Bond Fund Of America N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-02444

The Bond Fund of America, Inc.

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: December 31

Date of reporting period: June 30, 2009

Kimberly S. Verdick

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

[logo - American Funds®]

The right choice for the long term®

The Bond Fund of America

[photo of an outside view looking in of windows of an office building]

Semi-annual report for the six months ended June 30, 2009

The Bond Fund of AmericaSM seeks as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations.

This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2009:

Class A shares	1 year			5 years			10 years
Reflecting 3.75% maximum sales charge		–8.41	%		1.26	%		3.91	%

The total annual fund operating expense ratio was 0.67% for Class A shares for the 12 months ended June 30, 2009.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 28 to 33 for details.

The fund’s 30-day yield for Class A shares as of July 31, 2009, calculated in accordance with the Securities and Exchange Commission formula, was 4.63%. The fund’s distribution rate for Class A shares as of that date was 5.89%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Results for other share classes can be found on page 4.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations; political and social instability; differing securities regulations and accounting standards; higher transaction costs; possible changes in taxation; and illiquidity. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

[photo of an outside night view into windows of an office building]

Fellow shareholders:

The first half of the current fiscal year delivered significant improvements to a bond market beleaguered by bad mortgages and worrisome debt levels. Nearly every sector of the market, save Treasuries, recorded gains, reversing trends that hampered returns during the last half of 2008.

The Bond Fund of America produced a total return of 7.1% for the six months ended June 30, 2009. This was well in excess of the Barclays Capital U.S. Aggregate Index, which recorded a 1.9% return. Fund results also topped its peer group measure, the Lipper Corporate Debt A-Rated Bond Funds Average, which tallied a 6.6% return. Results for longer time periods are shown in the table below.

A portion of the fund’s return comes from income generated by portfolio holdings. For the six-month period, shareholders received monthly dividends totaling about 29 cents a share. This amounts to an income return of approximately 2.8% for those who reinvested dividends, or about 5.6% if annualized.

[Begin Sidebar]

Results at a glance
For periods ended June 30, 2009, with all distributions reinvested
	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime
										(since 5/28/74)
The Bond Fund of America
(Class A shares)		–4.84	%		2.04	%		4.31	%		8.36	%
Barclays Capital U.S. Aggregate
Index*		6.05			5.01			5.98			8.44
Lipper Corporate Debt A-Rated
Bond Funds Average†		0.42			2.83			4.61			8.12
*The unmanaged Lehman Brothers U.S. Aggregate Index began on January 1, 1976, and was renamed the Barclays Capital U.S. Aggregate Index in 2008. From May 28, 1974, through December 31, 1975, the Barclays Capital U.S. Government/Credit Index was used.
† Source: Lipper. Lipper averages do not include the effect of sales charges.

[End Sidebar]

Shareholder income during the second half of the year, however, will be meaningfully lower because of the impact of short-term rates remaining at virtually zero, lower yields on corporate bonds and securitized assets, and the fund’s increased exposure to higher quality (lower yielding) securities. As a result, the fund’s dividend has been reduced over the past six months. Effective with the July payment, the accrued monthly dividend will be 3.85 cents a share.

Bond market overview

What a difference six months make. Investor worries stemming from the global financial crisis nearly paralyzed the bond market last autumn. In 2009, however, these concerns abated somewhat as the federal government aggressively bolstered troubled financial institutions, intervened to stem the rise of problem mortgages and provided stimuli to blunt the impact of the ongoing recession. As a result, conditions in the bond market improved steadily, and prices for many securities improved significantly.

In general, sectors of the market that were most impaired by the downturn last autumn recorded some of the best returns for the first half of 2009. These included high-yield debt, investment-grade corporate bonds, commercial mortgage-backed securities and portions of the asset-backed sector. Within the corporate sector, bonds of financial companies generally produced good results, but industrial and utility issuers recorded stronger gains overall.

Federal agency mortgage-backed obligations, which had held up well during the market downturn, posted modestly positive results during the first half but lagged the sectors previously mentioned.

In contrast to most other sectors, Treasury bonds recorded negative results for the reporting period. Treasuries had soared in value during the last half of 2008 but began to weaken in 2009 as yields rose on intermediate and longer dated maturities. (Remember: A bond’s price and its yield move in opposite directions.) Yields on seven-year and longer Treasuries rose more than a percentage point during the first half of 2009.

How the fund responded
The portfolio counselors of The Bond Fund of America took advantage of improvements in the bond market to bolster the credit quality of the portfolio and to reduce exposure to higher risk securities. Although portfolio counselors do not expect a repeat of conditions that mired the bond market last year, they remain concerned about the extent of problem loans and mortgages and have sought to buffer the portfolio against additional volatility and shocks to the market.

With this in mind, the portfolio counselors have increased the fund’s weighting in U.S. government bonds (Treasuries and federal agencies) to 27.5% from 14.1% at the start of the period. At the same time, they trimmed exposure to credit-sensitive sectors, including corporate bonds (mainly financial issuers), asset-backed obligations and bonds of governments and government agencies outside the United States. They also modestly reduced the fund’s exposure to mortgage-backed obligations. The pie chart atop the summary investment portfolio on page 5 provides a breakdown of the portfolio’s exposure to various sectors of the bond market as of June 30.

Overall, the fund maintained a broad exposure to the market, with more than 2,100 individual debt holdings. These holdings reflect the ongoing recommendations of our investment analysts, while the mix of securities reflects the investment convictions of the fund’s portfolio counselors.

Looking ahead

While the bond market has rebounded impressively from the 2008 decline, challenges remain for some issuers and investors alike. Though many issuers have taken advantage of ready access to the credit markets in recent months in order to strengthen their balance sheets, some parts of the bond market still labor under the weight of the recession. Problem loans and difficulties in parts of the mortgage and asset-backed sectors still impact lenders and investors. Additionally, investors have growing concerns about when and how the government will begin to reduce and exit the various programs that it put in place to support the credit markets.

In the midst of this tentative recovery, we relied heavily on our research capabilities and the ability of the fund to access every segment of the bond market. Even in this unsettled environment, we continued to find attractive investment opportunities. Additionally, we have taken steps to help preserve shareholder principal by increasing our exposure to asset classes that have been less volatile over time.

Finally, we take this opportunity to welcome the many new shareholders who have joined the fund this year, and we thank those who have stood with us through last year’s difficult market. We appreciate your confidence in our efforts and look forward to reporting to you again at the end of the year.

Cordially,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.

Vice Chairman of the Board

/s/ Abner D. Goldstine

Abner D. Goldstine

President

August 7, 2009

For current information about the fund, visit americanfunds.com.

Other share class results

Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended June 30, 2009:
							Life
	1 year			5 years			of class
Class B shares1 — first sold 3/15/00
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		–10.00	%		0.97	%		3.68	%
Not reflecting CDSC		–5.54			1.29			3.68
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		–6.47			1.24			3.01
Not reflecting CDSC		–5.58			1.24			3.01
Class F-1 shares2 first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm		–4.83			2.05			3.81
Class F-2 shares2 — first sold 8/4/08
Not reflecting annual asset-based fee charged by
sponsoring firm		—			—			–3.11	3
Class 529-A shares4 — first sold 2/15/02
Reflecting 3.75% maximum sales charge		–8.45			1.21			3.17
Not reflecting maximum sales charge		–4.88			2.00			3.71
Class 529-B shares1,4 — first sold 2/15/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		–10.10			0.83			2.84
Not reflecting CDSC		–5.64			1.15			2.84
Class 529-C shares4 — first sold 2/19/02
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		–6.53			1.17			2.88
Not reflecting CDSC		–5.63			1.17			2.88
Class 529-E shares2,4 — first sold 3/7/02		–5.15			1.69			3.42
Class 529-F-1 shares2,4 — first sold 9/26/02
Not reflecting annual asset-based fee charged by
sponsoring firm		–4.68			2.15			4.05

1These shares are no longer available for purchase.

2These shares are sold without any initial or contingent deferred sales charge.

3Results are cumulative total returns; they are not annualized.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 28 to 33 for details.

For information regarding the differences among the various share classes, please refer to the fund’s prospectus.

Summary investment portfolio, June 30, 2009

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings.  For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

[begin pie chart]

Industry sector diversification (percent of net assets)
Corporate bonds & notes	33.74	%
Bonds & notes of U.S. government & government agencies	27.52
Mortgage-backed obligations	23.93
Bonds & notes of governments & government agencies outside the U.S.	4.04
Asset-backed obligations	3.93
Preferred securities	1.84
Municipals	0.66
Convertible securities	0.11
Common stocks & warrants	0.04
Short-term securities & other assets less liabilities	4.19

[end pie chart]

Portfolio quality summary (percent of net assets)*
U.S. government obligations†	25.6	%
Federal agencies	18.8
AAA	9.8
AA	4.5
A	12.9
BBB	17.0
BB	2.8
B	2.4
CCC or less	2.0
Short-term securities & other assets less liabilities	4.2
Bond ratings are generally issued by independent rating agencies and are designed to provide an indication of an issuer's creditworthiness. Please see the fund's most recent statement of additional information for details.
* Bond ratings reflect those of a credit rating agency; if ratings are not available, they are assigned by the fund's investment analysts.
† These securities are guaranteed by the full faith and credit of the United States government.

	Principal						Percent
	amount			Value			of net
Bonds & notes - 93.82%		(000	)		(000	)	assets
Corporate bonds & notes - 33.74%
Financials - 9.92%
Other securities				$	3,759,941			9.92	%
Consumer discretionary - 4.48%
Other securities					1,697,666			4.48
Telecommunication services - 3.49%
Verizon Communications Inc. 3.75% 2011 (1)	$	111,950			114,293			.30
Other securities					1,208,791			3.19
					1,323,084			3.49
Energy - 3.39%
Other securities					1,282,476			3.39
Utilities - 3.25%
Other securities					1,231,952			3.25
Industrials - 3.12%
Other securities					1,180,998			3.12
Health care - 2.88%
Other securities					1,090,199			2.88
Other corporate bonds & notes - 3.21%
Other securities					1,218,926			3.21
Total corporate bonds & notes					12,785,242			33.74
Bonds & notes of U.S. government & government agencies - 27.52%
U.S. Treasury:
2.00% 2010		124,125			125,439
1.125% 2011		112,705			112,160
1.75% 2011		652,130			659,134
4.625% 2011		290,400			313,972
2.00% 2013		249,840			246,220
2.75% 2013		132,160			134,633
3.375% 2013		142,760			149,630
4.25% 2013		604,036			653,301
1.75% 2014		550,090			534,682
1.875% 2014		185,975			181,188
1.875% 2014		100,000			97,051
2.25% 2014		282,500			278,748
4.25% 2014		161,875			174,364
4.25% 2015		134,000			143,684
11.25% 2015		133,500			192,631
2.375% 2016		267,400			254,864
2.625% 2016		349,000			337,507
3.25% 2016		209,280			210,163
4.50% 2017		228,250			246,384
4.625% 2017		180,925			196,912
3.50% 2018		658,870			662,270
3.75% 2018		605,075			615,615
3.875% 2018		171,505			176,763
2.75% 2019		717,085			671,708
3.125% 2019		363,090			351,148
6.875% 2025		93,610			122,702
4.50% 2036		260,960			269,115
4.375% 2038		106,895			108,047
0%-8.875% 2010-2039 (2)  (3)		1,122,830			1,255,479			25.01
Fannie Mae:
1.75% 2011		143,210			144,530
2.50%-6.125% 2012-2017		126,500			128,589			.72
Freddie Mac 1.75%-5.50% 2010-2016		230,990			236,264			.62
Federal Home Loan Bank 3.625%-5.375% 2012-2016		133,000			141,551			.37
Other securities					301,738			.80
					10,428,186			27.52
Mortgage-backed obligations - 23.93%
Federal agency mortgage-backed obligations (4) - 16.86%
Fannie Mae:
4.00% 2024		210,420			210,836
4.00% 2024		165,832			166,117
4.00% 2024		138,853			139,092
5.00% 2036		118,249			120,781
6.00% 2037		120,194			125,812
5.00% 2039		97,774			99,710
0%-12.01% 2009-2047 (5)		3,637,533			3,773,844			12.24
Freddie Mac:
6.00% 2027		148,398			155,951
6.00% 2038		126,842			132,625
0%-11.00% 2009-2047   (3)  (5)		1,203,321			1,248,173			4.05
Government National Mortgage Assn. 6.00% 2038		142,725			148,958			.39
Other securities					66,577			.18
					6,388,476			16.86
Commercial mortgage-backed securities (4) - 4.19%
Fannie Mae 4.491%-7.30% 2010-2012		151,325			158,598			.42
Other securities					1,428,406			3.77
					1,587,004			4.19
Collateralized mortgage-backed obligations (privately originated) - 2.30%
Other securities					872,093			2.30
Other mortgage-backed securities - 0.58%
Other securities					218,035			.58
Total mortgage-backed obligations					9,065,608			23.93
Bonds & notes of governments & government agencies outside the U.S. - 4.04%
German Government, Series 8, 4.25% 2018	€	127,690			192,684			.51
United Kingdom 4.50% 2019	£	58,910			103,185			.27
Other securities					1,233,824			3.26
					1,529,693			4.04
Asset-backed obligations (4) - 3.93%
AmeriCredit Automobile Receivables Trust, Series 2007-A-X, Class A-4, XLCA insured, 0.358% 2013 (5)	$	125,000			105,064			.28
Other securities					1,384,205			3.65
					1,489,269			3.93
Municipals - 0.66%
Other securities					250,004			.66
Total bonds & notes (cost: $37,343,711,000)					35,548,002			93.82
							Percent
				Value			of net
Convertible securities - 0.11%	Shares				(000	)	assets
Other - 0.11%
Fannie Mae, Series 2004-1, 5.375% convertible preferred		400			400			.00
Other securities					42,827			.11
Total convertible securities (cost: $77,535,000)					43,227			.11
							Percent
				Value			of net
Preferred securities - 1.84%	Shares				(000	)	assets
Financials - 1.84%
JPMorgan Chase & Co., Series I, 7.90% (5)		114,250,000			100,258			.26
Fannie Mae, Series O, 7.00% (1) (5)		4,825,230			8,686
Fannie Mae, Series R, 7.625%		382,800			445			.02
Freddie Mac, Series Z, 8.375% (6)		2,663,885			3,097
Freddie Mac, Series V, 5.57% (6)		3,356,231			3,096
Freddie Mac, Series W, 5.66% (6)		1,548,000			1,537
Freddie Mac, Series F, 5.00% (6)		294,375			412
Freddie Mac, Series U, 5.90% (6)		496,600			397
Freddie Mac, Series Y, 6.55% (6)		374,269			307			.02
Other securities					577,151			1.54
					695,386			1.84
U.S. government agency securities - 0.00%
Other securities					1,844			.00
Total preferred securities (cost: $1,211,882,000)					697,230			1.84
							Percent
				Value			of net
Common stocks - 0.04%					(000	)	assets
Other - 0.04%
Other securities					12,819			.04
Total common stocks (cost: $49,539,000)					12,819			.04
							Percent
				Value			of net
Warrants - 0.00%					(000	)	assets
Other - 0.00%
Other securities					-			.00
Total warrants (cost: $143,000)					-			.00
	Principal						Percent
	amount			Value			of net
Short-term securities - 4.43%		(000	)		(000	)	assets
Federal Home Loan Bank 0.16%-0.44% due 7/1-12/2/2009	$	512,450			512,236			1.35
U.S. Treasury Bills 0.19%-0.355% due 7/2-9/24/2009		216,600			216,559			.57
Abbott Laboratories 0.20%-0.23% due 7/1-9/29/2009 (1)		141,526			141,477			.37
Park Avenue Receivables Co., LLC 0.26% due 7/13/2009 (1)		60,100			60,094
Jupiter Securitization Co., LLC 0.25% due 7/14/2009 (1)		50,000			49,995			.29
Merck & Co. Inc. 0.20%-0.25% due 7/17-7/28/2009		104,400			104,388			.28
Procter & Gamble International Funding S.C.A. 0.18%-0.20% due 7/13-8/24/2009 (1)		95,900			95,886			.25
NetJets Inc. 0.21% due 8/5/2009 (1)		95,000			94,980			.25
Freddie Mac 0.17%-0.20% due 8/10-9/28/2009		10,100			10,096			.03
Fannie Mae 0.17% due 7/23/2009		250			250			.00
Other securities					393,954			1.04
Total short-term securities (cost: $1,679,870,000)					1,679,915			4.43
Total investment securities (cost: $40,362,680,000)					37,981,193			100.24
Other assets less liabilities					(90,587	)		(.24	)
Net assets				$	37,890,606			100.00	%

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. One of these securities (with aggregate value of $3,905,000, which represented .01% of the net assets of the fund) may be subject to legal or contractual restrictions on resale.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company. The value of the fund's holdings in affiliated companies is included in "Other securities" under their respective industry sectors in the preceding summary investment portfolio.  Further details on these holdings and related transactions during the six months ended June 30, 2009, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend income (000	)		Value of affiliates at 6/30/09 (000	)
ZiLOG, Inc. (6)		879,000		-		-		879,000	-		$	2,092
Clarent Hospital Corp. (3)  (6)		331,291		-		-		331,291	-			17
									-		$	2,109

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

(1) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $5,422,332,000, which represented 14.31% of the net assets of the fund.

(2) Index-linked bond whose principal amount moves with a government retail price index.

(3) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in "Other securities," was $479,894,000, which represented 1.27% of the net assets of the fund.

(4) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

(5) Coupon rate may change periodically.

(6) Security did not produce income during the last 12 months.

Key to symbols

€ = Euros

£ = British pounds

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at June 30, 2009	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $40,346,836)	$	37,979,084
Affiliated issuers (cost: $15,844)		2,109	$	37,981,193
Cash				8,849
Unrealized appreciation on open forward currency contracts				447
Receivables for:
Sales of investments		142,024
Sales of fund's shares		112,372
Closed forward currency contracts		757
Dividends and interest		392,426		647,579
				38,638,068
Liabilities:
Unrealized depreciation on open forward currency contracts				66,417
Payables for:
Purchases of investments		535,568
Repurchases of fund's shares		81,440
Dividends on fund's shares		21,790
Closed forward currency contracts		17,776
Investment advisory services		7,157
Services provided by affiliates		15,952
Directors' deferred compensation		307
Other		1,055		681,045
Net assets at June 30, 2009			$	37,890,606
Net assets consist of:
Capital paid in on shares of capital stock			$	43,960,472
Distributions in excess of net investment income				(57,012	)
Accumulated net realized loss				(3,566,648	)
Net unrealized depreciation				(2,446,206	)
Net assets at June 30, 2009			$	37,890,606

(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 5,000,000 shares, $.001 par value (3,380,732 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
Class A	$	25,722,349		2,295,038	$	11.21
Class B		1,282,761		114,452		11.21
Class C		2,901,289		258,863		11.21
Class F-1		3,099,181		276,520		11.21
Class F-2		607,844		54,234		11.21
Class 529-A		653,404		58,299		11.21
Class 529-B		80,861		7,215		11.21
Class 529-C		317,600		28,337		11.21
Class 529-E		35,578		3,174		11.21
Class 529-F-1		32,391		2,890		11.21
Class R-1		98,092		8,752		11.21
Class R-2		705,616		62,958		11.21
Class R-3		1,027,649		91,690		11.21
Class R-4		758,933		67,715		11.21
Class R-5		443,758		39,594		11.21
Class R-6		123,300		11,001		11.21
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $11.65 each.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended June 30, 2009	(dollars in thousands)
Investment income:
Income:
Interest	$	1,033,379
Dividends		7,070		$	1,040,449
Fees and expenses*:
Investment advisory services		42,374
Distribution services		60,125
Transfer agent services		17,724
Administrative services		9,161
Reports to shareholders		1,432
Registration statement and prospectus		1,432
Directors' compensation		258
Auditing and legal		111
Custodian		303
State and local taxes		264
Other		1,658			134,842
Net investment income					905,607
Net realized loss and unrealized appreciation on investments,
forward currency contracts and currency:
Net realized (loss) gain on:
Investments (net of non-U.S. taxes of $55)		(1,805,862	)
Forward currency contracts		15,993
Currency transactions		(8,477	)		(1,798,346	)
Net unrealized appreciation (depreciation) on:
Investments		3,372,524
Forward currency contracts		(28,126	)
Currency translations		2,675			3,347,073
Net realized loss and unrealized appreciation
on investments, forward currency contracts and currency					1,548,727
Net increase in net assets resulting from operations				$	2,454,334
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets		(dollars in thousands)
	Six months			Year ended
	ended June 30, 2009*			December 31, 2008
Operations:
Net investment income	$	905,607		$	2,017,552
Net realized loss on investments, forward currency contracts and currency transactions		(1,798,346	)		(1,215,405	)
Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations		3,347,073			(5,526,626	)
Net increase (decrease) in net assets resulting from operations		2,454,334			(4,724,479	)
Dividends paid or accrued to shareholders from net investment income		(920,031	)		(2,153,748	)
Net capital share transactions		4,168,292			3,247,995
Total increase (decrease) in net assets		5,702,595			(3,630,232	)
Net assets:
Beginning of period		32,188,011			35,818,243
End of period (including distributions in excess of net investment income: $(57,012) and $(42,588), respectively)	$	37,890,606		$	32,188,011
*Unaudited.
See Notes to Financial Statements

Notes to financial statements                    

                                                                                   & #160;             unaudited

1. Organization and significant accounting policies

Organization – The Bond Fund of America, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 3.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4,  R-5 and R-6	None	None	None

*Effective April 21, 2009, Class B and 529-B shares of the fund are no longer available for purchase.

On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for more details.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Net asset value – The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades.Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from one or more independent pricing vendors when such prices are available. However, where the investment adviser deems it appropriate to do so, such securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Vendors base bond prices on, among other things, valuation matrices that incorporate dealer-supplied valuations, proprietary pricing models and evaluations of the yield curve as of approximately 3:00 p.m. New York time. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. Forward currency contracts are valued at the mean of representative quoted bid and asked prices.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of directors. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders – Dividends paid to shareholders are declared daily from net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

Loan transactions – The fund may enter into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal. Risks may arise due to the delayed settlement date of the loan transaction and the ability of the agent and/or borrower to meet the obligations of the loan.

2. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

The values of, and the income generated by, most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund's portfolio generally will decline when interest rates rise and increase when interest rates fall. In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality or longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality or shorter maturity debt securities. The fund's investment adviser attempts to reduce these risks through diversification of the portfolio and ongoing credit analysis, as well as by monitoring economic and legislative developments, but there can be no assurance that it will be successful at doing so.

Many types of debt securities, including mortgage-related securities, are subject to prepayment risk. For example, when interest rates fall, homeowners are more likely to refinance their home mortgages and "prepay" their principal earlier than expected. The fund must then reinvest the prepaid principal in new securities when interest rates on new mortgage investments are falling, thus reducing the fund’s income.

A security backed by the U.S. Treasury or the full faith and credit of the U.S. government is guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market prices for these securities will fluctuate with changes in interest rates.

The fund may also invest in debt securities and mortgage-backed securities issued by federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government. These securities are neither issued nor guaranteed by the U.S. Treasury.

Although all securities in the fund's portfolio may be adversely affected by currency fluctuations or global economic, political or social instability, securities issued by entities based outside the U.S. may be affected to a greater extent.

3. Taxation and distributions                                                                                     

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended June 30, 2009, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2005, by state tax authorities for tax years before 2004 and by tax authorities outside the U.S. for tax years before 2004.

Non-U.S. taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Realized and unrealized gains on securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on realized and unrealized gains to provide for potential non-U.S. taxes payable on these securities.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of December 31, 2008, the components of distributable earnings on a tax basis were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	39,042
Post-October currency loss deferrals (realized during the period November 1, 2008, through December 31, 2008)*					(113,391	)
Capital loss carryforwards†:
Expiring 2010	$	(125,233	)
Expiring 2011		(243,982	)
Expiring 2014		(69,196	)
Expiring 2016		(959,389	)		(1,397,800	)
Post-October capital loss deferrals (realized during the period November 1, 2008, through December 31, 2008)*					(330,710	)
*These deferrals are considered incurred in the subsequent year.
†The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.

As of June 30, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	679,628
Gross unrealized depreciation on investment securities		(3,184,460	)
Net unrealized depreciation on investment securities		(2,504,832	)
Cost of investment securities		40,486,025

Ordinary income distributions paid or accrued to shareholders from net investment income and currency gains were as follows (dollars in thousands):

Share class	Six months ended June 30, 2009		Year ended December 31, 2008
Class A	$	643,265	$	1,505,354
Class B		29,338		77,235
Class C		59,371		136,921
Class F-1		75,701		183,086
Class F-2*		6,284		1,971
Class 529-A		15,910		34,549
Class 529-B		1,726		4,096
Class 529-C		6,447		14,236
Class 529-E		805		1,715
Class 529-F-1		809		1,624
Class R-1		2,153		4,662
Class R-2		14,810		35,404
Class R-3		24,857		59,775
Class R-4		19,518		47,010
Class R-5		18,040		46,110
Class R-6†		997		-
Total	$	920,031	$	2,153,748
*Class F-2 was offered beginning August 1, 2008.
†Class R-6 was offered beginning May 1, 2009.

4. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company® ("AFS"), the fund’s transfer agent, and American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.11% on such assets in excess of $36 billion. The agreement also provides for monthly fees, accrued daily, based on a declining series of rates beginning with 2.25% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.75% on such income in excess of $41,666,667. For the six months ended June 30, 2009, the investment advisory services fee was $42,374,000, which was equivalent to an annualized rate of 0.248% of average daily net assets.

Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted on the following page. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of June 30, 2009, unreimbursed expenses subject to reimbursement totaled $4,772,000 for Class A. There were no unreimbursed expenses subject to reimbursement for Class 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.25%	0.25%
Class 529-A	0.25	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described on the previous page for the six months ended June 30, 2009, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$29,253	$16,859	Not applicable	Not applicable	Not applicable
Class B	6,182	865	Not applicable	Not applicable	Not applicable
Class C	12,683	Included in administrative services	$1,904	$339	Not applicable
Class F-1	3,406		1,862	172	Not applicable
Class F-2	Not applicable		149	14	Not applicable
Class 529-A	629		309	61	$292
Class 529-B	372		39	14	37
Class 529-C	1,390		147	43	139
Class 529-E	78		16	3	14
Class 529-F-1	-		15	3	16
Class R-1	452		60	24	Not applicable
Class R-2	2,409		482	1,130	Not applicable
Class R-3	2,384		696	339	Not applicable
Class R-4	887		513	13	Not applicable
Class R-5	Not applicable		299	7	Not applicable
Class R-6*	Not applicable		10	- †	Not applicable
Total	$60,125	$17,724	$6,501	$2,162	$498

*Class R-6 was offered beginning May 1, 2009.

†Amount less than one thousand.

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMCmay elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $258,000, shown on the accompanying financial statements, includes $232,000 in current fees (either paid in cash or deferred) and a net increase of $26,000 in the value of the deferred amounts.

Affiliated officers and directors – Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.

5. Disclosure of fair value measurements

The fund classifies its assets and liabilities into three levels based on the method used to value the assets or liabilities.Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of June 30, 2009 (dollars in thousands):

Investment securities:	Level 1		Level 2			Level 3		Total
Bonds & notes:
Corporate bonds & notes	$	-	$	12,688,020		$	97,222	$	12,785,242
Bonds & notes of U.S. government & government agencies		-		10,428,186			-		10,428,186
Mortgage-backed obligations		-		8,835,426			230,182		9,065,608
Bonds & notes of governments & government agencies outside the U.S.		-		1,529,693			-		1,529,693
Asset-backed obligations		-		1,472,100			17,169		1,489,269
Municipals		-		250,004			-		250,004
Convertible securities		-		43,227			-		43,227
Preferred securities		44,399		652,831			-		697,230
Common stocks		12,774		-			45		12,819
Short-term securities		-		1,679,915			-		1,679,915
Total	$	57,173	$	37,579,402		$	344,618	$	37,981,193
	Level 1		Level 2			Level 3		Total
Forward currency contracts (*)		-	$	(65,970	)		-	$	(65,970	)

The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the six months ended June 30, 2009 (dollars in thousands):
	Beginning value at 1/1/2009		Net purchases and sales			Net realized gain (†)		Net unrealized appreciation(†)		Net transfers out of Level 3			Ending value at 6/30/2009
Investment securities	$	523,921	$	(64,756	)	$	2,059	$	4,975	$	(121,581	)	$	344,618
Net unrealized appreciation during the period on Level 3 investment securities held at June 30, 2009 (dollars in thousands) (†):													$	2,488
(*) Forward currency contracts are not included in the investment portfolio.
(†) Net realized gain and unrealized appreciation are included in the related amounts on investments in the statement of operations.

6. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

Share class	Sales(1)				Reinvestments  of dividends				Repurchases(1)						Net increase  (decrease)
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended June 30, 2009
Class A	$	5,363,352		499,765	$	570,629		53,013	$	(3,248,390	)		(301,990	)	$	2,685,591			250,788
Class B		190,542		17,822		25,731		2,390		(213,544	)		(19,862	)		2,729			350
Class C		817,462		76,102		50,965		4,735		(359,360	)		(33,406	)		509,067			47,431
Class F-1		1,039,716		96,272		64,611		6,003		(780,768	)		(72,418	)		323,559			29,857
Class F-2		537,510		49,095		4,542		420		(47,851	)		(4,452	)		494,201			45,063
Class 529-A		107,272		9,982		15,456		1,435		(42,933	)		(3,995	)		79,795			7,422
Class 529-B		9,080		849		1,681		156		(4,654	)		(433	)		6,107			572
Class 529-C		63,485		5,901		6,266		582		(23,112	)		(2,152	)		46,639			4,331
Class 529-E		6,610		616		782		73		(1,960	)		(183	)		5,432			506
Class 529-F-1		7,498		695		783		73		(3,057	)		(285	)		5,224			483
Class R-1		25,852		2,404		2,054		191		(21,283	)		(1,979	)		6,623			616
Class R-2		160,181		14,906		14,354		1,334		(113,224	)		(10,543	)		61,311			5,697
Class R-3		211,005		19,623		24,093		2,239		(188,555	)		(17,508	)		46,543			4,354
Class R-4		151,371		14,055		18,957		1,762		(148,342	)		(13,801	)		21,986			2,016
Class R-5		182,922		16,955		15,706		1,464		(443,942	)		(40,873	)		(245,314	)		(22,454	)
Class R-6(2)		117,956		10,925		918		83		(75	)		(7	)		118,799			11,001
Total net increase
(decrease)	$	8,991,814		835,967	$	817,528		75,953	$	(5,641,050	)		(523,887	)	$	4,168,292			388,033
Year ended December 31, 2008
Class A	$	6,852,721		563,129	$	1,370,285		116,136	$	(6,431,432	)		(541,018	)	$	1,791,574			138,247
Class B		304,429		24,965		68,497		5,813		(397,075	)		(33,311	)		(24,149	)		(2,533	)
Class C		922,097		75,445		120,888		10,276		(809,514	)		(68,089	)		233,471			17,632
Class F-1		1,692,529		139,793		157,443		13,367		(1,572,023	)		(133,348	)		277,949			19,812
Class F-2(3)		125,467		11,218		1,582		147		(23,803	)		(2,194	)		103,246			9,171
Class 529-A		160,968		13,215		34,433		2,929		(70,702	)		(5,954	)		124,699			10,190
Class 529-B		13,620		1,118		4,082		348		(8,590	)		(725	)		9,112			741
Class 529-C		92,811		7,615		14,184		1,211		(44,239	)		(3,731	)		62,756			5,095
Class 529-E		8,810		727		1,709		146		(3,943	)		(331	)		6,576			542
Class 529-F-1		11,194		927		1,615		138		(4,241	)		(366	)		8,568			699
Class R-1		54,856		4,492		4,534		388		(26,516	)		(2,206	)		32,874			2,674
Class R-2		295,996		24,167		35,134		2,992		(235,150	)		(19,523	)		95,980			7,636
Class R-3		512,079		41,561		59,475		5,056		(382,379	)		(31,909	)		189,175			14,708
Class R-4		382,804		31,033		46,848		3,980		(265,125	)		(22,311	)		164,527			12,702
Class R-5		371,353		30,448		42,060		3,567		(241,776	)		(20,583	)		171,637			13,432
Total net increase
(decrease)	$	11,801,734		969,853	$	1,962,769		166,494	$	(10,516,508	)		(885,599	)	$	3,247,995			250,748
(1) Includes exchanges between share classes of the fund.
(2)Class R-6 was offered beginning May 1, 2009.
(3)Class F-2 was offered beginning August 1, 2008.

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $10,617,555,000 and $12,182,724,000, respectively, during the six months ended June 30, 2009.

8. Forward currency contracts

The fund may enter into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.

On a daily basis, the fund values forward currency contracts based on the applicable exchange rate and records unrealized appreciation or depreciation for open forward currency contracts in the statement of assets and liabilities. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their expiration date are included in the respective receivables or payables for closed forward currency contracts in the statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the statement of operations.As of June 30, 2009, the fund had open forward currency contracts to purchase or sell currencies as follows (amounts in thousands):

		Contract amount				Unrealized (depreciation) appreciation at June 30, 2009
	Settlement  date	Receive		Deliver
Purchases:
Euros	7/27/2009	€	3,876	$	5,461	$	(25	)
						$	(25	)
Sales:
Australian dollars	7/20/2009	$	20,073	$	A25,100	$	(128	)
Australian dollars	7/30/2009	$	36,588	$	A52,440		(5,582	)
Australian dollars	8/28/2009	$	26,139	$	A37,540		(3,987	)
British pounds	7/23/2009	$	53,088	£	36,290		(6,593	)
British pounds	7/23/2009	$	29,804	£	20,380		(3,712	)
British pounds	7/28/2009	$	44,810	£	30,650		(5,596	)
British pounds	8/3/2009	$	50,885	£	30,720		364
Danish kroner	7/24/2009	$	50,551	DKr291,110			(4,258	)
Euros	7/8/2009	$	2,297	€	1,650		(18	)
Euros	7/16/2009	$	56	€	40		-
Euros	7/23/2009	$	83,826	€	75,845		(8,127	)
Euros	7/23/2009	$	43,237	€	35,050		(3,731	)
Euros	7/27/2009	$	594	€	425		(2	)
Euros	7/28/2009	$	158,222	€	122,085		(13,018	)
Euros	7/30/2009	$	116,055	€	89,540		(9,536	)
Euros	7/31/2009	$	352	€	250		1
Japanese yen	7/16/2009	$	62,286	¥	6,115,250		(1,195	)
Polish zloty	7/17/2009	$	20,741	PLN68,000			(637	)
South Korean won	7/17/2009	$	12,340	KRW15,610,000			82
Swedish kronor	7/17/2009	$	21,098	SKr165,000			(272	)
						$	(65,945	)
Forward currency contracts - net						$	(65,970.00	)
(*)Amount less than one thousand.

9. Subsequent events

As of August 7, 2009, the date the financial statements were available to be issued, no subsequent events or transactions had occurred that would have materially impacted the financial statements as presented.

Financial highlights(1)

				Income (loss) from investment operations(2)
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return(3)(4)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(4)			Ratio of net income to average net assets(4)
Class A:	Six months ended 6/30/2009(5)	$	10.76	$	.29	$	.45		$	.74		$	(.29	)	$	11.21		7.06	%	$	25,722		.67	%(6)		.67	%(6)		5.41	%(6)
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.24	)		21,987		.65			.63			5.76
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.37			24,898		.63			.61			5.22
	Year ended 12/31/2006		13.22		.67		.09			.76			(.66	)		13.32		5.88			20,670		.65			.62			5.07
	Year ended 12/31/2005		13.65		.62		(.36	)		.26			(.69	)		13.22		1.94			17,738		.65			.62			4.60
	Year ended 12/31/2004		13.51		.61		.16			.77			(.63	)		13.65		5.85			15,822		.65			.65			4.54
Class B:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.66			1,283		1.42	(6)		1.42	(6)		4.69	(6)
	Year ended 12/31/2008		13.06		.61		(2.25	)		(1.64	)		(.66	)		10.76		(12.88	)		1,227		1.40			1.37			5.02
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.61			1,524		1.38			1.35			4.48
	Year ended 12/31/2006		13.22		.57		.09			.66			(.56	)		13.32		5.09			1,458		1.40			1.37			4.33
	Year ended 12/31/2005		13.65		.52		(.36	)		.16			(.59	)		13.22		1.19			1,415		1.38			1.36			3.87
	Year ended 12/31/2004		13.51		.51		.16			.67			(.53	)		13.65		5.07			1,394		1.39			1.38			3.80
Class C:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.63			2,901		1.46	(6)		1.46	(6)		4.61	(6)
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.92	)		2,274		1.44			1.41			4.98
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.56			2,532		1.42			1.40			4.43
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.04			1,847		1.45			1.42			4.27
	Year ended 12/31/2005		13.65		.51		(.36	)		.15			(.58	)		13.22		1.12			1,429		1.44			1.42			3.81
	Year ended 12/31/2004		13.51		.50		.16			.66			(.52	)		13.65		4.99			1,123		1.46			1.45			3.71
Class F-1:	Six months ended 6/30/2009(5)		10.76		.29		.45			.74			(.29	)		11.21		7.07			3,099		.67	(6)		.67	(6)		5.40	(6)
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.23	)		2,653		.64			.62			5.78
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.38			2,963		.62			.60			5.22
	Year ended 12/31/2006		13.22		.67		.09			.76			(.66	)		13.32		5.90			1,611		.63			.60			5.07
	Year ended 12/31/2005		13.65		.62		(.36	)		.26			(.69	)		13.22		1.92			803		.65			.63			4.60
	Year ended 12/31/2004		13.51		.60		.16			.76			(.62	)		13.65		5.80			487		.70			.69			4.46
Class F-2:	Six months ended 6/30/2009(5)		10.76		.30		.45			.75			(.30	)		11.21		7.20			608		.42	(6)		.42	(6)		5.51	(6)
	Period from 8/4/2008 to 12/31/2008		12.31		.29		(1.47	)		(1.18	)		(.37	)		10.76		(9.62	)		99		.18			.17			2.69
Class 529-A:	Six months ended 6/30/2009(5)		10.76		.29		.45			.74			(.29	)		11.21		7.04			653		.72	(6)		.72	(6)		5.36	(6)
	Year ended 12/31/2008		13.06		.69		(2.25	)		(1.56	)		(.74	)		10.76		(12.28	)		547		.69			.67			5.74
	Year ended 12/31/2007		13.32		.68		(.25	)		.43			(.69	)		13.06		3.31			532		.69			.67			5.17
	Year ended 12/31/2006		13.22		.66		.09			.75			(.65	)		13.32		5.85			388		.68			.66			5.05
	Year ended 12/31/2005		13.65		.61		(.36	)		.25			(.68	)		13.22		1.88			273		.69			.67			4.57
	Year ended 12/31/2004		13.51		.60		.16			.76			(.62	)		13.65		5.80			187		.70			.70			4.48
Class 529-B:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.60			81		1.52	(6)		1.52	(6)		4.57	(6)
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.98	)		71		1.51			1.48			4.92
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.49			77		1.50			1.47			4.36
	Year ended 12/31/2006		13.22		.55		.09			.64			(.54	)		13.32		4.97			69		1.53			1.50			4.20
	Year ended 12/31/2005		13.65		.50		(.36	)		.14			(.57	)		13.22		1.02			58		1.54			1.52			3.71
	Year ended 12/31/2004		13.51		.48		.16			.64			(.50	)		13.65		4.86			49		1.59			1.58			3.60
Class 529-C:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.60			318		1.52	(6)		1.52	(6)		4.56	(6)
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.97	)		258		1.50			1.47			4.94
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.50			247		1.49			1.46			4.37
	Year ended 12/31/2006		13.22		.55		.09			.64			(.54	)		13.32		4.99			170		1.51			1.49			4.22
	Year ended 12/31/2005		13.65		.50		(.36	)		.14			(.57	)		13.22		1.03			121		1.53			1.51			3.74
	Year ended 12/31/2004		13.51		.48		.16			.64			(.50	)		13.65		4.88			86		1.57			1.57			3.61
Class 529-E:	Six months ended 6/30/2009(5)	$	10.76	$	.28	$	.45		$	.73		$	(.28	)	$	11.21		6.88	%	$	36		1.01	%(6)		1.01	%(6)		5.07	%(6)
	Year ended 12/31/2008		13.06		.66		(2.25	)		(1.59	)		(.71	)		10.76		(12.53	)		29		.99			.96			5.45
	Year ended 12/31/2007		13.32		.65		(.25	)		.40			(.66	)		13.06		3.02			28		.98			.96			4.88
	Year ended 12/31/2006		13.22		.62		.09			.71			(.61	)		13.32		5.53			21		.99			.97			4.74
	Year ended 12/31/2005		13.65		.57		(.36	)		.21			(.64	)		13.22		1.56			15		1.01			.99			4.25
	Year ended 12/31/2004		13.51		.55		.16			.71			(.57	)		13.65		5.43			11		1.05			1.05			4.13
Class 529-F-1:	Six months ended 6/30/2009(5)		10.76		.30		.45			.75			(.30	)		11.21		7.15			32		.51	(6)		.51	(6)		5.57	(6)
	Year ended 12/31/2008		13.06		.72		(2.25	)		(1.53	)		(.77	)		10.76		(12.10	)		26		.49			.46			5.96
	Year ended 12/31/2007		13.32		.71		(.25	)		.46			(.72	)		13.06		3.53			22		.48			.46			5.38
	Year ended 12/31/2006		13.22		.69		.09			.78			(.68	)		13.32		6.05			14		.49			.46			5.25
	Year ended 12/31/2005		13.65		.62		(.36	)		.26			(.69	)		13.22		1.98			7		.58			.56			4.69
	Year ended 12/31/2004		13.51		.59		.16			.75			(.61	)		13.65		5.69			4		.80			.80			4.36
Class R-1:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.64			98		1.44	(6)		1.44	(6)		4.64	(6)
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.92	)		88		1.44			1.42			5.01
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.54			71		1.44			1.42			4.44
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.05			29		1.49			1.42			4.28
	Year ended 12/31/2005		13.65		.51		(.36	)		.15			(.58	)		13.22		1.11			18		1.51			1.43			3.82
	Year ended 12/31/2004		13.51		.50		.16			.66			(.52	)		13.65		4.98			11		1.55			1.47			3.70
Class R-2:	Six months ended 6/30/2009(5)		10.76		.25		.45			.70			(.25	)		11.21		6.59			706		1.53	(6)		1.53	(6)		4.57	(6)
	Year ended 12/31/2008		13.06		.59		(2.25	)		(1.66	)		(.64	)		10.76		(12.99	)		616		1.53			1.50			4.90
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.56			648		1.51			1.40			4.44
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.06			500		1.67			1.41			4.30
	Year ended 12/31/2005		13.65		.51		(.36	)		.15			(.58	)		13.22		1.14			352		1.74			1.41			3.84
	Year ended 12/31/2004		13.51		.50		.16			.66			(.52	)		13.65		5.02			238		1.85			1.43			3.73
Class R-3:	Six months ended 6/30/2009(5)		10.76		.28		.45			.73			(.28	)		11.21		6.89			1,028		.99	(6)		.99	(6)		5.11	(6)
	Year ended 12/31/2008		13.06		.66		(2.25	)		(1.59	)		(.71	)		10.76		(12.52	)		939		.98			.95			5.45
	Year ended 12/31/2007		13.32		.65		(.25	)		.40			(.66	)		13.06		3.02			949		.98			.95			4.89
	Year ended 12/31/2006		13.22		.62		.09			.71			(.61	)		13.32		5.49			570		1.02			.99			4.71
	Year ended 12/31/2005		13.65		.56		(.36	)		.20			(.63	)		13.22		1.53			361		1.05			1.02			4.23
	Year ended 12/31/2004		13.51		.55		.16			.71			(.57	)		13.65		5.42			213		1.06			1.05			4.12
Class R-4:	Six months ended 6/30/2009(5)		10.76		.29		.45			.74			(.29	)		11.21		7.06			759		.67	(6)		.67	(6)		5.43	(6)
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.25	)		707		.67			.64			5.77
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.35			692		.66			.64			5.22
	Year ended 12/31/2006		13.22		.66		.09			.75			(.65	)		13.32		5.86			325		.67			.65			5.06
	Year ended 12/31/2005		13.65		.61		(.36	)		.25			(.68	)		13.22		1.91			182		.67			.65			4.61
	Year ended 12/31/2004		13.51		.60		.16			.76			(.62	)		13.65		5.81			77		.68			.68			4.48
Class R-5:	Six months ended 6/30/2009(5)		10.76		.31		.45			.76			(.31	)		11.21		7.23			444		.37	(6)		.37	(6)		5.77	(6)
	Year ended 12/31/2008		13.06		.73		(2.25	)		(1.52	)		(.78	)		10.76		(12.00	)		667		.37			.34			6.06
	Year ended 12/31/2007		13.32		.73		(.25	)		.48			(.74	)		13.06		3.65			635		.36			.34			5.50
	Year ended 12/31/2006		13.22		.70		.09			.79			(.69	)		13.32		6.17			336		.37			.35			5.36
	Year ended 12/31/2005		13.65		.66		(.36	)		.30			(.73	)		13.22		2.21			204		.37			.35			4.91
	Year ended 12/31/2004		13.51		.65		.16			.81			(.67	)		13.65		6.14			127		.37			.37			4.81
Class R-6:	Period from 5/1/2009 to 6/30/2009(5)		10.78		.09		.43			.52			(.09	)		11.21		4.88			123		.05			.05			.86

	Six months ended June 30,			Year ended December 31
	2009(5)			2008			2007			2006			2005			2004
Portfolio turnover rate for all classes of shares		47	%		57	%		58	%		53	%		50	%		45	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

(5)Unaudited.

(6)Annualized.

See Notes to Financial Statements

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2009, through June 30, 2009).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 1/1/2009		Ending account value 6/30/2009		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,070.62	$	3.44		.67	%
Class A -- assumed 5% return		1,000.00		1,021.47		3.36		.67
Class B -- actual return		1,000.00		1,066.57		7.28		1.42
Class B -- assumed 5% return		1,000.00		1,017.75		7.10		1.42
Class C -- actual return		1,000.00		1,066.32		7.48		1.46
Class C -- assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class F-1 -- actual return		1,000.00		1,070.66		3.44		.67
Class F-1 -- assumed 5% return		1,000.00		1,021.47		3.36		.67
Class F-2 -- actual return		1,000.00		1,072.00		2.16		.42
Class F-2 -- assumed 5% return		1,000.00		1,022.71		2.11		.42
Class 529-A -- actual return		1,000.00		1,070.35		3.70		.72
Class 529-A -- assumed 5% return		1,000.00		1,021.22		3.61		.72
Class 529-B -- actual return		1,000.00		1,065.98		7.79		1.52
Class 529-B -- assumed 5% return		1,000.00		1,017.26		7.60		1.52
Class 529-C -- actual return		1,000.00		1,066.02		7.79		1.52
Class 529-C -- assumed 5% return		1,000.00		1,017.26		7.60		1.52
Class 529-E -- actual return		1,000.00		1,068.81		5.18		1.01
Class 529-E -- assumed 5% return		1,000.00		1,019.79		5.06		1.01
Class 529-F-1 -- actual return		1,000.00		1,071.53		2.62		.51
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.27		2.56		.51
Class R-1 -- actual return		1,000.00		1,066.41		7.38		1.44
Class R-1 -- assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class R-2 -- actual return		1,000.00		1,065.92		7.84		1.53
Class R-2 -- assumed 5% return		1,000.00		1,017.21		7.65		1.53
Class R-3 -- actual return		1,000.00		1,068.92		5.08		.99
Class R-3 -- assumed 5% return		1,000.00		1,019.89		4.96		.99
Class R-4 -- actual return		1,000.00		1,070.62		3.44		.67
Class R-4 -- assumed 5% return		1,000.00		1,021.47		3.36		.67
Class R-5 -- actual return		1,000.00		1,072.25		1.90		.37
Class R-5 -- assumed 5% return		1,000.00		1,022.96		1.86		.37
Class R-6 -- actual return †		1,000.00		1,048.79		.54		.32
Class R-6 -- assumed 5% return †		1,000.00		1,023.21		1.61		.32

*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

† The period for the “annualized expense ratio” and “actual return” line is based on the number of days from May 1, 2009 (the initial sale of the share class), through June 30, 2009, and accordingly, is not representative of a full period. The “assumed 5% return” line is based on 181 days.

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, CA 90071-2228

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete June 30, 2009, portfolio of The Bond Fund of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

The Bond Fund of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of The Bond Fund of America, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - American Funds®]

The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

• A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

• An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

• The multiple portfolio counselor system

Our unique approach to portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

• Experienced investment professionals

American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

• A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•  Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•  Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•  Equity-income funds

Capital Income Builder®

The Income Fund of America®

•  Balanced fund

American Balanced Fund®

•  Bond funds

American High-Income TrustSM

>The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•  Tax-exempt bond funds

American Funds Short-Term Tax-Exempt Bond FundSM

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•  Money market fund

American Funds Money Market FundSM

•  American Funds Target Date Retirement Series®

The Capital Group Companies

American Funds    Capital Research and Management    Capital International    Capital Guardian    Capital Bank and Trust

Lit. No. MFGESR-908-0809P

Litho in USA BG/ALD/6370-S20693

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

[logo – American Funds®]

