-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, oE1RCgQZK0xlDKWg4ZsIgekEJ8oukHyiWTArZj+IG1qwfKB+AEeEpXshvz5FLgtQ h2yZoGCiv7plu+pJaHr2VQ== 0000900092-94-000423.txt : 19940819 0000900092-94-000423.hdr.sgml : 19940819 ACCESSION NUMBER: 0000900092-94-000423 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000225635 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 132896246 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02688 FILM NUMBER: 94544870 BUSINESS ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543 BUSINESS PHONE: 6092822026 FORMER COMPANY: FORMER CONFORMED NAME: ONE LIBERTY MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19780622 N-30D 1 ANNUAL REPORT MERRILL LYNCH MUNICIPAL BOND FUND, INC. FUND LOGO Annual Report June 30, 1994 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Merrill Lynch Municipal Bond Fund, Inc. Box 9011 Princeton, NJ 08543-9011 MERRILL LYNCH MUNICIPAL BOND FUND, INC. Officers and Directors Arthur Zeikel, President and Director Ronald W. Forbes, Director Cynthia A. Montgomery, Director Charles C. Reilly, Director Kevin A. Ryan, Director Richard R. West, Director Terry K. Glenn, Executive Vice President Vincent R. Giordano, Senior Vice President Donald C. Burke, Vice President Kenneth A. Jacob, Vice President Gerald M. Richard, Treasurer Mark B. Goldfus, Secretary Custodian The Bank of New York 110 Washington Street New York, New York 10286 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, Florida 32246-6484 (800) 637-3863 TO OUR SHAREHOLDERS The expectation of increasing inflationary pressures and higher interest rates initially heightened investor concerns and increased financial market volatility during the June quarter. However, by the quarter's close, it was the weakness of the US dollar in foreign exchange markets that dominated the financial news and prolonged stock and bond market declines. The US dollar's weakness relative to other major currencies reflects the deteriorating US trade deficit and widening net long-term capital outflows. In 1993, an expanding US economy and recession in other industrial countries led to a higher level of imports and weaker export growth, widening the US trade deficit further. In addition, global investors favored non-US dollar denominated assets throughout 1993, which has further depressed the dollar's value. This trend is not improving significantly thus far in 1994 since foreign inflows into US capital markets continue to decline, although US investors are investing outside of the United States to a lesser degree. Over the long term, if the economies of the United States' major trading partners expand (improving the prospects for US export growth), the outlook for the US dollar is likely to improve. In the near term, central banks have attempt- ed to reverse the dollar's decline through currency market intervention. These efforts have met with limited success thus far, giving rise to the concern that the Federal Reserve Board will be forced to continue to raise short-term interest rates to attract investment capital back to the United States and bolster the dollar's value. However, further interest rate increases may jeopardize the US economic expansion. In the weeks ahead, investors will continue to assess economic data and inflationary trends as they focus on the US dollar in order to gauge whether further increases in short-term interest rates are imminent. The Municipal Market During the three months ended June 30, 1994, tax-exempt bond yields exhibited moderate volatility as yields fluctuated between 6.20% and 6.60%, as measured by the Bond Buyer Revenue Index. The yield on newly issued municipal bonds maturing in 30 years began at 6.39% on March 31 and ended approximately 17 basis points (0.17%) higher at 6.56% by the end of June. Yields on seasoned municipal revenue issues rose by over 20 basis points in sympathy with the rise in US Treasury bond yields. By the end of June, yields on US Treasury securities had risen by over 53 basis points to 7.61%. Long-term tax-exempt interest rates moved within a moderate interest rate range throughout the June quarter. On a weekly basis, municipal bond yields fluctuated by as much as 15 basis points as investors shifted their focus between the rapid economic growth in the first quarter of 1994 with the relatively low inflation numbers released by the US Treasury Department. Following the Federal Reserve Board's interest rate increases in February, municipal bond prices eroded in concert with taxable bond prices as investors began to sell securities in anticipation of further interest rate increases. As the Federal Reserve Board continued to raise short-term interest rates in subsequent months, municipal bond yields continued to rise throughout the quarter to 6.60% in mid-May. For the remainder of the second quarter, interest rates meandered in a narrow range as the Federal Reserve Board sat on the sidelines and waited for more data to determine if the economy was indeed slowing because of the recent rise in interest rates. The magnitude of the rise in tax-exempt bond yields the past six months has not been seen since 1987 when municipal bond yields rose 250 basis points from March to October of that year. It is very important to note that the municipal bond price declines during the last six months were much different than the 1987 episode. Recent price declines have largely been the result of consistent and insistent selling pressures over the last four months. In the 1987 period, the tax-exempt bond market was much more volatile as investors sought to liquidate positions without much concern to fundamental value. The recent price deterioration has been orderly and the municipal bond market's liquidity and integrity have not been challenged or jeopardized. To a large extent, the municipal bond market has continued to be supported by its strong technical position. New-issue volume for the last six months has been approximately $89 billion. This represents a decline of approximately 40% versus the comparable period a year earlier. This decline has been even more pronounced over the last three months when only $38 billion in long-term securities were issued, representing over a 53% decline in the issuance level from a year ago. This decline has been expected and discussed in earlier shareholder reports. This reduced issuance has minimized potential selling pressures in recent months as institutional investors have been wary of selling appreciable amounts of securities that they may be unable to replace later this year at any price level. We expect this decline in new bond issuance to continue this year and into 1995. Despite recent price declines, tax-exempt securities remain an attractive investment. After the recent yield increases, longer- term municipal securities yielded approximately 86% of comparable US Treasury issues. Purchasers of these municipal bonds also accrue substantial after-tax yield advantages. With prevailing estimates of 1994 inflation at no more than 3%--4%, real after- tax rates easily compensate longer-term investors for much of the price volatility recently experienced. We continue to look for municipal bond yields to decline later this year and into 1995 as inflationary pressures remain low and as the domestic economy is further slowed by the impact of higher interest rates. If this scenario unfolds, currently available tax-exempt products should generate attractive returns for long-term investors. Portfolio Strategy During the June quarter, the Insured and National Portfolios became less aggressively invested than at any time during the previous 12 months. Rising interest rates, improving economic data, and a weakening of the US dollar in the currency markets prompted this slightly defensive investment strategy. In anticipation of this, we raised the Portfolios' cash reserve positions to 5%--10% of net assets. These cash positions will be used to selectively purchase securities at adjusted levels. This contrasts with a relatively aggressive portfolio strategy during the previous year when our cash positions were minimal or fully invested. During the fiscal year, the primary emphasis has been to provide a competitive level of tax-exempt income. As a result, the Portfolios are invested in long-term municipal securities which meet our credit standards and which are well diversified both geographically and by industry. During the June quarter, the cash position of the Limited Maturity Portfolio was reduced from approximately 15% to 5% by the end of May. This was done after the Federal Reserve Board's last round of tightenings on May 17 in an effort to lock in higher yields in the belief that monetary policy would remain steady for the immediate future until a clearer picture emerges as to the strength of the economy. Over the course of the fiscal year in the Limited Maturity Portfolio, we maintained a concentration in A-rated or better securities, together with a modest average portfolio maturity and cash position. This was successfully done in an effort to limit fluctuations of the Portfolio's net asset value in periods of interest rate volatility. We appreciate your ongoing interest in Merrill Lynch Municipal Bond Fund, Inc., and we look forward to assisting you with your financial needs in the months and years to come. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Vincent R. Giordano) Vincent R. Giordano Senior Vice President and Portfolio Manager (Kenneth A. Jacob) Kenneth A. Jacob Vice President and Portfolio Manager July 29, 1994 PERFORMANCE DATA None of the past results shown should be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Recent Performance Results*
12 Month 3 Month 6/30/94 3/31/94 6/30/93 % Change %Change Insured Portfolio Class A Shares $ 7.88 $ 7.93 $ 8.64 -6.88%(1) -0.63% Insured Portfolio Class B Shares 7.87 7.93 8.63 -6.89(1) -0.76 National Portfolio Class A Shares 10.08 10.11 11.02 -7.22(2) -0.30 National Portfolio Class B Shares 10.07 10.11 11.02 -7.31(2) -0.40 Limited Maturity Portfolio Class A Shares 9.87 9.90 10.01 -1.40 -0.30 Limited Maturity Portfolio Class B Shares 9.87 9.90 10.01 -1.40 -0.30 Insured Portfolio Class A Shares--Total Return -1.08(3) +0.71(4) Insured Portfolio Class B Shares--Total Return -1.81(5) +0.42(6) National Portfolio Class A Shares--Total Return -0.47(7) +1.16(8) National Portfolio Class B Shares--Total Return -1.39(9) +0.80(10) Limited Maturity Portfolio Class A Shares--Total Return +2.30(11) +0.60(12) Limited Maturity Portfolio Class B Shares--Total Return +1.98(13) +0.56(14) Insured Portfolio Class A Shares--Standardized 30-day Yield 5.20% Insured Portfolio Class B Shares--Standardized 30-day Yield 4.65% National Portfolio Class A Shares--Standardized 30-day Yield 5.59% National Portfolio Class B Shares--Standardized 30-day Yield 5.05% Limited Maturity Portfolio Class A Shares--Standardized 30-day Yield 3.89% Limited Maturity Portfolio Class B Shares--Standardized 30-day Yield 3.56% *Investment results shown for the 3-month and 12-month periods are before the deduction of any sales charges. (1)Percent change includes reinvestment of $0.181 per share capital gains distributions. (2)Percent change includes reinvestment of $0.157 per share capital gains distributions. (3)Percent change includes reinvestment of $0.503 per share ordinary income dividends and $0.181 per share capital gains distributions. (4)Percent change includes reinvestment of $0.097 per share ordinary income dividends. (5)Percent change includes reinvestment of $0.441 per share ordinary income dividends and $0.181 per share capital gains distributions. (6)Percent change includes reinvestment of $0.084 per share ordinary income dividends. (7)Percent change includes reinvestment of $0.740 per share ordinary income dividends and $0.157 per share capital gains distributions. (8)Percent change includes reinvestment of $0.127 per share ordinary income dividends. (9)Percent change includes reinvestment of $0.661 per share ordinary income dividends and $0.157 per share capital gains distributions. (10)Percent change includes reinvestment of $0.111 per share ordinary income dividends. (11)Percent change includes reinvestment of $0.357 per share ordinary income dividends. (12)Percent change includes reinvestment of $0.079 per share ordinary income dividends. (13)Percent change includes reinvestment of $0.326 per share ordinary income dividends. (14)Percent change includes reinvestment of $0.075 per share ordinary income dividends.
Insured Portfolio-- Total Return Based on a $10,000 Investment GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1. Insured Portfolio-- Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/94 - 1.08% -5.03% Five Years Ended 6/30/94 + 7.49 +6.62 Ten Years Ended 6/30/94 +10.06 +9.61 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/94 -1.81% -5.44% Five Years Ended 6/30/94 +6.67 +6.67 Inception (10/21/88) through 6/30/94 +7.08 +7.08 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. PERFORMANCE DATA (continued) National Portfolio-- Total Return Based on a $10,000 Investment GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 2. National Portfolio-- Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/94 - 0.47% -4.45% Five Years Ended 6/30/94 + 7.55 +6.67 Ten Years Ended 6/30/94 +10.29 +9.84 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/94 -1.39% -5.03% Five Years Ended 6/30/94 +6.72 +6.72 Inception (10/21/88) through 6/30/94 +7.06 +7.06 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. Limited Maturity Portfolio-- Total Return Based on a $10,000 Investment GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 3. Limited Maturity Portfolio-- Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/94 +2.30% +1.53% Five Years Ended 6/30/94 +5.41 +5.25 Ten Years Ended 6/30/94 +5.80 +5.72 [FN] *Maximum sales charge is 0.75%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/94 +1.98% +0.99% Inception (11/2/92) through 6/30/94 +3.17 +3.17 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after one year. **Assuming payment of applicable contingent deferred sales charge. PERFORMANCE DATA (concluded) Performance Summary-- Class A Shares
1/1--12/31 Beginning/Ending Net Asset Value Dividends Paid* % Change** Period Limited Limited Limited Covered Insured National Maturity Insured National Maturity Insured National Maturity 10/77--12/77 $9.80/9.80 -- -- $ 0.09 -- -- + 0.94% -- -- 1978 9.80/8.97 -- -- 0.48 -- -- - 3.69 -- -- 1979++ 8.97/8.39 $ 9.60/ 9.60 $ 9.90/ 9.88 0.53 $ 0.11 $0.10 - 0.75 + 1.17% +0.86% 1980 8.39/6.86 9.60/ 8.54 9.88/ 9.74 0.60 0.79 0.64 -11.44 - 3.00 +5.13 1981 6.86/5.66 8.54/ 7.34 9.74/ 9.78 0.65 0.90 0.77 - 8.51 - 3.82 +8.64 1982 5.66/6.81 7.34/ 8.71 9.78/ 9.89 0.67 0.93 0.80 +33.96 +33.16 +9.67 1983 6.81/6.97 8.71/ 9.01 9.89/ 9.76 0.65 0.89 0.67 +12.41 +14.04 +5.57 1984 6.97/6.88 9.01/ 8.96 9.76/ 9.74 0.66 0.90 0.67 + 8.49 +10.00 +6.91 1985 6.88/7.53 8.96/ 9.86 9.74/ 9.75 0.64 0.88 0.63 +19.56 +20.76 +6.71 1986 7.53/8.18 9.86/10.67 9.75/ 9.90 0.61(1) 1.01(1) 0.56 +17.24 +19.08 +7.47 1987 8.18/7.56 10.67/ 9.76 9.90/ 9.68 0.68(2) 0.86(2) 0.53(2) + 0.86 - 0.40 +3.18 1988 7.56/7.79 9.76/10.11 9.68/ 9.68 0.57 0.76 0.56 +10.92 +11.71 +5.90 1989 7.79/7.94 10.11/10.25 9.68/ 9.74 0.57 0.75 0.59 + 9.49 + 9.11 +6.93 1990 7.94/7.86 10.25/10.09 9.74/ 9.72 0.61(3) 0.73 0.60 + 7.07 + 5.85 +6.11 1991 7.86/8.18 10.09/10.49 9.72/ 9.88 0.60(4) 0.82(4) 0.54 +12.07 +12.58 +7.39 1992 8.18/8.27 10.49/10.55 9.88/ 9.97 0.63(5) 0.89(5) 0.45 + 9.06 + 9.37 +5.62 1993 8.27/8.60 10.55/10.91 9.97/10.01 0.71(6) 0.94(6) 0.38 +12.85 +12.59 +4.30 1/1/94--6/30/94 8.60/7.88 10.91/10.08 10.01/ 9.87 0.21 0.28 0.17 - 5.82 - 4.89 +0.40 ------ ------ ----- Total $10.16 $12.44 $8.66 Cumulative total return as of 6/30/94: +204.36%** +284.14%** +140.82%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the payable date, and do not include sales charge; results would be lower if sales charge was included. ++For National and Limited Maturity Portfolios, period covered is from 11/30/79 to 12/31/79. (1)Includes capital gains of $0.011 and $0.178 for the Insured and National Portfolios, respectively. (2)Includes capital gains of $0.098, $0.073 and $0.012 for the Insured, National and Limited Maturity Portfolios, respectively. (3)Includes capital gains of $0.064 for the Insured Portfolio. (4)Includes capital gains of $0.058 and $0.060 for the Insured and National Portfolios, respectively. (5)Includes capital gains of $0.084 and $0.130 for the Insured and National Portfolios, respectively. (6)Includes capital gains of $0.181 and $0.157 for the Insured and National Portfolios, respectively.
Performance Summary-- Class B Shares
1/1--12/31 Beginning/Ending Net Asset Value Dividends Paid* % Change** Period Limited Limited Limited Covered Insured National Maturity*** Insured National Maturity*** Insured National Maturity*** 10/21/88--12/31/88 $7.81/7.78 $10.14/10.11 -- $0.11 $0.14 -- + 0.97% + 1.08% -- 1989 7.78/7.94 10.11/10.25 -- 0.51 0.67 -- + 8.81 + 8.29 -- 1990 7.94/7.86 10.25/10.09 -- 0.55(1) 0.66 -- + 6.28 + 5.05 -- 1991 7.86/8.17 10.09/10.49 -- 0.54(2) 0.75(2) -- +11.10 +11.74 -- 1992 8.17/8.27 10.49/10.55 $ 9.93/ 9.97 0.56(3) 0.81(3) $0.06 + 8.36 + 8.54 +1.05% 1993 8.27/8.59 10.55/10.90 9.97/10.01 0.64(4) 0.85(4) 0.35 +11.88 +11.65 +3.93 1/1/94--6/30/94 8.59/7.87 10.90/10.07 10.01/ 9.87 0.18 0.24 0.16 - 6.16 - 5.32 +0.27 ----- ----- ----- Total $3.09 $4.12 $0.57 Cumulative total return as of 6/30/94: +47.60%** +47.43%** +5.31%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the payable date, and do not reflect deduction of any sales charge; results would be lower if sales charge was deducted. ***Commenced operations on 11/02/92. (1)Includes capital gains of $0.064 for the Insured Portfolio. (2)Includes capital gains of $0.058 and $0.060 for the Insured and National Portfolios, respectively. (3)Includes capital gains of $0.084 and $0.130 for the Insured and National Portfolios, respectively. (4)Includes capital gains of $0.181 and $0.157 for the Insured and National Portfolios, respectively.
