-----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, Mj8J3em+RutAQShxBereMSWcFhEUMrG+Wh7EVQjkBWe8+fer7SGhX5k14DcB8lcC tBncNYKX3Q2BOGSgdvJbiA== 0000900092-95-000129.txt : 19950518 0000900092-95-000129.hdr.sgml : 19950518 ACCESSION NUMBER: 0000900092-95-000129 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950517 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-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-02688 FILM NUMBER: 95540512 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-30B-2 1 QUARTERLY REPORT MERRILL LYNCH MUNICIPAL BOND FUND, INC. FUND LOGO Quarterly Report March 31, 1995 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 representaion 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 Increasing signs of slowing economic growth led to higher US stock and bond prices during the March quarter. Although gross domestic product (GDP) was reported to have increased at a revised 5.1% rate during the final quarter of 1994, declines in other indicators such as new home sales and durable goods orders registered thus far in 1995 have led investors to anticipate that the economy is losing enough momentum to keep inflation under control and preclude further significant monetary policy tightening by the Federal Reserve Board. However, as US stock and bond markets have risen, the value of the US dollar reached new lows relative to the yen and the Deutschemark. Persistent trade deficits and exports of capital from the United States have kept the US currency in a decade-long decline relative to the Japanese and German currencies. Over the longer term, since the United States has the highest productivity among industrialized nations and among the lowest labor costs, demand for US dollar- denominated assets may improve. However, a reduction of the still- widening US trade deficit may be necessary before the US dollar appreciates substantially relative to the yen and the Deutschemark. The first three months of 1995 were very positive for the US stock and bond markets. Continued signs of a moderating expansion and well- contained inflationary pressures would provide further assurance that the peak in interest rates is behind us, creating a stronger foundation for higher stock and bond prices. On the other hand, indications of reaccelerating growth and further significant monetary policy tightening by the Federal Reserve Board would be a decided negative for the US financial markets. The Municipal Market During the three months ended March 31, 1995, the municipal bond market rallied strongly, continuing the improvement it showed at the end of 1994. During the quarter ended March 31, 1995, long-term tax- exempt revenue bond yields, as measured by the Bond Buyer Revenue Bond Index, declined almost 70 basis points (0.70%) to 6.29%. Bond yields declined over 100 basis points from the highs experienced in November 1994 and are now lower than they were a year ago. US Treasury bond yields exhibited similar declines in recent months. Thus far in 1995, the 30-year US Treasury bond yield has fallen approximately 50 basis points to 7.43%. Tax-exempt bond yields declined more than their taxable counterparts so far in 1995 largely because of the dramatic decline in new municipal bond issuance in recent quarters. During the March 31, 1995 quarter, less than $30 billion in new long-term municipal securities were issued, representing a 45% decline in issuance compared to the March 31, 1994 quarter. Similarly, over the past six months, less than $75 billion in municipal bonds were issued, a decline of approximately 50% versus the comparable period a year ago. Issuance was particularly low during January and February with monthly volume of less than $8 billion. These levels are the lowest monthly totals since the mid-1980s. Both institutional and individual investors saw significant cash inflows in recent months. These cash flows were derived from regular coupon payment, bond maturities and the proceeds from early bond calls and redemptions. Investors received approximately $20 billion in principal redemptions and coupon income during January 1995. With monthly issuance in the $7 billion--$10 billion range, the current supply/demand imbalance dominated the municipal market, and bond prices have risen accordingly. The tax-exempt bond market's technical position is likely to remain strong throughout most of this year. We estimate that investor proceeds from all sources will exceed $200 billion during 1995. Estimates of total bond issuance for this year continue