Endowments NCSRS 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: 811-1884

Endowments

(Exact Name of Registrant as specified in charter)

P.O. Box 7650, One Market, Steuart Tower

San Francisco, California 94120

(Address of principal executive offices)

Registrant's telephone number, including area code: (415) 421-9360

Date of fiscal year end: July 31

Date of reporting period: January 31, 2006

Patrick F. Quan

Capital Research and Management Company

P.O. Box 7650, One Market, Steuart Tower

San Francisco, California 94120

(name and address of agent for service)

Copies to:

Julie Allecta, Esq.

Paul, Hastings, Janofsky & Walker LLP

55 Second Street

Twenty-Fourth Floor

San Francisco, California 94105

(Counsel for the Registrant)

ITEM 1 - Reports to Stockholders

[Logo - Capital Research and Management ^SM]

Endowments

Investments for nonprofit institutions

Semi-annual report for the six months ended January 31, 2006

Endowments^SM is managed by Capital Research and Management Company,^SM which also manages the 29 American Funds.^® The American Funds organization ranks among the nation’s three largest mutual fund families. For nearly 75 years, Capital Research has invested with a long-term focus based on thorough research and attention to risk.

Growth and Income Portfolio seeks to provide long-term growth of principal, with income and preservation of capital as secondary objectives, primarily through investments in common stocks.

Bond Portfolio seeks to provide as high a level of current income as is consistent with the preservation of capital through investments in fixed-income securities.

Figures shown are past results and are not predictive of results in 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. For the most current information and month-end results, visit americanfunds.com/endowments.

Here are returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2005 (the most recent calendar quarter):

	1 year			5 years			10 years
Growth and Income Portfolio
Average annual total return		—			+ 5.49	%		+ 10.42	%
Cumulative total return		+2.92	%		+30.63	%		+169.37	%

Bond Portfolio
Average annual total return		—			+ 6.46	%		+ 6.14	%
Cumulative total return		+1.94	%		+36.73	%		+81.53	%

The funds’ investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on page 22 for details.

Bond Portfolio’s 30-day yield as of February 28, 2006, calculated in accordance with the Securities and Exchange Commission formula, was 4.82%, which reflects a fee waiver (4.77% without the fee waiver).

The return of principal in the Bond Portfolio is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

Dear shareholders:

We are pleased to report to you at the midpoint of our 2006 fiscal year.

Growth and Income Portfolio

For the six months ended January 31, 2006, the value of an investment in the Growth and Income portfolio rose 3.1%.* Over the same period, the unmanaged Standard & Poor’s 500 Composite Index gained 4.7% and the Lipper Growth & Income Funds Index gained 6.3%.

*All percentage gain/loss figures used throughout this letter include reinvestment of all distributions.

Higher oil prices were the dominant economic story during the first half of the fund’s fiscal year. Prices increased sharply, rising more than 12% to $68 a barrel from $61 at the beginning of the period. Partly as a consequence of high oil prices, inflation rose 3.4% during calendar year 2005, its highest rate in 15 years. Reflecting inflation concerns, the Federal Reserve Board increased the federal funds rate five times during the period to its current level of 4.5%

The nation’s economy showed considerable resilience, growing 3.5% in 2005 despite rising oil prices and higher short-term interest rates. Corporate earnings also grew at a healthy rate and profit margins were at historically high levels. We consider it likely that the growth rate in the economy and corporate profits will slow during the second half of 2006.

In this environment, the stock market showed respectable gains during the six-month period. Our return modestly trailed the relevant indexes. This is attributable primarily to our holdings of the stocks of large, well-established companies that lagged the overall market. This is exactly the reverse of what happened during the speculative boom of the late ’90s when these stocks dramatically outpaced the overall market. While our investment in these companies was not rewarded in the first half of the fund’s fiscal year, we increased our exposure to them, believing that they continue to represent good value.

During the six-month period, we increased our exposure to oil stocks, which brings our energy holdings to 11.0% of the portfolio at the end of this period. While these stocks have done well, they don’t seem to fully reflect the dramatic change in the energy environment. We also reduced our exposure to the consumer discretionary sector from 10.1% to 8.0% because of our concerns about the outlook for consumer spending.

Bond Portfolio

For the six months ended January 31, 2006, the Bond Portfolio returned 0.9%, essentially matching the 0.8% return of the unmanaged Lehman Brothers Aggregate Bond Index. In comparison, the Lipper Corporate Debt A-Rated Bond Funds Average gained 0.5% for the same period.

During this fiscal period, the Federal Reserve Board continued its program of reducing monetary accommodation by raising the federal funds rate at a measured pace. Although the market expects further tightening in the months ahead, there remains some uncertainty as to the number of hikes remaining. Part of this uncertainty stems from the possibility of slower economic growth during the second half of 2006 and the potential for high energy prices to amplify inflation. Another part owes to the change of leadership at the Fed. Longtime chairman Alan Greenspan retired on the last day of the fiscal period and has been succeeded by Ben Bernanke.

In this environment, short-term yields continued to rise, largely in step with the Fed’s rate hikes. Long-term yields, which had been relatively steady early in the year, began to rise toward the end of the period. The Treasury yield curve continued to flatten. By January 31, the yields on two-year and 10-year Treasuries were virtually the same compared to a quarter percentage point difference at the beginning of the fiscal year.

Rising yields do not affect all bonds equally, and that was quite evident this period. Returns on longer maturity debt (10 years or more) were generally weaker than returns on short-term debt. Within the investment-grade category, higher quality bonds generally outperformed.

The mix of securities in the Bond Portfolio changed slightly over the course of the reporting period. One change was among mortgage-backed obligations. During the latter half of 2005, weaker valuations for some of these securities made them relatively more attractive from a long-term perspective. Consequently, mortgage-backed securities increased to 18.3% of portfolio holdings from 13.3% at the start of the period.

Corporate bonds account for the lion’s share of the Bond Portfolio. Returns for this sector varied, reflecting the broad mix of industries it encompasses. In general, holdings in commercial banks, insurance companies, airlines and non-U.S. companies bolstered returns, while automobiles and household durables hampered results. Corporate bonds totaled 51.3% of portfolio holdings at the close of the period, down from 53.6% six months ago.

Finally, the portfolio’s duration of 3.9 years at the end of the period remained significantly lower than the Lehman index at 4.6 years. We thus remain in a defensive posture during this period of rising interest rates.

As always, we welcome your comments and questions.

Cordially,

/s/ Robert G. O'Donnell

Robert G. O’Donnell

Vice Chairman of the Board

and Principal Executive Officer

/s/ Claudia P. Huntington

Claudia P. Huntington
President

February 27, 2006

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

Summary investment portfolio

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

Growth and Income Portfolio

January 31, 2006

unaudited

Industry sector diversification

[begin pie chart]

Information technology	13.29%
Consumer staples	13.13%
Financials	12.95%
Health care	12.37%
Short-term securities & other assets less liabilities	11.57%
Energy	10.97%
Consumer discretionary	7.98%
Industrials	6.81%
Materials	3.88%
Telecommunication services	2.30%
Convertible securities	0.81%
Utilities	0.14%
Miscellaneous	3.80%

[end pie chart]

						Percent
				Market		of net
Common stocks - 87.62%	Shares			value		assets

Information technology - 13.29%
Microsoft Corp.	118,000		$	3,321,700		3.30	%
Intel Corp.	83,000			1,765,410		1.75
Cisco Systems, Inc. (1)	79,000			1,467,030		1.46
Nokia Corp. (ADR)	78,000			1,433,640		1.43
Oracle Corp. (1)	90,000			1,131,300		1.12
Texas Instruments Inc.	28,000			818,440		.81
Other securities				3,439,235		3.42
				13,376,755		13.29

Consumer staples - 13.13%
Altria Group, Inc.	35,000			2,531,900		2.51
Wal-Mart Stores, Inc.	53,000			2,443,830		2.43
PepsiCo, Inc.	32,000			1,829,760		1.82
Walgreen Co.	22,000			952,160		.95
Coca-Cola Co.	20,000			827,600		.82
Bunge Ltd.	14,000			825,440		.82
WD-40 Co.	26,000			816,660		.81
Other securities				2,990,045		2.97
				13,217,395		13.13