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list at right. AMT Alternative Minimum Tax (subject to) BAN Bond Anticipation Notes COP Certificates of Participation DATES Daily Adjustable Tax-Exempt Securities DDN Daily Demand Note EDA Economic Development Authority GO General Obligation Bonds HFA Housing Finance Authority IDA Industrial Development Authority IDR Industrial Development Revenue Bonds LT Limited Tax M/F Multi-Family PCR Pollution Control Revenue Bonds RAN Revenue Anticipation Notes SAVRS Select Auction Variable Rate Securities S/F Single-Family TAN Tax Anticipation Notes TRAN Tax Revenue Anticipation Notes UPDATES Unit Price Daily Adjustable Tax-Exempt Securities UT Unlimited Tax VRDN Variable Rate Demand Notes SCHEDULE OF INVESTMENTS (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Alabama--0.8% Auburn University, Alabama, Revenue Refunding Bonds(e): AAA Aaa $ 5,925 (Athletic Project), 5.25% due 4/01/2010 $ 5,430 AAA Aaa 5,000 (General Fee), 5.25% due 6/01/2013 4,429 AAA Aaa 1,500 (Housing and Dining), 5.25% due 6/01/2012 1,344 AAA Aaa 1,250 Mobile, Alabama, GO, Refunding and Capital Improvement Bonds, 10.875% due 11/01/2007(e) 1,712 AAA Aaa 7,465 Montgomery, Alabama, Baptist Medical Center, Special Care Facilities Financing Authority Revenue Bonds, Series A, 5.75% due 1/01/2022(h) 6,850 Alaska--0.7% Kenai Peninsula Borough, Alaska, GO(b): AAA Aaa 6,450 8.40% due 1/01/2000 7,394 AAA Aaa 8,460 8.40% due 1/01/2001 9,841
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Arizona--2.1% AAA Aaa $ 4,000 Arizona State Municipal Financing Program, COP, Series 34, 7.25% due 8/01/2009(g) $ 4,491 AAA Aaa 3,800 Maricopa County, Arizona, IDA, Health Facilities Revenue Bonds (Saint Joseph's Care Center Project), Series A, 7.75% due 7/01/2020(e) 4,241 Maricopa County, Arizona, IDA, Hospital Facilities Revenue Bonds (Samaritan Health Services Hospital): AAA Aaa 4,000 Refunding, Series A, 7% due 12/01/2013(e) 4,318 A1+ VMIG1 500 VRDN, Series B2, 2.90% due 12/01/2008(f) 500 AAA Aaa 7,000 Maricopa County, Arizona, Unified School District No. 97 Revenue Bonds (Deer Valley Project), 1986 Series E, 10% due 7/01/2000(h) 8,685 Mesa, Arizona, IDA, Health Care Facilities Revenue Bonds (Western Health Network)(g): AAA Aaa 10,000 Refunding, Series A-2, 7.625% due 1/01/2013 10,902 AAA Aaa 7,340 Series A-1, 7.625% due 1/01/2019 8,104 Phoenix, Arizona, Street and Highway User, Revenue Refunding Bonds, Series A(h)(j): AAA Aaa 5,000 5.63% due 7/01/2012 1,527 AAA Aaa 5,000 5.63% due 7/01/2013 1,421 AAA Aaa 7,000 Tucson, Arizona, Refunding Bonds, 4.90% due 7/01/2013(h) 5,937 AAA Aaa 5,250 University of Arizona Medical Center Corporation, Hospital Revenue Refunding Bonds, 5% due 7/01/2021(e) 4,311 California--6.5% AAA Aaa 5,000 Anaheim, California, Public Financing Authority Revenue Bonds, 2nd Series-Electric Utility, San Juan 4, 5.75% due 10/01/2022(h) 4,571 AAA Aaa 6,000 Anaheim, California, Public Financing Authority, Revenue Refunding Bonds (Electric Utility Projects), 5.625% due 10/01/2022(e) 5,388 AAA Aaa 8,000 Central Coast Water Authority, California, Revenue Bonds (State Water Project Regional Facilities), 6.60% due 10/01/2022(b) 8,160 AAA Aaa 12,000 Fresno, California, Sewer Revenue Bonds, Series A-1, 6.25% due 9/01/2014(b) 12,067 AAA Aaa 2,415 Los Angeles, California, Regional Airports Improvement Corporation, Lease Revenue Bonds (Los Angeles International Airport), AMT, 6.50% due 1/01/2012(h) 2,459 Los Angeles, California, Wastewater System Revenue Bonds(e): AAA Aaa 5,000 Series A, 5.70% due 6/01/2013 4,671 AAA Aaa 5,000 Series C, 5.60% due 6/01/2015 4,569 AAA Aaa 20,000 Series C, 5.60% due 6/01/2020 18,033 NR NR 28,800 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds (Proposition C--Second Series), VRDN, Series A, 2.60% due 7/01/2020(e)(f) 28,800 AAA Aaa 6,000 Los Angeles County, California, Transportation Commission, Sales Tax Revenue Bonds, Series A, 6.75% due 7/01/2001(a)(h) 6,643 A1+ VMIG1 11,100 Mountain View, California, M/F Housing Revenue Bonds (Villa Mariposa Project), VRDN, Series A, 2.40% due 3/01/2017(f) 11,100 AAA Aaa 17,600 Northern California Power Agency, Multiple Capital Facilities Revenue Bonds, 6.53% due 8/01/2025(a)(e) 18,932 University of California, Revenue Bonds (Multiple Purpose Projects)(b): AAA Aaa 4,650 Series C, 5% due 9/01/2012 3,983 AAA Aaa 12,075 Series C, 5.25% due 9/01/2016 10,415 AAA Aaa 33,500 Series C, 5% due 9/01/2023 27,074 AAA Aaa 5,000 Series D, 6.375% due 9/01/2024 4,996 AAA Aaa 9,000 West and Central Basin Financing Authority, California, Revenue Bonds, 6.125% due 8/01/2022(b) 8,707 Colorado--0.0% AAA Aaa 1,000 Colorado Health Facilities Authority, Revenue Refunding Bonds (Rose Medical Center Project), 5.125% due 8/15/2021(e) 844 Connecticut--0.4% AAA Aaa 1,325 Connecticut State Health and Educational Facilities Authority Revenue Bonds (New Britain General Hospital), Series B, 6% due 7/01/2024(b) 1,261 AAA Aaa 3,500 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Saint Francis Hospital and Medical Center), Series C, 5% due 7/01/2023(h) 2,850 AAA Aaa 625 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds (Fairfield University), Series G, 5% due 7/01/2018(e) 518 AAA Aaa 8,400 Connecticut State Municipal Electric Energy Cooperative Power Supply System, Revenue Refunding Bonds, Series A, 5% due 1/01/2018(e) 7,003 AAA Aaa 885 New Britain Connecticut, UT, 5% due 2/01/2014(e) 769 Delaware--0.3% AAA Aaa 6,000 Delaware EDA, PCR, Refunding (Delmarva Power and Light Company), Series B, 7.30% due 3/01/2014(e) 6,552 AAA Aaa 3,750 Delaware State Health Facilities Authority, Crossover Revenue Refunding Bonds (Delaware Medical Center), 7% due 10/01/2015(e) 4,019 District of District of Columbia, Hospital Revenue Refunding Bonds (National Columbia--0.7% Rehabilitation Hospital-Medlantic), Series A(e): AAA Aaa 7,000 7.10% due 11/01/2011 7,552 AAA Aaa 9,250 7.125% due 11/01/2019 9,985 Florida--8.0% AAA Aaa 2,735 Altamonte Springs, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health/Sunbelt), Series A, 7% due 11/15/2014(b) 2,954 A1+ VMIG1 23,200 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN, 3% due 10/05/2022(f)(h) 23,200 Florida Municipal Power Agency Revenue Bonds: AAA Aaa 22,710 (All Requirement Power Supply Project), 5.10% due 10/01/2025(b) 18,804 AAA Aaa 5,000 Refunding (Saint Lucie Project), 5.25% due 10/01/2021(h) 4,378 AAA Aaa 4,840 Florida Municipal Power Agency, Revenue Refunding Bonds (All Requirement Power Supply Project), 6.25% due 10/01/2019(a)(b) 5,180 AAA Aaa 5,000 Florida State Division, Board of Finance, Department of General Services Revenue Bonds (Department of Natural Resource Preservation), Series 2000-A, 6.75% due 7/01/2013 5,237 Florida Turnpike Authority, Turnpike Revenue Bonds, Series A: AAA Aaa 2,935 9.50% due 7/01/2001(b) 3,658 AAA Aaa 4,500 5% due 7/01/2015(h) 3,838 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding and Improvement Bonds (Baptist Medical Center Project): AAA Aaa 500 11.50% due 10/01/2012 783 AAA Aaa 26,500 Series A, 7.30% due 6/01/2019(e) 28,721 AAA Aaa 8,750 Jacksonville, Florida, Port Authority Revenue Bonds, AMT, 7.875% due 11/01/2018(g) 9,536 AAA Aaa 20,000 Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds, 6.60% due 4/01/2020(e) 20,531 AAA Aaa 16,700 Martin County, Florida, PCR, Refunding (Florida Power and Light Company Project), 7.30% due 7/01/2020(e) 18,125 AAA Aaa 11,640 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled Hospital Loan), Series B, 7.875% due 12/01/2025(g) 12,513 AAA Aaa 3,950 Orange County, Florida, HFA, Mortgage Revenue Refunding Bonds, Series A, 7.60% due 1/01/2024(h) 4,077 AAA Aaa 4,495 Orange County, Florida, Sales Tax Revenue Bonds, 6.125% due 1/01/2019(h) 4,392 Palm Beach County, Florida, Criminal Justice Facilities, Revenue Refunding Bonds(h): AAA Aaa 5,000 5.375% due 6/01/2008 4,757 AAA Aaa 11,985 5.375% due 6/01/2009 11,320 AAA Aaa 4,935 5.375% due 6/01/2010 4,597 AAA Aaa 34,690 Reedy Creek, Florida, Improvement District, Florida Utilities Revenue Refunding Bonds, Series 1, 5% due 10/01/2019(e) 28,984 AAA Aaa 3,500 Saint Lucie County, Florida, Sales Tax, Revenue Refunding Bonds, 5% due 10/01/2023(h) 2,891 AAA Aaa 5,700 South Broward, Florida, Hospital District Revenue Bonds, 6.61% due 5/01/2021(b) 5,857 AAA Aaa 2,000 Tampa, Florida, Water and Sewer System Revenue Bonds, Series A, 7.25% due 10/01/2016(b) 2,159 AAA Aaa 2,240 West Coast Regional Water Supply Authority, Florida, Capital Improvement Revenue Bonds (Hillsborough County Project), 10.40% due 10/01/2010(a)(b) 3,215
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Georgia--3.4% AAA Aaa $ 5,000 Douglasville-Douglas County, Georgia, Water and Sewer Authority, Water and Sewer Revenue Bonds, 5.625% due 6/01/2015(b) $ 4,638 AAA Aaa 20,000 Georgia Municipal Electric Authority Revenue Bonds, Series EE, 7% due 1/01/2025(b) 21,945 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Refunding Bonds(b): AAA Aaa 1,000 Series A, 5.125% due 7/01/2016 862 AAA Aaa 4,990 Series A, 5.125% due 7/01/2019 4,235 AAA Aaa 10,500 Series A, 5.125% due 7/01/2020 8,885 AAA Aaa 18,605 Series P, 6% due 7/01/2013 18,092 AAA Aaa 28,165 Series P, 6.25% due 7/01/2020 27,879 AAA Aaa 9,000 Municipal Electric Authority, Georgia, Special Obligation Bonds (Fifth Crossover Series, Project One), 6.40% due 1/01/2013(b) 9,157 Hawaii--2.3% Hawaii Airport System Revenue Bonds, AMT: AAA Aaa 21,795 7.30% due 7/01/2020(b) 23,420 AAA Aaa 23,200 Second Series, 7.50% due 7/01/2020(h) 25,160 Hawaii County, Hawaii, Revenue Refunding and Improvement Bonds, Series A, UT(h): AAA Aaa 1,000 5.60% due 5/01/2012 941 AAA Aaa 1,000 5.60% due 5/01/2013 939 Hawaii Department of Budget and Finance, Special Purpose Mortgage Revenue Bonds (Hawaiian Electric Company), AMT(e): AAA Aaa 4,340 7.625% due 12/01/2018 4,873 AAA Aaa 5,000 Series C, 7.375% due 12/01/2020 5,421 AAA Aaa 4,500 Hawaii Harbor Capital Improvement Revenue Bonds, AMT, 7% due 7/01/2017(e) 4,716 Illinois--5.5% AAA Aaa 25,000 Chicago, Illinois, Public Building Commission Revenue Bonds (Community College District No. 508), Series B, 8.75% due 1/01/2007(c)(g) 27,636 AAA Aaa 25,000 Chicago, Illinois, Public Building Commission Revenue Bonds, Series A, 7.125% due 1/01/2015(c)(e) 27,756 AAA Aaa 20,000 Cook County, Illinois, GO, UT, Series A, 6.60% due 11/15/2022(e) 20,207 AAA Aaa 11,000 Evergreen Park, Illinois, Hospital Facility Revenue Refunding Bonds (Little Company of Mary Hospital), 7.75% due 2/15/2009(e) 12,021 Illinois Health Facilities Authority Revenue Bonds: AAA Aaa 3,250 (Elmhurst Memorial Hospital), 6.625% due 1/01/2022(h) 3,292 AAA Aaa 4,000 (Methodist Health Project), 6.903% due 5/01/2021(b) 4,133 AAA Aaa 5,500 (Northern Illinois Medical Center), 7.875% due 9/01/2014(b) 6,035 AAA Aaa 16,000 (Rush-Presbyterian Saint Luke's Medical Center), 6.80% due 10/01/2024(e) 16,439 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds, Series A(h)(j)(k): AAA Aaa 7,000 5.67% due 6/15/2010 2,521 AAA Aaa 5,000 5.70% due 6/15/2011 1,675 AAA Aaa 27,215 5.75% due 6/15/2013 8,017 AAA Aaa 25,845 5.75% due 6/15/2014 7,001 AAA Aaa 1,940 6.10% due 6/15/2015 492 AAA Aaa 9,750 6.10% due 6/15/2016 2,317 AAA Aaa 8,400 6.50% due 6/15/2027 8,388 AAA Aaa 3,025 Northwest Suburban Municipal Joint Action Water Agency, Illinois, Water Supply System Revenue Refunding Bonds, Series A, 5.90% due 5/01/2015(e) 2,845 Indiana--0.8% AAA Aaa 6,725 Goshen-Chandler, Indiana, School Building Corporation, First Mortgage Revenue Refunding Bonds, UT, 5.75% due 1/15/2010(e) 6,439 AAA Aaa 2,470 Indiana Employment Development Commission, Environmental Revenue Bonds (Public Service Company of Indiana), AMT, 7.50% due 3/15/2015(e) 2,693 AAA Aaa 4,040 Indianapolis, Indiana, Local Public Improvement Bond Bank, Series A, 7.90% due 2/01/2002(a)(g) 4,662 AAA Aaa 2,000 Jasper County, Indiana, PCR, Refunding (Northern Indiana Public Service), 7.10% due 7/01/2017(e) 2,140 AAA Aaa 3,830 Purdue University, Indiana, University Revenue Bonds (Purdue University Dormitory System), Series B, 6% due 7/01/2001(a)(b) 4,057 AAA Aaa 3,550 Rockport, Indiana, PCR, Refunding (Indiana-Michigan Power), Series B, 7.60% due 3/01/2016(h) 3,904 Iowa--0.4% AAA Aaa 5,000 Des Moines, Iowa, Parking Facilities Revenue Bonds, 7.25% due 7/01/2015(h) 5,413 Iowa Finance Authority, Hospital Facilities Revenue Refunding Bonds (Allen Memorial Hospital), Series A(b): AAA Aaa 3,500 5.50% due 2/15/2013 3,188 AAA Aaa 2,100 5.60% due 2/15/2020 1,865 Kentucky--0.9% AAA Aaa 4,500 Boone County, Kentucky, PCR, Refunding (Cincinnati Gas and Electric), 5.50% due 1/01/2024 3,977 AAA Aaa 11,470 Kentucky Development Finance Authority, Hospital Revenue Refunding and Improvement Bonds (Saint Elizabeth Medical Center), Series A, 9% due 11/01/2000(h) 13,748 Owensboro, Kentucky, Electric Light and Power Revenue Bonds, Series B(b)(j)(k): AAA Aaa 1,000 5.70% due 1/01/2011 346 AAA Aaa 5,000 5.90% due 1/01/2014 1,407 AAA Aaa 9,125 5.80% due 1/01/2015 2,410 AAA Aaa 7,675 5.90% due 1/01/2016 1,900 AAA Aaa 3,500 5.72% due 1/01/2019 713 Louisiana--0.4% AAA Aaa 8,700 Louisiana Public Facilities Authority, Health and Education Capital Facilities Revenue Bonds (Our Lady of the Lake Regional Medical Center), Series C, 8.20% due 12/01/2015(g) 9,776 Maryland--1.4% Baltimore, Maryland, Revenue Refunding Bonds (Water Projects), Series A(h): AAA Aaa 10,000 6.25% due 7/01/2002(a) 10,677 AAA Aaa 9,125 5% due 7/01/2024 7,482 Maryland Health and Higher Educational Facilities Authority Revenue Bonds (University of Maryland Medical Systems) (h): AAA Aaa 2,250 Series A, 7% due 7/01/2001(a) 2,505 AAA Aaa 4,400 Series B, 7% due 7/01/2022 4,948 Maryland Health and Higher Educational Facilities Authority, Revenue Refunding Bonds: AAA Aaa 6,325 (Greater Baltimore Medical Center), 5% due 7/01/2013(h) 5,409 AAA Aaa 7,500 (Sinai Hospital Project), 5.25% due 7/01/2019(b) 6,415 Massachusetts--1.6% AAA Aaa 3,175 Massachusetts Bay Transportation Authority, Massachusetts General Transportation System Revenue Bonds, Series A, 7.10% due 3/01/1999(a)(g) 3,491 AAA Aaa 13,000 Massachusetts Bay Transportation Authority Revenue Bonds, COP, Series A, 7.65% due 8/01/2015(i) 14,451 AAA Aaa 5,505 Massachusetts Educational Loan Authority Revenue Bonds, AMT, Issue D, Series A, 7.25% due 1/01/2009(e) 5,717 Massachusetts Health and Educational Facilities Authority Revenue Bonds: AAA Aaa 2,355 (Massachusetts General Hospital), Refunding, Series G, 5.25% due 7/01/2023(b) 1,986 AAA Aaa 6,200 (Saint Elizabeth Hospital), 6.56% due 8/15/2021(i) 6,413 AAA Aaa 3,250 Massachusetts Port Authority Revenue Bonds, 13% due 7/01/2013(c) 5,382 AAA Aaa 5,500 Massachusetts State Industrial Finance Agency Revenue Bonds (Brandeis University), Series C, 6.80% due 10/01/2019(e) 5,670 AAA Aaa 4,500 Massachusetts State Turnpike Authority Turnpike Revenue Refunding Bonds, Series A, 5.125% due 1/01/2023(h) 3,765 Michigan--3.6% AAA Aaa 10,500 Chippewa Valley, Michigan, Schools Revenue Refunding Bonds, 5% due 5/01/2021(h) 8,695 AAA Aaa 10,000 Grand Rapids, Michigan, Water Supply Systems, Revenue Refunding Bonds, 5.75% due 1/01/2018(h) 9,318 A1+ VMIG1 700 Michigan Higher Education Student Loan Authority, Revenue Refunding Bonds, VRDN, AMT, Series X11-B, 2.65% due 10/01/2013(b)(f) 700 AAA Aaa 26,120 Michigan State Trunk Line, Series A, 5.80% due 11/15/2024 (h) 24,326 Monroe County, Michigan, PCR (Detroit Edison Company Project), AMT: AAA Aaa 16,500 Project 1, 7.65% due 9/01/2020(h) 18,159 AAA Aaa 13,255 Series CC, 7.50% due 12/01/2019(b) 14,696 AAA Aaa 9,745 Series I-B, 7.50% due 9/01/2019(b) 10,771 AAA Aaa 15,000 Western Michigan University Revenue Bonds, Series A, 6.50% due 7/15/2001(a)(b) 16,328
