Report 
 
      
Registrant:   Colorado Bondshares – A Tax-Exempt Fund — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  9/30/98

Were there any Answer File errors in the Filing?  Not CheckedNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      810744
SEC File #:   811-05009

Telephone #:  303-572-6990
 
 2.
Address:      1200 17th Street, Suite 1150
              Denver, CO  80202
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  No
 
Custodian 
 
15.1
Role:         Custodian
 
15.4
Role:         Custodian
 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.3
Entity:       Btalex Brown Inc.
IRS #:        13-3311934
Registrant’s purchases ($000s):  2,600
Registrant’s sales ($000s):  6,200
 
22.4
Entity:       Bigelow & Co.
IRS #:        84-1305681
Registrant’s purchases ($000s):  3,525
 
22.5
Entity:       G.K. Baum & Co.
IRS #:        43-1661917
Registrant’s purchases ($000s):  991
 
22.6
Entity:       Hanifen Imhoff Inc.
IRS #:        84-0503513
Registrant’s purchases ($000s):  202
 
22.7
Entity:       Kirkpatrick Pettis
IRS #:        47-0301070
Registrant’s purchases ($000s):  10,097
Registrant’s sales ($000s):  24
 
22.8
Entity:       Wm. Blair & Co.
IRS #:        36-2214610
Registrant’s purchases ($000s):  3,892
 
22.9
Entity:       US Bank
IRS #:        84-1019337
Registrant’s purchases ($000s):  6,399
Registrant’s sales ($000s):  3,225
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  27,707
   Aggregate sales ($000s):  9,449
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  Yes, Open-End
 
Sales and Repurchases 
 
28.
Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
 
1st Month of period:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 864
      Reinvestment of dividends and distributions ................
 257
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 842
2nd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 629
      Reinvestment of dividends and distributions ................
 259
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 396
3rd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,319
      Reinvestment of dividends and distributions ................
 266
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 569
4th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 2,726
      Reinvestment of dividends and distributions ................
 260
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 176
5th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 2,529
      Reinvestment of dividends and distributions ................
 259
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 3,730
6th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,355
      Reinvestment of dividends and distributions ................
 275
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 175

Total of all months:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 9,422
      Reinvestment of dividends and distributions ................
 1,576
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 5,888

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s):  6,040
 
Sales Load (Front-End or Deferred) and Fees (Redemption or Maintenance) 
 
30.
Total front-end sales loads collected from sales (including exchanges)
by Principal Underwriter or by any underwriter which is an affiliated
person of the Principal Underwriter, of the Registrant’s/Series’ shares
during the period ($000s):  175

The maximum sales load rate in effect at period end as a percentage of
the offering price:  4.75%
The minimum sales load rate in effect at period end as a percentage of
the offering price:  0.2%
 
31.
Net amount retained by the Registrant’s/Series’ Principal Underwriter or
by any underwriter or dealer which is an affiliated person of the
Principal Underwriter thereof from front-end sales loads collected from
sales of the Registrant’s/Series’ shares during the period ($000s):  22

Amount by which payout by the Registrant’s/Series’ Principal Underwriter
or by any underwriter which is an affiliated person of the Principal
Underwriter thereof to persons or entities selling the
Registrant’s/Series’ shares exceeded that reported in Item 30 ($000s):  0
 
32.
Amount the Registrant’s/Series’ Principal Underwriter and any
underwriters or dealers which are affiliated persons of the Principal
Underwriter paid to dealers which are not affiliated persons of the
Principal Underwriter for selling the Registrant’s/Series’ shares that
were sold with a front-end sales load during the period ($000s):  138
 
33.
Amount paid to a captive retail sales force of the Registrant’s/Series’
Principal Underwriter or of any underwriter or dealer which is an
affiliated person of the Principal Underwriter for selling the
Registrant’s shares that were sold with a front-end sales load during
the period ($000s):  15
 
35.
Total deferred or contingent deferred sales loads collected during the
period from redemptions and repurchases of the Registrant’s/Series’
shares ($000s):  0
 
36.

