Document/Exhibit Description Pages Size
1: 485BPOS Post-Effective Amendment 239± 1.00M
2: EX-99.A CHARTER Miscellaneous Exhibit 2± 11K
3: EX-99.B BYLAWS Miscellaneous Exhibit 11± 45K
4: EX-99.E UNDR CONTR Miscellaneous Exhibit 12± 57K
5: EX-99.E UNDR CONTR Miscellaneous Exhibit 29± 98K
6: EX-99.H OTH MAT CONT Miscellaneous Exhibit 6± 29K
7: EX-99.I LEGAL OPININ Miscellaneous Exhibit 1 10K
8: EX-99.J OTHER OPININ Miscellaneous Exhibit 1 6K
9: EX-99.N 18F-3 PLAN Miscellaneous Exhibit 4± 20K
10: EX-99.P CODE ETH Miscellaneous Exhibit 7± 27K
SEC. FILE NOS. 33-80630
811-8576
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 13
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 15
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND, INC.
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(213) 486-9200
JULIE F. WILLIAMS, SECRETARY
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND, INC.
333 SOUTH HOPE STREET
LOS ANGELES, CALIFORNIA 90071
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Copies to:
ROBERT E. CARLSON, ESQ.
PAUL, HASTINGS, JANOFSKY & WALKER LLP
555 S. FLOWER STREET
LOS ANGELES, CA 90071-2371
(COUNSEL FOR THE REGISTRANT)
Approximate date of proposed public offering:
It is proposed that this filing will become effective on July 15, 2002,
pursuant to paragraph (b) of rule 485.
THE TAX-EXEMPT BOND FUND OF AMERICA(R)
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND(SM)
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA(SM)
SUPPLEMENT TO PROSPECTUS DATED
July 15, 2002
Beginning July 15, 2002, Class R-5 shares of the American
Funds listed above will be available to certain clients of the
Personal Investment Management Group of Capital Guardian
Trust Company. Accordingly, the prospectus for these funds
is supplemented as follows:
FEES AND EXPENSES OF THE FUNDS - pages 6-7
Shareholder Fees (paid directly from your investment)
Class R-5
Maximum sales charge imposed on purchases
(as a percentage of offering price) none
Maximum sales charge imposed on reinvested dividends none
Maximum deferred sales charge none
Redemption or exchange fees none
Annual Fund Operating Expenses (deducted from fund assets)
Class R-5/1/
THE TAX-EXEMPT BOND FUND OF AMERICA
Management Fees 0.35%
Distribution and/or Service (12b-1) Fees none
Other Expenses 0.14%
Total Annual Fund Operating Expenses 0.49%
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
Management Fees 0.41%
Distribution and/or Service (12b-1) Fees none
Other Expenses 0.18%
Total Annual Fund Operating Expenses 0.59%
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
Management Fees 0.38%
Distribution and/or Service (12b-1) Fees none
Other Expenses 0.21%
Total Annual Fund Operating Expenses 0.59%
/1/ Based on estimated amounts for the current fiscal year.
Example
The examples below are intended to help you compare the cost of
investing in the funds with the cost of investing in other mutual
funds. The examples assume that you invest $10,000 in each fund for
the time periods indicated, that your investment has a 5% return
each year, that all dividend and capital gain distributions are
reinvested, and that each fund's operating expenses remain the same
as shown on the previous page. Although your actual costs may be
higher or lower, based on these assumptions, your cumulative
estimated expenses would be:
One Year Three Years Five Years Ten Years
THE TAX-EXEMPT BOND FUND OF AMERICA
Class R-5 $50 $157 $274 $616
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
Class R-5 $60 $189 $329 $738
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
Class R-5 $60 $189 $329 $738
PURCHASE AND EXCHANGE OF SHARES - pages 17-18
Class R-5 Shares
Class R-5 shares of the funds are only available to certain clients of
the Personal Investment Management Group of Capital Guardian Trust
Company. Please contact Capital Guardian Trust Company if you wish
to purchase Class R-5 shares of the funds.
SALES CHARGES - pages 18-19
Class R-5 Shares
Class R-5 shares are sold with no initial or deferred sales charges.
In addition, no dealer compensation is paid on sales of Class R-5
shares.
The Tax-Exempt Bond Fund of America/(R)/
American High-Income Municipal Bond Fund/SM/
Limited Term Tax-Exempt Bond Fund of America/SM/
Prospectus
[Download Table]
TABLE OF CONTENTS
------------------------------------------------------
1 Risk/Return Summary
------------------------------------------------------
6 Fees and Expenses of the Funds
------------------------------------------------------
8 Investment Objectives, Strategies and Risks
------------------------------------------------------
12 Management and Organization
------------------------------------------------------
14 Shareholder Information
------------------------------------------------------
15 Choosing a Share Class
------------------------------------------------------
17 Purchase and Exchange of Shares
------------------------------------------------------
18 Sales Charges
------------------------------------------------------
20 Sales Charge Reductions and Waivers
------------------------------------------------------
21 Plans of Distribution
------------------------------------------------------
22 How to Sell Shares
------------------------------------------------------
23 Distributions and Taxes
------------------------------------------------------
24 Financial Highlights
------------------------------------------------------
JULY 15, 2002
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED
OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT
DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
RISK/RETURN SUMMARY
The funds seek to provide you with high current income that is exempt from
regular federal income tax by investing primarily in municipal bonds. The
Tax-Exempt Bond Fund of America invests primarily in municipal bonds rated A or
better, but may invest in lower quality municipal bonds. American High-Income
Municipal Bond Fund invests a substantial portion of its portfolio in lower
quality municipal bonds. Limited Term Tax-Exempt Bond Fund invests primarily
in municipal bonds with average effective maturities between 3 and 10 years and
with quality ratings of A or better, but may also invest significantly in bonds
rated Baa or BBB. The funds emphasize undervalued but fundamentally sound
investments in municipal obligations, including those issued to finance roads,
schools, hospitals, airports and other public needs. Municipalities include
counties, cities, towns, and various regional or special districts.
The funds are designed for investors seeking a high level of current income
exempt from federal income tax and, in the case of American High-Income
Municipal Bond Fund, investors who are able to tolerate greater credit risk and
price fluctuations than funds investing in higher quality bonds. An investment
in the funds is subject to risks, including the possibility that a fund's
income and
the value of its investments may fluctuate in response to economic, political
or social events in the U.S. or abroad. The values of debt securities may be
affected by changing interest rates and credit risk assessments. Lower quality
or longer maturity bonds may be subject to greater price fluctuations than
higher quality or shorter maturity bonds.
Your investment in the funds is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.
YOU MAY LOSE MONEY BY INVESTING IN THE FUNDS. THE LIKELIHOOD OF LOSS IS GREATER
IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
1
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
HISTORICAL INVESTMENT RESULTS
The following information provides some indication of the risks of investing in
the funds by showing changes in the funds' investment results from year to year
and by showing how the funds' average annual total returns for various periods
compare with those of a broad measure of market performance. Past results are
not an indication of future results.
Unlike the bar charts, the investment results tables reflect each fund's
investment results with the maximum initial or deferred sales charge deducted,
as required by Securities and Exchange Commission rules. Class A share results
are shown with the maximum initial sales charge of 3.75% deducted. Sales
charges are reduced for purchases of $100,000 or more. Results would be higher
if they were calculated at net asset value. All fund results reflect the
reinvestment of dividend and capital gain distributions.
Since the funds' Class B shares began investment operations on March 15, 2000
and Class C and F shares began investment operations on March 15, 2001,
comparable results are not available for the 2000 calendar year.
2
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
THE TAX-EXEMPT BOND FUND OF AMERICA
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would be
lower.)
[bar chart]
1992 9.03%
1993 11.72
1994 -4.82
1995 17.28
1996 4.57
1997 8.98
1998 6.04
1999 -2.32
2000 9.69
2001 5.57
[end bar chart]
Highest/lowest quarterly results during this time period were:
[Download Table]
HIGHEST 6.87% (quarter ended March 31, 1995)
LOWEST -4.93% (quarter ended March 31, 1994)
The year-to-date result was 4.36% for the six months ended June 30, 2002.
[Download Table]
INVESTMENT RESULTS TABLE (WITH SALES CHARGES IMPOSED)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2001
------------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS LIFETIME
Class A - began 10/3/79
------------------------------------------------------------------------------
Before Taxes 1.58% 4.70% 5.98% 7.76%
------------------------------------------------------------------------------
After Taxes on Distributions 1.51% 4.59% 5.85% -
------------------------------------------------------------------------------
After Taxes on Distributions and 2.89% 4.75% 5.85% -
Sale of Fund Shares
------------------------------------------------------------------------------
Class B - began 3/15/00
------------------------------------------------------------------------------
Before Taxes -0.19% - - 4.98%
------------------------------------------------------------------------------
Indexes
------------------------------------------------------------------------------
Lehman Municipal Bond Index/1/ 5.13% 5.98% 6.63% N/A
------------------------------------------------------------------------------
Lipper General 3.90% 4.79% 5.86% 7.86%
Municipal Debt Average/2/
------------------------------------------------------------------------------
Class A 30-day yield at December 31, 2001: 4.07%
(For current yield information, please call American FundsLine at
1-800-325-3590.)
------------------------------------------------------------------------------
1 The Lehman Brothers Municipal Bond Index represents the national investment
grade municipal bond market. This index is unmanaged and does not reflect
sales charges, commissions or expenses. This index was not in existence as of
the date the fund's Class A shares began investment operations, therefore,
lifetime results are not available.
2 The Lipper General Municipal Debt Funds Average represent funds that invest
at least 65% of assets in municipal debt issues in the top four rating
categories. The results of the underlying funds in the average include the
reinvestment of dividend and capital gain distributions and brokerage
commissions paid by the funds for portfolio transactions, but do not reflect
sales charges.
3
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would be
lower.)
[bar chart]
1995 19.05%
1996 6.45
1997 10.37
1998 4.89
1999 -2.31
2000 7.31
2001 6.22
[end bar chart]
Highest/lowest quarterly results during this time period were:
[Download Table]
HIGHEST 7.46% (quarter ended March 31, 1995)
LOWEST -1.40% (quarter ended December 31, 1999)
The year-to-date result was 3.90% for the six months ended June 30, 2002.
[Download Table]
INVESTMENT RESULTS TABLE (WITH SALES CHARGES IMPOSED)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2001
------------------------------------------------------------------------------
ONE YEAR FIVE YEARS LIFETIME
Class A - began 9/26/94
------------------------------------------------------------------------------
Before Taxes 2.26% 4.41% 6.41%
------------------------------------------------------------------------------
After Taxes on Distributions 2.26% 4.36% 6.24%
------------------------------------------------------------------------------
After Taxes on Distributions and Sale of 3.54% 4.59% 6.23%
Fund Shares
------------------------------------------------------------------------------
Class B - began 3/15/00
------------------------------------------------------------------------------
Before Taxes 0.50% - 4.33%
------------------------------------------------------------------------------
Indexes
------------------------------------------------------------------------------
Lehman Municipal Bond Index/1/ 5.13% 5.98% 6.84%
------------------------------------------------------------------------------
Lipper High Yield Municipal Debt Average/2/ 4.95% 3.83% 5.15%
------------------------------------------------------------------------------
Class A 30-day yield at December 31, 2001: 5.15%
(For current yield information, please call American FundsLine at
1-800-325-3590.)
------------------------------------------------------------------------------
1 The Lehman Brothers Municipal Bond Index represents the national investment
grade municipal bond market. This index is unmanaged and does not reflect
sales charges, commissions or expenses.
2 The Lipper High Yield Municipal Debt Funds Average represents an average of
funds in the objective that invest at least 50% of their assets in lower rated
municipal debt issues. The results of the underlying funds in the average
include the reinvestment of dividend and capital gain distributions and
brokerage commissions paid by the funds for portfolio transactions, but do not
reflect sales charges.
4
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would be
lower.)
[bar chart]
1994 -2.90%
1995 12.35
1996 4.46
1997 7.30
1998 5.50
1999 -0.60
2000 7.45
2001 5.24
[end bar chart]
Highest/lowest quarterly results during this time period were:
[Download Table]
HIGHEST 4.38% (quarter ended March 31, 1995)
LOWEST -3.44% (quarter ended March 31, 1994)
The year-to-date result was 3.93% for the six months ended June 30, 2002.
[Download Table]
INVESTMENT RESULTS TABLE (WITH SALES CHARGES IMPOSED)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2001
------------------------------------------------------------------------------
ONE YEAR FIVE YEARS LIFETIME
Class A - began 10/6/93
------------------------------------------------------------------------------
Before Taxes 1.31% 4.14% 4.56%
------------------------------------------------------------------------------
After Taxes on Distributions 1.31% 4.14% 4.56%
------------------------------------------------------------------------------
After Taxes on Distributions and Sale of 2.38% 4.17% 4.54%
Fund Shares
------------------------------------------------------------------------------
Class B - began 3/15/00
------------------------------------------------------------------------------
Before Taxes -0.63% - 3.82%
------------------------------------------------------------------------------
Indexes
------------------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index/1/ 5.18% 5.55% 5.35%
------------------------------------------------------------------------------
Lipper Intermediate Municipal Debt 4.53% 4.83% 4.77%
Average/2/
------------------------------------------------------------------------------
Class A 30-day yield at December 31, 2001: 3.47%
(For current yield information, please call American FundsLine at
1-800-325-3590.)
------------------------------------------------------------------------------
1 The Lehman Brothers 7-Year Municipal Bond Index represents the national
investment grade municipal bond market. This index is unmanaged and does not
reflect sales charges, commissions or expenses.
2 The Lipper Intermediate Municipal Debt Funds Average is comprised of funds
that invest in municipal debt issues with dollar-weighted average maturities
of five to ten years. The results of the underlying funds in the average
include the reinvestment of dividend and capital gain distributions and
brokerage commissions paid by the funds for portfolio transactions, but do not
reflect sales charges.
5
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
FEES AND EXPENSES OF THE FUNDS
SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)
[Enlarge/Download Table]
CLASS A CLASS B CLASS C CLASS F
-----------------------------------------------------------------------------------------------
Maximum sales charge imposed on purchases (as a 3.75 %/1/ none none none
percentage of offering price)
-----------------------------------------------------------------------------------------------
Maximum sales charge imposed on reinvested none none none none
dividends
-----------------------------------------------------------------------------------------------
Maximum deferred sales charge none/2/ 5.00%/3/ 1.00%/4/ none
-----------------------------------------------------------------------------------------------
Redemption or exchange fees none none none none
-----------------------------------------------------------------------------------------------
1 Sales charges are reduced or eliminated for purchases of $100,000 or more.
2 A contingent deferred sales charge of 1% applies on certain redemptions made
within 12 months following purchases of $1 million or more made without a
sales charge.
3 Deferred sales charges are reduced after 12 months and eliminated after six
years.
4 Deferred sales charge is eliminated after 12 months.
[Download Table]
ANNUAL FUND OPERATING EXPENSES (DEDUCTED FROM FUND ASSETS)
------------------------------------------------------------------------------
CLASS A CLASS B CLASS C/1/ CLASS F/1/
------------------------------------------------------------------------------
THE TAX-EXEMPT BOND FUND OF AMERICA
------------------------------------------------------------------------------
Management Fees 0.35% 0.35% 0.35% 0.35%
Distribution and/or Service
(12b-1) Fees/2/ 0.25% 1.00% 1.00% 0.25%
Other Expenses 0.06% 0.05% 0.20% 0.19%
Total Annual Fund Operating
Expenses 0.66% 1.40% 1.55% 0.79%
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
------------------------------------------------------------------------------
Management Fees 0.41% 0.41% 0.41% 0.41%
Distribution and/or Service
(12b-1) Fees/3/ 0.30% 1.00% 1.00% 0.25%
Other Expenses 0.09% 0.07% 0.21% 0.21%
Total Annual Fund Operating
Expenses 0.80% 1.48% 1.62% 0.87%
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
------------------------------------------------------------------------------
Management Fees 0.38% 0.38% 0.38% 0.38%
Distribution and/or Service
(12b-1) Fees/3/ 0.30% 1.00% 1.00% 0.25%
Other Expenses 0.12% 0.21% 0.24% 0.24%
Total Annual Fund Operating
Expenses 0.80% 1.59% 1.62% 0.87%
Expense Reimbursement/4/ 0.05% N/A N/A N/A
Net Expenses 0.75% 1.59% 1.62% 0.87%
------------------------------------------------------------------------------
1 Based on estimated amounts for the current fiscal year.
2 Class A and F 12b-1 fees may not exceed 0.25% and 0.50%, respectively, of the
class' average net assets annually.
3 Class A and F 12b-1 fees may not exceed 0.30% and 0.50%, respectively, of the
class' average net assets annually.
4 During the year, Capital Research and Management Company paid certain
expenses of the fund to ensure the expense ratio of the Class A shares did not
exceed 0.75% of average net assets annually. Under certain circumstances, as
described in the statement of additional information, the fund may be required
to repay amounts waived.