Bond Fund of AmericaSM

Investment portfolio

June 30, 2009

 unaudited

Bonds & notes — 93.82%	Principal amount (000)			Value (000)
CORPORATE BONDS & NOTES — 33.74%
FINANCIALS — 9.92%
Diversified financials — 2.84%
Countrywide Home Loans, Inc., Series M, 4.125% 2009	$	23,575		$	23,653
Countrywide Financial Corp., Series A, 4.50% 2010		15,540			15,388
Countrywide Financial Corp. 6.25% 2010	$	A7,700			6,086
Countrywide Financial Corp., Series B, 1.426% 20121	$	30,000			27,000
Countrywide Financial Corp., Series B, 5.80% 2012		88,973			89,587
Bank of America Corp., Series L, 7.375% 2014		2,000			2,068
Bank of America Corp. 5.75% 2017		10,000			8,919
Bank of America Corp. 6.10% 2017		14,443			12,746
Bank of America Corp. 5.65% 2018		23,810			21,075
Merrill Lynch & Co., Inc. 6.875% 2018		10,000			9,270
Bank of America Corp. 7.625% 2019		17,520			17,628
Fleet Capital Trust II 7.92% 2026		6,340			5,209
BankAmerica Capital II, Series 2, 8.00% 2026		4,425			3,680
MBNA Capital A, Series A, 8.278% 2026		7,500			6,332
NB Capital Trust IV 8.25% 2027		7,612			6,405
CIT Group Inc. 6.875% 2009		15,000			14,351
CIT Group Inc. 4.25% 2010		33,000			29,631
CIT Group Inc. 1.353% 20111		32,500			22,118
CIT Group Inc. 1.17% 20121		6,080			3,590
CIT Group Inc. 5.40% 2012		10,550			7,179
CIT Group Inc. 7.625% 20122		18,275			12,975
CIT Group Inc. 7.75% 2012		2,455			1,712
CIT Group Inc. 5.40% 2013		9,330			5,787
CIT Group Inc. 5.00% 2014		1,260			749
CIT Group Inc. 5.125% 2014		3,095			1,826
CIT Group Inc. 5.65% 2017		4,089			2,310
CIT Group Inc. 12.00% 20183		19,999			9,404
CIT Group Inc. 5.80% 2036		1,574			847
CIT Group Inc. 6.10% 20671		22,375			8,497
JPMorgan Chase & Co. 4.891% 20151		49,025			42,663
JPMorgan Chase Bank NA 5.875% 2016		25,730			24,833
JPMorgan Chase Bank NA 6.00% 2017		22,580			22,013
JPMorgan Chase Capital XXV, Series Y, 6.80% 2037		14,878			12,832
JPMorgan Chase Capital XX, Series T, 6.55% 20661		15,962			12,722
Capital One Financial Corp. 0.93% 20091		30,000			29,892
Capital One Financial Corp. 5.70% 2011		12,000			12,059
Capital One Financial Corp. 7.375% 2014		21,000			21,677
Capital One Financial Corp. 6.15% 2016		10,000			8,863
Capital One Capital III 7.686% 20361		50,065			35,797
International Lease Finance Corp., Series O, 4.55% 2009		8,125			7,882
International Lease Finance Corp. 5.00% 2012		13,500			10,448
International Lease Finance Corp., Series R, 5.40% 2012		10,000			7,806
International Lease Finance Corp., Series R, 5.625% 2013		20,000			15,122
International Lease Finance Corp., Series R, 6.375% 2013		2,000			1,523
International Lease Finance Corp., Series R, 6.625% 2013		25,500			19,645
International Lease Finance Corp., Series R, 5.65% 2014		16,135			11,704
Goldman Sachs Group, Inc. 6.25% 2017		4,555			4,514
Goldman Sachs Group, Inc. 5.95% 2018		3,540			3,439
Goldman Sachs Group, Inc. 6.15% 2018		13,750			13,409
Goldman Sachs Group, Inc. 7.50% 2019		42,280			45,286
Citigroup Inc. 6.125% 2017		25,825			22,678
Citigroup Inc. 6.125% 2018		2,875			2,519
Citigroup Capital XXI 8.30% 20771		41,325			32,299
SLM Corp., Series A, 4.50% 2010		38,000			35,919
SLM Corp., Series A, 1.322% 20111		8,700			7,053
SLM Corp., Series A, 5.40% 2011		5,000			4,499
SLM Corp., Series A, 5.375% 2013		3,000			2,508
SLM Corp., Series A, 1.392% 20141		6,900			4,802
General Motors Acceptance Corp. 7.25% 20113		7,179			6,641
General Motors Acceptance Corp. 6.625% 20123		1,899			1,605
General Motors Acceptance Corp. 6.875% 20123		7,782			6,576
General Motors Acceptance Corp. 7.00% 20123		16,383			14,057
General Motors Acceptance Corp. 7.50% 20133		10,426			8,184
General Motors Acceptance Corp. 2.868% 20141,3		3,070			2,153
General Motors Acceptance Corp. 6.75% 20143		1,535			1,220
General Motors Acceptance Corp. 8.00% 20183		9,577			6,177
Morgan Stanley 6.00% 2014		28,400			28,784
Morgan Stanley, Series F, 5.95% 2017		10,400			9,996
Morgan Stanley 10.09% 2017	BRL3,000				1,281
American Express Co. 6.15% 2017	$	19,185			17,722
American Express Co. 8.15% 2038		4,600			4,877
American Express Co. 6.80% 20661		6,321			4,557
Lehman Brothers Holdings Inc., Series I, 3.018% 20121,4		3,300			503
Lehman Brothers Holdings Inc., Series G, 4.80% 20144		10,395			1,585
Lehman Brothers Holdings Inc., Series I, 6.20% 20144		42,650			6,504
Lehman Brothers Holdings Inc., Series H, 5.50% 20164		765			117
Lehman Brothers Holdings Inc., Series I, 6.875% 20184		81,508			13,449
Lazard Group LLC 7.125% 2015		19,385			17,830
Lazard Group LLC 6.85% 2017		1,775			1,633
Northern Trust Corp. 5.50% 2013		5,450			5,783
Northern Trust Corp. 4.625% 2014		8,475			8,718
Northern Trust Corp. 5.85% 20175		3,750			3,905
Charles Schwab Corp., Series A, 6.375% 2017		12,490			12,997
Schwab Capital Trust I 7.50% 20371		4,485			3,749
ING Bank NV 5.50% 2012	€3,750				5,370
ING Groep NV 5.775% (undated)1	$	15,500			9,078
iStar Financial, Inc. 6.00% 2010		3,805			2,626
iStar Financial, Inc. 8.625% 2013		5,000			2,602
Capmark Financial Group Inc. 7.875% 2012		9,410			2,446
Capmark Financial Group Inc. 8.30% 2017		6,090			1,437
Bank of New York Mellon Corp., Series G, 4.95% 2012		3,500			3,704
Credit Suisse Group AG 5.50% 2014		3,000			3,120
E*TRADE Financial Corp. 7.875% 2015		2,770			2,202
Advanta Capital Trust I, Series B, 8.99% 2026		12,500			2,094
					1,077,710
Banks — 2.79%
Independence Community Bank Corp. 4.90% 2010		12,000			11,724
Sovereign Bancorp, Inc. 2.738% 20131		3,000			2,266
Santander Issuances, SA Unipersonal 0.969% 20161,3		21,500			17,976
Santander Issuances, SA Unipersonal 5.805% 20161,3		76,100			61,239
Sovereign Bancorp, Inc. 8.75% 2018		70,920			69,963
Santander Perpetual, SA Unipersonal 6.671% (undated)1,3		21,800			16,156
Abbey National PLC 7.50% (undated)1	£	3,270			3,997
Bayerische Hypo- und Vereinsbank AG 6.00% 2014	€2,155				3,018
UniCredito Italiano SpA 5.584% 20171,3	$	60,690			52,908
UniCredito Italiano SpA 6.00% 20173		67,825			60,845
HVB Funding Trust I 8.741% 20313		5,555			3,111
HVB Funding Trust III 9.00% 20313		16,038			8,981
PNC Funding Corp. 1.239% 20141		28,000			25,300
PNC Funding Corp. 5.40% 2014		10,000			10,114
PNC Bank NA 6.875% 2018		5,200			5,149
PNC Funding Corp. 6.70% 2019		15,000			15,499
PNC Funding Corp., Series II, 6.113% (undated)1,3		18,300			9,513
National City Preferred Capital Trust I 12.00% (undated)1		55,000			57,475
Resona Bank, Ltd. 3.75% 20151	€9,740				12,976
Resona Bank, Ltd 4.125% (undated)1		5,735			5,954
Resona Bank, Ltd. 5.85% (undated)1,3	$	90,833			68,669
Scotland International Finance No. 2 BV 4.25% 20133		7,744			6,442
HBOS PLC 6.75% 20183		63,135			47,733
HBOS PLC 6.00% 20333		5,465			3,273
HBOS Capital Funding LP 6.071% (undated)1,3		15,075			5,499
Lloyds Banking Group PLC 6.657% preference shares (undated)1,3		15,991			5,765
Fifth Third Bancorp 8.25% 2038		30,250			23,209
Fifth Third Capital Trust IV 6.50% 20671		67,680			41,268
Standard Chartered PLC 5.50% 20143		4,000			4,087
Standard Chartered Bank 6.40% 20173		52,710			47,703
Standard Chartered Bank 5.375% (undated)1	£	150			180
HSBC Finance Corp. 5.70% 2011	$	15,000			15,144
HSBC Finance Corp. 0.979% 20121		20,000			17,608
HSBC Finance Corp. 1.457% 20121		15,000			13,268
Royal Bank of Scotland Group PLC 5.00% 2013		2,605			2,148
Royal Bank of Scotland Group PLC 5.00% 2014		11,352			9,085
Royal Bank of Scotland Group PLC 5.05% 2015		10,638			8,348
Royal Bank of Scotland PLC 9.625% 2015	£	200			327
Royal Bank of Scotland PLC 6.934% 2018	€12,780				15,092
Royal Bank of Scotland PLC 5.00% (undated)1	£	200			199
Wells Fargo Bank, National Assn. 4.75% 2015	$	19,035			18,071
Wells Fargo & Co. 5.625% 2017		8,500			8,381
Wells Fargo Bank, National Assn. 5.95% 2036		7,000			6,284
Wells Fargo Capital XIII 7.70% (undated)1		600			498
Wells Fargo & Co. 7.98% (undated)1		1,625			1,351
Société Générale 5.75% 20163		36,515			33,621
Paribas, New York Branch 6.95% 2013		11,550			12,038
BNP Paribas 4.80% 20153		305			244
BNP Paribas 5.125% 20153		12,070			11,301
BNP Paribas 5.75% 2022	£	415			663
SunTrust Banks, Inc. 5.25% 2012	$	1,885			1,922
SunTrust Banks, Inc. 6.00% 2017		940			852
SunTrust Banks, Inc. 7.25% 2018		21,200			20,868
Korea Development Bank 5.30% 2013		13,635			13,439
Korea Development Bank 8.00% 2014		9,115			9,879
United Overseas Bank Ltd. 5.375% 20191,3		22,250			21,252
UnionBanCal Corp. 5.25% 2013		2,040			1,886
Union Bank of California, NA 5.95% 2016		17,415			16,133
Silicon Valley Bank 5.70% 2012		18,000			16,759
HSBK (Europe) BV 7.75% 2013		9,700			7,178
HSBK (Europe) BV 7.75% 20133		305			226
HSBK (Europe) BV 7.25% 20173		10,460			6,067
Zions Bancorporation 5.50% 2015		9,063			6,532
Zions Bancorporation 6.00% 2015		8,442			6,043
DBS Bank Ltd. 1.704% 20211,3		12,500			9,719
Banco Santander-Chile 5.375% 20143		9,035			8,605
Northern Rock PLC 5.60% (undated)1,3		13,815			2,832
Northern Rock PLC 6.594% (undated)1,3		27,465			5,630
Barclays Bank PLC 6.05% 20173		4,600			3,995
Barclays Bank PLC 6.375% (undated)1	£	240			294
Barclays Bank PLC 7.70% (undated)1,3	$	2,000			1,666
Sumitomo Mitsui Banking Corp. 8.00% 2012		3,500			3,794
Bergen Bank 1.938% (undated)1		5,000			2,824
Credit Agricole SA 6.637% (undated)1,3		4,535			2,744
Allied Irish Banks, PLC 5.625% 20301	£	250			222
Allied Irish Banks Ltd. 1.563% (undated)1	$	7,000			2,095
Christiana Bank Og Kreditkasse 1.625% (undated)1		4,000			1,880
Norinchukin Finance (Cayman) Ltd. 5.625% 20161	£	205			319
Skandinaviska Enskilda Banken AB 5.00% (undated)1		78			93
Commerzbank AG 6.625% 2019		70			87
					1,057,498
Insurance — 2.41%
Liberty Mutual Group Inc. 6.50% 20353	$	37,810			23,036
Liberty Mutual Group Inc. 7.50% 20363		37,485			25,890
Liberty Mutual Group Inc., Series A, 7.80% 20871,3		20,488			11,494
Liberty Mutual Group Inc., Series C, 10.75% 20881,3		88,940			64,144
ZFS Finance (USA) Trust II 6.45% 20651,3		29,500			22,715
ZFS Finance (USA) Trust V 6.50% 20671,3		87,675			64,880
Prudential Financial, Inc., Series D, 5.10% 2011		3,375			3,351
Prudential Holdings, LLC, Series C, 8.695% 20233,6		57,035			54,683
Prudential Financial, Inc. 8.875% 20681		15,000			12,672
Metropolitan Life Global Funding I, 5.125% 20133		18,310			18,639
MetLife Capital Trust IV 7.875% 20671,3		5,000			4,060
MetLife Capital Trust X 9.25% 20681,3		35,550			31,712
Lincoln National Corp. 5.65% 2012		19,250			18,698
Lincoln National Corp. 7.00% 20661		53,178			34,034
ACE INA Holdings Inc. 5.875% 2014		18,775			19,409
ACE INA Holdings Inc. 5.70% 2017		4,000			3,989
ACE INA Holdings Inc. 5.80% 2018		7,000			6,986
ACE Capital Trust II 9.70% 2030		12,423			11,336
ACE INA Holdings Inc. 6.70% 2036		5,980			5,939
CNA Financial Corp. 5.85% 2014		11,500			9,244
CNA Financial Corp. 6.50% 2016		24,625			19,981
CNA Financial Corp. 7.25% 2023		24,145			17,335
Catlin Insurance Ltd. 7.249% (undated)1,3		70,755			39,671
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013		17,500			18,110
Allstate Corp., Series B, 6.125% 20671		28,300			21,084
Monumental Global Funding 5.50% 20133		16,270			15,711
Monumental Global Funding III 5.25% 20143		21,500			20,299
AEGON NV 6.125% 2031	£	1,730			2,115
American General Finance Corp., Series I, 5.85% 2013	$	27,500			15,787
American General Finance Corp., Series I, 5.40% 2015		20,000			10,784
American General Finance Corp., Series J, 6.90% 2017		20,000			10,844
Chubb Corp. 5.75% 2018		6,500			6,754
Chubb Corp. 6.50% 2038		19,850			21,592
Chubb Corp. 6.375% 20671		7,150			5,728
Hartford Financial Services Group, Inc. 5.25% 2011		5,625			5,439
Hartford Financial Services Group, Inc. 6.30% 2018		24,000			19,547
Hartford Financial Services Group, Inc. 8.125% 20681		10,000			7,010
New York Life Global Funding 5.25% 20123		15,300			16,213
New York Life Global Funding 4.65% 20133		9,170			9,309
Nationwide Mutual Insurance 5.81% 20241,3		19,085			11,219
Nationwide Mutual Insurance Co. 8.25% 20313		15,675			12,602
Nationwide Mutual Insurance Co. 6.60% 20343		2,000			1,205
Nationwide Financial Services, Inc. 6.75% 20671		40,430			23,937
Principal Life Insurance Co. 5.30% 2013		18,000			17,974
Principal Life Global Funding I 4.40% 20103		16,600			16,484
AXA SA 6.463% (undated)1,3		25,000			15,774
Protective Life Insurance Co., Series 2005-C, 4.85% 2010		15,000			14,770
Assurant, Inc. 5.625% 2014		16,000			14,285
MassMutual Global Funding II, Series 2002-1, 3.50% 20103		10,000			9,856
Jackson National Life Global 5.375% 20133		10,000			9,634
United Energy Distribution Pty Ltd., AMBAC insured, 4.70% 20113		10,000			9,606
Genworth Global Funding Trust, Series 2007-C, 5.25% 2012		10,000			9,409
Loews Corp. 6.00% 2035		8,000			6,815
Assured Guaranty US Holdings Inc., Series A, 6.40% 20661		7,425			3,791
TIAA Global Markets 4.95% 20133		3,275			3,372
UnumProvident Finance Co. PLC 6.85% 20153		2,839			2,343
					913,300
Real estate — 1.58%
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 4.375% 20103		44,950			44,010
Westfield Group 5.40% 20123		30,035			28,843
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143		35,860			32,297
Westfield Group 7.50% 20143		12,500			12,407
Westfield Group 5.70% 20163		19,240			16,683
WT Finance (Australia) Pty Ltd., Westfield Europe Finance PLC, and WEA Finance LLC 5.50% 2017	£	3,780			5,130
Westfield Group 7.125% 20183	$	38,060			35,380
Kimco Realty Corp., Series C, 4.82% 2011		7,500			7,280
Kimco Realty Corp. 6.00% 2012		20,570			19,498
Kimco Realty Corp., Series C, 4.82% 2014		12,000			10,203
Kimco Realty Corp., Series C, 4.904% 2015		6,335			5,387
Kimco Realty Corp., Series C, 5.783% 2016		19,500			16,530
Kimco Realty Corp. 5.70% 2017		28,450			23,623
PLD International Finance LLC 4.375% 2011	€7,700				10,062
ProLogis 5.625% 2015	$	13,035			10,348
ProLogis 5.625% 2016		745			573
ProLogis 5.75% 2016		27,620			21,799
ProLogis 6.625% 2018		48,130			37,957
Simon Property Group, LP 5.60% 2011		8,810			8,915
Simon Property Group, LP 5.00% 2012		10,000			9,975
Simon Property Group, LP 5.75% 2012		4,000			4,067
Simon Property Group, LP 5.75% 2015		3,250			2,997
Simon Property Group, LP 5.25% 2016		3,610			3,211
Simon Property Group, LP 6.10% 2016		4,750			4,439
Simon Property Group, LP 5.875% 2017		17,000			15,632
Simon Property Group, LP 6.125% 2018		23,950			22,315
Simon Property Group, LP 10.35% 2019		4,495			5,115
Hospitality Properties Trust 6.85% 2012		2,000			1,799
Hospitality Properties Trust 6.75% 2013		17,845			15,710
Hospitality Properties Trust 5.125% 2015		6,665			5,295
Hospitality Properties Trust 6.30% 2016		26,223			21,030
Hospitality Properties Trust 5.625% 2017		8,100			6,055
Hospitality Properties Trust 6.70% 2018		33,515			25,705
Brandywine Operating Partnership, LP 5.75% 2012		27,110			24,526
Brandywine Operating Partnership, LP 5.40% 2014		3,000			2,332
Rouse Co. 3.625% 20094		5,200			3,302
Rouse Co. 7.20% 20124		17,475			11,184
Rouse Co. 5.375% 20134		7,250			4,604
Rouse Co. 6.75% 20133,4		3,750			2,381
ERP Operating LP 5.25% 2014		2,000			1,901
ERP Operating LP 6.584% 2015		13,040			12,939
ERP Operating LP 5.75% 2017		1,530			1,429
ERP Operating LP 7.125% 2017		5,000			5,054
Developers Diversified Realty Corp. 5.375% 2012		5,782			3,911
Developers Diversified Realty Corp. 5.50% 2015		17,500			11,173
Realogy Corp., Letter of Credit, 3.37% 20131,6,7		241			175
Realogy Corp., Term Loan B, 4.177% 20131,6,7		861			626
Realogy Corp. 10.50% 2014		17,985			7,868
Realogy Corp. 11.75% 20141,8		2,774			888
Realogy Corp. 12.375% 2015		2,000			570
Weingarten Realty Investors, Series A, 4.857% 2014		6,080			4,853
Host Marriott, LP, Series M, 7.00% 2012		2,675			2,595
Host Hotels & Resorts, LP, Series S, 6.875% 2014		300			271
Host Hotels & Resorts LP 9.00% 20173		1,800			1,723
Federal Realty Investment Trust 4.50% 2011		3,500			3,313
Plum Creek Timberlands, LP 5.875% 2015		1,500			1,270
					599,158
Automobiles & components — 0.30%
Ford Motor Credit Co. 7.375% 2009		26,725			26,498
Ford Motor Credit Co. 7.875% 2010		10,000			9,501
Ford Motor Credit Co. 8.625% 2010		425			399
Ford Motor Credit Co. 9.75% 20101		5,000			4,791
Ford Motor Credit Co. 5.879% 20111		20,275			17,614
Ford Motor Credit Co. 7.25% 2011		24,000			20,769
Ford Motor Credit Co. 7.375% 2011		2,200			1,992
Ford Motor Credit Co. 3.889% 20121		8,825			6,839
Ford Motor Credit Co. 7.80% 2012		900			775
Ford Motor Credit Co. 8.00% 2016		2,000			1,531
American Honda Finance Corp. 5.125% 20103		21,850			21,566
					112,275
CONSUMER DISCRETIONARY — 4.48%
Media — 2.89%
Comcast Cable Communications, Inc. 6.75% 2011		520			550
Tele-Communications, Inc. 9.80% 2012		17,500			19,711
Comcast Cable Communications, Inc. 7.125% 2013		14,625			16,101
Tele-Communications, Inc. 7.875% 2013		7,500			8,541
Comcast Corp. 5.85% 2015		29,025			30,119
Comcast Corp. 6.50% 2015		9,000			9,557
Comcast Corp. 6.30% 2017		24,500			25,972
Comcast Corp. 5.875% 2018		45,765			46,469
Comcast Corp. 5.65% 2035		4,745			4,360
Comcast Corp. 6.45% 2037		7,250			7,168
Comcast Corp. 6.95% 2037		15,520			16,233
Comcast Corp. 6.40% 2038		11,800			11,589
Time Warner Inc. 1.15% 20091		8,510			8,490
Time Warner Inc. 5.50% 2011		1,675			1,731
AOL Time Warner Inc. 6.75% 2011		3,815			3,994
AOL Time Warner Inc. 6.875% 2012		22,500			24,085
Time Warner Inc. 5.875% 2016		56,140			55,408
Time Warner Companies, Inc. 7.25% 2017		1,600			1,650
Time Warner Companies, Inc. 7.57% 2024		12,340			12,107
AOL Time Warner Inc. 7.625% 2031		31,935			31,127
Time Warner Inc. 6.50% 2036		45,485			39,949
Time Warner Cable Inc. 5.40% 2012		8,000			8,274
Time Warner Cable Inc. 6.20% 2013		4,500			4,746
Time Warner Cable Inc. 7.50% 2014		22,860			25,208
Time Warner Cable Inc. 8.25% 2014		40,000			44,879
Time Warner Cable Inc. 6.75% 2018		60,500			63,121
Time Warner Cable Inc. 8.25% 2019		21,560			24,504
Time Warner Cable Inc. 8.75% 2019		3,950			4,609
News America Holdings Inc. 8.00% 2016		1,000			1,066
News America Inc. 7.25% 2018		2,250			2,274
News America Holdings Inc. 8.25% 2018		15,290			16,682
News America Inc. 6.90% 20193		54,975			57,386
News America Inc. 6.65% 2037		38,900			35,096
News America Inc. 7.85% 20393		3,500			3,741
Thomson Reuters Corp. 6.50% 2018		74,120			77,270
Cox Communications, Inc. 7.875% 2009		1,000			1,006
Cox Communications, Inc. 4.625% 2010		900			904
Cox Communications, Inc. 7.125% 2012		7,000			7,530
Cox Communications, Inc. 5.45% 2014		17,045			16,940
Cox Communications, Inc. 9.375% 20193		26,205			31,606
Cox Communications, Inc. 8.375% 20393		6,555			7,330
CCH II, LLC and CCH II Capital Corp. 10.25% 2010		10,000			10,600
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20123		10,150			9,820
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013		13,325			12,725
Charter Communications Operating, LLC, Term Loan B, 4.25% 20141,6,7		12,017			10,860
Charter Communications Operating, LLC, Term Loan B, 7.25% 20141,6,7		1,975			1,947
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20143		1,575			1,516
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20143		15,375			15,990
CCH I, LLC and CCH I Capital Corp. 11.00% 20154		950			119
Univision Communications Inc. 7.85% 2011		7,055			6,984
Univision Communications, Inc., First Lien Term Loan B, 2.56% 20141,6,7		11,205			8,428
Univision Communications Inc. 12.00% 20143		4,555			4,498
Univision Communications Inc. 10.50% 20151,3,8		35,720			20,986
NTL Cable PLC 8.75% 2014		10,725			10,511
NTL Cable PLC 8.75% 2014	€1,000				1,318
NTL Cable PLC 9.50% 2016	$	15,200			15,048
Warner Music Group 0%/9.50% 20149		125			99
Warner Music Group 7.375% 2014		4,725			4,022
Warner Music Group 9.50% 20163		13,175			13,175
AMC Entertainment Inc. 8.00% 2014		8,125			6,967
AMC Entertainment Inc., Series B, 11.00% 2016		2,500			2,431
AMC Entertainment Inc. 8.75% 20193		5,000			4,725
Quebecor Media Inc. 7.75% 2016		8,950			8,156
Quebecor Media Inc. 7.75% 2016		5,670			5,167
TL Acquisitions, Inc., Term Loan B, 2.81% 20141,6,7		5,586			4,700
Thomson Learning 10.50% 20153		9,450			7,702
CBS Corp. 8.875% 2019		12,400			12,105
Viacom Inc. 5.75% 2011		2,500			2,561
Viacom Inc. 6.25% 2016		7,500			7,399
CSC Holdings, Inc. 8.50% 20143		3,825			3,811
CSC Holdings, Inc. 8.625% 20193		3,700			3,645
Kabel Deutschland GmbH 10.625% 2014		7,150			7,409
American Media Operation 9.00% 20133,8		1,149			577
American Media Operation 14.00% 20131,3,8		16,136			6,495
LBI Media, Inc. 8.50% 20173		11,390			6,051
Regal Cinemas Corp., Series B, 9.375% 2012		6,125			5,964
Cinemark USA, Inc., Term Loan B, 2.21% 20131,6,7		3,331			3,153
Cinemark USA, Inc. 8.625% 20193		2,000			1,985
WPP Finance (UK) 8.00% 2014		5,000			5,083
UPC Holding BV 9.875% 20183		5,000			4,781
Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014		4,300			3,698
Mediacom LLC and Mediacom Capital Corp. 9.50% 2013		450			431
Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015		3,520			3,186
Local T.V. Finance LLC, Term Loan B, 2.31% 20131,6,7		994			631
Local T.V. Finance LLC 10.00% 20151,3,8		16,868			2,952
Fox Acquisition LLC, Term Loan B, 7.25% 20151,6,7		847			617
Fox Acquisition LLC 13.375% 20163		6,165			2,820
Liberty Media Corp. 8.25% 2030		3,550			2,463
Radio One, Inc. 6.375% 2013		7,380			2,260
Dex Media West LLC, Dex Media West Finance Co., Series B, 8.50% 20104		3,000			2,175
Dex Media, Inc., Series B, 8.00% 20134		525			81
Walt Disney Co. 5.625% 2016		2,000			2,152
Vidéotron Ltée 6.875% 2014		1,000			930
Vidéotron Ltée 6.375% 2015		1,000			901
WDAC Intermediate Corp. 8.375% 20143		2,425			534
WDAC Intermediate Corp. 8.50% 2014	€500				193
Carmike Cinemas, Inc., Delayed Draw, Term Loan, 5.19% 20121,6,7	$	412			382
Young Broadcasting Inc. 10.00% 20114		13,317			33
					1,095,035
Retailing — 0.78%
Macy’s Retail Holdings, Inc. 8.875% 2015		25,770			24,966
Federated Retail Holdings, Inc. 5.90% 2016		71,875			58,639
Federated Retail Holdings, Inc. 6.375% 2037		7,700			5,248
Staples, Inc. 7.75% 2011		16,265			17,207
Staples, Inc. 9.75% 2014		27,970			31,269
Nordstrom, Inc. 6.75% 2014		29,360			30,552
Michaels Stores, Inc., Term Loan B, 2.625% 20131,6,7		8,258			6,586
Michaels Stores, Inc. 10.00% 2014		16,125			13,626
Michaels Stores, Inc. 0%/13.00% 2016 (9)		1,110			461
Toys "R" Us, Inc. 7.625% 2011		13,115			12,197
Toys "R" Us-Delaware, Inc., Term Loan B, 4.565% 20121,6,7		7,970			7,376
Dollar General Corp., Term Loan B2, 3.06% 20141,6,7		1,000			943
Dollar General Corp. 10.625% 2015		6,550			7,107
Dollar General Corp. 11.875% 20171,8		9,000			9,765
J.C. Penney Co., Inc. 9.00% 2012		3,495			3,562
J.C. Penney Corp., Inc. 5.75% 2018		11,500			10,110
Lowe’s Companies, Inc. 8.25% 2010		8,450			8,979
Lowe’s Companies, Inc. 6.50% 2029		700			717
Sally Holdings LLC and Sally Capital Inc. 9.25% 2014		7,200			7,200
Sally Holdings LLC and Sally Capital Inc. 10.50% 2016		1,050			1,045
Kohl’s Corp. 7.25% 2029		3,452			3,549
Kohl’s Corp. 6.00% 2033		3,713			3,333
Edcon (Proprietary) Ltd. 4.527% 20141	€6,500				5,333
Edcon (Proprietary) Ltd. 4.527% 20141		500			410
Target Corp. 6.50% 2037	$	5,390			5,470
Neiman Marcus Group, Inc. 9.75% 20151,8		9,120			5,426
Marks and Spencer Group PLC 6.25% 20173		6,000			4,991
Home Depot, Inc. 5.875% 2036		5,000			4,425
Bon-Ton Department Stores, Inc. 10.25% 2014		10,000			4,400
Burlington Coat Factory Warehouse Corp. 11.125% 2014		2,700			2,160
					297,052
Consumer services — 0.39%
MGM MIRAGE 8.50% 2010		6,850			6,251
MGM MIRAGE 6.75% 2012		1,050			751
MGM MIRAGE 6.75% 2013		3,350			2,253
MGM MIRAGE 13.00% 20133		5,150			5,665
MGM MIRAGE 5.875% 2014		6,575			4,257
MGM MIRAGE 10.375% 20143		3,025			3,154
MGM MIRAGE 6.625% 2015		3,600			2,367
MGM MIRAGE 11.125% 20173		4,375			4,659
Marriott International, Inc., Series J, 5.625% 2013		8,305			8,206
Marriott International, Inc., Series I, 6.375% 2017		13,750			13,085
Mohegan Tribal Gaming Authority 6.375% 2009		12,700			12,414
Mohegan Tribal Gaming Authority 8.00% 2012		3,675			2,811
Mohegan Tribal Gaming Authority 7.125% 2014		5,250			3,596
Seminole Tribe of Florida 5.798% 20133,6		9,865			8,928
Seminole Tribe of Florida 7.804% 20203,6		9,370			7,353
Boyd Gaming Corp. 7.75% 2012		2,550			2,384
Boyd Gaming Corp. 6.75% 2014		8,925			7,274
Boyd Gaming Corp. 7.125% 2016		4,000			2,985
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 20122		12,025			10,952
Royal Caribbean Cruises Ltd. 8.75% 2011		2,465			2,367
Royal Caribbean Cruises Ltd. 11.875% 2015		6,025			5,935
ERAC USA Finance Co. 7.00% 20373		10,000			7,974
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014		8,415			7,447
Education Management LLC and Education Management Finance Corp. 8.75% 2014		4,800			4,680
Pinnacle Entertainment, Inc. 7.50% 2015		4,755			4,089
Seneca Gaming Corp. 7.25% 2012		3,025			2,632
Seneca Gaming Corp., Series B, 7.25% 2012		1,175			1,022
Wendy’s/Arby’s Group Inc. 10.00% 20163		1,100			1,058
					146,549
Automobiles & components — 0.26%
DaimlerChrysler North America Holding Corp. 7.20% 2009		5,000			5,023
DaimlerChrysler North America Holding Corp., Series E, 5.75% 2011		14,925			15,237
DaimlerChrysler North America Holding Corp. 5.875% 2011		9,400			9,560
DaimlerChrysler North America Holding Corp. 7.75% 2011		14,930			15,565
DaimlerChrysler North America Holding Corp. 7.30% 2012		1,455			1,508
DaimlerChrysler North America Holding Corp. 6.50% 2013		18,775			19,103
Allison Transmission Holdings, Inc., Term Loan B, 3.07% 20141,6,7		5,772			4,630
Allison Transmission Holdings, Inc. 11.00% 20153		750			596
Allison Transmission Holdings, Inc. 12.00% 20151,3,8		11,700			8,248
Tenneco Automotive Inc., Series B, 10.25% 2013		2,572			2,450
Tenneco Automotive Inc. 8.625% 2014		3,025			2,193
Tenneco Inc. 8.125% 2015		3,250			2,584
Ford Motor Co. 9.50% 2011		2,000			1,570
FCE Bank PLC 7.125% 2013	€4,500				5,175
General Motors Corp. 7.20% 20114	$	3,975			517
General Motors Corp. 7.125% 20134		3,595			458
General Motors Corp. 8.80% 20214		10,542			1,318
Goodyear Tire & Rubber Co. 5.01% 20091		1,150			1,144
TRW Automotive Inc. 7.00% 20143		1,500			1,088
Visteon Corp. 8.25% 20104		2,912			102
Visteon Corp. 12.25% 20163,4		7,517			301
Cooper-Standard Automotive Inc. 7.00% 20124		425			85
Cooper-Standard Automotive Inc. 8.375% 20144		2,200			143
Delphi Automotive Systems Corp. 6.55% 20064		500			3
Delphi Automotive Systems Corp. 6.50% 20094		6,000			38
Delphi Corp. 6.50% 20134		7,020			105
Delphi Automotive Systems Corp. 7.125% 20294		1,350			8
					98,752
Consumer durables & apparel — 0.16%
Fortune Brands, Inc. 6.375% 2014		20,000			19,907
Hanesbrands Inc., Series B, 4.593% 20141		11,105			8,995
Standard Pacific Corp. 7.75% 2013		6,890			4,995
Standard Pacific Corp. 6.25% 2014		775			550
Standard Pacific Corp. 7.00% 2015		4,340			3,125
Meritage Corp. 7.00% 2014		1,850			1,526
Meritage Homes Corp. 6.25% 2015		5,275			4,167
Meritage Corp. 7.731% 20172,3		4,000			2,665
Beazer Homes USA, Inc. 8.625% 2011		4,625			3,168
Beazer Homes USA, Inc. 8.125% 2016		4,490			2,178
Sealy Mattress Co. 8.25% 2014		4,200			3,476
Sealy Mattress Co. 10.875% 20163		500			526
KB Home 6.25% 2015		3,170			2,726
Jarden Corp. 8.00% 2016		2,375			2,274
					60,278
TELECOMMUNICATION SERVICES — 3.49%
Verizon Communications Inc. 3.75% 20113		111,950			114,293
ALLTEL Corp. 7.00% 2012		18,299			19,778
Verizon Global Funding Corp. 7.375% 2012		11,835			13,249
Verizon Communications Inc. 5.25% 2013		14,500			15,230
Verizon Communications Inc. 5.55% 20143		14,710			15,632
Verizon Communications Inc. 5.50% 2017		11,495			11,533
Verizon Communications Inc. 5.50% 2018		8,540			8,496
Verizon Communications Inc. 6.10% 2018		24,000			24,660
Verizon Communications Inc. 8.50% 20183		16,000			19,154
Verizon Communications Inc. 8.75% 2018		34,000			40,339
Verizon Communications Inc. 6.35% 2019		14,500			15,112
Verizon Global Funding Corp. 7.75% 2030		9,501			10,640
Telecom Italia Capital SA 4.875% 2010		1,260			1,273
Olivetti Finance NV 7.25% 2012	€8,830				13,314
Telecom Italia Capital SA, Series B, 5.25% 2013	$	5,480			5,379
Telecom Italia Capital SA 4.95% 2014		9,867			9,457
Telecom Italia Capital SA 5.25% 2015		77,500			74,911
Telecom Italia Capital SA 6.999% 2018		9,900			10,032
Telecom Italia Capital SA 7.175% 2019		41,500			42,143
