-----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, aSLKt6eFSCyZ0cMPRQt7992DsgjDR+P7K3N4vs8Mrvnipu7zQrnv13HItNqLs2yY yRN8TXc44gFYpydO98OffA== 0000900092-95-000251.txt : 19950830 0000900092-95-000251.hdr.sgml : 19950830 ACCESSION NUMBER: 0000900092-95-000251 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950829 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: 95568102 BUSINESS ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543 BUSINESS PHONE: 6092822026 FORMER COMPANY: FORMER CONFORMED NAME: ONE LIBERTY MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19780622 N-30D 1 ANNUAL REPORT MERRILL LYNCH MUNICIPAL BOND FUND, INC. FUND LOGO Annual Report June 30, 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 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 Merrill Lynch Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, Florida 32246-6484 (800) 637-3863 Important Tax Information All of the net investment income distributions declared daily by Merrill Lynch Municipal Bond Fund, Inc. during its taxable year ended June 30, 1995 qualify as tax-exempt interest dividends for Federal income tax purposes. Additionally, the following table summarizes the capital gains distribu- tions declared by the National and Insured Portfolios during the year: Long-Term Record Payable Capital Date Date Gains National Portfolio 12/21/94 12/30/94 $.208516 Insured Portfolio 12/21/94 12/30/94 $.140852 There were no capital gains distributions declared by the Limited Maturity Portfolio during the year. Please retain this information for your records. TO OUR SHAREHOLDERS In the June quarter economic data showed evidence of slowing activity. Gross domestic product growth for the first three months of 1995 was reported at 2.7%, the weakest showing in the past 18 months. Other signs of a sluggish economy included slowing growth in the manufacturing sector in May and June as well as three consecutive months of declines in the Index of Leading Economic Indicators, an occur- rence which has often (but not always) forecast recessions. As a result, by the end of the June quarter concerns had arisen that the economic "soft landing" could turn into an actual recession. However, at the same time there were also expectations that a few months of very slow or zero growth would be followed by a pickup in economic activity later in the year. This view was supported by the stronger-than- expected employment data for June and an upward revision in May's employment figures. Thus far in 1995, economic develop- ments have been very positive for the US stock and bond markets, and most US stock market averages recently have attained record levels. In contrast, the US dollar has been persistently weak, especially relative to the yen. Following the Federal Reserve Board's cut in short-term interest rates in early July, continued signs of a moderating expan- sion and well-contained inflationary pressures could provide further assur- ance that the peak in US interest rates is behind us, creating a stronger foundation for higher stock and bond prices. On the other hand, indications of reaccelerating growth and increasing inflationary pressures would likely suggest that higher interest rates are on the horizon, a negative development for the US financial markets. The Municipal Market During the three months ended June 30, 1995, tax-exempt bond yields remained essentially unchanged. Initially, municipal bond yields con- tinued their earlier decline, falling to 5.94% in early June before investor concerns caused yields to rise to end the quarter at 6.28%. However, US Treasury bond yields continued to decline, falling approximately 80 basis points (0.80%) to 6.62% at the end of June 1995. Municipal bonds have underperformed US Treasury securities for a number of reasons. The record highs of the US equity market have continued to attract retail investors seeking further capital gains. Investor demand has also dimin- ished in recent months by the "sticker shock" effect that periodically affects the municipal bond market. Investors who had become accustomed to pur- chasing tax-exempt securities yielding in the 6.50%--7.00% range six or seven months ago, have demonstrated under- standable reluctance to purchase similar securities at current levels. The strong fundamental structure of the municipal bond market, however, suggests that such hesitancy may prove costly. However, the major reason for the tax-exempt market's recent under- performance was the concerns regarding the implication of municipal bonds' tax advantage resulting from various proposed tax-law changes (for example flat tax, value-added tax and national sales tax) that have reduced investor demand for tax-exempt products. Such concerns are likely to quickly recede as investors realize that such, if any, changes are unlikely to be enacted before late 1996 at the earliest. Also, long-term investors will recall 1986 when similar tax proposals were made and municipal bonds initially rose to at least 100% of taxable yields. Tax- exempt bond yields quickly declined as investors' fears proved to be unfounded. The municipal bond market's strong technical position has diminished somewhat in recent months. New-issue supply over the last six months has totaled approximately $69 billion, or a decline of over 25% versus the corre- sponding period in 1994. In recent months, however, municipalities issued approximately $40 billion in new securities, which represents only a 3% decline versus the same period a year earlier. Investor demand has remained muted in recent months despite significant funds available to investors in recent months. By the end of July investors, both individual and institutional, are expected to receive as much as $80 billion from tax-exempt bond maturities, coupon payments and the proceeds of early bond redemptions. Little new money has entered the municipal market in recent months, largely in response to the factors mentioned above. Consequently, much of the technical support the municipal market enjoyed earlier this year has evaporated causing municipal bond yields to decline at a lower rate than their taxable counterparts. Their recent relative underperformance has made municipal bonds particularly attractive to long-term investors. Tax-exempt bonds currently yield well over 90% of US Treasury securities. In some instances, A-rated, long-term revenue bonds have yielded almost 95% of US Treasury bonds. Analysts usually consider municipal bonds yielding over 82% of US Treasury securities to be historically attractive. With inflation- adjusted, "real" after-tax equivalent tax-exempt yields of over 6.50%, municipal securities appear to represent considerable value. Current tax-exempt yield levels appear to be over-compensating for any pro- posed changes in tax law that can be reasonably expected to be enacted. As Congressional hearings on this issue will continue into 1996, and the revenue losses resultant from such changes become more apparent, the likelihood of any significant changes to tax codes and the resultant decline of municipal bonds' inherent tax advantage should quickly decline. Under such a scenario, tax-exempt bond yields would quickly decline and currently available munici- pal bond yields would return to their normal historic relationship. Fiscal Year in Review Insured Portfolio and National Portfolio Our asset management strategies for the Insured Portfolio and National Portfolio were aimed at achieving the dual purposes of returning an attractive current yield and total return through price appreciation. During the latter months of 1994, it appeared that a potentially slowing economy combined with an extreme undervaluation of municipal debt securities relative to their taxable counterparts could result in municipal bond price appreciation. To capture the positive price action that followed, we positioned both Portfolios in a relatively aggressive stance after investing cash reserves in performance-oriented discount securi- ties which would be most active in an upward moving market. Our relatively aggressive investment approach created significant price appreciation for the fiscal year. Since credit quality spreads were historically narrow, this was accom- plished by using higher-yielding revenue bonds without any significant forfeiture in current yield. Going forward, we will continue to seek special credit situations to bolster cur- rent return to the Portfolios' share- holders within the quality limitations defined by the Fund's prospectus. We will also monitor the Federal Reserve Board's actions for insight into the direction of economic conditions and subsequent impact on the future direc- tion of interest rates. Limited Maturity Portfolio For the Limited Maturity Portfolio we maintained the relatively aggressive investment posture that we started in the previous quarter. Cash reserves of approximately 5% were maintained throughout most of the June quarter as weakening economic data indicated a possible reversal of Federal Reserve Board monetary policy from restrictive to one of easing. Although interest rates on three-year US Treasury notes fell approximately 100 basis points during the June quarter, interest rates on three-year AAA-rated municipal securities fell approximately 45 basis points as talk of tax reform negatively impacted municipal bond prices. Despite this underperformance of the municipal bond market, our relatively aggressive investment approach created significant price appreciation in the June quarter. This aggressive approach was in contrast to most of the Fund's fiscal year in which we maintained a very cautious portfolio strategy. Such a strategy in a period of dramatically rising interest rates, which occurred throughout 1994, greatly reduced the negative impact on the Fund's net asset value. Additionally, by reducing the cash reserve position and extending the Portfolio's average maturity in the first half of this year, we were able to participate in the massive bond market rally which has ensued for most of 1995. This strategy enabled the Portfolio to realize significant price appreciation so far in 1995. 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 August 15, 1995 PROXY RESULTS Insured Portfolio During the year ended June 30, 1995, Merrill Lynch Municipal Bond Fund, Inc.--Insured Portfolio shareholders voted on the following proposals. Proposals 1, 2 and 4 were approved at a special shareholders' meeting on September 26, 1994. Proposal 3 was passed at a special shareholders' meeting on January 31, 1995. The description of each proposal and number of shares voted are as follows:
Shares Voted Shares Voted For Without Authority 1. To elect the Portfolio's Board of Directors: Ronald W. Forbes 307,636,900 4,839,992 Cynthia A. Montgomery 307,502,772 4,974,120 Charles C. Reilly 307,640,133 4,836,759 Kevin A. Ryan 307,583,795 4,893,097 Richard R. West 307,640,133 4,836,759 Arthur Zeikel 307,531,142 4,945,750 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To select Deloitte & Touche LLP as the Portfolio's independent auditors. 304,870,682 1,635,265 5,970,945 3. To approve certain changes to the Portfolio's fundamental investment restrictions. 184,269,930 10,510,704 12,684,283 4. To amend the Portfolio's articles of incorporation to implement the Merrill Lynch Select Pricing SM System. 275,735,602 16,978,991 19,762,299 National Portfolio During the year ended June 30, 1995, Merrill Lynch Municipal Bond Fund, Inc.--National Portfolio shareholders voted on the following proposals. Proposals 1, 2 and 4 were approved at a special shareholders' meeting on September 26, 1994. Proposal 3 was passed at a special shareholders' meeting on January 31, 1995. The description of each proposal and number of shares voted are as follows: Shares Voted Shares Voted For Without Authority 1. To elect the Portfolio's Board of Directors: Ronald W. Forbes 144,718,599 2,246,916 Cynthia A. Montgomery 144,704,520 2,260,995 Charles C. Reilly 144,726,619 2,238,896 Kevin A. Ryan 144,723,092 2,242,423 Richard R. West 144,729,957 2,235,558 Arthur Zeikel 144,661,832 2,303,683 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To select Deloitte & Touche LLP as the Portfolio's independent auditors. 143,430,348 860,121 2,675,046 3. To approve certain changes to the Portfolio's fundamental investment restrictions. 82,710,483 4,502,057 5,590,176 4. To amend the Portfolio's articles of incorporation to implement the Merrill Lynch Select Pricing SM System. 130,324,677 7,293,708 9,347,130 Limited Maturity Portfolio During the year ended June 30, 1995, Merrill Lynch Municipal Bond Fund, Inc.--Limited Maturity Portfolio shareholders voted on the following proposals. Proposals 1, 2 and 4 were approved at a special shareholders' meeting on September 26, 1994. Proposal 3 was passed at a special shareholders' meeting on January 31, 1995. The description of each proposal and number of shares voted are as follows: Shares Voted Shares Voted For Without Authority 1. To elect the Portfolio's Board of Directors: Ronald W. Forbes 85,138,070 2,248,547 Cynthia A. Montgomery 85,138,070 2,248,547 Charles C. Reilly 85,138,070 2,248,547 Kevin A. Ryan 85,138,070 2,248,547 Richard R. West 85,082,330 2,304,287 Arthur Zeikel 85,082,330 2,304,287 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To select Deloitte & Touche LLP as the Portfolio's independent auditors. 85,617,655 475,996 1,292,966 3. To approve certain changes to the Portfolio's fundamental investment restrictions. 41,105,226 3,702,803 2,944,057 4. To amend the Portfolio's articles of incorporation to implement the Merrill Lynch Select Pricing SM System. 76,405,363 4,802,472 6,178,782
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 and Class B Shares are presented in the "Total Return Based on a $10,000 Investment" graphs, "Average Annual Total Return" and "Performance Summary" tables on pages 6--10. "Aggregate Total Return" tables for Class C and Class D Shares are presented on pages 6-8. Data for all of the Fund's shares are presented in the "Recent Performance Results" table on pages 10 and 11. 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 June 30, 1995 and for Class C and Class D Shares for the since inception and 3-month periods ended June 30, 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 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. PERFORMANCE DATA (continued) Insured Portfolio's Class A and Class B Shares-- Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Class A and Class B Shares compared to the growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 6/85 6/95 Insured Portfolio++-- Class A Shares* $ 9,600 $22,463 Lehman Brothers Municipal Bond Index++++ $10,000 $24,052 10/21/88** 6/95 Insured Portfolio++-- Class B Shares $10,000 $15,925 Lehman Brothers Municipal Bond Index++++ $10,000 $16,951 [FN] *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commencement of Operations. ++The Insured Portfolio invests primarily in long-term, investment-grade bonds (bonds rated Baa or better) covered by portfolio insurance guaranteeing the timely payment of principal at maturity and interest. ++++This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature within 30 days. Past performance is not predictive of future performance. Insured Portfolio-- Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/95 +8.60% +4.25% Five Years Ended 6/30/95 +8.06 +7.19 Ten Years Ended 6/30/95 +8.77 +8.33 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/95 +7.91% +3.91% Five Years Ended 6/30/95 +7.26 +7.26 Inception (10/21/88) through 6/30/95 +7.20 +7.20 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payments of applicable contingent deferred sales charge. Insured Portfolio-- Aggregate Total Return % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 6/30/95 +8.83% +7.83% [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 6/30/95 +9.24% +4.87% [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. National Portfolio's Class A and Class B Shares-- Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Class A and Class B Shares compared to the growth of an investment in the Lehman Brothers Municipal Bond Index. Beginning and ending values are: 6/85 6/95 National Portfolio++-- Class A Shares* $ 9,600 $22,531 Lehman Brothers Municipal Bond Index++++ $10,000 $24,052 10/21/88** 6/95 National Portfolio++-- Class B Shares $10,000 $15,813 Lehman Brothers Municipal Bond Index++++ $10,000 $16,951 [FN] *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commencement of Operations. ++The National Portfolio invests primarily in long-term medium- to lower-grade municipal bonds (bonds rated Baa, bonds rated below Baa and bonds unrated of comparable quality) offering higher yields but subject to greater risks than investment-grade municipal bonds. ++++This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature within 30 days. Past performance is not predictive of future performance. National Portfolio-- Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/95 +7.89% +3.58% Five Years Ended 6/30/95 +8.02 +7.14 Ten Years Ended 6/30/95 +8.91 +8.46 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/95 +7.28% +3.29% Five Years Ended 6/30/95 +7.23 +7.23 Inception (10/21/88) through 6/30/95 +7.09 +7.09 [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-- Aggregate Total Return % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 6/30/95 +7.97% +6.97% [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 6/30/95 +8.37% +4.04% [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. Limited Maturity Portfolio's Class A and Class B Shares-- Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Class A and Class B Shares compared to the growth of an investment in the Lehman Brothers Municipal Bond Index and the Lehman Brothers 3-Yr. General Obligation Bond Index. Beginning and ending values are: 6/85 6/95 Limited Maturity Portfolio++-- Class A Shares* $ 9,600 $16,725 Lehman Brothers Municipal Bond Index++++ $10,000 $24,052 Lehman Brothers 3-Yr. General Obligation Bond Index++++++ $10,000 $16,350 11/02/92** 6/95 Limited Maturity Portfolio++-- Class B Shares $10,000 $10,967 Lehman Brothers Municipal Bond Index++++ $10,000 $12,006 Lehman Brothers 3-Yr. General Obligation Bond Index++++++ $10,000 $10,765 [FN] *Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees. **Commencement of Operations. ++The Limited Maturity Portfolio invests primarily in investment-grade bonds (rated Baa or better) with a maximum maturity not to exceed 4 years. ++++This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature within 30 days. ++++++This unmanaged Index consists of state and local government obligation bonds that mature in 3 years--4 years, rated Baa or better. Limited Maturity Portfolio--Average Annual Total Return % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 6/30/95 +4.53% +3.48% Five Years Ended 6/30/95 +5.08 +4.87 Ten Years Ended 6/30/95 +5.38 +5.28 [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 6/30/95 +4.14% +3.14% Inception (11/02/92) through 6/30/95 +3.53 +3.53 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 year. **Assuming payment of applicable contingent deferred sales charge. Limited Maturity Portfolio-- Aggregate Total Return % Return % Return Class C Shares* Without CDSC With CDSC** Inception (10/21/94) through 6/30/95 +3.52% +2.52% [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 6/30/95 +3.73% +2.69% [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. 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 + 9.04 + 9.35 +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 1/1/95-6/30/95 7.43/7.92 9.40/10.02 9.77/ 9.92 0.22 0.29 0.18 + 9.70 + 9.81 +3.54 ------ ------ ----- Total $10.77 $13.26 $9.04 Cumulative total return as of 6/30/95: +230.50%** +314.34%** +151.72%** *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 + 8.35 + 8.53 +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 1/1/95-6/30/95 7.43/7.92 9.39/10.02 9.77/ 9.92 0.19 0.25 0.17 + 9.30 + 9.53 +3.36 ----- ----- ----- Total $3.63 $4.86 $0.92 Cumulative total return as of 6/30/95: +59.25%** +58.13%** +9.67%** *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.