6
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
EXAMPLE
The examples below are intended to help you compare the cost of investing in
the funds with the cost of investing in other mutual funds. The examples assume
that you invest $10,000 in each fund for the time periods indicated, that your
investment has a 5% return each year and that each fund's operating expenses
remain the same as shown above. The "Class A" example reflects the maximum
initial sales charge in the first year. The "Class B- and Class C-assuming
redemption" examples reflect applicable contingent deferred sales charges
through six years and one year, respectively (after which times they are
eliminated). The examples do not include fees charged by financial
intermediaries, typically applicable mainly to Class F shares. Both Class B
examples reflect Class A expenses for years 9 and 10 since Class B shares
automatically convert to Class A after eight years. Although your actual costs
may be higher or lower, based on these assumptions, your cumulative expenses
would be:
[Download Table]
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
------------------------------------------------------------------------------
THE TAX-EXEMPT BOND FUND OF AMERICA
------------------------------------------------------------------------------
Class A $440 $578 $ 729 $1,167
------------------------------------------------------------------------------
Class B - assuming redemption $643 $843 $ 966 $1,477
Class B - assuming no $143 $443 $ 766 $1,477
redemption
------------------------------------------------------------------------------
Class C - assuming redemption $258 $490 $ 845 $1,845
Class C - assuming no $158 $490 $ 845 $1,845
redemption
------------------------------------------------------------------------------
Class F - excludes $ 81 $252 $ 439 $ 978
intermediary fees/*/
------------------------------------------------------------------------------
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
------------------------------------------------------------------------------
Class A $454 $621 $ 803 $1,328
------------------------------------------------------------------------------
Class B - assuming redemption $651 $868 $1,008 $1,584
Class B - assuming no $151 $468 $ 808 $1,584
redemption
------------------------------------------------------------------------------
Class C - assuming redemption $265 $511 $ 881 $1,922
Class C - assuming no $165 $511 $ 881 $1,922
redemption
------------------------------------------------------------------------------
Class F - excludes $ 89 $278 $ 482 $1,073
intermediary fees/*/
------------------------------------------------------------------------------
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
------------------------------------------------------------------------------
Class A/**/ $454 $621 $ 803 $1,328
------------------------------------------------------------------------------
Class B - assuming redemption $662 $902 $1,066 $1,677
Class B - assuming no $162 $502 $ 866 $1,677
redemption
------------------------------------------------------------------------------
Class C - assuming redemption $265 $511 $ 881 $1,922
Class C - assuming no $165 $511 $ 881 $1,922
redemption
------------------------------------------------------------------------------
Class F - excludes $ 89 $278 $ 482 $1,073
intermediary fees/*/
------------------------------------------------------------------------------
* Fees charged by financial intermediaries are independent of fund expenses and
will increase the overall cost of your investment. Intermediary fees
typically range from 0.50% to 3.00% of assets annually depending on services
offered.
/** // /Does not reflect expense reimbursement.
7
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
THE TAX-EXEMPT BOND FUND OF AMERICA
The fund's investment objective is to provide you with a high level of current
income exempt from federal income tax, consistent with the preservation of
capital. It seeks to achieve this objective by investing primarily in
municipal bonds, including lower quality bonds.
Normally, the fund will invest at least 80% of its assets in securities exempt
from regular federal income tax. The fund will not invest in securities subject
to alternative minimum tax. The fund will invest at least 65% of its assets in
debt securities rated A or better. The fund may also invest up to 35% of its
assets in debt securities rated Baa or BBB or below by Moody's Investors
Service, Inc. or Standard & Poor's Corporation or unrated but determined to be
of equivalent quality (however, no more than 20% of its assets may be invested
in debt securities rated Ba and BB or below).
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
The fund's investment objective is to provide you with a high level of current
income exempt from regular federal income tax. In seeking to achieve its
objective, the fund may forego opportunities that would result in capital gains
and may accept prudent risks to capital value, in each case to take advantage
of opportunities for higher current income.
Normally, the fund will invest at least 80% of its assets in securities exempt
from regular federal income tax. The fund may invest, without limit, in
securities that may subject you to federal alternative minimum taxes;
therefore, while the
fund's distributions from tax-exempt securities are not subject to regular
federal
income tax, a portion or all may be included in determining a shareholder's
federal alternative minimum tax. The fund invests primarily in municipal bonds
and will invest at least 50% of its assets in lower quality debt securities
(rated Baa or BBB or below or unrated but determined to be of equivalent
quality).
In addition, the fund may invest significantly in municipal obligations of
issuers in the same state or of similar project type. This may make the fund
more susceptible to certain economic, political or regulatory occurrences. As a
result, the potential for fluctuations in the fund's share price may increase.
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
The fund's investment objective is to provide you with current income that is
exempt from regular federal income tax, consistent with its stated maturity and
quality standards and preservation of capital. The fund invests primarily in
municipal bonds with average effective maturities between 3 and 10 years and
with quality ratings of A or better.
8
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
Normally, the fund will invest at least 80% of its assets in securities exempt
from regular federal income tax. The fund may invest up to 20% of its assets in
securities that may subject you to federal alternative minimum taxes;
therefore, while
the fund's distributions from tax-exempt securities are not subject to regular
federal income tax, a portion or all may be included in determining a share
holder's federal alternative minimum tax. The fund may also invest
significantly in municipal bonds rated Baa or BBB or unrated but determined to
be of equivalent quality.
* * *
Municipal bonds are debt obligations generally issued to obtain funds for
various public purposes, including the construction of public facilities. The
values of and the income generated by most debt securities held by the funds
may be affected by changing interest rates and individual securities by changes
in their effective maturities and credit ratings. For example, as with other
debt securities, the values of bonds in each fund's portfolio generally will
decline when interest rates rise and vice versa. In addition, falling interest
rates may cause an issuer to redeem or "call" a security before its stated
maturity, which may result in the fund having to reinvest the proceeds in lower
yielding securities. Debt securities are also subject to credit risk, which is
the possibility that the credit strength of an issuer will weaken and/or an
issuer of a debt security will fail to make timely payments of principal or
interest and the security will go into default. Lower quality or longer
maturity securities generally have higher rates of interest but may be subject
to greater price fluctuations than higher quality or shorter maturity
securities. See the Appendix in the statement of additional information for
credit rating descriptions.
A bond's effective maturity is the market's trading assessment of its maturity
and represents an estimate of the most likely time period an investor in that
bond will receive payment of principal. For example, as market interest rates
decline, issuers may exercise call provisions which acts to shorten the bond's
effective maturity. Conversely, if interest rates rise, effective maturities
tend to lengthen. The average effective maturity is the market-weighted
average (i.e., more weight is given to larger holdings) of all effective
maturities in the portfolio.
The funds' investment adviser attempts to reduce these risks through
diversification of the portfolio and with ongoing credit analysis of each
issuer, as well as by monitoring economic and legislative developments.
The funds may also hold cash, money market instruments or taxable debt secu
rities. The size of each fund's cash position will vary and will depend on
various factors, including market conditions and purchases and redemptions of
fund shares. A larger cash position could detract from the achievement of each
fund's
objective in a period of rising market prices, but it also could reduce the
fund's exposure in the event of a market downturn and provide liquidity to make
additional investments or to meet redemptions.
9
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
Each fund relies on the professional judgment of its investment adviser,
Capital Research and Management Company, to make decisions about each fund's
portfolio investments. The basic investment philosophy of the investment
adviser is to seek undervalued securities that represent above average
long-term opportunities. Securities may be sold when the investment adviser
believes they no longer represent good long-term value.
ADDITIONAL INVESTMENT RESULTS
Unlike the investment results tables shown on an earlier page, the tables below
reflect each fund's results calculated without a sales charge.
[Download Table]
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2000:
ONE YEAR FIVE YEARS TEN YEARS LIFETIME
Class A - began
10/3/79
(with no sales charge 9.69% 5.30% 6.95% 8.06%
imposed)
-------------------------------------------------------------------------------
Lehman Municipal Bond 11.68% 5.84% 7.32% N/A
Index/1/
-------------------------------------------------------------------------------
Lipper General
Municipal Debt 10.83% 4.66% 6.68% 8.05%
Average/2/
-------------------------------------------------------------------------------
Class A distribution rate/3/: 5.20%
(For current distribution rate information, please call American FundsLine at
1-800-325-3590.)
-------------------------------------------------------------------------------
THE TAX-EXEMPT BOND FUND OF AMERICA
1 The Lehman Brothers Municipal Bond Index represents the national investment
grade municipal bond market. This index is unmanaged and does not reflect
sales charges, commissions or expenses. This index was not in existence as of
the date the fund's Class A shares began investment operations, therefore,
lifetime results are not available.
2 The Lipper General Municipal Debt Funds Average represent funds that invest
at least 65% of assets in municipal debt issues in the top four rating
categories. The results of the underlying funds in the average include the
reinvestment of dividend and capital gain distributions and brokerage
commissions paid by the funds for portfolio transactions, but do not reflect
sales charges.
3 The distribution rate represents actual distributions paid by the fund. It
was calculated at net asset value by annualizing dividends paid by the fund
over one month and dividing that number by the fund's average net asset value
for the month.
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
[Download Table]
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2000:
------------------------------------------------------------------------------
ONE YEAR FIVE YEARS LIFETIME
Class A - began 9/26/94
(with no sales charge 7.31% 5.25% 7.10%
imposed)
------------------------------------------------------------------------------
Lehman Municipal Bond 11.68% 5.84% 7.11%
Index/1/
------------------------------------------------------------------------------
Lipper High Yield Municipal 3.08% 3.83% 5.25%
Debt Average/2/
------------------------------------------------------------------------------
Class A distribution rate/3/: 5.50%
(For current distribution rate information, please call American FundsLine
at 1-800-325-3590.)
------------------------------------------------------------------------------
1 The Lehman Brothers Municipal Bond Index represents the national investment
grade municipal bond market. This index is unmanaged and does not reflect
sales charges, commissions or expenses.
2 The Lipper High Yield Municipal Debt Funds Average represents an average of
funds in the objective that invest at least 50% of their assets in lower rated
municipal debt issues. The results of the underlying funds in the average
include the reinvestment of dividend and capital gain distributions and
brokerage commissions paid by the funds for portfolio transactions, but do not
reflect sales charges.
3 The distribution rate represents actual distributions paid by the fund. It
was calculated at net asset value by annualizing dividends paid by the fund
over one month and dividing that number by the fund's average net asset value
for the month.
10
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
[Download Table]
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2000:
------------------------------------------------------------------------------
ONE YEAR FIVE YEARS LIFETIME
Class A - began 10/6/93
(with no sales charge 7.45% 4.78% 5.02%
imposed)
------------------------------------------------------------------------------
Lehman 7-Year Municipal Bond 9.07% 5.39% 5.37%
Index/1/
------------------------------------------------------------------------------
Lipper Intermediate Municipal 8.55% 4.67% 4.78%
Debt Average/2/
------------------------------------------------------------------------------
Class A distribution rate/3/: 4.21%
(For current distribution rate information, please call American FundsLine
at 1-800-325-3590.)
------------------------------------------------------------------------------
1 The Lehman Brothers 7-Year Municipal Bond Index represents the national
investment grade municipal bond market. This index is unmanaged and does not
reflect sales charges, commissions or expenses.
2 The Lipper Intermediate Municipal Debt Funds Average is comprised of funds
that invest in municipal debt issues with dollar-weighted average maturities
of five to ten years. The results of the underlying funds in the average
include the reinvestment of dividend and capital gain distributions and
brokerage commissions paid by the funds for portfolio transactions, but do not
reflect sales charges.
3 The distribution rate represents actual distributions paid by the fund. It
was calculated at net asset value by annualizing dividends paid by the fund
over one month and dividing that number by the fund's average net asset value
for the month.
11
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
MANAGEMENT AND ORGANIZATION
INVESTMENT ADVISER
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the funds and
other funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio and business
affairs of the funds. The total management fees paid by the funds, as a
percentage of average net assets, for the previous fiscal year appears earlier
under "Fees and Expenses of the Funds."
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments managed by individual counselors. Counselors
decide how their respective segments will be invested, within the limits
provided by a fund's objective(s) and policies and by Capital Research and
Management Company's investment committee. In addition, Capital Research and
Management Company's research professionals may make investment decisions with
respect to a portion of a fund's portfolio. The primary individual portfolio
counselors for The Tax-Exempt Bond Fund of America, American High-Income
Municipal Bond Fund, and Limited Term Tax-Exempt Bond Fund of America are:
12
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Enlarge/Download Table]
PORTFOLIO COUNSELOR/ FUND PORTFOLIO COUNSELOR PRIMARY TITLE WITH INVESTMENT ADVISER
TITLE (IF APPLICABLE) EXPERIENCE (OR AFFILIATE) AND INVESTMENT EXPERIENCE
----------------------------------------------------------------------------------------------------------------
BRENDA S. ELLERIN 3 years Senior Vice President and Director, Capital
(plus 6 years prior experience Research Company
Senior Vice President, as a research professional) for
Tax-Exempt Bond Fund of Tax-Exempt Bond Fund of America Investment professional for 12 years in total;
America and Limited Term 10 years with Capital Research and
Tax-Exempt Bond Fund; 3 years Management Company or affiliate
Vice President, American (plus 4 years prior experience
High-Income Municipal Bond as a research professional) for
Fund American High-Income Municipal
Bond Fund
5 years for Limited Term
Tax-Exempt Bond Fund
----------------------------------------------------------------------------------------------------------------
DAVID A. HOAG 3 years Senior Vice President, Capital Research
(plus 6 years prior experience Company
Senior Vice President, as a research professional) for
Tax-Exempt Bond Fund of Tax-Exempt Bond Fund of America Investment professional for 13 years in total;
America and American 10 years with Capital Research and
High-Income Municipal Bond 5 years Management Company or affiliate
Fund (plus 2 years prior experience
as a research professional) for
American High-Income Municipal
Bond Fund
----------------------------------------------------------------------------------------------------------------
NEIL L. LANGBERG 22 years for Tax-Exempt Bond Vice President, Investment Management
Fund of America Group, Capital Research and Management
President, Principal Company
Executive Officer and 7 years for American High-Income
Director, Tax-Exempt Bond Municipal Bond Fund Investment professional for 23 years, all with
Fund of America; Senior Capital Research and Management Company
Vice President, American 8 years for Limited Term or affiliate
High-Income Municipal Bond Tax-Exempt Bond Fund
Fund and Limited Term
Tax-Exempt Bond Fund
----------------------------------------------------------------------------------------------------------------
EDWARD B. NAHMIAS 1 year for Tax-Exempt Bond Fund Vice President and Director, Capital Research
of America Company
Vice President, American
High-Income Municipal Bond Investment professional for 12 years in total;
Fund 5 years with Capital Research and
Management Company or affiliate
----------------------------------------------------------------------------------------------------------------
13
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
SHAREHOLDER INFORMATION
SHAREHOLDER SERVICES
American Funds Service Company, the funds' transfer agent, offers you a wide
range of services you can use to alter your investment program should your
needs and circumstances change. These services may be terminated or modified at
any time upon 60 days written notice. For your convenience, American Funds
Service Company has four service centers across the country.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
Call toll-Free from anywhere in the U.S. (8 a.m. to 8 p.m. ET): 800/421-0180
Access the American Funds website : www.americanfunds.com
[map of the United States]
[Download Table]
Western Western Central Eastern Central Eastern
Service Center Service Center Service Center Service Center
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 25065 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Santa Ana, San Antonio, Texas Indianapolis, Indiana Norfolk, Virginia
California 78265-9522 46206-6007 23501-2280
92799-5065 Fax: 210/474-4050 Fax: 317/735-6620 Fax: 757/670-4773
Fax: 714/671-7080
A more detailed description of policies and services is included in the funds'
statement of additional information and the owner's guide sent to new American
Funds shareholders titled "Welcome to the Family." Both are available by
writing or calling American Funds Service Company.
14
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
CHOOSING A SHARE CLASS
Each fund offers four different classes of shares. Each share class represents
investments in the same portfolio of securities, but each class has its own
sales charge and expense structure, allowing you to choose the class that best
meets your situation. When you purchase shares of each fund, you must choose a
share class. If none is chosen, your investment will be made in Class A
shares.
Shares of each fund may be purchased through various investment programs or
accounts, including many types of retirement plans. However, tax-exempt funds
should not serve as retirement plan investments. The services or share classes
available to you may vary depending upon how you wish to purchase shares of
each fund.
Factors you should consider in choosing a class of shares include:
. how long you expect to own the shares;
. how much you intend to invest;
. total expenses associated with owning shares of each class;
. whether you qualify for any reduction or waiver of sales charges (for
example, Class A shares may be a less expensive option over time if you
qualify for a sales charge reduction or waiver);
. Class B and C shares generally are not available to certain retirement plans,
including employer-sponsored retirement plans such as 401(k) plans,
employer-sponsored 403(b) plans, and money purchase pension and profit sharing
plans;
. Class F shares are generally only available to fee-based programs of
investment firms that have special agreements with each fund's distributor and
certain registered investment advisers.
Each investor's financial considerations are different. You should speak with
your financial adviser to help you decide which share class is best for you.
