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, 2005
Date of reporting period: January 31, 2005
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:
Michael Glazer
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: photo of a gravel road with fields on both sides of the road]
Semi-annual report for the six months ended January 31, 2005
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.
FIGURES SHOWN 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. INVESTING FOR SHORT PERIODS MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT
FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER
ENTITY. FOR THE MOST CURRENT INFORMATION AND MONTH-END RESULTS, VISIT
AMERICANFUNDS.COM. 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.
Here are the average annual total returns on a $1,000 investment with all
distributions reinvested for periods ended December 31, 2004 (the most recent
calendar quarter):
1 year 5 years 10 years
Class A shares
Reflecting 3.75% maximum sales charge -1.10% +4.69% +5.20%
The fund's investment adviser is waiving a portion of its management fees.
Results shown reflect the waiver. Please see the Financial Highlights table on
page 20 for details.
The fund's 30-day yield for Class A shares as of February 28, 2005, calculated
in accordance with the Securities and Exchange Commission formula, was 2.56%,
which reflects a fee waiver (2.55% without the fee waiver). (This is equivalent
to a taxable yield of 3.94%, which reflects the fee waiver -- 3.92% without the
fee waiver, for investors in the 35.0% tax bracket.) The fund's distribution
rate for Class A shares as of that date was 3.23% (3.21% without the fee
waiver). 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 inside
back cover for important information about other share classes.
The return of principal in bond funds is not guaranteed. Bond funds have the
same interest rate, inflation and credit risks that are associated with the
underlying bonds owned by the fund.
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.
[photo of a gravel road with fields on both sides of the road]
FELLOW SHAREHOLDERS:
For the six months ended January 31, 2005, Limited Term Tax-Exempt Bond Fund of
America provided its shareholders with attractive tax-free income and enjoyed a
modest rise in share price. During the period, the fund paid dividends totaling
25 cents a share.
o If you took those dividends in cash, they represented a tax-free income
return of 1.64% (3.28% on an annualized basis).
o If you reinvested your dividends in additional fund shares, your income
return was 1.65% (3.30% on an annualized basis).
o To match a 3.30% annualized tax-free income return, a shareholder in the
top federal tax bracket (35%) would have to earn 5.08% from a taxable
investment.
Over the six-month period, the net asset value of Class A shares gained 1.11%.
This gain, coupled with the fund's income return, produced a total return of
2.76% for shareholders who reinvested dividends.
The fund's total return fell shy of the 2.99% average return of its peer group,
intermediate municipal debt funds as monitored by Lipper. In addition, the
Lehman Brothers (7-year) Municipal Bond Index, which serves as a proxy for the
intermediate municipal bond market, topped the fund and its peer group average
with a 3.52% return. The index, however, is unmanaged and its return does not
include expenses.
BOND MARKET OVERVIEW
The first half of the current fiscal year could be described as "A Tale of Two
Markets." Rising yields dampened prices on short-term bonds, while bonds with
longer maturities generally attracted higher prices. (A bond's yield and its
price move in opposite directions.) Short-term yields rose in response to the
Federal Reserve Board's efforts to shift from an accommodating to a more neutral
monetary policy. Since June 30, 2004, the Fed has been gradually raising its key
lending rate in quarter-point increments, bringing it to 2.50% from 1.00%.
Defying investor expectations, intermediate- and long-term bonds were largely
unaffected by the Fed's rate pressures. This surprised many investors because
bond yields across all maturities often rise in the early stages of a tightening
cycle (when the Fed is raising rates) -- but not this time.
HOW THE FUND RESPONDED
This discrepancy between short-term and long-term rate trends had a direct and
relative effect on fund results.
High-quality, short-term bonds are typically regarded as "safe havens" when
interest rates are rising because their prices are less affected by rate
fluctuations than are long-term bonds. To protect shareholder principal in the
event of rising rates, the fund's portfolio counselors took steps to shorten the
maturity structure of the fund. This defensive strategy lowered the fund's
exposure to rising rates, but it also altered the potential for capital
appreciation over the near-term. Long and intermediate rates did not rise, but
declined instead over the six-month period. As a result, the fund benefited less
than the Lehman index and its peer group average, both of which had a longer
maturity exposure than that of the fund.
[Begin Sidebar]
Tax-free yields vs. taxable yields
Find your estimated taxable income below to determine your federal tax rate1,
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 3.11% tax-free distribution rate as of
January 31, 2005.
For example, investors in the highest tax bracket (35.0%) would need to receive
a yield of 4.78% from a taxable investment in order to keep as much after taxes
as they would from a tax-free investment that pays 3.11%.
As of January 31, 2005,
the fund's tax-exempt
distribution rate of
If your taxable income is... Then your federal 3.11%(2) is equal to
Single Joint tax rate(1) is... a taxable rate of...
$0 - 7,150 $0 - 14,300 10.0% 3.46%
7,151 - 29,050 14,301 - 58,100 15.0 3.66
29,051 - 70,350 58,101 - 117,250 25.0 4.15
70,351 - 146,750 117,251 - 178,650 28.0 4.32
146,751 - 319,100 178,651 - 319,100 33.0 4.64
Over 319,100 Over 319,100 35.0 4.78
(1) Based on 2004 federal tax rates. The federal rates 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.
[End Sidebar]
Our conservative posture underscores an important aspect of the fund's objective
- -- safeguarding shareholder principal. When market conditions appear adverse,
our portfolio counselors typically adopt protective measures. Over its lifetime,
this practice has helped the fund deliver attractive current income with a
relatively low level of volatility.
Comprehensive research remains the cornerstone of our bond selection process and
the requisite complement to our conservative approach. Past research efforts
have steered the fund toward select investments in electric utility revenue
bonds and tobacco settlement obligations -- two classes of debt that have done
especially well over the past six months.
LOOKING AHEAD
Through the balance of this fiscal year, short-term rates are likely to rise
further, as the Fed continues to tighten monetary policy. The outlook for
long-term and intermediate rates, though, is less clear. Nevertheless, we
believe a cautious and conservative posture is warranted, whether short rates
continue narrowing to those of longer maturities or long rates finally begin to
increase.
With every investment decision, the portfolio counselors of Limited Term
Tax-Exempt Bond Fund of America take a long-term view. This perspective helps us
evaluate the strength of portfolio holdings through a variety of market
conditions and economic cycles. It encourages prudence and patience, as well. We
invite all our shareholders to adopt a similar long-term outlook on their
investment objectives, and we thank you for making Limited Term Tax-Exempt Bond
Fund of America part of your investment portfolio.
Cordially,
/s/ Paul G. Haago, Jr. /s/ Brenda S. Ellerin
Paul G. Haaga, Jr. Brenda S. Ellerin
Chairman of the Board President
March 14, 2005
For current information about the fund, visit americanfunds.com.
OTHER SHARE CLASS RESULTS (unaudited)
Class B, Class C and Class F
Figures shown are past results and are not predictive of results in future
periods. Current and future results may be lower or higher than those shown.
Share prices and returns will vary, so investors may lose money. For the most
current information and month-end results, visit americanfunds.com.
Returns for periods ended December 31, 2004 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 -2.91% +4.51%(1)
Not reflecting CDSC +2.06% +4.86%(1)
Class C shares
Reflecting CDSC, maximum of 1%, payable only if shares are sold
within one year of purchase +0.93% +3.75%(2)
Not reflecting CDSC +1.93% +3.75%(2)
Class F shares(3)
Not reflecting annual asset-based fee charged by sponsoring firm +2.68% +4.48%(2)
The fund's investment auditer is waiving a portion of its management fees.
Results shown reflect the waiver. Please see the Financial Highlights table on
page 20 for details.
(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.
SUMMARY INVESTMENT PORTFOLIO January 31, 2005 unaudited
The following summary investment portfolio is designed to streamline the report
and help investors better focus on a fund's principal holdings. For details on
how to obtain a complete schedule of portfolio holdings, please see the inside
back cover.
[begin pie chart]
Quality Ratings*
Aaa/AAA 35.1%
Aa/AA 28.6%
A/A 13.4%
Baa/BBB 19.2%
Ba/BB 0.9%
Cash & equivalents 2.8%
*Bond ratings reflect those of a credit rating agency; if ratings are not
available, they are assigned by the fund's research analysts.
[end pie chart]
unaudited
Principal Market Percent
amount value of net
Bonds & notes - 97.16% (000) (000) assets
Alaska - 1.54%
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, $6,365 $6,143 .56%
Series 2001, 5.375% 2021
Other securities 10,712 .98
16,855 1.54
Arizona - 0.97%
Industrial Dev. Auth. of the County of Yavapai, Solid Waste Disposal Rev. Bonds 3,750 3,836 .35
(Waste Management, Inc. Project), Series 2003-A-2, AMT, 4.45% 2028 (put 2008)
Other securities 6,784 .62
10,620 .97
California - 5.25%
Pollution Control Fncg. Auth., AMT:
Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), 2,000 2,084
Series 2003-A, 5.00% 2038 (put 2013)
Solid Waste Disposal Rev. Ref. Bonds (USA Waste Services, Inc. Project), 4,300 4,508
Series 1998-A, 5.10% 2018 (put 2008)
Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), 2,000 1,993 .78
Series 2002-A, 3.125% 2022 (put 2006)
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, 6,650 7,410 .68
MBIA insured, 5.25% 2010
Other securities 41,440 3.79
57,435 5.25
Colorado - 2.63%
Denver Convention Center Hotel Auth., Rev. Bonds, Series 2003-A, XLCA insured, 4,000 4,417 .40
5.00% 2012
Other securities 24,368 2.23
28,785 2.63
Connecticut - 0.88%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1996-A, 4,000 4,249 .39
6.40% 2011 (1)
Other securities 5,346 .49
9,595 .88
District of Columbia - 1.45% 15,828 1.45
Florida - 4.24%
Escambia County Health Facs. Auth., Rev. Bonds (Ascension Health Credit Group), 1,535 1,702 .16
Series 2003-A, 5.25% 2012
Miami-Dade County Industrial Dev. Auth., Solid Waste Disposal Rev. Bonds (Waste 1,000 1,006 .09
Management, Inc. Project), Series 2004, AMT, 4.00% 2018 (put 2009)
School Board of Miami-Dade County, Certs. of Part., Series 2003-C, MBIA insured, 5,175 5,554 .51
5.00% 2027 (put 2008)
Palm Beach County, Public Improvement Ref. Rev. Bonds (Convention Center Project), 4,650 5,072 .46
Series 2004, FGIC insured, 5.00% 2030 (put 2011)
Other securities 33,078 3.02
46,412 4.24
Idaho - 0.61% 6,664 .61
Illinois - 5.95%
City of Chicago, O'Hare International Airport:
General Airport Rev. Ref. Bonds, Series 2004-B, MBIA insured, 5.00% 2007 5,000 5,228
Passenger Fac. Charge Rev. Bonds, Series 1996-A, AMBAC insured, 5.60% 2010 4,000 4,185 .86
Chicago Transit Auth., Capital Grant Receipts Rev. Bonds (Federal Transit Admin. 3,935 4,340 .40
Section 5307 Formula Funds), Series 2004-B, AMBAC insured, 5.00% 2011
Other securities 51,317 .69
65,070 5.95
Indiana - 3.28%
Health Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), 3,640 4,050 .37
Series 2002-F, 5.50% 2009-2011
Transportation Fin. Auth., Toll Road Lease Rev. Ref. Bonds, Series 1996, 4,970 5,252 .48
AMBAC insured, 5.25% 2010
Other securities 26,617 2.43
35,919 3.28
Kentucky - 0.88%
City of Ashland, Pollution Control Rev. Ref. Bonds (Ashland Inc. Project), 4,150 4,464 .41
Series 1999, 5.70% 2009
Other securities 5,218 .47
9,682 .88
Louisiana - 0.70%
Public Facs. Auth., Hospital Rev. Ref. Bonds (Franciscan Missionaries of Our 4,500 4,688 .43
Lady Health System Project), Series 1998-A, FSA insured, 5.50% 2006
Other securities 3,022 .27
7,710 .70
Maryland - 0.85% 9,308 .85
Massachusetts - 2.65%
G.O. Bonds, Consolidated Loan, 5.00%-5.25% 2009-2013 5,575 6,184 .56
Housing Fin. Agcy., Single-family Housing Notes, Series S, AMT, 4.00% 2007 4,750 4,878 .45
Massachusetts Bay Transportation Auth., Sales Tax Bonds, Series 2004-C, 5.25% 2014 5,000 5,686 .52
Other securities 12,266 1.12
29,014 2.65
Michigan - 4.32%
Hospital Fin. Auth., Rev. Bonds (Ascension Health Credit Group):
Series 1999-B3, 5.30% 2033 (put 2006) 5,000 5,238
Series 1999-B4, 5.375% 2033 (put 2007) 2,000 2,138 .68
Strategic Fund, Solid Waste Disposal Limited Obligation Rev. Ref. Bonds (Waste 3,000 2,970 .27
Management, Inc. Project), Series 2004, AMT, 3.00% 2013 (put 2007)
Other securities 36,923 3.37
47,269 4.32
Missouri - 0.88%
Health and Educational Facs. Auth., Rev. Bonds (SSM Health Care), Series 2002-A, 5,255 5,711 .52
5.00% 2011
Other securities 3,955 .36
9,666 .88
Montana - 0.67%