Telecom Italia SpA 7.75% 2033	€8,270				11,981
Telicom Italia Capital SA 6.00% 2034	$	3,000			2,541
Telecom Italia Capital SA 7.20% 2036		2,000			1,945
Telecom Italia Capital SA 7.721% 2038		32,500			33,193
AT&T Corp. 7.30% 20111		4,734			5,194
AT&T Wireless Services, Inc. 7.875% 2011		15,355			16,566
SBC Communications Inc. 5.875% 2012		20,337			21,842
AT&T Wireless Services, Inc. 8.125% 2012		12,630			14,149
AT&T Inc. 4.95% 2013		17,000			17,694
SBC Communications Inc. 5.10% 2014		4,745			4,935
SBC Communications Inc. 5.625% 2016		45,200			46,582
AT&T Inc. 5.50% 2018		5,910			5,911
AT&T Inc. 5.60% 2018		17,580			17,706
AT&T Inc. 5.80% 2019		11,550			11,748
SBC Communications Inc. 6.45% 2034		11,175			11,054
AT&T Inc. 6.55% 2039		13,425			13,445
Sprint Nextel Corp. 1.001% 20101		1,865			1,759
Nextel Communications, Inc., Series E, 6.875% 2013		66,830			55,636
Nextel Communications, Inc., Series F, 5.95% 2014		51,963			41,181
Nextel Communications, Inc., Series D, 7.375% 2015		48,155			38,644
France Télécom 7.75% 20111		32,000			34,623
France Télécom 7.25% 2013	€4,800				7,623
France Télécom 4.375% 2014	$	19,010			19,179
France Télécom 5.375% 2019		12,690			12,806
Vodafone Group PLC 7.75% 2010		20,000			20,679
Vodafone Group PLC 5.625% 2017		16,080			16,357
Vodafone Group PLC 5.45% 2019		25,000			24,630
Vodafone Group PLC 6.15% 2037		6,000			5,922
American Tower Corp. 7.125% 2012		14,850			15,017
American Tower Corp. 7.00% 2017		16,550			16,095
American Tower Corp. 7.25% 20193		4,875			4,741
Telefónica Emisiones, SAU 4.949% 2015		13,150			13,382
Telefónica Emisiones, SAU 6.421% 2016		5,750			6,157
Telefónica Emisiones, SAU 5.877% 2019		12,010			12,406
Deutsche Telekom International Finance BV 5.875% 2013		4,000			4,200
Deutsche Telekom International Finance BV 4.875% 2014		16,250			16,373
Deutsche Telekom International Finance BV 6.75% 2018		10,000			10,631
Qwest Capital Funding, Inc. 7.90% 2010		1,400			1,407
Qwest Capital Funding, Inc. 7.25% 2011		16,450			16,039
Qwest Communications International Inc. 7.25% 2011		6,000			5,850
Qwest Corp. 7.875% 2011		1,000			1,005
MetroPCS Wireless, Inc. 9.25% 2014		11,950			11,935
MetroPCS Wireless, Inc. 9.25% 20143		10,925			10,870
Cricket Communications, Inc. 9.375% 2014		12,185			12,063
Cricket Communications, Inc. 7.75% 20163		10,050			9,723
British Telecommunications PLC 5.15% 2013		5,000			4,987
British Telecommunications PLC 5.95% 2018		17,472			15,772
Centennial Communications Corp. 6.958% 20131		6,500			6,500
Centennial Communications Corp. 10.00% 2013		2,750			2,915
Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013		900			933
Centennial Communications Corp., Centennial Cellular Operating Co. LLC and Centennial
Puerto Rico Operations Corp. 8.125% 20141		9,300			9,556
PCCW-HKT Capital Ltd. 8.00% 20111,3		15,000			15,804
PCCW-HKT Capital No. 3 Ltd. 5.25% 20153		2,750			2,471
Crown Castle International Corp. 9.00% 2015		8,275			8,461
Crown Castle International Corp. 7.75% 20173		9,675			9,481
Koninklijke KPN NV 8.00% 2010		6,550			6,875
Koninklijke KPN NV 4.75% 2017	€3,500				4,890
Koninklijke KPN NV 8.375% 2030	$	5,200			5,960
Digicel Group Ltd. 12.00% 20143		12,025			12,205
Digicel Group Ltd. 8.875% 20153		5,500			4,593
Digicel Group Ltd. 8.875% 2015		400			334
Windstream Corp. 8.125% 2013		10,650			10,357
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015		2,850			2,795
Windstream Corp. 8.625% 2016		3,300			3,176
Singapore Telecommunications Ltd. 6.375% 2011		3,475			3,773
Singapore Telecommunications Ltd. 6.375% 20113		2,050			2,226
Singapore Telecommunications Ltd. 7.375% 20313		3,800			4,506
Rogers Wireless Inc. 7.25% 2012		713			767
Rogers Wireless Inc. 7.50% 2015		6,300			6,861
SK Telecom Co., Ltd. 4.25% 20113		6,000			5,979
Intelsat Jackson Holding Co., Series B, 8.875% 20153		1,950			1,891
Intelsat, Ltd. 8.875% 2015		775			752
Intelsat Jackson Holding Co. 9.50% 20163		2,100			2,121
NTELOS Inc., Term Loan B, 2.56% 20111,6,7		4,788			4,682
Orascom Telecom 7.875% 20143		3,275			2,784
Cincinnati Bell Inc. 7.25% 2013		2,800			2,576
Millicom International Cellular SA 10.00% 2013		2,430			2,476
América Móvil, SAB de CV 8.46% 2036	MXN27,000				1,519
Hawaiian Telcom Communications, Inc. 9.75% 20134	$	7,715			116
Hawaiian Telcom Communications, Inc. 8.765% 20131,4		3,605			54
Hawaiian Telcom Communications, Inc., Term Loan C, 4.75% 20141,6,7,8		2,130			1,286
Hawaiian Telcom Communications, Inc., Series B, 12.50% 20154		3,050			—
Nordic Telephone Co. Holding ApS 8.875% 20163		1,000			970
Level 3 Financing, Inc. 9.25% 2014		1,000			825
Citizens Communications Co. 7.875% 2027		775			624
Trilogy International Partners LLC, Term Loan B, 4.098% 20121,6,7		275			187
					1,323,084
ENERGY — 3.39%
Enbridge Energy Partners, LP, Series B, 6.50% 2018		45,455			44,865
Enbridge Energy Partners, LP 9.875% 2019		28,255			32,810
Enbridge Energy Partners, LP, Series B, 7.50% 2038		30,700			30,919
Enbridge Energy Partners, LP 8.05% 20771		67,100			49,049
Kinder Morgan Energy Partners LP 6.75% 2011		5,500			5,767
Kinder Morgan Energy Partners LP 5.85% 2012		6,500			6,781
Kinder Morgan Energy Partners LP 5.00% 2013		14,279			14,064
Kinder Morgan Energy Partners LP 5.125% 2014		34,052			33,907
Kinder Morgan Energy Partners LP 5.625% 2015		14,100			14,268
Kinder Morgan Energy Partners LP 6.00% 2017		22,375			22,231
Kinder Morgan Energy Partners LP 9.00% 2019		9,865			11,239
Kinder Morgan Energy Partners LP 6.85% 2020		44,045			45,231
TransCanada PipeLines Ltd. 6.50% 2018		35,000			38,144
TransCanada PipeLines Ltd. 7.125% 2019		9,400			10,628
TransCanada PipeLines Ltd. 6.20% 2037		1,250			1,284
TransCanada PipeLines Ltd. 7.25% 2038		2,145			2,447
TransCanada PipeLines Ltd. 7.625% 2039		2,175			2,547
TransCanada PipeLines Ltd. 6.35% 20671		85,555			59,544
Gaz Capital SA, Series 13, 6.605% 2018	€8,200				9,430
Gaz Capital SA 6.51% 20223	$	82,475			62,062
Gaz Capital SA 7.288% 20373		16,150			12,193
Ras Laffan Liquefied Natural Gas Co. Ltd. 3.437% 20093,6		5,436			5,408
Ras Laffan Liquefied Natural Gas Co. Ltd. 3.437% 20096		300			298
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 20143,6		15,570			16,370
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 20146		1,000			1,051
Ras Laffan Liquefied Natural Gas III 5.832% 20166		2,000			1,957
Ras Laffan Liquefied Natural Gas II 5.298% 20203,6		45,970			42,126
Ras Laffan Liquefied Natural Gas II 5.298% 20206		2,000			1,833
Ras Laffan Liquefied Natural Gas III 5.838% 20273,6		15,000			12,601
Ras Laffan Liquefied Natural Gas III 6.332% 20276		2,000			1,726
Williams Companies, Inc. 3.208% 20101,3		7,500			7,099
Williams Companies, Inc. 6.375% 20103		1,500			1,500
Williams Companies, Inc. 7.125% 2011		500			510
Transcontinental Gas Pipe Line Corp. 6.40% 2016		10,000			10,277
Williams Companies, Inc. 8.75% 20203		3,000			3,133
Williams Companies, Inc. 7.875% 2021		37,370			36,880
Transcontinental Gas Pipe Line Corp. 7.25% 2026		1,750			1,778
Williams Companies, Inc. 8.75% 2032		18,916			19,057
Rockies Express Pipeline LLC 4.50% 20091,3		20,000			20,003
Rockies Express Pipeline LLC 6.25% 20133		6,940			6,992
Rockies Express Pipeline LLC 6.85% 20183		32,150			34,044
Enbridge Inc. 5.80% 2014		9,200			9,587
Enbridge Inc. 4.90% 2015		3,250			3,111
Enbridge Inc. 5.60% 2017		42,080			41,311
Enterprise Products Operating LP, Series B, 4.625% 2009		9,500			9,529
Enterprise Products Operating LP 4.95% 2010		8,750			8,881
Enterprise Products Operating LP 7.50% 2011		5,000			5,243
Enterprise Products Operating LLC 5.65% 2013		17,850			18,303
Enterprise Products Operating LP 7.034% 20681		9,345			6,902
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 20143,6		36,030			32,607
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 20146		4,657			4,214
Husky Energy Inc. 5.90% 2014		555			581
Husky Energy Inc. 6.20% 2017		16,415			16,681
Husky Energy Inc. 7.25% 2019		15,830			17,328
Chevron Corp. 3.95% 2014		4,400			4,535
Chevron Corp. 4.95% 2019		27,830			28,812
Shell International Finance B.V. 4.00% 2014		18,830			19,356
Shell International Finance B.V. 6.375% 2038		11,250			12,296
Phillips Petroleum Co. 8.75% 2010		4,000			4,271
Polar Tankers, Inc. 5.951% 20373,6		27,355			25,428
Pemex Finance Ltd. 8.875% 20106		9,600			9,909
Pemex Finance Ltd., Series 1999-2, Class A-3, 10.61% 20172,6		11,700			13,209
Pemex Project Funding Master Trust 5.75% 2018		3,150			2,914
Pemex Project Funding Master Trust 6.625% 2035		3,500			3,170
Energy Transfer Partners, LP 5.95% 2015		3,465			3,495
Energy Transfer Partners, LP 9.00% 2019		16,340			18,691
Energy Transfer Partners, LP 9.70% 2019		4,030			4,634
Devon Energy Corp. 6.30% 2019		10,080			10,791
Devon Financing Corp. ULC 7.875% 2031		10,195			12,039
StatoilHydro ASA 3.875% 2014		7,000			7,107
StatoilHydro ASA 5.25% 2019		15,230			15,703
Apache Corp. 6.00% 2013		2,420			2,636
Apache Corp. 5.625% 2017		7,200			7,565
Apache Corp. 6.90% 2018		7,145			8,195
Qatar Petroleum 5.579% 20113,6		17,069			17,355
XTO Energy Inc. 6.25% 2017		15,750			16,600
BP Capital Markets PLC 3.625% 20143		16,000			15,975
Canadian Natural Resources Ltd. 5.70% 2017		14,000			14,179
Petroplus Finance Ltd. 6.75% 20143		6,200			5,363
Petroplus Finance Ltd. 7.00% 20173		10,175			8,496
Sunoco, Inc. 4.875% 2014		14,830			13,830
Marathon Oil Corp. 5.90% 2018		10,000			10,043
Gulfstream Natural Gas 5.56% 20153		3,500			3,332
Gulfstream Natural Gas 6.19% 20253		7,235			6,420
Delek & Avner-Yam Tethys Ltd. 5.326% 20133,6		9,092			9,043
Petroleum Export Ltd., Class A-1, MBIA insured, 4.623% 20103,6		7,667			7,522
Petroleum Export Ltd., Class A-2, XLCA insured, 4.633% 20103,6		1,444			1,417
Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011		5,725			5,742
Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017		3,475			3,175
Nakilat Inc., Series A, 6.067% 20333,6		10,800			8,817
Drummond Co., Inc. 7.375% 20163		8,900			6,541
TEPPCO Partners LP 7.00% 20671		4,055			3,052
PETRONAS Capital Ltd. 7.00% 20123		2,250			2,487
					1,282,476
UTILITIES — 3.25%
National Rural Utilities Cooperative Finance Corp. 5.50% 2013		46,600			49,270
National Rural Utilities Cooperative Finance Corp. 5.45% 2017		2,880			2,954
National Rural Utilities Cooperative Finance Corp. 5.45% 2018		5,500			5,614
National Rural Utilities Cooperative Finance Corp., Collateral Trust Bonds, 10.375% 2018		57,125			71,738
MidAmerican Energy Holdings Co. 5.875% 2012		15,000			15,987
MidAmerican Energy Co. 5.125% 2013		7,500			7,792
PacifiCorp, First Mortgage Bonds, 5.45% 2013		2,875			3,059
MidAmerican Energy Co. 4.65% 2014		5,000			5,204
MidAmerican Energy Co. 5.95% 2017		3,000			3,239
MidAmerican Energy Co. 5.30% 2018		5,000			5,195
PacifiCorp., First Mortgage Bonds, 5.65% 2018		3,800			4,050
MidAmerican Energy Holdings Co. 5.75% 2018		47,700			49,703
MidAmerican Energy Holdings Co. 6.125% 2036		13,750			13,636
E.ON International Finance BV 5.80% 20183		74,575			77,722
Ohio Edison Co. 6.40% 2016		13,750			14,064
Jersey Central Power & Light Co. 5.65% 2017		3,000			2,944
Cleveland Electric Illuminating Co. 5.70% 2017		8,640			8,431
Pennsylvania Electric Co. 6.05% 2017		5,165			5,036
Cleveland Electric Illuminating Co. 8.875% 2018		24,600			29,712
Jersey Central Power & Light Co. 7.35% 2019		1,700			1,872
Toledo Edison Co. 7.25% 2020		10,000			11,155
Ohio Edison Co. 6.875% 2036		2,315			2,340
Edison Mission Energy 7.50% 2013		5,625			5,062
Southern California Edison Co., First and Refunding Mortgage Bonds, Series 2009-B, 4.15% 2014		3,500			3,560
Southern California Edison Co., First and Refunding Mortgage Bonds, Series 2005-A, 5.00% 2016		4,000			4,101
Edison Mission Energy 7.75% 2016		7,125			5,842
Midwest Generation, LLC, Series B, 8.56% 20166		17,347			17,000
Edison Mission Energy 7.00% 2017		7,175			5,543
Southern California Edison Co., First and Refunding Mortgage Bonds, Series 2008-B, 5.50% 2018		1,000			1,063
Edison Mission Energy 7.20% 2019		15,450			11,587
Homer City Funding LLC 8.734% 20266		13,609			12,180
Edison Mission Energy 7.625% 2027		1,900			1,226
Southern California Edison Co., First and Refunding Mortgage Bonds, Series 2006-E, 5.55% 2037		3,500			3,516
Consumers Energy Co., First Mortgage Bonds, Series P, 5.50% 2016		2,500			2,530
Consumers Energy Co. First Mortgage Bonds 5.15% 2017		5,000			4,924
Consumers Energy Co. 5.65% 2018		18,325			18,591
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019		30,575			32,049
Consumers Energy Co., First Mortgage Bonds, 6.70% 2019		2,380			2,595
Abu Dhabi National Energy Co. PJSC (TAQA) 5.62% 20123		3,060			3,101
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 20163		34,975			32,805
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20173		12,000			11,397
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 20363		14,500			12,362
Carolina Power & Light Co. d/b/a Progress Energy Carolinas, Inc., First Mortgage Bonds, 5.125% 2013		5,000			5,297
Progress Energy, Inc. 6.05% 2014		2,100			2,210
Carolina Power & Light Co. d/b/a Progress Energy Carolinas, Inc. 5.25% 2015		6,000			6,302
Progress Energy Florida, Inc., First Mortgage Bonds, 5.65% 2018		3,150			3,367
Progress Energy, Inc. 7.05% 2019		32,900			36,568
Israel Electric Corp. Ltd. 7.25% 20193		39,800			39,380
Israel Electric Corp. Ltd. 8.10% 20963		6,250			5,540
NGG Finance PLC 6.125% 2011	€3,480				5,150
National Grid PLC 6.30% 2016	$	37,605			38,690
National Grid Co. PLC 5.875% 2024	£	170			272
Cilcorp Inc. 8.70% 2009	$	1,000			985
AmerenEnergy Generating Co., Series D, 8.35% 2010		1,500			1,549
Union Electric Co. 4.65% 2013		3,000			2,962
Ameren Corp. 8.875% 2014		15,000			15,497
Union Electric Co. 5.40% 2016		5,750			5,566
Cilcorp Inc. 9.375% 2029		12,265			15,147
Veolia Environnement 5.25% 2013		18,235			18,866
Veolia Environnement 6.00% 2018		4,945			5,049
Veolia Environnement 6.125% 2033	€13,640				17,443
PSEG Power LLC 7.75% 2011	$	16,410			17,571
Public Service Electric and Gas Co., Series E, 5.30% 2018		12,690			13,284
PSEG Power LLC 8.625% 2031		7,350			8,685
Energy East Corp. 6.75% 2012		7,155			7,676
Scottish Power PLC 5.375% 2015		31,415			30,263
Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012		700			731
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series Q, 5.45% 2013		4,275			4,389
Sierra Pacific Resources 8.625% 2014		900			891
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015		2,550			2,615
Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016		5,975			6,041
Nevada Power Co., General and Refunding Mortgage Notes, Series S, 6.50% 2018		10,025			10,392
Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019		2,500			2,676
Oncor Electric Delivery Co. LLC 6.80% 2018		25,000			26,761
Northern States Power Co., First Mortgage Bonds, 5.25% 2018		13,500			14,075
Public Service Co. of Colorado 5.80% 2018		6,300			6,809
Public Service Co. of Colorado 5.125% 2019		4,350			4,479
Intergen Power 9.00% 20173		23,450			22,336
Ohio Power Co., Series H, 4.85% 2014		5,965			5,921
Ohio Power Co., Series K, 6.00% 2016		15,000			15,299
Southern California Gas Co., First Mortgage Bonds, Series II, 4.375% 2011		5,000			5,151
San Diego Gas & Electric Co., Series CCC, 5.30% 2015		10,000			10,384
San Diego Gas & Electric Co., Series DDD, 6.00% 2026		5,000			5,251
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 3.821% 20141,6,7		4,506			3,233
Texas Competitive Electric Holdings Co. LLC, Series A, 10.25% 2015		12,215			7,665
Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 2015		10,925			6,855
Texas Competitive Electric Holdings Co. LLC 11.25% 20161,8		5,545			2,579
Virginia Electric and Power Co., Series 2003-A, 4.75% 2013		6,000			6,144
Virginia Electric and Power Co., Series B, 5.95% 2017		10,000			10,752
Virginia Electric and Power Co., Series A, 6.00% 2037		1,250			1,295
Pacific Gas and Electric Co., First Mortgage Bonds, 4.20% 2011		2,000			2,065
Pacific Gas and Electric Co. 6.25% 2013		1,550			1,704
PG&E Corp. 5.75% 2014		2,000			2,133
Pacific Gas and Electric Co. 8.25% 2018		4,000			4,890
Pacific Gas and Electric Co., First Mortgage Bonds, 6.05% 2034		4,000			4,163
Commonwealth Edison Co., First Mortgage Bonds, Series 105, 5.40% 2011		9,000			9,419
Commonwealth Edison Co., First Mortgage Bonds, Series 106, 6.15% 2017		5,000			5,203
Electricité de France SA 5.50% 20143		2,000			2,155
Electricité de France SA 6.50% 20193		11,000			12,069
AES Corp. 9.375% 2010		129			131
AES Corp. 8.75% 20133		624			636
AES Corp. 7.75% 2015		10,500			9,818
AES Corp. 8.00% 2020		1,925			1,737
CenterPoint Energy Houston Electric, LLC, General Mortgage Bonds, Series U, 7.00% 2014		9,900			10,698
Old Dominion Electric Cooperative, Series 2003-A, 5.676% 20286		11,250			10,457
Duke Energy Corp., First and Refunding Mortgage Bonds, 4.50% 2010		4,500			4,560
Duke Energy Corp., First and Refunding Mortgage Bonds, 5.30% 2015		5,000			5,244
Anglian Water Services Financing PLC 4.625% 2013	€6,120				8,673
Anglian Water Services Financing PLC, Class A, 5.25% 2015	£	395			658
Empresa Nacional de Electricidad SA 8.35% 2013	$	5,000			5,608
Empresa Nacional de Electricidad SA 8.625% 2015		3,000			3,477
Alabama Power Co., Series R, 4.70% 2010		2,250			2,332
Alabama Power Co., Series 2007-D, 4.85% 2012		1,550			1,643
Alabama Power Co., Series 2008-B, 5.80% 2013		4,000			4,338
SP PowerAssets Ltd. 5.00% 20133		8,000			8,294
ENEL SpA 5.625% 2027	€5,760				7,793
NRG Energy, Inc. 7.25% 2014	$	4,200			4,085
NRG Energy, Inc. 7.375% 2016		3,700			3,510
Kern River Funding Corp. 4.893% 20183,6		7,686			7,317
Florida Power & Light Co. 4.85% 2013		5,000			5,202
Korea East-West Power Co., Ltd. 4.875% 20113		5,000			5,015
Enersis SA 7.375% 2014		3,000			3,215
Connecticut Light & Power Co., First and Refunding Mortgage Bonds, Series 2008A, 5.65% 2018		2,500			2,646
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20183,6		2,667			2,492
RWE Aktiengesellschaft and RWE Finance BV 6.375% 2013	£	290			510
Kelda Group PLC 6.625% 2031		165			268
					1,231,952
INDUSTRIALS — 3.12%
Transportation — 1.86%
Continental Airlines, Inc., Series 2001-1, Class A-2, 6.503% 20116	$	14,050			13,225
Continental Airlines, Inc., Series 1999-2, Class A-2, 7.056% 20116		10,000			9,938
Continental Airlines, Inc. 8.75% 2011		6,300			3,969
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20126		12,500			11,984
Continental Airlines, Inc., Series 2006-1, Class G, FGIC insured, 1.006% 20151,6		1,100			746
Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20162,6		27,654			24,335
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20176		158			119
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20186		1,473			1,079
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20186		1,499			1,132
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20192,6		17,234			14,132
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20196		36,415			31,613
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20196		3,351			2,580
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20202,6		21,436			19,828
Continental Airlines, Inc., Series 1999-1, Class B, 6.795% 20206		12,448			9,149
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 20206		8,547			5,214
Continental Airlines, Inc., Series 1999-2, Class A-1, 7.256% 20212,6		281			247
Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20216		9,006			7,340
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20222,6		14,115			11,856
Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20226		10,130			6,730
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20226		13,303			10,967
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20222,6		13,264			11,142
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20226		1,403			1,024
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20126		400			387
Northwest Airlines, Inc., Term Loan B, 4.10% 20131,6,7		2,759			2,193
Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111% 20136		1,000			944
Delta Air Lines, Inc., Series 2002-1, Class C, 7.779% 20132,6		2,244			2,065
Delta Air Lines, Inc., Second Lien Term Loan B, 3.568% 20141,6,7		4,900			3,376
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 20146		53,658			47,300
Delta Air Lines, Inc., Series 1992-A2, 9.20% 20144,6		4,760			4,522
Northwest Airlines, Inc., Term Loan A, 2.35% 20181,6,7		66,221			49,997
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20246		37,194			29,198
CSX Corp. 5.75% 2013		8,335			8,553
CSX Corp. 6.25% 2015		15,000			15,526
CSX Corp. 6.25% 2018		10,000			10,102
CSX Corp. 7.375% 2019		15,000			16,319
CSX Corp. 6.15% 2037		26,585			24,796
CSX Corp. 7.45% 2038		13,050			14,174
AMR Corp., Series B, 10.45% 2011		150			74
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20126		3,750			3,113
American Airlines, Inc., Series 2001-2, Class A-1, 6.978% 20126		11,848			11,273
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20126		18,165			14,714
AMR Corp. 9.00% 2012		5,800			2,900
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20136		38,010			35,872
American Airlines, Inc., Series 1991-C2, 9.73% 20146		6,410			3,013
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20196		8,058			4,271
Union Pacific Corp. 5.125% 2014		8,430			8,578
Union Pacific Corp. 5.75% 2017		20,750			20,951
Union Pacific Corp. 5.70% 2018		4,000			4,015
Union Pacific Railroad Co. Pass Through Trust, Series 2001-1, 6.63% 20226		7,015			7,182
Union Pacific Corp. 6.15% 2037		10,930			10,130
Norfolk Southern Corp. 5.75% 20163		3,390			3,516
Norfolk Southern Corp. 5.75% 2018		21,050			21,559
Norfolk Southern Corp. 5.90% 2019		14,000			14,536
Norfolk Southern Corp. 7.05% 2037		8,690			9,615
United Air Lines, Inc., Series 2001-1, Class A-2, 6.201% 20106		394			389
United Air Lines, Inc., Series 2000-2, Class B, 7.811% 20114,6		7,335			8,728
United Air Lines, Inc., Series 2000-2, Class A-2, 7.186% 20126		174			170
United Air Lines, Inc., Term Loan B, 2.313% 20141,6,7		8,418			4,938
United Air Lines, Inc., Series 2001-1, Class A-1, 6.071% 20146		66			65
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20156		205			203
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20213,6		894			469
United Air Lines, Inc., Series 2007-1, Class A, 6.636% 20246		27,163			21,034
Canadian National Railway Co. 5.55% 2018		16,500			17,267
Canadian National Railway Co. 6.375% 2037		8,000			8,793
Burlington Northern Santa Fe Corp. 6.15% 2037		10,890			10,911
BNSF Funding Trust I 6.613% 20551		15,000			11,896
TFM, SA de CV 9.375% 2012		3,800			3,629
Kansas City Southern Railway Co. 13.00% 2013		1,375			1,482
Kansas City Southern Railway Co. 8.00% 2015		2,000			1,870
RailAmerica Inc. 9.25% 20173		4,000			3,880
Southern Capital Corp. Pass Through Trust, Series 2002-1, Class G, MBIA insured, 5.70% 20233,6		4,263			2,186
Navios Maritime Holdings Inc. 9.50% 2014		1,980			1,661
CEVA Group PLC 10.00% 20143		500			342
					703,026
Capital goods — 0.99%
BAE Systems Holdings Inc. 4.75% 20103,6		10,350			10,393
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class B, 7.156% 20113,6		30,410			29,984
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 20133,6		29,189			29,254
BAE Systems Holdings Inc. 4.95% 20143		16,125			16,225
General Electric Capital Corp. 6.25% 2017	£	400			645
General Electric Capital Corp., Series A, 1.256% 20181	$	9,000			6,704
General Electric Capital Corp., Series A, 1.396% 20261		36,200			23,964
General Electric Capital Corp. 5.625% 2031	£	85			113
General Electric Capital Corp. 5.875% 2038	$	4,500			3,572
Hutchison Whampoa International Ltd. 7.00% 20113		24,300			25,864
Hutchison Whampoa International Ltd. 6.50% 20133		7,200			7,736
Northrop Grumman Systems Corp. 7.125% 2011		8,000			8,590
Northrop Grumman Corp. 7.75% 2016		13,420			15,391
Northrop Grumman Systems Corp. 7.75% 2031		3,000			3,765
Koninklijke Philips Electronics NV 5.75% 2018		20,000			20,194
Caterpillar Financial Services Corp. 4.30% 2010		2,400			2,462
Caterpillar Financial Services Corp., Series F, 5.125% 2011		500			525
Caterpillar Financial Services Corp., Series F, 4.85% 2012		210			220
Caterpillar Financial Services Corp., Series F, 4.90% 2013		10,500			10,470
Caterpillar Financial Services Corp., Series F, 5.50% 2016		4,050			4,012
Caterpillar Financial Services Corp., Series F, 7.15% 2019		1,850			1,984
Ashtead Group PLC 8.625% 20153		4,675			4,009
Ashtead Capital, Inc. 9.00% 20163		14,125			12,042
Raytheon Co. 6.40% 2018		9,500			10,532
Raytheon Co. 6.75% 2018		4,030			4,521
DynCorp International and DIV Capital Corp., Series B, 9.50% 2013		15,493			14,951
US Investigations Services, Inc., Term Loan B, 3.359% 20151,6,7		5,408			4,820
US Investigations Services, Inc. 10.50% 20153		7,005			5,744
US Investigations Services, Inc. 11.75% 20163		5,445			4,220
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 4.26% 20141,6,7		2,460			1,944
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 4.79% 20141,6,7		2,413			1,906
DAE Aviation Holdings, Inc. 11.25% 20153		17,285			10,112
John Deere Capital Corp. 5.40% 2011		3,500			3,645
John Deere Capital Corp., Series D, 4.50% 2013		3,000			3,063
John Deere Capital Corp. 5.10% 2013		1,100			1,144
John Deere Capital Corp., Series D, 5.50% 2017		3,650			3,690
John Deere Capital Corp., Series D, 5.75% 2018		2,000			2,044
Lockheed Martin Corp. 4.121% 2013		6,000			6,125
Lockheed Martin Corp., Series B, 6.15% 2036		6,000			6,427
Honeywell International Inc. 5.00% 2019		8,725			8,909
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.31% 20141,6,7		3,437			2,363
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.598% 20141,6,7		196			135
Hawker Beechcraft Acquisition Co., LLC 8.50% 2015		1,325			689
Hawker Beechcraft Acquisition Co., LLC 9.625% 20151,8		11,125			4,728
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017		570			242
B/E Aerospace 8.50% 2018		6,920			6,539
NTK Holdings Inc. 0%/10.75% 20146,9		15,118			1,285
THL Buildco, Inc. 8.50% 2014		11,450			3,320
Atlas Copco AB 5.60% 20173		4,525			4,358
United Rentals (North America), Inc., Series B, 6.50% 2012		3,000			2,925
RBS Global, Inc. and Rexnord LLC 9.50% 2014		2,625			2,257
RBS Global, Inc. and Rexnord LLC 8.875% 2016		850			608
RSC Holdings III, LLC, Second Lien Term Loan B, 4.67% 20131,6,7		2,838			2,182
Atrium Companies, Inc., Term Loan B, 11.75% 20121,6,7,8		4,802			1,945
Atrium Companies, Inc. 15.00% 20123,8		4,040			101
Alion Science and Technology Corp. 10.25% 2015		3,690			1,494
H&E Equipment Services, Inc. 8.375% 2016		1,750			1,413
TransDigm Inc. 7.75% 2014		1,325			1,265
Esco Corp. 4.504% 20131,3		325			255
Esco Corp. 8.625% 20133		1,100			957
Esterline Technologies Corp. 6.625% 2017		1,050			965
Tyco International Ltd. 6.875% 2021		1,000			947
Sequa Corp., Term Loan B, 4.08% 20141,6,7		874			679
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014		400			323
					373,890
Commercial & professional services — 0.27%
Nielsen Finance LLC, Term Loan B, 2.321% 20131,6,7		3,798			3,439
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014		25,325			24,090
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 20143		1,650			1,646
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20169		35,125			22,743
Nielsen Finance LLC and Nielsen Finance Co. 11.50% 20163		19,480			19,042
ARAMARK Corp., Term Loan B, 2.473% 20141,6,7		4,158			3,847
ARAMARK Corp., Letter of Credit, 4.721% 20141,6,7		264			244
ARAMARK Corp. 4.528% 20151		3,450			2,820
ARAMARK Corp. 8.50% 2015		9,450			9,214
Allied Waste North America, Inc., Series B, 6.50% 2010		500			509
Allied Waste North America, Inc., Series B, 5.75% 2011		2,500			2,520
Allied Waste North America, Inc., Series B, 6.125% 2014		3,500			3,539
Allied Waste North America, Inc., Series B, 7.375% 2014		4,750			4,850
Allied Waste North America, Inc. 6.875% 2017		1,000			991
Iron Mountain Inc. 7.75% 2015		2,425			2,340
FTI Consulting, Inc. 7.625% 2013		2,300			2,248
					104,082
HEALTH CARE — 2.88%
Pharmaceuticals, biotechnology & life sciences — 1.72%
Roche Holdings Inc. 5.00% 20143		36,900			38,853
Roche Holdings Inc. 6.00% 20193		78,000			83,444
Roche Holdings Inc. 7.00% 20393		26,060			30,122