15
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
SUMMARY OF THE PRIMARY DIFFERENCES AMONG SHARE CLASSES
[Download Table]
CLASS A SHARES
------------------------------------------------------------------------------
Initial sales charge up to 3.75% (reduced or eliminated for purchases
of $100,000 or more)
Contingent deferred none (except on certain redemptions on purchases
sales charge of $1 million or more bought without an initial
sales charge)
12b-1 fees up to 0.25% or 0.30% annually
Dividends higher than other classes due to lower annual
expenses
Purchase maximum none
Conversion none
CLASS B SHARES
------------------------------------------------------------------------------
Initial sales charge none
Contingent deferred starts at 5.00% and declines until it reaches 0%
sales charge after six years
12b-1 fees 1.00% annually
Dividends lower than Class A and F shares due to higher
distribution fees and other expenses, but higher
than Class C shares due to lower other expenses
Purchase maximum $100,000
Conversion automatic conversion to Class A shares after eight
years, reducing future annual expenses
CLASS C SHARES
------------------------------------------------------------------------------
Initial sales charge none
Contingent deferred 1.00% if shares are sold within one year after
sales charge being purchased
12b-1 fees 1.00% annually
Dividends lower than other classes due to higher
distribution fees and other expenses
Purchase maximum $500,000
Conversion automatic conversion to Class F shares after ten
years, reducing future annual expenses
CLASS F SHARES
------------------------------------------------------------------------------
Initial sales charge none
Contingent deferred none
sales charge
12b-1 fees currently 0.25% annually (may not exceed 0.50%
annually)
Dividends higher than Class B and C shares due to lower
distribution fees, but typically lower than
Class A shares due to higher other expenses
Purchase maximum none
Conversion none
------------------------------------------------------------------------------
16
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
PURCHASE AND EXCHANGE OF SHARES
PURCHASE OF CLASS A, B AND C SHARES
Generally, you may open an account and purchase Class A, B and C shares by
contacting any investment dealer (who may impose transaction charges in
addition to those described in this prospectus) authorized to sell each fund's
shares. You may purchase additional shares in various ways, including through
your investment dealer and by mail, telephone, the Internet and bank wire.
PURCHASE OF CLASS F SHARES
Generally, you may only open an account and purchase Class F shares through
fee-based programs of investment firms that have special agreements with the
fund's distributor and certain registered investment advisers. These firms and
advisers typically charge ongoing fees for services they provide.
EXCHANGE
Generally, you may exchange your shares into shares of the same class of other
funds in The American Funds Group without a sales charge. For purposes of
computing the contingent deferred sales charge on Class B and C shares, the
length of time you have owned your shares will be measured from the date of
original purchase and will not be affected by any exchange.
Exchanges of shares from the money market funds initially purchased without a
sales charge generally will be subject to the appropriate sales charge.
Exchanges have the same tax consequences as ordinary sales and purchases. See
"Transactions by Telephone..." for information regarding electronic exchanges.
The funds and American Funds Distributors, each fund's distributor, reserve the
right to reject any purchase order for any reason, including purchases which
are part of exchange activity that could involve actual or potential harm to
the funds.
[Download Table]
PURCHASE MINIMUMS FOR ALL CLASSES OF SHARES
To establish an account $ 250
To add to an account $ 50
-----------------------------------------------------------
PURCHASE MAXIMUM FOR CLASS B SHARES $100,000
-----------------------------------------------------------
PURCHASE MAXIMUM FOR CLASS C SHARES $500,000
-----------------------------------------------------------
17
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
VALUING SHARES
Each fund's net asset value is the value of a single share. Each fund
calculates its net asset value, each day the New York Stock Exchange is open,
as of 4:00 p.m. New York time, the close of regular trading. Assets are valued
primarily on the basis of market quotations. However, the funds' board has
adopted procedures to make "fair value" determinations in certain
circumstances, for example, if market quotations are not readily available or
do not accurately reflect fair value.
Your shares will be purchased at the net asset value (plus any applicable sales
charge in the case of Class A shares), or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request. A contingent deferred sales charge may apply at the time you sell
certain
Class A, B and C shares.
SALES CHARGES
CLASS A
The initial sales charge you pay when you buy Class A shares differs depending
upon the amount you invest and may be reduced or eliminated for larger
purchases as indicated below.
[Download Table]
SALES CHARGE AS A PERCENTAGE OF
----------------------------------
DEALER
NET COMMISSION
OFFERING AMOUNT AS % OF
INVESTMENT PRICE INVESTED OFFERING PRICE
------------------------------------------------------------------------------
Less than $100,000 3.75% 3.90% 3.00%
------------------------------------------------------------------------------
$100,000 but less than 3.50% 3.63% 2.75%
$250,000
------------------------------------------------------------------------------
$250,000 but less than 2.50% 2.56% 2.00%
$500,000
------------------------------------------------------------------------------
$500,000 but less than 2.00% 2.04% 1.60%
$750,000
------------------------------------------------------------------------------
$750,000 but less than $1 1.50% 1.52% 1.20%
million
------------------------------------------------------------------------------
$1 million or more and
certain other investments none none none
described below
------------------------------------------------------------------------------
CLASS A PURCHASES NOT SUBJECT TO SALES CHARGE
Investments of $1 million or more may be subject to a 1% contingent deferred
sales charge if shares are sold within one year of purchase.
Employer-sponsored defined contribution-type plans investing $1 million or
more, or with 100 or more eligible employees, and Individual Retirement Account
rollovers involving retirement plan assets invested in the American Funds, may
invest with no sales charge and are not subject to a contingent deferred sales
charge. Also exempt are investments made through retirement plans, endowments
or foundations with $50 million or more in assets, and investments made through
accounts that purchased fund shares before March 15, 2001 and are part of
certain qualified fee-based programs. The distributor may pay dealers up to 1%
18
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
on investments made in Class A shares with no initial sales charge. Each fund
may reimburse the distributor for these payments through its Plan of
Distribution (see below).
CLASS B AND C
Class B and C shares are sold without any initial sales charge. American Funds
Distributors pays 4% of the amount invested to dealers who sell Class B shares
and 1% to dealers who sell Class C shares.
For Class C shares, a contingent deferred sales charge of 1% applies if shares
are sold within one year of purchase. For Class B shares, a contingent
deferred sales charge may be applied to shares you sell within six years of
purchase, as shown in the table below.
[Download Table]
CLASS B SHARES SOLD WITHIN YEAR 1 2 3 4 5 6
--------------------------------------------------------------------
CONTINGENT DEFERRED SALES CHARGE 5% 4% 4% 3% 2% 1%
Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to a contingent deferred sales charge. In addition, the
contingent deferred sales charge may be waived in certain circumstances. See
"Contingent Deferred Sales Charge Waivers for Class B and C Shares" below. The
contingent deferred sales charge is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. For purposes
of determining the contingent deferred sales charge, if you sell only some of
your shares, shares that are not subject to any contingent deferred sales
charge will be sold first and then shares that you have owned the longest.
See "Plans of Distribution" below for ongoing compensation paid to your dealer
or financial adviser for all share classes.
CONVERSION OF CLASS B AND C SHARES
Class B shares automatically convert to Class A shares in the month of the
eight-year anniversary of the purchase date. Class C shares automatically
convert to Class F shares in the month of the ten-year anniversary of the
purchase date. The Internal Revenue Service currently takes the position that
these automatic conversions are not taxable. Should its position change,
shareholders would still have the option of converting but may face certain tax
consequences.
19
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
SALES CHARGE REDUCTIONS AND WAIVERS
You must let your investment dealer or American Funds Service Company know if
you qualify for a reduction in your Class A sales charge or waiver of your
Class B or C contingent deferred sales charge.
REDUCING YOUR CLASS A SALES CHARGE
You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your Class A sales charge.
AGGREGATING ACCOUNTS
To receive a reduced Class A sales charge, investments made by you and your
immediate family (see above) may be aggregated if made for your own account(s)
and/or, for instance:
. trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may be
aggregated with accounts of the person who is the primary beneficiary of the
trust;
. solely controlled business accounts;
. single-participant retirement plans.
CONCURRENT PURCHASES
You may combine simultaneous purchases of any class of shares of two or more
American Funds, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to qualify for a
reduced Class A sales charge. Direct purchases of money market funds are
excluded.
RIGHTS OF ACCUMULATION
You may take into account the current value (or if greater, the amount you
invested less any withdrawals) of your existing holdings in any class of shares
of the American Funds, as well as individual holdings in various American
Legacy variable annuities or variable life insurance policies, to determine
your Class A sales charge. Direct purchases of money market funds are excluded.
STATEMENT OF INTENTION
You can reduce the sales charge you pay on your Class A share purchases by
establishing a Statement of Intention. A Statement of Intention allows you to
combine all non-money market fund purchases of all share classes, as well as
individual American Legacy variable annuity and life insurance policies you
intend to make over a 13-month period, to determine the applicable sales
charge. At your request, purchases made during the previous 90 days may be
included; however, capital appreciation and reinvested dividends and capital
gains do not apply toward these combined purchases. A portion of your account
may be held in escrow to cover additional Class A sales charges which may be
due if your total investments over the 13-month period do not qualify for the
applicable sales charge reduction.
20
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
CONTINGENT DEFERRED SALES CHARGE WAIVERS FOR CLASS B AND C SHARES
The contingent deferred sales charge on Class B and C shares may be waived in
the following cases:
. when receiving payments through systematic withdrawal plans (up to 12% of the
value of each fund account);
. when receiving required minimum distributions from retirement accounts upon
reaching age 70 1/2; or
. for redemptions due to death or post-purchase disability of the shareholder
(this generally excludes trusts).
PLANS OF DISTRIBUTION
Each fund has Plans of Distribution or "12b-1 Plans" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by each fund's board of directors/trustees.
The plans provide for annual expenses of up to 0.25% or 0.30% for Class A
shares, 1.00% for Class B and C shares, and up to 0.50% for Class F shares. For
all share classes, up to 0.25% of these expenses may be used to pay service
fees to qualified dealers for providing certain shareholder services. The
remaining expense for each share class may be used for distribution expenses.
The 12b-1 fees paid by each fund, as a percentage of average net assets, for
the previous fiscal year are indicated earlier under "Fees and Expenses of the
Funds." Since these fees are paid out of each fund's assets or income on an
ongoing basis, over time they will increase the cost and reduce the return of
an investment. The higher fees for Class B and C shares may cost you more over
time than paying the initial sales charge for Class A shares.
OTHER COMPENSATION TO DEALERS
American Funds Distributors may pay, or sponsor informational meetings for,
dealers as described in the statement of additional information.
21
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
HOW TO SELL SHARES
Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:
THROUGH YOUR DEALER OR FINANCIAL ADVISER (CERTAIN CHARGES MAY APPLY)
. Shares held for you in your dealer's name must be sold through the dealer.
. Class F shares must be sold through your dealer or financial adviser.
WRITING TO AMERICAN FUNDS SERVICE COMPANY
. Requests must be signed by the registered shareholder(s).
. A signature guarantee is required if the redemption is:
-- over $50,000;
-- made payable to someone other than the registered shareholder(s); or
-- sent to an address other than the address of record, or an address of
record which has been changed within the last 10 days.
. American Funds Service Company reserves the right to require signature
guarantee(s) on any redemptions.
. Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.
TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR USING AMERICAN
FUNDSLINE/(R)/ OR AMERICAN FUNDSLINE ONLINE/(R)/:
. Redemptions by telephone, fax, or computer (including American FundsLine and
American FundsLine OnLine) are limited to $50,000 per shareholder each day.
. Checks must be made payable to the registered shareholder.
. Checks must be mailed to an address of record that has been used with the
account for at least 10 days.
TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE OR FUNDSLINE ONLINE
Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all
of these services. You may reinstate these services at any time.
Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold each fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, and each of their
respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liabilities (including attorney fees) which may
be incurred in connection with the exercise of these privileges, provided
American Funds Service Company employs reasonable procedures to confirm that
the instructions received from any person with appropriate account information
are genuine. If reasonable procedures are not employed, it and/or each fund may
be liable for losses due to unauthorized or fraudulent instructions.
22
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
Each fund declares dividends from net investment income daily and distributes
the accrued dividends, which may fluctuate, to shareholders each month.
Dividends begin accruing one day after payment for shares is received by the
fund or American Funds Service Company. Capital gains, if any, are usually
distributed in November or December. When a capital gain is distributed, the
net asset value per share is reduced by the amount of the payment.
You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of these funds or any other American Fund, or you
may elect to receive them in cash. Most shareholders do not elect to take
capital gain distributions in cash because these distributions reduce principal
value.
TAX CONSEQUENCES
Interest on municipal bonds is generally not included in gross income for
federal income tax purposes. Each fund is permitted to pass through to its
shareholders federally tax-exempt income subject to certain requirements.
However, each fund may invest in obligations which pay interest that is
subject to state and local taxes when distributed by each fund.
TAXES ON DISTRIBUTIONS
Distributions you receive from the funds may be subject to income tax and may
also be subject to state or local taxes - unless you are exempt from taxation.
For federal tax purposes, any taxable dividends and distributions of short-term
capital gains are treated as ordinary income. The funds' distributions of net
long-term capital gains are taxable to you as long-term capital gains. Any
taxable distributions you receive from the funds will normally be taxable to
you when made, regardless of whether you reinvest distributions or receive them
in cash.
TAXES ON TRANSACTIONS
Your redemptions, including exchanges, may result in a capital gain or loss for
federal tax purposes. A capital gain or loss on your investment is the
difference between the cost of your shares, including any sales charges, and
the price you receive when you sell them.
Please see your tax adviser for further information.
23
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand each fund's
results for the past five years. Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate that
an investor would have earned or lost on an investment in the funds (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, (except for the six months ended
February 28, 2002 and January 31, 2002, respectively), whose report, along with
each fund's financial statements, is included in the statement of additional
information, which is available upon request.
[Download Table]
CLASS A
-----------------------------------------------------------
Six months
ended
February 28, YEAR ENDED AUGUST 31
2002/1,//2/
-------------- 2001 2000 1999 1998 1997
---------------------------------------------
NET ASSET VALUE, $12.38 $11.81 $11.86 $12.60 $12.27 $11.86
BEGINNING OF PERIOD
-----------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .29 .60 .60 .59 .62 .64
Net (losses) gains on
securities (both
realized and (.13) .57 (.01) (.55) .37 .45
unrealized)
-----------------------------------------------------------------------------------
Total from investment .16 1.17 .59 .04 .99 1.09
operations
-----------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net
investment income) (.29) (.60) (.60) (.59) (.62) (.64)
Distributions (from (.03) - (.04) (.19) (.04) (.04)
capital gains)
-----------------------------------------------------------------------------------
Total distributions (.32) (.60) (.64) (.78) (.66) (.68)
-----------------------------------------------------------------------------------
NET ASSET VALUE, END $12.22 $12.38 $11.81 $11.86 $12.60 $12.27
OF PERIOD
-----------------------------------------------------------------------------------
TOTAL RETURN/4/ 1.34% 10.22% 5.27% .23% 8.26% 9.39%
-----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $2,368 $2,202 $1,831 $1,917 $1,795 $1,593
period (in millions)
-----------------------------------------------------------------------------------
Ratio of expenses to .64%/5/ .66% .67% .65% .66% .68%
average net assets
-----------------------------------------------------------------------------------