Recent Performance Results*
12 Month 3 Month Standardized 6/30/95 3/31/95 6/30/94++ % Change++ % Change 30-day Yield Insured Portfolio Class A Shares $ 7.92 $ 7.87 $ 7.88 +2.41%(1) +0.64% 5.07% Insured Portfolio Class B Shares 7.92 7.87 7.87 +2.54(1) +0.64 4.50 Insured Portfolio Class C Shares 7.92 7.87 7.68 +5.08(1) +0.64 4.54 Insured Portfolio Class D Shares 7.92 7.88 7.68 +5.08(1) +0.51 4.83 National Portfolio Class A Shares 10.02 9.91 10.08 +1.61(2) +1.11 5.39 National Portfolio Class B Shares 10.02 9.91 10.07 +1.71(2) +1.11 4.84 National Portfolio Class C Shares 10.03 9.91 9.85 +4.09(2) +1.21 4.79 National Portfolio Class D Shares 10.03 9.91 9.85 +4.09(2) +1.21 5.14 Limited Maturity Portfolio Class A Shares 9.92 9.85 9.87 +0.51 +0.71 3.66 Limited Maturity Portfolio Class B Shares 9.92 9.85 9.87 +0.51 +0.71 3.33 Limited Maturity Portfolio Class C Shares 9.92 9.84 9.83 +0.92 +0.81 3.49 Limited Maturity Portfolio Class D Shares 9.93 9.85 9.83 +1.02 +0.81 3.56 Insured Portfolio Class A Shares--Total Return +8.60(3) +2.05(4) Insured Portfolio Class B Shares--Total Return +7.91(5) +1.86(6) Insured Portfolio Class C Shares--Total Return +8.83(7) +1.85(8) Insured Portfolio Class D Shares--Total Return +9.24(9) +1.86(10) National Portfolio Class A Shares--Total Return +7.89(11) +2.60(12) National Portfolio Class B Shares--Total Return +7.28(13) +2.41(14) National Portfolio Class C Shares--Total Return +7.97(15) +2.50(16) National Portfolio Class D Shares--Total Return +8.37(17) +2.64(18) Limited Maturity Portfolio Class A Shares--Total Return +4.53(19) +1.68(20) Limited Maturity Portfolio Class B Shares--Total Return +4.14(21) +1.59(22) Limited Maturity Portfolio Class C Shares--Total Return +3.52(23) +1.72(24) Limited Maturity Portfolio Class D Shares--Total Return +3.73(25) +1.76(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 $0.457 per share ordinary income dividends and $0.141 per share capital gains distributions. (4)Percent change includes reinvestment of $0.112 per share ordinary income dividends. (5)Percent change includes reinvestment of $0.397 per share ordinary income dividends and $0.141 per share capital gains distributions. (6)Percent change includes reinvestment of $0.097 per share ordinary income dividends. (7)Percent change includes reinvestment of $0.263 per share ordinary income dividends and $0.141 per share capital gains distributions. (8)Percent change includes reinvestment of $0.096 per share ordinary income dividends. (9)Percent change includes reinvestment of $0.292 per share ordinary income dividends and $0.141 per share capital gains distributions. (10)Percent change includes reinvestment of $0.107 per share ordinary income dividends. (11)Percent change includes reinvestment of $0.603 per share ordinary income dividends and $0.209 per share capital gains distributions. (12)Percent change includes reinvestment of $0.148 per share ordinary income dividends. (13)Percent change includes reinvestment of $0.527 per share ordinary income dividends and $0.209 per share capital gains distributions. (14)Percent change includes reinvestment of $0.129 per share ordinary income dividends. (15)Percent change includes reinvestment of $0.350 per share ordinary income dividends and $0.209 per share capital gains distributions. (16)Percent change includes reinvestment of $0.128 per share ordinary income dividends. (17)Percent change includes reinvestment of $0.386 per share ordinary income dividends and $0.209 per share capital gains distributions. (18)Percent change includes reinvestment of $0.142 per share ordinary income dividends. (19)Percent change includes reinvestment of $0.387 per share ordinary income dividends. (20)Percent change includes reinvestment of $0.095 per share ordinary income dividends. (21)Percent change includes reinvestment of $0.350 per share ordinary income dividends. (22)Percent change includes reinvestment of $0.086 per share ordinary income dividends. (23)Percent change includes reinvestment of $0.241 per share ordinary income dividends. (24)Percent change includes reinvestment of $0.088 per share ordinary income dividends. (25)Percent change includes reinvestment of $0.251 per share ordinary income dividends. (26)Percent change includes reinvestment of $0.093 per share ordinary income dividends.
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 CP Commercial Paper 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 IDB Industrial Development Board IDR Industrial Development Revenue Bonds INFLOS Inverse Floating Rate Municipal Bonds PCR Pollution Control Revenue Bonds RAN Revenue Anticipation Notes RAW Revenue Anticipation Warrants RIB Residual Interest Bonds SAVRS Select Auction Variable Rate Security S/F Single-Family TAN Tax Anticipation Notes TRAN Tax Revenue Anticipation Notes 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--0.6% AAA Aaa $ 1,625 Alabama Water Pollution Control Authority, Revolving Fund Loan, Series A, 6.75% due 8/15/2017(b) $ 1,738 AAA Aaa 5,000 Auburn University, Alabama, Revenue Refunding Bonds (General Fee), 5.25% due 6/01/2013(e) 4,622 AAA Aaa 1,250 Mobile, Alabama, GO, Refunding and Capital Improvement Bonds, 10.875% due 11/01/2007(c) 1,745 AAA Aaa 6,000 Montgomery, Alabama, Baptist Medical Center, Special Care Facilities Financing Authority Revenue Bonds, Series A, 5.75% due 1/01/2022(h) 5,695 Alaska--0.7% Kenai Peninsula Borough, Alaska, GO(b): AAA Aaa 6,450 8.40% due 1/01/2000 7,391 AAA Aaa 8,460 8.40% due 1/01/2001 9,884 Arizona--2.4% AAA Aaa 6,750 Arizona State Municipal Financing Program, COP, Series 34, 7.25% due 8/01/2009(g) 7,883 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) 4,286 AAA Aaa 4,000 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Service Hospital), Series A, 7% due 12/01/2013(e) 4,377 AAA Aaa 2,555 Maricopa County, Arizona, School District No. 38 Revenue Bonds (Madison Elementary), UT, Series A, 5.50% due 7/01/2010(h) 2,496 AAA Aaa 7,000 Maricopa County, Arizona, Unified School District No. 97 Revenue Bonds (Deer Valley Project), UT, 1986 Series E, 10% due 7/01/2000(h) 8,626 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 11,074 AAA Aaa 7,340 Series A-1, 7.625% due 1/01/2019 8,128 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 1,756 AAA Aaa 5,000 5.63% due 7/01/2013 1,643 AAA Aaa 5,000 Pima County, Arizona, Unified School District No. 10, Revenue Refunding Bonds (Amphitheatre), 5.75% due 7/01/2004(h) 5,174 AAA Aaa 5,250 University of Arizona Medical Center Corporation, Hospital Revenue Refunding Bonds, 5% due 7/01/2021(e) 4,607 California--4.4% AAA Aaa 38,700 California State, RAW, Series C, 5.75% due 4/25/1996(h) 39,385 AAA Aaa 12,000 Fresno, California, Sewer Revenue Bonds, Series A-1, 6.25% due 9/01/2014(b) 12,533 AAA Aaa 5,000 Los Angeles, California, Wastewater System Revenue Refunding Bonds, Series A, 5.70% due 6/01/2013(e) 4,868 AAA Aaa 17,600 Northern California Power Agency, Multiple Capital Facilities Revenue Bonds, 6.538% due 8/01/2025(e) 18,341 AAA Aaa 12,000 Oakland, California, Redevelopment Agency, Revenue Refunding Bonds, 5.95% due 9/01/2019(e) 11,728 University of California Revenue Bonds (Multiple Purpose Projects): AAA Aaa 4,650 Refunding, Series C, 5% due 9/01/2012(b) 4,197 AAA Aaa 13,075 Refunding, Series C, 5.25% due 9/01/2016(b) 11,936 AAA Aaa 5,000 Series D, 6.375% due 9/01/2024(e) 5,102 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) 6,592 AAA Aaa 3,750 Delaware State Health Facilities Authority, Crossover Revenue Refunding Bonds (Delaware Medical Center), 7% due 10/01/2015(c)(e) 4,044 Florida--6.1% AAA Aaa 4,700 Duval County, Florida, School District Revenue Refunding Bonds, 6.125% due 8/01/2004(b) 5,032 Florida Municipal Power Agency, Revenue Bonds: AAA Aaa 7,750 (All Requirements Power Supply Project), 6.25% due 10/01/2002(a)(b) 8,571 AAA Aaa 4,500 Refunding (Saint Lucie Project), 5.25% due 10/01/2021(h) 4,073 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) 5,412 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) 819 AAA Aaa 26,500 Series A, 7.30% due 6/01/2019(e) 28,932 AAA Aaa 8,750 Jacksonville, Florida, Port Authority Revenue Bonds, AMT, 7.875% due 11/01/2018(g) 9,295 AAA Aaa 20,000 Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds, 6.60% due 4/01/2020(e) 20,832 AAA Aaa 16,700 Martin County, Florida, PCR, Refunding (Florida Power and Light Company Project), 7.30% due 7/01/2020(e) 18,370 AAA Aaa 11,570 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled Hospital Loan), Series B, 7.875% due 12/01/2025(g) 12,464 AAA Aaa 3,950 Orange County, Florida, HFA, Mortgage Revenue Refunding Bonds, Series A, 7.60% due 1/01/2024(h) 4,230 Palm Beach County, Florida, Criminal Justice Facilities, Revenue Refunding Bonds(h): AAA Aaa 11,985 5.375% due 6/01/2009 11,715 AAA Aaa 4,935 5.375% due 6/01/2010 4,809 AAA Aaa 3,500 Saint Lucie County, Florida, Sales Tax Revenue Refunding Bonds, 5% due 10/01/2023(h) 3,039 AAA Aaa 5,700 South Broward, Florida, Hospital District Revenue Bonds, 6.611% due 5/01/2021(b) 5,994 AAA Aaa 3,300 Tampa, Florida, Revenue Bonds (Allegany Health System-- Saint Joseph's), 5.125% due 12/01/2023(e) 2,884 AAA Aaa 2,000 Tampa, Florida, Water and Sewer System Revenue Bonds, Sub-Lien, Series A, 7.25% due 10/01/2016(b) 2,162 AAA Aaa 5,000 University Community Hospital Incorporated, Florida, Hospital Revenue Refunding Bonds, 7.375% due 9/01/2000(a)(i) 5,720 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) 3,131 Georgia--5.4% AAA Aaa 5,500 Chatham County, Georgia, School District, UT, 6.75% due 8/01/2019(e) 5,899 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) 4,863 Georgia Municipal Electric Authority, Power Revenue Bonds: AAA Aaa 12,100 Refunding, Series Z, 5.50% due 1/01/2012(h) 11,643 AAA Aaa 7,400 Refunding, Series Z, 5.50% due 1/01/2012(i) 7,121 AAA Aaa 11,545 Refunding, Series Z, 5.50% due 1/01/2020(h) 10,809 AAA Aaa 20,000 Series EE, 7% due 1/01/2025(b) 22,781 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Refunding Bonds(b): AAA Aaa 3,990 Series A, 5.125% due 7/01/2019 3,544 AAA Aaa 10,500 Series A, 5.125% due 7/01/2020 9,305 AAA Aaa 18,605 Series P, 6% due 7/01/2013 19,017 AAA Aaa 28,165 Series P, 6.25% due 7/01/2020 29,257 AAA Aaa 9,000 Municipal Electric Authority, Georgia, Special Obligation Bonds (Fifth Crossover Series, Project One), 6.40% due 1/01/2013(b)(c) 9,538
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) 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 $ 980 AAA Aaa 1,000 5.60% due 5/01/2013 976 Hawaii Department of Budget and Finance, Special Purpose Mortgage Revenue Bonds (Hawaiian Electric Company, Inc. Project), AMT(e): AAA Aaa 4,340 7.625% due 12/01/2018 4,766 AAA Aaa 5,000 Series C, 7.375% due 12/01/2020 5,499 AAA Aaa 4,500 Hawaii Harbor Capital Improvement Revenue Bonds, AMT, 7% due 7/01/2017(e) 4,838 Hawaii State Airport System Revenue Bonds: AAA Aaa 21,795 AMT, 7.30% due 7/01/2020(b) 23,773 AAA Aaa 23,200 AMT, Second Series, 7.50% due 7/01/2020(h) 25,517 AAA Aaa 10,000 Refunding, Series 1993, 6.45% due 7/01/2013(e) 10,426 Illinois--3.7% 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) 27,119 AAA Aaa 25,000 Chicago, Illinois, Public Building Commission Revenue Bonds, Series A, 7.125% due 1/01/2015(c)(e) 27,297 Illinois Health Facilities Authority Revenue Bonds: AAA Aaa 3,250 (Elmhurst Memorial Hospital), 6.625% due 1/01/2022(h) 3,379 AAA Aaa 4,000 (Methodist Health Project), 6.90% due 5/01/2021(b) 4,232 AAA Aaa 20,000 (Rush-Presbyterian Saint Luke's Medical Center), 6.80% due 10/01/2024(e) 21,079 AAA Aaa 6,600 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion Project), Series A, 6.50% due 6/15/2027(b) 6,839 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) 2,939 Indiana--1.7% AAA Aaa 2,470 Indiana Employment Development Commission, Environmental Revenue Bonds (Public Service Company of Indiana), AMT, 7.50% due 3/15/2015(e) 2,687 Indiana Municipal Power Agency, Power Supply System Revenue Refunding Bonds, Series B(e): AAA Aaa 12,600 5.75% due 1/01/2007 12,996 AAA Aaa 14,000 5.80% due 1/01/2008 14,376 AAA Aaa 4,040 Indianapolis, Indiana, Local Public Improvement Bond Bank, Series A, 7.90% due 2/01/2002(a)(g) 4,735 AAA Aaa 2,000 Jasper County, Indiana, PCR, Refunding (Collateral--Northern Indiana Public Service), 7.10% due 7/01/2017(e) 2,152 AAA Aaa 3,550 Rockport, Indiana, PCR, Refunding (Indiana-Michigan Power), Series B, 7.60% due 3/01/2016(h) 3,974 Iowa--0.2% AAA Aaa 5,000 Des Moines, Iowa, Parking Facilities Revenue Bonds, Series A, 7.25% due 7/01/2015(h) 5,455 Kansas--0.5% AAA Aaa 11,175 Kansas City, Kansas, Utility System Revenue Refunding and Improvement Bonds, 6.375% due 9/01/2023(h) 11,539 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) 4,183 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) 13,761 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)(c) 9,768 Maryland--1.4% Baltimore, Maryland, Revenue Refunding Bonds (Kidder Maryland Water Projects), Series A(e): AAA Aaa 5,000 5.60% due 7/01/2013 4,906 AAA Aaa 23,000 5.65% due 7/01/2020 22,312 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) 2,551 AAA Aaa 4,400 Series B, 7% due 7/01/2022(c) 5,017 Massachusetts-- AAA Aaa 13,000 Massachusetts Bay Transportation Authority Revenue Bonds, COP, 3.1% Series A, 7.65% due 8/01/2000(a)(i) 14,960 AAA Aaa 5,215 Massachusetts Educational Loan Authority Revenue Bonds, AMT, Issue D, Series D, 7.25% due 1/01/2009(e) 5,610 AAA Aaa 3,250 Massachusetts Port Authority Revenue Bonds, 13% due 7/01/2013(c) 5,585 AAA Aaa 10,055 Massachusetts State Consolidated Loan, Series B, 5.50% due 7/01/2012(b) 9,616 AAA Aaa 6,200 Massachusetts State Health and Educational Facilities Authority Revenue Bonds, 6.70% due 8/15/2021(i) 6,569 AAA Aaa 19,755 Massachusetts State, HFA, Housing Revenue Refunding Bonds (Insured Rental), AMT, Series A, 6.75% due 7/01/2028(b) 20,390 AAA Aaa 5,500 Massachusetts State Industrial Finance Agency Revenue Bonds (Brandeis University), Series C, 6.80% due 10/01/2019(e) 5,894 AAA Aaa 4,500 Massachusetts State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5.125% due 1/01/2023(h) 3,935 AAA Aaa 3,975 Massachusetts State Water Resource Authority, General Revenue Bonds, Series A, 5.70% due 8/01/2009(e) 3,967 Michigan--3.8% Chippewa Valley, Michigan, Schools Revenue Bonds, UT, Series Q(h): AAA Aaa 5,500 6.375% due 5/01/2001(a) 6,025 AAA Aaa 10,500 Refunding, 