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: 811-2421
The Tax-Exempt 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: August 31, 2004
Date of reporting period: February 29, 2004
Julie F. Williams
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
Robert E. Carlson, Esq.
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[logo - American Funds(R)]
The right choice for the long term(R)
THE TAX-EXEMPT BOND FUND OF AMERICA
[photo of two hands making clay pottery]
Semi-annual report for the six months ended February 29, 2004
THE TAX-EXEMPT BOND FUND OF AMERICA(R) seeks a high level of federally tax-free
current income, consistent with preservation of capital, through a diversified
portfolio of municipal bonds.
This fund is one of the 29 American Funds, the nation's third-largest mutual
fund family. For more than seven decades, 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.
Here are the average annual total returns on a $1,000 investment with all
distributions reinvested for periods ended March 31, 2004 (the most recent
calendar quarter):
1 year 5 years 10 years
Class A shares
Reflecting 3.75% maximum sales charge +1.94% +4.66% +6.01%
The fund's 30-day yield for Class A shares as of March 31, 2004, calculated in
accordance with the Securities and Exchange Commission formula, was 2.92%. The
fund's distribution rate for Class A shares as of that date was 3.96%. Both
reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which
the fund is earning income on its current portfolio of securities while the
distribution rate reflects the fund's past dividends paid to shareholders.
Accordingly, the fund's SEC yield and distribution rate may differ.
Results for other share classes can be found on page 52. Please see the inside
back cover for important information about other share classes.
FIGURES SHOWN ON THESE TWO PAGES ARE PAST RESULTS FOR CLASS A SHARES 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. FOR THE MOST CURRENT INFORMATION AND MONTH-END RESULTS, VISIT
AMERICANFUNDS.COM. FUND RESULTS SHOWN, UNLESS OTHERWISE INDICATED, ARE AT NET
ASSET VALUE. IF A SALES CHARGE (MAXIMUM 3.75%) HAD BEEN DEDUCTED, THE RESULTS
WOULD HAVE BEEN LOWER.
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. Income may be subject to state or local taxes. Also, distributions from
gains on the sale of certain bonds purchased at less than par value and capital
gain distributions, if any, are taxable. Certain other income also may be
taxable.
[black and white photo of clay pots]
FELLOW SHAREHOLDERS:
When The Tax-Exempt Bond Fund of America's 2004 fiscal year began six months
ago, it looked as if the long-expected rise in interest rates was finally
underway. After hitting a 45-year low in June, the yield on the 10-year U.S.
Treasury note had risen substantially by the start of the fund's fiscal year.
Yet, as temperatures began to fall last autumn, so did interest rates -- this
despite an expanding U.S. economy.
The rise in rates just before the period began and the decline in rates
thereafter played a meaningful role in the fund's return. Since bond prices rise
when interest rates decline, your fund did well during the six-month period
ended February 29, 2004, generating a total return of 6.54%. About a third of
the return came from dividend income, which totaled 26 cents per share and is
completely free of federal taxes. Despite the appreciation in the net asset
value of the fund's shares, the fund did not pay a capital gain distribution.
If you reinvested those dividends, as most shareholders do, your income return
was 2.16% (4.32% on an annualized basis). If you're in the 35% maximum federal
tax bracket, that's the taxable equivalent of a 3.32% return (6.64% on an
annualized basis). If you took your dividends in cash, your income return was
2.14%, equivalent to a 3.29% taxable return. (For other tax-equivalent yields,
please see the table on page 2.) The fund's net asset value, or NAV, rose 52
cents over the period, to $12.69 per share.
INVESTMENT HIGHLIGHTS
THROUGH FEBRUARY 29, 2004
6-MONTH TOTAL RETURN +6.54%
(income plus capital changes, with dividends reinvested)
TAX-FREE DISTRIBUTION RATE +3.91%
(income return only, reflecting maximum sales charge)
TAXABLE EQUIVALENT DISTRIBUTION RATE +6.02%
(assuming a 35% federal tax rate)
SEC 30-DAY TAX-FREE YIELD +3.07%
(reflecting maximum sales charge)
TAXABLE EQUIVALENT SEC YIELD +4.72%
(assuming a 35% federal tax rate)
Distribution rates and yields are annualized.
For current yield information, please call toll-free: 800/421-0180.
[black and white photo of a person sculpting a clay pot]
The fund's 6.54% total return was slightly better than its benchmarks. The
unmanaged Lehman Brothers Municipal Bond Index, which measures a wide variety of
tax-exempt bonds, generated a total return of 6.52% -- without any deduction for
expenses. The Lipper General Municipal Debt Funds Average of comparable funds
returned 6.44%.
MARKET AND ECONOMIC REVIEW
Although the U.S. economy has been expanding at a healthy rate, it has not until
recently generated very many new jobs. This has helped keep inflation in check,
leading the Federal Reserve to maintain short-term rates at historic lows. That,
in turn, has been good for bond prices. It has also been good for many states
and municipalities, which continued to borrow money at a record pace. For
calendar year 2003, new issuance in the municipal bond market reached a record
$379 billion. New issuance appears to be slowing somewhat in calendar year 2004,
reflecting an improving fiscal situation at the state and local level, and the
fact that many rushed their issues to market in 2003 as a hedge against higher
rates in 2004.
With the economy continuing to expand, we believe that the anemic labor market
and inflation will eventually perk up, bringing with them higher interest rates.
Thus, we caution you that although the fiscal year is off to a solid start,
future investment returns may not be as strong.
WHY TAX-FREE INVESTING CAN BE WORTHWHILE
The fund's 3.91%
tax-exempt distribution
Current rate in February(3) is
Your taxable income(1) federal equivalent to a taxable
Single Joint tax rate(2) distribution rate of:
$0 - 7,150 $0 - 14,300 10.0% 4.34%
7,151 - 29,050 14,301 - 58,100 15.0 4.60
29,051 - 70,350 58,101 - 117,250 25.0 5.21
70,351 - 146,750 117,251 - 178,650 28.0 5.43
146,751 - 319,100 178,651 - 319,100 33.0 5.84
Over 319,100 Over 319,100 35.0 6.02
(1) 2004 federal tax brackets used are projected.
(2) The federal rates are marginal rates. They do not include an adjustment for
the loss of personal exemptions and the phase-out of itemized deductions
that are applicable to certain taxable income levels.
(3) The fund's distribution rate here and in the Investment Highlights table is
based on offering price and therefore reflects the effects of the maximum
sales charge on the initial investment. It is not a projection of future
results, which will be affected by, among other things, interest rate
levels, changes in the value of portfolio securities, the effects of
portfolio transactions and fund expenses.
[black and white photo of a person sculpting a clay pot]
PORTFOLIO REVIEW
As you know, your fund has the dual objective of providing a high level of
current tax-free income and preserving capital. To maximize yields, a bond
investor generally has two options, neither of which is very appealing at the
moment: buying lower rated bonds, or buying longer term bonds. In the first
case, yield spreads among bonds of differing credit quality have narrowed, so
investors are paid less to assume greater risks. As for "going long," the yield
curve (a curve plotting the yields on bonds from the shortest to longest
maturities) looks pretty much like it did a year ago -- rising steeply for
short- and medium-term bonds, then flattening out. For example, AAA municipal
bonds maturing in 30 years currently yield around 4.35%. But comparable bonds
maturing in 15 years yield 3.76% on average -- approximately 86% of the 30-year
yield. Getting most of a longer term bond's yield without its volatility
dovetails quite nicely with our conservative approach and helps explain why the
fund's holdings mature, on average, in 6.7 years.
In terms of composition, the fund remains well diversified, holding securities
from 45 states and U.S. territories. Approximately two-thirds of its holdings
are in securities rated A or higher by Moody's or Standard & Poor's, the
principal ratings agencies for municipal bonds in the United States.
LONG-TERM PERSPECTIVE
We will continue to maintain our cautious investment approach by paying close
attention to risk, and endeavoring to preserve shareholder capital. It is an
approach that has generally been quite effective during times of market
uncertainty.
In conclusion, given their relatively low risks and steady streams of mostly
tax-free income, we think municipal bond funds are quite attractive investments
that should be a core part of any investment portfolio. We appreciate your
confidence in us and your commitment to long-term investing. This year, the fund
marks its 25th anniversary. In our next report, six months from now, we'll take
a look at the fund's first quarter-century -- and the road ahead.
Cordially,
/s/ Paul G. Haaga /s/ Neil L. Langberg
Paul G. Haaga, Jr. Neil L. Langberg
Chairman of the Board President
April 15, 2004
Figures shown on the opposite page are past results for Class A shares 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.
Fund results shown, unless otherwise indicated, are at net asset value. If a
sales charge (maximum 3.75%) had been deducted, the results would have been
lower. For current information about the fund, visit americanfunds.com.
INVESTMENT PORTFOLIO, February 29, 2004
unaudited
[begin pie chart]
Percent
of net
GEOGRAPHIC BREAKDOWN assets
Texas 11.5
New York 9.5
Illinois 9.1
Washington 7.2
Florida 5.6
California 4.8
Other States 44.1
Cash & Equivalents 8.2
[end pie chart]
[begin pie chart]
Percent
of net
QUALITY RATINGS assets
Aaa/AAA 37.4
Aa/AA 20.6
A/A 8.0
Baa/BBB 13.9
Below investment-grade 11.9
Cash & Equivalents 8.2
[end pie chart]
Principal Market
amount value
FIXED-INCOME SECURITIES - 91.78% (000) (000)
ALABAMA - 0.69%
Public School and College Auth., Capital Improvement Pool Bonds, Series 2001-A,
5.625% 2015 $ 5,255 $ 5,999
Industrial Dev. Board of the Town of Courtland, Industrial Dev. Rev. Ref. Bonds
(International Paper Co. Projects), Series 2003-A, 5.00% 2013 1,000 1,086
Special Care Fac. Fncg. Auth. of the City of Huntsville - Carlton Cove,
Retirement Fac. Rev. Bonds (Carlton Cove, Inc. Project), Series 2001,
8.125% 2031 9,000 5,019
Jefferson County, Sewer Rev. Capital Improvement Warrants, Series 1999-A, FGIC
insured, 5.125% 2029 (preref. 2009) 2,865 3,266
Health Care Auth. of Lauderdale County and the City of Florence, Coffee Health
Group, Series 2000-A Bonds, MBIA insured, 5.50% 2009 1,150 1,323
21st Century Auth., Tobacco Settlement Rev. Bonds:
Series 2000, 5.75% 2020 2,000 1,957
Series 2001, 5.50% 2021 6,000 5,634
ALASKA - 1.26%
Housing Fin. Corp.:
Collateralized Bonds (Veterans Mortgage Program), Series 1992-A1, 6.75% 2032 395 397
Rev. Bonds, Series 1998-A1, 5.30% 2017 5,380 5,682
Municipality of Anchorage:
G.O. Ref. General Purpose Bonds, Series 1995-B, FGIC insured, 6.00% 2012 2,895 3,528
Municipal Light & Power, Senior Lien Ref. Electric Rev. Bonds, Series 1996,
MBIA insured, 6.50% 2014 5,000 6,395
North Slope Borough, G.O. Bonds, Series 1997-A, MBIA insured, 0% 2008 10,935 9,864
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds:
Series 2000:
5.80% 2012 4,785 4,800
6.20% 2022 1,975 1,973
Series 2001, 5.375% 2021 12,850 11,549
ARIZONA - 0.49%
Health Facs. Auth., Rev. Bonds (Catholic Healthcare West), Series 1999-A,
6.125% 2009 2,900 3,152
Transportation Excise Tax Rev. Bonds (Maricopa County Regional Area Road Fund),
Series 2002, 3.00% 2005 5,000 5,164
Industrial Dev. Auth. of the County of Maricopa, Health Fac. Rev. Bonds
(Catholic Healthcare West Project), Series 1998-A:
5.25% 2006 2,850 3,040
5.00% 2016 1,000 1,035
Industrial Dev. Auth. of the County of Pima, Education Rev. Bonds (Charter
Schools Project), Series 2002-E, 7.25% 2031 4,520 4,748
CALIFORNIA - 4.81%
G.O. Bonds:
6.00% 2019 5,000 5,878
Various Purpose:
5.25% 2018 8,000 8,599
5.00% 2033 3,000 3,001
Educational Facs. Auth., Rev. Bonds, Stanford University, Series N, 5.35% 2027 3,000 3,289
Housing Fin. Agcy., Single-family Mortgage Bonds, Series 1997-C4, Class I:
5.10% 2007 455 494
5.20% 2009 305 330
Joint Powers Health Fncg. Auth., Cert. of Part., Community Medical Center
(Community Hospitals of Central California Project), Series 2001, 5.00% 2011 1,115 1,192
Public Works Board, Lease Rev. Bonds (Dept. of Corrections, State Prison, Kern
County at Delano II), Series 2003-C, 5.50% 2018 7,820 8,519
Statewide Communities Dev. Auth., Apartment Dev. Rev. Ref. Bonds (Irvine
Apartment Communities, LP), Series 1998-A3, 5.10% 2025 (put 2010) 4,000 4,307
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A:
5.50% 2009 1,000 1,132
5.75% 2017 5,550 6,272
5.375% 2022 3,000 3,183
AMBAC insured:
5.50% 2015 2,000 2,302
5.50% 2016 1,000 1,147
FSA insured, 5.25% 2011 4,000 4,628
City of Antioch, Public Fncg. Auth., 1998 Reassessment Rev. Bonds, Subordinated
Series B, 5.85% 2015 1,415 1,519
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps.:
Multi-family Housing Rev. Ref. Bonds (Archstone/Redwood Shores Apartments),
Series 2000-A, 5.30% 2008 1,000 1,071
Rev. Ref. Cert. of Part.:
American Baptist Homes of the West Facs. Project, Series 1997-A:
5.50% 2007 835 869
5.75% 2017 1,500 1,506
6.20% 2027 1,675 1,686
Episcopal Homes Foundation, Series 1998, 5.125% 2013 2,000 2,054
Southern California Presbyterian Homes Obligated Group (Redwood Senior Homes
and Services), Rev. Bonds, Series 2002:
6.00% 2022 1,750 1,839
6.125% 2032 1,000 1,037
Bonita Canyon Public Facs. Fncg. Auth., Community Facs. Dist. No. 98-1, Special
Tax Bonds, Series 1998, 5.375% 2028 2,500 2,520
Cerritos Public Fncg. Auth., 2002 Tax Allocation Rev. Bonds (Cerritos Redev.
Projects), Series A, AMBAC insured, 5.00% 2017 2,880 3,274
County of El Dorado, Community Facs. Dist. No. 1992-1 (El Dorado Hills Dev.),
Special Tax Bonds, Series 1999, 6.125% 2016 975 1,036
City of Folsom, Community Facs. Dist. No. 10, Special Tax Bonds, Series 1999,
7.00% 2024 2,000 2,167
City of Fontana, Community Facs. Dist. No. 12 (Sierra Lakes), Special Tax
Bonds, Series 1999:
6.50% 2015 1,000 1,088
6.625% 2030 1,000 1,066
Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed
Bonds, Series 2003-A1, 6.25% 2033 3,500 3,370
City of Irvine, Assessment Dist. No. 00-18, Limited Obligation Improvement
Bonds (Shady Canyon), Group Two, 5.60% 2022 1,715 1,769
City of La Verne, Rev. Cert. of Part. (Brethren Hillcrest Homes), Series
2003-B, 6.625% 2025 1,250 1,282
City of Lincoln, Community Facs. Dist. No. 2003-1 (Lincoln Crossing Project),
Special Tax Bonds, Series 2003-A, 6.125% 2033 2,000 2,038
City of Long Beach Bond Fin. Auth., Lease Rev. Ref. Bonds (Aquarium of the
Pacific Project), Series 2001, AMBAC insured, 5.50% 2015 2,150 2,470
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium of the Pacific
Project), Series 1995-A (preref. 2005):
6.10% 2010 4,000 4,337
6.125% 2015 5,000 5,423
6.125% 2023 12,500 13,556
MBIA insured, 6.125% 2023 2,000 2,169
County of Los Angeles:
Capital Asset Leasing Corp., Cert. of Part. (Marina del Rey), Series 1993-A,
6.50% 2008 4,750 4,859
Los Angeles Community College Dist., G.O. Bonds, 2001 Election, Series A,
5.50% 2016 10,500 12,018
Community Facs. Dist. No. 2002-1 of the County of Orange (Ladera Ranch),
Special Tax Bonds, Series 2003-A, 5.55% 2033 2,000 2,029
City of Roseville, Special Tax Bonds:
Highland Reserve North Community Facs. Dist. No. 1, Series 1999:
6.00% 2011 3,075 3,358
6.30% 2025 2,750 2,872
North Central Roseville Community Facs. Dist. No. 1, Ref. Bonds, Series 1999:
5.30% 2007 2,700 2,921
5.80% 2017 3,290 3,451
Woodcreek West Community Facs. Dist. No. 1, Series 1999, 6.50% 2015 1,465 1,590
Sacramento Cogeneration Auth., Cogeneration Project Rev. Bonds (Procter &
Gamble Project), Series 1995:
6.375% 2010 500 529
6.375% 2010 (preref. 2005) 500 546
County of Sacramento, Laguna Creek Ranch/Elliott Ranch Community Facs. Dist.