Ratio of net income to
average net assets 4.80%/5/ 5.00% 5.22% 4.78% 4.98% 5.27%
THE TAX-EXEMPT BOND FUND OF AMERICA
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
2 Unaudited.
3 Years ended 1999, 1998 and 1997 are based on shares outstanding on the last
day of the year; all other periods are based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
24
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS B
---------------------------------------
Six months Year
ended ended March 15 to
February 28, August 31, August 31,
2002/1,2/ 2001 2000/1/
---------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.38 $11.81 $11.50
------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:/3/
Net investment income .25 .52 .21
Net (losses) gains on securities
(both (.13) .57 .34
realized and unrealized)
------------------------------------------------------------------------------
Total from investment operations .12 1.09 .55
------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS:
Dividends (from net investment
income) (.25) (.52) (.24)
Distributions (from capital gains) (.03) - -
------------------------------------------------------------------------------
Total distributions (.28) (.52) (.24)
------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.22 $12.38 $11.81
------------------------------------------------------------------------------
TOTAL RETURN/4/ .96% 9.45% 4.89%
------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in $ 49 $ 26 $ 3
millions)
------------------------------------------------------------------------------
Ratio of expenses to average net 1.38%/5/ 1.40% .64%
assets
------------------------------------------------------------------------------
Ratio of net income to average net
assets 4.01%/5/ 4.06% 1.99%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
25
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS C CLASS F
------------------------------------------------------
Six months Six months
ended March 15 to ended March 15 to
February 28, August 31, February 28, August 31,
2002/1,2/ 2001/1/ 2002/1,2/ 2001/1/
------------------------------------------------------
NET ASSET VALUE, $12.38 $12.10 $12.38 $12.10
BEGINNING OF PERIOD
------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .24 .21 .28 .24
Net (losses) gains on
securities (both
realized and (.13) .29 (.13) .29
unrealized)
------------------------------------------------------------------------------
Total from investment .11 .50 .15 .53
operations
------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net
investment income) (.24) (.22) (.28) (.25)
Distributions (from (.03) - (.03) -
capital gains)
------------------------------------------------------------------------------
Total distributions (.27) (.22) (.31) (.25)
------------------------------------------------------------------------------
NET ASSET VALUE, END $12.22 $12.38 $12.22 $12.38
OF PERIOD
------------------------------------------------------------------------------
TOTAL RETURN/4/ .90% 4.20% 1.26% 4.45%
------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $ 42 $ 15 $ 16 $ 7
period (in millions)
------------------------------------------------------------------------------
Ratio of expenses to 1.52%/5/ .73% .79%/5/ .40%
average net assets
------------------------------------------------------------------------------
Ratio of net income to
average net assets 3.96%/5/ 1.77% 4.67%/5/ 2.11%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
[Download Table]
Six months
ended
February 28, YEAR ENDED AUGUST 31
2002/1,2/
--------------2001 2000 1999 1998 1997
-----------------------------------
Portfolio turnover
rate for all
classes of shares 9% 21% 29% 15% 23% 14%
26
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS A
----------------------------------------------------------
Six months
ended
January 31, YEAR ENDED JULY 31
2002/1,//2/
------------- 2001 2000 1999 1998 1997
---------------------------------------------
NET ASSET VALUE, $15.35 $14.87 $15.49 $16.12 $15.90 $15.23
BEGINNING OF PERIOD
----------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .41 .83 .82 .81 .84 .87
Net (losses) gains on
securities (both
realized and (.25) .48 (.58) (.54) .26 .80
unrealized)
----------------------------------------------------------------------------------
Total from investment .16 1.31 .24 .27 1.10 1.67
operations
----------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net
investment income) (.42) (.83) (.83) (.82) (.84) (.86)
Distributions (from - - (.03) (.08) (.04) (.14)
capital gains)
----------------------------------------------------------------------------------
Total distributions (.42) (.83) (.86) (.90) (.88) (1.00)
----------------------------------------------------------------------------------
NET ASSET VALUE, END $15.09 $15.35 $14.87 $15.49 $16.12 $15.90
OF PERIOD
----------------------------------------------------------------------------------
TOTAL RETURN/4/ 1.05% 9.14% 1.61% 1.63% 7.05% 11.36%
----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $ 698 $ 650 $ 550 564 $ 464 $ 316
period (in millions)
----------------------------------------------------------------------------------
Ratio of expenses to .78%/5/ .80% .80% .78% .79% .87%
average net assets
----------------------------------------------------------------------------------
Ratio of net income to
average net assets 5.39%/5/ 5.50% 5.53% 5.09% 5.19% 5.51%
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Years ended 1999, 1998 and 1997 are based on shares outstanding on the last
day of the year; all periods are based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
27
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS B
------------------------------------
Six months Year
ended ended March 15 to
January 31, July 31, July 31,
2002/1,2/ 2001 2000/1/
------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.35 $14.87 $14.79
-------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:/3/
Net investment income .36 .71 .23
Net (losses) gains on securities (both (.25) .50 .14
realized and unrealized)
-------------------------------------------------------------------------------
Total from investment operations .11 1.21 .37
-------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS:
Dividends (from net investment income) (.37) (.73) (.29)
Distributions (from capital gains) - - -
-------------------------------------------------------------------------------
Total distributions (.37) (.73) (.29)
-------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.09 $15.35 $14.87
-------------------------------------------------------------------------------
TOTAL RETURN/4/ .70% 8.45% 3.16%
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 20 $ 11 $ 2
-------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.49%/5/ 1.48% .55%
-------------------------------------------------------------------------------
Ratio of net income to average net assets 4.64%/5/ 4.72% 1.77%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
28
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS C CLASS F
----------------------------------------------------
Six months Six months
ended March 15 to ended March 19 to
January 31, July 31, January 31, July 31,
2002/1,2/ 2001/1/ 2002/1,2/ 2001/1/
----------------------------------------------------
NET ASSET VALUE, $15.35 $15.11 $15.35 $15.12
BEGINNING OF PERIOD
------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .35 .25 .40 .26
Net (losses) gains on
securities (both (.25) .25 (.25) .25
realized and unrealized)
------------------------------------------------------------------------------
Total from investment .10 .50 .15 .51
operations
------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net
investment income) (.36) (.26) (.41) (.28)
Distributions (from - - - -
capital gains)
------------------------------------------------------------------------------
Total distributions (.36) (.26) (.41) (.28)
------------------------------------------------------------------------------
NET ASSET VALUE, END OF $15.09 $15.35 $15.09 $15.35
PERIOD
------------------------------------------------------------------------------
TOTAL RETURN/4/ .62% 3.34% .98% 3.43%
------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $ 13 $ 4 $ 6 $ 1
period (in millions)
------------------------------------------------------------------------------
Ratio of expenses to 1.63%/5/ .59% .93%/5/ .35%
average net assets
------------------------------------------------------------------------------
Ratio of net income to
average net assets 4.54%/5/ 1.75% 5.30%/5/ 1.88%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
[Download Table]
Six months
ended
January 31, YEAR ENDED JULY 31
2002/1,2/
-------------2001 2000 1999 1998 1997
-----------------------------------
Portfolio turnover rate
for all
classes of shares 9% 18% 33% 17% 16% 15%
29
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
[Enlarge/Download Table]
CLASS A
---------------------------------------------------------------
Six months
ended
January 31, YEAR ENDED JULY 31
2002/1,//2/
------------- 2001 2000 1999 1998 1997
--------------------------------------------------
NET ASSET VALUE, $15.08 $14.43 $14.62 $14.85 $14.79 $14.36
BEGINNING OF PERIOD
---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .30 .62 .73 .61 .66 .68
Net (losses) gains on
securities (both
realized and (.08) .65 (.30) (.23) .06 .43
unrealized)
---------------------------------------------------------------------------------------
Total from investment .22 1.27 .43 .38 .72 1.11
operations
---------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net
investment income) (.30) (.62) (.62) (.61) (.66) (.68)
Total distributions (.30) (.62) (.62) (.61) (.66) (.68)
---------------------------------------------------------------------------------------
NET ASSET VALUE, END $15.00 $15.08 $14.43 $14.62 $14.85 $14.79
OF PERIOD
---------------------------------------------------------------------------------------
TOTAL RETURN/4/ 1.44% 8.99% 3.09% 2.59% 4.95% 7.96%
---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $ 387 $ 306 $ 258 $ 283 $ 227 $ 203
period (in millions)
---------------------------------------------------------------------------------------
Ratio of expenses to .73%/5/ .75%/6/ .75%/6/ .75%/6/ .75%/6/ .75%/6/
average net assets
---------------------------------------------------------------------------------------
Ratio of net income to
average net assets 3.88%/5/ 4.18% 5.08% 4.12% 4.40% 4.70%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Years ended 1999, 1998 and 1997 are based on shares outstanding on the last
day of the year; all other periods are based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
6 Had CRMC not waived management services fees, the fund's expense ratio would
have been 0.80%, 0.81%, 0.77%, 0.83% and 0.83% for the fiscal years ended
2001, 2000, 1999, 1998 and 1997, respectively.
30
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS B
------------------------------------
Six months Year
ended ended March 15 to
January 31, July 31, July 31,
2002/1,2/ 2001 2000/1/
------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.08 $14.43 $14.27
-------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:/3/
Net investment income .23 .48 .24
Net (losses) gains on securities (both (.08) .69 .13
realized and unrealized)
-------------------------------------------------------------------------------
Total from investment operations .15 1.17 .37
-------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS:
Dividends (from net investment income) (.23) (.52) (.21)
Total distributions (.23) (.52) (.21)
-------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.00 $15.08 $14.43
-------------------------------------------------------------------------------
TOTAL RETURN/4/ 1.01% 8.24% 2.59%
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 7 $ 2 $ 1
-------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.47%/5/ 1.59%/6/ .61%/6/
-------------------------------------------------------------------------------
Ratio of net income to average net assets 3.05%/5/ 3.24% 1.84%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
6 Had CRMC not waived management services fees, the fund's expense ratio would
have been 1.60% and 0.71% for the fiscal years ended 2001 and 2000,
respectively, for Class B.
31
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
[Download Table]
CLASS C CLASS F
----------------------------------------------------
Six months Six months
ended March 15 to ended March 15 to
January 31, July 31, January 31, July 31,
2002/1,2/ 2001/1/ 2002/1,2/ 2001/1/
----------------------------------------------------
NET ASSET VALUE, $15.08 $14.92 $15.08 $14.92
BEGINNING OF PERIOD
------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:/3/
Net investment income .22 .15 .27 .16
Net (losses) gains on
securities (both (.08) .17 (.08) .19
realized and unrealized)
------------------------------------------------------------------------------
Total from investment .14 .32 .19 .35
operations
------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS:
Dividends (from net (.22) (.16) (.27) (.19)
investment income)
----------------------------------------------------
Total distributions (.22) (.16) (.27) (.19)
------------------------------------------------------------------------------
NET ASSET VALUE, END OF $15.00 $15.08 $15.00 $15.08
PERIOD
------------------------------------------------------------------------------
TOTAL RETURN/4/ .95% 2.14% 1.28% 2.34%
------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $ 16 $ 4 $ 7 $ 2
period (in millions)
------------------------------------------------------------------------------
Ratio of expenses to 1.60%/5/ .75% .92%/5/ .60%
average net assets
------------------------------------------------------------------------------
Ratio of net income to
average net assets 2.94%/5/ 1.05% 3.67%/5/ 1.18%
1 Based on operations for the period shown (unless otherwise noted) and,
accordingly, not representative of a full year.
2 Unaudited.
3 Based on average shares outstanding.
4 Total returns exclude all sales charges, including contingent deferred sales
charges.
5 Annualized.
[Download Table]
Six months
ended
January 31, YEAR ENDED JULY 31
2002/1,2/
-------------2001 2000 1999 1998 1997
-----------------------------------
Portfolio turnover rate
for all
classes of shares 5% 21% 34% 17% 34% 32%
32
NATIONAL TAX-EXEMPT INCOME FUNDS / PROSPECTUS
| 485BPOS | Last “Page” of 35 | TOC | 1st | Previous | Next | ↓Bottom | Just 35th |
|---|
[Download Table]
FOR SHAREHOLDER SERVICES American Funds Service Company
800/421-0180
FOR RETIREMENT PLAN SERVICES Call your employer or plan administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900 Ext. 11
FOR 24-HOUR INFORMATION American FundsLine(R)
800/325-3590
American FundsLine OnLine(R)
http://www.americanfunds.com
Telephone conversations may be recorded or monitored for
verification, recordkeeping and quality assurance purposes.
* * * * *
MULTIPLE TRANSLATIONS This prospectus may be translated into other languages.
If there is any inconsistency or ambiguity as to the meaning of any word or
phrase in a translation, the English text will prevail.
ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS Contains additional information
about the funds including financial statements, investment results, portfolio
holdings, a statement from portfolio management discussing market conditions
and the funds' investment strategies, and the independent accountants' report
(in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The SAI contains
more detailed information on all aspects of each fund, including each fund's
financial statements, and is incorporated by reference into this prospectus.
The Codes of Ethics describe the personal investing policies adopted by each
fund and the funds' investment adviser and its affiliated companies.
The Codes of Ethics and current SAI have been filed with the Securities and
Exchange Commission ("SEC"). These and other related materials about the funds
are available for review or to be copied at the SEC's Public Reference Room in
Washington, D.C. (202/942-8090) or on the EDGAR database on the SEC's Internet
Web site at http://www.sec.gov, or, after payment of a duplicating fee, via
e-mail request to publicinfo@sec.gov or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102.
HOUSEHOLD MAILINGS Each year you are automatically sent an updated
prospectus, annual and semi-annual report for the funds. You may also
occasionally receive proxy statements for the funds. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents
will be sent to shareholders that are part of the same family and share the
same residential address.
If you would like to receive individual copies of these documents, or a free
copy of the SAI or Codes of Ethics, please call American Funds Service Company
at 800/421-0180 or write to the Secretary of the funds at 333 South Hope
Street,
Los Angeles, California 90071.
Investment Company File No. 811-2421 (The Tax-Exempt Bond Fund of America)
Investment Company File No. 811-8576 (American High-Income Municipal Bond Fund)
Investment Company File No. 811-7888 (Limited Term Tax-Exempt Bond Fund of
America)
Printed on Recyled Paper
TEX-010-1101/B
[Enlarge/Download Table]
The Tax-Exempt Bond Fund of America, Inc.
Investment portfolio, February 28, 2002 (unaudited)
[PIE CHART
Geographic
Breakdown
Texas 10.17%
Illinois 10.16
Washington 6.89
New York 5.44
California 5.12
Florida 4.76
Other states 50.6
Cash & short-term 6.86
[end pie chart]
[pie chart]
Quality ratings
Aaa/AAA 42.01%
Aa/AA 15.61
A/A 10.12
Baa/BBB 11.05
Below investment-grade 14.35
Cash & short-term equivalents 6.86
[end chart]
Principal Market
amount value
Fixed income securities - 93.14% (000) (000)
Alabama - 1.06%
Public School and College Auth., Capital Improvement Pool $ 5,255 $ 5,732
Bonds, Series 2001-A, 5.625% 2015
Special Care Fac. Fncg. Auth. of the City of 9,000 9,029
Huntsville - Carlton Cove, Retirement Fac. Rev. Bonds
(Carlton Cove, Inc. Project), Series 2001, 8.125% 2031
Jefferson County, Sewer Rev. Capital Improvement Warrants, 2,865 2,840
Series 1999A, FGIC Insured, 5.125% 2029
Health Care Auth. of Lauderdale County and the City of 1,150 1,256
Florence, Coffee Health Group, Series 2000-A Bonds,
MBIA Insured, 5.50% 2009
21st Century Auth., Tobacco Settlement Rev. Bonds:
Series 2000, 5.75% 2020 1,500 1,520
Series 2001, 5.50% 2021 6,000 5,876
Alaska - 1.87%
Housing Fin. Corp.:
Collateralized Bonds (Veterans Mortgage Program):
Series 1992A-1, 6.75% 2032 1,495 1,529
Series A-1, 5.30% 2017 6,740 6,867
Municipality of Anchorage:
1995 G.O. Ref. General Purpose Bonds, Series B, FGIC 2,895 3,335
Insured, 6.00% 2012
Municipal Light & Power, Senior Lien Ref. Electric Rev. 5,000 6,019
Bonds, Series 1996, MBIA Insured, 6.50% 2014
North Slope Borough, G.O. Bonds, Series 1997A, MBIA 10,935 8,497
Insured, 0% 2008
Northern Tobacco Securitization Corp., Tobacco
Settlement Asset-Backed Bonds:
Series 2000:
5.60% 2010 1,000 1,057
5.70% 2011 4,890 5,168
5.80% 2012 4,785 5,056
Series 2001, 5.375% 2021 9,050 8,827
Arizona - 0.35%
Health Facs. Auth., Rev. Bonds (Catholic Healthcare West), 3,655 3,896
Series 1999A, 6.125% 2009
State Transportation Board, Subordinated Highway Rev. 1,850 1,910
Bonds, Series 1992B, 6.50% 2008 (Preref. 2002)
Industrial Dev. Auth. of the County of Maricopa, Health 2,850 2,949
Fac. Rev. Bonds (Catholic Healthcare West Project),
1998 Series A, 5.25% 2006
Arkansas - 0.04%
Dev. Fin. Auth., Tobacco Settlement Rev. Bonds 1,000 970
(Biosciences Institutes and College of Public Health
Projects), Series 2001, 5.125% 2028
California - 5.12%
G.O. Bonds, 5.00% 2021 7,000 6,928
Educational Facs. Auth., Rev. Bonds, Stanford University, 3,000 3,082
Series N, 5.35% 2027
Housing Fin. Agcy., Single Family Mortgage Bonds, 1997
Series C-4, Class I:
5.10% 2007 1,445 1,546
5.20% 2009 1,065 1,135
Statewide Communities Dev. Auth., Apartment Dev. Rev. 4,000 4,139
Ref. Bonds (Irvine Apartment Communities, LP), Series
1998A-3, 5.10% 2025 (Put 2010)
City of Antioch, Public Fncg. Auth., 1998 Reassessment Rev. 1,460 1,517
Bonds, Subordinated Series B, 5.85% 2015
Association of Bay Area Governments , Fin. Auth. For
Nonprofit Corps., Ref. Rev. Cert. of Part.:
(American Baptist Homes of the West Facs. Project),
Series 1997B:
5.50% 2007 1,210 1,184
6.20% 2027 1,675 1,520
(Episcopal Homes Foundation), Series 1998, 5.125% 2013 2,000 2,017
Bonita Canyon Public Facs. Fncg. Auth., Community Facs. 2,500 2,373
Dist. No. 98-1, Special Tax Bonds, Series 1998,
5.375% 2028
Central Valley Fncg. Auth., Cogeneration Project Rev. 1,000 1,081
Bonds (Carson Ice-Gen Project), Series 1993, 6.10% 2013
(Preref. 2003)
County of El Dorado, Community Facs. Dist. No. 1992-1 985 1,017
(El Dorado Hills Dev.), Series 1999 Special Tax Bonds,
6.125% 2016
City of Folsom, Community Facs. Dist. No. 10, Special Tax 2,000 2,144
Bonds, Series 1999, 7.00% 2024
City of Fontana, Community Facs. Dist. No. 12 (Sierra 1,000 1,061
Lakes), Special Tax Bonds, Series 1999, 6.50% 2015
City of Irvine Limited Obligation Improvement Bonds:
Assessment Dist. No. 94-13 (Oak Creek), Group One, 2,000 1,956
5.50% 2022
Assessment Dist. No. 94-13 (Oak Creek), Group Two, 1,250 1,288
6.00% 2022
Assessment Dist. No. 97-17 (Northwood), Group One, 1,500 1,546
6.00% 2023
City of Long Beach:
Aquarium of the Pacific, Rev. Bonds (Aquarium of the
Pacific Project), 1995 Series A:
6.10% 2010 (Preref. 2005) 4,000 4,497
6.125% 2015 (Preref. 2005) 5,000 5,625
6.125% 2023 (Preref. 2005) 12,500 14,064
MBIA Insured, 6.125% 2023 (Preref. 2005) 2,000 2,250
Bond Fin. Auth., Lease Rev. Ref. Bonds (Aquarium of the 2,150 2,376
Pacific Project), Series 2001, AMBAC Insured, 5.50% 2015
City of Los Angeles Regional Airports Improvement Corp.,
Facs. Lease Ref. Rev. Bonds (L.A. Intl. Airport):
Delta Air Lines, Inc., Issue of 1996, 6.35% 2025 2,500 2,226
United Air Lines, Inc., Issue of 1992, 6.875% 2012 2,000 1,500
County of Los Angeles:
Capital Asset Leasing Corp., Cert. of Part. (Marina del
Rey), 1993 Series A:
6.25% 2003 2,400 2,476
6.50% 2008 4,750 4,975
Los Angeles Community College Dist., G.O. Bonds, 2001 10,500 11,489
Election, Series A, 5.50% 2016
County of Orange, Aliso Viejo Special Tax Bonds of
Community Facs. Dist. No. 88-1, Series A of 1992:
7.15% 2006 (Preref. 2002) 2,000 2,094
7.35% 2018 (Preref. 2002) 2,000 2,095
City of Roseville:
Highland Reserve North Community Facs. Dist. No. 1, 3,075 3,304
Special Tax Bonds, Series 1999, 6.00% 2011
North Central Roseville Community Facs. Dist. No. 1,
Special Tax Ref. Bonds, Series 1999:
5.30% 2007 2,795 2,939
5.80% 2017 3,410 3,433
Woodcreek West Community Facs. Dist. No. 1, Special 1,465 1,572
Tax Bonds, Series 1999, 6.50% 2015
Sacramento Cogeneration Auth., Cogeneration Project Rev.
