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: 811-21359
Exact Name of Registrant as Specified in Charter: MBIA Capital/Claymore Managed
Duration Investment Grade Municipal Fund
Address of Principal Executive Offices: 113 King Street, Armonk, NY 10504
Name and address of agent for service: Clifford D. Corso,
113 King Street, Armonk, NY 10504
Copies to: Panayiotis (Peter) S. Andreou,
113 King Street,
Armonk, NY 10504
Registrant's telephone number, including area code: (914) 273-4545
Date of fiscal year end: July 31
Date of reporting period: July 31, 2004
ITEM 1: Reports to Shareholders
Annual Report
July 31, 2004
MBIA Capital/Claymore Managed
Duration Investment Grade MZF
Municipal Fund
[LOGOS OMITTED]
NOT INSURED o NOT GUARANTEED o MAY LOSE VALUE
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Table of Contents
- --------------------------------------------------------
Shareholder Letter ............................ 1
Fund Summary .................................. 2
Portfolio of Investments ...................... 3
Statement of Assets and Liabilities ........... 10
Statement of Operations ....................... 11
Statement of Changes in Net Assets
Applicable to Common Shareholders .......... 12
Financial Highlights .......................... 13
Notes to Financial Statements ................. 14
Report of Independent Registered
Public Accounting Firm ..................... 20
Additional Information Regarding the
Fund's Trustees and Officers ............... 21
Dividend Reinvestment Plan .................... 24
Tax Information ............................... 26
Notice to Shareholders ........................ 26
Privacy Policy ................................ 27
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Dear Shareholder:
I am pleased to provide you with the Annual Report to Shareholders of MBIA
Capital/Claymore Managed Duration Investment Grade Municipal Fund (the "Fund")
for the fiscal year ended July 31, 2004.
Since the Fund began trading on August 27, 2003, the fixed income markets have
continued to be volatile. During the Fund's first fiscal year, the 10-Year U.S.
Treasury Bond recorded a low yield of 3.681% and rose as high as 4.878% in June
2004 before falling back to a yield of 4.481% on July 30, 2004. The Federal
Reserve Board increased the interest rate on Federal Funds 1/4 of a point at its
June 2004 meeting, with the stated intent to make additional increases in the
future. Oil prices increased steadily to a price of over $43 per barrel on July
30, 2004 and U.S. economic indicators often gave conflicting signals as to
where, and how fast, the economy was heading.
Amid all the tumult, we continue to believe that investment grade municipal
bonds will represent a prudent investment in the fixed income sector. Further,
the Fund was and continues to be structured using a hedging strategy to manage
duration and to attempt to minimize volatility as rates trend higher. By
utilizing both short term and longer term hedges, we have attempted to be
prepared if rates were to rise quickly or more slowly over a longer period of
time. With the Fund's continued emphasis on long-term value, managed duration
and hedging strategies, the Fund's NAV Total Return (calculated on the basis of
a beginning per share value of $14.30 - which represents the beginning NAV per
share of $14.33 less the $0.03 per share of offering costs - and a closing NAV
per share of $13.83, plus the reinvestment of dividends of $0.63 per share) was
1.11% for the period ended July 31, 2004. The Fund's market value total return
for the period ended July 31, 2004 based upon an initial offering price of
$15.00 per share and a closing market value of $13.11 per share was (8.62)%
assuming reinvestment of distributions in shares of the Fund. The Fund's current
yield as of July 31, 2004, based on the closing market price of $13.11, was
6.41%. The Fund's tax-equivalent yield as of July 31, 2004 (assuming the maximum
federal tax rate of 35%) as 9.86%.
Despite the uncertain picture over the coming months, we continue to believe in
our strategy, especially given the Federal Reserve Board's aforementioned intent
to continue a "measured" rise in short-term rates. The Fund will continue to
seek out value in the investment grade municipal sector, focusing on those bonds
which we believe will be long-term outperformers.
Sincerely,
/S/CLIFFORD D. CORSO
Clifford D. Corso
President, Chief Executive Officer
August 20, 2004
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. There is no guarantee that
the Fund's or any other investment technique will be effective under all market
conditions.
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1
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Fund Summary (Unaudited) JULY 31, 2004
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FUND INFORMATION
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: MZF
Initial Offering Date: August 27, 2003
Closing Market Price as of 7/31/04: $13.11
Net Asset Value as of 7/31/04: $13.83
Yield on Closing Market Price as
of 7/31/04: 6.41%
Current Monthly Distribution
Per Common Share1: $0.07
Current Annual Distribution
Per Common Share1: $0.84
Leverage as of 7/31/042 39%
1 The distribution is not constant and is subject to change.
2 As a percentage of managed assets.
WEEKLY SHARE PRICE PERFORMANCE
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[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
DATE SHARE PRICE NAV OFFERING PRICE
8/27/2003 15 14.29 15
8/29/2003 15 14.3 15
9/5/2003 15.03 14.36 15
9/12/2003 15.05 14.42 15
9/19/2003 15.01 14.46 15
9/26/2003 15.06 14.49 15
10/3/2003 14.95 14.48 15
10/10/2003 14.92 14.49 15
10/17/2003 15.15 14.47 15
10/24/2003 15.06 14.54 15
10/31/2003 15.15 14.4 15
11/7/2003 15.1 14.3 15
11/14/2003 15.15 14.43 15
11/21/2003 15.3 14.52 15
11/28/2003 15.15 14.53 15
12/5/2003 15.2 14.45 15
12/12/2003 15.3 14.48 15
12/19/2003 15.08 14.58 15
12/26/2003 15.2 14.59 15
1/2/2004 15.35 14.57 15
1/9/2004 15.49 14.72 15
1/16/2004 15.55 14.75 15
1/23/2004 15.95 14.71 15
1/30/2004 15.22 14.67 15
2/6/2004 15.24 14.71 15
2/13/2004 15.29 14.84 15
2/20/2004 15.51 14.84 15
2/27/2004 15.62 14.91 15
3/5/2004 15.7 14.92 15
3/12/2004 15.63 15.03 15
3/19/2004 15.55 14.95 15
3/26/2004 15.33 14.75 15
4/2/2004 15.71 14.35 15
4/8/2004 15.45 14.31 15
4/16/2004 14.95 14.21 15
4/23/2004 14.25 14.12 15
4/30/2004 13.6 13.97 15
5/7/2004 13.55 13.88 15
5/14/2004 13.29 13.74 15
5/21/2004 13.05 13.68 15
5/28/2004 13.22 14.01 15
6/4/2004 13.43 13.76 15
6/10/2004 13.08 13.7 15
6/18/2004 13.12 13.75 15
6/25/2004 13.17 13.78 15
7/2/2004 13.37 13.83 15
7/9/2004 13.28 13.82 15
7/16/2004 13.14 13.86 15
7/23/2004 12.92 13.84 15
7/30/2004 13.11 13.83 15
SECTOR CONCENTRATION (AS OF 07/31/04)(1)
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[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
PORT/AIR/MARINA (5.2%)
LEASE (5.2%)
ELECTRIC POWER (6.1%)
IDR/IRB (8.2%)
MISCELLANEOUS REVENUE (10.5%)
OTHER (11.0%)
TRANSPORTATION (13.1%)
GENERAL OBLIGATION (16.1%)
HEALTHCARE (24.6%)
CREDIT QUALITY* (AS OF 07/31/04)(1)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
BBB (20.07%)
A (41.53%)
AA (10.24%)
AAA (28.16%)
*Based on rating provided by Standard & Poor's Rating Group or other
equilvalent rating.
TOP STATE ALLOCATIONS (AS OF 07/31/04)(1)
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[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
ALL OTHER STATES (16.2%)
MASSACHUSETTS (3.0%)
NEVADA (3.1%)
TEXAS (3.6%)
MISSOURI (3.7%)
FLORIDA (4.8%)
COLORADO (5.8%)
OHIO (7.8%)
PUERTO RICO (11.2%)
CALIFORNIA (19.4%)
NEW YORK (21.4%)
MATURITY BREAKDOWN (AS OF 07/31/04)(1)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
25-30 YRS. (9.9%)
20-25 YRS. (39.8%)
15-20 YRS. (41.4%)
10-15 YRS. (8.7%)
0-5 YRS. (0.2%)
(1) PERCENTAGES CALCULATED BASED ON TOTAL MUNICIPAL BONDS, NOTES AND PREFERRED
SHARES.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
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2
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments JULY 31, 2004
- ---------------------------------------------------------------------------------------------------------------------------
RATING PRINCIPAL OPTIONAL CALL VALUE
STATE (S&P)* AMOUNT (000) DESCRIPTION PROVISIONS** (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS & NOTES -- 156.69%
- ---------------------------------------------------------------------------------------------------------------------------
ALABAMA -- 0.79%
BBB $845 Courtland, AL Ind. Dev. Brd.
