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: 811-7888
Limited Term Tax-Exempt Bond Fund of America
(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: July 31, 2004
Date of reporting period: January 31, 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)
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
[cover photograph - boardwalk on sand to beach waterfront]
Semi-annual report for the six months ended January 31, 2004
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA(SM) seeks current income exempt
from federal income taxes, consistent with preservation of capital, through
investments in tax-exempt securities with effective maturities between three and
10 years.
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 December 31, 2003 (the most recent
calendar quarter):
LIFETIME
1 YEAR 5 YEARS (SINCE 10/6/93)
CLASS A SHARES
Reflecting 3.75% maximum sales charge +0.39% +4.00% +4.85%
The fund's 30-day yield for Class A shares as of February 29, 2004, calculated
in accordance with the Securities and Exchange Commission formula, was 2.27%.
(This is equivalent to a taxable yield of 3.49% for investors in the 35.0% tax
bracket.) The fund's distribution rate for Class A shares as of that date was
3.05%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the
rate at which the fund is earning income on its current portfolio of securities
while the distribution rate reflects the fund's past dividends paid to
shareholders. Accordingly, the fund's SEC yield and distribution rate may
differ.
Results for other share classes can be found on page 4. Please see the back
cover for important information about other share classes.
FIGURES SHOWN ON THESE TWO PAGES ARE PAST RESULTS AND ARE NOT PREDICTIVE OF
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 income taxes and/or federal
alternative minimum taxes. Certain other income, as well as capital gain
distributions, may be taxable. Please consult with your tax adviser.
FELLOW SHAREHOLDERS:
[photo - black and white photo of boardwalk on sand to beach waterfront (front
cover)]
When Limited Term Tax-Exempt Bond Fund of America began the first half of its
fiscal year on August 1, 2003, the municipal bond market had just endured a
short but significant downturn caused by a sharp rise in interest rates during
July. (Interest rates and bond prices move inversely.) Over the fund's six-month
reporting period, however, municipal bonds bounced back from this mid-summer
decline and posted moderate gains. As a result, the fund did particularly well
for the period.
For the six months ended January 31, 2004, the fund paid dividends totaling 25
cents a share, all exempt from federal income taxes.
o If you took those dividends in cash, they represented a tax-free income
return of 1.67% (3.34% on a annualized basis).
o If you reinvested your dividends in additional fund shares, your income
return was 1.68% (3.36% on an annualized basis).
o To match a 3.36% annualized tax-free income return, a shareholder in the
top federal tax bracket of 35.0% would have had to earn 5.17% from a
taxable investment.
Meanwhile, Limited Term Tax-Exempt Bond Fund of America's Class A share net
asset value rose to $15.65 per share from $15.17 at the beginning of the period
- -- a gain of 3.16%. This increase, when combined with the fund's income return,
produced a six-month total return of 4.86% for shareholders who reinvested
dividends.
This return outpaced the 4.57% average total return of the 149 intermediate
municipal bond funds as measured by Lipper. The Lehman Brothers (7-year)
Municipal Bond Index (which does not include expenses and has a longer average
maturity than the fund) gained 5.70% for the same period.
A CONSERVATIVE INVESTMENT APPROACH
Intermediate-term bond prices hit their lows early in the period, but managed to
recover solidly in September 2003 and posted additional gains into the new
calendar year. At the beginning of the fund's reporting period, the municipal
bond market had just posted one of the worst monthly declines in decades. By
September, a tempered economic outlook helped trim fears of inflation and bond
prices began to rebound with the improvement extending through January 2004.
[Begin Sidebar]
TAX-FREE YIELDS VS. TAXABLE YIELDS
Find your estimated 2004 taxable income below to determine your federal tax
rate, then look in the right-hand column to see what you would have had to earn
from a taxable investment to equal the fund's 3.03% tax-free distribution rate
as of January 31, 2004.
For example, investors in the highest tax bracket (35.0%) would need to receive
a yield of 4.66% from a taxable investment in order to keep as much after taxes
as they would from a tax-free investment that pays 3.03%.
AS OF JANUARY 31, 2004,
THE FUND'S TAX-EXEMPT
THEN YOUR DISTRIBUTION RATE OF
IF YOUR TAXABLE INCOME IS... FEDERAL TAX 3.03% (2) IS EQUIVALENT
SINGLE JOINT RATE (1) IS... TO A TAXABLE RATE OF...
$0 - 7,150 $0 - 14,300 10.0% 3.37%
7,151 - 29,050 14,301 - 58,100 15.0 3.56
29,051 - 70,350 58,101 - 117,250 25.0 4.04
70,351 - 146,750 117,251 - 178,650 28.0 4.21
146,751 - 319,100 178,651 - 319,100 33.0 4.52
Over 319,100 Over 319,100 35.0 4.66
(1) Based on new 2004 federal tax rates. The federal brackets 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.
(2) Distribution rate based on the average offering price for the month of
January.
Figures shown on this page are past results and are not predictive of 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 reflect the deduction of the one-time maximum sales charge of 3.75% at
purchase.
[End Sidebar]
Over the past six months, the fund's managers decreased the average maturity of
portfolio holdings to help cushion the fund against a potential increase in
interest rates. (Bonds with shorter maturities tend to retain more of their
value when rates are rising.) At the end of the fund's reporting period, nearly
two-thirds of the fund's assets were rated in the highest categories -- AAA or
AA -- by the major independent credit rating services. Some of the fund's new
investments came from electric utility revenue bonds, and insured bonds, which
now represent almost 10% and 25% of the fund's portfolio, respectively.
RESULTS IN PERSPECTIVE
While the past period was a particularly good one for the fund, we would like to
caution shareholders that future returns will likely not be as strong. Capital
appreciation from declining interest rates played a meaningful role in the
fund's total return during the fiscal period; further declines from the current
low rates are unlikely.
Over the long term, Limited-Term Tax Exempt Bond Fund of America can be a key
component of your overall investment portfolio because it can provide much of
the income of longer term municipal bonds with less volatility. We remain
cautious going forward, but are confident that the fund's active management,
diligent research and conservative investment style make it well positioned for
the future.
We welcome our many new shareholders who helped increase the number of
shareholder accounts by more than 7.0%.
We thank all of you for your continued support.
/s/ Paul G. Haaga, Jr. /s/ Brenda S. Ellerin
Paul G. Haaga, Jr. Brenda S. Ellerin
Chairman of the Board President
March 16, 2004
[Begin Sidebar]
Abner D. Goldstine, president of Limited Term Tax-Exempt Bond Fund of America
for over 10 years and a fund Trustee, will now serve as vice chairman. The Board
of Trustees wishes to thank him for his many years of service as president and
his tireless efforts on the fund's behalf. The fund's new president is Brenda S.
Ellerin, who is also a fund Trustee.
[End Sidebar]
OTHER SHARE CLASS RESULTS unaudited
CLASS B, CLASS C AND CLASS F
RETURNS FOR PERIODS ENDED DECEMBER 31, 2003 LIFE
(THE MOST RECENT CALENDAR QUARTER): 1 YEAR 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 -1.43% +4.93% (1)
Not reflecting CDSC +3.57% +5.61% (1)
CLASS C SHARES
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase +2.43% +4.41% (2)
Not reflecting CDSC +3.43% +4.41% (2)
CLASS F SHARES (3)
Not reflecting annual asset-based fee charged
by sponsoring firm +4.19% +5.13% (2)
Figures shown on this page are past results and not predictive of 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.
INVESTMENT PORTFOLIO January 31, 2004 unaudited
QUALITY RATINGS
[begin pie chart]
Aaa/AAA 32.1 %
Aa/AA 31.8 %
A/A 9.8 %
Baa/BBB 20.3 %
Below investment grade 0.8 %
Cash & equivalents 5.2 %
[end pie chart]
Principal Market
amount value
FIXED-INCOME SECURITIES - 94.77% (000) (000)
ALABAMA - 0.55%
Industrial Dev. Board:
City of Butler, Pollution Control Rev. Ref. Bonds (James River Project),
Series 1993, 5.50% 2005 $ 1,000 $ 1,005
City of Selma, Environmental Improvement Rev. Ref. Bonds (International Paper Co. Projects),
Series 2003-A, 4.75% 2011 2,500 2,647
21st Century Auth., Tobacco Settlement Rev. Bonds, Series 2001:
5.25% 2006 1,000 1,055
5.25% 2009 1,000 1,045
ALASKA - 1.41%
Industrial Dev. and Export Auth., AMT:
Power Rev. Bonds (Snettisham Hydroelectric Project), First Series, AMBAC Insured:
5.25% 2005 930 964
5.25% 2005 (escrowed to maturity) 70 72
Revolving Fund Ref. Bonds, Series 2002-A, MBIA insured, 5.50% 2009 1,685 1,890
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds:
Series 2000, 5.60% 2010 1,000 1,008
Series 2001:
4.75% 2015 2,565 2,538
5.375% 2021 6,365 5,719
Student Loan Corp., Student Loan Rev. Bonds, Series 2000-A, AMT, AMBAC insured, 5.65% 2010 2,140 2,424
ARIZONA - 0.57%
Industrial Dev. Auth.:
County of Maricopa, Health Fac. Rev. Bonds (Catholic Healthcare West Project),
Series 1998-A, 4.30% 2005 1,950 2,004
County of Yavapai, Solid Waste Disposal Rev. Bonds (Waste Management, Inc.