Financials - 12.95%
Wells Fargo & Co.	30,000			1,870,800		1.86
Berkshire Hathaway Inc., Class A (1)	20			1,789,800		1.78
American International Group, Inc.	25,000			1,636,500		1.63
American Express Co.	21,000			1,101,450		1.09
Bank of America Corp.	22,000			973,060		.97
Jefferson-Pilot Corp.	15,000			874,950		.87
Other securities				4,780,770		4.75
				13,027,330		12.95

Health care - 12.37%
Medtronic, Inc.	40,000			2,258,800		2.25
Sanofi-Aventis	15,000			1,371,907		1.36
Roche Holding AG	8,000			1,260,924		1.25
Eli Lilly and Co.	22,000			1,245,640		1.24
Abbott Laboratories	20,000			863,000		.86
Merck & Co., Inc.	25,000			862,500		.86
Novo Nordisk A/S, Class B	15,000			838,016		.83
Other securities				3,747,660		3.72
				12,448,447		12.37

Energy - 10.97%
Exxon Mobil Corp.	52,000			3,263,000		3.24
Royal Dutch Shell PLC, Class B (ADR)	33,000			2,369,400		2.36
Chevron Corp.	35,000			2,078,300		2.07
Halliburton Co.	20,000			1,591,000		1.58
ConocoPhillips	15,000			970,500		.96
Other securities				764,700		.76
				11,036,900		10.97

Consumer discretionary - 7.98%
Lowe's Companies, Inc.	27,000			1,715,850		1.70
Target Corp.	30,000			1,642,500		1.63
Time Warner Inc.	78,000			1,367,340		1.36
Walt Disney Co.	54,000			1,366,740		1.36
Other securities				1,939,600		1.93
				8,032,030		7.98

Industrials - 6.81%
Lockheed Martin Corp.	23,000			1,555,950		1.55
Caterpillar Inc.	20,000			1,358,000		1.35
Avery Dennison Corp.	15,000			896,100		.89
Other securities				3,039,280		3.02
				6,849,330		6.81

Materials - 3.88%
AptarGroup, Inc.	15,000			846,600		.84
Other securities				3,056,186		3.04
				3,902,786		3.88

Telecommunication services - 2.30%
BellSouth Corp.	30,000			863,100		.85
Sprint Nextel Corp.	36,000			824,040		.82
Other securities				633,200		.63
				2,320,340		2.30

Utilities - 0.14%
Other securities				138,915		.14

Miscellaneous - 3.80%
Other common stocks in initial period of acquisition				3,819,710		3.80

Total common stocks (cost: $74,550,187)				88,169,938		87.62


						Percent
				Market		of net
Convertible securities - 0.81%				value		assets

Information technology - 0.81%
Other securities				812,000		.81

Total convertible securities (cost: $830,704)				812,000		.81


	Principal					Percent
	amount			Market		of net
Short-term securities - 11.80%	(000	)		value		assets


Preferred Receivables Funding Corp. 4.34% due 2/2/2006 (2)	1,800			1,799,565		1.79
Freddie Mac 4.40% due 2/28/2006	1,800			1,793,840		1.78
Scripps (E.W.) Co. 4.26% due 02/01/2006 (2)	1,600			1,599,810		1.59
Cloverleaf International Holdings, SA 4.26% due 2/2/2006 (2)	1,400			1,399,668		1.39
Anheuser-Busch Companies, Inc. 4.29% due 2/23/2006 (2)	1,400			1,396,154		1.39
AIG Funding, Inc. 4.47% due 2/27/2006	1,200			1,195,976		1.19
Federal Home Loan Bank 4.215% due 3/3/2006	1,000			996,364		.99
Coca-Cola Co. 4.33% due 3/6/2006	1,000			995,907		.99
Wal-Mart Stores Inc. 4.38% due 02/22/2006 (2)	700			698,126		.69

Total short-term securities (cost: $11,875,410)				11,875,410		11.80


Total investment securities (cost: $87,256,301)				100,857,348		100.23
Other assets less liabilities				(229,378	)	(.23	)

Net assets			$	100,627,970		100.00	%

"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

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) Security did not produce income during the last 12 months.
(2) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $6,893,323, which represented 6.85% of the net assets of the fund.


ADR = American Depositary Receipts

See Notes to Financial Statements

Summary investment portfolio

Bond Portfolio

January 31, 2006

unaudited

[begin pie chart]

Mortgage- and asset-backed obligations	23.04%
U.S. government & government agency bonds & notes	12.02%
Municipals	1.94%
Non-U.S. government bonds & notes	0.69%
Preferred securities	6.73%
Short-term securities & other assets less liabilities	4.29%

Financials	19.51%
Consumer discretionary	8.70%
Industrials	6.50%
Telecommunication services	5.39%
Utilities	4.83%	Corporate bonds & notes	51.29%
Materials	2.66%
Health care	1.35%
Energy	1.13%
Consumer staples	1.00%
Information technology	0.22%

[end pie chart]

		Principal				Percent
		amount			Market	of net
Bonds & notes - 88.98%		(000	)		value	assets

Corporate bonds & notes - 51.29%

Financials - 19.51%
Washington Mutual, Inc.:
5.625% 2007	$	375		$	377,142
4.90% 2010 (1)		400			400,808
Washington Mutual Bank, FA 6.875% 2011		250			268,711	1.79	%
Resona Bank, Ltd. 5.85% (undated) (1) (2)		475			473,052	.81
Sumitomo Mitsui Banking Corp. 5.625% (undated) (1) (2)		450			447,377	.77
TuranAlem Finance BV 8.50% 2015 (2)		400			426,500	.73
SocGen Real Estate Co. LLC, Series A, 7.64% (undated) (1) (2)		375			388,934	.67
JPM Capital Trust I, cumulative capital securities trust, 7.54% 2027		345			363,465	.62
Lazard Group LLC 7.125% 2015		315			330,581	.57
BNP Paribas 5.186% noncumulative (undated) (1) (2)		300			288,791	.49
Household Finance Corp. 6.375% 2011		125			131,789	.22
Other securities					7,494,510	12.84
					11,391,660	19.51

Consumer discretionary - 8.70%
Residential Capital Corp.:
5.67% 2008 (1)		300			302,927
6.375% 2010		250			256,512
General Motors Acceptance Corp.:
7.25% 2011		455			439,441
6.61% - 7.75% 2010 - 2014 (1)		495			478,727	2.53
Ford Motor Credit Co.:
7.375% 2009		150			140,451
7.875% 2010		650			612,186	1.29
DaimlerChrysler North America Holding Corp. 8.00% 2010		600			655,403	1.12
Other securities					2,191,601	3.76
					5,077,248	8.70

Industrials - 6.50%
Continental Airlines, Inc.,:
Series 2001-1, Class A-2, 6.503% 2011		385			376,985
Series 2000-1, Class A-1, 8.048% 2022 (3)		201			207,220	1.00
Deere & Co. 8.95% 2019		370			409,072	.70
Hutchison Whampoa International Ltd. 7.00% 2011 (2)		375			402,606	.69
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 2013 (2) (3)		342			364,625	.63
Bombardier Inc. 6.30% 2014 (2)		375			338,437	.58
American Airlines, Inc., Series 2001-2, Class A-1, 6.978% 2012 (3)		325			331,657	.57
General Electric Capital Corp., Series A, 6.00% 2012		125			131,061	.22
Other securities					1,233,189	2.11
					3,794,852	6.50

Telecommunication services - 5.39%
Nextel Communications, Inc.:
6.875% 2013		500			524,657
7.375% 2015		150			158,645	1.17
France Télécom 7.75% 2011 (1)		400			444,250	.76
AT&T Wireless Services, Inc. 8.125% 2012		350			402,863	.69
Other securities					1,615,925	2.77
					3,146,340	5.39

Utilities - 4.83%
Homer City Funding LLC 8.734% 2026 (3)		297			345,760	.59
Exelon Generation Co., LLC 6.95% 2011		300			322,269	.55
Other securities					2,150,464	3.69
					2,818,493	4.83