Environ. Imp. Rev.,
Ser. B, 6.25%, 08/01/25 08/01/13 @ 100 $ 867,316
----------
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA -- 30.73%
AAA 4,000 California Infra. & Econ. Dev.
Rev., Bay Area Toll Brdgs.,
5.00%, 07/01/26 (FGIC) 07/01/13 @ 100 4,017,680
BBB 2,500 California Gen. Oblig.,
5.50%, 04/01/30 04/01/14 @100 2,577,975
BBB+ 4,000 California Dept. of Water Res.
Power Supply Rev., Ser. A,
5.125%, 05/01/19 05/01/12 @ 101 4,159,080
BBB 6,000 California Var. Purpose Gen.
Oblig., 5.125%,11/01/24 11/01/13 @ 100 6,078,060
BBB- 5,000 California Public Works Brd.
Dept. Mental Health Lease
Rev., 5.00%, 06/01/24 06/01/14 @ 100 4,974,700
A- 2,500 Chula Vista, CA Ind. Dev.
Rev., 5.50%, 12/01/21 06/02/14 @ 102 2,540,200
BBB- 2,750 Golden State Tobbaco
Settlement Rev., Ser. B,
5.375%, 06/01/28 06/01/10 @ 100 2,750,688
AAA 4,000 Port of Oakland, CA Rev.,
Ser. L, 5.00%, 11/01/22
(FGIC) 11/01/12 @ 100 4,037,760
AAA 2,500 San Diego, CA Unified School
Dist., Ser. D, 5.25%, 07/01/25
(FGIC) 07/01/12 @101 2,596,650
--------------
33,732,793
--------------
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COLORADO -- 9.25%
AA 4,500 Colorado Health Facs. Auth.
Rev., Catholic Health
Initiatives, 5.25%, 09/01/21 09/01/11 @ 100 4,582,035
AAA 4,750 Colorado Dept. of Trans.
Rev., Ser. 940, 8.22%,
06/15/13, 144A (FGIC)+ No Call Provisions 5,567,333
--------------
10,149,368
--------------
See notes to financial statements
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3 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
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RATING PRINCIPAL OPTIONAL CALL VALUE
STATE (S&P)* AMOUNT (000) DESCRIPTION PROVISIONS** (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA -- 7.66%
A $ 2,500 Highlands Co., FL Health Facs.
Auth. Rev., Adventist Health,
Ser. B, 5.25%, 11/15/23 11/15/12 @ 100 $ 2,457,950
A 3,000 Highlands Co., FL Health Facs.
Auth. Rev., Adventist Health,
Ser. D, 5.875%, 11/15/29 11/15/13 @ 100 3,121,140
A+ 2,750 South Broward Co., FL Hosp.
Dist. Rev., 5.60%, 05/01/27 05/01/12 @ 101 2,828,650
--------------
8,407,740
--------------
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS -- 2.75%
A 3,000 Illinois Dev. Fin. Auth. Hosp.
Rev., Adventist Health, 5.65%,
11/15/24 11/15/09 @ 101 3,020,880
--------------
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LOUISIANA -- 0.89%
BBB 1,000 Desoto Parish, LA Environ.
Imp. Rev., Ser. A, 5.85%,
11/01/27 11/01/13 @ 100 978,740
--------------
- ---------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS -- 4.70%
AAA 5,000 Massachusetts Special Oblig.
Dedicated Tax Rev., 5.25%,
01/01/26 (FGIC) 01/01/14 @ 100 5,158,450
--------------
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN -- 1.84%
A- 2,000 Michigan Strategic Fund Ltd.
Oblig. Rev. Ref., Ser. C,
5.45% 09/01/29 09/01/11 @ 100 2,016,100
--------------
- ---------------------------------------------------------------------------------------------------------------------------
MISSOURI -- 5.83%
AA+ 300 Missouri Health & Educ. Facs.
Auth. Rev., Washington Univ.,
Ser. B, VRDN, 1.08%, 02/15/33,
(JP Morgan Chase Bank) No Call Provisions 300,000
AAA 6,000 Missouri Health & Educ. Facs.
Auth. Rev., SSM Healthcare,
Ser. A, 5.25%, 06/01/28
(AMBAC) 06/01/11 @ 101 6,096,000
--------------
6,396,000
--------------
See notes to financial statements
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4
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
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RATING PRINCIPAL OPTIONAL CALL VALUE
STATE (S&P)* AMOUNT (000) DESCRIPTION PROVISIONS** (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
NEVADA -- 4.84%
BBB+ $ 5,410 Henderson, NV Health Care Fac.
Rev., Catholic Healthcare West,
Ser. A, 5.625%, 07/01/24 07/01/14 @100 $ 5,317,056
--------------
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY -- 3.86%
A+ 4,000 New Jersey Trans. Trust Fund
Auth. Rev., Ser. C, 5.50%,
06/15/24 06/15/13 @ 100 4,236,480
--------------
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK -- 34.00%
A 5,000 New York, NY Gen. Oblig.,
Ser. J, 5.00%, 05/15/23 05/15/14 @ 100 5,020,300
A- 4,600 Long Island, NY Power Auth.
Rev., Ser. A, 5.10%,
09/01/29 09/01/14 @ 100 4,561,866
AA- 4,000 Metropolitan Trans. Auth.
Rev., Ser. A, 5.125%, 01/01/24 07/01/12 @ 100 4,042,760
A+ 3,650 New York Muni. Bond Bank
Agy. Special School
Purpose Rev., Ser. C, 5.25%,
12/01/22 06/01/13 @ 100 3,754,281
A 1,500 New York Dorm. Auth.
Lease Rev., Ser. A, 5.375%,
05/15/22 05/15/13 @ 100 1,555,950
A 2,500 New York Dorm. Auth. Lease
Rev., Ser. A, 5.375%,
05/15/23 05/15/13 @ 100 2,587,825
A3 1,500 New York Dorm. Auth. Rev.,
North Shore Long Island
Jewish Group, 5.375%,
05/01/23 05/01/13 @ 100 1,517,295
AA- 4,000 New York Tobacco Settlement
Funding Corp., Ser. A1,
5.50%, 06/01/19 06/01/13 @ 100 4,277,400
AAA 5,000 Port Auth. NY and NJ -
Cons. 127th Rev., 5.20%,
12/15/26 (AMBAC) 06/15/12 @ 101 5,031,800
A 5,000 Suffolk Co., NY Ind. Dev.
Agy. Rev., 5.25%, 06/01/27 06/01/13 @ 100 4,980,200
--------------
37,329,677
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See notes to financial statements
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5 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
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RATING PRINCIPAL OPTIONAL CALL VALUE
STATE (S&P)* AMOUNT (000) DESCRIPTION PROVISIONS** (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA -- 3.71%
BBB $ 1,000 North Carolina Eastern Muni.
Power Agy. Sys. Rev. Ref.,
Ser. D, 5.125%, 01/01/23 01/01/13 @ 100 $ 981,750
BBB 1,000 North Carolina Eastern Muni.
Power Agy. Sys. Rev. Ref.,
Ser. D, 5.125%, 01/01/26 01/01/13 @ 100 956,710
AAA 2,100 North Carolina Housing Fin.
Agy. Rev., Ser. 14A, 5.35%,
01/01/22 (AMBAC) 07/01/11 @ 100 2,131,353
--------------
4,069,813
--------------
- ---------------------------------------------------------------------------------------------------------------------------
OHIO -- 12.44%
A 3,000 Cuyahoga Co., OH Rev. Ref.,
Cleveland Clinic, Ser. A,
6.00%, 01/01/20 07/01/13 @ 100 3,243,270
A 3,000 Cuyahoga Co., OH Rev. Ref.,
Cleveland Clinic, Ser. A,
6.00%, 01/01/21 07/01/13 @ 100 3,231,990
AA- 5,000 Lorain Co., OH Hosp.