No. 1, Improvement Area No. 2, Special Tax Ref. Bonds (Elliott Ranch),
6.30% 2021 500 524
County of San Bernardino Housing Auth., Multi-family Housing Rev. Ref. Bonds
(Equity Residential/Redlands Lawn and Tennis Apartments), Issue 1999-A,
5.20% 2029 (put 2009) 1,500 1,648
County of San Diego, Reassessment Dist. No. 97-1 (4-S Ranch), Limited
Obligation Improvement Bonds, 6.25% 2012 995 1,035
San Marcos Public Facs. Auth., Rev. Ref. Bonds, Series 1998, 5.80% 2027 3,000 3,125
Community Facs. Dist. No. 99-1 (Talega) of the Santa Margarita Water Dist.,
Special Tax Bonds, Series 1999, 6.10% 2014 1,195 1,282
South Tahoe Joint Powers Fncg. Auth., Subordinate Bond Anticipation Notes
(South Tahoe Redev. Project, Area No. 1):
Series 1999-A, 7.30% 2007 (preref. 2004) 3,000 3,112
Series 1999-B, 7.30% 2007 (preref. 2004) 1,905 1,976
Series 2003-B, 5.125% 2009 2,000 2,109
City of Temecula, Public Fncg. Auth., Community Facs. Dist. No. 03-03 (Wolf
Creek), Special Tax Bonds, Series 2003, 5.90% 2034 1,625 1,637
The Regents of the University of California, Various University of California
Projects, Series 1993-A, 5.50% 2021 2,000 2,046
Washington Township Health Care Dist., Rev. Bonds, Series 1999, 5.00% 2014 1,300 1,379
City of West Sacramento, Community Facs. Dist. No. 16 (Bridgeway Lakes),
Special Tax Bonds, 6.00% 2033 1,000 1,010
COLORADO - 3.29%
Health Facs. Auth.:
Health Facs. Rev. Bonds (The Evangelical Lutheran Good Samaritan Society
Project):
Series 2000, 6.60% 2016 5,250 5,968
Series 2002, 5.90% 2027 3,670 3,837
Hospital Rev. Bonds:
Catholic Health Initiatives, Series 2001:
5.375% 2010 1,500 1,708
5.50% 2014 3,000 3,338
5.50% 2015 4,250 4,702
PorterCare Adventist Health System Project, Series 2001, 6.50% 2031 3,800 4,222
Rev. Bonds:
Catholic Health Initiatives, Series 2002-A, 5.00% 2009 1,000 1,108
Covenant Retirement Communities, Inc.:
Series 1995, 6.75% 2025 4,160 4,324
Series 2002-B, 6.125% 2033 9,000 9,395
Housing and Fin. Auth., Single-family Program Senior and Subordinate Bonds:
Series 1997-A3, 7.00% 2016 345 348
Series 1997-B3, 6.80% 2028 175 177
Series 1997-C3, 6.75% 2017 230 232
Series 1998-B3, 6.55% 2025 1,935 1,954
Series 1998-D3, 6.125% 2023 1,900 1,990
Arapahoe County:
Capital Improvement Trust Fund Highway Rev. Bonds (E-470 Project)
(preref. 2005):
6.90% 2015 2,500 2,791
6.95% 2020 17,500 19,554
E-470 Public Highway Auth., Senior Rev. Bonds (Capital Appreciation Bonds),
Series 2000-B, 0% 2034 7,500 809
Denver Convention Center Hotel Auth. Rev. Bonds, Series 2003-A, XLCA insured:
5.00% 2016 6,925 7,702
5.00% 2017 5,000 5,522
Eagle County, Bachelor Gulch Metropolitan Dist., G.O. Bonds, Series 1999,
6.70% 2019 3,400 3,648
EagleBend Affordable Housing Corp., Multi-family Housing Project Rev. Ref.
Bonds, Series 1997-A:
6.20% 2012 1,000 1,013
6.40% 2017 2,000 2,007
6.45% 2021 3,175 3,151
EagleBend Dowd Affordable Housing Corp., Multi-family Housing Project Rev.
Bonds, Series 1998-A (preref. 2005):
6.35% 2014 885 948
6.63% 2039 2,000 2,148
Metropolitan Football Stadium Dist., Capital Appreciation Sales Tax Rev.
Bonds, Series 1999-A, MBIA insured:
0% 2011 2,600 2,094
0% 2012 4,700 3,588
North Range Metropolitan Dist. No. 1 (City of Commerce City), Adams County,
Limited Tax G.O. Bonds, Series 2001, 7.25% 2031 3,775 3,832
Rampart Range Metropolitan Dist. No. 1 (City of Lone Tree), Rev. Bonds
(Rampart Range Metropolitan Dist. No. 2 Project), Series 2001, 7.75% 2026 5,415 5,679
Vista Ridge Metropolitan Dist. (Weld County), Limited Tax G.O. Bonds, Series
2001, 7.50% 2031 7,310 7,572
CONNECTICUT - 0.67%
G.O. Bonds, Series 2001-B, 5.375% 2016 1,900 2,151
Dev. Auth., Pollution Control Rev. Ref. Bonds (The Connecticut Light and Power
Co. Project), Series 1993-A, 5.85% 2028 5,025 5,390
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1996-A: (1)
6.375% 2004 (escrowed to maturity) 1,985 2,040
6.50% 2005 (escrowed to maturity) 1,490 1,611
6.40% 2011 2,025 2,211
6.40% 2011 (preref. 2007) 2,470 2,853
Mohegan Tribe of Indians, Gaming Auth. Priority Distribution Payment, Public
Improvement Bonds, Series 2001:
5.375% 2011 1,000 1,100
6.00% 2016 1,000 1,107
6.25% 2021 3,000 3,270
6.25% 2031 1,500 1,610
DISTRICT OF COLUMBIA - 0.49%
G.O. Ref. Bonds:
AMBAC insured:
Series 1993-A, 5.875% 2005 (escrowed to maturity) 2,125 2,253
Series 1993-B1, 5.50% 2009 1,500 1,728
Series 2002-C, XLCA insured, 5.25% 2013 1,000 1,127
Cert. of Part., Series 2002, Lease Rev. Bonds, AMBAC insured, 5.25% 2013 1,000 1,128
Gallery Place Project, Tax Increment Rev. Bonds, Series 2002, FSA insured,
5.50% 2016 1,000 1,133
MedStar Health, Inc. Issue, Multimodal Rev. Bonds (Georgetown University
Hospital and Washington Hospital Center Projects):
Series 2001-B, 6.625% 2031 (preref. 2005) 4,000 4,213
Series 2001-D, 6.875% 2031 (preref. 2007) 5,000 5,753
FLORIDA - 5.56%
State Board of Education, Public Education Capital Outlay Bonds (preref. 2004):
Series 1994-A, 5.70% 2008 1,000 1,022
Series 1994-E, 5.70% 2014 1,600 1,636
Capital Projects Fin. Auth., Continuing Care Retirement Community Rev. Bonds
(Capital Projects Loan Program - The Glenridge on Palmer Ranch Project),
Series 2002-A, 8.00% 2032 12,485 12,950
Arbor Greene Community Dev. Dist. (City of Tampa, Hillsborough County),
Special Assessment Rev. Bonds:
Series 1996, 7.60% 2018 860 897
Series 1998, 5.75% 2006 200 201
Series 2000, 6.50% 2007 215 218
Bay County, Pollution Control Rev. Ref. Bonds (International Paper),
Series 1998-A, 5.10% 2012 3,500 3,835
Beacon Tradeport Community Dev. Dist. (Miami-Dade County), Special Assessment
Bonds (Industrial Project), Series 2002-B:
7.00% 2014 1,025 1,081
7.25% 2033 1,000 1,071
Championsgate Community Dev. Dist., Capital Improvement Rev. Bonds,
Series 1998-B, 5.70% 2005 1,180 1,176
The Crossings at Fleming Island Community Dev. Dist. (Clay County), Special
Assessment Ref. Bonds:
Series 1995, 8.25% 2016 (preref. 2005) 960 1,057
Series 2000-C, 7.10% 2030 8,145 8,773
Escambia County Health Facs. Auth., Rev. Bonds (Ascension Health Credit Group),
Series 2003-A:
5.25% 2012 1,000 1,130
5.25% 2013 4,000 4,513
Fishhawk Community Dev. Dist. (Hillsborough County), Special Assessment Rev.
Bonds:
Series 2000, 6.65% 2007 310 314
Dist. II, Series 2003-B, 5.00% 2007 1,000 1,003
Fleming Island Plantation Community Dev. Dist. (Clay County), Series 2000-B
(Long Term), 7.375% 2031 2,995 3,247
Gateway Services Community Dev. Dist., Special Assessment Bonds:
Stoneybrook Project, Series 2003, 5.50% 2008 1,500 1,511
Sun City Center Fort Myers Project, Series 2003-B, 5.50% 2010 4,995 5,022
Grand Haven Community Dev. Dist. (City of Palm Coast, Flagler County), Special
Assessment Bonds:
Series 2002, 6.125% 2007 2,900 2,924
Series 2003, 5.20% 2007 2,000 1,992
Greyhawk Landing, Community Dev. Dist. (Manatee County), Special Assessment
Rev. Bonds:
Series 2002-A, 7.00% 2033 1,000 1,074
Series 2002-B, 6.25% 2009 850 862
The Groves Community Dev. Dist. (Pasco County), Special Assessment Rev. Bonds,
Series 2000-B, 7.625% 2008 815 787
Harbor Bay Community Dev. Dist. (Hillsborough County), Capital Improvement
Rev. Bonds:
Series 2001-B, 6.35% 2010 1,375 1,407
Series 2002, 6.75% 2034 3,000 3,149
Harbour Lake Estates Community Dev. Dist. (Miramar), Special Assessment Bonds,
Series 2001, 6.40% 2006 1,475 1,481
Heritage Harbour Community Dev. Dist. (Manatee County), Special Assessment Rev.
Bonds, Series 1997-B, 6.00% 2006 700 702
Heritage Harbour South Community Dev. Dist. (Manatee County), Capital
Improvement Rev. Bonds:
Series 2002-A, 6.50% 2034 500 528
Series 2002-B, 5.40% 2008 2,135 2,161
Heritage Isles Community Dev. Dist., Special Assessment Rev. Bonds, 5.90% 2006 550 552
Heritage Palms Community Dev. Dist. (Fort Myers), Capital Improvement Rev.
Bonds:
Series 1998, 5.40% 2003 1,030 1,036
Series 1999, 6.25% 2004 1,750 1,755
Heritage Pines Community Dev. Dist. (Pasco County), Capital Improvement Rev.
Bonds, Series 1998-B, 5.50% 2005 1,200 1,200
Highlands County Health Facs. Auth., Hospital Rev. Bonds (Adventist Health
System/Sunbelt Obligated Group), Series 2002-B:
5.00% 2010 1,055 1,168
5.00% 2011 1,205 1,330
5.00% 2012 2,000 2,192
Hillsborough County, Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa
General Hospital Project), Series 2003-A:
5.00% 2012 1,000 1,088
5.25% 2015 3,500 3,769
5.00% 2018 2,500 2,586
Jacksonville Electric Auth., St. Johns River Power Park System, Rev. Ref.
Bonds, Issue Two, Series Seventeen, 5.00% 2015 4,000 4,373
Lake Ashton Community Dev. Dist. (City of Lake Wales, Polk County), Capital
Improvement Rev. Bonds:
Series 2001-A, 7.40% 2032 940 1,017
Series 2001-B, 6.40% 2011 2,355 2,407
Series 2003-A, 6.50% 2032 2,340 2,407
Series 2003-B, 5.40% 2008 2,865 2,871
Lake Powell Residential Golf Community Dev. Dist. (Bay County), Special
Assessment Rev. Bonds, Series 2000-B, 7.00% 2010 2,125 2,168
Lakewood Ranch Community Dev. Dist. 5 (Manatee County), Special Assessment
Rev. Bonds:
Series 2001-B, 6.00% 2011 400 409
Series 2003, 5.30% 2007 1,000 1,013
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds:
Cypress Cove at Healthpark Florida, Inc. Project, Series 1997-A:
5.80% 2006 1,005 1,045
6.25% 2017 5,550 5,631
Shell Point/Alliance Obligated Group, Shell Point Village Project,
Series 1999-A:
5.25% 2006 1,150 1,227
5.50% 2010 1,500 1,639
5.75% 2012 1,360 1,470
5.75% 2013 1,840 1,970
5.75% 2014 500 532
5.75% 2015 1,900 2,007
5.50% 2021 1,550 1,581
5.50% 2029 7,750 7,776
Marshall Creek Community Dev. Dist. (St. Johns County), Special Assessment
Bonds:
Series 2000-A, 7.65% 2032 3,960 4,382
Series 2000-B, 6.75% 2007 350 354
Series 2002, 6.625% 2032 3,615 3,809
Meadow Pointe III Community Dev. Dist. (Pasco County), Capital Improvement
Rev. Bonds:
Series 2001-1, 5.90% 2006 30 30
Series 2003-A, 6.40% 2034 2,000 2,081
Series 2003-B, 5.25% 2007 1,135 1,137
Meadow Pointe IV Community Dev. Dist. (Pasco County), Capital Improvement Rev.
Bonds, Series 2003-B, 5.125% 2007 2,000 2,013
Miami-Dade County:
Health Facs. Auth., Hospital Rev. Ref. Bonds (Miami Children's Hospital
Project), Series 2001-A, AMBAC insured, 5.625% 2016 5,495 6,266
School Board, Cert. of Part., Series 2003-C, MBIA insured, 5.00% 2027
(put 2008) 2,200 2,449
Mid-Bay Bridge Auth., Rev. Ref. Bonds, Series 1993-D, 6.10% 2022 500 520
Northern Palm Beach County Improvement Dist., Water Control and Improvement
Bonds:
Unit of Dev. No. 9A, Series 1996-A:
6.80% 2006 (escrowed to maturity) 590 638
7.30% 2027 (preref. 2006) 1,500 1,736
Unit of Dev. No. 9B, Series 1999:
5.85% 2013 830 877
5.90% 2019 1,085 1,127
6.00% 2029 1,100 1,130
City of Orlando:
Special Assessment Rev. Bonds (Conroy Road Interchange Project), Series
1998-A:
5.50% 2010 1,000 1,013
5.80% 2026 1,000 1,008
Utilities Commission, Water and Electric Rev. Ref. Bonds, Series 2001,
5.25% 2014 4,135 4,833
Palm Beach County, Health Facs. Auth. Retirement Community Rev. Bonds (Adult
Communities Total Services, Inc. Obligated Group), Series 1996, 5.625% 2020 2,750 2,825
Pine Air Lakes Community Dev. Dist., Collier County, Special Assessment Rev.
Bonds, Series 2002, 7.25% 2033 1,500 1,586
City of St. Cloud, Stevens Plantation Community Dev. Dist., Special Assessment
Rev. Bonds, Series 2003-B, 6.375% 2013 4,000 4,077
Sampson Creek Community Dev. Dist. (St. Johns County), Capital Improvement Rev.
Bonds, Series 2000-A, 6.95% 2031 2,695 2,863
South-Dade Venture Community Dev. Dist. (Homestead), Special Assessment Rev.
Bonds, Series 2002, 6.90% 2033 2,000 2,090
Stoneybrook West Community Dev. Dist. (City of Winter Garden, Orange County),
Special Assessment Rev. Bonds:
Series 2000-A, 7.00% 2032 1,775 1,890
Series 2000-B, 6.45% 2010 925 946
Sumter Landing Community Dev. Dist. (Sumter County), Special Assessment Rev.
Bonds, Series 2003:
6.25% 2013 1,000 1,023
6.875% 2023 1,000 1,045
6.95% 2033 1,000 1,043
University Place Community Development Dist. (Manatee County):
Series 2001-A, 7.00% 2032 990 1,058
Series 2001-B, 6.10% 2007 1,550 1,561
Urban Orlando Community Dev. Dist. (City of Orlando), Capital Improvement Rev.
Bonds, Series 2001-A, 6.95% 2033 4,000 4,265
Venetian Community Dev. Dist., Sarasota County, Capital Improvement Rev. Bonds:
Series 2002-A, 6.75% 2034 1,000 1,059
Series 2002-B, 5.95% 2012 3,760 3,841
Vista Lakes Community Dev. Dist. (City of Orlando), Capital Improvement Rev.