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Minnesota--0.2% AAA Aaa $ 5,000 Northern Municipal Power Agency, Minnesota, Electric Systems, Revenue Refunding Bonds, Series A, 6% due 1/01/2019(b) $ 4,832 Mississippi--0.6% AAA Aaa 1,320 Harrison County, Mississippi, Wastewater Management District, Revenue Refunding Bonds, Wastewater Treatment Facilities, Series A, 8.50% due 2/01/2013(h) 1,656 AAA Aaa 1,750 Hinds County, Mississippi, Revenue Refunding Bonds (Methodist Hospital and Rehabilitation), 5.60% due 5/01/2012(b) 1,632 AAA Aaa 13,000 Mississippi Hospital Equipment and Facilities Authority, Revenue Refunding and Improvement Bonds (North Mississippi Health Services), 5.75% due 3/08/2016(b) 12,083 Montana--0.2% AAA Aaa 5,600 Montana Health Facilities Authority, Hospital Facilities Revenue Bonds (Deaconess Medical Center Project), SAVRS, Series A, 2.80% due 2/15/2016(b)(d) 5,600 Nevada--2.7% AAA Aaa 6,500 Clark County, Nevada, Airport Improvement Revenue Bonds, AMT, 8.125% due 7/01/2018(g) 7,307 Clark County, Nevada, Airport Revenue Bonds(a)(h): AAA Aaa 4,450 6.90% due 6/01/2009 4,871 AAA Aaa 5,590 6.25% due 6/01/2011 5,920 AAA VMIG1 200 Clark County, Nevada, Airport Revenue Refunding Bonds, Series A, VRDN, 2.85% due 7/01/2012(e)(f) 200 AAA Aaa 10,000 Clark County, Nevada, Passenger Facility Revenue Bonds (Las Vegas McCarran International Airport), Series A, 6% due 7/01/2022(b) 9,570 AAA Aaa 8,000 Henderson, Nevada, Health Care Facility Revenue Refunding Bonds (Catholic Healthcare), Series A, 5% due 7/01/2020(b) 6,529 Las Vegas, Nevada, Revenue Refunding Bonds(h): AAA Aaa 1,500 6.50% due 10/01/2007 1,554 AAA Aaa 2,665 6.50% due 10/01/2008 2,747 AAA Aaa 35,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power), AMT, 6.65% due 6/01/2017(e) 35,709 New Jersey--1.7% AAA Aaa 3,350 Cape May County, New Jersey, Industrial Pollution Control Financing Authority, Revenue Refunding Bonds (Atlantic City Electric Company), Series A, 6.80% due 3/01/2021(e) 3,666 AAA Aaa 4,750 Jersey City, New Jersey, Sewer Authority Revenue Refunding Bonds, 6.25% due 1/01/2014(b) 4,847 AAA Aaa 5,000 New Jersey EDA, Water Facilities, Revenue Refunding Bonds (Hackensack Water Company), Series A, 7% due 1/01/2019(b) 5,297 A1 VMIG1 4,000 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds, Series C, VRDN, 2.70% due 9/01/2024(e)(f) 4,000 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds (Home Buyer), AMT(e): AAA Aaa 7,530 Series B, 7.90% due 10/01/2022 7,784 AAA Aaa 17,470 Series D, 7.70% due 10/01/2029 18,028 NR VMIG1 5,800 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series D, VRDN, 2.60% due 1/01/2018(f)(h) 5,800 New York--5.2% AAA Aaa 9,650 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds (Transportation Facilities), Series L, 7.50% due 7/01/2017(b) 10,571 New York City, New York, GO, Series I(b): AAA Aaa 2,645 7.25% due 8/15/2013 2,893 AAA Aaa 10,130 7.25% due 8/15/2016 11,012 AAA Aaa 4,505 UT, 7.25% due 8/15/2013 4,991 AAA Aaa 6,010 New York City, New York, Health and Hospital Authority, Local Government Revenue Refunding Bonds, Series A, 5.625% due 2/15/2013(b) 5,556 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: AAA Aaa 50,000 5.20% due 6/15/2008(d) 46,479 AAA Aaa 4,510 Series C, 6.20% due 6/15/2021(b) 4,423 AAA Aaa 4,000 Series F, 5.50% due 6/15/2023(e) 3,519 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds(h): AAA Aaa 12,075 Refunding, Series A, 5.75% due 6/15/2018 11,189 AAA Aaa 1,090 Series A, 6.75% due 6/15/2014 1,128 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, VRDN(f)(h): A1+ VMIG1 10,500 Series C, 3.30% due 6/15/2022 10,500 AAA VMIG1 500 Series C, 3.30% due 6/15/2023(g) 500 AAA VMIG1 6,100 Series G, 3.10% due 6/15/2024 6,100 New York City, New York, Series B, VRDN(f)(h): A1+ VMIG1 2,500 3.30% due 10/01/2020 2,500 A1+ VMIG1 3,200 3.30% due 10/01/2022 3,200 A1+ VMIG1 300 3.30% due 10/01/2021 300 New York State Medical Care Facilities Finance Agency Revenue Bonds (Mental Health Services): AAA Aaa 3,085 Series C, 7.375% due 8/15/2019(e) 3,375 AAA Aaa 11,500 Series D, 5.90% due 8/15/2022(b) 10,824 Suffolk County, New York, Water Authority, Waterworks Revenue Refunding Bonds(b): AAA Aaa 1,235 7.375% due 6/01/2012 1,358 AAA Aaa 7,345 5.75% due 6/01/2013 6,979 AAA Aaa 1,100 Series C, 5.75% due 6/01/2002(a) 1,143 North Carolina--0.8% AAA VMIG1 100 Charlotte, North Carolina, Airport Revenue Refunding Bonds, VRDN, Series A, 2.55% due 7/01/2016(e)(f) 100 AAA Aaa 27,855 North Carolina Municipal Power Agency, Electric Revenue Refunding Bonds (Catawba Electric Project No. 1), 5% due 1/01/2018(e) 23,221 Ohio--1.3% AAA Aaa 12,000 Clermont County, Ohio, Hospital Facilities Revenue Refunding Bonds (Mercy Health Systems), Series A, 7.50% due 9/01/2019(b) 13,299 AAA Aaa 2,250 Cleveland, Ohio, Revenue Refunding Bonds, 5.375% due 9/01/2009(b) 2,124 AAA Aaa 6,700 Ohio Municipal Electric Generation Agency, Joint Ventures, COP, 5.376% due 2/15/2013(b) 6,101 AAA Aaa 15,000 Ohio State Air Quality Development Authority, Revenue Refunding Bonds, PCR, Series B, Ohio Edison, 5.625% due 11/15/2029(b) 13,571 Oklahoma--1.3% AAA Aaa 7,500 Oklahoma Industrial Authority, Hospital Revenue Bonds (Baptist Medical Center), Series A, 7% due 8/15/2014(b) 7,946 AAA Aaa 5,000 Tulsa, Oklahoma, Airports Revenue Bonds, 7.50% due 6/01/2008(e) 5,455 AAA Aaa 21,560 Tulsa, Oklahoma, Industrial Authority, Hospital Revenue Bonds (Saint John's Medical Center, Inc.), 7.25% due 12/01/2009(e) 23,788 Oregon--0.2% AAA Aaa 1,200 Jefferson County, Oregon (School District No 509j), 5.50% due 6/15/2013(i) 1,113 AAA Aaa 4,000 Port Portland, Oregon, Portland International Airport, Airport Revenue Bonds, Series 7-B, AMT, 7.10% due 7/01/2021(e) 4,273 Pennsylvania--8.8% AAA Aaa 1,500 Allegheny County, Pennsylvania, Airport Revenue Bonds (Greater Pittsburgh International Airport), AMT, Series C, 7% due 1/01/2018(e) 1,579 AAA Aaa 1,750 Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds (Mercy Hospital of Pittsburgh), 6.75% due 4/01/2021(b) 1,796 AAA Aaa 6,900 Beaver County, Pennsylvania, Hospital Authority Revenue Bonds (Medical Center of Beaver, Pennsylvania Incorporated), Series A, 6.25% due 7/01/2022(b) 6,705 AAA Aaa 3,365 Beaver County, Pennsylvania, IDA, PCR, Refunding (Ohio Edison Company), Series A, 7% due 6/01/2021(h) 3,576 AAA Aaa 3,610 Berks County, Pennsylvania, Municipal Revenue Bonds (Reading Hospital Medical Center Project), 5.70% due 10/01/2014(e) 3,356 AAA Aaa 6,500 Bethlehem, Pennsylvania, Water Authority Revenue Refunding Bonds, 5.20% due 11/15/2021(e) 5,498 AAA Aaa 9,000 Bucks County Pennsylvania, IDA, Revenue Bonds (Grand View Hospital Project), 7% due 7/01/2001(a)(b) 10,033 AAA Aaa 10,000 Lehigh County, Pennsylvania, Revenue Refunding Bonds, UT, 5.125% due 11/15/2011(h) 8,788 AAA Aaa 3,400 Monroeville, Pennsylvania, Hospital Authority, Hospital Revenue Bonds (Forbes Health System), Series B, 7.35% due 10/01/2015(g) 3,656 AAA Aaa 8,000 Montgomery County, Pennsylvania, Higher Education and Health Authority, Hospital Revenue Bonds (Abington Memorial Hospital), 5.125% due 6/01/2014(b) 6,880
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Pennsylvania AAA Aaa $ 9,725 Pennsylvania Convention Center Authority Revenue Bonds, Series A, (concluded) 6.70% due 9/01/2016(c)(h) $10,391 Pennsylvania Higher Educational Assistance Agency, Student Loan Revenue Bonds, AMT: AAA Aaa 34,000 6.03% due 3/01/2022(b) 31,750 AAA Aaa 20,000 6.71% due 9/03/2026(b) 20,437 AAA Aaa 16,000 7.437% due 3/01/2020(e) 16,940 Pennsylvania State Higher Educational Facilities Authority, College and University Revenue Bonds: AAA Aaa 1,500 (Bryn Mawr College), 6.50% due 12/01/2009(h) 1,555 AAA Aaa 4,250 (Temple University), First Series, 6.50% due 4/01/2021(e) 4,278 AAA Aaa 20,390 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series L, 6.25% due 6/01/2011(1) 20,499 Philadelphia, Pennsylvania, Airport Revenue Bonds, AMT(e): AAA Aaa 8,150 7.75% due 6/15/2015 8,996 AAA Aaa 24,000 7.375% due 6/15/2018 25,967 AAA Aaa 5,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020(c)(e) 5,588 AAA Aaa 5,750 Philadelphia, Pennsylvania, Parking Authority, Airport Parking Revenue Bonds, 7.375% due 9/01/2018(b) 6,254 AAA Aaa 26,800 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 5.01% due 6/15/2004(h) 26,068 Pittsburgh, Pennsylvania, Revenue Refunding Bonds, UT, Series A(b): AAA Aaa 1,200 5.10% due 9/01/2005 1,145 AAA Aaa 1,000 5.20% due 9/01/2006 947 AAA Aaa 1,000 5.40% due 9/01/2008 944 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System Revenue Refunding Bonds, Series A(h): AAA Aaa 5,000 6.50% due 9/01/2001(a) 5,447 AAA Aaa 9,000 4.75% due 9/01/2016 7,217 AAA Aaa 7,500 University Area Joint Authority, Pennsylvania, Sewer Revenue Refunding Bonds, 4.75% due 11/01/2020(e) 5,902 Rhode Island--2.4% Providence, Rhode Island, GO, UT(e): AAA Aaa 1,540 6.75% due 1/15/2008 1,635 AAA Aaa 1,540 6.75% due 1/15/2009 1,631 AAA Aaa 1,540 6.75% due 1/15/2010 1,627 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A(i): AAA Aaa 35,000 5.75% due 8/01/2019 32,174 AAA Aaa 6,100 6.625% due 8/01/2002(a) 6,680 AAA Aaa 21,600 Rhode Island Health and Educational Building Corporation Revenue Bonds (Rhode Island Hospital), 6.71% due 8/15/2021(h) 22,336 South Carolina-- AAA Aaa 7,000 Charleston, South Carolina, Waterworks and Sewer Revenue Refunding 6.8% Improvement Bonds, 6% due 1/01/2016(b) 6,754 AAA Aaa 5,000 Florence County, South Carolina, Hospital Revenue Bonds (McLeod Regional Medical Center Project), 6.75% due 11/01/2020(h) 5,137 AAA Aaa 4,000 Georgetown County, South Carolina, Hospital Facilities Revenue Refunding Bonds (Georgetown Memorial Hospital), Series B, 7.25% due 11/01/2017(b) 4,413 AAA Aaa 1,750 Greenville, South Carolina, Hospital System, Hospital Facilities Revenue Bonds, Series A, 7.50% due 5/01/2016(h) 1,866 AAA Aaa 2,410 Myrtle Beach, South Carolina, Water and Sewer System Revenue Bonds, 5.25% due 3/01/2020(e) 2,063 AAA Aaa 3,500 Pickens and Richland Counties, South Carolina, Hospital Facilities Revenue Bonds (Baptist Hospital), Series A, 7% due 8/01/2001(a)(b) 3,896 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds: AAA Aaa 9,150 6.25% due 1/01/2021(h) 9,103 AAA Aaa 12,235 5% due 1/01/2022(h) 9,964 AAA Aaa 10,000 6.30% due 1/01/2022(e) 9,859 AAA Aaa 15,750 Series A, 7.40% due 1/01/2018(b) 17,057 AAA Aaa 29,100 South Carolina Jobs, EDA, Hospital Facilities Revenue Bonds, 5.41% due 8/01/2021(b) 24,802 South Carolina State Public Service Authority, Revenue Refunding Bonds (Santee Cooper): AAA Aaa 6,000 Series A, 5.50% due 7/01/2011(b) 5,568 AAA Aaa 37,805 Series A, 5.50% due 7/01/2021(e) 33,195 AAA Aaa 17,090 Series A, 6.375% due 7/01/2021(b) 16,970 AAA Aaa 4,000 Series B, 6.10% due 7/01/2027(b) 3,804 AAA Aaa 2,750 Series C, 5% due 1/01/2014(b) 2,324 AAA Aaa 18,500 Series C, 5% due 1/01/2018(h) 15,257 AAA Aaa 25,400 Series C, 5% due 1/01/2025(h) 20,485 Tennessee--0.2% AAA Aaa 1,905 Jackson, Tennessee, Water and Sewer System Revenue Bonds, 10.375% due 7/01/2012 2,205 AAA Aaa 2,200 Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Crossover Revenue Refunding Bonds (Mercy Health Care System), Series A, 7.60% due 9/01/2019 2,465 Texas--13.8% Austin, Texas, Utility System Revenue Bonds(e): AAA Aaa 11,190 9.25% due 11/15/2004(a)(g) 14,245 AAA Aaa 5,250 Refunding, Series B, 5.25% due 5/15/2018 4,510 AAA Aaa 2,000 Bexar, Texas, Metropolitan Water District, Water Works System Revenue Bonds, 5% due 5/01/2019(b) 1,650 Brazos River Authority, Texas, PCR, Refunding (Texas Utilities Electric Company Project), AMT: AAA Aaa 6,000 6.50% due 12/01/2027(b) 6,013 AAA Aaa 12,000 Series B, 6.625% due 6/01/2022(h) 12,134 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston Light and Power): AAA Aaa 12,700 5.60% due 12/01/2017(e) 11,446 AAA Aaa 13,900 Series B, 7.20% due 12/01/2018(h) 15,159 AAA Aaa 20,000 Brownsville, Texas, Utility System Revenue Refunding Bonds, 6.25% due 9/01/2014(e) 20,066 A1+ VMIG1 600 Harris County, Texas, Health Facilities Development Corporation, Special Facilities, Revenue Bonds (Texas Medical Center Project), VRDN, 3.40% due 2/15/2022(e)(f) 600 AAA Aaa 5,000 Harris County, Texas, Hospital District Mortgage, Revenue Refunding Bonds, 7.40% due 2/15/2010(b) 5,616 AAA Aaa 1,695 Harris County, Texas, Toll Road Revenue Bonds, Series A, 6.50% due 8/15/2011 1,734 Harris County, Texas, Toll Road Senior Lien Revenue Bonds: AAA Aaa 6,045 5.30% due 8/15/2013(b) 5,378 AAA Aaa 2,750 6.50% due 8/15/2017(b) 2,770 AAA Aaa 42,065 5.375% due 8/15/2020(h) 36,624 AAA Aaa 4,000 5.50% due 8/15/2021(h) 3,539 AAA Aaa 10,305 Series A, 6.50% due 8/15/2002(a)(h) 11,218 AAA Aaa 15,250 Series A, 6.50% due 8/15/2002(a)(b) 16,622 AAA Aaa 8,390 Houston, Texas, Independent School District Refunding and School House Bonds, 5.65% due 8/15/2009(b)(j)(k) 3,198 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Series C(b)(j)(k): AAA Aaa 11,250 5.70% due 12/01/2009 4,258 AAA Aaa 17,700 5.70% due 12/01/2010 6,192 AAA Aaa 45,960 5.70% due 12/01/2011 15,005 AAA Aaa 53,850 5.78% due 12/01/2012 16,429 AAA Aaa 3,500 Houston, Texas, Water Conveyance System COP, Series J, 6.25% due 12/15/2013(b) 3,527 Lower Colorado River Authority, Texas, Revenue Refunding Bonds: AAA Aaa 5,000 5.15% due 1/01/2021 4,196 AAA Aaa 27,500 Fifth Supplemental Series, 5.25% due 1/01/2015(e) 24,029 AAA Aaa 4,415 Series B, 5.60% due 1/01/2009(c)(e)(j) 1,771 AAA Aaa 650 Series B, 7% due 1/01/2001(a)(b) 718 Matagorda County, Texas, Navigation District No. 1, PCR, AMT: AAA Aaa 5,000 (Central Power and Light Company Project), 7.50% due 3/01/2020(b) 5,485 AAA Aaa 8,250 (Houston Light and Power), Series D, 7.60% due 10/01/2019(h) 9,063 Matagorda County, Texas, Navigation District No. 1, Revenue Refunding Bonds (Houston Light and Power): AAA Aaa 11,800 Series A, 6.70% due 3/01/2027(b) 12,034 AAA Aaa 26,305 Series C, 7.125% due 7/01/2019(h) 28,361 AAA Aaa 6,470 Series E, 7.20% due 12/01/2018(h) 7,031
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Texas AAA Aaa $ 15,000 Southwest Higher Education Authority Incorporated, Texas, Revenue (concluded) Refunding Bonds (Southern Methodist University), Series B, 6.25% due 10/01/2022(h) $ 14,591 Tarrant County, Texas, Water Control and Improvement District No. 001, Water Revenue Refunding Bonds(b): AAA Aaa 5,000 4.50% due 3/01/2011 4,074 AAA Aaa 5,000 4.75% due 3/01/2013 4,113 Texas Municipal Power Agency, Revenue Refunding Bonds: AAA Aaa 10,000 5.50% due 9/01/2010(e) 9,388 AAA Aaa 33,885 6.10% due 9/01/2014(e)(j) 9,127 AAA Aaa 2,900 Series A, 6.75% due 9/01/2012(b) 3,008 Texas State Public Finance Authority, Building Revenue Capital Appreciation Refunding Bonds(e)(j): AAA Aaa 7,000 5.80% due 2/01/2009 2,761 AAA Aaa 2,890 6.10% due 2/01/2011 995 AAA Aaa 8,500 5.81% due 2/01/2012 2,736 Texas Turnpike Authority, Turnpike Revenue Refunding Bonds (Dallas North Thruway)(b): AAA Aaa 3,230 4.75% due 1/01/2011 2,733 AAA Aaa 2,085 4.75% due 1/01/2013 1,720 AAA Aaa 3,725 4.75% due 1/01/2014 3,042 AAA Aaa 25,875 Trinity River Authority, Texas, Regional Wastewater System, Revenue Refunding Bonds, Series A, 5% due 8/01/2016(b) 21,688 Utah--1.5% AAA Aaa 2,805 Salt Lake City, Utah, Hospital Revenue Bonds (Holy Cross Health System Corporation--Holy Cross Hospital), 7.375% due 12/01/2018(h) 3,020 AAA Aaa 28,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospital, Incorporated), 6.75% due 5/15/2020(b) 28,766 AA- Aaa 1,000 Uintah County, Utah, PCR (Deseret Generation and Transmission Cooperative-National Rural Utilities Company), Series 1984 F-2, 10.50% due 6/15/2001(a) 1,298 AAA Aaa 2,650 Utah Board of Regents, Student Loan Revenue Bonds, AMT, Series F, 7.45% due 11/01/2008(b) 2,775 A1+ VMIG1 3,100 Utah Board of Regents, Student Loan Revenue Bonds, AMT, VRDN, Series C, 2.60% due 11/01/2013(b)(f) 3,100 Utah Municipal Power Agency, Electric System Revenue Refunding Bonds, Series A(h): AAA Aaa 3,120 5.50% due 7/01/2012 2,850 AAA Aaa 3,295 5.50% due 7/01/2013 2,988 Vermont--0.7% AAA Aaa 18,950 Vermont HFA Revenue Bonds (Home Mortgage Purchase), AMT, Series B, 7.60% due 12/01/2024(e) 19,578 Virginia--1.6% AAA Aaa 16,800 Prince William County, Virginia, Service Authority, Water and Sewer System, Revenue Refunding Bonds, 5% due 7/01/2021(h) 13,758 AAA Aaa 19,020 Roanoke, Virginia, IDA, Hospital Revenue Bonds (Roanoke Memorial Hospital Projects), Series A, 5% due 7/01/2024(e) 15,359 AAA Aaa 11,000 Upper Occoquan Sewer Authority, Virginia, Regional Sewer Revenue Bonds, 6% due 7/01/2001(a)(e) 11,498 AAA Aaa 5,000 Winchester, Virginia, IDA, Hospital Facilities Revenue Refunding Bonds (Winchester Medical Center--First Mortgage), SAVRS, 3.08% due 1/21/2014(b)(d) 5,000 Washington--4.2% Seattle, Washington, Municipality, Metropolitan Seattle, Sewer Revenue Bonds, Series W(e): AAA Aaa 2,465 6.25% due 1/01/2022 2,405 AAA Aaa 4,485 6.25% due 1/01/2023 4,374 Seattle, Washington, Municipality, Metropolitan Seattle, Sewer Revenue Refunding Bonds(h): AAA Aaa 8,155 Series X, 5.30% due 1/01/2008 7,632 AAA Aaa 9,605 Series X, 5.375% due 1/01/2009 8,915 AAA Aaa 9,755 Series X, 5.40% due 1/01/2010 8,966 AAA Aaa 10,960 Series X, 5.40% due 1/01/2011 10,020 AAA Aaa 6,560 Series Y, 5.70% due 1/01/2015 6,082 AAA Aaa 3,315 Series Y, 5.70% due 1/01/2016 3,050 AAA Aaa 10,000 Seattle, Washington, Solid Waste Utility, Revenue Refunding Bonds, Series A, 6.875% due 5/01/2009(g) 10,518 Tacoma, Washington, Sewer Revenue Bonds(e): AAA Aaa 3,425 7.625% due 12/01/2006 3,741 AAA Aaa 4,075 7.625% due 12/01/2007 4,450 AAA Aaa 4,400 7.625% due 12/01/2008 4,805 AAA Aaa 3,250 University of Washington Revenue Bonds (Housing and Dining), 7% due 12/01/2021(e) 3,486 AAA Aaa 7,000 Washington Health Care Facilities Authority Revenue Bonds (Southwest Washington Hospital-Vancouver), 7.125% due 10/01/2019(g) 7,600 D NR 719 Washington Public Power Supply System, Generating Facilities Revenue Bonds (Nuclear Project Numbers 4 & 5), Series D, 12.50% due 7/01/2010 719 Washington Public Power Supply System, Revenue Refunding Bonds(e): AAA Aaa 5,750 Project No. 1, 6.25% due 7/01/2017 5,606 AAA Aaa 12,380 Project No. 2, Series A, 5.70% due 7/01/2008 12,054 AAA Aaa 2,530 Washington Public Power Supply Systems, Revenue Refunding Bonds, Project No. 1, Series A, 5.70% due 7/01/2017(e) 2,301 AAA Aaa 10,000 Washington Public Power Supply System, Revenue Refunding Bonds, Project No. 1, Series B, 5.60% due 7/01/2015(e) 9,072 West Virginia--0.8% AAA Aaa 9,270 Kanawha County, West Virginia, Building Commission Revenue Refunding Bonds (Charleston Area Medical Center Inc.), Series A, 7.10% due 6/01/2013(e) 9,976 AAA Aaa 7,650 Putnam County, West Virginia, PCR, Refunding (Appalachian Power Company Project), Series D, 5.45% due 6/01/2019(b) 6,690 AAA Aaa 5,600 West Virginia School Building Authority Revenue Bonds (Capital Improvement), Series B, 6.75% due 7/01/2010(e) 5,810 Wisconsin--1.5% AAA Aaa 7,000 Superior, Wisconsin, Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021(h) 7,590 Wisconsin Health and Educational Facilities Authority Revenue Bonds: AAA Aaa 1,500 (Saint Lukes Medical Center Project), 7.10% due 8/15/2019(e) 1,594 AAA Aaa 5,750 (Waukesha Memorial Hospital), Series B, 7.25% due 8/15/2019(b) 6,134 Wisconsin Public Power System Incorporated, Power Supply System Revenue Bonds, Series A(b): AAA Aaa 18,485 5.25% due 7/01/2021 15,644 AAA Aaa 6,500 6.875% due 7/01/2001(a) 7,211 Total Investments (Cost--$2,690,286)--96.3% 2,702,602 Other Assets