Rev. Ref., Catholic Healthcare,
Ser. A, 5.25%, 10/01/33 10/01/11 @ 101 4,912,700
Aaa 2,250 Toledo, OH City School Dist.
Facs. Imp. Gen. Oblig.,
5.000%, 12/01/25 (FSA) 12/01/13 @ 100 2,272,118
--------------
13,660,078
--------------
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA -- 2.13%
BBB 2,340 Pennsylvania Higher Educ.
Facs. Auth. Rev., 5.25%,
05/01/20 5/01/13 @ 100 2,334,103
--------------
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PUERTO RICO -- 17.82%
A- 7,550 Puerto Rico Hwy. & Trans.
Auth. Rev., 5.00%, 7/01/28 07/01/13 @ 100 7,426,331
A 1,500 Puerto Rico Hwy. & Trans.
Auth. Rev., Ser. J, 5.50%,
07/01/24 07/01/14 @ 100 1,577,655
A- 5,400 Puerto Rico Pub. Imp. Gen.
Oblig., Ser. A, 5.00%,
07/01/27 07/01/13 @ 100 5,327,694
See notes to financial statements
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6
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
- ---------------------------------------------------------------------------------------------------------------------------
RATING PRINCIPAL OPTIONAL CALL VALUE
STATE (S&P)* AMOUNT (000) DESCRIPTION PROVISIONS** (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (CONTINUED)
A- $ 5,000 Puerto Rico Pub. Bldgs. Auth.
Rev., Ser. I, 5.50%, 07/01/25 07/01/14 @ 100 $ 5,230,750
--------------
19,562,430
--------------
- ---------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA -- 3.13%
AAA 2,500 Florence Co., SC Hosp. Rev.,
McLeod Regional Med. Ctr.
Project, Ser. A, 5.25%,
11/01/27 (FSA) 11/01/14 @100 2,544,275
BBB 1,000 Georgetown Co., SC Environ.
Imp. Rev. Ser. A, 5.30%,
03/01/28 03/01/14 @100 896,350
--------------
3,440,625
--------------
- ---------------------------------------------------------------------------------------------------------------------------
TEXAS -- 5.68%
AAA 4,000 Eagle Mtn. & Saginaw, TX Indep.
School Dist., Ser. A, 5.25%,
08/15/23 (PSF-GTD) 08/15/13 @ 100 4,170,280
BBB 2,000 Sabine River, TX Poll. Cntl.
Auth. Rev. Ref., Ser. B,
6.15%, 08/01/22 08/01/13 @ 101 2,067,460
--------------
6,237,740
--------------
- ---------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA -- 4.64%
AAA 5,000 West Virginia Housing Dev.
Fund Rev., Ser. D, 5.20%,
11/01/21 05/01/11 @ 100 5,096,349
--------------
TOTAL MUNICIPAL BONDS & NOTES
(COST $169,673,611)-- 156.69% 172,011,738
--------------
PREFERRED SHARES -- 1.87%
- ---------------------------------------------------------------------------------------------------------------------------
RATING REDEMPTION VALUE
(MOODY'S) VALUE (000) DESCRIPTION (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
A3 $2,000 Charter Mac Equity Issuer Trust,
Ser. A-4, 5.75%, 04/30/15, 144A
(Cost $2,000,000) $ 2,056,300
--------------
See notes to financial statements
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7 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
- ---------------------------------------------------------------------------------------------------------------------------
NOTIONAL EXPIRATION VALUE
COUNTERPARTY AMOUNT (000) DESCRIPTION DATE (NOTE 1)
SWAPTIONS (1) -- 3.02%
AIG $ 3,000 Option on a pay fixed/receive
floating rate interest rate swap
terminating on 09/03/24
(pay fixed rate of 5.97% and
receive three-month LIBOR rate
with a quarterly reset) 09/03/04 $ 4,408
AIG 6,700 Option on a pay fixed/receive
floating rate interest rate swap
terminating on 03/03/25
(pay fixed rate of 5.83% and
receive three-month LIBOR rate
with a quarterly reset) 03/03/05 187,777
Goldman Sachs 40,000 Option on a pay fixed/receive
floating rate interest rate swap
terminating on 05/04/25
(pay fixed rate of 5.40% and
receive BMA rate with a weekly
reset) 05/04/05 42,000
Goldman Sachs 10,000 Option on a pay fixed/receive
floating rate interest rate swap
terminating on 09/03/25 (pay
fixed rate of 6.30% and receive
three-month LIBOR rate with a
quarterly reset) 09/03/05 203,000
Goldman Sachs 7,000 Option on a pay fixed/receive
floating rate interest rate swap
terminating on 09/03/28 (pay
fixed rate of 6.50% and receive
three-month LIBOR rate with a
quarterly reset) 09/03/08 322,000
Goldman Sachs 85,000 Option on a pay fixed/receive
floating rate interest
rate swap terminating on 09/03/28
(pay fixed rate of 5.20% and
receive BMA rate with a weekly
reset) 09/03/08 2,552,000
--------------
Total Swaptions (Cost $7,051,500)-- 3.02% 3,311,185
--------------
See notes to financial statements
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8
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Portfolio of Investments-- (continued) JULY 31, 2004
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $178,725,111)-- 161.58% $177,379,223
Other assets less liabilities-- 1.68% 1,846,731
Preferred Shares, at Redemption Value-- (63.26)% (2) (69,450,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS-- 100.00% (3) $109,775,954
============
* UNAUDITED -- FOR SECURITIES NOT RATED BY STANDARD & POOR'S RATING GROUP,
THE RATING BY MOODY'S INVESTORS SERVICES, INC. OR FITCH RATINGS IS PROVIDED.
** UNAUDITED -- DATE AND PRICE OF THE EARLIEST OPTIONAL CALL OR REDEMPTION.
THERE MAY BE OTHER CALL PROVISIONS AT VARYING PRICES AT LATER DATES.
+ INVERSE FLOATING RATE SECURITY -- THE COUPON RATE OF THE SECURITY CHANGES
INVERSELY WITH INTEREST RATES. THE RATE SHOWN REFLECTS THE RATE AT BALANCE
SHEET DATE.
(1) NON-INCOME PRODUCING SECURITIES.
(2) PREFERRED SHARES AS PERCENTAGE OF MANAGED ASSETS IS 38.75%.
(3) PORTFOLIO PERCENTAGES ARE CALCULATED BASED ON NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS.
GLOSSARY:
AMBAC -- INSURED BY AMBAC ASSURANCE CORPORATION.
BMA -- BOND MARKET ASSOCIATION
FGIC -- INSURED BY FINANCIAL GUARANTY INSURANCE CO.
FSA -- INSURED BY FINANCIAL SECURITY ASSURANCE, INC.
LIBOR -- LONDON INTER-BANK OFFERING RATE
PSF-GTD -- GUARANTEED BY PUBLIC SCHOOL FUND
VRDN -- VARIABLE RATE DEMAND NOTES ARE INSTRUMENTS WHOSE INTEREST RATES CHANGE
ON A SPECIFIED DATE (SUCH AS A COUPON DATE OR INTEREST PAYMENT DATE) AND/OR
WHOSE INTEREST RATES VARY WITH CHANGES IN A DESIGNATED BASE RATE (SUCH AS THE
PRIME INTEREST RATE). INTEREST RATE SHOWN REFLECTS RATE AT BALANCE SHEET DATE.
144A -- SECURITY WAS PURCHASED PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
OF 1933 AND MAY NOT BE RESOLD SUBJECT TO THAT RULE EXCEPT TO QUALIFIED
INSTITUTIONAL BUYERS. AT THE END OF THE PERIOD, SECURITIES AMOUNTED TO 6.94% OF
NET ASSETS.