Materials - 2.66%
Norske Skogindustrier ASA 7.625% 2011 (2)		500			529,924	.91
Georgia-Pacific Corp. 7.50% 2006		353			355,647	.61
Other securities					669,775	1.14
					1,555,346	2.66

Health Care - 1.35%
Other securities					791,277	1.35

Energy - 1.13%
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 2014 (2) (3)		300			303,750	.52
Other securities					353,618	.61
					657,368	1.13

Consumer staples - 1.00%
Wal-Mart Stores, Inc. 5.25% 2035		205			196,247	.34
Other securities					386,818	.66
					583,065	1.00

Information Technology - 0.22%
Other securities					128,160	.22

Mortgage-and asset-backed obligations (3) - 23.04%
Fannie Mae:
5.50% 2035		466			461,014
6.00 % -12.042% 2010- 2041 (1)		1,385			1,440,260	3.26
Freddie Mac 4.00% - 8.75% 2008 - 2036		887			865,880	1.48
ARG Funding Corp.:
Series 2005-2, Class A-1, AMBAC insured, 4.54% 2009 (2)		500			495,867
Series 2005-1, Class A-3, MBIA insured, 4.29% 2011 (2)		250			242,074	1.26
Countrywide Alternative Loan Trust 4.326% - 6.00% 2035		716			709,241	1.22
Chase Commercial Mortgage Securities Corp.:
Series 1998-2, Class A-2, 6.39% 2030		359			370,072
Series 2000-1, Class A-2, 7.757% 2032		234			250,591	1.06
Morgan Stanley Capital I, Inc., Series 1998-HF2, Class A-2, 6.48% 2030		434			445,548	.76
Residential Funding Mortgage Securities I, Inc., Series 2004-SA1, Class A-II, 4.336% 2034 (1)		368			359,422	.62
Wells Fargo Home Equity Trust, Series 2004-2, Class AI-5, 4.89% 2028		334			325,062	.56
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-2, 6.226% 2035		322			324,658	.56
SBA CMBS Trust, Series 2005-1D, 6.219% 2035 (2)		320			321,148	.55
Crown Castle Towers LLC, Series 2005-1, Class D, 5.612% 2035 (2)		325			315,960	.54
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 2026 (2)		290			312,226	.53
Other securities					6,213,211	10.64
					13,452,234	23.04

U.S. government & government agency bonds & notes - 12.02%
U.S. Treasury:
3.625% 2009		1,475			1,434,202
3.875% 2009 (4)		753			796,688
14.00% 2011		450			482,553
2.00% 2014 (4)		267			267,250
12.50% 2014		1,200			1,509,372
6.875% 2025		1,325			1,681,716	10.57
Freddie Mac:
6.625% 2009		125			132,420
5.75% 2010		250			334,439	.80
Other securities					380,126	.65
					7,018,766	12.02

Municipals - 1.94%
State of California, Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2003-A1, 6.25% 2033		325			355,179	.61
Other securities					775,479	1.33
					1,130,658	1.94

Non-U.S. government bonds & notes - 0.69%
Other securities					399,952	.69


Total bonds & notes (cost: $52,212,814)					51,945,419	88.98


						Percent
					Market	of net
Preferred securities - 6.73%		Shares			value	assets

Financials - 6.73%
Fannie Mae, Series O, 7.00% preferred (2)		15,000			822,188	1.41
BNP U.S. Funding LLC, Series A, 7.738% noncumulative preferred (1) (2)		375,000			391,290
BNP Paribas Capital Trust 9.003% noncumulative trust preferred (1) (2)		150,000			172,723	.97
HSBC Capital Funding LP, Series 1, 9.547% noncumulative step-up perpetual preferred (1) (2)		400,000			465,820	.80
Fuji JGB Investment LLC, Series A, 9.87% noncumulative preferred (1) (2)		360,000			396,178	.68
Deutsche Bank Capital Funding Trust I, 7.872% (1) (2)		300,000			323,567	.55
Resona Preferred Global Securities (Cayman) Ltd. 7.191% (1) (2)		150,000			158,116	.27
Other securities					1,198,903	2.05

Total preferred securities (cost: $3,738,829)					3,928,785	6.73

		Principal				Percent
		amount			Market	of net
Short-term securities - 3.25%		(000	)		value	assets


General Electric Capital Corp. 4.47% due 2/1/2006	$	1,300			1,299,839	2.23
Wal-Mart Stores Inc. 4.38% due 2/22/2006 (2)		600			598,393	1.02

Total short-term securities (cost: $1,898,233)					1,898,232	3.25


Total investment securities (cost: $57,849,876)					57,772,436	98.96
Other assets less liabilities					608,477	1.04

Net assets				$	58,380,913	100.00	%


"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

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) Coupon rate may change periodically.
(2) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio,
was $14,528,642, which represented 24.89% of the net assets of the fund.
(3) Pass-through securities backed by a pool of mortgages or other loans on which principal payments are periodically made.
Therefore, the effective maturities are shorter than the stated maturities.
(4) Index-linked bond whose principal amount moves with a government retail price index.


See Notes to Financial Statements

Financial statements

unaudited

Statements of assets and liabilities
at January 31, 2006
		Growth and Income Portfolio			Bond Portfolio

Assets:
Investment securities at market (cost: $87,256,301 and $57,849,876, respectively)	$	100,857,348		$	57,772,436
Cash		146,287			147,665
Receivables for:
Sales of investments		550,076			265
Sales of fund's shares		45			2,605
Dividends and interest		94,922			742,678
Total assets		101,648,678			58,665,649

Liabilities:
Payables for:
Purchases of investments		955,992			250,000
Repurchases of fund's shares		7,688			-
Investment advisory services		38,160			22,224
Other fees and expenses		18,868			12,512
Total liabilities		1,020,708			284,736
Net assets at January 31, 2006	$	100,627,970		$	58,380,913

Net assets consist of:
Capital paid in on shares of beneficial interest	$	84,748,070		$	59,512,239
Undistributed (distributions in excess of) net investment income		226,984			(646,236	)
Undistributed (accumulated) net realized gain (loss)		2,051,869			(407,375	)
Net unrealized appreciation (depreciation)		13,601,047			(77,715	)
Net assets at January 31, 2006	$	100,627,970		$	58,380,913

Shares of beneficial interest issued and outstanding - unlimited shares authorized
Shares outstanding		6,812,509			3,587,363
Net asset value per share	$	14.77		$	16.27

See Notes to Financial Statements


Statements of operations
for the six months ended January 31, 2006					unaudited

		Growth and Income Portfolio			Bond Portfolio
Investment income:
Income:
Dividends	$	794,852		$	48,225
Interest		178,120			1,635,541
Total income		972,972			1,683,766

Fees and expenses:
Investment advisory services		254,361			150,146
Transfer agent services		240			209
Reports to shareholders		9,498			3,294
Registration statement and prospectus		12,200			8,124
Trustees' compensation		31,490			20,993
Trustees' travel expenses		14,744			8,778
Auditing		19,068			19,060
Legal		27,321			27,321
Custodian		664			556
Other		6,598			1,750
Total fees and expenses before waiver		376,184			240,231
Less waiver of fees and expenses:
Investment advisory services		25,436			15,014
Total fees and expenses after waiver		350,748			225,217
Net investment income		622,224			1,458,549

Net realized gain (loss) and unrealized appreciation (depreciation)
on investments and non-U.S. currency:
Net realized gain (loss) on:
Investments		2,122,769			(68,122	)
Non-U.S. currency transactions		(1,556	)		99,045
		2,121,213			30,923
Net unrealized appreciation (depreciation) on:
Investments		142,102			(1,009,413	)
Non-U.S. currency translations		658			917
		142,760			(1,008,496	)
Net realized gain (loss) and unrealized appreciation (depreciation)
on investments and non-U.S. currency		2,263,973			(977,573	)
Net increase in net assets resulting from operations	$	2,886,197		$	480,976

See Notes to Financial Statements


Statements of changes in net assets

GROWTH AND INCOME PORTFOLIO

		Six months ended January 31 2006*			Year ended July 31, 2005

Operations:
Net investment income	$	622,224		$	1,592,287
Net realized gain on investments and non-U.S. currency transactions		2,121,213			4,312,507
Net unrealized appreciation on investments and non-U.S. currency translations		142,760			3,705,885
Net increase in net assets resulting from operations		2,886,197			9,610,679