City of Forsyth, Pollution Control Rev. Ref. Bonds (Avista Corp. Colstrip Project), 6,825 7,295 .67
Series 1999-B, AMT, AMBAC insured, 5.125% 2034 (put 2008)
Nevada - 1.35% 14,783 1.35
New Jersey - 3.57%
Certs. of Part., Series 2004-A, 5.00% 2009 4,000 4,309 .39
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, 7,000 7,008 .64
Series 2003, 6.125% 2024
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014 8,000 9,028 .83
Other securities 18,677 1.71
39,022 3.57
New Mexico - 0.53% 5,806 .53
New York - 8.97%
Dormitory Auth., Third General Resolution Rev. Bonds (State University Educational 9,125 10,077 .92
Facs. Issue), Series 2002-B, 5.25% 2023 (put 2012)
City of New York, G.O. Bonds, 4.50%-5.625% 2007-2012 13,710 14,837 1.36
Housing Fin. Agcy., Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A, 5,450 5,738 .52
6.00% 2006
New York City Transitional Fin. Auth., Future Tax Secured Ref. Bonds, Series 7,000 7,859 .72
2003-A, 5.50% 2026
Port Auth. of New York and New Jersey, Consolidated Bonds, Series 131, AMT:
5.00% 2008 4,260 4,572
5.00% 2009 4,000 4,328 .81
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds 4,000 4,328 .40
(Empire State Dev. Corp.), Series 2002-A, 5.00% 2017 (put 2011)
Other securities 46,400 4.24
98,139 8.97
North Carolina - 3.38%
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, 14,155 15,291 1.40
5.375%-7.00% 2007-2012
Other securities 21,721 1.98
37,012 3.38
Ohio - 1.73% 18,913 1.73
Pennsylvania - 1.61%
Erie County Industrial Dev. Auth., Environmental Improvement Rev. Ref. Bonds 4,000 4,266 .39
(International Paper Co. Projects), Series 2002-A, 4.90% 2009
Westmoreland County Industrial Dev. Auth., Rev. Bonds (National Waste and Energy 2,000 2,107 .19
Corp.; Valley Landfill Expansion Project), Series 1993, AMT, 5.10% 2018 (put 2009)
Other securities 11,278 1.03
17,651 1.61
Puerto Rico - 1.87%
Public Fin. Corp. (Commonwealth Appropriation Bonds), Series 2004-A, 5.75% 2027 6,000 6,754 .62
(put 2012)
Public Improvement Ref. G.O. Bonds, Series 2003-C, 5.00% 2018 (put 2008) 4,000 4,267 .39
Other securities 9,455 .86
20,476 1.87
South Carolina - 0.56% 6,106 .56
South Dakota - 0.54% 5,949 .54
Tennessee - 2.43%
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds 7,490 8,082 .74
Federal Express Corp.), Series 2001, 5.00% 2009
Health, Educational and Housing Fac. Board of the County of Shelby, Rev. Bonds 8,500 9,043 .82
Baptist Memorial Heath Care), Series 2004-A, 5.00% 2020 (put 2008)
Other securities 9,499 .87
26,624 2.43
Texas - 17.03%
Angelina and Neches River Auth., Pollution Control Rev. Ref. Bonds (Temple-Inland 5,350 5,631 .51
Forest Products Corp. Project), Series 1991, 5.65% 2012
Brazos River Auth., Collateralized Pollution Control Rev. Ref. Bonds (Texas
Utilities Electric Co. Project):
Series 1994-B, AMT, 5.40% 2029 (put 2006) 1,000 1,030
Series 1995-B, AMT, 5.05% 2030 (put 2006) 4,465 4,590
Brazos River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), 4,550 4,922 .96
Series 2001-C, AMT, 5.75% 2036 (put 2011)
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs. Rev. 6,450 6,862 .63
Bonds (Dow Chemical Co. Project), Series 2002-A4, AMT, 5.20% 2033 (put 2008)
Gulf Coast Waste Disposal Auth., Solid Waste Disposal Rev. Bonds (Waste Management 1,000 1,000 .09
of Texas, Inc. Denton County Project), Series 2003-B, AMT, 3.50% 2028 (put 2007)
Harris County, Permanent Improvement and Ref. Bonds, Series 2002, 5.00% 2010 4,645 5,120 .47
North Texas Tollway Auth., Dallas North Tollway System, Series 2003, AMBAC insured, 4,000 4,293 .40
5.00% 2038 (put 2008)
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), 2,000 2,179 .20
Series 2001-A, 5.50% 2022 (put 2011)
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds, Series 4,740 5,266 .48
2002-A, 5.50% 2010
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds:
New Series 2002, 5.25% 2011 4,500 5,022
5.125%-5.30% 2007-2011 6,010 6,485 1.05
City of San Antonio, Hotel Occupancy Tax Subordinate Lien, Rev. Ref. Bonds, 4,000 4,281 .39
Series 2004-B, AMBAC insured, 5.00% 2034 (put 2008)
Turnpike Auth., Central Turnpike System, Second Tier Bond Anticipation Notes, 10,500 11,256 1.03
Series 2002, 5.00% 2008
Other securities 118,382 10.82
186,319 17.03
Virginia - 1.40%
Industrial Dev. Auth. of the County of Charles City, Tax-Exempt Adjustable Mode 2,000 2,249 .21
Solid Waste Disposal Rev. Bonds (Waste Management, Inc.), Series 2002, AMT,
6.25% 2027 (put 2012)
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, 4,345 4,770 .44
AMT, 5.00% 2011
Other securities 8,247 .75
15,266 1.40
Washington - 8.27%
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, 5,500 6,140 .56
5.25%-5.50% 2008-2012
G.O. Bonds, Series 1999-S1, 5.00% 2012 4,700 5,046 .46
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2):
Series 1997-B, 5.50% 2006 1,000 1,043
Series 1998-A, 5.00% 2005 5,250 5,312
Series 1998-A, 5.00% 2012 4,000 4,326 .98
Public Utility Dist. No. 1 of Snohomish County, Generation System Rev. Ref. Bonds, 4,000 4,482 .41
Series 2002-B, FSA insured, 5.25% 2011
Other securities 64,133 5.86
90,482 8.27
Wisconsin - 2.76% 30,255 2.76
Other states and U.S. territories - 3.41%
Virgin Islands, Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund Loan Notes), 4,765 5,083 .47
Senior Lien, Series 1998-A, 5.20% 2010
Other securities 32,162 2.94
37,245 3.41
Total bonds & notes (cost: $1,035,978,000) 1,063,175 97.16
Short-term securities - 2.98%
State of Indiana, City of Whiting, Environmental Facs. Rev. Bonds (BP Products $1,200 $1,200 .11%
North America Inc. Projects), Series 2003, AMT, 1.99% 2038 (2)
Massachusetts Bay Transportation Auth., General Transportation System Demand 10,000 10,000 .91
Obligation Bonds, Series 2000, 1.85% 2030 (2)
State of Ohio, Solid Waste Rev. Bonds (BP Exploration & Oil Inc. Project), 1,100 1,100 .10
Series 2000, AMT, 1.99% 2034 (2)
State of Ohio, Solid Waste Rev. Ref. Bonds (BP Products North America Inc. 3,085 3,085 .28
Project), Series 2001-B, AMT, 1.99% 2034 (2) (3)
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds 2,450 2,450 .23
(BP Products North America Inc. Project), Series 2002, AMT, 1.99% 2036 (2)
State of Washington, Industrial Dev. Corp. of the Port of Bellingham, 2,000 2,000 .18
Environmental Facs. Industrial Rev. Bonds (BP West Coast Products LLC Project),
Series 2002, AMT, 1.99% 2033 (2)
Other securities 12,760 1.17
TOTAL SHORT-TERM SECURITIES (cost: $32,595,000) 32,595 2.98
TOTAL INVESTMENT SECURITIES (cost: $1,068,573,000) 1,095,770 100.14
Other assets less liabilities (1,476) (0.14)
NET ASSETS $1,094,294 100.00%
"Other securities" includes all issues that are not required to be disclosed in
the summary investment portfolio.
(1) Purchased in a private placement transaction; resale may be limited to
qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities, including
those included in "Other securities" in the summary investment portfolio,
was $6,406,000, which represented 0.59% of the net assets of the fund.
(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 settling in the future.
See Notes to Financial Statements
Key to abbreviations
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Certs. 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
Ref. = Refunding
Rev. = Revenue
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at January 31, 2005 (dollars and shares in thousands, except per-share amounts)
Investment securities at market (cost: $1,068,573) $1,095,770
Cash 1,182
Receivables for:
Sales of fund's shares $4,407
Interest 12,501 16,908
1,113,860
LIABILITIES:
Payables for:
Purchases of investments 14,844
Repurchases of fund's shares 3,080
Dividends on fund's shares 781
Investment advisory services 262
Services provided by affiliates 487
Deferred Trustees' compensation 67
Other fees and expenses 45 19,566
NET ASSETS AT JANUARY 31, 2005 $1,094,294
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,071,861
Undistributed net investment income 278
Accumulated net realized loss (5,042)
Net unrealized appreciation 27,197
NET ASSETS AT JANUARY 31, 2005 $1,094,294
Shares of beneficial interest issued and outstanding - unlimited shares authorized, 70,592 total shares outstanding
Net assets Shares outstanding Net asset value per share(1)
Class A $844,645 54,487 $15.50
Class B 52,334 3,376 15.50
Class C 107,890 6,960 15.50
Class F 36,806 2,374 15.50
Class R-5 52,619 3,395 15.50
(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 $16.10.
See Notes to Financial Statements
STATEMENT OF OPERATIONS unaudited
for the six months ended January 31, 2005
Investment income:
Income:
Interest $20,869
Fees and expenses:
Investment advisory services $1,618
Distribution services 2,099
Transfer agent services 93
Administrative services 141
Reports to shareholders 47
Registration statement and prospectus 60
Postage, stationery and supplies 19
Trustees' compensation 22
Auditing and legal 12
Custodian 4
Other 46
Total expenses before waiver 4,161
Waiver of expenses 67 4,094
Net investment income 16,775
NET REALIZED GAIN AND UNREALIZED APPRECIATION ON INVESTMENTS:
Net realized gain on investments 95
Net unrealized appreciation on investments 11,085
Net realized gain and unrealized appreciation on investments 11,180
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $27,955
STATEMENT OF CHANGES IN NET ASSETS
Six months Year ended
ended January 31, July 31,
2005* 2004
OPERATIONS:
Net investment income $16,775 $32,078
Net realized gain on investments 95 399
Net unrealized appreciation on investments 11,085 7,334
Net increase in net assets
resulting from operations 27,955 39,811
DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME (16,753) (32,008)
CAPITAL SHARE TRANSACTIONS 47,729 63,598
TOTAL INCREASE IN NET ASSETS 58,931 71,401
NET ASSETS:
Beginning of period 1,035,363 963,962
End of period (including undistributed net
investment income: $278 and $256, respectively) $1,094,294 $1,035,363
*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 high 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:
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 Class 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 proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
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 bid prices, if asked prices are not available) 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 purchased within 60 days to maturity are valued at amortized
cost, which approximates market value. The value of short-term
securities purchased with greater than 60 days to maturity with 60 days
or less remaining to maturity is determined based on the market value
on the 61st day. 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 under procedures
adopted 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;
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) are allocated daily among the various
share classes based on the relative value of their settled shares.
Realized and unrealized gains and losses are allocated daily among the
various share classes based on their relative net assets.
Class-specific fees and expenses, such as distribution, administrative
and shareholder services, are charged directly to the respective share
class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends paid to
shareholders are declared daily 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 January 31, 2005, the cost of
investment securities for federal income tax purposes was $1,068,244,000.
As of January 31, 2005, the components of distributable earnings on a tax basis
were as follows (dollars in thousands):
Undistributed net investment income $798
Accumulated short-term capital losses (5,119)
Undistributed long-term capital gains 76
Gross unrealized appreciation on investment securities 29,330
Gross unrealized depreciation on investment securities (1,804)
Net unrealized appreciation on investment securities 27,526
Accumulated short-term capital losses above include capital loss carryforwards
of $390,000, $261,000, $702,000, $3,146,000 and $638,000 expiring in 2005, 2008,
2009, 2011 and 2012, respectively. The capital loss carryforwards will be used
to offset any capital gains realized by the fund in future years through the
expiration dates. The fund will not make distributions from capital gains while
capital loss carryforwards remain. During the six months ended January 31, 2005,
the fund realized, on a tax basis, a net capital gain of $94,000.
Tax-exempt income distributions paid or accrued to shareholders were as follows
(dollars in thousands):
Share class Six months ended Year ended
January 31, 2005 July 31, 2004
Class A $ 13,339 $ 25,390
Class B 672 1,359
Class C 1,306 2,691
Class F 554 973
Class R-5 882 1,595
Total $ 16,753 $ 32,008
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 0.15% on such assets in excess of $1
billion. The agreement also provides for monthly fees, accrued daily, of 3.00%
on the first $3,333,333 of the fund's monthly gross income and 2.50% on such
income in excess of $3,333,333. During the six months ended January 31, 2005,
CRMC reduced investment advisory services fees by $67,000. As a result, the fee
shown on the accompanying financial statements of $1,618,000, which was
equivalent to an annualized rate of 0.300%, was reduced to $1,551,000, or 0.288%
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 on the following page. In
some cases, the Board of Trustees has approved expense amounts lower
than plan limits. 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, 2005, unreimbursed expenses subject to reimbursement totaled
$1,697,000 for Class A.