See notes to financial statements
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9 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Statement of Assets and Liabilities
JULY 31, 2004
ASSETS:
Investment in securities, at value
(amortized cost $178,725,111) .......................... $177,379,223
Cash ..................................................... 178,517
Receivable for investments sold .......................... 4,597,969
Interest receivable ...................................... 1,759,201
Other assets ............................................. 154,338
------------
Total Assets ............................................. 184,069,248
------------
LIABILITIES:
Payable for investments purchased ........................ 4,523,180
Dividends payable to preferred shareholders .............. 76,687
Due to Adviser ........................................... 45,497
Due to Servicing Agent ................................... 30,332
Due to Accounting Agent and Administrator ................ 15,165
Accrued expenses payable ................................. 152,433
------------
Total Liabilities ...................................... 4,843,294
------------
PREFERRED SHARES:
($25,000 net asset and liquidation value
per share applicable to 2,778 shares authorized,
issued and outstanding) .................................. 69,450,000
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
(equivalent to $13.83 per share based
on 7,935,591 common shares issued and
outstanding; unlimited number of common
shares authorized) ....................................... $109,775,954
============
NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS CONSISTED OF:
Common shares of beneficial interest,
par value $0.001 per share ............................. $ 7,936
Additional paid-in capital ............................... 112,471,279
Undistributed net investment income ...................... 549,019
Accumulated net realized loss on investments ............. (1,906,392)
Net unrealized depreciation on investments ............... (1,345,888)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ................ $109,775,954
============
See notes to financial statements
- --------------------------------------------------------------------------------
10
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Statement of Operations
FOR THE PERIOD AUGUST 27, 2003* THROUGH JULY 31, 2004
INVESTMENT INCOME:
Interest ........................................... $7,533,154
EXPENSES:
Investment advisory fees ........................ $614,404
Servicing agent fees ............................ 409,603
Administration and accounting fees .............. 157,538
Auction agent fees and commissions .............. 110,940
Legal fees and expenses ......................... 93,728
Audit fees ...................................... 73,000
Trustees' fees .................................. 36,000
Transfer agent fees ............................. 29,597
Insurance expense ............................... 27,951
NYSE fee ........................................ 23,750
Reports to shareholders ......................... 18,360
Custodian fees .................................. 16,770
Miscellaneous ................................... 24,706
----------
Total expenses (before waivers) ................. 1,636,347
Less investment advisory fees waived .......... (141,786)
Less servicing agent fees waived .............. (94,523)
----------
Net expenses (after waivers) .................. 1,400,038
----------
Net Investment Income .............................. 6,133,116
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss from
security transactions ......................... (1,906,392)
Net change in unrealized depreciation
of investments ................................ (1,345,888)
----------
Net realized and unrealized loss
on investments ................................ (3,252,280)
----------
Net Increase in Net Assets Resulting from
Investment Operations ......................... 2,880,836
DIVIDENDS ON PREFERRED SHARES FROM
NET INVESTMENT INCOME ........................... (597,187)
----------
NET INCREASE IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS RESULTING
FROM INVESTMENT OPERATIONS .................... $2,283,649
==========
* COMMENCEMENT OF INVESTMENT OPERATIONS.
See notes to financial statements
- --------------------------------------------------------------------------------
11 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Statement of Changes in Net Assets Applicable to Common Shareholders
FOR THE PERIOD AUGUST 27, 2003* THROUGH JULY 31, 2004
INVESTMENT OPERATIONS:
Net investment income ......................................... $ 6,133,116
Net realized loss from security transactions .................. (1,906,392)
Net change in unrealized depreciation of investments .......... (1,345,888)
--------------
Net increase in net assets resulting from
investment operations ....................................... 2,880,836
DIVIDENDS ON PREFERRED SHARES FROM
NET INVESTMENT INCOME ......................................... (597,187)
--------------
Net Increase in Net Assets Applicable to
Common Shareholders Resulting
from Investment Operations .................................... 2,283,649
--------------
DIVIDENDS TO COMMON SHAREHOLDERS FROM
NET INVESTMENT INCOME ......................................... (4,986,910)
--------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of common shares ....................... 112,809,375
Preferred shares underwriting discount charged
to additional paid-in capital ............................... (694,500)
Common shares and preferred shares
offering costs charged to additional paid-in capital ........ (521,757)
Reinvestment of dividends on common shares .................... 786,094
--------------
Net increase in net assets applicable to
common shares from capital
share transactions ....................................... 112,379,212
--------------
Net increase in net assets applicable to common shares ........ 109,675,951
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period ........................................... 100,003
--------------
End of period (including undistributed
net investment income of $549,019) .......................... $109,775,954
==============
* COMMENCEMENT OF INVESTMENT OPERATIONS.
See notes to financial statements
- --------------------------------------------------------------------------------
12
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Financial Highlights
THE TABLE BELOW SETS FORTH FINANCIAL DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT THE PERIOD PRESENTED.
FOR THE PERIOD
AUGUST 27, 2003* THROUGH
JULY 31, 2004
---------------------------
PER COMMON SHARE OPERATING PERFORMANCE
Net asset value, beginning of period** ........................ $ 14.33
--------------
INVESTMENT OPERATIONS:
Net investment income ......................................... 0.78
Net realized and unrealized loss on investments ............... (0.42)
--------------
Total from investment operations ........................... 0.36
DIVIDENDS ON PREFERRED SHARES FROM
NET INVESTMENT INCOME ...................................... (0.08)
--------------
Net increase in net assets applicable to common
shares resulting from investment operations ................ 0.28
--------------
DIVIDENDS TO COMMON SHAREHOLDERS FROM
NET INVESTMENT INCOME ...................................... (0.63)
--------------
CAPITAL SHARE TRANSACTIONS:
Common share offering costs charged to paid-in
capital in excess of par ................................... (0.03)
Preferred shares offering costs/underwriting discount
charged to additional paid-in capital ...................... (0.12)
--------------
Total capital share transactions .............................. (0.15)
--------------
Net asset value, end of period ................................ $ 13.83
========
Per share market value, end of period ......................... $ 13.11
.............................................................. ========
TOTAL INVESTMENT RETURN (1) ................................... (8.62)%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets: (2) (3)
Expenses (net of fee waivers) .............................. 1.34%
Expenses (excluding fee waivers) ........................... 1.56%
Net investment income ...................................... 5.85%
Portfolio turnover rate ....................................... 129%
Net assets, end of period (in 000's) .......................... $109,776
Preferred shares asset coverage per share ..................... $ 64,516
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** INITIAL PUBLIC OFFERING PRICE OF $15.00 PER SHARE LESS UNDERWRITING DISCOUNT
OF $0.675 PER SHARE.
(1) TOTAL INVESTMENT RETURN IS CALCULATED ASSUMING A PURCHASE OF COMMON SHARES
AT THE OFFERING PRICE OF $15.00 ON AUGUST 27, 2003, AND A SALE AT THE MARKET
PRICE ON THE LAST DAY OF THE PERIOD REPORTED. DIVIDENDS AND DISTRIBUTIONS,
IF ANY, ARE ASSUMED FOR PURPOSES OF THIS CALCULATION TO BE REINVESTED AT
PRICES OBTAINED UNDER THE FUND'S DIVIDEND REINVESTMENT PLAN. TOTAL
INVESTMENT RETURN DOES NOT REFLECT BROKERAGE COMMISSIONS. THE TOTAL
INVESTMENT RETURN, WHICH IS FOR LESS THAN A FULL YEAR, IS NOT ANNUALIZED.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.
(2) ANNUALIZED
(3) CALCULATED ON THE BASIS OF INCOME AND EXPENSES APPLICABLE TO BOTH COMMON AN
PREFERRED SHARES RELATIVE TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS.
See notes to financial statements
- --------------------------------------------------------------------------------
13 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004
NOTE 1 -- ORGANIZATION & ACCOUNTING POLICIES:
- --------------------------------------------------------------------------------
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund (the
"Fund") was organized as a Delaware statutory trust on May 20, 2003. The Fund is
registered as a diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended. The Fund's investment objective is
to provide its common shareholders with high current income exempt from regular
Federal income tax while seeking to protect the value of the Fund's assets
during periods of interest rate volatility.
Prior to commencing operations on August 27, 2003, the Fund had no operations
other than matters relating to its organization and registration and the sale
and issuance of 6,981 common shares of beneficial interest to MBIA Capital
Management Corp.
The following is a summary of significant accounting policies followed by the
Fund.