to be reduced with most estimates currently in the $125 billion range. Investors should find it increasingly difficult to replace existing holdings as they mature and reinvest coupon income in such an environment. However, despite their strong technical position, municipal bonds remain an attractive investment alternative. At current levels, long- term municipal revenue bonds yield over 84% of the US Treasury bond's yield. Municipal bond yields are usually considered attractive whenever the yield ratio exceeds 82%. For example, to an investor in the 39% Federal income tax bracket, municipal revenue bonds currently yield in excess of 10% on a tax equivalent basis. As municipal bonds become increasingly scarce during 1995 and beyond, currently available tax-exempt bond yields should be attractive to long-term investors. Portfolio Strategy Insured and National Portfolios We consistently manage the Fund's Insured and National Portfolios to seek to balance protection of net asset value with a generous accrual of tax-exempt current income. Over the March quarter, the very positive technical condition of the municipal marketplace allowed municipal bond yields to decline, retracing to a halfway point between the lows of June 1993 and highs of late 1994. The Portfolios capitalized on this technical position by minimizing their cash equivalent reserves and purchasing highly liquid, quality revenue bonds with discounted coupons which will most fully participate in a declining interest rate environment. Despite the current positive tone of the municipal debt market, we are now proceeding with a cautious approach to the future direction of interest rates. As municipal bonds reach an overvalued relationship compared to their taxable counterparts, investor demand will start to recede, making it more difficult for continued price rises. Our strategy is to sell securities in this overpriced category and selectively replace them with higher couponed, "cushion" bonds. These bonds provide high current return with less market price volatility. Going forward, we will monitor the statistical releases for the direction of the US economy, and consequently future interest rate trends. Limited Maturity Portfolio On February 1, 1995, the Federal Reserve Board again tightened monetary policy by raising both the Federal Funds and the discount rates by 50 basis points to 6% and 5.25%, respectively. This marked the seventh monetary tightening of the cycle which began on February 4, 1994 and doubled the Federal Funds rate from 3% to 6%. However, despite this hike in the Federal Funds rate during the quarter, interest rates on short-term securities fell dramatically over the period as investors began to believe that the Federal Reserve Board might have achieved the elusive "soft landing" of economic growth. Therefore, interest rates on two-year US Treasury notes fell approximately 85 basis points over the course of the quarter. The Limited Maturity Portfolio became more aggressively positioned in January as the higher interest rates seen in December 1994 represented excellent relative value on a historic basis. This was accomplished by reducing the cash reserves of the Portfolio to approximately 10% in January and increasing the average portfolio maturity from approximately 11 months to about one and a half years by February. Therefore, the Portfolio benefited from the drop in yields and subsequent price appreciation from this more aggressive investment position. 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 the months and years to come. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Vincent R. Giordano) Vincent R. Giordano Senior Vice President and Portfolio Manager (Kenneth A. Jacob) Kenneth A. Jacob Vice President and Portfolio Manager April 26, 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 maintenance 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 maximum 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 Portfolios. 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 redeemed within one year of purchase. * Class D Shares incur a maximum 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--7. "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 on pages 8 and 9. The "Recent Performance Results" table 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 March 31, 1995 and for Class C and Class D Shares for the since inception and 3-month periods ended March 31, 1995. 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 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. 