Dividends and distributions paid to shareholders:
Dividends from net investment income		(737,596	)		(1,400,093	)
Distributions from net realized gain on investments		(3,411,060	)		(2,564,054	)
Total dividends and distributions paid to shareholders		(4,148,656	)		(3,964,147	)

Capital share transactions		(4,419,710	)		10,635,416

Total (decrease) increase in net assets		(5,682,169	)		16,281,948

Net assets:
Beginning of period		106,310,139			90,028,191
End of period (including undistributed
net investment income: $226,984 and $342,356, respectively)	$	100,627,970		$	106,310,139



BOND PORTFOLIO

		Six months endedJanuary 31 2006*			Year ended July 31, 2005
Operations:
Net investment income	$	1,458,549		$	2,916,766
Net realized gain on investments and non-U.S. currency transactions		30,923			604,275
Net unrealized depreciation
on investments and non-U.S. currency translations		(1,008,496	)		(468,296	)
Net increase in net assets resulting from operations		480,976			3,052,745

Dividends paid to shareholders from net investment income		(1,741,754	)		(3,464,879	)

Capital share transactions		(5,131,328	)		5,960,099

Total (decrease) increase in net assets		(6,392,106	)		5,547,965

Net assets:
Beginning of period		64,773,019			59,225,054
End of period (including distributions in excess of
net investment income: $646,236 and $363,031, respectively)	$	58,380,913		$	64,773,019

^*Unaudited.
See Notes to Financial Statements

Notes to financial statements unaudited

1.	Organization and significant accounting policies

Organization - ENDOWMENTS (the “trust") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company and has initially issued two series of shares, Growth and Income Portfolio and Bond Portfolio (the “funds"). Growth and Income Portfolio seeks to provide long-term growth of principal, with income and preservation of capital as secondary objectives, primarily through investments in common stocks. Bond Portfolio seeks to provide as high a level of current income as is consistent with the preservation of capital through investments in fixed-income securities.

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

Security valuation - Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (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 valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the funds to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the trust's board of trustees. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income - Security transactions are recorded by the funds 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. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Dividends and distributions to shareholders - Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

Non-U.S. currency translation - Assets and liabilities, including investment securities, denominated in non-U.S. currencies 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. In the accompanying financial statements, the effects of changes in non-U.S. 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 non-U.S. currencies are disclosed separately.

Mortgage dollar rolls - Bond Portfolio may enter into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Each mortgage dollar roll is treated as a financing transaction; therefore, any gain or loss is considered unrealized until the roll reaches completion. Risks may arise due to the delayed payment date and the potential inability of counterparties to complete the transaction. Income is generated as consideration for entering into these transactions and is included in interest income on the accompanying financial statements.

2.	Non-U.S. investments

Investment risk - The risks of investing in securities of non-U.S. issuers may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.

Taxation - Dividend and interest income is recorded net of non-U.S. withholding taxes paid.

3. Federal income taxation and distributions

The funds comply with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intend to distribute substantially all of their net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made.

Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses; short-term capital gains and losses; unrealized appreciation of certain investments in non-U.S. securities; 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 funds for financial reporting purposes. As of January 31, 2006, the cost of investment securities for federal income tax purposes was $87,256,301 and $58,579,609 for Growth and Income Portfolio and Bond Portfolio, respectively.

As of January 31, 2006, the components of distributable earnings on a tax basis were as follows:

		Growth and Income Portfolio			Bond Portfolio
Undistributed net investment income and non-U.S.currency gains	$	270,725		$	317,935
Accumulated short-term capital losses		(131,737	)		(428,550	)
Undistributed (accumulated) long-term capital gains (losses)		2,185,161			(202,211	)
Gross unrealized appreciation on investment securities		15,212,321			779,690
Gross unrealized depreciation on investment securities		(1,611,274	)		(1,586,863	)
Net unrealized appreciation (depreciation) on investment securities		13,601,047			(807,173	)

Accumulated short-term capital losses on the previous page include a capital loss carryforward of $197,714 expiring in 2011 for Bond Portfolio. The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The funds will not make distributions from capital gains while a capital loss carryforward remains in that fund. During the six months ended January 31, 2006, the Growth and Income Portfolio realized, on a tax basis, a net capital gain of $2,122,769. During the six months ended January 31, 2006, the Bond Portfolio realized, on a tax basis, a net capital loss of $433,047, which includes losses of $240,584 that were realized during the period November 1, 2004 through July 31, 2005.

For the six months ended January 31, 2006, the Growth and Income Portfolio made distributions from realized short-term capital gains in the amount of $514,877 and from long-term capital gains in the amount of $2,896,183.

4. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the funds’ investment adviser, is the parent company of American Funds Service Company ("AFS"), the funds’ transfer agent.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on an annual rate of 0.50% on the first $150 million of each fund’s daily net assets and 0.40% on such assets in excess of $150 million.

The Investment Advisory and Service Agreement provides for a fee reduction to the extent that annual operating expenses exceed 0.75% of the average daily net assets of each fund. Expenses related to interest, taxes, brokerage commissions, transaction costs and extraordinary items are not subject to these limitations. For the six months ended January 31, 2006, no such fee reductions were required, but CRMC is voluntarily waiving 10% of investment advisory services fees. During the six months ended January 31, 2006, total investment advisory services fees waived by CRMC were $25,436 and $15,014 for Growth and Income Portfolio and Bond Portfolio, respectively. As a result, the fees shown on the accompanying financial statements of $254,361 and $150,146, for Growth and Income Portfolio and Bond Portfolio, respectively, were both reduced to an annualized rate of 0.450% of average daily net assets.

Transfer agent services - The funds has a transfer agent agreement with AFS. Under this agreement, the funds compensate AFS for transfer agent services including shareholder recordkeeping and communications.

Affiliated officers and trustees - Officers and certain trustees of the trust are or may be considered to be affiliated with CRMC and AFS. No affiliated officers or trustees received any compensation directly from the funds.

5. Capital share transactions

Capital share transactions in the funds were as follows:

	Sales			Reinvestments of dividends and distributions			Repurchases					Net (decrease) increase
		Amount	Shares		Amount	Shares		Amount		Shares			Amount		Shares
Six months ended January 31, 2006
Growth and Income Portfolio	$	6,283,245	423,563	$	3,918,703	267,816	$	(14,621,658	)	(991,556	)	$	(4,419,710	)	(300,177	)
Bond Portfolio		2,277,368	139,322		1,409,334	86,328		(8,818,030	)	(534,847	)		(5,131,328	)	(309,197	)

Year ended July 31, 2005
Growth and Income Portfolio	$	12,669,940	869,849	$	3,499,712	240,757	$	(5,534,236	)	(383,646	)	$	10,635,416		726,960
Bond Portfolio		7,665,322	455,477		2,628,385	157,099		(4,333,608	)	(259,090	)		5,960,099		353,486

6. Investment transactions

Growth and Income Portfolio and Bond Portfolio made purchases of investment securities of $10,318,592 and $13,760,999 and sales of investment securities of $18,610,768 and $17,982,490, respectively, during the six months ended January 31, 2006. Short-term securities were excluded.

