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, 2010

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

         

The Bond Fund of America

[photo of a highway over a body of water]

Semi-annual report for the six months ended June 30, 2010

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, 2010:
Class A shares	1 year			5 years			10 years
Reflecting 3.75% maximum sales charge		8.70	%		2.38	%		4.83	%

The total annual fund operating expense ratio was 0.65% for Class A shares as of the most recent fiscal year-end.

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. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 30 to 35 for details.

Results for other share classes can be found on page 5.

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. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies, such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. 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 t axation, illiquidity and price volatility. 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 a suspension bridge at night with lights on]


Fellow shareholders:

The Bond Fund of America produced a total return of 5.3% for the first half of 2010, aided by ongoing demand for fixed-income securities and a rally in Treasuries during the second quarter.

The fund’s results were comparable to its main benchmarks. For the same time period, the unmanaged Barclays Capital U.S. Aggregate Index recorded a total return of 5.3%, while the Lipper Corporate Debt A-Rated Bond Funds Average (a peer-group measure) gained 5.4%.

A significant portion of the fund’s total return comes from dividends reinvested. For the six-month period, the fund paid monthly dividends totaling approximately 23 cents a share. This amounts to an income return of 2.0% (4.0% if annualized) for our shareholders. Solid gains in the fund’s share price also contributed to favorable results.

[Begin Sidebar]

Results at a glance
For periods ended June 30, 2010, 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)		12.97	%		3.17	%		5.23	%		8.49	%
Barclays Capital U.S. Aggregate
Index1		9.50			5.54			6.47			8.47
Lipper Corporate Debt A-Rated
Bond Funds Average2		13.45			4.29			5.73			8.40
1 The unmanaged Barclays Capital U.S. Aggregate Index began on January 1, 1976. From May 28, 1974, through December 31, 1975, the Barclays Capital U.S. Government/Credit Index was used.
2 Source: Lipper. Lipper averages do not include the effect of sales charges.

[End Sidebar]

Bond market overview

For the first half of 2010, nearly every sector of the bond market recorded positive results. Leadership rotated, with lower rated and riskier sectors posting a strong first quarter, followed by a flight to quality during the final three months as troubles in Europe took center stage.

Corporate bonds, which account for about 28% of portfolio holdings, produced some of the steadiest gains. For much of the period, corporate spreads (the differential between yields on corporate debt and yields of comparable maturity Treasury debt) narrowed, as investors reached for higher yields. This demand was supported by the relatively strong balance sheets of investment-grade companies and prospects for continued earnings growth, despite the sluggishness of the economy. Late in the period, spreads widened as Treasuries rallied in reaction to Europe’s troubles. Overall, industrial and utility issuers generally paced the gains within the corporate sector, while financial companies tended to lag behind.

U.S. government debt, mainly Treasuries, constitutes a large portion of fund holdings as well. A static start to the year gave way to a strong finish for Treasuries when the financial crisis in Greece (and a handful of other European countries) soured investors’ hopes for a strong global economic recovery and spurred a government bond rally. To illustrate: 10-year U.S. Treasuries, which serve as a market bellwether for many investors, began the year yielding about 3.8%, but drifted up to 4.0% in early April. (Remember: As a bond’s yield rises, its price declines, and vice versa.) Shortly thereafter, Europe’s troubles erupted, and the 10-year rallied to end the period at just below 3.0%. As a result of the flight to quality, Treasuries posted some of the best returns of the first half, with longer maturity bonds providing the bigge st gains.

Government mortgage-backed obligations, which also have a large presence in the fund’s portfolio, posted solid gains as well for the six months, though they trailed Treasuries and corporates. Somewhat surprisingly, most of these gains occurred during the second quarter after the Federal Reserve formally ended its massive buyback program for these securities.

Structured bonds, such as commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS), have a much smaller presence in the portfolio. CMBS returns topped most sectors for the six months; however, the bulk of the gains came early in the year. ABS results were positive, but returns within the sector were mixed, with credit card receivables the bright spot.

Inside the portfolio

Changes made to the fund’s mix of securities over the past six months have resulted in a more balanced blend of government securities, corporate bonds and mortgages. Portfolio counselors have sought this broader balance in order to better protect shareholder principal and to provide greater flexibility when responding to shifting currents within the bond market.

Given the steady narrowing of corporate spreads and the corresponding price appreciation that we have seen over the past year, portfolio counselors decided to further reduce exposure to this sector during the first half of the year. As a result, the fund’s weighting in corporates declined to 27.7% at the end of the period from 34.5% at the start.

In response to lingering uncertainties in the market about the economy, portfolio counselors raised the fund’s weighting in both U.S. Treasuries and federal agency direct obligations. As a result, the fund’s combined exposure to U.S. government and government agencies rose to 30.7% from 28.9%.

Within the broader mortgage sector, portfolio counselors increased holdings of federal agency mortgage-backed obligations, even as they lowered exposure to privately originated mortgage-backed securities. This resulted in a net increase in the mortgage sector, from 23.8% of portfolio assets to 27.7%.

Changes to other classes of holdings were relatively minor. A summary of the fund’s portfolio can be found beginning on page 6.

Looking ahead

Adjustments to the portfolio have been made both in response to market changes and in anticipation of probable developments. While the economy continues to show signs of recovery, there are still many weaknesses that could inhibit growth potential over the near term. These include stubbornly high levels of unemployment, tighter credit conditions, a sluggish housing market and rising government debt levels. Additionally, troubles in Europe are a reminder of how interconnected markets are today; adverse developments overseas clearly have the potential to impact growth at home.

With these concerns in mind, portfolio counselors have sought to position the portfolio for the unexpected. They regard the fund’s current mix of securities as affording flexibility in the face of uncertainties. This is not to say that our outlook is grim. On the contrary, we expect the recovery to continue, but progress may be slow and bumpy. We aim to be prepared for the bumps. We also strive to take advantage of opportunities, whether they emerge from unsettled markets or a strengthening economy.

We thank you for this opportunity to discuss the fund’s results and our investment approach. We look forward to reporting to you again at the end of this year.

Cordially,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.

Vice Chairman of the Board

/s/ John H. Smet

John H. Smet

President

August 6, 2010

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

[Begin Sidebar]

The fund’s 30-day yield for Class A shares as of July 31, 2010, calculated in accordance with the Securities and Exchange Commission formula, was 2.94%. The fund’s distribution rate for Class A shares as of that date was 3.61%. 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.

[End Sidebar]

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, 2010:
							10 years1/
	1 year			5 years			Life of class
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		7.13	%		2.08	%		4.60	%
Not reflecting CDSC		12.13			2.41			4.60
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		11.07			2.36			3.95
Not reflecting CDSC		12.07			2.36			3.95
Class F-1 shares3 — first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm		12.96			3.18			4.76
Class F-2 shares3 — first sold 8/4/08
Not reflecting annual asset-based fee charged by
sponsoring firm		13.24			—			4.99
Class 529-A shares4 — first sold 2/15/02
Reflecting 3.75% maximum sales charge		8.65			2.33			4.29
Not reflecting maximum sales charge		12.91			3.12			4.77
Class 529-B shares2,4 — first sold 2/15/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		7.01			1.96			3.93
Not reflecting CDSC		12.01			2.29			3.93
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		11.02			2.30			3.93
Not reflecting CDSC		12.02			2.30			3.93
Class 529-E shares3,4 — first sold 3/7/02		12.58			2.82			4.48
Class 529-F-1 shares3,4 — first sold 9/26/02
Not reflecting annual asset-based fee charged by
sponsoring firm		13.15			3.33			5.18

1Applicable to Class B shares only. All other share classes reflect results for the life of the class.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

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. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 30 to 35 for details that include expense ratios for all share classes.

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

Summary investment portfolio, June 30, 2010

unaudited

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

[begin pie chart]

Portfolio by type of security (percent of net assets)
Bonds & notes of U.S. government & government agencies	30.66
Mortgage-backed obligations	27.73
Corporate bonds & notes	27.68
Bonds & notes of governments & government agencies outside the U.S.	6.41
Asset-backed obligations	1.97
Other securities	1.21
Short-term securities & other assets less liabilities	4.34

[end pie chart]

Portfolio quality summary (percent of net assets)*
U.S. government obligations†	31.3	%
Federal agencies	21.5
AAA/Aaa	7.6
AA/Aa	4.3
A	10.9
BBB/Baa	14.0
BB/Ba	1.9
B	2.2
CCC/Caa or less	1.6
Unrated	0.4
Short-term securities & other assets less liabilities	4.3
* Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness. If agency ratings differ, securities are put in the highest category consistent with fund investment policies. When securities have not been rated by a rating agency (included in unrated above), the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with fund investment policies.
† These securities are guaranteed by the full faith and credit of the United States government.

	Principal		Percent
	amount	Value	of net
Bonds & notes  - 94.73%	(000)	(000)	assets
Bonds & notes of U.S. government & government agencies- 30.66%
U.S. Treasury:
1.125% 2011	$262,675	$265,215
4.625% 2011	133,500	141,844
1.125% 2013	113,955	114,413
3.375% 2013	137,200	147,051
4.25% 2013	705,808	775,754
1.875% 2014	135,375	137,982
2.625% 2014	294,850	308,142
1.625% 2015 (1)	127,582	134,903
2.50% 2015	244,000	252,691
4.00% 2015	262,775	290,069
4.125% 2015	108,495	120,569
4.25% 2015	154,000	172,246
11.25% 2015	101,520	144,959
2.375% 2016	150,000	152,238
2.625% 2016	389,250	400,032
3.00% 2016	126,615	132,160
3.25% 2016	213,100	224,663
4.50% 2017	202,250	230,130
4.625% 2017	165,050	188,589
8.875% 2017	105,600	150,447
3.50% 2018	768,860	822,081
3.75% 2018	494,596	533,026
4.00% 2018	125,000	137,515
3.125% 2019	523,637	534,644
3.625% 2019	572,540	605,461
3.625% 2020	200,200	211,547
6.875% 2025	116,600	161,855
4.50% 2036	356,707	394,218
4.50% 2039	105,160	115,857
4.625% 2040	216,300	243,219
0.75%-10.625% 2010-2040 (1)	2,309,130	2,545,722	27.34%
Federal Home Loan Bank:
3.625% 2013	150,000	160,718
1.125%-5.375% 2012-2016	167,000	176,472	.85
Fannie Mae:
1.75% 2013	110,000	111,898
1.25%-6.125% 2011-2017	159,850	166,164	.70
Freddie Mac 1.75%-5.50% 2011-2016	167,000	175,697	.45
Other securities		517,380	1.32
		12,097,571	30.66
Mortgage-backed obligations- 27.73%
Federal agency mortgage-backed obligations (2)- 22.39%
Fannie Mae:
4.00% 2024	122,192	127,405
4.50% 2024	120,569	127,346
4.00% 2025	326,000	339,339
4.50% 2025	205,711	217,401
4.50% 2025	118,456	125,188
6.50% 2038	140,506	154,126
0%-11.791% 2012-2047 (3)	4,281,452	4,548,306	14.29
Freddie Mac:
4.50% 2025	123,280	130,189
6.00% 2027	102,806	112,596
6.00% 2040 (4)	180,440	195,806
0%-7.50% 2019-2047 (3)	1,505,441	1,599,923	5.17
Government National Mortgage Assn.:
4.50% 2040	131,137	136,944
0%-10.00% 2021-2040	959,659	1,001,796	2.88
Other securities		19,893	.05
		8,836,258	22.39
Commercial mortgage-backed securities (2)- 3.75%
Fannie Mae 4.491%- 6.088% 2011-2012	94,475	99,923	.25
Other securities		1,379,796	3.50
		1,479,719	3.75
Other mortgage-backed securities- 1.59%
Other securities		631,080	1.59
Total mortgage-backed obligations		10,947,057	27.73
Corporate bonds & notes - 27.68%
Financials  - 8.03%
HBOS PLC 6.75% 2018   (5)	123,633	115,892	.29
Other securities		3,051,997	7.74
		3,167,889	8.03
Consumer discretionary- 3.54%
Other securities		1,397,565	3.54
Industrials- 2.83%
Other securities		1,115,229	2.83
Utilities- 2.70%
Other securities		1,067,245	2.70
Energy- 2.68%
Other securities		1,055,987	2.68
Telecommunication services- 2.41%
Other securities		951,148	2.41
Health care- 2.09%
Other securities		821,733	2.09
Consumer staples- 1.75%
Other securities		692,951	1.75
Other corporate bonds & notes- 1.65%
Other securities		647,162	1.65
Total corporate bonds & notes		10,916,909	27.68
Bonds & notes of governments & government agencies outside the U.S.- 6.41%
Canadian Government 2.00% 2014	C$                   141,310	131,661	.33
Other securities		2,396,984	6.08
		2,528,645	6.41
Asset-backed obligations- 1.97%
Other securities		778,993	1.97
Municipals- 0.28%
Other securities		111,690	.28
Total bonds & notes (cost: $35,978,286,000)		37,380,865	94.73
			Percent
		Value	of net
Convertible securities- 0.04%		(000)	assets
Information technology - 0.04%
Other securities		17,250	.04
Total convertible securities (cost: $14,382,000)		17,250	.04
			Percent
		Value	of net
Preferred securities- 0.87%		(000)	assets
Other - 0.87%
Other securities		344,363	.87
Total preferred securities (cost: $346,427,000)		344,363	.87
			Percent
		Value	of net
Common stocks- 0.02%		(000)	assets
Other - 0.02%
Other securities		6,821	.02
Total common stocks (cost: $15,659,000)		6,821	.02
			Percent
		Value	of net
Warrants- 0.00%		(000)	assets
Consumer discretionary- 0.00%
Other securities		64	.00
Total warrants (cost: $80,000)		64	.00
	Principal		Percent
	amount	Value	of net
Short-term securities- 4.91%	(000)	(000)	assets
Freddie Mac 0.17%-0.32% due 8/6-12/20/2010	$                           496,235	$495,919	1.26%
Fannie Mae 0.20%-0.43% due 7/19-12/3/2010	271,840	271,707	.69
Straight-A Funding LLC 0.25%-0.43% due 7/12-8/25/2010 (5)	208,686	208,597	.53
Federal Home Loan Bank 0.18%-0.36% due 7/14/2010-2/8/2011	193,080	193,016	.49
Jupiter Securitization Co., LLC 0.38%-0.42% due 7/29-9/24/2010 (5)	151,642	151,533	.38
U.S. Treasury Bills 0.111%-0.325% due 8/26-9/23/2010	115,600	115,577	.29
Other securities		501,887	1.27
Total short-term securities (cost: $1,938,075,000)		1,938,236	4.91
Total investment securities (cost: $38,292,909,000)		39,687,599	100.57
Other assets less liabilities		(226,179)	(.57)
Net assets		$39,461,420	100.00%

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of $9,881,000, which represented .03% 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. The value of the fund's affiliated-company holdings is included in "Other securities" under the respective industry sector in the summary investment portfolio . Further details on such holdings and related transactions during the six months ended June 30, 2010, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend  income  (000)		Value of affiliate at  6/30/10 (000)
Clarent Hospital Corp. Liquidating Trust (4) (6)		331,291		-		-		331,291	$	-	$	13

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

(2) Principal payments may be made periodically.  Therefore, the effective maturity date may be earlier than the stated maturity date.  The total value of all such securities, including those in "Other securities," was $257,613,000, which represented .65% of the net assets of the fund.

(3) Coupon rate may change periodically.

(4) 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 $257,613,000, which represented .65% of the net assets of the fund.

(5) Acquired 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 $4,911,407,000, which represented 12.45% of the net assets of the fund.

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

Key to symbol

C$ = Canadian dollars

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at June 30, 2010	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $38,290,808)	$	39,687,586
Affiliated issuer (cost: $2,101)		13	$	39,687,599
Cash				3,246
Unrealized appreciation on open forward currency contracts				40,490
Receivables for:
Sales of investments		835,511
Sales of fund's shares		65,739
Closed forward currency contracts		26
Interest		363,406		1,264,682
				40,996,017
Liabilities:
Unrealized depreciation on open forward currency contracts				649
Payables for:
Purchases of investments		1,376,722
Repurchases of fund's shares		102,411
Dividends on fund's shares		21,646
Closed forward currency contracts		9,119
Investment advisory services		6,805
Services provided by affiliates		16,322
Directors' deferred compensation		421
Other		502		1,533,948
Net assets at June 30, 2010			$	39,461,420
Net assets consist of:
Capital paid in on shares of capital stock			$	42,281,793
Distributions in excess of net investment income				(1,439	)
Accumulated net realized loss				(4,251,511	)
Net unrealized appreciation				1,432,577
Net assets at June 30, 2010			$	39,461,420

	(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 5,000,000 shares, $.001 par value (3,239,534 total shares outstanding)
	Net assets		Shares outstanding		Net asset value  per share
Class A	$	27,417,461		2,250,827	$	12.18
Class B		1,053,299		86,467		12.18
Class C		3,174,987		260,640		12.18
Class F-1		2,247,691		184,516		12.18
Class F-2		509,235		41,804		12.18
Class 529-A		856,221		70,289		12.18
Class 529-B		83,194		6,829		12.18
Class 529-C		415,079		34,074		12.18
Class 529-E		45,951		3,772		12.18
Class 529-F-1		51,769		4,250		12.18
Class R-1		101,246		8,311		12.18
Class R-2		851,681		69,916		12.18
Class R-3		1,094,239		89,828		12.18
Class R-4		798,871		65,580		12.18
Class R-5		451,333		37,051		12.18
Class R-6		309,163		25,380		12.18
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended June 30, 2010	(dollars in thousands)
Investment income:
Income:
Interest (net of non-U.S. taxes of $164)	$	876,753
Dividends		449		$	877,202
Fees and expenses*:
Investment advisory services		42,218
Distribution services		68,453
Transfer agent services		17,418
Administrative services		9,809
Reports to shareholders		1,263
Registration statement and prospectus		702
Directors' compensation		156
Auditing and legal		95
Custodian		506
State and local taxes		307
Other		970			141,897
Net investment income					735,305
Net realized gain and unrealized appreciation
on investments, forward currency contracts and currency:
Net realized gain (loss) on:
Investments (net of non-U.S. taxes of $61)		81,605
Forward currency contracts		89,038
Currency transactions		(4,352	)		166,291
Net unrealized appreciation (depreciation) on:
Investments		1,069,881
Forward currency contracts		19,490
Currency translations		(1,617	)		1,087,754
Net realized gain andunrealized appreciation
on investments, forward currency contracts and currency					1,254,045
Net increase in net assets resulting
from operations				$	1,989,350
(*) 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)
	Year ended June 30
	Six months ended June 30, 2010*			Year ended December 31, 2009
Operations:
Net investment income	$	735,305		$	1,707,337
Net realized gain (loss) on investments, forward currency contracts and currency transactions		166,291			(2,638,920	)
Net unrealized appreciation on investments, forward currency contracts and currency translations		1,087,754			6,138,102
Net increase in net assets resulting from operations		1,989,350			5,206,519
Dividends paid or accrued to shareholders from net investment income		(746,334	)		(1,665,583	)
Net capital share transactions		(1,375,750	)		3,865,207
Total (decrease) increase in net assets		(132,734	)		7,406,143
Net assets:
Beginning of period		39,594,154			32,188,011
End of period (including distributions in excess of and undistributed
net investment income: $(1,439) and $9,590, respectively)	$	39,461,420		$	39,594,154
*Unaudited.
See Notes to Financial Statements

Notes to financial statements                                                                                                       

   unaudited

1.   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

*Class B and 529-B shares of the fund are not available for purchase.

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.

2.   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 fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

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 recognizedon 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.

Unfunded commitments – The fund may participate in transactions that involve unfunded commitments, which may obligate the fund to purchase new or additional bonds if certain contingencies are met. As of June 30, 2010, the fund had unfunded bond commitments of $3,520,000, which represented less than 0.01% of the net assets of fund.

3.   Valuation

The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. 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.

Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally 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 generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information
Municipal securities	Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income 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.

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally 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 fair 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 inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs 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.

Classifications - The fund classifies its assets and liabilities into three levels based on the inputs 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 refl ected 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, 2010 (dollars in thousands):

Investment securities:	Level 1		Level 2			Level 3		Total
Bonds & notes:
Bonds & notes of U.S. government & government agencies	$	-	$	12,097,571		$	-	$	12,097,571
Mortgage-backed obligations		-		10,906,457			40,600		10,947,057
Corporate bonds & notes		-		10,915,399			1,510		10,916,909
Bonds & notes of governments & government agencies outside the U.S.		-		2,528,645			-		2,528,645
Asset-backed obligations		-		761,851			17,142		778,993
Municipals		-		111,690			-		111,690
Convertible securities		-		17,250			-		17,250
Preferred securities		16,544		327,819			-		344,363
Common stocks		4,330		-			2,491		6,821
Warrants		-		-			64		64
Short-term securities		-		1,938,236			-		1,938,236
Total	$	20,874	$	39,604,918		$	61,807	$	39,687,599
Forward currency contracts (1):	Level 1		Level 2			Level 3		Total
Unrealized appreciation on open forward currency contracts	$	-	$	40,490		$	-	$	40,490
Unrealized depreciation on open forward currency contracts		-		(649	)		-		(649	)
Total	$	-	$	39,841		$	-	$	39,841
(1) Forward currency contracts are not included in the investment portfolio.

The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the six months ended June 30, 2010 (dollars in thousands):
	Beginning  value at 1/1/2010		Net  purchases and sales			Net realized  loss(2)			Net unrealized appreciation (2)		Net transfers  into Level 3(3)		Ending  value at  6/30/2010
Investment securities	$	27,221	$	(9,361	)	$	(831	)	$	8,421	$	36,357	$	61,807
Net unrealized appreciation during the period on Level 3 investment securities held at June 30, 2010 (dollars in thousands) (2):													$	7,231
(2) Net realized loss and unrealized appreciation are included in the related amounts on investments in the statement of operations.
(3) Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred.

4.   Risk factors

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

The fund is subject to risks, including the possibility that the fund's income and the value of its portfolio holdings may fluctuate in response to economic, political or social events in the U.S. or abroad.

The prices of, and the income generated by, most debt securities held by the fund may be affected by changing interest rates, by changes in the effective maturities and credit ratings of these securities, as well as by events specifically involving the issuers of those securities. For example, the prices 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.

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 values for these securities will fluctuate with changes in interest rates.

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.

5.   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, 2010, 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 2006, by state tax authorities for tax years before 2005 and by tax authorities outside the U.S. for tax years before 2005.

Non-U.S. taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes.

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 different 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; net capital losses; and amortization of premiums.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 fin ancial 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, 2009, the components of distributable earnings on a tax basis were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	49,754
Capital loss carryforwards*:
Expiring 2010	$	(125,233	)
Expiring 2011		(243,982	)
Expiring 2014		(69,196	)
Expiring 2016		(959,389	)
Expiring 2017		(2,930,962	)		(4,328,762	)
*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, 2010, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	1,744,872
Gross unrealized depreciation on investment securities		(433,141	)
Net unrealized appreciation on investment securities		1,311,731
Cost of investment securities		38,375,868

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

Share class	Six months ended June 30, 2010		Year ended December 31, 2009
Class A	$	533,460	$	1,171,526
Class B		17,698		49,620
Class C		49,036		108,139
Class F-1		44,448		126,279
Class F-2		12,522		20,625
Class 529-A		15,526		29,648
Class 529-B		1,304		3,028
Class 529-C		5,948		11,797
Class 529-E		763		1,491
Class 529-F-1		969		1,600
Class R-1		1,592		3,811
Class R-2		12,537		26,641
Class R-3		19,516		44,173
Class R-4		15,453		34,735
Class R-5		9,499		27,537
Class R-6*		6,063		4,933
Total	$	746,334	$	1,665,583
*Class R-6 was offered beginning May 1, 2009.