5% due 5/01/2021 9,117 AAA Aaa 10,000 Grand Rapids, Michigan, Water Supply Systems, Revenue Refunding Bonds, 5.75% due 1/01/2018(h) 9,574 AAA Aaa 4,225 Lake Orion, Michigan, Community School District, Refunding, UT, 5.50% due 5/01/2020(b) 3,918 Michigan State Trunk Line, Series A(h): AAA Aaa 14,365 5.75% due 11/15/2020 13,701 AAA Aaa 26,120 5.80% due 11/15/2024 25,156 Monroe County, Michigan, PCR (Detroit Edison Company Project), AMT: AAA Aaa 16,500 Project 1, 7.65% due 9/01/2020(h) 18,396 AAA Aaa 9,745 Series I-B, 7.50% due 9/01/2019(b) 10,741 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) 1,703 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) 12,421 Missouri--0.1% AAA Aaa 3,500 Sikeston, Missouri, Electric Revenue Refunding Bonds, 6.25% due 6/01/2012(e) 3,611 Montana--0.2% AAA Aaa 5,600 Montana Health Facilities Authority, Hospital Facilities Revenue Bonds (Deaconess Medical Center Project), SAVRS, Series A, 4.06% due 2/15/2016(b)(f) 5,600 Nebraska--0.5% AAA Aaa 12,755 Nebraska Public Power District Revenue Bonds, Series A, 5.50% due 1/01/2013(e) 12,283 Nevada--2.0% AAA Aaa 2,200 Nevada Housing Dividend, S/F Program, AMT, Issue C, 6.35% due 10/01/2012(b) 2,207 AAA Aaa 45,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power), AMT, 6.65% due 6/01/2017(e) 47,253 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) 3,741 AAA Aaa 9,635 Essex County, New Jersey, Refunding Bonds, Series A-1, 5.375% due 9/01/2010 9,197 AAA Aaa 4,750 Jersey City, New Jersey, Sewer Authority Revenue Refunding Bonds, 6.25% due 1/01/2014(b) 4,990 AAA Aaa 20,000 New Jersey EDA, Natural Gas Facilities, Revenue Refunding Bonds (NUI Corp.), Series A, 6.35% due 10/01/2022(b) 20,417 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds (Home Buyer), AMT(e): AAA Aaa 6,640 Series B, 7.90% due 10/01/2022 7,147 AAA Aaa 12,785 Series D, 7.70% due 10/01/2029 13,560 AAA Aaa 23,890 Series M, 7% due 1/01/2026 25,498 AAA Aaa 8,055 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series A, 6% due 1/01/2005(e) 8,459 AAA VMIG1++ 6,000 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, VRDN, Series D, 3.85% due 1/01/2018(f) 6,000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) New York--6.0% 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) $ 10,567 New York City, New York, GO, UT, Series I(b): AAA Aaa 4,505 7.25% due 8/15/2013 4,969 AAA Aaa 2,645 7.25% due 8/15/2013 2,885 AAA Aaa 10,130 7.25% due 8/15/2016 11,050 AAA Aaa 3,500 New York City, New York, IDA, Civic Facilities Revenue Bonds (USTA National Tennis Center Project), 6.25% due 11/15/2005(i) 3,771 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: AAA Aaa 50,000 5.20% due 6/15/2008(e) 48,397 AAA Aaa 12,075 Refunding, Series A, 5.75% due 6/15/2018(h) 11,570 AAA Aaa 1,090 Series A, 6.75% due 6/15/2014(h) 1,145 AAA Aaa 9,600 Series B, 5.375% due 6/15/2007(b) 9,504 AAA Aaa 4,510 Series C, 6.20% due 6/15/2021(b) 4,553 AAA Aaa 16,000 Series F, 5.50% due 6/15/2023(e) 14,860 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) 3,402 AAA Aaa 11,500 Series D, 5.90% due 8/15/2022(b) 11,196 Niagara Falls, New York, Public Improvement Bonds, UT(e): AAA Aaa 2,975 6.90% due 3/01/2023 3,214 AAA Aaa 3,190 6.90% due 3/01/2024 3,446 Suffolk County, New York, Water Authority, Waterworks Revenue Refunding Bonds(b): AAA Aaa 1,235 7.375% due 6/01/2012 1,353 AAA Aaa 7,345 Series C, 5.75% due 6/01/2013 7,224 North Carolina-- AAA VMIG1++ 200 Charlotte, North Carolina, Airport Revenue Refunding Bonds, VRDN, 0.0% Series A, 4.20% due 7/01/2016(e)(f) 200 Ohio--1.6% AAA Aaa 2,710 Clermont County, Ohio, Hospital Facilities Revenue Refunding Bonds (Mercy Health Systems), Series A, 7.50% due 9/01/2001(a)(b) 3,110 AAA Aaa 12,000 Cleveland, Ohio, Public Power System Revenue Bonds, First Mortgage, Series A, 7% due 11/15/2024(e) 13,744 AAA Aaa 6,700 Ohio Municipal Electric Generation Agency, Joint Ventures, COP, 5.375% due 2/15/2013(b) 6,289 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) 3,275 Ohio State Water Development Authority Revenue Bonds (Fresh Water Series)(b): AAA Aaa 2,890 5.80% due 12/01/2011 2,900 AAA Aaa 2,475 5.875% due 6/01/2012 2,491 AAA Aaa 9,000 5.90% due 12/01/2015 8,894 Oklahoma--1.2% AAA Aaa 7,500 Oklahoma Industrial Authority, Hospital Revenue Bonds (Baptist Medical Center), Series A, 7% due 8/15/2014(b) 8,047 AAA Aaa 21,560 Tulsa, Oklahoma, Industrial Authority, Hospital Revenue Bonds (Saint John's Medical Center, Inc.), 7.25% due 12/01/2009(e) 23,423 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) 4,331 Pennsylvania-- AAA Aaa 1,750 Allegheny County, Pennsylvania, Hospital Development Authority 7.1% Revenue Bonds (Mercy Hospital of Pittsburgh), 6.75% due 4/01/2021(b) 1,849 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) 6,959 AAA Aaa 3,365 Beaver County, Pennsylvania, IDA, PCR, Refunding (Ohio Edison Company/Mansfield), Series A, 7% due 6/01/2021(h) 3,659 AAA Aaa 2,110 Berks County, Pennsylvania, Municipal Authority, Hospital Revenue Bonds (Reading Hospital Medical Center Project), 5.70% due 10/01/2014(e) 2,047 AAA Aaa 4,425 Hazleton, Pennsylvania, Area School District, UT, Series B, 6.25% due 3/01/2017(h)(j)(k) 1,156 Pennsylvania Higher Educational Assistance Agency, Student Loan Revenue Bonds, AMT: AAA Aaa 16,000 7.437% due 3/01/2020(e) 17,047 AAA Aaa 3,200 6.031% due 3/01/2022(b) 3,154 AAA Aaa 34,000 6.172% due 3/01/2022(b) 33,515 AAA Aaa 30,000 6.854% due 9/03/2026(b) 31,182 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) 1,584 AAA Aaa 4,250 (Temple University), First Series, 6.50% due 4/01/2021(e) 4,425 AAA Aaa 10,390 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series L, 6.25% due 6/01/2011(b) 10,623 Philadelphia, Pennsylvania, Airport Revenue Bonds, AMT(e): AAA Aaa 8,150 7.75% due 6/15/2015 8,926 AAA Aaa 24,000 7.375% due 6/15/2018 25,944 AAA Aaa 5,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020(c)(e) 5,895 AAA Aaa 5,750 Philadelphia, Pennsylvania, Parking Authority, Airport Parking Revenue Bonds, 7.375% due 9/01/2018(b) 6,295 AAA Aaa 7,500 Philadelphia, Pennsylvania, School District Revenue Refunding Bonds, Series A, 5.375% due 7/01/2005(e) 7,503 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds(b): AAA Aaa 4,250 5.50% due 6/15/2006 4,292 AAA Aaa 3,000 5.50% due 6/15/2007 3,002 Rhode Island--3.3% Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A(i): AAA Aaa 6,100 6.625% due 8/01/2002(a) 6,841 AAA Aaa 35,000 Refunding, 5.75% due 8/01/2019 33,461 AAA Aaa 16,520 Refunding, 5.50% due 8/01/2020 15,254 AAA Aaa 25,600 Rhode Island Health and Educational Building Corporation Revenue Bonds (Rhode Island Hospital), 6.85% due 8/15/2021(h) 27,352 South Carolina-- AAA Aaa 7,000 Charleston, South Carolina, Waterworks and Sewer Revenue 4.6% Refunding and Improvement Bonds, 6% due 1/01/2016(b) 6,919 AAA Aaa 5,000 Florence County, South Carolina, Hospital Revenue Bonds (McLeod Regional Medical Center Project), 6.75% due 11/01/2020(h) 5,305 AAA Aaa 1,750 Greenville, South Carolina, Hospital System, Hospital Facilities Revenue Bonds, Series A, 7.50% due 5/01/2016(h) 1,834 AAA Aaa 2,410 Myrtle Beach, South Carolina, Water and Sewer System Revenue Refunding Bonds, 5.25% due 3/01/2020(e) 2,176 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) 3,972 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds: AAA Aaa 4,000 6.30% due 1/01/2022(e) 4,063 AAA Aaa 20,750 Series A, 7.40% due 1/01/2018(b) 22,347 AAA Aaa 29,100 South Carolina Jobs, EDA, Hospital Facilities Revenue Bonds, 5.55% due 8/01/2021(b) 26,951 South Carolina State Public Service Authority, Revenue Refunding Bonds: AAA Aaa 14,005 Series A, 5.50% due 7/01/2021(e) 12,899 AAA Aaa 17,090 Series A, 6.375% due 7/01/2021(b) 17,382 AAA Aaa 4,000 Series B, 6.10% due 7/01/2027(b) 3,956 AAA Aaa 2,750 Series C, 5% due 1/01/2014(b) 2,454 Tennessee--0.2% AAA Aaa 1,905 Jackson, Tennessee, Water and Sewer System Revenue Bonds, 10.375% due 7/01/2012(b) 2,315 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) 2,495
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Texas--16.2% Austin, Texas, Utility System Revenue Bonds(e): AAA Aaa $ 11,190 Prior Lien, 9.25% due 5/15/2004(a) $ 14,573 AAA Aaa 3,000 Refunding, 5.50% due 5/15/2007 3,002 AAA Aaa 3,500 Refunding, 5.50% due 5/15/2008 3,465 AAA Aaa 3,500 Refunding, 5.50% due 5/15/2009 3,427 AAA Aaa 2,000 Refunding, 5.50% due 5/15/2010 1,933 AAA Aaa 3,500 Refunding, 5.50% due 5/15/2011 3,367 AAA Aaa 4,000 Refunding, 5.50% due 5/15/2012 3,826 AAA Aaa 2,000 Refunding, 5.50% due 5/15/2013 1,904 AAA Aaa 14,825 Refunding, Series A, Prior Lien, 6.067% due 11/15/2011(j)(k) 5,437 Brazos River Authority, Texas, PCR (Collateral--Texas Utilities Electric Company Project), AMT: AAA Aaa 6,000 Refunding, 6.50% due 12/01/2027(b) 6,152 AAA Aaa 12,000 Series B, 6.625% due 6/01/2022(h) 12,419 Brazos River Authority, Texas, Revenue Refunding Bonds (Collateral--Houston Light and Power Co.): AAA Aaa 12,700 5.60% due 12/01/2017(e) 11,988 AAA Aaa 13,900 Series B, 7.20% due 12/01/2018(h) 15,299 AAA Aaa 20,000 Brownsville, Texas, Utility System Revenue Refunding Bonds, 6.25% due 9/01/2014(e) 20,913 A1+ VMIG1++ 1,100 Harris County, Texas, Health Facilities Development Corporation, Special Facilities Revenue Bonds (Texas Medical Center Project), VRDN, 4.20% due 2/15/2022(f)(e) 1,100 AAA Aaa 5,000 Harris County, Texas, Hospital District, Mortgage Revenue Refunding Bonds, 7.40% due 2/15/2010(b) 5,776 AAA Aaa 1,695 Harris County, Texas, Toll Road Revenue Bonds, Series A, 6.50% due 8/15/2011(h) 1,779 Harris County, Texas, Toll Road, Revenue Senior Lien Bonds: AAA Aaa 13,045 Refunding, 5.30% due 8/15/2013(b) 12,263 AAA Aaa 8,250 Refunding, 5% due 8/15/2016(h) 7,251 AAA Aaa 21,650 Refunding, 5.375% due 8/15/2020(h) 19,721 AAA Aaa 5,755 Refunding, 5.50% due 8/15/2021(h) 5,327 AAA Aaa 10,305 Refunding, Series A, 6.50% due 8/15/2002(a)(h) 11,485 AAA Aaa 15,250 Refunding, Series A, 6.50% due 8/15/2002(a)(b) 16,996 AAA Aaa 2,750 Series A, 6.50% due 8/15/2017(b) 2,857 AAA Aaa 11,100 Series A, 6.375% due 8/15/2024(e) 11,379 AAA Aaa 8,375 Houston, Texas, Water and Sewer System Revenue Bonds, Junior Lien, Series A, 6.375% due 12/01/2022(e) 8,562 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Junior Lien, Series C(b): AAA Aaa 12,700 5.70% due 12/01/2010(j)(k) 4,961 AAA Aaa 45,960 5.70% due 12/01/2011(j)(k) 16,811 AAA Aaa 53,850 5.78% due 12/01/2012(j)(k) 18,433 AAA Aaa 18,400 5.75% due 12/01/2015 17,736 AAA Aaa 3,500 Houston, Texas, Water Conveyance System Contract, COP, Series J, 6.25% due 12/15/2013(b) 3,677 Lower Colorado River Authority, Texas, Revenue Refunding Bonds: AAA Aaa 4,415 5.60% due 1/01/2009(c)(e)(j)(k) 2,027 AAA Aaa 22,480 Junior Lien, 5.40% due 1/01/2007(i) 22,121 AAA Aaa 650 Series B, 7% due 1/01/2001(a)(b) 731 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) 5,482 AAA Aaa 8,250 (Collateralized--Houston Light and Power), Series D, 7.60% due 10/01/2019(h) 9,062 Matagorda County, Texas, Navigational District No. 1, Revenue Refunding Bonds (Collateralized--Houston Light and Power): AAA Aaa 11,800 Series A, 6.70% due 3/01/2027(b) 12,556 AAA Aaa 26,305 Series C, 7.125% due 7/01/2019(h) 28,733 AAA Aaa 6,470 Series E, 7.20% due 12/01/2018(h) 7,129 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) 15,166 Texas Municipal Power Agency, Revenue Refunding Bonds: AAA Aaa 10,000 5.50% due 9/01/2010(e) 9,768 AAA Aaa 2,900 Series A, 6.75% due 9/01/2012(b) 3,157 Texas State Public Finance Authority, Building Revenue Capital Appreciation Refunding Bonds(e)(j)(k): AAA Aaa 7,000 5.80% due 2/01/2009 3,102 AAA Aaa 2,890 6.10% due 2/01/2011 1,112 AAA Aaa 8,500 5.81% due 2/01/2012 3,063 AAA Aaa 15,875 Trinity River Authority, Texas, Regional Wastewater System Revenue Refunding Bonds, Series A, 5% due 8/01/2016(b) 14,023 Utah--1.6% AAA Aaa 28,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals, Incorporated), 6.75% due 5/15/2020(b)(c) 29,603 AA- Aaa 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) 1,295 AAA Aaa 2,650 Utah Board of Regents, Student Loan Revenue Bonds, AMT, Series F, 7.45% due 11/01/2008(b) 2,870 Utah Municipal Power Agency, Electric System Revenue Refunding Bonds, Series A(h): AAA Aaa 3,120 5.50% due 7/01/2012 2,984 AAA Aaa 3,295 5.50% due 7/01/2013 3,136 Vermont--0.8% AAA Aaa 18,950 Vermont, HFA, Revenue Bonds (Home Mortgage Purchase), AMT, Series B, 7.60% due 12/01/2024(e) 20,212 Virginia--2.4% AAA Aaa 5,000 Danville, Virginia, IDA, Hospital Revenue Refunding Bonds (Danville Regional Medical Center), 6.50% due 10/01/2019(h) 5,247 AAA Aaa 16,800 Prince William County, Virginia, Service Authority, Water and Sewer System Revenue Refunding Bonds, 5% due 7/01/2021(h) 14,562 AAA Aaa 5,000 Upper Occoquan Sewer Authority, Virginia, Regional Sewer Revenue Refunding Bonds, 5% due 7/01/2021(h) 4,334 Virginia State, HDA, Commonwealth Mortgage, AMT, Series A, Sub Series A-4(e): AAA Aaa 5,000 6.30% due 7/01/2014 5,039 AAA Aaa 11,215 6.35% due 7/01/2018 11,244 AAA Aaa 21,000 6.45% due 7/01/2028 21,161 Washington--3.0% AAA Aaa 33,535 Seattle, Washington, Municipal Light and Power Revenue Bonds, 6.625% due 7/01/2020(h) 35,552 Seattle, Washington, Municipality, Metropolitan Seattle, Sewer Revenue Bonds: AAA Aaa 3,000 Refunding, Series X, 5.30% due 1/01/2008(h) 2,917 AAA Aaa 6,560 Refunding, Series Y, 5.70% due 1/01/2015(h) 6,245 AAA Aaa 3,315 Refunding, Series Y, 5.70% due 1/01/2016(h) 3,152 AAA Aaa 3,865 Refunding, Series Z, 5.45% due 1/01/2022(b) 3,504 AAA Aaa 2,465 Series W, 6.25% due 1/01/2022(e) 2,481 AAA Aaa 4,485 Series W, 6.25% due 1/01/2023(e) 4,514 AAA Aaa 10,000 Seattle, Washington, Solid Waste Utility, Revenue Refunding Bonds, Series A, 6.875% due 5/01/2009(g) 10,732 AAA Aaa 3,250 University of Washington Revenue Bonds (Housing and Dining), 7% due 12/01/2021(e) 3,582 AAA Aaa 7,000 Washington Health Care Facilities Authority Revenue Bonds (Southwest Washington Hospital--Vancouver), 7.125% due 10/01/2019(g) 7,556 D NR* 719 Washington Public Power Supply System, Generating Facilities Revenue Bonds (Nuclear Project, Numbers 4 & 5), Series D, 12.50% due 7/01/2010(b) 719 West Virginia--2.8% AAA Aaa 9,270 Kanawha County, West Virginia, Building Commission Revenue Refunding Bonds (Charleston Area Medical Center Inc.), Series A, 7.10% due 6/01/2013(e) 9,827 Pleasants County, West Virginia, PCR, Series 95-C(b): AAA Aaa 24,500 (Monogahela Power Co.), 6.15% due 5/01/2015 24,744 AAA Aaa 12,250 (Potomac Pleasants), 6.15% due 5/01/2015 12,372 AAA Aaa 5,250 (West Penn Power Co.), 6.15% due 5/01/2015 5,302 AAA Aaa 7,600 Putnam County, West Virginia, PCR, Refunding (Appalachian Power Company Project), Series D, 5.45% due 6/01/2019(b) 6,920 AAA Aaa 5,600 West Virginia School Building Authority Revenue Bonds (Capital Improvement), Series B, 6.75% due 7/01/2010(e) 5,953 AAA Aaa 4,000 West Virginia State Parkways, Economic Development and Tourism Authority, 5.80% due 5/15/2013(h) 3,896