Bonds (Procter & Gamble Project), 1995 Series:
6.00% 2003 2,200 2,296
6.375% 2010 500 536
6.375% 2010 (Preref. 2005) 500 574
County of Sacramento, Laguna Creek Ranch/Elliott Ranch 500 521
Community Facs. Dist. No. 1, Improvement Area No. 2
Special Tax Ref. Bonds (Elliott Ranch), 6.30% 2021
County of San Bernardino Housing Auth., Multifamily Housing 1,500 1,520
Rev. Ref. Bonds (Equity Residential/Redlands Lawn &
Tennis Apartments), Issue 1999A, 5.20% 2029 (Put 2009)
County of San Diego, Reassessment Dist. No. 97-1 995 1,031
(4-S Ranch), Limited Obligation Improvement Bonds,
6.25% 2012
San Marcos Public Facs. Auth., Ref. Rev. Bonds, Series 3,000 3,036
1998, 5.80% 2027
San Marcos Unified School Dist., Community Facs. Dist. 1,000 953
No. 5 (Rancho Carrillo), Series 1999 Special Tax Bonds,
5.60% 2029
Community Facs. Dist. No. 99-1 (Talega) of the Santa 1,195 1,256
Margarita Water Dist., Series 1999 Special Tax Bonds,
6.10% 2014
South Tahoe Joint Powers Fncg. Auth., Subordinate Bond
Anticipation Notes (South Tahoe Redev. Project Area
No. 1):
Series 1999A, 7.30% 2007 7,000 7,297
Series 1999B, 7.30% 2007 1,905 1,986
The Regents of the University of California, Various 2,000 2,035
University of California Projects, 1993 Series A,
5.50% 2021
Washington Township Health Care Dist., Rev. Bonds, 1,300 1,323
Series 1999, 5.00% 2014
Colorado - 4.22%
Health Facs. Auth., Hospital Rev. Bonds (PorterCare 3,800 3,981
Adventist Health System Project), Series 2001,
6.50% 2031
Catholic Health Initiatives, Series 2001:
5.50% 2014 3,000 3,146
5.50% 2015 4,250 4,424
PorterCare Adventist Health System Project, Series 2001,
6.50% 2031
Housing and Fin. Auth.:
Multi-family Housing Insured Mortgage Rev. Bonds:
1982 Series A, 9.00% 2025 1,515 1,519
1997 Series C-3, 5.65% 2015 1,300 1,301
Single Family Housing Program Senior and
Subordinate Bonds:
1997 Series:
A-3, 7.00% 2016 1,005 1,065
B-3, 6.80% 2028 585 626
C-3, 6.75% 2017 655 699
1998 Series:
B-3, 6.55% 2025 4,735 5,089
D-3, 6.125% 2023 1,840 1,977
Arapahoe County, Capital Improvement Trust Fund
Highway Rev. Bonds (E-470 Project):
6.90% 2015 (Preref. 2005) 2,500 2,918
6.95% 2020 (Preref. 2005) 17,500 20,455
City and County of Denver, Airport System Rev. Bonds,
Series 1992A:
7.25% 2025 (Preref. 2002) 1,920 2,037
7.25% 2025 (Preref. 2002) 14,210 15,079
E-470 Public Highway Auth. Senior Rev. Bonds, Series 7,500 690
2000B, (Capital Appreciation Bonds), 0% 2034
Eagle County, Bachelor Gulch Metropolitan Dist., 3,400 3,543
G.O. Bonds, Series 1999, 6.70% 2019
EagleBend Affordable Housing Corp., Multi-family Housing
Project Rev. Ref. Bonds, Series 1997A:
6.40% 2017 1,000 989
6.45% 2021 2,175 2,139
EagleBend Dowd Affordable Housing Corp., Multi-family
Housing Project Rev. Bonds, Series 1998A:
6.35% 2014 1,010 1,007
6.63% 2039 2,000 1,934
Metropolitan Football Stadium Dist., Capital Appreciation
Sales Tax Rev. Bonds, MBIA Insured:
Series 1999A:
0% 2008 2,675 2,125
0% 2011 2,600 1,759
0% 2012 4,700 3,013
Series 1999B, 0% 2006 4,000 3,510
North Range Metropolitan Dist. No.1 (City of Commerce 3,775 3,709
City), Adams County, Limited Tax G.O. Bonds, Series 2001,
7.25% 2031
Northwest Parkway Public Highway Auth., Rev. Bonds, 2,800 2,872
Series 2001D, 7.125% 2041
Rampart Range Metropolitan Dist. No. 1 (City of Lone Tree), 5,415 5,370
Rev. Bonds (Rampart Range Metropolitan Dist. No. 2
Project), Series 2001, 7.75% 2026
Vista Ridge Metropolitan Dist. (Weld County), Limited Tax 7,310 7,333
G.O. Bonds, Series 2001, 7.50% 2031
Connecticut - 0.97%
G.O. Bonds, 2001 Series B, 5.375% 2016 1,900 2,038
Dev. Auth., Pollution Control Rev. Ref. Bonds (The 5,025 5,136
Connecticut Light and Power Co. Project), Series 1993A,
5.85% 2028
Health and Educational Fac. Auth., Rev. Bonds, University 1,800 1,847
of Hartford Issue, Series D, 6.75% 2012
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds,
1996 Series A:/1/
6.25% 2002 (Escrowed to Maturity) 1,000 1,025
6.375% 2004 (Escrowed to Maturity) 1,985 2,191
6.50% 2005 (Escrowed to Maturity) 1,490 1,684
6.40% 2011 2,025 2,154
6.40% 2011 (Preref. 2007) 2,470 2,883
Mohegan Tribe of Indians, Gaming Auth. Priority
Distribution Payment, Public Improvement Bonds,
Series 2001:
5.375% 2011 1,000 1,005
6.00% 2016 1,000 1,015
6.25% 2021 1,500 1,534
6.25% 2031 1,500 1,529
Delaware - 0.04%
Econ. Dev. Auth., First Mortgage Rev. Bonds (Peninsula 1,000 1,025
United Methodist Homes, Inc. Issue), Series 1997A,
6.00% 2009
District of Columbia - 0.89%
G.O. Bonds:
Series 1993A, AMBAC Insured, 5.875% 2005 (Escrowed 2,125 2,332
to Maturity)
Series 1993B-1, AMBAC Insured, 5.50% 2009 1,500 1,645
Convention Center Auth. (Washington, D.C.), Senior Lien 5,750 5,347
Dedicated Tax Rev. Bonds, Series 1998, AMBAC Insured,
4.75% 2028
Hospital Rev. Ref. Bonds:
Medlantic Healthcare Group, Inc. Issue, Series 1992B, 1,030 1,053
6.50% 2002 (Escrowed to Maturity)
Washington Hospital Center Issue, Series 1992A, 7.00% 1,170 1,223
2005 (Preref. 2002)
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington Hospital
Center Projects):
Series 2001A, 6.40% 2031 (Put 2004) 1,000 1,025
Series 2001B, 6.625% 2031 (Put 2005) 4,000 4,168
Series 2001D, 6.875% 2031 (Put 2007) 5,000 5,345
Florida - 4.76%
Arbor Greene Community Dev. Dist. (City of Tampa,
Hillsborough County), Special Assessment Rev. Bonds:
Series 1996, 7.60% 2018 915 973
Series 1998, 5.75% 2006 340 342
Series 2000, 6.50% 2007 710 722
Capital Region Community Dev. Dist. (Tallahassee), Capital 1,000 1,010
Improvement Rev. Bonds, Series 2001A-2, 6.85% 2031
Championsgate Community Dev. Dist., Capital Improvement 1,410 1,380
Rev. Bonds, Series 1998B, 5.70% 2005
The Crossings at Fleming Island Community Dev. Dist.
(Clay County), Special Assessment Bonds:
Series 1995, 8.25% 2016 (Preref. 2005) 1,020 1,186
Series 2000C, 7.10% 2030 7,000 7,387
Fishhawk Community Dev. Dist. (Hillsborough County), 3,000 3,043
Special Assessment Rev. Bonds, Series 2000, 6.65% 2007
Fleming Island Plantation Community Dev. Dist. 3,000 3,193
(Clay County), Series 2000B (Long Term), 7.375% 2031
The Groves Community Dev. Dist. (Pasco County), Special 1,125 1,135
Assessment Rev. Bonds, Series 2000B, 7.625% 2008
Harbor Bay Community Dev. Dist. (Hillsborough County), 1,500 1,493
Capital Improvement Rev. Bonds, Series 2001B, 6.35% 2010
Harbour Lake Estates Community Dev. Dist. (Miramar), 3,500 3,514
Special Assessment Bonds, Series 2001, 6.40% 2006
Heritage Harbor Community Dev. Dist. Rev. Bonds, 1,285 1,287
Series B, 6.00% 2003
Heritage Isles Community Dev. Dist., Special Assessment 1,000 999
Rev. Bonds, 5.90% 2006
Heritage Palms Community Dev. Dist. (Fort Myers),
Capital Improvement Rev. Bonds:
Series 1998, 5.40% 2003 680 677
Series 1999, 6.25% 2004 3,290 3,313
Heritage Pines Community Dev. Dist. (Pasco County), 2,325 2,297
Capital Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Heritage Springs Community Dev. Dist. (Pasco County), 1,575 1,586
Capital Improvement Rev. Bonds, Series 1999B, 6.25% 2005
Lake Ashton Community Dev. Dist. (City of Lake Wales,
Polk County), Capital Improvement Rev. Bonds:
Series 2001A, 7.40% 2032 1,000 1,014
Series 2001B, 6.40% 2011 2,750 2,756
Lake Powell Residential Golf Community Dev. Dist. (Bay 3,720 3,744
County), Special Assessment Rev. Bonds, Series 2000B,
7.00% 2010
Lakewood Ranch Community Dev. Dist. 5 (Manatee County), 1,235 1,217
Special Assessment Rev. Bonds, Series 2001B, 6.00% 2011
Lee County Industrial Dev. Auth., Healthcare Facs.
Rev. Bonds:
Series 1997A (Cypress Cove at Healthpark Florida,
Inc. Project):
5.80% 2006 1,005 1,021
6.25% 2017 5,550 5,109
Series 1999A (Shell Point/Alliance Obligated Group,
Shell Point Village Project):
5.25% 2006 1,150 1,172
5.50% 2010 1,500 1,505
5.75% 2012 1,360 1,373
5.75% 2013 1,840 1,842
5.75% 2015 1,900 1,868
5.50% 2021 1,550 1,414
5.50%, 2029 7,750 6,876
Marshall Creek Community Dev. Dist. (St. Johns County),
Special Assessment Bonds:
Series 2000A, 7.65% 2032 4,000 4,172
Series 2000B, 6.75% 2007 2,080 2,126
Meadow Pointe II, Community Dev. Dist. (Pasco County),
Capital Improvement Rev. Bonds:
Series 1998A, 5.25% 2003 60 60
Series 1998B, 5.50% 2005 465 464
Meadow Pointe III, Community Dev. Dist. (Pasco County), 1,480 1,480
Capital Improvement Rev. Bonds, Series 2001-1, 5.90% 2006
Miami-Dade County Health Facs. Auth., Hospital Rev. Ref. 5,495 5,992
Bonds, Series 2001A, (Miami Children's Hospital Project),
AMBAC Insured, 5.625% 2016
Mid-Bay Bridge Auth., Rev. Ref. Bonds, Series 1993D, 500 511
6.10% 2022
North Broward Hospital Dist., Improvement Rev. Bonds, 2,500 2,547
Series 2001, 6.00% 2031
North Springs Improvement Dist. Special Assessment Bonds 35 35
(Parkland Isles Project) Series 1997B, 6.25% 2005
Northern Palm Beach County Improvement Dist., Water
Control and Improvement Bonds:
Unit of Dev. No. 9A, Series 1996A:
6.80% 2006 910 980
7.30% 2027 1,500 1,599
Unit of Dev. No. 9B, Series 1999:
5.85% 2013 950 969
5.90% 2019 1,085 1,092
6.00% 2029 1,100 1,104
City of Orlando, Special Assessment Rev. Bonds (Conroy
Road Interchange Project), Series 1998A:
5.50% 2010 1,000 1,006
5.80% 2026 1,000 980
Palm Beach County, Health Facs. Auth. Retirement Community 2,750 2,734
Rev. Bonds (Adult Communities Total Services, Inc.
Obligated Group), Series 1996, 5.625% 2020
River Ridge Community Dev. Dist. (Lee County), Capital 485 481
Improvement Rev. Bonds, Series 1998, 5.75% 2008
Sampson Creek Community Dev. Dist. (St. Johns County), 2,750 2,803
Capital Improvement Rev. Bonds, Series 2000A, 6.95% 2031
Stoneybrook West Community Dev. Dist. (City of Winter
Garden, Orange County), Special Assessment Rev. Bonds:
Series 2000A, 7.00% 2032 1,775 1,815
Series 2000B, 6.45% 2010 1,950 1,980
University Place Community Development Dist.