Bonds:
Series 2000-B, 6.35% 2005 85 85
Series 2002-B, 5.80% 2008 840 849
Waterlefe Community Dev. Dist. (Manatee County), Capital Improvement Rev. Bonds:
Series 2001-A, 6.95% 2031 490 518
Series 2001-B, 6.25% 2010 900 912
GEORGIA - 1.49%
G.O. Bonds:
Ref. Bonds, Series 1998-E, 5.00% 2005 3,505 3,636
Series 2001-B, 5.25% 2016 8,000 9,049
Municipal Electric Auth.:
General Power Rev. Bonds, Series X, 6.50% 2012 1,215 1,453
Project One Senior Bond, Fourth Crossover Series, MBIA insured, 6.50% 2012 5,700 6,848
City of Atlanta:
Airport Facs. Rev. Ref. Bonds, Series 1994-A, AMBAC insured, 6.50% 2009 1,000 1,197
Tax Allocation Bonds (Atlantic Station Project), Series 2001:
7.75% 2014 3,000 3,162
7.90% 2024 10,000 10,590
Water and Wastewater Rev. Bonds, Series 1999-A, FGIC insured, 5.50% 2022 8,500 9,950
Housing Auth. of the County of DeKalb, Multi-family Housing Rev. Ref. Bonds
(The Park at Briarcliff Apartments Project), Series 1998-A, 4.55%
2028 (put 2008) 5,985 6,369
HAWAII - 0.32%
G.O. Bonds of 1997, Series CN, FGIC insured, 5.25% 2013 3,000 3,345
City and County of Honolulu:
G.O. Bonds:
Ref. and Improvement, Series 1993-B:
5.00% 2013 1,370 1,561
5.00% 2013 (escrowed to maturity) 630 726
Series 2001-A, FSA insured, 5.375% 2012 2,000 2,313
Wastewater System Rev. Bonds (First Bond Resolution), Senior Series 2001,
AMBAC insured:
5.50% 2015 1,875 2,142
5.50% 2016 1,000 1,142
ILLINOIS - 9.11%
G.O. Bonds, Illinois FIRST, Series of May 2001, FSA insured, 5.50% 2016 2,000 2,349
Build Illinois Bonds (Sales Tax Rev. Bonds), Illinois FIRST:
Series of March 2001, 5.50% 2016 3,000 3,421
Series of June 2001:
5.50% 2016 7,470 8,518
5.50% 2017 8,000 9,122
Series of September 2001:
5.375% 2015 2,500 2,831
5.375% 2016 1,500 1,698
Civic Center Bonds (Special State Obligation Bonds), Series 1991, AMBAC
insured, 6.25% 2020 6,500 8,171
Dev. Fin. Auth.:
Rev. Bonds (Provena Health), Series 1998-A, MBIA insured, 5.50% 2010 5,120 5,868
Revolving Fund Rev. Bonds, Series 2002 (Master Trust):
5.50% 2016 7,165 8,164
5.50% 2017 2,885 3,276
Educational Facs. Auth.:
Adjustable Medium Term Rev. Bonds, Field Museum of Natural History,
Series 2002:
4.45% 2036 (put 2014) 1,000 1,054
4.60% 2036 (put 2015) 6,000 6,333
4.75% 2036 (put 2016) 2,000 2,127
Rev. Bonds:
Loyola University of Chicago, Series 2003-A, 5.00% 2026 5,000 5,114
MJH Education Assistance Illinois III LLC, Series 1999-D, AMBAC insured,
5.45% 2014 1,500 1,696
Northwestern University, Series 2003, 5.00% 2017 3,255 3,600
Rev. Ref. Bonds, The Art Institute of Chicago, Series 2003-A:
5.375% 2018 1,000 1,085
5.375% 2023 1,500 1,589
Student Housing Rev. Bonds, Educational Advancement Fund, Inc. (University
Center Project), Series 2002:
6.625% 2017 3,860 4,193
6.00% 2022 1,250 1,285
6.25% 2030 7,000 7,269
6.25% 2034 4,500 4,636
Health Facs. Auth.:
Rev. Bonds:
Advocate Health Care Network:
Series 1998-A:
5.00% 2007 700 765
5.00% 2007 (escrowed to maturity) 920 1,023
5.00% 2008 810 892
5.00% 2008 (escrowed to maturity) 1,060 1,195
4.50% 2009 840 903
4.50% 2009 (preref. 2008) 1,090 1,214
4.625% 2010 1,310 1,401
4.625% 2010 (preref. 2008) 1,690 1,892
Series 1998-B:
4.875% 2013 2,130 2,242
4.875% 2013 (preref. 2008) 330 373
MBIA insured, 5.25% 2018 2,115 2,303
MBIA insured, 5.25% 2018 (preref. 2008) 385 442
Series 2000:
6.125% 2011 2,835 3,290
6.25% 2012 4,425 5,106
Alexian Brothers Health System, Series 1999, FSA insured:
5.00% 2008 1,230 1,362
5.25% 2012 6,960 7,760
5.125% 2028 2,000 2,074
Centegra Health System, Series 1998:
5.50% 2008 1,640 1,821
5.50% 2009 2,290 2,521
5.50% 2010 2,440 2,656
5.20% 2012 2,200 2,323
5.25% 2013 2,430 2,552
5.25% 2018 5,050 5,177
The Children's Memorial Hospital, Series 1999-A, AMBAC insured:
5.75% 2010 1,835 2,128
5.75% 2011 1,690 1,937
Covenant Retirement Communities, Inc.:
Series 2001, 5.875% 2031 3,500 3,502
Series 2002-B, 6.125% 2028 1,000 1,023
Edward Hospital Obligated Group, Series 2001-A, FSA insured:
5.50% 2012 2,545 2,931
5.50% 2017 1,500 1,671
Evangelical Hospitals Corp., Series 1992-C, 6.25% 2022 (escrowed to maturity) 4,000 4,943
Friendship Village of Schaumburg, Series 1997-A, 5.25% 2018 4,675 4,597
Hospital Sisters Services, Inc. - Obligated Group), Series 1998-A, MBIA
insured:
5.25% 2008 4,000 4,491
5.375% 2013 1,785 2,002
Lutheran Senior Ministries Obligated Group - Lutheran Hillside Village
Project, Series 2001-A, 7.375% 2031 1,500 1,513
Northwestern Memorial Hospital, Series 1994-A, 6.00% 2024 2,000 2,057
OSF Healthcare System:
Series 1993, 5.75% 2007 5,760 5,891
Series 1999, 6.25% 2019 4,500 4,926
Riverside Health System:
Series 2000, 6.85% 2029 2,500 2,758
Series 2002, 5.75% 2022 5,000 5,249
Sherman Health Systems, Series 1997, AMBAC insured, 5.50% 2010 2,595 2,892
Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997-A:
5.50% 2008 1,000 1,114
5.80% 2016 8,000 8,570
Edward Hospital Project, Series 1993-A:
5.75% 2009 1,325 1,356
6.00% 2019 1,435 1,469
Fairview Obligated Group Project, Series 1995-A:
6.50% 2006 770 801
7.40% 2023 3,000 3,013
Lutheran General Health, Series 1993-C, 6.00% 2018 2,705 3,133
Housing Dev. Auth., Multi-family Housing Bonds, Series 1992-A, 7.00% 2010 1,430 1,445
Metropolitan Pier and Exposition Auth., McCormick Place Expansion Project Ref.
Bonds, Series 2002-B, MBIA insured, 5.25% 2011 2,000 2,316
Central Lake County, Joint Action Water Agcy., Water Rev. Ref. Bonds, Series
2003, AMBAC insured, 5.25% 2015 5,095 5,792
City of Chicago:
G.O. Bonds:
City Colleges of Chicago Capital Improvement Project, Series 1999, FGIC
insured, 0% 2016 7,700 4,657
Emergency Telephone System, Ref. Series 1999, FGIC insured, 5.25% 2020 2,000 2,282
Metropolitan Water Reclamation Dist. of Greater Chicago, Cook County:
G.O. Capital Improvement Bonds:
Series of March 1993, 5.25% 2004 5,000 5,161
Limited Tax Series D of December 2002, 5.00% 2012 2,650 3,034
G.O. Ref. Bonds, Series of March 1993:
5.30% 2005 5,325 5,710
5.50% 2010 2,275 2,694
O'Hare International Airport:
General Airport Rev. Ref. Bonds, Series 1993-A, MBIA insured, 5.00% 2012 5,815 6,559
Passenger Fac. Charge Rev. Bonds, Series 1996-A, AMBAC insured, 5.60% 2010 2,000 2,171
Special Facs. Rev. Ref. Bonds (United Air Lines, Inc. Project), Series
1999-A, 5.35% 2016 (2) 3,685 898
School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O.
Bonds (Dedicated Tax Rev.):
Series 1997, AMBAC insured, 6.75%2012 1,000 1,272
Series 1997-A, AMBAC insured:
0% 2011 2,745 2,132
0% 2014 7,085 4,630
0% 2015 3,245 1,999
Series 1998-B, FGIC insured, 0% 2014 2,000 1,305
Tax Increment Allocation Bonds (Central Loop Redev. Project), Capital
Appreciation Bonds, Series 2000-A, AMBAC insured:
0% 2007 7,000 6,476
0% 2008 7,000 6,230
Water Rev. Bonds, Series 1997, FGIC insured, 0% 2014 3,500 2,297
County of Cook, G.O. Capital Improvement Bonds, Series 1996, FGIC insured,
6.50% 2011 4,000 4,994
Regional Transportation Auth., Cook, DuPage, Kane, Lake, McHenry and Will
Counties, G.O. Bonds, FGIC insured:
Series 1994-D, 7.75% 2019 4,500 6,400
Series 2002-B, 5.375% 2014 4,000 4,618
Township High School Dist. Number 205, Cook County (Thornton), G.O. Limited
Capital Appreciation Bonds, Series 1998-D, FSA insured, 0% 2008 4,730 4,209
Board of Trustees of the University of Illinois, AMBAC insured:
Auxiliary Facs. System Rev. Ref. Bonds, Series 2001-A, 5.50% 2021 2,670 3,117
Cert. of Part. (Utility Infrastructure Projects), Series 2001-A, 5.375% 2015 3,530 3,946
Community Unit School Dist.:
Number 308, Kendall, Kane and Will Counties, G.O. School Bonds, Series 2002-B,
FGIC insured, 5.25% 2015 2,775 3,157
Number 365-U, Will County (Valley View), G.O. Capital Appreciation School
Bonds, Series 2002, FSA insured, 0% 2017 2,000 1,100
INDIANA - 2.87%
Dev. Fin. Auth., Exempt Facs. Rev. Ref. Bonds (Inland Steel Co. Project No. 15),
Series 1997-A, 5.75% 2011 4,000 3,024
Educational Facs. Auth., Educational Facs. Rev. Bonds (University of
Evansville Project), Series 1996, 5.25% 2005 1,000 1,027
Health Fac. Fncg. Auth.:
Hospital Rev. Bonds:
Charity Obligated Group:
Series 1997-D, 5.00% 2026 (preref. 2007) 13,990 15,317
Series 1999-D, 5.25% 2016 (preref. 2009) 3,000 3,494
Clarian Health Partners, Inc., Series 1996-A:
5.50% 2016 10,250 10,857
MBIA insured:
5.25% 2008 1,700 1,886
5.50% 2016 4,000 4,390
Holy Cross Health System Corp., Series 1998, MBIA insured, 5.375% 2010 7,095 7,953
Sisters of St. Francis Health Services, Inc. Project, Series 1997-A,
MBIA insured, 5.00% 2008 1,000 1,114
Rev. Bonds (Ascension Health Credit Group), Series 2002-F:
5.50% 2015 1,275 1,435
5.50% 2016 1,605 1,791
5.00% 2018 1,735 1,841
State Office Building Commission:
Correctional Facs. Program Rev. Bonds, Series 1995-B, AMBAC insured, 6.25% 2012 8,490 10,446
Facs. Rev. Bonds (New Castle Correctional Fac.), Series 2002-A, FGIC insured:
5.25% 2012 2,590 2,987
5.50% 2016 5,650 6,697
State Revolving Fund Program Bonds, Series 2001-A:
5.375% 2013 2,000 2,321
5.375% 2014 2,000 2,323
5.375% 2015 4,000 4,615
5.375% 2015 2,250 2,596
Transportation Fin. Auth., Airport Facs. Lease Rev. Bonds, Series A, 6.50% 2007 1,000 1,014
Boone County Hospital Association, Lease Rev. Bonds, Series 2001, FGIC insured,
5.00% 2010 1,255 1,419
The Trustees of Indiana University, Indiana University Student Fee Bonds,
Series O, FGIC insured, 5.375% 2016 4,690 5,480
Trustees of Ivy Tech State College, Ivy Tech State College Student Fee Bonds,
Series H, AMBAC insured, 5.00% 2014 1,000 1,118
Marion County, Convention and Recreational Facs. Auth., Excise Taxes Lease
Rental Rev. Ref. Senior Bonds, Series 2001-A, MBIA insured, 5.50% 2015 3,370 3,840
The Trustees of Purdue University, Purdue University Student Fee Bonds,
Series R, 5.375% 2015 1,250 1,432
IOWA - 0.72%
Fin. Auth.:
Hospital Rev. Bonds:
Catholic Health Initiatives, Series 2000-A, 6.00% 2018 4,395 4,955
Mercy Medical Center Project, Series 1999, FSA insured:
5.50% 2011 1,420 1,612
5.60% 2012 1,375 1,575
Hospital Rev. and Ref. Bonds:
Mercy Health Services Obligated Group, Series 1997-V, 5.00% 2010
(escrowed to maturity) 590 662
Trinity Health Credit Group, Series 2000-B, AMBAC insured, 6.00% 2027 5,000 5,765
Single-family Mortgage Bonds, Series 1997-F, 5.55% 2016 1,190 1,263
City of Ames, Iowa, Hospital Rev. Ref. Bonds (Mary Greeley Medical Center),
Series 2003, AMBAC insured, 5.00% 2013 1,000 1,129
Polk County, Rev. Bonds, Catholic Health Initiatives, Series 1997-A:
5.50% 2007 1,520 1,702
5.125% 2011 1,500 1,609
5.125% 2012 3,170 3,376
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2012 1,500 1,477
KANSAS - 0.03%
City of Lenexa (Lakeview Village, Inc. - Southridge Project), Health Care Fac.