Project), Series 2003-A2, AMT, 4.45% 2028 (put 2008) 3,750 3,925
CALIFORNIA - 4.86%
G.O. Bonds, 5.25% 2006 2,000 2,125
Joint Powers Health Fncg. Auth. Cert. of Part. (Community Hospitals of Central
California Project), Series 2001, 4.75% 2007 1,005 1,053
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Ref. Bonds (USA Waste
Services, Inc. Project), Series 1998-A, AMT, 5.10% 2018 (put 2008) 4,300 4,625
Public Works Board, Lease Rev. Bonds (Dept. of Corrections, State Prison,
Kern County at Delano II), Series 2003-C, 5.00% 2011 1,350 1,458
Statewide Communities Dev. Auth.:
Apartment Dev. Rev. Ref. Bonds (Irvine Apartment Communities, LP), Series 1998-A1,
AMT, 5.05% 2025 (put 2008) 4,000 4,265
Cert. of Part. (Catholic Healthcare West Project), Series 1999-A, 6.00% 2009 725 818
Multi-family Housing Rev. Ref. Bonds, Equity Residential:
Parkview Terrace Club Apartments, Issue 1999-B, 5.20% 2029 (put 2009) 1,150 1,253
Skylark Apartments, Issue 1999-D, 5.20% 2029 (put 2009) 1,500 1,634
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A:
5.50% 2008 2,000 2,220
MBIA insured, 5.25% 2010 6,650 7,574
5.50% 2010 1,000 1,124
FSA insured, 5.25% 2012 3,825 4,340
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps.:
Rev. Bonds (San Diego Hospital Association), Series 2001-A, 5.25% 2006 1,025 1,091
Rev. Ref. Cert. of Part.:
American Baptist Homes of the West Facs. Project, Series 1997-A:
5.25% 2007 565 576
5.50% 2007 635 653
Episcopal Homes Foundation, Series 1998:
4.80% 2006 2,000 2,084
5.00% 2007 1,405 1,480
5.00% 2008 2,455 2,586
Multi-family Housing Rev. Ref. Bonds (Archstone/Redwood Shores Apartments),
Series 2000-A, 5.30% 2008 2,700 2,886
Southern California Presbyterian Homes Obligated Group (Redwood Senior Homes
and Services), Rev. Bonds, Series 2002, 5.50% 2012 1,695 1,810
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium of the Pacific Project),
Series 1995-A, 5.75% 2005 (escrowed to maturity) 2,505 2,606
City of Torrance, Hospital Rev. Bonds (Torrance Memorial Medical Center),Series 2001-A:
4.70% 2009 1,010 1,093
4.80% 2010 940 1,015
COLORADO - 2.99%
Health Facs. Auth., Rev. Bonds:
Catholic Health Initiatives:
Series 1998-A, 5.375% 2010 2,145 2,337
Series 2001, 5.375% 2010 2,000 2,239
Series 2002-A:
5.00% 2010 1,500 1,639
5.00% 2012 1,000 1,089
Covenant Retirement Communities, Inc., Series 2002-B, 5.25% 2011 1,450 1,519
The Evangelical Lutheran Good Samaritan Society Project, Series 2002:
5.00% 2010 1,000 1,078
5.00% 2011 1,100 1,178
Housing and Fin. Auth., Single Family Program:
Senior Bonds, Series 1995-C2, 5.625% 2009 65 65
Senior and Subordinate Bonds, Series 1998-D3, 6.125% 2023 1,915 2,007
City of Colorado Springs, Utilities System Subordinate Lien Improvement Rev. Bonds,
Series 2003-A, 5.00% 2008 1,500 1,679
City and County of Denver, Airport System Rev. Ref. Bonds, AMT, FGIC insured:
Series 2001-A, 5.50% 2008 2,340 2,623
Series 2002-E:
5.00% 2010 2,000 2,200
5.00% 2011 2,000 2,184
5.00% 2012 1,500 1,631
Denver Convention Center Hotel Auth. Rev. Bonds, Series 2003-A, XLCA insured, 5.00% 2012 4,000 4,482
EagleBend Affordable Housing Corp., Multi-family Housing Project Rev. Ref. Bonds,
Series 1997-A, 5.75% 2007 1,885 1,908
University of Colorado Hospital Auth., Hospital Ref. Rev. Bonds, Series 1997-A, AMBAC insured,
5.50% 2007 1,000 1,121
CONNECTICUT - 1.04%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds: (1)
Series 1996-A:
6.375% 2004 (escrowed to maturity) 995 1,026
6.40% 2011 4,000 4,340
Series 1997-B:
5.55% 2008 1,000 1,106
5.70% 2012 1,000 1,067
Mohegan Tribe of Indians, Gaming Auth. Priority Distribution Payment, Public Improvement Bonds,
Series 2001, 5.375% 2011 3,000 3,262
DELAWARE - 0.21%
Econ. Dev. Auth., Pollution Control Rev. Ref. Bonds (Delmarva Power & Light Co.
Project), Series 2001-C, AMBAC insured, 4.90% 2026 (put 2011) 2,000 2,190
DISTRICT OF COLUMBIA - 2.16%
G.O. Ref. Bonds, FSA insured:
Series 1993-B2, 5.50% 2010 2,500 2,870
Series 1999:
5.50% 2009 695 792
5.50% 2009 (escrowed to maturity) 195 224
Cert. of Part., Lease Rev. Bonds, Series 2002, AMBAC insured:
5.25% 2010 1,000 1,120
5.25% 2013 2,000 2,215
Friendship Public Charter School, Inc., Issue Rev. Bonds, Series 2003,
ACA insured, 5.00% 2012 1,000 1,074
Gallery Place Project, Tax Increment Rev. Bonds, Series 2002, FSA insured:
5.25% 2009 1,570 1,768
5.25% 2010 1,400 1,586
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc. Issue),
Series 1997-A, MBIA insured, (escrowed to maturity):
6.00% 2006 1,000 1,106
6.00% 2007 1,250 1,420
MedStar Health, Inc. Issue, Multimodal Rev. Bonds (Georgetown University Hospital
and Washington Hospital Center Projects):
Series 2001-A, 6.40% 2031 (put 2004) 1,000 1,002
Series 2001-B, 6.625% 2031 (preref. 2005) 2,000 2,112
Series 2001-C, 6.80% 2031 (preref. 2006) 1,500 1,655
Series 2001-D, 6.875% 2031 (preref. 2007) 3,000 3,434
FLORIDA - 3.49%
Dade County, Resource Recovery Fac. Rev. Ref. Bonds, Series 1996, AMT,
AMBAC insured, 6.00% 2006 3,500 3,861
Escambia County Health Facs. Auth., Rev. Bonds (Ascension Health Credit Group),
Series 2003-A, 5.25% 2012 1,535 1,705
Highlands County Health Facs. Auth., Hospital Rev. Bonds (Adventist Health
System/Sunbelt Obligated Group) Series 2002-B, 5.00% 2010 2,000 2,185
Hillsborough County:
Aviation Auth., Tampa International Airport Rev. Bonds, Series 2003-A, AMT,
MBIA insured, 5.25% 2012 1,500 1,658
Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa General Hospital Project), Series 2003-A:
5.00% 2010 2,905 3,149
5.00% 2012 2,195 2,345
Lee County:
Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group,
Shell Point Village Project), Series 1999-A:
5.25% 2005 2,185 2,285
5.25% 2007 1,250 1,341
5.50% 2008 1,000 1,086
5.50% 2010 1,200 1,298
5.75% 2012 1,800 1,925
Solid Waste System Rev. Ref. Bonds, Series 2001, AMT, MBIA insured:
5.25% 2009 3,000 3,357
5.25% 2010 2,000 2,243
School Board of Miami-Dade County, Cert. of Part., MBIA insured:
Series 2003-B, 5.00% 2031 (put 2011) 2,915 3,224
Series 2003-C, 5.00% 2027 (put 2008) 2,175 2,398
St. Johns River Power Park System (JEA), Rev. Ref. Bonds, Issue Two, Series Eighteen, 5.00% 2009 1,000 1,119
Village Community Dev. Dist. No. 5 (Sumter County), Special Assessment Rev. Bonds,
Series 2003-B, 5.00% 2008 1,000 1,001
GEORGIA - 0.10%
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) 995 1,054
HAWAII - 0.10%
Cert. of Part. (Kapolei State Office Building), Series 1998-A, AMBAC insured, 5.00% 2005 1,000 1,047
IDAHO - 0.71%
Housing and Fin. Association, Single Family Mortgage Bonds, AMT:
Series 1998-C2, 5.25% 2011 305 317
Series 1998-E3, 5.125% 2011 420 436
Series 1998-H, 4.65% 2012 865 873
Series 1998-I2, 4.70% 2012 425 440
Series 2001-E, Class III, 5.40% 2021 945 975
Series 2002-F, Class III, 4.875% 2023 2,235 2,287
Series 2003-C, Class III, 4.50% 2023 1,080 1,034
Series 2003-E, Class III, 5.15% 2023 1,000 1,026
ILLINOIS - 5.51%
G.O. Bonds:
Illinois FIRST, Series of December 2002, 5.25% 2010 2,000 2,283
Series of April 1998, FSA insured:
5.50% 2009 (preref. 2008) 2,055 2,348
5.50% 2009 1,945 2,186
G.O. Ref. Bonds, Illinois FIRST, Series of August 2002, 5.25% 2008 1,000 1,121
Dev. Fin. Auth., Revolving Fund Rev. Bonds, Series 2002 (Master Trust):
5.00% 2009 2,000 2,236
5.00% 2010 1,500 1,684
Educational Facs. Auth.:
Adjustable Medium Term Rev. Bonds:
Field Museum of Natural History, Series 2002, 4.05% 2036 (put 2011) 4,000 4,132
Northwestern University, Series 1997, 5.00% 2032 (put 2009) 1,000 1,119
Student Housing Rev. Bonds, Educational Advancement Fund, Inc. (University Center Project),
Series 2002, 5.25% 2010 1,015 1,073
Health Facs. Auth.:
Rev. Bonds:
Advocate Health Care Network:
Series 1998-A:
5.25% 2005 1,615 1,701
5.00% 2006 750 802
5.00% 2006 (escrowed to maturity) 980 1,061
Series 2000:
5.25% 2007 1,000 1,097
5.30% 2008 2,000 2,216
6.125% 2011 1,000 1,141
Centegra Health System, Series 1998, 5.50% 2007 2,480 2,707
Highland Park Hospital Project, Series 1997-A , FGIC insured, 5.50% 2005 1,490 1,594
OSF Healthcare System, Series 1999:
5.25% 2005 855 902
5.375% 2006 900 972
5.50% 2008 1,000 1,108
University of Chicago Hospitals and Health System, Series 2003, MBIA insured, 5.00% 2008 1,000 1,107
Victory Health Services, Series 1997-A, 5.25% 2004 900 906
Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997-A:
5.50% 2004 1,250 1,277
5.10% 2005 1,815 1,908
Northwestern Medical Faculty Foundation, Inc., Series 1998, MBIA insured, 5.25% 2006 1,810 1,973
City of Chicago:
Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Revenues),
Series 2001-C, FSA insured, 5.25% 2010 1,000 1,142
Chicago-O'Hare International Airport:
General Airport Rev. Ref. Bonds, Series 1993-A, MBIA insured, 5.00% 2012 2,500 2,767
Passenger Fac. Charge Rev. Bonds, Series 1996-A, AMBAC insured, 5.60% 2010 4,000 4,336
Metropolitan Water Reclamation Dist. of Greater Chicago, G.O. Capital Improvement Bonds,
Limited Tax Series D of December 2002:
5.00% 2010 2,700 3,050
5.00% 2012 1,350 1,517
Community College Dist. No. 502, Counties of DuPage, Cook and Will, G.O. Bonds,
Series 2003-A, 5.00% 2011 1,000 1,128
Indian Prairie Community, Unit School Dist. Number 204, DuPage and Will Counties, School Building
Bonds (Naperville/Aurora), Series 1998, 5.25% 2011 2,275 2,528
INDIANA - 3.43%
Health Fac. Fncg. Auth.:
Hospital Rev. Bonds:
Charity Obligated Group:
Series 1997-D, 5.00% 2026 (preref. 2007) 1,425 1,548
Series 1999-D:
5.50% 2008 1,000 1,117
5.50% 2011 2,000 2,214
Clarian Health Partners, Inc., Series 1996-A, MBIA insured, 5.25% 2008 1,000 1,103
The Methodist Hospitals, Inc., Series 2001:
5.25% 2008 1,000 1,098
5.25% 2009 2,415 2,663
5.25% 2010 1,445 1,584
5.25% 2011 1,525 1,663
Rev. Bonds (Ascension Health Credit Group), Series 2002-F:
5.50% 2010 1,000 1,124
5.50% 2011 1,640 1,839
State Revolving Fund Program Bonds:
Series 1998-A, 5.00% 2010 3,085 3,366
Series 2001-A:
5.25% 2009 1,825 2,054
5.50% 2011 1,500 1,738
Transportation Fin. Auth., Toll Road Lease Rev. Ref. Bonds, Series 1996,
AMBAC insured, 5.25% 2010 4,970 5,441
Boone County Hospital Association, Lease Rev. Bonds, Series 2001, FGIC insured,
5.00% 2009 1,200 1,334
Trustees of Ivy Tech State College, Ivy Tech State College Student Fee Bonds,
Series H, AMBAC insured:
5.00% 2011 2,000 2,234
5.00% 2012 1,000 1,112
The Trustees of Purdue University, Cert. of Part., Series 2001-A:
5.00% 2009 1,000 1,117
5.00% 2010 1,135 1,273
IOWA - 0.20%
Fin. Auth., Hospital Rev. Bonds (Mercy Medical Center Project), Series 1999,
FSA insured, 5.30% 2009 1,000 1,130
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2011 1,000 996
KENTUCKY - 1.03%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare, Inc.), Series 2000-A, 6.125% 2010 3,000 3,265
Hospital System Ref. and Improvement Rev. Bonds (Appalachian Regional
Healthcare, Inc. Project), Series 1997:
5.20% 2004 1,000 1,006
5.40% 2006 1,500 1,506
5.50% 2007 465 464
City of Ashland, Pollution Control Rev. Ref. Bonds (Ashland Inc. Project),
Series 1999, 5.70% 2009 4,150 4,440
LOUISIANA - 0.77%
Public Facs. Auth.:
Hospital Rev. Ref. Bonds (Franciscan Missionaries of Our Lady Health System
Project), Series 1998-A, FSA insured, 5.50% 2006 4,500 4,899
Rev. Bonds (Ochsner Clinic Foundation Project), Series 2002-A, MBIA insured,
4.00% 2005 2,000 2,070
Jefferson Parish Hospital Service Dist. No. 2, Parish of Jefferson,
Hospital Rev. Bonds, Series 1998, FSA insured, 5.00% 2005 1,000 1,052
MAINE - 0.33%
Educational Loan Marketing Corp., Senior Student Loan Rev. Bonds,
Series 1994-A4, AMT, 6.05% 2004 1,500 1,516
Housing Auth., Mortgage Purchase Bonds, Series 2001-E1 (Non-AMT), 4.125% 2010 1,000 1,059
Student Loan Rev. Ref. Bonds, Series 1992-A1, AMT, 6.30% 2004 880 887
MARYLAND - 0.92%
G.O. Bonds, State and Local Facs. Loan of 2000, Series F, 5.50% 2008 1,000 1,139
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds, MedStar HealthIssue, Series 2004:
5.00% 2010 1,755 1,870
5.00% 2011 1,775 1,877
5.00% 2013 1,530 1,575
Anne Arundel County, Tax Increment Fncg. Bonds (Parole Town Center Project),
Series 2002, 5.00% 2012 3,015 3,049
MASSACHUSETTS - 1.89%
G.O. Bonds, Consolidated Loan:
Series 2001-B, 5.25% 2009 1,575 1,769
Series 2003-A, 5.25% 2013 2,000 2,246
Series 2004-A, 5.00% 2012 2,000 2,224
Educational Fncg. Auth., Education Loan Rev. and Ref. Bonds, Issue G,
Series 2000-A, AMT, MBIA insured, 5.55% 2008 1,865 1,976
Health and Educational Facs. Auth., Rev. Bonds, Partners HealthCare System Issue:
Series C, 5.00% 2007 1,550 1,695
Series E:
5.00% 2010 1,000 1,111
5.00% 2011 1,000 1,107
5.00% 2012 1,500 1,656
Industrial Fin. Agcy. Resource Recovery Rev. Ref. Bonds (Ogden Haverhill
Project), Series 1998-A, AMT, 5.15% 2007 1,550 1,564
Municipal Wholesale Electric Co., A Public Corp. of the Commonwealth of
Massachusets, Power Supply Project Rev. Bonds, Series A, MBIA insured:
Nuclear Project No. 5, 5.00% 2010 1,205 1,351
Nuclear Project No. 6, 5.00% 2010 1,000 1,122
State College Building Auth., Project and Rev. Bonds, Series 2003-A,
XLCA insured, 5.00% 2012 1,640 1,833
MICHIGAN - 4.96%
Higher Education Student Loan Auth., Student Loan Rev. Ref. Bonds,
Series XVII-F, AMT, AMBAC insured, 4.45% 2010 2,000 2,095
Hospital Fin. Auth.:
Hospital Rev. Bonds (Henry Ford Health System), Series 1999-A, 5.50% 2008 1,000 1,110
Hospital Rev. and Ref. Bonds:
The Detroit Medical Center Obligated Group:
Series 1993-A, 6.375% 2009 1,015 863
Series 1993-B, AMBAC insured, 5.00% 2006 1,000 1,037
MidMichigan Obligated Group, Series 1997-A, FSA insured, 5.50% 2007 2,775 3,080
Sparrow Obligated Group, Series 2001, 5.25% 2009 1,400 1,544
Hospital Rev. Ref. Bonds:
Hackley Hospital Obligated Group, Series 1998-A, 4.90% 2007 1,140 1,199
Henry Ford Hospital:
Series 1984-A, AMBAC insured, 6.00% 2011 1,250 1,491
Series 2003-A:
5.25% 2010 2,000 2,184
5.25% 2011 2,000 2,169
Pontiac Osteopathic, Series 1994-A, 5.375% 2006 2,285 2,289
Sinai Hospital of Greater Detroit, Series 1995, 6.00% 2008 825 721
Variable Rate Rev. Bonds (Ascension Health Credit Group):
Series 1999-B3, 5.30% 2033 (put 2006) 5,000 5,465
Series 1999-B4, 5.375% 2033 (put 2007) 2,000 2,224
Municipal Bond Auth.:
Federally Taxable School Loan Rev. Ref. Bonds, Series 2003-B, 5.25% 2011 2,000 2,287
Local Government Loan Program Rev. Bonds, Series 2003-C, 5.00% 2010 1,000 1,123
South Central Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002, AMBAC insured:
5.00% 2009 2,000 2,249
5.00% 2010 1,110 1,254
State Building Auth., College Savings Bonds, Rev. Bonds (Facs. Program),
Series 1997-II, 5.50% 2009 (preref. 2007) 1,000 1,136
State Trunk Line Fund Ref. Bonds, Series 1998-A:
5.25% 2011 1,000 1,146
5.25% 2012 1,000 1,144
Strategic Fund, Solid Waste Disposal Limited Obligation Rev. Ref. Bonds
(Waste Management, Inc. Project), Series 2004, AMT, 3.00% 2013 (put 2007) 3,000 3,013
Underground Storage, Tank Financial Assurance Auth., Rev. Ref. Bonds,
Series 1996-I, AMBAC insured, 5.50% 2009 2,150 2,341
City of Detroit, G.O. Ref. Bonds (Unlimited Tax), Series 1995-A, 6.25% 2004 1,000 1,009
Kent Hospital Fin. Auth., Rev. Bonds (Spectrum Health), Series 2001-A, 5.25% 2010 2,020 2,229
Regents of the University of Michigan, General Rev. Ref. Bonds, Series 2003, 5.00% 2012 1,000 1,120
Charter County of Wayne, Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne
County Airport), Series 2002-D, AMT, FGIC insured, 5.25% 2011 3,530 3,915
MINNESOTA - 0.41%
Housing Fin. Agcy., Single-family Mortgage Bonds, Series 2000-H, AMT, 4.25% 2006 1,350 1,418
Housing and Redev. Auth. of the City of St. Paul and the City of Minneapolis
Health Care Fac. Rev. Bonds, Series 2003, 5.25% 2010 1,050 1,132
Minneapolis-St. Paul Metropolitan Airports Commission, AMT, AMBAC insured, 5.50% 2008 1,500 1,660
MISSOURI - 0.73%
Health and Educational Facs. Auth. Rev. Bonds (SSM Health Care), Series 2002-A, 5.00% 2011 3,255 3,537
Industrial Dev. Auth. of the City of Lee's Summit, Health Facs. Rev. Bonds
(John Knox Village), Series 2002:
5.75% 2009 1,255 1,396
5.875% 2010 1,325 1,497
St. Louis Airport, Rev. Ref. Bonds (Lambert-St. Louis International Airport),
Series 2003-A, FSA insured, 5.25% 2012 1,000 1,125
MONTANA - 0.72%
City of Forsyth, Pollution Control Rev. Ref. Bonds, Series 1999-B, AMT,
AMBAC insured, 5.125% 2034 (put 2008) 6,825 7,485
NEBRASKA - 0.25%
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2002-D,
AMT, 3.90% 2009 1,265 1,318
Airport Auth. of the City of Omaha, Airport Facs. Rev. Ref. Bonds, Series 2001,
FSA insured, 5.50% 2012 1,155 1,305
NEVADA - 1.17%
Highway Improvement Rev. (Motor Vehicle Fuel Tax) Bonds, Series December 1,2000-A,
5.00% 2009 2,000 2,244
Housing Division, Single-family Mortgage Bonds, Series 1998-B1, 5.20% 2011 530 560
Clark County School Dist., G.O. (Limited Tax) Ref. Bonds, Series 2002-A,
FSA insured, 5.00% 2010 1,000 1,124
City of Henderson, Health Fac. Rev. Bonds (Catholic Healthcare West), Series 1998-A,
6.20% 2009 830 929
City of Las Vegas, Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont
Street Project), Series 2003-A:
5.00% 2011 3,450 3,623
4.50% 2012 3,625 3,661
NEW JERSEY - 1.72%
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds (Fellowship Village Project), Series 1998-A:
5.00% 2006 1,275 1,319
5.05% 2007 1,375 1,438
Educational Facs. Auth. Rev. Bonds, Rider University Issue, Series 2002-A,
RADIAN insured, 5.25% 2012 1,795 1,999
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2003:
4.375% 2019 1,000 978
6.125% 2024 6,000 5,856
Transportation Trust Fund Auth., Transportation System Bonds, Series 2003-C:
5.00% 2008 2,000 2,213
5.00% 2009 2,000 2,231
5.00% 2010 1,600 1,793
NEW MEXICO - 0.58%
Supplemental Severance Tax Bonds, Series 2002-A:
5.00% 2009 3,500 3,808
5.00% 2010 2,000 2,176
NEW YORK - 8.80%
G.O. Bonds, Fiscal 2003, Series G, 5.25% 2008 2,460 2,723
Dormitory Auth.:
Cert. of Part., City University of New York (John Jay College of Criminal
Justice Project Ref.), 6.00% 2006 1,500 1,651
Lease Rev. Bonds (State University Educational Facs. Issue), Series 2003,
XLCA insured, 5.25% 2032 (put 2013) 2,000 2,225
Mental Health Services Facs. Improvement Rev. Bonds, Series 1997-B:
6.00% 2007 990 1,102
6.00% 2007 (escrowed to maturity) 10 11
Rev. Bonds, Center for Nursing & Rehabilitation, Inc., FHA insured Mortgage
Nursing Home Rev. Bonds, Series 1997, 4.75% 2007 235 235
Secured Hospital Rev. Bonds (Saint Agnes Hospital), Series 1998-A, 4.80% 2006 1,000 1,062
Secured Hospital Rev. Ref. Bonds (Wyckoff Heights Medical Center),
Series 1998-H, 5.125% 2008 1,000 1,104
State Personal Income Tax Rev. Bonds (Econ. Dev. and Housing), Series 2003-A, 5.00% 2012 3,500 3,925
Third General Resolution Rev. Bonds (State University Educational Facs.
Issue), Series 2002-B, 5.25% 2023 (put 2012) 6,000 6,643
Housing Fin. Agcy., Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A:
6.00% 2006 5,450 5,990
6.00% 2007 1,000 1,092
Metropolitan Transportation Auth., State Service Contract Ref. Bonds,
Series 2002-A, 5.00% 2012 1,000 1,110
Thruway Auth.:
State Personal Income Tax Rev. Bonds (Transportation), Series 2002-A, 5.25% 2010 1,500 1,703
Local Highway and Bridge Service Contract Bonds, Series 2002:
5.25% 2009 3,055 3,423
5.25% 2010 2,000 2,252
Tobacco Settlement Fncg. Corp., Asset-backed Rev. Bonds, Series 2003-B1:
5.00% 2008 2,000 2,185
5.00% 2009 2,000 2,204
5.00% 2010 2,000 2,202
Castle Rest Residential Health Care Fac., FHA insured Mortgage Rev. Bonds,
Series 1997-A, 4.875% 2007 740 742
Local Government Assistance Corp. (A Public Benefit Corp.), Subordinate Lien
Ref. Bonds, Series 2003-A2, 5.00% 2010 1,500 1,681
Long Island Power Auth., Electric System General Rev. Bonds, Series 2003-B:
5.00% 2006 2,000 2,160
5.00% 2008 1,615 1,764
5.00% 2010 3,000 3,296
5.00% 2011 2,000 2,184
City of New York:
G.O. Bonds:
Fiscal 1997 Series L, 5.625% 2007 1,000 1,108
Fiscal 2001:
Series B:
4.90% 2009 1,000 1,098
5.50% 2010 1,000 1,133
Series D, 5.50% 2009 1,000 1,128
Series F, 5.00% 2010 1,000 1,104
Fiscal 2003, Series A, 5.125% 2010 2,000 2,222
Transitional Fin. Auth., Future Tax Secured Ref. Bonds, Fiscal 2003
Series A, 5.50% 2026 6,000 6,886
Port Auth. of New York and New Jersey, Consolidated Bonds, AMT, Series 131:
5.00% 2008 4,260 4,676
5.00% 2009 4,000 4,398
Triborough Bridge and Tunnel Auth., General Rev. Ref. Bonds, Series 2002-B:
5.00% 2009 2,000 2,246
5.00% 2010 3,000 3,385
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds
(Empire State Dev. Corp.), Series 2002-A:
5.00% 2017 (put 2011) 4,000 4,408
5.50% 2017 (put 2011) 2,500 2,832
NORTH CAROLINA - 3.66%
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds:
Series 1993-B:
6.00% 2005 1,330 1,347
7.00% 2008 1,950 2,239
6.125% 2009 1,750 1,971
Series 1993-C, 5.50% 2007 3,800 4,106
Series 2003-A:
5.50% 2010 1,500 1,642
5.50% 2011 1,000 1,090
5.50% 2012 2,155 2,358
Series 2003-D, 5.375% 2010 2,000 2,176
Infrastructure Fin. Corp. Lease-Purchase Rev. Bonds (North Carolina
Correctional Facs. Projects), Series 2003, 4.50% 2007 2,000 2,170
Municipal Power Agcy. Number 1, Catawba Electric Rev. Bonds:
Series 1992, MBIA insured, 6.00% 2010 3,000 3,510
Series 1997-A, MBIA insured, 5.125% 2011 3,750 4,127
Series 1999-B:
6.50% 2009 1,660 1,923
6.625% 2010 2,500 2,930
Series 2003-A:
5.50% 2012 2,500 2,787
5.50% 2013 2,250 2,505
City of Charlotte, Airport Rev. Bonds, Series 1999-B, AMT, MBIA insured, 5.125% 2009 1,035 1,141
OHIO - 2.09%
Higher Educational Fac. Commission, Adjustable Rev. Bonds (Kenyon College 2002 Project):
4.30% 2037 (put 2010) 2,000 2,103
4.60% 2037 (put 2012) 2,000 2,103
The Student Loan Funding Corp., Cincinnati, Student Loan Rev. Bonds,
Series 1988-B3, AMT, AMBAC insured, 5.125% 2005 1,000 1,010
Akron, Bath and Copley Joint Township Hospital Dist., Hospital Facs. Rev.
Bonds, Series 1993-A (Summa Health System Project), 5.75% 2008 2,540 2,594
County of Knox, Hospital Facs. Rev. Ref. Bonds (Knox Community Hospital),
Series 1998, Asset Guaranty insured, RADIAN insured, 4.70% 2008 1,155 1,252
County of Lorain, Catholic Healthcare Partners:
Hospital Facs. Rev. Bonds:
Series 2001-A, 5.25% 2010 2,275 2,512
Series 2002-A:
5.00% 2010 1,945 2,108
5.50% 2011 2,040 2,264
5.50% 2012 2,150 2,399
Hospital Facs. Rev. Ref. and Improvement Bonds, Series 2001-A, 5.25% 2009 1,170 1,298
County of Montgomery, Rev. Bonds (Catholic Health Initiatives), Series 2001, 4.00% 2005 2,000 2,075
OKLAHOMA - 0.14%
Industries Auth., Health System Rev. Ref. Bonds (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 1,240 1,438
OREGON - 0.22%
Salem-Keizer School Dist. No. 24J, Marion and Polk Counties, G.O. Bonds,
Series 1999, 5.25% 2010 2,000 2,238
PENNSYLVANIA - 1.52%
Housing Fin. Agcy., Single-family Mortgage Rev. Bonds, Series 2002-74, AMT, 4.25% 2012 910 950
Erie County, Industrial Dev. Auth., Environmental Improvement Rev. Ref. Bonds
(International Paper Co. Projects), Series 2002-A, 4.90% 2009 4,000 4,340
Hospitals and Higher Education Facs. Auth. of Philadelphia, Health System Rev.