(Manatee County):
Series 2001A, 7.00% 2032 1,000 1,009
Series 2001B, 6.10% 2007 2,000 2,004
Urban Orlando Community Dev. Dist. (City of Orlando),
Capital Improvement Rev. Bonds, Series 2001A:
6.40% 2010 6,000 6,005
6.95% 2033 4,000 3,982
Vista Lakes Community Dev. Dist. (City of Orlando), 1,375 1,383
Capital Improvement Rev. Bonds, Series 2000B, 6.35% 2005
Waterlefe Community Dev. Dist. (Manatee County), Capital
Improvement Rev. Bonds:
Series 2001A, 6.95% 2031 500 507
Series 2001B, 6.25% 2010 1,580 1,582
Georgia - 2.16%
G.O. Bonds, Series 2001B, 5.25% 2016 10,000 10,578
Municipal Electric Auth.:
General Power Rev. Bonds, Series X, 6.50% 2012 1,215 1,388
Project One Senior Bond, Fourth Crossover Series, 5,700 6,651
MBIA Insured, 6.50% 2012
City of Atlanta:
Airport Facs. Rev. Ref. Bonds, Series 1994A, AMBAC 1,000 1,151
Insured, 6.50% 2009
Fulco Hospital Auth., Rev. Anticipation Certificates,
Georgia Baptist Health Care System Project:
Series 1992A (Preref. 2002):
6.40% 2007 1,000 1,044
6.25% 2013 2,100 2,190
6.375% 2022 1,595 1,664
Series 1992B, 6.375% 2022 (Preref. 2002) 610 637
Tax Allocation Bonds (Atlantic Station Project),
Series 2001:
7.75% 2014 3,000 2,944
7.90% 2024 10,000 9,848
Water and Wastewater Rev. Bonds, Series 1999, 8,500 9,245
FGIC Insured, 5.50% 2022
Housing Auth. of the County of DeKalb, 5,995 6,083
Multi-family Housing Rev. Ref. Bonds
(The Park at Briarcliff Apartments
Project), Series 1998A, 4.55% 2028 (Put 2008)
Hawaii - 0.43%
G.O. Bonds of 1997, Series CN, FGIC Insured, 3,000 3,159
5.25% 2013
City and County of Honolulu:
G.O. Bonds:
Ref. and Improvement Series, 1993B:
5.00% 2013 1,370 1,450
5.00% 2013 (Escrowed to Maturity) 630 676
Series 2001A, FSA Insured, 5.375% 2012 2,000 2,172
Wastewater System Rev. Bonds (First Bond
Resolution), Senior Series 2001, AMBAC Insured:
5.50% 2015 1,875 2,019
5.50% 2016 1,000 1,071
Illinois - 10.16%
G.O. Bonds, Illinois FIRST, Series of 2,000 2,193
May 2001, FSA Insured, 5.50% 2016
Build Illinois Bonds (Sales Tax Rev. Bonds),
Illinois FIRST:
Series of March 2001, 5.50% 2016 3,000 3,213
Series of June 2001:
5.50% 2016 7,470 8,000
5.50% 2017 8,000 8,511
Series of September 2001:
5.375% 2015 2,500 2,667
5.375% 2016 1,500 1,591
Civic Center Bonds (Special State Obligation 6,500 7,514
Bonds),Series 1991, AMBAC Insured, 6.25% 2020
Dev. Fin. Auth., Rev. Bonds, Series 1998A, 5,120 5,569
(Provena Health), MBIA Insured, 5.50% 2010
Educational Facs. Auth., Rev. Bonds:
MJH Education Assistance Illinois III LLC, 1,500 1,566
Series 1999D, AMBAC Insured, 5.45% 2014
Wesleyan University, Series 1993, 5.625% 2018 1,490 1,523
Health Facs. Auth.:
Rev. Bonds:
Advocate Health Care Network:
Series 1998A:
5.00% 2007 700 735
5.00% 2007 (Escrowed to Maturity) 920 994
5.00% 2008 810 849
5.00% 2008 (Escrowed to Maturity) 1,060 1,145
4.50% 2009 840 846
4.50% 2009 (Preref. 2008) 1,090 1,156
4.625% 2010 1,310 1,318
4.625% 2010 (Preref. 2008) 1,690 1,805
Series 1998B:
4.875% 2013 2,130 2,132
4.875% 2013 (Preref. 2008) 330 358
MBIA Insured, 5.25% 2018 2,115 2,147
MBIA Insured, 5.25% 2018 (Preref. 2008) 385 425
Alexian Brothers Health System, Series 1999,
FSA Insured:
5.00% 2008 1,230 1,304
5.25% 2012 6,960 7,343
5.125% 2028 2,000 1,959
Centegra Health System, Series 1998:
5.50% 2008 1,640 1,727
5.50% 2009 2,290 2,400
5.50% 2010 2,440 2,541
5.20% 2012 2,200 2,222
5.25% 2013 2,430 2,441
5.25% 2018 5,050 4,812
The Children's Memorial Hospital, Series 1999A,
AMBAC Insured:
5.75% 2010 1,835 2,026
5.75% 2011 1,690 1,854
Covenant Retirement Communities, Inc., 4,500 4,410
Series 2001, 5.875% 2031
Edward Hospital Obligated Group, Series 2001A,
FSA Insured:
5.50% 2012 2,545 2,767
5.50% 2017 1,500 1,571
Friendship Village of Schaumburg, Series 1997A, 4,675 3,934
5.25% 2018
Lutheran Senior Ministries Obligated Group - 2,000 2,018
Lutheran Hillside Village Project, Series 2001A,
7.375% 2031
Northwestern Memorial Hospital, Series 1994A, 2,000 2,055
6.00% 2024 OSF Healthcare System:
Series 1993, 5.75% 2007 5,760 6,017
Series 1999, 6.25% 2019 4,500 4,729
Riverside Health System, Series 2000, 6.85% 2029 2,500 2,681
Sherman Health Systems, Series 1997, 2,595 2,774
AMBAC Insured, 5.50% 2010
Hospital Sisters Services, Inc. - 4,000 4,310
Obligated Group,
Series 1998A, MBIA Insured, 5.25% 2008
University of Chicago Hospitals and 2,070 2,148
Health System,
Series 2001, MBIA Insured, 5.375% 2017
Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997A:
5.50% 2008 1,000 1,076
5.80% 2016 8,000 8,323
Edward Hospital Project, Series 1993A:
5.75% 2009 1,550 1,611
6.00% 2019 1,435 1,457
Fairview Obligated General Project,
1995 Series A:
6.50% 2006 770 796
7.40% 2023 3,000 3,015
Rev. and Rev. Ref. Bonds:
Evangelical Hospitals Corp., Series C, 4,000 4,610
6.25% 2022 (Escrowed to Maturity)
Lutheran General Health, Series C, 6.00% 2018 2,705 2,844
Housing Dev. Auth., Multi-family Housing Bonds, 1,490 1,529
1992 Series A, 7.00% 2010
Metropolitan Pier and Exposition Auth.,
McCormick Place Expansion Project Bonds:
Series 1992A, 6.50% 2027 (Preref. 2003) 3,910 4,230
Ref. Bonds, Series 1996A, MBIA Insured, 0% 2024 5,000 1,445
City of Chicago:
G.O. Bonds, Series 1999, FGIC Insured:
City Colleges of Chicago Capital Improvement 7,700 3,835
Project, 0% 2016
Emergency Telephone System, Ref. Bonds, 2,000 2,093
5.25% 2020
Chicago O'Hare International Airport:
Rev. Ref. Senior Lien Bonds, Series 1993 A, 5,815 6,089
MBIA-IBC Insured, 5.00% 2012
Special Fac. Rev. Ref. Bonds:
Series 1994 (American Airlines, Inc. Project) 2,750 2,695
8.20% 2024
Series 1999A (United Air Lines, Inc. Project) 13,355 6,677
5.35% 2016
Metropolitan Water Reclamation Dist. of Greater
Chicago, Cook County, G.O. Bonds:
Capital Improvement Bonds:
Series of March 1993, 5.25% 2010 2,275 2,524
Series B 5.25% 2004 5,000 5,390
Ref. Bonds, Series B 5.30% 2005 5,325 5,794
School Reform Board of Trustees of the Board of
Education of the City of Chicago:
Unlimited Tax G.O. Bonds, AMBAC Insured:
Series 1997, 6.75% 2012 1,000 1,214
Series 1997A, 0% 2011 2,745 1,766
Dedicated Tax Rev., G.O. Bonds, AMBAC Insured,
Series 1997A:
0% 2014 7,085 3,797
0% 2015 3,245 1,634
Series 1998B, FGIC Insured, 0% 2014 2,000 1,072
Skyway Toll Bridge Ref. Rev. Bonds, Series 1994
(Preref. 2004):
6.50% 2010 9,750 10,692
6.75% 2014 4,500 4,955
Tax Increment Allocation Bonds (Central Loop Redev.
Project), Capital Appreciation Bonds, Series 2000A,
AMBAC Insured:
0% 2007 7,000 5,622
0% 2008 7,000 5,345
Water Rev. Bonds, Series 1997, FGIC Insured, 0% 2014 3,500 1,902
County of Cook, G.O. Capital Improvement Bonds:
Series 1996, FGIC Insured, 6.50% 2011 4,000 4,750
Series 2002 C, AMBAC Insured, 5.00% 2025 3,000 2,911
Regional Transportation Auth., Cook, Du Page, 4,500 5,985
Kane, Lake, McHenry and Will Counties,
G.O. Bonds, Series 1994D, FGIC Insured, 7.75% 2019
Township High School Dist. Number 205, Cook County 4,730 3,619
(Thornton), G.O. Limited Capital Appreciation Bonds,
Series 1998D, FSA Insured, 0% 2008
University of Illinois, Cert. of Part., Series A, 3,530 3,731
AMBAC Insured, 5.375% 2015
Indiana - 3.66%
State Dev. Fin. Auth.:
Pollution Control Rev. Bonds (Inland Steel Co. 2,500 475
Project No. 12), 6.85% 2012
Rev. Ref. Bonds, Exempt Fac.-Inland Steel, 4,000 560
5.75% 2011
Educational Facs. Auth., Educational Facs. Rev. Bonds 1,000 1,033
(University of Evansville Project), Series 1996,
5.25% 2005
Health Fac. Fncg. Auth., Hospital Rev. Bonds:
Charity Obligated Group:
Series 1997D, 5.00% 2026 (Preref. 2007) 14,685 15,520
Series 1999D, 5.25% 2016 3,000 3,058
Clarian Health Partners, Inc., Series 1996A:
MBIA Insured, 5.25% 2008 1,700 1,825
MBIA Insured, 5.50% 2016 4,000 4,153
5.50% 2016 10,250 10,461
Holy Cross Health System Corp., Series 1998, 7,095 7,590
MBIA Insured, 5.375% 2010
The Methodist Hospitals, Inc., Series 2001, 2,000 1,975
5.50% 2031
Sisters of St. Francis Health Services, Inc. 1,000 1,067
Project, Series 1997A, MBIA Insured, 5.00% 2008
Housing Fin. Auth., Single Family Mortgage 1,275 1,309
Ref. Rev. Bonds, 1992 Series A, 6.75% 2010
State Office Building Commission, Correctional 8,490 9,933
Facs. Program Rev. Bonds, Series 1995B,
AMBAC Insured, 6.25% 2012
State Revolving Fund Program Bonds,
Series 2001A:
5.375% 2013 2,000 2,178
5.375% 2014 2,000 2,173
5.375% 2015 4,000 4,311
5.375% 2015 2,250 2,425
Transportation Fin. Auth., Airport Facs.
Lease Rev. Bonds, Series A:
6.50% 2007 1,000 1,047
6.50% 2007 (Preref. 2002) 3,755 3,958
6.75% 2011 (Preref. 2002) 2,400 2,534
Boone County Hospital Association, Lease Rev. 1,255 1,319
Bonds, Series 2001, FGIC Insured, 5.00% 2010
City of East Chicago, Pollution Control 3,000 420
Rev. Ref. Bonds, Inland Steel Co.
Project No. 11, Series 1994, 7.125% 2007
Hospital Auth. of the City of Fort Wayne,
Rev. Bonds (Parkview Memorial Hospital Inc.
Project), Series 1992:
6.375% 2013 (Preref. 2002) 4,000 4,219
6.40% 2022 (Preref. 2002) 2,000 2,110
Marion County, Convention and Recreational 3,370 3,611
Facs. Auth., Excise Taxes Lease Rental Rev.
Ref. Senior Bonds, Series 2001A, MBIA Insured,
5.50% 2015
The Trustees of Purdue University, Purdue 1,250 1,331
University Student Fee Bonds, Series R,
5.375% 2015
Iowa - 1.14%
Fin. Auth.:
Econ. Dev. Rev. Bonds (Foundation for 1,500 1,564
Affordable Housing Project), Series 2000A,
FNMA Insured, 5.65% 2033 (Put 2013)
Hospital Rev. Bonds (Mercy Medical Center
Project), Series 1999, FSA Insured:
5.50% 2011 1,420 1,539
5.60% 2012 1,375 1,488
Rev. and Ref. Bonds:
Mercy Health Services Obligated Group, 590 627
1997 Series V, 5.00% 2010 (Escrowed to Maturity)
Trinity Health Credit Group, Series 2000B, 5,000 5,344
AMBAC Insured, 6.00% 2027
Rev. Bonds (Catholic Health Initiatives), 3,000 3,164
Series 2000A, 6.00% 2018
Single Family Mortgage Bonds, 1997 Series F, 1,760 1,814
5.55% 2016 Polk County, Catholic Health
Initiatives, Rev. Bonds, Series 1997A:
5.50% 2007 1,520 1,644
5.125% 2011 1,500 1,557
5.125% 2012 3,170 3,274
Tobacco Settlement Auth., Asset-Backed Bonds,
Series 2001B:
5.50% 2012 3,000 3,098
5.50% 2014 3,000 3,050
Kentucky - 1.11%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare,
Inc.), MBIA Insured, Series 2000A:
6.50% 2020 8,500 8,765
6.625% 2028 5,500 5,673
Hospital System Ref. and Improvement Rev. Bonds
(Appalachian Regional Healthcare, Inc. Project),
Series 1997:
5.20% 2004 1,540 1,491
5.60% 2008 630 579
5.60% 2009 3,305 2,989
5.70% 2010 490 439
5.75% 2011 2,190 1,936
5.85% 2017 2,000 1,666
City of Ashland, Pollution Control Ref. 3,750 3,969
Rev. Bonds, Series 1999 (Ashland Inc. Project),
5.70% 2009
Louisiana - 4.59%
Health Education Auth. (Lambeth House Project):
Rev. Bonds, Series 1996, 9.00% 2026 9,000 11,406
(Preref. 2006)
Rev. Ref. Bonds, Series 1998A:
5.50% 2010 3,505 3,249
6.15% 2018 2,000 1,810
6.20% 2028 3,950 3,415
Local Government Environmental Facs. And 11,500 13,761
Community Dev. Auth., Rev. Bonds, Capital
Project and Equipment Acquisition Program),
Series 2000A, AMBAC Insured, 6.30% 2030
Public Facs. Auth., Hospital Rev. Ref. Bonds
(Franciscan Missionaries of Our Lady Health
System Project), Series 1998A, FSA Insured:
5.75% 2014 3,495 3,910
5.75% 2015 3,825 4,274
5.75% 2018 4,000 4,396
Jefferson Parish Hospital Services:
Dist. No. 1 Parish of Jefferson (West Jefferson
Medical Center), Hospital Rev. Bonds, Series 1998A,
FSA Insured:
5.25% 2011 2,070 2,198
5.25% 2012 1,930 2,037
Dist. No. 2, Parish of Jefferson, Hospital Rev. 2,000 2,142
Bonds, Series 1998A, FSA Insured, 5.25% 2011
Lake Charles Harbor and Terminal Dist., Port 24,000 25,250
Facs. Rev. Ref. Bonds (Trunkline LNG Co. Project),
Series 1992, 7.75% 2022
Parish of Morehouse, Pollution Control Rev. Ref. 5,000 5,026
Bonds, 2001 Series A, 5.25% 2013
Tobacco Settlement Auth., Asset-Backed Bonds, 15,000 14,714
Series 2001B, 5.50% 2030
Parish of West Feliciana, Pollution Control Rev.
Bonds (Gulf States Utilities Co. Project):
Entergy Gulf States, Inc. Project, Series 1999A, 13,500 14,004
5.65% 2028 (Put 2004)
Series 1990, 9.00% 2015 2,000 2,035
Maine - 0.23%
Health and Higher Educational Facs. Auth.,
Rev. Bonds, Piper Shores Issue, Series 1999A:
7.50% 2019 3,000 3,083
7.55% 2029 2,575 2,618
Maryland - 1.12%
Community Dev. Administration, Dept. of Housing 5,815 6,162
and Community Dev., Single Family Program Bonds,
1997 First Series, 5.25% 2005
Health and Higher Educational Facs. Auth.:
First Mortgage Rev. Bonds, PUMH of Maryland, 2,400 2,380
Inc. Issue (Heron Point of Chestertown),
Series 1998A, 5.75% 2019
Rev. Bonds, Howard County General Hospital Issue,
Series 1993 (Escrowed to Maturity):
5.50% 2013 2,000 2,131
5.50% 2021 1,225 1,279
Anne Arundel County:
Econ. Dev. Corp., Rev. Bonds (Golf 2,200 2,210
Course System), Series 2001, 8.25% 2028
Special Obligation Bonds:
Arundel Mills Project, Series 1999, 5,750 6,165
7.10% 2029
National Business Park Project, Series 2000, 1,000 1,075
7.375% 2028
Calvert County, Econ. Dev. Rev. Bonds 2,500 2,930
(Asbury-Solomons Island Fac.),
Series 1995, 8.625% 2024 (Preref. 2005)
Frederick County, Special Obligation Bonds 2,500 2,546
(Urbana Community Dev. Auth.),
Series 1998, 6.625% 2025
Prince George's County, Hospital Rev. Bonds, 750 780
Dimensions Health Corp. Issue, Series 1992,
7.25% 2017 (Preref. 2002)
Massachusetts - 0.73%
G.O. Bonds, Consolidated Loan of 2001, Series D, 2,000 2,234
MBIA Insured, 5.50% 2012
Massachusetts Bay Transportation Auth., General 5,000 5,796
Transportation System Bonds, 1994 Series A Ref.