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
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, 2005, were as follows (dollars in thousands):
Share class Distribution Transfer agent Administrative services
services services
CRMC Transfer agent
administrative services
services
Class A $1,245 $86 Not applicable Not applicable
Class B 265 7 Not applicable Not applicable
Class C 545 Included $82 $4
in
administrative
services
Class F 44 Included 26 2
in
administrative
services
Class R-5 Not applicable Included 26 1
in
administrative
services
Total $2,099 $93 $134 $7
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 of $22,000, shown on the accompanying
financial statements, includes $15,000 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):
Share class Sales(1) Reinvestments of Repurchases(1) Net increase
dividends decrease)
Amount Shares Amount Shares Amount Shares Amount Shares
Six months ended January 31, 2005
Class A $128,867 8,305 $10,418 672 $(96,614) (6,230) $42,671 2,747
Class B 3,204 206 465 30 (4,056) (261) (387) (25)
Class C 12,040 777 962 62 (13,775) (888) (773) (49)
Class F 7,762 500 415 26 (4,421) (285) 3,756 241
Class R-5 6,691 432 456 30 (4,685) (302) 2,462 160
Total net increase
(decrease) $158,564 10,220 $12,716 820 $ (123,551) (7,966) $47,729 3,074
Year ended July 31, 2004
Class A $306,758 19,782 $19,963 1,289 $ (277,216) (17,961) $49,505 3,110
Class B 10,841 701 992 64 (10,932) (707) 901 58
Class C 36,609 2,360 2,114 137 (37,982) (2,459) 741 38
Class F 19,277 1,244 722 47 (16,473) (1,066) 3,526 225
Class R-5 22,006 1,412 762 49 (13,843) (898) 8,925 563
Total net increase
(decrease) $395,491 25,499 $24,553 1,586 $ (356,446) (23,091) $63,598 3,994
(1) Includes exchanges between share classes of the fund.
5. Investment transactions and other disclosures
The fund made purchases and sales of investment securities, excluding short-term
securities, of $103,416,000 and $27,652,000, respectively, during the six months
ended January 31, 2005.
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, 2005, the custodian fee of $4,000, shown on the
accompanying financial statements, includes $2,000 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 1/31/2005(5) $15.33 $.25 $.17 $.42
Year ended 7/31/2004 15.17 .51 .16 .67
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
CLASS B:
Six months ended 1/31/2005(5) 15.33 .20 .17 .37
Year ended 7/31/2004 15.17 .40 .16 .56
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 1/31/2005(5) 15.33 .19 .17 .36
Year ended 7/31/2004 15.17 .38 .16 .54
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 1/31/2005(5) 15.33 .25 .17 .42
Year ended 7/31/2004 15.17 .49 .16 .65
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 1/31/2005(5) 15.33 .27 .17 .44
Year ended 7/31/2004 15.17 .54 .16 .70
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
(from net Net asset Net assets,
investment value, end Total end of period
income) of period return(3) (in millions)
Class A:
Six months ended 1/31/2005(5) $(.25) $15.50 2.76% $845
Year ended 7/31/2004 (.51) 15.33 4.40 793
Year ended 7/31/2003 (.52) 15.17 2.71 738
Year ended 7/31/2002 (.58) 15.28 5.32 497
Year ended 7/31/2001 (.62) 15.08 8.99 306
Year ended 7/31/2000 (.62) 14.43 3.09 258
CLASS B:
Six months ended 1/31/2005(5) (.20) 15.50 2.41 52
Year ended 7/31/2004 (.40) 15.33 3.69 52
Year ended 7/31/2003 (.42) 15.17 1.98 51
Year ended 7/31/2002 (.47) 15.28 4.52 17
Year ended 7/31/2001 (.52) 15.08 8.24 2
Period from 3/15/2000 to 7/31/2000 (.21) 14.43 2.59 1
CLASS C:
Six months ended 1/31/2005(5) (.19) 15.50 2.34 108
Year ended 7/31/2004 (.38) 15.33 3.55 107
Year ended 7/31/2003 (.40) 15.17 1.86 106
Year ended 7/31/2002 (.45) 15.28 4.38 49
Period from 3/15/2001 to 7/31/2001(5) (.16) 15.08 2.14 4
CLASS F:
Six months ended 1/31/2005 (.25) 15.50 2.72 37
Year ended 7/31/2004 (.49) 15.33 4.32 33
Year ended 7/31/2003 (.51) 15.17 2.61 29
Year ended 7/31/2002 (.55) 15.28 5.11 13
Period from 3/15/2001 to 7/31/2001(5) (.19) 15.08 2.34 2
CLASS R-5:
Six months ended 1/31/2005(5) (.27) 15.50 2.87 52
Year ended 7/31/2004 (.54) 15.33 4.63 50
Year ended 7/31/2003 (.56) 15.17 2.93 40
Period from 7/15/2002 to 7/31/2002 (.02) 15.28 .23 27
Ratio of expenses Ratio of expenses
to average to average Ratio of
net assets net assets net income
before after to average
waivers waivers (4) net assets
CLASS A:
Six months ended 1/31/2005(5) .66% (6) .65% (6) 3.22% (6)
Year ended 7/31/2004 .68 .66 3.27
Year ended 7/31/2003 .71 .66 3.37
Year ended 7/31/2002 .75 .70 3.86
Year ended 7/31/2001 .80 .75 4.18
Year ended 7/31/2000 .81 .75 4.33
CLASS B:
Six months ended 1/31/2005(5) 1.38 (6) 1.36 (6) 2.51 (6)
Year ended 7/31/2004 1.38 1.37 2.57
Year ended 7/31/2003 1.40 1.35 2.63
Year ended 7/31/2002 1.45 1.40 3.06
Year ended 7/31/2001 1.60 1.59 3.24
Period from 3/15/2000 to 7/31/2000 .71 .61 1.23
CLASS C:
Six months ended 1/31/2005(5) 1.51 (6) 1.50 (6) 2.38 (6)
Year ended 7/31/2004 1.51 1.50 2.43
Year ended 7/31/2003 1.54 1.49 2.51
Year ended 7/31/2002 1.58 1.52 2.92
Period from 3/15/2001 to 7/31/2001 .75 .75 1.05
CLASS F:
Six months ended 1/31/2005(5) .75 (6) .74 (6) 3.12 (6)
Year ended 7/31/2004 .76 .75 3.17
Year ended 7/31/2003 .79 .74 3.27
Year ended 7/31/2002 .87 .82 3.69
Period from 3/15/2001 to 7/31/2001 .60 .60 1.18
CLASS R-5:
Six months ended 1/31/2005(5) .44 (6) .43 (6) 3.44 (6)
Year ended 7/31/2004 .46 .44 3.49
Year ended 7/31/2003 .49 .44 3.61
Period from 7/15/2002 to 7/31/2002 .02 .02 .16
Six months ended
January 31, Year ended July 31
2005(5) 2004 2003 2002 2001 2000
Portfolio turnover rate for all classes of shares 3% 10% 10% 9% 21% 34%
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Based on average shares outstanding
(3) Total returns exclude all sales charges, including contingent deferred
sales charges.
(4) The ratios in this column reflect the impact, if any, of certain waivers
from CRMC. During the periods shown, CRMC reduced fees for investment
advisory services for all share classes.
(5) Unaudited.
(6) Annualized.
See Notes to Financial Statements
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (August
1, 2004 through January 31, 2005).
ACTUAL EXPENSES:
The first line of each share class in the table on the next page provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses paid during period" to estimate the expenses you paid on your account
during this period. There are some account fees that are charged to certain
types of accounts, such as Individual Retirement Accounts (generally, a $10 fee
is charged to set up the account and an additional $10 fee is charged to the
account annually) that would increase the amount of expenses paid on your
account. In addition, retirement plan participants may be subject to certain
fees charged by the plan sponsor, and Class F shareholders may be subject to
fees charged by financial intermediaries, typically ranging from 0.50% to 3.00%
of assets annually depending on services offered. You can estimate the impact of
these fees by adding the amount of the fees to the total estimated expenses you
paid on your account during the period as calculated above. In addition, your
ending account value would also be lower by the amount of these fees.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table on the next page provides
information about hypothetical account values and hypothetical expenses based on
the actual expense ratio for the share class and an assumed rate of return of
5.00% per year before expenses, which is not the actual return of the share
class. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the fund and
other funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor,
and Class F shareholders may be subject to fees charged by financial
intermediaries, typically ranging from 0.50% to 3.00% of assets annually
depending on services offered. You can estimate the impact of these fees by
adding the amount of the fees to the total estimated expenses you paid on your
account during the period as calculated above. In addition, your ending account
value would also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning Ending Expense Annualized
account account paid expense
value value during ratio
8/1/2004 1/31/2005 period(1)
Class A -- actual return $1,000.00 $1,027.62 $3.32 .65%
Class A -- assumed 5% return 1,000.00 1,021.93 3.31 .65
Class B -- actual return 1,000.00 1,024.05 6.94 1.36
Class B -- assumed 5% return 1,000.00 1,018.35 6.92 1.36
Class C -- actual return 1,000.00 1,023.40 7.65 1.50
Class C -- assumed 5% return 1,000.00 1,017.64 7.63 1.50
Class F -- actual return 1,000.00 1,027.17 3.78 .74
Class F -- assumed 5% return 1,000.00 1,021.48 3.77 .74
Class R-5 -- actual return 1,000.00 1,028.72 2.20 .43
Class R-5 -- assumed 5% return 1,000.00 1,023.04 2.19 .43
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (184), and divided by 365 (to reflect the one-half year period).
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 REGISTERED PUBLIC ACCOUNTING FIRM
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 and
is eliminated for purchases of $1 million 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 0.71 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 0.85 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 0.09 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 AMERICAN FUNDS. THIS AND OTHER IMPORTANT INFORMATION IS
CONTAINED IN THE FUND'S PROSPECTUS, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL
ADVISER AND SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO CALL
AMERICAN FUNDS SERVICE COMPANY (AFS) AT 800/421-0180 OR VISIT THE AMERICAN FUNDS
WEBSITE AT AMERICANFUNDS.COM.
"AMERICAN FUNDS PROXY VOTING GUIDELINES" -- WHICH DESCRIBES HOW WE VOTE PROXIES
RELATING TO PORTFOLIO SECURITIES -- IS AVAILABLE FREE OF CHARGE ON THE U.S.
SECURITIES AND EXCHANGE COMMISSION (SEC) WEBSITE AT WWW.SEC.GOV, ON THE AMERICAN
FUNDS WEBSITE OR UPON REQUEST BY CALLING AFS. THE FUND'S PROXY VOTING RECORD FOR
THE 12 MONTHS ENDED JUNE 30, 2004, IS ALSO AVAILABLE ON THE SEC AND AMERICAN
FUNDS WEBSITES.
A complete January 31, 2005, portfolio of Limited Term Tax-Exempt Bond Fund of
America's investments is available free of charge on the SEC website or upon
request by calling AFS.
Limited Term Tax-Exempt Bond Fund of America files a complete list of its
portfolio holdings with the SEC for the first and third quarters of each fiscal
year on Form N-Q. Forms N-Q are available free of charge on the SEC website or
upon request by calling AFS. You may also review or, for a fee, copy the forms
at the SEC's Public Reference Room in Washington, D.C. (800/SEC-0330).