Less Liabilities--3.7% 105,332 ---------- Net Assets--100.0% $2,807,934 ========== (a)Prerefunded. (b)AMBAC Insured. (c)Escrowed to maturity. (d)The interest rate is subject to change periodically and inversely based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1994. (e)MBIA Insured. (f)The interest rate is subject to change periodically based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1994. (g)BIG Insured. (h)FGIC Insured. (i)FSA Insured. (j)Principal only securities which are traded on a discount basis and are amortized to maturity. (k)The interest rate shown represents the yield to maturity. Ratings of issues shown have not been audited by Deloitte & Touche. See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Alaska--1.0% Valdez, Alaska, Marine Terminal Revenue Refunding Bonds: AA- A1 $ 5,000 (British Petroleum Pipeline), Series B, 7% due 12/01/2025 $ 5,229 AA- A1 11,250 (Sohio Pipeline), 7.125% due 12/01/2025 11,819 Arizona--6.2% AA Aa 5,000 Arizona State Transportation Board, Highway Revenue Refunding Bonds, Series A, 5% due 7/01/2010 4,467 A A3 19,500 Greenlee County, Arizona, IDA, PCR, Revenue Refunding (Phelps Dodge Corporation Project), 5.45% due 6/01/2009 18,070 NR P1+ 3,100 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Vista Ventana Apartments Project), VRDN, AMT, Series D, 2.60% due 6/01/2034 (a) 3,100 Phoenix, Arizona, Civic Improvement Corporation, Wastewater System, Lease Revenue Bonds: A NR 4,000 6.125% due 7/01/2003(k) 4,236 A A1 20,865 Refunding, 5% due 7/01/2018 16,807 A A1 6,930 Refunding, 4.75% due 7/01/2023 5,240 A1+ VMIG1 7,500 Phoenix, Arizona, VRDN, Series 1, 3.30% due 6/01/2018(a) 7,500 AA Aa 49,400 Salt River Project, Arizona, Agricultural Improvement and Power District, Electric System Revenue Bonds, 5.050% due 1/01/2011(m) 43,354 Arkansas--0.0% AAA NR 500 Arkansas State, Development Finance Authority, S/F Mortgage Revenue Bonds, Mortgage Back Securities Program, Series D, 5.65% due 6/01/2016(g) 452 NR NR 520 Hot Springs, Arkansas, Water Revenue Refunding Bonds, 5.60% due 9/01/2008 501 California--2.6% SP1 MIG1++ 5,100 California State, RAN, Series B, 3.50% due 7/26/1994 5,102 NR NR 4,000 Long Beach, California, GO, Special Tax Community Facilities, District No. 3, 6.375% due 9/01/2023 3,613 Los Angeles, California, Department of Water and Power, Electric Plant Revenue Bonds, Second Issue: AA Aa 5,000 4.75% due 10/15/2020 3,904 AA Aa 10,000 Crossover Refunding, 4.75% due 11/15/2019 7,869 SP1+ MIG2 20,000 Los Angeles County, California, Revenue Bonds, TRAN, 4.50% due 6/30/1995 20,154 A1+ VMIG1 3,900 Mountain View, California, M/F Housing Revenue Bonds (Villa Mariposa Project), VRDN, Series A, 2.40% due 3/01/2017(a) 3,900 Colorado--2.0% Boulder County, Colorado, Hospital Revenue Refunding Bonds (Longmont United Hospital Project): BBB+ Baa1 2,000 5.80% due 12/01/2013 1,790 BBB+ Baa1 1,000 5.875% due 12/01/2020 872 NR VMIG1 4,700 Colorado Student Obligation Bond Authority, Student Loan Revenue Bonds, VRDN, Series A, 2.30% due 3/01/2024(a) 4,700 Denver, Colorado, City and County Airport Revenue Bonds, AMT: BB Baa 8,570 Series A, 8% due 11/15/2025 8,600 BB Baa 1,310 Series B, 7.25% due 11/15/2007 1,282 BB Baa 3,000 Series B, 7.25% due 11/15/2023 2,765 BB Baa 5,650 Series C, 6.75% due 11/15/2022 4,952 BB Baa 7,840 Series D, 7.75% due 11/15/2021 7,716 Connecticut--1.4% AA+ Aa 2,500 Connecticut State Clean Water Fund Revenue Bonds, 5.80% due 6/01/2016 2,358 AA- Aa 4,900 Connecticut State, GO, Revenue Refunding Bonds, UT, Series B, 5.50% due 3/15/2012 4,599 A NR 750 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Taft School Issue),Series B, 5.40% due 7/01/2020 641 AA Aa 5,000 Connecticut State, HFA, Housing Mortgage Finance Program, Series B, 6.30% due 5/15/2024 4,856 AA- A 6,550 Connecticut State Resource Recovery Authority Revenue Bonds (American Refuse Fuel), AMT, Series A, 8% due 11/15/2015 7,164 AA- A1 1,000 Connecticut State Special Tax Obligation Revenue Bonds (Trans- portation Infrastructure), Series C, 5% due 10/01/2013 857 AA Aa 1,280 Danbury, Connecticut, UT, 4.50% due 2/01/2014 1,018 AAA Aaa 1,000 South Central Connecticut, Regional Water Authority, Water System Revenue Bonds, 11th Series, 5.75% due 8/01/2012(f) 964 Westport, Connecticut, UT: NR Aaa 580 5.70% due 6/15/2011 565 NR Aaa 580 5.75% due 6/15/2012 566 NR Aaa 580 5.75% due 6/15/2013 564 NR Aaa 580 5.75% due 6/15/2014 561 Delaware--0.5% BBB A1 7,500 Delaware State Health Facilities Authority Revenue Bonds (Beebe Medical Center Project), 8.50% due 6/01/2016 8,125 District of AA- A1 7,500 District of Columbia Revenue Bonds (Georgetown University), 6.56% due Columbia--0.5% 4/01/2022 7,463 Florida--5.0% NR Aaa 10,580 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022(g) 10,872 Florida State, Board of Education, Capital Outlay Refunding, UT, Series B: NR Aa 23,400 5.125% due 6/01/2008 21,485 NR Aa 21,600 5.125% due 6/01/2009 19,535 AA- Aa2 5,000 Hillborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project), Series 1991, 7.875% due 8/01/2021 5,562 AA Aa1 7,240 Jacksonville, Florida, Electric Authority Revenue Refunding Bonds (Saint John's River Power Park System), Issue 2, Series 9, 5.25% due 10/01/2021 6,155 NR NR 2,700 Leesburg, Florida, Hospital Capital Improvement Revenue Bonds (Leesburg Regional Medical Center Project), Series 1991-A, 7.50% due 7/01/2002(k) 3,107 AAA NR 4,800 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021(g) 4,919 A1 VMIG1 6,085 Pinellas County, Florida, Health Facilities Authority Revenue Refunding Bonds (Pooled Hospital Loan Program), DATES, VRDN, 3.40% due 12/01/2015(a)(f) 6,085 AA- Aa 5,000 Saint Petersburg, Florida, Public Utility, Revenue Bonds, 5.60% due 10/01/2018 4,539 Georgia--1.7% AA- Aa 30,705 Atlanta, Georgia, Water and Sewer Revenue Refunding Bonds, 4.75% due 1/01/2023 23,806 AA Aa 5,500 Fulton County, Georgia, School District, UT, 5.625% due 1/01/2021 4,972 Idaho--0.2% AA NR 2,775 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT, Series E, 7.875% due 7/01/2024(b) 2,864 Illinois--6.0% Chicago, Illinois, Gas Supply Revenue Bonds (Peoples Gas, Light & Coke Company Project), AMT, Series A: AA- Aa3 8,000 8.10% due 5/05/2020 8,950 AA- Aa3 12,450 5.75% due 12/01/2023 10,981 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Bonds (United Airlines, Inc.): BB Baa2 4,895 AMT, Series B, 8.95% due 5/01/2018 5,329 BB Baa2 14,330 Series 1984-B, 8.85% due 5/01/2018 15,642 AAA Aaa 5,015 Chicago, Illinois, Public Building Commission Revenue Bonds (Community College District No. 508), Series B, 8.75% due 1/01/2007(d)(i) 5,544 A1+ MIG1++ 8,200 Chicago, Illinois, Tender Notes, VRDN, Series B, 2.30% due 10/31/1995 (a) 8,200 BBB NR 3,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia College), 6.875% due 12/01/2017 3,003 Illinois Health Facilities Authority Revenue Bonds: AAA Aaa 3,000 (Methodist Health Project), 6.90% due 5/01/2021(c) 3,100 AAA Aaa 10,000 (Rush-Presbyterian Saint Luke's Medical Center), 6.80% due 10/01/2024(f) 10,274 A+ A1 5,905 Illinois Health Facilities Authority, Revenue Refunding Bonds (OSF Healthcare Systems), 6% due 11/15/2023 5,412 A+ Aa 11,500 Illinois Housing Development Authority, Residential Mortgage Revenue Bonds, AMT, 6.874% due 2/01/2018 11,493 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion Project), Series A(e)(j)(l): AAA Aaa 18,595 5.75% due 6/15/2015 4,718 AAA Aaa 26,250 5.75% due 6/15/2016 6,239 NR A1 4,000 Southwestern Illinois, Development Authority, Sewer Facilities Revenue Bonds (Monsanto Company Project), AMT, 7.30% due 7/15/2015 4,248
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Indiana--0.7% NR Baa1 $ 3,500 Indiana Health Facilities Financing Authority, Hospital Revenue Bonds (Riverview Hospital Project), 6.875% due 8/01/2017 $ 3,395 A+ A1 2,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 7.25% due 6/01/2015 2,239 A+ NR 5,000 Indianapolis, Indiana, Local Public Improvement Refunding Bond Bank, Series D, 6.75% due 2/01/2020 5,030 NR Aa 1,500 Marion County, Indiana, Hospital Authority, Hospital Facility Revenue Bonds (Daughters of Charity--Saint Vincent's Hospital Project), 10.125% due 11/01/2015 1,626 Iowa--0.6% NR NR 9,000 Iowa Financing Authority, Health Care Facilities Revenue Bonds (Mercy Health Initiatives Project), 9.95% due 7/01/2019 9,512 Kentucky--1.0% Owensboro, Kentucky, Electric Light and Power Revenue Bonds, Series B(c)(j)(l): AAA Aaa 6,100 5.72% due 1/01/2011 2,112 AAA Aaa 6,475 5.75% due 1/01/2012 2,096 AAA Aaa 2,750 5.75% due 1/01/2013 830 NR NR 4,500 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds (TJ International Project), AMT, 7% due 6/01/2024 4,444 AA Aa2 6,345 Trimble County, Kentucky, PCR (Louisville Gas and Electric Company), AMT, Series A, 7.625% due 11/01/2020 6,846 Louisiana--1.7% NR Ba1 24,000 Lake Charles, Louisiana, Harbor and Terminal District Port Facilities, Revenue Refunding Bonds (Trunkline LNG Company Project), 7.75% due 8/15/2022 25,525 BB- NR 3,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company Project), 7.50% due 7/01/2013 2,963 Maryland--1.5% AA- Aa 7,000 Maryland State Stadium Authority, Sports Facilities Lease Revenue Bonds, AMT, Series D, 7.60% due 12/15/2019 7,733 A+ A1 14,750 Montgomery County, Maryland, PCR, Refunding (Potomac Electric Power Company), 5.375% due 2/15/2024 12,700 NR Baa 2,850 Prince Georges County, Maryland, Hospital Revenue Bonds (Greater Southeast Healthcare Systems), 6.375% due 1/01/2023 2,635 Massachusetts-- AAA Aaa 6,000 Massachusetts Bay Transportation Authority Revenue Bonds, Series B, 5.6% 7.875% due 3/01/2001(a) 6,965 A+ A 4,000 Massachusetts Bay Transportation Authority Refunding Bonds, Series B, 6.20% due 3/01/2016 3,943 A+ A 20,000 Massachusetts State, Consolidated Loans, UT, Series B, 9.25% due 7/01/2000 24,051 Massachusetts State, Health and Educational Facilities Authority Revenue Bonds: A- NR 4,250 (Jordon Hospital), Series C, 6.875% due 10/01/2022 4,241 NR NR 9,600 (North Adams Regional Hospital), Series A, 9.625% due 7/01/2018 10,240 NR Baa 12,350 Massachusetts State, Health and Educational Facilities Authority, Revenue Refunding Bonds (New England Memorial Hospital), Series B, 6.25% due 7/01/2023 10,984 A1 VMIG1 4,000 Massachusetts State, Industrial Finance Agency Revenue Bonds, VRDN, 3.40% due 3/15/2004(a) 4,000 A+ A1 13,750 Massachusetts State, Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5% due 1/01/2020 11,315 A A 12,105 Massachusetts State, Water Resources Authority, Refunding, Series B, 5% due 3/01/2022 9,721 A A 6,985 Massachusetts State, Water Resources Authority, Series A, 5.75% due 12/01/2021 6,318 Michigan--5.3% A+ A 1,000 Marquette, Michigan, City Hospital Finance Authority, Hospital Revenue Refunding Bonds (Marquette General Hospital), Series C, 7.50% due 4/01/2019 1,063 AAA VMIG1 6,600 Michigan Higher Education Student Loan Authority Revenue Bonds, AMT, Series XII-F, 2.30% due 10/01/2020(a)(c) 6,600 Michigan State Building Authority Revenue Bonds: AA- A 3,000 Refunding, Series I, 6.25% due 10/01/2020 2,917 AA- A 14,000 Series II, 6.25% due 10/01/2020 13,611 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Detroit Medical Center): A- A 3,500 Refunding, Obligation Group, Series A, 7.50% due 8/15/2011 3,766 A- A 6,500 Refunding, Series A, 6.50% due 8/15/2018 6,285 A- A 19,585 Refunding, Series B, 5.75% due 8/15/2013 17,594 A- A 10,000 Refunding, Series B, 5.50% due 8/15/2023 8,437 AAA Aaa 7,365 Michigan State Trunk Line, GO, Series A, 5.67% due 10/01/2012 2,271 BBB Baa1 9,350 Monroe County, Michigan, PCR (Detroit Edison Project), AMT, Series A, 7.75% due 12/01/2019 10,056 Royal Oaks, Michigan, Hospital Financing Authority, Hospital Revenue Refunding Bonds (William Beaumont Hospital), Series G: AA Aa 3,250 5.50% due 11/15/2013 2,894 AA Aa 12,000 5.25% due 11/15/2019 10,017 West Ottowa, Michigan, Public School District, Revenue Refunding Bonds UT(e)(j)(1): AAA Aaa 5,275 5.85% due 5/01/2016 1,278 AAA Aaa 5,755 5.85% due 5/01/2017 1,306 Minnesota--1.2% AA+ NR 6,215 Minnesota State, HFA, S/F Mortgage Bonds, AMT, Series A, 7.45% due 7/01/2022(b) 6,436 AAA NR 9,255 Saint Paul, Minnesota, Housing and Redevelopment Authority, S/F Mortgage Revenue Refunding Bonds, Series C, 6.95% due 12/01/2031(g) 9,367 A+ A1 4,250 Southern Minnesota, Municipal Power Agency, Power Supply Systems, Revenue Refunding Bonds, Series A, 4.75% due 1/01/2016 3,416 Mississippi--0.9% BBB Baa 5,950 Lowndes County, Mississippi, Hospital Revenue Refunding Bonds (Golden Triangle Medical Center), 8.50% due 2/01/2010 6,446 Medical Center Educational Building Corporation, Mississippi, Revenue Bonds (University of Mississippi Medical Center Project): A- NR 1,000 5.65% due 12/01/2009 941 A- NR 1,500 5.80% due 12/01/2014 1,362 A- NR 5,000 5.90% due 12/01/2023 4,448 Missouri--0.9% BBB- NR 3,625 Joplin, Missouri, IDA, Hospital Facilities Revenue Refunding and Improvement Bonds (Tri-State Osteopathic), 8.25% due 12/15/2014 3,899 NR Baa1 6,150 Missouri State Health and Educational Facilities Authority, Health Facilities Revenue Refunding Bonds (Jefferson Memorial Hospital Association Project), 6% due 8/15/2023 5,275 A+ A1 4,000 Missouri State Regional Convention and Sports Complex Authority Refunding Bonds, Series A, 5.60% due 8/15/2017 3,533 St. Louis County, Missouri, Regional Convention and Sports Complex Authority Refunding Bonds, Series B: BBB+ A 2,575 5.50% due 8/15/2013 2,267 BBB+ A 4,760 5.75% due 8/15/2021 4,155 Missouri & BBB+ NR 11,400 Bi-State Development Agency, Missouri and Illinois, Metropolitan Illinois--0.9% No. 5, Revenue Refunding Bonds (American Commonwealth), No. 5, 7.75% due 6/01/2010 12,225 Montana--1.0% Forsyth, Montana, PCR, Refunding (The Montana Power Company): BBB+ Baa1 12,000 Project A, 6.125% due 5/01/2023 11,180 BBB+ Baa1 5,000 Series B, 5.90% due 12/01/2023 4,512 Nebraska--0.6% AAA Aaa 10,600 Nebraska Investment Finance Authority, S/F Mortgage Revenue Bonds, AMT, 7.631% due 9/10/2030(g) 11,037 New Hampshire--1.3% NR Baa1 7,065 New Hampshire Higher Educational and Health Facilities Authority Revenue Bonds (Saint Anselm College), 6.375% due 7/01/2023 6,721 A+ Aa 3,315 New Hampshire State, HFA, S/F Residential Mortgage Bonds, AMT, 7.90% due 7/01/2022 3,428 New Hampshire State, IDA, PCR (Public Service Co. of New Hampshire Project), AMT: BB+ Baa3 4,850 Series A, 7.65% due 5/01/2021 5,063 BB+ Baa3 6,500 Series C, 7.65% due 5/01/2021 6,792
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) New Jersey--2.3% New Jersey Building Authority, State Building Revenue Refunding Bonds: AA- Aa $ 15,000 5% due 6/15/2015 $12,888 AA- Aa 10,000 5% due 6/15/2018 8,381 NR NR 6,700 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Riverwood Center Issue), Series A, 9.90% due 7/01/2021 7,363 AA A 9,500 University Medicine and Dentistry of New Jersey, Revenue Bonds, Series C, 7.20% due 12/01/2019 10,331 New Mexico--0.7% BB Ba2 12,000 Farmington, New Mexico, PCR, Refunding (Public Service Company, San Juan Project), Series A, 6.40% due 8/15/2023 10,889 New York and Port Authority of New York and New Jersey, Consolidated Refunding New Jersey--1.1% Bonds: AA- A1 4,265 87th Series, 5.20% due 7/15/2012 3,797 AA- A1 3,705 87th Series, 5.25% due 7/15/2014 3,258 AA- A1 6,000 89th Series, 5.125% due 10/01/2021 4,985 AA- A1 8,000 91st Series, 5.20% due 11/15/2016 6,977 New York--15.4% A A 5,700 Battery Park City Authority, New York, Revenue Refunding Bonds (Junior Lien), Series A, 5.70% due 11/01/2023 5,005 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds (Commuter Facilities), Series 5: BBB Baa1 2,145 6.90% due 7/01/2006 2,247 BBB Baa1 5,000 7% due 7/01/2012 5,231 New York City, New York, GO, UT: A- Baa1 3,600 Series A, 7.75% due 8/15/2016 3,968 A- Baa1 4,065 Series A, 7.75% due 8/15/2017 4,481 A- Baa1 1,450 Series A, 8% due 8/15/2018 1,647 A-1 VMIG1 6,000 Series B, 3.25% due 9/01/1995(a) 6,000 A- Baa1 5,375 Series B, 8.25% due 6/01/2006 6,348 A- Baa1 2,700 Series B, 8.25% due 6/01/2007 3,200 A- Baa1 10,000 Series B, 7.75% due 2/01/2011 11,046 A- Baa1 4,500 Series B, 7.75% due 2/01/2012 4,953 A- Baa1 2,875 Series B, 7.75% due 2/01/2013 3,165 A- Baa1 1,650 Series B, 7.75% due 2/01/2014 1,816 A- Baa1 2,000 Series D, 7.70% due 2/01/2011 2,203 A- Baa1 3,575 Series D, Group C, 8% due 8/01/2015 4,058 A- Aaa 1,085 Series F, 8.25% due 11/15/2001(k) 1,297 A- Aaa 5,495 Series F, 8.25% due 11/15/2001(k) 6,567 AAA VMIG1 6,500 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, VRDN, Series C, 3.30% due 6/15/2023 (a) 6,500 New York State Dormitory Authority Revenue Bonds (City University Systems), Series A: BBB Baa1 10,000 Consolidated, 2nd General, Series A, 5.75% due 7/01/2013 9,178 BBB Baa1 4,900 Crossover, Refunding, Series E, 5.75% due 7/01/2011 4,563 New York State Dormitory Authority Revenue Bonds (State University Educational Facilities): BBB Baa1 7,500 Refunding, Series A, 5.50% due 5/15/2010 6,868 BBB Baa1 5,000 Refunding, Series A, 5.875% due 5/15/2011 4,702 BBB+ Baa1 5,725 Refunding, Series A, 5.50% due 5/15/2013 5,101 BBB+ Baa1 6,000 Refunding, Series A, 6.25% due 5/15/2017 5,774 BBB+ Baa1 4,000 Refunding, Series A, 5.50% due 5/15/2019 3,501 BBB+ Baa1 15,000 Refunding, Series B, 5.25% due 5/15/2011 13,150 BBB+ Baa1 5,085 Refunding, Series B 7.375% due 5/15/2014 5,466 BBB+ Baa1 5,000 Series A, 7.50% due 5/15/2013 5,633 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds (Long Island Lighting), AMT, Series A: BB+ Ba1 10,500 7.15% due 6/01/2020 10,474 BB+ Ba1 13,000 7.15% due 12/01/2020 12,983 A-1+ NR 1,000 New York State Environmental Facilities Corporation, Resource