Bonds, 7.00% 2007
Health and Educational Facs. Auth.Rev. Bonds:
Massachusetts Institute of Technology Issue,
Series K:
5.375% 2017 1,000 1,089
5.50% 2022 2,000 2,176
Partners HealthCare System Issue, Series C:
6.00% 2015 1,335 1,442
6.00% 2016 1,520 1,631
Municipal Wholesale Electric Company, Power 2,000 2,104
Supply Project Revenue Bonds, Nuclear Project
No.4 Issue, MBIA Insured, 5.25% 2015
The New England Loan Marketing Corp., Student 1,500 1,522
Loan Ref. Bonds, 1993 Series G, 5.20% 2002
Michigan - 4.49%
Building Auth., 2001 Rev. Ref. Bonds, Series I 3,000 3,229
(Facs. Program), 5.50% 2016
Hospital Fin. Auth.:
Hospital Rev. Bonds:
The Detroit Medical Center Obligated Group,
Series 1998A:
5.00% 2013 1,000 897
5.00% 2014 1,525 1,347
5.25% 2028 3,000 2,399
Henry Ford Health System, Series 1999A:
5.70% 2011 2,985 3,196
5.80% 2012 1,075 1,151
Spectrum Health:
Series 2001A, 5.50% 2014 1,000 1,055
Series 2001B, 5.50% 2017 1,100 1,136
Hospital Rev. Ref. Bonds:
Daughters of Charity, National Health System, 970 1,034
5.50% 2005 (Escrowed to Maturity)
The Detroit Medical Center Obligated Group:
Series 1993A, 6.375% 2009 2,000 2,035
Series 1993B, AMBAC Insured, 5.00% 2006 1,000 1,058
Genesys Health System Obligated Group, Series 1995A:
7.10% 2002 (Escrowed to Maturity) 285 295
7.20% 2003 (Escrowed to Maturity) 1,000 1,082
8.00% 2005 (Escrowed to Maturity) 8,880 10,472
8.10% 2013 (Preref. 2005) 5,000 6,003
8.125% 2021 (Preref. 2005) 4,500 5,407
7.50% 2027 (Preref. 2005) 4,520 5,255
Hackley Hospital Obligated Group, Series 1998A:
5.00% 2008 1,215 1,216
5.30% 2013 2,400 2,336
McLaren Obligated Group, Series 1993A, 5.375% 2013 2,985 3,019
Pontiac Osteopathic, Series 1994A:
5.375% 2006 695 688
6.00% 2014 1,000 947
6.00% 2024 4,775 4,186
Sinai Hospital of Greater Detroit, Series 1995:
6.00% 2008 2,000 2,021
6.625% 2016 2,010 2,019
Sparrow Obligated Group, Series 2001:
5.25% 2010 1,000 1,038
5.25% 2011 1,285 1,327
Variable Rate Rev. Bonds (Ascension Health Credit Group):
Series 1999B-3, 5.30% 2033 (Put 2006) 5,625 5,966
Series 1999B-4, 5.375% 2033 (Put 2007) 3,000 3,179
Housing Dev. Auth., Rental Housing Rev. Bonds 1994, 1,600 1,637
Series A, 6.20% 2003
Municipal Bond Auth., Public School Academy Facs. Program
Special Obligation Rev. Bonds:
Detroit Academy of Arts and Sciences Project,
Series 2001A:
7.90% 2021 1,000 1,045
8.00% 2031 1,000 1,049
YMCA Service Learning Academy Project, Series 2001, 4,150 4,281
7.75% 2031
State Revolving Fund Rev. Bonds, Clean Water Revolving 5,000 5,252
Fund Rev. Bonds, Series 2001, 5.25% 2016
Strategic Fund, Limited Obligation Ref. Rev. Bonds 1,000 1,040
(Detroit Edison Co. Pollution Control Bonds Project),
Series 1995CC, AMBAC Insured, 4.85% 2030 (Put 2011)
Trunk Line Fund Bonds, Series 2001A, 5.50% 2015 4,000 4,329
City of Detroit:
G.O. Rev. Bonds (Unlimited Tax), Series 1995B:
7.00% 2004 2,500 2,723
6.25% 2008 1,730 1,855
6.25% 2009 1,195 1,273
6.25% 2010 1,250 1,327
Downtown Dev. Auth., Tax Increment Bonds (Dev. Area No. 2,900 3,324
1 Projects), Series 1996C, 6.20% 2017 (Preref. 2006)
School Dist. of the City of Detroit, Wayne County, 1,955 2,042
School Building and Site Improvement Ref. Bonds,
Series 1998C, FGIC Insured, 5.25% 2025
City of Flint, Hospital Building Auth. (Hurley Medical
Center):
Rev. Ref. Bonds, Series 1998A, 5.25% 2016 1,250 1,166
Rev. Rental Bonds, Series 1998B, 5.375% 2028 1,000 878
City of Royal Oak, Hospital Fncg. Auth., Hospital Rev. 3,000 3,008
Ref. Bonds (William Beaumont Hospital), Series 1993G,
5.25% 2019
Minnesota - 0.06%
Housing Fin. Agcy., Single Family Mortgage Bonds, 1,390 1,447
1994 Series E, 5.60% 2013
Mississippi - 0.34%
Development Bank, Special Obligation Bonds (Capital 7,500 7,423
Projects and Equipment Acquisition Program), Series 2001A,
AMBAC Insured, 5.00% 2031
Hospital Equipment and Facs. Auth., Rev. Bonds, Series 1,000 1,023
2000 (Forrest County General Hospital Project), FSA
Insured, 5.50% 2027
Nebraska - 0.01%
City of Kearney, Industrial Dev. Rev. Bonds (The Great 2,750 323
Platte River Road Memorial Foundation Project),
Series 1998, 6.75% 2028
Nevada - 2.22%
Housing Division, Single Family Mortgage Bonds, 720 724
1999 Series A-1, 4.75% 2012
Clark County:
G.O. (Limited Tax) Bond Banks Bonds, Series 2001, 3,000 3,214
FGIC Insured, 5.50% 2016
Special Improvement Dist. No. 121 (Southern Highlands
Area), Local Improvement Bonds, Series 1999:
7.00% 2009 2,500 2,655
7.50% 2019 14,000 14,889
Special Improvement Dist. No. 132 (Summerlin South Area 2,235 2,276
(Villages 15A and 18)), Local Improvement Bonds,
Series 2001, 6.75% 2021
City of Henderson:
Health Fac. Rev. Bonds (Catholic Healthcare West), 7,000 6,271
1998 Series A, 5.375% 2026
Local Improvement Dist. No. T-4C (Green Valley
Properties), Limited Obligation Ref. Bonds,
1999 Series A:
5.65% 2009 1,495 1,529
5.75% 2013 3,990 3,918
5.90% 2018 2,990 2,906
City of Las Vegas:
G.O. (Limited Tax) Sewer and Flood Control Bonds, 2,855 3,043
Series 2001, FGIC Insured, 5.375% 2015
Special Improvement Dist. No. 808 (Summerlin Area),
Local Improvement Bonds, Series 2001:
6.00% 2010 1,000 1,016
6.375% 2014 2,080 2,122
6.75% 2021 4,500 4,583
Las Vegas Monorail Project Rev. Capital Appreciation 3,545 2,532
Bonds, 1st Tier Series 2000, AMBAC Insured, 0% 2010
Truckee Meadows Water Auth., Water Rev. Bonds, 3,105 3,328
Series 2001A, FSA Insured, 5.50% 2016
New Hampshire - 0.04%
Health and Education Facs. Auth., Exeter Hospital 1,000 1,001
Obligated Group Issue, Series 2001A, 5.75% 2031
New Jersey - 2.15%
Econ. Dev. Auth.:
Econ. Dev. Bonds, Kapkowski Road Landfill Reclamation
Improvement Dist. Project (City of Elizabeth),
Series 1998A:
6.375% 2018 1,000 1,121
6.375% 2031 6,500 7,286
First Mortgage Rev. Fixed-Rate Bonds:
Fellowship Village Project, Series 1995A, 9.25% 2025 7,000 8,339
(Preref. 2005)
Winchester Gardens at Ward Homestead Project,
Series 1996A:
8.50% 2016 4,000 4,288
8.625% 2025 3,500 3,743
First Mortgage Rev. Ref. Bonds (Fellowship Village
Project), Series 1998A:
4.95% 2005 1,230 1,251
5.50% 2018 2,295 2,185
Tax-Exempt Term Bonds, 5.50% 2025 3,000 2,762
Retirement Community Rev. Bonds:
Cedar Crest Village, Inc. Fac., Series A, 7.25% 2031 9,000 8,827
Seabrook Village, Inc. Fac., Series 2000A, 8.25% 2030 6,000 6,342
Housing and Mortgage Fin. Agcy., Section 8 Bonds,
1991 Series A:
6.80% 2005 2,570 2,625
6.85% 2006 2,500 2,554
Gloucester County Improvement Auth., Solid Waste Resource 1,585 1,763
Recovery Rev. Ref. Bonds (Waste Management, Inc.
Project), Series 1999A, 6.85% 2029 (Put 2009)
New Mexico - 0.17%
Supplemental Severance Tax Bonds, Series 2002A, 3,945 4,120
5.00% 2010
New York - 5.44%
Dormitory Auth.:
Center for Nursing/Rehabilitation, Inc. Rev. Bonds, 2,100 2,216
FHA Insured, 5.45% 2017
City University System Consolidated Third General 2,000 2,222
Resolution Rev. Bonds, 1998 Series 2, AMBAC Insured,
5.50% 2008
Edgar Health Care Center (Nursing Home) Rev. Bonds, 2,375 2,437
FHA Insured, 4.90% 2013
Mental Health Services Facs. Improvement Rev. Bonds:
Series 1997A, 6.00% 2007 1,750 1,965
Series 1997B:
6.00% 2007 2,490 2,796
6.00% 2007 (Preref. 2007) 10 12
5.60% 2008 1,300 1,433
Series 1998B:
5.375% 2009 1,270 1,390
5.00% 2010 1,495 1,596
5.00% 2010 1,530 1,633
Series 1998C, 5.00% 2010 1,760 1,878
Secured Hospital:
Rev. Bonds (Interfaith Medical Center), Series 1998D, 2,000 2,156
5.25% 2007
Rev. Ref. Bonds:
Bronx-Lebanon Hospital Center, Series 1998E, 8,520 8,902
MBIA Insured, 5.20% 2014
Brookdale Hospital, Series 1998J, 5.125% 2009 2,500 2,675
St. Luke's-Roosevelt Hospital Center, Mortgage Hospital 5,000 5,276
Rev. Bonds, Series 2000A, FHA Insured, 5.75% 2021
State University Educational Facs.:
Rev. Bonds:
Series 1990B, 7.50% 2011 1,160 1,385
Series 1990B, 7.50% 2011 (Preref. 2010) 560 706
Series 1997, 6.00% 2007 3,000 3,377
Rev. Ref. Bonds, Series 1990A, 7.50% 2013 3,500 4,479
Housing Fin. Agcy.:
Health Facs. Rev. Bonds (New York City), 3,000 3,331
1996 Series A Ref., 6.00% 2006
Service Contract Obligation Rev. Ref. Bonds, 1,750 1,870
Series 1997C, 5.20% 2010
Local Government Assistance Corp.:
Series 1991C, Capital Appreciation Bonds, 0% 2005 5,000 4,600
Series 1991D:
7.00% 2011 (Preref. 2002) 2,000 2,050
6.75% 2021 (Preref. 2002) 1,350 1,384
State Medical Care Facs. Fin. Agcy.:
Hospital Insured Mortgage Rev. Bonds, 1994 Series A,
FHA Insured:
5.10% 2010 1,845 1,956
5.25% 2014 5,000 5,225
Mental Health Services Facs. Improvement Rev. Bonds, 1,000 1,002
1993 Series D, 5.25% 2023
St. Luke's-Roosevelt Hospital Center, FHA Insured 12,005 12,847
Mortgage Rev. Bonds, 1993 Series A, 5.60% 2013
Thruway Auth., Local Highway and Bridge Service Contract 2,500 2,649
Bonds, Series 2001, 5.25% 2015
Urban Dev. Corp., Correctional Capital Facs. Rev. Bonds:
Ref. Series 1993A, 5.30% 2005 1,800 1,924
Series 7, 5.25% 2009 1,375 1,480
Castle Rest Residential Health Care Fac., FHA Insured, 1,700 1,736
Mortgage Rev. Bonds, Series 1997A, 5.60% 2017
City of New York:
G.O. Bonds:
Fiscal 1992 Series C, 6.50% 2004 (Preref. 2002) 470 487
Fiscal 1995 Series F:
6.60% 2010 (Preref. 2005) 2,000 2,260
6.625% 2025 (Preref. 2005) 1,500 1,696
Fiscal 1996 Series E, 6.50% 2006 3,000 3,346
Fiscal 2001 Series F:
5.00% 2010 1,500 1,572
5.25% 2011 6,260 6,654
Fiscal 2001 Series H, 5.25% 2016 3,510 3,613
Fiscal 2002 Series B, 5.50% 2012 7,810 8,411
Transitional Fin. Auth., Future Tax Secured Bonds:
Fiscal 1998 Series A, 5.00% 2027 1,500 1,476
Fiscal 1998 Series B, 4.50% 2027 5,000 4,488
Fiscal 1998 Series C, 5.00% 2018 2,000 2,025
Fiscal 2001 Series C, 5.375% 2015 2,000 2,148
Suffolk County Industrial Dev. Agcy., Continuing Care 2,000 2,016
Retirement Community Rev. Bonds (Peconic Landing at
Southhold, Inc. Project), Series 2000, 8.00% 2030
Triborough Bridge and Tunnel Auth., General
Purpose Rev. Bonds:
Series 2001A, 5.25% 2016 2,500 2,638
Series Y, 6.00% 2012 1,000 1,152
North Carolina - 2.32%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Ref. Series 1993B:
6.00% 2006 3,120 3,346
7.25% 2007 5,425 6,118
7.00% 2008 10,720 12,094
6.125% 2009 2,000 2,165
6.00% 2022 2,000 2,056
6.00% 2026 1,990 2,038
MBIA Insured, 6.00% 2026 2,500 2,859
Series 1993C, 5.00% 2021 2,300 2,093
Ref. Series 1999B:
5.55% 2014 1,800 1,831
5.60% 2015 2,500 2,536
5.65% 2016 2,000 2,022
5.70% 2017 4,775 4,814
Series 1999D, 6.75% 2026 3,500 3,725
Municipal Power Agcy. Number One (Catawba Electric
Rev. Bonds):
Series 1992, 6.25% 2017 2,000 2,091
Series 1999A, MBIA Insured, 6.00% 2008 3,935 4,405
County of Catawba, Hospital Ref. Rev. Bonds (Catawba 1,000 1,041
Memorial Hospital Project), Series 1999, AMBAC Insured,
4.60% 2010
County of New Hanover, Hospital Rev. Bonds (New Hanover 1,995 2,152
Regional Medical Center Project), Series 1999,
MBIA Insured, 5.25% 2011
Ohio - 0.43%
Pollution Control Dev. Auth, Water Loan Rev. Bonds, 2,000 2,130
Series 2002, 5.25% 2015
County of Knox, Hospital Facs. Ref. Rev. Bonds, 2,175 2,263
Series 1998 (Knox Community Hospital), Asset Guaranty
Insured, 4.60% 2007
County of Lorain, Health Care Facs. Rev. Ref. Bonds 2,000 1,758
(Kendal at Oberlin), Series 1998A, 5.25% 2021
County of Montgomery, Hospital Facs. Rev. Bonds 1,000 1,050
(Kettering Medical Center Network Obligated Group),
Series 1999, 6.75% 2022
County of Richland, Hospital Facs. Rev. Improvement Bonds
(MedCentral Health System Obligated Group), Series 2000B:
6.375% 2022 1,250 1,313
6.375% 2030 2,000 2,089
Oklahoma - 0.45%
Health System Rev. Bonds, Baptist Medicine Center of 2,500 2,744
Oklahoma, Series 1995C, AMBAC Insured, 6.375% 2009
Industrial Auth., Health System Rev. Ref. Bonds (Obligated 2,500 2,807
Group consisting of INTEGRIS Baptist Medical Center, Inc.,
INTEGRIS South Oklahoma City Hospital Corp. and INTEGRIS
Rural Health, Inc.), AMBAC Insured, 6.00% 2009
Industries Auth., Health Facs. Rev. Ref. Bonds (Sisters 2,505 2,531
of Mercy Health System, St. Louis, Inc.), Series 1993A,
5.00% 2013
Tulsa Industrial Auth., Hospital Rev. and Ref. Bonds, 3,000 3,035
St. John Medical Center Project, Series 1996, 5.375% 2017
Oregon - 0.89%
City of Klamath Falls, Electric Rev. Ref. Bonds
(Klamath Cogeneration Project), Series 1999:
5.75% 2013 3,000 3,096
5.875% 2016 3,500 3,551
6.00% 2025 15,290 15,403
Pennsylvania - 4.59%
Convention Center Auth., Ref. Rev. Bonds, 1994 Series A, 6,370 6,733
6.25% 2004
Higher Educational Facs. Auth.:
Rev. Bonds (Thomas Jefferson University), 1992 Series A:
MBIA Insured, 6.625% 2009 375 391
6.625% 2009 (Preref. 2002) 875 913
UPMC Health System Rev. Bonds, Series 1999A, 2,000 2,132
FSA Insured, 5.00% 2009
Housing Fin. Agcy., Rental House Ref. Bonds, FNMA Insured:
Issue 1992, 6.50% 2023 2,000 2,058
Issue 1993, 5.80% 2018 1,000 1,026
Housing Fin. Auth., Single Family Mortgage Rev. Bonds, 1,000 1,025
Series 1992-33, 6.85% 2009
Allegheny County, Cert. of Part. (ACJCT Fac. Holdings 2,150 2,152
L.P.), AMBAC Insured, 5.00% 2019
Allegheny County Hospital Dev. Auth.:
Health System Rev. Bonds, Catholic Health East Issue,
Series 1998A, AMBAC Insured:
5.50% 2008 1,000 1,101
5.00% 2010 2,705 2,868
UPMC Health System Rev. Ref. Bonds, Series 1999B, 5,160 5,609
AMBAC Insured, 5.25% 2008
Port Auth. of Allegheny County, Special Rev. 1,000 1,086
Transportation Bonds, Ref. Series of 2001, FGIC Insured,
5.50% 2015
Chester County Health and Education Facs. Auth., Health 4,150 4,088
System Rev. Bonds (Jefferson Health System),
Series 1997B, 5.375% 2027
Delaware County Auth., Rev. Bonds, Catholic Health Systems, 2,465 2,590
Series A, AMBAC Insured, 5.00% 2010
Lehigh County, General Purpose Auth. Rev. Bonds 1,500 1,615
(KidsPeace Obligated Group), ACA Insured, 5.70% 2009
Montgomery County Industrial Dev. Auth.:
Retirement Community Rev. Ref. Bonds (Adult Communities 1,000 1,007
Total Services, Inc. Obligated Group), Series 1996A,
5.875% 2022
Retirement Community Rev. Bonds (ACTS Retirement-Life 17,500 16,121
Communities, Inc. Obligated Group), Series 1998,
5.25% 2028
Hospitals and Higher Education Facs. Auth. of Philadelphia:
Frankford Hospital, Series A (Escrowed to Maturity):
6.00% 2014 3,705 3,961
6.00% 2023 4,000 4,124
Health System Rev. Bonds (Jefferson Health System),
Series 1997A:
5.50% 2006 2,285 2,447
5.50% 2007 1,995 2,133
5.50% 2008 2,000 2,141
5.00% 2009 1,000 1,034
5.00% 2010 1,000 1,026
5.00% 2018 1,475 1,411
Temple University Hospital Rev. Bonds:
Series of 1993A, 6.50% 2008 13,960 14,566
Series of 1997, 5.70% 2009 1,000 1,006
Philadelphia Auth. for Industrial Dev., Rev. Bonds 2,815 2,746
(Cathedral Village Project), Series of 1998, 5.50% 2010
City of Pottsville Hospital Auth., Hospital Rev. Bonds 8,500 9,553
(The Pottsville Hospital and Warne Clinic), Series of
1994, 7.25% 2024 (Preref. 2004)
Scranton-Lackawanna Health and Welfare Auth., City of
Scranton, Lackawanna County, Hospital Rev. Bonds
(Moses Taylor Hospital Project), Series 1997:
6.05% 2010 1,000 927
6.15% 2012 2,245 2,035
6.15% 2014 3,000 2,638
6.20% 2017 3,000 2,570
Westmoreland County, Health Care Fac. Rev. Bonds 6,500 6,832
(Redstone Presbyterian SeniorCare Obligated Group),
Fixed Rate Rev. Bonds, Series 2000B, 8.125% 2030
Puerto Rico - 0.06%
The Children's Trust Fund, Tobacco Settlement 1,500 1,561
Asset-Backed Bonds, Series 2000, 5.75% 2020
Rhode Island - 0.40%
Depositors Econ. Protection Corp., Special Obligation
Bonds, 1993 Series A:
MBIA Insured, 5.75% 2012 4,850 5,530
5.75% 2021 2,715 3,018
5.75% 2021 (Escrowed to Maturity) 1,210 1,345
South Carolina - 1.56%
Florence County, Hospital Rev. Bonds, McLeod Regional 2,785 3,003
Medical Center Project, MBIA Insured, Series 1998A,
5.25% 2010
Georgetown County, Pollution Control Rev. Ref. Bonds 2,500 2,496
(International Paper Company Projects), 1999 Series A,
5.125% 2012
Lexington County Health Services Dist. Inc., Hospital
Rev. Ref. and Improvement Bonds, Series 1997,
FSA Insured:
5.50% 2007 2,000 2,193
5.00% 2009 1,000 1,065
Piedmont Municipal Power Agcy., Electric Rev. Bonds:
1991 Ref. Series, FGIC Insured, 6.25% 2021 4,640 5,345
1999A Ref. Series, 5.25% 2015 8,420 7,931
Tobacco Settlement Rev. Management Auth., Tobacco 16,090 16,502
Settlement Asset-Backed Bonds, Series 2001B, 6.00% 2022
South Dakota - 0.64%
Building Auth., Rev. Capital Appreciation Bonds, 3,780 2,051
Series 1996A, AMBAC Insured, 0% 2014
Health and Educational Facs. Auth., Rev. Ref. Bonds,
Series 1999 (Rapid City Regional Hospital Issue),
MBIA Insured:
5.00% 2007 2,045 2,180
5.00% 2009 4,010 4,220
5.00% 2010 4,175 4,357
Housing Dev. Auth., Homeownership Mortgage Bonds, 3,000 3,119
1995 Series A, 5.80% 2014
Tennessee - 0.96%
Health and Education Facs. Board of the Metropolitan 6,600 7,730
Government of Nashville and Davidson County, Rev.