SCHEDULE OF INVESTMENTS (concludued) (in Thousands)
Municipal Bonds Insured Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Wisconsin--2.2% AAA Aaa $ 7,000 Superior, Wisconsin, Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021(h) $ 7,815 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) 1,610 AAA Aaa 5,750 (Waukesha Memorial Hospital), Series B, 7.25% due 8/15/2019(b) 6,273 Wisconsin Public Power System Incorporated, Power Supply System Revenue Bonds, Series A(b): AAA Aaa 6,500 6.875% due 7/01/2001(a) 7,327 A1+ Aaa 8,360 Refunding, 5.25% due 7/01/2021 7,449 Wisconsin State (Veterans Housing Loans), AMT, Series B(e): AAA Aaa 7,920 6.50% due 5/01/2020 8,210 AAA Aaa 17,130 6.50% due 5/01/2025 17,809 Total Investments (Cost--$2,390,477)--98.9% 2,494,466 Other Assets Less Liabilities--1.1% 28,118 ---------- Net Assets--100.0% $2,522,584 ========== (a)Prerefunded. (b)AMBAC Insured. (c)Escrowed to maturity. (d)The interest rate is subject to change periodically and inversely based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1995. (e)MBIA Insured. (f)The interest rate is subject to change periodically based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1995. (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. ++Highest short-term rating issued by Moody's Investors Service, Inc. Ratings of issues shown have not been audited by Deloitte & Touche LLP. 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) Alabama--0.6% AAA Aaa $ 9,000 Alabama Agricultural and Mechanical University, 6.50% due 11/01/2025(f) $ 9,347 Alaska--2.4% Valdez, Alaska, Marine Terminal Revenue Refunding Bonds: AA- A1 6,000 (British Petroleum Pipeline), Series B, 7% due 12/01/2025 6,417 AA- A1 27,150 (Sohio Pipeline), 7.125% due 12/01/2025 29,344 Arizona--0.3% AA A1 4,640 Arizona State University, Revenue Refunding Bonds, Series A, 5.50% due 7/01/2019 4,375 California--5.9% NR* NR* 6,000 Antioch, California, Improvement Bond Act 1915 (Assessment District No. 27--Lone Tree), Series E, 7.125% due 9/02/2016 6,075 SP-1 MIG1++ 18,000 California State, GO, RAW, Series C, 5.75% due 4/25/1996 18,316 California State, Public Works Board, Lease Revenue Bonds: A- A 10,350 (Department of Corrections--Monterey County), Series A, 7% due 11/01/2019 10,964 AAA Aaa 2,800 (Various University of California Projects), Series A, 6.40% due 12/01/2016(c) 2,859 A- A1 1,000 (Various University of California Projects), Series B, 6.625% due 12/01/2019 1,021 NR* NR* 4,000 Long Beach, California, Special Tax Community Facilities, District No. 3--Pine Avenue, 6.375% due 9/01/2023 3,698 AA Aa 5,500 Los Angeles County, California, Department of Water and Power Waterworks Revenue Bonds, Second Issue, 6.40% due 11/01/2031 5,567 AA- Aaa 10,705 Los Angeles County, California, Transportation Commission, Sales Tax Revenue Bonds, Series A, 6.90% due 7/01/2001(k) 12,129 A NR* 11,725 Palmdale, California, Civic Authority, Revenue Refunding Bonds (Merged Redevelopment Project), Series A, 6.60% due 9/01/2034 12,008 A+ Aaa 5,385 Sacramento, California, City Financing Authority Revenue Bonds, 6.80% due 11/01/2001(k) 6,101 AAA Aaa 10,000 University of California Revenue Bonds, Multiple Purpose Projects, Series D, 6.25% due 9/01/2013(f) 10,230 Colorado--3.5% Denver, Colorado, City and County Airport Revenue Bonds, AMT: BB Baa 5,000 Series A, 8% due 11/15/2017 5,258 BB Baa 3,000 Series A, 7.50% due 11/15/2023 3,171 BB Baa 8,570 Series A, 8% due 11/15/2025 9,197 BB Baa 13,000 Series B, 7.25% due 11/15/2023 13,427 BB Baa 5,650 Series C, 6.75% due 11/15/2022 5,552 BB Baa 13,150 Series D, 7.75% due 11/15/2021 14,081 A1 NR* 2,800 Pitkin County, Colorado, IDR, Refunding (Aspen Skiing Co. Project), VRDN, Series A, 4.65% due 4/01/2016(a) 2,800 Connecticut--0.3% AA- Baa1 4,550 Connecticut State Resource Recovery Authority Revenue Bonds (American Refuse Fuel), AMT, Series A, 8% due 11/15/2015 5,015 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) 8,876 District of A+ A1 3,750 District of Columbia Revenue Bonds, RIB (Georgetown University), Columbia--0.3% 8.632% due 4/01/2022(m) 3,956 Florida--2.7% AAA Aaa 6,330 Florida, HFA (Antigua Club Apartments), AMT, Series A-1, 7% due 2/01/2035(c) 6,579 NR* Aaa 9,400 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G-1, 7.90% due 3/01/2022(l) 10,104 AA Aa3 5,000 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project), Series 1991, 7.875% due 8/01/2021 5,803 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) 3,150 A1+ VMIG1++ 1,000 Martin County, Florida, PCR, Refunding (Florida Power and Light Company Project), VRDN, 4.20% due 9/01/2024(a) 1,000 AAA NR* 4,765 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021(l) 5,145 A1 VMIG1++ 1,500 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company Project), VRDN, 4.20% due 1/01/2026(a) 1,500 AAA Aaa 5,850 South Broward, Florida, Hospital District Revenue Bonds, RIB, Series C, 8.629% due 5/13/2021(c)(m) 6,450 AAA Aaa 2,000 Tampa, Florida, Revenue Bonds (Alleghany Health System-Saint Joseph's), 5.125% due 12/01/2023 1,748 Georgia--3.9% AA- Aa 25,705 Atlanta, Georgia, Water and Sewer Revenue Refunding Bonds, 4.75% due 1/01/2023 21,194 A+ A 8,375 Georgia Municipal Electric Authority Power, Revenue Refunding Bonds, Series Z, 5.50% due 1/01/2020 7,651 Metropolitan Atlanta, Georgia Rapid Transit Authority, Sales Tax Revenue Bonds: AAA Aaa 20,000 Second Indenture, Series A, 6.90% due 7/01/2020(f) 21,854 AA- A1 7,500 Series O, 6.55% due 7/01/2020 7,807 Idaho--0.2% AA NR* 2,380 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT, Series E, 7.875% due 7/01/2024(b) 2,526 Illinois--5.0% 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 8,995 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Bonds (United Airlines, Inc.): BB Baa2 4,825 AMT, Series B, 8.95% due 5/01/2018 5,404 BB Baa2 14,075 Series 1984-B, 8.85% due 5/01/2018 15,838 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) 5,440 BBB NR* 3,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia College), 6.875% due 12/01/2017 3,019
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Illinois Illinois Health Facilities Authority Revenue Bonds: (concluded) AAA Aaa $ 1,500 (Methodist Health Project), RIB, 9.724% due 5/01/2021(c)(m) $ 1,673 BBB- NR* 2,625 Refunding (Saint Elizabeth's Hospital--Chicago), 7.75% due 7/01/2016 2,703 AAA Aaa 11,000 (Rush Presbyterian-Saint Luke's Medical Center), INFLOS, 9.057% due 10/01/2014(f)(m) 12,183 A+ Aa 5,250 Illinois Housing Development Authority, Residential Mortgage Revenue Bonds, RIB, AMT, 9.188% due 2/01/2018(m) 5,624 AAA Aaa 2,000 Illinois State, Dedicated Tax Revenue Civic Center, Series A, 7.35% due 12/15/2005(c) 2,246 AAA Aaa 5,950 Regional Transportation Authority Illinois, UT, Series D, 6.75% due 6/01/2025(e) 6,338 NR* A1 4,000 Southwestern Illinois, Development Authority, Sewer Facilities Revenue Bonds (Monsanto Company Project), AMT, 7.30% due 7/15/2015 4,233 Indiana--2.1% Indiana Health Facilities Financing Authority, Hospital Revenue Bonds: AAA Aaa 1,000 (Community Hospital Project), 6.85% due 7/01/2022(f) 1,053 NR* Baa1 3,500 (Riverview Hospital Project), 6.875% due 8/01/2017 3,403 NR* Aaa 9,500 Indiana State Educational Facilities Authority Revenue Bonds (University of Notre Dame Project), 6.70% due 3/01/2025 10,149 A+ NR* 9,100 Indianapolis, Indiana, Local Public Improvement Refunding Bond Bank, Series D, 6.75% due 2/01/2020 9,477 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 1,559 AA- Aa2 5,700 Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co. Project), 6.625% due 12/01/2024 5,905 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 9,572 Kansas--0.8% AAA Aaa 12,000 Wichita, Kansas, Hospital Revenue Bonds, RIB, Series III-A, 8.475% due 10/01/2017(f)(m) 12,735 Kentucky--1.1% AAA Aaa 4,500 Louisville and Jefferson County, Kentucky, Metropolitan Sewer District, Sewer and Drain System, Revenue Refunding Bonds, Series A, 6.50% due 5/15/2024(c) 4,759 NR* NR* 4,500 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds (TJ International Project), AMT, 7% due 6/01/2024 4,503 AA Aa2 6,345 Trimble County, Kentucky, PCR (Louisville Gas and Electric Company), AMT, Series A, 7.625% due 11/01/2020 7,006 Louisiana--3.1% NR* Baa3 37,850 Lake Charles, Louisiana, Harbor and Terminal District Port Facilities, Revenue Refunding Bonds (Trunkline LNG Company Project), 7.75% due 8/15/2022 41,665 BB- NR* 3,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company Project), 7.50% due 7/01/2013 3,055 BBB Baa2 1,100 Saint Charles Parish, Louisiana, PCR (Union Carbide Project), AMT, 7.35% due 11/01/2022 1,142 Maine--0.3% AA- A1 3,815 Maine State, Housing Authority, Mortgage Purchase, AMT, Series B-4, 6.90% due 11/15/2026 3,932 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 7,646 Massachusetts--6.1% AAA Aaa 6,000 Massachusetts Bay Transportation Authority Revenue Bonds, Series B, 7.875% due 3/01/2001(k) 7,027 A+ A1 10,000 Massachusetts State, Consolidated Loans, UT, Series B, 9.25% due 7/01/2000 11,998 Massachusetts State, Health and Educational Facilities Authority Revenue Bonds: SP-1+ VMIG1++ 8,000 (Capital Asset Program), VRDN, Series D, 4.15% due 1/01/2035(a) 8,000 NR* NR* 9,520 (North Adams Regional Hospital), Series A, 9.625% due 12/01/2018 9,966 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 9,846 Massachusetts State, HFA, Residential Development(n): AAA Aaa 5,000 Series C, 6.875% due 11/15/2011 5,273 AAA Aaa 7,500 Series C, 6.90% due 11/15/2021 7,843 AAA Aaa 2,000 Series D, 6.80% due 11/15/2012 2,086 A A 31,015 Massachusetts State, Water Resource Authority, Refunding, Series B, 5.50% due 11/01/2015 28,758 Michigan--4.8% A1+ VMIG1++ 2,600 Grand Rapids, Michigan, Water Supply Systems Revenue Refunding Bonds, VRDN, 4.10% due 1/01/2020(a)(e) 2,600 A+ A 1,000 Marquette, Michigan, City Hospital Finance Authority, Revenue Refunding Bonds (Marquette General Hospital), Series C, 7.50% due 4/01/2019 1,082 AA A1 1,250 Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government-Qualified School), Series A, 6.50% due 5/01/2016 1,303 AA- A 14,000 Michigan State Building Authority Revenue Bonds, Series II, 6.25% due 10/01/2020 13,875 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Detroit Medical Center), Series A: A A 3,500 7.50% due 8/15/2011 3,791 A A 6,500 Refunding, Obligation Group, 6.50% due 8/15/2018 6,509 AA- A1 30,000 Michigan State Trunk Line, GO, Series A, 5.50% due 10/01/2021 27,400 BBB Baa1 9,350 Monroe County, Michigan, PCR (Detroit Edison Company Project), AMT, Series A, 7.75% due 12/01/2019 10,064 AA Aa 5,000 Royal Oaks, Michigan, Hospital Financing Authority Revenue Bonds (William Beaumont Hospital), Series D, 6.75% due 1/01/2020 5,169 Minnesota--1.4% Minnesota State, HFA, S/F Mortgage Bonds: AA+ Aa 6,090 AMT, Series A, 7.45% due 7/01/2022(b) 6,489 AA+ Aa 5,250 Series F, 6.30% due 7/01/2025 5,306 AAA NR* 8,870 Saint Paul, Minnesota, Housing and Redevelopment Authority, S/F Mortgage Revenue Refunding Bonds, Series C, 6.95% due 12/01/2031(n) 9,142 Mississippi--0.7% BBB Baa 5,950 Lowndes County, Mississippi, Hospital Revenue Refunding Bonds (Golden Triangle Medical Center), 8.50% due 2/01/2010 6,430 NR* Aaa 4,195 Mississippi Home Corporation, S/F Mortgage Revenue Bonds (Access Program), AMT, Series A, 6.90% due 6/01/2024(l) 4,418 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 12,377 Nebraska--0.9% Nebraska Investment Finance Authority, S/F Mortgage Revenue Bonds, Series 2(1): AAA Aaa 100 AMT, 7.631% due 9/10/2030 107 AAA Aaa 4,400 RIB, 11.126% due 9/10/2030(m) 5,022 A+ A1 10,000 Nebraska Public Power District Revenue Bonds, Series C, 5% due 1/01/2017 8,746 Nevada--0.6% AAA Aaa 3,500 Clark County, Nevada, Passenger Facility Charge Revenue Bonds (Las Vegas/Macarran International Airport), AMT, Series A, 5.75% due 7/01/2023(f) 3,224 AA Aa 2,500 Nevada State, GO (Colorado River Community), 6.20% due 7/01/2007 2,640 AAA Aaa 3,500 Washoe County, Nevada, Gas and Water Facilities, Revenue Refunding Bonds (Sierra Pacific), 6.30% due 12/01/2014(c) 3,558 New Hampshire-- AAA Aa 3,185 New Hampshire State, HFA, S/F Residential Mortgage Bonds, AMT, 1.1% 7.90% due 7/01/2022(c) 3,351 New Hampshire State, IDA, PCR (Public Service Co. of New Hampshire Project), AMT: BB+ Baa3 4,850 Series A, 7.65% due 5/01/2021 5,109 BB+ Baa3 8,500 Series C, 7.65% due 5/01/2021 8,953 New Jersey--2.7% New Jersey Building Authority, State Building Revenue Refunding Bonds: AA- Aa 14,600 5% due 6/15/2015 12,976 AA- Aa 10,000 5% due 6/15/2018 8,819 NR* NR* 6,700 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Riverwood Center Issue), Series A, 9.90% due 7/01/2021 7,452 AA A 9,500 University Medicine and Dentistry of New Jersey Revenue Bonds, Series C, 7.20% due 12/01/2019 10,377