Financial highlights (1)

Growth and Income Portfolio
						Income (loss) from investment operations(2)								Dividends and distributions

				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	)		Distributions (from capital gains	)		Total dividends and distributions			Net asset value, end of period	Total return			Net assets, end of period (in millions	)	Ratio of expenses to average net assets before waivers				Ratio of expenses to average net assets after waivers		(3	)	Ratio of net income to average net assets

Six months ended 01/31/2006	(4	)	$	14.95	$	.09	$	.37		$	.46		$	(.11	)	$	(.53	)	$	(.64	)	$	14.77	3.13	%	$	101		.74	%	(5	)	.69	%	(5	)	1.22	%	(5	)
Year ended 7/31/2005				14.10		.24		1.20			1.44			(.21	)		(.38	)		(.59	)		14.95	10.33			106		.69				.66				1.60
Year ended 7/31/2004				12.57		.20		1.53			1.73			(.20	)		-			(.20	)		14.10	13.81			90		.64				.64				1.43
Year ended 7/31/2003				11.61		.22		.94			1.16			(.20	)		-			(.20	)		12.57	10.18			76		.68				.68				1.88
Year ended 7/31/2002				13.11		.23		(1.33	)		(1.10	)		(.24	)		(.16	)		(.40	)		11.61	(8.60	)		63		.66				.66				1.81
Year ended 7/31/2001				11.94		.30		1.81			2.11			(.34	)		(.60	)		(.94	)		13.11	18.23			61		.71				.71				2.32

Bond Portfolio
						Income from investment operations(2)								Dividends and distributions

				Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized	)		Total from investment operations			Dividends (from net investment income	)		Distributions (from gains	)		Total dividends distributions			Net asset value, of period	Total return			Net assets, end of (in millions	)	Ratio of expenses to average net assets before waivers				Ratio of expenses to average net assets after waivers		(3	)	Ratio of net income to net assets

Six months ended 01/31/2006	(4	)	$	16.62	$	.40	$	(.26	)	$	.14		$	(.49	)	$	-		$	(.49	)	$	16.27	.85	%	$	58		.80	%	(5	)	.75	%	(5	)	4.86	%	(5	)
Year ended 7/31/2005				16.72		.78		.05			.83			(.93	)		-			(.93	)		16.62	5.07			65		.74				.71				4.61
Year ended 7/31/2004				16.57		.83		.22			1.05			(.90	)		-			(.90	)		16.72	6.37			59		.70				.70				4.93
Year ended 7/31/2003				15.93		.89		.77			1.66			(1.02	)		-			(1.02	)		16.57	10.64			59		.71				.71				5.38
Year ended 7/31/2002				16.56		.99		(.53	)		.46			(1.09	)		-			(1.09	)		15.93	2.82			50		.70				.70				6.07
Year ended 7/31/2001				15.79		1.16		.77			1.93			(1.16	)		-			(1.16	)		16.56	12.67			46		.79				.75				7.18

	Six months ended January 31,		Year ended July 31
Portfolio turnover rate	2006(4	)	2005		2004		2003		2002		2001
Growth and Income Portfolio	11	%	31	%	32	%	29	%	50	%	49	%
Bond Portfolio	24	%	51	%	36	%	25	%	70	%	48	%

(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) The ratios in this column reflect the impact, if any, of certain waivers from CRMC.

During some of the periods shown, CRMC reduced fees for investment advisory services.

(4) Unaudited.

(5) Annualized.

See Notes to Financial Statements

Expense example unaudited

As a shareholder of the funds, you incur certain ongoing costs, including management fees and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the funds so you can compare these costs with the ongoing costs of investing in other mutual funds. The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2005, through January 31, 2006).

Actual expenses:

The first line for each fund in the table below 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. Shareholders may be subject to fees charged by financial intermediaries. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Hypothetical example for comparison purposes:

The second line for each fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of the fund. 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 funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Shareholders may be subject to fees charged by financial intermediaries. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

	Beginning account value 8/1/2005		Ending account value 1/31/2006		Expenses paid during period*		Annualized expense ratio

Growth and Income Portfolio -- actual return	$	1,000.00	$	1,031.32	$	3.53		.69	%
Growth and Income Portfolio -- assumed 5% return		1,000.00		1,021.73		3.52		.69
Bond Portfolio -- actual return		1,000.00		1,008.53		3.80		.75
Bond Portfolio -- assumed 5% return		1,000.00		1,021.42		3.82		.75

* Expenses 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 (184), and divided by 365 (to reflect the one-half year period).

Office of the trust

One Market

Steuart Tower, Suite 1800

Mailing address: P.O. Box 7650

San Francisco, CA 94120-7650

Investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

Transfer agent for shareholder accounts

American Funds Service Company

Institutional Investment Services/HOST

P.O. Box 25065

Santa Ana, CA 92799-5965

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Counsel

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, CA 90071-2228

For more information about any of the American Funds, please ask your investment professional

for a prospectus.

“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website at americanfunds.com or upon request by calling American Funds Service Company (AFS) at 800/421-0180. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the ENDOWMENTS website at americanfunds.com/endowments and on the SEC website.

A complete January 31, 2006, portfolio of ENDOWMENTS’ investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

ENDOWMENTS 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. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of ENDOWMENTS, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds.

[Logo - Capital Research and Management ^SM]

The Capital Group Companies

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

Lit. No. MFGESR-985-0306P

Litho in USA REG/PL/9141-S4916

Printed on recycled paper

ITEM 2 - Code of Ethics

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

ITEM 3 - Audit Committee Financial Expert

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

ITEM 4 - Principal Accountant Fees and Services

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

ITEM 5 - Audit Committee of Listed Registrants

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

ITEM 6 - Schedule of Investments

[Logo - American Funds®]

Endowments, Growth and Income Portfolio^SM

Investment portfolio

January 31, 2006

unaudited

Common stocks — 87.62%	Shares			Market value

INFORMATION TECHNOLOGY — 13.29%
Microsoft Corp.		118,000		$	3,321,700
Intel Corp.		83,000			1,765,410
Cisco Systems, Inc.¹		79,000			1,467,030
Nokia Corp. (ADR)		78,000			1,433,640
Oracle Corp.¹		90,000			1,131,300
Texas Instruments Inc.		28,000			818,440
International Business Machines Corp.		10,000			813,000
Analog Devices, Inc.		20,000			795,400
Linear Technology Corp.		15,000			558,150
Dell Inc.¹		17,000			498,270
EMC Corp.¹		33,000			442,200
Symbol Technologies, Inc.		26,900			332,215
					13,376,755


CONSUMER STAPLES — 13.13%
Altria Group, Inc.		35,000			2,531,900
Wal-Mart Stores, Inc.		53,000			2,443,830
PepsiCo, Inc.		32,000			1,829,760
Walgreen Co.		22,000			952,160
Coca-Cola Co.		20,000			827,600
Bunge Ltd.		14,000			825,440
WD-40 Co.		26,000			816,660
L’Oréal SA		10,000			809,750
General Mills, Inc.		15,500			753,455
Avon Products, Inc.		26,500			750,480
Sara Lee Corp.		37,000			676,360
					13,217,395


FINANCIALS — 12.95%
Wells Fargo & Co.		30,000			1,870,800
Berkshire Hathaway Inc., Class A¹		20			1,789,800
American International Group, Inc.		25,000			1,636,500
American Express Co.		21,000			1,101,450
Bank of America Corp.		22,000			973,060
Jefferson-Pilot Corp.		15,000			874,950
Bank of New York Co., Inc.		25,000			795,250
U.S. Bancorp		25,000			747,750
Fulton Financial Corp.		40,000			718,000
SunTrust Banks, Inc.		10,000			714,500
Citigroup Inc.		15,000			698,700
St. Paul Travelers Companies, Inc.		13,000			589,940
Marsh & McLennan Companies, Inc.		17,000			516,630
					13,027,330


HEALTH CARE — 12.37%
Medtronic, Inc.		40,000		$	2,258,800
Sanofi-Aventis		15,000			1,371,907
Roche Holding AG		8,000			1,260,924
Eli Lilly and Co.		22,000			1,245,640
Abbott Laboratories		20,000			863,000
Merck & Co., Inc.		25,000			862,500
Novo Nordisk A/S, Class B		15,000			838,016
Medco Health Solutions, Inc.¹		15,000			811,500
Becton, Dickinson and Co.		11,000			712,800
Bristol-Myers Squibb Co.		30,000			683,700
Pfizer Inc		25,000			642,000
Johnson & Johnson		8,000			460,320
Amgen Inc.¹		6,000			437,340
					12,448,447


ENERGY — 10.97%
Exxon Mobil Corp.		52,000			3,263,000
Royal Dutch Shell PLC, Class B (ADR)		33,000			2,369,400
Chevron Corp.		35,000			2,078,300
Halliburton Co.		20,000			1,591,000
ConocoPhillips		15,000			970,500
Schlumberger Ltd.		6,000			764,700
					11,036,900