SECURITIES VALUATION: The municipal bonds in which the Fund invests are traded
primarily in the over-the-counter markets. In determining net asset value, the
Fund uses the valuations of portfolio securities furnished by a pricing
service approved by the Board of Trustees. The pricing service typically
values portfolio securities at the bid price or the yield equivalent when
quotations are readily available. Municipal bonds for which quotations are not
readily available are valued at fair market value on a consistent basis as
determined by the pricing service using a matrix system to determine
valuations. The procedures of the pricing service and its valuations are
reviewed by the officers of the Fund under the general supervision of the
Board of Trustees. Positions in futures contracts, interest rate swaps and
options on interest rate swaps ("swaptions") are valued at closing prices for
such contracts established by the exchange or dealer market on which they are
traded, or if market quotations are not readily available, are valued at fair
value on a consistent basis using methods approved in good faith by the Board
of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. Realized gains and losses on investments are
determined on the identified cost basis. Interest income and expenses are
accrued daily. All discounts/premiums are accreted/amortized for financial
reporting purposes as required.
SWAPTIONS: The Fund may engage in options transactions on interest rate swap
agreements, commonly referred to as swaptions. A swaption is an agreement
between two parties where one party purchases the right from the other party
- --------------------------------------------------------------------------------
14
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004 -- CONTINUED
to enter into an interest rate swap at a specified date and for a specified
"fixed rate" yield (or "exercise" yield). In a pay-fixed swaption, the holder
of the swaption has the right to enter into an interest rate swap as a payer
of fixed rate interest and receiver of variable rate interest, while the
writer of the swaption has the obligation to enter into the other side of the
interest rate swap. In a receive-fixed swaption, the holder of the swaption
has the right to enter into an interest rate swap as a receiver of fixed rate
interest and a payer of variable rate interest, while the writer has the
obligation to enter into the opposite side of the interest rate swap. The Fund
will enter into such transactions to attempt to hedge some or all of its
interest rate exposure in its holdings of municipal bonds. During the period
ended July 31, 2004, the Fund purchased pay-fixed swaptions. Upon the purchase
of these pay-fixed swaptions by the Fund, the total purchase price paid was
recorded as an investment. The market valuation is determined as set forth in
the preceding securities valuation paragraph. If the pay-fixed swaptions are
exercised, the Fund has the right to enter into an interest rate swap as a
payer of fixed rate interest and receiver of variable rate interest. When the
pay-fixed swaptions reach their scheduled expiration dates, the Fund will
record a gain or loss depending on the difference between the purchase price
and the value of the swaptions on their exercise date. During the period ended
July 31, 2004, the Fund did not exercise any of the swaptions it had
purchased.
FEDERAL INCOME TAXES: It is the Fund's intention to elect to be treated as a
regulated investment company under the Internal Revenue Code of 1986, as
amended, and to distribute sufficient net income to shareholders to qualify as
such. For this reason and because substantially all of the Fund's gross income
consists of tax-exempt interest, no Federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The Fund intends to declare and pay dividends
from net investment income monthly to common shareholders. Distributions of
net realized capital gains, if any, will be paid at least annually. Dividends
and distributions to shareholders will be recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and
determined as described in Note 5.
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
- --------------------------------------------------------------------------------
15 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004 -- CONTINUED
NOTE 2 -- AGREEMENTS:
- --------------------------------------------------------------------------------
Pursuant to an Investment Advisory Agreement (the "Advisory Agreement") between
MBIA Capital Management Corp. (the "Adviser") and the Fund, the Adviser is
responsible for the daily management of the Fund's Portfolio, which includes
buying and selling securities for the Fund, as well as investment research,
subject to the direction of the Fund's Board of Trustees. The Adviser is a
subsidiary of MBIA Asset Management LLC which, in turn, is a wholly-owned
subsidiary of MBIA Inc. The Advisory Agreement provides that the Fund shall pay
to the Adviser a monthly fee for its services at the annual rate of 0.39% of the
sum of the Fund's average daily net assets (including assets acquired from the
sale of any preferred shares), plus the proceeds of any outstanding borrowings
used for financial leverage (in total, the "Managed Assets"). The Adviser has
contractually agreed to waive a portion of the management fees it is entitled to
receive from the Fund at the annual rate of 0.09% of the Fund's average daily
Managed Assets from the commencement of the Fund's operations through September
1, 2008, and at the rate of 0.042% thereafter through September 1, 2009.
Pursuant to a Servicing Agreement, Claymore Securities, Inc. (the "Servicing
Agent") acts as servicing agent to the Fund. The Servicing Agent receives an
annual fee from the Fund, payable monthly in arrears, in an amount equal to
0.26% of the average daily value of the Fund's Managed Assets. The Servicing
Agent has contractually agreed to waive a portion of the servicing fee it is
entitled to receive from the Fund at the annual rate of 0.06% of the average
daily value of the Fund's Managed Assets from the commencement of the Fund's
operations through September 1, 2008, and at a rate of 0.028% thereafter through
September 1, 2009.
MBIA Municipal Investors Service Corporation ("MBIA-MISC"), a subsidiary of MBIA
Asset Management LLC, serves as Accounting Agent and Administrator to the Fund
pursuant to an Accounting Services and Administration Agreement with the Fund.
As Accounting Agent and Administrator, MBIA-MISC is responsible for services
such as financial reporting, compliance monitoring and corporate management.
MBIA-MISC is also responsible for maintaining the books and records of the
Fund's securities and cash. For these services, the Fund pays MBIA-MISC an
annual fee equal to 0.10% of the Fund's average daily Managed Assets up to $250
million, 0.06% on the next $250 million of the Fund's average daily Managed
Assets, and 0.03% of the Fund's average daily Managed Assets in excess of $500
million with a minimum annual fee of $100,000.
Certain officers and/or trustees of the Fund are officers and/or directors of
the Adviser and the Servicing Agent.
- --------------------------------------------------------------------------------
16
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004 -- CONTINUED
NOTE 3 -- PORTFOLIO SECURITIES:
- --------------------------------------------------------------------------------
Purchases and sales of investment securities, excluding short-term investments,
for the period August 27, 2003 (commencement of investment operations) through
July 31, 2004, aggregated $390,523,928 and $212,061,258, respectively.
The Federal income tax cost basis of the Fund's investments at July 31, 2004,
was $178,725,111 and net unrealized depreciation was $1,345,888, which consisted
of aggregate gross unrealized appreciation of $2,782,298 and aggregate gross
unrealized depreciation of $4,128,186.
NOTE 4 -- DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Distributions paid to common shareholders during the period ended July 31, 2004
were characterized as follows for tax purposes:
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL DISTRIBUTIONS
---------- ------- ----------- -----------------
$4,986,303 $607 $-- $4,986,910
As of July 31, 2004, the components of net assets (excluding paid-in capital)
on a tax basis were as follows:
Current distributable tax-exempt income ..................... $524,422
Plus: book/tax difference on accrued interest
of investment ............................................ 24,597
-----------
Undistributed tax-exempt income ............................. $549,019
===========
Tax basis capital loss carryover ............................ $(8,249)
Less: current year post-October capital
loss deferral ............................................ (1,898,143)
-----------
Accumulated capital loss .....................................$(1,906,392)
===========
Unrealized appreciation/(depreciation) ..................... $(1,345,888)
===========
The difference between book and tax basis undistributed ordinary income is due
to book/tax difference on accrued interest of investment. The cumulative timing
difference under tax basis accumulated capital loss is due to post-October
losses.
As of July 31, 2004, the Fund had a capital loss carryforward of $8,249
available to offset possible future capital gains, if any, until fully utilized
or until its expiration on July 31, 2012. Under the current tax law, capital
losses realized after October 31, may be deferred and treated as occurring on
the first
- --------------------------------------------------------------------------------
17 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004 -- CONTINUED
day of the following fiscal year. For the period ended July 31, 2004, the Fund
elected to defer losses occurring between November 1, 2003 and July 31, 2004 in
the amount of $1,898,143.
