging 4 4
Industrial - 3
Investment Dealers 7 3
Media and Communications 4 3
Cable Operators 3 2
Consumer Nondurables 1 2
Food and Tobacco 2 2
Gaming 4 2
Manufacturing 1 2
Service 2 2
Textiles and Apparel - 2
Transportation 3 2
All Other 13 6
Other Assets Less Liabilities 2 2
Total 100% 100%
T. Rowe Price Corporate Income Fund
Performance Comparison
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.
Chart 3 - Corporate Income Fund - a line chart showing the cumulative growth
of $10,000 invested in the Corporate Income Fund from inception compared with
$10,000 invested in a broad-based index and average over the same period.
Average Annual Compound Total Return
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Since Inception
Periods Ended 11/30/96 1 Year Inception Date
Corporate Income Fund 7.66% 8.67% 10/31/95
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
T. Rowe Price Corporate Income Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months 10/31/95
Ended to
11/30/96 5/31/96
NET ASSET VALUE
Beginning of period $ 9.58 $ 10.00
Investment activities
Net investment income 0.36* 0.44*
Net realized and unrealized gain (loss) 0.51 (0.42)
Total from investment activities 0.87 0.02
Distributions
Net investment income (0.36) (0.44)
NET ASSET VALUE
End of period $10.09 $ 9.58
Ratios/Supplemental Data
Total return 9.31%* 0.09%*
Ratio of expenses to average net assets 0.80%*! 0.80%*!
Ratio of net investment income to
average net assets 7.49%*! 7.56%*!
Portfolio turnover rate 42.2%! 70.5%!
Net assets, end of period (in thousands) $15,577 $12,461
* Excludes expenses in excess of a 0.80% voluntary expense limitation in
effect through 5/31/97.
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Corporate Income Fund
Unaudited November 30, 1996
Statement of Net Assets Par/Shares Value
In thousands
CORPORATE BONDS AND NOTES 91.8%
Banking 3.7%
Banca Commerciale Italiana,
Sr. Sub. Notes, 8.25%, 7/15/07 $ 530 $ 581
581
Building Products 0.7%
Schuller International Group,
Sr. Notes, 10.875%, 12/15/04 100 111
111
Cable Operators 2.5%
Rogers Cablesystems, Sr. Sub. Deb.,
11.00%, 12/1/15 150 161
TeleCommunications, Sr. Notes,
8.75%, 2/15/23 240 225
386
Chemicals 9.1%
Agricultural Minerals and Chemicals, Sr. Notes,
10.75%, 9/30/03 150 161
Freeport-McMoRan Resource Partners, Sr. Notes,
7.00%, 2/15/08 500 490
Methanex, Sr. Notes, 7.75%, 8/15/05 450 462
Union Carbide Chemicals & Plastics,
Deb., 8.75%, 8/1/22 276 307
1,420
Consumer Nondurables 1.9%
American Safety Razor, Sr. Notes,
9.875%, 8/1/05 150 161
Doane Products, Sr. Notes, 10.625%, 3/1/06 125 133
294
Container 3.7%
Crown Cork & Seal, Sr. Deb., 8.00%, 4/15/23 400 412
Owens-Illinois, Sr. Deb., 11.00%, 12/1/03 150 166
578
Electric Utilities 14.8%
Commonwealth Edison, 1st Mtg. Notes,
8.375%, 2/15/23 400 416
Connecticut Light & Power, 1st Ref. Mtg. Notes,
7.25%, 7/1/99 500 505
El Paso Electric, 1st Mtg. Notes,
8.90%, 2/1/06 150 159
Long Island Lighting, Gen. & Ref. Bonds,
9.75%, 5/1/21 619 636
Texas Utilities Electric, 1st Mtg. Notes,
7.375%, 10/1/25 600 592
2,308
Energy 10.3%
Coda Energy, Sr. Sub. Notes, 10.50%, 4/1/06 50 51
Columbia Gas Systems, Sr. Deb.,
7.32%, 11/28/10 $ 500 $ 508
