-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MCLwmnorW9Md+K7y7qCCHc1PSkaoIUphogknz8lLMBlvVM63PtFbl3uxHlNwKTrj 5gRQz/STbAcF92OeMP+0iA== 0000900092-97-000084.txt : 19970508 0000900092-97-000084.hdr.sgml : 19970508 ACCESSION NUMBER: 0000900092-97-000084 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970507 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000225635 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 132896246 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-02688 FILM NUMBER: 97597553 BUSINESS ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543 BUSINESS PHONE: 6092822026 FORMER COMPANY: FORMER CONFORMED NAME: ONE LIBERTY MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19780622 N-30B-2 1 QUARTERLY REPORT MERRILL LYNCH MUNICIPAL BOND FUND, INC. FUND LOGO Quarterly Report March 31, 1997 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. Statements and other information herein are as dated and are subject to change. Merrill Lynch Municipal Bond Fund, Inc. Box 9011 Princeton, NJ 08543-9011 Printed on post-consumer recycled paper 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 Peter J. Hayes, 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 DEAR SHAREHOLDER The Municipal Market Environment Long-term tax-exempt bonds traded in a relatively narrow range during the three-month period ended March 31, 1997 with yields closing the quarter moderately higher. Long-term municipal revenue bond yields, as measured by the Bond Buyer Revenue Bond Index, rose approximately 15 basis points (0.15%) to 6.09% for the three months ended March 31, 1997. Most of the recent rise in interest rates occurred during March as a series of increasingly strong economic indicators culminated in an increase in short-term interest rates by the Federal Reserve Board. During the three months ended March 31, 1997, however, US Treasury bond yields reacted far more negatively to recent economic strength. By March 31, 1997, US Treasury bond yields increased over 45 basis points to approximately 7.10%. As in recent quarters, the municipal bond market's relative outperformance compared to the US Treasury bond market was the result of the tax-exempt bond market's very strong technical position. During the six months ended March 31, 1997, approximately $92 billion in long-term municipal bonds was issued, a decline of nearly 3% compared to the corresponding period a year earlier. In the three months ended March 31, 1997, new-issue supply declined at a far more significant rate. During the March 31, 1997 quarter, approximately $38 billion in new long-term tax-exempt bonds was underwritten, representing a decrease of nearly 10% compared to the March 31, 1996 quarter. No immediate increase in new-issue supply is evident. The recent increase in interest rates had the effect of freezing many issuers who remain both uncertain regarding the near- term direction of interest rates and unable to refinance existing debt since the required savings have disappeared. While overall investor demand declined from levels seen early last year, it remained strong enough to easily absorb the volume seen in recent quarters. Individual retail demand increased in recent weeks as tax-exempt bond yields rose above 6% and the allure of the US equity market diminished. Property/casualty insurance companies remained a particularly visible source of demand in the 15-year--20- year maturity sector. Additionally, while institutional investors were not especially active in recent quarters, managed portfolios appeared reticent to raise large cash reserve positions. Given current supply conditions, the ability to reinvest such large reserves, in a timely fashion, would be very difficult. Going forward, the extent of which interest rates continue to rise depends upon how quickly the increase in interest rates seen thus far in 1997, compounded by the recent Federal Reserve Board action, impacts the domestic economy. In recent years, US economy activity slowed whenever long-term US Treasury bond yields remained above 7% for any appreciable time. While it is difficult to gauge when interest rates will begin to decline, it is likely that little additional increase in bond yields will be necessary to return economic growth to levels acceptable by the Federal Reserve Board. The tax-exempt bond market's technical position is likely to remain strong enough to dampen further interest rate volatility, as it has in recent quarters. This suggests that, in the near term, municipal bonds may continue to trade in a relatively narrow range, rewarding neither an overly aggressive nor defensive