Rev. Bonds, Series 2002-C, 6.875% 2032 1,000 1,064
KENTUCKY - 0.51%
Econ. Dev. Fin. Auth., Hospital System Ref. and Improvement Rev. Bonds
(Appalachian Regional Healthcare, Inc. Project), Series 1997:
5.20% 2004 1,540 1,551
5.60% 2008 630 637
5.60% 2009 3,305 3,299
5.70% 2010 490 488
5.75% 2011 2,190 2,163
5.85% 2017 2,000 1,915
State Property and Buildings Commission, Rev. and Rev. Ref. Bonds, Project
No. 69, Series C, FSA insured, 5.00% 2004 2,090 2,126
City of Ashland, Pollution Control Rev. Ref. Bonds (Ashland Inc. Project),
Series 1999, 5.70% 2009 5,250 5,678
LOUISIANA - 3.05%
Health Education Auth. (Lambeth House Project):
Rev. Bonds, Series 1996, 9.00% 2026 (preref. 2006) 9,000 10,909
Rev. Ref. Bonds, Series 1998-A:
5.50% 2010 3,020 3,020
6.15% 2018 2,000 2,010
6.20% 2028 3,950 3,916
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds
(Capital Project and Equipment Acquisition Program), Series 2000-A, AMBAC
insured, 6.30% 2030 11,500 14,346
Public Facs. Auth.:
Hospital Rev. Ref. Bonds (Franciscan Missionaries of Our Lady Health System
Project), Series 1998-A, FSA insured:
5.75% 2014 3,495 4,171
5.75% 2015 3,825 4,540
5.75% 2018 4,000 4,756
Rev. Bonds (Ochsner Clinic Foundation Project), Series 2002-A, MBIA insured,
5.375% 2015 3,000 3,422
Jefferson Parish Hospital Services (West Jefferson Medical Center), Hospital
Rev. Bonds, Series 1998-A, FSA insured:
Dist. No. 1:
5.25% 2011 2,070 2,296
5.25% 2012 1,930 2,152
Dist. No. 2, 5.25% 2011 2,000 2,241
Parish of Morehouse, Pollution Control Rev. Ref. Bonds, Series 2001-A,
5.25% 2013 8,500 9,366
Parish of West Feliciana:
Pollution Control Rev. Bonds (Gulf States Utilities Co. Project),
Series 1985-B, 9.00% 2015 2,000 2,091
Pollution Control Rev. Ref. Bonds (Entergy Gulf States, Inc. Project),
Series 1999-A, 5.65% 2028 (put 2004) 10,500 10,696
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2030 29,920 26,953
MAINE - 0.17%
Health and Higher Educational Facs. Auth., Rev. Bonds, Piper Shores Issue,
Series 1999-A:
7.50% 2019 3,000 3,140
7.55% 2029 2,575 2,684
MARYLAND - 0.99%
Community Dev. Administration, Dept. of Housing and Community Dev.,
Single-family Program Bonds, 1997 First Series, 5.25% 2005 5,815 6,045
Econ. Dev. Corp., Rev. Bonds (Anne Arundel County Golf Course System),
Series 2001, 8.25% 2028 2,200 2,107
Health and Higher Educational Facs. Auth.:
Howard County General Hospital Issue, Rev. Bonds, Series 1993 (escrowed
to maturity):
5.50% 2013 2,000 2,048
5.50% 2021 1,225 1,254
MedStar Health Issue, Rev. Ref. Bonds, Series 2004:
5.00% 2011 1,000 1,072
5.75% 2014 2,000 2,205
5.375% 2024 3,225 3,240
PUMH of Maryland, Inc. Issue, First Mortgage Rev. Bonds (Heron Point of
Chestertown), Series 1998-A, 5.75% 2019 2,400 2,394
Anne Arundel County, Special Obligation Bonds:
Arundel Mills Project, Series 1999, 7.10% 2029 5,750 6,255
National Business Park Project, Series 2000, 7.375% 2028 1,000 1,087
Calvert County, Econ. Dev. Rev. Bonds (Asbury-Solomons Island Fac.), Series
1995, 8.625% 2024 (preref. 2005) 2,500 2,708
Frederick County, Special Obligation Bonds (Urbana Community Dev. Auth.),
Series 1998, 6.625% 2025 3,000 3,127
Montgomery County, Special Obligation Bonds (West Germantown Dev. Dist.),
Senior Series 2002-A, RADIAN insured, 5.375% 2020 1,000 1,087
MASSACHUSETTS - 1.75%
G.O. Bonds:
Consolidated Loan of 2001, Series D, MBIA insured, 5.50% 2012 2,000 2,359
Consolidated Loan, Series 2003-A, 5.25% 2017 (preref. 2013) 5,000 5,765
Ref. Bonds, Series 2003-D:
5.50% 2016 7,000 8,217
5.50% 2017 5,000 5,875
5.50% 2018 5,000 5,868
Bay Transportation Auth.:
General Transportation System Ref. Bonds, Series 1994-A, 7.00% 2007 5,000 5,770
Senior Sales Tax Bonds, Series C, 5.25% 2013 2,000 2,323
Health and Educational Facs. Auth. Rev. Bonds:
Massachusetts Institute of Technology Issue, Series K, 5.50% 2022 2,000 2,363
Partners HealthCare System Issue:
Series C, 6.00% 2015 1,335 1,541
Series E, 5.00% 2014 1,085 1,196
Housing Fin. Agcy., Multi-family Housing Bonds, Series 2003-B1, 4.50% 2014 1,000 1,038
Municipal Wholesale Electric Co., Power Supply Project Rev. Bonds,
MBIA insured:
Nuclear Project No. 4, 5.25% 2015 2,000 2,250
Nuclear Project No. 6, Series A:
5.00% 2010 1,000 1,136
5.25% 2015 5,000 5,624
State College Building Auth., Project and Rev. Ref. Bonds, Series 2003-B,
XLCA insured:
5.375% 2017 3,550 4,115
5.375% 2018 5,045 5,840
MICHIGAN - 3.60%
Hospital Fin. Auth.:
Hospital Rev. Bonds:
Detroit Medical Center Obligated Group, Series 1998-A:
5.00% 2013 1,000 738
5.00% 2014 1,525 1,099
Henry Ford Health System, Series 1999-A:
5.70% 2011 2,985 3,336
5.80% 2012 1,075 1,194
Hospital Rev. Ref. Bonds:
Daughters of Charity, National Health System, 5.50% 2005 (escrowed to
maturity) 505 529
Detroit Medical Center Obligated Group, Series 1993-B, AMBAC insured,
5.00% 2006 1,000 1,036
Genesys Health System Obligated Group, Series 1995-A:
8.00% 2005 (escrowed to maturity) 8,880 9,531
8.10% 2013 (preref. 2005) 5,000 5,648
8.125% 2021 (preref. 2005) 4,500 5,085
7.50% 2027 (preref. 2005) 4,520 4,976
Genesys Regional Medical Center Obligated Group, Series 1998-A, 5.50% 2004
(escrowed to maturity) 2,305 2,367
Hackley Hospital Obligated Group), Series 1998-A:
5.00% 2008 1,215 1,297
5.30% 2013 2,400 2,486
Henry Ford Health System, Series 2003-A:
5.50% 2014 2,440 2,696
5.50% 2015 5,000 5,493
5.50% 2016 2,500 2,717
McLaren Obligated Group, Series 1993-A, 5.375% 2013 2,985 3,048
Pontiac Osteopathic, Series 1994-A:
5.375% 2006 350 353
6.00% 2014 1,000 1,008
Sinai Hospital of Greater Detroit, Series 1995:
6.00% 2008 1,645 1,457
6.625% 2016 2,010 1,590
Sparrow Obligated Group, Series 2001:
5.25% 2010 1,000 1,115
5.25% 2011 1,285 1,430
Trinity Health Credit Group, Series 2002-C, 5.375% 2023 1,000 1,059
Variable Rate Rev. Bonds (Ascension Health Credit Group):
Series 1999-B3, 5.30% 2033 (put 2006) 5,625 6,184
Series 1999-B4, 5.375% 2033 (put 2007) 3,000 3,353
Municipal Bond Auth.:
Public School Academy Facs. Program Rev. Bonds:
Detroit Academy of Arts and Sciences Project, Series 2001-A:
7.90% 2021 1,000 1,046
8.00% 2031 1,000 1,045
YMCA Service Learning Academy Project, Series 2001, 7.75% 2031 4,150 4,305
Public Power Agency, Belle River Project Rev. Ref. Bonds, Series 2002-A, MBIA
insured, 5.25% 2018 2,000 2,292
South Central Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002,
AMBAC insured, 5.00% 2009 2,000 2,278
State Building Auth., Rev. Ref. Bonds (Facs. Program), Series 2001-I,
5.50% 2016 3,000 3,438
State Revolving Fund Rev. Bonds, Clean Water Revolving Fund Rev. Bonds, Series
2001, 5.25% 2016 3,000 3,388
State Trunk Line Fund Bonds, Series 2001-A, 5.50% 2015 4,000 4,587
Strategic Fund, Limited Obligation Rev. Ref. Bonds (Detroit Edison Co.
Pollution Control Bonds Project), Series 1995-CC, AMBAC insured, 4.85%
2030 (put 2011) 2,500 2,822
Econ. Dev. Corp. of the Township of Cornell, Environmental Improvement Rev.
Ref. Bonds (MeadWestvaco-Escanaba Paper Company Project), Series 2002,
5.875% 2018 4,500 4,783
City of Detroit:
G.O. Rev. Bonds (Unlimited Tax), Series 1995-B:
7.00% 2004 2,500 2,513
6.25% 2008 1,730 1,815
6.25% 2009 1,195 1,249
6.25% 2010 1,250 1,303
Downtown Dev. Auth., Tax Increment Bonds (Dev. Area No. 1 Projects), Series
1996-C, 6.20% 2017 (preref. 2006) 2,900 3,286
School Dist. of the City of Detroit, Wayne County, School Building and Site
Improvement Bonds:
Ref. Bonds, Series 1998-C, FGIC insured, 5.25% 2025 1,955 2,204
Unlimited Tax G.O., Series 2001-A, Michigan School Bond Loan Fund insured,
5.00% 2004 2,420 2,437
City of Flint, Hospital Building Auth., Hurley Medical Center:
Rev. Ref. Bonds, Series 1998-A, 5.25% 2016 1,250 1,161
Rev. Rental Bonds, Series 1998-B, 5.375% 2028 1,000 866
Kent Hospital Fin. Auth. Rev. Bonds (Spectrum Health):
Series 2001-A, 5.50% 2014 1,000 1,116
Series 2001-B, 5.50% 2017 1,100 1,206
Regents of the University of Michigan, Hospital Rev. Ref. Bonds, Series 2002,
5.00% 2005 5,975 6,368
MINNESOTA - 0.04%
Housing Fin. Agcy., Single-family Mortgage Bonds, Series 1994-E, 5.60% 2013 1,195 1,237
MISSISSIPPI - 0.82%
G.O. Ref. Bonds, Series 2003-A:
5.25% 2013 2,000 2,330
5.25% 2014 4,000 4,675
5.25% 2015 3,000 3,495
5.25% 2017 8,000 9,326
Dev. Bank, Special Obligation Bonds (Capital Projects and Equipment Acquisition
Program), Series 2001-A, AMBAC insured, 5.00% 2031 7,500 7,976
Hospital Equipment and Facs. Auth., Rev. Bonds (Forrest County General Hospital
Project), Series 2000, FSA insured, 5.50% 2027 1,000 1,080
MISSOURI - 0.16%
Transportation Dev. Dist. (Missouri Bottom Road/Taussig Road) (Hazelwood, St.
Louis County), Transportation Rev. Bonds, Series 2002, 7.20% 2033 5,500 5,791
NEBRASKA - 0.00%
City of Kearney, Industrial Dev. Rev. Bonds:
Series 2003-A, 8.00% 2012 78 78
Series 2003-B, 0% 2012 871 - *
NEVADA - 2.68%
Housing Division, Single-family Mortgage Bonds, Series 1999-A1, 4.75% 2012 495 523
Clark County:
G.O. (Limited Tax) Bank Bonds, Series 2001, FGIC insured, 5.50% 2016 3,000 3,423
Special Improvement, Local Improvement Bonds:
Dist. No. 121 (Southern Highlands Area), Series 1999:
7.00% 2009 2,410 2,499
7.50% 2019 15,685 17,195
Dist. No. 128 (Summerlin Centre):
Series 2001-A, 6.30% 2021 1,000 1,021
Series 2001-B, 6.75% 2021 1,800 1,859
Dist. No. 142 (Mountain's Edge), Series 2003:
5.60% 2013 1,740 1,788
5.75% 2014 2,320 2,389
6.375% 2023 5,375 5,505
City of Henderson:
Health Fac. Rev. Bonds (Catholic Healthcare West):
Series 1998-A, 5.375% 2026 7,000 6,839
Series 1999-A, 6.75% 2020 1,480 1,630
Local Improvement, Limited Obligation Improvement Bonds:
Dist. No. T-4C (Green Valley Properties), Limited Obligation Ref. Bonds,
Series 1999-A:
5.65% 2009 1,450 1,497
5.75% 2013 3,875 3,993
5.90% 2018 2,905 2,978
Dist. No. T-14 (Anthem Master Planned Community):
5.10% 2012 1,640 1,651
5.55% 2017 3,730 3,759
5.80% 2023 6,000 6,035
City of Las Vegas:
G.O. (Limited Tax) Sewer and Flood Control Bonds, Series 2001, FGIC insured,
5.375% 2015 2,855 3,227
Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont Street Project),
Series 2003-A, 5.00% 2014 3,920 4,089
Special Improvement Dist. (Summerlin Area), Local Improvement Bonds:
No. 808, Series 2001:
6.00% 2010 1,000 1,035
6.375% 2014 2,075 2,146
6.75% 2021 4,495 4,647
No. 809, Series 2003, 5.65% 2023 1,400 1,385
Las Vegas Monorail Project Rev. Capital Appreciation Bonds, 1st Tier Series
2000, AMBAC insured, 0% 2010 3,545 2,968
City of North Las Vegas, Special Improvement Dist. No. 60 (Aliante), Local
Improvement Bonds, Series 2002:
6.125% 2017 5,000 5,135
6.40% 2022 1,000 1,024
Truckee Meadows Water Auth., Water Rev. Bonds, Series 2001-A, FSA insured,
5.50% 2016 3,105 3,543
NEW HAMPSHIRE - 0.03%
Health and Education Facs. Auth., Exeter Hospital Obligated Group Issue,
Series 2001-A, 5.75% 2031 1,000 1,055
NEW JERSEY - 2.03%
G.O. Bonds (Various Purposes), Series E, 5.50% 2004 6,145 6,194
G.O. Ref. Bonds, Series E, 5.00% 2004 7,540 7,655
Econ. Dev. Auth.:
Econ. Dev. Bonds, Kapkowski Road Landfill Reclamation Improvement Dist.
Project (City of Elizabeth), Series 1998-A (preref. 2014):
6.375% 2018 1,000 1,257
6.375% 2031 6,500 8,224
First Mortgage Rev. Fixed-Rate Bonds:
Fellowship Village Project, Series 1995-A, 9.25% 2025 (preref. 2005) 7,000 7,615
Winchester Gardens at Ward Homestead Project), Series 1996-A (preref. 2006):
8.50% 2016 4,000 4,781
8.625% 2025 3,500 4,194
First Mortgage Rev. Ref. Bonds (Fellowship Village Project), Series 1998-A:
4.95% 2005 1,230 1,255
5.50% 2018 2,295 2,349
5.50% 2025 3,000 3,002
Retirement Community Rev. Bonds:
Cedar Crest Village, Inc. Fac.:
Series 2001-A, 7.25% 2031 9,000 9,274
Series 2001-B, 5.50% 2006 1,000 1,000
Seabrook Village, Inc. Fac., Series 2000-A, 8.25% 2030 6,000 6,473
School Facs. Construction Bonds, Series 2004-G, 4.00% 2010 1,000 1,083
Education Facs. Auth. Dormitory Safety Trust Fund Bonds, Series 2001-A,
5.00% 2005 3,785 3,937
Gloucester County Improvement Auth., Solid Waste Resource Recovery Rev. Ref.
Bonds (Waste Management, Inc. Project), Series 1999-A, 6.85% 2029 (put 2009) 1,585 1,876
Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds,
Series 2003, 4.375% 2019 1,000 978
NEW MEXICO - 0.12%
Supplemental Severance Tax Bonds, Series 2002-A, 5.00% 2010 3,945 4,329
NEW YORK - 9.49%
Dormitory Auth.:
Center for Nursing/Rehabilitation, Inc. Rev. Bonds, FHA insured, 5.45% 2017 2,100 2,354
City University System Consolidated Third General Resolution Rev. Bonds,
Series 1998-2, AMBAC insured, 5.50% 2008 2,000 2,265
Edgar Health Care Center (Nursing Home) Rev. Bonds, FHA insured, 4.90% 2013 2,375 2,543
Mental Health Services Facs. Improvement Rev. Bonds:
Series 1997-A:
6.00% 2007 1,745 1,973
6.00% 2007 (preref. 2007) 5 6
Series 1997-B:
6.00% 2007 2,485 2,817
6.00% 2007 (preref. 2007) 15 17
5.60% 2008 1,295 1,441
5.60% 2008 (preref. 2007) 5 6
Series 1998-B:
5.375% 2009 1,270 1,430
5.00% 2010 1,495 1,645
5.00% 2010 1,530 1,681
Series 1998-C, 5.00% 2010 1,760 1,937
Secured Hospital:
Rev. Bonds (Interfaith Medical Center), Series 1998-D, 5.25% 2007 2,000 2,194
Rev. Ref. Bonds:
Bronx-Lebanon Hospital Center, Series 1998-E, MBIA insured, 5.20% 2014 8,520 9,412
Brookdale Hospital, Series 1998-J, 5.125% 2009 2,500 2,785
St. Luke's-Roosevelt Hospital Center, Mortgage Hospital Rev. Bonds, Series
2000-A, FHA insured, 5.75% 2021 5,000 5,597
State University Educational Facs. Rev. Bonds:
Series 1990-A, 7.50% 2013 3,500 4,641
Series 1990-B:
7.50% 2011 1,160 1,415
7.50% 2011 (preref. 2010) 560 711
Series 1997, 6.00% 2007 3,000 3,388
Lease Rev. Bond, Series 2003, XLCA insured, 5.25% 2032 (put 2013) 8,000 9,126
Third General Resolution Rev. Bonds (State University Educational Facs. Issue),
Series 2002-B (put 2012):
5.25% 2023 13,000 14,780
6.00% 2029 10,000 11,888
Environmental Facs. Corp., State Clean Water and Drinking Water, Revolving
Funds Rev. Bonds:
Series 2002-I, 5.25% 2016 2,295 2,594
New York City Municipal Water Fin. Auth. Projects, Second Resolution Bonds,
Series 2002-K, 5.50% 2017 5,000 5,982
Health and Hospitals Corp., Health System Bonds, Series 2002-A, FSA insured:
5.50% 2015 2,000 2,286
5.50% 2016 2,605 2,964
Housing Fin. Agcy.:
Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A:
6.00% 2006 3,000 3,317
6.00% 2007 2,000 2,191
Service Contract Obligation Rev. Ref. Bonds, Series 1997-C, 5.20% 2010 1,750 1,919
Local Government Assistance Corp., Series 1991-C, Capital Appreciation Bonds,
0% 2005 5,000 4,936
Metropolitan Transportation Auth., State Service Contract Ref. Bonds, Series
2002-A, 5.125% 2024 8,000 8,438
State Medical Care Facs. Fin. Agcy., Hospital Insured Mortgage Rev. Ref. Bonds,
Series 1994-A, FHA insured:
5.10% 2010 765 782
5.25% 2014 5,000 5,104
State Thruway Auth.:
Local Highway and Bridge Service Contract Bonds:
Series 2001, 5.25% 2015 (preref. 2011) 2,500 2,911
Series 2002, 5.50% 2015 13,250 15,009
State Personal Income Tax Rev. Bonds:
Econ. Dev. and Housing, Series 2003-A, 5.00% 2011 5,000 5,720
Transportation, Series 2002-A:
5.50% 2015 5,000 5,717
5.50% 2016 7,000 7,967
Urban Dev. Corp.:
Correctional Capital Facs. Rev. Bonds:
Ref. Series 1993-A, 5.30% 2005 1,800 1,863
Series 7, 5.25% 2009 1,375 1,508
Correctional and Youth Facs. Service Contract Rev. Bonds (Empire State Dev.