Recovery Revenue Bonds (OFS Equity Huntington Project), AMT, VRDN, 2.95% due 11/01/2014(a) 1,000 New York State Local Government Assistance Corporation: A A 10,000 Refunding, Series A, 6.50% due 4/01/2020 10,052 A A 5,000 Refunding, Series B, 5.375% due 4/01/2016 4,376 A A 6,000 Series A, 7% due 4/01/2012(k) 6,369 A Aaa 4,000 Series B, 7.375% due 4/01/2012(k) 4,546 A A 10,000 Series B, 6% due 4/01/2018 9,432 AAA Aaa 6,000 Series B, 7.50% due 4/01/2020 6,862 A A 5,000 Series D, 5.375% due 4/01/2014 4,419 A A 15,325 Series D, 5% due 4/01/2023 12,349 A A1 5,380 New York State Thruway Authority, General Revenue Bonds, Series A, 5.75% due 1/01/2019 4,938 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds: A+ Aa 9,000 Series A, 4.75% due 1/01/2019 7,110 A+ Aa 9,075 Series Q, 6.75% due 1/01/2009 9,710 A+ Aa 10,000 Series Y, 5.50% due 1/01/2017 8,962 Ohio--3.1% A A1 3,610 Cuyahoga County, Ohio, Hospital Revenue Bonds (Meridia Health Systems), 7.25% due 8/15/2019 3,783 NR VMIG1 2,300 Cuyahoga County, Ohio, Hospital Revenue Bonds (University Hospital of Cleveland), VRDN, 3% due 1/01/2016(a) 2,300 NR VMIG1 2,100 Franklin County, Ohio, Health Systems Revenue Bonds (Franciscan Sisters--Saint Anthony Medical Center), Series B, VRDN, 3% due 7/01/2015(a) 2,100 NR VMIG1 3,000 Hamilton County, Ohio, Health System Revenue Bonds (Franciscan Sisters Poor Health), Series A, 2.55% due 3/01/2017(a) 3,000 Ohio HFA, S/F Mortgage Revenue Bonds, AMT(g): AAA Aaa 22,000 RIB, Series B-4, 6.903% due 3/31/2031 22,031 AAA NR 2,980 Series B, 8.25% due 12/15/2019 3,060 AAA NR 4,955 Series C, 7.85% due 9/01/2021 5,135 BBB- Baa2 14,000 Ohio State Air Quality Development Authority, PCR, Refunding (Ohio-Edison), Series A, 5.95% due 5/15/2029 12,252 NR VMIG1 1,000 Student Loan Funding Corporation Cincinnati Ohio Student Loan Revenue, Series A-2, AMT, VRDN, 2.25% due 1/01/2007(a) 1,000 Oregon--0.2% AA- Aa 1,135 Oregon State, PCR, UT, Series C, 5.625% due 6/01/2013 1,076 AAA Aaa 1,200 Polk County, Oregon, School District No. 002, GO, UT, 5.40% due 6/01/2012(h) 1,108 Pennsylvania--5.8% NR A1 7,600 Allegheny County, Pennsylvania, Industrial Development Authority, PCR, Refunding (Parkway Center Project), 3.35% due 5/01/2009 7,600 BB+ Baa3 15,650 Beaver County, Pennsylvania, IDA, PCR, Refunding (Ohio Edison Project), Series A, 7.75% due 9/01/2024 16,399 A1+ NR 2,500 Geisinger Authority, Pennsylvania, Health System Revenue Bonds, VRDN, Series B, 3.30% due 7/01/2022(a) 2,500 AA Aa 17,600 Pennsylvania, HFA, Revenue Refunding Bonds, 7% due 10/01/2023 17,800 NR P1 2,100 Pennsylvania Higher Educational Facilities Authority, College and University Revenue Bonds (Temple University), VRDN, 3.10% due 10/01/2009(a) 2,100 AAA Aaa 20,000 Pennsylvania State Higher Educational Assistance Agency, Student Loan Revenue Bonds, AMT, 6.80% due 9/03/2026(c) 20,437 A1+ VMIG1 4,300 Pennsylvania State Higher Educational Assistance Agency Student Loan Revenue Bonds, AMT, VRDN, Series B, 2.30% due 7/01/2018(a) 4,300 BBB Baa1 2,000 Philadelphia, Pennsylvania, Hospital and Higher Educational Facilities Authority, Hospital Revenue Bonds (Frankford Hospital), Series A, 6% due 6/01/2023 1,712 BBB Baa1 5,400 Philadelphia, Pennsylvania, Hospital and Higher Educational Facilities Authority Revenue Bonds (Graduate Health Systems), Series A, 6.25% due 7/01/2013 5,010
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Pennsylvania BBB Baa $ 7,335 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding (concluded) Bonds, 5.75% due 6/15/2013 $ 6,636 AAA Aaa 4,800 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System Revenue Refunding Bonds, Series A, 6.75% due 9/01/2001 (e) 5,294 BBB Baa 5,650 Ridley Park, Pennsylvania, Hospital Authority Revenue Refunding Bonds (Taylor Hospital), Series A, 6.125% due 12/01/2020 4,924 AAA Aaa 2,500 York County, Pennsylvania, Hospital Authority Revenue Bonds (York Hospital), 7% due 7/01/2001(c)(k) 2,767 A1+ P1 800 York County, Pennsylvania, IDA, PCR, Refunding (Philadelphia Electric Company), Series A, 3.10% due 8/01/2016(a) 800 Puerto Rico--0.7% BB Baa 1,025 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, 7% due 7/01/2019 1,062 A Baa1 5,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Bonds, Series W, 5.25% due 7/01/2020 4,210 A Baa1 1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series K, 5.50% due 7/01/2015 905 A Baa1 1,000 Puerto Rico Commonwealth Refunding Bonds, UT, 5.25% due 7/01/2018 849 NR Aaa 1,500 Puerto Rico, Industrial, Medical and Environmental Pollution Control Facilities, Financing Authority Revenue Bonds, Series A, 5.10% due 12/01/2018 1,294 Rhode Island--2.4% Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A: AAA NR 5,250 6.95% due 8/01/2002(k) 5,856 A- Baa1 5,500 Refunding, 5.75% due 8/01/2012 5,032 A- Baa1 30,000 Refunding, 6.25% due 8/01/2016 28,519 South Carolina--0.9% BBB- Baa 8,355 South Carolina Jobs, EDA, Economic Development Revenue Bonds (Saint Francis Hospital--Franciscan Sisters), 7% due 7/01/2015 8,229 A+ A1 8,750 South Carolina State, Public Service Authority, Revenue Refunding Bonds, Series C, 5.125% due 1/01/2021 7,210 Tennessee--0.6% NR NR 10,000 Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue Bonds (Baptist Health System of East Tennessee), 8.60% due 4/15/2016 10,537 Texas--9.0% A- NR 13,500 Brazos County, Texas, Health Facility Development Corporation, Franciscan Services Corporation, Revenue Refunding Bonds (Saint Joseph Hospital and Health Center), Series B, 6% due 1/01/2013 12,320 Brazos River Authority, Texas, PCR (Texas Utilities Electric Company Project), AMT, Series A: BBB Baa2 2,095 8.25% due 1/01/2019 2,271 BBB Baa2 18,150 7.875% due 3/01/2021 19,585 A A2 12,350 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston Light and Power), Series 1989-A, 7.625% due 5/01/2019 13,183 Dallas, Texas, Waterworks and Sewer Systems, Revenue Refunding and Improvement Bonds, Series A: AA Aa 2,195 4% due 10/01/2012 1,565 AA Aa 2,320 4% due 10/01/2013 1,634 BBB Baa1 5,000 Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds (Champion International Corporation), AMT, 7.45% due 5/01/2026 5,182 Harris County, Texas, Certificates of Obligation, Tax and Revenue Bonds: AA+ Aa 2,400 10% due 10/01/2000 3,009 AA+ Aa 2,400 10% due 10/01/2001 3,077 A1+ NR 1,200 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Saint Lukes Episcopal), Series D, 3% due 2/15/2016(a) 1,200 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds (Junior Lien), Series C(c)(j)(l): AAA Aaa 3,500 5.80% due 12/01/2009 1,325 AAA Aaa 5,000 5.80% due 12/01/2010 1,749 BBB- Baa 8,255 Jefferson County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Baptist Healthcare System Project), 8.875% due 6/01/2021 9,196 A NR 19,410 Lower Colorado River Authority, Texas, Revenue Refunding Bonds (Junior Lien 4th), 5.25% due 1/01/2015(i) 17,494 AA Aa 24,000 North Central Texas, Health Facilities Development Corporation Revenue Bonds (Baylor University Medical Center), Series A, 6.70% due 5/15/2016 24,801 AAA Aaa 13,685 Round Rock, Texas, Independent School District and School Building Refunding Bonds, UT, 5.80% due 8/15/2011(f)(j)(l) 4,553 San Antonio, Texas, Refunding and General Improvement Bonds: AA Aa 2,535 4% due 8/01/2011 1,917 AA Aa 4,610 4% due 8/01/2012 3,475 AA Aa 4,885 4% due 8/01/2013 3,614 AA Aa 5,775 4% due 8/01/2014 4,158 A+ Aa 10,105 Texas Housing Agency, Residential Development Mortgage Revenue Bonds, Series A, 7.50% due 7/01/2015(g) 10,182 BBB Baa2 2,000 West Side Calhoun County, Texas, Navigation District, Solid Waste Disposal Revenue Bonds (Union Carbide Chemicals Project), AMT, 6.40% due 5/01/2023 1,859 Utah--0.9% AA Aa 7,835 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, Series B, 5.35% due 7/01/2004(j)(l) 4,337 AA Aa 5,000 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, Series A, 5.81% due 7/01/2017(j)(l) 1,098 A1+ VMIG1 8,100 Utah State Board Regents, Student Loan Revenue Bonds, Series B, 2.25% due 11/01/2000(a) 8,100 Virginia--0.5% A+ A1 9,000 Alexandria, Virginia, IDA, PCR, Refunding (Potomac Electric Project), 5.375% due 2/15/2024 7,738 Washington--2.2% AA Aa 20,000 Washington State, GO, Series A, 4.50% due 10/01/2018 14,903 Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project #2), Series A: AA Aa 16,470 5.80% due 7/01/2007 15,995 AA Aa 6,195 5.75% due 7/01/2012 5,682 Total Investments (Cost--$1,634,001)--96.1% 1,597,539 Other Assets Less Liabilities--3.9% 64,811 ---------- Net Assets--100.0% $1,662,350 ========== (a)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at June 30, 1994. (b)FHA Insured. (c)AMBAC Insured. (d)BIG Insured. (e)FGIC Insured. (f)MBIA Insured. (g)GNMA/FNMA Collateralized. (h)FSA Insured. (i)Escrowed to Maturity. (j)The interest rate shown represents the yield to maturity. (k)Prerefunded. (l)Principal only securities which are traded on a discount basis and are amortized to maturity. (m)The interest rate is subject to change periodically and inversely based upon prevailing market rates. The interest rate shown is the rate in effect at June 30, 1994. ++Represents the highest short-term rating issued by Moody's Investors Service, Inc. Ratings off issues shown have not been audited by Deloitte & Touche. See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Alabama--0.5% NR Aa $ 5,050 Alabama State Public School and College Authority, Refunding Bonds, 3.70% due 12/01/1996 $ 4,962 Alaska--1.0% Alaska State Housing Finance Corporation, GO, Series A: A+ Aa 2,300 3.80% due 12/01/1994 2,304 A+ Aa 1,700 4.20% due 12/01/1995 1,692 AAA Aaa 5,000 Anchorage, Alaska, GO, Refunding Bonds, 4.85% due 7/01/1995(d) 5,045 Arizona--0.9% A+ A1 3,000 Maricopa County, Arizona, Transportation Board, Excise Tax Revenue Bonds, 7.10% due 7/01/1996 3,140 AAA NR 5,000 Phoenix, Arizona, Street and Highway Revenue Refunding Bonds, 7.50% due 7/01/1994(a) 5,101 AA P1 300 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining Corp), DDN, 3.40% due 12/01/2009(b) 300 California--3.0% NR VMIG1 5,850 California Higher Education Loan Authority, Student Loan Revenue Refunding Bonds, Senior Lien, Series A-1, 3.90% due 7/01/1995 5,850 SP-1 MIG1++ 2,200 California State, RAN, Series B, 3.50% due 7/26/1994 2,201 A+ Aa 10,000 California State Various Purpose Bonds, GO, 4% due 10/01/1995 10,030 AA Aa 5,005 California Statewide Communities Development Authority, Revenue Bonds, COP (Saint Joseph Health Systems), 4.10% due 7/01/1997 4,907 AA- Aa 1,100 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A, 4.10% due 5/01/1995 1,102 AAA Aaa 4,750 San Francisco, California, City and County Airports, International Airport Revenue Refunding Bonds, Second Series, Issue 1, 6.10% due 5/01/1998(c) 4,940 Colorado--2.4% NR A 5,000 Colorado Student Obligation Bond Authority, Student Loan Revenue Bonds, Series B, 5.10% due 12/01/1994 5,033 NR NR 10,000 Denver, Colorado, City and County Airport Revenue Bonds, Sub-series B, 4.25% due 9/01/1995(b) 10,040 AAA Aaa 3,500 Denver, Colorado, Metropolitan Major League Baseball Stadium District, Revenue Refunding Bonds (Sales Tax--Baseball Stadium Project), 3.65% due 10/01/1997(f) 3,393 AA Baa1 3,810 Jefferson County, Colorado District No. R-001, Revenue Refunding Bonds, Series A, 3.65% due 12/15/1996 3,737 Connecticut--3.4% Connecticut State Economic Recovery Notes, GO, Series A: AA- Aa 4,200 5.25% due 12/15/1994 4,245 AA- Aa 3,900 5.40% due 12/15/1995 3,985 AA- Aa 3,250 5.50% due 6/15/1996 3,329 Connecticut State, GO: AA- Aa 3,650 Series A, 5.20% due 3/15/1996 3,698 AA- Aa 6,705 Series B, 4.90% due 11/15/1995 6,800 NR Aa3 3,955 Connecticut State Housing Mortgage Revenue Bonds (Chestnut Hill Apartments), 4.60% due 4/01/1997 3,940 AA- A1 3,515 Connecticut State Special Tax Obligation Revenue Bonds, Trans- portation Infrastructure, Series C, 4.40% due 10/01/1997 3,485 AAA Aaa 2,000 Stratford, Connecticut, GO, 3.50% due 11/01/1996(f) 1,959 Delaware--0.2% AAA Aaa 1,500 Delaware Realty Transfer Tax Revenue Bonds (Land and Water Con- servation Trust Fund Program), 5.30% due 4/01/1995(f) 1,518 District of District of Columbia, General Fund Recovery Bonds DDN: Columbia--1.8% A1+ VMIG1 3,400 Series B-3, 3.45% due 7/01/1994 3,400 AAA Aaa 11,000 Series C, 5.50% due 6/01/1995(f) 11,120 AAA Aaa 1,465 District of Columbia, GO, Series B, UT, 5.30% due 6/01/1995(d) 1,478 Florida--4.8% Dade County, Florida, Aviation Revenue Refunding Bonds, Series X: A Aa 3,595 3.75% due 10/01/1994 3,599 A Aa 2,000 4.10% due 10/01/1995 2,010 AAA Aaa 1,900 Dade County, Florida, Water System Revenue Refunding Bonds, 4% due 6/01/1995(f)(g) 1,907 Florida State Division, Board of Finance Revenue Bonds (Department of Natural Resources Preservation 2000), Series A(c): AAA Aaa 5,000 6.10% due 7/01/1994 5,000 AAA Aaa 5,000 6.10% due 7/01/1995 5,111 Florida State, GO, COP (Construction Equipment Financing Program): A+ A 15,000 5.55% due 11/15/1994 15,109 A+ A 3,860 5.75% due 11/15/1995 3,945 Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A(f): AAA Aaa 2,000 5% due 7/01/1994 2,000 AAA Aaa 2,375 5% due 7/01/1995 2,401 AAA Aaa 4,000 Homestead, Florida, Special Insurance Assessment Revenue Bonds (Hurricane Andrew Covered Claim), 4.20% due 3/01/1996(d) 3,984 Georgia--1.1% A- A3 5,000 Crisp County, Georgia, Development Authority, Solid Waste Disposal Revenue Bonds (International Paper Company), AMT, Series B, 3.35% due 9/10/1994 4,999 AA Aa1 2,000 Gwinnett County, Georgia, COP (Water and Sewer), 7.60% due 8/01/1995 2,076 AAA Aaa 3,965 Metropolitan Atlanta, Georgia, Rapid Transit Authority, Sales Tax Revenue Refunding Bonds, Series P, 4.75% due 7/01/1995(c) 3,998 Illinois--7.3% Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Revenue Refunding Bonds: AA Aa 5,000 4% due 12/01/1996 4,944 AA Aa 3,100 4.10% due 12/01/1995 3,109 AA Aa 3,000 4.50% due 12/01/1996 2,998 A+ A1 2,580 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Series A, AMT, 4.40% due 1/01/1995 2,589 SP1+ NR 10,000 Chicago, Illinois, Park District Notes, GO, 3.25% due 10/01/1994 9,986 AAA Aaa 2,755 Chicago, Illinois, School Financing Authority, Revenue Refunding Bonds, Series A, 5% due 6/01/1995(f) 2,773 Chicago, Illinois, Tender Notes: A1+ VMIG1 7,500 Series A-1, 3.10% due 10/31/1995 7,500 A1+ VMIG1 15,000 Series B, 3.85% due 10/31/1994 15,046 AAA Aaa 3,750 Cook County, Illinois, High School District No. 205 Revenue Bonds, UT (Thornton Township), 5% due 6/01/1995(f) 3,797 AAA Aaa 3,975 Illinois Educational Facilities Authority Revenue Bonds (University of Chicago), 7% due 12/01/1996(a) 4,267 Illinois State, GO: AA- Aa 3,000 5.50% due 6/01/1995 3,039 AA- Aa 4,120 5.25% due 10/01/1994 4,139 A A1 3,625 Illinois State Toll and Highway Authority, Revenue Refunding Bonds, Series A, 3.70% due 1/01/1996 3,577 Indiana--0.5% AA- Aa 4,800 Purdue University, Indiana, University Revenue Bonds, Student Fees, Series J, 4.15% due 7/01/1996 4,762 Kentucky--1.8% A A 13,000 Kentucky State Property and Building Community, Revenue Refunding Bonds, Project No. 55, 3.60% due 9/01/1996 12,737 AAA Aaa 3,250 Kentucky State Turnpike Authority, Economic Development, Refunding Revenue Bonds (Revitalization Projects), 4% due 7/01/1996(c) 3,224 Louisiana--1.1% Louisiana State Offshore Terminal Authority Revenue Bonds (Deepwater Port), Series B: A A3 4,000 4.20% due 9/01/1994 3,997 A A3 5,410 4.60% due 9/01/1995 5,441 NR NR 905 New Orleans, Louisiana, COP, 6.75% due 10/01/1994 912
