-----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, SIvDqSzc8Wez2xx4qJ8CfJVnbKwqSjTx1tw9LhYQT0uOIGFdL4PI1gM3xKxtyXS4 aPjvOiblmQtyNO72+1grsQ== 0000900092-95-000050.txt : 19950301 0000900092-95-000050.hdr.sgml : 19950301 ACCESSION NUMBER: 0000900092-95-000050 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950224 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000225635 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 95515143 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 SEMI-ANNUAL REPORT MERRILL LYNCH MUNICIPAL BOND FUND, INC. FUND LOGO Semi-Annual Report December 31, 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 90 Washington Street, 12th Floor 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 Volatility in the US financial markets continued during the December quarter, largely prompted by concerns of increas- ing inflationary pressures. The possi- bility of continued monetary policy tightening by the Federal Reserve Board was predominant in the minds of investors throughout most of the period. Therefore, there was little surprise in mid-November when the central bank announced the sixth increase in short- term interest rates in 1994. Early in the period, the weakness of the US dollar in foreign exchange markets prompted declines in US stock and bond prices, but some strengthening of the US currency has occurred recently. The manufacturing sector was the driving force behind the US economy through the final quarter of the year, making an important contribution to the substantial increase in corporate earnings. US companies have been successful at containing labor costs, which are an important component of the inflation outlook. Although con- sumer spending grew at a slower pace than in previous economic recoveries, purchases of vehicles and household durable goods rose in the latter months of 1994. Despite the relatively modest rise in consumer spending, the personal savings rate fell to an all-time annual low in 1994. In the weeks ahead, investors will continue to assess economic data and inflationary trends in order to gauge whether further increases in short-term interest rates are likely. The core inflation rate rose less than 3% in 1994 following a 3% increase in 1993, the best sustained inflation performance in 30 years. It is not likely that such positive inflation results will be dupli- cated in 1995. In addition, investor interest in the new year will also be focused on the progress that the new Congress makes on both reducing spend- ing and the Federal budget deficit and passing tax cuts that promote savings and investment. Legislative progress, combined with continued indications of moderate and sustainable levels of economic growth, would be positive for the US capital markets. However, the lagged effects of higher interest rates could slow the economy sharply and with it, the growth of corporate profits. The Municipal Market During the three months ended December 31, 1994, the tax-exempt bond market continued to deteriorate amid signs of a strong domestic economy and a restrictive Federal Reserve Board. By the end of the December quarter, municipal revenue bond yields had increased over 25 basis points (0.25%) to 6.97%. Interest rate volatility remained significant, with yields fluc- tuating by as much as 10 basis points--15 basis points weekly. Long-term US Treasury bonds also remained very volatile during the December quarter. By mid-November, US Treasury yields had risen over 35 basis points to 8.15% before declining to end the quarter at 7.875%. Tax-exempt bonds remained very attrac- tive throughout the quarter. Over the last three months, long-term municipal bonds yielded as much as 90% of comparable US Treasury bonds. Yield ratios in excess of 85% are considered historically attractive to long-term inves- tors. Additionally, with taxable equiva- lent yields in excess of 10% for taxpayers in the 39% tax bracket throughout the quarter, municipal bonds continued to represent considerable value relative to other investment alternatives. The municipal bond market's technical position remained very positive through- out the December quarter. Approxi- mately $36 billion in long-term municipal securities were issued during the three months ended December 31, 1994. This represents a decline of over 48% versus the December 1993 quarter. Similarly, $164 billion in long-term tax-exempt bonds were issued during 1994, a 44% decline from 1993 annual issuance levels. Also, estimates of net cash available for reinvestment in early 1995, based on maturities, coupon income, and advanced refunded matur- ities, were in excess of $25 billion. However, this combination of reduced supply and sizable future demand has not generated lower interest rates as would normally be expected. Once current uncertainties regarding the strength and volatility of the current economic expansion are resolved, and, more importantly, when no further interest rate increases by the Federal Reserve Board can be expected, the municipal bond market appears poised to respond to its present favorable position and recoup some of the price deterioration suffered over the last quarters. Portfolio Strategy The December quarter provided a period of extreme price volatility in the fixed- income markets because of the uncer- tainty of contrasting economic signals and a vacillating foreign exchange picture for the US dollar. Merrill Lynch Municipal Bond Fund, Inc.'s Insured and National Portfolios each maintained cash reserve positions between 7% and 10% of net assets during most of the quarter. These reserve positions give each Portfolio the ability to purchase income-oriented long-term bonds when they are attractively offered. As the quarter was coming to its end, the Portfolios selectively purchased secur- ities as yields approached 6.75%--7.00%. These securities should provide an attractive level of tax-exempt income in the months and years ahead. The Limited Maturity Portfolio contin- ued to be defensively positioned during the December quarter as the Federal Reserve Board continued its restrictive monetary policy by again raising short- term interest rates in November 1994. Both the Federal Funds rate and the discount rate were increased 75 basis points. As a result of this rising interest rate environment and continued strong economic data, we maintained the average portfolio maturity at approxi- mately 14 months, and the cash reserve position at approximately 20% of net assets throughout most of the quarter. This strategy helped cushion the impact on the Portfolio's net asset values during this rapidly rising interest rate environment. In Conclusion We appreciate your ongoing interest in Merrill Lynch Municipal Bond Fund, Inc., and we look forward to serving your investment needs and objectives in 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 February 9, 1995 PERFORMANCE DATA About Fund Performance Since October 21, 1994, investors have been able to purchase shares of the Fund through the Merrill Lynch Select Pricing SM System, which offers four pricing alternatives: *Class A Shares incur a maximum initial sales charge (front-end load) of 4% and bear no ongoing distribution or account mainte- nance fees for Insured and National Portfolios. Limited Maturity Portfolio incurs a maximum initial sales charge (front-end load) of 1% and bears no ongoing distribution or account maintenance fees. *Class B Shares are subject to a maximum contingent deferred sales charge of 4% if redeemed during the first year, decreasing 1% each year thereafter to 0% after the fourth year for Insured and National Portfolios. Limited Maturity Portfolio is subject to a maxi- mum contingent deferred sales charge of 1% if redeemed within one year of purchase. In addition, Insured and National Portfolios are subject to a distribution fee of 0.50% and an account maintenance fee of 0.25%. Limited Maturity Portfolio is subject to a distribution fee of 0.20% and an account maintenance fee of 0.15%. All three classes of shares automatically convert to Class D Shares after 10 years. *Class C Shares are subject to a distribution fee of 0.55% and an account maintenance fee of 0.25% for Insured and National Port- folios. Limited Maturity Portfolio is subject to a distribution fee of 0.20% and an account maintenance fee of 0.15%. In addition, Class C Shares are subject to a 1% contingent deferred sales charge if re- deemed within one year of purchase. *Class D Shares incur a maximum initial sales charge of 4% and an account maintenance fee of 0.25% (but no distribution fee) for Insured and National Portfolios. Limited Maturity Portfolio incurs a maximum initial sales charge of 1% and an account maintenance fee of 0.10% (but no distribution fee). Performance data for the Fund's Class A Shares and Class B Shares are presented in the "Performance Summary" and "Average Annual Total Return" tables on pages 4, 5, 7 and 8. "Aggregate Total Return" tables for Class C and D Shares are presented on page 5. Data for all of the Fund's shares, including Class C and Class D Shares, are presented in the "Recent Performance Results" table. The "Recent Performance Results" table on pages 6 and 7 shows investment results before the deduction of any sales charges for Class A and Class B Shares for the 12-month and 3-month periods ended December 31, 1994 and for Class C and Class D Shares for the period since inception through December 31, 1994. All data in this table assume imposition of the actual total expenses incurred by each class of shares during the relevant period. None of the past results shown should be considered a representa- tion 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. Dividends paid to each class of shares will vary because of the different levels of account maintenance, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. Average Annual Total Return Insured Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 12/31/94 -6.76% -10.49% Five Years Ended 12/31/94 +6.61 + 5.74 Ten Years Ended 12/31/94 +8.99 + 8.54 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 12/31/94 -7.36% -10.81% Five Years Ended 12/31/94 +5.81 + 5.81 Inception (10/21/88) through 12/31/94 +6.26 + 6.26 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payments of applicable contingent deferred sales charge. National Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 12/31/94 -6.55% -10.29% Five Years Ended 12/31/94 +6.52 + 5.65 Ten Years Ended 12/31/94 +9.12 + 8.68 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 12/31/94 -7.27% -10.70% Five Years Ended 12/31/94 +5.70 + 5.70 Inception (10/21/88) through 12/31/94 +6.11 + 6.11 [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 % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 12/31/94 +1.35% +0.34% Five Years Ended 12/31/94 +4.93 +4.72 Ten Years Ended 12/31/94 +5.48 +5.37 [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 12/31/94 +1.03% +0.05% Inception (11/02/92) through 12/31/94 +2.78 +2.78 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after one year. **Assuming payment of applicable contingent deferred sales charge. Aggregate Total Return Insured Portfolio % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 12/31/94 -0.41% -1.38% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after one year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Class D Shares* Sales Charge Sales Charge** Inception (10/21/94) through 12/31/94 -0.30% -4.29% [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. National Portfolio % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 12/31/94 -1.39% -2.35% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after one year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Class D Shares* Sales Charge Sales Charge** Inception (10/21/94) through 12/31/94 -1.29% -5.24% [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. Limited Maturity Portfolio % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 12/31/94 +0.11% -0.88% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after one year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Class D Shares* Sales Charge Sales Charge** Inception (10/21/94) through 12/31/94 +0.13% -0.87% [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. PERFORMANCE DATA (continued) Recent Performance Results*
12 Month 3 Month Standardized 12/31/94 9/30/94++ 12/31/93 % Change % Change++ 30-day Yield Insured Portfolio Class A Shares $7.43 $7.78 $ 8.60 -11.97%(1) -2.69%(1) 5.94% Insured Portfolio Class B Shares 7.43 7.77 8.59 -11.86(1) -2.56(1) 5.42 Insured Portfolio Class C Shares 7.43 7.68 -- -- -1.42(1) 5.39 Insured Portfolio Class D Shares 7.43 7.68 -- -- -1.42(1) 5.28 National Portfolio Class A Shares 9.40 9.96 10.91 -11.93(2) -3.53(2) 6.43 National Portfolio Class B Shares 9.39 9.95 10.90 -11.94(2) -3.53(2) 5.92 National Portfolio Class C Shares 9.40 9.85 -- -- -2.45(2) 5.88 National Portfolio Class D Shares 9.40 9.85 -- -- -2.45(2) 6.18 Limited Maturity Portfolio Class A Shares 9.77 9.85 10.01 - 2.40 -0.81 3.92 Limited Maturity Portfolio Class B Shares 9.77 9.85 10.01 - 2.40 -0.81 3.60 Limited Maturity Portfolio Class C Shares 9.77 9.83 -- -- -0.61 3.80 Limited Maturity Portfolio Class D Shares 9.77 9.83 -- -- -0.61 3.83 Insured Portfolio Class A Shares--Total Return - 6.76(3) -1.24(4) Insured Portfolio Class B Shares--Total Return - 7.36(5) -1.31(6) Insured Portfolio Class C Shares--Total Return -- -0.41(7) Insured Portfolio Class D Shares--Total Return -- -0.30(8) National Portfolio Class A Shares--Total Return - 6.55(9) -1.99(10) National Portfolio Class B Shares--Total Return - 7.27(11) -2.20(12) National Portfolio Class C Shares--Total Return -- -1.39(13) National Portfolio Class D Shares--Total Return -- -1.29(14) Limited Maturity Portfolio Class A Shares--Total Return + 1.35(15) +0.12(16) Limited Maturity Portfolio Class B Shares--Total Return + 1.03(17) +0.03(18) Limited Maturity Portfolio Class C Shares--Total Return -- +0.11(19) Limited Maturity Portfolio Class D Shares--Total Return -- +0.13(20) *Investment results shown do not reflect any sales charges; results shown would be lower if a sales charge was included. ++Investment results shown for Class C and Class D Shares are since inception (10/21/94). (1)Percent change includes reinvestment of $0.141 per share capital gains distributions. (2)Percent change includes reinvestment of $0.209 per share capital gains distributions. (3)Percent change includes reinvestment of $0.454 per share ordinary income dividends and $0.141 per share capital gains distributions. (4)Percent change includes reinvestment of $0.121 per share ordinary income dividends and $0.141 per share capital gains distributions. (5)Percent change includes reinvestment of $0.394 per share ordinary income dividends and $0.141 per share capital gains distributions. (6)Percent change includes reinvestment of $0.105 per share ordinary income dividends and $0.141 per share capital gains distributions. (7)Percent change includes reinvestment of $0.076 per share ordinary income dividends and $0.141 per share capital gains distributions. (8)Percent change includes reinvestment of $0.084 per share ordinary income dividends and $0.141 per share capital gains distributions. (9)Percent change includes reinvestment of $0.599 per share ordinary income dividends and $0.209 per share capital gains distributions. (10)Percent change includes reinvestment of $0.161 per share ordinary income dividends and $0.209 per share capital gains distributions. (11)Percent change includes reinvestment of $0.522 per share ordinary income dividends and $0.209 per share capital gains distributions. (12)Percent change includes reinvestment of $0.142 per share ordinary income dividends and $0.209 per share capital gains distributions. (13)Percent change includes reinvestment of $0.103 per share ordinary income dividends and $0.209 per share capital gains distributions. (14)Percent change includes reinvestment of $0.113 per share ordinary income dividends and $0.209 per share capital gains distributions. (15)Percent change includes reinvestment of $0.373 per share ordinary income dividends. (16)Percent change includes reinvestment of $0.102 per share ordinary income dividends. (17)Percent change includes reinvestment of $0.341 per share ordinary income dividends. (18)Percent change includes reinvestment of $0.093 per share ordinary income dividends. (19)Percent change includes reinvestment of $0.071 per share ordinary income dividends. (20)Percent change includes reinvestment of $0.072 per share ordinary income dividends.
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 1994 8.60/7.43 10.91/ 9.40 10.01/ 9.77 0.60(7) 0.81(7) 0.37 - 6.76 - 6.55 +1.35 ------ ------ ----- Total $10.55 $12.97 $8.86 Cumulative total return as of 12/31/94: +201.31%** +277.44%** +143.10%** *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 charges; 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. (7)Includes capital gains of $0.141 and $0.209 for the Insured and National Portfolios, respectively.