Corp.), Series 2002-A (put 2011):
5.00% 2017 13,000 14,533
5.50% 2017 5,000 5,743
Castle Rest Residential Health Care Fac., Mortgage Rev. Bonds, Series 1997-A,
FHA insured, 5.60% 2017 1,700 1,728
Long Island Power Auth., Electric System General Rev. Bonds:
Series 2003-B:
5.25% 2012 8,615 9,749
5.25% 2013 1,500 1,689
5.25% 2014 4,500 5,060
Series 2003-C:
5.50% 2014 2,400 2,724
5.50% 2021 1,000 1,096
City of New York:
G.O. Bonds:
Fiscal 1995 Series F (preref. 2005):
6.60% 2010 2,000 2,127
6.625% 2025 1,500 1,596
Fiscal 1996 Series E, 6.50% 2006 3,000 3,288
Fiscal 2001:
Series F, 5.25% 2011 6,260 7,068
Series H, 5.25% 2016 3,510 3,816
Fiscal 2002:
Series B, 5.50% 2012 7,810 8,879
Series C, 5.25% 2021 6,720 7,139
Series E, 5.75% 2012 1,500 1,749
Series G:
XLCA insured, 5.50% 2012 1,000 1,170
5.625% 2013 5,000 5,724
Fiscal 2003 Series A, 5.125% 2010 3,000 3,376
Transitional Fin. Auth., Future Tax Secured Bonds:
Fiscal 1998:
Series A, 5.00% 2027 (preref. 2007) 1,440 1,617
Series B, 4.50% 2027 5,000 4,989
Series C, 5.00% 2018 2,000 2,110
Fiscal 2001 Series C, 5.375% 2015 2,000 2,245
Ref. Bonds, Fiscal 2003:
Series A, 5.50% 2026 29,300 34,129
Series B, 5.25% 2029 (expected maturity 2011) 11,600 13,206
Suffolk County Industrial Dev. Agcy., Continuing Care Retirement Community Rev.
Bonds (Peconic Landing at Southhold, Inc. Project), Series 2000-A, 8.00% 2030 2,000 2,064
Tobacco Settlement Fncg. Corp., Asset-backed Rev. Bonds, Series 2003-B1,
5.00% 2010 3,000 3,341
Triborough Bridge and Tunnel Auth.:
General Purpose and Rev. Bonds, Series Y, 6.00% 2012 1,000 1,200
General Rev. Ref. Bonds, Series 2002-B:
5.00% 2010 3,500 4,002
5.25% 2015 3,000 3,468
5.25% 2016 4,100 4,610
NORTH CAROLINA - 2.42%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Series 1993-B:
6.00% 2006 3,120 3,347
7.25% 2007 5,425 6,145
7.00% 2008 10,720 12,364
6.125% 2009 2,000 2,273
6.00% 2022 2,815 3,248
6.00% 2026 1,990 2,274
MBIA insured, 6.00% 2026 2,500 3,056
Series 1993-C, 5.00% 2021 2,300 2,300
Series 1993-D, 5.60% 2016 1,000 1,011
Series 1999-B:
5.55% 2014 4,450 4,811
5.60% 2015 2,500 2,700
5.65% 2016 2,000 2,153
5.70% 2017 4,775 5,134
Series 1999-D, 6.75% 2026 3,500 3,927
Series 2003-A:
5.50% 2011 1,000 1,111
5.50% 2012 2,500 2,783
Series 2003-C:
5.25% 2013 2,000 2,187
5.375% 2016 2,500 2,703
Series 2003-D:
5.375% 2010 1,000 1,106
5.50% 2014 2,500 2,789
5.50% 2014 2,000 2,231
Municipal Power Agcy. Number 1 (Catawba Electric Rev. Bonds):
Series 1999-A, MBIA insured, 6.00% 2008 3,935 4,509
Series 1999-B, 6.625% 2010 1,475 1,755
Series 2003-A:
AMBAC insured, 5.25% 2015 2,000 2,263
FSA insured, 5.25% 2016 3,000 3,376
County of Catawba, Hospital Rev. Ref. Bonds (Catawba Memorial Hospital Project),
Series 1999, AMBAC insured, 4.60% 2010 1,000 1,113
County of New Hanover, Hospital Rev. Bonds (New Hanover Regional Medical
Center Project), Series 1999, MBIA insured, 5.25% 2011 1,995 2,256
OHIO - 0.83%
Higher Education G.O. Bonds, Series 2001-B, 4.25% 2008 6,380 6,999
Higher Educational Fac. Commission, Adjustable Rev. Bonds (Kenyon College
2002 Project):
4.85% 2037 (put 2014) 2,000 2,146
5.05% 2037 (put 2016) 2,300 2,494
Water Dev. Auth., Water Pollution Control Loan Fund Rev. Bonds, Water Quality,
Series 2002, 5.25% 2015 2,000 2,286
County of Knox, Hospital Facs. Rev. Ref. Bonds (Knox Community Hospital),
Series 1998, RADIAN insured, 4.60% 2007 2,175 2,352
County of Lorain:
Health Care Facs. Rev. Ref. Bonds (Kendal at Oberlin), Series 1998-A,
5.25% 2021 2,000 1,957
Hospital Facs. Rev. Bonds (Catholic Healthcare Partners):
Ref. and Improvement Bonds, Series 2001-A, 5.25% 2008 2,000 2,229
Series 2002-A:
5.50% 2013 1,000 1,122
5.50% 2016 2,665 2,930
County of Montgomery, Hospital Facs. Rev. Bonds (Kettering Medical Center
Network Obligated Group), Series 1999, 6.75% 2022 1,000 1,111
County of Richland, Hospital Facs. Rev. Improvement Bonds (MedCentral Health
System Obligated Group), Series 2000-B:
6.375% 2022 1,250 1,359
6.375% 2030 2,000 2,151
OKLAHOMA - 0.32%
Health System Rev. Bonds, Baptist Medicine Center of Oklahoma, Series 1995-C,
AMBAC insured, 6.375% 2009 2,500 2,708
Industries Auth., Rev. Ref. Bonds:
Health Facs. (Sisters of Mercy Health System, St. Louis, Inc.), Series 1993-A,
5.00% 2013 2,505 2,546
Health System (Obligated Group consisting of INTEGRIS Baptist Medical Center,
Inc., INTEGRIS South Oklahoma City Hospital Corp. and INTEGRIS Rural Health,
Inc.), Series 1995-D, AMBAC insured, 6.00% 2009 2,500 2,931
Tulsa Industrial Auth., Hospital Rev. and Ref. Bonds, St. John Medical Center
Project, Series 1996, 5.375% 2017 3,000 3,100
OREGON - 0.45%
City of Klamath Falls, Electric Rev. Ref. Bonds (Klamath Cogeneration Project),
Series 1999:
5.75% 2013 3,000 3,067
5.875% 2016 3,500 3,524
6.00% 2025 9,090 9,138
PENNSYLVANIA - 3.41%
G.O. Bonds, Second Ref., Series of 2002, 5.00% 2005 6,000 6,368
Convention Center Auth., Rev. Ref. Bonds, Series 1994-A, 6.25% 2004 2,260 2,311
Higher Educational Facs. Auth., UPMC Health System Rev. Bonds, Series 1999-A,
FSA insured, 5.00% 2009 2,000 2,251
Turnpike Commission, Oil Franchise Tax Senior Rev. Bonds, Series 2003-A,
MBIA insured, 3.00% 2004 3,450 3,503
Allegheny County:
Cert. of Part. (ACJCT Fac. Holdings L.P.), AMBAC insured, 5.00% 2019 2,150 2,316
Hospital Dev. Auth., AMBAC insured:
Health System Rev. Bonds, Catholic Health East Issue, Series 1998-A:
5.50% 2008 1,000 1,147
5.00% 2010 2,705 3,013
UPMC Health System Rev. Ref. Bonds, Series 1999-B, 5.25% 2008 5,160 5,874
Port Auth. of Allegheny County, Special Rev. Transportation Bonds, Ref. Series
2001, FGIC insured, 5.50% 2015 1,000 1,143
Chester County, Health and Education Facs. Auth., Health System Rev. Bonds
(Jefferson Health System), Series 1997-B, 5.375% 2027 4,150 4,260
Delaware County Auth., Rev. Bonds, Catholic Health Systems, Series A, AMBAC
insured, 5.00% 2010 2,465 2,745
Erie County, Industrial Dev. Auth., Environmental Improvement Rev. Ref. Bonds
(International Paper Co. Projects), Series 2002-A, 4.90% 2009 2,200 2,408
Lehigh County, General Purpose Auth. Rev. Bonds (KidsPeace Obligated Group),
Series 1998, ACA-CBI insured, 5.70% 2009 1,500 1,700
Montgomery County Industrial Dev. Auth. Retirement Community Rev. Bonds (ACTS
Retirement Life Communities, Inc. Obligated Group):
Ref. Bonds, Series 1996-A, 5.875% 2022 2,890 2,970
Series 1996-B, 5.75% 2017 2,000 2,086
Series 1998, 5.25% 2028 17,500 17,061
Hospitals and Higher Education Facs. Auth. of Philadelphia:
Frankford Hospital, Series A (escrowed to maturity):
6.00% 2014 3,640 3,807
6.00% 2023 4,000 4,214
Health System Rev. Bonds (Jefferson Health System):
Series 1997-A:
5.50% 2006 2,285 2,465
5.50% 2007 1,995 2,196
5.50% 2008 2,000 2,229
5.00% 2009 1,000 1,090
5.00% 2010 1,000 1,078
Series 1999-A, 5.00% 2018 1,475 1,525
Hospital Rev. Bonds (Temple University Hospital):
Series 1993-A, 6.50% 2008 10,575 11,488
Series 1997, 5.70% 2009 1,000 1,037
Philadelphia Auth. for Industrial Dev., Rev. Bonds (Cathedral Village Project),
Series 1998, 5.50% 2010 2,815 2,879
City of Pittsburgh, G.O. Ref. Bonds, Series 1996-A, MBIA insured, 6.00% 2005 4,000 4,195
City of Pottsville Hospital Auth., Hospital Rev. Bonds (The Pottsville Hospital
and Warne Clinic), Series 1994, 7.25% 2024 (preref. 2004) 8,500 8,841
General Auth. of Southcentral Pennsylvania, York County Guaranteed Rev. Bonds,
Series 2001, AMBAC insured, 4.50% 2031 4,000 4,377
Westmoreland County, Health Care Fac. Rev. Bonds (Redstone Presbyterian
SeniorCare Obligated Group), Fixed Rate Rev. Bonds, Series 2000-B,
8.125% 2030 6,500 7,068
PUERTO RICO - 0.37%
Public Improvement Ref. G.O. Bonds, Series 2003-C, 5.00% 2018 (put 2008) 10,500 11,592
The Children's Trust Fund, Tobacco Settlement Asset-backed Bonds, Series 2000,
5.75% 2020 (preref. 2010) 1,245 1,404
RHODE ISLAND - 0.58%
Depositors Econ. Protection Corp., Special Obligation Bonds, Series 1993-A:
MBIA insured, 5.75% 2012 4,850 5,848
5.75% 2021 2,715 3,263
5.75% 2021 (escrowed to maturity) 1,210 1,454
Health and Educational Building Corp., Hospital Fncg. Rev. Bonds, Lifespan
Obligated Group Issue, Series 2002:
6.375% 2021 4,000 4,252
6.50% 2032 5,385 5,636
SOUTH CAROLINA - 1.23%
Econ. Dev. Auth.:
Hospital Ref. and Improvement Rev. Bonds (Palmetto Health Alliance), Series
2003-C, 6.375% 2034 3,000 3,201
Hospital Rev. Bonds (Georgetown Memorial Hospital), Series 1998, AMBAC
insured, 5.75% 2010 2,000 2,199
Florence County, Hospital Rev. Bonds (McLeod Regional Medical Center Project),
Series 1998-A, MBIA insured, 5.25% 2010 2,785 3,158
Georgetown County, Pollution Control Rev. Ref. Bonds (International Paper
Company Projects), Series 1999-A, 5.125% 2012 3,000 3,281
Lexington County Health Services Dist. Inc., Hospital Rev. Ref. and Improvement
Bonds, Series 1997, FSA insured:
5.50% 2007 2,000 2,260
5.00% 2009 1,000 1,127
Piedmont Municipal Power Agcy., Electric Rev. Bonds:
Ref. Series 1991, FGIC insured, 6.25% 2021 4,640 5,751
Ref. Series 1999-A, 5.25% 2015 8,420 8,759
Tobacco Settlement Rev. Management Auth., Tobacco Settlement Asset-backed Bonds,
Series 2001-B, 6.00% 2022 (expected maturity 2012) 14,090 13,451
SOUTH DAKOTA - 0.51%
Building Auth., Rev. Capital Appreciation Bonds, Series 1996-A, AMBAC insured,
0% 2014 3,780 2,477
Health and Educational Facs. Auth., Rev. Ref. Bonds (Rapid City Regional
Hospital Issue), Series 1999, MBIA insured:
5.00% 2007 2,045 2,257
5.00% 2009 4,010 4,412
5.00% 2010 4,175 4,608
Housing Dev. Auth., Homeownership Mortgage Bonds:
Series 1995-A, 5.80% 2014 3,000 3,069
Series 2002-F, 4.30% 2014 1,030 1,080
TENNESSEE - 1.97%
Fort Sanders Alliance Obligated Group, The Health, Educational and Housing Facs.
Board of the County of Knox, Hospital Rev. Bonds, Series 1990-A,
MBIA insured, 6.25% 2013 2,000 2,426
City of Memphis, Electric System Subordinate Rev. Bonds, Series 2003-A:
5.00% 2005 3,000 3,199
5.00% 2006 5,000 5,476
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds (Federal
Express Corp.):
Series 2001, 5.00% 2009 1,500 1,643
Series 2002, 5.05% 2012 10,900 11,851
Health and Education Facs. Board of the Metropolitan Government of Nashville
and Davidson County, Rev. Bonds (Blakeford Proj), Series 1994-A, 9.25%
2024 (preref. 2004) 6,600 6,913
Shelby County, G.O. Ref. Capital Appreciation Bonds, Series 1996-B, 0% 2011 3,750 2,924
The Health, Educational and Housing Fac. Board of the County of Shelby,
Hospital Rev. Bonds (Methodist Healthcare), Series 2002, 6.00% 2020 9,500 10,357
The Health, Educational and Housing Facs. Board of the County of Sullivan
(Wellmonth Health System Project):
Hospital Rev. Bonds, Series 2002:
6.75% 2014 2,360 2,739
6.75% 2016 2,690 3,088
6.25% 2022 2,000 2,157
6.25% 2032 6,000 6,350
Hospital Rev. Ref. Bonds, Series 2003, RADIAN insured:
5.00% 2011 6,000 6,690
5.00% 2013 3,000 3,321
TEXAS - 11.49%
Public Fin. Auth., G.O. Ref. Bonds:
Series 1995-A, 6.00% 2014 (preref. 2005) 5,000 5,270
Series 2001-A, 5.375% 2016 2,540 2,886
Turnpike Auth., Central Turnpike System, Second Tier Bond Anticipation Notes,
Series 2002, 5.00% 2008 5,000 5,596
Water Financial Assistance and Ref. Bonds, Series 2003-C, 5.00% 2015 1,500 1,677
Amarillo Health Facs. Corp., Hospital Rev. Bonds (Baptist St. Anthony's
Hospital Corp. Project), Series 1998, FSA insured:
5.50% 2014 2,830 3,276
5.50% 2015 6,320 7,264
City of Austin (Travis and Williamson Counties):
Electric Utility Rev. Ref. Bonds, Series 2003, MBIA insured, 5.00% 2011 1,000 1,145
Water and Wastewater System Rev. Ref. Bonds, Series 2001-B, FSA insured,
5.75% 2016 6,800 7,871
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. Bonds (Buckner
Retirement Services, Inc. Obligated Group Project), Series 1998:
5.25% 2009 1,620 1,778
5.00% 2010 1,705 1,831
5.25% 2028 9,400 9,418
Brazos River Auth.:
Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2003-D,
5.75% 2029 (put 2014) 1,000 1,072
Rev. Ref. Bonds (Houston Industries Incorporated Project), MBIA insured,
4.90% 2015 3,360 3,719
Brazos River Harbor Navigation, Dist. of Brazoria County, Environmental Facs.