6.   Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees are based on a series of decreasing 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 series of decreasing 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, 2010, the investment advisory services fee was $42,218,000, which was equivalent to an annualized rate of 0.216% of average dailynet 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, t o 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, 2010, there were no unreimbursed expenses subject to reimbursement for Classes A or 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 as described below.

Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. 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 part ies 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 series of decreasing 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 part y.

Expenses under the agreements described on the previous page for the six months ended June 30, 2010, were as follows (dollars in thousands):

					Administrative services
Share class	Distribution services		Transfer  agent  services		CRMC administrative services		Transfer  agent  services		Commonwealth of Virginia administrative services
Class A	$	33,824	$	16,756	Not applicable		Not applicable		Not applicable
Class B		5,575		662	Not applicable		Not applicable		Not applicable
Class C		15,706	Included in administrative services		$	2,202	$	378	Not applicable
Class F-1		2,803				1,368		125	Not applicable
Class F-2	Not applicable					375		19	Not applicable
Class 529-A		852				355		74	$	399
Class 529-B		425				38		15		43
Class 529-C		1,937				173		53		194
Class 529-E		106				19		4		21
Class 529-F-1		-				21		4		24
Class R-1		501				63		22	Not applicable
Class R-2		3,041				595		1,194	Not applicable
Class R-3		2,697				771		379	Not applicable
Class R-4		986				570		17	Not applicable
Class R-5	Not applicable					215		7	Not applicable
Class R-6	Not applicable					71		1	Not applicable
Total	$	68,453	$	17,418	$	6,836	$	2,292	$	681

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 $156,000, shown on the accompanying financial statements, includes $168,000 in current fees (either paid in cash or deferred) and a net decrease of $12,000 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.

7.   Capital share transactions

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

Share class	Sales(*)				Reinvestments of dividends  and distributions				Repurchases(*)						Net (decrease) increase
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended June 30, 2010
Class A	$	2,649,737		220,871	$	478,072		39,807	$	(3,921,274	)		(326,964	)	$	(793,465	)		(66,286	)
Class B		49,412		4,111		15,895		1,324		(259,050	)		(21,621	)		(193,743	)		(16,186	)
Class C		320,994		26,741		42,463		3,536		(477,446	)		(39,812	)		(113,989	)		(9,535	)
Class F-1		322,922		26,906		39,332		3,275		(515,319	)		(42,976	)		(153,065	)		(12,795	)
Class F-2		100,112		8,348		9,138		761		(355,824	)		(29,753	)		(246,574	)		(20,644	)
Class 529-A		108,542		9,050		14,991		1,248		(51,196	)		(4,270	)		72,337			6,028
Class 529-B		5,266		439		1,256		104		(12,597	)		(1,050	)		(6,075	)		(507	)
Class 529-C		57,997		4,835		5,739		478		(30,654	)		(2,557	)		33,082			2,756
Class 529-E		6,561		547		736		61		(3,016	)		(252	)		4,281			356
Class 529-F-1		8,636		719		936		78		(3,885	)		(324	)		5,687			473
Class R-1		17,121		1,427		1,529		127		(23,389	)		(1,949	)		(4,739	)		(395	)
Class R-2		154,205		12,848		12,052		1,004		(135,105	)		(11,267	)		31,152			2,585
Class R-3		188,693		15,730		18,752		1,561		(238,552	)		(19,882	)		(31,107	)		(2,591	)
Class R-4		160,455		13,375		14,861		1,237		(189,195	)		(15,789	)		(13,879	)		(1,177	)
Class R-5		97,541		8,136		9,131		761		(120,697	)		(10,066	)		(14,025	)		(1,169	)
Class R-6		55,365		4,632		5,873		489		(12,866	)		(1,071	)		48,372			4,050
Total net increase											��
(decrease)	$	4,303,559		358,715	$	670,756		55,851	$	(6,350,065	)		(529,603	)	$	(1,375,750	)		(115,037	)
Year ended December 31, 2009
Class A	$	8,658,161		782,590	$	1,064,353		95,240	$	(6,787,523	)		(604,967	)	$	2,934,991			272,863
Class B		258,257		23,640		44,500		3,996		(437,963	)		(39,085	)		(135,206	)		(11,449	)
Class C		1,306,870		118,167		94,973		8,498		(762,734	)		(67,922	)		639,109			58,743
Class F-1		1,658,840		150,099		109,818		9,879		(2,355,758	)		(209,330	)		(587,100	)		(49,352	)
Class F-2		723,216		65,057		15,631		1,368		(149,439	)		(13,148	)		589,408			53,277
Class 529-A		219,770		19,609		29,524		2,638		(99,735	)		(8,863	)		149,559			13,384
Class 529-B		15,490		1,398		3,016		270		(10,965	)		(975	)		7,541			693
Class 529-C		130,705		11,657		11,741		1,050		(60,952	)		(5,395	)		81,494			7,312
Class 529-E		13,309		1,189		1,484		133		(6,541	)		(574	)		8,252			748
Class 529-F-1		21,956		1,931		1,590		141		(7,963	)		(702	)		15,583			1,370
Class R-1		49,412		4,420		3,722		334		(47,225	)		(4,184	)		5,909			570
Class R-2		315,716		28,235		26,421		2,366		(229,867	)		(20,531	)		112,270			10,070
Class R-3		411,155		36,770		43,747		3,920		(399,873	)		(35,607	)		55,029			5,083
Class R-4		289,937		25,938		34,544		3,095		(313,682	)		(27,975	)		10,799			1,058
Class R-5		281,846		25,451		25,360		2,289		(568,691	)		(51,568	)		(261,485	)		(23,828	)
Class R-6(†)		237,322		21,177		4,926		425		(3,194	)		(272	)		239,054			21,330
Total net increase
(decrease)	$	14,591,962		1,317,328	$	1,515,350		135,642	$	(12,242,105	)		(1,091,098	)	$	3,865,207			361,872
* Includes exchanges between share classes of the fund.
(†)Class R-6 was offered beginning May 1, 2009.

8.   Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $9,997,215,000 and $11,905,625,000, respectively, during the six months ended June 30, 2010.

9.   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, 2010, the fund had open forward currency contracts to sell currencies as shown on the following table. The open forward currency contracts shown are generally indicative of the level of activity during the six months ended June 30, 2010.

					(amounts in thousands)
	Settlement		Contract amount				Unrealized (depreciation) appreciation at June 30,
	date	Counterparty	Receive		Deliver		2010
Sales:
Brazilian reais	8/3/2010	JPMorgan Chase	$	58,185	BRL106,100		$	(166	)
British pounds	7/16/2010	UBS AG	$	12,282	£	8,335		(172	)
Danish kroner	8/6/2010	UBS AG	$	50,889	DKr291,110			3,095
Danish kroner	8/9/2010	UBS AG	$	15,143	DKr87,715			742
Euros	7/20/2010	HSBC Bank	$	309	€	250		3
Euros	7/21/2010	HSBC Bank	$	1,239	€	1,000		16
Euros	7/22/2010	UBS AG	$	65,321	€	49,035		5,353
Euros	7/22/2010	JPMorgan Chase	$	88,800	€	66,105		7,955
Euros	7/26/2010	Bank of New York Mellon	$	9,830	€	8,000		46
Euros	7/28/2010	Bank of New York Mellon	$	1,853	€	1,500		18
Euros	7/30/2010	JPMorgan Chase	$	4,606	€	3,750		19
Euros	7/30/2010	UBS AG	$	26,001	€	21,170		109
Euros	7/30/2010	JPMorgan Chase	$	6,580	€	5,000		464
Euros	8/3/2010	JPMorgan Chase	$	32,707	€	24,750		2,436
Euros	8/5/2010	JPMorgan Chase	$	64,096	€	48,550		4,716
Euros	8/6/2010	HSBC Bank	$	19,333	€	14,830		1,195
Euros	8/9/2010	UBS AG	$	68,699	€	53,405		3,379
Euros	8/10/2010	Bank of New York Mellon	$	668	€	505		24
Euros	8/13/2010	UBS AG	$	123,587	€	97,270		4,614
Euros	8/16/2010	UBS AG	$	4,707	€	3,725		151
Euros	8/17/2010	JPMorgan Chase	$	61,783	€	49,070		1,763
Hungarian forints	8/6/2010	HSBC Bank	$	15,578	HUF3,332,855			1,361
Japanese yen	7/30/2010	JPMorgan Chase	$	27,773	¥	2,481,881		(311	)
Mexican pesos	7/13/2010	JPMorgan Chase	$	15,120	MXN206,925			80
Polish zloty	7/26/2010	HSBC Bank	$	3,461	PLN11,500			78
Polish zloty	8/6/2010	HSBC Bank	$	31,358	PLN96,885			2,873
Forward currency contracts - net							$	39,841

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 6/30/2010(5)	$	11.80	$	.23	$	.38		$	.61		$	(.23	)	$	12.18		5.25	%	$	27,418		.61	%(6)		.61	%(6)		3.88	%(6)
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.91			27,349		.65			.65			4.74
	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
Class B:	Six months ended 6/30/2010(5)		11.80		.19		.38			.57			(.19	)		12.18		4.85			1,053		1.36	(6)		1.36	(6)		3.15	(6)
	Year ended 12/31/2009		10.76		.45		1.03			1.48			(.44	)		11.80		14.06			1,212		1.40			1.40			4.05
	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
Class C:	Six months ended 6/30/2010(5)		11.80		.19		.38			.57			(.19	)		12.18		4.82			3,175		1.40	(6)		1.40	(6)		3.09	(6)
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		14.00			3,189		1.44			1.44			3.91
	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
Class F-1:	Six months ended 6/30/2010(5)		11.80		.23		.38			.61			(.23	)		12.18		5.25			2,248		.61	(6)		.61	(6)		3.88	(6)
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.91			2,329		.65			.65			4.80
	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
Class F-2:	Six months ended 6/30/2010(5)		11.80		.25		.38			.63			(.25	)		12.18		5.38			509		.37	(6)		.37	(6)		4.15	(6)
	Year ended 12/31/2009		10.76		.56		1.03			1.59			(.55	)		11.80		15.19			737		.39			.39			4.66
	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 6/30/2010(5)		11.80		.23		.38			.61			(.23	)		12.18		5.23			856		.66	(6)		.66	(6)		3.82	(6)
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.86			758		.70			.70			4.67
	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
Class 529-B:	Six months ended 6/30/2010(5)		11.80		.18		.38			.56			(.18	)		12.18		4.79			83		1.46	(6)		1.46	(6)		3.03	(6)
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.94			86		1.50			1.50			3.89
	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
Class 529-C:	Six months ended 6/30/2010(5)		11.80		.18		.38			.56			(.18	)		12.18		4.80			415		1.45	(6)		1.45	(6)		3.03	(6)
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.95			370		1.49			1.49			3.87
	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
Class 529-E:	Six months ended 6/30/2010(5)	$	11.80	$	.21	$	.38		$	.59		$	(.21	)	$	12.18		5.07	%	$	46		.94	%(6)		.94	%(6)		3.54	% (6)
	Year ended 12/31/2009		10.76		.49		1.03			1.52			(.48	)		11.80		14.52			40		.99			.99			4.38
	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
Class 529-F-1:	Six months ended 6/30/2010(5)		11.80		.24		.38			.62			(.24	)		12.18		5.34			52		.45	(6)		.45	(6)		4.04	(6)
	Year ended 12/31/2009		10.76		.55		1.03			1.58			(.54	)		11.80		15.09			44		.49			.49			4.84
	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
Class R-1:	Six months ended 6/30/2010(5)		11.80		.19		.38			.57			(.19	)		12.18		4.83			101		1.38	(6)		1.38	(6)		3.11	(6)
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		14.02			103		1.43			1.43			3.96
	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
Class R-2:	Six months ended 6/30/2010(5)		11.80		.18		.38			.56			(.18	)		12.18		4.81			852		1.42	(6)		1.42	(6)		3.06	(6)
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.95			795		1.49			1.49			3.89
	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
Class R-3:	Six months ended 6/30/2010(5)		11.80		.21		.38			.59			(.21	)		12.18		5.07			1,094		.94	(6)		.94	(6)		3.55	(6)
	Year ended 12/31/2009		10.76		.50		1.03			1.53			(.49	)		11.80		14.54			1,091		.97			.97			4.43
	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
Class R-4:	Six months ended 6/30/2010(5)		11.80		.23		.38			.61			(.23	)		12.18		5.24			799		.63	(6)		.63	(6)		3.86	(6)
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.90			788		.66			.66			4.75
	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
Class R-5:	Six months ended 6/30/2010(5)		11.80		.25		.38			.63			(.25	)		12.18		5.40			451		.33	(6)		.33	(6)		4.16	(6)
	Year ended 12/31/2009		10.76		.56		1.03			1.59			(.55	)		11.80		15.24			451		.37			.37			5.20
	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
Class R-6:	Six months ended 6/30/2010(5)		11.80		.25		.38			.63			(.25	)		12.18		5.43			309		.28	(6)		.28	(6)		4.19	(6)
	Period from 5/1/2009 to 12/31/2009		10.78		.35		1.01			1.36			(.34	)		11.80		12.75			252		.31	(6)		.31	(6)		4.59	(6)

	Six months ended June 30,			Year ended December 31
	2010(5)			2009			2008			2007			2006			2005
Portfolio turnover rate for all classes of shares		43	%		84	%		57	%		58	%		53	%		50	%

(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, 2010, through June 30, 2010).

Actual expenses:

The first line of each share class in the table on page 38 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 page 38 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-1 shareholders 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 on the previous page. In addition, your ending account value wou ld be lower by the amount of these fees.

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 1/1/2010		Ending account value 6/30/2010		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,052.51	$	3.10		.61	%
Class A -- assumed 5% return		1,000.00		1,021.77		3.06		.61
Class B -- actual return		1,000.00		1,048.50		6.91		1.36
Class B -- assumed 5% return		1,000.00		1,018.05		6.80		1.36
Class C -- actual return		1,000.00		1,048.25		7.11		1.40
Class C -- assumed 5% return		1,000.00		1,017.85		7.00		1.40
Class F-1 -- actual return		1,000.00		1,052.48		3.10		.61
Class F-1 -- assumed 5% return		1,000.00		1,021.77		3.06		.61
Class F-2 -- actual return		1,000.00		1,053.83		1.88		.37
Class F-2 -- assumed 5% return		1,000.00		1,022.96		1.86		.37
Class 529-A -- actual return		1,000.00		1,052.25		3.36		.66
Class 529-A -- assumed 5% return		1,000.00		1,021.52		3.31		.66
Class 529-B -- actual return		1,000.00		1,047.93		7.41		1.46
Class 529-B -- assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class 529-C -- actual return		1,000.00		1,047.96		7.36		1.45
Class 529-C -- assumed 5% return		1,000.00		1,017.60		7.25		1.45
Class 529-E -- actual return		1,000.00		1,050.70		4.78		.94
Class 529-E -- assumed 5% return		1,000.00		1,020.13		4.71		.94
Class 529-F-1 -- actual return		1,000.00		1,053.40		2.29		.45
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.56		2.26		.45
Class R-1 -- actual return		1,000.00		1,048.32		7.01		1.38
Class R-1 -- assumed 5% return		1,000.00		1,017.95		6.90		1.38
Class R-2 -- actual return		1,000.00		1,048.12		7.21		1.42
Class R-2 -- assumed 5% return		1,000.00		1,017.75		7.10		1.42
Class R-3 -- actual return		1,000.00		1,050.73		4.78		.94
Class R-3 -- assumed 5% return		1,000.00		1,020.13		4.71		.94
Class R-4 -- actual return		1,000.00		1,052.42		3.21		.63
Class R-4 -- assumed 5% return		1,000.00		1,021.67		3.16		.63
Class R-5 -- actual return		1,000.00		1,054.00		1.68		.33
Class R-5 -- assumed 5% return		1,000.00		1,023.16		1.66		.33
Class R-6 -- actual return		1,000.00		1,054.27		1.43		.28
Class R-6 -- assumed 5% return		1,000.00		1,023.41		1.40		.28
*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).

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional term through March 31, 2011. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee considered, among other things, the impact of current market conditions on the fund and CRMC. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fun d that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.  

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing as high a level of current income as is consistent with the preservation of capital. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related board and committee meetings. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that although the fund’s net asset value per share had declined during the one-year period ended December 31, 2008, CRMC’s record in managi ng the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising the fund and the other cl ients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers . The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutu al fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the termination of CRMC’s 10% advisory fee waiver effective December 31, 2008. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

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

(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

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, CA 90071-3106

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 summary prospectus and 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, 2010, 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 summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2010, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

         

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 more than 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 26 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 Fund®

•American Funds Target Date Retirement Series®

The Capital Group Companies

American FundsCapital Research and ManagementCapital InternationalCapital GuardianCapital Bank and Trust