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, 2005, 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 30 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. More than half 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 FundSM
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
American Mutual Fund(R)
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America(R)
Washington Mutual Investors FundSM
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 TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities FundSM
o TAX-EXEMPT BOND FUNDS
American High-Income Municipal Bond Fund(R)
> Limited Term Tax-Exempt Bond Fund of AmericaSM
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-943-0305P
Litho in USA WG/CG/8089-S1941
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 - Schedule of Investments
[logo - American Funds (r)]
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
INVESTMENT PORTFOLIO
January 31, 2005 unaudited
Principal amount Market value
Bonds & notes -- 97.16% (000) (000)
ALABAMA -- 0.43%
21st Century Auth., Tobacco Settlement Asset-backed Rev. Bonds, Series 2001, 5.25% 2006 $1,000 $ 1,031
Industrial Dev. Board of the City of Butler, Pollution Control Rev. Ref. Bonds (James River Project),
Series 1993, 5.50% 2005 1,000 1,011
Industrial Dev. Board of the City of Selma, Environmental Improvement Rev. Ref. Bonds (International
Paper Co. Projects), Series 2003-A, 4.75% 2011 2,500 2,634
4,676
ALASKA -- 1.54%
Industrial Dev. and Export Auth., Revolving Fund Ref. Bonds, Series 2002-A, AMT, MBIA insured, 5.50% 2009 1,685 1,842
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2000, 5.60% 2010 1,000 1,047
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2001, 4.75% 2015 2,250 2,230
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2001, 5.375% 2021 6,365 6,143
Student Loan Corp., Capital Project Rev. Bonds, Series 2004-A, MBIA insured, 4.00% 2011 1,000 1,036
Student Loan Corp., Educational Loan Rev. Bonds, Series 2004-A3, AMT, 5.25% 2011 2,000 2,181
Student Loan Corp., Student Loan Rev. Bonds, Series 2000-A, AMT, AMBAC insured, 5.65% 2010 2,140 2,376
16,855
ARIZONA -- 0.97%
Industrial Dev. Auth. of the County of Maricopa, Health Fac. Rev. Bonds (Catholic Healthcare West
Project), Series 1998-A, 4.30% 2005 1,950 1,964
Industrial Dev. Auth. of the County of Mohave, Correctional Facs. Contract Rev. Bonds
(Mohave Prison, LLC Project), Series 2004-A, XLCA insured, 5.00% 2011 1,345 1,470
Industrial Dev. Auth. of the County of Yavapai, Solid Waste Disposal Rev. Bonds
(Waste Management, Inc. Project), Series 2003-A2, AMT, 4.45% 2028 (put 2008) 3,750 3,836
Water Infrastructure Fin. Auth., Water Quality Rev. Ref. Bonds, Series 2004-A, 5.00% 2012 3,000 3,350
10,620
CALIFORNIA -- 5.25%
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 2,700 2,889
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Bonds
(San Diego Hospital Association), Series 2001-A, 5.25% 2006 1,025 1,059
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(American Baptist Homes of the West Facs. Project), Series 1997-A, 5.25% 2007 435 448
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(American Baptist Homes of the West Facs. Project), Series 1997-A, 5.50% 2007 510 529
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 4.80% 2006 2,000 2,046
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.00% 2007 1,405 1,462
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.00% 2008 $2,455 $ 2,569
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.125% 2013 1,000 1,039
Association of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Southern California Presbyterian
Homes Obligated Group, Rev. Bonds, (Redwood Senior Homes and Services), Series 2002, 5.50% 2012 1,695 1,817
Econ. Recovery Bonds, Series 2004-B4, 5.00% 2023 (put 2008) 500 536
G.O. Bonds 5.25% 2006 2,000 2,061
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West Project), Series 2004-H, 4.45%
2026 (put 2011) 1,000 1,029
Statewide Communities Dev. Auth., Certs. of Part. (Catholic Healthcare West Project),
Series 1999-A, 6.00% 2009 620 669
Joint Powers Health Fncg. Auth., Certs. of Part. (Community Hospitals of Central California Project),
Series 2001, 4.75%2007 1,005 1,033
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium of the Pacific Project),
Series 1995-A, 5.75% 2005 (escrowed to maturity) 1,290 1,310
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project),
Series 2003-A, AMT, 5.00% 2038 (put 2013) 2,000 2,084
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 4,508
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project),
Series 2002-A, AMT, 3.125% 2022 (put 2006) 2,000 1,993
Public Works Board, Lease Rev. Bonds (Dept. of Corrections, State Prison, Kern County at Delano II),
Series 2003-C, 5.00% 2011 1,350 1,479
Public Works Board, Lease Rev. Ref. Bonds (Dept. of Corrections, State Prison-Lassen County, Susanville),
Series 2004-E, 3.00% 2006 1,000 1,007
Public Works Board, Lease Rev. Bonds (Dept. of Mental Health-Coalinga State Hospital),
Series 2004-A, 5.00% 2011 1,000 1,096
San Diego Unified Port Dist., Rev. Bonds, Series A, AMT, MBIA insured, 5.00% 2009 1,000 1,083
San Diego Unified Port Dist., Rev. Bonds, Series A, AMT, MBIA insured, 5.00% 2011 1,420 1,555
Statewide Communities Dev. Auth., Apartment Dev. Rev. Ref. Bonds (Irvine Apartment Communities, LP),
Series 1998-A1, AMT, 5.05% 2025 (put 2008) 4,000 4,183
Statewide Communities Dev. Auth., Multi-family Housing Rev. Ref. Bonds (Equity Residential/Parkview
Terrace Club Apartments), Issue 1999-B, 5.20% 2029 (put 2009) 1,150 1,232
Statewide Communities Dev. Auth., Multi-family Housing Rev. Ref. Bonds (Equity Residential/Skylark
Apartments), Issue 1999-D, 5.20% 2029 (put 2009) 1,500 1,607
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2002-D, 4.35% 2036 (put 2007) 220 226
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2004-I, 3.45% 2035 (put 2011) 1,000 990
City of Torrance, Hospital Rev. Bonds (Torrance Memorial Medical Center), Series 2001-A, 4.70% 2009 1,010 1,070
City of Torrance, Hospital Rev. Bonds (Torrance Memorial Medical Center), Series 2001-A, 4.80% 2010 940 1,004
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, 5.50% 2008 2,000 2,167
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, 5.50% 2010 1,000 1,113
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, FSA insured, 5.25% 2012 1,000 1,132
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, MBIA insured, 5.25% 2010 6,650 7,410
57,435
COLORADO -- 2.63%
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2001-A, AMT, FGIC insured, 5.50% 2008 2,340 2,546
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2002-E, AMT, FGIC insured, 5.00% 2010 2,000 2,168
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2002-E, AMT, FGIC insured, 5.00% 2011 2,000 2,174
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2002-E, AMT, FGIC insured, 5.00% 2012 1,500 1,630
Denver Convention Center Hotel Auth., Rev. Bonds, Series 2003-A, XLCA insured, 5.00% 2012 4,000 4,417
EagleBend Affordable Housing Corp., Rev. Ref. Bonds (Multi-family Housing Project) ,
Series 1997-A, 5.75% 2007 1,385 1,399
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 1998-A, 5.375% 2010 2,145 2,301
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2001, 5.375% 2010 2,000 2,209
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2002-A, 5.00% 2010 1,500 1,622
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2002-A, 5.00% 2012 1,000 1,088
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2002-B, 5.25% 2011 1,450 1,534
Health Facs. Auth., Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project),
Series 2002, 5.00% 2010 1,000 1,068
Health Facs. Auth., Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project),
Series 2002, 5.00% 2011 1,100 1,172
Health Facs. Auth., Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project),
Series 2004-B, 3.75% 2034 (put 2009) 1,200 1,201
Housing and Fin. Auth., Single-family Program Senior and Subordinate Bonds, Series 1998-D3, 6.125% 2023 1,145 1,156
Housing and Fin. Auth., Single-family Program Senior Bonds, Series 1995-C2, 5.625% 2009 25 25
University of Colorado Hospital Auth., Hospital Rev. Ref. Bonds, Series 1997-A, AMBAC insured, 5.50% 2007 1,000 1,075
28,785
CONNECTICUT -- 0.88%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1996-A, 6.40% 20111 4,000 4,249
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1997-B, 5.55% 20081 1,000 1,086
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1997-B, 5.70% 20121 1,000 1,071
Mohegan Tribe of Indians, Gaming Auth. Priority Distribution Payment, Public Improvement Bonds,
Series 2001, 5.375% 2011 3,000 3,189
9,595
DELAWARE -- 0.20%
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 2,166
DISTRICT OF COLUMBIA -- 1.45%
Certs. of Part., Lease Rev. Bonds, Series 2002, AMBAC insured, 5.25% 2010 1,000 1,095
Certs. of Part., Lease Rev. Bonds, Series 2002, AMBAC insured, 5.25% 2013 2,000 2,212
Friendship Public Charter School, Inc. Issue Rev. Bonds, Series 2003, ACA insured, 5.00% 2012 1,000 1,067
G.O. Ref. Bonds, Series 1993-B2, FSA insured, 5.50% 2010 2,500 2,786
G.O. Ref. Bonds, Series 1999, FSA insured, 5.50% 2009 695 769
G.O. Ref. Bonds, Series 1999, FSA insured, 5.50% 2009 (escrowed to maturity) 195 216
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1997-A,
MBIA insured, 6.00% 2006 (escrowed to maturity) 1,000 1,054
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1997-A,
MBIA insured, 6.00% 2007 (escrowed to maturity) 1,250 1,355
MedStar Health, Inc. Issue, Multimodal Rev. Bonds (Georgetown University Hospital and Washington
Hospital Center Projects), Series 2001-B, 6.625% 2031 (preref. 2005) 2,000 2,004
Tax Increment Rev. Bonds (Gallery Place Project), Series 2002, FSA insured, 5.25% 2009 1,570 1,720
Tax Increment Rev. Bonds (Gallery Place Project), Series 2002, FSA insured, 5.25% 2010 1,400 1,550
15,828
FLORIDA -- 4.24%
Broward County Resource Recovery Rev. Ref. Bonds (Wheelabrator North Broward Inc. Project),
Series 2001-A, 5.50% 2008 1,000 1,090
Dade County, Resource Recovery Fac. Rev. Ref. Bonds, Series 1996, AMT, AMBAC insured, 6.00% 2006 3,500 3,693
Escambia County Health Facs. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2003-A,
5.25% 2012 1,535 1,702
Highlands County Health Facs. Auth., Hospital Rev. Bonds (Adventist Health System/Sunbelt
Obligated Group), Series 2002-B, 5.00% 2010 2,000 2,162
Hillsborough County Aviation Auth., Tampa International Airport Rev. Bonds, Series 2003-A, AMT,
MBIA insured, 5.25% 2012 1,500 1,660
Hillsborough County Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa General Hospital Project),
Series 2003-A, 5.00% 2010 2,905 3,127
Hillsborough County Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa General Hospital Project),
Series 2003-A, 5.00% 2012 2,195 2,364
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 $ 2,221
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group,
Shell Point Village
Project), Series 1999-A, 5.25% 2007 1,250 1,311
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group,
Shell Point Village Project), Series 1999-A, 5.50% 2008 1,000 1,063
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group,
Shell Point Village Project), Series 1999-A, 5.50% 2010 1,200 1,284
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group,
Shell Point Village Project), Series 1999-A, 5.75% 2012 1,800 1,921
Lee County, Solid Waste System Rev. Ref. Bonds, Series 2001, AMT, MBIA insured, 5.25% 2009 3,000 3,273
Lee County, Solid Waste System Rev. Ref. Bonds, Series 2001, AMT, MBIA insured, 5.25% 2010 2,000 2,197
Miami-Dade County Industrial Dev. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project),
Series 2004, AMT, 4.00% 2018 (put 2009) 1,000 1,006
School Board of Miami-Dade County, Certs. of Part., Series 2003-B, MBIA insured, 5.00% 2031 (put 2011) 2,915 3,174
School Board of Miami-Dade County, Certs. of Part., Series 2003-C, MBIA insured, 5.00% 2027 (put 2008) 5,175 5,554
Palm Beach County, Public Improvement Ref. Rev. Bonds (Convention Center Project), Series 2004,
FGIC insured, 5.00% 2030 (put 2011) 4,650 5,072
St. Johns River Power Park System (JEA), Rev. Ref. Bonds, Issue Two, Series Eighteen, 5.00% 2009 1,000 1,093
Village Community Dev. Dist. No. 5 (Sumter County), Special Assessment Rev. Bonds,
Series 2003-B, 5.00% 2008 1,435 1,445
46,412
GEORGIA -- 0.30%
City of Atlanta, Water and Wastewater Rev. Bonds, Series 2004, FSA insured, 5.00% 2012 2,000 2,226
Housing Auth. of the County of DeKalb, Multi-family Housing Rev. Ref. Bonds (Park at Briarcliff
Apartments Project), Series 1998-A, 4.55% 2028 (put 2008) 995 1,036
3,262
HAWAII -- 0.09%
Certs. of Part. (Kapolei State Office Building), Series 1998-A, AMBAC insured, 5.00% 2005 1,000 1,007
IDAHO -- 0.61%
Housing and Fin. Association, Single-family Mortgage Bonds, Series 1998-C2, AMT, FHA insured, 5.25% 2011 240 243
Housing and Fin. Association, Single-family Mortgage Bonds, Series 1998-E3, AMT, 5.125% 2011 330 334
Housing and Fin. Association, Single-family Mortgage Bonds, Series 1998-H, AMT, 4.65% 2012 625 627
Housing and Fin. Association, Single-family Mortgage Bonds, Series 1998-I2, AMT, 4.70% 2012 310 313
Housing and Fin. Association, Single-family Mortgage Bonds, Series 2001-E, Class III, AMT, 5.40% 2021 855 891
Housing and Fin. Association, Single-family Mortgage Bonds, Series 2002-F, Class III, AMT, 4.875% 2023 2,135 2,150
Housing and Fin. Association, Single-family Mortgage Bonds, Series 2003-C, Class III, AMT, 4.50% 2023 1,080 1,067
Housing and Fin. Association, Single-family Mortgage Bonds, Series 2003-E, Class III, AMT, 5.15% 2023 1,000 1,039
6,664
ILLINOIS -- 5.95%
Chicago Board of Education, Unlimited Tax G.O. Bonds (Dedicated Revenues), Series 2001-C,
FSA insured, 5.25% 2010 1,000 1,115
City of Chicago, O'Hare International Airport, General Airport Rev. Ref. Bonds, Series 2004-B,
MBIA insured, 5.00% 2007 5,000 5,228
City of Chicago, O'Hare International Airport, Passenger Fac. Charge Rev. Bonds, Series 1996-A,
AMBAC insured, 5.60% 2010 4,000 4,185
Chicago Transit Auth., Capital Grant Receipts Rev. Bonds (Federal Transit Admin. Section 5307
Formula Funds), Series 2004-B, AMBAC insured, 5.00% 2011 3,935 4,340
Metropolitan Water Reclamation Dist. of Greater Chicago, G.O. Capital Improvement Bonds,
Limited Tax Series D of December 2002, 5.00% 2010 2,700 2,975
Community College Dist. No. 502, Counties of DuPage, Cook and Will, G.O. Bonds,
Series 2003-A, 5.00% 2011 1,000 1,108
Dev. Fin. Auth., Revolving Fund Rev. Bonds, Series 2002 (Master Trust), 5.00% 2009 2,000 2,177
Dev. Fin. Auth., Revolving Fund Rev. Bonds, Series 2002 (Master Trust), 5.00% 2010 1,500 1,647
Educational Facs. Auth., Adjustable Medium Term Rev. Bonds (Field Museum of Natural History),
Series 2002, 4.05% 2036 (put 2011) 4,000 4,091
Educational Facs. Auth., Adjustable Medium Term Rev. Bonds (Northwestern University), Series 1997,
5.00% 2032 (put 2009) 2,500 2,705
Educational Facs. Auth., Student Housing Rev. Bonds, Educational Advancement Fund, Inc.