NOTE 5 -- CAPITAL:
- --------------------------------------------------------------------------------
There are an unlimited number of $.001 par value common shares of beneficial
interest authorized. Of the 7,935,591 common shares outstanding at July 31,
2004, the Adviser owned 6,981 shares. The Fund issued 7,100,000 common shares in
its initial public offering on August 27, 2003. These common shares were issued
at $15.00 per share before the underwriting discount of $0.675 per share. An
additional 600,000 common shares and 175,000 common shares were issued on
September 10, 2003 and October 10, 2003, respectively. These common shares were
also issued at $15.00 per share before the underwriting discount of $0.675 per
share. Organization expenses amounting to $31,465 were borne by the Adviser and
the Servicing Agent. Offering costs of $236,459 (representing $0.03 per common
share) were offset against proceeds of the offering and have been charged to
paid-in capital in excess of par of the common shares. MBIA Capital Management
Corp. and Claymore Securities, Inc. paid all offering costs (other than the
sales load) exceeding $0.03 per common share of the Fund, which amounted to
approximately $519,000.
Transactions in common shares for the period from August 27, 2003 (commencement
of investment operations) through July 31, 2004, were as follows:
Common shares outstanding-- beginning of period ............... 6,981
Common shares issued in connection with initial public
offering ................................................. 7,100,000
Underwriters' exercising the over-allotment option ............ 775,000
Reinvestment of dividends ..................................... 53,610
---------
Common shares outstanding-- end of period ..................... 7,935,591
=========
On October 27, 2003 the Fund issued 1,389 shares of Auction Market Preferred
Shares, Series M7 and 1,389 shares of Auction Market Preferred Shares, Series
W28. The preferred shares have a liquidation value of $25,000 per share plus any
accumulated unpaid dividends. Underwriting discounts of $694,500 and
- --------------------------------------------------------------------------------
18
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Notes to Financial Statements
JULY 31, 2004 -- CONTINUED
offering costs of $285,298 incurred in connection with the Fund's offering of
preferred shares have been charged to paid-in capital in excess of par of the
common shares. As of July 31, 2004, the Fund had 1,389 shares each of Auction
Market Preferred Shares, Series M7 and W28, outstanding.
Dividends on the preferred shares are cumulative at a rate that is set by
auction procedures. The dividend rate range on the preferred shares of the Fund
for the period ended July 31, 2004, were as follows:
SERIES LOW HIGH AT 07/31/04
---- --- ---- ---------
M7 0.75% 1.40% 1.10%
W28 1.05% 1.50% 1.50%
The Fund is subject to certain limitations and restrictions while preferred
shares are outstanding. Failure to comply with these limitations and
restrictions could preclude the Fund from declaring any dividends or
distributions to common shareholders or repurchasing common shares and/or could
trigger the mandatory redemption of preferred shares at their liquidation value
plus any accrued dividends. Preferred shares, which are entitled to one vote per
share, generally vote with the common shares but vote separately as a class to
elect two Trustees and on any matters affecting the rights of preferred shares.
NOTE 6 -- SUBSEQUENT DIVIDEND DECLARATIONS - COMMON SHAREHOLDERS:
- --------------------------------------------------------------------------------
The Fund has declared the following dividends to common shareholders:
RATE PER EX-DIVIDEND RECORD PAYABLE
SHARE DATE DATE DATE
------ ---------- ------ -------
$0.07 09/03/04 09/08/04 09/15/04
0.07 10/06/04 10/08/04 10/15/04
- --------------------------------------------------------------------------------
19 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
MBIA Capital/Claymore Managed Duration
Investment Grade Municipal Fund
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets applicable to common shareholders and the financial
highlights present fairly, in all material respects, the financial position of
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund (the
"Fund") at July 31, 2004, and the results of its operations, the changes in its
net assets and the financial highlights for the period August 27, 2003
(commencement of operations) through July 31, 2004, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States), which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at July 31, 2004 by
correspondence with the custodian and brokers, provides a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
September 10, 2004
- --------------------------------------------------------------------------------
20
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Additional Information Regarding the Fund's Trustees and Officers (Unaudited)
NAME,
ADDRESS*, TERM OF
AGE AND OFFICE**
POSITION(S) AND LENGTH PRINCIPAL OCCUPATION DURING
HELD WITH OF TIME THE PAST FIVE YEARS AND OTHER DIRECTORSHIPS
REGISTRANT SERVED OTHER AFFILIATIONS HELD BY TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
- ------------------------------------------------------------------------------------------------------------------------------------
Mark Jurish Since 2003 Founder and Chief Executive Officer of None
Age: 44 Larch Lane Advisors LLC. Prior to forming
Trustee Larch Lane, Mr. Jurish was Managing
Director at Paloma Partners, a firm that
he joined in 1988.
- ------------------------------------------------------------------------------------------------------------------------------------
Ronald A. Nyberg Since 2003 Founding partner, Nyberg & Gustafson, Director, Edward Hospital Foundation,
Age: 51 a law firm specializing in corporate law, Naperville, IL; Trustee, North Park
Trustee estate planning and business transactions University, Chicago; Trustee, Advent
(2000-present). Formerly, Executive Claymore Convertible Securities and Income
Vice President, General Counsel and Fund, Western Asset/Claymore U.S. Treasury
Corporate Secretary of Van Kampen Inflation Protected Securities Fund,
Investments (1982-1999). Dreman/Claymore Dividend & Income Fund,
Western Asset/Claymore U.S. Treasury
Inflation Protected Securities Fund 2.
- ------------------------------------------------------------------------------------------------------------------------------------
Jerry S. Rosenbloom Since 2003 Professor of Insurance and Risk Harleysville Group, Inc; Century Shares
Age: 65 Management at the Wharton School of the Trust; and Annuity & Life RE Holdings.
Trustee University of Pennsylvania and Academic
Director of the Certified Employee
Benefit Specialist (CEBS) Program,
co-sponsored by the Wharton School and
the International Foundation of Employee
Benefit Plans.
- ------------------------------------------------------------------------------------------------------------------------------------
Ronald E. Toupin, Jr. Since 2003 Former Vice President, Manager and Trustee, Advent Claymore Convertible
Age: 46 Portfolio Manager of Nuveen Asset Securities and Income Fund, Western
Trustee Management (1998-1999), Vice President Asset/Claymore U.S. Treasury Inflation
and Portfolio Manager of Nuveen Protected Securities Fund, Dreman/
Investment Advisory Corporation Claymore Dividend & Income Fund,
(1992-1999), Vice President and Manager Western Asset/Claymore U.S. Treasury
of Nuveen Unit Investment Trusts Inflation Protected Securities
(1991-1998), and Assistant Vice President Fund 2, TS&W/Claymore Tax-Advantaged
and Portfolio Manager of Nuveen Balanced Fund, and Madison/Claymore
Unit Trusts (1988-1990), each of Covered Call Fund.
John Nuveen & Company, Inc. (1982-1999).
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* The business address of each Trustee is c/o MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund,
113 King Street, Armonk, New York 10504.
** The Trustees of each class shall be elected at an annual meeting of the shareholders or special meeting in lieu
thereof called for that purpose, and each Trustee elected shall hold office until his or her successor shall have
been elected and shall have qualified. The term of office of a Trustee shall terminate and a vacancy shall occur in the
event of the death, resignation, removal, bankruptcy, adjudicated incompetence or other incapacity to perform the
duties of the office, or removal, of a Trustee.
</FN>
- --------------------------------------------------------------------------------
21 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Additional Information Regarding the Fund's Trustees and Officers (Unaudited)
NAME,
ADDRESS*, TERM OF
AGE AND OFFICE**
POSITION(S) AND LENGTH PRINCIPAL OCCUPATION DURING
HELD WITH OF TIME THE PAST FIVE YEARS AND OTHER DIRECTORSHIPS
REGISTRANT SERVED OTHER AFFILIATIONS HELD BY TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
- ------------------------------------------------------------------------------------------------------------------------------------
Clifford D. Corso Since 2003 President of MBIA Capital Management Corp. None
Age: 42 and Chief Investment Officer, MBIA Insurance
Trustee and Corp.; Vice President of the 1838
President Investment Advisors Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Nicholas Dalmaso Since 2003 Senior Managing Director and General Trustee, Advent Claymore Convertible
Age: 39 Counsel of Claymore Advisors, LLC and Securities and Income Fund, Western
Trustee Claymore Securities, Inc. (2001-present). Asset/Claymore U.S. Treasury Inflation
Formerly, Assistant General Counsel, Protected Securities Fund, Flaherty &
John Nuveen and Company, Inc. (1999-2001). Crumrine/Claymore Preferred Securities
Former Vice President and Associate & Income Fund, Inc., Flaherty &
General Counsel of Van Kampen Investments, Crumrine/Claymore Total Return Fund, Inc.,
Inc. (1992-1999). Dreman/ Claymore Dividend & Income Fund,
and Western Asset/Claymore U.S. Treasury
Inflation Protected Securities Fund 2,
TS&W/Claymore Tax-Advantaged Balanced Fund,
and Madison/Claymore Covered Call Fund.