CONSUMER DISCRETIONARY — 7.98%
Lowe’s Companies, Inc.		27,000			1,715,850
Target Corp.		30,000			1,642,500
Time Warner Inc.		78,000			1,367,340
Walt Disney Co.		54,000			1,366,740
Home Depot, Inc.		20,000			811,000
Gannett Co., Inc.		10,000			618,000
TJX Companies, Inc.		20,000			510,600
					8,032,030


INDUSTRIALS — 6.81%
Lockheed Martin Corp.		23,000			1,555,950
Caterpillar Inc.		20,000			1,358,000
Avery Dennison Corp.		15,000			896,100
3M Co.		9,000			654,750
Northrop Grumman Corp.		10,000			621,300
Illinois Tool Works Inc.		7,000			590,030
General Electric Co.		18,000			589,500
United Technologies Corp.		10,000			583,700
					6,849,330


MATERIALS — 3.88%
AptarGroup, Inc.		15,000			846,600
Air Products and Chemicals, Inc.		13,000			801,970
Alcoa Inc.		22,000			693,000
International Paper Co.		20,000			652,600
Dow Chemical Co.		14,000			592,200
International Flavors & Fragrances Inc.		9,600			316,416
					3,902,786



TELECOMMUNICATION SERVICES — 2.30%
BellSouth Corp.		30,000		$	863,100
Sprint Nextel Corp.		36,000			824,040
Verizon Communications Inc.		20,000			633,200
					2,320,340


UTILITIES — 0.14%
Duke Energy Corp.		4,900			138,915

MISCELLANEOUS — 3.80%
Other common stocks in initial period of acquisition					3,819,710

Total common stocks (cost: $74,550,187)					88,169,938



Convertible securities — 0.81%		Principal amount (000	)

INFORMATION TECHNOLOGY — 0.81%
Lucent Technologies Inc. 8.00% convertible subordinated notes 2031	$	800			812,000

Total convertible securities (cost: $830,704)					812,000


Short-term securities — 11.80%

Preferred Receivables Funding Corp. 4.34% due 2/2/2006²		1,800			1,799,565
Freddie Mac 4.40% due 2/28/2006		1,800			1,793,840
Scripps (E.W.) Co. 4.26% due 2/1/2006²		1,600			1,599,810
Cloverleaf International Holdings, SA 4.26% due 2/2/2006²		1,400			1,399,668
Anheuser-Busch Companies, Inc. 4.29% due 2/23/2006²		1,400			1,396,154
AIG Funding, Inc. 4.47% due 2/27/2006		1,200			1,195,976
Federal Home Loan Bank 4.215% due 3/3/2006		1,000			996,364
Coca-Cola Co. 4.33% due 3/6/2006		1,000			995,907
Wal-Mart Stores Inc. 4.38% due 2/22/2006²		700			698,126

Total short-term securities (cost: $11,875,410)					11,875,410


Total investment securities (cost: $87,256,301)					100,857,348
Other assets less liabilities					(229,378	)

Net assets				$	100,627,970

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

¹ Security did not produce income during the last 12 months.

² Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $6,893,323, which represented 6.85% of the net assets of the fund.

ADR = American Depositary Receipts

Endowments, Bond Portfolio^SM

Investment portfolio

January 31, 2006

unaudited

Bonds & notes — 88.98%	Principal amount (000)			Market value

CORPORATE BONDS & NOTES — 51.29%
Financials — 19.51%
Washington Mutual, Inc. 5.625% 2007	$	375		$	377,142
Washington Mutual, Inc. 4.90% 2010¹		400			400,808
Washington Mutual Bank, FA 6.875% 2011		250			268,711
J.P. Morgan Chase & Co. 5.75% 2013		125			128,486
JPM Capital Trust I, cumulative capital securities trust, 7.54% 2027		345			363,465
Resona Bank, Ltd. 5.85% (undated)^1,2		475			473,052
EOP Operating LP 4.65% 2010		200			193,892
EOP Operating LP 8.10% 2010		125			137,710
EOP Operating LP 6.75% 2012		125			132,693
Abbey National PLC 6.70% (undated)¹		250			257,781
Abbey National PLC 7.35% (undated)¹		200			203,684
Sumitomo Mitsui Banking Corp. 5.625% (undated)^1,2		450			447,377
PRICOA Global Funding I 4.20% 2010²		250			241,977
Prudential Holdings, LLC, Series C, 8.695% 2023^2,3		150			188,523
TuranAlem Finance BV 8.50% 2015²		400			426,500
SocGen Real Estate Co. LLC, Series A, 7.64% (undated)^1,2		375			388,934
AIG SunAmerica Global Financing VII 5.85% 2008²		125			127,331
American General Finance Corp., Series I, 5.40% 2015		250			247,420
Lazard Group LLC 7.125% 2015		315			330,581
USA Education, Inc. 5.625% 2007		125			125,395
SLM Corp., Series A, 4.50% 2010		200			194,551
HBOS PLC, Series B, 5.92% (undated)^1,2		300			300,377
Banco Santander-Chile 5.375% 2014²		300			297,398
BNP Paribas 5.186% noncumulative (undated)^1,2		300			288,791
Countrywide Home Loans, Inc., Series L, 4.00% 2011		300			281,666
Development Bank of Singapore Ltd. 7.875% 2009²		250			271,889
Wachovia Capital Trust III 5.80% (undated)		250			250,781
Bayerische Landesbank, Series F, 2.50% 2006		250			249,140
Liberty Mutual Group Inc. 6.50% 2035²		250			246,601
United Overseas Bank Ltd. 5.375% 2019^1,2		250			246,546
Citigroup Inc. 4.625% 2010		250			246,157
Berkshire Hathaway Finance Corp. 4.125% 2010		250			242,223
Hospitality Properties Trust 6.75% 2013		215			227,963
MBNA Global Capital Funding, Series B, 5.05% 2027¹		200			197,535
Kimco Realty Corp., Series C, 4.82% 2014		200			191,543
Downey Financial Corp. 6.50% 2014		150			149,644
Nationwide Mutual Insurance Co. 7.875% 2033²		125			149,230
BCI U.S. Funding Trust I 8.01% noncumulative preferred (undated)^1,2		125			132,295
First Industrial, LP 6.875% 2012		125			132,213
Household Finance Corp. 6.375% 2011		125			131,789
United Dominion Realty Trust, Inc. 6.50% 2009		125			130,235
Rouse Co. 7.20% 2012		125			130,220
ReliaStar Financial Corp. 8.00% 2006		125			127,489
ProLogis Trust 7.05% 2006		125			125,864
Allstate Financial Global Funding LLC 5.25% 2007²		125			125,115
CNA Financial Corp. 5.85% 2014		125			125,046
Monumental Global Funding Trust II, Series 2002-A, 5.20% 2007²		125			124,937
Hartford Financial Services Group, Inc. 2.375% 2006		125			123,996
Mangrove Bay Pass Through Trust 6.102% 2033^1,2		125			123,583
Simon Property Group, LP 4.875% 2010		125			123,438
CIT Group Inc. 3.65% 2007		125			122,109
John Hancock Global Funding II, Series 2004-A, 3.50% 2009²		125			119,834
					11,391,660


Consumer Discretionary — 8.70%
Residential Capital Corp. 5.67% 2008¹		300			302,927
Residential Capital Corp. 6.375% 2010		250			256,512
General Motors Acceptance Corp. 7.75% 2010		245			241,392
General Motors Acceptance Corp. 7.25% 2011		455			439,441
General Motors Acceptance Corp. 6.61% 2014¹		250			237,335
Ford Motor Credit Co. 7.375% 2009		150			140,451
Ford Motor Credit Co. 7.875% 2010		650			612,186
DaimlerChrysler North America Holding Corp. 8.00% 2010		600			655,403
Comcast Cable Communications, Inc. 8.375% 2007		125			129,963
Tele-Communications, Inc. 9.80% 2012		215			257,121
Ryland Group, Inc. 5.375% 2012		250			240,581
Toll Brothers Finance Corp. 5.15% 2015²		200			185,659
Toys “R” Us, Inc. 7.875% 2013		215			175,225
Seminole Tribe of Florida 5.798% 2013²		150			148,997
Harrah’s Operating Co., Inc. 5.625% 2015		150			146,902
MDC Holdings, Inc. 5.50% 2013		150			143,524
AOL Time Warner Inc. 7.625% 2031		125			139,272
Univision Communications Inc. 7.85% 2011		125			137,537
Pulte Homes, Inc. 8.125% 2011		125			136,797
Clear Channel Communications, Inc. 6.625% 2008		125			127,981
Hyatt Equities, LLC 6.875% 2007²		125			127,124
Centex Corp. 5.25% 2015		100			94,918
					5,077,248