Bonds (Jefferson Health System), Series 1997-A:
5.50% 2006 2,045 2,195
5.50% 2008 1,000 1,107
Philadelphia Auth. for Industrial Dev., Airport Rev. Bonds (Philadelphia
Airport System Project), Series 1998-A, AMT, FGIC insured, 5.25% 2009 3,410 3,747
Scranton-Lackawanna Health and Welfare Auth., Hospital Rev. Ref. Bonds
(The Community Medical Center Project), MBIA insured, 5.25% 2005 1,250 1,320
Westmoreland County Indust. Dev. Auth., Variable Rate Rev. Bonds (National
Waste and Energy Corp.; Valley Landfill Expansion Project), Series 1993, AMT,
5.10% 2018 (put 2009) 2,000 2,145
PUERTO RICO - 0.96%
G.O. Bonds:
Series D, FSA insured, 5.00% 2021 (put 2008) 1,000 1,111
Public Improvement Ref. Bonds, Series 2003-C, 5.00% 2018 4,000 4,377
Children's Trust Fund, Tobacco Settlement Asset-backed Bonds, Series 2000,
5.75% 2020 (preref. 2010) 4,040 4,523
RHODE ISLAND - 0.25%
Health and Educational Building Corp., Hospital Fncg. Rev. Bonds, Lifespan
Obligated Group Issue, Series 2002:
5.75% 2009 1,340 1,455
5.75% 2010 1,020 1,106
SOUTH CAROLINA - 0.55%
Housing Fin. and Dev. Auth. Mortgage Rev. Bonds, Series 2000-A2, AMT, FSA insured,
5.875% 2009 1,005 1,059
Georgetown County, Pollution Control Rev. Ref. Bonds (International Paper
Company Projects), Series 1999-A, 5.125% 2012 2,000 2,151
Tobacco Settlement Rev. Management Auth., Tobacco Settlement Asset-backed Bonds,
Series 2001-B, 6.00% 2022 1,500 1,432
York County, Pollution Control Facs. Rev. Bonds (Bowater Inc. Project),
Series 1990, AMT, 7.625% 2006 1,000 1,056
SOUTH DAKOTA - 0.36%
Housing Dev. Auth.:
Homeownership Mortgage Bonds:
2000 Series H, 5.00% 2009 1,300 1,408
2001 Series C, 4.55% 2010 980 1,053
Multiple Purpose Bonds, Series 2002-A, FSA insured, 4.15% 2009 1,170 1,251
TENNESSEE - 1.73%
City of Memphis, Electric System Subordinate Rev. Bonds, Series 2003-A, 5.00% 2006 2,000 2,178
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds
(Federal Express Corp.), Series 2001, 5.00% 2009 7,490 8,125
Metropolitan Government of Nashville and Davidson County, G.O. Multi-Purpose
Improvement Bonds, Series 1997-A, 5.125% 2010 1,000 1,093
Health, Educational and Housing Facs. Board of the County of Sullivan
(Wellmonth Health System Project):
Hospital Rev. Bonds, Series 2002:
5.50% 2006 1,475 1,581
5.75% 2007 1,555 1,695
Hospital Rev. Ref. Bonds, Series 2003:
5.00% 2007 1,000 1,062
RADIAN insured, 5.00% 2009 2,000 2,200
TEXAS - 18.37%
G.O. Bonds, Water Financial Assistance and Ref. Bonds, Series 2003-C, 5.00% 2011 2,205 2,481
Public Fin. Auth., G.O. Ref. Bonds:
Series 1997, 5.25% 2011 2,000 2,209
Series 2002, 5.25% 2007 1,500 1,667
Series 2003, 5.00% 2010 1,100 1,238
College Student Loan Bonds, Series 2000, AMT, 5.50% 2010 1,000 1,134
Angelina and Neches River Auth., Pollution Control Rev. Ref. Bonds (Temple-Inland Forest Products
Corp. Project), Series 1991, 5.65% 2012 5,350 5,618
City of Austin:
Public Improvement Bonds:
Series 1999, 5.75% 2011 1,500 1,721
Series 2001, 5.00% 2010 2,000 2,253
Travis and Williamson Counties, Public Improvement Ref. Bonds, Series 2003:
5.00% 2011 1,220 1,371
5.00% 2012 1,000 1,119
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. Bonds (Buckner
Retirement Services, Inc. Obligated Group Project), Series 1998:
5.00% 2005 1,330 1,394
5.00% 2007 1,470 1,583
Bexar County, Tax-Exempt Venue Project Rev. Bonds, Series 2000, MBIA insured, 5.50% 2009 2,000 2,290
Brazos River Auth., AMT:
Collateralized Pollution Control Rev. Ref. Bonds (Texas Utilities Electric Co. Project):
Series 1994-B, 5.40% 2029 (put 2006) 1,000 1,056
Series 1995-B, 5.05% 2030 (put 2006) 1,000 1,051
Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2001-C,
5.75% 2036 (put 2011) 5,750 6,218
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs.
Rev. Bonds (The Dow Chemical Co. Project), Series 2002-A4, AMT, 5.20% 2033 (put 2008) 6,450 6,927
Industrial Dev. Corp. of Port of Corpus Christi, Rev. Ref. Bonds
(Valero Refining and Marketing Co. Project), Series 1997-D, AMT, 5.125% 2009 1,000 1,062
Cypress-Fairbanks Independent School Dist., Unlimited Tax Ref. and
Schoolhouse Bonds, Series 2001, 5.25% 2011 2,000 2,273
City of Dallas, (Dallas, Denton, Collin and Rockwall Counties), Series 1998:
G.O. Ref. and Improvement Bonds, 5.00% 2012 4,000 4,361
Waterworks and Sewer System Rev. Ref. Bonds:
5.125% 2010 1,490 1,691
5.00% 2011 1,800 1,984
City of Fort Worth, (Tarrant and Denton Counties):
General Purpose Ref. Bonds, Series 2002, 5.00% 2010 1,000 1,121
Water and Sewer System Rev. Ref. and Improvement Bonds, Series 2003, 5.00% 2011 1,000 1,120
Fort Worth Independent School Dist. (Tarrant County), School Building
Unlimited Tax Bonds, Series 2001-A, 5.00% 2011 3,560 3,988
Gulf Coast Waste Disposal Authority, Solid Waste Disposal Rev. Bonds, (Waste
Management of Texas, Inc. Travis County Project), Series 2003-C, AMT,
2.85% 2028 (put 2004) 1,500 1,503
Harris County:
G.O. and Rev. Ref. Bonds, Series 2002, 5.25% 2010 1,585 1,805
Permanent Improvement and Ref. Bonds:
Series 2002, 5.00% 2010 4,645 5,224
Series 2003-B:
5.00% 2009 2,000 2,241
5.00% 2011 2,000 2,249
Health Facs. Dev. Corp.:
Hospital Rev. Bonds:
Memorial Hermann Hospital System Project, Series 1998, FSA insured, 5.25% 2008 1,000 1,111
Memorial Hospital System Project, Series 1997-A, MBIA insured:
6.00% 2009 3,215 3,729
6.00% 2010 1,500 1,753
Hospital Rev. Ref. Bonds, Children's Hospital Project, Series 1995,
MBIA insured, 6.00% 2004
(escrowed to maturity) 1,000 1,033
Rev. Bonds (St. Luke's Episcopal Hospital):
Series 2001-A:
5.50% 2010 1,705 1,903
5.50% 2011 1,000 1,115
Series 2002:
5.00% 2009 700 767
5.00% 2010 735 801
5.00% 2011 770 836
5.00% 2012 810 880
City of Houston, Airport System Subordinate Lien Rev. Bonds:
Series 1998-B, AMT, FGIC insured:
5.25% 2009 2,500 2,747
5.25% 2012 2,915 3,167
Series 2002-B, FSA insured, 5.25% 2011 2,000 2,272
Jefferson County, Health Facs. Dev. Corp., Baptist Hospitals of Southeast
Texas, FHA insured Mortgage Rev. Bonds, Series 2001, AMBAC insured, 4.50% 2010 1,000 1,080
Katy Independent School Dist. (Fort Bend, Harris and Waller Counties),
Unlimited Tax School Building Bonds, Series 2002-A:
5.25% 2011 1,000 1,136
5.25% 2012 2,000 2,270
Lower Colorado River Auth., Rev. Ref. Bonds, Series 2002, MBIA insured, 5.00% 2010 1,500 1,683
North Central Health Facs. Dev. Corp., Hospital Rev. Bonds:
Baylor Health Care System Project, Series 2002:
5.50% 2006 3,000 3,251
5.50% 2009 960 1,076
5.50% 2010 1,140 1,279
Children's Medical Center of Dallas Project, AMBAC insured, 5.00% 2009 1,100 1,225
North Texas Tollway Auth., Dallas North Tollway System, Series 2003:
FSA insured, 5.00% 2018 (put 2008) 1,000 1,109
AMBAC insured, 5.00% 2038 (put 2008) 4,000 4,437
City of Plano (Collin and Denton Counties), G.O. Ref. and Improvement Bonds,
Series 2003, 5.00% 2010 3,300 3,717
Plano Independent School Dist. (Collin County, Texas), Unlimited Tax School
Building and Ref. Bonds, Series 2001, 5.00% 2011 1,000 1,122
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Company
Project), Series 2001-A, 5.50% 2022 (put 2011) 2,000 2,155
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds,
Series 2002-A, 5.50% 2010 4,740 5,230
City of San Antonio:
General Improvement and Ref. Bonds:
Tax-Exempt Obligations, Series 1998, 5.00% 2009 2,000 2,185
Series 2001, 5.00% 2010 2,000 2,236
Series 2002, 5.00% 2011 3,000 3,370
Airport System Rev. Improvement Bonds, Series 2002, AMT, FGIC insured:
5.50% 2009 1,000 1,122
5.50% 2010 1,000 1,126
Electric and Gas Systems Rev. and Ref. Bonds:
New Series 1997:
5.30% 2011 (preref. 2007) 1,945 2,161
5.30% 2011 1,555 1,708
Series 1998-A, 5.125% 2009 2,455 2,747
New Series 2002:
5.25% 2011 4,500 5,110
5.25% 2012 2,000 2,269
New Series 2003 (forward delivery), 5.25% 2011 1,000 1,137
New Series 2003-A (forward delivery), 5.00% 2007 1,000 1,089
Socorro Independent School Dist. (El Paso County), Unlimited Tax School
Building Ref. Bonds, Series 2001, 5.00% 2009 1,255 1,405
Tarrant County, Health Facs. Dev. Corp.:
Health Resources System Rev. Bonds, Series 1997-A, MBIA insured, 5.50% 2007 1,000 1,102
Hospital Rev. Bonds (Baylor Health Care System Project), Series 2002-A, 5.00% 2008 1,635 1,791
Tarrant Regional Water Dist., A Water Control and Improvement Dist., Water Rev.