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* The business address of each Trustee is c/o MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund,
113 King Street, Armonk, New York 10504.
** The Trustees of each class shall be elected at an annual meeting of the shareholders or special meeting in lieu
thereof called for that purpose, and each Trustee elected shall hold office until his or her successor shall have
been elected and shall have qualified. The term of office of a Trustee shall terminate and a vacancy shall occur in the
event of the death, resignation, removal, bankruptcy, adjudicated incompetence or other incapacity to perform the
duties of the office, or removal, of a Trustee.
The Statement of Additional Information includes additional information about the Trustees of the Fund and is available,
without charge, upon request by calling 800-345-7999.
</FN>
- --------------------------------------------------------------------------------
22
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Additional Information Regarding the Fund's Trustees and Officers
(Unaudited) - continued
TERM OF
OFFICE*
NAME AND PRINCIPAL OCCUPATION DURING
ADDRESS* YEAR FIRST THE PAST FIVE YEARS AND
AND AGE POSITION(S) HELD WITH FUND APPOINTED OTHER AFFILIATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Craig L. Armstrong Assistant Vice President Since 2003 Vice President, MBIA-CMC
Age: 34 (2003-Present); Assistant Vice President and
Vice President, MBIA Corp. (1999-2003);
Senior Analyst, MBIA Investment Management
Corp. (1999)
- ------------------------------------------------------------------------------------------------------------------------------------
Leonard I. Chubinsky Assistant Secretary and Counsel Since 2003 General Counsel and Secretary,
Age: 55 MBIA-CMC.
- ------------------------------------------------------------------------------------------------------------------------------------
Michael R. Jacobson Vice President and Secretary Since 2003 Director, MBIA-CMC
Age: 50
- ------------------------------------------------------------------------------------------------------------------------------------
Marc D. Morris Treasurer Since 2003 Chief Financial Officer of MBIA's fixed
Age: 45 income business; President MBIA Investment
Management Corp.
- ------------------------------------------------------------------------------------------------------------------------------------
Patrick M. Tucci Assistant Vice President Since 2003 Assistant Vice President and a Portfolio
Age: 34 Manager, MBIA-CMC (2002-Present); Assistant
Vice President, Vice President, Salomon Smith
Barney Global Equities Group (2000-2001);
Assistant Vice President Salomon Smith Barney
Municipal Bond Group (1995-2000).
- ------------------------------------------------------------------------------------------------------------------------------------
Susan A. Voltz Vice President Since 2003 Director and Senior Portfolio Manager,
Age: 42 MBIA-CMC.
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* The business address of each officer is c/o MBIA-CMC, 113 King Street, Armonk, New York 10504.
** Elected by and serves at the pleasure of the Board of Trustees of the Fund.
</FN>
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23 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Dividend Reinvestment Plan (Unaudited)
Pursuant to the Fund's Automatic Dividend Reinvestment Plan (the "Plan"), unless
a shareholder is ineligible or elects otherwise, all dividend and capital gains
distributions are automatically reinvested by The Bank of New York ("BONY"), as
agent for shareholders in administering the Plan (the "Plan Agent"), in
additional common shares of the Fund. Shareholders whose shares are held in the
name of a broker or nominee should contact such broker or nominee to confirm
that they are eligible to participate in the Plan. Shareholders who are
ineligible or who elect not to participate in the Plan will receive all
dividends and distributions in cash paid by check mailed directly to the
shareholder of record (or, if the shares are held in street or other nominee
name, then to such nominee) by BONY, as dividend paying agent. Such shareholders
may elect not to participate in the Plan and to receive all distributions of
dividends and capital gains in cash by sending written instructions to BONY, as
dividend paying agent, at the address set forth below or by contacting their
broker if their shares are held in street name. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by written notice if received by the Plan Agent not less than ten days
prior to any dividend record date; otherwise, such termination will be effective
with respect to any subsequently declared dividend or capital gains
distribution.
Whenever the Fund declares an ordinary income dividend or a capital gain
dividend (collectively referred to as "dividends") payable in cash,
non-participants in the Plan will receive cash, and participants in the Plan
will receive the equivalent in common shares. The shares are acquired by the
Plan Agent for the participant's account, depending upon the circumstances
described below, either (i) through receipt of additional unissued but
authorized common shares from the Fund ("newly issued shares") or (ii) by
purchase of outstanding common shares on the open market ("open-market
purchases") on the NYSE or elsewhere. If, on the dividend payment date, the
market price per common share plus estimated brokerage commissions is greater
than the net asset value per common share (such condition being referred to
herein as "market premium"), the Plan Agent will invest the dividend amount in
newly issued shares on behalf of the participant. The number of newly issued
common shares to be credited to the participant's account will be determined by
dividing the dollar amount of the dividend by the net asset value per share on
the payment date, provided that, if the net asset value per share is less than
or equal to 95% of the market price per share on the payment date, the dollar
amount of the dividend will be divided by 95% of the market price per share on
the payment date. If on the dividend payment date the net asset value per share
is greater than the market value plus estimated brokerage commissions (such
condition being referred to herein as "market discount"), the Plan Agent will
invest the dividend amount in shares acquired on behalf of the participant in
open-market purchases.
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24
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Dividend Reinvestment Plan (Unaudited) -- continued
If, before the Plan Agent has completed its open-market purchases, the market
price of the common shares exceeds the net asset value per share, the average
per share purchase price paid by the Plan Agent may exceed the net asset value
of the Fund's shares, resulting in the acquisition of fewer shares than if the
dividend had been paid in newly issued shares on the dividend payment date.
Because of the foregoing difficulty with respect to open-market purchases, the
Plan provides that if the Plan Agent is unable to invest the full dividend
amount in open-market purchases during the purchase period or if the market
discount shifts to a market premium during the purchase period, the Plan Agent
may cease making open-market purchases and may invest the uninvested portion of
the dividend amount in newly issued shares at the net asset value per share at
the close of business on the last purchase date; provided that, if the net asset
value per share is less than 95% of the market price per share on the payment
date, the dollar amount of the dividend will be divided by 95% of the market
price per share on the payment date.
The Plan Agent maintains all shareholders' accounts in the Plan and furnishes
written confirmation of all transactions in the account, including information
needed by shareholders for tax records. Shares in the account of each Plan
participant will be held by the Plan Agent in the name of the participant, and
each shareholder's proxy will include those shares purchased or received
pursuant to the Plan. The Plan Agent will forward all proxy solicitation
materials to participants and vote proxies for shares held pursuant to the Plan
in accordance with the instructions of the participants.
There will be no brokerage charges with respect to shares issued directly by the
Fund as a result of dividends or capital gains distributions payable either in
shares or in cash. However, each participant will pay a pro rata share of
brokerage commissions incurred with respect to the Plan Agent's open-market
purchases in connection with the reinvestment of dividends. The automatic
reinvestment of dividends and distributions will not relieve participants of any
Federal, state or local income tax that may be payable (or required to be
withheld) on such dividends.
The Fund reserves the right to amend or terminate the Plan. There is no direct
service charge to participants in the Plan; however, the Fund reserves the right
to amend the Plan to include a service charge payable by the participants. All
questions and correspondence concerning the Plan should be directed to the Plan
Agent at The Bank of New York, 111 Sanders Creek Parkway, East Syracuse, NY
13057 or by phone at 800-701-8178.