Pfizer Inc. 4.45% 2012		6,000			6,299
Pfizer Inc. 5.35% 2015		5,000			5,380
Pfizer Inc. 6.20% 2019		67,770			74,251
Pfizer Inc. 7.20% 2039		8,000			9,531
GlaxoSmithKline Capital Inc. 4.85% 2013		20,000			20,939
GlaxoSmithKline Capital Inc. 5.65% 2018		24,400			25,890
GlaxoSmithKline Capital Inc. 6.375% 2038		33,650			36,718
Schering-Plough Corp. 5.55% 20131		14,559			15,654
Schering-Plough Corp. 5.375% 2014	€11,630				17,128
Schering-Plough Corp. 6.00% 2017	$	47,240			50,393
Biogen Idec Inc. 6.00% 2013		36,525			37,408
Biogen Idec Inc. 6.875% 2018		27,000			27,400
Abbott Laboratories 5.125% 2019		35,560			36,684
Abbott Laboratories 6.00% 2039		6,040			6,401
Bayer AG 5.00% (undated)1	€23,085				27,390
Novartis Capital Corp. 4.125% 2014	$	13,375			13,782
Novartis Securities Investment Ltd. 5.125% 2019		12,530			12,843
Merck & Co., Inc. 4.00% 2015		5,000			5,095
Merck & Co., Inc. 5.00% 2019		15,380			15,603
Elan Finance PLC and Elan Finance Corp. 4.883% 20111		430			378
Elan Finance PLC and Elan Finance Corp. 7.75% 2011		3,125			2,906
Elan Finance PLC and Elan Finance Corp. 4.793% 20131		5,135			4,031
Elan Finance PLC and Elan Finance Corp. 8.875% 2013		10,910			10,037
Wyeth 5.50% 2016		15,000			15,723
AstraZeneca PLC 5.40% 2012		12,000			13,027
Warner Chilcott Corp. 8.75% 2015		5,150			5,150
Amgen Inc. 4.00% 2009		4,000			4,055
					652,515
Health care equipment & services — 1.16%
Cardinal Health, Inc. 6.75% 2011		13,625			14,349
Cardinal Health, Inc. 5.50% 2013		7,587			7,542
Cardinal Health, Inc. 4.00% 2015		5,500			4,796
Cardinal Health, Inc. 5.80% 2016		12,500			12,117
Cardinal Health, Inc. 5.85% 2017		23,365			21,892
Allegiance Corp. 7.00% 2026		9,635			8,411
Coventry Health Care, Inc. 5.875% 2012		1,000			957
Coventry Health Care, Inc. 6.30% 2014		54,670			48,264
Coventry Health Care, Inc. 6.125% 2015		3,110			2,702
Coventry Health Care, Inc. 5.95% 2017		12,430			9,759
Express Scripts Inc. 5.25% 2012		17,105			17,684
Express Scripts Inc. 6.25% 2014		23,133			24,503
Express Scripts Inc. 7.25% 2019		4,493			4,963
Hospira, Inc. 1.078% 20101		12,000			11,895
Hospira, Inc. 5.90% 2014		4,510			4,679
Hospira, Inc. 6.05% 2017		30,675			30,003
Tenet Healthcare Corp. 7.375% 2013		5,895			5,335
Tenet Healthcare Corp. 9.25% 2015		7,170			6,596
Tenet Healthcare Corp. 8.875% 20193		30,080			30,381
UnitedHealth Group Inc. 0.789% 20101		6,255			6,198
UnitedHealth Group Inc. 5.25% 2011		2,463			2,543
UnitedHealth Group 6.00% 2017		24,920			24,061
HealthSouth Corp. 7.218% 20141		12,600			11,560
HealthSouth Corp. 10.75% 2016		10,980			11,090
Humana Inc. 6.45% 2016		22,962			20,232
Aetna Inc. 5.75% 2011		17,500			18,304
HCA Inc., Term Loan B, 2.848% 20131,6,7		10,348			9,372
HCA Inc. 9.125% 2014		295			293
HCA Inc. 9.25% 2016		530			523
HCA Inc. 9.625% 20161,8		557			553
HCA Inc. 8.50% 20193		2,870			2,827
Bausch & Lomb Inc. 9.875% 2015		13,625			13,080
VWR Funding, Inc. 10.25% 20151,8		16,179			12,862
PTS Acquisition Corp. 9.50% 20151,8		16,365			8,612
Surgical Care Affiliates, Inc. 9.625% 20151,3,8		3,575			2,770
Surgical Care Affiliates, Inc. 10.00% 20173		7,845			5,491
WellPoint, Inc. 5.00% 2011		1,000			1,026
WellPoint, Inc. 5.25% 2016		6,455			6,124
Team Finance LLC and Health Finance Corp. 11.25% 2013		3,525			3,622
Symbion Inc. 11.75% 20151,8		5,215			3,468
Boston Scientific Corp. 5.45% 2014		1,565			1,448
Boston Scientific Corp. 5.125% 2017		1,190			1,017
Boston Scientific Corp. 7.00% 2035		920			750
Viant Holdings Inc. 10.125% 20173		2,929			2,314
United Surgical Partners International Inc. 9.25% 20171,8		820			672
CHS/Community Health Systems, Inc. 8.875% 2015		45			44
					437,684
CONSUMER STAPLES — 1.42%
Food & staples retailing — 0.94%
Kroger Co. 5.00% 2013		8,750			8,959
Kroger Co. 7.50% 2014		8,455			9,470
Kroger Co. 6.40% 2017		58,325			61,933
CVS Caremark Corp. 0.968% 20101		5,000			4,966
CVS Caremark Corp. 6.60% 2019		10,880			11,646
CVS Corp. 5.789% 20263,6		14,347			12,255
CVS Corp. 6.036% 20283,6		34,086			29,202
CVS Caremark Corp. 6.943% 20303,6		24,009			21,781
Tesco PLC 5.50% 20173		21,325			21,759
Tesco PLC 5.50% 2033	£	265			413
Tesco PLC 6.15% 20373	$	20,000			20,300
Delhaize Group 5.875% 2014		6,850			7,040
Delhaize Group 6.50% 2017		26,205			26,801
SUPERVALU INC. 7.50% 2012		365			363
Albertson’s, Inc. 7.25% 2013		3,950			3,812
SUPERVALU INC. 7.50% 2014		830			801
SUPERVALU INC. 8.00% 2016		18,525			18,062
Albertson’s, Inc. 8.00% 2031		4,700			4,054
Safeway Inc. 6.25% 2014		3,725			4,002
Safeway Inc. 6.35% 2017		20,000			21,169
Stater Bros. Holdings Inc. 8.125% 2012		9,160			9,068
Stater Bros. Holdings Inc. 7.75% 2015		12,025			11,604
Wal-Mart Stores, Inc. 5.375% 2017		4,500			4,794
Wal-Mart Stores, Inc. 5.80% 2018		12,800			13,967
Duane Reade Inc. 5.129% 20101		4,992			4,655
Duane Reade Inc. 9.75% 2011		7,695			6,579
Vitamin Shoppe Industries Inc. 8.383% 20121		7,490			7,209
Walgreen Co. 4.875% 2013		5,000			5,310
Costco Wholesale Corp. 5.30% 2012		3,000			3,226
Ingles Markets Inc. 8.875% 20173		2,550			2,518
					357,718
Food, beverage & tobacco — 0.47%
Anheuser-Busch InBev NV 7.20% 20143		25,000			26,904
Anheuser-Busch InBev NV 8.625% 2017	€2,500				4,107
Anheuser-Busch InBev NV 6.875% 20193	$	7,740			8,041
Anheuser-Busch InBev NV 7.75% 20193		16,367			17,930
Altria Group, Inc. 9.70% 2018		7,925			9,100
Altria Group, Inc. 9.25% 2019		27,800			31,269
Tyson Foods, Inc. 10.50% 20143		4,750			5,177
Tyson Foods, Inc. 7.85% 20161		20,430			19,802
H.J. Heinz Co. 15.59% 20111,3		10,000			12,514
Constellation Brands, Inc. 8.375% 2014		2,075			2,091
Constellation Brands, Inc. 7.25% 2017		9,945			9,249
Coca-Cola Co. 4.875% 2019		7,500			7,721
British American Tobacco International Finance PLC 9.50% 20183		6,000			7,063
Smithfield Foods, Inc., Series B, 8.00% 2009		500			502
Smithfield Foods, Inc., Series B, 7.75% 2013		150			124
Smithfield Foods, Inc. 10.00% 20143		2,175			2,159
Smithfield Foods, Inc. 7.75% 2017		3,825			2,802
Dole Food Co., Inc. 8.875% 2011		4,920			4,822
Cott Beverages Inc. 8.00% 2011		4,950			4,628
Diageo Capital PLC 5.75% 2017		1,437			1,502
Pilgrim’s Pride Corp. 7.625% 20154		700			613
					178,120
Household & personal products — 0.01%
Elizabeth Arden, Inc. 7.75% 2014		2,625			2,284
MATERIALS — 0.93%
Rohm and Haas Co. 5.60% 2013		460			455
Dow Chemical Co. 7.60% 2014		27,250			28,096
Dow Chemical Co. 5.70% 2018		1,700			1,505
Dow Chemical Co. 8.55% 2019		40,300			40,438
Dow Chemical Co. 9.40% 2039		1,350			1,393
International Paper Co. 7.40% 2014		33,610			33,491
International Paper Co. 7.95% 2018		26,750			25,847
International Paper Co. 9.375% 2019		4,150			4,237
Rio Tinto Finance (USA) Ltd. 5.875% 2013		35,500			35,754
Rio Tinto Finance (USA) Ltd. 8.95% 2014		7,465			8,304
Rio Tinto Finance (USA) Ltd. 9.00% 2019		11,000			12,247
BHP Billiton Finance (USA) Ltd. 5.50% 2014		16,295			17,499
BHP Billiton Finance (USA) Ltd. 6.50% 2019		7,500			8,344
ArcelorMittal 6.125% 2018		29,425			25,789
Freeport-McMoRan Copper & Gold Inc. 6.875% 2014		800			821
Freeport-McMoRan Copper & Gold Inc. 8.25% 2015		6,690			6,765
Freeport-McMoRan Copper & Gold Inc. 8.375% 2017		10,230			10,321
Nalco Co. 7.75% 2011		1,336			1,343
Nalco Co. 8.875% 2013		5,335			5,468
Nalco Co. 9.00% 2013	€315				444
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 9.00% 2014	$	2,254			2,220
Nalco Co., Term Loan B, 6.50% 20161,6,7		740			743
Nalco Co. 8.25% 20173		1,135			1,146
UPM-Kymmene Corp. 5.625% 20143		11,220			8,874
Stora Enso Oyj 6.404% 20163		4,500			3,334
Stora Enso Oyj 7.25% 20363		5,690			3,392
Plastipak Holdings, Inc. 8.50% 20153		7,165			6,457
Commercial Metals Co. 6.50% 2017		7,000			6,071
Georgia Gulf Corp. 9.50% 20144		15,380			4,691
Praxair, Inc. 4.375% 2014		1,850			1,918
Praxair, Inc. 4.625% 2015		2,500			2,586
Weyerhaeuser Co. 7.375% 2032		2,500			2,000
Weyerhaeuser Co. 6.875% 2033		2,500			1,708
Lubrizol Corp. 8.875% 2019		3,000			3,491
Arbermarle Corp. 5.10% 2015		3,656			3,206
Rockwood Specialties Group, Inc. 7.50% 2014		2,320			2,192
Rockwood Specialties Group, Inc. 7.625% 2014	€500				659
Graphic Packaging International, Inc. 8.50% 2011	$	1,035			1,030
Graphic Packaging International, Inc. 9.50% 20173		1,820			1,802
Metals USA Holdings Corp. 8.208% 20121,8		2,570			1,551
Metals USA, Inc. 11.125% 2015		1,200			992
Jefferson Smurfit Corp. (U.S.) 8.25% 20124		3,140			1,193
Stone Container Corp. 8.375% 20124		620			240
Jefferson Smurfit Corp. (U.S.) 7.50% 20134		1,005			379
Smurfit-Stone Container Enterprises, Inc. 8.00% 20174		815			306
E.I. du Pont de Nemours and Co. 5.25% 2016		2,000			2,085
Owens-Brockway Glass Container Inc. 7.375% 20163		2,030			1,979
ICI Wilmington, Inc. 5.625% 2013		2,000			1,942
FMG Finance Pty Ltd. 10.625% 20163		2,000			1,930
Georgia-Pacific Corp. 8.125% 2011		1,500			1,508
Georgia-Pacific LLC 8.25% 20163		300			293
Yara International ASA 7.875% 20193		1,675			1,749
Boise Cascade, LLC and Boise Cascade Finance Corp. 7.125% 2014		3,195			1,701
Domtar Corp. 5.375% 2013		725			605
Domtar Corp. 7.125% 2015		1,270			1,067
Potash Corp. of Saskatchewan Inc. 5.875% 2036		1,600			1,518
C10 Capital (SPV) Ltd. 6.722% (undated)1,3		2,700			1,384
Associated Materials Inc. 9.75% 2012		1,425			1,254
AEP Industries Inc. 7.875% 2013		1,270			1,154
Airgas, Inc. 6.25% 2014		550			521
Airgas, Inc. 7.125% 20183		250			235
Smurfit Capital Funding PLC 7.50% 2025		800			576
Rock-Tenn Co. 9.25% 20163		515			527
Neenah Paper, Inc. 7.375% 2014		620			402
					353,172
INFORMATION TECHNOLOGY — 0.86%
Semiconductors & semiconductor equipment — 0.34%
KLA-Tencor Corp. 6.90% 2018		56,300			50,698
NXP BV and NXP Funding LLC 3.881% 20131		10,045			4,056
NXP BV and NXP Funding LLC 4.185% 20131	€6,075				3,280
NXP BV and NXP Funding LLC 7.875% 2014	$	25,085			11,539
NXP BV and NXP Funding LLC 8.625% 2015	€10,050				5,003
NXP BV and NXP Funding LLC 9.50% 2015	$	33,170			11,858
National Semiconductor Corp. 6.15% 2012		3,700			3,614
National Semiconductor Corp. 6.60% 2017		27,500			24,088
Freescale Semiconductor, Inc., Term Loan B, 2.07% 20131,6,7		2,930			2,150
Freescale Semiconductor, Inc. 8.875% 2014		1,350			689
Freescale Semiconductor, Inc., Term Loan B, 12.50% 20146,7		16,681			14,554
Freescale Semiconductor, Inc. 10.125% 2016		1,642			567
					132,096
Technology hardware & equipment — 0.33%
Electronic Data Systems Corp., Series B, 6.00% 20131		31,625			34,555
Electronic Data Systems Corp. 7.45% 2029		4,520			5,472
Jabil Circuit, Inc. 5.875% 2010		4,750			4,679
Jabil Circuit, Inc. 8.25% 2018		35,725			32,331
Sanmina-SCI Corp. 3.379% 20101,3		1,601			1,545
Sanmina-SCI Corp. 6.75% 2013		15,675			12,226
Sanmina-SCI Corp. 3.379% 20141,3		4,371			3,606
Sanmina-SCI Corp. 8.125% 2016		12,490			9,165
Hughes Communications, Inc. 9.50% 2014		12,425			12,177
Celestica Inc. 7.875% 2011		5,700			5,729
Sensata Technologies BV 8.00% 20141		4,975			2,469
					123,954
Software & services — 0.19%
First Data Corp., Term Loan B2, 3.065% 20141,6,7		15,491			11,717
First Data Corp. 9.875% 20153		9,975			7,132
First Data Corp. 9.875% 2015		1,975			1,412
Oracle Corp. 3.75% 2014		16,500			16,500
SunGard Data Systems Inc. 9.125% 2013		15,613			14,833
Ceridian Corp. 11.25% 2015		13,050			10,978
Serena Software, Inc. 10.375% 2016		11,262			9,010
					71,582
Total corporate bonds & notes					12,785,242
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 27.52%
U.S. Treasury 2.00% 2010		124,125			125,439
U.S. Treasury 2.00% 2010		30,000			30,523
U.S. Treasury 0.875% 2011		20,000			19,929
U.S. Treasury 1.125% 2011		112,705			112,160
U.S. Treasury 1.75% 2011		652,130			659,134
U.S. Treasury 2.375% 20112,10		25,511			26,298
U.S. Treasury 4.50% 2011		44,225			46,890
U.S. Treasury 4.625% 2011		290,400			313,972
U.S. Treasury 4.875% 2011		20,000			21,385
U.S. Treasury 5.125% 2011		20,000			21,577
U.S. Treasury 4.25% 2012		50,050			54,015
U.S. Treasury 4.875% 2012		83,825			91,451
U.S. Treasury 2.00% 2013		249,840			246,220
U.S. Treasury 1.875% 20132,10		11,609			11,921
U.S. Treasury 2.75% 2013		132,160			134,633
U.S. Treasury 2.75% 2013		50,000			51,441
U.S. Treasury 3.125% 2013		50,000			51,808
U.S. Treasury 3.375% 2013		142,760			149,630
U.S. Treasury 3.50% 2013		50,805			53,536
U.S. Treasury 3.625% 2013		45,000			47,615
U.S. Treasury 4.25% 2013		604,036			653,301
U.S. Treasury 1.75% 2014		550,090			534,682
U.S. Treasury 1.75% 2014		20,000			19,347
U.S. Treasury 1.875% 2014		185,975			181,188
U.S. Treasury 1.875% 2014		100,000			97,051
U.S. Treasury 2.25% 2014		282,500			278,748
U.S. Treasury 2.00% 20142,10		11,312			11,581
U.S. Treasury 4.00% 2014		66,000			70,654
U.S. Treasury 4.25% 2014		161,875			174,364
U.S. Treasury 4.25% 2015		134,000			143,684
U.S. Treasury 11.25% 2015		133,500			192,631
U.S. Treasury 2.375% 2016		267,400			254,864
U.S. Treasury 2.625% 2016		349,000			337,507
U.S. Treasury 2.625% 2016		50,000			48,535
U.S. Treasury 3.25% 2016		209,280			210,163
U.S. Treasury 5.125% 2016		56,500			63,382
U.S. Treasury 7.50% 2016		15,250			19,471
U.S. Treasury 2.375% 20172,10		10,573			11,047
U.S. Treasury 4.50% 2017		228,250			246,384
U.S. Treasury 4.625% 2017		180,925			196,912
U.S. Treasury 8.875% 2017		63,425			87,769
U.S. Treasury 3.50% 2018		658,870			662,270
U.S. Treasury 3.75% 2018		605,075			615,615
U.S. Treasury 3.875% 2018		171,505			176,763
U.S. Treasury 4.00% 2018		22,000			22,824
U.S. Treasury 2.75% 2019		717,085			671,708
U.S. Treasury 3.125% 2019		363,090			351,148
U.S. Treasury 8.125% 2019		10,000			13,722
U.S. Treasury 8.50% 2020		31,900			44,889
U.S. Treasury 7.875% 2021		13,750			18,681
U.S. Treasury 8.00% 2021		47,550			65,656
U.S. Treasury 8.125% 2021		19,750			27,360
U.S. Treasury 7.125% 2023		25,000			32,695
U.S. Treasury 7.50% 2024		18,575			25,558
U.S. Treasury 6.875% 2025		93,610			122,702
U.S. Treasury 6.00% 2026		78,000			94,124
U.S. Treasury 6.125% 2027		18,475			22,785
U.S. Treasury 4.50% 2036		260,960			269,115
U.S. Treasury 4.375% 2038		106,895			108,047
U.S. Treasury 4.50% 2038		3,000			3,099
U.S. Treasury 3.50% 2039		6,500			5,624
U.S. Treasury 4.25% 2039		10,500			10,397
U.S. Treasury Principal Strip 0% 2039		29,000			7,890
Fannie Mae 1.75% 2011		143,210			144,530
Fannie Mae 6.125% 2012		10,000			11,165
Fannie Mae 4.625% 2013		6,250			6,341
Fannie Mae 2.50% 2014		49,910			48,989
Fannie Mae 2.75% 2014		43,340			43,209
Fannie Mae 5.375% 2017		17,000			18,885
Freddie Mac 3.125% 2010		73,990			75,205
Freddie Mac 5.25% 2011		20,000			21,604
Freddie Mac 1.75% 2012		60,000			59,717
Freddie Mac 2.50% 2014		47,000			46,216
Freddie Mac 5.50% 2016		30,000			33,522
Federal Home Loan Bank 4.50% 2012		50,000			53,874
Federal Home Loan Bank 3.625% 2013		58,000			60,025
Federal Home Loan Bank 5.375% 2016		25,000			27,652
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 1.625% 2011		8,250			8,322
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 1.80% 2011		9,665			9,758
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.125% 2012		40,000			39,769
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.25% 2012		29,250			29,517
CoBank ACB 7.875% 20183		22,115			21,215
CoBank ACB 1.229% 20221,3		46,470			19,743
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		20,000			19,921
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		10,000			9,959
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.125% 2012		11,000			11,054
United States Government Agency-Guaranteed (FDIC insured), Goldman Sachs Group, Inc. 3.25% 2012		25,000			25,867
United States Government Agency-Guaranteed (FDIC insured), State Street Corp. 2.15% 2012		20,000			20,081
United States Government Agency-Guaranteed (FDIC insured), GMAC LLC 2.20% 2012		20,000			19,927
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp. 2.375% 2012		17,500			17,673
Federal Agricultural Mortgage Corp. 4.875% 20113		10,000			10,623
United States Government Agency-Guaranteed (FDIC insured), John Deere Capital Corp. 2.875% 2012		10,000			10,241
United States Government Agency-Guaranteed (FDIC insured), Sovereign Bancorp, Inc. 2.75% 2012		7,500			7,551
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp.,
Series 2000-044-A, 3.74% 20156		6,490			6,799
United States Agency for International Development, Republic of Egypt 4.45% 2015		5,000			5,130
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 2.625% 2014		5,000			4,904
Private Export Funding Corp., Series W, 5.00% 2016		3,400			3,684
					10,428,186
MORTGAGE-BACKED OBLIGATIONS — 23.93%
FEDERAL AGENCY MORTGAGE-BACKED OBLIGATIONS6 — 16.86%
Fannie Mae 7.00% 2009		—			—
Fannie Mae 7.50% 2009		12			12
Fannie Mae 8.50% 2009		—			—
Fannie Mae 9.50% 2009		1			1
Fannie Mae 7.00% 2010		—			1
Fannie Mae 4.89% 2012		25,000			26,252
Fannie Mae 7.00% 2016		129			137
Fannie Mae 11.50% 2016		233			264
Fannie Mae, Series 2002-15, Class PG, 6.00% 2017		6,467			6,905
Fannie Mae 5.50% 2018		17			18
Fannie Mae 9.00% 2018		22			24
Fannie Mae 10.00% 2018		211			241
Fannie Mae 4.00% 2019		27,761			28,399
Fannie Mae 4.50% 2019		18,249			18,943
Fannie Mae 4.50% 2019		17,760			18,435
Fannie Mae 5.50% 2019		176			186
Fannie Mae 5.50% 2019		74			78
Fannie Mae 12.00% 2019		258			289
Fannie Mae 4.50% 2020		4,497			4,652
Fannie Mae 5.50% 2020		14,590			15,433
Fannie Mae 5.50% 2020		1,633			1,726
Fannie Mae 11.00% 2020		106			121
Fannie Mae 11.235% 20201		242			277
Fannie Mae 4.50% 2021		74,794			77,380
Fannie Mae, Series 2003-48, Class TJ, 4.50% 2022		21,595			22,248
Fannie Mae 5.00% 2022		18,781			19,479
Fannie Mae 5.50% 2022		17,114			17,954
Fannie Mae 5.50% 2022		16,819			17,644
Fannie Mae 9.00% 2022		32			35
Fannie Mae 4.50% 2023		25,000			25,556
Fannie Mae 4.50% 2023		18,758			19,172
Fannie Mae 4.50% 2023		18,246			18,649
Fannie Mae 5.00% 2023		17,655			18,299
Fannie Mae 5.00% 2023		14,414			14,939
Fannie Mae 5.00% 2023		12,479			12,934
Fannie Mae 5.00% 2023		11,902			12,336
Fannie Mae 5.00% 2023		10,902			11,299
Fannie Mae 5.00% 2023		10,138			10,507
Fannie Mae 5.00% 2023		7,449			7,730
Fannie Mae 5.50% 2023		44,646			46,823
Fannie Mae 5.50% 2023		37,147			39,022
Fannie Mae 5.50% 2023		15,744			16,507
Fannie Mae 5.50% 2023		10,556			11,067
Fannie Mae 6.00% 2023		4,351			4,618
Fannie Mae 7.50% 2023		62			68
Fannie Mae 4.00% 2024		210,420			210,836
Fannie Mae 4.00% 2024		165,832			166,117
Fannie Mae 4.00% 2024		138,853			139,092
Fannie Mae 4.00% 2024		79,334			79,491
Fannie Mae 4.00% 2024		50,567			50,667
Fannie Mae 4.00% 2024		50,000			50,099
Fannie Mae 4.00% 2024		48,776			48,872
Fannie Mae 4.00% 2024		46,038			46,129
Fannie Mae 4.00% 2024		45,484			45,574
Fannie Mae 4.00% 2024		42,455			42,539
Fannie Mae 4.00% 2024		37,733			37,807
Fannie Mae 4.00% 2024		34,785			34,854
Fannie Mae 4.00% 2024		33,849			33,920
Fannie Mae 4.00% 2024		33,166			33,232
Fannie Mae 4.00% 2024		29,630			29,689
Fannie Mae 4.00% 2024		24,894			24,943
Fannie Mae 4.00% 2024		24,885			24,934
Fannie Mae 4.00% 2024		24,225			24,273
Fannie Mae 4.00% 2024		21,237			21,279
Fannie Mae 4.00% 2024		15,513			15,540
Fannie Mae 4.00% 2024		11,903			11,927
Fannie Mae 4.00% 2024		8,418			8,435
Fannie Mae 4.00% 2024		8,048			8,064
Fannie Mae 4.50% 2024		55,912			57,129
Fannie Mae 4.50% 2024		50,000			51,088
Fannie Mae 4.50% 2024		48,246			49,314
Fannie Mae 4.50% 2024		43,678			44,628
Fannie Mae 4.50% 2024		25,000			25,556
Fannie Mae 4.50% 2024		14,834			15,163
Fannie Mae 5.50% 2024		44,322			46,496
Fannie Mae 5.50% 2024		29,388			30,824
Fannie Mae 6.00% 2024		11,682			12,285
Fannie Mae, Series 2001-4, Class GA, 10.095% 20251		454			514
Fannie Mae, Series 2001-4, Class NA, 11.844% 20251		1,869			2,100
Fannie Mae 5.393% 20261		494			516
Fannie Mae 6.00% 2026		27,408			28,823
Fannie Mae 5.50% 2027		21,567			22,377
Fannie Mae 8.50% 2027		8			9
Fannie Mae 6.00% 2028		8,755			9,180
Fannie Mae 6.00% 2028		8,201			8,599
Fannie Mae, Series 1998-W5, Class B3, 6.50% 2028		1,931			1,468
Fannie Mae 6.50% 2029		178			189
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029		631			682
Fannie Mae 7.50% 2029		46			50
Fannie Mae 7.50% 2029		42			46
Fannie Mae 7.50% 2030		137			150
Fannie Mae, Series 2001-25, Class ZA, 6.50% 2031		5,230			5,568
Fannie Mae 7.50% 2031		351			384
Fannie Mae 7.50% 2031		35			38
Fannie Mae, Series 2001-20, Class E, 9.626% 20311		76			86
Fannie Mae, Series 2001-20, Class C, 12.01% 20311		75			86
Fannie Mae 6.50% 2032		587			626
Fannie Mae 5.50% 2033		29,081			30,169
Fannie Mae 6.50% 2034		876			932
Fannie Mae 4.567% 20351		10,560			10,941
Fannie Mae 5.50% 2035		37,478			38,861
Fannie Mae, Series 2005-68, Class PG, 5.50% 2035		6,023			6,285
Fannie Mae 6.50% 2035		9,669			10,374
Fannie Mae, Series 2006-51, Class PO, principal only, 0% 2036		8,533			7,390
Fannie Mae, Series 2006-32, Class OA, principal only, 0% 2036		7,799			5,865
Fannie Mae, Series 2006-96, Class OP, principal only, 0% 2036		1,797			1,429
Fannie Mae 5.00% 2036		118,249			120,781
Fannie Mae, Series 2006-101, Class PC, 5.50% 2036		7,500			7,755
Fannie Mae 6.00% 2036		32,399			34,015
Fannie Mae 6.00% 2036		23,327			24,454
Fannie Mae, Series 2006-106, Class HG, 6.00% 2036		19,944			20,978
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036		17,821			18,727
Fannie Mae 6.00% 2036		10,963			11,495
Fannie Mae 6.00% 2036		7,359			7,722
Fannie Mae 6.50% 2036		24,489			26,128
Fannie Mae 6.50% 2036		8,375			8,991
Fannie Mae 6.50% 2036		5,230			5,580
Fannie Mae 6.50% 2036		4,702			4,998
Fannie Mae 7.00% 2036		3,863			4,182
Fannie Mae 7.00% 2036		1,731			1,881
Fannie Mae 7.00% 2036		1,694			1,842
Fannie Mae 7.00% 2036		1,183			1,281
Fannie Mae 7.50% 2036		1,716			1,858
Fannie Mae 7.50% 2036		911			986
Fannie Mae 8.00% 2036		2,295			2,402
Fannie Mae 5.274% 20371		1,771			1,843
Fannie Mae 5.46% 20371		17,010			17,844
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037		29,136			30,882
Fannie Mae 5.51% 20371		25,152			26,433
Fannie Mae 5.603% 20371		38,373			40,326
Fannie Mae 5.617% 20371		11,634			12,225
Fannie Mae 5.715% 20371		18,905			19,868
Fannie Mae 5.771% 20371		21,362			22,450
Fannie Mae 5.971% 20371		31,597			32,999
Fannie Mae 6.00% 2037		120,194			125,812
Fannie Mae 6.00% 2037		84,188			88,176
Fannie Mae 6.00% 2037		49,332			51,669
Fannie Mae 6.00% 2037		45,551			47,709
Fannie Mae 6.00% 2037		40,748			42,666
Fannie Mae 6.00% 2037		36,167			37,881
Fannie Mae 6.00% 2037		22,561			23,623
Fannie Mae 6.00% 2037		12,724			13,327
Fannie Mae 6.00% 2037		12,309			12,848
Fannie Mae 6.00% 2037		12,115			12,689
Fannie Mae 6.00% 2037		8,935			9,353
Fannie Mae 6.00% 2037		8,174			8,532
Fannie Mae 6.00% 2037		7,184			7,522
Fannie Mae 6.00% 2037		4,403			4,587
Fannie Mae, Series 2007-24, Class P, 6.00% 2037		4,086			4,299
Fannie Mae 6.00% 2037		3,695			3,880
Fannie Mae 6.089% 20371		20,143			21,169
Fannie Mae 6.405% 20371		10,933			11,490
Fannie Mae 6.50% 2037		35,475			37,837
Fannie Mae 6.50% 2037		32,380			34,536
Fannie Mae 6.50% 2037		26,942			28,736
Fannie Mae 6.50% 2037		26,124			27,766
Fannie Mae 6.50% 2037		24,586			26,085
Fannie Mae 6.50% 2037		19,705			20,943
Fannie Mae 6.50% 2037		14,417			15,323
Fannie Mae 6.50% 2037		9,341			9,928
Fannie Mae 6.50% 2037		9,066			9,618
Fannie Mae 6.50% 2037		1,456			1,553
Fannie Mae 6.666% 20371		13,648			14,343
Fannie Mae 6.815% 20371		1,280			1,345
Fannie Mae 7.00% 2037		43,323			47,115
Fannie Mae 7.00% 2037		34,388			37,226
Fannie Mae 7.00% 2037		13,209			14,299
Fannie Mae 7.00% 2037		12,705			13,754
Fannie Mae 7.00% 2037		10,901			11,801
Fannie Mae 7.00% 2037		10,889			11,670
Fannie Mae 7.00% 2037		8,069			8,735
Fannie Mae 7.00% 2037		7,149			7,739
Fannie Mae 7.00% 2037		6,464			6,998
Fannie Mae 7.00% 2037		4,988			5,400
Fannie Mae 7.00% 2037		4,219			4,567
Fannie Mae 7.00% 2037		3,744			4,053
Fannie Mae 7.00% 2037		2,325			2,517
Fannie Mae 7.00% 2037		1,787			1,943
Fannie Mae 7.00% 2037		1,676			1,814
Fannie Mae 7.00% 2037		1,657			1,803
Fannie Mae 7.00% 2037		1,603			1,735
Fannie Mae 7.00% 2037		1,095			1,186
Fannie Mae 7.00% 2037		826			898
Fannie Mae 7.00% 2037		748			814
Fannie Mae 7.50% 2037		7,091			7,718
Fannie Mae 7.50% 2037		4,051			4,386
Fannie Mae 7.50% 2037		3,893			4,216
Fannie Mae 7.50% 2037		3,205			3,435
Fannie Mae 7.50% 2037		3,004			3,253
Fannie Mae 7.50% 2037		2,085			2,257
Fannie Mae 7.50% 2037		2,076			2,248
Fannie Mae 7.50% 2037		2,034			2,202
Fannie Mae 7.50% 2037		1,781			1,928
Fannie Mae 7.50% 2037		1,528			1,654
Fannie Mae 7.50% 2037		1,375			1,489
Fannie Mae 7.50% 2037		1,327			1,437
Fannie Mae 7.50% 2037		1,244			1,347
Fannie Mae 7.50% 2037		1,070			1,158
Fannie Mae 7.50% 2037		1,003			1,086
Fannie Mae 7.50% 2037		941			1,019
Fannie Mae 7.50% 2037		859			931
Fannie Mae 7.50% 2037		587			640
Fannie Mae 7.50% 2037		571			618
Fannie Mae 7.50% 2037		494			535
Fannie Mae 8.00% 2037		2,885			3,131
Fannie Mae 8.00% 2037		2,140			2,239
Fannie Mae 8.00% 2037		1,770			1,965
Fannie Mae 8.00% 2037		1,758			1,839
Fannie Mae 8.00% 2037		1,147			1,201
Fannie Mae 4.999% 20381		15,938			16,664
Fannie Mae 5.00% 2038		17,894			18,244
Fannie Mae 5.00% 2038		8,973			9,149
Fannie Mae 5.32% 20381		13,114			13,723
Fannie Mae 5.50% 2038		53,882			55,753
Fannie Mae 5.50% 2038		44,382			45,930
Fannie Mae 5.50% 2038		44,153			45,645
Fannie Mae 5.50% 2038		37,359			38,657
Fannie Mae 5.50% 2038		22,595			23,415
Fannie Mae 5.50% 2038		18,905			19,594
Fannie Mae 5.50% 2038		13,329			13,792
Fannie Mae 5.50% 2038		3,394			3,518
Fannie Mae 5.554% 20381		2,617			2,740
Fannie Mae 5.677% 20381		19,209			20,188
Fannie Mae 5.737% 20381		29,045			30,525
Fannie Mae 6.00% 2038		40,720			42,650
Fannie Mae 6.00% 2038		26,844			28,103
Fannie Mae 6.00% 2038		26,696			27,948
Fannie Mae 6.00% 2038		22,583			23,710
Fannie Mae 6.00% 2038		19,152			20,050
Fannie Mae 6.00% 2038		18,457			19,323
Fannie Mae 6.00% 2038		11,191			11,716
Fannie Mae 7.00% 2038		23,784			25,747
Fannie Mae 4.50% 2034		25,000			24,953
Fannie Mae 5.00% 2039		97,774			99,710
Fannie Mae 5.00% 2039		50,000			50,914
Fannie Mae 5.125% 20391		27,589			28,761
Fannie Mae 6.00% 2039		10,380			10,867
Fannie Mae 6.50% 2039		60,170			64,090
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041		5,837			6,249
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041		1,845			1,984
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041		3,490			3,774
Fannie Mae, Series 2002-W1, Class 2A, 7.50% 2042		4,024			4,355
Fannie Mae 6.00% 2047		1,099			1,148
Fannie Mae 6.50% 2047		1,382			1,451
Fannie Mae 6.50% 2047		1,350			1,418
Fannie Mae 6.50% 2047		852			907
Fannie Mae 7.00% 2047		7,039			7,620
Fannie Mae 7.00% 2047		497			538
Fannie Mae 7.50% 2047		1,740			1,884
Fannie Mae 7.50% 2047		706			764
Fannie Mae 7.50% 2047		608			658
Freddie Mac 8.50% 2009		1			1
Freddie Mac 8.50% 2010		7			7
Freddie Mac 6.00% 2017		356			380
Freddie Mac, Series 2310, Class A, 10.428% 20171		271			304
Freddie Mac 11.00% 2018		42			48
Freddie Mac, Series 2890, Class KT, 4.50% 2019		2,500			2,485
Freddie Mac 5.50% 2019		8,036			8,496
Freddie Mac 8.50% 2020		116			127
Freddie Mac 8.50% 2020		40			44
Freddie Mac, Series 41, Class F, 10.00% 2020		85			85
Freddie Mac, Series 178, Class Z, 9.25% 2021		67			71
Freddie Mac, Series 2626, Class NG, 3.50% 2023		1,665			1,677
Freddie Mac, Series 2922, Class EL, 4.50% 2023		34,250			35,310
Freddie Mac 5.00% 2023		37,211			38,535
Freddie Mac 5.00% 2023		36,483			37,793
Freddie Mac 5.00% 2023		13,061			13,530
Freddie Mac 5.00% 2023		3,909			4,049
Freddie Mac 5.00% 2023		2,224			2,304
Freddie Mac 5.00% 2023		221			229
Freddie Mac, Series 1617, Class PM, 6.50% 2023		1,804			1,949
Freddie Mac 4.00% 2024		53,828			53,895
Freddie Mac 4.00% 2024		18,923			18,948
Freddie Mac 4.50% 2024		7,379			7,538
Freddie Mac 6.00% 2026		26,095			27,424
Freddie Mac 6.00% 2026		20,127			21,152
Freddie Mac 8.00% 2026		87			96
Freddie Mac 5.50% 2027		13,117			13,608
Freddie Mac 6.00% 2027		148,398			155,951
Freddie Mac 8.50% 2027		19			21
Freddie Mac, Series 2153, Class GG, 6.00% 2029		3,144			3,316
Freddie Mac, Series 2122, Class QM, 6.25% 2029		5,629			5,904
Freddie Mac 4.629% 20351		13,314			13,828
Freddie Mac, Series 3061, Class PN, 5.50% 2035		43,560			45,973
Freddie Mac 6.50% 20352		333			347