Lit. No. MFGESR-908-0810P

Litho in USA BG/ALD/6370-S26169

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

Bond Fund of AmericaSM

Investment portfolio

June 30, 2010

unaudited

Bonds & notes — 94.73%	Principal amount (000)			Value (000)
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 30.66%
U.S. Treasury 2.00% 2010	$	30,000		$	30,135
U.S. Treasury 0.875% 2011		30,000			30,145
U.S. Treasury 1.125% 2011		262,675			265,215
U.S. Treasury 2.375% 20111		21,032			21,402
U.S. Treasury 4.625% 2011		133,500			141,844
U.S. Treasury 5.00% 2011		10,300			10,604
U.S. Treasury 0.75% 2012		6,100			6,118
U.S. Treasury 0.875% 2012		14,000			14,076
U.S. Treasury 1.00% 2012		98,230			98,982
U.S. Treasury 1.00% 2012		14,200			14,308
U.S. Treasury 1.375% 2012		70,525			71,541
U.S. Treasury 1.375% 2012		15,000			15,230
U.S. Treasury 2.00% 20121		45,926			47,621
U.S. Treasury 4.25% 2012		100,000			108,141
U.S. Treasury 4.50% 2012		15,000			16,050
U.S. Treasury 4.875% 2012		89,730			96,147
U.S. Treasury 1.125% 2013		113,955			114,413
U.S. Treasury 1.375% 2013		12,000			12,163
U.S. Treasury 1.375% 2013		5,300			5,370
U.S. Treasury 1.875% 20131		29,673			31,450
U.S. Treasury 2.00% 2013		40,040			41,111
U.S. Treasury 2.75% 2013		50,000			52,524
U.S. Treasury 3.125% 2013		50,000			53,227
U.S. Treasury 3.375% 2013		137,200			147,051
U.S. Treasury 3.375% 2013		60,000			64,343
U.S. Treasury 3.50% 2013		15,825			17,008
U.S. Treasury 3.625% 2013		70,400			75,845
U.S. Treasury 3.875% 2013		100,000			108,043
U.S. Treasury 4.25% 2013		705,808			775,754
U.S. Treasury 1.75% 2014		51,400			52,235
U.S. Treasury 1.75% 2014		5,000			5,070
U.S. Treasury 1.875% 2014		135,375			137,982
U.S. Treasury 1.875% 2014		11,000			11,200
U.S. Treasury 2.25% 2014		5,063			5,224
U.S. Treasury 2.00% 20141		76,925			82,085
U.S. Treasury 2.00% 20141		11,565			12,435
U.S. Treasury 2.375% 2014		18,500			19,111
U.S. Treasury 2.625% 2014		294,850			308,142
U.S. Treasury 2.625% 2014		101,910			106,158
U.S. Treasury 4.25% 2014		58,750			65,440
U.S. Treasury 1.625% 20151		127,582			134,903
U.S. Treasury 2.125% 2015		5,350			5,443
U.S. Treasury 2.25% 2015		11,150			11,428
U.S. Treasury 2.50% 2015		244,000			252,691
U.S. Treasury 2.50% 2015		10,200			10,571
U.S. Treasury 4.00% 2015		262,775			290,069
U.S. Treasury 4.125% 2015		108,495			120,569
U.S. Treasury 4.25% 2015		154,000			172,246
U.S. Treasury 10.625% 2015		9,700			13,882
U.S. Treasury 11.25% 2015		101,520			144,959
U.S. Treasury 2.375% 2016		150,000			152,238
U.S. Treasury 2.625% 2016		389,250			400,032
U.S. Treasury 2.625% 2016		86,400			88,914
U.S. Treasury 3.00% 2016		126,615			132,160
U.S. Treasury 3.125% 2016		36,750			38,557
U.S. Treasury 3.25% 2016		213,100			224,663
U.S. Treasury 3.25% 2016		97,250			103,313
U.S. Treasury 3.25% 2016		65,000			68,915
U.S. Treasury 7.25% 2016		25,000			32,120
U.S. Treasury 9.25% 2016		45,900			63,625
U.S. Treasury 2.375% 20171		30,430			33,679
U.S. Treasury 2.75% 2017		16,650			17,002
U.S. Treasury 3.125% 2017		5,000			5,227
U.S. Treasury 3.25% 2017		54,300			57,214
U.S. Treasury 4.50% 2017		202,250			230,130
U.S. Treasury 4.625% 2017		165,050			188,589
U.S. Treasury 8.75% 2017		25,000			35,191
U.S. Treasury 8.875% 2017		105,600			150,447
U.S. Treasury 3.50% 2018		768,860			822,081
U.S. Treasury 3.75% 2018		494,596			533,026
U.S. Treasury 3.875% 2018		54,250			59,302
U.S. Treasury 4.00% 2018		125,000			137,515
U.S. Treasury 2.75% 2019		11,600			11,558
U.S. Treasury 3.125% 2019		523,637			534,644
U.S. Treasury 3.625% 2019		572,540			605,461
U.S. Treasury 8.125% 2019		20,000			28,502
U.S. Treasury 3.50% 2020		50,000			52,332
U.S. Treasury 3.625% 2020		200,200			211,547
U.S. Treasury 8.50% 2020		4,700			6,896
U.S. Treasury 8.75% 2020		18,300			27,440
U.S. Treasury 8.00% 2021		5,925			8,620
U.S. Treasury 8.125% 2021		56,175			82,200
U.S. Treasury 7.125% 2023		30,000			41,548
U.S. Treasury 7.50% 2024		26,500			38,456
U.S. Treasury 2.375% 20251		13,068			14,528
U.S. Treasury 6.875% 2025		116,600			161,855
U.S. Treasury 7.625% 2025		9,500			13,962
U.S. Treasury 6.00% 2026		40,500			52,204
U.S. Treasury 6.25% 2030		10,175			13,766
U.S. Treasury 4.50% 2036		356,707			394,218
U.S. Treasury 4.375% 2038		39,140			42,332
U.S. Treasury 4.50% 2038		2,200			2,427
U.S. Treasury 4.25% 2039		33,500			35,437
U.S. Treasury 4.375% 2039		2,250			2,430
U.S. Treasury 4.50% 2039		105,160			115,857
U.S. Treasury 2.125% 20401		20,273			22,265
U.S. Treasury 4.375% 2040		3,600			3,894
U.S. Treasury 4.625% 2040		216,300			243,219
Federal Home Loan Bank 1.125% 2012		23,000			23,139
Federal Home Loan Bank 1.75% 2012		69,000			70,267
Federal Home Loan Bank, Series 363, 4.50% 2012		50,000			54,076
Federal Home Loan Bank 3.625% 2013		150,000			160,718
Federal Home Loan Bank 5.375% 2016		25,000			28,990
Fannie Mae 1.75% 2011		20,000			20,186
Fannie Mae, Series 2, 1.25% 2012		70,100			70,676
Fannie Mae 6.125% 2012		20,000			21,849
Fannie Mae 1.75% 2013		110,000			111,898
Fannie Mae 2.50% 2014		7,250			7,473
Fannie Mae 3.00% 2014		13,500			14,130
Fannie Mae 2.375% 2015		12,000			12,068
Fannie Mae 5.375% 2017		17,000			19,782
Freddie Mac 5.25% 2011		20,000			20,965
Freddie Mac 1.75% 2012		60,000			61,079
Freddie Mac 2.125% 2012		20,000			20,501
Freddie Mac 2.50% 2014		37,000			38,162
Freddie Mac 5.50% 2016		30,000			34,990
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.25% 2011		10,000			10,100
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 0.436% 20122		50,000			50,063
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 0.539% 20122		11,020			11,041
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		20,000			20,431
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		20,000			20,414
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		10,000			10,213
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.125% 2012		11,000			11,291
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.25% 2012		25,050			25,829
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 1.625% 2011		8,250			8,295
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 1.80% 2011		9,665			9,761
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.125% 2012		52,500			53,934
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.25% 2012		29,250			30,027
United States Government Agency-Guaranteed (FDIC insured), GMAC LLC 1.75% 2012		27,500			28,003
United States Government Agency-Guaranteed (FDIC insured), GMAC LLC 2.20% 2012		32,500			33,445
CoBank ACB 7.875% 20183		22,115			24,181
CoBank ACB 1.137% 20222,3		46,470			36,729
United States Government Agency-Guaranteed (FDIC insured), Goldman Sachs Group, Inc. 3.25% 2012		25,000			26,146
United States Government Agency-Guaranteed (FDIC insured), State Street Corp. 2.15% 2012		20,000			20,510
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp. 2.375% 2012		17,500			18,037
Federal Agricultural Mortgage Corp. 4.875% 20113		10,000			10,244
Federal Agricultural Mortgage Corp. 5.125% 20173		5,000			5,438
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 2.625% 2014		5,000			5,177
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 3.00% 2014		10,000			10,436
United States Government Agency-Guaranteed (FDIC insured), John Deere Capital Corp. 2.875% 2012		10,000			10,421
Tennessee Valley Authority 5.25% 2039		9,250			10,132
United States Government Agency-Guaranteed (FDIC insured), Sovereign Bancorp, Inc. 2.75% 2012		7,500			7,741
United States Agency for International Development, Republic of Egypt 4.45% 2015		5,000			5,512
Private Export Funding Corp., Series W, 5.00% 2016		3,400			3,829
					12,097,571
MORTGAGE-BACKED OBLIGATIONS — 27.73%
FEDERAL AGENCY MORTGAGE-BACKED OBLIGATIONS4 — 22.39%
Fannie Mae 4.89% 2012		25,000			25,819
Fannie Mae, Series 2002-15, Class PG, 6.00% 2017		4,772			5,192
Fannie Mae 4.00% 2019		23,869			25,178
Fannie Mae 4.50% 2019		15,063			16,056
Fannie Mae 4.50% 2019		14,354			15,300
Fannie Mae 5.50% 2019		133			144
Fannie Mae 5.50% 2020		11,156			12,113
Fannie Mae 5.50% 2020		1,280			1,389
Fannie Mae 11.197% 20202		167			192
Fannie Mae, Series 2003-48, Class TJ, 4.50% 2022		14,879			15,573
Fannie Mae 5.50% 2022		1,500			1,622
Fannie Mae 5.50% 2022		637			689
Fannie Mae 6.00% 2022		1,554			1,692
Fannie Mae 4.50% 2023		18,636			19,721
Fannie Mae 5.00% 2023		13,216			14,121
Fannie Mae 5.00% 2023		13,023			13,915
Fannie Mae 5.00% 2023		10,801			11,541
Fannie Mae 5.00% 2023		9,343			9,983
Fannie Mae 5.00% 2023		8,786			9,388
Fannie Mae 5.00% 2023		8,227			8,790
Fannie Mae 5.00% 2023		6,329			6,771
Fannie Mae 5.00% 2023		5,995			6,405
Fannie Mae 5.50% 2023		35,125			37,951
Fannie Mae 5.50% 2023		31,317			33,945
Fannie Mae 5.50% 2023		2,198			2,378
Fannie Mae 5.50% 2023		1,711			1,851
Fannie Mae 6.00% 2023		3,472			3,780
Fannie Mae 4.00% 2024		122,192			127,405
Fannie Mae 4.00% 2024		46,288			48,225
Fannie Mae 4.00% 2024		45,524			47,429
Fannie Mae 4.00% 2024		43,932			45,770
Fannie Mae 4.00% 2024		34,118			35,546
Fannie Mae 4.00% 2024		22,361			23,297
Fannie Mae 4.00% 2024		22,158			23,085
Fannie Mae 4.00% 2024		22,113			23,057
Fannie Mae 4.50% 2024		120,569			127,346
Fannie Mae 4.50% 2024		47,969			50,718
Fannie Mae 4.50% 2024		45,638			48,218
Fannie Mae 4.50% 2024		44,867			47,389
Fannie Mae 4.50% 2024		42,964			45,426
Fannie Mae 4.50% 2024		42,576			44,970
Fannie Mae 4.50% 2024		35,906			37,935
Fannie Mae 4.50% 2024		28,606			30,245
Fannie Mae 4.50% 2024		28,035			29,641
Fannie Mae 4.50% 2024		24,989			26,420
Fannie Mae 4.50% 2024		21,890			23,164
Fannie Mae 4.50% 2024		16,807			17,770
Fannie Mae 4.50% 2024		15,318			16,196
Fannie Mae 4.50% 2024		11,683			12,352
Fannie Mae 4.50% 2024		7,479			7,908
Fannie Mae 4.50% 2024		6,869			7,263
Fannie Mae 4.50% 2024		5,401			5,711
Fannie Mae 4.50% 2024		3,955			4,182
Fannie Mae 4.50% 2024		1,362			1,440
Fannie Mae 4.50% 2024		1,009			1,066
Fannie Mae 4.50% 2024		831			878
Fannie Mae 5.00% 2024		38,147			40,761
Fannie Mae 5.50% 2024		29,444			31,818
Fannie Mae 5.50% 2024		20,695			22,361
Fannie Mae 6.00% 2024		9,159			10,026
Fannie Mae 3.50% 2025		50,000			50,695
Fannie Mae 4.00% 2025		326,000			339,339
Fannie Mae 4.00% 2025		65,391			68,066
Fannie Mae 4.00% 2025		49,725			51,760
Fannie Mae 4.00% 2025		36,750			38,197
Fannie Mae 4.00% 2025		35,941			37,411
Fannie Mae 4.00% 2025		34,995			36,427
Fannie Mae 4.00% 2025		31,165			32,440
Fannie Mae 4.00% 2025		19,993			20,811
Fannie Mae 4.00% 2025		15,870			16,519
Fannie Mae 4.00% 2025		15,180			15,801
Fannie Mae 4.00% 2025		14,472			15,064
Fannie Mae 4.00% 2025		13,000			13,532
Fannie Mae 4.00% 2025		12,000			12,491
Fannie Mae 4.00% 2025		10,000			10,409
Fannie Mae 4.00% 2025		10,000			10,409
Fannie Mae 4.00% 2025		7,000			7,286
Fannie Mae 4.00% 2025		6,000			6,245
Fannie Mae 4.00% 2025		5,046			5,257
Fannie Mae 4.00% 2025		4,211			4,384
Fannie Mae 4.00% 2025		4,000			4,164
Fannie Mae 4.00% 2025		3,000			3,123
Fannie Mae 4.50% 2025		205,711			217,401
Fannie Mae 4.50% 2025		118,456			125,188
Fannie Mae 4.50% 2025		103,347			109,220
Fannie Mae 4.50% 2025		57,929			61,221
Fannie Mae 4.50% 2025		29,901			31,600
Fannie Mae 4.50% 2025		17,432			18,423
Fannie Mae 4.50% 2025		17,110			18,082
Fannie Mae 4.50% 2025		16,519			17,458
Fannie Mae 4.50% 2025		14,427			15,247
Fannie Mae, Series 2001-4, Class GA, 9.939% 20252		361			420
Fannie Mae, Series 2001-4, Class NA, 11.791% 20252		1,253			1,416
Fannie Mae 4.234% 20262		391			412
Fannie Mae 6.00% 2026		21,582			23,624
Fannie Mae 5.50% 2027		14,961			16,121
Fannie Mae 6.00% 2028		5,534			6,058
Fannie Mae 6.00% 2028		5,533			6,057
Fannie Mae, Series 1998-W5, Class B3, 6.50% 2028		1,710			1,336
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029		554			632
Fannie Mae, Series 2001-25, Class ZA, 6.50% 2031		4,369			4,847
Fannie Mae, Series 2001-20, Class E, 9.633% 20312		56			64
Fannie Mae 6.50% 2032		574			629
Fannie Mae 6.50% 2034		863			945
Fannie Mae 4.584% 20352		7,372			7,693
Fannie Mae 5.00% 2035		30,817			32,715
Fannie Mae 5.00% 2035		3,352			3,558
Fannie Mae, Series 2005-68, Class PG, 5.50% 2035		5,134			5,642
Fannie Mae 6.50% 2035		6,625			7,357
Fannie Mae, Series 2006-51, Class PO, principal only, 0% 2036		7,425			6,287
Fannie Mae, Series 2006-32, Class OA, principal only, 0% 2036		6,934			6,041
Fannie Mae, Series 2006-96, Class OP, principal only, 0% 2036		1,555			1,382
Fannie Mae, Series 2006-101, Class PC, 5.50% 2036		6,185			6,733
Fannie Mae 5.50% 2036		6,000			6,451
Fannie Mae 5.50% 2036		3,000			3,228
Fannie Mae 6.00% 2036		18,211			19,830
Fannie Mae, Series 2006-106, Class HG, 6.00% 2036		17,290			18,859
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036		15,395			16,905
Fannie Mae 6.00% 2036		8,156			8,878
Fannie Mae 6.00% 2036		7,272			7,912
Fannie Mae 6.00% 2036		5,208			5,674
Fannie Mae 6.50% 2036		16,080			17,660
Fannie Mae 6.50% 2036		10,400			11,425
Fannie Mae 7.00% 2036		1,437			1,593
Fannie Mae 7.00% 2036		719			799
Fannie Mae 7.50% 2036		865			959
Fannie Mae 7.50% 2036		112			124
Fannie Mae 8.00% 2036		1,391			1,555
Fannie Mae 5.243% 20372		1,250			1,331
Fannie Mae 5.488% 20372		15,744			16,695
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037		25,638			27,918
Fannie Mae 5.50% 2037		9,000			9,677
Fannie Mae 5.537% 20372		6,838			7,165
Fannie Mae 5.588% 20372		22,860			24,221
Fannie Mae 5.676% 20372		11,080			11,647
Fannie Mae 5.686% 20372		8,484			8,878
Fannie Mae 5.765% 20372		13,696			14,590
Fannie Mae 5.796% 20372		7,264			7,607
Fannie Mae 6.00% 2037		82,805			89,978
Fannie Mae 6.00% 2037		54,039			58,658
Fannie Mae 6.00% 2037		34,719			37,687
Fannie Mae 6.00% 2037		29,773			32,317
Fannie Mae 6.00% 2037		27,543			29,879
Fannie Mae 6.00% 2037		23,813			25,875
Fannie Mae 6.00% 2037		15,822			17,164
Fannie Mae 6.00% 2037		8,321			9,032
Fannie Mae 6.00% 2037		7,482			8,038
Fannie Mae 6.00% 2037		4,249			4,565
Fannie Mae, Series 2007-24, Class P, 6.00% 2037		3,495			3,809
Fannie Mae 6.00% 2037		110			120
Fannie Mae 6.50% 2037		20,267			22,188
Fannie Mae 6.50% 2037		18,988			20,828
Fannie Mae 6.50% 2037		16,544			18,113
Fannie Mae 6.50% 2037		12,131			13,279
Fannie Mae 6.50% 2037		10,660			11,558
Fannie Mae 6.50% 2037		1,454			1,592
Fannie Mae 7.00% 2037		12,618			13,755
Fannie Mae 7.00% 2037		5,247			5,720
Fannie Mae 7.00% 2037		4,589			5,003
Fannie Mae 7.00% 2037		1,221			1,356
Fannie Mae 7.00% 2037		764			849
Fannie Mae 7.00% 2037		652			723
Fannie Mae 7.00% 2037		253			282
Fannie Mae 7.50% 2037		2,509			2,805
Fannie Mae 7.50% 2037		1,251			1,387
Fannie Mae 7.50% 2037		1,167			1,294
Fannie Mae 7.50% 2037		872			967
Fannie Mae 7.50% 2037		795			882
Fannie Mae 7.50% 2037		792			878
Fannie Mae 7.50% 2037		747			828
Fannie Mae 7.50% 2037		741			822
Fannie Mae 7.50% 2037		658			729
Fannie Mae 7.50% 2037		588			652
Fannie Mae 7.50% 2037		567			629
Fannie Mae 7.50% 2037		426			472
Fannie Mae 7.50% 2037		256			284
Fannie Mae 7.50% 2037		192			212
Fannie Mae 7.50% 2037		170			189
Fannie Mae 7.50% 2037		131			146
Fannie Mae 7.50% 2037		131			145
Fannie Mae 7.50% 2037		108			120
Fannie Mae 7.50% 2037		91			101
Fannie Mae 7.50% 2037		68			75
Fannie Mae 8.00% 2037		1,215			1,370
Fannie Mae 8.00% 2037		699			766
Fannie Mae 8.00% 2037		462			516
Fannie Mae 8.00% 2037		445			490
Fannie Mae 4.944% 20382		13,494			14,245
Fannie Mae 5.31% 20382		8,390			8,926
Fannie Mae 5.50% 2038		36,610			39,301
Fannie Mae 5.50% 2038		30,699			32,956
Fannie Mae 5.50% 2038		28,949			31,123
Fannie Mae 5.50% 2038		27,712			29,791
Fannie Mae 5.50% 2038		11,862			12,752
Fannie Mae 5.50% 2038		9,979			10,729
Fannie Mae 5.50% 2038		9,802			10,537
Fannie Mae 5.50% 2038		8,659			9,308
Fannie Mae 5.50% 2038		8,000			8,600
Fannie Mae 5.50% 2038		7,390			7,944
Fannie Mae 5.50% 2038		5,000			5,375
Fannie Mae 5.50% 2038		663			712
Fannie Mae 5.50% 2038		344			370
Fannie Mae 5.50% 2038		299			321
Fannie Mae 5.544% 20382		1,926			2,052
Fannie Mae 5.671% 20382		13,439			14,195
Fannie Mae 5.722% 20382		15,982			16,913
Fannie Mae 6.00% 2038		46,353			50,368
Fannie Mae 6.00% 2038		28,165			30,587
Fannie Mae 6.00% 2038		25,666			27,860
Fannie Mae 6.00% 2038		21,394			23,247
Fannie Mae 6.00% 2038		19,437			21,121
Fannie Mae 6.00% 2038		17,351			18,818
Fannie Mae 6.00% 2038		16,286			17,663
Fannie Mae 6.00% 2038		12,700			13,774
Fannie Mae 6.00% 2038		11,997			13,029
Fannie Mae 6.00% 2038		11,959			12,967
Fannie Mae 6.00% 2038		11,550			12,544
Fannie Mae 6.00% 2038		9,364			10,170
Fannie Mae 6.00% 2038		9,058			9,837
Fannie Mae 6.00% 2038		8,072			8,754
Fannie Mae 6.00% 2038		7,970			8,655
Fannie Mae 6.00% 2038		7,051			7,662
Fannie Mae 6.00% 2038		6,577			7,142
Fannie Mae 6.50% 2038		140,506			154,126
Fannie Mae 6.50% 2038		62,828			68,918
Fannie Mae 6.50% 2038		29,929			32,824
Fannie Mae 6.50% 2038		13,353			14,645
Fannie Mae 6.50% 2038		7,646			8,385
Fannie Mae 3.603% 20392		18,279			19,078
Fannie Mae 3.607% 20392		42,744			44,541
Fannie Mae 3.61% 20392		38,400			40,076
Fannie Mae 3.637% 20392		22,004			22,943
Fannie Mae 3.643% 20392		32,500			33,895
Fannie Mae 3.646% 20392		31,584			32,985
Fannie Mae 3.736% 20392		8,191			8,577
Fannie Mae 3.763% 20392		13,357			13,990
Fannie Mae 3.782% 20392		42,393			44,203
Fannie Mae 3.811% 20392		12,200			12,792
Fannie Mae 3.83% 20392		10,158			10,654
Fannie Mae 3.841% 20392		9,698			10,185
Fannie Mae 3.88% 20392		4,574			4,799
Fannie Mae 3.891% 20392		9,095			9,487
Fannie Mae 3.91% 20392		16,112			16,936
Fannie Mae 3.937% 20392		19,328			20,321
Fannie Mae 3.951% 20392		3,170			3,333
Fannie Mae 4.50% 2039		91,646			95,186
Fannie Mae 4.50% 2039		22,436			23,309
Fannie Mae 5.00% 2039		84,058			89,078
Fannie Mae 5.00% 2039		45,208			47,909
Fannie Mae 5.00% 2039		38,896			41,219
Fannie Mae 5.12% 20392		20,185			21,503
Fannie Mae 5.50% 2039		33,198			35,685
Fannie Mae 5.50% 2039		25,600			27,518
Fannie Mae 5.50% 2039		5,000			5,375
Fannie Mae 6.00% 2039		15,544			16,863
Fannie Mae 6.00% 2039		8,647			9,396
Fannie Mae 6.00% 2039		7,456			8,097
Fannie Mae 6.00% 2039		7,253			7,864
Fannie Mae 6.00% 2039		821			891
Fannie Mae 3.201% 20402		49,744			51,222
Fannie Mae 3.622% 20402		31,944			33,365
Fannie Mae 4.50% 2040		50,000			51,923
Fannie Mae 4.50% 2040		24,999			25,984
Fannie Mae 5.00% 2040		27,451			29,091
Fannie Mae 5.00% 2040		25,002			26,495
Fannie Mae 5.00% 2040		16,684			17,674
Fannie Mae 5.50% 2040		72,000			77,293
Fannie Mae 5.50% 2040		46,520			49,941
Fannie Mae 5.50% 2040		21,000			22,573
Fannie Mae 5.50% 2040		3,000			3,225
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041		5,282			5,917
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041		1,652			1,820
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041		3,059			3,492
Fannie Mae, Series 2002-W1, Class 2A, 7.50% 2042		3,564			4,107
Fannie Mae 6.00% 2047		953			1,019
Fannie Mae 6.50% 2047		655			707
Fannie Mae 6.50% 2047		392			423
Fannie Mae 6.50% 2047		318			343
Fannie Mae 7.00% 2047		2,614			2,850
Fannie Mae 7.00% 2047		162			177
Fannie Mae 7.50% 2047		607			672
Freddie Mac, Series 2890, Class KT, 4.50% 2019		2,500			2,729
Freddie Mac 5.50% 2019		6,123			6,643
Freddie Mac, Series 2626, Class NG, 3.50% 2023		1,381			1,427
Freddie Mac, Series 2922, Class EL, 4.50% 2023		23,710			24,560
Freddie Mac 5.00% 2023		9,902			10,565
Freddie Mac 5.00% 2023		397			424
Freddie Mac 5.00% 2023		61			65
Freddie Mac, Series 1617, Class PM, 6.50% 2023		1,466			1,624
Freddie Mac 5.00% 2024		27,252			29,103
Freddie Mac 4.00% 2025		62,793			65,314
Freddie Mac 4.00% 2025		54,530			56,718
Freddie Mac 4.00% 2025		53,638			55,791
Freddie Mac 4.00% 2025		25,750			26,736
Freddie Mac 4.00% 2025		23,770			24,724
Freddie Mac 4.00% 2025		23,351			24,288
Freddie Mac 4.00% 2025		20,500			21,323
Freddie Mac 4.00% 2025		19,606			20,392
Freddie Mac 4.00% 2025		17,317			18,012
Freddie Mac 4.00% 2025		16,812			17,484
Freddie Mac 4.50% 2025		123,280			130,189
Freddie Mac 4.50% 2025		78,735			83,148
Freddie Mac 4.50% 2025		63,149			66,688
Freddie Mac 4.50% 2025		49,466			52,238
Freddie Mac 4.50% 2025		33,139			34,997
Freddie Mac 4.50% 2025		15,256			16,111
Freddie Mac 4.50% 2025		6,995			7,387
Freddie Mac 4.50% 2025		6,067			6,407
Freddie Mac 4.50% 2025		3,065			3,237
Freddie Mac 6.00% 2026		17,785			19,478
Freddie Mac 6.00% 2026		14,117			15,462
Freddie Mac 5.50% 2027		9,618			10,360
Freddie Mac 6.00% 2027		102,806			112,596
Freddie Mac, Series 2153, Class GG, 6.00% 2029		2,476			2,722
Freddie Mac, Series 2122, Class QM, 6.25% 2029		4,278			4,666
Freddie Mac 4.371% 20352		9,300			9,695
Freddie Mac, Series 3061, Class PN, 5.50% 2035		37,586			41,415
Freddie Mac, Series 3136, Class OP, principal only, 0% 2036		6,629			5,992
Freddie Mac, Series 3149, Class MO, principal only, 0% 2036		4,527			3,979
Freddie Mac, Series 3147, Class OD, principal only, 0% 2036		4,460			3,910
Freddie Mac, Series 3149, Class AO, principal only, 0% 2036		3,968			3,451
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036		84			75
Freddie Mac, Series 3257, Class PA, 5.50% 2036		43,022			46,847
Freddie Mac, Series 3233, Class PA, 6.00% 2036		33,416			36,813
Freddie Mac, Series 3156, Class NG, 6.00% 2036		10,607			11,860
Freddie Mac, Series 3286, Class JN, 5.50% 2037		54,527			58,486
Freddie Mac, Series 3318, Class JT, 5.50% 2037		30,687			32,925
Freddie Mac, Series 3312, Class PA, 5.50% 2037		23,093			24,796
Freddie Mac 5.50% 2037		20,299			21,786
Freddie Mac 5.50% 2037		18,426			19,776
Freddie Mac 5.522% 20372		23,663			25,407
Freddie Mac 5.744% 20372		8,390			9,011
Freddie Mac 5.823% 20372		2,556			2,727
Freddie Mac 5.843% 20372		4,818			5,052
Freddie Mac 5.909% 20372		24,459			26,391
Freddie Mac 5.918% 20372		9,920			10,416
Freddie Mac, Series 3271, Class OA, 6.00% 2037		13,832			15,346
Freddie Mac 6.00% 2037		2,300			2,501
Freddie Mac 6.00% 2037		1,677			1,820
Freddie Mac 7.00% 2037		892			976
Freddie Mac 7.00% 2037		363			398
Freddie Mac 7.00% 2037		292			319
Freddie Mac 7.50% 2037		5,994			6,611
Freddie Mac 4.804% 20382		10,322			10,997
Freddie Mac 4.913% 20382		15,812			16,764
Freddie Mac 5.00% 2038		7,086			7,504
Freddie Mac 5.023% 20382		12,198			12,954
Freddie Mac 5.052% 20382		8,490			9,044
Freddie Mac 5.33% 20382		12,881			13,722
Freddie Mac 5.50% 2038		14,396			15,469
Freddie Mac 5.50% 2038		14,229			15,289
Freddie Mac 5.50% 2038		12,238			13,150
Freddie Mac 5.555% 20382		21,165			22,483
Freddie Mac 6.00% 2038		50,675			54,975
Freddie Mac 6.50% 2038		12,343			13,525
Freddie Mac 3.571% 20392		7,616			7,887
Freddie Mac 3.757% 20392		12,224			12,770
Freddie Mac 3.843% 20392		3,160			3,308
Freddie Mac 3.902% 20392		3,697			3,863
Freddie Mac 3.907% 20392		6,634			6,921
Freddie Mac 5.00% 2039		56,524			59,883
Freddie Mac 5.50% 2039		44,234			47,527
Freddie Mac 5.50% 2039		6,296			6,765
Freddie Mac 6.00% 2039		10,413			11,330
Freddie Mac 6.00% 2039		6,626			7,205
Freddie Mac 6.50% 2039		13,750			15,093
Freddie Mac 6.50% 2039		9,060			9,950
Freddie Mac 6.00% 20405		180,440			195,806
Freddie Mac 6.00% 2040		19,441			21,140
Freddie Mac 6.00% 2040		16,465			17,904
Freddie Mac 6.50% 2047		1,361			1,472
Freddie Mac 6.50% 2047		757			819
Freddie Mac 7.00% 2047		556			606
Government National Mortgage Assn. 10.00% 2021		627			716
Government National Mortgage Assn., Series 2005-58, Class NO, principal only, 0% 2035		4,053			3,656
Government National Mortgage Assn. 4.50% 2038		12,930			13,510
Government National Mortgage Assn. 4.50% 2038		1,353			1,413
Government National Mortgage Assn. 6.00% 2038		60,169			65,643
Government National Mortgage Assn. 6.50% 2038		216			238
Government National Mortgage Assn. 3.50% 2039		12,748			12,604
Government National Mortgage Assn. 3.50% 2039		12,531			12,390
Government National Mortgage Assn. 3.50% 2039		6,584			6,510
Government National Mortgage Assn. 3.50% 2039		2,642			2,613
Government National Mortgage Assn. 3.50% 2039		1,508			1,491
Government National Mortgage Assn. 4.00% 2039		64,615			65,826
Government National Mortgage Assn. 4.00% 2039		19,771			20,142
Government National Mortgage Assn. 4.00% 2039		5,424			5,526
Government National Mortgage Assn. 4.50% 2039		41,000			42,816
Government National Mortgage Assn. 4.50% 2039		16,667			17,405