Industrials — 6.50%
Continental Airlines, Inc., Series 2001-1, Class A-2, 6.503% 2011		385			376,985
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 2022³		201			207,220
Deere & Co. 8.95% 2019		370			409,072
Hutchison Whampoa International Ltd. 7.00% 2011²		375			402,606
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 2013^2,3		342			364,625
Bombardier Inc. 6.30% 2014²		375			338,437
American Airlines, Inc., Series 2001-2, Class A-1, 6.978% 2012³		325			331,657
Northwest Airlines Trust, Series 2, Class A, 9.25% 2014³		131			132,691
Northwest Airlines, Inc., Series 2001-1, Class A-1, 7.041% 2023³		179			171,945
Cendant Corp. 7.375% 2013		250			278,230
BNSF Funding Trust I 6.613% 2055¹		250			258,876
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 2012		200			196,587
General Electric Capital Corp., Series A, 6.00% 2012		125			131,061
Union Pacific Railroad Co. Pass Through Trust, Series 2003-1, 4.698% 2024³		124			118,171
Southern Capital Corp. Pass Through Trust, Series 2002-1, Class G, MBIA insured, 5.70% 2023^2,3		77			76,682
Jet Equipment Trust, Series 1994-A, 11.79% 2013^2,4		750			7
					3,794,852


Telecommunication Services — 5.39%
Nextel Communications, Inc. 6.875% 2013		500			524,657
Nextel Communications, Inc. 7.375% 2015		150			158,645
AT&T Wireless Services, Inc. 7.875% 2011		100			111,850
AT&T Wireless Services, Inc. 8.125% 2012		350			402,863
France Télécom 7.75% 2011¹		400			444,250
ALLTEL Corp. 4.656% 2007		300			298,706
SBC Communications Inc. 4.542% 2008¹		125			125,314
SBC Communications Inc. 6.15% 2034		125			123,481
Koninklijke KPN NV 8.00% 2010		225			245,234
Deutsche Telekom International Finance BV 8.75% 2030¹		125			156,406
Verizon Wireless Capital LLC and Cellco Partnership 5.375% 2006		150			150,458
BellSouth Corp. 5.20% 2016		150			146,297
TELUS Corp. 8.00% 2011		125			139,804
Telecom Italia Capital SA 4.95% 2014		125			118,375
					3,146,340


Utilities — 4.83%
FPL Energy American Wind, LLC 6.639% 2023^2,3		267			277,365
FPL Energy National Wind, LLC 5.608% 2024^2,3		239			234,205
Commonwealth Edison Co., Series 99, 3.70% 2008		125			121,254
Exelon Generation Co., LLC 6.95% 2011		300			322,269
Midwest Generation, LLC, Series B, 8.56% 2016³		89			97,093
Homer City Funding LLC 8.734% 2026³		297			345,760
Consolidated Edison Co. of New York, Inc., Series 2005-C, 5.375% 2015		300			302,517
Reliant Energy Resources Corp. 7.75% 2011		250			276,291
AES Ironwood, LLC 8.857% 2025³		234			260,574
Constellation Energy Group, Inc. 6.125% 2009		200			205,946
Duke Capital Corp. 6.25% 2013		125			130,164
Virginia Electric and Power Co., Series 2002-A, 5.375% 2007		125			125,325
PSEG Power LLC 3.75% 2009		125			119,730
					2,818,493


Materials — 2.66%
Norske Skogindustrier ASA 7.625% 2011²		500			529,924
Georgia-Pacific Corp. 7.50% 2006		353			355,647
Equistar Chemicals, LP and Equistar Funding Corp. 8.75% 2009		250			264,375
Teck Cominco Ltd. 6.125% 2035		150			146,854
Weyerhaeuser Co. 6.75% 2012		125			132,155
International Paper Co. 5.85% 2012		125			126,391
					1,555,346


Health Care — 1.35%
Cardinal Health, Inc. 6.75% 2011		250			265,751
Cardinal Health, Inc. 4.00% 2015		100			89,433
Humana Inc. 7.25% 2006		125			126,001
UnitedHealth Group Inc. 5.20% 2007		125			125,371
Amgen Inc. 4.00% 2009		125			120,928
Health Net, Inc. 9.875% 2011¹		55			63,793
					791,277


Energy — 1.13%
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 2014^2,3		300			303,750
Ras Laffan Liquefied Natural Gas Co. Ltd. 3.437% 2009^2,3		201			193,970
Devon Energy Corp. 7.95% 2032		125			159,648
					657,368


Consumer Staples — 1.00%
Delhaize America, Inc. 8.125% 2011		250			272,917
Wal-Mart Stores, Inc. 5.25% 2035		205			196,247
CVS Corp. 6.117% 2013^2,3		110			113,901
					583,065


Information Technology — 0.22%
Electronic Data Systems Corp., Series B, 6.50% 2013¹		125			128,160