(University Center Project), Series 2002, 5.25% 2010 1,015 1,083
G.O. Bonds, Illinois FIRST, Series of December 2002, 5.25% 2010 2,000 2,230
G.O. Ref. Bonds, Illinois FIRST, Series of August 2002, 5.25% 2008 1,000 1,084
G.O. Bonds, Series of April 1998, FSA insured, 5.50% 2009 1,945 2,122
G.O. Bonds, Series of April 1998, FSA insured, 5.50% 2009 (preref. 2008) 2,055 2,254
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 1998-A, 5.25% 2005 1,615 1,640
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 1998-A, 5.00% 2006 750 776
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 2000, 5.25% 2007 1,000 1,061
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 2000, 5.30% 2008 2,000 2,154
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 2000, 6.125% 2011 1,000 1,133
Health Facs. Auth., Rev. Ref. Bonds (Advocate Health Care Network), Series 1997-A, 5.10% 2005 1,815 1,841
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 1998-A, 5.00% 2006
(escrowed to maturity) 980 1,019
Health Facs. Auth., Rev. Bonds (Centegra Health System), Series 1998, 5.50% 2007 2,480 2,628
Health Facs. Auth., Rev. Bonds (Highland Park Hospital Project), Series 1997-A,
FGIC insured, 5.50% 2005 765 782
Health Facs. Auth., Rev. Bonds (OSF Healthcare System), Series 1999, 5.25% 2005 855 872
Health Facs. Auth., Rev. Bonds (OSF Healthcare System), Series 1999, 5.375% 2006 900 939
Health Facs. Auth., Rev. Bonds (OSF Healthcare System), Series 1999, 5.50% 2008 1,000 1,080
Health Facs. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2004, 5.00% 2007 3,000 3,176
Health Facs. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2004, 5.25% 2010 2,000 2,190
Health Facs. Auth., Rev. Ref. Bonds (Northwestern Medical Faculty Foundation, Inc.),
Series 1998, MBIA insured, 5.25% 2006 1,810 1,895
Health Facs. Auth., Rev. Ref. Bonds (University of Chicago Hospitals and Health System),
Series 2003, MBIA insured, 5.00% 2008 1,000 1,073
Indian Prairie Community, Unit School Dist. No. 204, DuPage and Will Counties,
School Building Bonds (Naperville/Aurora), Series 1998, 5.25% 2011 2,275 2,467
65,070
INDIANA -- 3.28%
Boone County Hospital Association, Lease Rev. Bonds, Series 2001, FGIC insured, 5.00% 2009 1,200 1,298
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity Obligated Group, Daughters of
Charity National Health System), Series 1997-D, 5.00% 2026 (preref. 2007) 1,390 1,473
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity Obligated Group), Series 1999-D, 5.50% 2008 1,000 1,082
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity Obligated Group), Series 1999-D, 5.50% 2011 2,000 2,193
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Clarian Health Partners, Inc.), Series 1996-A,
MBIA insured, 5.25% 2008 1,000 1,068
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Methodist Hospitals, Inc.), Series 2001, 5.25% 2008 1,000 1,067
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Methodist Hospitals, Inc.), Series 2001, 5.25% 2009 2,415 2,599
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Methodist Hospitals, Inc.), Series 2001, 5.25% 2010 1,445 1,564
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Methodist Hospitals, Inc.), Series 2001, 5.25% 2011 1,525 1,657
Health Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2002-F, 5.50% 2009 1,000 1,101
Health Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2002-F, 5.50% 2010 1,000 1,112
Health Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2002-F, 5.50% 2011 1,640 1,837
State Revolving Fund Program Bonds, Series 1998-A, 5.00% 2010 3,085 3,314
State Revolving Fund Program Bonds, Series 2001-A, 5.25% 2009 1,825 1,990
State Revolving Fund Program Bonds, Series 2001-A, 5.50% 2011 1,500 1,697
Transportation Fin. Auth., Toll Road Lease Rev. Ref. Bonds, Series 1996, AMBAC insured, 5.25% 2010 4,970 5,252
Trustees of Ivy Tech State College, Student Fee Bonds, Series H, AMBAC insured, 5.00% 2011 2,000 2,187
Trustees of Ivy Tech State College, Student Fee Bonds, Series H, AMBAC insured, 5.00% 2012 1,000 1,096
Trustees of Purdue University, Certs. of Part., Series 2001-A, 5.00% 2009 1,000 1,087
Trustees of Purdue University, Certs. of Part., Series 2001-A, 5.00% 2010 1,135 1,245
35,919
IOWA -- 0.29%
Fin. Auth., Hospital Rev. Bonds (Mercy Medical Center Project), Series 1999, FSA insured, 5.30% 2009 $1,000 $ 1,097
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2011 1,000 1,036
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2014 1,000 1,021
3,154
KENTUCKY -- 0.88%
City of Ashland, Pollution Control Rev. Ref. Bonds (Ashland Inc. Project), Series 1999, 5.70% 2009 4,150 4,464
Econ. Dev. Fin. Auth., Health System Rev. Bonds (Norton Healthcare, Inc.), Series 2000-A, 6.125% 2010 3,000 3,229
Econ. Dev. Fin. Auth., Hospital System Ref. and Improvement Rev. Bonds (Appalachian Regional
Healthcare, Inc. Project), Series 1997, 5.40% 2006 1,500 1,517
Econ. Dev. Fin. Auth., Hospital System Ref. and Improvement Rev. Bonds (Appalachian Regional
Healthcare, Inc. Project), Series 1997, 5.50% 2007 465 472
9,682
LOUISIANA -- 0.70%
Jefferson Parish Hospital Service Dist. No. 2, Hospital Rev. Bonds, Series 1998, FSA insured, 5.00% 2005 1,000 1,012
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 4,688
Public Facs. Auth., Rev. Bonds (Ochsner Clinic Foundation Project), Series 2002-A,
MBIA insured, 4.00% 2005 2,000 2,010
7,710
MAINE -- 0.09%
Housing Auth., Mortgage Purchase Bonds, Series 2001-E1 (Non-AMT), 4.125% 2010 1,000 1,044
MARYLAND -- 0.85%
Anne Arundel County, Tax Increment Fncg. Bonds (Parole Town Center Project), Series 2002, 5.00% 2012 2,765 2,802
G.O. Bonds, State and Local Facs., First Series Loan of 2000, Series F, 5.50% 2008 1,000 1,098
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue),
Series 2004, 5.00% 2010 1,755 1,878
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue),
Series 2004, 5.00% 2011 1,775 1,902
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue),
Series 2004, 5.00% 2013 1,530 1,628
9,308
MASSACHUSETTS -- 2.65%
Educational Fncg. Auth., Education Loan Rev. Ref. Bonds, Issue G, Series 2000-A, AMT,
MBIA insured, 5.55% 2008 1,565 1,627
Federal Highway Grant Anticipation Notes, Series 1998-A, 5.50% 2013 1,000 1,149
G.O. Bonds, Consolidated Loan of 2001, Series B, 5.25% 2009 1,575 1,723
G.O. Bonds, Consolidated Loan of 2003, Series A, 5.25% 2013 2,000 2,248
G.O. Bonds, Consolidated Loan of 2004, Series A, 5.00% 2012 2,000 2,213
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue),
Series C, 5.00% 2007 1,550 1,636
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue),
Series E, 5.00% 2010 1,000 1,092
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue),
Series E, 5.00% 2011 1,000 1,098
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue),
Series E, 5.00% 2012 1,500 1,650
Housing Fin. Agcy., Single-family Housing Notes, Series S, AMT, 4.00% 2007 4,750 4,878
Industrial Fin. Agcy., Resource Recovery Rev. Ref. Bonds (Ogden Haverhill Project),
Series 1998-A, AMT, 5.15% 2007 1,550 1,598
Massachusetts Bay Transportation Auth., Sales Tax Bonds, Series 2004-C, 5.25% 2014 5,000 5,686
Municipal Wholesale Electric Co., Power Supply Project Rev. Bonds (Nuclear Project No. 5),
Series A, MBIA insured, 5.00% 2010 1,205 1,320
Municipal Wholesale Electric Co., Power Supply Project Rev. Bonds (Nuclear Project No. 6),
Series A, MBIA insured, 5.00% 2010 1,000 1,096
29,014
MICHIGAN -- 4.32%
Charter County of Wayne, Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport),
Series 2002-D, AMT, FGIC insured, 5.25% 2011 $3,530 $ 3,880
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. Ref. Bonds (Detroit Medical Center Obligated Group),
Series 1993-A, 6.375% 2009 1,015 1,016
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Detroit Medical Center Obligated Group),
Series 1993-B, AMBAC insured, 5.00% 2006 1,000 1,022
Hospital Fin. Auth., Hospital Rev. Bonds (Henry Ford Health System), Series 1999-A, 5.50% 2008 1,000 1,078
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Health System), Series 2003-A, 5.25% 2010 2,000 2,159
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Health System), Series 2003-A, 5.25% 2011 2,000 2,163
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Hospital), Series 1984-A,
AMBAC insured, 6.00% 2011 1,250 1,455
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Pontiac Osteopathic), Series 1994-A, 5.375% 2006 1,520 1,529
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Sinai Hospital of Greater Detroit),
Series 1995, 6.00% 2008 635 632
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Sparrow Obligated Group), Series 2001, 5.25% 2009 1,900 2,046
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Trinity Health Credit Group), Series 2000-A, 5.25% 2007 1,940 2,089
Hospital Fin. Auth., Rev. Bonds (Ascension Health Credit Group), Series 1999-B3, 5.30% 2033 (put 2006) 5,000 5,238
Hospital Fin. Auth., Rev. Bonds (Ascension Health Credit Group), Series 1999-B4, 5.375% 2033 (put 2007) 2,000 2,138
Hospital Fin. Auth., Rev. Ref. Bonds (Hackley Hospital Obligated Group), Series 1998-A, 4.90% 2007 1,140 1,176
Hospital Fin. Auth., Rev. Ref. Bonds (MidMichigan Obligated Group), Series 1997-A,
FSA insured, 5.50% 2007 2,775 2,955
Kent Hospital Fin. Auth, Rev. Bonds (Spectrum Health), Series 2001-A, 5.25% 2010 2,020 2,201
Municipal Bond Auth., Local Government Loan Program Rev. Bonds, Series 2003-C, 5.00% 2010 1,000 1,096
New Center Dev., Inc., Certs. of Part., Series 2004-A, MBIA insured, 5.00% 2031 (put 2011) 1,000 1,095
City of Saginaw Hospital Fin. Auth., Rev. Ref. Bonds (Covenant Medical Center, Inc.),
Series 2004-G, 5.00% 2011 1,395 1,511
City of Saginaw Hospital Fin. Auth., Rev. Ref. Bonds (Covenant Medical Center, Inc.),
Series 2004-G, 5.00% 2013 1,040 1,122
South Central Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002, AMBAC insured, 5.00% 2010 1,110 1,225
State Trunk Line Fund Ref. Bonds, Series 1998-A, 5.25% 2011 1,000 1,124
Strategic Fund, Solid Waste Disposal Limited Obligation Rev. Ref. Bonds (Waste Management, Inc.