Government National Mortgage Assn. 4.50% 2039		15,637			16,292
Government National Mortgage Assn. 4.50% 2039		11,824			12,347
Government National Mortgage Assn. 4.50% 2039		6,981			7,290
Government National Mortgage Assn. 4.50% 2039		3,205			3,347
Government National Mortgage Assn. 4.50% 2039		1,137			1,187
Government National Mortgage Assn. 5.00% 2039		43,944			46,939
Government National Mortgage Assn. 5.00% 2039		43,694			46,672
Government National Mortgage Assn. 4.00% 2040		39,827			40,518
Government National Mortgage Assn. 4.00% 2040		1,997			2,035
Government National Mortgage Assn. 4.50% 2040		131,137			136,944
Government National Mortgage Assn. 4.50% 2040		94,850			98,822
Government National Mortgage Assn. 4.50% 2040		41,175			42,998
Government National Mortgage Assn. 4.50% 2040		35,287			36,767
Government National Mortgage Assn. 4.50% 2040		34,033			35,460
Government National Mortgage Assn. 4.50% 2040		29,784			31,033
Government National Mortgage Assn. 4.50% 2040		28,825			30,101
Government National Mortgage Assn. 4.50% 2040		26,127			27,284
Government National Mortgage Assn. 4.50% 2040		22,564			23,564
Government National Mortgage Assn. 4.50% 2040		20,125			21,016
Government National Mortgage Assn. 4.50% 2040		17,621			18,401
Government National Mortgage Assn. 4.50% 2040		16,857			17,603
Government National Mortgage Assn. 4.50% 2040		15,640			16,296
Government National Mortgage Assn. 4.50% 2040		14,980			15,644
Government National Mortgage Assn. 4.50% 2040		10,892			11,374
Government National Mortgage Assn. 4.50% 2040		9,397			9,791
Government National Mortgage Assn. 4.50% 2040		8,992			9,390
Government National Mortgage Assn. 4.50% 2040		8,801			9,170
Government National Mortgage Assn. 4.50% 2040		7,030			7,341
Government National Mortgage Assn. 4.50% 2040		5,529			5,761
Government National Mortgage Assn. 4.50% 2040		4,554			4,744
Government National Mortgage Assn. 4.50% 2040		3,967			4,143
Government National Mortgage Assn. 4.50% 2040		3,446			3,598
Government National Mortgage Assn. 4.50% 2040		3,410			3,553
Government National Mortgage Assn. 4.50% 2040		3,000			3,133
Government National Mortgage Assn. 4.50% 2040		2,771			2,894
Government National Mortgage Assn. 4.50% 2040		2,735			2,856
Government National Mortgage Assn. 4.50% 2040		1,848			1,925
Government National Mortgage Assn. 5.00% 2040		15,011			16,035
Government National Mortgage Assn. 5.00% 2040		15,003			15,993
Government National Mortgage Assn. 5.00% 2040		9,143			9,767
Government National Mortgage Assn. 5.00% 2040		7,968			8,511
Government National Mortgage Assn. 5.00% 2040		5,141			5,492
Government National Mortgage Assn. 5.00% 2040		2,069			2,210
FDIC Structured Sale Guaranteed Notes, Series 2010-L1A, Class A-1, 0% 20113		1,850			1,828
FDIC Structured Sale Guaranteed Notes, Series 2010-L2A, Class A, 3.00% 20193		17,846			18,065
					8,836,258
COMMERCIAL MORTGAGE-BACKED SECURITIES4 — 3.75%
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A-4, 5.435% 2034		986			1,009
CS First Boston Mortgage Securities Corp., Series 2001-CF2, Class A-4, 6.505% 2034		249			252
CS First Boston Mortgage Securities Corp., Series 2001-CK3, Class A-4, 6.53% 2034		2,024			2,076
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A-1, 4.106% 2035		392			401
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class A-3, 6.38% 2035		18,660			18,857
CS First Boston Mortgage Securities Corp., Series 2002-CKP1, Class F, 7.067% 20352,3		1,500			1,503
CS First Boston Mortgage Securities Corp., Series 2002-CKS4, Class G, 6.006% 20362,3		500			426
CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A-3, 6.387% 2036		26,369			27,362
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-2, 4.183% 2037		8,012			8,012
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 2037		12,900			12,978
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class A-AB, 4.614% 2037		20,000			20,708
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class A-MFX, 4.877% 2037		10,000			7,579
CS First Boston Mortgage Securities Corp., Series 2004-C1, Class E, 5.015% 20373		8,240			7,197
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A-3, 6.133% 2037		2,500			2,641
CS First Boston Mortgage Securities Corp., Series 2003-C3, Class F, 4.518% 20383		2,000			1,801
CS First Boston Mortgage Securities Corp., Series 2005-C4, Class A-2, 5.017% 2038		2,510			2,553
CS First Boston Mortgage Securities Corp., Series 2005-C5, Class A-AB, 5.10% 20382		12,000			12,612
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A-4, 4.283% 2039		20,855			20,939
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 2039		51,900			51,458
CS First Boston Mortgage Securities Corp., Series 2006-C1, Class A-3, 5.711% 20392		10,000			10,605
CS First Boston Mortgage Securities Corp., Series 2006-C2, Class A-3, 5.846% 20392		7,305			7,611
CS First Boston Mortgage Securities Corp., Series 2007-C4, Class A-4, 5.998% 20392		14,645			13,951
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 20402		42,125			44,304
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC1, Class A-3, 6.26% 2033		3,004			3,042
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C2, Class F, 6.167% 20342,3		2,500			2,355
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C3, Class A-1, 4.20% 2035		253			258
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CBX, Class A-5, 4.654% 2037		2,500			2,552
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.495% 20372		61,300			63,042
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C1, Class E, 6.135% 20373		400			375
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-ML1, Class A-1, 3.972% 2039		4,729			4,852
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-C3, Class A-3, 4.545% 2042		21,050			21,358
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A-2, 4.575% 2042		4,767			4,762
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-3A1, 4.871% 2042		25,000			25,196
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4A, 4.936% 20422		1,655			1,739
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A-2, 5.198% 2044		10,080			10,305
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CIBC14, Class A-4, 5.481% 20442		15,130			15,750
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 6.064% 20452		49,042			51,639
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A-2, 4.625% 2046		11,102			11,326
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.937% 20492		14,603			14,747
Fannie Mae, Series 2001-T6B, 6.088% 2011		48,250			50,273
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012		46,225			49,650
American Tower Trust I, Series 2007-1A, Class A-FX, 5.42% 20373		18,500			19,236
American Tower Trust I, Series 2007-1A, Class B, 5.537% 20373		10,000			10,398
American Tower Trust I, Series 2007-1A, Class C, 5.615% 20373		10,000			10,398
American Tower Trust I, Series 2007-1A, Class D, 5.957% 20373		35,515			36,838
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20373		8,250			8,537
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20373		10,000			10,273
Greenwich Capital Commercial Funding Corp., Series 2003-C1, Class A-2, 3.285% 2035		215			215
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-2, 5.117% 2037		12,790			12,927
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-5, 5.224% 20372		11,000			11,276
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 20372		15,000			15,579
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 6.085% 20382		18,720			19,602
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039		31,000			31,118
Banc of America Commercial Mortgage Inc., Series 2001-1, Class A-2, 6.503% 2036		37,401			38,158
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-3, 4.561% 2041		9,975			10,070
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-AB, 4.673% 2041		1,643			1,691
Banc of America Commercial Mortgage Inc., Series 2004-4, Class B, 4.985% 2042		1,000			921
Banc of America Commercial Mortgage Inc., Series 2005-3, Class A-2, 4.501% 2043		924			934
Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-4, 5.115% 20452		2,500			2,585
Banc of America Commercial Mortgage Inc., Series 2006-4, Class A-4, 5.634% 2046		5,000			5,148
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.837% (undated)2		7,966			7,716
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP6, Class A-4, 5.475% 20432		51,820			55,101
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045		5,000			5,272
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A-M, 6.064% 20452		7,645			6,723
Wachovia Bank Commercial Mortgage Trust, Series 2003-C9, Class A-3, 4.608% 2035		2,063			2,127
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A-PB, 4.807% 2042		2,950			3,026
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A-7, 5.118% 20422		4,650			4,931
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-2, 5.242% 2044		8,684			8,722
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-4, 5.445% 20442		15,350			16,400
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-PB, 5.45% 20442		8,038			8,384
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A-PB, 5.446% 2045		16,750			17,726
GE Commercial Mortgage Corp., Series 2004-C3, Class B, 5.401% 20392		8,000			5,687
GE Commercial Mortgage Corp., Series 2004-C2, Class B, 4.983% 2040		19,193			15,942
GE Commercial Mortgage Corp., Series 2006-C1, Class A-4, 5.514% 20442		33,700			35,611
Crown Castle Towers LLC, Series 2010-1, Class C, 4.523% 20353		2,000			2,080
Crown Castle Towers LLC, Series 2006-1, Class E, 6.065% 20363		31,000			32,403
Crown Castle Towers LLC, Series 2006-1, Class F, 6.65% 20363		5,000			5,150
Crown Castle Towers LLC, Series 2010-2, Class C, 5.495% 20373		10,000			10,614
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class AM, 5.405% 20372		4,620			4,354
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A-3-A, 4.949% 20382		8,500			8,656
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A-3, 5.838% 20392		3,050			3,166
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20412		6,805			7,050
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class A-4, 4.747% 20432		5,065			5,251
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805% 20432		6,300			5,847
Merrill Lynch Mortgage Trust, Series 2006-C2, Class A-4, 5.742% 20432		10,250			10,999
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% (undated)2		41,210			40,768
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20263,5		38,233			40,600
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048		38,657			40,217
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2, Class X, interest only, 0.713% 20312		39,776			1,391
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-C1, Class X, interest only, 0.881% 20312,3		34,291			773
Bear Stearns Commercial Mortgage Securities Inc., Series 2000-WF2, Class A-2, 7.32% 2032		1,887			1,885
Bear Stearns Commercial Mortgage Securities Inc., Series 2002-PBW1, Class A-1, 3.97% 2035		1,878			1,905
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class D, 6.94% 20353		3,000			2,703
Bear Stearns Commercial Mortgage Securities Inc., Series 2004-PWR6, Class A-4, 4.521% 2041		10,000			10,161
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-3, 4.868% 2042		20,825			20,979
Commercial Mortgage Trust, Series 2004-LB3A, Class A-4, 5.234% 2037		10,956			11,281
Commercial Mortgage Trust, Series 2003-LNB1, Class A-2, 4.084% 2038		20,000			20,666
Commercial Mortgage Trust, Series 2004-LNB2, Class A-3, 4.221% 2039		7,092			7,115
GMAC Commercial Mortgage Securities, Inc., Series 1997-C1, Class F, 7.222% 2029		551			555
GMAC Commercial Mortgage Securities, Inc., Series 2001-C1, Class A-2, 6.465% 2034		27,851			28,348
GMAC Commercial Mortgage Securities, Inc., Series 2003-C1, Class F, 4.718% 20362,3		1,000			919
GMAC Commercial Mortgage Securities, Inc., Series 2003-C1, Class G, 4.817% 20362,3		1,000			833
GE Capital Commercial Mortgage Corp., Series 2001-1, Class A-2, 6.531% 2033		17,711			18,119
GE Capital Commercial Mortgage Corp., Series 2002-3, Class A-2, 4.996% 2037		2,500			2,618
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A-1, 5.56% 2038		571			577
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A-2, 6.07% 2038		2,500			2,607
LB-UBS Commercial Mortgage Trust, Series 2002-C1, Class A-3, 6.226% 2026		144			145
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-2, 5.103% 2030		3,461			3,478
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-4, 5.197% 20302		5,000			5,317
LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A-M, 5.017% 20402		10,000			9,528
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A-3, 5.92% (undated)2		15,800			16,874
COBALT CMBS Commerical Mortgage Trust, Series 2006-C1, Class A-2, 5.174% 2048		12,663			13,114
Salomon Brothers Commercial Mortgage Trust, Series 2000-C3, Class A-2, 6.592% 2033		4,677			4,688
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-3, 6.428% 2035		6,005			6,150
Salomon Brothers Commercial Mortgage Trust, Series 2001-C2, Class A-3, 6.499% 2036		2,119			2,191
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A-2, 5.376% 20422		7,875			8,222
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PWR13, Class A-4, 5.54% 2041		6,000			6,269
Morgan Stanley Dean Witter Capital I Trust, Series 2000-LIFE2, Class A-2, 7.20% 2033		1,391			1,395
Morgan Stanley Dean Witter Capital I Trust, Series 2003-TOP9, Class A-1, 3.98% 2036		1,924			1,933
Chase Manhattan Bank - First Union National Bank, Commercial Mortgage Trust, Series 1999-1, Class C, 7.625% 2031		498			497
					1,479,719
COLLATERALIZED MORTGAGE-BACKED OBLIGATIONS (PRIVATELY ORIGINATED)4 — 0.94%
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-22, Class 5-A-1, 5.901% 20352		2,940			2,158
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-8, Class 3-AF, 0.727% 20362		12,162			7,365
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-2, Class 5-A-1, 6.00% 20362		5,242			3,754
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-12, Class 2-A1, 5.729% 20372		17,819			12,656
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-6, Class 3-A-1, 5.963% 20372		17,693			11,878
WaMu Mortgage Pass-Through Certificates Trust, Series 2004-AR11, Class A, 2.828% 20342		16,661			16,000
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY7, Class 2-A1, 5.737% 20372		28,260			19,231
Residential Accredit Loans, Inc., Series 2004-QS16, Class 1-A-1, 5.50% 2034		5,099			5,008
Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.00% 2034		24,111			23,279
American General Mortgage Loan Trust, Series 2006-1, Class A-5, 5.75% 20352,3		7,392			7,488
American General Mortgage Loan Trust, Series 2010-1A, Class A-1, 5.15% 20582,3		18,099			18,128
Countrywide Alternative Loan Trust, Series 2004-14T2, Class A-2, 5.50% 2034		10,446			9,760
Countrywide Alternative Loan Trust, Series 2005-J11, Class 1-A-16, 5.50% 2035		4,618			2,244
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 5-A-1, 5.75% 2035		2,126			2,091
Countrywide Alternative Loan Trust, Series 2004-36CB, Class 1-A-1, 6.00% 2035		7,372			7,270
Countrywide Alternative Loan Trust, Series 2005-9CB, Class 2-A-1, 6.00% 2035		5,335			4,178
Bear Stearns ARM Trust, Series 2004-3, Class II-A, 2.692% 20342		6,851			6,017
Bear Stearns ARM Trust, Series 2005-6, Class I-A-1, 3.49% 20352		25,139			17,575
IndyMac IMSC Mortgage Loan Trust, Series 2007-F2, Class 2-A-1, 6.50% 2037		35,973			19,842
J.P. Morgan Alternative Loan Trust, Series 2006-A1, Class 2-A-1, 5.734% 20362		15,352			10,370
J.P. Morgan Alternative Loan Trust, Series 2006-A2, Class 5-A-1, 6.149% 20362		11,363			7,276
Thornburg Mortgage Securities Trust, Series 2006-5, Class A-1, 0.467% 20462		16,596			16,198
GSR Mortgage Loan Trust, Series 2005-AR1, Class 2-A-1, 3.365% 20352		7,346			6,440
GSR Mortgage Loan Trust, Series 2006-2F, Class 3A-4, 6.00% 2036		11,543			9,189
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032		310			304
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032		37			38
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033		2,239			2,293
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033		39			40
CS First Boston Mortgage Securities Corp., Series 2004-5, Class IV-A-1, 6.00% 2034		6,016			5,919
CS First Boston Mortgage Securities Corp., Series 2005-5, Class IV-A-1, 6.25% 2035		4,540			3,968
CS First Boston Mortgage Securities Corp., Series 2007-1, Class 1-A-6A, 5.863% 20372		4,879			2,839
Banc of America Funding Trust, Series 2005-H, Class 9-A-1, 5.793% 20352		21,507			15,106
Wells Fargo Alternative Loan Trust, Series 2007-PA4, Class III-A-1, 5.935% 20372		21,763			13,064
Bear Stearns ALT-A Trust, Series 2006-2, Class II-4-A-1, 5.74% 20362		20,275			12,022
IndyMac INDX Mortgage Loan Trust, Series 2006-AR25, Class 3-A-1, 5.664% 20362		17,691			10,360
Residential Asset Securitization Trust, Series 2005-A8CB, Class A-11, 6.00% 2035		12,629			10,162
CHL Mortgage Pass-Through Trust, Series 2004-HYB6, Class A-3, 3.479% 20342		2,247			1,798
CHL Mortgage Pass-Through Trust, Series 2007-HY5, Class 1-A-1, 5.811% 20472		7,044			5,343
CHL Mortgage Pass-Through Trust, Series 2007-HY4, Class 1-A-1, 5.92% 20472		2,063			1,576
TBW Mortgage-backed Trust, Series 2007-2, Class A-4-B, 0.767% 20372		21,524			8,322
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 4-A, 5.659% 20342		4,692			4,883
Morgan Stanley Mortgage Loan Trust, Series 2005-6AR, Class 3-A-1, 4.795% 20352		4,389			3,005
MASTR Alternative Loan Trust, Series 2005-3, Class 1-A-1, 5.50% 2035		3,051			2,866
MASTR Alternative Loan Trust, Series 2005-3, Class 2-A-1, 6.00% 2035		3,389			3,098
Structured Asset Securities Corp., Series 1998-RF2, Class A, 8.486% 20272,3		3,225			3,254
Structured Asset Securities Corp., Series 1998-RF1, Class A, 10.174% 20272,3		1,415			1,436
Structured Asset Securities Corp., Series 1999-RF1, Class A, 7.545% 20282,3		897			881
Citigroup Mortgage Loan Trust, Inc., Series 2007-AR5, Class 1-A2A, 5.502% 20372		5,774			4,061
Banc of America Mortgage Securities Inc., Series 2003-I, Class 3-A1, 4.518% 20332		3,576			3,558
J.P. Morgan Mortgage Trust, Series 2006-A3, Class 3-A-3, 5.739% 20362		4,000			3,120
Washington Mutual Mortgage, WMALT Series 2007-2, Class 3-A-1, 5.50% 2022		2,763			2,464
Harborview Mortgage Loan Trust, Series 2006-6, Class 1A, 3.211% 20362		2,588			1,631
					372,806
OTHER MORTGAGE-BACKED SECURITIES4 — 0.65%
Nykredit 4.00% 2035	DKr283,290				46,347
Nykredit, Series 3D, 5.00% 2038		157,801			26,884
Bank of America 5.50% 20123	$	35,000			37,456
Nationwide Building Society, Series 2007-2, 5.50% 20123		35,000			37,359
Northern Rock PLC 5.625% 20173		20,000			20,670
HBOS Treasury Services PLC 5.25% 20173		11,000			11,559
HBOS Treasury Services PLC 5.25% 2017		7,000			7,356
Royal Bank of Canada 3.125% 20153		18,160			18,715
Barclays Bank PLC 4.00% 2019	€	14,150			17,757
Bank of Montreal 2.85% 20153	$	17,000			17,298
Compagnie de Financement Foncier 2.125% 20133		16,700			16,873
					258,274
Total mortgage-backed obligations					10,947,057
CORPORATE BONDS & NOTES — 27.68%
FINANCIALS — 8.03%
Banks — 2.60%
Abbey National Treasury Services PLC 3.875% 20143		39,880			39,415
Santander Issuances, SA Unipersonal 5.911% 20163		7,500			7,534
Sovereign Bancorp, Inc. 8.75% 2018		70,355			79,178
Santander Issuances, SA Unipersonal 6.50% 20192,3		29,500			30,168
HBOS PLC 6.75% 20183		123,633			115,892
HBOS PLC 4.375% 20192	€	2,870			3,061
Lloyds TSB Bank PLC 5.80% 20203	$	23,560			22,278
HBOS PLC 6.00% 20333		6,875			5,039
Bayerische Hypo- und Vereinsbank AG 6.00% 2014	€	2,155			2,788
UniCredito Italiano SpA 5.584% 20172,3	$	29,650			29,391
UniCredito Italiano SpA 6.00% 20173		73,948			73,910
HVB Funding Trust I 8.741% 20313		8,829			8,079
Barclays Bank PLC 6.05% 20173		48,952			49,478
Barclays Bank PLC 5.125% 2020		24,830			24,745
Société Générale 5.75% 20163		58,060			60,428
Royal Bank of Scotland Group PLC 5.00% 2014		6,665			6,259
Royal Bank of Scotland PLC 4.875% 2015		25,500			25,398
Royal Bank of Scotland Group PLC 5.05% 2015		10,370			9,695
Royal Bank of Scotland Group PLC 4.70% 2018		3,485			2,823
Royal Bank of Scotland PLC 6.934% 2018	€	12,590			15,237
Allied Irish Banks, PLC 12.50% 2019		43,274			53,469
Standard Chartered PLC 3.85% 20153	$	2,500			2,525
Standard Chartered Bank 6.40% 20173		43,081			46,484
CIT Group Inc., Series A, 7.00% 2013		11,494			11,063
CIT Group Inc., Series A, 7.00% 2014		5,853			5,546
CIT Group Inc., Series A, 7.00% 2015		22,884			21,225
CIT Group Inc., Series A, 7.00% 2016		6,000			5,505
Wells Fargo & Co. 3.625% 2015		28,250			28,897
Wells Fargo & Co. 5.625% 2017		8,500			9,306
Korea Development Bank 5.30% 2013		13,635			14,380
Korea Development Bank 8.00% 2014		15,365			17,531
Union Bank of California, NA 5.95% 2016		28,831			30,957
PNC Funding Corp. 5.40% 2014		10,000			10,962
PNC Bank NA 6.875% 2018		5,200			5,884
PNC Funding Corp. 5.125% 2020		11,040			11,501
Paribas, New York Branch 6.95% 2013		7,090			7,718
BNP Paribas 3.25% 2015		10,770			10,670
BNP Paribas 4.80% 20153		6,250			6,358
BNP Paribas 5.125% 20153		2,687			2,789
SunTrust Banks, Inc. 6.00% 2017		20,000			20,374
HSBC Finance Corp. 0.887% 20122		15,000			14,553
HSBC Bank PLC 3.50% 20153		5,000			5,054
Silicon Valley Bank 5.70% 2012		18,000			18,810
Westpac Banking Corp. 4.875% 2019		10,500			10,864
Bank of Ireland 10.00% 2020	€	8,165			10,184
BBVA Bancomer SA 7.25% 20203	$	9,875			9,767
Banco Santander-Chile 5.375% 20143		9,335			9,745
Zions Bancorporation 6.00% 2015		8,442			7,662
Nordea Bank, Series 2, 3.70% 20143		3,000			3,059
Bergen Bank 0.563% (undated)2		5,000			2,995
Development Bank of Singapore Ltd. 7.125% 20113		400			418
Norinchukin Finance (Cayman) Ltd. 5.625% 20162	£	205			311
					1,027,362
Real estate — 2.08%
PLD International Finance LLC 4.375% 2011	€	7,700			9,557
ProLogis 7.625% 2014	$	22,750			24,165
ProLogis 5.625% 2015		13,035			12,515
ProLogis 5.625% 2016		15,130			14,242
ProLogis 5.75% 2016		27,620			26,321
ProLogis 6.625% 2018		53,205			50,769
ProLogis 7.375% 2019		27,860			27,330
ProLogis 6.875% 2020		12,150			11,504
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 4.375% 20103		32,950			33,311
Westfield Group 5.40% 20123		18,400			19,513
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143		16,250			17,027
Westfield Group 7.50% 20143		12,500			14,178
Westfield Group 5.75% 20153		32,000			34,630
Westfield Group 5.70% 20163		14,195			15,135
Westfield Group 7.125% 20183		23,135			26,143
Kimco Realty Corp., Series C, 4.82% 2011		7,500			7,619
Kimco Realty Corp. 6.00% 2012		12,250			13,233
Pan Pacific Retail Properties, Inc. 6.125% 2013		1,605			1,719
Kimco Realty Corp., Series C, 4.82% 2014		19,200			20,039
Kimco Realty Corp., Series C, 4.904% 2015		10,765			11,261
Kimco Realty Corp., Series C, 5.783% 2016		19,500			20,898
Kimco Realty Corp. 5.70% 2017		28,450			29,793
Kimco Realty Corp. 6.875% 2019		4,000			4,464
Hospitality Properties Trust 6.75% 2013		14,745			15,650
Hospitality Properties Trust 7.875% 2014		950			1,048
Hospitality Properties Trust 5.125% 2015		6,665			6,663
Hospitality Properties Trust 6.30% 2016		26,868			27,819
Hospitality Properties Trust 5.625% 2017		2,055			1,970
Hospitality Properties Trust 6.70% 2018		35,040			35,666
Simon Property Group, LP 6.75% 2014		11,265			12,672
Simon Property Group, LP 4.20% 2015		4,160			4,279
Simon Property Group, LP 5.25% 2016		7,595			8,099
Simon Property Group, LP 6.10% 2016		5,765			6,407
Simon Property Group, LP 5.875% 2017		16,000			17,323
Simon Property Group, LP 6.125% 2018		24,075			26,615
Simon Property Group, LP 10.35% 2019		8,995			11,991
Rouse Co. 7.20% 20126		17,475			19,834
Rouse Co. 5.375% 20136		7,250			7,794
Rouse Co. 6.75% 20133,6		3,750			4,144
Rouse Co. 3.625% 20096		5,200			5,460
ERP Operating LP 5.25% 2014		9,000			9,638
ERP Operating LP 6.584% 2015		13,040			14,803
ERP Operating LP 5.75% 2017		1,530			1,651
ERP Operating LP 7.125% 2017		5,000			5,718
Brandywine Operating Partnership, LP 5.75% 2012		27,110			28,020
Brandywine Operating Partnership, LP 5.40% 2014		3,000			3,071
Developers Diversified Realty Corp. 5.375% 2012		4,635			4,580
Developers Diversified Realty Corp. 5.50% 2015		11,643			10,923