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25 www.mbiaclaymore.com
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Tax Information (Unaudited)
Subchapter M of the Internal Revenue Code of 1986, as amended, requires the Fund
to advise shareholders within 60 days of the Funds' tax year end (July 31, 2004)
as to the federal tax status of dividends and distributions received by
shareholders during such tax period. Accordingly, please note that substantially
all dividends paid from net investment income from the Fund during the tax
period ended July 31, 2004 were federally exempt interest dividends. The Fund
has invested in municipal bonds containing market discount, whose accretion is
taxable and accordingly 0.01% of the dividends paid from net investment income
during the tax period are attributable to this taxable income.
Since the Fund's fiscal year is not the calendar year, another notification will
be sent with respect to calendar year 2004. In January 2005, you will be advised
on IRS Form 1099 DIV as to the federal tax status of the dividends and
distributions received during calendar year 2004. The amount that will be
reported will be the amount to use on your 2004 federal income tax return and
may differ from the amount which must be reported in connection with the Fund's
tax year ended July 31, 2004. Shareholders are advised to consult with their tax
advisers as to the federal, state and local tax status of the income received
from the Funds. In January 2005, an allocation of interest by state will be
provided which may be of value in reducing a shareholder's state or local tax
liability, if any.
Notice to Shareholders (Unaudited)
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that from time to time the Fund may purchase,
at market prices, shares of its common stock in the open market.
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26
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
Privacy Policy
The privacy of your personal financial information is extremely important to us.
When you open an account with us, we collect a significant amount of information
from you in order to properly invest and administer your account. We take very
seriously the obligation to keep that information private and confidential, and
we want you to know how we protect that important information.
We collect nonpublic personal information about you from applications or other
forms you complete and from your transactions with us or our affiliates. We do
not disclose information about you, or our former clients, to our affiliates or
to service providers or other third parties, except as permitted by law. We
share only the minimum information required to properly administer your
accounts, which enables us to send transaction confirmations, monthly or
quarterly statements, financials and tax forms. Even within MBIA and its
affiliated entities, only a limited number of people who actually service
accounts will ever have access to your personal financial information. Further,
we do not share information about our current or former clients with any outside
marketing groups or sales entities.
To ensure the highest degree of security and confidentiality, MBIA and its
affiliates maintain various physical, electronic and procedural safeguards to
protect your personal information. We also apply special measures for
authentication of information you request or submit to us on our Web site-
www.mbiaclaymore.com.
MBIA Capital Management Corp.
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27 www.mbiaclaymore.com
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28
[BLANK PAGE]
FUND INFORMATION
BOARD OF TRUSTEES ADMINISTRATOR
Clifford D. Corso MBIA Municipal Investors
Nicholas Dalmaso Service Corporation
Mark Jurish 113 King Street
Ronald A. Nyberg Armonk, NY 10504
Jerry S. Rosenbloom
Ronald E. Toupin, Jr SERVICING AGENT
Claymore Securities, Inc.
OFFICERS Lisle, Illinois
Clifford D. Corso
PRESIDENT CUSTODIAN, TRANSFER AGENT AND
AUCTION AGENT
Michael R. Jacobson The Bank of New York
VICE PRESIDENT AND SECRETARY New York, New York
Marc D. Morris LEGAL COUNSEL
TREASURER Simpson Thacher & Bartlett LLP
New York, New York
INVESTMENT ADVISOR
MBIA Capital Management Corp.
113 King Street
Armonk, New York 10504
QUESTIONS CONCERNING YOUR SHARES OF
MBIA CAPITAL/CLAYMORE MANAGED DURATION INVESTMENT GRADE MUNICIPAL FUND
o If your shares are held in a Brokerage Account, contact your Broker.
o If you have physical possession of your shares in certificate form, contact
the Fund's Transfer Agent:
The Bank of New York
111 Sanders Creek Parkway
East Syracuse, NY 13057
800-701-8178
The Fund has adopted the Adviser's proxy voting policies and procedures to
govern the voting of proxies relating to the voting securities of the Fund. You
may obtain a copy of these proxy voting procedures, without charge, by calling
(866) 819-5301 or on the Securities and Exchange Commission website at
http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12 month period ended June 30 is available,
without charge, by calling (866) 819-5301 or on the SEC's website at
http://www.sec.gov.
This report is sent to shareholders of MBIA Capital/Claymore Managed Duration
Investment Grade Municipal Fund for their information. It is not a Prospectus,
circular or representation intended for use in the purchase or sale of shares of
the Fund or of any securities mentioned in this report.
MBIA Capital Management Corp.
113 King Street [LOGO OMITTED]
Armonk, New York 10504
ITEM 2: Code of Ethics
The Registrant has adopted a code of ethics (the "Code of Ethics") that applies
to its principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions. A
copy of the Registrant's Code of Ethics can be obtained without charge, upon
request, by calling the Registrant at 1-800-765-6242 x3320.
ITEM 3: Audit Committee Financial Expert
The Board of Trustees of the Registrant has determined that Jerry S. Rosenbloom,
the Chairman of the Registrant's Audit Committee, is an "audit committee
financial expert," and that he is "independent" for purposes of this Item. Under
applicable securities laws, a person who is determined to be an audit committee
financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933,
as a result of being designated or identified as an audit committee financial
expert. The designation or identification of a person as an audit committee
financial expert does not impose on such person any duties, obligations, or
liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees
in the absence of such designation or identification. In connection with his
directorships and audit committee memberships, as well as his academic and
teaching activities and his consulting activities for public and private
companies, Mr. Rosenbloom has developed an understanding of generally accepted
accounting principles, including accounting for estimates, accruals and
reserves. In addition, as a board member and/or audit committee member and
consultant, he has evaluated financial statements containing a breadth of level
of complexity of accounting issues comparable to those that may arise in the
Registrant's financial statements. Further, from his academic career and board
memberships, including audit committee memberships, he has developed an
understanding of internal controls and procedures for financial reporting, as
well as audit committee functions.
ITEM 4: Principal Accountant Fees and Services
The information required by Item 4 is herby incorporated by reference from the
Registrant's definitive proxy statement filed with the Securities and Exchange
Commission on September 29, 2004.
ITEM 5: Audit Committee of Listed Registrant.
The Registrant has a separately designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended. The audit committee of the Registrant is comprised of: Mark Jurish;
Ronald A. Nyberg; Jerry S. Rosenbloom; and Ronald E. Toupin, Jr.
ITEM 6: Schedule of Investments.
Schedule is included as part of the report to shareholders filed under Item 1 of
this form.
ITEM 7: Disclosure of Proxy Voting Policies and Procedures for Closed-
End Management Investment Companies.
The Board of Trustees of the Registrant has delegated the voting of proxies
relating to its voting securities to its investment advisor, MBIA Capital
Management Corp.(the "Advisor"). The Proxy Voting Policies and Procedures of the
Advisor (the "Proxy Voting Policies") are included as an Exhibit hereto.
ITEM 8: Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable
ITEM 9: Submission of Matters to a Vote of Security Holders
As of September 30, 2004, the Registrant has adopted a Nominating and Governance
Committee charter that sets forth procedures by which shareholders may recommend
nominees to the Registrant's Board of Trustees. The Registrant's Nominating and
Governance Committee will consider nominees to the Board of Trustees recommended
by shareholders when a vacancy becomes available. Shareholders who wish to
recommend a nominee should send nominations which include biographical
information and sets forth the qualifications of the proposed nominee to the
Registrant's Secretary. There have been no material changes to these procedures.
ITEM 10: CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded that the
Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing date of
the report that includes the disclosure required by this paragraph, based on
their evaluation of these controls and procedures required by Rule 30a-3(b)
under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under
the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the Registrant's last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 11: EXHIBITS.
(a)(1) Not applicable.
(a)(2) Separate certification for each principal executive and
principal financial officer of the Registrant as required by Rule 30a-2(a) under
the Act(17CFR270.30a-2(a))pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
(a)(3) Not applicable.
(a)(4) Proxy Voting Policies and Procedures.
(b) Certification of principal executive officer and principal
financial officer of the Registrant pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
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.
MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund
BY: /s/ Clifford D. Corso
---------------------
Clifford D. Corso
President
Date: September 30, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
BY: /s/ Clifford D. Corso
---------------------
Clifford D. Corso
President
(Principal Executive Officer)
Date: September 30, 2004
BY: /s/ Marc D. Morris
------------------
Marc D. Morris
Treasurer
(Principal Financial Officer)
Date: September 30, 2004