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 3/31/95 +7.18% +2.89% Five Years Ended 3/31/95 +8.12 +7.24 Ten Years Ended 3/31/95 +9.36 +8.91 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/95 +6.39% +2.40% Five Years Ended 3/31/95 +7.33 +7.33 Inception (10/21/88) through 3/31/95 +7.18 +7.18 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. National Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 3/31/95 +6.37% +2.12% Five Years Ended 3/31/95 +7.97 +7.09 Ten Years Ended 3/31/95 +9.46 +9.02 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/95 +5.59% +1.66% Five Years Ended 3/31/95 +7.16 +7.16 Inception (10/21/88) through 3/31/95 +6.98 +6.98 [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 3/31/95 +3.42% +2.38% Five Years Ended 3/31/95 +5.08 +4.87 Ten Years Ended 3/31/95 +5.46 +5.35 [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/95 +3.09% +2.09% Inception (11/2/92) through 3/31/95 +3.23 +3.23 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 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 3/31/95 +6.86% +5.86% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 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 3/31/95 +7.25% +2.96% [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 3/31/95 +5.34% +4.34% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 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 3/31/95 +5.58% +1.36% [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 3/31/95 +1.77% +0.77% [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 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 3/31/95 +1.94% +0.92% [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. PERFORMANCE DATA (continued) 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 1/1/95--3/31/95 7.43/7.87 9.40/9.91 9.77/9.85 0.10 0.14 0.09 + 7.50 + 7.02 +1.83 ------ ------ ----- Total $10.65 $13.11 $8.95 Cumulative total return as of 3/31/95: +223.90%** +303.82%**+147.56%** *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 $0.065 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 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 1/1/95--3/31/95 7.43/7.87 9.39/9.91 9.77/9.85 0.09 0.12 0.08 + 7.31 + 6.95 + 1.75 ----- ----- ----- Total $3.53 $4.73 $0.83 Cumulative total return as of 3/31/95: +56.35%** +54.41%** + 7.96%** *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 Portfolio. (2)Includes capital gains of $0.058 and $0.060 for the Insured and National Portfolios, respectively. (3)Includes capital gains of $0.084 and $0.130 for the Insured and National Portfolios, respectively. (4)Includes capital gains of $0.181 and $0.157 for the Insured and National Portfolios, respectively. (5)Includes capital gains of $0.141 and $0.209 for the Insured and National Portfolios, respectively.
PERFORMANCE DATA (concluded) Recent Performance Results*
12 Month 3 Month Standardized 3/31/95 12/31/94 3/31/94++ % Change++ % Change 30-Day Yield Insured Portfolio Class A Shares $7.87 $ 7.43 $ 7.93 +1.12%(1) +5.92% 5.20% Insured Portfolio Class B Shares 7.87 7.43 7.93 +1.12(1) +5.92 4.65% Insured Portfolio Class C Shares 7.87 7.43 7.68 +4.42(1) +5.92 4.60% Insured Portfolio Class D Shares 7.88 7.43 7.68 +4.55(1) +6.06 4.96% National Portfolio Class A Shares 9.91 9.40 10.11 +0.20(2) +5.43 5.55% National Portfolio Class B Shares 9.91 9.39 10.11 +0.20(2) +5.54 5.02% National Portfolio Class C Shares 9.91 9.40 9.85 +2.84(2) +5.43 4.97% National Portfolio Class D Shares 9.91 9.40 9.85 +2.84(2) +5.43 5.31% Limited Maturity Portfolio Class A Shares 9.85 9.77 9.90 -0.51 +0.82 3.87% Limited Maturity Portfolio Class B Shares 9.85 9.77 9.90 -0.51 +0.82 3.54% Limited Maturity Portfolio Class C Shares 9.84 9.77 9.83 +0.10 +0.72 3.72% Limited Maturity Portfolio Class D Shares 9.85 9.77 9.83 +0.20 +0.82 3.77% Insured Portfolio Class A Shares--Total Return +7.18(3) +7.50(4) Insured Portfolio Class B Shares--Total Return +6.39(5) +7.31(6) Insured Portfolio Class C Shares--Total Return +6.86(7) +7.30(8) Insured Portfolio Class D Shares--Total Return +7.25(9) +7.57(10) National Portfolio Class A Shares--Total Return +6.37(11) +7.02(12) National Portfolio Class B Shares--Total Return +5.59(13) +6.95(14) National Portfolio Class C Shares--Total Return +5.34(15) +6.82(16) National Portfolio Class D Shares--Total Return +5.58(17) +6.96(18) Limited Maturity Portfolio Class A Shares--Total Return +3.42(19) +1.83(20) Limited Maturity Portfolio Class B Shares--Total Return +3.09(21) +1.75(22) Limited Maturity Portfolio Class C Shares--Total