PERFORMANCE DATA (concluded) 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 1994 8.59/7.43 10.90/ 9.39 10.01/ 9.77 0.53(5) 0.73(5) 0.34 - 7.36 - 7.27 +1.03 ------ ------ ----- Total $ 3.44 $ 4.61 $0.75 Cumulative total return as of 12/31/94: +45.71%** +44.40%** +6.10%** *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 charges; 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 Portfolios. (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. (5)Includes capital gains of $0.141 and $0.209 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 EDA Economic Development Authority GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds RAN Revenue Anticipation Notes RAW Revenue Anticipation Warrants RIB Residual Interest Bonds SAVRS Select Auction Variable Rate Securities S/F Single-Family TAN Tax Anticipation Notes TRAN Tax Revenue Anticipation Notes UPDATES Unit Priced Demand 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--0.9% AAA Aaa $ 1,625 Alabama Water Pollution Control Authority, Revolving Fund Loan, Series A, 6.75% due 8/15/2017(b) $ 1,642 Auburn University, Alabama, Revenue Refunding Bonds(e): AAA Aaa 5,925 (Athletic Project), 5.25% due 4/01/2010 5,150 AAA Aaa 5,000 (General Fee), 5.25% due 6/01/2013 4,248 AAA Aaa 1,250 Mobile, Alabama, GO, Refunding and Capital Improvement Bonds, 10.875% due 11/01/2007(c) 1,663 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) 6,477 Alaska--0.7% Kenai Peninsula Borough, Alaska, GO(b): AAA Aaa 6,450 8.40% due 1/01/2000 7,166 AAA Aaa 8,460 8.40% due 1/01/2001 9,525 Arizona--2.2% AAA Aaa 4,000 Arizona State Municipal Financing Program, COP, Series 34, 7.25% due 8/01/2009(g) 4,351 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) 4,065 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) 4,129 A1+ VMIG1 1,200 VRDN, Series B2, 4.10% due 12/01/2008(f) 1,200 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) 8,368 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 10,538 AAA Aaa 7,340 Series A-1, 7.625% due 1/01/2019 7,715 Phoenix, Arizona, Street and Highway User, Revenue Refunding Bonds, Junior-Lien, Series A(h)(j)(k): AAA Aaa 5,000 5.63% due 7/01/2012 1,578 AAA Aaa 5,000 5.63% due 7/01/2013 1,472 AAA Aaa 7,000 Tucson, Arizona, Refunding Bonds, 4.90% due 7/01/2013(h) 5,723 AAA Aaa 5,250 University of Arizona Medical Center Corporation, Hospital Revenue Refunding Bonds, 5% due 7/01/2021(e) 4,112 California--7.6% 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) 4,277 AAA Aaa 6,000 Anaheim, California, Public Financing Authority, Revenue Refunding Bonds (Electric Utility Projects), 5.625% due 10/01/2022(e) 4,995 AAA Aaa 65,000 California State, RAW, Series C, 5.71% due 4/25/1996(h) 65,116 AAA Aaa 5,000 Contra Costa, California, Water District Water Revenue Refunding Bonds, Series F, 5% due 10/01/2020(h) 3,872 AAA Aaa 12,000 Fresno, California, Sewer Revenue Bonds, Series A-1, 6.25% due 9/01/2014(b) 11,616 AAA Aaa 3,935 Los Angeles, California, Mortgage Revenue Refunding Bonds, Series A, 6.30% due 1/01/2025(e) 3,601 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) 2,359 Los Angeles, California, Wastewater System Revenue Refunding Bonds(e): AAA Aaa 5,000 Series A, 5.70% due 6/01/2001 4,451 AAA Aaa 12,825 Series A, 5.70% due 6/01/2020 11,129 AAA Aaa 5,000 Series C, 5.60% due 6/01/2015 4,362
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) California AAA Aaa $ 6,000 Los Angeles County, California, Transportation Commission, (concluded) Sales Tax Revenue Bonds, Series A, 6.75% due 7/01/2001(a)(h) $ 6,401 AAA Aaa 17,600 Northern California Power Agency, Multiple Capital Facilities Revenue Bonds, 5% due 8/01/2025(e) 17,206 AAA Aaa 12,500 San Diego, California, Sewer Revenue Bonds, Series A, 5.25% due 5/15/2020(b) 10,133 University of California, Revenue Bonds (Multiple Purpose Projects): AAA Aaa 4,650 Refunding, Series C, 5% due 9/01/2012(b) 3,817 AAA Aaa 12,075 Refunding, Series C, 5.25% due 9/01/2016(b) 9,932 AAA Aaa 16,000 Refunding, Series C, 5% due 9/01/2023(b) 12,287 AAA Aaa 5,000 Series D, 6.375% due 9/01/2024(e) 4,779 Delaware--0.5% AAA Aaa 6,000 Delaware EDA, PCR, Refunding (Delmarva Power and Light Company), Series B, 7.30% due 3/01/2014(e) 6,219 AAA Aaa 3,750 Delaware State Health Facilities Authority, Crossover Revenue Refunding Bonds (Delaware Medical Center), 7% due 10/01/2015(e) 3,808 District of District of Columbia, Hospital Revenue Refunding Bonds Columbia--0.7% (National Rehabilitation Hospital--Medlantic), Series A(e): AAA Aaa 7,000 7.10% due 11/01/2011 7,162 AAA Aaa 9,250 7.125% due 11/01/2019 9,371 Florida--6.6% AAA Aaa 2,735 Altamonte Springs, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health/Sunbelt), Series A, 7% due 11/15/2014(b) 2,810 Florida Municipal Power Agency Revenue Bonds: AAA Aaa 14,150 (All Requirements Power Supply Project), 5.10% due 10/01/2025(b) 11,215 AAA Aaa 4,500 Refunding (Saint Lucie Project), 5.25% due 10/01/2021(h) 3,693 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(b) 5,094 Florida Turnpike Authority, Turnpike Revenue Bonds, Series A: AAA Aaa 2,935 9.50% due 7/01/2001(b) 3,527 AAA Aaa 4,500 Refunding, 5% due 7/01/2015(h) 3,675 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding and Improvement Bonds (Baptist Medical Center Project): AAA Aaa 500 11.50% due 10/01/2012(c) 749 AAA Aaa 26,500 Series A, 7.30% due 6/01/2019(e) 27,497 AAA Aaa 8,750 Jacksonville, Florida, Port Authority Revenue Bonds, AMT, 7.875% due 11/01/2018(g) 9,182 AAA Aaa 20,000 Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds, 5% due 4/01/2020(e) 19,803 AAA Aaa 16,700 Martin County, Florida, PCR, Refunding (Florida Power and Light Company Project), 7.30% due 7/01/2020(e) 17,463 AAA Aaa 11,585 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled Hospital Loan), Series B, 7.875% due 12/01/2025(g) 12,164 AAA Aaa 3,950 Orange County, Florida, HFA, Mortgage Revenue Refunding Bonds, Series A, 7.60% due 1/01/2024(h) 4,149 Palm Beach County, Florida, Criminal Justice Facilities, Revenue Refunding Bonds(h): AAA Aaa 5,000 5.375% due 6/01/2008 4,518 AAA Aaa 11,985 5.375% due 6/01/2009 10,766 AAA Aaa 4,935 5.375% due 6/01/2010 4,368 AAA Aaa 4,430 5.375% due 6/01/2011 3,899 AAA Aaa 3,500 Saint Lucie County, Florida, Sales Tax Revenue Refunding Bonds, 5% due 10/01/2023(h) 2,745 AAA Aaa 5,700 South Broward, Florida, Hospital District Revenue Bonds, SAVRS, 6.469% due 5/01/2021(b)(d) 5,658 AAA Aaa 5,000 Tampa, Florida, Revenue Bonds (Allegany Health System--Saint Joseph's), 5.125% due 12/01/2023(e) 3,999 AAA Aaa 2,000 Tampa, Florida, Water and Sewer System Revenue Bonds, Sub-Lien, Series A, 7.25% due 10/01/2016(b) 2,102 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) 3,049 Georgia--4.3% AAA Aaa 5,500 Chatham County, Georgia, School District, UT, 6.75% due 8/01/2019(e) 5,541 AAA Aaa 5,000 Douglasville-Douglas County, Georgia, Water and Sewer Authority, Water and Sewer Revenue Refunding Bonds, 5.625% due 6/01/2015(b) 4,437 Georgia Municipal Electric Authority, Power Revenue Bonds: AAA Aaa 12,100 Refunding, Series Z, 5.50% due 1/01/2012(h) 10,724 AAA Aaa 20,000 Series EE, 7% due 1/01/2025(b) 20,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Refunding Bonds(b): AAA Aaa 3,990 Series A, 5.125% due 7/01/2019 3,214 AAA Aaa 10,500 Series A, 5.125% due 7/01/2020 8,426 AAA Aaa 18,605 Series P, 6% due 7/01/2013 17,536 AAA Aaa 28,165 Series P, 6.25% due 7/01/2020 26,790 AAA Aaa 9,000 Municipal Electric Authority, Georgia, Special Obligation Bonds (Fifth Crossover Series, Project One), 6.40% due 1/01/2013(b) 8,915 Hawaii--2.9% Hawaii County, Hawaii, Revenue Refunding and Improvement Bonds, GO, UT, Series A(h): AAA Aaa 1,000 5.60% due 5/01/2012 898 AAA Aaa 1,000 5.60% due 5/01/2013 895 Hawaii Department of Budget and Finance, Special Purpose Mortgage Revenue Bonds (Hawaiian Electric Company, Inc.), AMT(e): AAA Aaa 4,340 7.625% due 12/01/2018 4,539 AAA Aaa 5,000 Series C, 7.375% due 12/01/2020 5,167 AAA Aaa 4,500 Hawaii Harbor Capital Improvement Revenue Bonds, AMT, 7% due 7/01/2017(e) 4,544 Hawaii State Airport System Revenue Bonds: AAA Aaa 21,795 AMT, 7.30% due 7/01/2020(b) 22,299 AAA Aaa 23,200 AMT, Second Series, 7.50% due 7/01/2020(h) 24,114 AAA Aaa 10,000 Refunding, Series 1993, 6.45% due 7/01/2013(e) 9,841 Illinois--5.7% 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) 26,489 AAA Aaa 25,000 Chicago, Illinois, Public Building Commission Revenue Bonds, Series A, 7.125% due 1/01/2015(c)(e) 26,417 AAA Aaa 27,000 Cook County, Illinois, GO, UT, Series A, 6.60% due 11/15/2022(e) 26,392 AAA Aaa 11,000 Evergreen Park, Illinois, Hospital Facility Revenue Refunding Bonds (Little Company of Mary Hospital), 7.75% due 2/15/2009(e) 11,602 Illinois Health Facilities Authority Revenue Bonds: AAA Aaa 3,250 (Elmhurst Memorial Hospital), 6.625% due 1/01/2022(h) 3,164 AAA Aaa 4,000 (Methodist Health Project), SAVRS, 4% due 5/01/2021(b)(d) 3,995 AAA Aaa 5,500 (Northern Illinois Medical Center), 7.875% due 9/01/2014(b) 5,754 AAA Aaa 20,000 (Rush-Presbyterian Saint Luke's Medical Center), 5% due 10/01/2024(e) 19,721 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds, Series A(j): AAA Aaa 7,000 5.65% due 6/15/2010(h)(k) 2,509 AAA Aaa 5,000 5.70% due 6/15/2011(h)(k) 1,674 AAA Aaa 6,600 6.50% due 6/15/2027(b) 6,333 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) 2,736 Indiana--1.2% AAA Aaa 6,725 Goshen-Chandler, Indiana, School Building Corporation, First Mortgage Revenue Refunding Bonds, UT, 5.75% due 1/15/2010(e) 6,119 AAA Aaa 2,470 Indiana Employment Development Commission, Environmental Revenue Bonds (Public Service Company of Indiana), AMT, 7.50% due 3/15/2015(e) 2,560 AAA Aaa 5,000 Indianapolis, Indiana, Gas Utility Revenue Bonds, Series A, 5.875% due 6/01/2024(b) 4,397 AAA Aaa 4,040 Indianapolis, Indiana, Local Public Improvement Bond Bank, Series A, 7.90% due 2/01/2002(a)(g) 4,524 AAA Aaa 2,000 Jasper County, Indiana, PCR, Refunding (Collateral--Northern Indiana Public Service), 7.10% due 7/01/2017(e) 2,038 AAA Aaa 3,830 Purdue University, Indiana, University Revenue Bonds (Purdue University Dormitory System), Series B, 6% due 7/01/2001(a)(b) 3,945 AAA Aaa 3,550 Rockport, Indiana, PCR, Refunding (Indiana-Michigan Power), Series B, 7.60% due 3/01/2016(h) 3,755
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Iowa--0.4% AAA Aaa $ 5,000 Des Moines, Iowa, Parking Facilities Revenue Bonds, Series A, 7.25% due 7/01/2015(h) $ 5,130 Iowa Finance Authority, Hospital Facilities Revenue Refunding Bonds (Allen Memorial Hospital), Series A(b): AAA Aaa 3,500 5.50% due 2/15/2013 3,073 AAA Aaa 2,100 5.60% due 2/15/2020 1,792 Kansas--0.4% AAA Aaa 11,175 Kansas City, Kansas, Utility System Revenue Refunding and Improvement Bonds, 6.375% due 9/01/2023(h) 10,894 Kentucky--0.7% AAA Aaa 4,500 Boone County, Kentucky, PCR, Refunding (Collateral--Cincinnati Gas and Electric), Series A, 5.50% due 1/01/2024(e) 3,773 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) 13,294 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) 9,493 Maryland--1.2% AAA Aaa 23,500 Baltimore, Maryland, Revenue Refunding Bonds (Kidder Maryland Water Projects), Series A, 5.65% due 7/01/2020(e) 20,350 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) 2,436 AAA Aaa 4,400 Series B, 7% due 7/01/2022(c) 4,608 AAA Aaa 2,500 Maryland Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (Sinai Hospital Project), 5.25% due 7/01/2019(b) 2,046 Massachusetts--3.2% AAA Aaa 3,175 Massachusetts Bay Transportation Authority, Massachusetts General Transportation System Revenue Bonds, Series A, 7.10% due 3/01/1999(a)(g) 3,406 AAA Aaa 13,000 Massachusetts Bay Transportation Authority Revenue Bonds, COP, Series A, 7.65% due 8/01/2015(i) 13,795 AAA Aaa 5,505 Massachusetts Educational Loan Authority Revenue Bonds, AMT, Issue D, Series A, 7.25% due 1/01/2009(e) 5,676 AAA Aaa 3,250 Massachusetts Port Authority Revenue Bonds, 13% due 7/01/2013(c) 5,280 Massachusetts State Health and Educational Facilities Authority Revenue Bonds: A1+ VMIG1 900 (Capital Asset Program), VRDN, Series C, 5% due 7/01/2005(e)(f) 900 SP-1+ VMIG1 17,000 (Capital Asset Program), VRDN, Series D, 5% due 1/01/2035(e)(f) 17,000 AAA Aaa 6,200 (Saint Elizabeth Hospital), 5% due 8/15/2021(i) 6,146 AAA Aaa 19,755 Massachusetts State, HFA, Housing Revenue Refunding Bonds (Insured Rental), AMT, Series A, 6.75% due 7/01/2028(b) 18,948 AAA Aaa 5,500 Massachusetts State Industrial Finance Agency Revenue Bonds (Brandeis University), Series C, 6.80% due 10/01/2019(e) 5,532 AAA Aaa 4,500 Massachusetts State Turnpike Authority Turnpike Revenue Refunding Bonds, Series A, 5.125% due 1/01/2023(h) 3,562 Michigan--4.6% AAA Aaa 10,500 Chippewa Valley, Michigan, Schools Revenue Refunding Bonds, UT, Series Q, 5% due 5/01/2021(h) 8,261 AAA Aaa 10,000 Grand Rapids, Michigan, Water Supply Systems, Revenue Refunding Bonds, 5.75% due 1/01/2018(h) 8,904 A-1 VMIG1 5,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, VRDN, AMT, Series XII-D, 5% due 10/01/2015(b)(f) 5,000 Michigan State Trunk Line, Series A(h): AAA Aaa 14,365 5.75% due 11/15/2020 12,665 AAA Aaa 26,120 5.80% due 11/15/2024 23,038 Monroe County, Michigan, PCR (Detroit Edison Company Project), AMT: AAA Aaa 16,500 Project 1, 7.65% due 9/01/2020(h) 17,305 AAA Aaa 13,255 Series CC, 7.50% due 12/01/2019(b) 13,765 AAA Aaa 9,745 Series I-B, 7.50% due 9/01/2019(b) 10,102 AAA Aaa 15,000 Western Michigan University Revenue Refunding Bonds, Series A, 6.50% due 7/15/2001(a)(b) 15,846 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) 1,575 AAA Aaa 13,000 Mississippi Hospital Equipment and Facilities Authority, Revenue Refunding and Improvement Bonds (North Mississippi Health Services), 5.75% due 5/15/2016(b) 11,459 Montana--0.2% AAA Aaa 5,600 Montana Health Facilities Authority, Hospital Facilities Revenue Bonds (Deaconess Medical Center Project), SAVRS, Series A, 5% due 2/15/2016(b)(d) 5,600 Nevada--2.3% AAA Aaa 6,500 Clark County, Nevada, Airport Improvement Revenue Bonds, AMT, 8.125% due 7/01/2018(g) 6,886 Las Vegas, Nevada, Revenue Refunding Bonds (h): AAA Aaa 1,500 6.50% due 10/01/2007 1,513 AAA Aaa 2,665 6.50% due 10/01/2008 2,691 AAA Aaa 45,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power), AMT, 6.65% due 6/01/2017(e) 44,226 New Jersey--3.8% 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) 3,462 AAA Aaa 4,750 Jersey City, New Jersey, Sewer Authority Revenue Refunding Bonds, 6.25% due 1/01/2014(b) 4,626 AAA Aaa 20,000 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI Corp.), Series A, 6.35% due 10/01/2022(b) 19,291 AAA Aaa 11,525 New Jersey EDA, Revenue Bonds (Market Transition Facility), Senior Lein, Series A, 5.80% due 7/01/2007(e) 11,157 AAA Aaa 5,000 New Jersey EDA, Water Facilities, Revenue Refunding Bonds (Hackensack Water Company), Series A, 7% due 1/01/2019(b) 5,064 A-1 VMIG1 5,600 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds, VRDN, Series C, 5% due 9/01/2024(e)(f) 5,600 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds (Home Buyer), AMT(e): AAA Aaa 7,065 Series B, 7.90% due 10/01/2022 7,331 AAA Aaa 12,845 Series D, 7.70% due 10/01/2029 13,181 AAA Aaa 23,890 Series M, 7% due 1/01/2026 24,095 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) 10,068 New York City, New York, GO, UT, Series I(b): AAA Aaa 4,505 7.25% due 8/15/2013 4,726 AAA Aaa 2,645 7.25% due 8/15/2013 2,729 AAA Aaa 10,130 7.25% due 8/15/2016 10,423 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) 5,314 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: AAA Aaa 50,000 5% due 6/15/2008(e) 43,943 AAA Aaa 1,090 Series A, 6.75% due 6/15/2014(h) 1,097 AAA Aaa 4,510 Series C, 6.20% due 6/15/2021(b) 4,248 AAA Aaa 11,000 Series F, 5.50% due 6/15/2023(e) 9,295 AAA Aaa 12,075 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Refunding Bonds, Series A, 5.75% due 6/15/2018(h) 10,701 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) 3,203 AAA Aaa 11,500 Series D, 5.90% due 8/15/2022(b) 10,295 Niagara Falls, New York, Public Improvement Bonds, UT(e): AAA Aaa 2,975 6.90% due 3/01/2023 2,991 AAA Aaa 3,190 6.90% due 3/01/2024 3,207 Suffolk County, New York, Water Authority, Waterworks Revenue Refunding Bonds(b): AAA Aaa 1,235 7.375% due 6/01/2012 1,291 AAA Aaa 7,345 Series C, 5.75% due 6/01/2013 6,743