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Maine--0.6% AA+ Aa $ 5,255 Maine State General Purpose Bonds, 4.10% due 9/01/1995 $ 5,279 Maryland--0.6% AA+ Aaa 1,000 Baltimore County, Maryland, Metropolitan District, 63rd Issue, Special Assessment Revenue Bonds, UT, 5.70% due 7/01/1994 1,000 A+ A1 4,535 Maryland State Transportation Authority Revenue Bonds UT, 6% due 7/01/1995 4,626 Massachusetts-- BBB+ NR 4,157 Massachusetts State, COP, 5.10% due 6/30/1996 4,186 4.9% A+ A 7,000 Massachusetts State, GO, Revenue Refunding Bonds, Series C, 3.55% due 9/01/1994 6,991 AAA Aaa 2,900 Massachusetts State, GO, Series A, Dedicated Income Tax, 7% due 6/01/1995 (f) 2,978 AAA Aaa 7,535 Massachusetts State, GO, Series A, 7.87% due 6/01/1997 8,195 Massachusetts State Health and Educational Facilities Authority Revenue Bonds: AAA NR 4,590 (Melrose-Wakefield Hospital), Series A, 8.625% due 7/01/1996(a) 5,042 AAA Aaa 2,005 (New England Medical Center Hospitals), Series G, 3.80% due 7/01/1997(d) 1,950 Massachusetts State, HFA, Housing Projects, Revenue Refunding Bonds, Series A: A+ A1 6,720 3.90% due 4/01/1995(g) 6,688 A+ A1 3,600 4.40% due 10/01/1996 3,572 Massachusetts State Water Resource Authority, GO, Series A: A A 1,690 6.70% due 4/01/1995 1,722 AAA Aaa 2,555 6.70% due 4/01/1995(g) 2,617 NR NR 1,015 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley Health Care), AMT, Series A, 5% due 12/01/1996 1,015 Michigan--1.4% NR VMG1 1,000 Detroit, Michigan, Downtown Development Authority Revenue Bonds (Millender Center Project), VRDN, 2.40% due 7/01/1994(b) 1,000 SP1 MIG1++ 5,075 Detroit, Michigan, GO, Notes, 3.80% due 7/01/1995 5,136 A1 NR 600 Detroit, Michigan, Tax Increment Finance Authority Revenue Bonds, VRDN, 2.75% due 7/01/1994(b) 600 AAA NR 5,475 Michigan State Hospital Finance Authority Revenue Bonds (Harper--Grace & Huron Valley Hospitals), Series A, 10% due 10/01/1995(a) 5,958 NR VMG1 800 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds (Grayling Generating Project), AMT, DDN, 2.75% due 1/01/2014(b) 800 Minnesota--1.3% A1+ VMIG1 300 Duluth, Minnesota, Tax Increment Revenue Bonds (Lake Superior Paper), DDN, 2.65% due 7/01/1994(b) 300 Hennepin County, Minnesota, Capital Improvement Bonds, Series B: AAA Aaa 4,300 2.80% due 12/01/1994 4,292 AAA Aaa 3,225 3.25% due 12/01/1995 3,206 AAA Aaa 1,600 Minneapolis and St. Paul, Minnesota, Metropolitan Airports Revenue Bonds, AMT, Series 8, 4.60% due 1/01/1995 1,607 AA+ NR 1,650 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds, Series A, 4.70% due 3/01/1995 1,662 Mississippi--1.1% A NR 10,000 Mississippi Higher Education Assistance Corporation, Student Loan Revenue Refunding Bonds, Series C, AMT, 5.40% due 1/01/1996 10,126 Missouri--1.7% NR VMIG1 2,300 Missouri Higher Education Loan Authority, Student Loan Revenue Bonds, DDN, AMT, Series A, 2.85% due 6/01/2017(b) 2,300 SP1+ NR 14,500 Missouri State Environmental Improvement and Energy Resource Authority, Water, PCR (State Revolving Fund Program), Series A, 3.90% due 9/01/1996 14,265 Nebraska--2.5% Nebraska Public Power District Revenue Bonds: A+ A1 8,000 (Nuclear Facility), 3.60% due 7/01/1994 8,000 A+ A1 7,000 (Nuclear Facility), 4% due 7/01/1995 6,999 A+ A1 3,570 (Power Supply System), Series C, 3.50% due 1/01/1996 3,516 A+ A1 3,500 Refunding (Electric System), Series A, 4.50% due 1/01/1995 3,516 Nevada--0.8% AAA Aaa 7,000 Washoe County, Nevada, Airport Authority, Airport Systems Improvement Revenue Bonds, AMT, Series A, 3.90% due 7/01/1995(d) 6,982 New Jersey--7.9% Camden County, New Jersey, Improvement Authority (Solid Waste Disposal), Revenue Refunding Bonds (Landfill Project): A- A1 1,125 3.55% due 7/01/1995 1,121 A- A1 2,000 4% due 7/01/1997 1,954 AA+ Aaa 4,500 Middlesex County, New Jersey, Refunding Bonds, 3.60% due 7/15/1996 4,442 AAA Aaa 3,820 Middlesex County, New Jersey, Utility Authority, Solid Waste System Revenue Bonds, 5.20% due 12/01/1995(f) 3,890 AA- Aa 4,365 New Jersey State Building Authority, Revenue Refunding Bonds, 4.20% due 6/15/1997 4,314 AA+ NR 6,000 New Jersey State Governmental, GO, 5.80% due 8/01/1994(g) 6,015 New Jersey State Housing and Mortgage Finance Agency, Revenue Refunding Bonds, Series 1: A+ NR 3,670 4% due 11/01/1994 3,679 A+ VMIG1 5,000 3.40% due 3/29/1995 5,000 A+ NR 3,765 4.50% due 11/01/1995 3,760 New Jersey State Transportation Trust Fund Authority Revenue Bonds (Transportation Systems): A+ AA 5,505 Refunding, Series B, 3.20% due 6/15/1995 5,463 A+ AA 25,000 Series A, 5% due 12/15/1997 25,157 A A 2,160 New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series A, 5.50% due 1/01/1996 2,189 Passaic Valley, New Jersey, Sewage Commissioners Revenue Refunding Bonds, Series D(c): AAA Aaa 3,100 5.70% due 12/01/1994 3,132 AAA Aaa 3,265 5.70% due 12/01/1995 3,348 New Mexico--0.8% A1+ P1 5,000 Farmington, New Mexico, PCR, Refunding (Arizona Public Service Co.), Series A, DDN, 3.30% due 5/01/2024(b) 5,000 AAA Aaa 2,500 New Mexico Education Loan Assistance Foundation, Student Loan Revenue Bonds, Series A, AMT, 5.75% due 4/01/1996(c) 2,531 New York--4.4% AAA Aaa 4,000 Albany County, New York, Revenue Refunding Bonds, 3.30% due 10/01/1995(f) 3,985 AAA Aaa 2,000 Nassau County, New York, GO, 3.62% due 10/01/1997(c) 1,919 New York City, New York, GO: A- Baa1 5,000 Refunding, Series A, 4.60% due 8/01/1995 5,028 A- Baa1 3,000 Series A, 7.20% due 3/15/1995(a)(g) 3,079 A- Aaa 945 Series D, 6.40% due 2/01/1995(a)(g) 962 A- Baa1 10,405 Series D, 6.40% due 2/01/1995 10,550 New York State Dormitory Authority Revenue Bonds, Series B: A1+ VMIG1 7,000 (Cornell University), DDN, 3% due 7/01/2025(b) 7,000 A1+ VMIG1 7,000 (New York Public Library), 3.875% due 7/01/1995 7,029 A A 2,000 New York State Local Government Assistance Corporation Revenue Bonds, Series A, 5% due 4/01/1995 2,014 North Carolina--1.3% AAA Aaa 9,490 North Carolina Municipal Power Agency, Revenue Refunding Bonds (Catawba Electric Project No. 1), 4.60% due 1/01/1997(f) 9,470 NR VMIG1 3,700 Person County, North Carolina, Industrial Facilities and Pollution Control Financing Authority Revenue Bonds (Solid Waste Disposal- Carolina Power and Light Company Project), AMT, DDN, 3.30% due 11/01/2016(b) 3,700 North Dakota--0.5% NR Aa 5,000 North Dakota Student Loan Revenue Refunding Bonds, Series A, 5.40% due 7/01/1996 5,072
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Ohio--11.6% Cincinnati, Ohio, City School District: A+ NR $ 2,500 RAN, 5.35% due 6/15/1996 $ 2,535 A+ NR 7,500 TAN, 5% due 6/01/1995 7,593 Cleveland, Ohio, City School District, RAN(c): AAA Aaa 3,000 4.20% due 6/01/1996 2,984 AAA Aaa 10,000 4.35% due 6/01/1997 9,858 NR Aa1 2,700 Columbus, Ohio, Sewer Improvement Revenue Bonds (Waterworks Parks), 6.75% due 7/01/1995(g) 2,777 NR MIG1++ 5,100 North Olmsted, Ohio, BAN, 3.97% due 12/15/1994 5,125 Ohio State Air Quality Development Authority, PCR (Ohio Edison Company): AAA Aaa 6,700 5.65% due 9/01/1994 6,714 A1+ VMIG1 10,500 Refunding, Series A, 4.25% due 8/01/1996 10,427 A1+ VMIG1 6,700 Series A, 3.45% due 2/01/1996 6,582 A1+ P1 3,000 Series C, AMT, 3.125% due 9/01/1994 3,000 A+ A1 2,500 Ohio State Building Authority, Revenue Refunding Bonds (State Correctional Facility), Series A, 3.70% due 10/01/1994 2,501 A+ A1 5,620 Ohio State Higher Education Facilities Revenue Bonds, Series II-B, 5.875% due 12/01/1994 5,677 Ohio State Public Facilities Commission, Higher Education Facilities: A+ A1 3,300 Capital Facilities, Series II-A, 5.30% due 12/01/1996 3,347 AAA AAA 5,000 Capital Facilities, Series II-A, Refunding, 4.60% due 6/01/1997(c) 4,973 A+ A1 3,090 Capital Facilities, Series II-C, Refunding, 4% due 12/01/1994 3,100 AAA Aaa 1,995 Series II-A, 6.25% due 5/01/1995(c) 2,039 A+ A1 8,500 Series II-B, 4.625% due 12/01/1996 8,514 A1+ P1 4,000 Ohio State Water Development Authority, Pollution Control Facility Revenue Bonds (Ohio Edison Company Project), AMT, Series B, 3.125% due 9/01/1994 4,000 NR MIG1++ 6,140 Toledo, Ohio, City Services Special Assessment Notes, 3.20% due 12/01/1994 6,145 AAA Aaa 10,250 Trumbull County, Ohio, Hospital Revenue Bonds (Trumbull Memorial Hospital Project), 9.625% due 11/01/2012(a)(f) 11,172 Oklahoma--0.7% A+ Aa 6,370 Oklahoma County, Oklahoma, Independent School District No. 89, 6.50% due 2/01/1998 6,705 Pennsylvania--0.3% AAA Aaa 3,000 Pittsburgh, Pennsylvania, Water and Sewer Authority, Revenue Refunding Bonds, Series A, 3.50% due 9/01/1996(f) 2,937 Puerto Rico--1.2% BBB Baa 7,065 Puerto Rico, Finance Housing Agency, Revenue Refunding Bonds, 3.75% due 12/01/1995 6,978 A Baa1 3,415 Puerto Rico Public Buildings Authority, Revenue Refunding Bonds, Series J, 5.20% due 7/01/1995 3,452 Rhode Island--2.3% Providence, Rhode Island, Redevelopment Agency, BAN: NR NR 3,120 (Parcel 12 Project), Series 2, 4.25% due 7/28/1994 3,122 NR NR 3,435 (Promenade Project), Series I, 4.25% due 7/28/1994 3,437 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A(e): AAA Aaa 4,395 4.70% due 8/01/1994 4,400 AAA Aaa 4,180 5% due 8/01/1995 4,228 NR A 6,000 Rhode Island State, Student Loan Authority, Student Loan Revenue Refunding Bonds, Series A, 5.70% due 12/01/1996 6,188 South Carolina--1.4% NR NR 7,800 Berkeley County, South Carolina, Water and Sewer, BAN, 3.25% due 9/01/1994 7,802 AA- A1 1,000 Charleston, South Carolina, Waterworks and Sewer Improvement Revenue Refunding Bonds, 4.45% due 1/01/1995 1,004 A+ A1 5,170 South Carolina State Public Service Authority Revenue Refunding Bonds, Series C, 3.80% due 1/01/1997 5,043 Texas--9.1% AAA Aaa 4,880 Austin, Texas, Utility System Revenue Refunding Bonds, Series A, Prior Lien, 4.80% due 11/15/1995(d) 4,937 Brazos, Texas, Higher Education Authority, Student Loan Revenue Refunding Bonds, AMT: NR Aaa 2,250 Series A-1, 5% due 12/01/1996 2,254 NR Aaa 2,000 Series C-1, 5% due 11/01/1995 2,021 NR Aa 5,455 Series C-1, 5.60% due 11/01/1997 5,596 AAA Aaa 3,250 Dallas, Texas, Regional Airport Revenue Refunding Bonds (Dallas-Fort Worth International Airport), 3.75% due 11/01/1996(d) 3,192 NR A1 950 Fort Bend County, Texas, IDR, Corporate, Refunding (Frito Lay Incorporated Project), 4% due 10/01/1996 936 NR A1 3,650 Fort Bend County, Texas, PCR, Corporate, IDR, Refunding (Frito Lay Incorporated Project), 4% due 10/01/1996 3,595 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Saint Luke's Episcopal Hospital), DDN(b): AA NR 500 Series B, 3.50% due 2/15/2016 500 AA NR 2,000 Series C, 3.30% due 2/15/2016 2,000 AA- Aa 3,915 Houston, Texas, Certificates of Obligation, Tax and Revenue Bonds, Series F, 3.60% due 3/01/1997 3,791 A1+ NR 5,400 Houston, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Methodist Hospital Project), DDN, 3.50% due 12/01/2014(b) 5,400 AAA Aaa 9,500 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Series D, Junior Lien, 5.55% due 12/01/1995(f) 9,697 Panhandle-Plains, Texas, Higher Education Authority Incorporated, Student Loan Revenue Refunding Bonds (Student Loan Marketing Association): NR VMIG1 6,000 Series A, 3.65% due 3/01/1995 6,001 NR Aaa 2,000 Series C, 3.95% due 9/01/1996 1,961 NR Aaa 2,675 Series C, 4.15% due 9/01/1997 2,607 San Antonio, Texas, Electric and Gas Revenue Refunding Bonds, Series A, Junior Lien: AA Aa1 9,000 5.80% due 2/01/1995 9,109 AA Aa1 3,000 6% due 2/01/1996 3,067 AA Aa 4,525 Texas State, GO, Refunding, 6.40% due 12/01/1994 4,583 AA Aa 3,000 Texas State Public Finance Authority Revenue Bonds, Series A, 6% due 10/01/1995 3,077 AAA Aaa 4,770 Texas State Public Property Finance Corporation, Revenue Refunding Bonds (Mental Health and Retardation), 4.25% due 9/01/1995 4,788 SP1+ MIG1++ 5,500 Texas State, TRAN, 3.25% due 8/31/1994 5,504 AAA Aaa 1,500 Texas Water Development Board Revenue Bonds (State Revolving Fund- Senior Lien), 4.35% due 7/15/1995 1,505 AAA Aaa 3,000 University of Texas, Revenue Refunding Bonds (Financing System), Series A, 5.60% due 8/15/1994 3,008 Utah--4.3% NR NR 24,243 Carbon County, Utah, Solid Waste Disposal Revenue Refunding Bonds (East Carbon Landfill Project), AMT, 6.04% due 5/01/1997 24,196 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds: AA Aa 1,250 Series A, 3.90% due 7/01/1996 1,230 AA Aa 4,250 Series B, 4.60% due 7/01/1995 4,268 AA- NR 1,715 University of Utah, Revenue Refunding Bonds (University Hospital Project), Series A, 5% due 5/15/1995 1,728 AAA Aaa 3,250 Utah State Board of Regents, Student Loan Revenue Bonds, AMT, Series D, 6.90% due 11/01/1994(c) 3,288 AAA Aaa 4,825 Utah State Building and Highway, GO, UT, 4.50% due 7/01/1994 4,825 Virginia--2.2% NR Aaa 2,000 Virginia Education Loan Authority, Revenue Refunding Bonds (Guaranteed Student Loan Program), Series E, 4.625% due 3/01/1995 2,010 AAA Aaa 2,500 Virginia Port Authority Facilities, Revenue Refunding Bonds, 5% due 7/01/1995(c) 2,526 Virginia State Housing Development Authority, Commonwealth Mortgage Revenue Bonds, AMT, Series B, Sub Series B-1: AA+ Aa 5,275 5% due 7/01/1994 5,275 AA+ Aa 5,400 5.30% due 1/01/1995 5,412 AA+ Aa 2,975 5.50% due 1/01/1996 3,000 AA Aa 1,500 Virginia State Public Building Authority, Building Revenue Bonds, Series C, 3.95% due 8/01/1995 1,504
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Washington--4.8% Port Seattle, Washington, Revenue Refunding Bonds: AA- A1 $ 1,075 Series A, 4.25% due 4/01/1996 $ 1,068 AA- A1 3,000 Series B, 4% due 11/01/1995 2,996 SP1+ MIG1++ 7,655 Seattle, Washington, Metropolitan Municipality, Seattle Sewer Revenue, BAN, 3.50% due 7/01/1995 7,640 A1+ VMIG1 5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds (Bond Purchase Agreement), Series A, 5.05% due 11/01/1994 5,030 AA Aa 7,250 Washington State, GO, Series R-93-B-1, 4.125% due 10/01/1997 7,134 Washington State Public Power Supply System, Revenue Refunding Bonds, Series A: AA Aa 8,000 (Nuclear Project No. 1), 4.20% due 7/01/1995 7,998 AA Aa 6,275 (Nuclear Project No. 2), 4.20% due 7/01/1995(g) 6,309 AA Aa 2,000 (Nuclear Project No. 2), 3.50% due 7/01/1996 1,951 AA Aa 4,890 (Nuclear Project No. 2), 3.75% due 7/01/1997 4,714 Wisconsin--1.2% AA- A1 2,500 Milwaukee County, Wisconsin, GO, Series A, 6% due 12/01/1994 2,527 AA Aa 3,500 Milwaukee County, Wisconsin, Metropolitan Sewer District Revenue Bonds, Series A, 5.25% due 9/01/1995 3,550 Wisconsin Housing and EDA, Housing Revenue Refunding Bonds, Series C: A A1 2,200 3.60% due 11/01/1995 2,175 A A1 2,795 4.30% due 11/01/1997 2,739 Wyoming--1.2% NR P1 11,700 Unita County, Wyoming, PCR, Refunding (Chevron USA Incorporated Project), DDN, 3.25% due 8/15/2020(b) 11,700 Total Investments (Cost--$936,308)--99.9% 934,920 Other Assets Less Liabilities--0.1% 757 -------- Net Assets--100.0% $935,677 ======== (a)Prerefunded. (b)The interest rate is subject to change periodically based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1994. (c)AMBAC Insured. (d)MBIA Insured. (e)FSA Insured. (f)FGIC Insured. (g)Escrowed to maturity. ++Highest short-term rating by Moody's Investors Service, Inc. Ratings of issues shown have not been audited by Deloitte & Touche. See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES
Limited Insured National Maturity As of June 30, 1994 Portfolio Portfolio Portfolio Assets: Investments, at value* (Note 1a) $2,702,601,800 $1,597,539,473 $ 934,920,346 Cash 9,802,505 53,398 7,971,761 Receivables: Securities sold 80,588,196 65,574,768 -- Interest 49,770,068 28,668,824 12,158,961 Capital shares sold 2,541,957 1,642,703 1,886,281 Prepaid registration fees and other assets (Note 1e) 76,710 55,688 39,846 -------------- -------------- ------------- Total assets 2,845,381,236 1,693,534,854 956,977,195 -------------- -------------- ------------- Liabilities: Payables: Securities purchased 23,200,000 21,648,397 12,866,592 Capital shares redeemed 8,078,154 5,699,836 6,993,374 Dividends to shareholders (Note 1f) 4,300,670 2,571,687 975,562 Investment adviser (Note 2) 856,903 665,520 258,042 Distributor (Note 2) 547,427 288,679 42,550 Accrued expenses and other liabilities 463,821 310,835 164,306 -------------- -------------- ------------- Total liabilities 37,446,975 31,184,954 21,300,426 -------------- -------------- ------------- Net Assets: Net assets $2,807,934,261 $1,662,349,900 $ 935,676,769 ============== ============== ============= Net Assets Class A Common Stock, $0.10 par value++ $ 24,643,476 $ 11,941,084 $ 8,006,485 Consist of: Class B Common Stock, $0.10 par value++++ 11,001,115 4,558,341 1,474,492 Paid-in capital in excess of par 2,714,075,637 1,653,959,042 932,777,155 Undistributed realized capital gains (losses)--net (Note 5) 45,898,099 28,352,719 (5,193,769) Unrealized appreciation/depreciation on investments--net 12,315,934 (36,461,286) (1,387,594) -------------- -------------- ------------- Net assets $2,807,934,261 $1,662,349,900 $ 935,676,769 ============== ============== ============= Net Asset Class A: Value: Net assets $1,941,741,107 $1,203,180,964 $ 790,142,342 ============== ============== ============= Shares outstanding 246,434,764 119,410,837 80,064,850 ============== ============== ============= Net asset value and redemption price per share $ 7.88 $ 10.08 $ 9.87 ============== ============== ============= Class B: Net assets $ 866,193,154 $ 459,168,936 $ 145,534,427 ============== ============== ============= Shares outstanding 110,011,150 45,583,411 14,744,916 ============== ============== ============= Net asset value and redemption price per share $ 7.87 $ 10.07 $ 9.87 ============== ============== ============= *Identified cost $2,690,285,866 $1,634,000,759 $ 936,307,940 ============== ============== ============= ++Authorized shares--Class A 500,000,000 375,000,000 150,000,000 ============== ============== ============= ++++Authorized shares--Class B 375,000,000 375,000,000 150,000,000 ============== ============== ============= See Notes to Financial Statements.
STATEMENTS OF OPERATIONS
Limited Insured National Maturity For the Year Ended June 30, 1994 Portfolio Portfolio Portfolio Investment Income Interest and amortization of premium and discount earned $ 183,856,750 $ 112,169,662 $ 40,921,727 (Note 1d): Other 226 1,522 812 -------------- -------------- ------------- Total income 183,856,976 112,171,184 40,922,539 -------------- -------------- ------------- Expenses: Investment advisory fees (Note 2) 11,040,540 8,514,268 3,305,839 Distribution fees--Class B (Note 2) 6,980,635 3,496,610 466,701 Transfer agent fees--Class A (Note 2) 656,700 490,579 163,948 Printing and shareholder reports 165,241 93,551 54,317 Transfer agent fees--Class B (Note 2) 333,290 202,133 31,266 Custodian fees 220,118 161,442 96,955 Accounting services (Note 2) 170,190 143,453 100,650 Registration fees (Note 1e) 79,615 104,423 178,362 Professional fees 71,762 40,697 36,001 Pricing services 62,080 37,290 29,099 Portfolio insurance 74,901 8,383 4,674 Directors' fees and expenses 27,619 12,004 8,512 Amortization of organization expenses (Note 1e) 6,857 6,070 -- Other 25,079 11,449 15,230 -------------- -------------- ------------- Total expenses 19,914,627 13,322,352 4,491,554 -------------- -------------- ------------- Investment income--net 163,942,349 98,848,832 36,430,985 -------------- -------------- ------------- Realized & Realized gain (loss) on investments--net 80,935,129 62,008,845 (968,336) Unrealized Change in unrealized appreciation/depreciation on Gain (Loss) on investments--net (275,252,365) (172,722,080) (13,063,534) Investments--Net -------------- -------------- ------------- (Notes 1d & 3): Net Increase (Decrease) in Net Assets Resulting from Operations $ (30,374,887) $ (11,864,403) $ 22,399,115 ============== ============== ============= See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