Return +1.77(23) +1.66(24) Limited Maturity Portfolio Class D Shares--Total Return +1.94(25) +1.81(26) *Investment results shown do not reflect 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 $0.442 per share ordinary income dividends and $0.141 per share capital gains distributions. (4)Percent change includes reinvestment of $0.105 per share ordinary income dividends. (5)Percent change includes reinvestment of $0.384 per share ordinary income dividends and $0.141 per share capital gains distributions. (6)Percent change includes reinvestment of $0.091 per share ordinary income dividends. (7)Percent change includes reinvestment of $0.166 per share ordinary income dividends and $0.141 per share capital gains distributions. (8)Percent change includes reinvestment of $0.099 per share ordinary income dividends. (9)Percent change includes reinvestment of $0.185 per share ordinary income dividends and $0.141 per share capital gains distributions. (10)Percent change includes reinvestment of $0.100 per share ordinary income dividends. (11)Percent change includes reinvestment of $0.582 per share ordinary income dividends and $0.209 per share capital gains distributions. (12)Percent change includes reinvestment of $0.137 per share ordinary income dividends. (13)Percent change includes reinvestment of $0.508 per share ordinary income dividends and $0.209 per share capital gains distributions. (14)Percent change includes reinvestment of $0.120 per share ordinary income dividends. (15)Percent change includes reinvestment of $0.222 per share ordinary income dividends and $0.209 per share capital gains distributions. (16)Percent change includes reinvestment of $0.119 per share ordinary income dividends. (17)Percent change includes reinvestment of $0.244 per share ordinary income dividends and $0.209 per share capital gains distributions. (18)Percent change includes reinvestment of $0.131 per share ordinary income dividends. (19)Percent change includes reinvestment of $0.371 per share ordinary income dividends. (20)Percent change includes reinvestment of $0.089 per share ordinary income dividends. (21)Percent change includes reinvestment of $0.339 per share ordinary income dividends. (22)Percent change includes reinvestment of $0.080 per share ordinary income dividends. (23)Percent change includes reinvestment of $0.152 per share ordinary income dividends. (24)Percent change includes reinvestment of $0.081 per share ordinary income dividends. (25)Percent change includes reinvestment of $0.159 per share ordinary income dividends. (26)Percent change includes reinvestment of $0.086 per share ordinary income dividends.
PORTFOLIO COMPOSITION For the Quarter Ended March 31, 1995 Insured Portfolio Top Ten States* Texas 14.85% California 7.81 Pennsylvania 7.76 Florida 6.91 New York 5.71 Georgia 5.28 South Carolina 4.74 Illinois 3.71 Michigan 3.42 Rhode Island 3.22 ------- Total Top Ten 63.41 Total Others 36.59 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1995 were $2,568,783,008. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart illustrating the following percentages: AAA/Aaa 94% Other++ 6% [FN] *Based on total market value of the Portfolio as of March 31, 1995. ++Temporary investments in short-term municipal securities. National Portfolio Top Ten States* New York 13.16% Texas 8.31 Florida 7.02 Michigan 5.88 Massachusetts 5.75 Georgia 4.71 Pennsylvania 4.43 Illinois 4.29 New Jersey 3.89 California 3.36 ------- Total Top Ten 60.80 Total Others 39.20 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1995 were $1,523,035,927. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart illustrating the following percentages: AAA/Aaa 22% AA/Aa 31% A/A 15% BBB/Baa 18% BB/Ba 1% Other++ 10% NR+++ 3% [FN] *Based on total market value of the Portfolio as of March 31, 1995. ++Temporary investments in short-term municipal securities. +++Not Rated. Limited Maturity Portfolio Top Ten States* California 10.18% Ohio 9.69 Illinois 6.85 Texas 6.57 Washington 5.59 Massachusetts 5.16 New Jersey 4.27 Michigan 3.64 Utah 3.61 Wisconsin 2.95 ------- Total Top Ten 58.51 Total Others 41.49 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1995 were $727,932,481. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart illustrating the following percentages: AA/Aaa 27% AA/Aa 24% A/A 22% BBB/Baa 1% Other++ 18% NR+++ 8% [FN] *Based on total market value of the Portfolio as of March 31, 1995. ++Temporary investments in short-term municipal securities. +++Not Rated. -----END PRIVACY-ENHANCED MESSAGE-----