Developers Diversified Realty Corp. 9.625% 2016		4,820			5,235
Developers Diversified Realty Corp. 7.50% 2017		7,655			7,522
Realogy Corp., Letter of Credit, 3.231% 20132,4,7		2,924			2,476
Realogy Corp., Term Loan B, 3.292% 20132,4,7		10,827			9,169
Realogy Corp., Term Loan DD, 3.292% 20132,4,7		10,680			9,045
Realogy Corp., Second Lien Term Loan A, 13.50% 20174,7		4,025			4,254
Boston Properties, Inc. 5.875% 2019		17,250			18,488
UDR, Inc., Series A, 5.25% 2015		13,030			13,332
Host Marriott, LP, Series K, 7.125% 2013		925			937
Host Hotels & Resorts, LP, Series S, 6.875% 2014		300			301
Host Hotels & Resorts, LP, Series Q, 6.75% 2016		4,075			4,050
Host Hotels & Resorts LP 9.00% 2017		1,800			1,935
Weingarten Realty Investors, Series A, 4.857% 2014		6,080			6,219
					820,167
Diversified financials — 1.65%
Countrywide Financial Corp. 6.25% 2010	$	A7,700			6,480
Countrywide Financial Corp., Series B, 5.80% 2012	$	18,000			18,936
Bank of America Corp. 4.50% 2015		3,715			3,759
Bank of America Corp. 0.56% 20162		4,000			3,552
Bank of America Corp. 0.817% 20162		1,500			1,315
Bank of America Corp. 5.75% 2017		8,500			8,828
Bank of America Corp. 5.625% 2020		94,130			95,058
JPMorgan Chase & Co. 3.40% 2015		22,955			23,033
JPMorgan Chase & Co. 4.891% 20152		30,620			31,079
JPMorgan Chase Bank NA 6.00% 2017		15,000			16,359
JPMorgan Chase & Co. 6.00% 2018		7,000			7,741
JPMorgan Chase & Co. 4.95% 2020		11,500			11,974
Morgan Stanley, Series F, 6.00% 2015		26,360			27,577
Morgan Stanley, Series F, 5.625% 2019		52,125			50,516
UBS AG 3.875% 2015		20,500			20,419
UBS AG 5.875% 2017		42,520			45,074
Citigroup Inc. 4.75% 2015		27,090			27,105
Citigroup Inc. 6.01% 2015		4,940			5,187
Citigroup Inc. 6.125% 2017		27,000			28,238
Citigroup Inc. 6.875% 2038		1,175			1,237
SLM Corp., Series A, 4.50% 2010		38,000			38,080
SLM Corp., Series A, 0.546% 20112		8,700			8,242
SLM Corp., Series A, 5.40% 2011		5,000			4,972
SLM Corp., Series A, 5.375% 2013		3,000			2,911
Goldman Sachs Group, Inc. 6.15% 2018		18,925			19,855
Goldman Sachs Group, Inc. 5.375% 2020		28,960			28,669
Goldman Sachs Group, Inc. 6.125% 2033		3,085			3,029
Capital One Financial Corp. 5.50% 2015		12,223			13,131
Capital One Financial Corp. 6.15% 2016		10,000			10,595
Capital One Capital III 7.686% 20362		1,500			1,414
Capital One Capital IV 6.745% 20372		10,000			8,450
Lazard Group LLC 7.125% 2015		21,700			22,878
International Lease Finance Corp., Series Q, 5.45% 2011		2,000			1,981
International Lease Finance Corp., Series Q, 5.75% 2011		370			365
International Lease Finance Corp. 5.00% 2012		13,500			12,538
Northern Trust Corp. 5.50% 2013		1,000			1,113
Northern Trust Corp. 4.625% 2014		8,475			9,272
Northern Trust Corp. 5.85% 20173		3,750			4,222
Charles Schwab Corp., Series A, 6.375% 2017		4,000			4,563
Schwab Capital Trust I 7.50% 20372		3,755			3,733
Lehman Brothers Holdings Inc., Series G, 4.80% 20146		10,000			2,025
Lehman Brothers Holdings Inc., Series I, 6.875% 20186		15,000			3,131
Export-Import Bank of Korea 5.875% 2015		4,400			4,777
ING Bank NV 5.50% 2012	€	3,750			4,713
American Express Co. 6.15% 2017	$	1,650			1,811
					649,937
Insurance — 1.63%
Liberty Mutual Group Inc. 5.75% 20143		10,435			10,859
Liberty Mutual Group Inc. 6.70% 20163		11,250			12,139
Liberty Mutual Group Inc. 6.50% 20353		43,810			39,203
Liberty Mutual Group Inc. 7.50% 20363		33,110			32,788
Liberty Mutual Group Inc., Series A, 7.80% 20872,3		11,410			9,470
Liberty Mutual Group Inc., Series C, 10.75% 20882,3		8,205			8,944
PRICOA Global Funding I 5.30% 20133		2,500			2,734
Prudential Holdings, LLC, Series C, 8.695% 20233,4		56,185			67,247
Prudential Financial, Inc. 8.875% 20682		4,465			4,834
CNA Financial Corp. 5.85% 2014		11,500			11,926
CNA Financial Corp. 6.50% 2016		24,875			26,095
CNA Financial Corp. 7.35% 2019		4,270			4,545
CNA Financial Corp. 7.25% 2023		24,145			24,453
Monumental Global Funding 5.50% 20133		16,370			17,521
Monumental Global Funding III 5.25% 20143		21,500			23,423
AEGON NV 6.125% 2031	£	1,730			2,481
ACE INA Holdings Inc. 5.875% 2014	$	17,445			19,316
ACE INA Holdings Inc. 5.70% 2017		3,500			3,838
ACE INA Holdings Inc. 5.80% 2018		1,000			1,096
ACE Capital Trust II 9.70% 2030		12,423			15,064
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013		17,500			19,201
Allstate Corp., Series B, 6.125% 20672		16,990			15,057
AXA SA 8.60% 2030		2,315			2,621
AXA SA 6.463% (undated)2,3		40,000			31,550
Metropolitan Life Global Funding I, 5.125% 20133		18,310			19,816
MetLife Capital Trust IV 7.875% 20672,3		6,740			6,504
MetLife Capital Trust X 9.25% 20682,3		300			326
New York Life Global Funding 5.25% 20123		15,300			16,588
New York Life Global Funding 4.65% 20133		9,370			10,057
Nationwide Financial Services, Inc. 6.75% 20672		27,765			20,942
Principal Life Insurance Co. 5.30% 2013		18,150			19,639
Assurant, Inc. 5.625% 2014		16,000			16,920
Principal Life Global Funding I 4.40% 20103		16,600			16,688
Nationwide Mutual Insurance Co. 5.81% 20242,3		14,070			11,974
Lincoln National Corp. 5.65% 2012		11,250			11,905
Jackson National Life Global 5.375% 20133		10,000			10,750
UnumProvident Finance Co. PLC 6.85% 20153		2,839			3,019
Unum Group 7.125% 2016		7,000			7,701
ZFS Finance (USA) Trust II 6.45% 20652,3		6,500			5,883
ZFS Finance (USA) Trust V 6.50% 20672,3		5,040			4,561
RSA Insurance Group PLC 9.375% 20392	£	3,765			6,679
RSA Insurance Group PLC 8.50% (undated)2		2,429			3,676
Genworth Global Funding Trust, Series 2007-C, 5.25% 2012	$	10,000			10,294
United Energy Distribution Pty Ltd., AMBAC insured, 4.70% 20113		10,000			10,266
Loews Corp. 6.00% 2035		8,225			8,034
Berkshire Hathaway Inc. 3.20% 2015		5,000			5,155
Munich Re Finance BV 6.75% 20232	€	3,550			4,623
TIAA Global Markets 4.95% 20133	$	3,000			3,269
Chubb Corp. 6.375% 20672		1,000			970
					642,644
Automobiles & components — 0.07%
American Honda Finance Corp. 5.125% 20103		21,850			22,243
Ford Motor Credit Co. 7.25% 2011		2,000			2,055
Ford Motor Credit Co. 7.375% 2011		300			306
Ford Motor Credit Co. 3.048% 20122		825			802
Ford Motor Credit Co. 8.70% 2014		2,275			2,373
					27,779
CONSUMER DISCRETIONARY — 3.54%
Media — 2.28%
Comcast Corp. 5.50% 2011		10,301			10,612
Comcast Cable Communications, Inc. 6.75% 2011		520			536
Tele-Communications, Inc. 9.80% 2012		17,500			19,585
Comcast Corp. 5.30% 2014		4,000			4,394
Comcast Corp. 5.85% 2015		20,875			23,622
Comcast Corp. 6.50% 2015		4,000			4,596
Comcast Corp. 5.90% 2016		1,400			1,580
Comcast Corp. 6.30% 2017		13,410			15,333
Comcast Corp. 5.875% 2018		45,975			51,235
Comcast Corp. 6.45% 2037		8,500			9,221
Comcast Corp. 6.95% 2037		15,520			17,712
Comcast Corp. 6.40% 2040		14,800			15,984
Time Warner Inc. 5.50% 2011		5,185			5,467
AOL Time Warner Inc. 6.875% 2012		10,000			10,899
Time Warner Inc. 5.875% 2016		30,670			34,621
Time Warner Companies, Inc. 7.25% 2017		1,600			1,910
Time Warner Inc. 4.875% 2020		16,250			16,790
Time Warner Companies, Inc. 7.57% 2024		12,340			14,988
AOL Time Warner Inc. 7.625% 2031		23,435			28,271
Time Warner Inc. 6.50% 2036		20,660			22,543
Time Warner Inc. 6.20% 2040		6,750			7,144
Time Warner Cable Inc. 6.20% 2013		12,700			14,214
Time Warner Cable Inc. 7.50% 2014		15,675			18,228
Time Warner Cable Inc. 8.25% 2014		15,750			18,632
Time Warner Cable Inc. 6.75% 2018		48,140			55,346
Time Warner Cable Inc. 8.25% 2019		7,215			8,887
News America Holdings Inc. 8.00% 2016		1,000			1,233
News America Holdings Inc. 8.25% 2018		2,000			2,512
News America Inc. 6.90% 2019		32,750			38,859
News America Inc. 6.15% 2037		300			314
News America Inc. 6.65% 2037		38,900			43,803
News America Inc. 6.90% 2039		1,050			1,209
Thomson Reuters Corp. 6.50% 2018		47,225			55,873
NBC Universal, Inc. 3.65% 20153		15,250			15,612
NBC Universal, Inc. 5.15% 20203		18,750			19,594
NBC Universal, Inc. 6.40% 20403		8,000			8,575
Univision Communications, Inc., First Lien Term Loan B, 2.25% 20142,4,7		23,193			19,398
Univision Communications Inc. 12.00% 20143		4,555			4,908
Univision Communications Inc. 10.50% 20152,3,8		22,729			19,036
Cox Communications, Inc. 7.125% 2012		7,000			7,782
Cox Communications, Inc. 5.45% 2014		17,045			18,833
Cox Communications, Inc. 9.375% 20193		7,225			9,590
Virgin Media Finance PLC, Series 1, 9.50% 2016		20,750			22,021
Virgin Media Inc. 6.50% 20183		2,750			2,716
Virgin Media Finance PLC 8.375% 20193		10,875			11,065
Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015		13,520			12,979
Mediacom LLC and Mediacom Capital Corp. 9.125% 2019		8,325			8,075
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20143		8,225			9,171
Charter Communications, Inc. 13.50% 2016		7,334			8,581
American Media Operations, Inc. 9.00% 20133,8		1,254			809
American Media Operations, Inc. 14.00% 20132,3,8		18,498			11,931
TL Acquisitions, Inc., Term Loan B, 3.03% 20142,4,7		6,615			5,723
Thomson Learning 10.50% 20153		7,275			6,802
Quebecor Media Inc. 7.75% 2016		5,670			5,585
Quebecor Media Inc. 7.75% 2016		4,900			4,826
Warner Music Group 7.375% 2014		2,100			2,011
Warner Music Group 9.50% 2016		7,175			7,677
UPC Holding BV 9.875% 20183		9,450			9,545
Grupo Televisa, SAB 6.625% 2040		8,700			9,108
Clear Channel Worldwide, Series B, 9.25% 20173		8,900			8,989
Regal Cinemas Corp., Series B, 9.375% 2012		6,125			6,156
Regal Cinemas Corp. 8.625% 2019		2,000			2,020
AMC Entertainment Inc. 8.75% 2019		7,775			7,853
Radio One, Inc. 6.375% 2013		7,380			6,310
Ziggo Bond Co. BV 8.00% 2018	€	4,000			4,740
Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014	$	4,300			4,348
Allbritton Communications Co. 8.00% 20183		4,000			3,980
UPC Germany GmbH 8.125% 20173		1,100			1,083
UPC Germany GmbH 9.625% 2019	€	2,250			2,806
Local T.V. Finance LLC, Term Loan B, 2.35% 20132,4,7	$	368			325
Local T.V. Finance LLC 10.00% 20152,3,8		3,907			3,262
Gray Television Inc. 10.50% 20153		3,355			3,271
Cinemark USA, Inc., Term Loan, 3.56% 20162,4,7		409			398
Cinemark USA, Inc. 8.625% 2019		2,000			2,020
Walt Disney Co. 5.625% 2016		2,000			2,333
CSC Holdings, Inc. 8.50% 20153		400			417
					898,417
Retailing — 0.64%
Staples, Inc. 7.75% 2011		14,150			14,791
Staples, Inc. 9.75% 2014		28,470			34,950
Nordstrom, Inc. 6.75% 2014		35,860			41,708
Michaels Stores, Inc., Term Loan B1, 2.813% 20132,4,7		2,066			1,920
Michaels Stores, Inc. 10.00% 2014		20,775			21,554
Michaels Stores, Inc. 0%/13.00% 20169		5,435			4,864
Michaels Stores, Inc. 0%/13.00% 20163,9		1,800			1,611
Michaels Stores, Inc., Term Loan B2, 5.063% 20162,4,7		700			667
Macy’s Retail Holdings, Inc. 8.375% 20152		21,770			24,110
Federated Retail Holdings, Inc. 5.90% 2016		2,375			2,393
Neiman Marcus Group, Inc. 9.00% 20152,8		14,867			14,979
Neiman Marcus Group, Inc. 10.375% 2015		4,325			4,422
Toys "R" Us-Delaware, Inc., Term Loan B, 4.597% 20122,4,7		5,483			5,427
Toys "R" Us, Inc. 8.50% 20173		6,275			6,463
Toys "R" Us, Inc. 10.75% 20173		650			713
Bon-Ton Department Stores, Inc. 10.25% 2014		12,050			11,899
Marks and Spencer Group PLC 6.25% 20173		8,500			9,087
Marks and Spencer Group PLC 7.125% 20373		850			894
Kohl’s Corp. 6.25% 2017		2,000			2,333
Kohl’s Corp. 6.00% 2033		3,878			4,161
Kohl’s Corp. 6.875% 2037		2,787			3,379
Burlington Coat Factory Warehouse Corp. 11.125% 2014		9,160			9,527
Sally Holdings LLC and Sally Capital Inc. 9.25% 2014		6,550			6,828
Sally Holdings LLC and Sally Capital Inc. 10.50% 2016		1,050			1,129
Dollar General Corp., Term Loan B2, 3.10% 20142,4,7		854			813
Dollar General Corp. 10.625% 2015		3,042			3,342
Dollar General Corp. 11.875% 20172,8		3,244			3,702
Home Depot, Inc. 5.875% 2036		6,000			6,172
Edcon (Proprietary) Ltd. 3.969% 20142	€	6,500			5,683
Edcon (Proprietary) Ltd. 3.969% 20142		500			437
Lowe’s Companies, Inc. 5.80% 2040	$	1,790			1,988
					251,946
Consumer services — 0.29%
MGM MIRAGE 6.75% 2012		1,050			982
MGM MIRAGE 6.75% 2013		1,850			1,660
MGM MIRAGE 13.00% 2013		5,150			5,961
MGM MIRAGE 5.875% 2014		6,575			5,244
MGM MIRAGE 10.375% 2014		3,025			3,305
MGM MIRAGE 6.625% 2015		3,600			2,853
MGM MIRAGE 11.125% 2017		4,375			4,845
MGM MIRAGE 9.00% 20203		2,900			2,994
Boyd Gaming Corp. 7.75% 2012		2,550			2,537
Boyd Gaming Corp. 6.75% 2014		8,925			7,854
Boyd Gaming Corp. 7.125% 2016		9,000			7,448
Seminole Tribe of Florida 5.798% 20133,4		8,295			8,260
Seminole Tribe of Florida 7.804% 20203,4		8,870			8,133
Marriott International, Inc., Series I, 6.375% 2017		12,750			13,417
Mohegan Tribal Gaming Authority 8.00% 2012		6,375			5,594
Mohegan Tribal Gaming Authority 7.125% 2014		6,750			4,911
Mohegan Tribal Gaming Authority 6.875% 2015		1,800			1,287
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012		7,525			6,998
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014		5,625			5,667
Royal Caribbean Cruises Ltd. 11.875% 2015		4,425			5,111
Education Management LLC and Education Management Finance Corp. 8.75% 2014		4,800			4,812
Seneca Gaming Corp. 7.25% 2012		3,025			2,972
Seneca Gaming Corp., Series B, 7.25% 2012		1,175			1,154
NCL Corporation Ltd. 11.75% 2016		2,650			2,783
					116,782
Automobiles & components — 0.23%
DaimlerChrysler North America Holding Corp., Series E, 5.75% 2011		7,505			7,818
DaimlerChrysler North America Holding Corp. 5.875% 2011		9,400			9,687
DaimlerChrysler North America Holding Corp. 7.75% 2011		14,930			15,427
DaimlerChrysler North America Holding Corp. 6.50% 2013		18,775			21,030
DaimlerChrysler North America Holding Corp. 8.50% 2031		6,750			8,646
Allison Transmission Holdings, Inc., Term Loan B, 3.11% 20142,4,7		5,606			5,122
Allison Transmission Holdings, Inc. 11.00% 20153		4,160			4,378
Allison Transmission Holdings, Inc. 11.25% 20152,3,8		12,402			13,115
Tenneco Automotive Inc. 8.625% 2014		3,025			3,067
FCE Bank PLC 7.125% 2013	€	2,000			2,470
					90,760
Consumer durables & apparel — 0.10%
Fortune Brands, Inc. 6.375% 2014	$	20,000			22,282
Hanesbrands Inc., Series B, 4.121% 20142		11,105			10,564
Hanesbrands Inc. 8.00% 2016		3,100			3,158
Jarden Corp. 8.00% 2016		3,020			3,118
Sealy Mattress Co. 10.875% 20163		485			538
					39,660
INDUSTRIALS — 2.83%
Transportation — 1.40%
Continental Airlines, Inc. 8.75% 2011		300			303
Continental Airlines, Inc., Series 2001-1, Class A-2, 6.503% 20124		14,435			14,489
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20124		12,500			12,492
Continental Airlines, Inc., Series 2006-1, Class G, FGIC insured, 0.886% 20152,4		1,044			904
Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20164		23,487			23,480
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20174		153			146
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20184		1,109			1,034
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20184		192			180
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20194		15,774			15,745
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20194		34,980			35,155
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20194		749			732
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20204		14,061			14,255
Continental Airlines, Inc., Series 1999-1, Class B, 6.795% 20204		10,355			9,604
Continental Airlines, Inc., Series 1999-2, Class A-1, 7.256% 20214		277			281
Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20214		3,163			3,076
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20224		12,906			13,068
Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20224		10,111			9,479
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20224		12,695			12,846
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20224		11,011			11,307
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20224		1,031			1,003
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20124		400			405
Northwest Airlines, Inc., Term Loan B, 4.04% 20132,4,7		2,294			2,030
Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111% 20134		11,000			11,426
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 20144		8,040			8,100
Northwest Airlines, Inc., Term Loan A, 2.29% 20182,4,7		62,176			53,005
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20244		4,484			4,204
AMR Corp., Series B, 10.45% 2011		150			148
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20124		3,750			3,788
American Airlines, Inc., Series 2001-2, Class A-1, 6.978% 20124		5,405			5,412
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20124		18,165			17,961
AMR Corp. 9.00% 2012		1,300			1,164
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20134		38,010			38,818
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20194		500			412
Burlington Northern Santa Fe Corp. 4.30% 2013		2,640			2,809
Burlington Northern Santa Fe Corp. 7.00% 2014		5,125			5,978
Burlington Northern Santa Fe Corp. 5.65% 2017		12,500			13,992
Burlington Northern Santa Fe Corp. 5.75% 2018		10,035			11,288
Burlington Northern Santa Fe Corp. 4.70% 2019		9,800			10,399
Burlington Northern Santa Fe Corp. 6.15% 2037		4,500			5,082
BNSF Funding Trust I 6.613% 20552		13,530			12,919
Union Pacific Corp. 5.125% 2014		8,430			9,250
Union Pacific Corp. 5.75% 2017		22,965			25,968
Union Pacific Corp. 5.70% 2018		4,000			4,488
Union Pacific Railroad Co. Pass Through Trust, Series 2001-1, 6.63% 20224		6,703			7,716
Union Pacific Corp. 6.15% 2037		10,930			12,285
CSX Corp. 5.75% 2013		8,385			9,170
CSX Corp. 6.25% 2018		10,000			11,500
CSX Corp. 7.375% 2019		15,000			18,403
Norfolk Southern Corp. 6.75% 2011		991			1,021
Norfolk Southern Corp. 5.75% 2016		6,740			7,656
Norfolk Southern Corp. 5.75% 2018		7,625			8,633
Norfolk Southern Corp. 5.90% 2019		11,250			12,957
Norfolk Southern Corp. 7.05% 2037		3,400			4,213
United Air Lines, Inc., Term Loan B, 2.375% 20142,4,7		8,298			7,194
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20213,4		868			736
United Air Lines, Inc., Series 2007-1, Class A, 6.636% 20244		6,903			6,402
Kansas City Southern Railway Co. 13.00% 2013		2,190			2,642
Kansas City Southern Railway Co. 8.00% 2015		4,250			4,399
CEVA Group PLC, Bridge Loan, 9.10% 20152,4,5,7		1,500			1,260
CEVA Group PLC 11.625% 20163		890			923
CEVA Group PLC 11.50% 20183		1,650			1,683
RailAmerica, Inc. 9.25% 2017		3,200			3,368
Canadian National Railway Co. 6.375% 2037		1,000			1,219
					552,005
Capital goods — 1.29%
BAE Systems Holdings Inc. 4.75% 20103,4		10,350			10,390
BAE Systems 2001 Asset Trust, Series 2001, Class B, 7.156% 20113,4		18,767			19,613
BAE Systems 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 20133,4		26,362			28,241
BAE Systems Holdings Inc. 4.95% 20143		16,250			17,645
BAE Systems Holdings Inc. 6.375% 20193		200			228
Volvo Treasury AB 5.95% 20153		65,813			68,866
Volvo Treasury AB 5.00% 2017	€	3,115			3,903
Northrop Grumman Systems Corp. 7.125% 2011	$	8,000			8,288
Northrop Grumman Corp. 3.70% 2014		9,500			9,973
Northrop Grumman Corp. 7.75% 2016		13,420			16,749
Northrop Grumman Corp. 5.05% 2019		18,680			20,566
Northrop Grumman Systems Corp. 7.75% 2031		3,000			4,035
Lockheed Martin Corp. 4.121% 2013		6,000			6,429
Lockheed Martin Corp. 4.25% 2019		34,900			36,762
Lockheed Martin Corp., Series B, 6.15% 2036		6,000			6,966
Hutchison Whampoa International Ltd. 7.00% 20113		24,300			25,099
Hutchison Whampoa International Ltd. 6.50% 20133		7,200			7,888
Raytheon Co. 6.40% 2018		9,500			11,414
Raytheon Co. 6.75% 2018		4,030			4,811
Raytheon Co. 4.40% 2020		10,970			11,792
Koninklijke Philips Electronics NV 5.75% 2018		20,000			22,650
United Technologies Corp. 4.50% 2020		14,430			15,643
United Technologies Corp. 5.70% 2040		5,000			5,603
Ashtead Group PLC 8.625% 20153		4,675			4,652
Ashtead Capital, Inc. 9.00% 20163		14,125			13,913
US Investigations Services, Inc., Term Loan B, 3.539% 20152,4,7		3,647			3,154
US Investigations Services, Inc. 10.50% 20153		9,200			8,786
US Investigations Services, Inc. 11.75% 20163		6,580			6,004
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 4.09% 20142,4,7		302			272
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 4.09% 20142,4,7		293			264
DAE Aviation Holdings, Inc. 11.25% 20153		17,285			17,199
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.433% 20142,4,7		320			260
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.533% 20142,4,7		5,432			4,407
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 10.50% 20142,4,7		1,117			1,106
Hawker Beechcraft Acquisition Co., LLC 8.875% 20152,8		11,847			9,418
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017		170			106
DynCorp International and DIV Capital Corp., Series B, 9.50% 2013		13,413			13,832
TransDigm Inc. 7.75% 20143		11,435			11,521
TransDigm Inc. 7.75% 2014		1,325			1,335
General Electric Capital Corp., Series A, 6.00% 2019		10,000			10,845
Honeywell International Inc. 5.00% 2019		8,725			9,768
John Deere Capital Corp. 5.40% 2011		3,500			3,693
John Deere Capital Corp., Series D, 4.50% 2013		3,000			3,234
John Deere Capital Corp. 5.10% 2013		150			163
Atlas Copco AB 5.60% 20173		4,525			4,906
Navistar International Corp. 8.25% 2021		3,000			3,060
AMH Holdings, Inc. 9.875% 2016		2,250			2,424
Esterline Technologies Corp. 6.625% 2017		2,400			2,376
RBS Global, Inc. and Rexnord LLC 8.50% 20183		2,000			1,950
H&E Equipment Services, Inc. 8.375% 2016		1,750			1,654
Esco Corp. 4.412% 20132,3		325			299
Esco Corp. 8.625% 20133		1,100			1,097
Sequa Corp., Term Loan B, 3.55% 20142,4,7		874			793
Oshkosh Corp. 8.50% 2020		750			784
Caterpillar Financial Services Corp., Series F, 5.125% 2011		500			525
Caterpillar Financial Services Corp., Series F, 4.85% 2012		210			227
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014		400			400
					507,981
Commercial & professional services — 0.14%
Nielsen Finance LLC, Term Loan A, 2.35% 20132,4,7		3,378			3,186
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014		2,150			2,209
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 2014		1,650			1,811
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20169		33,275			31,861
Nielsen Finance LLC and Nielsen Finance Co. 11.50% 2016		475			521
ARAMARK Corp., Letter of Credit, 2.223% 20142,4,7		23			21
ARAMARK Corp., Term Loan B, 2.408% 20142,4,7		315			295
ARAMARK Corp. 3.844% 20152		3,450			3,191
ARAMARK Corp. 8.50% 2015		9,450			9,592
ARAMARK Corp., Letter of Credit, 3.448% 20162,4,7		163			158
ARAMARK Corp., Term Loan B, 3.783% 20162,4,7		2,484			2,398
					55,243
UTILITIES — 2.70%
National Rural Utilities Cooperative Finance Corp. 5.50% 2013		46,750			51,724
National Rural Utilities Cooperative Finance Corp. 10.375% 2018		41,425			57,530
Energy East Corp. 6.75% 2012		7,155			7,735
Iberdrola Finance Ireland 3.80% 20143		37,910			37,735
Scottish Power PLC 5.375% 2015		31,415			33,633
Iberdrola Finance Ireland 5.00% 20193		11,500			11,285
Ohio Edison Co. 6.40% 2016		13,750			15,369
Jersey Central Power & Light Co. 5.65% 2017		3,000			3,272
Pennsylvania Electric Co. 6.05% 2017		5,165			5,724
Jersey Central Power & Light Co. 4.80% 2018		11,025			11,113
Cleveland Electric Illuminating Co. 8.875% 2018		24,600			31,476
Toledo Edison Co. 7.25% 2020		10,000			12,138
Toledo Edison Co. 6.15% 2037		3,815			4,099
E.ON International Finance BV 5.80% 20183		70,625			79,800
MidAmerican Energy Holdings Co. 5.875% 2012		15,000			16,249
MidAmerican Energy Co. 5.125% 2013		3,000			3,267
PacifiCorp, First Mortgage Bonds, 5.45% 2013		2,875			3,181
MidAmerican Energy Co. 4.65% 2014		5,000			5,478
MidAmerican Energy Holdings Co., Series D, 5.00% 2014		225			243
MidAmerican Energy Co. 5.95% 2017		3,000			3,449
MidAmerican Energy Co. 5.30% 2018		5,000			5,571
MidAmerican Energy Holdings Co. 5.75% 2018		37,700			42,242
Niagara Mohawk Power 3.553% 20143		15,690			16,114
National Grid PLC 6.30% 2016		37,605			42,505
National Grid Co. PLC 5.875% 2024	£	170			273
Consumers Energy Co., First Mortgage Bonds, Series P, 5.50% 2016	$	2,500			2,770
Consumers Energy Co., First Mortgage Bonds, 5.15% 2017		5,000			5,428
Consumers Energy Co. 5.65% 2018		6,925			7,691
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019		30,575			35,139
Consumers Energy Co., First Mortgage Bonds, 6.70% 2019		2,380			2,852
Veolia Environnement 5.25% 2013		18,235			19,695
Veolia Environnement 6.00% 2018		11,445			12,641
Veolia Environnement 6.125% 2033	€	13,640			19,746