Freddie Mac, Series 3136, Class OP, principal only, 0% 2036		7,589			6,459
Freddie Mac, Series 3147, Class OD, principal only, 0% 2036		5,289			4,609
Freddie Mac, Series 3149, Class MO, principal only, 0% 2036		5,360			4,446
Freddie Mac, Series 3149, Class AO, principal only, 0% 2036		4,697			3,896
Freddie Mac, Series 3257, Class PA, 5.50% 2036		48,091			50,281
Freddie Mac 5.588% 20361		4,596			4,799
Freddie Mac 5.866% 20361		19,510			20,428
Freddie Mac, Series 3233, Class PA, 6.00% 2036		38,735			40,843
Freddie Mac, Series 3156, Class NG, 6.00% 2036		12,281			13,061
Freddie Mac, Series 3286, Class JN, 5.50% 2037		61,901			64,378
Freddie Mac, Series 3318, Class JT, 5.50% 2037		34,541			35,915
Freddie Mac 5.50% 2037		29,285			30,282
Freddie Mac, Series 3312, Class PA, 5.50% 2037		26,206			27,255
Freddie Mac 5.50% 2037		24,966			25,816
Freddie Mac 5.52% 20371		31,634			32,805
Freddie Mac 5.606% 20371		15,509			16,253
Freddie Mac 5.89% 20371		5,668			5,963
Freddie Mac 5.941% 20371		33,026			34,500
Freddie Mac 5.95% 20371		9,710			10,183
Freddie Mac 5.973% 20371		27,172			28,527
Freddie Mac, Series 3271, Class OA, 6.00% 2037		16,186			17,238
Freddie Mac 6.00% 2037		2,737			2,862
Freddie Mac 6.011% 20371		2,212			2,334
Freddie Mac 6.222% 20371		16,284			17,078
Freddie Mac 6.247% 20371		14,956			15,712
Freddie Mac 6.265% 20371		3,331			3,501
Freddie Mac 6.50% 2037		36,082			38,404
Freddie Mac 6.50% 2037		1,000			1,064
Freddie Mac 7.00% 2037		2,214			2,389
Freddie Mac 7.00% 2037		2,183			2,355
Freddie Mac 7.00% 2037		1,936			2,088
Freddie Mac 7.00% 20372		936			984
Freddie Mac 7.00% 20372		902			947
Freddie Mac 7.00% 20372		367			386
Freddie Mac 7.50% 2037		21,928			23,598
Freddie Mac 4.745% 20381		4,627			4,790
Freddie Mac 4.811% 20381		13,787			14,219
Freddie Mac 4.933% 20381		19,065			19,772
Freddie Mac 5.00% 2038		8,780			8,942
Freddie Mac 5.044% 20381		14,883			15,318
Freddie Mac 5.058% 20381		9,638			9,973
Freddie Mac 5.142% 20381		1,958			2,036
Freddie Mac 5.179% 20381		39,913			41,566
Freddie Mac 5.311% 20381		15,946			16,600
Freddie Mac 5.50% 2038		23,659			24,456
Freddie Mac 5.585% 20381		32,428			33,967
Freddie Mac 6.00% 2038		126,842			132,625
Freddie Mac 6.50% 2038		18,220			19,392
Freddie Mac 6.50% 2038		18,000			19,153
Freddie Mac 5.00% 2039		60,125			61,149
Freddie Mac 6.50% 2047		2,725			2,894
Freddie Mac 6.50% 2047		1,094			1,161
Freddie Mac 7.00% 2047		846			913
Freddie Mac 7.00% 2047		703			759
Government National Mortgage Assn. 7.50% 2009		1			1
Government National Mortgage Assn. 9.50% 2009		5			5
Government National Mortgage Assn. 9.50% 2009		—			—
Government National Mortgage Assn. 9.00% 2016		72			80
Government National Mortgage Assn. 9.00% 2017		18			20
Government National Mortgage Assn. 9.50% 2019		157			178
Government National Mortgage Assn. 8.50% 2020		26			29
Government National Mortgage Assn. 8.50% 2020		8			9
Government National Mortgage Assn. 9.50% 2020		58			66
Government National Mortgage Assn. 8.50% 2021		151			168
Government National Mortgage Assn. 8.50% 2021		99			110
Government National Mortgage Assn. 8.50% 2021		31			35
Government National Mortgage Assn. 8.50% 2021		31			34
Government National Mortgage Assn. 10.00% 2021		832			945
Government National Mortgage Assn. 9.00% 2022		4			4
Government National Mortgage Assn. 8.50% 2023		23			26
Government National Mortgage Assn. 8.50% 2024		11			12
Government National Mortgage Assn. 8.50% 2024		7			8
Government National Mortgage Assn. 8.50% 2027		28			32
Government National Mortgage Assn. 8.50% 2028		23			26
Government National Mortgage Assn. 8.50% 2029		27			31
Government National Mortgage Assn., Series 2005-58, Class NO, principal only, 0% 2035		4,699			3,693
Government National Mortgage Assn. 6.00% 2038		142,725			148,958
Government National Mortgage Assn. 6.50% 2038		23,913			25,401
Government National Mortgage Assn. 4.50% 2039		25,000			24,944
Government National Mortgage Assn., Series 2003, Class A, 5.612% 20582		10,364			10,720
					6,388,476
COMMERCIAL MORTGAGE-BACKED SECURITIES6 — 4.19%
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A-4, 5.435% 2034		1,203			1,222
CS First Boston Mortgage Securities Corp., Series 2001-CF2, Class A-4, 6.505% 2034		438			448
CS First Boston Mortgage Securities Corp., Series 2001-CK3, Class A-4, 6.53% 2034		2,475			2,540
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A-1, 4.106% 2035		539			536
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class A-3, 6.38% 2035		42,754			43,852
CS First Boston Mortgage Securities Corp., Series 2002-CKP1, Class F, 7.067% 20351,3		1,500			957
CS First Boston Mortgage Securities Corp., Series 2002-CKS4, Class G, 6.006% 20361,3		500			304
CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A-3, 6.387% 2036		29,505			30,226
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-2, 4.183% 2037		14,601			14,424
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 2037		12,900			11,905
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class A-2, 4.512% 2037		1,690			1,674
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class A-AB, 4.614% 2037		20,000			19,160
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class A-MFX, 4.877% 2037		10,000			5,587
CS First Boston Mortgage Securities Corp., Series 2004-C1, Class E, 5.015% 20373		8,240			2,762
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A-3, 6.133% 2037		2,500			2,464
CS First Boston Mortgage Securities Corp., Series 2003-C3, Class F, 4.518% 20383		2,000			771
CS First Boston Mortgage Securities Corp., Series 2005-C4, Class A-2, 5.017% 2038		12,200			12,184
CS First Boston Mortgage Securities Corp., Series 2005-C5, Class A-AB, 5.10% 20381		12,000			11,306
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A-4, 4.283% 2039		20,600			19,703
CS First Boston Mortgage Securities Corp., Series 2006-C1, Class A-3, 5.711% 20391		10,000			8,624
CS First Boston Mortgage Securities Corp., Series 2006-C2, Class A-3, 5.658% 20391		7,305			5,242
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 20401		42,000			33,731
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-M, 5.23% 20401		5,000			3,109
CS First Boston Mortgage Securities Corp., Series 1999-C1, Class D, 8.267% 20411		850			845
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC1, Class A-3, 6.26% 2033		3,655			3,728
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C2, Class F, 6.192% 20341,3		2,500			1,460
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C3, Class A-1, 4.20% 2035		621			621
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CBX, Class A-5, 4.654% 2037		2,500			2,315
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.316% 20371		61,300			57,003
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C1, Class E, 6.135% 20373		400			284
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-ML1, Class A-1, 3.972% 2039		5,713			5,387
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-C3, Class A-3, 4.545% 2042		21,050			19,416
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A-2, 4.575% 2042		20,058			19,881
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-3A1, 4.871% 2042		25,000			23,748
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4A, 4.936% 20421		1,655			1,409
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A-2, 5.198% 2044		10,080			9,764
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CIBC14, Class A-4, 5.481% 20441		21,259			17,513
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.875% 20451		29,000			24,321
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A-2, 4.625% 2046		26,339			25,793
Fannie Mae, Series 2000-T5, Class B, 7.30% 2010		57,100			59,650
Fannie Mae, Series 2001-T6B, 6.088% 2011		48,000			51,072
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012		46,225			47,876
SBA CMBS Trust, Series 2005-1, Class A, 5.369% 20352,3		33,000			31,680
SBA CMBS Trust, Series 2005-1, Class B, 5.565% 20352,3		3,300			3,118
SBA CMBS Trust, Series 2005-1, Class E, 6.706% 20352,3		7,460			6,938
SBA CMBS Trust, Series 2006-1A, Class A, 5.314% 20362,3		48,500			45,347
SBA CMBS Trust, Series 2006-1A, Class B, 5.451% 20362,3		14,180			12,904
SBA CMBS Trust, Series 2006-1A, Class D, 5.852% 20362,3		12,329			11,971
SBA CMBS Trust, Series 2006-1A, Class E, 6.174% 20362,3		4,025			3,582
SBA CMBS Trust, Series 2006-1A, Class F, 6.709% 20362,3		375			334
SBA CMBS Trust, Series 2006-1A, Class G, 6.904% 20362,3		1,375			1,210
SBA CMBS Trust, Series 2006-1A, Class H, 7.389% 20362,3		4,040			3,555
SBA CMBS Trust, Series 2006-1A, Class J, 7.825% 20362,3		2,375			2,090
American Tower Trust I, Series 2007-1A, Class A-FX, 5.42% 20373		18,500			17,193
American Tower Trust I, Series 2007-1A, Class B, 5.537% 20373		10,000			8,794
American Tower Trust I, Series 2007-1A, Class C, 5.615% 20373		10,000			8,494
American Tower Trust I, Series 2007-1A, Class D, 5.957% 20373		36,415			30,205
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20373		11,375			8,753
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20372,3		13,470			11,382
Crown Castle Towers LLC, Series 2005-1, Class C, 5.074% 20353		43,000			42,140
Crown Castle Towers LLC, Series 2006-1, Class E, 6.065% 20362,3		31,000			30,380
Crown Castle Towers LLC, Series 2006-1, Class F, 6.650% 20362,3		10,350			10,143
Crown Castle Towers LLC, Series 2006-1, Class G, 6.795% 20362,3		1,400			1,372
Wachovia Bank Commercial Mortgage Trust, Series 2003-C9, Class A-3, 4.608% 2035		2,296			2,273
Wachovia Bank Commercial Mortgage Trust, Series 2004-C14, Class A-2, 4.368% 2041		1,211			1,198
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A-PB, 4.807% 2042		3,000			2,801
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A-7, 5.118% 20421		4,650			3,929
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-2, 5.242% 2044		17,000			16,254
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-4, 5.44% 20441		15,350			13,171
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-PB, 5.445% 20441		8,038			7,199
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A-PB, 5.446% 2045		16,750			15,076
Banc of America Commercial Mortgage Inc., Series 2001-1, Class A-2, 6.503% 2036		44,880			45,686
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-3, 4.561% 2041		9,975			9,241
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-AB, 4.673% 2041		2,000			1,928
Banc of America Commercial Mortgage Inc., Series 2004-4, Class B, 4.985% 2042		1,000			381
Banc of America Commercial Mortgage Inc., Series 2005-3, Class A-2, 4.501% 2043		1,260			1,214
Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-4, 5.115% 20451		2,500			2,141
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2, Class X, interest only, 0.564% 20311		56,024			1,554
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-C1, Class X, interest only, 0.888% 20311,3		35,752			783
Bear Stearns Commercial Mortgage Securities Inc., Series 2000-WF2, Class A-2, 7.32% 2032		15,633			16,017
Bear Stearns Commercial Mortgage Securities Inc., Series 2002-PBW1, Class A-1, 3.97% 2035		7,814			7,760
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class D, 6.94% 20353		3,000			2,574
Bear Stearns Commercial Mortgage Securities Inc., Series 2004-PWR6, Class A-4, 4.521% 2041		10,000			9,609
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-3, 4.868% 2042		20,825			17,560
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP6, Class A-4, 5.475% 20431		51,820			41,471
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A-M, 6.065% 20451		7,645			4,590
Structured Products Asset Return Certificates Trust, Series 2001-CF1, Class A, 6.36% 20332		42,936			43,456
Commercial Mortgage Trust, Series 2000-C1, Class A-2, 7.416% 2033		2,215			2,235
Commercial Mortgage Trust, Series 2004-LB3A, Class A-4, 5.234% 2037		10,956			10,545
Commercial Mortgage Trust, Series 2003-LNB1, Class A-2, 4.084% 2038		20,000			18,529
Commercial Mortgage Trust, Series 2004-LNB2, Class A-3, 4.221% 2039		8,729			8,696
GMAC Commercial Mortgage Securities, Inc., Series 1997-C1, Class F, 7.222% 2029		1,299			1,309
GMAC Commercial Mortgage Securities, Inc., Series 2001-C1, Class A-2, 6.465% 2034		28,569			29,450
GMAC Commercial Mortgage Securities, Inc., Series 2003-C1, Class F, 4.718% 20361,3		1,000			396
GMAC Commercial Mortgage Securities, Inc., Series 2003-C1, Class G, 4.817% 20361,3		1,000			394
GMAC Commercial Mortgage Securities, Inc., Series 2004-C3, Class A-3, 4.207% 2041		7,743			7,722
GE Commercial Mortgage Corp., Series 2004-C3, Class B, 5.31% 20391		8,000			3,217
GE Commercial Mortgage Corp., Series 2004-C2, Class B, 4.983% 2040		19,193			7,917
GE Commercial Mortgage Corp., Series 2006-C1, Class A-4, 5.336% 20441		33,700			27,716
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20263		40,324			37,854
Greenwich Capital Commercial Funding Corp., Series 2003-C1, Class A-2, 3.285% 2035		1,974			1,921
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-2, 5.117% 2037		13,045			12,751
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-5, 5.224% 20371		11,000			8,919
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 20371		15,000			12,732
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class AM, 5.415% 20371		4,620			2,910
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A-3-A, 4.949% 20381		8,500			7,745
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A-3, 5.66% 20391		3,050			2,676
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20411		6,805			5,875
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class A-4, 4.747% 20431		5,065			4,309
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805% 20431		6,300			3,934
Merrill Lynch Mortgage Trust, Series 2006-C2, Class A-4, 5.742% 20431		10,250			8,430
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% (undated)1		41,210			29,327
Salomon Brothers Commercial Mortgage Trust, Series 2000-C3, Class A-2, 6.592% 2033		18,011			18,414
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-3, 6.428% 2035		7,233			7,371
Salomon Brothers Commercial Mortgage Trust, Series 2001-C2, Class A-3, 6.499% 2036		2,287			2,366
GE Capital Commercial Mortgage Corp., Series 2001-1, Class A-1, 6.079% 2033		45			45
GE Capital Commercial Mortgage Corp., Series 2001-1, Class A-2, 6.531% 2033		18,090			18,628
GE Capital Commercial Mortgage Corp., Series 2002-3, Class A-2, 4.996% 2037		2,500			2,454
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A-1, 5.56% 2038		910			935
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A-2, 6.07% 2038		2,500			2,516
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A-2, 7.95% 2025		12,433			12,636
LB-UBS Commercial Mortgage Trust, Series 2002-C1, Class A-3, 6.226% 2026		1,840			1,855
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-2, 5.103% 2030		3,468			3,377
LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A-M, 5.017% 20401		10,000			6,620
Chase Manhattan Bank - First Union National Bank, Commercial Mortgage Trust, Series 1999-1, Class A-2, 7.439% 2031		1,016			1,014
Chase Manhattan Bank - First Union National Bank, Commercial Mortgage Trust, Series 1999-1, Class B, 7.619% 2031		17,125			17,095
Chase Manhattan Bank - First Union National Bank, Commercial Mortgage Trust, Series 1999-1, Class C, 7.625% 2031		5,000			4,998
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A-3, 5.725% (undated)1		15,800			13,374
COBALT CMBS Commerical Mortgage Trust, Series 2006-C1, Class A-2, 5.174% 2048		14,000			12,598
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048		10,000			8,199
Morgan Stanley Dean Witter Capital I Trust, Series 2000-LIFE2, Class A-2, 7.20% 2033		4,046			4,160
Morgan Stanley Dean Witter Capital I Trust, Series 2001-TOP5, Class A-3, 6.16% 2035		260			260
Morgan Stanley Dean Witter Capital I Trust, Series 2003-TOP9, Class A-1, 3.98% 2036		3,289			3,243
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A-2, 5.378% 20421		7,875			7,226
Hilton Hotel Pool Trust, Series 2000-HLTA, Class F, 7.75% 20153		5,000			5,381
GS Mortgage Securities Corp. II, Series 1998-C1, Class E, 7.45% 20301		5,004			4,991
Chase Commercial Mortgage Securities Corp., Series 2000-1, Class A-2, 7.757% 2032		3,953			4,065
Bank of America, NA and First Union National Bank Commercial Mortgage Trust, Series 2001-3, Class A-1, 4.89% 2037		934			935
First Union National Bank Commercial Mortgage Trust, Series 2001-C4, Class A-1, 5.673% 2033		467			471
					1,587,004
COLLATERALIZED MORTGAGE-BACKED OBLIGATIONS (PRIVATELY ORIGINATED)6 — 2.30%
Countrywide Alternative Loan Trust, Series 2004-14T2, Class A-2, 5.50% 2034		13,679			10,694
Countrywide Alternative Loan Trust, Series 2005-46CB, Class A-8, 5.50% 2035		34,945			28,235
Countrywide Alternative Loan Trust, Series 2005-49CB, Class A-1, 5.50% 2035		17,224			15,028
Countrywide Alternative Loan Trust, Series 2005-40CB, Class A-1, 5.50% 2035		15,705			10,201
Countrywide Alternative Loan Trust, Series 2005-J13, Class 2-A-4, 5.50% 2035		8,060			4,143
Countrywide Alternative Loan Trust, Series 2005-J11, Class 1-A-12, 5.50% 2035		8,000			3,673
Countrywide Alternative Loan Trust, Series 2005-J11, Class 1-A-16, 5.50% 2035		4,618			1,962
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 5-A-1, 5.75% 2035		2,306			1,717
Countrywide Alternative Loan Trust, Series 2004-36CB, Class 1-A-1, 6.00% 2035		10,853			7,774
Countrywide Alternative Loan Trust, Series 2005-9CB, Class 2-A-1, 6.00% 2035		5,633			3,922
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 6-A-1, 6.00% 2035		921			628
Countrywide Alternative Loan Trust, Series 2007-14T2, Class A-4, 0.664% 20371		23,003			8,003
WaMu Mortgage Pass-Through Certificates Trust, Series 2004-AR11, Class A, 4.435% 20341		20,931			17,653
WaMu Mortgage Pass-Through Certificates Trust, Series 2006-AR12, Class 1-A4, 6.052% 20361		2,358			1,505
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY3, Class 4-A1, 5.33% 20371		6,953			4,691
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY7, Class 2-A1, 5.805% 20371		31,834			16,289
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY5, Class 3-A1, 5.809% 20371		45,396			30,657
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY7, Class 4-A2, 5.855% 20371		40,297			21,086
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-22, Class 5-A-1, 5.998% 20351		3,197			1,854
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-8, Class 3-AF, 0.694% 20361		14,078			8,342
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 6-A, 5.902% 20361		55,125			30,526
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-2, Class 5-A-1, 6.00% 20361		6,286			3,091
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-6, Class 3-A-1, 5.838% 20371		19,668			9,782
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-12, Class 2-A1, 5.883% 20371		20,290			10,217
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-8, Class 2-A3, 5.951% 20371		31,899			18,337
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-9, Class 2-A1, 5.949% 20471		10,402			5,430
Wells Fargo Alternative Loan Trust, Series 2007-PA1, Class A-1, 0.634% 20371		54,069			21,572
Wells Fargo Alternative Loan Trust, Series 2007-PA4, Class III-A-1, 6.064% 20371		25,353			11,508
Wells Fargo Alternative Loan Trust, Series 2007-PA3, Class III-A-1, 6.25% 2037		72,730			37,556
Wells Fargo Alternative Loan Trust, Series 2007-PA3, Class IV-A-1, 6.50% 2037		24,451			12,623
Bear Stearns ARM Trust, Series 2004-3, Class II-A, 3.914% 20341		8,458			6,490
Bear Stearns ARM Trust, Series 2005-6, Class I-A-1, 4.575% 20351		30,193			18,057
Bear Stearns ARM Trust, Series 2005-10, Class A-3, 4.65% 20351		51,800			28,090
Bear Stearns ARM Trust, Series 2007-2, Class I-A-1, 5.00% 20461		809			391
IndyMac IMSC Mortgage Loan Trust, Series 2007-F2, Class 2-A-1, 6.50% 2037		40,223			19,946
IndyMac IMSC Mortgage Loan Trust, Series 2007-F3, Class 2-A-1, 6.50% 2037		23,895			13,198
IndyMac IMSC Mortgage Loan Trust, Series 2007-F3, Class 3-A-1, 7.00% 2037		36,439			19,558
Residential Accredit Loans, Inc., Series 2004-QS16, Class 1-A-1, 5.50% 2034		6,317			4,567
Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.00% 2034		27,843			22,745
Residential Accredit Loans, Inc., Series 2005-QA12, Class CB-I, 5.485% 20351		4,207			1,772
Residential Accredit Loans, Inc., Series 2005-QS15, Class II-A, 6.00% 2035		13,771			8,702
Residential Accredit Loans, Inc., Series 2006-QA1, Class A-II-1, 5.939% 20361		13,475			6,064
Residential Accredit Loans, Inc., Series 2007-QS11, Class A-1, 7.00% 2037		6,821			3,480
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032		377			340
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032		46			39
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033		2,900			2,715
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033		47			39
CS First Boston Mortgage Securities Corp., Series 2004-5, Class IV-A-1, 6.00% 2034		6,748			5,580
CS First Boston Mortgage Securities Corp., Series 2005-5, Class IV-A-1, 6.25% 2035		4,938			3,363
CS First Boston Mortgage Securities Corp., Series 2006-7, Class 8-A-6, 0.944% 20361		12,929			4,794
CS First Boston Mortgage Securities Corp., Series 2006-7, Class 6-A-3, 5.50% 2036		25,112			16,826
CS First Boston Mortgage Securities Corp., Series 2006-2, Class 5-A-6, 6.00% 2036		5,170			3,274
CHL Mortgage Pass-Through Trust, Series 2004-HYB6, Class A-3, 5.055% 20341		2,747			1,482
CHL Mortgage Pass-Through Trust, Series 2005-HYB8, Class 4-A-1, 5.519% 20351		23,245			14,359
CHL Mortgage Pass-Through Trust, Series 2007-HY5, Class 1-A-1, 5.921% 20471		8,055			5,048
CHL Mortgage Pass-Through Trust, Series 2007-HY4, Class 1-A-1, 6.069% 20471		2,449			1,278
Wells Fargo Mortgage-backed Securities Trust, Series 2006-AR19, Class A-6, 5.627% 20361		10,000			5,153
Wells Fargo Mortgage-backed Securities Trust, Series 2006-AR15, Class A-1, 5.659% 20361		24,616			16,491
IndyMac INDX Mortgage Loan Trust, Series 2006-AR5, Class 2-A-1, 5.645% 20361		20,770			11,566
IndyMac INDX Mortgage Loan Trust, Series 2006-AR25, Class 3-A-1, 6.106% 20361		19,567			9,772
Citigroup Mortgage Loan Trust, Inc., Series 2005-8, Class I-A4A, 5.557% 20351		28,160			16,927
Citigroup Mortgage Loan Trust, Inc., Series 2007-AR5, Class 1-A2A, 5.604% 20371		6,706			3,634
Thornburg Mortgage Securities Trust, Series 2006-5, Class A-1, 0.434% 20461		21,239			19,057
Residential Asset Securitization Trust, Series 2005-A7, Class A-5, 5.50% 2035		5,338			3,029
Residential Asset Securitization Trust, Series 2005-A8CB, Class A-11, 6.00% 2035		13,849			9,305
Residential Asset Securitization Trust, Series 2006-A8, Class 1-A-2, 0.614% 20361		10,032			4,760
Residential Asset Securitization Trust, Series 2006-A8, Class 3-A-11, 6.00% 2036		3,853			1,689
MASTR Alternative Loan Trust, Series 2003-2, Class 6-A-1, 6.00% 2033		540			468
MASTR Alternative Loan Trust, Series 2004-2, Class 2-A-1, 6.00% 2034		1,036			930
MASTR Alternative Loan Trust, Series 2005-1, Class 1-A-1, 5.50% 2035		12,622			9,214
MASTR Alternative Loan Trust, Series 2005-3, Class 1-A-1, 5.50% 2035		3,268			2,492
MASTR Alternative Loan Trust, Series 2005-3, Class 2-A-1, 6.00% 2035		3,929			3,128
MASTR Alternative Loan Trust, Series 2005-3, Class 3-A-1, 6.50% 2035		396			284
American Home Mortgage Assets Trust, Series 2007-3, Class II-2A-1, 6.25% 20371		31,651			15,757
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 4-A, 5.675% 20341		5,192			4,331
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 3-A, 6.00% 2034		2,150			2,046
Morgan Stanley Mortgage Loan Trust, Series 2005-6AR, Class 3-A-1, 5.354% 20351		18,372			8,478
J.P. Morgan Alternative Loan Trust, Series 2006-A1, Class 2-A-1, 5.80% 20361		17,184			8,770
J.P. Morgan Alternative Loan Trust, Series 2006-A2, Class 5-A-1, 6.259% 20361		12,495			5,957
Lehman Mortgage Trust, Series 2005-2, Class 5-A1, 1.214% 20351		29,952			14,700
GSR Mortgage Loan Trust, Series 2005-AR1, Class 2-A-1, 4.916% 20351		8,895			6,147
GSR Mortgage Loan Trust, Series 2006-2F, Class 3A-4, 6.00% 2036		11,543			7,594
J.P. Morgan Mortgage Trust, Series 2006-A3, Class 3-A-3, 5.731% 20361		4,000			2,355
J.P. Morgan Mortgage Trust, Series 2006-A7, Class 2-A-4, 5.791% 20371		21,750			11,373
Banc of America Funding Trust, Series 2005-H, Class 9-A-1, 5.897% 20351		22,294			10,692
Bear Stearns ALT-A Trust, Series 2006-2, Class II-4-A-1, 5.874% 20361		23,350			9,803
Adjustable Rate Mortgage Trust, Series 2006-1, Class 3-A-3, 5.866% 20361		17,548			7,945
BCAP LLC Trust, Series 2006-AA2, Class A-1, 0.484% 20371		20,558			7,855
Banc of America Alternative Loan Trust, Series 2005-6, Class 2-CB-2, 6.00% 2035		12,342			7,799
GSAA Home Equity Trust, Series 2007-10, Class A-1A, 6.00% 2037		13,323			7,620
Washington Mutual Mortgage, WMALT Series 2005-1, Class 6-A-1, 6.50% 2035		1,139			782
Washington Mutual Mortgage, WMALT Series 2006-2, Class 1-A-3, 6.00% 2036		12,000			5,780
GMAC Mortgage Loan Trust, Series 2006-AR1, Class 2-A-1, 5.632% 20361		9,170			6,374
American General Mortgage Loan Trust, Series 2006-1, Class A-5, 5.75% 20351,3		8,142			6,170
Structured Asset Securities Corp., Series 1998-RF2, Class A, 8.346% 20271,3		4,204			3,017
Structured Asset Securities Corp., Series 1998-RF1, Class A, 8.56% 20271,3		1,594			1,400
Structured Asset Securities Corp., Series 1999-RF1, Class A, 7.735% 20281,3		1,022			971
TBW Mortgage-backed Trust, Series 2007-2, Class A-4-B, 0.734% 20371		22,000			4,950
Banc of America Mortgage Securities Trust, Series 2003-I, Class 3-A-1, 4.527% 20331		5,483			4,589
CitiMortgage Alternative Loan Trust, Series 2006-A1, Class IA-3, 5.75% 2036		10,000			4,177
Sequoia Mortgage Trust, Series 2007-1, Class 4-A1, 5.751% 20461		5,410			3,047
Harborview Mortgage Loan Trust, Series 2006-6, Class 1A, 4.957% 20361		3,097			1,375
Ocwen Residential MBS Corp., Series 1998-R1, Class AWAC, 1.121% 20401,3		1,513			946
Financial Asset Securitization, Inc., Series 1997-NAM1, Class B-1, 7.75% 2027		265			249
GS Mortgage Securities Corp., Series 1998-2, Class M, 7.75% 20273		376			249
					872,093
OTHER MORTGAGE-BACKED SECURITIES6 — 0.58%
Nykredit 4.00% 2035	DKr290,062				50,622
Nykredit 5.00% 2038		169,620			31,469
Bank of America 5.50% 20123	$	34,750			34,209
Nationwide Building Society, Series 2007-2, 5.50% 20123		34,750			32,865
Deutsche Genossenschaftsbank-Hypothekenbank AG 5.25% 2009	€19,447				27,388
Northern Rock PLC 5.625% 20173	$	20,000			16,148
Dexia Municipal Agency 3.50% 2009	€10,076				14,189
Swedish Government 4.00% 2012	SKr42,000				5,614
Stadshypotek AB 6.00% 2012		39,000			5,531
					218,035
Total mortgage-backed obligations					9,065,608
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S.— 4.04%
German Government 3.75% 2013	€35,000				51,740
German Government 3.75% 2017		20,360			29,701
German Government, Series 8, 4.25% 2018		127,690			192,684
United Kingdom 4.75% 2015	£	21,408			38,761
United Kingdom 4.50% 2019		58,910			103,185
United Kingdom 4.75% 2038		28,630			49,786
United Mexican States Government Global 6.375% 2013	$	5,150			5,588
United Mexican States Government Global 5.875% 2014		3,000			3,152
United Mexican States Government, Series MI10, 9.50% 2014	MXN295,000				24,448
United Mexican States Government, Series M10, 8.00% 2015		132,500			10,173
United Mexican States Government, Series M10, 7.25% 2016		435,000			31,730
United Mexican States Government, Series M10, 7.75% 2017		5,630			41,798
United Mexican States Government Global 5.95% 2019	$	9,990			10,140
United Mexican States Government, Series M20, 10.00% 2024	MXN334,800				28,831
United Mexican States Government Global 6.75% 2034	$	2,495			2,529
United Mexican States Government, Series M30, 10.00% 2036	MXN138,000				11,570
United Mexican States Government Global 6.05% 2040	$	11,280			10,304
Japanese Government 1.30% 2011	¥	50			1
Japanese Government 1.50% 2018		4,989,850			52,867
Japanese Government 2.40% 2038		2,680,350			29,192
Belgium (Kingdom of), Series 49, 4.00% 2017	€42,000				60,196
Netherlands Government Eurobond 4.00% 2018		41,200			59,113
French Government O.A.T. Eurobond 4.00% 2018		37,745			54,529
French Government O.A.T. Eurobond 4.75% 2035		2,890			4,282