Ref. and Improvement Bonds, Series 2002, FSA insured, 5.00% 2010 2,000 2,239
Turnpike Auth., Central Turnpike System, Second Tier Bond Anticipation Notes,
Series 2002, 5.00% 2008 9,500 10,517
Board of Regents of the Texas A&M University System:
Permanent University Fund Ref. Bonds, Series 2003, 5.25% 2012 1,250 1,428
Rev. Fncg. System Bonds, 5.10% 2010 2,000 2,217
Board of Regents of The University of Texas System:
Rev. Fncg. System Bonds:
Series 1996-B, 5.00% 2011 2,000 2,183
Series 2001-B, 5.00% 2011 1,150 1,295
Series 2003-A, 5.00% 2009 1,000 1,121
Series 2003-B:
5.25% 2010 1,500 1,711
5.25% 2012 3,000 3,420
Rev. Fncg. System Ref. Bonds:
Series 2002, FSA insured, 5.00% 2010 1,400 1,568
Series 2002-B, 5.25% 2012 1,000 1,140
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System),
Series 2003, MBIA insured:
5.00% 2010 2,040 2,276
5.00% 2011 3,715 4,129
UTAH - 0.49%
Housing Corp., Single-family Mortgage Bonds, AMT:
Series 2002-C2, Class III, 5.25% 2018 1,940 2,041
Series 2002-D2, Class III, 5.00% 2018 965 1,005
Series 2002-E2, Class III, 4.95% 2019 995 1,039
Housing Fin. Agcy., (Federally Insured or Guaranteed Mortgage Loans):
Single-family Mortgage Bonds, AMT:
1998 Issue D-2, 5.25% 2012 155 164
1998 Issue E-1, 5.25% 2012 190 201
1998 Issue F-2, 4.25% 2008 625 646
Single-family Mortgage Purchase Ref. Bonds, Series 1996, 5.45% 2004 30 30
VERMONT - 0.25%
Educational and Health Buildings Fncg. Agcy., Hospital Rev. Bonds (Medical
Center Hospital of Vermont Project), Series 1993, FGIC insured, 5.75% 2007 2,500 2,558
VIRGIN ISLANDS - 0.49%
Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund Loan Notes), Senior Lien,
Series 1998-A, 5.20% 2010 4,765 5,068
Virginia - 1.15%
Housing Dev. Auth., AMT:
Commonwealth Mortgage Bonds, Series 2000-A1, 5.55% 2008 375 375
Rental Housing Bonds, Series 2000-D, 5.50% 2008 1,070 1,138
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT:
5.00% 2010 2,000 2,217
5.00% 2011 4,345 4,790
5.00% 2012 1,000 1,099
Industrial Dev. Auth. of the County of Charles City, Tax-Exempt Adjustable
Mode Solid Waste Disposal Rev. Bonds (Waste Management, Inc.), Series 2002,
AMT, 6.25% 2027 (put 2012) 2,000 2,271
WASHINGTON - 8.24%
G.O. Bonds, Series 1999-S1, 5.00% 2012 4,700 5,117
Motor Vehicle Fuel Tax G.O Bonds, Series A, 5.375% 2007 3,000 3,237
Various Purpose G.O. Bonds:
Series 1999-A, 5.25% 2010 1,000 1,106
Series 2000-B, 6.00% 2010 1,130 1,322
Health Care Facs. Auth., Series 1997-A, MBIA insured:
Weekly Rate Demand Rev. Bonds (Virginia Mason Medical Center), 6.00% 2006 1,000 1,105
Rev. Bonds (Catholic Health Initiatives), 5.10% 2010 1,000 1,100
Higher Education Facs. Auth., Rev. and Ref. Rev. Bonds (Gonzaga University
Project), Series 1998, MBIA insured, 4.80% 2009 1,000 1,105
Conservation and Renewable Energy System, Conservation Project Rev. Bonds
(Bonneville Power Administration), Series 2003:
5.00% 2010 1,240 1,379
5.00% 2011 1,000 1,107
Public Power Supply System, Rev. Ref. Bonds:
Nuclear Project No. 2:
Series 1997-B, 5.50% 2006 1,000 1,090
Series 1998-A, 5.00% 2005 4,250 4,473
Series 1998-A, 5.00% 2012 4,000 4,331
Nuclear Project No. 3:
Series 1997-A, FSA insured, 5.10% 2010 1,000 1,109
Series 1998-A, 5.00% 2005 1,000 1,052
Clark County, Evergreen School Dist. No. 114, Unlimited Tax G.O. Bonds,
Series 2002, FSA insured, 5.00% 2011 1,000 1,128
Energy Northwest, Columbia Generating Station Ref. Electric Rev. Bonds,
Series 2003-A, 5.50% 2012 3,500 4,018
Grays Harbor County, Public Utility Dist. No. 1, Electric Rev. Bonds,
Series 2001, AMBAC insured, 5.00% 2009 1,295 1,439
King County:
Limited Tax G.O. Bonds:
Series 1991-A, 5.00% 2009 2,500 2,646
Baseball Stadium:
Series 1997-D, 5.60% 2009 3,710 4,220
Series 2002, 5.00% 2008 2,000 2,236
Sewer Rev. Bonds, Rev. Ref. Bonds, Series 1999-B, FSA insured:
5.25% 2010 2,000 2,266
5.25% 2011 2,895 3,290
Public Utility Dist. No. 1 of Lewis County, Cowlitz Falls Hydroelectric Project
Rev. Ref. Bonds, Series 2003, XLCA insured, 5.00% 2011 2,000 2,236
Pierce County, Tacoma School District No. 10, Unlimited Tax G.O. Bonds,
Series 2003, FGIC insured, 5.00% 2009 1,500 1,686
City of Seattle:
Municipal Light and Power Improvements and Rev. Ref. Bonds, Series 2001,
FSA insured, 5.50% 2012 1,000 1,135
Municipal Light and Power Rev. Bonds, Series 1997, 5.00% 2010 1,000 1,102
Port of Seattle:
Passenger Fac. Charge Rev. Bonds, Series 1998-B, AMT, AMBAC insured:
5.25% 2009 1,000 1,105
5.25% 2011 2,000 2,195
Rev. Bonds, Series 2001-B, AMT, FGIC insured:
5.50% 2009 1,605 1,796
5.50% 2010 3,000 3,369
Special Fac. Rev. Bonds (SEATAC Fuel Facs. LLC), Series 2003, AMT,
MBIA insured, 5.00% 2012 1,510 1,638
Subordinate Lien Rev. Bonds, Series 1999-B, AMT, FGIC insured, 5.50% 2009 1,500 1,687
Snohomish County:
Limited Tax G.O. Bonds:
Series 2001, 5.00% 2010 3,000 3,383
Series 2003, 5.00% 2012 1,000 1,121
Everett School Dist. No. 2, Unlimited Tax G.O. Ref. Bonds, Series 2003, 4.50% 2007 1,890 2,053
Public Utility Dist. No. 1, Generation System Rev. Ref. Bonds, Series 2002-B, FSA insured:
5.25% 2009 1,000 1,135
5.25% 2010 2,000 2,282
5.25% 2011 4,000 4,562
City of Spokane, Regional Solid Waste Management System, Rev. Ref. Bonds,
Series 2001, AMBAC insured, 5.25% 2011 1,650 1,862
City of Tacoma, Electric System Rev. and Ref. Bonds, Series 2001-A,
FSA insured, 5.50% 2011 1,100 1,264
WISCONSIN - 2.69%
G.O. Ref. Bonds, Series 1998-1, 5.50% 2010 2,210 2,555
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds:
5.50% 2010 750 753
Rev. Bonds:
5.50% 2006 1,000 1,035
5.00% 2008 1,350 1,365
5.75% 2011 1,000 1,014
Health and Educational Facs. Auth.:
Rev. Bonds:
Froedtert & Community Health Obligated Group, Series 2001, 5.65% 2009 1,935 2,171
Gundersen Lutheran, Series 2003-A, FSA insured:
5.00% 2009 1,500 1,656
5.00% 2010 1,200 1,328
Hospital Sisters Services, Inc. - Obligated Group:
Series 1998-B, MBIA insured, 4.85% 2011 1,195 1,280
Series 2003-D, FSA insured, 5.00% 2011 2,515 2,803
The Monroe Clinic, Inc., Series 1999, 4.60% 2008 1,010 1,068
Wheation Franciscan Services, Series 2003-A:
5.00% 2008 1,595 1,740
5.00% 2012 2,065 2,233
Variable Rate Hospital Rev. Bonds (Charity Obligated Group, Daughters of Charity
National Health System), Series 1997-D, 4.90% 2015 (preref. 2005/put 2005) 3,050 3,242
Housing and Econ. Dev. Auth., Housing Rev. Bonds, Series 2000-C, AMT, MBIA insured, 4.35% 2009 1,005 1,077
City of Milwaukee, G.O. Corporate Purpose Bonds, Series R, 5.50% 2010 2,200 2,542
983,200
SHORT-TERM SECURITIES - 4.52%
Public Building Auth. of the City of Clarksville, Tennessee, Adjustable Rate
Pooled Fncg. Rev. Bonds: (2)
Series 2001, 1.00% 2031 4,330 4,330
Series 2003, 1.00% 2033 (3) 2,900 2,900
City of Detroit, Michigan, Sewage Disposal System, Rev. Bonds, Series 2003-B,
FSA insured, 1.00% 2033 (2) 1,800 1,800
City of Farmington, New Mexico, Pollution Control Rev. Ref. Bonds (Arizona
Public Service Co. Four Corners Project), Series 1994-C, AMT, 0.96% 2024 (2) 1,800 1,800
Lower Neches Valley Auth., Texas, Industrial Dev. Corp., Exempt Facs. Ref. Rev.