Rev. Bonds (The Dow Chemical Company Project), Series 2002-B3,
5.15% 2033 (put 2009) 6,600 7,144
Cypress-Fairbanks Independent School Dist. (Harris County):
Unlimited Tax Ref., Capital Appreciation Bonds, Series 1993-A, 0% 2013 6,675 4,790
Unlimited Tax Ref. and Schoolhouse Bonds, Series 2001, 5.25% 2016 3,500 3,932
City of Dallas:
G.O. Limited Tax:
5.00% 2014 3,400 3,791
5.00% 2015 2,000 2,206
Dallas, Denton, Collin and Rockwall Counties:
G.O. Ref. and Improvement Bonds, Series 1998, 5.00% 2012 1,000 1,102
Waterworks and Sewer System Rev. Ref. Bonds, Series 2002, 5.00% 2009 1,285 1,460
Dallas County, Unlimited Tax Ref. and Improvement Bonds, G.O. Ref. Bonds,
Series 2001-A:
5.375% 2013 2,465 2,847
5.375% 2015 3,725 4,225
Eanes Independent School Dist. (Travis County), Unlimited Tax School Building
Bonds, Series 2001:
5.50% 2014 2,050 2,383
5.50% 2015 2,150 2,455
5.50% 2016 1,125 1,284
Garland Independent School Dist. (Dallas County), Unlimited Tax Ref. and
School Building Bonds, Series 2001:
5.50% 2013 2,170 2,505
5.50% 2015 2,420 2,756
Harris County:
G.O. Bonds:
Rev. Ref. Bonds, Series 2002, MBIA insured, 0% 2015 6,000 3,745
Permanent Improvement and Ref. Bonds, Series 2002:
5.00% 2010 2,000 2,279
5.25% 2016 2,700 3,053
Unlimited Tax Road G.O. Ref. Bonds, Series 2001, 5.375% 2015 2,500 2,841
Health Facs. Dev. Corp.:
Hospital Rev. Bonds:
Memorial Hermann Healthcare System, Series 2001-A, 6.375% 2029 13,900 15,161
Memorial Hermann Hospital System Project, Series 1998, FSA insured:
5.25% 2008 1,890 2,123
5.50% 2011 5,000 5,818
5.50% 2014 4,790 5,589
5.50% 2015 10,325 11,967
Rev. Bonds:
CHRISTUS Health, Series 1999-A, MBIA insured, 5.50% 2010 3,380 3,869
St. Luke's Episcopal Hospital:
Series 2001-A:
5.625% 2014 1,000 1,115
5.625% 2015 2,500 2,774
5.625% 2016 2,700 2,974
5.625% 2018 2,000 2,176
5.50% 2020 4,000 4,271
5.50% 2021 5,740 6,095
Series 2002:
5.50% 2015 1,000 1,114
5.50% 2016 1,000 1,105
5.50% 2018 1,105 1,204
Hidalgo County Health Services Corp., Hospital Rev. Bonds (Mission Hospital,
Inc. Project), Series 1996:
7.00% 2008 760 820
6.75% 2016 1,740 1,793
City of Houston, FSA insured:
Airport System Subordinate Lien Rev. Bonds, Series 2002-A:
5.50% 2015 3,000 3,453
5.00% 2022 3,000 3,163
Water and Sewer System, Junior Lien Rev. Ref. Bonds, Series 1998-A, 0% 2019 3,000 1,453
Jefferson County, Health Facs. Dev. Corp., Baptist Hospitals of Southeast Texas,
FHA insured Mortgage Rev. Bonds, Series 2001, AMBAC insured, 5.20% 2021 3,605 3,846
Katy Independent School Dist. (Fort Ben, Harris and Waller Counties):
Limited Tax Ref. Bonds, Series 2001:
5.50% 2015 1,290 1,463
5.50% 2016 1,805 2,047
Unlimited Tax School Building Bonds, Series 2003-A, 5.00% 2016 2,575 2,846
Ladero Independent School Dist. (Webb County), Unlimited Tax School Building
and Ref. Bonds, Series 2001, 5.375% 2015 2,000 2,267
Lewisville Independent School Dist. (Denton County), Unlimited Tax School
Building and Ref. Bonds, Series 2001, 5.50% 2015 2,000 2,296
Mansfield Independent School Dist. (Tarrant and Johnson Counties), Unlimited
Tax School Building and Ref. Bonds, Series 2001, 5.50% 2016 2,635 2,988
McKinney Independent School Dist. (Collin County), School Building Unlimited
Tax Bonds, Series 2001, 5.125% 2016 2,075 2,311
Northeast Medical Clinic, Hospital Auth., County of Humble, Rev. Bonds, FSA
insured, 6.25% 2012 1,000 1,219
Northside Independent School Dist.:
Unlimited Tax School Building and Ref. Bonds, Series 2001, 5.50% 2014 4,000 4,626
Variable Rate Unlimited Tax School Building Bonds, Series 2001-A:
5.375% 2016 2,560 2,902
5.375% 2017 2,695 3,045
5.375% 2018 2,835 3,187
City of Plano (Collin and Denton Counties), G.O. Ref. and Improvement Bonds,
Series 2002, 4.00% 2004 5,975 6,065
Round Rock Independent School Dist. (Williamson and Travis Counties), Unlimited
Tax School Building Bonds, Series 2001-A:
5.50% 2015 2,000 2,283
5.50% 2016 2,500 2,854
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Company
Project), Series 2001-A, 5.50% 2022 (put 2011) 14,000 15,305
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds,
Series 2002:
RADIAN insured, 5.125% 2017 8,000 8,604
6.00% 2021 1,000 1,072
City of San Antonio:
General Improvement and Ref. Bonds, Series 2001:
5.25% 2015 8,425 9,418
5.25% 2016 8,385 9,373
General Improvement Forward Ref. Bonds, Series 2002, 5.00% 2011 4,000 4,563
Electric and Gas Rev. Ref. Bonds (forward delivery), New Series 2003,
5.25% 2011 9,000 10,366
Electric and Gas Systems Rev. and Ref. Bonds:
New Series 1998-A:
5.25% 2015 3,300 3,687
5.25% 2015 (preref. 2009) 1,775 2,042
New Series 2002:
5.375% 2015 9,000 10,419
5.375% 2016 4,650 5,273
Water System Rev. and Ref. Bonds, (Bexar County), Series 2001, 5.00% 2016 1,000 1,103
San Antonio Independent School Dist.:
Unlimited Tax Ref. Bonds, Series 2001-B:
5.375% 2013 4,260 4,902
5.375% 2015 4,390 4,979
Unlimited Tax School Building Bonds, Series 2001-A:
5.375% 2015 1,515 1,718
5.375% 2016 1,705 1,934
Spring Branch Independent School Dist. (Harris County), Limited Tax Schoolhouse
and Ref. Bonds, Series 2001:
5.375% 2015 3,875 4,362
5.375% 2016 3,070 3,455
Tarrant County, Health Facs. Dev. Corp.:
Health Resources System Rev. Bonds, Series 1997-A, MBIA insured:
5.50% 2007 4,000 4,431
5.75% 2015 3,000 3,534
Hospital Rev. Bonds (Baylor Health Care System Project), Series 2002-A:
5.00% 2019 5,500 5,751
5.25% 2022 3,000 3,137
Tarrant Regional Water Dist., A Water Control and Improvement Dist., Water Rev.
Ref. and Improvement Bonds, Series 2002, FSA insured:
5.00% 2010 1,000 1,133
5.00% 2013 3,000 3,402
Board of Regents of the Texas A&M University System, Permanent University Fund
Ref. Bonds, Series 2003, 5.25% 2016 5,000 5,686
Board of Regents of The University of Texas System:
Permanent University Fund Bonds, Series 2002-B:
5.25% 2015 7,435 8,461
5.25% 2016 2,315 2,622
Rev. Fncg. System Bonds:
Series 1996-B, 5.00% 2011 (preref. 2006) 3,750 4,159
Series 2001-B, 5.375% 2013 (preref. 2011) 2,000 2,339
Series 2001-C, 5.375% 2016 (preref. 2011) 4,000 4,679
Series 2003-B:
5.25% 2010 1,895 2,190
5.25% 2011 3,105 3,606
5.375% 2016 1,000 1,147
Rev. Ref. Fncg. System Bonds, Series 2002-B, 5.25% 2016 7,280 8,426
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System),
Series 2003, MBIA insured, 5.00% 2012 1,895 2,143
Weatherford Independent School Dist. (Parker County), Unlimited Tax School
Building and Ref. Bonds, Capital Appreciation, Series 2000, 0% 2018 2,625 1,406
UTAH - 0.67%
Alpine School Dist., Utah County, G.O. School Building Bonds (Utah School Bond
Guaranty Program), Series 2001-A (preref. 2011):
5.25% 2015 3,000 3,511
5.25% 2016 4,225 4,945
Salt Lake County, G.O. Ref. Bonds, Series 2001:
5.25% 2011 5,000 5,856
5.00% 2012 8,130 9,222
VERMONT - 0.07%
Educational and Health Buildings Fncg. Agcy., Hospital Rev. Bonds (Medical
Center Hospital of Vermont Project), Series 1993, FGIC insured, 5.75% 2007 2,250 2,303
VIRGINIA - 1.03%
City of Chesapeake, G.O. Public Improvement and Ref. Bonds, Series 2001,
5.50% 2011 3,500 4,161
Dulles Town Center, Community Dev. Auth. (Loudoun County), Special Assessment
Bonds (Dulles Town Center Project), Series 1998, 6.25% 2026 2,495 2,515
Fairfax County:
Econ. Dev. Auth., Retirement Community Rev. Bonds (Greenspring Village, Inc.
Fac.), Series 1999-A, 7.50% 2029 15,500 16,652
Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Inova Health System Hospitals
Project), Series 1993-A, 5.00% 2011 1,300 1,467
Industrial Dev. Auth., Hanover County, Hospital Rev. Bonds (Memorial Regional
Medical Center Project at Hanover Medical Park), Series 1995, MBIA insured,
6.50% 2009 1,000 1,202
Heritage Hunt Commercial Community Dev. Auth. (Prince William County),
Special Assessment Bonds:
Series 1999-A, 6.85% 2019 2,243 2,368
Series 1999-B, 7.00% 2029 974 1,036
City of Newport News, G.O. General Improvement Bonds, Series 2000-A, 5.50% 2004 3,300 3,327
Peninsula Ports Auth. Health System Rev. Ref. Bonds (Riverside Health System
Project), Series 1998, MBIA insured, 5.00% 2010 1,000 1,112
Virginia Gateway Community Dev. Auth. (Prince William County), Special
Assessment Bonds, Series 1999, 6.25% 2026 2,119 2,159
WASHINGTON - 7.22%
G.O. Bonds:
Motor Vehicle Fuel Tax, Series 2002-C, FSA insured, 5.00% 2017 5,000 5,444
Series 2003-A, 5.00% 2013 6,260 7,033
Various Purpose:
Ref. Bonds, Series R 2001-A, 5.25% 2005 2,000 2,123
Series 2001-C, 5.00% 2010 7,310 8,257
Health Care Facs. Auth., Rev. Bonds:
Providence Health System), Series 2001-A, MBIA insured:
5.50% 2011 6,565 7,677
5.625% 2014 3,000 3,455
5.625% 2015 8,635 9,849
Group Health Cooperative of Puget Sound, Series 2001, AMBAC insured,
5.375% 2012 1,500 1,731
Public Power Supply System, Rev. Ref. Bonds:
Nuclear Project No. 1, Series 1997-B, 5.125% 2014 5,000 5,342
Nuclear Project No. 2:
Series 1993-B, FSA insured, 5.65% 2008 3,030 3,478
Series 1994-A, 6.00% 2007 19,900 22,625
Series 1998-A, 5.00% 2012 6,200 6,892
Nuclear Project No. 3:
Series 1989-A, MBIA insured, 0% 2013 4,000 2,795
Series 1989-B, 7.125% 2016 5,250 6,926
Central Puget Sound Regional Transit Auth., Sales Tax and Motor Vehicle Excise
Tax Bonds, Series 1999, FGIC insured:
5.25% 2021 5,500 6,227
4.75% 2028 21,940 22,169
Clark County, Vancouver School Dist. No. 37, Unlimited Tax Deferred Interest
G.O. Bonds, Series 2001-C, FGIC insured, 0% 2016 2,500 1,454
Energy Northwest:
Columbia Generating Station Ref. Electric Rev. Bonds:
Series 2001-A, FSA insured:
5.375% 2013 3,000 3,461
5.50% 2016 13,000 14,712
Series 2003-A, 5.50% 2015 3,000 3,492
Ref. Electric Rev. Bonds:
Project No. 1:
Series 2002-A, MBIA insured:
5.50% 2015 5,000 5,760
5.50% 2016 5,000 5,738
Series 2003-A:
5.50% 2014 5,000 5,869
5.50% 2016 7,000 8,032
Project No. 3, Series 2001-A, FSA insured, 5.50% 2017 5,000 5,641
King County:
Limited Tax G.O. Ref. Bonds:
Baseball Stadium, Series 2002:
5.50% 2012 2,675 3,165
5.50% 2012 (escrowed to maturity) 325 387
Series 2003-B, 4.00% 2005 6,165 6,393
Sewer Rev. Bonds, Rev. Ref. Bonds:
Series 2001, FGIC insured, 5.25% 2015 2,000 2,261
Series 2002-B, FSA insured, 5.50% 2015 4,500 5,160
Lewis County, Public Utility Dist. No. 1, Cowlitz Falls Hydroelectric Project
Rev. Ref. Bonds, Series 2003, XLCA insured, 5.00% 2012 5,000 5,665
City of Seattle:
Limited Tax G.O. Bonds, 2001 (Various Purposes):
5.00% 2013 3,835 4,326
5.00% 2014 4,040 4,522
5.25% 2015 4,255 4,786
5.375% 2016 4,485 5,081
5.375% 2017 4,440 5,012
5.375% 2018 2,000 2,246
Municipal Light and Power Improvements and Rev. Ref. Bonds, Series 2001,
FSA insured:
5.50% 2012 2,000 2,314
5.50% 2016 5,000 5,670
Port of Seattle, Subordinate Lien Rev. Bonds, Series 1999-A, FGIC insured:
5.50% 2016 3,080 3,630
5.50% 2018 7,920 9,300
5.50% 2019 3,630 4,262
Snohomish County, Public Utility Dist. No. 1, Generation System Rev. Ref.
Bonds, Series 2002-B, FSA insured, 5.25% 2012 2,250 2,608
WISCONSIN - 1.97%
G.O. Bonds:
Ref. Bonds, Series 1998-1, 5.50% 2010 3,225 3,778
Series 1999-A, 5.00% 2012 (preref. 2009) 3,390 3,846
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed
Bonds:
Rev. Bonds, 5.50% 2006 1,000 1,034
5.75% 2012 2,000 2,008
6.125% 2027 15,450 15,167
Health and Educational Facs. Auth., Rev. Bonds:
Children's Hospital Project, Series 1993, FGIC insured, 5.50% 2006 2,000 2,196
Children's Hospital of Wisconsin, Inc., Series 1998, AMBAC insured, 5.625% 2015 1,130 1,321
Froedtert & Community Health Obligated Group, Series 2001:
5.625% 2014 1,000 1,108
5.625% 2015 1,100 1,214
Medical College of Wisconsin, Series 1993, 5.95% 2015 3,000 3,072
The Monroe Clinic, Inc.:
Series 1998:
4.80% 2010 1,110 1,190
4.90% 2011 1,165 1,240
Series 1999:
5.125% 2016 1,000 1,038
5.375% 2022 2,000 2,047
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 1998-A,
5.375% 2017 1,510 1,605
Transportation Rev. Bonds, Series 1993-A, MBIA insured, 4.80% 2009 9,645 10,848
Pollution Control and Industrial Dev. Rev. Bonds (General Motors Corp.