Project), Series 2004, AMT, 3.00% 2013 (put 2007) 3,000 2,970
Underground Storage, Tank Financial Assurance Auth., Rev. Ref. Bonds, Series 1996-I,
AMBAC insured, 5.50% 2009 (preref. 2006) 2,150 2,254
47,269
MINNESOTA -- 0.35%
Housing and Redev. Auth. of St. Paul and Minneapolis, Health Care Fac. Rev. Bonds,
Series 2003, 5.25% 2010 1,050 1,119
Housing Fin. Agcy., Single-family Mortgage Bonds, Series 2000-H, AMT, 4.25% 2006 1,060 1,084
Minneapolis - St. Paul Metropolitan Airports Commission, AMT, AMBAC insured, 5.50% 2008 1,500 1,607
3,810
MISSOURI -- 0.88%
Health and Educational Facs. Auth., Rev. Bonds (SSM Health Care), Series 2002-A, 5.00% 2011 5,255 5,711
Industrial Dev. Auth. of the City of Lee's Summit, Health Facs. Rev. Bonds (John Knox Village),
Series 2002, 5.75% 2009 1,255 1,369
Industrial Dev. Auth. of the City of Lee's Summit, Health Facs. Rev. Bonds (John Knox Village),
Series 2002, 5.875% 2010 1,325 1,473
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport),
Series 2003-A, FSA insured, 5.25% 2012 1,000 1,113
9,666
MONTANA -- 0.67%
City of Forsyth, Pollution Control Rev. Ref. Bonds (Avista Corp. Colstrip Project),
Series 1999-B, AMT, AMBAC insured, 5.125% 2034 (put 2008) 6,825 7,295
NEBRASKA -- 0.22%
Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2002-D, AMT, 3.90% 2009 1,130 1,149
Omaha Airport Auth., Airport Facs. Rev. Ref. Bonds, Series 2001, FSA insured, 5.50% 2012 1,155 1,289
2,438
NEVADA -- 1.35%
Clark County, Pollution Control Rev. Ref. Bonds (Southern California Edison Co.),
AMT, 3.25% 2031 (put 2009) 3,000 2,971
Clark County School Dist., G.O. (Limited Tax) Ref. Bonds, Series 2002-A, FSA insured, 5.00% 2010 1,000 1,097
City of Henderson, Health Fac. Rev. Bonds (Catholic Healthcare West Project), Series 1998-A, 6.20% 2009 710 761
Highway Improvement Motor Vehicle Fuel Tax Rev. Bonds, Series December 1, 2000-A, 5.00% 2009 2,000 2,182
Housing Division, Single-family Mortgage Bonds, Series 1998-B1, 5.20% 2011 365 374
City of Las Vegas, Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont Street Project),
Series 2003-A, 5.00% 2011 3,450 3,671
City of Las Vegas, Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont Street Project),
Series 2003-A, 4.50% 2012 3,625 3,727
14,783
NEW JERSEY -- 3.57%
Certs. of Part., Series 2004-A, 5.00% 2009 4,000 4,309
Certs. of Part., Series 2004-A, 5.00% 2010 3,500 3,798
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds (Fellowship Village Project), Series 1998-A, 5.00% 2006 1,275 1,292
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds (Fellowship Village Project), Series 1998-A, 5.05% 2007 1,375 1,412
Econ. Dev. Auth., School Facs. Construction Bonds, Series 2004-G, 4.00% 2010 3,000 3,143
Educational Facs. Auth., Rider University Issue Rev. Bonds, Series 2002-A, RADIAN insured, 5.25% 2012 1,795 1,975
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2003, 4.375% 2019 1,000 1,001
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2003, 6.125% 2024 7,000 7,008
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014 8,000 9,028
Transportation Trust Fund Auth., Transportation System Bonds, Series 2003-C, 5.00% 2008 2,000 2,142
Transportation Trust Fund Auth., Transportation System Bonds, Series 2003-C, 5.00% 2009 2,000 2,166
Transportation Trust Fund Auth., Transportation System Bonds, Series 2003-C, 5.00% 2010 1,600 1,748
39,022
NEW MEXICO -- 0.53%
Supplemental Severance Tax Bonds, Series 2002-A, 5.00% 2009 3,500 3,695
Supplemental Severance Tax Bonds, Series 2002-A, 5.00% 2010 2,000 2,111
5,806
NEW YORK -- 8.97%
Castle Rest Residential Health Care Fac., Mortgage Rev. Bonds, Series 1997-A, FHA insured, 4.875% 2007 540 542
Dormitory Auth., Lease Rev. Bonds (State University Educational Facs. Issue), Series 2003, XLCA insured,
5.25% 2032 (put 2013) 2,000 2,216
Dormitory Auth., Mental Health Services Facs. Improvement Rev. Bonds, Series 1997-B, 6.00% 2007 990 1,055
Dormitory Auth., Mental Health Services Facs. Improvement Rev. Bonds, Series 1997-B, 6.00% 2007
(escrowed to maturity) 10 11
Dormitory Auth., Rev. Bonds (Center for Nursing and Rehabilitation, Inc.), Series 1997,
FHA insured, 4.75% 2007 55 55
Dormitory Auth., Secured Hospital Rev. Bonds (Saint Agnes Hospital), Series 1998-A, 4.80% 2006 1,000 1,001
Dormitory Auth., Secured Hospital Rev. Ref. Bonds (Wyckoff Heights Medical Center),
Series 1998-H, 5.125% 2008 1,000 1,067
Dormitory Auth., State Personal Income Tax Rev. Bonds (Econ. Dev. and Housing),
Series 2003-A, 5.00% 2012 3,500 3,886
Dormitory Auth., Third General Resolution Rev. Bonds (State University Educational Facs. Issue),
Series 2002-B, 5.25% 2023 (put 2012) 9,125 10,077
Housing Fin. Agcy., Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A, 6.00% 2006 5,450 5,738
Housing Fin. Agcy., Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A, 6.00% 2007 1,000 1,055
Local Government Assistance Corp. (A Public Benefit Corp.), Subordinate Lien Ref. Bonds,
Series 2003-A2, 5.00% 2010 1,500 1,643
Long Island Power Auth., Electric System General Rev. Bonds, Series 2003-B, 5.00% 2006 2,000 2,086
Long Island Power Auth., Electric System General Rev. Bonds, Series 2003-B, 5.00% 2008 1,615 1,723
Long Island Power Auth., Electric System General Rev. Bonds, Series 2003-B, 5.00% 2010 3,000 3,250
Long Island Power Auth., Electric System General Rev. Bonds, Series 2003-B, 5.00% 2011 2,000 2,177
Metropolitan Transportation Auth., State Service Contract Ref. Bonds, Series 2002-A, 5.00% 2012 1,000 1,099
City of New York, G.O. Bonds, Fiscal 1997 Series L, 5.625% 2007 1,000 1,070
City of New York, G.O. Bonds, Fiscal 2001 Series B, 4.90% 2009 1,000 1,077
City of New York, G.O. Bonds, Fiscal 2001 Series B, 5.50% 2010 1,000 1,110
City of New York, G.O. Bonds, Fiscal 2001 Series D, 5.50% 2009 1,000 1,101
City of New York, G.O. Bonds, Fiscal 2001 Series F, 5.00% 2010 1,000 1,086
City of New York, G.O. Bonds, Fiscal 2003 Series A, 5.125% 2010 2,000 2,185
City of New York, G.O. Bonds, Fiscal 2003 Series G, 5.25% 2008 2,460 2,654
City of New York, G.O. Bonds, Fiscal 2004 Series I, 4.50% 2012 3,000 3,190
City of New York, G.O. Bonds, Fiscal 2005 Series H, 5.00% 2011 1,250 1,364
New York City Transitional Fin. Auth., Future Tax Secured Ref. Bonds, Series 2003-A, 5.50% 2026 7,000 7,859
Port Auth. of New York and New Jersey, Consolidated Bonds, Series 131, AMT, 5.00% 2008 4,260 4,572
Port Auth. of New York and New Jersey, Consolidated Bonds, Series 131, AMT, 5.00% 2009 4,000 4,328
Thruway Auth., Local Highway and Bridge Service Contract Bonds, Series 2002, 5.25% 2009 3,055 3,337
Thruway Auth., Local Highway and Bridge Service Contract Bonds, Series 2002, 5.25% 2010 2,000 2,209
Thruway Auth., State Personal Income Tax Rev. Bonds (Transportation), Series 2002-A, 5.25% 2010 1,500 1,662
Tobacco Settlement Fncg. Corp., Asset-backed Rev. Bonds, Series 2003-B1, 5.00% 2008 2,000 2,146
Tobacco Settlement Fncg. Corp., Asset-backed Rev. Bonds, Series 2003-B1, 5.00% 2009 2,000 2,162
Tobacco Settlement Fncg. Corp., Asset-backed Rev. Bonds, Series 2003-B1, 5.00% 2010 2,000 2,181
Triborough Bridge and Tunnel Auth., General Rev. Ref. Bonds, Series 2002-B, 5.00% 2009 2,000 2,184
Triborough Bridge and Tunnel Auth., General Rev. Ref. Bonds, Series 2002-B, 5.00% 2010 3,000 3,304
City University of New York, Certs. of Part. (John Jay College of Criminal Justice Project), 6.00% 2006 1,500 1,578
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 4,328
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds (Empire State Dev. Corp.),
Series 2002-A, 5.50% 2017 (put 2011) 2,500 2,771
98,139
NORTH CAROLINA -- 3.38%
City of Charlotte, Airport Rev. Bonds, Series 1999-B, AMT, MBIA insured, 5.125% 2009 1,035 1,118
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 1993-B, 7.00% 2008 1,950 2,153
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 1993-B, 6.125% 2009 1,750 1,923
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 1993-C, 5.50% 2007 3,800 3,974
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2010 1,500 1,629
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2011 1,000 1,091
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2012 2,155 2,360
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-D, 5.375% 2010 2,000 2,161
G.O. Bonds, Certs. of Part. (Repair and Renovation Project), Series 2004-B, 5.00% 2011 1,000 1,102
Infrastructure Fin. Corp, Lease-Purchase Rev. Bonds (North Carolina Correctional Facs. Projects),
Series 2003, 4.50% 2007 2,000 2,101
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1992, MBIA insured, 6.00% 2010 3,000 3,408
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1997-A, MBIA insured, 5.125% 2011 3,750 3,999
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1999-B, 6.50% 2009 1,660 1,857
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1999-B, 6.625% 2010 2,500 2,863
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 2003-A, 5.50% 2012 2,500 2,768
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 2003-A, 5.50% 2013 2,250 2,505
37,012
OHIO -- 1.73%
Higher Educational Fac. Commission, Rev. Bonds (Kenyon College 2002 Project), 4.30% 2037 (put 2010) 2,000 2,083
Higher Educational Fac. Commission, Rev. Bonds (Kenyon College 2002 Project), 4.60% 2037 (put 2012) 2,000 2,107
County of Knox, Hospital Facs. Rev. Ref. Bonds (Knox Community Hospital), Series 1998,
ASSET GUARANTY insured, RADIAN insured, 4.70% 2008 1,155 1,219
County of Lorain, Hospital Facs. Rev. Bonds (Catholic Healthcare Partners), Series 2002-A, 5.00% 2010 1,945 2,086
County of Lorain, Hospital Facs. Rev. Bonds (Catholic Healthcare Partners), Series 2002-A, 5.50% 2011 2,040 2,254
County of Lorain, Hospital Facs. Rev. Bonds (Catholic Healthcare Partners), Series 2002-A, 5.50% 2012 2,150 2,387
County of Lorain, Hospital Facs. Rev. Ref. and Improvement Bonds (Catholic Healthcare Partners),
Series 2001-A, 5.25% 2009 1,170 1,267
County of Lorain, Hospital Facs. Rev. Ref. and Improvement Bonds (Catholic Healthcare Partners),
Series 2001-A, 5.25% 2010 2,275 2,480
County of Montgomery, Rev. Bonds (Catholic Health Initiatives), Series 2001, 4.00% 2005 2,000 2,021
Student Loan Funding Corp. (Cincinnati), Student Loan Rev. Bonds, Series 1988-B3, AMT,
AMBAC insured, 5.125% 2005 1,000 1,009
18,913
OKLAHOMA -- 0.13%
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 $ 1,394
OREGON -- 0.20%
Salem-Keizer School Dist. No. 24J, Marion and Polk Counties, G.O. Bonds, Series 1999,
5.25% 2010 (preref. 2009) 2,000 2,199
PENNSYLVANIA -- 1.61%
Erie County Industrial Dev. Auth., Environmental Improvement Rev. Ref. Bonds
(International Paper Co. Projects), Series 2002-A, 4.90% 2009 4,000 4,266
Higher Educational Facs. Auth., Rev. Bonds (University of Pennsylvania), Series 2005-A,
AMBAC insured, 5.00% 2014 2,000 2,213
Hospitals and Higher Education Facs. Auth. of Philadelphia, Health System Rev. Bonds
(Jefferson Health System), Series 1997-A, 5.50% 2006 2,045 2,118
Hospitals and Higher Education Facs. Auth. of Philadelphia, Health System Rev. Bonds
(Jefferson Health System), Series 1997-A, 5.50% 2008 1,000 1,075
Housing Fin. Agcy., Single-family Mortgage Rev. Bonds, Series 2002-74, AMT, 4.25% 2012 910 938
Philadelphia Auth. for Industrial Dev., Airport Rev. Bonds (Philadelphia Airport System Project),
Series 1998-A, AMT, FGIC insured, 5.25% 2009 3,410 3,668
Scranton-Lackawanna Health and Welfare Auth., Hospital Rev. Ref. Bonds (Community
Medical Center Project), MBIA insured, 5.25% 2005 1,250 1,266
Westmoreland County Industrial Dev. Auth., Rev. Bonds (National Waste and Energy Corp.; Valley
Landfill Expansion Project), Series 1993, AMT, 5.10% 2018 (put 2009) 2,000 2,107
17,651
PUERTO RICO -- 1.87%
Children's Trust Fund, Tobacco Settlement Asset-backed Bonds, Series 2000, 5.75% 2020 (preref. 2010) 3,635 3,918
G.O. Bonds, Series D, FSA insured, 5.00% 2021 (put 2008) 1,000 1,076
Public Buildings Auth., Government Facs. Rev. Bonds, Series D, 5.25% 2036 (preref. 2012) 3,000 3,345
Public Fin. Corp. (Commonwealth Appropriation Bonds), Series 2004-A, 5.75% 2027 (put 2012) 6,000 6,754
Public Fin. Corp. (Commonwealth Appropriation Bonds), Series 2004-A, FGIC insured, 5.25% 2031 (put 2012) 1,000 1,116
Public Improvement Ref. G.O. Bonds, Series 2003-C, 5.00% 2018 (put 2008) 4,000 4,267
20,476
RHODE ISLAND -- 0.23%
Health and Educational Building Corp., Hospital Fncg. Rev. Bonds (Lifespan Obligated Group Issue),
Series 2002, 5.75% 2009 1,340 1,455
Health and Educational Building Corp., Hospital Fncg. Rev. Bonds (Lifespan Obligated Group Issue),
Series 2002, 5.75% 2010 1,020 1,114
2,569
SOUTH CAROLINA -- 0.56%
Georgetown County, Pollution Control Rev. Ref. Bonds (International Paper Co. Projects),
Series 1999-A, 5.125% 2012 2,500 2,674
Housing Fin. and Dev. Auth. Mortgage Rev. Bonds, Series 2000-A2, AMT, FSA insured, 5.875% 2009 890 899
Tobacco Settlement Rev. Management Auth., Tobacco Settlement Asset-backed Bonds,
Series 2001-B, 6.00% 2022 1,500 1,503
York County Pollution Control Facs., Rev. Bonds (Bowater Inc. Project), Series 1990, AMT, 7.625% 2006 1,000 1,030
6,106
SOUTH DAKOTA -- 0.54%
Education Loans Incorporated, Student Loan Asset-Backed Callable Notes, Series 1998-1, AMT, 4.95% 2010 3,500 3,718
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2001-C, 4.55% 2010 980 1,037
Housing Dev. Auth., Multiple Purpose Bonds, Series 2002-A, FSA insured, 4.15% 2009 1,150 1,194
5,949
TENNESSEE -- 2.43%
City of Memphis, Electric System Subordinate Rev. Bonds, Series 2003-A, 5.00% 2006 2,000 2,090
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds (Federal Express Corp.),
Series 2001, 5.00% 2009 7,490 8,082
Metropolitan Government of Nashville and Davidson County, G.O. Multi-Purpose Improvement Bonds,
Series 1997-A, 5.125% 2010 1,000 1,056
Health, Educational and Housing Fac. Board of the County of Shelby, Rev. Bonds (Baptist
Memorial Heath Care), Series 2004-A, 5.00% 2020 (put 2008) 8,500 9,043
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Bonds
(Wellmont Health System Project), Series 2002, 5.50% 2006 1,475 1,523
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Bonds
(Wellmont Health System Project), Series 2002, 5.75% 2007 1,555 1,640
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Ref. Bonds
(Wellmont Health System Project), Series 2003, 5.00% 2007 1,000 1,037
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Ref. Bonds
(Wellmont Health System Project), Series 2003, RADIAN insured, 5.00% 2009 2,000 2,153
26,624
TEXAS -- 17.03%
Angelina and Neches River Auth., Pollution Control Rev. Ref. Bonds (Temple-Inland Forest
Products Corp. Project), Series 1991, 5.65% 2012 5,350 5,631
City of Austin (Travis and Williamson Counties), Public Improvement Ref. Bonds, Series 2003, 5.00% 2011 1,220 1,348
City of Austin (Travis and Williamson Counties), Public Improvement Ref. Bonds, Series 2003, 5.00% 2012 1,000 1,109
City of Austin, Public Improvement Bonds, 5.75% 2011 1,500 1,675
City of Austin, Public Improvement Bonds, Series 2001, 5.00% 2010 2,000 2,203
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. Bonds (Buckner Retirement Services, Inc.