The net amount the Registrant/Series retained from deferred or
contingent deferred sales loads ($000s):  0
 
38.
Total amount of redemption fees other than deferred or contingent
deferred sales loads collected from redemptions and repurchases of the
Registrant’s/Series’ shares during the period ($000s):  0
 
Payment Plan for the Distribution of Fund Shares 
 
42.
For the period, the percentage of total dollars paid directly by the
Registrant/Series under the 12b-1 plan for each of the following:

Percentage of Total Amount Paid  (%)
Advertising ............................................................
 –
Printing & mailing of prospectuses to other than current shareholders ..
 –
Payments to underwriters ...............................................
 –
Payments to brokers or dealers .........................................
 –
Direct payments to sales personnel .....................................
 –
Payments to banks and savings & loans ..................................
 –
Other uses, including payments to its Investment Adviser separate
  from the advisory fee ................................................
 –
Unallocated payments made for a combination of such services ...........
 –
 
43.
Total amount paid directly by the Registrant/Series pursuant to its
12b-1 plan ($000s):  0
 
44.
If an Investment Adviser or other affiliated person of the
Registrant/Series made unreimbursed payments pursuant to the 12b-1 plan,
the total amount of such payments ($000s):  0
 
Advisory Fee 
 
48.
Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
    Single-fee rate:  0.0%
    Step-fee rates:
      For 1st $000s:  0
        Annual rate:  0.0%
 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  No
 
Classification and Asset Allocation 
 
61.
The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity:  $500
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................      0.0
Repurchase agreements .......................      0.0
State and Municipal – tax-free ..............    17.6
Bank certificates of deposit – domestic .....      0.0
Bank certificates of deposit – foreign ......      0.0
Bankers acceptances .........................      0.0
Commercial paper – taxable ..................      0.0
Time deposits ...............................      0.0
Options .....................................      0.0
All other ...................................      1.3

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................      0.0
State and Municipal – tax-free ..............    81.1
Corporate ...................................      0.0
All other ...................................      0.0

Non-Debt
Investments other than debt securities ......      0.0%
 
63.
The dollar-weighted average portfolio maturity at period end in days or,
if longer than one year, in years (to one decimal place):
    Days:     0
    Years:    8.1
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  No
 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  26,758
Sales ($000s):      18,782

Monthly average Value of portfolio ($000s):  66,123

Percent turnover (lesser of Purchases or Sales, divided by Value):  29%
 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12

Income  ($000s)
Net interest income ..............................................
 5,099
Net dividend income ..............................................
 –
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 345
Administrator fees ...............................................
 –
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 38
Custodian fees ...................................................
 –
Postage ..........................................................
 –
Printing expenses ................................................
 30
Directors’ fees ..................................................
 –
Registration fees ................................................
 2
Taxes ............................................................
 –
Interest .........................................................
 –
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 23
Legal fees .......................................................
 13
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 7
Total expenses ...................................................
 458

Expense reimbursements ($000s):   0

Net investment income ($000s):    4,641

Realized capital gains ($000s):   294
Realized capital losses ($000s):  8

Net unrealized appreciation during the period ($000s):  188
Net unrealized depreciation during the period ($000s):  0

Total income dividends for which the record date passed during the
period ($000s):  4,662

Total capital gains distributions for which the record date passed
during the period ($000s):  0
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.6200

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 321
Repurchase agreements ............................................
 –
Short-term debt securities, other than repurchase agreements .....
 12,899
Long-term debt securities, including convertible debt ............
 59,280
Preferred, conv. preferred and adjustable-rate preferred stock ...
 –
Common stock .....................................................
 –
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 –
Receivables from portfolio instruments sold ......................
 –
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 1,596
All other assets .................................................
 –
Total assets .....................................................
 74,096

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 700
Amounts owed to affiliated persons ...............................
 –
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 –
  Written options ................................................
 –
  All other liabilities ..........................................
 288

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 73,108

Number of shares outstanding (000s):   7,583

Net Asset Value (NAV) per share (to nearest cent):  $9.64

Total number of shareholder accounts:  1,304

Total value of assets in segregated accounts ($000s):  2,354
 
75.
Monthly average net assets during the period ($000s):  69,115
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77G:  Defaults or Arrears on Senior Securities?  Yes

EX-99.77Q1: Other Disclosure?  Yes
 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      United States Fidelity & Guaranty Co.

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  400
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  No
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  Yes

The amount of the deductible ($000s):  10
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      Fred R. Kelly, Jr.      
Name:   Fred R. Kelly, Jr.
Title:  Portfolio Manager