Maxus Energy, Sr. Notes, 9.375%, 11/1/03 100 102
PDV America, Sr. Notes, 7.25%, 8/1/98 525 526
Petroleum Heat & Power, Sub. Deb.,
12.25%, 2/1/05 150 168
Rowan Companies, Sr. Notes, 11.875%, 12/1/01 150 160
Tuboscope Vetco International, Sr. Sub. Notes,
10.75%, 4/15/03 75 82
1,597
Entertainment and Leisure 5.2%
Time Warner, Sr. Notes, 7.75%, 6/15/05 700 718
United Artists Theatre Circuit, PTC,
9.30%, 7/1/15 99 91
809
Finance and Credit 5.9%
Aames Financial, Sr. Notes, 9.125%, 11/1/03 150 153
Fairfax Financial Holdings Ltd., Notes,
8.30%, 4/15/26 250 269
Grand Metropolitan Investment, Gtd. Bonds,
9.00%, 8/15/11 400 492
914
Food and Tobacco 2.4%
Consolidated Cigar, Sr. Sub. Notes,
10.50%, 3/1/03 150 156
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 150 164
MAFCO, Sr. Sub. Notes, 11.875%, 11/15/02 50 52
372
Gaming 2.2%
GNF, 1st Mtg. Notes, 10.625%, 4/1/03 100 110
Showboat, 1st Mtg. Bonds, 9.25%, 5/1/08 100 98
Trump Atlantic City Associates, 1st Mtg. Notes,
11.25%, 5/1/06 145 137
345
Health Care 0.5%
Dade International, Sr. Sub. Notes,
11.125%, 5/1/06 75 81
81
Industrials 3.2%
Celulosa Arauco y Constitucion, Notes,
7.00%, 12/15/07 500 498
498
Insurance 6.2%
Nationwide Mutual Life, Surplus Notes, (144a),
7.50%, 2/15/24 400 384
Pacific Mutual Life, Surplus Notes, (144a),
7.90%, 12/30/23 305 322
Principal Mutual Financial, Surplus Notes, (144a),
7.875%, 3/1/24 $ 250 $ 253
959
Investment Dealers 2.9%
PaineWebber Group, Sr. Notes,
7.625%, 2/15/14 250 250
Salomon Brothers, MTN, 7.59%, 1/28/00 200 207
457
Lodging 3.5%
Courtyard by Marriott II, Sr. Secured Notes,
10.75%, 2/1/08 50 53
La Quinta Inns, Sr. Notes, 7.25%, 3/15/04 500 499
552
Manufacturing 2.2%
American Standard, Sr. Deb.,
11.375%, 5/15/04 100 108
Coltec Industries, Sr. Sub. Notes,
10.25%, 4/1/02 150 160
International Knife & Saw, Sr. Sub. Notes, (144a),
11.375%, 11/15/06 75 77
345
Media and Communications 3.1%
News America Holdings, Sr. Deb.,
7.75%, 1/20/24 500 490
490
Savings and Loan 0.7%
BF Saul REIT, Sr. Secured Notes,
11.625%, 4/1/02 100 108
108
Service 2.0%
Coinmach, Sr. Notes, 11.75%, 11/15/05 150 161
Host Marriott Travel Plazas, Sr. Notes,
9.50%, 5/15/05 150 155
316
Supermarkets 1.0%
Vons Companies, Sr. Sub. Notes,
9.625%, 4/1/02 150 157
157
Textiles and Apparel 2.4%
Dominion Textile USA, Gtd. Sr. Notes,
9.25%, 4/1/06 150 153
Synthetic Industries, Sr. Sub. Deb.,
12.75%, 12/1/02 100 110
Westpoint Stevens, Sr. Notes,
8.75%, 12/15/01 100 103
366
Transportation 1.7%
Delta Air Lines, ETC, 10.00%, 5/17/10 146 182
Sea Containers Ltd., Sr. Sub. Deb.,
12.50%, 12/1/04 $ 70 $ 77
259
Total Corporate Bonds and Notes
(Cost $14,083) 14,303
EQUITY AND CONVERTIBLE SECURITIES 0.8%
Savings and Loan 0.8%
First Nationwide Bank Federal Savings,
Conv. Pfd. Stock 1 114
Total Equity and Convertible Securities
(Cost $117) 114
ASSET-BACKED SECURITIES 4.0%
Airlines 4.0%
Airplane Pass Through Trust,
10.875%, 3/15/19 100 112
Continental Airlines
PTC
6.94%, 10/15/13 250 253
7.82%, 4/15/15 250 261
Total Asset-Backed Securities (Cost $601) 626
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 0.6%
U.S. Government Guaranteed Obligations 0.6%
Government National Mortgage Assn.