Edison Mission Energy 7.50% 2013	$	3,000			2,595
Edison Mission Energy 7.75% 2016		3,025			2,118
Midwest Generation, LLC, Series B, 8.56% 20164		15,826			15,628
Edison Mission Energy 7.00% 2017		5,875			3,789
Edison Mission Energy 7.20% 2019		14,400			8,928
Homer City Funding LLC 8.734% 20264		13,408			12,402
Edison Mission Energy 7.625% 2027		6,900			3,950
Enel Finance International SA 3.875% 20143		32,990			33,291
Enel Finance International SA 5.125% 20193		1,000			1,006
ENEL SpA 5.625% 2027	€	5,760			7,657
Israel Electric Corp. Ltd. 7.25% 20193	$	24,800			27,458
Israel Electric Corp. 7.25% 2019		4,375			4,844
Israel Electric Corp. Ltd. 8.10% 20963		6,250			6,896
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 4.066% 20142,4,7		30,028			22,307
Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 2015		9,505			6,321
Texas Competitive Electric Holdings Co. LLC, Series A, 10.25% 2015		1,820			1,210
Carolina Power & Light Co. d/b/a Progress Energy Carolinas, Inc., First Mortgage Bonds, 5.125% 2013		5,000			5,511
Progress Energy, Inc. 6.05% 2014		2,100			2,340
Progress Energy, Inc. 7.05% 2019		15,175			17,958
Ohio Power Co., Series H, 4.85% 2014		5,965			6,410
Ohio Power Co., Series K, 6.00% 2016		15,000			17,009
Ohio Power Co., Series G, 6.60% 2033		1,500			1,692
AES Corp. 9.375% 2010		129			130
AES Corp. 8.75% 20133		248			253
AES Corp. 7.75% 2015		11,575			11,778
AES Corp. 8.00% 2017		5,000			5,075
AES Corp. 8.00% 2020		3,350			3,384
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series Q, 5.45% 2013		4,275			4,640
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015		2,550			2,844
Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016		1,000			1,124
Nevada Power Co., General and Refunding Mortgage Notes, Series S, 6.50% 2018		10,025			11,468
Northern States Power Co., First Mortgage Bonds, 5.25% 2018		6,500			7,268
Public Service Co. of Colorado 5.80% 2018		6,300			7,250
Public Service Co. of Colorado 5.125% 2019		4,350			4,824
AmerenEnergy Generating Co., Series D, 8.35% 2010		1,500			1,535
Union Electric Co. 4.65% 2013		3,000			3,212
Ameren Corp. 8.875% 2014		7,000			8,121
Union Electric Co. 5.40% 2016		5,750			6,262
Intergen Power 9.00% 20173		17,450			17,450
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20173		12,000			12,276
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 2017		2,700			2,762
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 20363		2,000			1,938
Electricité de France SA 6.50% 20193		14,250			16,609
PSEG Power LLC 7.75% 2011		10,000			10,497
Public Service Electric and Gas Co., Series E, 5.30% 2018		4,990			5,482
Virginia Electric and Power Co., Series B, 5.95% 2017		10,000			11,526
CenterPoint Energy Houston Electric, LLC, General Mortgage Bonds, Series U, 7.00% 2014		9,900			11,494
Commonwealth Edison Co., First Mortgage Bonds, Series 105, 5.40% 2011		9,000			9,526
Empresa Nacional de Electricidad SA 8.35% 2013		5,000			5,728
Empresa Nacional de Electricidad SA 8.625% 2015		3,000			3,655
NRG Energy, Inc. 7.25% 2014		2,900			2,947
NRG Energy, Inc. 7.375% 2016		5,500			5,486
NRG Energy, Inc. 7.375% 2017		700			695
SP PowerAssets Ltd. 5.00% 20133		8,000			8,636
Old Dominion Electric Cooperative, Series 2003-A, 5.676% 20284		7,125			7,807
PG&E Corp. 5.75% 2014		2,000			2,218
Pacific Gas and Electric Co. 8.25% 2018		4,000			5,126
Kern River Funding Corp. 4.893% 20183,4		7,018			7,294
Colbun SA 6.00% 20203		5,400			5,658
Consolidated Edison Co. of New York 4.45% 2020		5,000			5,310
Korea East-West Power Co., Ltd. 4.875% 20113		5,000			5,070
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20183,4		2,414			2,625
Teco Finance, Inc. 5.15% 2020		1,700			1,775
					1,067,245
ENERGY — 2.68%
Kinder Morgan Energy Partners LP 6.75% 2011		3,500			3,624
Kinder Morgan Energy Partners LP 5.00% 2013		11,571			12,324
Kinder Morgan Energy Partners LP 5.125% 2014		27,552			29,169
Kinder Morgan Energy Partners LP 5.625% 2015		14,100			15,237
Kinder Morgan Energy Partners LP 6.00% 2017		22,375			24,407
Kinder Morgan Energy Partners LP 9.00% 2019		4,395			5,479
Kinder Morgan Energy Partners LP 5.30% 2020		5,000			5,181
Kinder Morgan Energy Partners LP 6.85% 2020		47,435			54,082
Kinder Morgan Energy Partners LP 6.55% 2040		4,000			4,165
Enbridge Energy Partners, LP, Series B, 6.50% 2018		28,120			31,522
Enbridge Energy Partners, LP 9.875% 2019		27,505			36,194
Enbridge Energy Partners, LP, Series B, 7.50% 2038		28,950			34,080
Enbridge Energy Partners, LP 8.05% 20772		12,235			12,063
Gazprom OJSC, Series 13, 6.605% 2018	€	8,200			10,490
Gazprom OJSC 9.25% 2019	$	18,900			21,830
Gazprom OJSC 6.51% 20223		24,495			23,723
Gazprom OJSC, Series 9, 6.51% 2022		3,500			3,390
Gazprom OJSC, Series 2, 8.625% 20343		2,050			2,360
Gazprom OJSC 7.288% 2037		9,050			8,978
Gazprom OJSC 7.288% 20373		4,500			4,464
Shell International Finance BV 1.30% 2011		17,125			17,233
Shell International Finance BV 1.875% 2013		16,500			16,650
Shell International Finance BV 4.00% 2014		21,040			22,273
Shell International Finance BV 3.10% 2015		10,000			10,166
Shell International Finance BV 4.30% 2019		7,875			8,142
TransCanada PipeLines Ltd. 3.40% 2015		14,280			14,829
TransCanada PipeLines Ltd. 6.50% 2018		7,500			8,800
TransCanada PipeLines Ltd. 7.125% 2019		7,540			9,180
TransCanada PipeLines Ltd. 6.10% 2040		5,250			5,670
TransCanada PipeLines Ltd. 6.35% 20672		25,895			23,110
Rockies Express Pipeline LLC 6.25% 20133		8,500			9,052
Rockies Express Pipeline LLC 6.85% 20183		37,800			39,883
Enbridge Inc. 5.80% 2014		9,200			10,270
Enbridge Inc. 4.90% 2015		3,250			3,513
Enbridge Inc. 5.60% 2017		28,980			32,293
Devon Energy Corp. 5.625% 2014		10,250			11,387
Devon Energy Corp. 6.30% 2019		17,925			20,801
Devon Financing Corp. ULC 7.875% 2031		9,600			12,228
Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011		5,725			6,008
Williams Partners L.P. and Williams Partners Finance Corp. 3.80% 20153		10,000			10,075
Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017		1,300			1,478
Williams Partners L.P. and Williams Partners Finance Corp. 5.25% 20203		16,600			17,007
Williams Partners L.P. and Williams Partners Finance Corp. 6.30% 20403		9,250			9,325
Petrobras International 5.75% 2020		24,140			24,431
Petrobras International 6.875% 2040		17,510			17,741
Ras Laffan Liquefied Natural Gas III 5.50% 20143		330			354
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 20144		800			896
Ras Laffan Liquefied Natural Gas III 5.832% 20164		2,000			2,132
Ras Laffan Liquefied Natural Gas III 6.75% 20193		2,500			2,776
Ras Laffan Liquefied Natural Gas II 5.298% 20203,4		21,470			22,309
Ras Laffan Liquefied Natural Gas III 5.838% 20273,4		10,000			10,359
Ras Laffan Liquefied Natural Gas III 6.332% 20274		2,000			2,160
StatoilHydro ASA 2.90% 2014		15,360			15,720
StatoilHydro ASA 3.875% 2014		7,000			7,456
StatoilHydro ASA 5.125% 20143		3,070			3,395
StatoilHydro ASA 5.25% 2019		13,080			14,373
Williams Companies, Inc. 6.375% 20103		1,500			1,513
Transcontinental Gas Pipe Line Corp. 6.40% 2016		5,000			5,690
Williams Companies, Inc. 7.875% 2021		18,851			21,646
Williams Companies, Inc. 8.75% 2032		7,307			8,549
Husky Energy Inc. 6.25% 2012		1,760			1,900
Husky Energy Inc. 6.20% 2017		16,415			18,533
Husky Energy Inc. 7.25% 2019		10,830			13,111
Husky Energy Inc. 6.80% 2037		2,000			2,287
Chevron Corp. 3.95% 2014		3,200			3,433
Chevron Corp. 4.95% 2019		28,830			31,758
Total Capital SA 3.00% 2015		19,250			19,463
Total Capital SA 3.125% 2015		6,850			6,967
Total Capital SA 4.45% 2020		3,500			3,580
Enterprise Products Operating LP 7.50% 2011		5,000			5,151
Enterprise Products Operating LLC 5.65% 2013		17,850			19,376
Enterprise Products Operating LLC 7.00% 20672		1,770			1,562
Pemex Finance Ltd. 8.875% 20104		3,200			3,260
Pemex Finance Ltd., Series 1999-2, Class A-3, 10.61% 20174		11,700			14,266
Pemex Project Funding Master Trust 5.75% 2018		3,150			3,316
Pemex Project Funding Master Trust 6.625% 2035		3,500			3,617
Petroplus Finance Ltd. 6.75% 20143		6,500			5,688
Petroplus Finance Ltd. 7.00% 20173		17,675			14,494
Petroplus Finance Ltd. 9.375% 20193		3,650			3,157
Apache Corp. 6.00% 2013		2,420			2,713
Apache Corp. 5.625% 2017		7,200			8,122
Apache Corp. 6.90% 2018		7,145			8,700
Sunoco, Inc. 9.625% 2015		8,750			10,382
Teekay Corp. 8.50% 2020		6,375			6,375
BP Capital Markets PLC 3.875% 2015		7,000			5,971
Qatar Petroleum 5.579% 20113,4		5,224			5,331
General Maritime Corp. 12.00% 20173		2,650			2,716
PETRONAS Capital Ltd. 7.00% 20123		2,250			2,460
Overseas Shipholding Group, Inc. 8.125% 2018		2,400			2,370
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 20143,4		1,187			1,228
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 20144		1,029			1,065
					1,055,987
TELECOMMUNICATION SERVICES — 2.41%
Olivetti Finance NV 7.25% 2012	€	8,830			11,610
Telecom Italia Capital SA 5.25% 2015	$	72,100			72,850
Telecom Italia Capital SA 6.999% 2018		23,000			24,536
Telecom Italia Capital SA 7.175% 2019		31,500			33,970
Telecom Italia Capital SA 6.375% 2033		2,833			2,544
Telecom Italia SpA 7.75% 2033	€	8,270			11,496
Telecom Italia Capital SA 7.20% 2036	$	2,000			1,945
Telecom Italia Capital SA 7.721% 2038		5,917			6,076
Verizon Communications Inc. 3.75% 2011		82,675			84,696
ALLTEL Corp. 7.00% 2012		18,299			20,225
Verizon Global Funding Corp. 7.375% 2012		7,500			8,431
Verizon Communications Inc. 5.55% 2014		4,710			5,285
Verizon Communications Inc. 8.50% 2018		16,000			20,835
Verizon Communications Inc. 8.75% 2018		15,000			19,530
SBC Communications Inc. 6.25% 2011		250			259
AT&T Wireless Services, Inc. 7.875% 2011		15,455			16,163
SBC Communications Inc. 5.875% 2012		20,337			22,200
AT&T Wireless Services, Inc. 8.125% 2012		12,630			14,139
AT&T Inc. 4.95% 2013		20,950			22,754
SBC Communications Inc. 5.10% 2014		4,745			5,269
SBC Communications Inc. 5.625% 2016		29,575			33,564
AT&T Inc. 5.50% 2018		1,500			1,661
AT&T Inc. 6.55% 2039		21,500			24,165
France Télécom 7.75% 20112		32,000			33,397
France Télécom 4.375% 2014		19,110			20,627
France Télécom 5.375% 2019		23,565			25,757
Sprint Capital Corp. 8.375% 2012		900			948
Nextel Communications, Inc., Series E, 6.875% 2013		13,515			13,160
Nextel Communications, Inc., Series F, 5.95% 2014		30,070			28,040
Nextel Communications, Inc., Series D, 7.375% 2015		11,700			11,174
Cricket Communications, Inc. 9.375% 2014		33,285			33,951
Cricket Communications, Inc. 7.75% 2016		11,600			11,890
Vodafone Group PLC 5.625% 2017		16,080			17,661
Vodafone Group PLC 5.45% 2019		25,000			26,809
Telefónica Emisiones, SAU 4.949% 2015		13,210			13,852
Telefónica Emisiones, SAU 5.134% 2020		24,500			24,603
Deutsche Telekom International Finance BV 5.875% 2013		4,000			4,382
Deutsche Telekom International Finance BV 4.875% 2014		16,250			17,430
Deutsche Telekom International Finance BV 6.75% 2018		10,900			12,651
MetroPCS Wireless, Inc. 9.25% 2014		17,225			17,828
MetroPCS Wireless, Inc. 9.25% 2014		11,125			11,514
América Móvil, SAB de CV 5.00% 20203		6,700			6,956
América Móvil, SAB de CV 8.46% 2036	MXN27,000				1,974
América Móvil, SAB de CV 6.125% 20403	$	15,750			16,525
Clearwire Communications LLC/Finance 12.00% 20153		16,900			16,837
Clearwire Communications LLC/Finance 12.00% 20153		1,500			1,494
Wind Acquisition SA 11.75% 20173		17,275			17,793
Koninklijke KPN NV 8.375% 2030		12,725			16,708
PCCW-HKT Capital Ltd. 8.00% 20112,3		15,000			16,042
American Tower Corp. 4.625% 2015		14,875			15,490
New Communications Holdings 7.875% 20153		1,525			1,544
New Communications Holdings 8.25% 20173		5,825			5,876
New Communications Holdings 8.50% 20203		2,900			2,922
New Communications Holdings 8.75% 20223		1,825			1,834
Intelsat, Ltd. 8.875% 2015		4,275			4,366
Intelsat Jackson Holding Co., Series B, 8.875% 20153		1,950			1,991
Intelsat Jackson Holding Co. 9.50% 2016		2,100			2,216
Intelsat Jackson Holding Co. 8.50% 20193		1,175			1,193
Digicel Group Ltd. 12.00% 20143		5,425			6,096
Digicel Group Ltd. 8.875% 20153		2,150			2,112
SK Telecom Co., Ltd. 4.25% 20113		6,000			6,097
Singapore Telecommunications Ltd. 6.375% 2011		3,475			3,706
Singapore Telecommunications Ltd. 6.375% 20113		2,050	��		2,186
Crown Castle International Corp. 9.00% 2015		2,550			2,709
Crown Castle International Corp. 7.75% 20173		300			319
Sorenson Communications 10.50% 20153		3,575			2,270
Hawaiian Telcom Communications, Inc. 8.765% 20132,6		3,605			81
Hawaiian Telcom Communications, Inc. 9.75% 20136		7,715			174
Hawaiian Telcom Communications, Inc., Term Loan C, 4.75% 20142,4,7,8		2,168			1,824
Hawaiian Telcom Communications, Inc., Series B, 12.50% 20156		3,050			—
Orascom Telecom 7.875% 20143		1,010			932
SBA Telecommunications, Inc. 8.00% 20163		725			754
Trilogy International Partners LLC, Term Loan B, 4.034% 20122,4,5,7		275			250
					951,148
HEALTH CARE — 2.09%
Pharmaceuticals, biotechnology & life sciences — 1.24%
Roche Holdings Inc. 5.00% 20143		28,500			31,496
Roche Holdings Inc. 6.00% 20193		49,180			57,340
Roche Holdings Inc. 7.00% 20393		11,060			14,393
Pfizer Inc. 4.45% 2012		11,040			11,652
Pfizer Inc. 5.35% 2015		5,125			5,813
Wyeth 5.50% 2016		15,000			17,215
Pfizer Inc. 6.20% 2019		40,250			47,916
Schering-Plough Corp. 5.30% 20132		14,559			16,345
Schering-Plough Corp. 5.375% 2014	€	13,155			18,108
Merck & Co., Inc. 4.00% 2015	$	5,000			5,421
Schering-Plough Corp. 6.00% 2017		23,740			27,932
Novartis Capital Corp. 1.90% 2013		23,000			23,363
Novartis Capital Corp. 4.125% 2014		13,525			14,605
Novartis Capital Corp. 2.90% 2015		7,750			7,981
Novartis Securities Investment Ltd. 5.125% 2019		13,280			14,892
GlaxoSmithKline Capital Inc. 4.85% 2013		20,000			21,881
GlaxoSmithKline Capital Inc. 5.65% 2018		15,000			17,192
GlaxoSmithKline Capital Inc. 6.375% 2038		15,000			17,915
Biogen Idec Inc. 6.00% 2013		30,050			33,074
Biogen Idec Inc. 6.875% 2018		20,000			22,823
Abbott Laboratories 2.70% 2015		11,500			11,773
Abbott Laboratories 5.125% 2019		10,000			11,178
Elan Finance PLC and Elan Finance Corp. 4.663% 20132		4,175			4,008
Elan Finance PLC and Elan Finance Corp. 8.875% 2013		11,010			11,093
Elan Finance PLC and Elan Finance Corp. 8.75% 20163		5,350			5,223
AstraZeneca PLC 5.40% 2012		12,000			13,110
Patheon Inc. 8.625% 20173		2,010			2,005
Quintiles Transnational 9.50% 20142,3,8		1,980			1,995
					487,742
Health care equipment & services — 0.85%
Cardinal Health, Inc. 5.50% 2013		12,535			13,698
Cardinal Health, Inc. 4.00% 2015		10,340			10,754
Cardinal Health, Inc. 5.80% 2016		11,509			12,905
Allegiance Corp. 7.00% 2026		9,635			11,063
Express Scripts Inc. 5.25% 2012		14,105			15,076
Express Scripts Inc. 6.25% 2014		28,133			31,881
Hospira, Inc. 6.40% 2015		3,010			3,423
Hospira, Inc. 6.05% 2017		31,280			35,267
UnitedHealth Group Inc. 5.25% 2011		2,463			2,528
UnitedHealth Group Inc. 6.00% 2017		25,642			28,197
UnitedHealth Group Inc. 5.80% 2036		1,000			1,009
Boston Scientific Corp. 4.50% 2015		4,530			4,454
Boston Scientific Corp. 6.25% 2015		11,115			11,536
Boston Scientific Corp. 6.00% 2020		12,125			12,060
Boston Scientific Corp. 7.375% 2040		575			585
Coventry Health Care, Inc. 6.30% 2014		13,395			14,153
Coventry Health Care, Inc. 5.95% 2017		11,440			10,942
PTS Acquisition Corp. 9.50% 20152,8		22,716			21,751
Tenet Healthcare Corp. 7.375% 2013		8,195			8,236
Tenet Healthcare Corp. 9.25% 2015		7,170			7,439
Tenet Healthcare Corp. 8.875% 20193		3,950			4,207
Aetna Inc. 5.75% 2011		17,500			18,209
VWR Funding, Inc., Series B, 10.25% 20152,8		16,919			17,173
HealthSouth Corp. 10.75% 2016		9,980			10,828
Surgical Care Affiliates, Inc. 8.875% 20152,3,8		3,927			3,913
Surgical Care Affiliates, Inc. 10.00% 20173		6,845			6,794
Bausch & Lomb Inc. 9.875% 2015		7,625			7,873
HCA Inc. 9.125% 2014		695			729
HCA Inc. 9.25% 2016		530			563
HCA Inc. 9.625% 20162,8		557			597
HCA Inc., Term Loan B2, 3.783% 20172,4,7		1,673			1,601
Symbion Inc. 11.75% 20152,8		2,619			2,301
Merge Healthcare Inc. 11.75% 20153		1,225			1,226
WellPoint, Inc. 5.00% 2011		1,000			1,020
					333,991
CONSUMER STAPLES — 1.75%
Food & staples retailing — 0.99%
Kroger Co. 5.00% 2013		18,000			19,279
Kroger Co. 7.50% 2014		11,955			13,982
Kroger Co. 3.90% 2015		3,580			3,781
Kroger Co. 6.40% 2017		48,190			56,175
Kroger Co. 6.15% 2020		6,190			7,164
CVS Caremark Corp. 6.117% 20133,4		686			738
CVS Caremark Corp. 4.75% 2020		29,341			30,095
CVS Caremark Corp. 5.789% 20263,4		14,762			14,839
CVS Caremark Corp. 6.036% 20284		19,195			19,687
CVS Caremark Corp. 6.943% 20304		22,276			24,636
CVS Caremark Corp. 6.125% 2039		5,700			6,114
Wal-Mart Stores, Inc. 2.25% 2015		1,000			997
Wal-Mart Stores, Inc. 2.875% 2015		11,550			11,993
Wal-Mart Stores, Inc. 5.375% 2017		4,500			5,168
Wal-Mart Stores, Inc. 5.80% 2018		12,800			15,102
Wal-Mart Stores, Inc. 4.875% 2040		11,300			11,127
Delhaize Group 5.875% 2014		6,890			7,696
Delhaize Group 6.50% 2017		26,205			30,239
Delhaize America, Inc. 9.00% 2031		2,850			3,906
Tesco PLC 5.50% 20173		25,325			28,188
SUPERVALU INC. 7.50% 2012		365			377
Albertson’s, Inc. 7.25% 2013		3,525			3,604
SUPERVALU INC. 7.50% 2014		830			834
SUPERVALU INC. 8.00% 2016		12,525			12,462
Albertson’s, Inc. 8.00% 2031		3,700			3,219
Safeway Inc. 6.25% 2014		100			114
Safeway Inc. 6.35% 2017		15,000			17,338
Safeway Inc. 5.00% 2019		1,000			1,075
Stater Bros. Holdings Inc. 8.125% 2012		5,275			5,301
Stater Bros. Holdings Inc. 7.75% 2015		12,025			12,055
Tops Markets 10.125% 20153		13,075			13,533
Walgreen Co. 4.875% 2013		5,000			5,502
Costco Wholesale Corp. 5.30% 2012		3,000			3,217
Ingles Markets, Inc. 8.875% 2017		2,550			2,607
					392,144
Food, beverage & tobacco — 0.74%
Anheuser-Busch InBev NV 2.50% 20133		5,000			5,063
Anheuser-Busch InBev NV 7.20% 20143		25,000			28,769
Anheuser-Busch InBev NV 3.625% 20153		29,250			29,971
Anheuser-Busch InBev NV 4.125% 2015		37,375			39,165
Anheuser-Busch InBev NV 8.625% 2017	€	2,500			4,053
Anheuser-Busch InBev NV 6.875% 20193	$	7,740			8,942
Anheuser-Busch InBev NV 7.75% 20193		18,367			22,329
Anheuser-Busch InBev NV 5.00% 20203		2,500			2,619
Anheuser-Busch InBev NV 5.375% 2020		17,600			19,001
Altria Group, Inc. 9.70% 2018		7,925			10,051
Altria Group, Inc. 9.25% 2019		20,550			25,690
Kraft Foods Inc. 2.625% 2013		10,215			10,416
Kraft Foods Inc. 4.125% 2016		5,000			5,284
Kraft Foods Inc. 5.375% 2020		13,390			14,375
PepsiCo, Inc. 3.10% 2015		22,000			22,930
British American Tobacco International Finance PLC 9.50% 20183		13,000			17,062
Coca-Cola Co. 4.875% 2019		7,500			8,323
Smithfield Foods, Inc., Series B, 7.75% 2013		150			149
Smithfield Foods, Inc. 10.00% 20143		2,475			2,753
Smithfield Foods, Inc. 7.75% 2017		3,825			3,672
CEDC Finance Corp. 9.125% 20163		3,500			3,395
BFF International Ltd. 7.25% 20203		3,000			3,090
Diageo Capital PLC 5.75% 2017		1,437			1,628
Tyson Foods, Inc. 10.50% 2014		700			819
Tyson Foods, Inc. 7.85% 20162		500			546
Constellation Brands, Inc. 8.375% 2014		550			589
Constellation Brands, Inc. 7.25% 2017		750			764
TreeHouse Foods, Inc. 7.75% 2018		1,200			1,248
Cott Beverages Inc. 8.375% 20173		1,000			1,013
					293,709
Household & personal products — 0.02%
Spectrum Brands Inc. 9.50% 20183		5,150			5,317
Elizabeth Arden, Inc. 7.75% 2014		1,625			1,621
Procter & Gamble Co. 3.50% 2015		150			160
					7,098
INFORMATION TECHNOLOGY — 0.85%
Semiconductors & semiconductor equipment — 0.46%
NXP BV and NXP Funding LLC 3.053% 20132		8,895			7,639
NXP BV and NXP Funding LLC 3.394% 20132	€	5,525			5,810
NXP BV and NXP Funding LLC 10.00% 201310	$	6,882			7,364
NXP BV and NXP Funding LLC 7.875% 2014		17,925			16,536
NXP BV and NXP Funding LLC 8.625% 2015	€	11,375			11,684
NXP BV and NXP Funding LLC 9.50% 2015	$	10,720			9,005
Freescale Semiconductor, Inc. 8.875% 2014		4,300			3,945
Freescale Semiconductor, Inc. 9.125% 20142,8		24,072			21,665
Freescale Semiconductor, Inc., Term Loan, 4.604% 20162,4,7		681			600
Freescale Semiconductor, Inc. 10.125% 2016		12,042			9,694
Freescale Semiconductor, Inc. 9.25% 20183		8,750			8,684
Freescale Semiconductor, Inc. 10.125% 20183		6,925			7,098
KLA-Tencor Corp. 6.90% 2018		33,300			37,310
National Semiconductor Corp. 6.15% 2012		3,850			4,125
National Semiconductor Corp. 6.60% 2017		23,000			25,804
Advanced Micro Devices, Inc. 8.125% 20173		3,075			3,075
					180,038
Software & services — 0.22%
First Data Corp., Term Loan B2, 3.097% 20142,4,7		18,111			15,257
First Data Corp. 9.875% 2015		9,250			6,984
First Data Corp. 9.875% 2015		2,975			2,276
First Data Corp. 10.55% 20158		2,225			1,641
Oracle Corp. 3.75% 2014		16,600			17,789
International Business Machines Corp. 4.75% 2012		3,500			3,791
International Business Machines Corp. 5.70% 2017		3,750			4,365
International Business Machines Corp. 5.60% 2039		6,000			6,696
SunGard Data Systems Inc. 9.125% 2013		12,613			12,881
Serena Software, Inc. 10.375% 2016		11,262			10,783
Ceridian Corp. 11.25% 2015		3,450			3,131
					85,594
Technology hardware & equipment — 0.17%
Sanmina-SCI Corp. 3.287% 20142,3		7,871			7,320
Sanmina-SCI Corp. 8.125% 2016		11,490			11,375
Cisco Systems, Inc. 2.90% 2014		10,125			10,489
Cisco Systems, Inc. 5.50% 2016		2,000			2,307
Cisco Systems, Inc. 4.95% 2019		2,500			2,753
Cisco Systems, Inc. 4.45% 2020		2,500			2,644
Hewlett-Packard Co. 4.25% 2012		2,250			2,372
Hewlett-Packard Co. 4.75% 2014		4,000			4,436
Hewlett-Packard Co. 5.50% 2018		2,250			2,595
Electronic Data Systems Corp. 7.45% 2029		4,020			5,238
Jabil Circuit, Inc. 8.25% 2018		13,225			14,085
					65,614
MATERIALS — 0.80%
Dow Chemical Co. 7.60% 2014		21,250			24,562
Dow Chemical Co. 5.70% 2018		1,700			1,795
Dow Chemical Co. 8.55% 2019		31,570			38,708
Dow Chemical Co. 9.40% 2039		1,200			1,674
Rio Tinto Finance (USA) Ltd. 5.875% 2013		34,000			37,278
Rio Tinto Finance (USA) Ltd. 8.95% 2014		2,500			3,035
Rio Tinto Finance (USA) Ltd. 9.00% 2019		16,920			22,240
International Paper Co. 7.40% 2014		28,490			32,495
International Paper Co. 7.95% 2018		3,970			4,734
International Paper Co. 9.375% 2019		2,470			3,195
International Paper Co. 7.50% 2021		4,330			5,080
International Paper Co. 7.30% 2039		2,000			2,213
BHP Billiton Finance (USA) Ltd. 5.50% 2014		19,545			21,813
Reynolds Group 7.75% 20163		13,355			13,121
Reynolds Group 8.50% 20183		7,555			7,451
CEMEX Finance LLC 9.50% 20163		9,450			9,166
CEMEX Finance LLC 9.50% 2016		5,925			5,747
CEMEX SA 9.25% 20203		1,126			985
Georgia Gulf Corp. 9.00% 20173		12,975			13,234
Ball Corp. 7.125% 2016		4,990			5,246
Ball Corp. 7.375% 2019		3,480			3,637
Ball Corp. 6.75% 2020		1,390			1,411
CRH Finance BV 7.375% 20142	€	4,394			6,154
CRH America, Inc. 8.125% 2018	$	2,500			3,019
Plastipak Holdings, Inc. 8.50% 20153		7,165			7,222
Praxair, Inc. 4.375% 2014		1,850			2,005
Praxair, Inc. 4.625% 2015		2,500			2,744
Newpage Corp. 11.375% 2014		4,720			4,307
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 9.00% 2014		2,254			2,299
Nalco Co., Term Loan B, 5.75% 20162,4,7		733			732
Nalco Co. 8.25% 2017		500			520
Airgas, Inc. 7.125% 20183		3,000			3,229
Yara International ASA 7.875% 20193		2,675			3,207
Owens-Brockway Glass Container Inc. 6.75% 2014		325			332
Owens-Brockway Glass Container Inc. 7.375% 2016		2,045			2,142
Arbermarle Corp. 5.10% 2015		2,156			2,351
E.I. du Pont de Nemours and Co. 5.25% 2016		2,000			2,284
ICI Wilmington, Inc. 5.625% 2013		2,000			2,169
Georgia-Pacific Corp. 8.125% 2011		2,065			2,161
Rockwood Specialties Group, Inc. 7.50% 2014		1,355			1,372
Rockwood Specialties Group, Inc. 7.625% 2014	€	500			611
Potash Corp. of Saskatchewan Inc. 5.875% 2036	$	1,600			1,725
Smurfit Kappa Acquisition 7.75% 2019	€	505			618
Smurfit Capital Funding PLC 7.50% 2025	$	800			714
Graphic Packaging International, Inc. 9.50% 2017		1,195			1,255
Teck Resources Ltd. 10.75% 2019		1,000			1,227
Rock-Tenn Co. 9.25% 2016		1,050			1,131
LBI Escrow Corp 8.00% 20173		900			929
Solutia Inc. 8.75% 2017		610			637
					315,916
Total corporate bonds & notes					10,916,909
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 6.41%
United Mexican States Government Global 6.375% 2013	$	5,150		$	5,673
United Mexican States Government, Series MI10, 9.50% 2014	MXN780,300				68,316