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Ohio--1.3% AAA Aaa $ 12,000 Clermont County, Ohio, Hospital Facilities Revenue Refunding Bonds (Mercy Health Systems), Series A, 7.50% due 9/01/1999(a)(b) $ 13,104 AAA Aaa 12,000 Cleveland, Ohio, Public Power System Revenue Bonds (First Mortgage), Series A, 7% due 11/15/2024(a) 12,310 AAA Aaa 6,700 Ohio Municipal Electric Generation Agency, Joint Ventures, COP, 5.375% due 2/15/2013(b) 5,839 AAA Aaa 3,500 Ohio State Air Quality Development Authority Revenue Refunding Bonds (Cincinnati Gas and Electric), Series B, 5.45% due 1/01/2024(e) 2,924 Oklahoma--1.4% AAA Aaa 7,500 Oklahoma Industrial Authority, Hospital Revenue Bonds (Baptist Medical Center), Series A, 7% due 8/15/2014(b) 7,592 AAA Aaa 5,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds, 7.50% due 6/01/2008(e) 5,242 AAA Aaa 21,560 Tulsa, Oklahoma, Industrial Authority Hospital Revenue Bonds (Saint John's Medical Center, Inc.), 7.25% due 12/01/2009(e) 22,448 Oregon--0.2% AAA Aaa 4,000 Port Portland, Oregon, Portland International Airport, Airport Revenue Bonds, AMT, Series 7-B, 7.10% due 7/01/2021(e) 4,079 Pennsylvania--8.1% AAA Aaa 1,750 Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds (Mercy Hospital of Pittsburgh), 6.75% due 4/01/2021(b) 1,741 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) 6,447 AAA Aaa 3,365 Beaver County, Pennsylvania, IDA, PCR, Refunding (Ohio Edison Company/Mansfield), Series A, 7% due 6/01/2021(h) 3,427 AAA Aaa 3,610 Berks County, Pennsylvania, Municipal Authority Hospital Revenue Bonds (Reading Hospital Medical Center Project), 5.70% due 10/01/2014(e) 3,217 AAA Aaa 3,400 Monroeville, Pennsylvania, Hospital Authority, Hospital Revenue Bonds (Forbes Health System), Series B, 7.35% due 10/01/2015(g) 3,492 AAA Aaa 3,000 Montgomery County, Pennsylvania, Higher Education and Health Authority, Hospital Revenue Bonds (Abington Memorial Hospital), 5.125% due 6/01/2014(b) 2,463 Pennsylvania Higher Educational Assistance Agency, Student Loan Revenue Bonds: AAA Aaa 20,000 5% due 9/03/2026(b) 19,642 AAA Aaa 10,000 AMT, 3.52% due 9/03/2026(b) 9,821 AAA Aaa 16,000 AMT, 5% due 3/01/2020(e) 16,484 AAA Aaa 34,000 AMT, 6.172% due 3/01/2022(b) 30,625 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) 1,502 AAA Aaa 4,250 (Temple University), First Series, 6.50% due 4/01/2021(e) 4,181 AAA Aaa 10,390 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series L, 6.25% due 6/01/2011(b) 10,160 Philadelphia, Pennsylvania, Airport Revenue Bonds, AMT(e): AAA Aaa 8,150 7.75% due 6/15/2015 8,539 AAA Aaa 24,000 7.375% due 6/15/2018 24,510 AAA Aaa 5,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020(c)(e) 5,282 AAA Aaa 5,750 Philadelphia, Pennsylvania, Parking Authority, Airport Parking Revenue Bonds, 7.375% due 9/01/2018(b) 5,943 AAA Aaa 26,800 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 5% due 6/15/2004(h) 24,684 Pittsburgh, Pennsylvania, Revenue Refunding Bonds, UT, Series A(b): AAA Aaa 1,200 5.10% due 9/01/2005 1,091 AAA Aaa 1,000 5.20% due 9/01/2006 913 AAA Aaa 1,000 5.40% due 9/01/2008 902 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) 5,285 AAA Aaa 9,000 4.75% due 9/01/2016 6,881 AAA Aaa 7,500 University Area Joint Authority, Pennsylvania, Sewer Revenue Refunding Bonds, 4.75% due 11/01/2020(e) 5,618 Rhode Island--3.4% Providence, Rhode Island, GO, UT(e): AAA Aaa 1,540 6.75% due 1/15/2008 1,591 AAA Aaa 1,540 6.75% due 1/15/2009 1,585 AAA Aaa 1,540 6.75% due 1/15/2010 1,580 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A(i): AAA Aaa 6,100 6.625% due 8/01/2002(a) 6,492 AAA Aaa 35,000 5.75% due 8/01/2019 30,357 AAA Aaa 16,520 5.50% due 8/01/2020 13,792 AAA Aaa 25,600 Rhode Island Health and Educational Building Corporation Revenue Bonds (Rhode Island Hospital), 5% due 8/15/2021(h) 25,566 South Carolina--4.8% AAA Aaa 7,000 Charleston, South Carolina, Waterworks and Sewer Revenue Refunding and Improvement Bonds, 6% due 1/01/2016(b) 6,452 AAA Aaa 5,000 Florence County, South Carolina, Hospital Revenue Bonds (McLeod Regional Medical Center Project), 6.75% due 11/01/2020(h) 4,945 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) 4,121 AAA Aaa 1,750 Greenville, South Carolina, Hospital System, Hospital Facilities Revenue Bonds, Series A, 7.50% due 5/01/2016(h) 1,824 AAA Aaa 2,410 Myrtle Beach, South Carolina, Water and Sewer System Revenue Bonds, 5.25% due 3/01/2020(e) 1,955 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) 3,785 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds: AAA Aaa 9,150 6.25% due 1/01/2021(h) 8,657 AAA Aaa 7,000 6.30% due 1/01/2022(e) 6,562 AAA Aaa 20,750 Series A, 7.40% due 1/01/2018(b) 21,403 29,100 South Carolina Jobs, EDA, Hospital Facilities Revenue Bonds, 4% due 8/01/2021(b) 24,313 South Carolina State Public Service Authority, Revenue Bonds: AAA Aaa 6,000 Refunding, Series A, 5.50% due 7/01/2011(e) 5,282 AAA Aaa 17,090 Refunding, Series A, 6.375% due 7/01/2021(b) 16,324 AAA Aaa 2,750 Refunding, Series C, 5% due 1/01/2014(b) 2,241 AAA Aaa 4,000 Series B, 6.10% due 7/01/2027(b) 3,654 Tennessee--0.2% AAA Aaa 1,905 Jackson, Tennessee, Water and Sewer System Revenue Bonds, 10.375% due 7/01/2012(b) 2,250 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 9/01/1999(a)(b) 2,411 Texas--13.6% Austin, Texas, Utility System Revenue Bonds, Prior-Lien: AAA Aaa 11,190 9.25% due 5/15/2004(a)(e) 13,776 AAA Aaa 14,825 Refunding, Series A, 6.20% due 11/15/2011(e) 4,892 Brazos River Authority, Texas, PCR (Collateral--Texas Utilities Electric Company Project), AMT: AAA Aaa 6,000 Refunding, 6.50% due 12/01/2027(b) 5,719 AAA Aaa 12,000 Series B, 6.625% due 6/01/2022(h) 11,652 Brazos River Authority, Texas, Revenue Refunding Bonds (Collateral-Houston Light and Power Co.): AAA Aaa 12,700 5.60% due 12/01/2017(e) 11,048 AAA Aaa 13,900 Series B, 7.20% due 12/01/2018(h) 14,240 AAA Aaa 20,000 Brownsville, Texas, Utility System Revenue Refunding Bonds, 6.25% due 9/01/2014(e) 19,275 A1+ VMIG1 1,300 Harris County, Texas, Health Facilities Development Corporation, Special Facilities, Revenue Bonds (Texas Medical Center Project), VRDN, 4% due 2/15/2022(e)(f) 1,300 AAA Aaa 5,000 Harris County, Texas, Hospital District Mortgage, Revenue Refunding Bonds, 7.40% due 2/15/2010(b) 5,418 AAA Aaa 1,695 Harris County, Texas, Toll Road Revenue Bonds, Series A, 6.50% due 8/15/2011(h) 1,688 Harris County, Texas, Toll Road Senior Lien Revenue Bonds: AAA Aaa 6,045 Refunding, 5.30% due 8/15/2013(b) 5,157 AAA Aaa 8,300 Refunding, 5.375% due 8/15/2020(h) 6,917 AAA Aaa 4,000 Refunding, 5.50% due 8/15/2021(h) 3,403 AAA Aaa 10,305 Refunding, Series A, 6.50% due 8/15/2002(a)(h) 10,903 AAA Aaa 15,250 Series A, 6.50% due 8/15/2002(a)(b) 16,135 AAA Aaa 2,750 Series A, 6.50% due 8/15/2017(b) 2,710
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 $ 8,375 Houston, Texas, Water and Sewer System Revenue Bonds, Junior Lien, (concluded) Series A, 6.375% due 12/01/2022(e) $ 8,063 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Junior Lien, Series C(b)(j): AAA Aaa 12,700 5.70% due 12/01/2010(k) 4,470 AAA Aaa 45,960 5.70% due 12/01/2011(k) 15,123 AAA Aaa 53,850 5.78% due 12/01/2012(k) 16,534 AAA Aaa 18,400 5.75% due 12/01/2015 16,428 AAA Aaa 3,500 Houston, Texas, Water Conveyance System COP, Series J, 6.25% due 12/15/2013(b) 3,387 Lower Colorado River Authority, Texas, Revenue Refunding Bonds: AAA Aaa 4,415 5.60% due 1/01/2009(c)(e)(j) 1,845 AAA Aaa 650 Series B, 7% due 1/01/2001(a)(b) 698 Matagorda County, Texas, Navigation District No. 1, PCR, AMT: AAA Aaa 5,000 (Collateralized--Central Power and Light Company Project), 7.50% due 3/01/2020(b) 5,150 AAA Aaa 8,250 (Collateralized--Houston Light and Power), Series D, 7.60% due 10/01/2019(h) 8,538 Matagorda County, Texas, Navigational District No. 1, Revenue Refunding Bonds (Houston Light and Power): AAA Aaa 11,800 Series A, 6.70% due 3/01/2027(b) 11,830 AAA Aaa 26,305 Series C, 7.125% due 7/01/2019(h) 26,789 AAA Aaa 6,470 Series E, 7.20% due 12/01/2018(h) 6,614 AAA VMIG1 11,000 North Texas Higher Education Authority Incorporation, Student Loan Revenue Bonds, VRDN, AMT, Series C, 5% due 4/01/2020(b)(f) 11,000 AAA Aaa 15,000 Southwest Higher Education Authority Incorporated, Texas, Revenue Refunding Bonds (Southern Methodist University), Series B, 6.25% due 10/01/2022(h) 13,939 Texas Municipal Power Agency, Revenue Refunding Bonds: AAA Aaa 10,000 5.50% due 9/01/2010(e) 8,935 AAA Aaa 2,900 Series A, 6.75% due 9/01/2012(b) 2,938 Texas State Public Finance Authority, Building Revenue Capital Appreciation Refunding Bonds(e)(j): AAA Aaa 7,000 5.80% due 2/01/2009 2,805 AAA Aaa 2,890 6.10% due 2/01/2011 1,004 AAA Aaa 8,500 5.81% due 2/01/2012 2,757 Texas Turnpike Authority, Turnpike Revenue Refunding Bonds (Dallas North Thruway)(b): AAA Aaa 3,230 4.75% due 1/01/2011 2,626 AAA Aaa 2,085 4.75% due 1/01/2013 1,662 AAA Aaa 25,875 Trinity River Authority, Texas, Regional Wastewater System Revenue Refunding Bonds, Series A, 5% due 8/01/2016(b) 20,791 Utah--2.2% AAA VMIG1 500 Emery County, Utah, PCR, Refunding (Pacificorp. Projects), VRDN, 5% due 11/01/2024(b)(f) 500 AAA Aaa 2,805 Salt Lake City, Utah, Hospital Revenue Bonds (Holy Cross Health System Corporation--Holy Cross Hospital), 7.375% due 12/01/1996(a)(h) 2,963 AAA Aaa 28,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospital, Incorporated), 5% due 5/15/2020(b) 27,596 AA- Aa2 1,000 Uintah County, Utah, PCR (Desert Generation and Transmission Cooperative--National Rural Utilities Company), Series 1984 F-2, 10.50% due 6/15/2001(a) 1,252 AAA Aaa 2,650 Utah Board of Regents, Student Loan Revenue Bonds, AMT, Series F, 7.45% due 11/01/2008(b) 2,771 A1+ VMIG1 3,100 Utah Board of Regents, Student Loan Revenue Bonds, VRDN, AMT, Series C, 6.50% due 11/01/2013(b)(f) 3,100 A1+ VMIG1 11,300 Utah Board of Regents, Student Loan Revenue Bonds, VRDN, Series B, 5% due 11/01/2000(b)(f) 11,300 Utah Municipal Power Agency, Electric System Revenue Refunding Bonds, Series A(h): AAA Aaa 3,120 5.50% due 7/01/2012 2,732 AAA Aaa 3,295 5.50% due 7/01/2013 2,879 Vermont--0.8% AAA Aaa 18,950 Vermont, HFA, Revenue Bonds (Home Mortgage Purchase), AMT, Series B, 7.60% due 12/01/2024(e) 19,741 Virginia--0.9% AAA Aaa 5,000 Danville, Virginia, IDA, Hospital Revenue Refunding Bonds (Danville Regional Medical Center), 6.50% due 10/01/2019(h) 4,850 AAA Aaa 16,800 Prince William County, Virginia, Service Authority, Water and Sewer System, Revenue Refunding Bonds, 5% due 7/01/2021(h) 13,143 AAA Aaa 5,000 Winchester, Virginia, IDA, Hospital Facilities Revenue Refunding Bonds (Winchester Medical Center), SAVRS, 4.89% due 12/01/2014(b)(d) 5,000 Washington--4.9% AAA Aaa 33,535 Seattle, Washington, Municipal Light and Power Revenue Bonds, 6.625% due 7/01/2020(h) 33,229 Seattle, Washington, Municipality, Metropolitan Seattle, Sewer Revenue Bonds: AAA Aaa 3,865 Refunding, Series Z, 5.45% due 1/01/2022(b) 3,203 AAA Aaa 2,465 Series W, 6.25% due 1/01/2022(e) 2,301 AAA Aaa 4,485 Series W, 6.25% due 1/01/2023(e) 4,183 Seattle, Washington, Municipality, Metropolitan Seattle, Sewer Revenue Refunding Bonds(h): AAA Aaa 8,155 Series X, 5.30% due 1/01/2008 7,200 AAA Aaa 9,605 Series X, 5.375% due 1/01/2009 8,429 AAA Aaa 9,755 Series X, 5.40% due 1/01/2010 8,533 AAA Aaa 10,960 Series X, 5.40% due 1/01/2011 9,555 AAA Aaa 6,560 Series Y, 5.70% due 1/01/2015 5,790 AAA Aaa 3,315 Series Y, 5.70% due 1/01/2016 2,900 AAA Aaa 10,000 Seattle, Washington, Solid Waste Utility, Revenue Refunding Bonds, Series A, 6.875% due 5/01/2009(g) 10,139 AAA Aaa 11,900 Tacoma, Washington, Sewer Revenue Bonds, 7.625% due 12/01/1998(a)(e) 12,762 AAA Aaa 3,250 University of Washington Revenue Bonds (Housing and Dining), 7% due 12/01/2021(e) 3,306 AAA Aaa 7,000 Washington Health Care Facilities Authority Revenue Bonds (Southwest Washington Hospital--Vancouver), 7.125% due 10/01/2019(g) 7,086 D NR* 719 Washington Public Power Supply System, Generating Facilities Revenue Bonds (Nuclear Project Numbers 4 and 5), Series D, 12.50% due 7/01/2010 719 AAA Aaa 5,750 Washington Public Power Supply System, Revenue Refunding Bonds (Project No. 1), Series A, 6.25% due 7/01/2017(e) 5,413 West Virginia--1.1% 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) 9,434 AAA Aaa 10,100 Putnam County, West Virginia, PCR, Refunding (Appalachian Power Company Project), Series D, 5.45% due 6/01/2019(b) 8,444 AAA Aaa 5,600 West Virginia School Building Authority Revenue Bonds (Capital Improvement), Series B, 6.75% due 7/01/2010(e) 5,633 AAA Aaa 5,000 West Virginia State Parkways Economic Development and Tourism Authority, 5.80% due 5/15/2013(h) 4,543 Wisconsin--0.9% AAA Aaa 7,000 Superior, Wisconsin, Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021(h) 7,154 Wisconsin Health and Educational Facilities Authority Revenue Bonds: AAA Aaa 1,500 (Saint Luke's Medical Center Project), 7.10% due 8/15/2019(e) 1,523 AAA Aaa 5,750 (Waukesha Memorial Hospital), Series B, 7.25% due 8/15/2019(b) 5,894 AAA Aaa 6,500 Wisconsin Public Power System Incorporated, Power Supply System Revenue Bonds, Series A, 6.875% due 7/01/2001(a)(b) 7,004 Total Investments (Cost--$2,487,700)--100.1% 2,444,913 Liabilities in Excess of Other Assets--(0.1)% (1,196) ---------- Net Assets--100.0% $2,443,717 ========== (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 December 31, 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 December 31, 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. *Not Rated. 