Obligated Group Project), Series 1998, 5.00% 2005 1,330 1,354
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. Bonds (Buckner Retirement Services, Inc.
Obligated Group Project), Series 1998, 5.00% 2007 1,470 1,547
Bexar County, Rev. Bonds (Tax-Exempt Venue Project), Series 2000, MBIA insured, 5.50% 2009 2,000 2,216
Brazos River Auth., Collateralized Pollution Control Rev. Ref. Bonds (Texas Utilities
Electric Co. Project), Series 1994-B, AMT, 5.40% 2029 (put 2006) 1,000 1,030
Brazos River Auth., Collateralized Pollution Control Rev. Ref. Bonds (Texas Utilities
Electric Co. Project), Series 1995-B, AMT, 5.05% 2030 (put 2006) 4,465 4,590
Brazos River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project),
Series 2001-C, AMT, 5.75% 2036 (put 2011) 4,550 4,922
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs. Rev. Bonds
(Dow Chemical Co. Project), Series 2002-A4, AMT, 5.20% 2033 (put 2008) 6,450 6,862
College Student Loan Bonds, Series 2000, AMT, 5.50% 2010 1,000 1,109
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 1,060
Cypress-Fairbanks Independent School Dist., Unlimited Tax Ref. and Schoolhouse Bonds,
Series 2001, 5.25% 2011 2,000 2,233
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), G.O. Ref. and Improvement Bonds,
Series 1998, 5.00% 2012 2,000 2,124
City of Dallas (Dallas, Denton, Collin and Rockwell Counties), Waterworks and Sewer System
Rev. Ref. Bonds, Series 1998, 5.125% 2010 1,490 1,652
City of Dallas (Dallas, Denton, Collin and Rockwell Counties), Waterworks and Sewer System Rev.
Ref. Bonds, Series 1998, 5.00% 2011 1,800 1,952
Dallas Independent School Dist. (Dallas County), Unlimited Tax Ref. Bonds (Delayed Delivery),
Series 2005, 5.25% 2010 1,000 1,097
City of Fort Worth (Tarrant and Denton Counties), General Purpose Ref. Bonds, Series 2002, 5.00% 2010 1,000 1,093
City of Fort Worth (Tarrant and Denton Counties), Water and Sewer System Rev. Ref. and
Improvement Bonds, Series 2003, 5.00% 2011 1,000 1,103
Fort Worth Independent School Dist. (Tarrant County), School Building Unlimited Tax Bonds,
Series 2001-A, 5.00% 2011 3,560 3,925
G.O. Bonds, Water Financial Assistance and Ref. Bonds, Series 2003-C, 5.00% 2011
2,205 2,441 Gulf Coast Waste Disposal Auth., Solid Waste Disposal Rev. Bonds
(Waste Management of Texas, Inc. Denton County Project),
Series 2003-B, AMT, 3.50% 2028 (put 2007) 1,000 1,000
Harris County, G.O. and Rev. Ref. Bonds, Series 2002, 5.25% 2010 1,585 1,765
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System),
Series 2004-A,
5.25% 2011 1,500 1,648
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System),
Series 2004-A,
5.25% 2012 1,750 1,924
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System),
Series 2004-A,
5.25% 2013 1,000 1,095
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Hospital System Project),
Series 1998,
FSA insured, 5.25% 2008 1,000 1,077
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hospital System Project),
Series 1997-A,
MBIA insured, 6.00% 2009 3,215 3,602
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hospital System Project),
Series 1997-A,
MBIA insured, 6.00% 2010 1,500 1,706
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2001-A, 5.50% 2010 1,705 1,860
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2001-A, 5.50% 2011 1,000 1,101
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2002, 5.00% 2009 700 742
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2002, 5.00% 2010 735 785
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2002, 5.00% 2011 770 827
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2002, 5.00% 2012 810 871
Harris County, Permanent Improvement and Ref. Bonds, Series 2002, 5.00% 2010 4,645 5,120
Harris County, Permanent Improvement and Ref. Bonds, Series 2003-B, 5.00% 2011 2,000 2,217
Harris County, Tax and Subordinate Lien Rev. Ref. Bonds, Series 2004-B,
FSA insured, 5.00% 2032 (put 2012) 2,000 2,194
City of Houston, Airport System Subordinate Lien Rev. Bonds, Series 1998-B, AMT,
FGIC insured, 5.25% 2009 2,500 2,687
City of Houston, Airport System Subordinate Lien Rev. Bonds, Series 1998-B, AMT,
FGIC insured, 5.25% 2012 2,915 3,123
City of Houston, Airport System Subordinate Lien Rev. Bonds, Series 2002-B,
FSA insured, 5.25% 2011 2,000 2,233
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 1,064
Katy Independent School Dist. (Fort Bend, Harris and Waller Counties),
Unlimited Tax School Building Bonds,
Series 2002-A, 5.25% 2011 1,000 1,116
Lower Colorado River Auth., Rev. Ref. Bonds, Series 2002, MBIA insured, 5.00% 2010 1,500 1,645
North Central Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project),
Series 2002, 5.50% 2006 3,000 3,107
North Central Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project),
Series 2002, 5.50% 2009 960 1,047
North Central Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project),
Series 2002, 5.50% 2010 1,140 1,256
North Central Health Facs. Dev. Corp., Hospital Rev. Bonds (Children's Medical Center of
Dallas Project), AMBAC insured, 5.00% 2009 1,100 1,192
North Texas Tollway Auth., Dallas North Tollway System, Series 2003, AMBAC insured,
5.00% 2038 (put 2008) 4,000 4,293
North Texas Tollway Auth., Dallas North Tollway System, Series 2003, FSA insured,
5.00% 2018 (put 2008) 1,000 1,073
City of Plano (Collin and Denton Counties), G.O. Ref. and Improvement Bonds, Series 2003,
5.00% 2010 3,300 3,635
Plano Independent School Dist. (Collin County, Texas), Unlimited Tax School Building and Ref. Bonds,
Series 2001,
5.00% 2011 1,000 1,103
Public Fin. Auth., G.O. and Ref. Bonds, Series 2003, 5.00% 2010 1,100 1,210
Public Fin. Auth., G.O. Ref. Bonds, Series 1997, 5.25% 2011 2,000 2,151
Public Fin. Auth., G.O. Ref. Bonds, Series 2002, 5.25% 2007 1,500 1,605
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project),
Series 2001-A, 5.50% 2022 (put 2011) 2,000 2,179
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002-A, 5.50% 2010 4,740 5,266
City of San Antonio, Airport System Rev. Improvement Bonds, Series 2002, AMT, FGIC insured, 5.50% 2009 1,000 1,094
City of San Antonio, Airport System Rev. Improvement Bonds, Series 2002, AMT, FGIC insured, 5.50% 2010 1,000 1,104
City of San Antonio (Bexar County), General Improvement Ref. Bonds, Series 1998, 5.00% 2009 1,985 2,110
City of San Antonio, Electric and Gas Rev. Ref. Bonds (Forward Delivery), New Series 2003, 5.25% 2011 1,000 1,116
City of San Antonio, Electric and Gas Rev. Ref. Bonds (Forward Delivery), New Series 2003-A, 5.00% 2007 1,000 1,049
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 1997, 5.30% 2011 1,555 1,651
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 2002, 5.25% 2011 4,500 5,022
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 1998-A, 5.125% 2009 2,455 2,669
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 1997, 5.30% 2011
(preref. 2007) 1,945 2,073
City of San Antonio, G.O. Forward Ref. Bonds, Series 2002, 5.00% 2009 (preref. 2008) 15 16
City of San Antonio, General Improvement Forward Ref. Bonds, Series 2002, 5.00% 2011 2,950 3,257
City of San Antonio, General Improvement Ref. Bonds, Series 2001, 5.00% 2010 2,000 2,184
City of San Antonio, General Improvement Forward Ref. Bonds, Series 2002, 5.00% 2011
(escrowed to maturity) 50 55
City of San Antonio, Hotel Occupancy Tax Subordinate Lien, Rev. Ref. Bonds, Series 2004-B,
AMBAC insured, 5.00% 2034 (put 2008) 4,000 4,281
Socorro Independent School Dist. (El Paso County), Unlimited Tax School Building Ref. Bonds,
Series 2001, 5.00% 2009 1,255 1,367
Tarrant County Health Facs. Dev. Corp., Health Resources System Rev. Bonds, Series 1997-A,
MBIA insured, 5.50% 2007 1,000 1,058
Tarrant County Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project),
Series 2002-A, 5.00% 2008 1,635 1,744
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 2,188
Board of Regents of the Texas A&M University System, Rev. Fncg. System Bonds, 5.10% 2010 2,000 2,165
Board of Regents of the Texas State University System, Rev. Fncg. System Rev. Ref. Bonds,
Series 2002, FSA insured, 5.00% 2010 1,400 1,531
Turnpike Auth., Central Turnpike System, Second Tier Bond Anticipation Notes, Series 2002, 5.00% 2008 10,500 11,256
Board of Regents of the University of Texas System, Rev. Fncg. System Bonds, Series 1996-B,
5.00% 2011 (preref. 2006) 1,000 1,059
Board of Regents of the University of Texas System, Rev. Fncg. System Bonds, Series 2001-B, 5.00% 2011 1,150 1,274
Board of Regents of the University of Texas System, Rev. Fncg. System Bonds, Series 2003-A, 5.00% 2009 1,000 1,091
Board of Regents of the University of Texas System, Rev. Fncg. System Bonds, Series 2003-B, 5.25% 2010 1,500 1,670
Board of Regents of the University of Texas System, Rev. Ref. Fncg. System Bonds, Series 2002-B,
5.25% 2012 1,000 1,128
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System), Series 2003,
MBIA insured, 5.00% 2010 2,040 2,229
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System), Series 2003,
MBIA insured, 5.00% 2011 3,715 4,083
186,319
UTAH -- 0.41%
Housing Corp., Single-family Mortgage Bonds, Series 2002-C2, Class III, AMT, 5.25% 2018 1,845 1,956
Housing Corp., Single-family Mortgage Bonds, Series 2002-D2, Class III, AMT, 5.00% 2018 910 959
Housing Corp., Single-family Mortgage Bonds, Series 2002-E2, Class III, AMT, 4.95% 2019 930 958
Housing Fin. Agcy., Single-family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans),
1998 Issue D-2, AMT, 5.25% 2012 110 112
Housing Fin. Agcy., Single-family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans),
1998 Issue E-1, AMT, 5.25% 2012 115 119
Housing Fin. Agcy., Single-family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans),
1998 Issue F-2, AMT, 4.25% 2008 335 339
4,443
VIRGIN ISLANDS -- 0.47%
Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund Loan Notes), Senior Lien, Series 1998-A, 5.20% 2010 4,765 5,083
VIRGINIA -- 1.40%
Capital Region Airport Commission, Rev. Ref. Bonds, Series 2004-A, FSA insured, 5.00% 2011 1,335 1,467
Housing Dev. Auth., Rental Housing Bonds, Series 2000-D, AMT, 5.50% 2008 1,070 1,118
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 2,249
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT, 5.00% 2010 2,000 2,186
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT, 5.00% 2011 4,345 4,770
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT, 5.00% 2012 1,000 1,100
Resources Auth., Infrastructure Rev. Bonds (Pooled Fncg. Program), Series 2004-B, AMT, 5.00% 2010 1,035 1,128
Resources Auth., Infrastructure Rev. Bonds (Pooled Fncg. Program), Series 2004-B, AMT, 5.00% 2012 1,140 1,248
15,266
WASHINGTON -- 8.27%
Clark County, Evergreen School Dist. No. 114, Unlimited Tax G.O. Bonds, Series 2002,
FSA insured, 5.00% 2011 1,000 1,109
Conservation and Renewable Energy System, Conservation Project Rev. Bonds