MORTGAGE- AND ASSET-BACKED OBLIGATIONS³— 23.04%
Fannie Mae, Series 2000-T5B, 7.30% 2010		250			272,584
Fannie Mae, Series 2001-T6B, 6.088% 2011		250			262,744
Fannie Mae 6.00% 2016		28			28,210
Fannie Mae, Series 2001-4, Class GA, 10.251% 2025¹		47			51,968
Fannie Mae 7.00% 2026		26			26,883
Fannie Mae 6.50% 2031		18			18,789
Fannie Mae 7.00% 2031		13			13,378
Fannie Mae 7.50% 2031		10			10,633
Fannie Mae, Series 2001-20, Class C, 12.042% 2031¹		44			48,621
Fannie Mae 6.00% 2034		239			241,475
Fannie Mae 6.00% 2034		191			192,888
Fannie Mae 5.50% 2035		466			461,014
Fannie Mae 6.00% 2035		238			240,398
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041		31			31,689
Freddie Mac 8.75% 2008		4			4,479
Freddie Mac 4.00% 2015		215			205,693
Freddie Mac 5.00% 2035		250			240,900
Freddie Mac 5.00% 2035		124			120,097
Freddie Mac 5.50% 2035		124			122,952
Freddie Mac 6.00% 2036		170			171,759
ARG Funding Corp., Series 2005-2, Class A-1, AMBAC insured, 4.54% 2009²		500			495,867
ARG Funding Corp., Series 2005-1, Class A-3, MBIA insured, 4.29% 2011²		250			242,074
Countrywide Alternative Loan Trust, Series 2005-62, Class 2-A-1, 4.326% 2035¹		250			247,877
Countrywide Alternative Loan Trust, Series 2005-40CB, Class A-1, 5.50% 2035		241			238,301
Countrywide Alternative Loan Trust, Series 2005-21CB, Class A-17, 6.00% 2035		225			223,063
Chase Commercial Mortgage Securities Corp., Series 1998-2, Class A-2, 6.39% 2030		359			370,072
Chase Commercial Mortgage Securities Corp., Series 2000-1, Class A-2, 7.757% 2032		234			250,591
GS Mortgage Securities Corp. II, Series 1998-C1, Class D, 7.213% 2030¹		250			260,994
GS Mortgage Securities Corp. II, Series 1998-C1, Class E, 7.213% 2030¹		250			256,844
Crown Castle Towers LLC, Series 2005-1, Class A-FX, 4.643% 2035²		200			195,279
Crown Castle Towers LLC, Series 2005-1, Class D, 5.612% 2035²		325			315,960
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-2, 4.79% 2042		250			246,013
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A-2, 4.625% 2046		250			245,720
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A-4, 4.283% 2039		255			243,658
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 2040		125			124,225
CS First Boston Mortgage Securities Corp., Series 1998-C1, Class A-1B, 6.48% 2040		119			122,723
Morgan Stanley Capital I, Inc., Series 1998-HF2, Class A-2, 6.48% 2030		434			445,548
Residential Funding Mortgage Securities I, Inc., Series 2004-SA1, Class A-II, 4.336% 2034¹		368			359,422
Wells Fargo Home Equity Trust, Series 2004-2, Class AI-5, 4.89% 2028		334			325,062
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-2, 6.226% 2035		322			324,658
SBA CMBS Trust, Series 2005-1D, 6.219% 2035²		320			321,148
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 2026²		290			312,226
WaMu Mortgage Pass-Through Certificates Trust, Series 2004-AR1, Class A, 4.229% 2034¹		66			64,413
WaMu Mortgage Pass-Through Certificates Trust, Series 2005-AR15, Class A-1-A, 4.79% 2045¹		246			246,528
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class A-2, 6.48% 2035		250			263,531
Vanderbilt Mortgage and Finance, Inc., Series 1999-B, Class I-B-1, 8.395% 2016		56			56,843
Vanderbilt Mortgage and Finance, Inc., Series 2001-A, Class B-1, 8.20% 2020		200			206,009
Morgan Stanley Dean Witter Capital I Trust, Series 2001-TOP5, Class A-3, 6.16% 2035		250			257,818
UPFC Auto Receivables Trust, Series 2005-B, Class A-3, XLCA insured, 4.98% 2011		250			250,585
Residential Asset Securities Corp. Trust, Series 2004-KS12, Class A-1-2, 4.76% 2035¹		250			250,272
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class A-2, 4.782% 2042		250			246,527
PP&L Transition Bond Co. LLC, Series 1999-1, Class A-7, 7.05% 2009		241			244,868
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A-3, 4.14% 2012		250			244,046
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-22, Class 5-A1, 6.053% 2035¹		241			242,001
CHL Mortgage Pass-Through Trust, Series 2005-HYB8, Class 4-A-1, 5.733% 2035¹		233			233,689
HarborView Mortgage Loan Trust, Series 2005-15, Class 2-A1A2, 5.29% 2045¹		192			194,198
Cendant Timeshare Receivables Funding, LLC, Series 2005-1, Class A-1, FGIC insured, 4.67% 2017²		193			190,154
Washington Mutual Securities Corp., Series 2005-AR1, Class A-1-A, 4.79% 2035¹		139			138,988
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A-2, 7.95% 2025		125			136,985
Chase Manhattan Bank — First Union National Bank, Commercial Mortgage Trust, Series 1999-1, Class B, 7.619% 2031		125			134,934
DLJ Commercial Mortgage Corp., Series 1999-CG1, Class A-1B, 6.46% 2032		125			129,719
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-2, Class A-6, AMBAC insured, 5.08% 2011²		125			124,175
GGP Mall Properties Trust, Series 2001-GGP1, Class A-2, 5.007% 2011²		120			120,044
PF Export Receivables Master Trust, Series 2001-B, MBIA insured, 6.60% 2011²		110			114,948
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 4-A, 5.699% 2034¹		90			88,027
Government National Mortgage Assn. 8.50% 2008		10			10,607
Government National Mortgage Assn. 10.00% 2020		57			64,759
GMAC Commercial Mortgage Securities, Inc., Series 1997-C1, Class A-3, 6.869% 2029		71			72,522
Structured Asset Securities Corp., Series 1998-RF2, Class A, 8.535% 2027^1,2		54			54,680
Prestige Auto Receivables Trust, Series 2003-1, Class A-2, FSA insured, 2.41% 2010²		49			48,695
Bear Stearns ARM Trust, Series 2003-6, Class I-A-2, 3.987% 2033¹		48			46,504
Nomura Asset Securities Corp., Series 1998-D6, Class A-1A, 6.28% 2030		40			40,686
					13,452,234


U.S. GOVERNMENT & GOVERNMENT AGENCY BONDS & NOTES — 12.02%
U.S. Treasury 3.625% 2009		1,475			1,434,202
U.S. Treasury 3.875% 2009⁵		753			796,688
U.S. Treasury 14.00% 2011		450			482,553
U.S. Treasury 2.00% 2014⁵		267			267,250
U.S. Treasury 12.50% 2014		1,200			1,509,372
U.S. Treasury 6.875% 2025		1,325			1,681,716
Freddie Mac 6.625% 2009		125			132,420
Freddie Mac 5.75% 2010		250			334,439
Federal Home Loan Bank 3.70% 2007		125			122,956
Federal Home Loan Bank 5.823% 2009		250			257,170
					7,018,766


MUNICIPALS — 1.94%
State of California, Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2003-A1, 6.25% 2033		325			355,179
State of Wisconsin, Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 6.125% 2027		270			286,219
State of South Dakota, Educational Enhancement Funding Corp., Tobacco Settlement Asset-backed Bonds, Series 2002-A, Class A, 6.72% 2025		174			172,380
State of New Jersey, Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds, Series 2003, 6.125% 2024		125			137,273
State of North Carolina, Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Federally Taxable, Series 2003-E, 5.55% 2014		125			122,605
State of Louisiana, Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds,
Series 2001-A, Class A, 6.36% 2025		57			57,002
					1,130,658


NON-U.S. GOVERNMENT BONDS & NOTES — 0.69%
Israeli Government 7.50% 2014		935			215,890
United Mexican States Government Global 11.375% 2016		125			184,062
					399,952


Total bonds & notes (cost: $52,212,814)					51,945,419


Preferred securities — 6.73%		Shares

FINANCIALS — 6.73%
Fannie Mae, Series O, 7.00% preferred²		15,000			822,188
BNP U.S. Funding LLC, Series A, 7.738% noncumulative preferred^1,2		375,000			391,290
BNP Paribas Capital Trust 9.003% noncumulative trust preferred^1,2		150,000			172,723
HSBC Capital Funding LP, Series 1, 9.547% noncumulative step-up perpetual preferred^1,2		400,000			465,820
Fuji JGB Investment LLC, Series A, 9.87% noncumulative preferred^1,2		360,000			396,178
Deutsche Bank Capital Funding Trust I, 7.872%^1,2		300,000			323,567
ING Capital Funding Trust III 8.439% noncumulative preferred¹		250,000			282,828
NB Capital Corp., Series A, 8.35% exchangeable preferred depositary shares		10,000			268,500
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities²		10,000			266,563
Chuo Mitsui Trust and Banking Co., Ltd. 5.506%^1,2		250,000			243,359
Resona Preferred Global Securities (Cayman) Ltd. 7.191%^1,2		150,000			158,116
DBS Capital Funding Corp., Series A, 7.657% noncumulative guaranteed preference shares^1,2		125,000			137,653

Total preferred securities (cost: $3,738,829)					3,928,785



Short-term securities — 3.25%		Principal amount (000	)

General Electric Capital Corp. 4.47% due 2/1/2006	$	1,300			1,299,839
Wal-Mart Stores Inc. 4.38% due 2/22/2006²		600			598,393

Total short-term securities (cost: $1,898,233)					1,898,232


Total investment securities (cost: $57,849,876)					57,772,436
Other assets less liabilities					608,477

Net assets				$	58,380,913

¹	Coupon rate may change periodically.

²	Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $14,528,642, which represented 24.89% of the net assets of the fund.

³Pass-through securities backed by a pool of mortgages or other loans on which principal payments are periodically made. Therefore, the effective maturities are shorter than the stated maturities.

⁴	Company not making scheduled interest payments; bankruptcy proceedings pending.

⁵ Index-linked bond whose principal amount moves with a government retail price index.

MFGEFP-985-0306-S4532

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 Trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a Committee on Governance 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 Trustees. 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 Committee on Governance 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 Committee on Governance.

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, as amended, 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.

	ENDOWMENTS

	By /s/ Robert G. O'Donnell
	Robert G. O'Donnell, Vice Chairman and PEO

	Date: April 11, 2006

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/ Robert G. O'Donnell

Robert G. O'Donnell, Vice Chairman and PEO

Date: April 11, 2006

By /s/ Susi M. Silverman

Susi M. Silverman, Treasurer and PFO

Date: April 11, 2006

Endowments Inactive N-CSRSCertified semi-annual shareholder report (management investment company)