Insured Portfolio National Portfolio --------------------------- --------------------------- For the Year Ended June 30, For the Year Ended June 30, --------------------------- --------------------------- Increase (Decrease) in Net Assets: 1994 1993 1994 1993 Operations: Investment income--net $ 163,942,349 $ 167,805,641 $ 98,848,832 $ 99,669,395 Realized gain (loss) on investments--net 80,935,129 67,994,693 62,008,845 38,689,103 Change in unrealized appreciation/ depreciation on investments--net (275,252,365) 101,260,716 (172,722,080) 49,677,981 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations (30,374,887) 337,061,050 (11,864,403) 188,036,479 -------------- -------------- -------------- -------------- Dividends & Investment income--net: Distributions to Class A (119,441,701) (126,159,264) (75,680,507) (80,896,286) Shareholders Class B (44,500,648) (41,646,377) (23,168,325) (18,773,109) (Note 1f): Realized gain on investments--net: Class A (57,171,047) (26,812,986) (36,128,677) (22,563,878) Class B (24,972,443) (10,208,890) (12,798,152) (5,793,680) -------------- -------------- -------------- -------------- Net decrease in net assets resulting from dividends and distributions to shareholders (246,085,839) (204,827,517) (147,775,661) (128,026,953) -------------- -------------- -------------- -------------- Capital Share Net increase (decrease) in net assets Transactions derived from capital share transactions (52,099,956) 235,653,905 44,114,517 153,435,527 (Note 4): -------------- -------------- -------------- -------------- Net Assets: Total increase (decrease) in net assets (328,560,682) 367,887,438 (115,525,547) 213,445,053 Beginning of period 3,136,494,943 2,768,607,505 1,777,875,447 1,564,430,394 -------------- -------------- -------------- -------------- End of period $2,807,934,261 $3,136,494,943 $1,662,349,900 $1,777,875,447 ============== ============== ============== ============== ++Commencement of Operations. See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
Limited Maturity Portfolio ------------------------------------- For the Year For the Period Ended June 30, Nov. 2, 1992++ to Increase (Decrease) in Net Assets: 1994 June 30, 1993 Operations: Investment income--net $ 36,430,985 $ 31,371,404 Realized gain (loss) on investments--net (968,336) 2,133,811 Change in unrealized appreciation/ depreciation on investments--net (13,063,534) 4,480,891 -------------- -------------- Net increase (decrease) in net assets resulting from operations 22,399,115 37,986,106 -------------- -------------- Dividends & Investment income--net: Distributions to Class A (31,987,779) (30,211,746) Shareholders Class B (4,443,206) (1,159,658) (Note 1f): Realized gain on investments--net: Class A -- -- Class B -- -- -------------- -------------- Net decrease in net assets resulting from dividends and distributions to shareholders (36,430,985) (31,371,404) -------------- -------------- Capital Share Net increase (decrease) in net assets Transactions derived from capital share transactions 7,793,356 321,893,595 (Note 4): -------------- -------------- Net Assets: Total increase (decrease) in net assets (6,238,514) 328,508,297 Beginning of period 941,915,283 613,406,986 -------------- -------------- End of period $ 935,676,769 $ 941,915,283 ============== ============== ++Commencement of Operations. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
Insured Portfolio ----------------------------------------------------------- The following per share data and ratios Class A have been derived from information ----------------------------------------------------------- provided in the financial statements. For the Year Ended June 30, ----------------------------------------------------------- Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990 Per Share Net asset value, beginning of year $ 8.64 $ 8.26 $ 7.92 $ 7.86 $ 7.97 Operating ---------- ---------- ---------- ---------- ---------- Performance: Investment income--net .47 .50 .52 .54 .55 Realized and unrealized gain (loss) on investments--net (.53) .49 .41 .12 (.11) ---------- ---------- ---------- ---------- ---------- Total from investment operations (.06) .99 .93 .66 .44 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions: Investment income--net (.47) (.50) (.52) (.54) (.55) Realized gain on investments--net (.23) (.11) (.07) (.06) -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (.70) (.61) (.59) (.60) (.55) ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 7.88 $ 8.64 $ 8.26 $ 7.92 $ 7.86 ========== ========== ========== ========== ========== Total Investment Based on net asset value per share (1.08%) 12.43% 12.11% 8.84% 5.76% Return:* ========== ========== ========== ========== ========== Ratios to Expenses, excluding distribution fees .42% .42% .44% .45% .46% Average Net ========== ========== ========== ========== ========== Assets: Expenses .42% .42% .44% .45% .46% ========== ========== ========== ========== ========== Investment income--net 5.53% 5.94% 6.44% 6.90% 7.03% ========== ========== ========== ========== ========== Supplemental Net assets, end of year (in thousands) $1,941,741 $2,225,188 $2,062,591 $1,984,307 $2,019,166 Data: ========== ========== ========== ========== ========== Portfolio turnover 28.34% 43.86% 22.50% 33.12% 23.20% ========== ========== ========== ========== ========== *Total investment returns exclude the effects of sales loads. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
Insured Portfolio ----------------------------------------------------------- The following per share data and ratios Class B have been derived from information ----------------------------------------------------------- provided in the financial statements. For the Year Ended June 30, ----------------------------------------------------------- Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990 Per Share Net asset value, beginning of year $ 8.63 $ 8.26 $ 7.92 $ 7.86 $ 7.97 Operating ---------- ---------- ---------- ---------- ---------- Performance: Investment income--net .40 .44 .46 .48 .49 Realized and unrealized gain (loss) on investments--net (.53) .48 .41 .12 (.11) ---------- ---------- ---------- ---------- ---------- Total from investment operations (.13) .92 .87 .60 .38 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions: Investment income--net (.40) (.44) (.46) (.48) (.49) Realized gain on investments--net (.23) (.11) (.07) (.06) -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (.63) (.55) (.53) (.54) (.49) ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 7.87 $ 8.63 $ 8.26 $ 7.92 $ 7.86 ========== ========== ========== ========== ========== Total Investment Based on net asset value per share (1.81%) 11.45% 11.27% 8.02% 4.98% Return:* ========== ========== ========== ========== ========== Ratios to Expenses, excluding distribution fees .42% .43% .44% .45% .47% Average Net ========== ========== ========== ========== ========== Assets: Expenses 1.17% 1.18% 1.19% 1.20% 1.22% ========== ========== ========== ========== ========== Investment income--net 4.78% 5.17% 5.69% 6.13% 6.27% ========== ========== ========== ========== ========== Supplemental Net assets, end of year (in thousands) $ 866,193 $ 911,307 $ 706,016 $ 537,755 $ 408,641 Data: ========== ========== ========== ========== ========== Portfolio turnover 28.34% 43.86% 22.50% 33.12% 23.20% ========== ========== ========== ========== ========== *Total investment returns exclude the effects of sales loads. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (concluded)
National Portfolio ----------------------------------------------------------- The following per share data and ratios Class A have been derived from information ----------------------------------------------------------- provided in the financial statements. For the Year Ended June 30, ----------------------------------------------------------- Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990 Per Share Net asset value beginning of year $ 11.02 $ 10.64 $ 10.17 $ 10.12 $ 10.31 Operating ---------- ---------- ---------- ---------- ---------- Performance: Investment income--net .62 .67 .71 .73 .74 Realized and unrealized gain (loss) on investments--net (.64) .57 .58 .05 (.19) ---------- ---------- ---------- ---------- ---------- Total from investment operations (.02) 1.24 1.29 .78 .55 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions: Investment income--net (.62) (.67) (.71) (.73) (.74) Realized gain on investments--net (.30) (.19) (.11) -- -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (.92) (.86) (.82) (.73) (.74) ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 10.08 $ 11.02 $ 10.64 $ 10.17 $ 10.12 ========== ========== ========== ========== ========== Total Investment Based on net asset value per share (0.47%) 12.21% 13.09% 7.94% 5.53% Return:** ========== ========== ========== ========== ========== Ratios to Expenses, excluding distribution fees .55% .55% .55% .55% .55% Average Net ========== ========== ========== ========== ========== Assets: Expenses .55% .55% .55% .55% .55% ========== ========== ========== ========== ========== Investment income--net 5.72% 6.23% 6.80% 7.20% 7.27% ========== ========== ========== ========== ========== Supplemental Net assets, end of year (in thousands) $1,203,181 $1,353,805 $1,278,055 $1,255,820 $1,365,541 Data: ========== ========== ========== ========== ========== Portfolio turnover 73.33% 65.43% 50.94% 75.25% 48.80% ========== ========== ========== ========== ========== FINANCIAL HIGHLIGHTS (concluded) National Portfolio ----------------------------------------------------------- The following per share data and ratios Class B have been derived from information ----------------------------------------------------------- provided in the financial statements. For the Year Ended June 30, ----------------------------------------------------------- Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990 Per Share Net asset value beginning of year $ 11.02 $ 10.63 $ 10.16 $ 10.11 $ 10.30 Operating ---------- ---------- ---------- ---------- ---------- Performance: Investment income--net .54 .59 .63 .65 .66 Realized and unrealized gain (loss) on investments--net (.65) .58 .58 .05 (.19) ---------- ---------- ---------- ---------- ---------- Total from investment operations (.11) 1.17 1.21 .70 .47 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions: Investment income--net (.54) (.59) (.63) (.65) (.66) Realized gain on investments--net (.30) (.19) (.11) -- -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions (.84) (.78) (.74) (.65) (.66) ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 10.07 $ 11.02 $ 10.63 $ 10.16 $ 10.11 ========== ========== ========== ========== ========== Total Investment Based on net asset value per share (1.39%) 11.47% 12.25% 7.14% 4.74% Return:** ========== ========== ========== ========== ========== Ratios to Expenses, excluding distribution fees .55% .56% .56% .56% .56% Average Net ========== ========== ========== ========== ========== Assets: Expenses 1.30% 1.31% 1.31% 1.31% 1.31% ========== ========== ========== ========== ========== Investment income--net 4.97% 5.46% 6.03% 6.43% 6.52% ========== ========== ========== ========== ========== Supplemental Net assets, end of year (in thousands) $ 459,169 $ 424,071 $ 286,375 $ 213,581 $ 179,362 Data: ========== ========== ========== ========== ========== Portfolio turnover 73.33% 65.43% 50.94% 75.25% 48.80% ========== ========== ========== ========== ========== Limited Maturity Portfolio ------------------------------------------------- Class A ------------------------------------------------- The following per share data and ratios have been derived from information provided in the financial statements. For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990 Per Share Net asset value, beginning of period $ 10.01 $ 9.91 $ 9.75 $ 9.71 $ 9.73 Operating -------- -------- -------- -------- -------- Performance: Investment income--net .37 .41 .50 .57 .60 Realized and unrealized gain (loss) on investments--net (.14) .10 .16 .04 (.02) -------- -------- -------- -------- -------- Total from investment operations .23 .51 .66 .61 .58 -------- -------- -------- -------- -------- Less dividends: Investment income--net (.37) (.41) (.50) (.57) (.60) -------- -------- -------- -------- -------- Net asset value, end of period $ 9.87 $ 10.01 $ 9.91 $ 9.75 $ 9.71 ======== ======== ======== ======== ======== Total Investment Based on net asset value per share 2.30% 5.28% 6.93% 6.45% 6.16% Return:** ======== ======== ======== ======== ======== Ratios to Expenses, excluding distribution fees .40% .41% .40% .40% .40% Average Net ======== ======== ======== ======== ======== Assets: Expenses .40% .41% .40% .40% .40% ======== ======== ======== ======== ======== Investment income--net 3.68% 4.13% 5.02% 5.88% 6.21% ======== ======== ======== ======== ======== Supplemental Net assets, end of period (in thousands) $790,142 $846,736 $613,407 $350,549 $352,005 Data: ======== ======== ======== ======== ======== Portfolio turnover 45.67% 65.43% 96.32% 93.06% 106.44% ======== ======== ======== ======== ======== *Annualized. **Total investment returns exclude the effects of sales loads. ++Commencement of Operations. ++++Aggregate total investment return. See Notes to Financial Statements. Limited Maturity Portfolio -------------------------- Class B -------------------------- For the For the Period The following per share data and ratios have been derived Year Nov. 2, from information provided in the financial statements. Ended 1992++ to June 30, June 30, Increase (Decrease) in Net Asset Value: 1994 1993 Per Share Net asset value, beginning of period $ 10.01 $ 9.93 Operating -------- -------- Performance: Investment income--net .33 .24 Realized and unrealized gain (loss) on investments--net (.14) .08 -------- -------- Total from investment operations .19 .32 -------- -------- Less dividends: Investment income--net (.33) (.24) -------- -------- Net asset value, end of period $ 9.87 $ 10.01 ======== ======== Total Investment Based on net asset value per share 1.98% 3.26%++++ Return:** ======== ======== Ratios to Expenses, excluding distribution fees .41% .41%* Average Net ======== ======== Assets: Expenses .76% .76%* ======== ======== Investment income--net 3.33% 3.60%* ======== ======== Supplemental Net assets, end of period (in thousands) $145,534 $ 95,179 Data: ======== ======== Portfolio turnover 45.67% 65.43% ======== ======== *Annualized. **Total investment returns exclude the effects of sales loads. ++Commencement of Operations. ++++Aggregate total investment return. See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS 1. Significant Accounting Policies: Merrill Lynch Municipal Bond Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund's Portfolios offer Class A and Class B Shares. Class A Shares are sold with a front-end sales charge. Class B Shares may be subject to a contingent deferred sales charge. Both classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Class B Shares bear certain expenses related to the distribution of such shares and have exclusive voting rights with respect to matters relating to such distribution expenditures. The following is a summary of significant accounting policies followed by the Fund. (a)Valuation of investments--Insured Portfolio: Where bonds in the Portfolio have not been insured pursuant to policies obtained by the issuer, the Fund has obtained insurance with respect to the payment of interest and principal of each bond. Such insurance is valid as long as the bonds are held by the Fund. All Portfolios: Municipal bonds and money market securities are traded primarily in the over-the-counter markets and are valued at the most recent bid price or yield equivalent as obtained from dealers that make markets in such securities. Positions in futures contracts are valued at closing prices as of the close of such exchanges. Options, which are traded on exchanges, are valued at their last sale price as of the close of such exchanges or, lacking any sales, at the last available bid price. Assets for which market quotations are not readily available are valued at fair value on a consistent basis using methods determined in good faith by the Fund's Board of Directors, including valuations furnished by a pricing service retained by the Fund, which may utilize a matrix system for valuations. (b)Financial futures contracts--The National and Limited Maturity Portfolios (the "Portfolios") may purchase or sell interest rate futures contracts and options on such futures contracts for the purpose of hedging the market risk on existing or the intended purchase of securities. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the Portfolios deposit and maintain as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Portfolios agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Portfolios as unrealized gains or losses. When the contract is closed, the Portfolios record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. (c)Income taxes--It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no Federal income tax provision is required. (d)Security transactions and investment income--Security transactions are recorded on the dates the transactions are entered into (the trade dates). Interest income is recognized on the accrual basis. Discounts and market premiums are amortized into interest income. Realized gains and losses on security transactions are determined on the identified cost basis. (e) Deferred organization expenses and prepaid registration fees--Deferred organization expenses are charged to expenses on a straight-line basis over a five-year period. Costs related to the organization of the second class of shares are charged to expense over a period not exceeding five years. Prepaid registration fees are charged to expenses as the related shares are issued. (f)Dividends and distributions--Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. 