portfolio strategy. Portfolio Strategy Insured Portfolio and National Portfolio The Insured Portfolio and National Portfolio remain committed to portfolio management strategies aimed at seeking to achieve high current income and price appreciation. During the March 31, 1997 quarter, we witnessed a volatile fixed-income arena where weekly market swings emerged based on the most recent economic data releases. However, the volatility created opportunity in the form of a fairly well-defined trading range. Long-term municipal bonds traded in a range that yielded between 5.50%--6.00%. Therefore, our strategy has been to capitalize on trading these price swings until economic news leads us to believe that we may break out one way or the other. We expected a short-term resolution that interest rates would move slightly higher. This scenario occurred as the Federal Reserve Board raised interest rates and above-consensus economic growth raised long-term Treasury securities to a more than 7% yield. We are becoming more aggressive in the bond market, extending duration by purchasing discount securities that will perform in an eventual market recovery and declining interest rate environment. Quality remains a concern with any purchases concentrated in higher- rated securities because of extremely tight credit quality spreads. Limited Maturity Portfolio During the March 31, 1997 quarter, the Limited Maturity Portfolio became more defensively positioned as concerns arose over an imminent change in the Federal Reserve Board monetary policy. We raised cash reserves from slightly over 5% to approximately 15% of the Portfolio by the beginning of March, and reduced the average portfolio maturity from 22 months to approximately 18 months. Also, we concentrated purchases on higher-quality securities because of tighter quality spreads, as well as higher-coupon securities which tend to outperform lower-coupon securities in periods of rising interest rates. In Conclusion We appreciate your ongoing interest in Merrill Lynch Municipal Bond Fund, Inc., and we look forward to serving your investment needs in the months and years to come. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Vincent R. Giordano) Vincent R. Giordano Senior Vice President (Kenneth A. Jacob) Kenneth A. Jacob Vice President and Portfolio Manager (Peter J. Hayes) Peter J. Hayes Vice President and Portfolio Manager April 22, 1997 PERFORMANCE DATA About Fund Performance Investors are able to purchase shares of the Fund through the Merrill Lynch Select Pricing SM System, which offers four pricing alternatives: * Class A Shares incur a maximum initial sales charge (front-end load) of 4% and bear no ongoing distribution or account maintenance fees for Insured and National Portfolios. Limited Maturity Portfolio incurs a maximum initial sales charge (front-end load) of 1% and bears no ongoing distribution or account maintenance fees. * Class B Shares are subject to a maximum contingent deferred sales charge of 4% if redeemed during the first year, decreasing 1% each year thereafter to 0% after the fourth year for Insured and National Portfolios. Limited Maturity Portfolio is subject to a maximum contingent deferred sales charge of 1% if redeemed within one year of purchase. In addition, Insured and National Portfolios are subject to a distribution fee of 0.50% and an account maintenance fee of 0.25%. Limited Maturity Portfolio is subject to a distribution fee of 0.20% and an account maintenance fee of 0.15%. All three classes of shares automatically convert to Class D Shares after approximately 10 years. (There is no initial sales charge for automatic share conversions.) * Class C Shares are subject to a distribution fee of 0.55% and an account maintenance fee of 0.25% for Insured and National Portfolios. Limited Maturity Portfolio is subject to a distribution fee of 0.20% and an account maintenance fee of 0.15%. In addition, Class C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. * Class D Shares incur a maximum 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). None of the past results shown should be considered a representation of future performance. Figures shown in the "Average Annual Total Return" tables as well as the total returns and cumulative total returns in the "Performance Summary" tables assume reinvestment of all dividends and capital gains distributions at net asset value on the payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of account maintenance, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. Average Annual Total Returns Insured Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 