United Mexican States Government, Series M10, 8.00% 2015		505,000			42,083
United Mexican States Government, Series M10, 7.25% 2016		435,000			34,903
United Mexican States Government 3.50% 20171		229,523			18,789
United Mexican States Government Global 5.95% 2019	$	31,170			34,755
United Mexican States Government, Series M20, 10.00% 2024	MXN449,800				43,512
United Mexican States Government Global, Series A, 6.75% 2034	$	2,495			2,888
United Mexican States Government, Series M30, 10.00% 2036	MXN138,000				13,541
United Mexican States Government 4.00% 20401		130,651			10,780
Polish Government, Series 0414, 5.75% 2014	PLN246,821				73,947
Polish Government, Series 1017, 5.25% 2017		255,245			73,423
Polish Government 6.375% 2019	$	68,495			76,113
South Korean Government, Series 1303, 5.25% 2013	KRW11,320,000				9,596
South Korean Government 4.25% 2014		29,650,000			24,302
South Korean Government 4.75% 2014		48,640,000			40,732
South Korean Government 5.00% 2014		11,870,000			9,976
South Korean Government 5.75% 2014	$	21,100			23,042
South Korean Government 5.25% 2015	KRW24,200,000				20,520
South Korean Government 5.50% 2017		10,100,000			8,682
South Korean Government 5.75% 2018		19,625,000			16,997
Canadian Government 2.00% 2014	$	C141,310			131,661
Irish Government 4.00% 2014	€	49,740			61,013
Irish Government 4.40% 2019		12,235			13,926
Irish Government 5.00% 2020		26,435			30,686
Hungarian Government, Series 14/C, 5.50% 2014	HUF3,927,730				15,921
Hungarian Government, Series 17/B, 6.75% 2017		2,309,430			9,451
Hungarian Government, Series 19/A, 6.50% 2019		500,000			1,976
Hungarian Government 6.25% 2020	$	60,190			59,451
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.50% 20123		7,250			7,478
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.90% 20143		23,005			23,912
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 3.625% 20143		45,000			48,119
Brazilian Treasury Bill 6.00% 20101	BRL 1,600				905
Brazilian Treasury Bill 6.00% 20151		7,673			4,163
Brazil (Federal Republic of) Global 12.50% 2016		23,400			14,487
Brazilian Treasury Bill 6.00% 20171		56,476			30,666
Brazil (Federal Republic of) 10.00% 2017		48,000			24,074
Brazil (Federal Republic of) Global 8.00% 20184	$	572			667
Brazil (Federal Republic of) Global 12.25% 2030		425			744
Brazil (Federal Republic of) Global 7.125% 2037		750			889
Brazil (Federal Republic of) Global 11.00% 2040		2,110			2,836
Australia Government Agency-Guaranteed, National Australia Bank 0.795% 20142,3		25,000			25,047
Australia Government Agency-Guaranteed, National Australia Bank 3.375% 20143		50,550			53,046
Turkey (Republic of) 10.00% 20121	TRY28,032				20,589
Turkey (Republic of) 16.00% 2012		9,555			6,706
Turkey (Republic of) 16.00% 2013		21,045			15,777
Turkey (Republic of) 7.50% 2017	$	5,725			6,569
Turkey (Republic of) 6.75% 2018		8,550			9,395
Turkey (Republic of) 5.625% 2021		8,000			7,960
Turkey (Republic of) 8.00% 2034		1,250			1,467
Turkey (Republic of) 6.75% 2040		9,300			9,370
German Government, Series 03, 3.75% 2013	€	9,430			12,523
German Government 4.25% 2014		26,680			36,541
German Government, Series 6, 4.00% 2016		4,735			6,511
German Government, Series 06, 3.75% 2017		155			210
German Government 6.25% 2030		8,190			14,347
German Government, Series 03, 4.75% 2034		3,065			4,646
Malaysian Government, Series 0109, 2.509% 2012	MYR22,045				6,735
Malaysian Government, Series 509, 3.21% 2013		31,000			9,575
Malaysian Government, Series 204, 5.094% 2014		75,350			24,695
Malaysian Government, Series 0409, 3.741% 2015		63,870			19,921
France Government Agency-Guaranteed, Société Finance 2.25% 20123	$	12,585			12,814
France Government Agency-Guaranteed, Société Finance 2.875% 20143		33,200			33,998
France Government Agency-Guaranteed, Société Finance 3.375% 20143		10,000			10,464
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014		44,750			56,894
Netherlands Government Eurobond 4.00% 2018	€	41,200			55,916
Colombia (Republic of) Global 8.25% 2014	$	4,450			5,329
Colombia (Republic of) Global 12.00% 2015	COP26,904,000				18,250
Colombia (Republic of) Global 7.375% 2017	$	10,365			12,075
Colombia (Republic of) Global 7.375% 2019		6,050			7,109
Colombia (Republic of) Global 9.85% 2027	COP4,950,000				3,368
Colombia (Republic of) Global 7.375% 2037	$	7,350			8,673
Indonesia (Republic of), Series 23, 11.00% 2012	IDR 4,090,000				492
Indonesia (Republic of), Series 33, 12.50% 2013		8,710,000			1,088
Indonesia (Republic of), Series 20, 14.275% 2013		2,110,000			282
Indonesia (Republic of), Series 51, 11.25% 2014		1,260,000			157
Indonesia (Republic of) 9.50% 2015		28,000,000			3,331
Indonesia (Republic of), Series 30, 10.75% 2016		136,020,000			17,084
Indonesia (Republic of) 6.875% 2018	$	2,000			2,275
Indonesia (Republic of) 6.875% 20183		1,700			1,934
Indonesia (Republic of) 11.625% 2019		10,254			14,791
Indonesia (Republic of) 5.875% 20203		6,200			6,572
Indonesia (Republic of) 7.75% 2038		4,500			5,355
European Investment Bank 4.25% 2014	€	35,020			47,021
Japanese Government, Series 231, 1.30% 2011	¥	50			1
Japanese Government, Series 296, 1.50% 2018		2,468,700			29,499
Japanese Government 2.40% 2038		1,342,250			16,580
Sweden Government Agency-Guaranteed, Swedbank AB 2.80% 20123	$	9,000			9,286
Sweden Government Agency-Guaranteed, Swedbank AB 2.90% 20133		35,000			36,323
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 2.50% 20123		8,250			8,444
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20143		33,320			35,311
Denmark Government Agency-Guaranteed, Danish Finance Co. 2.45% 20123		42,220			43,226
French Government O.A.T. Eurobond 4.00% 2014	€	30,340			40,576
French Government O.A.T. Eurobond 4.00% 2018		530			709
Israeli Government, Series 2683, 6.50% 2016	ILS47,500				13,936
Israeli Government 5.50% 2017		63,060			17,610
Israeli Government 5.125% 2019	$	7,250			7,835
Russian Federation 7.50% 20304		33,865			38,395
Russian Federation 7.50% 20303,4		133			151
Croatian Government 6.75% 20193		22,450			23,542
Croatian Government 6.75% 2019		9,400			9,857
Venezuela (Republic of) 5.375% 2010		2,835			2,821
Venezuela (Republic of) 8.50% 2014		245			189
Venezuela (Republic of) 7.65% 2025		985			534
Venezuela (Republic of) 9.25% 2027		31,745			21,507
Venezuela (Republic of) 9.25% 2028		11,160			6,863
Finland (Republic of) 3.875% 2017	€	23,230			31,350
Ireland Government Agency-Guaranteed, Irish Life & Permanent 3.60% 20133	$	31,200			30,913
New South Wales Treasury Corp., Series 19, 6.00% 2019	$	A33,350			29,077
Uruguay (Republic of) 5.00% 20181	UYU499,364				26,497
Uruguay (Republic of) 7.625% 20364	$	1,250			1,456
Europe Government Agency-Guaranteed, Dexia Credit Local 0.544% 20122,3		25,000			24,996
Australia and New Zealand Government Agency-Guaranteed, Australia and New Zealand Banking Group Ltd. 3.25% 20123		21,750			22,595
South Africa (Republic of) 6.875% 2019		7,615			8,748
South Africa (Republic of) 5.50% 2020		12,000			12,465
Spanish Government 3.625% 2013		19,500			19,622
Peru (Republic of) 8.75% 2033		8,226			11,187
Peru (Republic of) 6.55% 20374		7,450			8,269
Italian Government 4.25% 2013	€	14,100			18,112
Province of Ontario, Series 1, 1.875% 2012	$	17,375			17,589
Argentina (Republic of) 0.146% 20122,4		24,755			8,550
Argentina (Republic of) 7.00% 2015		9,345			7,263
Argentina (Republic of) GDP-Linked 2035	ARS9,238				178
Argentina (Republic of) 1.18% 20381,4		9,550			447
Queensland Treasury Corp., Series 15, 6.00% 2015	$	A18,380			16,008
United Kingdom Government Agency-Guaranteed, Lloyds TSB Bank PLC 2.80% 20123	$	15,000			15,377
Iraq (Republic of) 5.80% 20284		14,200			11,644
Nordic Investment Bank, Series C, 5.00% 2017		9,000			10,234
Corporación Andina de Fomento 6.875% 2012		5,895			6,372
Corporación Andina de Fomento 5.125% 2015		2,000			2,190
Corporación Andina de Fomento 8.125% 2019		890			1,097
Dominican Republic 9.50% 20113,4		703			738
Dominican Republic 9.04% 20183,4		4,481			4,997
Dominican Republic 7.50% 20213,4		3,500			3,622
Banque Centrale de Tunisie 4.75% 2011	€	3,000			3,760
Banque Centrale de Tunisie 7.375% 2012	$	4,500			4,911
Philippines (Republic of) 6.375% 2034		8,000			8,050
Netherlands Government Agency-Guaranteed, ING Bank NV 3.90% 20143		7,000			7,563
Austrian Government 2.00% 20123		7,250			7,404
Asian Development Bank 2.75% 2014		6,150			6,349
Panama (Republic of) Global 7.25% 2015		2,275			2,645
Panama (Republic of) Global 7.125% 2026		300			352
Panama (Republic of) Global 8.875% 2027		250			334
Panama (Republic of) Global 9.375% 2029		340			473
Panama (Republic of) Global 6.70% 20364		2,159			2,391
Greek Government 6.10% 2015	€	2,705			2,706
Greek Government 6.00% 2019		1,300			1,154
Greek Government, Series 30, 4.60% 2040		3,000			1,895
Gabonese Republic 8.20% 2017	$	5,300			5,644
El Salvador (Republic of) 7.65% 20353		3,450			3,674
Guatemala (Republic of) 10.25% 20113		1,000			1,120
Ireland Government Agency-Guaranteed, Anglo Irish Bank Corp. plc 1.029% 20162	€	1,400			651
LCR Finance PLC 5.10% 2051	£	165			284
					2,528,645
ASSET-BACKED OBLIGATIONS4 — 1.97%
CPS Auto Receivables Trust, Series 2005-B, Class A-2, FSA insured, 4.36% 20123	$	2,182			2,201
CPS Auto Receivables Trust, Series 2005-D, Class A-2, FSA insured, 5.06% 20123		1,657			1,684
CPS Auto Receivables Trust, Series 2006-A, Class 1-A-4, FSA insured, 5.33% 20123		3,365			3,387
CPS Auto Receivables Trust, Series 2006-B, Class A-4, MBIA insured, 5.81% 20123		13,122			13,324
CPS Auto Receivables Trust, Series 2007-A, Class A-4, MBIA insured, 5.05% 20133		13,582			13,983
CPS Auto Receivables Trust, Series 2006-C, Class A-4, XLCA insured, 5.14% 20133		14,185			14,427
CPS Auto Receivables Trust, Series 2007-B, Class A-4, FSA insured, 5.60% 20143		18,743			19,443
CPS Auto Receivables Trust, Series 2007-C, Class A-4, FSA insured, 5.92% 20143		18,950			19,946
Washington Mutual Master Note Trust, Series 2007-A4A, Class A-4, 5.20% 20143		30,055			30,385
Washington Mutual Master Note Trust, Series 2006-A2A, Class A, 0.40% 20152,3		31,000			30,815
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-2, Class A-6, AMBAC insured, 5.08% 20113		12,083			12,188
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2009-2A, Class A-1, 4.26% 20143		9,000			9,385
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2009-2A, Class A-2, 5.29% 20163		17,500			18,957
GS Auto Loan Trust, Series 2006-1, Class A-4, 5.38% 2014		34,558			34,619
GS Auto Loan Trust, Series 2006-1, Class A-4, 5.60% 2014		1,863			1,865
Long Beach Acceptance Auto Receivables Trust, Series 2006-B, Class A-4, FSA insured, 5.18% 2013		20,075			20,362
Long Beach Acceptance Auto Receivables Trust, Series 2007-A, Class A-4, FSA insured, 5.025% 2014		11,952			12,290
CarMax Auto Owner Trust, Series 2007-2, Class A-3, 5.23% 2011		1,852			1,863
CarMax Auto Owner Trust, Series 2008-2, Class A-3a, 4.99% 2012		8,200			8,416
CarMax Auto Owner Trust, Series 2007-2, Class A-4, 5.27% 2012		20,000			20,657
Vega ContainerVessel PLC, Series 2006-1, Class A, XLCA insured, 5.562% 20213		34,978			30,139
AmeriCredit Automobile Receivables Trust, Series 2005-C-F, Class A-4, FSA insured, 4.63% 2012		4,075			4,078
AmeriCredit Automobile Receivables Trust, Series 2007-D-F, Class A-3-A, FSA insured, 5.49% 2012		791			793
AmeriCredit Automobile Receivables Trust, Series 2006-B-G, Class A-4, FGIC insured, 5.21% 2013		19,016			19,659
AmeriCredit Automobile Receivables Trust, Series 2007-C-M, Class A-4-A, MBIA insured, 5.55% 2014		4,572			4,807
Capital One Auto Finance Trust, Series 2006-C, Class A-4, FGIC insured, 0.38% 20132		16,817			16,704
Capital One Auto Finance Trust, Series 2007-B, Class A-4, MBIA insured, 0.38% 20142		12,425			12,342
Prestige Auto Receivables Trust, Series 2006-1A, Class A-2, FSA insured, 5.25% 20133		3,549			3,673
Prestige Auto Receivables Trust, Series 2007-1, Class A-3, FSA insured, 5.58% 20143		21,635			22,695
USAA Auto Owner Trust, Series 2007-1, Class A-4, 5.55% 2013		24,265			24,750
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class A-4, 6.57% 2024		6,941			7,197
Vanderbilt Mortgage and Finance, Inc., Series 1999-B, Class I-A-6, 6.925% 2024		4,038			4,051
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-4, 7.905% 2026		1,250			1,287
Vanderbilt Mortgage and Finance, Inc., Series 1997-C, Class II-A-1, 0.771% 20272		420			373
Vanderbilt Mortgage and Finance, Inc., Series 2000-D, Class A-4, 7.715% 2027		1,375			1,408
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-5, 8.195% 2030		6,889			7,385
Vanderbilt Mortgage and Finance, Inc., Series 2001-C, Class M-1, 6.76% 2032		796			748
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class M-1, 7.82% 2032		2,050			1,966
Nissan Auto Lease Trust, Series 2008-A, Class A-3a, 5.14% 2011		22,445			22,564
Chase Issuance Trust, Series 2008-4, Class A, 4.65% 2015		18,000			19,514
AEP Texas Central Transitioning Funding II LLC, Secured Transition Bonds, Series A, Class A-3, 5.09% 2017		16,720			18,668
RAMP Trust, Series 2004-RS10, Class A-I-6, 4.55% 2034		20,016			18,003
Spirit Master Funding LLC, Net-Lease Mortgage Notes, Series 2005-1, Class A-1, AMBAC insured, 5.05% 20233,5		22,856			17,142
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class B-1, 7.30% 2021		4,554			4,430
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-4, 6.57% 2027		7,889			8,423
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-5, 7.12% 2032		3,000			3,364
Aesop Funding II LLC, Series 2010-2A, Class A, 3.63% 20143		12,400			12,581
Aesop Funding II LLC, Series 2010-3A, Class B, 6.74% 20163		3,000			3,112
Morgan Stanley ABS Capital I Inc., Series 2004-NC3, Class M-1, 1.142% 20342		18,822			12,614
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.49% 20372		6,732			5,162
CWHEQ Revolving Home Equity Loan Trust, Series 2007-C, Class A, FGIC insured, 0.50% 20372		12,028			2,945
CWHEQ Revolving Home Equity Loan Trust, Series 2007-B, Class A, FSA insured, 0.50% 20372		3,553			2,568
AmeriCredit Prime Automobile Receivables Trust, Series 2007-2-M, Class A-4-A, MBIA insured, 5.35% 2016		10,073			10,510
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2014		1,976			1,996
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-4, 5.27% 2018		1,013			1,046
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-5, 5.873% 2022		3,327			3,448
Lehman ABS Manufactured Housing Contract Trust, Series 2002-A, Class A, 0.80% 20332		4,266			3,730
MBNA Credit Card Master Note Trust, Series 2006-1, Class C, 0.77% 20152		10,000			9,442
Drive Auto Receivables Trust, Series 2006-2, Class A-3, MBIA insured, 5.33% 20143		8,822			9,015
Residential Asset Securities Corp. Trust, Series 2001-KS3, Class A-I-6, 5.96% 2031		9,040			8,541
Triad Automobile Receivables Trust, Series 2006-C, Class A-4, AMBAC insured, 5.31% 2013		8,229			8,509
First Horizon ABS Trust, Series 2006-HE2, Class A, FSA insured, 0.477% 20262		670			475
First Horizon ABS Trust, Series 2007-HE1, Class A, FSA insured, 0.477% 20292		10,651			7,894
Ford Credit Auto Owner Trust, Series 2006-B, Class B, 5.43% 2012		7,333			7,466
Wachovia Auto Loan Owner Trust, Series 2006-1, Class A-4, 5.08% 20123		2,275			2,287
Wachovia Auto Loan Owner Trust, Series 2006-1, Class B, 5.15% 20123		5,000			5,093
Conseco Finance Securitizations Corp., Series 2002-2, Class A-2, 6.03% 2033		6,957			7,238
Credit-Based Asset Servicing and Securitization LLC, Series 2007-MX1, Class A-3, 5.825% 20362,3		8,387			5,414
Credit-Based Asset Servicing and Securitization LLC, Series 2007-CB4, Class A-2B, 5.723% 20372		3,061			1,800
Drivetime Auto Owner Trust, Series 2007-A, XLCA insured, 5.603% 20132,3		6,408			6,514
CNL Funding, Series 2000-AA, Class A-2, MBIA insured, 8.044% 20173		9,065			6,281
Green Tree Financial Corp., Series 1996-10, Class A-6, 7.30% 2028		1,081			1,109
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029		3,918			4,200
Conseco Finance Home Equity Loan Trust, Series 2002-B, Class M-1, 2.10% 20332		808			431
UPFC Auto Receivables Trust, Series 2007-A, Class A-3, MBIA insured, 5.53% 2013		5,550			5,642
Franklin Auto Trust, Series 2006-1, Class A-4, 5.03% 2014		3,405			3,438
Franklin Auto Trust, Series 2006-1, Class B, 5.14% 2014		2,000			2,023
Residential Funding Mortgage Securities II, Inc., Series 2005-HS1, Class A-1-2, FGIC insured, 4.66% 20352		4,248			4,018
Residential Funding Mortgage Securities II, Inc., Series 2006-HSA3, Class A, FSA insured, 0.477% 20362		1,820			1,338
CWHEQ Home Equity Loan Trust, Series 2006-S2, Class A-5, FGIC insured, 5.753% 2027		11,796			5,150
Home Equity Asset Trust, Series 2004-7, Class M-1, 0.967% 20352		6,500			5,047
UCFC Manufactured Housing Contract, Series 1996-2, Class A, MBIA insured, 7.135% 2028		4,469			4,184
Consumers Funding LLC, Series 2001-1, Class A-5, 5.43% 2015		3,913			4,160
New Century Home Equity Loan Trust, Series 2004-A, Class A-II-5, FGIC insured, 5.25% 2034		4,099			4,056
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-1, 5.73% 2035		2,062			2,064
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-2, 6.51% 2035		1,651			1,584
Cendant Timeshare Receivables Funding, LLC, Series 2005-1, Class A-1, FGIC insured, 4.67% 20173		3,382			3,368
PECO Energy Transition Trust, Series 2001-A, Class A-1, 6.52% 2010		2,507			2,532
Advanta Business Card Master Trust, Series 2006-A5, Class A, 5.10% 2012		2,500			2,486
World Omni Auto Receivables Trust, Series 2010-A, Class A-4, 2.21% 2015		2,350			2,390
CWABS Revolving Home Equity Loan Trust, Series 2004-P, Class 2-A, MBIA insured, 0.67% 20342		4,994			2,237
SLM Student Loan Trust, Series 2003-10, Class A-4, 5.15% 20393	£	1,160			1,726
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series 2007-H1, Class A-1, FSA insured, 0.507% 20372	$	1,545			1,150
ACLC Business Loan Receivables Trust, Series 2002-1, Class A-2, 7.462% 20223		818			717
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series SPMD 2001-A, Class AF-6, 6.537% 2030		636			537
Home Equity Mortgage Trust, Series 2006-2, Class 1A-1, 5.367% 20362		1,517			266
Home Equity Mortgage Trust, Series 2006-5, Class A-1, 4.605% 20372		2,062			268
Countryplace Manufactured Housing Contract, Series 2005-1, Class A-2, AMBAC insured, 4.42% 20352,3		422			416
Honda Auto Receivables Owner Trust, Series 2007-2, Class A-4, 5.57% 2013		233			239
Chase Auto Owner Trust, Series 2006-B, Class B, 5.24% 2014		148			148
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A-3, 4.14% 2012		28			28
					778,993
MUNICIPALS — 0.28%
State of New York, Long Island Power Authority, Electric System General Revenue Bonds, Series 2009-A, 5.75% 2039		24,330			26,786
Illinois General Obligation Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020		17,000			17,274
State of South Dakota, Educational Enhancement Funding Corp., Tobacco Settlement Asset-backed Bonds,
Series 2002-A, Class A, 6.72% 2025		17,468			15,593
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			13,991
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			13,175
State of New York, Metropolitan Transportation Authority, Dedicated Tax Fund Bonds (Federally Taxable-Issuer
Subsidy-Build America Bonds), Series 2009-C, 7.336% 2039		5,500			6,831
State of Wisconsin, General Fund Annual Appropriation Bonds, Series 2009-A, 5.75% 2033		6,000			6,528
State of Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue Bonds, Series 2007, 5.50% 2023		6,000			6,100
California Various Purpose General Obligation Bonds (Federally Taxable), 5.75% 2017		5,000			5,280
State of Maryland, Howard Hughes Medical Institute, Taxable Fixed Rate Bonds, 3.45% 2014		125			132
					111,690
Total bonds & notes (cost: $35,978,286,000)					37,380,865
	Principal amount			Value
Convertible securities — 0.04%		(000	)		(000	)
INFORMATION TECHNOLOGY — 0.04%
Linear Technology Corp., Series A, 3.00% convertible notes 2027	$	11,500		$	11,313
Advanced Micro Devices, Inc. 6.00% convertible notes 2015		6,217			5,937
Total convertible securities (cost: $14,382,000)					17,250
Preferred securities — 0.87%	Shares
FINANCIALS — 0.86%
BNP Paribas 7.195%2,3		38,000,000			33,440
BNP Paribas Capital Trust 9.003% noncumulative trust2,3		15,000,000			14,813
AXA SA, Series B, 6.379%2,3		39,065,000			31,008
Wachovia Capital Trust III 5.80%2		30,772,000			24,771
Wells Fargo & Co., Series K, 7.98%2		5,425,000			5,615
SMFG Preferred Capital USD 3 Ltd. 9.50%2,3		23,266,000			25,244
SMFG Preferred Capital GBP 2 Ltd. 10.231%2		3,100,000			4,954
QBE Capital Funding II LP 6.797%2,3		36,255,000			29,691
Barclays Bank PLC 7.434%2,3		23,370,000			21,033
Barclays Bank PLC, Series RCI, 14.00%2		2,000,000			3,735
Barclays Bank PLC 6.86%2,3		4,040,000			3,292
Catlin Insurance Ltd. 7.249%2,3		32,375,000			26,143
Weingarten Realty Investors, Series D, 6.75%		495,420			10,969
Weingarten Realty Investors, Series E, 6.95% cumulative redeemable depositary shares		250,000			5,575
Banco Bilbao Vizcaya Argentaria, SA, 5.919%2		22,596,000			16,428
HSBC Capital Funding LP, Series 2, 10.176% noncumulative step-up2,3		12,320,000			14,815
HSBC Holdings PLC, Series 2, 8.00%11		56,000			1,412
XL Capital Ltd., Series E, 6.50%2		19,215,000			13,450
Resona Preferred Global Securities (Cayman) Ltd. 7.191%2,3		13,788,000			12,701
HVB Funding Trust III 9.00% 20313		13,696,000			12,532
JPMorgan Chase & Co., Series I, 7.90%2		10,000,000			10,341
PNC Preferred Funding Trust I 6.517%2,3		10,700,000			8,061
Lloyds Banking Group PLC 6.657% preference shares2,3,11		11,400,000			5,814
Société Générale 5.922%2,3		5,800,000			4,396
RBS Capital Trust II 6.425% noncumulative trust2,11		1,000,000			505
					340,738
U.S. GOVERNMENT AGENCY SECURITIES  — 0.01%
US AgBank 6.11%2,3		5,000,000			3,625
Total preferred securities (cost: $346,427,000)					344,363
Common stocks — 0.02%
MATERIALS — 0.01%
Georgia Gulf Corp.11		254,000			3,388
CONSUMER DISCRETIONARY — 0.01%
Cooper-Standard Holdings Inc.5,10,11		85,450			2,361
Adelphia Recovery Trust, Series Arahova11		1,943,006			461
Adelphia Recovery Trust, Series ACC-111		3,366,231			91
Adelphia Recovery Trust, Series ACC-6B5,11		5,056,500			25
Charter Communications, Inc., Class A11		5,059			179
American Media Operations, Inc.5,10,11		295,801			3
					3,120
CONSUMER STAPLES — 0.00%
Winn-Dixie Stores, Inc.11		21,334			206
INDUSTRIALS— 0.00%
Atrium Corp.5,10,11		985			89
HEALTH CARE — 0.00%
Clarent Hospital Corp. Liquidating Trust5,11,12		331,291			13
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc.11		7,614			5
Total common stocks (cost: $15,659,000)					6,821
Warrants — 0.00%
CONSUMER DISCRETIONARY — 0.00%
Cooper-Standard Holdings Inc., warrants, expire 20175,10,11		5,096			64
Total warrants (cost: $80,000)					64
	Principal amount
Short-term securities — 4.91%		(000	)
Freddie Mac 0.17%–0.32% due 8/6–12/20/2010	$	496,235			495,919
Fannie Mae 0.20%–0.43% due 7/19–12/3/2010		271,840			271,707
Straight-A Funding LLC 0.25%–0.43% due 7/12–8/25/20103		208,686			208,597
Federal Home Loan Bank 0.18%–0.36% due 7/14/2010–2/8/2011		193,080			193,016
Jupiter Securitization Co., LLC 0.38%–0.42% due 7/29–9/24/20103		151,642			151,533
U.S. Treasury Bills 0.111%–0.325% due 8/26–9/23/2010		115,600			115,577
United Technologies Corp. 0.19% due 7/6/20103		100,000			99,997
Abbott Laboratories 0.20% due 8/16/20103		54,000			53,986
Johnson & Johnson 0.19% due 8/5/20103		53,300			53,290
General Electric Capital Corp. 0.25% due 7/1/2010		40,000			40,000
General Electric Co. 0.08% due 7/1/2010		11,100			11,100
NetJets Inc. 0.25%–0.27% due 7/7–8/19/20103		46,300			46,276
Private Export Funding Corp. 0.33% due 8/13/20103		45,000			44,979
Hewlett-Packard Co. 0.19% due 7/21/20103		35,000			34,996
Coca-Cola Co. 0.26% due 8/2/20103		32,000			31,992
AT&T Inc. 0.19% due 7/13/20103		27,300			27,298
Variable Funding Capital Company LLC 0.28% due 7/26/20103		25,000			24,992
Procter & Gamble International Funding S.C.A. 0.18% due 7/15/20103		23,000			22,998
Federal Farm Credit Banks 0.35% due 2/10/2011		10,000			9,983
Total short-term securities (cost: $1,938,075,000)					1,938,236
Total investment securities (cost: $38,292,909,000)					39,687,599
Other assets less liabilities					(226,179	)
Net assets				$	39,461,420