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) New York--13.6% Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds (Commuter Facilities), Series 5: BBB Baa1 $ 2,145 6.90% due 7/01/2006 $ 2,244 BBB Baa1 5,000 7% due 7/01/2012 5,246 Metropolitan Transportation Authority, New York, Transportation Facilities Revenue Bonds: AAA Aaa 23,150 Series 6, 7.125% due 7/01/2001(k) 26,498 AAA Aaa 5,000 Series J, 6.50% due 7/01/2018(e) 5,172 New York City, New York, GO, UT: A- Baa1 3,600 Series A, 7.75% due 8/15/2016 3,921 A- Baa1 4,065 Series A, 7.75% due 8/15/2017 4,428 A- Baa1 5,375 Series B, 8.25% due 6/01/2006 6,275 A- Baa1 2,700 Series B, 8.25% due 6/01/2007 3,169 A- Baa1 10,000 Series B, 7.75% due 2/01/2011 10,905 A- Baa1 4,500 Series B, 7.75% due 2/01/2012 4,907 A- Baa1 2,875 Series B, 7.75% due 2/01/2013 3,143 A- Baa1 1,650 Series B, 7.75% due 2/01/2014 1,804 A- Baa1 3,495 Series D, 8% due 8/01/2001(k) 4,128 A- Baa1 2,000 Series D, 7.70% due 2/01/2011 2,176 A- Aaa 5,495 Series F, 8.25% due 11/15/2001(k) 6,643 A- A 3,440 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 6.75% due 6/15/2017 3,599 A- A 2,000 New York State, GO (Environmental Quality), 6.50% due 12/01/2014 2,103 New York State Dormitory Authority Revenue Bonds (State University Educational Facilities): BBB+ Baa1 4,660 Refunding, Series B, 7.50% due 5/15/2011 5,281 BBB+ Baa1 6,735 Refunding, Series B, 7.375% due 5/15/2014 7,189 BBB+ Baa1 2,000 Refunding, Series B, 7% due 5/15/2016 2,081 BBB+ Baa1 5,000 Series A, 7.50% due 5/15/2013 5,672 A Aa 21,500 New York State Environmental Facilities Corporation, PCR (State Water Revolving Fund), Series E, 6.50% due 6/15/2014 22,630 New York State Local Government Assistance Corporation: A A 6,000 Series A, 7% due 4/01/2002(k) 6,545 A A 10,000 Series C, 6.25% due 4/01/2018 10,059 New York State Medical Care Facilities, Finance Agency Revenue Bonds: AAA Aaa 4,630 (Mental Health Services), Series C, 7.30% due 8/15/2001(k) 5,352 AAA Aaa 1,665 (Mental Health Services), Series E, 6.50% due 8/15/2024(j) 1,719 AAA Aaa 8,400 (New York Hospital Management), Series A, 6.75% due 8/15/2014(c) 8,943 AAA Aaa 9,100 (New York Hospital Mortgage), Series A, 6.80% due 8/15/2024(b)(c) 9,765 New York State Power Authority, General Purpose Revenue Refunding Bonds, Series Z: AA- Aa 5,000 6.625% due 1/01/2012 5,308 AA- Aa 5,000 6.50% due 1/01/2019 5,236 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) 15,737 A+ Aa 1,000 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Series X, 6.50% due 1/01/2019 1,044 Ohio--2.2% AAA Aaa 12,000 Cleveland, Ohio, Public Power System Revenue Bonds, First Mortgage, Series A, 7% due 11/15/2024(f) 13,744 Ohio HFA, S/F Mortgage Revenue Bonds, AMT (1): AAA Aaa 10,750 RIB, Series B-4, 9.294% due 3/31/2031(m) 11,489 AAA NR* 2,605 Series B, 8.25% due 12/15/2019 2,791 AAA NR* 4,730 Series C, 7.85% due 9/01/2021 5,016 Oregon--0.1% A1 VMIG1++ 600 Medford, Oregon, Hospital Facilities Authority Revenue Bonds (Gross-Rogue Valley Health Services), VRDN, 4.30% due 10/01/2016(a) 600 A1+ VMIG1++ 1,600 Port Saint Helens, Oregon, PCR (Portland General Electric Company), VRDN, Series A, 4.25% due 4/01/2010(a) 1,600 Pennsylvania--4.6% BB Ba2 6,800 Beaver County, Pennsylvania, IDA, PCR, Refunding (Cleveland Electric Project), 7.625% due 5/01/2025 6,870 Emmaus, Pennsylvania, General Authority, Revenue Bonds, VRDN (a): A1 NR* 2,700 (Local Government), Series H, 4.15% due 3/01/2024 2,700 NR* NR* 3,600 Sub-Series D-10, 4.15% due 3/01/2024 3,600 BBB- Baa 10,000 Pennsylvania Convention Center Authority, Revenue Refunding Bonds, Series A, 6.75% due 9/01/2019 10,140 Pennsylvania, HFA, Revenue Refunding Bonds: AAA Aaa 8,850 6.50% due 7/01/2023(n) 9,025 AA Aa 8,800 RIB, AMT, Series 1991-31C, 9.377% due 10/01/2023(m) 9,548 AAA Aaa 6,570 Pennsylvania Intergovernmental Co-op Authority, Split Tax Revenue (Philadelphia Funding Project), 5.60% due 6/15/2015 6,252 2,000 Pennsylvania State, GO, UT, Third Series, 6.40% due 11/15/2006(e) 2,168 AAA Aaa 10,000 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Bonds, RIB, AMT, 9.413% due 9/03/2026(c)(m) 10,788 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) 5,391 AAA Aaa 2,500 York County, Pennsylvania, Hospital Authority Revenue Bonds (York Hospital), 7% due 1/01/2001(c)(k) 2,813 Rhode Island--2.8% Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A: AAA Aaa 5,250 6.95% due 8/01/2002(k) 5,989 AAA Aaa 30,000 Refunding, 6.25% due 8/01/2016(f) 30,852 AAA Aaa 5,000 Rhode Island State, GO, Refunding, Series A, 6.25% due 6/15/2007(e) 5,266 South Carolina--0.6% BBB Baa1 8,355 South Carolina Jobs, EDA, Economic Development Revenue Bonds (Saint Francis Hospital--Franciscan Sisters), 7% due 7/01/2015 8,346 South Dakota--0.6% AA+ Aa1 9,085 South Dakota, HDA, Homeownership Mortgage, Series A, 7.15% due 5/01/2027 9,487 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 10,781 Texas--10.3% Brazos River Authority, Texas, PCR (Texas Utilities Electric Company Project), AMT, Series A: BBB Baa2 2,095 8.25% due 1/01/2019 2,301 BBB Baa2 18,150 7.875% due 3/01/2021 20,032 A A2 12,350 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston Light and Power), Series 1989-A, 7.625% due 5/01/2019 13,429 AAA Aaa 1,780 Brazos River Authority, Texas, Special Facilities Revenue Refunding Bonds, 5.50% due 8/15/2021(e) 1,639 AA- Aa3 9,105 Guadalupe Blanco River Authority, Texas, Industrial Development Corporation, PCR (E.I. du Pont), 6.35% due 7/01/2022 9,266 BBB Baa1 7,250 Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds (Champion International Corporation), AMT, 7.45% due 5/01/2026 7,673 AA Aa 2,400 Harris County, Texas, Certificates of Obligation, Tax and Revenue Bonds, 10% due 10/01/2001 3,073 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds: AA Aa 12,470 (Saint Luke's Episcopal Hospital Project), Series A, 6.75% due 2/15/2021 12,919 AA Aa 18,000 (Sisters of Charity), 7.10% due 7/01/2021 19,238 AAA Aaa 11,100 Harris County, Texas, Senior Lien Toll Road, Series A, 6.375% due 8/15/2024(f) 11,379 BBB- Ba1 8,175 Jefferson County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Baptist Healthcare System Project), 8.875% due 6/01/2021 8,878 AA Aa 12,000 North Central Texas, Health Facilities Development Corporation Revenue Bonds (Baylor University Medical Center), INFLOS, Series A, 9.563% due 5/15/2016(m) 13,080 BB Ba 6,500 Odessa, Texas, Junior College District, Revenue Refunding Bonds, Series A, 8.125% due 12/01/2018 6,539 A+ Aa 8,475 Texas Housing Agency, Residential Development Mortgage Revenue Bonds, Series A, 7.50% due 7/01/2015(l) 8,957 AA Aa 14,000 Texas State Veterans Housing Assistance, AMT, UT, Fund II, Series A, 7% due 12/01/2025 14,569 Utah--1.0% AA NR* 13,250 Weber County, Utah, Municipal Building Authority, Lease Revenue Bonds, 7.50% due 12/15/2019 14,789
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds National Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Virginia--1.2% A1 Aaa $ 4,200 Lynchburg, Virginia, IDA, Hospital Facilities, First Mortgage Revenue Bonds (Mid Atlantic/Capital), VRDN, Series G, 4.20% due 12/01/2025(a)(c) $ 4,200 AA A1 8,800 Richmond, Virginia, Public Improvement, Refunding, UT, Series B, 6.25% due 1/15/2018 8,863 AA+ Aa1 4,000 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series A, 7.15% due 1/01/2033 4,189 Washington--2.5% AAA Aaa 1,825 Washington State Health Care Facilities Authority, Revenue Refunding Bonds, 6.625% due 7/01/2020(f) 1,897 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) 15,019 Washington State Public Power Supply System, Revenue Refunding Bonds: AA Aa 2,450 (Nuclear Project No. 1), Series A, 7% due 7/01/2011 2,603 AA Aa 10,250 (Nuclear Project No. 1), Series A, 6.50% due 7/01/2015 10,375 AA Aa 5,000 (Nuclear Project No. 1), Series A, 6.875% due 7/01/2017 5,230 AA Aa 3,000 (Nuclear Project No. 2), Series B, 7% due 7/01/2012 3,173 West Virginia--1.4% AAA Aaa 11,465 Mason County, West Virginia, PCR, Refunding (Appalachian Power Co.), Series I, 6.85% due 6/01/2022(f) 12,317 AA+ Aa1 8,400 West Virginia State, Housing Development Fund, Housing Finance, Series D, 7.05% due 11/01/2024 8,786 Wisconsin--2.3% Wisconsin Housing and EDA, Housing Revenue Bonds: A A1 5,400 Series B, 7.05% due 11/01/2022 5,613 A A1 5,105 Series C, 7% due 5/01/2015 5,325 AA Aa 4,925 Wisconsin Housing, EDA, Home Ownership Revenue Bonds, Series A, 7.10% due 3/01/2023 5,159 Wisconsin State Health and Educational Facilities Authority Revenue Bonds: AAA Aaa 5,500 (Novus Health Group), Series B, 6.75% due 12/15/2020(f) 5,800 AAA Aaa 11,400 (Wausau Hospitals Inc.), Series B, 6.70% due 8/15/2020(c) 11,938 Puerto Rico--0.6% A Baa1 2,360 Puerto Rico Commonwealth, Highway Authority, Highway Revenue Refunding Bonds, Series R, 6.75% due 7/01/2005 2,524 A Baa1 5,750 Puerto Rico Commonwealth, UT, 6.45% due 7/01/2017 5,873 Total Investments (Cost--$1,409,585)--97.8% 1,471,461 Other Assets Less Liabilities--2.2% 32,762 ---------- Net Assets--100.0% $1,504,223 ========== (a)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at June 30, 1995. (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)Capital Guaranty. (k)Prerefunded. (l)GNMA Collateralized. (m)The interest rate is subject to change periodically and inversely based upon prevailing market rates. The interest rate shown is the rate in effect at June 30, 1995. (n)FNMA Collateralized. ++Highest short-term rating issued by Moody's Investors Service, Inc. *Not Rated. Ratings of issues shown have not been audited by Deloitte & Touche LLP. 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--2.6% NR* Aa $ 5,050 Alabama State Public School and College Authority, Refunding Bonds, 3.70% due 12/01/1996 $ 5,038 A1+ NR* 300 Birmingham, Alabama, Medical Clinic Board Revenue Bonds (U.A.H.S.F.), VRDN, 4.60% due 12/01/2026(b) 300 A2 A3 12,880 Mobile, Alabama, IDB, PCR (International Paper Co.), VRDN, 6.30% due 4/15/2004(b) 12,867 Alaska--1.1% A+ Aa 1,700 Alaska State Housing Finance Corporation, GO, Series A, 4.20% due 12/01/1995 1,701 AAA Aaa 5,000 Anchorage, Alaska, GO, Refunding Bonds, UT, 4.85% due 7/01/1995(d) 5,000 NR* P1 400 Valdez, Alaska, Marine Term Revenue Bonds (Exxon Pipeline Co., Project), DATES, CP, 4.20% due 10/01/2025(h) 400 Arizona--0.8% SP-1 MIG2 2,000 Maricopa County, Arizona, CP, TAN, UT, 5% due 7/28/1995 2,001 A+ A1 3,000 Maricopa County, Arizona, Transportation Board, Excise Tax Revenue Bonds, 7.10% due 7/01/1996 3,099 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 5,850 SP-1 MIG1++ 9,900 California State, GO, RAW, Series C, 5.75% due 4/25/1996 10,074 A A1 10,000 California State Various Purpose Bonds, GO, 4% due 10/01/1995 10,008 AA Aa 5,005 California Statewide Communities Development Authority, Revenue Refunding Bonds, COP (Saint Joseph Health Systems), 4.10% due 7/01/1997 4,948 NR* MIG1++ 30,000 Fresno County, California, TRAN, 4.25% due 7/13/1995 29,998 SP-1+ MIG1++ 4,000 Santa Clara County, California, TRAN, UT, 4.25% due 7/07/1995 4,000 Colorado--2.1% NR* NR* 10,000 Denver, Colorado, City and County Airport Revenue Bonds, Sub-Series B, 4.25% due 12/01/2025 9,975 AA Baa1 3,810 Jefferson County, Colorado, School District No. R-001, Revenue Refunding Bonds, Series A, 3.65% due 12/15/1996 3,797 Connecticut--3.7% Connecticut State, GO: AA- Aa 11,680 Series A, 5.25% due 3/15/1999 12,015 AA- Aa 6,705 UT, Series B, 4.90% due 11/15/1995 6,739 NR* Aa3 3,930 Connecticut State Housing Mortgage Revenue Bonds (Chestnut Hill Apartments), 4.60% due 4/01/1997 3,913 AAA Aaa 2,000 Stratford, Connecticut, GO, UT, 3.50% due 11/01/1996(f) 1,990 Florida--4.2% A Aa 2,000 Dade County, Florida, Aviation Revenue Refunding Bonds, Series X, 4.10% due 10/01/1995 2,002 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) 5,000 A+ A 1,495 Florida State, GO, COP (Construction Equipment Financing Program), 5.75% due 11/15/1995 1,505 AAA Aaa 2,375 Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A, 5% due 7/01/1995(f) 2,375 AA Aa1 5,000 Jacksonville, Florida, Electric Authority Revenue Bonds (Electric Systems), Series 3-B, 4% due 10/01/1998 4,977 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) 4,093 A-1 VMIG1++ 400 Martin County, Florida, PCR, Refunding (Florida Power and Light Co., Project), VRDN, 4.20% due 9/01/2024(b) 400 NR* NR* 7,500 Martin County, Florida, School District, TAN, 4.25% due 6/08/1996 7,506 A-1 VMIG1++ 1,300 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Lighting Co. Project), VRDN, 4.20% due 1/01/2026(b) 1,300 Georgia--3.0% AA Aa1 2,000 Gwinnett County, Georgia, COP (Water and Sewer), 7.60% due 8/01/1995 2,007 AA Aa1 4,000 Gwinnett County, Georgia, School District, Refunding, UT, 4.40% due 2/01/1998 4,025 AAA Aaa 3,965 Metropolitan Atlanta, Georgia, Rapid Transit Authority, Sales Tax Revenue Refunding Bonds, Series P, 4.75% due 7/01/1995(c) 3,965 A-1 VMIG1++ 10,000 Municipal Electric Authority, Georgia, General Resolution, Series C, 4.90% due 3/01/1996 10,065
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Illinois--8.8% Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Revenue Refunding Bonds: AA Aa $ 5,000 4% due 12/01/1996 $ 5,020 AA Aa 3,100 UT, 4.10% due 12/01/1995 3,105 AA Aa 3,000 UT, 4.50% due 12/01/1996 3,027 AAA Aaa 4,120 Chicago, Illinois, Public Commerce Building Revenue Bonds (Chicago Board of Education), Series A, 7.75% due 1/01/1999(a)(f) 4,623 AAA Aaa 4,500 Chicago, Illinois, Refunding, Series A, 4.40% due 1/01/1999(d) 4,473 AA- Baa1 5,000 Chicago, Illinois, School Financing Authority, 7.25% due 6/01/1998 5,166 A1+ VMIG1++ 7,500 Chicago, Illinois, Tender Notes, Series A-1, 3.10% due 10/31/1995 7,471 AAA Aaa 3,000 Cook County, Illinois, High School District No. 205, Revenue Refunding Bonds (Thornton Township), UT, 5.60% due 6/01/1998(f)(g) 3,117 NR* VMIG1++ 4,900 Illinois Health Facilities Authority Revenue Bonds (Resurrection Health Care System), VRDN, 4.65% due 5/01/2011(b) 4,900 AA- A1 4,600 Illinois State, GO, UT, Refunding, 3.90% due 12/01/1998 4,525 Illinois State Toll and Highway Authority, Revenue Refunding Bonds, Series A: A A1 3,625 3.70% due 1/01/1996 3,620 A A1 10,000 4.10% due 1/01/1998 9,927 Indiana--2.6% NR* VMIG1++ 13,280 Indiana State, HFA, S/F Mortgage Revenue Bonds, Series D, 4.30% due 7/03/1995(i) 13,280 AA- Aa 4,800 Purdue University, Indiana, University Revenue Bonds, Student Fees, Series J, 4.15% due 7/01/1996 4,820 Kentucky--2.4% A+ A 13,000 Kentucky State Property and Building Community, Revenue Refunding Bonds (Project No. 55), 3.60% due 9/01/1996 12,918 AAA Aaa 3,250 Kentucky State Turnpike Authority, Economic Development Road, Revenue Refunding Bonds (Revitalization Projects), 4% due 7/01/1996(c) 3,266 Louisiana--1.3% A A1 3,610 Louisiana Public Facilities Authority Revenue Bonds (Tulane University), Series B, 6.80% due 8/15/1996 3,724 A A3 5,410 Louisiana State Offshore Terminal Authority, Revenue Refunding Bonds (Deepwater Port), First Stage, Series B, 4.60% due 9/01/1995 5,405 Maine--0.8% AA+ Aa 5,255 Maine State General Purpose Bonds, GO, 4.10% due 9/01/1995 5,260 Maryland--0.7% A+ A1 4,535 Maryland State Transportation Authority Revenue Bonds (Transportation Facilities Project), 6% due 7/01/1995 4,535 Massachusetts-- BBB+ NR* 2,131 Massachusetts State, COP, GO, 5.10% due 6/30/1996 2,149 2.6% A+ A1 2,500 Massachusetts State, GO, Dedicated Income Tax, Series A, 7.25% due 6/01/1996 2,577 AAA Aaa 2,005 Massachusetts State Health and Educational Facilities Authority Revenue Bonds (New England Medical Center Hospitals), Series G, 3.80% due 7/01/1997(d) 