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014	$	44,750			57,280
New South Wales Treasury Corp., Series 14, 5.50% 2014	$	A35,400			28,178
New South Wales Treasury Corp., Series 19, 6.00% 2019		33,350			26,215
Israeli Government 7.50% 20142	ILS72,880				21,424
Israeli Government 6.50% 20162		27,375			7,707
Israeli Government 5.125% 2019	$	25,150			25,070
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.50% 20123		7,250			7,210
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 3.625% 20143		45,000			45,260
Sweden Government Agency-Guaranteed, Swedbank AB 2.80% 20123		9,000			9,001
Sweden Government Agency-Guaranteed, Swedbank AB 2.90% 20133		35,000			34,741
France Government Agency-Guaranteed, Société Finance 2.25% 20123		21,815			21,686
France Government Agency-Guaranteed, Société Finance 3.375% 20143		16,450			16,484
South Korean Government 4.00% 2010	KRW6,200,000				4,923
South Korean Government 5.25% 2010		2,900,000			2,329
South Korean Government 4.25% 2014		4,630,000			3,570
South Korean Government 5.75% 2014	$	21,000			21,563
South Korean Government 5.25% 2015	KRW2,600,000				2,068
Finland (Republic of) 3.875% 2017	€23,230				33,325
United Kingdom Government Agency-Guaranteed, Lloyds TSB Group PLC 2.80% 20123	$	23,000			23,248
European Investment Bank 4.75% 2012	£	790			1,366
European Investment Bank 3.125% 2014	$	11,500			11,537
European Investment Bank 4.875% 2017		9,000			9,486
European Investment Bank 5.00% 2039	£	395			700
Polish Government 5.25% 2013	PLN70,000				21,879
Italian Government 4.25% 2013	€14,100				20,701
Queensland Treasury Corp., Series 15, 6.00% 2015	$	A18,380			14,803
KfW 6.25% 2012		9,750			8,065
KfW 5.00% 2015	NKr35,000				5,618
KfW International Finance Inc. 5.50% 2015	£	275			494
Brazilian Treasury Bill 6.00% 20102,10	BRL 1,508				788
Brazil (Federal Republic of) 10.00% 20172		15,000			6,640
Brazil (Federal Republic of) Global 8.00% 20186	$	644			725
Brazil (Federal Republic of) Global 8.875% 2024		1,375			1,715
Brazil (Federal Republic of) Global 12.25% 2030		425			698
Brazil (Federal Republic of) Global 7.125% 2037		750			818
Brazil (Federal Republic of) Global 11.00% 2040		2,110			2,756
Swedish Government 5.50% 2012	SKr78,000				11,193
Nordic Investment Bank, Series C, 5.00% 2017	$	9,000			9,555
Banque Centrale de Tunisie 4.75% 2011	€3,000				4,312
Banque Centrale de Tunisie 7.375% 2012	$	4,500			4,838
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 2.50% 20123		8,250			8,223
Corporación Andina de Fomento 6.875% 2012		5,895			6,223
Corporación Andina de Fomento 5.125% 2015		2,000			1,943
Russian Federation 7.50% 20306		8,054			7,964
Russian Federation 7.50% 20303,6		139			138
Netherlands Government Agency-Guaranteed, ING Bank NV 3.90% 20143		7,000			7,164
Panama (Republic of) Global 7.125% 2026		690			718
Panama (Republic of) Global 8.875% 2027		250			303
Panama (Republic of) Global 9.375% 2029		340			428
Panama (Republic of) Global 6.70% 20366		5,748			5,604
Australia Government Agency-Guaranteed, National Australia Bank 5.75% 2013	$	A8,750			7,042
Colombia (Republic of) Global 8.25% 2014	$	3,250			3,770
Colombia (Republic of) Global 12.00% 2015	COP2,765,000				1,483
Colombia (Republic of) Global 9.85% 2027		840,000			399
Colombia (Republic of) Global 7.375% 2037	$	1,000			1,025
South Africa (Republic of) 6.875% 2019		6,365			6,572
Asian Development Bank 2.75% 2014		6,150			6,049
Australia Government Agency-Guaranteed, Macquarie Bank Ltd. 5.00% 2014	$	A7,250			5,575
State of Qatar 9.75% 2030	$	4,220			5,528
Turkey (Republic of) 15.00% 2010	TRY5,250				3,517
Turkey (Republic of) 8.00% 2034	$	1,250			1,314
Peru (Republic of) 8.375% 2016		2,920			3,380
El Salvador (Republic of) 7.65% 20353		3,450			2,915
Uruguay (Republic of) 7.625% 20366		1,250			1,209
Dominican Republic 9.50% 20113,6		1,172			1,166
Guatemala (Republic of) 10.25% 20113		1,000			1,093
Argentina (Republic of) 5.83% 20332,6,8,10	ARS 4,574				466
Argentina (Republic of) GDP-Linked 2035		18,225			207
Argentina (Republic of) 0.63% 20382,6,10		16,477			293
Ireland Government Agency-Guaranteed, Anglo Irish Bank Corp. plc 1.535% 20161	€1,400				706
Venezuela (Republic of) Global 8.50% 2014	$	245			175
Venezuela (Republic of) 7.65% 2025		985			529
LCR Finance PLC 5.10% 2051	£	165			303
					1,529,693
ASSET-BACKED OBLIGATIONS6 — 3.93%
AmeriCredit Automobile Receivables Trust, Series 2005-C-F, Class A-4, FSA insured, 4.63% 2012	$	9,326			9,473
AmeriCredit Automobile Receivables Trust, Series 2007-D-F, Class A-3-A, FSA insured, 5.49% 2012		9,222			9,357
AmeriCredit Automobile Receivables Trust, Series 2007-A-X, Class A-4, XLCA insured, 0.358% 20131		125,000			105,064
AmeriCredit Automobile Receivables Trust, Series 2006-B-G, Class A-4, FGIC insured, 5.21% 2013		28,269			27,297
AmeriCredit Automobile Receivables Trust, Series 2007-C-M, Class A-4-A, MBIA insured, 5.55% 2014		4,572			4,107
CPS Auto Receivables Trust, Series 2005-B, Class A-2, FSA insured, 4.36% 20123		6,451			6,357
CPS Auto Receivables Trust, Series 2005-D, Class A-2, FSA insured, 5.06% 20123		3,678			3,731
CPS Auto Receivables Trust, Series 2006-A, Class 1-A-4, FSA insured, 5.33% 20123		6,823			6,616
CPS Auto Receivables Trust, Series 2006-B, Class A-4, MBIA insured, 5.81% 20123		25,069			25,185
CPS Auto Receivables Trust, Series 2007-A, Class A-4, MBIA insured, 5.05% 20133		15,100			14,329
CPS Auto Receivables Trust, Series 2006-C, Class A-4, XLCA insured, 5.14% 20133		26,009			22,347
CPS Auto Receivables Trust, Series 2007-B, Class A-4, FSA insured, 5.60% 20143		20,000			19,631
CPS Auto Receivables Trust, Series 2007-C, Class A-4, FSA insured, 5.92% 20143		18,950			17,678
Drive Auto Receivables Trust, Series 2005-3, Class A-4, FSA insured, 5.09% 20133		11,652			11,944
Drive Auto Receivables Trust, Series 2006-1, Class A-4, FSA insured, 5.54% 20133		55,132			55,197
Drive Auto Receivables Trust, Series 2006-2, Class A-3, MBIA insured, 5.33% 20143		15,886			15,877
ARG Funding Corp., Series 2005-1, Class A-3, MBIA insured, 4.29% 20113		50,200			45,148
ARG Funding Corp., Series 2005-2, Class A-4, AMBAC insured, 4.84% 20113		30,000			28,561
Washington Mutual Master Note Trust, Series 2007-B1, Class B-1, 4.95% 20143		4,000			4,027
Washington Mutual Master Note Trust, Series 2007-A4A, Class A-4, 5.20% 20143		30,055			31,206
Washington Mutual Master Note Trust, Series 2006-A2A, Class A, 0.369% 20151,3		31,000			30,267
GS Auto Loan Trust, Series 2006-1, Class A-4, 5.38% 2014		57,000			58,562
GS Auto Loan Trust, Series 2006-1, Class A-4, 5.60% 2014		6,859			6,623
Honda Auto Receivables Owner Trust, Series 2006-3, Class A-4, 5.11% 2012		35,160			35,992
Honda Auto Receivables Owner Trust, Series 2006-2, Class A-4, 5.28% 2012		23,798			24,322
Green Tree Financial Corp., Series 1996-10, Class A-6, 7.30% 2028		1,584			1,510
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029		4,724			4,285
Green Tree Recreational, Equipment & Consumer Trust, Series 1997-D, 7.25% 2029		1,658			735
Conseco Finance Home Equity Loan Trust, Series 2002-B, Class M-1, 2.069% 20331		838			321
Green Tree Financial Corp., Series 2008-MH1, Class A-3, 8.97% 20383		43,139			40,204
Long Beach Acceptance Auto Receivables Trust, Series 2006-B, Class A-3, FSA insured, 5.17% 2011		2,241			2,251
Long Beach Acceptance Auto Receivables Trust, Series 2006-B, Class A-4, FSA insured, 5.18% 2013		27,800			26,530
Long Beach Acceptance Auto Receivables Trust, Series 2007-A, Class A-4, FSA insured, 5.025% 2014		15,500			15,283
Nissan Auto Lease Trust, Series 2008-A, Class A-3a, 5.14% 2011		40,250			41,303
CarMax Auto Owner Trust, Series 2007-2, Class A-3, 5.23% 2011		9,828			9,997
CarMax Auto Owner Trust, Series 2008-2, Class A-3a, 4.99% 2012		8,200			8,420
CarMax Auto Owner Trust, Series 2007-2, Class A-4, 5.27% 2012		20,000			20,582
Prestige Auto Receivables Trust, Series 2005-1A, Class A-2, FSA insured, 4.37% 20123		2,351			2,371
Prestige Auto Receivables Trust, Series 2006-1A, Class A-2, FSA insured, 5.25% 20133		6,836			6,935
Prestige Auto Receivables Trust, Series 2007-1, Class A-3, FSA insured, 5.58% 20143		30,000			29,389
Capital One Auto Finance Trust, Series 2006-A, Class A-4, AMBAC insured, 0.329% 20121		3,236			3,172
Capital One Auto Finance Trust, Series 2006-C, Class A-4, FGIC insured, 0.349% 20131		25,000			22,610
Capital One Auto Finance Trust, Series 2007-B, Class A-4, MBIA insured, 0.349% 20141		12,425			10,996
Santander Drive Auto Receivables Trust, Series 2007-1, Class A-4, FGIC insured, 0.369% 20141		39,261			35,997
Triad Automobile Receivables Trust, Series 2006-C, Class A-3, AMBAC insured, 5.26% 2011		6,020			6,026
Triad Automobile Receivables Trust, Series 2005-A, Class A-4, AMBAC insured, 4.22% 2012		9,343			9,292
Triad Automobile Receivables Trust, Series 2007-A, Class A-3, FSA insured, 5.28% 2012		5,854			5,902
Triad Automobile Receivables Trust, Series 2006-C, Class A-4, AMBAC insured, 5.31% 2013		10,000			9,528
USAA Auto Owner Trust, Series 2007-1, Class A-4, 5.55% 2013		26,000			27,198
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class A-4, 6.57% 2024		7,660			6,926
Vanderbilt Mortgage and Finance, Inc., Series 1999-B, Class I-A-6, 6.925% 2024		6,711			6,583
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-4, 7.905% 2026		1,611			1,627
Vanderbilt Mortgage and Finance, Inc., Series 1997-C, Class II-A-1, 0.528% 20271		544			450
Vanderbilt Mortgage and Finance, Inc., Series 2000-D, Class A-4, 7.715% 2027		1,808			1,740
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-5, 8.195% 2030		6,889			6,882
Vanderbilt Mortgage and Finance, Inc., Series 2001-C, Class M-1, 6.76% 2032		910			618
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class M-1, 7.82% 2032		2,299			1,749
MBNA Credit Card Master Note Trust, Series 2001-C, Class C, 7.10% 20133		15,000			14,871
MBNA Credit Card Master Note Trust, Series 2002-1, Class C, 6.80% 2014		3,435			3,344
MBNA Credit Card Master Note Trust, Series 2006-1, Class C, 0.739% 20151		10,000			7,889
PECO Energy Transition Trust, Series 2001-A, Class A-1, 6.52% 2010		5,000			5,215
PECO Energy Transition Trust, Series 2000-A, Class A-4, 7.65% 2010		17,994			18,200
CWHEQ Home Equity Loan Trust, Series 2006-S2, Class A-5, FGIC insured, 5.753% 20272		15,140			6,207
CWHEQ Home Equity Loan Trust, Series 2006-S6, Class A-6, AMBAC insured, 5.657% 20341		14,652			4,885
CWHEQ Home Equity Loan Trust, Series 2006-S4, Class A-6, AMBAC insured, 5.834% 20341		9,119			3,535
CWHEQ Home Equity Loan Trust, Series 2007-S1, Class A-6, MBIA insured, 5.693% 20361		31,535			8,692
RAMP Trust, Series 2004-RS9, Class A-I-4, AMBAC insured, 4.767% 2032		4,747			3,431
RAMP Trust, Series 2004-RS10, Class A-I-6, 4.55% 2034		23,006			17,848
Hyundai Auto Receivables Trust, Series 2006-A, Class A-4, 5.26% 2012		19,917			20,219
Vega ContainerVessel PLC, Series 2006-1, Class A, XLCA insured, 5.562% 20213		39,492			19,580
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.459% 20371		22,109			13,174
CWHEQ Revolving Home Equity Loan Trust, Series 2007-C, Class A, FGIC insured, 0.469% 20371		14,598			3,532
CWHEQ Revolving Home Equity Loan Trust, Series 2007-B, Class A, FSA insured, 0.469% 20371		4,810			2,214
Chase Issuance Trust, Series 2008-4, Class A, 4.65% 2015		18,000			18,570
AEP Texas Central Transitioning Funding II LLC, Secured Transition Bonds, Series A, Class A-3, 5.09% 2017		16,720			17,484
Susquehanna Auto Lease Trust, Series 2007-1, Class A-3, 5.25% 20103		16,680			16,689
Spirit Master Funding LLC, Net-Lease Mortgage Notes, Series 2005-1, Class A-1, AMBAC insured, 5.05% 20232,3		24,484			15,914
UPFC Auto Receivables Trust, Series 2005-A, Class A-3, AMBAC insured, 4.34% 2010		794			794
UPFC Auto Receivables Trust, Series 2005-B, Class A-3, XLCA insured, 4.98% 2011		3,178			3,173
UPFC Auto Receivables Trust, Series 2007-A, Class A-3, MBIA insured, 5.53% 2013		11,373			11,582
Advanta Business Card Master Trust, Series 2006-A5, Class A, 5.10% 2012		17,669			15,536
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class B-1, 7.30% 2021		6,197			5,511
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-4, 6.57% 2027		8,290			7,390
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-5, 7.12% 2032		3,000			2,526
Wachovia Auto Loan Owner Trust, Series 2006-1, Class A-4, 5.08% 20123		10,000			10,186
Wachovia Auto Loan Owner Trust, Series 2006-1, Class B, 5.15% 20123		5,000			4,700
Credit-Based Asset Servicing and Securitization LLC, Series 2007-MX1, Class A-3, 5.825% 20361,3		8,387			3,533
Credit-Based Asset Servicing and Securitization LLC, Series 2007-MX1, Class M-3, 6.282% 20361,3		3,935			1,020
Credit-Based Asset Servicing and Securitization LLC, Series 2007-MX1, Class M-5, 6.831% 20361,3		4,725			967
Credit-Based Asset Servicing and Securitization LLC, Series 2007-MX1, Class M-6, 7.00% 20361,3		1,816			325
Credit-Based Asset Servicing and Securitization LLC, Series 2007-CB4, Class A-2B, 5.723% 20371		3,061			1,141
Credit-Based Asset Servicing and Securitization LLC, Series 2007-CB2, Class A-2A, 5.891% 20371		9,847			7,859
Drivetime Auto Owner Trust, Series 2007-A, XLCA insured, 5.603% 20131,3		15,372			14,360
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-2, Class A-6, AMBAC insured, 5.08% 20113		14,500			14,157
Residential Funding Mortgage Securities II, Inc., Series 2005-HI1, Class A-4, FGIC insured, 4.70% 2034		3,903			3,541
Residential Funding Mortgage Securities II, Inc., Series 2005-HS1, Class A-1-2, FGIC insured, 4.66% 20351		9,870			8,333
Residential Funding Mortgage Securities II, Inc., Series 2006-HSA3, Class A, FSA insured, 0.444% 20361		2,481			1,639
Franklin Auto Trust, Series 2006-1, Class A-4, 5.03% 2014		10,950			11,161
Franklin Auto Trust, Series 2006-1, Class B, 5.14% 2014		2,000			1,749
Morgan Stanley ABS Capital I Inc., Series 2004-NC3, Class M-1, 1.109% 20341		18,822			9,478
Morgan Stanley ABS Capital I Inc., Series 2004-HE9, Class M-5, 1.364% 20341		2,794			970
GMAC Mortgage Loan Trust, Series 2006-HE3, Class A-5, FGIC insured, 5.809% 20361		5,000			1,454
GMAC Mortgage Loan Trust, Series 2007-HE2, Class A-2, FGIC insured, 6.054% 20371		10,000			3,703
GMAC Mortgage Loan Trust, Series 2007-HE2, Class A-3, FGIC insured, 6.193% 20371		20,000			4,248
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2014		2,309			1,492
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-4, 5.27% 2018		1,184			795
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-5, 5.873% 2022		3,888			2,677
Lehman ABS Manufactured Housing Contract Trust, Series 2002-A, Class A, 0.794% 20331		4,937			3,663
Capital One Multi-asset Execution Trust, Series 2005-1, Class C, 0.719% 20131		9,000			8,491
Residential Asset Securities Corp. Trust, Series 2001-KS3, Class A-I-6, 5.96% 2031		10,950			8,216
AmeriCredit Prime Automobile Receivables Trust, Series 2007-2-M, Class A-4-A, MBIA insured, 5.35% 2016		10,073			7,926
J.P. Morgan Mortgage Acquisition Trust, Series 2007-CH1, Class AF-3, 5.532% 20361		15,000			7,817
New Century Home Equity Loan Trust, Series 2004-A, Class A-II-5, FGIC insured, 5.25% 2034		9,913			7,720
Ford Credit Auto Owner Trust, Series 2006-B, Class B, 5.43% 2012		7,333			6,909
Conseco Finance Securitizations Corp., Series 2002-2, Class A-2, 6.03% 2033		8,265			6,905
Citibank Credit Card Issuance Trust, Series 2008, Class C6, 6.30% 2014		7,000			6,627
CNL Funding, Series 2000-AA, Class A-2, MBIA insured, 8.044% 20173		10,589			6,491
First Horizon ABS Trust, Series 2006-HE2, Class A, FSA insured, 0.444% 20261		741			317
First Horizon ABS Trust, Series 2007-HE1, Class A, FSA insured, 0.444% 20291		11,432			5,738
SACO I Trust, Series 2005-5, Class I-A, 0.554% 20351		4,549			3,116
SACO I Trust, Series 2006-10, Class A, 0.464% 20361		10,234			1,118
SACO I Trust, Series 2006-5, Class II-A-3, 0.494% 20361		6,705			148
SACO I Trust, Series 2006-4, Class A-3, 0.524% 20361		5,187			662
UCFC Manufactured Housing Contract, Series 1996-2, Class A, MBIA insured, 7.135% 2028		5,108			4,764
Consumers Funding LLC, Series 2001-1, Class A-5, 5.43% 2015		4,140			4,378
Cendant Timeshare Receivables Funding, LLC, Series 2005-1, Class A-1, FGIC insured, 4.67% 20173		5,149			4,010
Capital Auto Receivables Asset Trust, Series 2006-SN1, Class C, 5.77% 20103		3,700			3,692
Structured Asset Securities Corp., Series 2005-S7, Class A2, 0.614% 20351,3		9,792			2,373
Structured Asset Securities Corp., Series 2006-S2, Class A-1, 0.384% 20361		609			567
Morgan Stanley Mortgage Loan Trust, Series 2006-4SL, Class A-1, 0.464% 20361		20,692			2,925
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-1, 5.73% 2035		2,328			1,610
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-2, 6.51% 2035		1,864			1,276
Home Equity Asset Trust, Series 2004-7, Class M-1, 0.934% 20351		6,500			2,749
First Investors Auto Owner Trust, Series 2006-A, Class A-4, MBIA insured, 5.00% 20133		2,500			2,480
SLM Student Loan Trust, Series 2003-10, Class A-4, 5.15% 20393	£	1,160			1,765
CWABS Revolving Home Equity Loan Trust, Series 2004-P, Class 2-A, MBIA insured, 0.639% 20341	$	5,668			1,742
CS First Boston Mortgage Securities Corp., Series 2007-3, Class 1-A-3B, 5.846% 20371		8,477			1,712
ACLC Business Loan Receivables Trust, Series 2002-1, Class A-2, 7.462% 20223		1,725			1,428
CSAB Mortgage-backed Trust, Series 2007-1, Class 1-A-3B, 5.908% 20371		5,757			1,417
Countryplace Manufactured Housing Contract, Series 2005-1, Class A-2, AMBAC insured, 4.42% 20351,2,3		1,379			1,255
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series 2007-H1, Class A-1, FSA insured, 0.474% 20371		2,124			1,235
Chase Auto Owner Trust, Series 2006-B, Class B, 5.24% 2014		676			666
Home Equity Mortgage Trust, Series 2006-2, Class 1A-1, 5.367% 20361		1,681			285
Home Equity Mortgage Trust, Series 2006-5, Class A-1, 5.50% 20371		2,166			280
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series SPMD 2001-A, Class AF-6, 6.537% 2030		636			362
Irwin Home Equity, Series 2006-2, Class 2-A3, FGIC insured, 6.40% 20361,3		2,000			345
Merrill Lynch Mortgage Investors Trust, Series 2007-SL1, Class A-1, 0.614% 20371		7,250			205
Option One Mortgage Loan Trust, Series 2002-1, Class M-1, 1.439% 20321		202			81
					1,489,269
MUNICIPALS — 0.66%
California Various Purpose General Obligation Bonds 7.50% 2034		25,000			23,054
California Various Purpose General Obligation Bonds 6.00% 2038		20,000			19,808
State of California, Los Angeles Unified School District (County of Los Angeles), General Obligation Bonds, Election of 2002,
Series 2009-D, 5.20% 2029		8,665			8,703
State of California, Los Angeles Unified School District (County of Los Angeles), General Obligation Bonds, Election of 2002,
Series 2009-D, 5.00% 2034		4,530			4,345
State of California, Los Angeles Unified School District (County of Los Angeles), General Obligation Bonds, Election of 2004,
Series 2009-I, 5.00% 2029		20,000			19,616
State of New York, Long Island Power Authority, Electric System General Revenue Bonds, Series 2009-A, 5.75% 2039		24,330			25,465
State of New York, Metropolitan Transportation Authority, Dedicated Tax Fund Bonds (Federally Taxable-Issuer
Subsidy-Build America Bonds), Series 2009-C, 7.336% 2039		19,500			23,275
State of Arizona, Salt River Project Agricultural Improvement and Power District, Salt River Project Electric System
Revenue Bonds, Series 2009-A, 5.00% 2034		10,000			10,053
State of Arizona, Salt River Project Agricultural Improvement and Power District, Salt River Project Electric System
Revenue Bonds, Series 2009-A, 5.00% 2039		7,445			7,451
State of South Dakota, Educational Enhancement Funding Corp., Tobacco Settlement Asset-backed Bonds,
Series 2002-A, Class A, 6.72% 2025		19,910			16,103
State of Illinois, City of Chicago, General Obligation Bonds, Project and Refunding, Series 2008-C, 5.00% 2034		15,750			15,274
State of Illinois, Regional Transportation Authority of Cook, DuPage, Kane, Lake, McHenry and Will Counties,
General Obligation Bonds, Series 2003-A, FGIC-National insured, 6.00% 2033		12,120			13,628
State of Indiana, Health and Educational Facility Financing Authority, Hospital Revenue Refunding Bonds
(Clarian Health Obligated Group), Series 2006-B, 5.00% 2033		13,860			11,795
District of Columbia, Income Tax Secured Revenue Refunding Bonds, Series 2009-B, 5.25% 2034		10,000			10,291
State of California, Regents of the University of California, General Revenue Bonds, 5.25% 2039		10,000			10,192
State of Texas, City of San Antonio, Electric and Gas Systems Revenue Refunding Bonds, New Series 2009-A, 5.00% 2034		10,000			9,972
State of Wisconsin, General Fund Annual Appropriation Bonds, Series 2009-A, 5.75% 2033		6,000			6,237
State of Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue Bonds, Series 2007, 5.50% 2023		6,000			5,167
State of California, City of Los Angeles, Department of Water and Power, Power System Revenue Bonds,
Series 2007-A, Subseries A-1, AMBAC insured, 5.00% 2037		5,300			5,152
California Maritime Infrastructure Authority, Taxable Lease Revenue Bonds (San Diego Unified Port District-South Bay
Plant Acquisition), Series 1999, 6.63% 20093		2,433			2,438
State of Louisiana, Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds,
Series 2001-A, Class A, 6.36% 2025		2,317			1,985
					250,004
Total bonds & notes (cost: $37,343,711,000)					35,548,002
	Shares or
Convertible securities ­— 0.11%	principal amount
FINANCIALS — 0.07%
PNC Financial Services Group, Inc. 4.00% convertible notes 2011	$	25,000,000			24,688
Citigroup Inc., Series J-1, 7.00% noncumulative convertible preferred2		50,000			2,056
Equity Residential 3.85% convertible notes 2026	$	1,000,000			954
Boston Properties, Inc. 2.875% convertible notes 2037		1,000,000			881
Fannie Mae, Series 2004-1, 5.375% convertible preferred		400			400
					28,979
INFORMATION TECHNOLOGY — 0.04%
Linear Technology Corp., Series A, 3.00% convertible notes 2027	$	11,500,000			9,574
Advanced Micro Devices, Inc. 6.00% convertible notes 2015	$	770,000			365
Advanced Micro Devices, Inc. 5.75% convertible notes 2012	$	6,950,000			4,309
					14,248
Total convertible securities (cost: $77,535,000)					43,227
Preferred securities — 1.84%	Shares
FINANCIALS — 1.84%
JPMorgan Chase & Co., Series I, 7.90%1		114,250,000			100,258
BNP Paribas 7.195%1,3		78,000,000			57,078
BNP Paribas Capital Trust 9.003% noncumulative trust1,3		17,180,000			14,534
SMFG Preferred Capital USD 1 Ltd. 6.078%1,3		63,147,000			50,787
SMFG Preferred Capital USD 3 Ltd. 9.50%1,3		8,998,000			8,818
HSBC Capital Funding LP, Series 2, 10.176% noncumulative step-up1,3		29,550,000			31,096
HSBC Capital Funding LP, Series 1, 9.547% noncumulative step-up1,3		30,000,000			27,983
HSBC Bank Capital Funding (Sterling 1) LP 5.844% noncumulative1		185,000			218
Barclays Bank PLC 7.434%1,3		75,945,000			50,953
Barclays Bank PLC 6.86%1,3		625,000			376
Santander Finance Preferred S.A., Unipersonal, Series 4, 6.80%		1,597,900			30,919
Santander Finance Preferred S.A., Unipersonal, 6.50%		910,000			16,437
AXA SA, Series B, 6.379%1,3		48,770,000			31,289
QBE Capital Funding II LP 6.797%1,3		36,055,000			26,709
Banco Bilbao Vizcaya Argentaria, SA, 5.919%1		43,685,000			25,809
PNC Preferred Funding Trust I 6.517%1,3		45,000,000			24,293
PNC Preferred Funding Trust III 8.70%1,3		1,500,000			1,233
Standard Chartered PLC 6.409%1,3		38,200,000			25,437
Citigroup Inc., Series E, 8.40%1		32,250,000			24,230
Resona Preferred Global Securities (Cayman) Ltd. 7.191%1,3		32,800,000			23,970
Société Générale 5.922%1,3		21,685,000			13,463
Weingarten Realty Investors, Series D, 6.75%		495,420			8,199
Weingarten Realty Investors, Series E, 6.95% cumulative redeemable depositary shares		250,000			4,165
ILFC E-Capital Trust II 6.25%1,3		19,460,000			7,492
ILFC E-Capital Trust I 5.90%1,3		11,750,000			4,524
Commerzbank Capital Funding Trust I, Class B, 5.012% noncumulative1		21,850,000			10,265
Commerzbank Capital Funding Trust II, Class B, 5.905% noncumulative1		300,000			141
Royal Bank of Scotland Group PLC 6.625%1		4,700,000			5,636
Royal Bank of Scotland Group PLC, Series U, 7.64%1		9,800,000			3,973
ING Capital Funding Trust III 8.439% noncumulative1		14,880,000			9,377
Fannie Mae, Series O, 7.00%1,3		4,825,230			8,686
Fannie Mae, Series R, 7.625%		382,800			445
Freddie Mac, Series Z, 8.375%11		2,663,885			3,097
Freddie Mac, Series V, 5.57%11		3,356,231			3,096
Freddie Mac, Series W, 5.66%11		1,548,000			1,537
Freddie Mac, Series F, 5.00%11		294,375			412
Freddie Mac, Series U, 5.90%11		496,600			397
Freddie Mac, Series Y, 6.55%11		374,269			307
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative1,3		19,650,000			8,050
XL Capital Ltd., Series E, 6.50%1		16,250,000			7,972
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities3		300,000			6,685
General Motors Corp. 9.00%3		9,155			3,938
Lloyds TSB Group PLC 6.267%1,3		5,765,000			1,962
HBOS Capital Funding LP, Series A, 6.461% noncumulative1		3,200,000			1,894
BAC Capital Trust XIII 1.029%1		8,075,000			3,614
CBG Florida REIT Corp., Series A, Class A, 7.114%1,3		18,000,000			2,829
Wells Fargo Capital XV 9.75%1		825,000			799
IndyMac Bancorp, Inc., Series A, 8.50% noncumulative3,11		434,000			4
					695,386
U.S. GOVERNMENT AGENCY SECURITIES — 0.00%
US AgBank 6.11%1,3		5,000,000			1,844
Total preferred securities (cost: $1,211,882,000)					697,230
Common stocks — 0.04%
CONSUMER DISCRETIONARY — 0.02%
Ford Motor Co.11		875,023			5,311
Time Warner Cable Inc.11		36,558			1,158
Adelphia Recovery Trust, Series Arahova11		1,943,006			486
Adelphia Recovery Trust, Series ACC-111		3,366,231			67
Adelphia Recovery Trust, Series ACC-6B2,11		5,056,500			25
American Media Operations, Inc.2,3,11		295,801			3
					7,050
INDUSTRIALS — 0.01%
Delta Air Lines, Inc.11		626,265			3,626
UAL Corp.11		10,069			32
					3,658
INFORMATION TECHNOLOGY — 0.01%
ZiLOG, Inc.11,12		879,000			2,092
HEALTH CARE — 0.00%
Clarent Hospital Corp.2,11,12		331,291			17
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc.11		7,614			2
Total common stocks (cost: $49,539,000)					12,819
				Value
Warrants — 0.00%	Shares				(000	)
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc., Series A, warrants, expire 201011		15,233		$	—
XO Holdings, Inc., Series C, warrants, expire 20102,11		11,424			—
XO Holdings, Inc., Series B, warrants, expire 201011		11,424			—
GT Group Telecom Inc., warrants, expire 20102,3,11		2,750			—
					—
INDUSTRIALS — 0.00%
Atrium Corp., warrants, expire 20182,3,11		1,885			—
Total warrants (cost: $143,000)					—
	Principal amount
Short-term securities — 4.43%		(000	)
Federal Home Loan Bank 0.16%–0.44% due 7/1–12/2/2009	$	512,450			512,236
U.S. Treasury Bills 0.19%–0.355% due 7/2–9/24/2009		216,600			216,559
Abbott Laboratories 0.20%–0.23% due 7/1–9/29/20093		141,526			141,477
Park Avenue Receivables Co., LLC 0.26% due 7/13/20093		60,100			60,094
Jupiter Securitization Co., LLC 0.25% due 7/14/20093		50,000			49,995
Merck & Co. Inc. 0.20%–0.25% due 7/17–7/28/2009		104,400			104,388
Procter & Gamble International Funding S.C.A. 0.18%–0.20% due 7/13–8/24/20093		95,900			95,886
NetJets Inc. 0.21% due 8/5/20093		95,000			94,980
Pfizer Inc 0.22%–0.25% due 7/9–9/3/20093		75,400			75,384
General Electric Capital Corp., FDIC insured, 0.24%–0.50% due 7/21–8/25/2009		70,000			69,987
Private Export Funding Corp. 0.22%–0.26% due 8/13–9/25/20093		69,300			69,277
Coca-Cola Co. 0.30% due 7/10-7/22/20093		49,950			49,947
E.I. duPont de Nemours and Co. 0.22% due 7/28/20093		35,000			34,994
United Technologies Corp. 0.19% due 7/23/20093		25,000			24,997
Federal Farm Credit Banks 0.17% due 7/31/2009		25,000			24,995
Yale University 0.40% due 7/17/2009		25,000			24,993
Campbell Soup Co. 0.20% due 7/30/20093		13,432			13,430
Freddie Mac 0.17%–0.20% due 8/10–9/28/2009		10,100			10,096
Medtronic Inc. 0.20% due 7/7/20093		5,950			5,950
Fannie Mae 0.17% due 7/23/2009		250			250
Total short-term securities (cost: $1,679,870,000)					1,679,915
Total investment securities (cost: $40,362,680,000)					37,981,193
Other assets less liabilities					(90,587	)
Net assets				$	37,890,606