3/31/97 +4.54% +0.35% Five Years Ended 3/31/97 +6.67 +5.81 Ten Years Ended 3/31/97 +7.04 +6.60 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/97 +3.75% -0.20% Five Years Ended 3/31/97 +5.87 +5.87 Inception (10/21/88) through 3/31/97 +6.64 +6.64 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. % Return % Return Class C Shares* Without CDSC With CDSC** Year Ended 3/31/97 +3.69% +2.71% Inception (10/21/94) through 3/31/97 +6.86 +6.86 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Class D Shares* Sales Charge Sales Charge** Year Ended 3/31/97 +4.28% +0.11% Inception (10/21/94) through 3/31/97 +7.46 +5.68 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. National Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 3/31/97 +6.26% +2.01% Five Years Ended 3/31/97 +7.22 +6.35 Ten Years Ended 3/31/97 +7.14 +6.70 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/97 +5.56% +1.56% Five Years Ended 3/31/97 +6.42 +6.42 Inception (10/21/88) through 3/31/97 +6.88 +6.88 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payments of applicable contingent deferred sales charge. % Return % Return Class C Shares* Without CDSC With CDSC** Year Ended 3/31/97 +5.41% +4.41% Inception (10/21/94) through 3/31/97 +7.56 +7.56 [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** Year Ended 3/31/97 +6.10% +1.85% Inception (10/21/94) through 3/31/97 +8.20 +6.40 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. Limited Maturity Portfolio % Return Without % Return With Class A Shares* Sales Charge Sales Charge** Year Ended 3/31/97 +3.75% +2.71% Five Years Ended 3/31/97 +4.21 +4.00 Ten Years Ended 3/31/97 +4.98 +4.88 [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. % Return % Return Class B Shares* Without CDSC With CDSC** Year Ended 3/31/97 +3.38% +2.38% Inception (11/2/92) through 3/31/97 +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. % Return % Return Class C Shares* Without CDSC With CDSC** Year Ended 3/31/97 +3.25% +2.26% Inception (10/21/94) through 3/31/97 +3.80 +3.80 [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** Year Ended 3/31/97 +3.64% +2.61% Inception (10/21/94) through 3/31/97 +4.22 +3.79 [FN] *Maximum sales charge is 1%. **Assuming maximum sales charge. PERFORMANCE DATA (continued) Performance Summary-- Class A Shares
Beginning/Ending Net Asset Value Dividends Paid* % Change** Period Limited Limited Limited Covered Insured National Maturity Insured National Maturity Insured National Maturity 10/21/77--12/31/77 $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 - 0.77 + 1.17% +0.86% 1980 8.39/6.86 9.60/8.54 9.88/9.74 0.60 0.79 0.64 -11.46 - 3.00 +5.14 1981 6.86/5.66 8.54/7.34 9.74/9.78 0.65 0.90 0.77 - 8.49 - 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 +12.20 +14.04 +5.57 1984 6.97/6.88 9.01/8.96 9.76/9.74 0.65 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 1995 7.43/8.25 9.40/10.44 9.77/9.98 0.45 0.60 0.38 +17.43 +17.83 +6.13 1996 8.25/8.07 10.44/10.33 9.98/9.94 0.45 0.60 0.40 + 3.43 + 4.93 +3.72 1/1/97--3/31/97 8.07/7.88 10.33/10.16 9.94/9.90 0.10 0.14 0.09 - 1.01 - 0.23 +0.57 ------ ------ ----- Total $11.54 $14.31 $9.73 Cumulative total return as of 3/31/97: +262.22%** +365.46%** +169.14%** *Figures may include short-term capital gains distributions. **Figures do not include sales charges; results would be lower if sales charge was included. ++For National and Limited Maturity Portfolios, period covered is from 11/02/79 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 Summary-- Class B Shares
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 1995 7.43/8.24 9.39/10.44 9.77/9.98 0.39 0.52 0.34 +16.41 +17.07 +5.75 1996 8.24/8.07 10.44/10.33 9.98/9.94 0.39 0.52 0.37 + 2.77 + 4.14 +3.35 1/1/97--3/31/97 8.07/7.87 10.33/10.16 9.94/9.90 0.09 0.12 0.08 - 1.32 - 0.41 +0.48 ----- ----- ----- Total $4.31 $5.77 $1.54 Cumulative total return as of 3/31/97: +72.01%** +75.30%** +16.52%** *Figures may include short-term capital gains distributions. **Figures do not reflect deduction of any sales charges; results would be lower if sales charge was deducted. ***Limited Maturity Portfolio commenced operations on 11/02/92. (1)Includes capital gains of $0.064 for the Insured Portfolio. (2)Includes capital gains of $0.058 and $0.060 for the Insured and National Portfolios, respectively. (3)Includes capital gains of $0.084 and $0.130 for the Insured and National Portfolios, respectively. (4)Includes capital gains of $0.181 and $0.157 for the Insured and National Portfolios, respectively. (5)Includes capital gains of $0.141 and $0.209 for the Insured and National Portfolios, respectively.