Projects), City of Janesville, Series 1984, 5.55% 2009 3,650 4,033
Milwaukee Metropolitan Sewerage Dist., Milwaukee, Ozaukee, Washington and
Waukesha Counties, G.O. Sewerage Systems Bonds, Series 2001-A, 5.25% 2014
(preref. 2011) 3,590 4,199
City of Superior, Limited Obligation Rev. Ref. Bonds (Midwest Energy Resources
Co. Project), Series 1991-E (collateralized), FGIC insured, 6.90% 2021 6,000 7,981
3,216,789
Principal Market
amount value
SHORT-TERM SECURITIES - 7.12% (000) (000)
Alexandria, Virginia, Redev. and Housing Auth., Residential Care Fac. First
Mortgage Rev. Bonds (Goodwin House), Multi-Mode Series 1996-B, 0.93% 2006 (3) 3,935 3,935
Athens-Clarke County, Georgia, 1.00% 2033 (3) 4,350 4,350
Baltimore County, Maryland, Rev. Bonds (Oak Crest Village, Inc. Project),
Series 1999-A, 0.96% 2029 (3) 2,080 2,080
California Pollution Control Financing Auth., Pollution Control Ref. Rev. Bonds
(Pacific Gas and Electric Co.), Series 1996-E, 1.00% 2026 (3) 2,600 2,600
Public Building Auth. of the City of Clarksville, Tennessee, Pooled Fncg. Rev.
Bonds (Tennessee Municipal Bond Fund): (3)
Series 2001, 1.00% 2031 4,050 4,050
Series 2003, 1.00% 2033 8,100 8,100
City of Detroit, Michigan, Sewage Disposal System, Rev. Bonds, Series 2003-B,
FSA insured, 0.98% 2033 (3) 3,800 3,800
City of Farmington, Arizona, Pollution Control Rev. Ref. Bonds (Public Service
Co. Four Corners Project), Series 1994-B, 0.98% 2024 (3) (4) 2,800 2,800
University of Florida, University Athletic Association, Inc., Capital
Improvement Rev. Bonds, Series 1990, 1.00% 2020 (3) 900 900
Town of Hurley, New Mexico, Pollution Control Rev. Bonds, (Kennecott Santa Fe
Corp. Project - The British Petroleum Company), Series 1985, 0.99% 2015 (3) 1,200 1,200
City of Irvine, California, Assessment Dist. No. 03-19, Limited Obligation
Improvement Bonds, Series A, 0.98% 2029 (3) 2,000 2,000
Jackson County, Mississippi, Pollution Control Ref. Rev. Bonds (Chevron USA Inc.
Project), Series 1993, 0.98% 2023 (3) 1,500 1,500
Jacksonville Health Facs. Auth., Florida, Hospital Rev. Bonds:(3)
Baptist Medical Center Project, Series 2001, 0.93% 2021 12,200 12,200
Ref. Bonds (Genesis Rehabilitation Hospital Project), Series 1996, 1.00% 2021 1,700 1,700
County of Knox, Tennessee, Health, Educational and Housing Facs. Board, Student
Rev. Bonds (Volunteer Student Housing, LLC Projects), Series 2002,
0.96% 2034 (3) 600 600
Lehigh County, Pennsylvania, General Purpose Auth. (Saint Luke's Hospital of
Bethlehem, PA Project), Hospital Rev. Bonds, Series of 2001, 0.93% 2031 (3) 8,000 8,000
Long Island, New York, Power Authority, Electric System Gen. Rev. Bonds, Series
2003-B, 0.95% 2033 (3) 3,300 3,300
Industrial Dev. Auth. of Loudoun County, Virginia, Multi-Modal Rev. Bonds
(Howard Hughes Medical Institute Issue):(3)
Series 2003-A, 0.95% 2038 2,500 2,500
Series 2003-C, 0.95% 2038 3,750 3,750
State of Maryland, Community Development Administration, Multi-family Dev. Rev.
Ref. Bonds, (Avalon Ridge Apartments Project), Series 1997, 0.92% 2026 (3) 2,200 2,200
Maryland Health and Higher Educational Facs. Auth., Pooled Loan Program Rev.
Bonds, Series 1994-D, 0.95% 2029 (3) 14,310 14,310
Commonwealth of Massachusetts, G.O. Ref. Bonds, Series 1998-A, 0.93% 2016 (3) 17,500 17,500
Massachusetts Bay Transportation Auth., General Transportation System Bonds,
Variable Rate Demand Obligations, Series 2000, 0.92% 2030 (3) 26,100 26,100
Metropolitan Water Dist. of Southern California, Water Rev. Bonds, Series
2001-C2, Lloyds TSB insured, 0.95% 2036 (3) 1,300 1,300
State of Michigan, Grant Anticipation Notes, Series 2001-D, FSA insured,
0.90% 2008 (3) 10,000 10,000
Board of Trustees of Michigan State University, General Rev. Bonds, Series
2002-A, 0.98% 2032 (3) 2,000 2,000
The Curators of the University of Missouri Systems Facs. Rev. Bonds:(3)
Series 2000-B, 0.98% 2030 3,500 3,500
Demand Rev. Bonds, Series 2001-A, 0.98% 2031 5,975 5,975
County of Montgomery, Tennessee, The Public Building Auth., Pooled Fncg. Rev.
Bonds (Tennessee County Loan Pool):(3)
Series 1999, 0.95% 2029 13,200 13,200
Series 2002, 1.00% 2032 3,705 3,705
State of New Jersey, Hudson County Improvement Auth., Essential Purpose Pooled
Governmental Loan Program Bonds, Series 1986, 0.90% 2026 (3) 7,300 7,300
City of New York, New York: (3)
G.O. Bonds, Fiscal 1994:
Series A, 0.98% 2019 2,300 2,300
Series A, Subseries A-7, 0.98% 2021 2,100 2,100
Series C, 0.93% 2023 2,700 2,700
Subseries E-3, 0.98% 2023 1,150 1,150
Jay Street Dev. Corp., Courts Fac. Lease Rev. Bonds (NYC - Jay Street Project),
Fiscal 2001 Series A1, 0.93% 2022 11,100 11,100
Municipal Water Finance Auth., Water and Sewer System Rev. Bonds, Fiscal 1995
Series A, FGIC insured, 0.95% 2025 15,000 15,000
North Carolina Medical Care Commission, Variable Rate Hospital Rev. Bonds
(Pooled Fncg. Project), Series 1996-A, 0.93% 2016 (3) 3,515 3,515
Peninsula Ports Auth., Virginia, Series 1987-B, 0.95% 3/5/2004 3,000 3,000
County of Riverside, California, Cert. of Part. ACES (Riverside County Public
Facs. Project), Series 1985-B, 0.92% 2015 (3) 5,800 5,800
Industrial Dev. Auth. of the City of Roanoke, Virginia, Hospital Rev. Ref.
Bonds (Carilion Health System Obligated Group): (3)
Series 2002-C, 0.93% 2027 (4) 1,920 1,920
Series 2002-D, 0.99% 2027 2,325 2,325
Salt Lake County, Utah, Pollution Control Rev. Ref. Bonds (Service Station
Holdings Inc. Project - The British Petroleum Company), Series 1994,
0.99% 2008 (3) 1,715 1,715
San Diego Community College Dist., San Diego County, California, Tax-Exempt
G.O. Bonds, Election 2002, Series 2003-A, FSA insured, 3.00% 5/1/2004 3,740 3,753
Tacoma, Washington, Water Ref. Bonds, Series 2002-2A, 0.95% 3/16/2004 2,000 2,000
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp., Exempt Facs.
Ref. Rev. Bonds (ExxonMobil Project), Series 2001, Subseries 2001-A,
0.88% 2031 (3) 1,500 1,500
Uinta County, Wyoming, Pollution Control Ref. Rev. Bonds (Chevron USA Inc.
Project), Series 1993, 0.98% 2020 (3) 3,000 3,000
City of Valdez, Alaska, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co.
Project): (3)
Series 1993-A, B and C, 0.88% 2033 3,800 3,800
Series 1993-A, 0.88% 2033 2,500 2,500
Series 2001, 0.88% 2029 3,700 3,700
249,333
Total investment securities (cost: $3,245,660,000) 3,466,122
Other assets less liabilities 38,639
Net assets $3,504,761
* Amount less than one thousand.
(1) Purchased in a private placement transaction; resale may be
limited to qualified institutional buyers; resale to the public
may require registration.
(2) Issuer not making scheduled interest payments;
bankruptcy proceedings pending.
(3) Coupon rate may change periodically; the date of the next scheduled
coupon rate change is considered to be the maturity date.
(4) This security, or a portion of this security, has been segregated to cover
funding requirements on investment transactions settling in the future.
See Notes to Financial Statements
Key to Abbreviations
Agcy. = Agency
Auth. = Authority
Cert. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at February 29, 2004 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market (cost: $3,245,660) $3,466,122
Cash 62
Receivables for:
Sales of fund's shares $10,224
Interest 42,200 52,424
Other assets 5
3,518,613
LIABILITIES:
Payables for:
Purchases of investments 4,375
Repurchases of fund's shares 3,222
Dividends on fund's shares 3,520
Investment advisory services 887
Services provided by affiliates 1,740
Deferred Directors' compensation 98
Other fees and expenses 10 13,852
NET ASSETS AT FEBRUARY 29, 2004 $3,504,761
NET ASSETS CONSIST OF:
Capital paid in on shares of capital stock $3,288,223
Undistributed net investment income 4,791
Accumulated net realized loss (8,715)
Net unrealized appreciation 220,462
Net assets at February 29, 2004 $3,504,761
TOTAL AUTHORIZED CAPITAL STOCK - 500,000 SHARES, $.001 PAR VALUE
Net asset
Net assets Shares outstanding value per share
Class A $3,111,361 245,087 12.69
Class B 121,465 9,568 12.69
Class C 133,777 10,538 12.69
Class F 94,738 7,463 12.69
Class R-5 43,420 3,420 12.69
(1) Maximum offering price and redemption price per share were equal to the
net asset value per share for all share classes, except for Class A, for which
the maximum offering price per share was $13.18.
See Notes to Financial Statements
STATEMENT OF OPERATIONS unaudited
for the six months ended February 29, 2004
INVESTMENT INCOME: (dollars in thousands)
Income:
Interest $81,912
Fees and expenses:
Investment advisory services $5,206
Distribution services 5,020
Transfer agent services 357
Administrative services 188
Reports to shareholders 64
Registration statement and prospectus 100
Postage, stationery and supplies 53
Directors' compensation 27
Auditing and legal 58
Custodian 29
Federal and state income taxes 85
Other 33 11,220
Net investment income 70,692
NET REALIZED LOSS AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized loss on investments (1,393)
Net unrealized appreciation on investments 139,670
Net realized loss and unrealized
appreciation on investments 138,277
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $208,969
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended February 29, August 31,
2004* 2003
OPERATIONS:
Net investment income $70,692 $135,316
Net realized loss on investments (1,393) (7,442)
Net unrealized appreciation (depreciation)
on investments 139,670 (53,242)
Net increase in net assets
resulting from operations 208,969 74,632
DIVIDENDS AND DISTRIBUTIONS PAID OR ACCRUED
TO SHAREHOLDERS:
Dividends from net investment income (68,841) (134,482)
Distributions from net realized gain
on investments - (4,888)
Total dividends and distributions paid or accrued
to shareholders (68,841) (139,370)
CAPITAL SHARE TRANSACTIONS 119,281 379,173
TOTAL INCREASE IN NET ASSETS 259,409 314,435
NET ASSETS:
Beginning of period 3,245,352 2,930,917
End of period (including undistributed
net investment income: $4,791 and $2,940,
respectively) $3,504,761 $3,245,352
*Unaudited.
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS unaudited
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt 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 a high level of federally tax-free
current income, consistent with the preservation of capital, through a
diversified portfolio of municipal bonds.
The fund offers five share classes consisting of four retail share classes and
one retirement plan share class. The retirement plan share class (R-5) is sold
without any sales charges and does not carry any conversion rights. The fund's
share classes are described below:
- ---------------------------------------------------------------------------------------------------------
Share class Initial sales charge Contingent deferred sales Conversion feature
charge upon redemption
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class A Up to 3.75% None (except 1% for None
certain redemptions
within one year of
purchase without an
initial sales charge)
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class B None Declines from 5% to zero Classes B converts to Class A
for redemptions within after eight years
six years of purchase
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class C None 1% for redemptions within Class C converts to Class F
one year of purchase after 10 years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class F None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class R-5 None None None
- ---------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. Each share class has identical voting rights, except for the
exclusive right to vote on matters affecting only its class. Share classes have
different fees and expenses ("class-specific fees and expenses"), primarily due
to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
SECURITY VALUATION - Fixed-income securities 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 at prices for securities of comparable maturity, quality and type.
Short-term securities maturing within 60 days are valued at amortized
cost, which approximates market value. The ability of the issuers of
the debt securities held by the fund 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 by authority of the fund's Board of Directors. Various
factors may be reviewed in order to make a good faith determination of
a security's fair value. These factors include, but are not limited
to, the type and cost of the security; contractual or legal
restrictions on resale of the security; relevant financial or business
developments of the issuer; actively traded similar or related
securities; conversion or exchange rights on the security; related
corporate actions; significant events occurring after the close of
trading in the security; and changes in overall market conditions.
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. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) and 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 after the determination of the fund's
net investment income and are paid to shareholders monthly.
Distributions paid to shareholders are recorded on the ex-dividend
date.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS
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. Generally,
income earned by the fund is exempt from federal income taxes; however, the fund
might earn taxable income from the sale of certain securities purchased at a
market discount.
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
short-term capital gains and losses; deferred expenses; net capital losses; and
amortization of market discounts. 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. As of February 29, 2004, the cost of
investment securities for federal income tax purposes was $3,241,639,000.
As of February 29, 2004, the components of distributable earnings on a tax basis
were as follows:
(dollars in thousands)
Undistributed net investment income $4,330
Undistributed short-term capital gains 210
Accumulated long-term capital losses (8,867)
Gross unrealized appreciation on investment securities 236,832
Gross unrealized depreciation on investment securities (12,349)
Accumulated short-term capital gains above include a capital loss carryforward
of $382,000 expiring in 2011. 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 fund will not make
distributions from capital gains while a capital loss carryforward remains. Also
included in accumulated long-term capital losses above are net capital losses of
$6,940,000, that were realized during the period November 1, 2002 through August
31, 2003.
The tax character of distributions paid or accrued to shareholders was as
follows (dollars in thousands):
Distributions from Distributions from Total distributions
Share class tax-exempt income long-term capital gains paid or accrued
Six months ended February 29, 2004
Class A $ 62,249 - $ 62,249
Class B 2,017 - 2,017
Class C 2,083 - 2,083
Class F 1,586 - 1,586
Class R-5 906 - 906
Total $ 68,841 - $ 68,841
Year ended August 31, 2003
Class A $ 123,155 $ 4,448 $ 127,603
Class B 3,663 151 3,814
Class C 3,647 154 3,801
Class F 2,357 77 2,434
Class R-5 1,660 58 1,718
Total $ 134,482 $ 4,888 $ 139,370
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES -The Investment Advisory and Service Agreement with
CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.30% on the first $60 million
of daily net assets and decreasing to 0.16% on such assets in excess of $3
billion. The agreement also provides for monthly fees, accrued daily, based on a
declining series of annual rates beginning with 3.00% on the first $3,333,333 of
the fund's monthly gross income and decreasing to 2.25% on such income in excess
of $8,333,333. For the six months ended February 29, 2004, the investment
advisory services fee was $5,206,000, which was equivalent to an annualized rate
of 0.313% of average daily net assets.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for
all share classes, except Class R-5. Under the plans, the Board of
Directors approves certain categories of expenses that are used to
finance activities primarily intended to sell fund shares. The plans
provide for annual expenses, based on a percentage of average daily
net assets, ranging from 0.25% to 1.00% as noted below. In some cases,
the Board of Directors has approved expense amounts lower than plan
limits.
------------------------------------------------ ----------------------------- -----------------------------
Share class Currently approved limits Plan limits
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class A 0.25% 0.25%
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class B 1.00 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class C 1.00 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class F 0.25 0.50
------------------------------------------------ ----------------------------- -----------------------------
All share classes may use up to 0.25% of average daily net assets to
pay service fees, or to compensate AFD for paying service fees, to
firms that have entered into agreements with AFD for providing certain
shareholder services. Expenses in excess of these amounts, up to
approved limits, may be used to compensate dealers and wholesalers for
shares sold.
For Class 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. Each class reimburses 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
February 29, 2004, unreimbursed expenses subject to reimbursement
totaled $2,770,000 for Class A.