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--4.2% Valdez, Alaska, Marine Terminal Revenue Refunding Bonds: AA- A1 $ 6,000 (British Petroleum Pipeline), Series B, 7% due 12/01/2025 $ 5,947 AA- A1 33,835 (British Petroleum Pipeline), Series B, 5.50% due 10/01/2028 27,145 AA- A1 27,150 (Sohio Pipeline), 7.125% due 12/01/2025 27,147 Arizona--0.0% A1+ VMIG1 200 Maricopa County, Arizona, IDA, Hospital Facilities Revenue Bonds (Samaritan Health Services Hospital), VRDN, Series B2, 4.10% due 12/01/2008(a) 200 California--3.2% AA Aa 17,535 California State, Department of Water Resources, Water System SP-1+ MIG1++ Revenue Refunding Bonds (Central Valley Project), Series L, 5.875% due 12/01/2025 15,189 7,400 California State, GO, RAN, Series A, 5% due 6/28/1995 7,411 NR* NR* 4,000 Long Beach, California, GO, Special Tax Community Facilities, District No. 3, 6.375% due 9/01/2023 3,435 SP-1+ MIG1++ 18,000 Los Angeles County, California, Revenue Bonds, TRAN, UT, 4.50% due 6/30/1995 17,978 SP-1+ MIG1++ 5,000 Santa Clara County, California, TRAN, UT, 4.25% due 7/07/1995 4,950 Colorado--2.2% Denver, Colorado, City and County Airport Revenue Bonds, AMT: BB Baa 5,000 Series A, 8% due 11/15/2017 4,847 BB Baa 3,000 Series A, 7.50% due 11/15/2023 2,769 BB Baa 8,570 Series A, 8% due 11/15/2025 8,358 BB Baa 1,310 Series B, 7.25% due 11/15/2007 1,255 BB Baa 3,000 Series B, 7.25% due 11/15/2023 2,701 BB Baa 5,650 Series C, 6.75% due 11/15/2022 4,838 BB Baa 7,840 Series D, 7.75% due 11/15/2021 7,499 Connecticut--0.7% AA+ Aa 1,000 Connecticut State Clean Water Fund Revenue Bonds, 5.80% due 6/01/2016 905 AA Aa 5,000 Connecticut State, HFA, Housing Mortgage Finance Program, Series B, 6.30% due 5/15/2024 4,543 AA- A 4,550 Connecticut State Resource Recovery Authority Revenue Bonds (American Refuse Fuel), AMT, Series A, 8% due 11/15/2015 4,790 Delaware--0.6% AAA NR* 7,500 Delaware State Health Facilities Authority Revenue Refunding Bonds (Beebe Medical Center Project), 8.50% due 6/01/2000(k) 8,592 District of AA- A1 7,500 District of Columbia Revenue Bonds, SAVRS (Georgetown University), Columbia--0.5% 5% due 4/01/2022(m) 6,965 Florida--4.6% NR* Aaa 9,775 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022(g) 10,337 AA Aa 10,000 Florida State, Board of Education Capital Outlay, UT, Series E, 5.75% due 6/01/2019 8,909 AA- Aa2 5,000 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project), Series 1991, 7.875% due 8/01/2021 5,388 AA Aa1 19,900 Jacksonville, Florida, Electric Authority Refunding Bonds (Saint John's River Power Park System), Issue 2, Series 7, 5.50% due 10/01/2014 17,402 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) 3,015 AAA NR* 4,765 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021(o) 5,044 A1 VMIG1 1,000 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company Project), VRDN, 5% due 1/01/2026(a) 1,000 AA- Aa 5,000 Saint Petersburg, Florida, Public Utility, Revenue Bonds, GO, 5.60% due 10/01/2018 4,390 AAA Aaa 11,700 South Broward, Florida, Hospital District Revenue Bonds, SAVRS, 6.469% due 5/13/2021(m) 11,614 Georgia--4.0% AA Aa 20,000 Atlanta, Georgia, UT, Series A, 6.125% due 12/01/2023 18,513 AA- Aa 30,705 Atlanta, Georgia, Water and Sewer Revenue Refunding Bonds, 4.75% due 1/01/2023 22,689 AAA Aaa 16,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Bonds, Second Indenture, Series A, 6.90% due 7/01/2020(f) 16,318 Idaho--0.2% AA NR* 2,445 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT, Series E, 7.875% due 7/01/2024(b) 2,539 Illinois--6.0% AA- Aa3 8,000 Chicago, Illinois, Gas Supply Revenue Bonds (Peoples Gas, Light & Coke Company Project), AMT, Series A, 8.10% due 5/01/2020 8,727 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 5,196 BB Baa2 14,330 Series 1984-B, 8.85% due 5/01/2018 15,283 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) 5,314 BBB NR* 3,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia College), 6.875% due 12/01/2017 2,765 Illinois Health Facilities Authority Revenue Bonds: AAA Aaa 3,000 (Methodist Health Project), 5% due 5/01/2021(c) 2,996 AAA Aaa 22,000 (Rush-Presbyterian Saint Luke's Medical Center), 6.80% due 10/01/2024(f) 21,693 Illinois Health Facilities Authority Revenue Refunding Bonds: A+ A1 5,905 (OSF Healthcare Systems), 6% due 11/15/2023 4,985 BBB- NR* 2,625 (Saint Elizabeth's Hospital--Chicago), 7.75% due 7/01/2016 2,532 A+ Aa 11,500 Illinois Housing Development Authority, Residential Mortgage Revenue Bonds, AMT, SAVRS, 4% due 2/01/2018(m) 10,982 NR* A1 4,000 Southwestern Illinois, Development Authority, Sewer Facilities Revenue Bonds (Monsanto Company Project), AMT, 7.30% due 7/15/2015 4,055 Indiana--0.7% NR* Baa1 3,500 Indiana Health Facilities Financing Authority, Hospital Revenue Bonds (Riverview Hospital Project), 6.875% due 8/01/2017 3,124 A+ A1 2,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 7.25% due 6/01/2015 2,112 A+ NR* 5,000 Indianapolis, Indiana, Local Public Improvement Refunding Bond Bank, Series D, 6.75% due 2/01/2020 4,830 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 1,590 Iowa--0.6% NR* NR* 9,000 Iowa Finance Authority, Health Care Facilities Revenue Bonds (Mercy Health Initiatives Project), 9.95% due 7/01/2019 9,443 Kansas--1.6% AAA Aaa 24,000 Wichita, Kansas, Hospital Revenue Bonds, SAVRS, 5% due 10/01/2017(m) 23,154 Kentucky--0.8% NR* NR* 4,500 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds (TJ International Project), AMT, 7% due 6/01/2024 4,051 AA Aa2 6,345 Trimble County, Kentucky, PCR (Louisville Gas and Electric Company), AMT, Series A, 7.625% due 11/01/2020 6,642 Louisiana--2.7% NR* Baa3 35,500 Lake Charles, Louisiana, Harbor and Terminal District Port Facilities, Revenue Refunding Bonds (Trunkline LNG Company Project), 7.75% due 8/15/2022 36,008 BB- NR* 3,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company Project), 7.50% due 7/01/2013 2,890 Maine--0.2% AA- A1 3,815 Maine State, Housing Authority Mortgage Purchase, AMT, Series B-4, 6.90% due 11/15/2026 3,631 Maryland--0.5% AA- Aa 7,000 Maryland State Stadium Authority, Sports Facilities Lease Revenue Bonds, AMT, Series D, 7.60% due 12/15/2019 7,322 Massachusetts--5.7% A+ A1 4,000 Massachusetts Bay Transportation Authority Refunding Bonds, Series B, 6.20% due 3/01/2016 3,775 AAA Aaa 6,000 Massachusetts Bay Transportation Authority Revenue Bonds, Series B, 7.875% due 3/01/2001(k) 6,755 A+ A1 20,000 Massachusetts State, Consolidated Loans, UT, Series B, 9.25% due 7/01/2000 23,261 Massachusetts State, Health and Educational Facilities Authority Revenue Bonds: NR* NR* 9,520 (North Adams Regional Hospital), Series A, 9.625% due 12/01/2018 9,641 AAA Aaa 10,000 (Tufts University), 5.95% due 8/15/2018(e) 9,094 NR* Ba 12,350 Massachusetts State, Health and Educational Facilities Authority, Revenue Refunding Bonds (New England Memorial Hospital), Series B, 6.25% due 7/01/2023 9,375 Massachusetts State, HFA, Residential Development, Series C(h): AAA Aaa 5,000 6.875% due 11/15/2011 5,032 AAA Aaa 7,500 6.90% due 11/15/2021 7,418 A-1 VMIG1 300 Massachusetts State, Industrial Finance Agency Revenue Refunding Bonds (Showa Women's Institute Inc.), VRDN, 5% due 3/15/2004(a) 300 A A 6,985 Massachusetts State, Water Resources Authority, Series A, 5.75% due 12/01/2021 6,008 NR* NR* 3,000 Reading, Massachusetts, BAN, GO, 4.25% due 7/14/1995 2,991
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Michigan--5.8% A+ A $ 1,000 Marquette, Michigan, City Hospital Finance Authority, Revenue Refunding Bonds (Marquette General Hospital), Series C, 7.50% due 4/01/2019 $ 1,021 Michigan State Building Authority Revenue Bonds: AA- A 3,000 Refunding, Series I, 6.25% due 10/01/2020 2,783 AA- A 14,000 Series II, 6.25% due 10/01/2020 12,988 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Detroit Medical Center): A- A 6,500 Refunding, Obligation Group, Series A, 6.50% due 8/15/2018 5,979 A- A 19,585 Refunding, Series B, 5.75% due 8/15/2013 16,677 A- A 3,500 Series A, 7.50% due 8/15/2011 3,614 Michigan State Trunk Line, GO, Series A: AAA Aaa 7,365 5.67% due 10/01/2012(c)(j) 2,286 AA- A1 18,545 5.50% due 10/01/2021 15,530 BBB Baa1 9,350 Monroe County, Michigan, PCR (Detroit Edison Project), AMT, Series A, 7.75% due 12/01/2019 9,752 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 2,740 AA Aa 12,000 5.25% due 11/15/2019 9,470 Minnesota--1.2% AA+ Aa 6,110 Minnesota State, HFA, S/F Mortgage Bonds, AMT, Series A, 7.45% due 7/01/2022(b) 6,257 AAA NR* 9,220 Saint Paul, Minnesota, Housing and Redevelopment Authority, S/F Mortgage Revenue Refunding Bonds, Series C, 6.95% due 12/01/2031(n) 9,063 A+ A 4,250 Southern Minnesota, Municipal Power Agency, Power Supply Systems, Revenue Refunding Bonds, Series A, 4.75% due 1/01/2016 3,279 Mississippi--1.2% BBB Baa 5,950 Lowndes County, Mississippi, Hospital Revenue Refunding Bonds (Golden Triangle Medical Center), 8.50% due 2/01/2010 6,238 Medical Center Educational Building Corporation, Mississippi, Revenue Bonds (University of Mississippi Medical Center Project): A- NR* 1,000 5.65% due 12/01/2009 874 A- NR* 1,500 5.80% due 12/01/2014 1,267 A- NR* 5,000 5.90% due 12/01/2023 4,085 NR* Aaa 4,195 Mississippi Home Corporation, S/F Mortgage Revenue Bonds (Access Program), AMT, Series A, 6.90% due 6/01/2024(o) 4,061 Missouri--1.0% 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 4,860 A+ A1 4,000 Missouri State Regional Convention and Sports Complex Authority Refunding Bonds, Series A, 5.60% due 8/15/2017 3,364 St. Louis County, Missouri, Regional Convention and Sports Complex Authority Refunding Bonds, Series B: BBB+ A 2,575 5.50% due 8/15/2013 2,195 BBB+ A 4,760 5.75% due 8/15/2021 3,937 Missouri & BBB+ NR* 11,400 Bi-State Development Agency, Missouri and Illinois, Metropolitan Illinois--0.8% No. 5, Revenue Refunding Bonds (American Commonwealth), 7.75% due 6/01/2010 11,703 Nebraska--0.7% AAA Aaa 9,700 Nebraska Investment Finance Authority, S/F Mortgage Revenue Bonds, AMT, SAVRS, 5% due 9/10/2030(m)(o) 9,954 New Hampshire--1.3% NR* Baa1 7,065 New Hampshire Higher Educational and Health Facilities Authority Revenue Refunding Bonds (Saint Anselm College), 6.375% due 7/01/2023 6,113 A+ Aa 3,215 New Hampshire State, HFA, S/F Residential Mortgage Bonds, AMT, 7.90% due 2/01/2022 3,313 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 4,853 BB+ Baa3 6,500 Series C, 7.65% due 5/01/2021 6,503 New Jersey--5.0% New Jersey Building Authority, State Building Revenue Refunding Bonds: AA- Aa 15,000 5% due 6/15/2015 12,182 AA- Aa 10,000 5% due 6/15/2018 7,993 AAA Aaa 22,000 New Jersey EDA, Revenue Bonds (Market Transition Facility), Senior Lien, Series A, 5.875% due 7/01/2011(f) 20,684 NR* NR* 6,700 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Riverwood Center Issue), Series A, 9.90% due 7/01/2021 7,229 A-1 VMIG1 15,400 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds, Series C, VRDN, 5% due 9/01/2024(a) 15,400 AA A 9,500 University Medicine and Dentistry of New Jersey, Revenue Bonds, Series C, 7.20% due 12/01/2019 9,828 New York--13.7% Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds (Commuter Facilities), Series 5: BBB Baa1 2,145 6.90% due 7/01/2006 2,155 BBB Baa1 5,000 7% due 7/01/2012 5,013 New York City, New York, GO, UT: A- Baa1 1,445 Series A, 8% due 8/15/2001(k) 1,640 A- Baa1 3,600 Series A, 7.75% due 8/15/2016 3,730 A- Baa1 4,065 Series A, 7.75% due 8/15/2017 4,211 A- Baa1 5,375 Series B, 8.25% due 6/01/2006 5,964 A- Baa1 2,700 Series B, 8.25% due 6/01/2007 2,998 A- Baa1 10,000 Series B, 7.75% due 2/01/2011 10,422 A- Baa1 4,500 Series B, 7.75% due 2/01/2012 4,684 A- Baa1 2,875 Series B, 7.75% due 2/01/2013 2,988 A- Baa1 1,650 Series B, 7.75% due 2/01/2014 1,714 A- Baa1 3,495 Series D, 8% due 8/01/2001(k) 3,975 A- Baa1 2,000 Series D, 7.70% due 2/01/2011 2,078 A- Aaa 6,580 Series F, 8.25% due 11/15/2001(k) 7,603 BBB Baa1 10,000 New York State Dormitory Authority Revenue Bonds (City University Systems), Series A, Consolidated, 2nd General, Series A, 5.75% due 7/01/2013 8,677 A1+ VMIG1 1,200 New York State Dormitory Authority Revenue Bonds (Cornell University), Series B, VRDN, 5% due 7/01/2025(a) 1,200 New York State Dormitory Authority Revenue Bonds (State University Educational Facilities): BBB+ Baa1 7,500 Refunding, Series A, 5.50% due 5/15/2010 6,457 BBB+ Baa1 5,000 Refunding, Series A, 5.875% due 5/15/2011 4,488 BBB+ Baa1 5,725 Refunding, Series A, 5.50% due 5/15/2013 4,829 BBB+ Baa1 15,000 Refunding, Series B, 5.25% due 5/15/2011(k) 12,401 BBB+ Baa1 5,085 Refunding, Series B, 7.375% due 5/15/2014 5,187 BBB+ Baa1 5,000 Series A, 7.50% due 5/15/2013 5,272 BBB+ Baa1 6,000 Series A, 6.25% due 5/15/2017 5,432 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds (Long Island Lighting), AMT: BBB- Baa3 8,230 Series A, 7.15% due 9/01/2019 7,546 BB+ Ba1 2,000 Series A, 7.15% due 12/01/2020 1,831 BB+ Baa3 4,000 Series B, 7.15% due 2/01/2022 3,646 BB+ Ba1 10,250 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds (Long Island Lighting), AMT, Series A, 7.15% due 6/01/2020 9,391 A- A 4,500 New York State, GO, UT, 5.625% due 3/01/2013 3,978 New York State Local Government Assistance Corporation: A A 5,000 Refunding, Series B, 5.375% due 4/01/2016 4,168 A A 6,000 Series A, 7% due 4/01/2012(k) 6,093 A A 10,000 Series A, 6.50% due 4/01/2020 9,650 A A 10,000 Series B, 6% due 4/01/2018 9,060 A A 5,000 Series D, 5.375% due 4/01/2014 4,194 New York State Power Authority General Purpose Revenue Refunding Bonds, Series CC: AA- Aa 4,550 5% due 1/01/2014 3,675 AA- Aa 10,500 5.25% due 1/01/2018 8,517 AAA Aaa 14,595 New York State, Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital Facilities), Series A, 6.50% due 1/01/2010(h) 14,720 New York & Port Authority of New York and New Jersey, Consolidated New Jersey--0.7% Revenue Bonds: AA- A1 8,000 91st Series, 5.20% due 11/15/2016 6,600 AA- A1 3,705 Refunding, 87th Series, 5.25% due 7/15/2014 3,078