Performance Summary-- Class C Shares
Beginning/Ending Net Asset Value Dividends Paid* % Change** Period Limited Limited Limited Covered Insured National Maturity Insured National Maturity Insured National Maturity 10/21/94--12/31/94 $7.68/7.43 $ 9.85/9.40 $ 9.83/9.77 $0.22(1) $0.31(1) $0.07 - 0.41% - 1.39% +0.11% 1995 7.43/8.25 9.40/10.44 9.77/10.00 0.38 0.52 0.34 +16.50 +16.89 +5.92 1996 8.25/8.07 10.44/10.33 10.00/9.91 0.38 0.52 0.36 + 2.59 + 4.09 +2.80 1/1/97--3/31/97 8.07/7.88 10.33/10.16 9.91/9.87 0.09 0.12 0.08 - 1.21 - 0.43 +0.48 ----- ----- ----- Total $1.07 $1.47 $0.85 Cumulative total return as of 3/31/97: +17.59%** +19.47%** +9.54%** *Figures may include short-term capital gains distributions. **Figures do not reflect deduction of any sales charges; results would be lower if sales charge was deducted. (1)Includes capital gains of $0.141 and $0.209 for the Insured and National Portfolios, respectively.
PERFORMANCE DATA (concluded) Performance Summary-- Class D Shares
Beginning/Ending Net Asset Value Dividends Paid* % Change** Period Limited Limited Limited Covered Insured National Maturity Insured National Maturity Insured National Maturity 10/21/94--12/31/94 $7.68/7.43 $ 9.85/9.40 $9.83/9.77 $0.23(1) $0.32(1) $0.07 - 0.30% - 1.29% +0.13% 1995 7.43/8.25 9.40/10.45 9.77/9.98 0.43 0.57 0.37 +17.14 +17.65 +6.03 1996 8.25/8.07 10.45/10.34 9.98/9.94 0.43 0.58 0.39 + 3.17 + 4.67 +3.62 1/1/97--3/31/97 8.07/7.88 10.34/10.17 9.94/9.90 0.10 0.13 0.09 - 1.07 - 0.29 +0.55 ------ ------ ------ Total $1.19 $1.60 $0.92 Cumulative total return as of 3/31/97: +19.20%** +21.21%** +10.61%** *Figures may include short-term capital gains distributions. **Figures do not include sales charges; results would be lower if sales charge was included. (1)Includes capital gains of $0.141 and $0.209 for the Insured and National Portfolios, respectively.
Recent Performance Results*
12 Month 3 Month Standardized 3/31/97 12/31/96 3/31/96 % Change % Change 30-Day Yield Insured Portfolio Class A Shares $ 7.88 $ 8.07 $ 7.97 -1.13% -2.35% 4.92% Insured Portfolio Class B Shares 7.87 8.07 7.96 -1.13 -2.48 4.36 Insured Portfolio Class C Shares 7.88 8.07 7.97 -1.13 -2.35 4.31 Insured Portfolio Class D Shares 7.88 8.07 7.97 -1.13 -2.35 4.68 National Portfolio Class A Shares 10.16 10.33 10.14 +0.20 -1.65 5.03 National Portfolio Class B Shares 10.16 10.33 10.13 +0.30 -1.65 4.46 National Portfolio Class C Shares 10.16 10.33 10.14 +0.20 -1.65 4.41 National Portfolio Class D Shares 10.17 10.34 10.14 +0.30 -1.64 4.78 Limited Maturity Portfolio Class A Shares 9.90 9.94 9.94 -0.40 -0.40 3.66 Limited Maturity Portfolio Class B Shares 9.90 9.94 9.94 -0.40 -0.40 3.34 Limited Maturity Portfolio Class C Shares 9.87 9.91 9.92 -0.50 -0.40 3.32 Limited Maturity Portfolio Class D Shares 9.90 9.94 9.94 -0.40 -0.40 3.56 Insured Portfolio Class A Shares--Total Return +4.54(1) -1.01(2) Insured Portfolio Class B Shares--Total Return +3.75(3) -1.32(4) Insured Portfolio Class C Shares--Total Return +3.69(5) -1.21(6) Insured Portfolio Class D Shares--Total Return +4.28(7) -1.07(8) National Portfolio Class A Shares--Total Return +6.26(9) -0.23(10) National Portfolio Class B Shares--Total Return +5.56(11) -0.41(12) National Portfolio Class C Shares--Total Return +5.41(13) -0.43(14) National Portfolio Class D Shares--Total Return +6.10(15) -0.29(16) Limited Maturity Portfolio Class A Shares--Total Return +3.75(17) +0.57(18) Limited Maturity Portfolio Class B Shares--Total Return +3.38(19) +0.48(20) Limited Maturity Portfolio Class C Shares--Total Return +3.25(21) +0.48(20) Limited Maturity Portfolio Class D Shares--Total Return +3.64(22) +0.55(4) *Investment results shown do not reflect sales charges; results shown would be lower if a sales charge was included. (1)Percent change includes reinvestment of $0.445 per share ordinary income dividends. (2)Percent change