I, 9.50%, 8/15/16 64 69
II, 10.50%, 2/20/19 21 24
Total U.S. Government
Mortgage-Backed Securities (Cost $91) 93
COMMERCIAL PAPER 1.1%
Investments in Commercial Paper
through a joint account,
5.70 - 5.90%, 12/2/96 176 176
Total Commercial Paper (Cost $176) 176
Total Investments in Securities
98.3% of Net Assets (Cost $15,068) $15,312
Other Assets Less Liabilities 265
NET ASSETS $15,577
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 8
Accumulated net realized gain/loss -
net of distributions (99)
Net unrealized gain (loss) 244
Paid-in-capital applicable to 1,543,574 shares
of $0.0001 par value capital stock outstanding;
1,000,000,000 shares authorized 15,424
NET ASSETS $15,577
NET ASSET VALUE PER SHARE $ 10.09
ETC Equipment Trust Certificate
MTN Medium Term Note
PTC Pass-through Certificate
REIT Real Estate Investment Trust
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at year-end amounts to
6.7% of net assets.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Corporate Income Fund
Unaudited
Statement of Operations
In thousands
6 Months
Ended
11/30/96
Investment Income
Interest and dividend income $ 569
Expenses
Custody and accounting 50
Shareholder servicing 26
Registration 15
Legal and audit 9
Prospectus and shareholder reports 6
Organization 5
Directors 3
Miscellaneous 2
Reimbursed by Manager (61)
Total expenses 55
Net investment income 514
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities (72)
Change in net unrealized gain or loss on securities 811
Net realized and unrealized gain (loss) 739
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,253
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Corporate Income Fund
Unaudited
Statement of Changes in Net Assets
In thousands
6 Months Year
Ended Ended
11/30/96 5/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 514 $ 309
Net realized gain (loss) (72) (27)
Change in net unrealized gain or loss 811 (567)
Increase (decrease) in net assets
from operations 1,253 (285)
Distributions to shareholders
Net investment income (514) (307)
Capital share transactions*
Shares sold 5,268 14,825
Distributions reinvested 382 257
Shares redeemed (3,273) (2,129)
Increase (decrease) in net assets
from capital share transactions 2,377 12,953
Net Assets
Increase (decrease) during period 3,116 12,361
Beginning of period 12,461 100
End of period $15,577 $12,461
*Share information
Shares sold 542 1,483
Distributions reinvested 39 26
Shares redeemed (338) (218)
Increase (decrease) in shares outstanding 243 1,291
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Corporate Income Fund
Unaudited November 30, 1996
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price Corporate Income Fund, Inc., (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company and commenced operations on October 31, 1995.
Valuation Debt securities are generally traded in the over-the-counter
market. Investments in securities originally issued with maturities of one
year or more are stated at fair value as furnished by dealers who make markets
in such securities or by an independent pricing service, which considers yield
or price of bonds of comparable quality, coupon, maturity, and type, as well
as prices quoted by dealers who make markets in such securities. Securities
with original maturities of less than one year are stated at fair value, which
is determined by using a matrix system that establishes a value for each
security based on money market yields.