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Ohio--4.0% AAA Aaa $ 12,000 Cleveland, Ohio, Public Power System Revenue Bonds, First Mortgage, Series A, 7% due 11/15/2024(f) $ 12,310 A A1 3,610 Cuyahoga County, Ohio, Hospital Revenue Bonds (Meridia Health System), 7.25% due 8/15/2019 3,643 Ohio HFA, S/F Mortgage Revenue Bonds, AMT(o): AAA Aaa 21,800 RIB, Series B, 4% due 3/31/2031 21,240 AAA NR* 2,705 Series B, 8.25% due 12/15/2019 2,860 AAA NR* 4,955 Series C, 7.85% due 9/01/2021 5,168 BBB- Baa2 14,000 Ohio State Air Quality Development Authority, PCR, Refunding (Ohio-Edison), Series A, 5.95% due 5/15/2029 11,250 Oregon--0.2% AA- Aa 1,030 Oregon State, PCR, UT, Series C, 5.625% due 6/01/2013 927 AAA Aaa 1,200 Polk County, Oregon, School District No. 002, GO, UT, 5.40% due 6/01/2012(h) 1,072 Pennsylvania--6.0% A1+ VMIG1 1,100 Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds (Presbyterian Health Center), VRDN, Series D, 5.20% due 3/01/2020(a)(f) 1,100 A-1 NR* 15,000 Emmaus, Pennsylvania, General Authority, Revenue Bonds (Local Government), VRDN, Series H-4, 5.20% due 3/01/2024(a) 15,000 BB Ba 11,050 Pennsylvania Convention Center Authority Revenue Refunding Bonds, Series A, 6.75% due 9/01/2019 10,009 AA Aa 17,600 Pennsylvania, HFA, Revenue Refunding Bonds, AMT, 4% due 10/03/2023 16,905 AAA Aaa 20,000 Pennsylvania State Higher Educational Assistance Agency, Student Loan Revenue Bonds, AMT, 5% due 9/03/2026(c) 19,642 BBB Baa1 2,000 Philadelphia, Pennsylvania, Hospital and Higher Educational Facilities Authority, Hospital Revenue Bonds (Frankford Hospital), Series A, 6% due 6/01/2023 1,610 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 4,630 BBB Baa 7,335 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds, 5.75% due 6/15/2013 6,313 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)(k) 5,139 BBB Baa 5,650 Ridley Park, Pennsylvania, Hospital Authority, Revenue Refunding Bonds (Taylor Hospital), Series A, 6.125% due 12/01/2020 4,493 AAA Aaa 2,500 York County, Pennsylvania, Hospital Authority Revenue Bonds (York Hospital), 7% due 1/01/2001(c)(k) 2,691 Puerto Rico--0.8% A Baa1 5,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Bonds, Series W, 5.25% due 7/01/2020 4,001 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series X: A Baa1 1,000 5.50% due 7/01/2015 849 A Baa1 6,000 5.25% due 7/01/2021 4,818 A Baa1 1,000 Puerto Rico Commonwealth Refunding Bonds, UT, 5.25% due 7/01/2018 809 Rhode Island--2.6% Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A: AAA Aaa 5,250 6.95% due 8/01/2002(k) 5,697 A- Baa1 5,500 Refunding, 5.75% due 8/01/2012 4,756 A- Baa1 30,000 Refunding, 6.25% due 8/01/20162 7,418 South Carolina--0.5% BBB- Baa 8,355 South Carolina Jobs, EDA, Economic Development Revenue Bonds (Saint Francis Hospital--Franciscan Sisters), 7% due 7/01/2015 7,629 South Dakota--0.6% AA+ Aa1 9,085 South Dakota, HDA, Homeownership Mortgage, Series A, 7.15% due 5/01/2027 9,095 Tennessee--0.7% 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 10,310 Texas--8.5% 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 11,929 Brazos River Authority, Texas, PCR (Texas Utilities Electric Company Project), AMT: BBB Baa 32,095 Series A, 8.25% due 1/01/2019 2,196 BBB Baa2 18,150 Series A, 7.875% due 3/01/2021 18,803 BBB Baa2 2,000 7.875% due 3/01/2017 2,049 A A2 12,350 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston Light and Power), Series 1989-A, 7.625% due 5/01/2019 12,767 BBB Baa1 5,000 Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds (Champion International Corporation), AMT, 7.45% due 5/01/2026 4,881 Harris County, Texas, Certificates of Obligation, Tax and Revenue Bonds: AA+ Aa 2,400 10% due 10/01/2000 2,897 AA+ Aa 2,400 10% due 10/01/2001 2,957 A1+ NR* 4,400 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Methodist Hospital), VRDN, 5% due 12/01/2025(a)(b) 4,400 BBB- Baa 8,255 Jefferson County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Baptist Healthcare System Project), 8.875% due 6/01/2021 8,723 AA Aa 24,000 North Central Texas, Health Facilities Development Corporation Revenue Bonds (Baylor University Medical Center), Series A, 6.71% due 5/15/2016 22,962 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) 4,591 A+ Aa 9,350 Texas Housing Agency, Residential Development Mortgage Revenue Bonds, Series A, 7.50% due 7/01/2015(o) 9,508 AA Aa 14,000 Texas State Veteran Housing Assistance, AMT, UT, Series A, 7% due 12/01/2025 13,824 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 1,734 Utah--1.3% AA Aa 7,535 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, Series B, 5.35% due 7/01/2004(j)(l) 4,180 A1+ VMIG1 2,100 Utah State Board Regents, Student Loan Revenue Bonds, VRDN, Series B, 5% due 11/01/2000(a) 2,100 AA NR* 13,250 Weber County, Utah, Municipal Building Authority, Lease Revenue Bonds, 7.50% due 12/15/2019 13,467 Virginia--0.9% AA- Aa 10,000 Fairfax County, Virginia, Water Authority, Revenue Refunding Bonds, 5.75% due 4/01/2029 8,658 AA+ Aa1 4,000 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series A, 7.15% due 1/01/2033 4,013 Washington--2.4% AAA NR* 14,425 Washington State Housing Finance Community, S/F Mortgage Revenue Refunding Bonds, AMT, Series E, 7.10% due 7/01/2022(g) 14,477 Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project #2), Series A: AA Aa 16,470 5.80% due 7/01/2007 15,268 AA Aa 6,195 5.75% due 7/01/2012 5,426 West Virginia--0.6% AA+ Aa1 8,400 West Virginia State, Housing Development Fund, Housing Finance, Series D, 7.05% due 11/01/2024 8,316 Wisconsin--1.0% Wisconsin Housing and EDA, Housing Revenue Bonds: A A1 5,400 Series B, 7.05% due 11/01/2022 5,360 A A1 5,105 Series C, 7% due 5/01/2015 5,082 AA Aa 4,925 Wisconsin Housing, EDA, Home Ownership, Revenue Bonds, Series A, 7.10% due 3/01/2023 4,957 Total Investments (Cost--$1,513,633)--100.5% 1,461,846 Liabilities in Excess of Other Assets--(0.5)% (6,850) ---------- Net Assets--100.0% $1,454,996 ========== (a)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at December 31, 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 December 31, 1994. (n)FNMA Insured. (o)GNMA Insured. ++Represents the highest short-term rating issued by Moody's Investors Service, Inc. *Not Rated. 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--0.6% NR* Aa $ 5,050 Alabama State Public School and College Authority, Refunding Bonds, 3.70% due 12/01/1996 $ 4,858 Alaska--2.0% A+ Aa 1,700 Alaska State Housing Finance Corporation, GO, Series A, 4.20% due 12/01/1995 1,673 A1+ VMIG1 10,000 Alaska State Housing Finance Corporation, VRDN, Series A, 5% due 6/01/2029(b) 10,000 AAA Aaa 5,000 Anchorage, Alaska, GO, Refunding Bonds, UT, 4.85% due 7/01/1995(d) 5,005 Arizona--0.6% A1+ VMIG1 1,000 Maricopa County, Arizona, IDA, Hospital Facility Revenue Bonds (Samaritan Health Services Hospital), VRDN, Series B2, 4.10% due 12/01/2008(b)(d) 1,000 A+ A1 3,000 Maricopa County, Arizona, Transportation Board, Excise Tax Revenue Bonds, 7.10% due 7/01/1996 3,073 AA P1 800 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining Corp.), VRDN, 5% due 12/01/2009(b) 800 California--9.6% 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 5,824 SP-1+ MIG1++ 7,500 California State, GO, RAN, Series A, 5% due 6/28/1995 7,511 SP-1+ MIG1++ 15,000 California State, GO, RAW, Series C, 5.75% due 4/25/1996 15,002 A A1 10,000 California State Various Purpose Bonds, GO, 4% due 10/01/1995 9,876 AA Aa 5,005 California Statewide Communities Development Authority, Revenue Refunding Bonds, COP (Saint Joseph Health Systems), 4.10% due 7/01/1997 4,773 NR* MIG1++ 30,000 Fresno County, California, TRAN, 4.25% due 7/13/1995 29,843 AA- Aa 1,100 San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP, Series A, 4.10% due 5/01/1995 1,098 SP-1+ MIG1++ 4,000 Santa Clara County, California, TRAN, UT, 4.25% due 7/07/1995 3,960 Colorado--1.7% NR* NR* 10,000 Denver, Colorado, City and County Airport Revenue Bonds, Sub-series B, 4.25% due 9/01/1995 9,941 AA Baa1 3,810 Jefferson County, Colorado, District No. R-001, Revenue Refunding Bonds, Series A, 3.65% due 12/15/1996 3,649 Connecticut--2.4% Connecticut State Economic Recovery Notes, GO, Series A: AA- Aa 3,900 5.40% due 12/15/1995 3,911 AA- Aa 3,250 5.50% due 6/15/1996 3,268 AA- Aa 6,705 Connecticut State, GO, UT, Series B, 4.90% due 11/15/1995 6,692 NR* Aa3 3,940 Connecticut State Housing Mortgage Revenue Bonds (Chestnut Hill Apartments), 4.60% due 4/01/1997 3,825 AAA Aaa 2,000 Stratford, Connecticut, GO, UT, 3.50% due 11/01/1996(f) 1,914 Delaware--0.2% AAA Aaa 1,500 Delaware State, Realty Transfer Tax Revenue Bonds (Land and Water Conservation Trust Fund Program), 5.30% due 4/01/1995(f) 1,503 District of District of Columbia, General Fund Recovery Bonds: Columbia--1.9% AAA Aaa 11,000 UT, Series C, 5.50% due 6/01/1995(f) 11,030 A1+ VMIG1 900 VRDN, Series B-2, 4.90% due 6/01/2003(b) 900 A1+ VMIG1 1,500 VRDN, Series B-3, 5% due 6/01/2003(b) 1,500 AAA Aaa 1,465 District of Columbia, GO, UT, Series B, 5.30% due 6/01/1995(d) 1,468 Florida--3.4% NR* VMIG1 3,000 Atlantic Beach, Florida, Revenue Refunding Bonds (Improvement--Fleet Landing), VRDN, Series B, 5% due 10/01/2024(b) 3,000 A Aa 2,000 Dade County, Florida, Aviation Revenue Refunding Bonds, Series X, 4.10% due 10/01/1995 1,981 AAA Aaa 1,900 Dade County, Florida, Water System Revenue Refunding Bonds, 4% due 6/01/1995(f)(g) 1,895 AAA Aaa 5,000 Florida State Division, Board of Finance Revenue Bonds (Department of Natural Resources Preservation 2000), Series A, 6.10% due 7/01/1995(c) 5,039 A+ A 3,860 Florida State, GO, COP (Construction Equipment Financing Program), 5.75% due 11/15/1995 3,884 AAA Aaa 2,375 Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A, 5% due 7/01/1995(f) 2,380 AA Aaa 4,000 Jacksonville, Florida, Electric Authority Revenue Refunding Bonds (Saint John's River Park Power), Issue II, Series 4, 6.90% due 10/01/1995(a) 4,115 A-1 VMIG1 2,800 Manatee County, Florida, PCR, Refunding (Florida Power & Light Co., Project), VRDN, 5% due 9/01/2024(b) 2,800 A-1 VMIG1 2,700 Martin County, Florida, PCR, Refunding (Florida Power & Light Co., Project), VRDN, 5% due 9/01/2024(b) 2,700 Georgia--0.8% AA Aa1 2,000 Gwinnett County, Georgia, COP (Water and Sewer), 7.60% due 8/01/1995 2,027 AAA Aaa 3,965 Metropolitan Atlanta, Georgia, Rapid Transit Authority, Sales Tax Revenue Refunding Bonds, Series P, 4.75% due 7/01/1995(c) 3,969 Illinois--5.3% Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Revenue Refunding Bonds: AA Aa 5,000 4% due 12/01/1996 4,844 AA Aa 3,100 UT, 4.10% due 12/01/1995 3,059 AA Aa 3,000 UT, 4.50% due 12/01/1996 2,942 A+ A1 2,580 Chicago, Illinois, O'Hare International Airport Revenue Bonds, AMT, Series A, 4.40% due 1/01/1995 2,580 Chicago, Illinois, School Financing Authority: AAA Aaa 5,000 7.25% due 6/01/1998 5,143 AAA Aaa 2,755 Refunding, Series A, 5% due 6/01/1995(f) 2,758 A1+ VMIG1 7,500 Chicago, Illinois, Tender Notes, Series A-1, 3.10% due 10/31/1995 7,341 AAA Aaa 3,750 Cook County, Illinois, High School District No. 205 Revenue Refunding Bonds, UT (Thornton Township), 5% due 6/01/1995(f)(g) 3,756 AA Aaa 3,975 Illinois Educational Facilities Authority Revenue Bonds (University of Chicago), 7% due 12/01/1996(a) 4,175 AA- Aa 3,000 Illinois State, GO, 5.50% due 6/01/1995 3,011 A A1 3,625 Illinois State Toll and Highway Authority, Revenue Refunding Bonds, Series A, 3.70% due 1/01/1996 3,541 Indiana--2.3% NR* VMIG1 13,280 Indiana State, HFA, S/F Mortgage Revenue Bonds, Series D, 4.30% due 7/03/1995 13,240 AA- Aa 4,800 Purdue University, Indiana, University Revenue Bonds, Student Fees, Series J, 4.15% due 7/01/1996 4,694 Kentucky--2.3% Daviess County, Kentucky, Solid Waste Disposal Facilities Revenue Bonds (Scott Paper Co. Project), VRDN, AMT(b): A1+ VMIG1 200 Series A, 5.10% due 12/01/2023 200 A1+ VMIG1 2,300 Series B, 5% due 5/01/2024 2,300 A+ A 13,000 Kentucky State Property and Building Community, Revenue Refunding Bonds, Project No. 55, 3.60% due 9/01/1996 12,491 AAA Aaa 3,250 Kentucky State Turnpike Authority, Economic Development, Revenue Refunding Bonds (Revitalization Projects), 4% due 7/01/1996(c) 3,176 Louisiana--1.2% A+ A1 3,610 Louisiana Public Facilities Authority Revenue Bonds (Tulane University), Series B, 6.80% due 8/15/1996 3,690 A A3 5,410 Louisiana State Offshore Terminal Authority Revenue Refunding Bonds (Deepwater Port), First Stage, Series B, 4.60% due 9/01/1995 5,399 Maine--0.7% AA+ Aa 5,255 Maine State General Purpose Bonds, GO, 4.10% due 9/01/1995 5,211 Maryland--0.6% A+ A1 4,535 Maryland State Transportation Authority Revenue Bonds, 6% due 7/01/1995 4,567 Massachusetts--4.0% BBB+ NR* 3,660 Massachusetts State, COP, GO, 5.10% due 6/30/1996 3,612 Massachusetts State, GO, Series A, Dedicated Income Tax: AAA Aaa 2,900 7% due 6/01/1995(f) 2,928 A+ A1 2,500 7.25% due 6/01/1996 2,572 AAA Aaa 5,000 7.25% due 6/01/1996(f) 5,128 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) 4,897 AAA Aaa 2,005 (New England Medical Center Hospitals), Series G, 3.80% due 7/01/1997(d) 1,905 A+ A1 6,720 Massachusetts State, HFA, Housing Projects, Revenue Refunding Bonds, Series A, 3.90% due 4/01/1995 6,700 Massachusetts State Water Resource Authority, GO, Series A: A A 1,690 6.70% due 4/01/1995 1,698 AAA Aaa 2,555 6.70% due 4/01/1995(g) 2,570 NR* NR* 995 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley Health Care), AMT, Series A, 5% due 12/01/1996 982