(Bonneville Power Administration), Series 2003, 5.00% 2010 1,240 1,361
Conservation and Renewable Energy System, Conservation Project Rev. Bonds
(Bonneville Power Administration), Series 2003, 5.00% 2011 1,000 1,103
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2003-A, 5.50% 2012 $3,500 $ 3,979
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2004-A, 5.25% 2008 2,000 2,161
Energy Northwest, Rev. Ref. Bonds (Wind Project), Series 2005, MBIA insured, 5.00% 2011 1,000 1,101
G.O. Bonds and Motor Vehicle Fuel Tax G.O. Bonds, Series A, 5.375% 2007 3,000 3,117
G.O. Bonds, Series 1999-S1, 5.00% 2012 4,700 5,046
Various Purpose G.O. Bonds, Series 1999-A, 5.25% 2010 1,000 1,076
Various Purpose G.O. Bonds, Series 2000-B, 6.00% 2010 1,130 1,282
Grays Harbor County, Public Utility Dist. No. 1, Electric Rev. Bonds, Series 2001,
AMBAC insured, 5.00% 2009 1,295 1,399
Health Care Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 1997-A,
MBIA insured, 5.10% 2010 1,000 1,069
Health Care Facs. Auth., Rev. Bonds (Virginia Mason Medical Center), Series 1997-A,
MBIA insured, 6.00% 2006 1,000 1,052
Higher Education Facs. Auth., Rev. and Rev. Ref. Bonds (Gonzaga University Project),
Series 1998, MBIA insured, 4.80% 2009 1,000 1,075
King and Snohomish Counties, Unlimited Tax G.O. Ref. Bonds (Northshore School Dist. No. 417),
FSA insured, 5.00% 2010 1,275 1,403
King and Snohomish Counties, Unlimited Tax G.O. Ref. Bonds (Northshore School Dist. No. 417),
FSA insured, 5.00% 2011 1,900 2,100
King County, Limited Tax G.O. Bonds (Baseball Stadium), Series 1997-D, 5.60% 2009 3,710 4,075
King County, Limited Tax G.O. Ref. Bonds (Baseball Stadium), Series 2002, 5.00% 2008 2,000 2,165
King County, Sewer Rev. Ref. Bonds, Series 1999-B, FSA insured, 5.25% 2010 2,000 2,204
King County, Sewer Rev. Ref. Bonds, Series 1999-B, FSA insured, 5.25% 2011 2,895 3,220
King County, Various Purpose G.O. and Ref. Bonds, Series 1996-A, 5.00% 2009 550 563
King County, Various Purpose G.O. and Ref. Bonds, Series 1996-A, 5.00% 2009 (preref. 2006) 1,950 1,999
Pierce County, Tacoma School Dist. No. 10, Unlimited Tax G.O. Bonds, Series 2003,
FGIC insured, 5.00% 2009 1,500 1,639
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2), Series 1997-B, 5.50% 2006 1,000 1,043
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2), Series 1998-A, 5.00% 2005 4,250 4,300
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2), Series 1998-A, 5.00% 2005 1,000 1,012
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2), Series 1998-A, 5.00% 2012 4,000 4,326
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 3), Series 1997-A,
FSA insured, 5.10% 2010 1,000 1,077
Public Utility Dist. No. 1 of Lewis County, Rev. Ref. Bonds (Cowlitz Falls Hydroelectric Project),
Series 2003, XLCA insured, 5.00% 2011 2,000 2,194
Public Utility Dist. No. 1 of Snohomish County, Generation System Rev. Ref. Bonds, Series 2002-B,
FSA insured, 5.25% 2009 1,000 1,103
Public Utility Dist. No. 1 of Snohomish County, Generation System Rev. Ref. Bonds, Series 2002-B,
FSA insured, 5.25% 2010 2,000 2,228
Public Utility Dist. No. 1 of Snohomish County, Generation System Rev. Ref. Bonds, Series 2002-B,
FSA insured, 5.25% 2011 4,000 4,482
Public Utility Dist. No. 2 of Grant County, Wanapum Hydroelectric Dev. Rev. and Ref. Bonds,
Series 2005-B, AMT, FGIC insured, 5.00% 2012 1,190 1,292
City of Seattle, Municipal Light and Power Improvements and Rev. Ref. Bonds, Series 2001,
FSA insured, 5.50% 2012 1,000 1,118
City of Seattle, Municipal Light and Power Rev. Bonds, Series 1997, 5.00% 2010 1,000 1,073
Port of Seattle, Passenger Fac. Charge Rev. Bonds, Series 1998-B, AMT, AMBAC insured, 5.25% 2009 1,000 1,081
Port of Seattle, Passenger Fac. Charge Rev. Bonds, Series 1998-B, AMT, AMBAC insured, 5.25% 2011 2,000 2,153
Port of Seattle, Rev. Bonds, Series 2001-B, AMT, FGIC insured, 5.50% 2009 1,605 1,753
Port of Seattle, Rev. Bonds, Series 2001-B, AMT, FGIC insured, 5.50% 2010 3,000 3,305
Port of Seattle, Special Fac. Rev. Bonds (SEATAC Fuel Facs. LLC), Series 2003, AMT,
MBIA insured, 5.00% 2012 1,510 1,636
Port of Seattle, Subordinate Lien Rev. Bonds, Series 1999-B, AMT, FGIC insured, 5.50% 2009 1,500 1,646
Snohomish County, Everett School Dist. No. 2, Unlimited Tax G.O. Ref. Bonds, Series 2003, 4.50% 2007 1,890 1,988
Snohomish County, Limited Tax G.O. Bonds, Series 2001, 5.00% 2010 3,000 3,306
City of Spokane, Regional Solid Waste Management System, Rev. Ref. Bonds, Series 2001,
AMBAC insured, 5.25% 2011 1,650 1,830
City of Tacoma, Electric System Rev. Ref. Bonds, Series 2001-A, FSA insured, 5.50% 2011 1,100 1,238
90,482
WISCONSIN -- 2.76%
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.50% 2006 1,000 1,021
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.00% 2008 1,350 1,388
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.50% 2010 750 782
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.75% 2012 3,000 3,139
G.O. Ref. Bonds, Series 1998-1, 5.50% 2010 2,210 2,494
Health and Educational Facs. Auth., Hospital Rev. Bonds (Charity Obligated Group,
Daughters of Charity National Health System), Series 1997-D, 4.90% 2015 (preref. 2005/put 2005) 2,865 2,924
Health and Educational Facs. Auth., Rev. Bonds (Froedtert & Community Health Obligated Group),
Series 2001, 5.65% 2009 1,935 2,114
Health and Educational Facs. Auth., Rev. Bonds (Gundersen Lutheran), Series 2003-A,
FSA insured, 5.00% 2009 1,500 1,612
Health and Educational Facs. Auth., Rev. Bonds (Gundersen Lutheran), Series 2003-A,
FSA insured, 5.00% 2010 1,200 1,300
Health and Educational Facs. Auth., Rev. Bonds (Hospital Sisters Services, Inc. Obligated Group),
Series 1998-B, MBIA insured, 4.85% 2011 1,195 1,264
Health and Educational Facs. Auth., Rev. Bonds (Hospital Sisters Services, Inc. Obligated Group),
Series 2003-D, FSA insured, 5.00% 2011 2,515 2,771
Health and Educational Facs. Auth., Rev. Bonds (The Monroe Clinic, Inc.), Series 1999, 4.60% 2008 1,010 1,050
Health and Educational Facs. Auth., Rev. Bonds (Wheation Franciscan Services), Series 2003-A, 5.00% 2008 1,595 1,700
Health and Educational Facs. Auth., Rev. Bonds (Wheation Franciscan Services), Series 2003-A, 5.00% 2012 2,065 2,233
Housing and Econ. Dev. Auth., Single-family Mortgage Housing Rev. Bonds, Series 2000-C,
MBIA insured, 4.35% 2009 810 842
City of Milwaukee, G.O. Corporate Purpose Bonds, Series R, 5.50% 2010 2,200 2,474
Milwaukee County, Airport Rev. Bonds, Series 2004-A, AMT, AMBAC insured, 5.00% 2011 1,055 1,147
30,255
Total bonds & notes (cost: $1,035,978,000) 1,063,175
Short-term securities -- 2.98%
State of California, Dept. of Water Resources, Power Supply Rev. Demand Bonds,
Series 2002-C15, 1.83% 2022(2) 3,775 3,775
District of Columbia, Multimodal Rev. Bonds, American National Red Cross Issue, Series 2000,
TECP, 1.92% 4/5/2005 1,000 1,000
Dev. Auth. of the Unified Government of Athens-Clarke County, Rev. Bonds
(University of Georgia Athletic Association Project), Series 2003, 1.92% 2033(2,3) 2,900 2,900
State of Indiana, City of Whiting, Environmental Facs. Rev. Bonds
(BP Products North America Inc. Projects), Series 2003, AMT, 1.99% 2038(2) 1,200 1,200
Massachusetts Bay Transportation Auth., General Transportation System Demand Obligation Bonds,
Series 2000, 1.85% 2030(2) 10,000 10,000
State of Ohio, Solid Waste Rev. Bonds (BP Exploration & Oil Inc. Project), Series 2000,
AMT, 1.99% 2034(2) 1,100 1,100
State of Ohio, Solid Waste Rev. Ref. Bonds (BP Products North America Inc. Project), Series 2001-B, AMT,
1.99% 2034(2,3) 3,085 3,085
Public Building Auth. of the City of Clarksville, Adjustable Rate Pooled Fncg. Rev. Bonds
(Tennessee Municipal Bond Fund), Series 2003, 1.92% 2033(2) 2,185 2,185
State of Tennessee, City of Memphis, G.O. Commercial Paper, TECP, 1.87% 2/4/2005 1,100 1,100
Public Building Auth. of the County of Montgomery, Adjustable Rate Pooled Fncg. Rev. Bonds
(Tennessee County Loan Pool), Series 2002, 1.92% 2032(2) 1,800 1,800
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds
(BP Products North America Inc. Project), Series 2002, AMT, 1.99% 2036(2) 2,450 2,450
State of Washington, Industrial Dev. Corp. of the Port of Bellingham, Environmental Facs.
Industrial Rev. Bonds (BP West Coast Products LLC Project), Series 2002, AMT, 1.99% 2033(2) 2,000 2,000
Total short-term securities (cost: $32,595,000) 32,595
unaudited
Market value
(000)
Total investment securities (cost: $1,068,573,000) $1,095,770
Other assets less liabilities (1,476)
Net assets $1,094,294
(1) Purchased in a private placement transaction; resale may be limited to
qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities was
$6,406,000, which represented 0.59% of the net assets of the fund.
(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 settling in the
future.
Key to abbreviations
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Certs. 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
TECP = Tax-Exempt Commercial Paper
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Registrant's Board of Trustees since the Registrant
last submitted a proxy statement to its shareholders. The procedures are as
follows. The Registrant has a 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, as amended. The committee periodically
reviews such issues as the Board's composition, responsibilities, committees,
compensation and other relevant issues, and recommends any appropriate changes
to the full Board of Trustees. While the committee normally is able to identify
from its own resources an ample number of qualified candidates, it will consider
shareholder suggestions of persons to be considered as nominees to fill future
vacancies on the Board. Such suggestions must be sent in writing to the
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 11 - Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal Financial
Officer have concluded, based on their evaluation of the Registrant's
disclosure controls and procedures (as such term is defined in Rule 30a-3
under the Investment Company Act of 1940), that such controls and
procedures are adequate and reasonably designed to achieve the purposes
described in paragraph (c) of such rule.
(b) There were no changes in the Registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the Registrant's second fiscal quarter of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control
over financial reporting.
ITEM 12 - Exhibits
(a) 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, 2005
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
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Brenda S. Ellerin, President and PEO
Date: April 8, 2005
By /s/ Sharon G. Moseley
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Sharon G. Moseley, Treasurer and PFO
Date: April 8, 2005