Bonds (ExxonMobil Project), Series 2001-B, AMT, 0.98% 2029 (2) 1,000 1,000
Commonwealth of Massachusetts, G.O. Ref. Bonds, Series 1998-A, 0.93% 2016 (2) 3,300 3,300
Massachusetts Bay Transportation Auth., General Transportation System Bonds,
Variable Rate Demand Obligations, Series 2000, 0.93% 2030 (2) 6,600 6,600
Public Building Auth. of the County of Montgomery, Tennessee, Adjustable
Rate Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool), Series 2002,
1.00% 2032 (2) 6,465 6,465
City of New York, New York, G.O. Bonds, Series 2004-A-5, 1.00% 2031 (2) 2,000 2,000
County of Riverside, California, Cert. of Part. ACES (Riverside County Public
Facs. Project), Series 1985-B, 0.92% 2015 (2) 5,800 5,800
Salt Lake County, Utah Pollution Control Rev. Ref. Bonds (Service Station
Holdings Inc. Project - The British Petroleum Company p.l.c. Guarantor),
Series 1994-B, 1.00% 2007 (2) 1,000 1,000
Industrial Dev. Corp. of the Port of Bellingham (Washington) Environmental
Facs. Industrial Rev. Bonds (Atlantic Richfield Company Project) Series 2001,
AMT, 1.04% 2033 (2) (3) 3,400 3,400
Will County, Illinois Exempt Fac. Industrial Rev. Bonds (BP Amoco Chemical
Company Project), Series 2001, AMT, 1.04% 2031 (2) 1,500 1,500
State of Connecticut Health and Educational Facs. Auth. Rev. Bonds,
Yale University Issues, 0.85% 2037 (2) 5,000 5,000
46,895
TOTAL INVESTMENT SECURITIES (cost: $991,230,000) 1,030,095
Other assets less liabilities 7,354
NET ASSETS $1,037,449
(1) Purchased in a private placement transaction; resale may be limited to
qualified institutional buyers; resale to the public may require
registration.
(2) Coupon rate may change periodically; the date of the next scheduled coupon
rate change is considered to be the maturity date.
(3) This security, or a portion of this security, has been segregated to cover
funding requirements on investment transactions setting in the future.
See Notes to Financial Statements
Key to abbreviations
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Cert. of Part. = Certificates of Participation
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 January 31, 2004
(dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market (cost: $991,230) $ 1,030,095
Cash 115
Receivables for:
Sales of fund's shares $ 4,588
Interest 11,696 16,284
1,046,494
LIABILITIES:
Payables for:
Purchases of investments 6,448
Repurchases of fund's shares 1,155
Dividends on fund's shares 717
Investment advisory services 260
Services provided by affiliates 380
Deferred Trustees' compensation 55
Other fees and expenses 30 9,045
NET ASSETS AT JANUARY 31, 2004 $1,037,449
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,004,766
Undistributed net investment income 186
Accumulated net realized loss (6,368)
Net unrealized appreciation 38,865
NET ASSETS AT JANUARY 31, 2004 $1,037,449
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES
AUTHORIZED
SHARES NET ASSET
NET ASSETS OUTSTANDING VALUE PER SHARE (1)
Class A $790,638 50,508 $15.65
Class B 53,603 3,424 15.65
Class C 113,016 7,220 15.65
Class F 32,869 2,100 15.65
Class R-5 47,323 3,023 15.65
(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 $16.26.
See Notes to Financial Statements
STATEMENT OF OPERATIONS unaudited
for the six months ended January 31, 2004 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $19,388
Fees and expenses:
Investment advisory services $ 1,581
Distribution services 1,990
Transfer agent services 86
Administrative services 133
Reports to shareholders 44
Registration statement and prospectus 100
Postage, stationery and supplies 16
Trustees' compensation 21
Auditing and legal 41
Custodian 10
Total expenses before reimbursement 4,022
Reimbursement of expenses 137 3,885
Net investment income 15,503
NET REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS
Net realized gain on investments 186
Net unrealized appreciation on
investments 30,087
Net realized gain and
unrealized appreciation
on investments 30,273
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $45,776
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended January 31, July 31,
2004* 2003
OPERATIONS:
Net investment income $15,503 $26,870
Net realized gain (loss) on investments 186 (4,184)
Net unrealized appreciation (depreciation)
on investments 30,087 (7,005)
Net increase in net assets
resulting from operations 45,776 15,681
DIVIDENDS PAID TO SHAREHOLDERS FROM
NET INVESTMENT INCOME (15,513) (26,832)
CAPITAL SHARE TRANSACTIONS 43,224 371,639
TOTAL INCREASE IN NET ASSETS 73,487 360,488
NET ASSETS:
Beginning of period 963,962 603,474
End of period (including undistributed net investment
income: $186 and $196, respectively) $1,037,449 $963,962
*Unaudited
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS unaudited
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - Limited Term Tax-Exempt Bond Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks current income exempt from federal
income taxes, consistent with preservation of capital, through investments in
tax-exempt securities with effective maturities between three and 10 years.
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:
- ---------------------------------------------------------------------------------------------------------
INITIAL SALES CONTINGENT DEFERRED SALES
SHARE CLASS CHARGE CHARGE UPON REDEMPTION CONVERSION FEATURE
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class A Up to 3.75% None (except 1% for certain None
redemptions within one year of
purchase without an initial
sales charge)
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class B None Declines from 5% to zero for Class B converts to
redemptions within six years Class A after eight
of purchase years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class C None 1% for redemptions within Class C converts to
one year of purchase Class F 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. Some securities may be
valued based on their effective maturity, the date the security is expected
to be called or refunded by the issuer or the date at which the investor
can redeem the security with the issuer. 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 Trustees.
Various factors may be reviewed in order to make a good faith determination
of a security's fair value. These factors include, but are not limited to,
the type and cost of the security; contractual or legal restrictions on
resale of the security; relevant financial or business developments of the
issuer; actively traded similar or related securities; conversion or
exchange rights on the security; related corporate actions; 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.
As of January 31, 2004, there were no material differences between book and tax
reporting. 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 January 31, 2004, the cost of investment securities for federal
income tax purposes was $990,964,000.
As of January 31, 2004, the components of distributable earnings on a tax basis
were as follows:
(dollars in thousands)
Undistributed net investment income $692
Accumulated short-term capital losses (5,551)
Accumulated long-term capital losses (817)
Gross unrealized appreciation on investment securities 40,538
Gross unrealized depreciation on investment securities (1,407)
Accumulated short-term capital losses above include capital loss carryforwards
of $1,018,000, $390,000, $261,000, $702,000 and $3,146,000 expiring in 2004,
2005, 2008, 2009 and 2011, respectively. The capital loss carryforwards will be
used to offset any capital gains realized by the fund in the current year or in
subsequent years through the expiration dates. The fund will not make
distributions from capital gains while capital loss carryforwards remain. Also
included in accumulated short-term and long-term capital losses above are
capital losses of $1,037,000 that were realized during the period November 1,
2002 through July 31, 2003.
Distributions paid to shareholders from tax-exempt income were as follows
(dollars in thousands):
[begin table]
SIX MONTHS ENDED YEAR ENDED
SHARE CLASS JANUARY 31, 2004 JULY 31, 2003
Class A $ 12,322 $ 21,827
Class B 675 954
Class C 1,329 2,062
Class F 458 732
Class R-5 729 1,257
Total $ 15,513 $ 26,832
[end table]
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 an
annual rate of 0.30% on the first $60 million of daily net assets and 0.21% on
such assets in excess of $60 million. The agreement also provides for monthly
fees, accrued daily, of 3.00% of the fund's monthly gross investment income. The
Board of Trustees approved an amended agreement effective November 1, 2003,
reducing the annual rate of 0.21% to 0.18% on such assets in excess of $60
million but not exceeding $1 billion and included an additional annual rate of
0.16% on assets exceeding $1 billion. During the period September 1, 2001
through October 31, 2003, CRMC voluntarily reduced management fees to 0.30% of
the first $60 million of daily net assets and 0.15% of such assets in excess of
$60 million. The gross investment income portion of the fee was unchanged. As a
result, for the six months ended January 31, 2004, the fee shown on the
accompanying financial statements of $1,581,000, which was equivalent to an
annualized rate of 0.318% was voluntarily reduced by $137,000 to $1,444,000, or
0.290% 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 Trustees
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
0.30% to 1.00% as noted below. In some cases, the Board of Trustees has
approved expense amounts lower than plan limits.