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Michigan--2.0% NR* VMIG1 $ 1,000 Detroit, Michigan, Downtown Development Authority, Revenue Refund- ing Bonds (Millender Center Project), VRDN, 5% due 12/01/2010(b) $ 1,000 SP-1 MIG1++ 5,075 Detroit, Michigan, GO, Notes, 3.80% due 7/01/1995 5,053 A1+ VMIG1 4,000 Grand Rapids, Michigan, Water Supply Systems Revenue Refunding Bonds VRDN, 5% due 1/01/2020(b)(f) 4,000 AAA NR* 5,475 Michigan State, HFA, Revenue Bonds (Harper-Grace & Huron Valley Hospitals), Series A, 10% due 10/01/1995(a) 5,778 NR* VMIG1 800 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds (Grayling Generating Project), VRDN, AMT, 3% due 1/01/2014(b) 800 Minnesota--2.8% AAA Aaa 3,225 Hennepin County, Minnesota, Capital Improvement Bonds, UT, Series B, 3.25% due 12/01/1995 3,154 AAA Aaa 1,600 Minneapolis and St. Paul, Minnesota, Metropolitan Airports Revenue Bonds, AMT, UT, Series 8, 4.60% due 1/01/1995 1,600 AA+ NR* 1,650 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds, Series A, 4.70% due 3/01/1995 1,650 Minnesota State, HFA, S/F Mortgage: A1+ VMIG1 4,755 AMT, Series U, 4.95% due 12/14/1995 4,746 A1+ VMIG1 7,265 AMT, Series V, 4.95% due 12/14/1995 7,265 A1+ VMIG1 4,105 Series T, 4.85% due 12/14/1995 4,095 Mississippi--1.6% NR* P1 1,700 Jackson County, Mississippi, PCR, Refunding (Chevron USA, Inc. Project), VRDN, 5% due 12/01/2016(b) 1,700 NR* P1 2,000 Jackson County, Mississippi, Port Facility Revenue Refunding Bonds (Chevron USA, Inc. Project), VRDN, 5% due 6/01/2023(b) 2,000 A NR* 10,000 Mississippi Higher Education Assistance Corporation, Student Loan Revenue Refunding Bonds, AMT, Series C, 5.40% due 1/01/1996 9,975 NR* P1 300 Perry County, Mississippi, PCR, Refunding (Leaf River Forest Project), VRDN, 5% due 3/01/2002(b) 300 Missouri--1.7% SP-1+ 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 13,963 Nebraska--1.7% Nebraska Public Power District Revenue Bonds: A+ A1 7,000 (Nuclear Facility), 4% due 7/01/1995 6,958 A+ A1 3,500 Refunding (Electric System), Series A, 4.50% due 1/01/1995 3,500 A+ A1 3,570 Refunding (Power Supply System), Series C, 3.50% due 1/01/1996 3,478 Nevada--0.9% AAA Aaa 7,000 Washoe County, Nevada, Airport Authority, Airport Systems Improvement Revenue Bonds, AMT, Series A, 3.90% due 7/01/1995(d) 6,968 New Jersey--6.8% Camden County, New Jersey, Improvement Authority (Solid Waste Disposal), Revenue Refunding Bonds (Landfill Project): A- A1 1,125 3.55% due 7/01/1995 1,119 A- A1 2,000 4% due 7/01/1997 1,909 AA+ Aaa 4,500 Middlesex County, New Jersey, Refunding Bonds, UT, 3.60% due 7/15/1996 4,363 AAA Aaa 3,820 Middlesex County, New Jersey, Utility Authority, Solid Waste System Revenue Bonds, 5.20% due 12/01/1995(f) 3,817 AAA Aaa 9,000 New Jersey EDA, Market Transition Facility Revenue Bonds, Senior Lien, Series A, 4.80% due 7/01/1998(d) 8,760 A+ NR* 3,765 New Jersey State Housing and Mortgage Finance Agency, Revenue Refunding Bonds, Series 1, 4.50% due 11/01/1995 3,732 New Jersey State Transportation Trust Fund Authority Revenue Bonds (Transportation Systems): A+ Aa 5,505 Refunding, Series B, 3.20% due 6/15/1995 5,472 A+ Aa 20,000 Series A, 5% due 12/15/1997 19,751 A A 2,160 New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series A, 5.50% due 1/01/1996 2,163 AAA Aaa 3,265 Passaic Valley, New Jersey, Sewage Commissioners Revenue Refunding Bonds, Series D, 5.70% due 12/01/1995(c) 3,282 New Mexico--0.3% AAA Aaa 2,500 New Mexico Education Loan Assistance Foundation, Student Loan Revenue Bonds, AMT, Series A, 5.75% due 4/01/1996(c) 2,509 New York--5.4% AAA Aaa 4,000 Albany County, New York, Revenue Refunding Bonds, UT, 3.30% due 10/01/1995(f) 3,932 New York City, New York, GO, UT: A- Baa1 5,000 Refunding, Series A, 4.60% due 8/01/1995 4,956 A- Baa1 3,000 Series A, 7.20% due 3/15/1995(g) 3,018 A- Aaa 6,710 Series D, 6.40% due 2/01/1995(g) 6,710 A- Baa1 4,640 Series D, 6.40% due 2/01/1995 4,640 A1+ NR* 800 New York City, New York, IDA, Civic Facilities Revenue Bonds (National Audobon Society), VRDN, 5% due 12/01/2014(b) 800 A1+ NR* 400 New York City, New York, IDA, IDR (Japan Airlines Company Ltd. Project), VRDN, AMT, 4% due 11/01/2015(b) 400 SP-1+ MIG1++ 4,000 New York City, New York, TAN, UT, Series A, 5% due 2/15/1995 4,000 New York State Dormitory Authority Revenue Bonds: A1+ VMIG1 7,000 (New York Public Library), Series B, 3.875% due 7/01/1995 6,959 NR* VMIG1 5,000 (Oxford University Press Inc.), VRDN, 5% due 7/01/2023(b) 5,000 A A 2,000 New York State Local Government Assistance Corporation Revenue Bonds, Series A, 5% due 4/01/1995 2,001 A1+ VMIG1 800 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Syracuse University Project), VRDN, 5% due 3/01/2023(b) 800 North Carolina--1.2% NR* VMIG1 9,300 North Carolina Educational Facilities Finance Agency Revenue Bonds (Bowman Grey School of Medicine Project), VRDN, 5% due 9/01/2020(b) 9,300 North Dakota--0.6% NR* Aa 5,000 North Dakota Student Loan Revenue Refunding Bonds, Series A, 5.40% due 7/01/1996 4,983 Ohio--7.5% Cincinnati, Ohio, City School District: A+ NR* 2,500 RAN, 5.35% due 6/15/1996 2,492 A+ NR* 7,500 TAN, 5% due 6/01/1995 7,495 Cleveland, Ohio, City School District, RAN, UT(c): AAA Aaa 3,000 4.20% due 6/01/1996 2,942 AAA Aaa 10,000 4.35% due 6/01/1997 9,721 AAA Aaa 2,700 Columbus, Ohio, Sewer Improvement Revenue Bonds (Waterworks Parks), 6.75% due 7/01/1995(g) 2,729 NR* NR* 2,000 Lucas County, Ohio, BAN, 5.75% due 11/30/1995 2,010 Ohio State Air Quality Development Authority, PCR, Refunding (Ohio Edison Company), Series A: A+ VMIG1 10,500 4.25% due 8/01/1996 10,240 A+ VMIG1 6,700 3.45% due 2/01/2015 6,545 Ohio State Public Facilities Commission, Higher Education Facilities: A+ A1 3,300 Capital Facilities, Series II-A, 5.30% due 12/01/1996 3,303 AAA Aaa 1,995 Series II-A, 6.25% due 2/01/1996(c) 2,006 AAA Aaa 10,250 Trumbull County, Ohio, Hospital Revenue Bonds (Trumbull Memorial Hospital Project), 9.625% due 11/01/1995(a)(f) 10,836 Oklahoma--0.8% A+ Aa 6,370 Oklahoma County, Oklahoma, Independent School District No. 89, UT, 6.50% due 2/01/1998 6,554 Pennsylvania--0.9% AA- A1 4,225 Pennsylvania State, UT, Second Series, 4.70% due 7/01/1996 4,184 AAA Aaa 3,000 Pittsburgh, Pennsylvania, Water and Sewer Authority, Revenue Refunding Bonds, Series A, 3.50% due 9/01/1996(f) 2,880 Puerto Rico--1.3% A Baa1 3,415 Puerto Rico Public Buildings Authority, Revenue Refunding Bonds, Series J, 5.20% due 7/01/1995 3,421 BBB Baa 7,065 Puerto Rico, S/F Finance Housing Agency, Revenue Refunding Bonds, 3.75% due 12/01/1995 6,913
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Rhode Island--1.3% AAA Aaa $ 4,180 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A, 5% due 8/01/1995(e) $ 4,173 NR* A 6,000 Rhode Island State, Student Loan Authority, Student Loan Revenue Refunding Bonds, Series A, 5.70% due 12/01/1996 5,996 South Carolina--1.3% AA- A1 1,000 Charleston, South Carolina, Waterworks and Sewer Improvement Revenue Refunding Bonds, 4.45% due 1/01/1995 1,000 NR* VMIG1 1,100 Orangeburg County, South Carolina, Solid Waste Disposal Facilities Revenue Bonds (South Carolina Electric & Gas), VRDN, AMT, 5% due 10/01/2024(b) 1,100 AA- A1 4,000 South Carolina State Public Service Authority Revenue Refunding Bonds (Electric Systems Expansion), Series A, 7.50% due 7/01/1996 4,121 A+ A1 5,170 South Carolina State Public Service Authority Revenue Refunding Bonds, Series C, 3.80% due 1/01/1997 4,951 Texas--9.5% AAA Aaa 4,880 Austin, Texas, Utility System Revenue Refunding Bonds, Series A, Prior Lien, 4.80% due 11/15/1995(d) 4,861 Brazos, Texas, Higher Education Authority Incorporated, Student Loan Revenue Refunding Bonds, AMT: NR* Aaa 2,200 Senior Lien, Series A-2, 5.45% due 6/01/1998 2,163 NR* Aaa 2,250 Series A-1, 5% due 12/01/1996 2,222 NR* Aa 2,000 Series C-1, 5% due 11/01/1995 1,989 NR* Aa 5,455 Series C-1, 5.60% due 11/01/1997 5,412 NR* A1 950 Fort Bend County, Texas, IDR, Corporate, Refunding (Frito Lay Incorporated Project), 4% due 10/01/1996 923 NR* A1 3,650 Fort Bend County, Texas, PCR, Corporate, IDR, Refunding (Frito Lay Incorporated Project), 4% due 10/01/1996 3,547 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds, VRDN(b): A1+ NR* 1,800 (Methodist Hospital), 5% due 12/01/2025 1,800 A1+ NR* 200 (Saint Luke's Episcopal Hospital), Series C, 5% due 2/15/2016 200 AAA Aaa 9,500 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Junior Lien, Series D, 5.55% due 12/01/1995 (f) 9,522 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 5,990 NR* Aaa 2,000 Series C, 3.95% due 9/01/1996 1,943 NR* Aaa 2,675 Series C, 4.15% due 9/01/1997 2,555 San Antonio, Texas, Electric and Gas Revenue Refunding Bonds, Junior Lien, Series A: AA Aa1 9,000 5.80% due 2/01/1995 9,000 AA Aa1 3,000 6% due 2/01/1996 3,021 Texas State Public Finance Authority Revenue Bonds, GO: AA Aa 3,000 Series A, 6% due 10/01/1995 3,019 AA Aa 4,445 Series B, 8% due 10/01/1997 4,738 AAA Aaa 4,770 Texas State Public Property Finance Corporation, Revenue Refunding Bonds (Mental and Health Retardation), 4.25% due 9/01/1995 4,723 SP-1+ MIG1++ 6,200 Texas State, TRAN, UT, 5% due 8/31/1995 6,211 AAA Aa 1,500 Texas Water Development Board Revenue Bonds (State Revolving Fund--Senior Lien), 4.35% due 7/15/1995 1,491 Utah--3.9% NR* NR* 24,243 Carbon County, Utah, Solid Waste Disposal Revenue Refunding Bonds (East Carbon Landfill Project), AMT, 6.04% due 5/01/1997 24,455 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds: AA Aa 1,250 Series A, 3.90% due 7/01/1996 1,220 AA Aa 4,250 Series B, 4.60% due 7/01/1995 4,246 AA- NR* 1,715 University of Utah, Revenue Refunding Bonds (University Hospital Project), Series A, 5% due 5/15/1995 1,717 Virginia--2.1% AAA Aa2 1,500 Peninsula Ports Authority Virginia, Port Facility Revenue Refunding Bonds (Shell Oil Company), UPDATES, Series A, 4.15% due 12/01/2005(b) 1,500 NR* Aaa 2,000 Virginia Education Loan Authority, Revenue Refunding Bonds (Guaranteed Student Loan Program), Senior--Series E, 4.625% due 3/01/1995 1,995 AAA Aaa 2,500 Virginia Port Authority Facilities, Revenue Refunding Bonds, 5% due 7/01/1995(c) 2,505 Virginia State Housing Development Authority, Commonwealth Mortgage Revenue Bonds, AMT, Series B, Sub Series B-1: AA+ Aa1 5,400 5.30% due 1/01/1995 5,400 AA+ Aa1 2,975 5.50% due 1/01/1996 2,974 AA Aa 1,500 Virginia State Public Building Authority, Building Revenue Bonds, Series C, 3.95% due 8/01/1995 1,487 Washington--5.2% Port Seattle, Washington, Revenue Refunding Bonds: AA- A1 1,075 Series A, 4.25% due 4/01/1996 1,056 AA- A1 3,000 Series B, 4% due 11/01/1995 2,959 AA Aa 7,250 Washington State, GO, UT, Series R-93-B-1, 4.125% due 10/01/1997 6,957 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 7,974 AA Aa 6,275 (Nuclear Project No. 2), 4.20% due 7/01/1995(g) 6,251 AA Aa 2,000 (Nuclear Project No. 2), 3.50% due 7/01/1996 1,916 AA Aa 4,890 (Nuclear Project No. 2), 3.75% due 7/01/1997 4,576 AAA Aaa 9,200 Washington State, Refunding, UT, Series 86-D, 8% due 9/01/1996(a) 9,615 Wisconsin--2.0% AA Aa 3,500 Milwaukee County, Wisconsin, Metropolitan Sewer District Revenue Bonds, UT, Series A, 5.25% due 9/01/1995 3,500 NR* NR* 8,000 Waukensha, Wisconsin, School District, TRAN, 4.75% due 10/24/1995 7,984 Wisconsin Housing and EDA, Housing Revenue Refunding Bonds, Series C: A A1 2,200 3.60% due 11/01/1995 2,154 A A1 2,795 4.30% due 11/01/1997 2,649 Wyoming--0.3% Lincoln County, Wyoming, PCR (Exxon Project), DATES, VRDN, Series B(b): A1+ P1 1,800 5% due 11/01/2014 1,800 A1+ P1 900 5.10% due 11/01/2014 900 Total Investments (Cost--$818,971)--100.7% 809,888 Liabilities in Excess of Other Assets--(0.7%) (5,361) --------- Net Assets--100.0% $ 804,527 ========= (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 December 31, 1994. (c)AMBAC Insured. (d)MBIA Insured. (e)FSA Insured. (f)FGIC Insured. (g)Escrowed to maturity. (h)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 December 31, 1994. ++Highest short-term rating by Moody's Investors Service, Inc. *Not Rated. See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
Limited Insured National Maturity As of December 31, 1994 Portfolio Portfolio Portfolio Assets: Investments, at value* (Note 1a) $2,444,912,563 $1,461,845,703 $809,887,905 Cash 433,069 47,412 577,762 Receivables: Interest 45,744,439 27,239,002 11,854,124 Capital shares sold 2,850,227 1,815,512 724,600 Prepaid registration fees and other assets (Note 1e) 76,710 55,688 39,846 -------------- -------------- ------------ Total assets 2,494,017,008 1,491,003,317 823,084,237 Liabilities: Payables: Dividends to shareholders (Note 1f) 31,934,743 20,995,599 1,443,584 Capital shares redeemed 11,531,082 8,761,927 12,140,630 Securities purchased 5,000,000 5,015,659 4,554,193 Investment adviser (Note 2) 796,889 632,683 250,105 Distributor (Note 2) 514,834 274,868 51,266 Accrued expenses and other liabilities 522,785 326,255 117,025 -------------- -------------- ------------ Total liabilities 50,300,333 36,006,991 18,556,803 Net Assets: Net assets $2,443,716,675 $1,454,996,326 $804,527,434 ============== ============== ============ Net Assets Class A Common Stock, $0.10 par value++ $22,560,102 $ 11,091,123 $ 6,536,683 Consist of: Class B Common Stock, $0.10 par value++++ 10,134,641 4,277,522 1,605,184 Class C Common Stock, $0.10 par value+++ 19,212 15,516 13,708 Class D Common Stock, $0.10 par value+++++ 180,984 103,727 80,113 Paid-in capital in excess of par 2,506,538,624 1,555,735,110 811,843,411 Accumulated realized capital losses--net (Note 5) (52,929,833) (64,439,787) (6,468,522) Unrealized depreciation on investments--net (42,787,055) (51,786,885) (9,083,143) -------------- -------------- ------------ Net assets $2,443,716,675 $1,454,996,326 $804,527,434 ============== ============== ============ Net Asset Class A: Value: Net assets $1,676,326,319 $1,042,031,353 $638,537,386 ============== ============== ============ Shares outstanding 225,601,022 110,911,231 65,366,838 ============== ============== ============ Net asset value and redemption price per share $ 7.43 $ 9.40 $ 9.77 ============== ============== ============ Class B: Net assets $ 752,513,580 $ 401,760,721 $156,825,209 ============== ============== ============ Shares outstanding 101,346,414 42,775,225 16,051,844 ============== ============== ============ Net asset value and redemption price per share $ 7.43 $ 9.39 $ 9.77 ============== ============== ============ Class C: Net assets $ 1,427,438 $ 1,457,962 $ 1,338,824 ============== ============== ============ Shares outstanding 192,123 155,164 137,078 ============== ============== ============ Net asset value and redemption price per share $ 7.43 $ 9.40 $ 9.77 ============== ============== ============ Class D: Net assets $ 13,449,338 $ 9,746,290 $ 7,826,015 ============== ============== ============ Shares outstanding 1,809,838 1,037,270 801,133 ============== ============== ============ Net asset value and redemption price per share $ 7.43 $ 9.40 $ 9.77 ============== ============== ============ *Identified cost $2,487,699,618 $1,513,632,588 $818,971,048 ++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 +++Authorized shares--Class C 375,000,000 375,000,000 150,000,000 +++++Authorized shares--Class D 500,000,000 375,000,000 150,000,000 See Notes to Financial Statements.
STATEMENT OF OPERATIONS