Equity securities listed or regularly traded on a securities exchange are
valued at the last quoted sales price at the time the valuations are made. A
security which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such
security. Listed securities not traded on a particular day and securities
regularly traded in the over-the-counter market are valued at the mean of the
latest bid and asked prices.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Premiums and Discounts Premiums and discounts on debt securities, other than
mortgage-backed securities, are amortized for both financial reporting and tax
purposes. Premiums and discounts on mortgage-backed securities are recognized
upon principal repayment as gain or loss for financial reporting purposes and
as ordinary income for tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles.
Note 2 - Investment Transactions
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Noninvestment-Grade Debt Securities At November 30, 1996, the fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or higher
interest rates could adversely affect the liquidity or value, or both, of such
securities because such events could lessen the ability of issuers to make
principal and interest payments.
Commercial Paper Joint Account The fund, and other affiliated funds, may
transfer uninvested cash into a commercial paper joint account, the daily
aggregate balance of which is invested in high-grade commercial paper. All
securities purchased by the joint account satisfy the fund's criteria as to
quality, yield, and liquidity.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. government securities, aggregated $5,345,000 and $2,731,000,
respectively, for the six months ended November 30, 1996.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
At November 30, 1996, the aggregate cost of investments for federal income
tax and financial reporting purposes was $15,068,000, and net unrealized gain
aggregated $244,000, of which $332,000 related to appreciated investments and
$88,000 to depreciated investments.
Note 4 - Related Party Transactions
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management
fee. The fee is computed daily and paid monthly, and consisting of an
individual fund fee equal to 0.15% of average daily net assets and a group
fee. The group fee is based on the combined assets of certain mutual funds
sponsored by the manager or Rowe Price-Fleming International, Inc. (the
group). The group fee rate ranges from 0.48% for the first $1 billion of
assets to 0.305% for assets in excess of $50 billion. At November 30, 1996,
and for the six months then ended, the effective annual group fee rate was
0.33%. The fund pays a pro-rata share of the group fee based on the ratio of
its net assets to those of the group.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through May 31, 1997, which would cause the
fund's ratio of expenses to average net assets to exceed 0.80%. Thereafter,
through May 31, 1999, the fund is required to reimburse the manager for these
expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing the fund's ratio
of expenses to average net assets to exceed 0.80%. Pursuant to this agreement,
$33,000 of management fees were not accrued by the fund for the six months
ended November 30, 1996, and $61,000 of other expenses were borne by the
manager. Additionally, $79,000 of unaccrued fees and expenses related to a
prior period are subject to reimbursement through May 31, 1999.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and
maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc., provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $55,000 for the six months
ended November 30, 1996, of which $10,000 was payable at period-end.
For yield, price, last transaction, current balance or to conduct
transactions, 24 hours, 7 days a week, call Tele*Access(registered trademark):
1-800-638-2587 toll free
For assistance with your existing fund account, call: Shareholder Service
Center 1-800-225-5132 toll free
625-6500 Baltimore area
To open a Discount Brokerage account or obtain information, call:
1-800-638-5660 toll free
Internet address: http://www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price Corporate
Income Fund.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
Invest With Confidence
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor RPRTCIF 11/30/96
APPENDIX
Chart 1 - Interest Rate Levels - Interest Rate Levels chart showing yields of
BBB-rated corporate bonds and 10-year Treasuries from 11/30/95 through
11/30/96.
Chart 2 - Quality Diversification - Quality diversification pie chart showing
A-rated and above 19%, BBB 53%, BB 17%, B 10%, Convertible Preferred Stock 1%.
Chart 3 - Corporate Income Fund - a line chart showing the cumulative growth
of $10,000 invested in the Corporate Income Fund from inception compared with
$10,000 invested in a broad-based index and average over the same period.