----------------------------------------------------------------------
SHARE CLASS CURRENTLY APPROVED LIMITS PLAN LIMITS
----------------------------------------------------------------------
----------------------------------------------------------------------
Class A 0.30% 0.30%
----------------------------------------------------------------------
----------------------------------------------------------------------
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 Trustees has also approved the reimbursement of
dealer and wholesaler commissions paid by AFD for certain shares sold
without a sales charge. This class reimburses AFD for amounts billed within
the prior 15 months but only to the extent that the overall annual expense
limit of 0.30% is not exceeded. As of January 31, 2004, unreimbursed
expenses subject to reimbursement totaled $2,029,000 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
January 31, 2004, were as follows (dollars in thousands):
=========================================================================================
ADMINISTRATIVE SERVICES
---------------------------------------
CRMC
DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE TRANSFER AGENT
SHARE CLASS SERVICES SERVICES SERVICES SERVICES
-----------------------------------------------------------------------------------------
Class A $1,140 $79 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class B 265 7 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class C 548 Included $82 $5
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class F 37 Included 22 2
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-5 Not applicable Included 21 1
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Total $1,990 $86 $125 $8
=========================================================================================
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1994, Trustees 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. Trustees' compensation in the accompanying financial statements
includes $14,000 in current fees (either paid in cash or deferred) and a net
increase of $7,000 in the value of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees 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):
SALES(1) REINVESTMENTS OF DIVIDENDS
SHARE CLASS AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED JANUARY 31, 2004
Class A $ 159,010 10,265 $ 9,686 624
Class B 5,947 385 493 32
Class C 20,032 1,294 1,057 69
Class F 11,992 773 340 22
Class R-5 12,962 834 320 20
Total net increase
(decrease) $ 209,943 13,551 $ 11,896 767
YEAR ENDED JULY 31, 2003
Class A $ 467,480 30,243 $ 16,955 1,097
Class B 42,863 2,775 677 43
Class C 87,502 5,668 1,600 104
Class F 39,271 2,540 559 36
Class R-5 20,849 1,347 654 43
Total net increase
(decrease) $ 657,965 42,573 $ 20,445 1,323
REPURCHASES(1) NET INCREASE
SHARE CLASS AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED JANUARY 31, 2004
Class A $ (139,163) (9,011) $ 29,533 1,878
Class B (5,188) (336) 1,252 81
Class C (17,222) (1,114) 3,867 249
Class F (9,293) (603) 3,039 192
Class R-5 (7,749) (503) 5,533 351
Total net increase
(decrease) $ (178,615) (11,567) $ 43,224 2,751
YEAR ENDED JULY 31, 2003
Class A $ (235,738) (15,273) $248,697 16,067
Class B (8,894) (576) 34,646 2,242
Class C (30,866) (2,000) 58,236 3,772
Class F (23,846) (1,541) 15,984 1,035
Class R-5 (7,427) (482) 14,076 908
Total net increase
(decrease) $ (306,771) (19,872) $371,639 24,024
(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 January 31, 2004, the total value
of restricted securities was $7,539,000, which represented 0.73% 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 $86,356,000 and $42,602,000, respectively, during the six months
ended January 31, 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 January 31, 2004, the custodian fee of $10,000 included $342
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
INCOME FROM INVESTMENT OPERATIONS(3)
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 1/31/2004 (2) $15.17 $.25 $.48 $.73
Year ended 7/31/2003 15.28 .52 (.11) .41
Year ended 7/31/2002 15.08 .58 .20 .78
Year ended 7/31/2001 14.43 .62 .65 1.27
Year ended 7/31/2000 14.62 .62 (.19) .43
Year ended 7/31/1999 14.85 .61 (.23) .38
CLASS B:
Six months ended 1/31/2004 (2) 15.17 .20 .48 .68
Year ended 7/31/2003 15.28 .42 (.11) .31
Year ended 7/31/2002 15.08 .47 .20 .67
Year ended 7/31/2001 14.43 .48 .69 1.17
Period from 3/15/2000 to 7/31/2000 14.27 .16 .21 .37
CLASS C:
Six months ended 1/31/2004 (2) 15.17 .19 .48 .67
Year ended 7/31/2003 15.28 .40 (.11) .29
Year ended 7/31/2002 15.08 .45 .20 .65
Period from 3/15/2001 to 7/31/2001 14.92 .15 .17 .32
CLASS F:
Six months ended 1/31/2004 (2) 15.17 .25 .48 .73
Year ended 7/31/2003 15.28 .51 (.11) .40
Year ended 7/31/2002 15.08 .55 .20 .75
Period from 3/15/2001 to 7/31/2001 14.92 .16 .19 .35
CLASS R-5:
Six months ended 1/31/2004 (2) 15.17 .27 .48 .75
Year ended 7/31/2003 15.28 .56 (.11) .45
Period from 7/15/2002 to 7/31/2002 15.27 .02 .01 .03
DIVIDENDS RATIO OF RATIO OF
(FROM NET NET ASSET NET ASSETS, EXPENSES NET INCOME
INVESTMENT VALUE, END TOTAL END OF PERIOD TO AVERAGE TO AVERAGE
INCOME) OF PERIOD RETURN(4) (IN MILLIONS) NET ASSETS NET ASSETS
CLASS A:
Six months ended 1/31/2004 (2) $(.25) $15.65 4.86% $791 .66% (5) (6) 3.24% (5)
Year ended 7/31/2003 (.52) 15.17 2.71 738 .66 (6) 3.37
Year ended 7/31/2002 (.58) 15.28 5.32 497 .70 (6) 3.86
Year ended 7/31/2001 (.62) 15.08 8.99 306 .75 (6) 4.18
Year ended 7/31/2000 (.62) 14.43 3.09 258 .75 (6) 4.33
Year ended 7/31/1999 (.61) 14.62 2.59 283 .75 (6) 4.12
CLASS B:
Six months ended 1/31/2004 (2) (.20) 15.65 4.50 53 1.36 (5) (6) 2.54 (5)
Year ended 7/31/2003 (.42) 15.17 1.98 51 1.35 (6) 2.63
Year ended 7/31/2002 (.47) 15.28 4.52 17 1.40 (6) 3.06
Year ended 7/31/2001 (.52) 15.08 8.24 2 1.59 (6) 3.24
Period from 3/15/2000 to 7/31/2000 (.21) 14.43 2.59 1 .61 (6) 1.23
CLASS C:
Six months ended 1/31/2004 (2) (.19) 15.65 4.43 113 1.49 (5) (6) 2.41 (5)
Year ended 7/31/2003 (.40) 15.17 1.86 106 1.49 (6) 2.51
Year ended 7/31/2002 (.45) 15.28 4.38 49 1.52 (6) 2.92
Period from 3/15/2001 to 7/31/2001 (.16) 15.08 2.14 4 .75 1.05
CLASS F:
Six months ended 1/31/2004 (2) (.25) 15.65 4.81 33 .74 (5) (6) 3.14 (5)
Year ended 7/31/2003 (.51) 15.17 2.61 29 .74 (6) 3.27
Year ended 7/31/2002 (.55) 15.28 5.11 13 .82 (6) 3.69
Period from 3/15/2001 to 7/31/2001 (.19) 15.08 2.34 2 .60 1.18
CLASS R-5:
Six months ended 1/31/2004 (2) (.27) 15.65 4.97 47 .44 (5) (6) 3.47 (5)
Year ended 7/31/2003 (.56) 15.17 2.93 40 .44 (6) 3.61
Period from 7/15/2002 to 7/31/2002 (.02) 15.28 .23 27 .02 .16
SIX MONTHS ENDED
JANUARY 31, YEAR ENDED JULY 31
2004 (2) 2003 2002 2001 2000 1999
PORTFOLIO TURNOVER RATE FOR
ALL CLASSES OF SHARES 5% 10% 9% 21% 34% 17%
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Unaudited.
(3) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(4) Total returns exclude all sales charges, including contingent deferred
sales charges.
(5) Annualized.
(6) Had CRMC not waived management services fees, the fund's expense ratio
would have been 0.68%, 0.71%, 0.75%, 0.80%, 0.81%, and 0.77% for the
periods ended 2004, 2003, 2002, 2001, 2000 and 1999, respectively, for
Class A; 1.39%, 1.40%, 1.45%, 1.60% and 0.71% for the periods ended 2004,
2003, 2002, 2001 and 2000, respectively, for Class B; 1.52%, 1.54% and
1.58% for the periods ended 2004, 2003 and 2002, respectively, for Class C;
0.77%, 0.79% and 0.87% for the periods ended 2004, 2003 and 2002,
respectively, for Class F; and 0.47% and 0.49% for the periods ended 2004
and 2003 for Class R-5.
See Notes to Financial Statements
[logo - American Funds(R)]
The right choice for the long term(R)
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 Limited Term 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 0.70
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 0.83 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 0.08
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 CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES
OF LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA CAREFULLY. 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 Limited Term 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 March 31, 2004, this report must be accompanied by an
American Funds statistical update for the most recently completed calendar
quarter.
THE CAPITAL GROUP COMPANIES
American Funds
Capital Research and Management
Capital International
Capital Guardian
Capital Bank and Trust
Lit. No. MFGESR-943-0304
Litho in USA WG/PNL/8089
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 Trustees 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 Trustees. While the committee normally is able to identify from its own
resources an ample number of qualified candidates, it will consider shareholder
suggestions of persons to be considered as nominees to fill future vacancies on
the Board. Such suggestions must be sent in writing to the 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.
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
By /s/ Brenda S. Ellerin
- -------------------------------------------------------
Brenda S.Ellerin, President and PEO
Date: April 8, 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/ Brenda S. Ellerin
--------------------------------------------------
Brenda S. Ellerin, President and PEO
Date: April 8, 2004
By /s/ Sharon G. Moseley, Treasurer
--------------------------------------------------
Sharon G. Moseley, Treasurer
Date: April 8, 2004