1  Coupon rate may change periodically.

2  Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $479,894,000, which represented 1.27% of the net assets of the fund.

3  Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $5,422,332,000, which represented 14.31% of the net assets of the fund.

4 Scheduled interest and/or principal payment was not received.

5  Purchased in a transaction exempt from registration under the Securities Act of 1933. This security (acquired 11/6/2007 at a cost of $3,749,000) maybe subject to legal or contractual restrictions on resale.

6 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

7 Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $182,986,000, which represented .48% of the net assets of the fund.

8 Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

9 Step bond; coupon rate will increase at a later date.

10Index-linked bond whose principal amount moves with a government retail price index.

11Security did not produce income during the last 12 months.

12Represents an affiliated company as defined under the Investment Company Act of 1940.

Key to abbreviations and symbols
ARS = Argentine pesos	€ = Euros	MXN = Mexican pesos
A$ = Australian dollars	£ = British pounds	NKr = Norwegian kroner
BRL = Brazilian reais	ILS = Israeli shekels	PLN = Polish zloty
COP = Colombian pesos	¥ = Japanese yen	SKr = Swedish kronor
DKr = Danish kroner	KRW = South Korean won	TRY = New Turkish liras

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.

MFGEFP-908-0809O-S21436

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE BOND FUND OF AMERICA, INC.

By /s/ Abner D. Goldstine

Abner D. Goldstine, President and

Principal Executive Officer

Date: September 4, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ Abner D. Goldstine

Abner D. Goldstine, President and

Principal Executive Officer

Date: September 4, 2009

By /s/ Ari M. Vinocor

Ari M. Vinocor, Treasurer and

Principal Financial Officer

Date: September 4, 2009