Limited Insured National Maturity For the Six Months Ended December 31, 1994 Portfolio Portfolio Portfolio Investment Interest and amortization of premium and discount earned $ 84,372,133 $ 52,903,524 $ 19,331,164 Income -------------- -------------- ------------ (Note 1d): Expenses: Investment advisory fees (Note 2) 4,856,153 3,838,274 1,506,902 Distribution fees--Class B (Note 2) 3,126,059 1,661,882 273,887 Transfer agent fees--Class A (Note 2) 329,441 258,927 101,134 Transfer agent fees--Class B (Note 2) 181,085 118,525 29,486 Custodian fees 108,865 77,672 39,840 Accounting services (Note 2) 86,147 73,090 49,762 Printing and shareholder reports 89,800 53,516 27,325 Registration fees (Note 1e) 37,158 41,925 42,892 Professional fees 34,660 30,263 12,397 Pricing services 21,223 16,242 14,832 Portfolio insurance 16,196 8,468 2,344 Directors' fees and expenses 11,562 9,857 3,596 Account maintenance fees--Class D (Note 2) 1,412 2,668 729 Distribution fees--Class C (Note 2) 1,022 1,144 195 Other 4,682 5,630 -- -------------- -------------- ------------ Total expenses 8,905,465 6,198,083 2,105,321 -------------- -------------- ------------ Investment income--net 75,466,668 46,705,441 17,225,843 -------------- -------------- ------------ Realized & Realized loss on investments (52,929,371) (60,693,788) (1,274,753) Unrealized Gain Change in unrealized appreciation/depreciation on (Loss) on investments--net (55,102,989) (15,325,599) (7,695,549) Investments--Net -------------- -------------- ------------ (Notes 1b, Net Increase (Decrease) in Net Assets 1d & 3): Resulting from Operations $ (32,565,692) $ (29,313,946) $ 8,255,541 ============== ============== ============ See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
Insured Portfolio National Portfolio Limited Maturity Portfolio For the Six For the For the Six For the For the Six For the Increase (Decrease) Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended in Net Assets: Dec. 31, 1994 June 30, 1994 Dec. 31, 1994 June 30, 1994 Dec. 31, 1994 June 30, 1994 Operations: Investment income--net $ 75,466,668 $ 163,942,349 $ 46,705,441 $ 98,848,832 $ 17,225,843 $ 36,430,985 Realized gain (loss) on investments--net (52,929,371) 80,935,129 (60,693,788) 62,008,845 (1,274,753) (968,336) Change in unrealized appreciation/deprecia- tion on investments--net (55,102,989) (275,252,365) (15,325,599) (172,722,080) (7,695,549) (13,063,534) -------------- -------------- ------------- -------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (32,565,692) (30,374,887) (29,313,946) (11,864,403) 8,255,541 22,399,115 -------------- -------------- ------------- -------------- ------------ ------------ Dividends & Investment income--net: Distribu- Class A (54,388,789) (119,441,701) (35,013,271) (75,680,507) (14,464,308) (31,987,779) tions to Class B (21,037,707) (44,500,648) (11,618,503) (23,168,325) (2,728,823) (4,443,206) Shareholders Class C (6,803) -- (8,025) -- (4,885) -- (Note 1f): Class D (33,369) -- (65,642) -- (27,827) -- Realized gain on investments--net: Class A (31,614,511) (57,171,047) (23,097,818) (36,128,677) -- -- Class B (14,155,831) (24,972,443) (8,776,286) (12,798,152) -- -- Class C (23,608) -- (30,111) -- -- -- Class D (104,611) -- (194,503) -- -- -- -------------- -------------- ------------- -------------- ------------ ------------ Net decrease in net assets resulting from dividends and distri- butions to shareholders (121,365,229) (246,085,839) (78,804,159) (147,775,661) (17,225,843) (36,430,985) -------------- -------------- ------------- -------------- ------------ ------------ Capital Share Net increase (decrease) Transactions in net assets derived (Note 4): from capital share transactions (210,286,665) (52,099,956) (99,235,469) 44,114,517 (122,179,033) 7,793,356 -------------- -------------- ------------- -------------- ------------ ------------ Net Assets: Total decrease in net assets (364,217,586) (328,560,682) (207,353,574) (115,525,547) (131,149,335) (6,238,514) Beginning of period 2,807,934,261 3,136,494,943 1,662,349,900 1,777,875,447 935,676,769 941,915,283 -------------- -------------- ------------- -------------- ------------ ------------ End of period $2,443,716,675 $2,807,934,261 $1,454,996,326 $1,662,349,900 $804,527,434 $935,676,769 ============== ============== ============== ============== ============ ============ See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
Insured Portfolio Class A The following per share data and ratios For the Six have been derived from information provided Months in the financial statements. Ended Dec. 31, For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991 Per Share Net asset value, beginning of period $ 7.88 $ 8.64 $ 8.26 $ 7.92 $ 7.86 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .24 .47 .50 .52 .54 Realized and unrealized gain (loss) on investments--net (.31) (.53) .49 .41 .12 ----------- ----------- ----------- ----------- ----------- Total from investment operations (.07) (.06) .99 .93 .66 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.24) (.47) (.50) (.52) (.54) Realized gain on investments--net (.14) (.23) (.11) (.07) (.06) ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.38) (.70) (.61) (.59) (.60) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 7.43 $ 7.88 $ 8.64 $ 8.26 $ 7.92 =========== =========== =========== =========== =========== Total Investment Based on net asset value per share (1.00%)+++ (1.08%) 12.43% 12.11% 8.84% Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses 42%* .42% .42% .44% .45% Net Assets: =========== =========== =========== =========== =========== Investment income--net 5.80%* 5.53% 5.94% 6.44% 6.90% =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 1,676,326 $ 1,941,741 $ 2,225,188 $ 2,062,591 $ 1,984,307 Data: =========== =========== =========== =========== =========== Portfolio turnover 14.83% 28.34% 43.86% 22.50% 33.12% =========== =========== =========== =========== =========== Insured Portfolio Class B The following per share data and ratios For the Six have been derived from information provided Months in the financial statements. Ended Dec. 31, For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991 Per Share Net asset value, beginning of period $ 7.87 $ 8.63 $ 8.26 $ 7.92 $ 7.86 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .21 .40 .44 .46 .48 Realized and unrealized gain (loss) on investments--net (.30) (.53) .48 .41 .12 ----------- ----------- ----------- ----------- ----------- Total from investment operations (.09) (.13) .92 .87 .60 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.21) (.40) (.44) (.46) (.48) Realized gain on investments--net (.14) (.23) (.11) (.07) (.06) ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.35) (.63) (.55) (.53) (.54) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 7.43 $ 7.87 $ 8.63 $ 8.26 $ 7.92 ----------- ----------- ----------- ----------- ----------- Total Investment Based on net asset value per share (1.28%)+++ (1.81%) 11.45% 11.27% 8.02% Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses, excluding distribution and Net Assets: account maintenance fees .43%* .42% .43% .44% .45% =========== =========== =========== =========== =========== Expenses 1.18%* 1.17% 1.18% 1.19% 1.20% =========== =========== =========== =========== =========== Investment income--net 5.05%* 4.78% 5.17% 5.69% 6.13% =========== =========== =========== =========== =========== Supplemental Net assets, end of period Data: (in thousands) $ 752,514 $ 866,193 $ 911,307 $ 706,016 $ 537,755 =========== =========== =========== =========== =========== Portfolio turnover 14.83% 28.34% 43.86% 22.50% 33.12% =========== =========== =========== =========== =========== *Annualized. **Total investment returns exclude the effects of sales loads. +++Aggregate total investment return. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (continued)
Insured Portfolio The following per share data and ratios have been derived For the Period from information provided in the financial statements. October 21, 1994++ to December 31, 1994 Increase (Decrease) in Net Asset Value: Class C Class D Per Share Net asset value, beginning of period $ 7.68 $ 7.68 Operating ----------- ----------- Performance: Investment income--net .08 .08 Realized and unrealized gain (loss) on investments--net (.11) (.11) ----------- ----------- Total from investment operations (.03) (.03) ----------- ----------- Less dividends and distributions: Investment income--net (.08) (.08) Realized gain on investments--net (.14) (.14) ----------- ----------- Total dividends and distributions (.22) (.22) ----------- ----------- Net asset value, end of period $ 7.43 $ 7.43 =========== =========== Total Investment Based on net asset value per share (.41%)+++ (.30%)+++ Return:** =========== =========== Ratios to Average Expenses, excluding distribution and account maintenance fees .45%* .43%* Net Assets: =========== =========== Expenses 1.25%* .68%* =========== =========== Investment income--net 5.32%* 5.91%* =========== =========== Supplemental Net assets, end of period (in thousands) $ 1,427 $ 13,449 Data: =========== =========== Portfolio turnover 14.83% 14.83% =========== =========== National Portfolio Class A The following per share data and ratios For the Six have been derived from information provided Months in the financial statements. Ended Dec. 31, For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991 Per Share Net asset value, beginning of period $ 10.08 $ 11.02 $ 10.64 $ 10.17 $ 10.12 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .30 .62 .67 .71 .73 Realized and unrealized gain (loss) on investments--net (.47) (.64) .57 .58 .05 ----------- ----------- ----------- ----------- ----------- Total from investment operations (.17) (.02) 1.24 1.29 .78 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.30) (.62) (.67) (.71) (.73) Realized gain on investments--net (.21) (.30) (.19) (.11) -- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.51) (.92) (.86) (.82) (.73) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 9.40 $ 10.08 $ 11.02 $ 10.64 $ 10.17 =========== =========== =========== =========== =========== Total Investment Based on net asset value per share (1.74%)+++ (.47%) 12.21% 13.09% 7.94% Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses .56%* .55% .55% .55% .55% Net Assets: =========== =========== =========== =========== =========== Investment income--net 6.00%* 5.72% 6.23% 6.80% 7.20% =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 1,042,031 $ 1,203,181 $ 1,353,805 $ 1,278,055 $ 1,255,820 Data: =========== =========== =========== =========== =========== Portfolio turnover 34.26% 73.33% 65.43% 50.94% 75.25% =========== =========== =========== =========== =========== National Portfolio Class B The following per share data and ratios For the Six have been derived from information provided Months in the financial statements. Ended Dec. 31, For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991 Per Share Net asset value, beginning of period $ 10.07 $ 11.02 $ 10.63 $ 10.16 $ 10.11 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .26 .54 .59 .63 .65 Realized and unrealized gain (loss) on investments--net (.47) (.65) .58 .58 .05 ----------- ----------- ----------- ----------- ----------- Total from investment operations (.21) (.11) 1.17 1.21 .70 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.26) (.54) (.59) (.63) (.65) Realized gain on investments--net (.21) (.30) (.19) (.11) -- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.47) (.84) (.78) (.74) (.65) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 9.39 $ 10.07 $ 11.02 $ 10.63 $ 10.16 =========== =========== =========== =========== =========== Total Investment Based on net asset value per share (2.05%)+++ (1.39%) 11.47% 12.25% 7.14% Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses, excluding distribution and Net Assets: account maintenance fees .57%* .55% .56% .56% .56% =========== =========== =========== =========== =========== Expenses 1.32%* 1.30% 1.31% 1.31% 1.31% =========== =========== =========== =========== =========== Investment income--net 5.24%* 4.97% 5.46% 6.03% 6.43% =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 401,761 $ 459,169 $ 424,071 $ 286,375 $ 213,581 Data: =========== =========== =========== =========== =========== Portfolio turnover 34.26% 73.33% 65.43% 50.94% 75.25% =========== =========== =========== =========== =========== *Annualized. **Total investment returns exclude the effects of sales loads. ++Commencement of Operations. +++Aggregate total investment return. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (concluded)