1,993 A- A1 10,160 New England Education Loan Marketing Corporation, Massachusetts, Student Loan, Series D, 4.75% due 7/01/1998 10,126 NR* NR* 995 South Hadley, Massachusetts, IDR (South Hadley Health Care), AMT, Series A, 5% due 12/01/1996 992 Michigan--6.6% AAA Aaa1 12,785 Detroit, Michigan, Distributable State Aid, 7.20% due 5/01/1999(a)(c) 14,213 NR* VMIG1++ 1,000 Detroit, Michigan, Downtown Development Authority, Revenue Refunding Bonds (Millender Center Project), VRDN, 4.10% due 12/01/2010(b) 1,000 SP-1 MIG1++ 5,075 Detroit, Michigan, GO, Notes, 3.80% due 7/01/1995 5,075 A1+ VMIG1++ 6,100 Grand Rapids, Michigan, Water Supply Systems, Revenue Refunding Bonds, VRDN, 4.10% due 1/01/2020(b)(f) 6,100 AAA NR* 5,475 Michigan State, Hospital Finance Authority Revenue Bonds (Harper-Grace & Huron Valley Hospitals), Series A, 10% due 10/01/1995(a) 5,670 AA- A 2,700 Michigan State Building Authority Revenue Bonds (Equipment Program), Series A, 4.55% due 10/01/1998 2,714 AA- A 10,145 Michigan State Building Authority, Revenue Refunding Bonds, Series I, 3.90% due 10/01/1997 10,095 NR* VMIG1++ 800 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds (Grayling Generating Project), VRDN, AMT, 4.25% due 1/01/2014(b) 800 Minnesota--2.9% AAA Aaa 3,225 Hennepin County, Minnesota, Capital Improvement Bonds, UT, Series B, 3.25% due 12/01/1995 3,221 Minnesota State, HFA, S/F Mortgage: A1+ VMIG1++ 4,755 AMT, Series U, 4.95% due 12/14/1995 4,759 A1+ VMIG1++ 7,265 AMT, Series V, 4.95% due 12/01/1995 7,271 A1+ VMIG1++ 4,105 Series T, 4.85% due 12/14/1995 4,109 Mississippi--1.0% NR* Aa 2500 Jackson County, Mississippi, Individual Sewer Facilities Revenue Bonds (Chevron USA, Inc. Project), VRDN, 4.35% due 12/15/2024(b) 500 A NR* 6,000 Mississippi Higher Education Assistance Corporation, Student Loan Revenue Refunding Bonds, AMT, Series C, 5.40% due 1/01/1996 6,032 Missouri--2.1% SP1+ NR* 14,500 Missouri State Environmental Improvement and Energy Resource Authority, Water, PCR (State Revolving Fund Program), Series A, 3.90% due 9/01/1996 14,455 Nebraska--1.5% Nebraska Public Power District Revenue Bonds: A+ A1 7,000 (Nuclear Facility), 4% due 7/01/1995 7,000 A+ A1 3,570 Refunding (Power Supply System), Series C, 3.50% due 1/01/1996 3,563 Nevada--1.8% AAA Aaa 5,635 Clark County, Nevada, School District, Series A, 4.25% due 6/15/1998(d) 5,633 AAA Aaa 7,000 Washoe County, Nevada, Airport Authority, Airport Systems Improvement Revenue Bonds, AMT, Series A, 3.90% due 7/01/1995(d) 7,000 New Jersey--3.3% Camden County, New Jersey, Improvement Authority (Solid Waste Disposal), Revenue Refunding Bonds (Landfill Project): A- A1 1,125 3.55% due 7/01/1995 1,125 A- A1 2,000 4% due 7/01/1997 1,997 AA+ Aaa 4,500 Middlesex County, New Jersey, Refunding Bonds, UT, 3.60% due 7/15/1996 4,497 AAA Aaa 5,000 New Jersey EDA, Market Transition Facility Revenue Bonds, Senior Lien--Series A, 4.80% due 7/01/1998(d) 5,067 A+ NR* 3,765 New Jersey State Housing and Mortgage Finance Agency, Revenue Refunding Bonds, Series 1, 4.50% due 11/01/1995 3,771 A A 2,160 New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series A, 5.50% due 1/01/1996 2,178 AAA Aaa 3,265 Passaic Valley, New Jersey, Sewage Commissioners Revenue Refunding Bonds, Series D, 5.70% due 12/01/1995(c) 3,295 New Mexico--0.3% AAA Aaa 2,340 New Mexico Education Loan Assistance Foundation, Student Loan Revenue Bonds, AMT, Series A, 5.75% due 4/01/1996(c) 2,364 New York--2.3% AAA Aaa 4,000 Albany County, New York, Revenue Refunding Bonds, UT, 3.30% due 10/01/1995(f) 3,998 A- Baa1 5,000 New York City, New York, GO, UT, Refunding, Series A, 4.60% due 8/01/1995 5,002 A1+ VMIG1++ 7,000 New York State Dormitory Authority Revenue Bonds (New York Public Library), Series B, 3.875% due 7/01/1995 6,998 A1+ VMIG1++ 100 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal Syracuse University Project), VRDN, 4.35% due 3/01/2023(b) 100 North Carolina-- North Carolina State, Clean Water, Series B: 2.1% AAA Aaa 10,000 4.25% due 6/01/1997 10,054 AAA Aaa 5,000 4.25% due 6/01/1998 5,037 North Dakota--0.7% NR* Aa 5,000 North Dakota Student Loan Revenue Refunding Bonds, Series A, 5.40% due 7/01/1996 5,060
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Municipal Bonds Limited Maturity Portfolio S&P Moody's Face Value STATE Ratings Ratings Amount Issue (Note 1a) Ohio--8.7% A- NR* $ 2,500 Cincinnati, Ohio, City School District, RAN, 5.35% due 6/15/1996 $ 2,533 Cleveland, Ohio, City School District, RAN, UT(c): AAA Aaa 3,000 4.20% due 6/01/1996 3,016 AAA Aaa 10,000 4.35% due 6/01/1997 10,066 AAA Aaa 2,500 Columbus, Ohio, Limited Tax, 4.25% due 6/15/1998 2,513 NR* Aaa 2,700 Columbus, Ohio, Sewer Improvement Revenue Bonds (Waterworks Parks), 6.75% due 7/01/1995(g) 2,700 NR* VMIG1++ 2,100 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds (Cleveland University Hospital), VRDN, 4.20% due 1/01/2016(b) 2,100 NR* NR* 2,000 Lucas County, Ohio, BAN, 5.75% due 11/30/1995 2,015 NR* MIG1++ 3,500 Miami Valley Regional Transport Authority, Ohio (Capital Facilities), BAN, 4.75% due 4/15/1997 3,539 Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Ohio Edison Project), Series A: A+ VMIG1++ 10,500 4.25% due 8/01/1996 10,477 A+ VMIG1++ 6,700 3.45% due 2/01/2015 6,646 A+ A1 3,300 Ohio State Public Facilities Commission, Higher Education Facilities, Capital Facilities, Series II-A, 5.30% due 12/01/1996 3,358 AAA Aaa 10,000 Ohio State Public Facilities Commission, Refunding (Mental Health Facilities), Series II-B, 4.25% due 6/01/1998(e) 10,032 Oklahoma--1.0% A+ Aa 6,370 Oklahoma County, Oklahoma, Independent School District No. 89, UT, 6.50% due 2/01/1998 6,712 Pennsylvania--1.3% Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding Bonds, Series A: AA Aa 2,750 (College and Universities), 4.80% due 9/01/1998 2,798 A+ Aa 3,000 (Thomas Jefferson University), 5.75% due 8/15/1998 3,123 AAA Aaa 3,000 Pittsburgh, Pennsylvania, Water and Sewer Authority, Revenue Refunding Bonds, Series A, 3.50% due 9/01/1996(f) 2,984 Rhode Island--1.5% AAA Aaa 4,180 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, Series A, 5% due 8/01/1995(e) 4,184 NR* A 6,000 Rhode Island State, Student Loan Authority, Student Loan Revenue Refunding Bonds, Series A, 5.70% due 12/01/1996 6,104 South Carolina NR* NR* 5,775 Georgetown County, South Carolina, Water and Sewer District Revenue - --2.3% Bonds, BAN, 6.25% due 5/07/1996 5,808 South Carolina State Public Service Authority Revenue Refunding Bonds: AA- A1 4,000 (Electric Systems Expansion), Series A, 7.50% due 7/01/1996 4,145 A+ A1 5,170 Series C, 3.80% due 1/01/1997 5,138 Tennessee-- AA NR* 2,885 Clarksville, Tennessee, Public Building Authority, Revenue 1.0% Refunding Bonds (Pooled Loan Program), 4.40% due 12/01/1998 2,861 AA+ Aa 4,000 Shelby County, Tennessee, Refunding, Series A, 6.40% due 8/01/1998 4,124 Texas--3.8% 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 2,244 NR* Aa 2,000 Series C-1, 5% due 11/01/1995 2,007 NR* Aa 5,455 Series C-1, 5.60% due 11/01/1997 5,581 NR* A1 950 Fort Bend County, Texas, IDR, Corporate Refunding (Frito Lay Incorporated Project), 4% due 10/01/2011 940 NR* A1 3,650 Fort Bend County, Texas, PCR, Corporate IDR, Refunding (Frito Lay Incorporated Project), 4% due 10/01/2011 3,613 A1+ NR* 3,300 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Methodist Hospital), VRDN, 4.50% due 12/01/2025(b) 3,300 Panhandle-Plains, Texas, Higher Education Authority Incorporated, Student Loan Revenue Refunding Bonds, Series C: NR* Aaa 2,000 3.95% due 9/01/1996 1,994 NR* Aaa 2,675 4.15% due 9/01/1997 2,653 AA Aa 3,000 Texas State Public Finance Authority Revenue Bonds, Series A, 6% due 10/01/1995 3,018 AAA Aa 1,500 Texas Water Development Board Revenue Bonds (State Revolving Fund--Senior Lien), 4.35% due 7/15/1995 1,500 Utah--3.6% NR* NR* 18,774 Carbon County, Utah, Solid Waste Disposal Revenue Refunding Bonds (East Carbon Landfill Project), AMT, 6.04% due 5/01/1997 19,110 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds: AA Aa 1,250 Series A, 3.90% due 7/01/1996 1,252 AA Aa 4,250 Series B, 4.60% due 7/01/1995 4,250 Virginia--1.0% AAA Aaa 2,500 Virginia Port Authority Facilities, Revenue Refunding Bonds, 5% due 7/01/1995(c) 2,500 AA+ Aa1 2,975 Virginia State Housing Development Authority, Commonwealth Mortgage Revenue Bonds, AMT, Series B, Sub-Series B-1, 5.50% due 1/01/1996 2,992 AA Aa 1,500 Virginia State Public Building Authority, Building Revenue Bonds, Series C, 3.95% due 8/01/1995 1,500 Washington--6.1% AA- A1 3,000 Port Seattle, Washington, Revenue Refunding Bonds, Series B, 4% due 11/01/1995 3,003 Washington State, GO: AA Aa 1,800 Refunding, Series R-93B, 4.40% due 10/01/1998 1,810 AA Aa 8,460 Series C, 4.80% due 7/01/1998 8,590 AA Aa 7,250 Series R-93-B-1, UT, 4.125% due 10/01/1997 7,275 Washington State Public Power Supply System, Revenue Refunding Bonds: AA Aa 8,000 (Nuclear Project No. 1), Series A, 4.20% due 7/01/1995 8,000 AA Aa 2,000 (Nuclear Project No. 2), Series A, 3.50% due 7/01/1996 1,982 AA Aa 4,890 (Nuclear Project No. 2), Series A, 3.75% due 7/01/1997 4,796 AA Aa 5,405 (Nuclear Project No. 3), Series C, 4% due 7/01/1997 5,341 Wisconsin--3.9% AA Aa 3,500 Milwaukee County, Wisconsin, Metropolitan Sewer District Revenue Bonds, UT, Series A, 5.25% due 9/01/1995 3,509 AA- A1 10,000 Milwaukee County, Wisconsin, UT, Refunding, Series A, 4.80% due 9/01/1997 10,143 NR* NR* 8,000 Waukensha, Wisconsin, School District, TRAN, 4.75% due 10/24/1995 8,023 Wisconsin Housing and EDA, Housing Revenue Refunding Bonds, Series C: A A1 2,200 3.60% due 11/01/1995 2,196 A A1 2,795 4.30% due 11/01/1997 2,766 Puerto Rico--1.5% A Baa1 3,415 Puerto Rico Public Buildings Authority, Revenue Refunding Bonds, Series J, 5.20% due 7/01/1995 3,415 BBB Baa 7,065 Puerto Rico, S/F Finance Housing Agency, Revenue Refunding Bonds, 3.75% due 12/01/1995 7,054 Total Investments (Cost--$723,214)--106.6% 726,038 Liabilities in Excess of Other Assets--(6.6%) (44,760) ---------- Net Assets--100.0% $ 681,278 ========== (a)Prerefunded. (b)The interest rate is subject to change periodically based upon the prevailing market rate. The interest rate shown is the rate in effect at June 30, 1995. (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 June 30, 1995. (i)GNMA/FNMA Collateralized. ++Highest short-term rating by Moody's Investors Service, Inc. *Not Rated. Rating of issues shown have not been audited by Deloitte & Touche LLP. See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
Limited Insured National Maturity As of June 30, 1995 Portfolio Portfolio Portfolio Assets: Investments, at value* (Note 1a) $2,494,465,694 $1,471,461,312 $726,037,534 Cash 99,421 -- -- Receivables: Interest 45,726,555 28,831,308 11,938,731 Securities sold -- 23,282,169 28,293 Capital shares sold 1,574,288 967,199 356,466 Prepaid registration fees and other assets (Note 1e) 71,615 53,547 63,464 -------------- -------------- ------------ Total assets 2,541,937,573 1,524,595,535 738,424,488 -------------- -------------- ------------ Liabilities: Payables: Securities purchased 9,996,595 12,808,429 40,267,587 Capital shares redeemed 5,404,811 2,200,851 1,799,740 Dividends to shareholders (Note 1f) 2,256,454 1,420,326 401,295 Investment adviser (Note 2) 812,054 638,536 199,507 Distributor (Note 2) 536,063 288,096 41,178 Accrued expenses and other liabilities 347,889 3,016,238 14,436,817 -------------- -------------- ------------ Total liabilities 19,353,866 20,372,476 57,146,124 -------------- -------------- ------------ Net Assets: Net assets $2,522,583,707 $1,504,223,059 $681,278,364 ============== ============== ============ Net Assets Class A Common Stock, $0.10 par value++ $ 21,537,391 $ 10,568,700 $ 5,406,871 Consist of: Class B Common Stock, $0.10 par value++++ 9,888,492 4,190,387 1,305,736 Class C Common Stock, $0.10 par value+++ 97,928 51,814 39,969 Class D Common Stock, $0.10 par value+++++ 328,305 196,047 113,422 Paid-in capital in excess of par 2,424,829,060 1,508,398,383 678,543,843 Accumulated realized capital losses on investments--net (Note 5) (38,085,734) (77,312,474) (6,954,744) Accumulated distributions in excess of realized capital gains on investments-net -- (3,745,999) -- Unrealized appreciation on investments--net 103,988,265 61,876,201 2,823,267 -------------- -------------- ------------ Net assets $2,522,583,707 $1,504,223,059 $681,278,364 ============== ============== ============ Net Asset Class A: Value: Net assets $1,706,064,230 $1,059,440,068 $536,474,423 ============== ============== ============ Shares outstanding 215,373,913 105,686,998 54,068,710 ============== ============== ============ Net asset value and redemption price per share $ 7.92 $ 10.02 $ 9.92 ============== ============== ============ Class B: Net assets $ 782,748,268 $ 419,932,544 $129,580,505 ============== ============== ============ Shares outstanding 98,884,919 41,903,872 13,057,358 ============== ============== ============ Net asset value and redemption price per share $ 7.92 $ 10.02 $ 9.92 ============== ============== ============ Class C: Net assets $ 7,755,939 $ 5,194,514 $ 3,964,961 ============== ============== ============ Shares outstanding 979,281 518,140 399,691 ============== ============== ============ Net asset value and redemption price per share $ 7.92 $ 10.03 $ 9.92 ============== ============== ============ Class D: Net assets $ 26,015,270 $ 19,655,933 $ 11,258,475 ============== ============== ============ Shares outstanding 3,283,048 1,960,467 1,134,219 ============== ============== ============ Net asset value and redemption price per share $ 7.92 $ 10.03 $ 9.93 ============== ============== ============ *Identified cost $2,390,477,429 $1,409,585,111 $723,214,267 ============== ============== ============ ++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 Year Ended June 30, 1995 Portfolio Portfolio Portfolio Investment Interest and amortization of premium and discount earned $ 162,836,631 $ 102,352,831 $ 35,037,639 Income (Note 1d): Expenses: Investment advisory fees (Note 2) 9,408,013 7,415,203 2,712,662 Account maintenance and distribution fees--Class B (Note 2) 6,068,445 3,222,144 509,545 Transfer agent fees--Class A (Note 2) 644,746 492,073 229,485 Transfer agent fees--Class B (Note 2) 361,606 230,543 71,068 Custodian fees 196,723 139,502 75,289 Accounting services (Note 2) 179,937 112,483 91,455 Printing and shareholder reports 185,551 130,785 66,926 Registration fees (Note 1e) 102,874 135,468 101,323 Professional fees 59,240 58,390 26,854 Pricing services 38,685 28,033 25,903 Account maintenance fees--Class D (Note 2) 29,774 24,626 4,973 Portfolio insurance 33,397 16,034 9,463 Directors' fees and expenses 27,936 16,026 6,655 Account maintenance and distribution fees--Class C (Note 2) 19,066 13,868 2,688 Transfer agent fees--Class D (Note 2) 4,430 4,446 2,063 Transfer agent fees--Class C (Note 2) 1,326 884 1,186 Other 10,402 12,490 -- -------------- -------------- ------------ Total expenses 17,372,151 12,052,998 3,937,538 -------------- -------------- ------------ Investment income--net 145,464,480 90,299,833 31,100,101 -------------- -------------- ------------ Realized & Realized loss on investments--net (38,085,273) (77,312,475) (1,760,975) Unrealized Change in unrealized appreciation/depreciation on investments--net 91,672,331 98,337,487 4,210,861 Gain (Loss)on -------------- -------------- ------------ Investments-- Net Increase in Net Assets Resulting from Operations $ 199,051,538 $ 111,324,845 $ 33,549,987 Net(Notes 1b, ============== ============== ============ 1d & 3): See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