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

2  Coupon rate may change periodically.

3  Acquired 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 $4,911,407,000, which represented 12.45% 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  Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $257,613,000, which represented .65% of the net assets of the fund.

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

7  Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $187,111,000, which represented .47% 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.

10Acquired in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.

	Acquisition	Cost			Value			Percent of
	date(s)		(000	)		(000	)	net assets
NXP BV and NXP Funding LLC 10.00% 2013	7/17/2009	$	5,644		$	7,364			.02	%
Cooper-Standard Holdings Inc.	5/26/2010–5/27/2010		2,479			2,361			.01
Cooper-Standard Holdings Inc., warrants, expire 2017	5/27/2010		80			64			.00
Atrium Corp.	4/30/2010		89			89			.00
American Media Operations, Inc.	1/30/2009		3			3			.00
Total restricted securities		$	8,295		$	9,881			.03	%

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	DKr = Danish kroner	ILS = Israeli shekels	PLN = Polish zloty
A$ = Australian dollars	€ = Euros	¥ = Japanese yen	TRY = Turkish liras
BRL = Brazilian reais	£ = British pounds	KRW = South Korean won	UYU = Uruguayan pesos
C$ = Canadian dollars	HUF = Hungarian forints	MXN = Mexican pesos
COP = Colombian pesos	IDR = Indonesian rupiah	MYR = Malaysian ringgits

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

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 summary prospectus and 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.

MFGEFP-908-0810O-S25515

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/ John H. Smet

John H. Smet, President and

Principal Executive Officer

Date: August 31, 2010

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/ John H. Smet

John H. Smet, President and

Principal Executive Officer

Date: August 31, 2010

By /s/ Ari M. Vinocor

Ari M. Vinocor, Treasurer and

Principal Financial Officer

Date: August 31, 2010