National Portfolio The following per share data and ratios have been derived For the Period from information provided in the financial statements. October 21, 1994++ to December 31, 1994 Increase (Decrease) in Net Asset Value: Class C Class D Per Share Operating Performance: Net asset value, beginning of period $ 9.85 $ 9.85 Investment income--net .10 .11 Realized and unrealized gain (loss) on investments--net (.24) (.24) Total from investment operations (.14) (.13) Less dividends and distributions: Investment income--net (.10) (.11) Realized gain on investments--net (.21) (.21) Total dividends and distributions (.31) (.32) Net asset value, end of period $ 9.40 $ 9.40 Total Investment Return:** Based on net asset value per share (1.39%)++++ (1.29%)++++ Ratios to Average Net Assets: Expenses, excluding distribution and account maintenance fees .58%* .57%* Expenses 1.38%* .82%* Investment income--net 5.61%* 6.15%* Supplemental Data: Net assets, end of period (in thousands) $ 1,458 $ 9,746 Portfolio turnover 34.26% 34.26% Limited Maturity Portfolio Class A The following per share data and ratios For the Six have been derived from information provided Months in the financial statements. Ended Dec. 31, For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991 Per Share Net asset value, beginning of period $ 9.87 $ 10.01 $ 9.91 $ 9.75 $ 9.71 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .19 .37 .41 .50 .57 Realized and unrealized gain (loss) on investments--net (.10) (.14) .10 .16 .04 ----------- ----------- ----------- ----------- ----------- Total from investment operations .09 .23 .51 .66 .61 ----------- ----------- ----------- ----------- ----------- Less dividends: Investment income--net (.19) (.37) (.41) (.50) (.57) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 9.77 $ 9.87 $ 10.01 $ 9.91 $ 9.75 =========== =========== =========== =========== =========== Total Investment Based on net asset value per share .95%+++ 2.30% 5.28% 6.93% 6.45% Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses .40%* .40% .41% .40% .40% Net Assets: =========== =========== =========== =========== =========== Investment income--net 3.84%* 3.68% 4.13% 5.02% 5.88% =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 638,537 $ 790,142 $ 846,736 $ 613,407 $ 350,549 Data: =========== =========== =========== =========== =========== Portfolio turnover 10.00% 45.67% 65.43% 96.32% 93.06% =========== =========== =========== =========== =========== Limited Maturity Portfolio Class B The following per share data and ratios For the Six For the For the have been derived from information Months Year Period For the Period provided in the financial statements. Ended Ended Nov. 2, 1992++ October 21, 1994++ Dec. 31, June 30, to June 30, to December 31, 1994 Increase (Decrease) in Net Asset Value: 1994 1994 1993 Class C Class D Per Share Net asset value, beginning of period $ 9.87 $ 10.01 $ 9.93 $ 9.83 $ 9.83 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .17 .33 .24 .07 .07 Realized and unrealized gain (loss) on investments--net (.10) (.14) .08 (.06) (.06) ----------- ----------- ----------- ----------- ----------- Total from investment operations .07 .19 .32 .01 .01 ----------- ----------- ----------- ----------- ----------- Less dividends: Investment income--net (.17) (.33) (.24) (.07) (.07) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 9.77 $ 9.87 $ 10.01 $ 9.77 $ 9.77 =========== =========== =========== =========== =========== Total Investment Based on net asset value per share .75%+++ 1.98% 3.26%+++ .11%+++ .13%+++ Return:** =========== =========== =========== =========== =========== Ratios to Average Expenses, excluding distribution and Net Assets: account maintenance fees .41%* .41% .41%* .44%* .41%* =========== =========== =========== =========== =========== Expenses .76%* .76% .76%* .59%* .51%* =========== =========== =========== =========== =========== Investment income--net 3.49%* 3.33% 3.60%* 3.76%* 3.82%* =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 156,825 $ 145,534 $ 95,179 $ 1,339 $ 7,826 Data: =========== =========== =========== =========== =========== Portfolio turnover 10.00% 45.67% 65.43% 10.00% 10.00% =========== =========== =========== =========== =========== *Annualized. **Total investment returns exclude the effects of sales loads. +++Aggregate total investment return. ++Commencement of Operations. 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. These unaudited interim finan- cial statements reflect all adjustments which are, in the opinon of management, necessary to a fair statement of the results for the interim period presented. All such adjustments are of a normal recurring nature. The Fund's Portfolios offer four classes of shares under the Merrill Lynch Select Pricing SM System. Shares of Class A and Class D are sold with a front-end sales charge. Shares of Class B and Class C may be subject to a contingent deferred sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Class B, Class C and Class D Shares bear certain expenses related to the account maintenance of such shares, and Class B and Class C Shares also bear certain expenses related to the distribution of such shares. Each class has exclusive voting rights with respect to matters relating to its account maintenance and 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) Derivative financial instruments--The Fund may engage in various portfolio strategies to seek to increase its return by hedging its portfolio against adverse movements in the debt markets. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under the contract. * 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 securities 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 require- ments of the Internal Revenue Code applicable to regulated invest- ment 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 trans- actions 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 deter- mined on the identified cost basis. (e) Prepaid registration fees--Prepaid registration fees are charged to expense 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"). The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. The Fund has also entered into a Distribution Agreement and Distribution Plans with Merrill Lynch Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned sub- sidiary of Merrill Lynch Group, 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 operation 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 .40 % .50 % .40 % In excess of $250 million but not exceeding $400 million .375 .475 .375 In excess of $400 million but not exceeding $550 million .375 .475 .35 In excess of $550 million but not exceeding $1.5 billion .375 .475 .325 In excess of $1.5 billion .35 .475 .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 extra- ordinary 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. Pursuant to the distribution plans ("the Distribution Plans") adopted by the Fund in accordance with Rule 12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor ongoing account maintenance and distribution fees. The Distributor voluntarily did not collect any Class C distribution fees in the Limited Maturity Portfolio until January 10, 1995. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows: Account Maintenance Fees Distribution Fees Insured National Limited Insured National Limited Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Class B .25% .25% .15% .50% .50% .20% Class C .25% .25% .15% .55% .55% .20% Class D .25% .25% .10% -- -- -- Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co., also provides account maintenance and distribution services to the Fund. The ongoing account maintenance fee compensates the Distributor and MLPF&S for providing account maintenance services to Class B, Class C and Class D shareholders. The ongoing distribu- tion fee compensates the Distributor and MLPF&S for providing shareholder and distribution-related services to Class B and Class C shareholders. For the six months ended December 31, 1994, MLFD earned under- writing discounts and MLPF&S earned dealer concessions on sales of the Fund's Class A and Class D Shares as follows: Insured National Limited Maturity Portfolio Portfolio Portfolio Class A Shares: MLFD $ 16,247 $ 13,417 $ 7,816 MLPF&S 161,996 130,295 55,464 Class D Shares: MLFD 3,095 2,490 185 MLPF&S 26,295 18,678 3,059 MLPF&S received contingent deferred sales charges of $1,905,750 relating to transactions in Class B Shares, amounting to $1,134,503 $544,622 and $226,625 in the Insured, National and Limited Maturity Portfolios, respectively, and $2,061 relating to transactions in Class C Shares, amounting to $29 and $2,032 in the Insured 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, MLFD, FDS, PSI, MLPF&S, and/or ML & Co. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the six months ended December 31, 1994, were as follows: Purchases Sales Insured Portfolio $359,152,104 $546,666,207 National Portfolio 493,515,857 506,375,476 Limited Maturity Portfolio 75,732,547 260,120,677 Net realized and unrealized losses as of December 31, 1994 were as follows: Realized Unrealized Insured Portfolio Losses Losses Long-term investments $(52,929,371) $(42,109,448) Short-term investments -- (677,607) ------------ ------------ Total $(52,929,371) $(42,787,055) ============ ============ NOTES TO FINANCIAL STATEMENTS (continued) Realized Unrealized National Portfolio Losses Losses Long-term investments $(52,714,560) $(51,732,490) Short-term investments (481,478) (54,395) Financial future contracts (7,497,750) -- ------------ ------------ Total $(60,693,788) $(51,786,885) ============ ============ Realized Unrealized Limited Maturity Portfolio Losses Losses Long-term investments $ (1,166,165) $ (8,597,523) Short-term investments (108,588) (485,620) ------------ ------------ Total $ (1,274,753) $ (9,083,143) ============ ============ As of December 31, 1994, net unrealized appreciation/depreciation for Federal income tax purposes were as follows: Gross Gross Net Unrealized Unrealized Unrealized Appreciation Depreciation Depreciation Insured Portfolio $52,924,554 $(95,711,609) $ (42,787,055) National Portfolio 19,897,972 (71,684,857) (51,786,885) Limited Maturity Portfolio 538,975 (9,622,118) (9,083,143) The aggregate cost of investments at December 31, 1994 for Federal income tax purposes was $2,487,699,618 for the Insured Portfolio, $1,513,632,588 for the National Portfolio, and $818,971,048 for the Limited Maturity Portfolio. 4. Capital Share Transactions: Net increase (decrease) on net assets derived from capital share transactions for the six months December 31, 1994 and the year ended June 30, 1994 was $(210,286,665) and $(52,099,956), respectively, for the Insured Portfolio; $(99,235,469) and $44,114,517, respectively, for the National Portfolio and $(122,179,033) and $7,793,356, respectively, for the Limited Maturity Portfolio. Transactions in capital shares for each class were as follows: Insured Portfolio Class A Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 12,102,677 $ 93,473,833 Shares issued to shareholders in reinvestment of dividends and distributions 2,591,184 20,001,276 ------------ ------------- Total issued 14,693,861 113,475,109 Shares redeemed (35,527,603) (272,240,723) ------------ ------------- Net decrease (20,833,742) $(158,765,614) ============ ============= 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 B Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 8,741,451 $ 66,638,227 Shares issued to shareholders in reinvestment of dividends and distributions 1,168,556 9,008,862 ------------ ------------- Total issued 9,910,007 75,647,089 Shares redeemed (18,574,743) (142,049,092) ------------ ------------- Net decrease (8,664,736) $ (66,402,003) ============ ============= 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 C Shares for the Period Dollar October 21, 1994++ to December 31, 1994 Shares Amount Shares sold 202,260 $ 1,508,277 Shares issued to shareholders in reinvestment of dividends and distributions 146 1,054 ------------ ------------- Total issued 202,406 1,509,331 Shares redeemed (10,283) (76,602) ------------ ------------- Net increase 192,123 $ 1,432,729 ============ ============= [FN] ++Commencement of Operations. Insured Portfolio Class D Shares for the Period Dollar October 21, 1994++ to December 31, 1994 Shares Amount Shares sold 2,055,423 $ 15,282,618 Shares issued to shareholders in reinvestment of dividends and distributions 160 1,157 ------------ ------------- Total issued 2,055,583 15,283,775 Shares redeemed (245,745) (1,835,552) ------------ ------------- Net increase 1,809,838 $ 13,448,223 ============ ============= [FN] ++Commencement of Operations. National Portfolio Class A Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 2,529,048 $ 25,012,714 Shares issued to shareholders in reinvestment of dividends and distributions 3,095,773 29,798,313 ------------ ------------- Total issued 5,624,821 54,811,027 Shares redeemed (14,124,427) (137,698,253) ------------ ------------- Net decrease (8,499,606) $ (82,887,226) ============ ============= 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 B Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 4,509,969 $ 43,999,400 Shares issued to shareholders in reinvestment of dividends and distributions 1,107,106 10,631,219 ------------ ------------- Total issued 5,617,075 54,630,619 Shares redeemed (8,425,261) (82,333,730) ------------ ------------- Net decrease (2,808,186) $ (27,703,111) ============ ============= 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 C Shares for the Period Dollar October 21, 1994++ to December 31, 1994 Shares Amount Shares sold 175,071 $ 1,660,808 Shares issued to shareholders in reinvestment of dividends and distributions 2,023 19,010 ------------ ------------- Total issued 177,094 1,679,818 Shares redeemed (21,930) (208,212) ------------ ------------- Net increase 155,164 $ 1,471,606 ============ ============= [FN] ++Commencement of Operations. NOTES TO FINANCIAL STATEMENTS (concluded) National Portfolio Class D Shares for the Period Dollar October 21, 1994++ to December 31, 1994 Shares Amount Shares sold 1,612,258 $ 15,334,320 Shares issued to shareholders in reinvestment of dividends and distributions 14,577 132,307 ------------ ------------- Total issued 1,626,835 15,466,627 Shares redeemed (589,565) (5,583,365) ------------ ------------- Net increase 1,037,270 $ 9,883,262 ============ ============= [FN] ++Commencement of Operations. Limited Maturity Portfolio Class A Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 4,068,657 $ 40,048,103 Shares issued to shareholders in reinvestment of dividends 948,926 9,325,191 ------------ ------------- Total issued 5,017,583 49,373,294 Shares redeemed (19,715,595) (193,595,791) ------------ ------------- Net decrease (14,698,012) $(144,222,497) ============ ============= 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 and distributions 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 B Shares for the Six Months Dollar Ended December 31, 1994 Shares Amount Shares sold 6,171,696 $ 60,642,960 Shares issued to shareholders in reinvestment of dividends 203,733 2,001,205 ------------ ------------- Total issued 6,375,429 62,644,165 Shares redeemed (5,068,501) (49,783,332) ------------ ------------- Net increase 1,306,928 $ 12,860,833 ============ ============= 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 and distributions 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 $ 2,312,024 ============ ============= Limited Portfolio Class C Shares for the Period October 21, 1994++ to Dollar December 31, 1994 Shares Amount Shares sold 158,212 $ 1,548,098 Shares issued to shareholders in reinvestment of dividends 400 3,908 ------------ ------------- Total issued 158,612 1,552,006 Shares redeemed (21,534) (210,399) ------------ ------------- Net increase 137,078 $ 1,341,607 ============ ============= [FN] ++Commencement of Operations. Limited Portfolio Class D Shares for the Period October 21, 1994++ to Dollar December 31, 1994 Shares Amount Shares sold 1,182,373 $ 11,569,137 Shares issued to shareholders in reinvestment of dividends 1,658 16,205 ------------ ------------- Total issued 1,184,031 11,585,342 Shares redeemed (382,898) (3,744,318) ------------ ------------- Net increase 801,133 $ 7,841,024 [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. -----END PRIVACY-ENHANCED MESSAGE-----