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for classes A and B. Under this agreement, these share classes
compensate AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to all other
share classes from the administrative services fees paid to CRMC
described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services
agreement with CRMC to provide transfer agent and other related
shareholder services for all classes of shares other than classes A
and B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for
Class R-5) based on its respective average daily net assets. Each
relevant class also pays AFS additional amounts for certain transfer
agent services. CRMC and AFS may use these fees to compensate third
parties for performing these services.
Expenses under the agreements described above for the six months ended
February 29, 2004, were as follows (dollars in thousands):
-----------------------------------------------------------------------------------------
Share class Distribution Transfer agent Administrative services
services services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
CRMC Transfer agent
administrative services
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class A $3,710 $340 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class B 584 17 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class C 628 Included in $94 $6
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class F 98 Included in 59 7
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-5 Not applicable Included in 21 1
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Total $5,020 $357 $174 $14
-----------------------------------------------------------------------------------------
DEFERRED DIRECTORS' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Directors who are unaffiliated with CRMC may 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 in the accompanying financial statements
includes $14,000 in current fees (either paid in cash or deferred) and a net
increase of $13,000 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.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
REINVESTMENTS OF DIVIDENDS
SHARE CLASS SALES(1) AND DISTRIBUTIONS
AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED FEBRUARY 29, 2004
Class A $ 299,368 23,987 $ 44,075 3,522
Class B 10,305 827 1,489 119
Class C 22,326 1,790 1,599 128
Class F 35,478 2,841 1,257 101
Class R-5 6,329 510 113 9
Total net increase
(decrease) $ 373,806 29,955 $ 48,533 3,879
YEAR ENDED AUGUST 31, 2003
Class A $ 846,258 68,133 $ 89,131 7,193
Class B 48,940 3,937 2,832 229
Class C 73,715 5,935 2,960 239
Class F 135,210 10,898 1,922 155
Class R-5 11,168 897 224 18
Total net increase
(decrease) $ 1,115,291 89,800 $ 97,069 7,834
SHARE CLASS REPURCHASES(1) NET INCREASE
AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED FEBRUARY 29, 2004
Class A $ (261,635) (21,041) $ 81,808 6,468
Class B (9,289) (747) 2,505 199
Class C (15,945) (1,282) 7,980 636
Class F (13,261) (1,066) 23,474 1,876
Class R-5 (2,928) (235) 3,514 284
Total net increase
(decrease) $ (303,058) (24,371) $ 119,281 9,463
YEAR ENDED AUGUST 31, 2003
Class A $ (662,081) (53,454) $ 273,308 21,872
Class B (16,493) (1,333) 35,279 2,833
Class C (35,983) (2,906) 40,692 3,268
Class F (109,667) (8,840) 27,465 2,213
Class R-5 (8,963) (727) 2,429 188
Total net increase
(decrease) $ (833,187) (67,260) $ 379,173 30,374
(1) Includes exchanges between share classes of the fund.
5. RESTRICTED SECURITIES
The fund has invested in certain securities for which resale may be limited to
qualified buyers or which are otherwise restricted. These securities are
identified in the investment portfolio. As of February 29, 2004, the total value
of restricted securities was $8,715,000, which represented 0.25% of the net
assets of the fund.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding short-term
securities, of $171,527,000 and $164,853,000, respectively, during the six
months ended February 29, 2004.
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
six months ended February 29, 2004, the custodian fee of $29,000 included $418
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Income from investment operations(2)
Net
Net asset gains(losses)
value, Net on securities Total from
beginning investment (both realized investment
of period income and unrealized) operations
Class A:
Six months ended 2/29/2004 (4) $12.17 $.27 $.51 $.78
Year ended 8/31/2003 12.41 .54 (.22) .32
Year ended 8/31/2002 12.38 .57 .06 .63
Year ended 8/31/2001 11.81 .60 .57 1.17
Year ended 8/31/2000 11.86 .60 (.01) .59
Year ended 8/31/1999 12.60 .59 (.55) .04
Class B:
Six months ended 2/29/2004 (4) 12.17 .22 .51 .73
Year ended 8/31/2003 12.41 .44 (.22) .22
Year ended 8/31/2002 12.38 .48 .06 .54
Year ended 8/31/2001 11.81 .52 .57 1.09
Period from 3/15/2000 to 8/31/2000 11.50 .21 .34 .55
Class C:
Six months ended 2/29/2004 (4) 12.17 .21 .52 .73
Year ended 8/31/2003 12.41 .43 (.22) .21
Year ended 8/31/2002 12.38 .47 .06 .53
Period from 3/15/2001 to 8/31/2001 12.10 .21 .29 .50
Class F:
Six months ended 2/29/2004 (4) 12.17 .26 .51 .77
Year ended 8/31/2003 12.41 .52 (.22) .30
Year ended 8/31/2002 12.38 .55 .06 .61
Period from 3/15/2001 to 8/31/2001 12.10 .24 .29 .53
Class R-5:
Six months ended 2/29/2004 (4) 12.17 .28 .51 .79
Year ended 8/31/2003 12.41 .56 (.22) .34
Period from 7/15/2002 to 8/31/2002 12.33 .07 .08 .15
Dividends and distributions
Dividends
(from net Distributions Total Net asset
investment (from capital dividends and value, end
income) gains) distributions of period
Class A:
Six months ended 2/29/2004 (4) $(.26) $- $(.26) $12.69
Year ended 8/31/2003 (.54) (.02) (.56) 12.17
Year ended 8/31/2002 (.57) (.03) (.60) 12.41
Year ended 8/31/2001 (.60) - (.60) 12.38
Year ended 8/31/2000 (.60) (.04) (.64) 11.81
Year ended 8/31/1999 (.59) (.19) (.78) 11.86
Class B:
Six months ended 2/29/2004 (4) (.21) - (.21) 12.69
Year ended 8/31/2003 (.44) (.02) (.46) 12.17
Year ended 8/31/2002 (.48) (.03) (.51) 12.41
Year ended 8/31/2001 (.52) - (.52) 12.38
Period from 3/15/2000 to 8/31/2000 (.24) - (.24) 11.81
Class C:
Six months ended 2/29/2004 (4) (.21) - (.21) 12.69
Year ended 8/31/2003 (.43) (.02) (.45) 12.17
Year ended 8/31/2002 (.47) (.03) (.50) 12.41
Period from 3/15/2001 to 8/31/2001 (.22) - (.22) 12.38
Class F:
Six months ended 2/29/2004 (4) (.25) - (.25) 12.69
Year ended 8/31/2003 (.52) (.02) (.54) 12.17
Year ended 8/31/2002 (.55) (.03) (.58) 12.41
Period from 3/15/2001 to 8/31/2001 (.25) - (.25) 12.38
Class R-5:
Six months ended 2/29/2004 (4) (.27) - (.27) 12.69
Year ended 8/31/2003 (.56) (.02) (.58) 12.17
Period from 7/15/2002 to 8/31/2002 (.07) - (.07) 12.41
Ratio of Ratio of
Net assets, expenses net income
Total end of period to average to average
return(3) (in millions) net assets net assets
Class A:
Six months ended 2/29/2004 (4) 6.54% $3,111 .61% (5) 4.31% (5)
Year ended 8/31/2003 2.55 2,905 .61 4.33
Year ended 8/31/2002 5.31 2,689 .63 4.73
Year ended 8/31/2001 10.22 2,202 .66 5.00
Year ended 8/31/2000 5.27 1,831 .67 5.22
Year ended 8/31/1999 .23 1,917 .65 4.78
Class B:
Six months ended 2/29/2004 (4) 6.15 122 1.37 (5) 3.55 (5)
Year ended 8/31/2003 1.79 114 1.37 3.56
Year ended 8/31/2002 4.53 81 1.38 3.91
Year ended 8/31/2001 9.45 26 1.40 4.06
Period from 3/15/2000 to 8/31/2000 4.89 3 .64 1.99
Class C:
Six months ended 2/29/2004 (4) 6.09 134 1.50 (5) 3.42 (5)
Year ended 8/31/2003 1.66 120 1.50 3.43
Year ended 8/31/2002 4.40 82 1.51 3.79
Period from 3/15/2001 to 8/31/2001 4.20 15 .73 1.77
Class F:
Six months ended 2/29/2004 (4) 6.47 95 .75 (5) 4.18 (5)
Year ended 8/31/2003 2.41 68 .75 4.19
Year ended 8/31/2002 5.15 42 .78 4.54
Period from 3/15/2001 to 8/31/2001 4.45 7 .40 2.11
Class R-5:
Six months ended 2/29/2004 (4) 6.63 43 .44 (5) 4.48 (5)
Year ended 8/31/2003 2.72 38 .44 4.51
Period from 7/15/2002 to 8/31/2002 1.23 37 .06 .59
Six months ended
February 29,
2004(4) Year ended August 31
2003 2002 2001 2000 1999
Portfolio turnover rate for all classes of shares 5% 8% 8% 21% 29% 15%
(1) Based on operations for the period shown (unless otherwise
noted) and, accordingly, may not be representative of a full
year.
(2) Year ended 1999 is based on shares outstanding on the last
day of the year; all other periods are based on average
shares outstanding.
(3) Total returns exclude all sales charges, including contingent
deferred sales charges.
(4) Unaudited.
(5) Annualized.
See Notes to Financial Statements
OTHER SHARE CLASS RESULTS unaudited
Class B, Class C and Class F
Returns for periods ended March 31, 2004 (the most recent calendar quarter):
1 year Life of class
CLASS B SHARES
Reflecting applicable contingent deferred sales charge (CDSC),
maximum of 5%, payable only if shares are sold within
six years of purchase +0.11% +6.09%(1)
Not reflecting CDSC +5.11% +6.50%(1)
CLASS C SHARES
Reflecting CDSC, maximum of 1%, payable only if shares
are sold within one year of purchase +3.97% +5.21%(2)
Not reflecting CDSC +4.97% +5.21%(2)
CLASS F SHARES(3)
Not reflecting annual asset-based fee charged
by sponsoring firm +5.74% +5.94%(2)
Figures shown on this page 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. For the
most current information and month-end results, visit americanfunds.com.
(1) Average annual total return from March 15, 2000, when Class B shares were
first sold.
(2) Average annual total return from March 15, 2001, when Class C and Class F
shares were first sold.
(3) These shares are sold without any initial or contingent deferred sales
charge.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
135 South State College Boulevard
Brea, CA 92821-5823
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065
Santa Ana, CA 92799-5065
P.O. Box 659522
San Antonio, TX 78265-9522
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
CUSTODIAN OF ASSETS
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, CA 90071-2228
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, CA 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
There are several ways to invest in The Tax-Exempt Bond Fund of America. Class A
shares are subject to a 3.75% maximum up-front sales charge that declines for
accounts (and aggregated investments) of $100,000 or more. Other share classes
have no up-front sales charges but are subject to additional annual expenses and
fees. Annualized expenses for Class B shares were 0.76 percentage points higher
than for Class A shares; Class B shares convert to Class A shares after eight
years of ownership. If redeemed within six years, Class B shares may also be
subject to a contingent deferred sales charge ("CDSC") of up to 5% that declines
over time. Class C shares were subject to annualized expenses 0.89 percentage
points higher than those for Class A shares and a 1% CDSC if redeemed within the
first year after purchase. Class C shares convert to Class F shares after 10
years. Class F shares, which are available only through certain fee-based
programs offered by broker-dealer firms and registered investment advisers, had
higher annualized expenses (by 0.14 percentage points) than did Class A shares,
and an annual asset-based fee charged by the sponsoring firm. Expenses are
deducted from income earned by the fund. As a result, dividends and investment
results will differ for each share class.
INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES
AND EXPENSES OF THE TAX-EXEMPT BOND FUND OF AMERICA. THIS AND OTHER IMPORTANT
INFORMATION IS CONTAINED IN THE PROSPECTUS, WHICH CAN BE OBTAINED FROM YOUR
FINANCIAL ADVISER AND SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO
CALL AMERICAN FUNDS SERVICE COMPANY AT 800/421-0180 OR VISIT THE AMERICAN FUNDS
WEBSITE AT AMERICANFUNDS.COM.
"AMERICAN FUNDS PROXY VOTING GUIDELINES"-- WHICH DESCRIBES HOW WE VOTE PROXIES
RELATING TO PORTFOLIO SECURITIES -- IS AVAILABLE UPON REQUEST, FREE OF CHARGE,
BY CALLING AMERICAN FUNDS SERVICE COMPANY, VISITING THE AMERICAN FUNDS WEBSITE
OR ACCESSING THE U.S. SECURITIES AND EXCHANGE COMMISSION WEBSITE AT WWW.SEC.GOV.
This report is for the information of shareholders of The Tax-Exempt Bond Fund
of America, 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 fund. If used as
sales material after June 30, 2004, this report must be accompanied by an
American Funds statistical update for the most recently completed calendar
quarter.
[logo - American Funds(R)]
The right choice for the long term(R)
WHAT MAKES AMERICAN FUNDS DIFFERENT?
For more than 70 years, we have followed a consistent philosophy that we firmly
believe is in our investors' best interests. The range of opportunities offered
by our family of just 29 carefully conceived, broadly diversified funds has
attracted over 25 million shareholder accounts.
OUR UNIQUE COMBINATION OF STRENGTHS INCLUDES THESE FIVE FACTORS:
o A LONG-TERM, VALUE-ORIENTED APPROACH
Rather than follow fads, we pursue a consistent strategy, focusing on each
investment's long-term potential.
o AN UNPARALLELED GLOBAL RESEARCH EFFORT
American Funds draws on one of the industry's most globally integrated
research networks.
o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Every American Fund is divided among a number of portfolio counselors. Each
takes responsibility for a portion independently, within each fund's
objectives; in most cases, research analysts manage a portion as well. Over
time this method has contributed to a consistency of results and continuity
of management.
o EXPERIENCED INVESTMENT PROFESSIONALS
The recent market decline was not the first for most of the portfolio
counselors who serve the American Funds. Nearly 70% of them were in the
investment business before the sharp market decline of 1987.
o A COMMITMENT TO LOW OPERATING EXPENSES
American Funds' operating expenses are among the lowest in the mutual fund
industry. Our portfolio turnover rates are low as well, keeping transaction
costs and tax consequences contained.
29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS
o GROWTH FUNDS
AMCAP Fund(R)
EuroPacific Growth Fund(R)
The Growth Fund of America(R)
The New Economy Fund(R)
New Perspective Fund(R)
New World Fund(SM)
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
American Mutual Fund(R)
Capital World Growth and Income Fund(SM)
Fundamental Investors(SM)
The Investment Company of America(R)
Washington Mutual Investors Fund(SM)
o EQUITY-INCOME FUNDS
Capital Income Builder(R)
The Income Fund of America(R)
o BALANCED FUND
American Balanced Fund(R)
o BOND FUNDS
American High-Income Trust(SM)
The Bond Fund of America(SM)
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities Fund(SM)
o TAX-EXEMPT BOND FUNDS
American High-Income Municipal Bond Fund(R)
Limited Term Tax-Exempt Bond Fund of America(SM)
> The Tax-Exempt Bond Fund of America(R)
STATE-SPECIFIC TAX-EXEMPT FUNDS
The Tax-Exempt Fund of California(R)
The Tax-Exempt Fund of Maryland(R)
The Tax-Exempt Fund of Virginia(R)
o MONEY MARKET FUNDS
The Cash Management Trust of America(R)
The Tax-Exempt Money Fund of AmericaSM
The U.S. Treasury Money Fund of AmericaSM
THE CAPITAL GROUP COMPANIES
American Funds
Capital Research and Management
Capital International
Capital Guardian
Capital Bank and Trust
Lit. No. MFGESR-919-0404
Litho in USA BDC/AL/8095
Printed on recycled paper
ITEM 2 - Code of Ethics
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 3 - Audit Committee Financial Expert
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 4 - Principal Accountant Fees and Services
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable.
ITEM 6 - Reserved
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 - Reserved
ITEM 9 - 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 committee comprised solely of persons
who are not considered "interested persons" of the registrant within the meaning
of the Investment Company Act of 1940. 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 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 committee.
ITEM 10 - Controls and Procedures
(a) The officers providing the certifications in this report in accordance with
rule 30a-2 under the Investment Company Act of 1940 have concluded, based
on their evaluation of the Registrant's disclosure controls and procedures
(as such term is defined in such rule), 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 last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 11 - Exhibits
(a) The Code of Ethics - not applicable for filing of Semiannual Reports to
Shareholders.
(b) 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.
THE TAX-EXEMPT BOND FUND
OF AMERICA, INC.
By
/s/ Neil L. Langberg
Neil L. Langberg, President and PEO
Date: May 7, 2004
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/ Neil L. Langberg
Neil L. Langberg, President and PEO
Date: May 7, 2004
By
/s/ Sharon G. Moseley
Sharon G. Moseley, Treasurer
Date: May 7, 2004