includes reinvestment of $0.101 per share ordinary income dividends. (3)Percent change includes reinvestment of $0.384 per share ordinary income dividends. (4)Percent change includes reinvestment of $0.087 per share ordinary income dividends. (5)Percent change includes reinvestment of $0.380 per share ordinary income dividends. (6)Percent change includes reinvestment of $0.086 per share ordinary income dividends. (7)Percent change includes reinvestment of $0.425 per share ordinary income dividends. (8)Percent change includes reinvestment of $0.096 per share ordinary income dividends. (9)Percent change includes reinvestment of $0.600 per share ordinary income dividends. (10)Percent change includes reinvestment of $0.135 per share ordinary income dividends. (11)Percent change includes reinvestment of $0.522 per share ordinary income dividends. (12)Percent change includes reinvestment of $0.118 per share ordinary income dividends. (13)Percent change includes reinvestment of $0.517 per share ordinary income dividends. (14)Percent change includes reinvestment of $0.117 per share ordinary income dividends. (15)Percent change includes reinvestment of $0.574 per share ordinary income dividends. (16)Percent change includes reinvestment of $0.130 per share ordinary income dividends. (17)Percent change includes reinvestment of $0.405 per share ordinary income dividends. (18)Percent change includes reinvestment of $0.089 per share ordinary income dividends. (19)Percent change includes reinvestment of $0.369 per share ordinary income dividends. (20)Percent change includes reinvestment of $0.081 per share ordinary income dividends. (21)Percent change includes reinvestment of $0.366 per share ordinary income dividends. (22)Percent change includes reinvestment of $0.395 per share ordinary income dividends.
PORTFOLIO COMPOSITION For the Quarter Ended March 31, 1997 Insured Portfolio Top Ten States* Illinois 15.59% Texas 12.93 New York 9.90 Pennsylvania 5.06 Massachusetts 4.65 Georgia 4.40 Wisconsin 4.30 Virginia 3.48 New Jersey 3.43 Hawaii 3.41 ------- Total Top Ten 67.15 Total Others 32.85 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1997 were $2,069,922,909. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart depicting quality ratings of the fund's investments. AAA/Aaa 96% Other++ 4% [FN] *Based on total market value of the Portfolio as of March 31, 1997. ++Temporary investments in short-term municipal securities. National Portfolio Top Ten States* Texas 17.21% New York 10.59 Florida 6.10 Georgia 5.27 Massachusetts 5.10 Pennsylvania 4.75 Illinois 4.48 Louisiana 4.38 Washington 4.33 California 3.81 ------- Total Top Ten 66.02 Total Others 33.98 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1997 were $1,486,527,471. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart depicting quality ratings of the fund's investments. AAA/Aaa 49% AA/Aa 19% A/A 7% BBB/Baa 16% BB/Ba 2% B/B 1% Other++ 2% NR+++ 8% [FN] *Based on total market value of the Portfolio as of March 31, 1997. ++Temporary investments in short-term municipal securities. +++Not Rated. Limited Maturity Portfolio Top Ten States* Ohio 12.38% Illinois 10.88 New York 10.73 Utah 7.66 Texas 6.41 Wisconsin 5.98 Louisiana 5.50 Michigan 4.47 Washington 4.32 Pennsylvania 3.81 ------- Total Top Ten 72.14 Total Others 27.86 ------- Total Portfolio 100.00% ======= Net assets as of March 31, 1997 were $444,433,059. Quality Ratings* (Based on Nationally Recognized Rating Services) A pie chart depicting quality ratings of the fund's investments. MIG++1/SP-1 2% AAA/Aaa 33% AA/AA 30% A/A 16% BBB/Baa 4% Other++++ 8% NR+++ 7% [FN] *Based on total market value of the Portfolio as of March 31, 1997. ++Highest short-term rating by Moody's Investors Service, Inc. ++++Temporary investments in short-term municipal securities. +++Not Rated. -----END PRIVACY-ENHANCED MESSAGE-----