Insured Portfolio National Portfolio For the Year Ended June 30, For the Year Ended June 30, Increase (Decrease) in Net Assets: 1995 1994 1995 1994 Operations: Investment income--net $ 145,464,480 $ 163,942,349 $ 90,299,833 $ 98,848,832 Realized gain (loss) on investments --net (38,085,273) 80,935,129 (77,312,475) 62,008,845 Change in unrealized appreciation/ depreciation on investments--net 91,672,331 (275,252,365) 98,337,487 (172,722,080) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 199,051,538 (30,374,887) 111,324,845 (11,864,403) -------------- -------------- -------------- -------------- Dividends & Investment income--net: Distributions Class A (104,032,884) (119,441,701) (67,078,481) (75,680,507) to Share- Class B (40,656,294) (44,500,648) (22,561,653) (23,168,325) holders Class C (120,450) -- (90,229) -- (Note 1f): Class D (654,852) -- (569,470) -- Realized gain on investments--net: Class A (31,614,511) (57,171,047) (20,402,246) (36,128,677) Class B (14,155,831) (24,972,443) (7,752,072) (12,798,152) Class C (23,608) -- (26,597) -- Class D (104,611) -- (171,804) -- In excess of realized gain on investments --net: Class A -- -- (2,695,572) -- Class B -- -- (1,024,214) -- Class C -- -- (3,514) -- Class D -- -- (22,699) -- -------------- -------------- -------------- -------------- Net decrease in net assets resulting from dividends and distributions to shareholders (191,363,041) (246,085,839) (122,398,551) (147,775,661) -------------- -------------- -------------- -------------- Capital Share Net increase (decrease) in net assets Transactions derived from capital share (Note 4): transactions (293,039,051) (52,099,956) (147,053,135) 44,114,517 -------------- -------------- -------------- -------------- Net Assets: Total decrease in net assets (285,350,554) (328,560,682) (158,126,841) (115,525,547) Beginning of year 2,807,934,261 3,136,494,943 1,662,349,900 1,777,875,447 -------------- -------------- -------------- -------------- End of year $2,522,583,707 $2,807,934,261 $1,504,223,059 $1,662,349,900 ============== ============== ============== ============== See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Limited Maturity Portfolio For the Year Ended June 30, Increase (Decrease) in Net Assets: 1995 1994 Operations: Investment income--net $ 31,100,101 $ 36,430,985 Realized gain (loss) on investments --net (1,760,975) (968,336) Change in unrealized appreciation/ depreciation on investments--net 4,210,861 (13,063,534) -------------- -------------- Net increase (decrease) in net assets resulting from operations 33,549,987 22,399,115 -------------- -------------- Dividends & Investment income--net: Distributions Class A (25,771,957) (31,987,779) to Share- Class B (5,094,228) (4,443,206) holders Class C (45,930) -- (Note 1f): Class D (187,986) -- Realized gain on investments--net: Class A -- -- Class B -- -- Class C -- -- Class D -- -- In excess of realized gain on investments--net: Class A -- -- Class B -- -- Class C -- -- Class D -- -- -------------- -------------- Net decrease in net assets resulting from dividends and distributions to shareholders (31,100,101) (36,430,985) -------------- -------------- Capital Share Net increase (decrease) in net assets Transactions derived from capital share (Note 4): transactions (256,848,291) 7,793,356 -------------- -------------- Net Assets: Total decrease in net assets (254,398,405) (6,238,514) Beginning of year 935,676,769 941,915,283 -------------- -------------- End of year $ 681,278,364 $ 935,676,769 ============== ============== See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived from information provided Insured Portfolio in the financial statements. Class A For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991 Per Share Net asset value, beginning of year $ 7.88 $ 8.64 $ 8.26 $ 7.92 $ 7.86 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .46 .47 .50 .52 .54 Realized and unrealized gain (loss) on investments--net .18 (.53) .49 .41 .12 ----------- ----------- ----------- ----------- ----------- Total from investment operations .64 (.06) .99 .93 .66 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.46) (.47) (.50) (.52) (.54) Realized gain on investments--net (.14) (.23) (.11) (.07) (.06) ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.60) (.70) (.61) (.59) (.60) ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 7.92 $ 7.88 $ 8.64 $ 8.26 $ 7.92 =========== =========== =========== =========== =========== Total Based on net asset value per share 8.60% (1.08%) 12.43% 12.11% 8.84% Investment =========== =========== =========== =========== =========== Return:** Ratios to Expenses .43% .42% .42% .44% .45% Average =========== =========== =========== =========== =========== Net Assets: Investment income--net 5.78% 5.53% 5.94% 6.44% 6.90% =========== =========== =========== =========== =========== Supplemental Net assets, end of year (in thousands) $ 1,706,064 $ 1,941,741 $ 2,225,188 $ 2,062,591 $ 1,984,307 Data: =========== =========== =========== =========== =========== Portfolio turnover 35.61% 28.34% 43.86% 22.50% 33.12% =========== =========== =========== =========== =========== The following per share data and ratios have been derived from information Insured Portfolio provided in the financial statements. For the Period Class B October 21, 1994++ to Increase (Decrease) in Net Asset Value: For the Year Ended June 30, June 30, 1995 1995 1994 1993 1992 1991 Class C Class D Per Share Net asset value, beginning of period $ 7.87 $ 8.63 $ 8.26 $ 7.92 $ 7.86 $ 7.68 $ 7.68 Operating --------- --------- --------- --------- --------- -------- -------- Performance: Investment income--net .40 .40 .44 .46 .48 .27 .29 Realized and unrealized gain (loss) on investments--net .19 (.53) .48 .41 .12 .38 .38 --------- --------- --------- --------- --------- -------- -------- Total from investment operations .59 (.13) .92 .87 .60 .65 .67 --------- --------- --------- --------- --------- -------- -------- Less dividends and distributions: Investment income--net (.40) (.40) (.44) (.46) (.48) (.27) (.29) Realized gain on investments--net (.14) (.23) (.11) (.07) (.06) (.14) (.14) --------- --------- --------- --------- --------- -------- -------- Total dividends and distributions (.54) (.63) (.55) (.53) (.54) (.41) (.43) --------- --------- --------- --------- --------- -------- -------- Net asset value, end of period $ 7.92 $ 7.87 $ 8.63 $ 8.26 $ 7.92 $ 7.92 $ 7.92 ========= ========= ========= ========= ========= ======== ======== Total Based on net asset value per share 7.91% (1.81%) 11.45% 11.27% 8.02% 8.83%+++ 9.24%+++ Investment ========= ========= ========= ========= ========= ======== ======== Return:** Ratios to Expenses, excluding account Average maintenance and distribution fees .44% .42% .43% .44% .45% .43%* .43%* Net Assets: ========= ========= ========= ========= ========= ======== ======== Expenses 1.19% 1.17% 1.18% 1.19% 1.20% 1.23%* .68%* ========= ========= ========= ========= ========= ======== ======== Investment income--net 5.03% 4.78% 5.17% 5.69% 6.13% 4.93%* 5.50%* ========= ========= ========= ========= ========= ======== ======== Supplemental Net assets, end of period (in Data: thousands) $ 782,748 $ 866,193 $ 911,307 $ 706,016 $ 537,755 $ 7,756 $ 26,015 ========= ========= ========= ========= ========= ======== ======== Portfolio turnover 35.61% 28.34% 43.86% 22.50% 33.12% 35.61% 35.61% ========= ========= ========= ========= ========= ======== ======== *Annualized. **Total investment returns exclude the effects of sales loads. ++Commencement of Operations. +++Aggregate total investment return. See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (continued)
The following per share data and ratios have been derived from information provided National Portfolio in the financial statements. Class A For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991 Per Share Net asset value, beginning of year $ 10.08 $ 11.02 $ 10.64 $ 10.17 $ 10.12 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .60 .62 .67 .71 .73 Realized and unrealized gain (loss) on investments--net .15 (.64) .57 .58 .05 ----------- ----------- ----------- ----------- ----------- Total from investment operations .75 (.02) 1.24 1.29 .78 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.60) (.62) (.67) (.71) (.73) Realized gain on investments--net (.19) (.30) (.19) (.11) -- In excess of realized gain on investments--net (.02) -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.81) (.92) (.86) (.82) (.73) ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 10.02 $ 10.08 $ 11.02 $ 10.64 $ 10.17 =========== =========== =========== =========== =========== Total Based on net asset value per share 7.89% (.47%) 12.21% 13.09% 7.94% Investment =========== =========== =========== =========== =========== Return:* Ratios to Expenses .56% .55% .55% .55% .55% Average =========== =========== =========== =========== =========== Net Assets: Investment income--net 6.01% 5.72% 6.23% 6.80% 7.20% =========== =========== =========== =========== =========== Supplemental Net assets, end of year (in thousands) $ 1,059,440 $ 1,203,181 $ 1,353,805 $ 1,278,055 $ 1,255,820 Data: =========== =========== =========== =========== =========== Portfolio turnover 103.65% 73.33% 65.43% 50.94% 75.25% =========== =========== =========== =========== =========== The following per share data and ratios have been derived from information provided National Portfolio in the financial statements. Class B For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991 Per Share Net asset value, beginning of year $ 10.07 $ 11.02 $ 10.63 $ 10.16 $ 10.11 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .52 .54 .59 .63 .65 Realized and unrealized gain (loss) on investments--net .16 (.65) .58 .58 .05 ----------- ----------- ----------- ----------- ----------- Total from investment operations .68 (.11) 1.17 1.21 .70 ----------- ----------- ----------- ----------- ----------- Less dividends and distributions: Investment income--net (.52) (.54) (.59) (.63) (.65) Realized gain on investments--net (.19) (.30) (.19) (.11) -- In excess of realized gain on investments--net (.02) -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total dividends and distributions (.73) (.84) (.78) (.74) (.65) ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 10.02 $ 10.07 $ 11.02 $ 10.63 $ 10.16 =========== =========== =========== =========== =========== Total Based on net asset value per share 7.28% (1.39%) 11.47% 12.25% 7.14% Investment =========== =========== =========== =========== =========== Return:** Ratios to Expenses, excluding account maintenance and Average distribution fees .57% .55% .56% .56% .56% Net Assets: =========== =========== =========== =========== =========== Expenses 1.32% 1.30% 1.31% 1.31% 1.31% =========== =========== =========== =========== =========== Investment income--net 5.25% 4.97% 5.46% 6.03% 6.43% =========== =========== =========== =========== =========== Supplemental Net assets, end of year (in thousands) $ 419,933 $ 459,169 $ 424,071 $ 286,375 $ 213,581 Data: =========== =========== =========== =========== =========== Portfolio turnover 103.65% 73.33% 65.43% 50.94% 75.25% =========== =========== =========== =========== =========== The following per share data and ratios have been derived National Portfolio from information provided in the financial statements. For the Period Oct. 21, 1994++ to June 30, 1995 Increase (Decrease) in Net Asset Value: Class C Class D Per Share Net asset value, beginning of period $ 9.85 $ 9.85 Operating ----------- ----------- Performance: Investment income--net .36 .40 Realized and unrealized gain on investments--net .39 .39 ----------- ----------- Total from investment operations .75 .79 ----------- ----------- Less dividends and distributions: Investment income--net (.36) (.40) Realized gain on investments--net (.19) (.19) In excess of realized gain on investments--net (.02) (.02) ----------- ----------- Total dividends and distributions (.57) (.61) ----------- ----------- Net asset value, end of period $ 10.03 $ 10.03 =========== =========== Total Based on net asset value per share 7.97%+++ 8.37%+++ Investment =========== =========== Return:** Ratios to Expenses, excluding account maintenance and Average distribution fees .57%* .56%* Net Assets: =========== =========== Expenses 1.37%* .81%* =========== =========== Investment income--net 5.21%* 5.78%* =========== =========== Supplemental Net assets, end of period (in thousands) $ 5,195 $ 19,656 Data: =========== =========== Portfolio turnover 103.65% 103.65% =========== =========== The following per share data and ratios have been derived from information provided Limited Maturity Portfolio in the financial statements. Class A For the Year Ended June 30, Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991 Per Share Net asset value, beginning of year $ 9.87 $ 10.01 $ 9.91 $ 9.75 $ 9.71 Operating ----------- ----------- ----------- ----------- ----------- Performance: Investment income--net .38 .37 .41 .50 .57 Realized and unrealized gain (loss) on investments--net .05 (.14) .10 .16 .04 ----------- ----------- ----------- ----------- ----------- Total from investment operations .43 .23 .51 .66 .61 ----------- ----------- ----------- ----------- ----------- Less dividends from investment income--net (.38) (.37) (.41) (.50) (.57) ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 9.92 $ 9.87 $ 10.01 $ 9.91 $ 9.75 =========== =========== =========== =========== =========== Total Based on net asset value per share 4.53% 2.30% 5.28% 6.93% 6.45% Investment =========== =========== =========== =========== =========== Return:** Ratios to Expenses .41% .40% .41% .40% .40% Average =========== =========== =========== =========== =========== Net Assets: Investment income--net 3.86% 3.68% 4.13% 5.02% 5.88% =========== =========== =========== =========== =========== Supplemental Net assets, end of year (in thousands) $ 536,474 $ 790,142 $ 846,736 $ 613,407 $ 350,549 Data: =========== =========== =========== =========== =========== Portfolio turnover 37.33% 45.67% 65.43% 96.32% 93.06% =========== =========== =========== =========== =========== *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)