2. Investment Advisory Agreement and Transactions with Affiliates: The Fund has entered into an Investment Advisory Agreement with Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994 the investment advisory business of FAM was reorganized from a corporation to a limited partnership. Both prior to and after the reorganization, ultimate control of FAM was vested with Merrill Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is Princeton Services, Inc., an indirect wholly-owned subsidiary of ML & Co. The limited partners are ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also an indirect wholly-owned subsidiary of ML & Co. The Fund also entered into Distribution Agreements and a Distribution Plan with Merrill Lynch Funds Distributor, Inc. ("MLFD" or the "Distributor"), a wholly-owned subsidiary of Merrill Lynch Investment Management, Inc. FAM is responsible for the management of the Fund's Portfolios and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, FAM receives at the end of each month a fee with respect to each Portfolio at the annual rates set forth below which are based upon the average daily value of the Fund's net assets. Rate of Advisory Fee Aggregate of Average Daily Limited Net Assets of the Three Insured National Maturity Combined Portfolios Portfolio Portfolio Portfolio Not exceeding $250 million 0.40 % 0.50 % 0.40 % In excess of $250 million but not exceeding $400 million. 0.375 0.475 0.375 In excess of $400 million but not exceeding $550 million 0.375 0.475 0.35 In excess of $550 million but not exceeding $1.5 billion 0.375 0.475 0.325 In excess of $1.5 billion 0.35 0.475 0.325 The Investment Advisory Agreement obligates FAM to reimburse the Fund to the extent that the Fund's expenses (excluding interest, taxes, distribution fees, brokerage fees and commissions and extraordinary items) exceed 2.5% of the Fund's first $30 million of average daily net assets, 2.0% of the Fund's next $70 million of average daily net assets, and 1.5% of the average daily net assets in excess thereof. No fee payment will be made to FAM with respect to any Portfolio during any fiscal year which will cause the expenses of such Portfolio to exceed the pro rata expense limitation applicable to such Portfolio at the time of such payment. The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940 pursuant to which MLFD receives a distribution fee from the Fund for the sale of Class B Shares of the Portfolios at the end of each month at the annual rate of 0.50% (in the case of the Insured Portfolio and the National Portfolio) or 0.25% (in the case of the Limited Maturity Portfolio) and an account maintenance fee at the annual rate of 0.25% (in the case of the Insured Portfolio and the National Portfolio) or 0.10% (in the case of the Limited Maturity Portfolio) of the average daily net assets of the Class B Shares of the respective Portfolios. Pursuant to a sub-agreement with the Distributor, Merrill Lynch also provides the account maintenance and distribution services to the Fund. The ongoing account maintenance fee compensates the Distributor and Merrill Lynch for providing account maintenance services to Class B shareholders. This fee is to compensate the Distributor for services provided and the expenses borne by it under the Plan. As authorized by the Plan, the Distributor has entered into an agreement with Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S"), an affiliate of Merrill Lynch Investment Management, Inc., which provides for the compensation of MLPF&S for providing distribution-related services to the Fund. For the year ended June 30, 1994, MLFD earned underwriting discounts, and MLPF&S earned dealer concessions on sales of the Fund's Class A Shares as follows: Insured National Limited Maturity Portfolio Portfolio Portfolio MLFD $1,456,474 $103,594 $657,688 MLPF&S 151,583 977,865 88,660 MLPF&S received contingent deferred sales charges of $2,370,916 relating to transactions in Class B Shares, amounting to $1,469,123, $718,890 and $190,903 in the Insured, National and Limited Maturity Portfolios, respectively. Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is the Fund's transfer agent. Accounting services are provided to the Fund by FAM at cost. Certain officers and/or directors of the Fund are officers and/or directors of FAM, FAMI, MLFD, FDS, MLPF&S, and/or ML & Co. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the year ended June 30, 1994 were as follows: Purchases Sales Insured Portfolio $ 819,735,196 $ 1,269,238,817 National Portfolio 1,217,057,053 1,382,174,524 Limited Maturity Portfolio 478,060,792 393,735,111 Net realized and unrealized gains (losses) as of June 30, 1994 were as follows: Realized Unrealized Insured Portfolio Gains Gains Long-term investments $ 80,935,129 $ 12,315,934 -------------- --------------- Total $ 80,935,129 $ 12,315,934 ============== =============== Realized Unrealized National Portfolio Gains Losses Long-term investments $ 43,882,749 $ (36,461,286) Short-term investments 297,749 -- Financial future contracts on options 17,828,347 -- -------------- --------------- Total $ 62,008,845 $ (36,461,286) ============== =============== Realized Unrealized Limited Maturity Portfolio Losses Losses Long-term investments $ (903,904) $ (1,387,594) Short-term investments (64,432) -- -------------- --------------- Total $ (968,336) $ (1,387,594) ============== =============== As of June 30, 1994, net unrealized appreciation/depreciation for Federal income tax purposes were as follows: Gross Gross Net Unrealized Unrealized Unrealized Appreciation Appreciation Depreciation (Depreciation) Insured Portfolio $105,945,234 $93,629,300 $ 12,315,934 National Portfolio 37,049,072 73,510,358 (36,461,286) Limited Maturity Portfolio 3,054,399 4,441,993 (1,387,594) The aggregate cost of investments at June 30, 1994 for Federal income tax purposes was $2,690,285,866 for the Insured Portfolio, $1,634,000,759 for the National Portfolio, and $936,307,940 for the Limited Maturity Portfolio. 4. Capital Share Transactions: Net increase (decrease) in net assets derived from capital share transactions for the years ended June 30, 1994 and June 30, 1993 were ($52,099,956) and $235,653,905, respectively, for the Insured Portfolio; $44,114,517 and $153,435,527, respectively, for the National Portfolio and $7,793,356 and $321,893,595, respectively, for the Limited Maturity Portfolio. Transactions in capital shares for Class A and Class B Shares were as follows: Insured Portfolio Class A Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 33,131,876 $ 280,935,110 Shares issued to shareholders in reinvestment of dividends and distributions 9,445,296 80,198,475 ----------- -------------- Total issued 42,577,172 361,133,585 Shares redeemed (53,818,184) (453,958,624) ----------- -------------- Net decrease (11,241,012) $ (92,825,039) =========== ============== Insured Portfolio Class A Shares for the Year Dollar Ended June 30, 1993 Shares Amount Shares sold 32,564,428 $ 274,538,370 Shares issued to shareholders in reinvestment of dividends and distributions 8,286,565 69,474,166 ----------- -------------- Total issued 40,850,993 344,012,536 Shares redeemed (32,853,753) (276,837,512) ----------- -------------- Net increase 7,997,240 $ 67,175,024 =========== ============== Insured Portfolio Class B Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 21,671,550 $ 184,351,353 Shares issued to shareholders in reinvestment of dividends and distributions 4,290,552 36,402,265 ----------- -------------- Total issued 25,962,102 220,753,618 Shares redeemed (21,552,384) (180,028,535) ----------- -------------- Net increase 4,409,718 $ 40,725,083 =========== ============== Insured Portfolio Class B Shares for the Year Dollar Ended June 30, 1993 Shares Amount Shares sold 32,402,900 $ 272,169,578 Shares issued to shareholders in reinvestment of dividends and distributions 3,185,099 26,690,639 ----------- -------------- Total issued 35,587,999 298,860,217 Shares redeemed (15,508,409) (130,381,336) ----------- -------------- Net increase 20,079,590 $ 168,478,881 =========== ============== National Portfolio Class A Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 8,490,083 $ 92,184,282 Shares issued to shareholders in reinvestment of dividends and distributions 5,189,718 56,058,472 ----------- -------------- Total issued 13,679,801 148,242,754 Shares redeemed (17,141,264) (182,785,636) ----------- -------------- Net decrease (3,461,463) $ (34,542,882) =========== ============== National Portfolio Class A Shares for the Year Dollar Ended June 30, 1993 Shares Amount Shares sold 11,991,383 $ 128,971,704 Shares issued to shareholders in reinvestment of dividends and distributions 4,869,454 52,127,903 ----------- -------------- Total issued 16,860,837 181,099,607 Shares redeemed (14,162,108) (152,405,959) ----------- -------------- Net increase 2,698,729 $ 28,693,648 =========== ============== National Portfolio Class B Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 14,847,862 $ 161,270,898 Shares issued to shareholders in reinvestment of dividends and distributions 1,710,325 18,453,990 ----------- -------------- Total issued 16,558,187 179,724,888 Shares redeemed (9,473,731) (101,067,489) ----------- -------------- Net increase 7,084,456 $ 78,657,399 =========== ============== National Portfolio Class B Shares for the Year Dollar Ended June 30, 1993 Shares Amount Shares sold 17,460,542 $ 188,034,227 Shares issued to shareholders in reinvestment of dividends and distributions 1,136,290 12,165,013 ----------- -------------- Total issued 18,596,832 200,199,240 Shares redeemed (7,032,886) (75,457,361) ----------- -------------- Net increase 11,563,946 $ 124,741,879 =========== ============== Limited Maturity Portfolio Class A Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 37,619,639 $ 375,440,124 Shares issued to shareholders in reinvestment of dividends 1,983,800 19,748,994 ----------- -------------- Total issued 39,603,439 395,189,118 Shares redeemed (44,144,662) (439,707,786) ----------- -------------- Net decrease (4,541,223) $ (44,518,668) =========== ============== Limited Maturity Portfolio Class A Shares for the Year Dollar Ended June 30, 1993 Shares Amount Shares sold 56,244,112 $ 561,589,090 Shares issued to shareholders in reinvestment of dividends 1,844,279 18,415,744 ----------- -------------- Total issued 58,088,391 580,004,834 Shares redeemed (35,373,885) (353,118,455) ----------- -------------- Net increase 22,714,506 $ 226,886,379 =========== ============== Limited Maturity Portfolio Class B Shares for the Year Dollar Ended June 30, 1994 Shares Amount Shares sold 10,622,252 $ 105,858,053 Shares issued to shareholders in reinvestment of dividends 284,833 2,836,330 ----------- -------------- Total issued 10,907,085 108,694,383 Shares redeemed (5,671,375) (56,382,359) ----------- -------------- Net increase 5,235,710 $ 52,312,024 =========== ============== Limited Maturity Portfolio Class B Shares for the Period Dollar Nov. 2, 1992++ to June 30, 1993 Shares Amount Shares sold 10,536,340 $ 105,289,015 Shares issued to shareholders in reinvestment of dividends 69,735 697,915 ----------- -------------- Total issued 10,606,075 105,986,930 Shares redeemed (1,096,869) (10,979,714) ----------- -------------- Net increase 9,509,206 $ 95,007,216 =========== ============== [FN] ++Commencement of Operations. 5. Capital Loss Carryforward: At June 30, 1994, the Fund had a net capital loss carryforward of approximately $4,250,000 in the Limited Maturity Portfolio, of which $1,416,000 expires in 1997, $2,787,000 expires in 1998, $22,000 expires in 1999 and $25,000 expires in 2002. These will be available to offset like amounts of any future taxable gains. INDEPENDENT AUDITORS' REPORT The Board of Directors and Shareholders, Merrill Lynch Municipal Bond Fund, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Insured, National and Limited Maturity Portfolios of Merrill Lynch Municipal Bond Fund, Inc. as of June 30, 1994, the related statements of operations for the year then ended and changes in net assets for each of the years in the two- year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and the financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits 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 and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1994 by correspondence with the custodian and brokers. 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 audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of the Insured, National and Limited Maturity Portfolios of Merrill Lynch Municipal Bond Fund, Inc. as of June 30, 1994, the results of their operations, the changes in their net assets, and the financial highlights for the respective stated periods in conformity with generally accepted accounting principles. Deloitte & Touche Princeton, New Jersey July 29, 1994 IMPORTANT TAX INFORMATION All of the net investment income distributions declared daily by Merrill Lynch Municipal Bond Fund, Inc. during its taxable year ended June 30, 1994 qualify as tax-exempt interest dividends for Federal income tax purposes. Additionally, the following summarizes the capital gain distributions declared by the National and Insured Portfolios during the year: Short-Term Long-Term Record Payable Capital Capital Date Date Gains Gains National Portfolio 12/22/93 12/31/93 $0.138679 $0.156762 Insured Portfolio 12/22/93 12/31/93 $0.026252 $0.200922 There were no capital gains distributions declared by Limited Maturity Portfolio during the year. Please retain this information for your records. APPENDIX GRAPHIC AND IMAGE MATERIALS. ITEM 1: Insured Portfolio: Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Portfolio's Class A Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 6/84 6/94 Insured Portfolio++-- Class A Shares* $9,600 $25,040 Lehman Brothers Municipal Bond Index++++ $10,000 $27,863 A line graph depicting the growth of an investment in the Portfolio's Class B Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 10/21/88** 6/94 Insured Portfolio++-- Class B Shares* $10,000 $14,760 Lehman Brothers Municipal Bond Index++++ $10,000 $15,577 [FN] ++The Insured Portfolio invests primarily in long-term, investment-grade municipal bonds (bonds rated Baa or better) covered by portfolio insurance guaranteeing the timely payment of principal at maturity and interest. ++++This unmanaged Index consists of revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds, all of which mature within 30 years. *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commenced operations on October 21, 1988. ITEM 2: National Portfolio: Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Portfolio's Class A Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 6/84 6/94 National Portfolio++-- Class A Shares* $9,600 $25,559 Lehman Brothers Municipal Bond Index++++ $10,000 $27,863 A line graph depicting the growth of an investment in the Portfolio's Class B Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 10/21/88** 6/94 National Portfolio++-- Class B Shares* $10,000 $14,743 Lehman Brothers Municipal Bond Index++++ $10,000 $15,577 [FN] ++The National Portfolio invests primarily in long-term, investment-grade municipal bonds (bonds rated Baa or better) covered by portfolio insurance guaranteeing the timely payment of principal at maturity and interest. ++++This unmanaged Index consists of revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds, all of which mature within 30 years. *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commenced operations on October 21, 1988. Past performance is not predictive of future performance. ITEM 3: Limited Maturity Portfolio: Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Portfolio's Class A Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index and the Lehman Brothers 3-Yr. General Obligation Bond Index. Beginning and ending values are: 6/84 6/94 Limited Maturity Portfolio++-- Class A Shares* $9,250 $17,442 Lehman Brothers Municipal Bond Index++++ $10,000 $27,863 Lehman Brothers 3-Yr. General Obligation Bond Index++++++ $10,000 $17,607 A line graph depicting the growth of an investment in the Portfolio's Class B Shares compared to growth of an investment in the Lehman Brothers Municipal Bond Index and the Lehman Brothers 3-Yr. General Obligation Bond Index. Beginning and ending values are: 11/02/92** 6/94 Limited Maturity Portfolio++-- Class B Shares* $10,000 $10,531 Lehman Brothers Municipal Bond Index++++ $10,000 $11,033 Lehman Brothers 3-Yr. General Obligation Bond Index++++++ $10,000 $10,739 [FN] ++The Limited Maturity Portfolio invests primarily in investment-grade municipal bonds (rated Baa or better) with a maximum maturity not to exceed 4 years. ++++This unmanaged Index consists of revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds, all of which mature within 30 years. ++++++This unmanaged Index consists of state and local government obligation bonds that mature in 3 years--4 years, rated Baa or better. *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commenced operations on November 2, 1992. Past performance is not predictive of future performance. -----END PRIVACY-ENHANCED MESSAGE-----