Limited Maturity Portfolio The following per share data and ratios Class B have been derived from information provided For the Period For the Period in the financial statements. Nov. 2, 1992++ October 21, 1994++ For the Year Ended June 30, to June 30, to June 30, 1995 Increase (Decrease) in Net Asset Value: 1995 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 .35 .33 .24 .25 .26 Realized and unrealized gain (loss) on investments--net .05 (.14) .08 .09 .10 ----------- ----------- ----------- ----------- ----------- Total from investment operations .40 .19 .32 .34 .36 ----------- ----------- ----------- ----------- ----------- Less dividends from investment income--net (.35) (.33) (.24) (.25) (.26) ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 9.92 $ 9.87 $ 10.01 $ 9.92 $ 9.93 =========== =========== =========== =========== =========== Total Based on net asset value per share 4.14% 1.98% 3.26%+++ 3.52%+++ 3.73%+++ Investment =========== =========== =========== =========== =========== Return:** Ratios to Expenses, excluding account maintenance and Average distribution fees .43% .41% .41%* .49%* .43%* Net Assets: =========== =========== =========== =========== =========== Expenses .78% .76% .76%* .70%* .53%* =========== =========== =========== =========== =========== Investment income--net 3.50% 3.33% 3.60%* 3.61%* 3.78%* =========== =========== =========== =========== =========== Supplemental Net assets, end of period (in thousands) $ 129,581 $ 145,534 $ 95,179 $ 3,965 $ 11,258 Data: =========== =========== =========== =========== =========== Portfolio turnover 37.33% 45.67% 65.43% 37.33% 37.33% =========== =========== =========== =========== =========== *Annualized. **Total investment returns exclude the effects of sales loads. ++Commencement of Operations. +++Aggregate total investment return. See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS 1. Significant Accounting Policies: Merrill Lynch Municipal Bond Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund's Portfolios offer 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, and options thereon, are valued at closing prices as of the close of such exchanges. 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 re- quirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no Federal income tax provision is required. (d) Security transactions and investment income--Security 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 determined on the identified cost basis. (e) Prepaid registration fees--Prepaid registration fees are charged to expenses as the related shares are issued. (f) Dividends and distributions--Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Distributions in excess of realized capital gains are due primarily to differing tax treatment, for futures transactions and post-October losses. 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- sidary 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. NOTES TO FINANCIAL STATEMENTS (continued) 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 Feees Distribution Fees Limited Limited Insured National Maturity Insured National Maturity 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 Dis- tributor 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 year ended June 30, 1995, MLFD earned underwriting 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 $ 32,899 $ 21,667 $ 8,782 MLPF&S 316,110 214,728 70,749 Class D Shares: MLFD 10,320 6,515 635 MLPF&S 102,688 114,904 11,439 MLPF&S received contingent deferred sales charges of $3,263,991 relating to transactions in Class B Shares, amounting to $1,840,608, $1,036,339 and $387,044 in the Insured, National and Limited Maturity Portfolios, respectively, and $11,241 relating to transactions in Class C Shares, amounting to $5,361, $3,219 and $2,661 in the Insured, National and Limited Maturity Portfolios, respectively. Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, PSI, MLFD, MLFDS, MLPF&S, and/or ML & Co. 3. Investments: Purchases and sales of investments, excluding short-term securities, for year ended June 30, 1995 were as follows: Purchases Sales Insured Portfolio $ 855,727,565 $1,063,660,912 National Portfolio 1,479,315,535 1,555,712,973 Limited Maturity Portfolio 257,607,605 487,390,324 Net realized and unrealized gains (losses) as of June 30, 1995 were as follows: Realized Unrealized Insured Portfolio Losses Gains Long-term investments $ (37,976,407) $ 103,596,361 Short-term investments (108,866) 391,904 -------------- -------------- Total $ (38,085,273) $ 103,988,265 ============== ============== Realized Unrealized National Portfolio Losses Gains Long-term investments $ (65,507,359) $ 61,575,207 Short-term investments (502,522) 300,994 Financial future contracts on options (11,302,594) -- -------------- -------------- Total $ (77,312,475) $ 61,876,201 ============== ============== Realized Unrealized Limited Maturity Portfolio Losses Gains Long-term investments $ (1,605,058) $ 2,574,173 Short-term investments (155,917) 249,094 -------------- -------------- Total $ (1,760,975) $ 2,823,267 ============== ============== As of June 30, 1995 net unrealized appreciation/depreciation for Federal income tax purposes were as follows: Gross Gross Unrealized Unrealized Net Unrealized Appreciation Depreciation Appreciation Insured Portfolio $127,141,738 $ 23,153,473 $103,988,265 National Portfolio 67,325,412 5,449,211 61,876,201 Limited Maturity Portfolio 3,787,995 964,728 2,823,267 The aggregate cost of investments at June 30, 1995 for Federal income tax purposes was $2,390,477,429 for the Insured Portfolio, $1,409,585,111 for the National Portfolio, and $723,214,267 for the Limited Maturity Portfolio. 4. Capital Share Transactions: Net increase (decrease) on net assets derived from capital share transactions for the years ended June 30, 1995 and June 30, 1994 was $(293,039,051) and $(52,099,956), respectively, for the Insured Portfolio; $(147,053,135) and $44,114,517, respectively, for the National Portfolio and $(256,848,291) 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 Year Dollar Ended June 30, 1995 Shares Amount Shares sold 17,244,995 $ 133,588,440 Shares issued to shareholders in reinvestment of dividends and distributions 5,993,847 46,501,518 ------------- ------------- Total issued 23,238,842 180,089,958 Shares redeemed (54,299,693) (419,430,676) ------------- ------------- Net decrease (31,060,851) $(239,340,718) ============= ============= 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 Year Dollar Ended June 30, 1995 Shares Amount Shares sold 16,066,095 $ 123,787,819 Shares issued to shareholders in reinvestment of dividends and distributions 2,730,539 21,164,361 ------------- ------------- Total issued 18,796,634 144,952,180 Automatic conversion of shares (8,999) (69,008) Shares redeemed (29,913,866) (230,944,682) ------------- ------------- Net decrease (11,126,231) $ (86,061,510) ============= ============= 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 June 30, 1995 Shares Amount Shares sold 1,136,288 $ 8,839,400 Shares issued to shareholders in reinvestment of dividends and distributions 10,357 81,730 ------------- ------------- Total issued 1,146,645 8,921,130 Shares redeemed (167,364) (1,318,478) ------------- ------------- Net increase 979,281 $ 7,602,652 ============= ============= [FN] ++Commencement of Operations. Insured Portfolio Class D Shares for the Period Dollar October 21, 1994++ to June 30, 1995 Shares Amount Shares sold 5,713,054 $ 43,851,761 Automatic conversion of shares 8,988 69,008 Shares issued to shareholders in reinvestment of dividends and distributions 41,138 324,130 ------------- ------------- Total issued 5,763,180 44,244,899 Shares redeemed (2,480,132) (19,484,374) ------------- ------------- Net increase 3,283,048 $ 24,760,525 ============= ============= [FN] ++Commencement of Operations. National Portfolio Class A Shares for the Year Dollar Ended June 30, 1995 Shares Amount Shares sold 3,950,018 $ 38,999,667 Shares issued to shareholders in reinvestment of dividends and distributions 4,615,676 44,866,990 ------------- ------------- Total issued 8,565,694 83,866,657 Shares redeemed (22,289,533) (218,456,423) ------------- ------------- Net decrease (13,723,839) $(134,589,766) ============= ============= NOTES TO FIINANCIAL STATEMENTS (concluded) 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 Year Dollar Ended June 30, 1995 Shares Amount Shares sold 8,878,807 $ 87,072,076 Shares issued to shareholders in reinvestment of dividends and distributions 1,612,526 15,637,171 ------------- ------------- Total issued 10,491,333 102,709,247 Automatic conversion of shares (2,817) (44,533) Shares redeemed (14,168,055) (139,040,527) ------------- ------------- Net decrease (3,679,539) $ (36,375,813) ============= ============= 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 June 30, 1995 Shares Amount Shares sold 658,356 $ 6,451,126 Shares issued to shareholders in reinvestment of dividends and distributions 5,456 53,279 ------------- ------------- Total issued 663,812 6,504,405 Shares redeemed (145,672) (1,433,070) ------------- ------------- Net increase 518,140 $ 5,071,335 ============= ============= [FN] ++Commencement of Operations. National Portfolio Class D Shares for the Period Dollar October 21, 1994++ to June 30, 1995 Shares Amount Shares sold 5,900,638 $ 57,599,450 Automatic conversion of shares 2,818 44,533 Shares issued to shareholders in reinvestment of dividends and distributions 32,362 314,401 ------------- ------------- Total issued 5,935,818 57,958,384 Shares redeemed (3,975,351) (39,117,275) ------------- ------------- Net increase 1,960,467 $ 18,841,109 ============= ============= [FN] ++Commencement of Operations. Limited Maturity Portfolio Class A Shares for the Year Dollar Ended June 30, 1995 Shares Amount Shares sold 5,989,549 $ 58,950,508 Shares issued to shareholders in reinvestment of dividends 1,619,597 15,934,105 ------------- ------------- Total issued 7,609,146 74,884,613 Shares redeemed (33,605,286) (330,320,109) ------------- ------------- Net decrease (25,996,140) $(255,435,496) ============= ============= 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 Year Dollar Ended June 30, 1995 Shares Amount Shares sold 8,960,577 $ 88,112,911 Shares issued to shareholders in reinvestment of dividends 364,664 3,587,539 ------------- ------------- Total issued 9,325,241 91,700,450 Automatic conversion of shares (447) (4,387) Shares redeemed (11,012,352) (108,188,416) ------------- ------------- Net decrease (1,687,558) $ (16,492,353) ============= ============= 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 $ 52,312,024 ============= ============= Limited Maturity Portfolio Class C Shares for the Period October 21, 1994++ to Dollar June 30, 1995 Shares Amount Shares sold 1,018,221 $ 10,034,099 Shares issued to shareholders in reinvestment of dividends 3,599 35,474 ------------- ------------- Total issued 1,021,820 10,069,573 Shares redeemed (622,129) (6,135,873) ------------- ------------- Net increase 399,691 $ 3,933,700 ============= ============= [FN] ++Commencement of Operations. Limited Maturity Portfolio Class D Shares for the Period October 21, 1994++ to Dollar June 30, 1995 Shares Amount Shares sold 2,889,627 $ 28,392,515 Automatic conversion of shares 447 4,387 Shares issued to shareholders in reinvestment of dividends 12,056 118,733 ------------- ------------- Total issued 2,902,130 28,515,635 Shares redeemed (1,767,911) (17,369,777) ------------- ------------- Net increase 1,134,219 $ 11,145,858 ============= ============= [FN] ++Commencement of Operations. 5. Capital Loss Carryforward: At June 30, 1995, the Fund's Portfolios had a capital loss carry- forward as follows: Approximately $38,085,000 in the Insured Portfolio, all of which expires in 2003; approximately $37,909,000 in the National Portfolio, all of which expires in 2003; and approxi- mately $6,271,000 in the Limited Maturity Portfolio, of which $1,416,000 expires in 1997, $2,787,000 expires in 1998, $22,000 expires in 1999, $25,000 expires in 2002 and $2,021,000 expires in 2003. These will be available to offset like amounts of any future taxable gains. INDEPENDENT AUDITORS' REPORT The Board of Directors and Shareholders, Merrill Lynch Municipal Bond Fund, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Insured, National and Limited Maturity Portfolios of Merrill Lynch Municipal Bond Fund, Inc. as of June 30, 1995, the related statements of operations for the year then ended and changes in net assets for each of the years in the two- year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and the financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1995, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by manage- ment, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of the Insured, National and Limited Maturity Portfolios of Merrill Lynch Municipal Bond Fund, Inc. as of June 30, 1995, the results of their operations, the changes in their net assets, and the financial highlights for the respective stated periods in conformity with generally accepted accounting principles. Deloitte & Touche LLP Princeton, New Jersey August 15, 1995 -----END PRIVACY-ENHANCED MESSAGE-----