Bonds (Blakeford Project), Series 1994A, 9.25% 2024
(Preref. 2004)
Memphis-Shelby County Airport Auth., Special Facs. 13,100 13,465
Rev. Bonds, Ref. Series 1992 (Federal Express Corp.)
6.75% 2012
Shelby County, G.O. School Bonds, 1991 Series A, 0% 2011 3,750 2,448
Texas - 10.17%
Public Fin. Auth., G.O. Ref. Bonds:
Series 2001A, 5.375% 2016 2,540 2,688
Series 2002, 5.25% 2007 3,760 4,091
City of Austin (Travis and Williamson Counties), Water 6,800 7,432
and Wastewater System Rev. Ref. Bonds, Series 2001B,
FSA Insured, 5.75% 2016
Bell County Health Facs. Dev. Corp., Retirement Fac.
Rev. Bonds (Buckner Retirement Services, Inc. Obligated
Group Project), Series 1998:
5.25% 2009 1,620 1,679
5.00% 2010 1,705 1,725
5.25% 2028 9,400 8,659
Brazos River Auth., Rev. Ref. Bonds (Houston Industries 3,360 3,445
Incorporated Project), MBIA Insured, 4.90% 2015
Industrial Dev. Corp. of Port of Corpus Christi, Rev. 10,300 10,189
Ref. Bonds (Valero Refining and Marketing Co. Project),
Series C, 5.40% 2018
Cypress-Fairbanks Independent School Dist. (Harris County):
Unlimited Tax Ref. Bonds, Capital Appreciation Bonds, 6,675 3,985
Series 1993A, 0% 2013
Unlimited Tax Ref. and Schoolhouse Bonds, Series 2001, 3,500 3,662
5.25% 2016
City of Dallas:
G.O. Limited Tax Bonds:
5.00% 2014 3,400 3,536
5.00% 2015 2,000 2,065
Waterworks and Sewer System Rev. Ref. Bonds (Dallas, 1,285 1,378
Denton, Collin and Rockwall Counties), Series 2002,
5.00% 2009
Dallas County, Unlimited Tax Ref. and Improvement Bonds,
G.O. Ref. Bonds, Series 2001A:
5.375% 2013 2,465 2,660
5.375% 2015 3,725 3,972
DeSoto Independent School Dist. (Dallas County),
Unlimited Tax School Building and Ref. Bonds, Series
2001 Capital Appreciation Bonds:
0% 2018 2,835 1,206
0% 2019 3,335 1,329
0% 2020 3,335 1,251
Eanes Independent School Dist. (Travis County),
Unlimited Tax School Building Bonds, Series 2001:
5.50% 2014 2,050 2,217
5.50% 2015 2,150 2,313
5.50% 2016 1,125 1,204
Garland Independent School Dist. (Dallas County),
Unlimited Tax Ref. and School Building Bonds,
Series 2001:
5.50% 2013 2,170 2,334
5.50% 2015 2,420 2,580
Harris County, Unlimited Tax Road G.O. Ref. Bonds, 2,500 2,662
Series 2001, 5.375% 2015
Harris County Health Facs. Dev. Corp:
Hospital Rev. Bonds (Memorial Hermann Hospital
System Project):
Series 1998, FSA Insured:
5.25% 2008 1,890 2,029
5.50% 2011 5,000 5,456
5.50% 2014 4,790 5,207
5.50% 2015 10,325 11,191
Series 2001A, 6.375% 2029 13,900 14,570
Rev. Bonds:
CHRISTUS Health, Series 1999A, MBIA Insured, 3,380 3,602
5.50% 2010
St. Luke's Episcopal Hospital, Series 2001A:
5.625% 2014 1,000 1,055
5.625% 2015 2,500 2,620
5.625% 2016 2,700 2,808
5.625% 2018 2,000 2,059
5.50% 2020 4,000 4,045
5.50% 2021 5,740 5,784
Hidalgo County Health Services Corp., Hospital Rev.
Bonds (Mission Hospital, Inc. Project), Series 1996:
7.00% 2008 1,000 1,028
6.75% 2016 1,740 1,673
City of Houston, Water and Sewer System, Junior Lien Rev. 3,000 1,169
Ref. Bonds, Series 1998A, FSA Insured, 0% 2019
Jefferson County, Health Facs. Dev. Corp., Baptist 4,000 3,980
Hospitals of Southeast Texas, FHA Insured Mortgage
Rev. Bonds, Series 2001, AMBAC Insured, 5.20% 2021
Katy Independent School Dist. (Fort Ben, Harris and
Waller Counties), Limited Tax Ref. Bonds, Series 2001:
5.50% 2015 1,290 1,384
5.50% 2016 1,805 1,927
Keller Independent School Dist. (Tarrant County), 6,040 3,749
Unlimited Tax School Building and Ref. Capital
Appreciation Bonds, Series 2001, 0% 2012
Ladero Independent School Dist. (Webb County), 2,000 2,124
Unlimited Tax School Building and Ref. Bonds,
Series 2001, 5.375% 2015
Lewisville Independent School Dist. (Denton County), 2,000 2,139
Unlimited Tax School Building and Ref. Bonds,
Series 2001, 5.50% 2015
Mansfield Independent School Dist. (Tarrant and Johnson 2,635 2,813
Counties), Unlimited Tax School Building and Ref.
Bonds, Series 2001, 5.50% 2016
Midway Independent School Dist. (McLennan County), 5,000 1,993
Unlimited Tax School Building and Ref. Bonds, Capital
Appreciation, Series 2000, 0% 2019
Northeast Medical Clinic, Hospital Auth., County of 1,000 1,164
Humble, Rev. Bonds, FSA Insured, 6.25% 2012
Northside Independent School Dist., Unlimited Tax 4,000 4,312
School Building and Ref. Bonds, Series 2001, 5.50% 2014
Plano Independent School District (Collin County), 2,000 2,098
Unlimited Tax School, Building and Ref. Bonds,
Series 2001, 5.25% 2015
Round Rock Independent School Dist. (Williamson and
Travis Counties), Unlimited Tax School Building Bonds,
Series 2001-A:
5.50% 2015 2,000 2,151
5.50% 2016 2,500 2,675
Sabine River Auth., Pollution Control Rev. Ref. Bonds 2,000 2,013
(TXU Electric Company Project), Series 2001C,
5.50% 2022 (Put 2011)
City of San Antonio:
General Improvement and Ref. Bonds, Series 2001:
5.25% 2015 8,425 8,838
5.25% 2016 8,385 8,739
Electric and Gas Systems Rev. Ref. Bonds,
New Series 1998A:
5.25% 2015 5,075 5,283
4.50% 2021 4,000 3,699
San Antonio Independent School Dist.:
Unlimited Tax Ref. Bonds, Series 2001B:
5.375% 2013 4,260 4,584
5.375% 2015 4,390 4,664
Unlimited Tax School Building Bonds, Series 2001A:
5.375% 2015 1,515 1,610
5.375% 2016 1,705 1,801
Spring Branch Independent School Dist. (Harris County),
Limited Tax Schoolhouse and Ref. Bonds, Series 2001:
5.375% 2015 3,875 4,106
5.375% 2016 3,070 3,234
Tarrant County, Health Facs. Dev. Corp., Texas Health
Resources System Rev. Bonds, Series 1997A, MBIA Insured:
5.50% 2007 4,000 4,254
5.75% 2015 3,000 3,208
Tomball Hospital Auth., Rev. Ref. Bonds, Series 1993, 2,000 1,966
6.125% 2023
Board of Regents of The University of Texas System,
Rev. Fncg. System Bonds:
Series 1996B, 5.00% 2011 3,750 3,941
Series 2001B, 5.375% 2016 4,000 4,231
University Permanent Fund, Rev. Bonds, Series 2002B:
5.25% 2015 5,000 5,277
5.25% 2016 2,315 2,428
Weatherford Independent School Dist. (Parker County), 2,625 1,146
Unlimited Tax School Building and Ref. Bonds, Capital
Appreciation, Series 2000, 0% 2018
City of Wichita Falls, Water and Sewer System Priority 1,580 1,668
Lien Rev. Bonds, Series 2001, AMBAC Insured, 5.375% 2016
Utah - 0.89%
Housing Fin. Agcy., Single Family Mortgage Bonds, 310 314
1995 Issue E (Federally Insured or Guaranteed
Mortgage Loans) 5.50% 2024
Alpine School Dist., Utah County, G.O. School Building
Bonds (Utah School Bond Guaranty Program), Series 2001A:
5.25% 2015 3,000 3,177
5.25% 2016 4,225 4,450
Salt Lake County, G.O. Ref. Bonds, Series 2001:
5.25% 2011 5,000 5,475
5.00% 2012 8,130 8,664
Vermont - 0.10%
Educational and Health Buildings Fncg. Agcy., Hospital 2,250 2,361
Rev. Bonds (Medical Center Hospital of Vermont Project),
Series 1993, FGIC Insured, 5.75% 2007
Virginia - 1.55%
City of Chesapeake, G.O. Public Improvement and Ref. 3,500 3,919
Bonds, Series of 2001, 5.50% 2011
Dulles Town Center, Community Dev. Auth. (Loudoun County), 2,500 2,468
Special Assessment Bonds (Dulles Town Center Project),
Series 1998, 6.25% 2026
Fairfax County:
Econ. Dev. Auth., Retirement Community Rev. Bonds 15,500 16,253
(Greenspring Village, Inc. Fac.), Series 1999A, 7.50% 2029
Industrial Dev. Auth., Hospital Rev. Ref. Bonds
(Inova Health System Hospitals Project), Series 1993A:
5.00% 2011 1,300 1,371
5.00% 2023 1,200 1,198
Gateway Community Dev. Auth. (Prince William County), 2,130 2,116
Special Assessment Bonds, Series 1999, 6.25% 2026
Industrial Dev. Auth., Hanover County, Hospital Rev. 1,000 1,164
Bonds (Memorial Regional Medical Center Project at
Hanover Medical Park), Series 1995, MBIA Insured,
6.50% 2009
Heritage Hunt Commercial Community Dev. Auth.
(Prince William County), Special Assessment Bonds:
Series 1999A, 6.85% 2019 3,178 3,318
Series 1999B, 7.00% 2029 1,000 1,051
Peninsula Ports Auth. Health System Rev. Ref. Bonds 1,000 1,060
(Riverside Health System Project), Series 1998,
MBIA Insured, 5.00% 2010
Pocahontas Parkway Association, Route 895 Connector 5,000 4,438
Toll Road Rev. Bonds, Series 1998A, 5.25% 2008
Washington - 6.89%
G.O. Bonds:
Motor Vehicle Fuel Tax, FSA Insured, Series 2002C, 5,000 5,083
5.00% 2017
Various Purpose, Series 2001C, 5.00% 2010 7,310 7,775
Health Care Facs. Auth. Rev. Bonds:
Series 2001 (Group Health Cooperative of Puget Sound), 1,500 1,621
AMBAC Insured, 5.375% 2012
Series 2001A (Providence Health System), MBIA Insured:
5.50% 2011 6,565 7,170
5.625% 2014 3,000 3,230
5.625% 2015 8,635 9,235
Public Power Supply System:
Nuclear Project No. 1 Ref. Rev. Bonds, Series 1997B, 5,000 5,135
5.125% 2014
Nuclear Project No. 2 Ref. Rev. Bonds:
Series 1993B, FSA Insured, 5.65% 2008 3,030 3,349
Series 1994A, 6.00% 2007 19,900 22,124
Nuclear Project No. 3 Ref. Rev. Bonds:
Series 1989A, MBIA Insured, 0% 2013 4,000 2,346
Series 1989B, 7.125% 2016 5,250 6,529
Central Puget Sound Regional Transit Auth., Sales Tax
and Motor Vehicle Excise Tax Bonds, Series 1999,
FGIC Insured:
5.25% 2021 5,500 5,767
4.75% 2028 21,940 20,539
Public Utility Dist. No. 1 of Chelan County, Columbia 11,345 4,569
River-Rock Island Hydro-Electric System Rev. Ref. Bonds,
Series 1997A , MBIA Insured, 0% 2019
Clark County, Vancouver School Dist. No. 37, Unlimited 5,000 2,385
Tax Deferred Interest G.O. Bonds, Series 2001C,
FGIC Insured, 0% 2016
Columbia Generating Station Ref. Electric Rev. Bonds, 13,000 13,882
Series 2001-A, FSA Insured, 5.50% 2016
Energy Northwest, Ref. Electric Rev. Bonds:
Project No.1, Series 2002-C, MBIA Insured, 5.50% 2015 5,000 5,373
Project No.1, Series 2002-C, MBIA Insured, 5.50% 2016 5,000 5,339
Project No.3, Series 2001-A, FSA Insured, 5.50% 2017 5,000 5,301
City of Seattle:
Limited Tax G.O. Bonds, Series 2001 (Various Purposes):
5.00% 2013 3,835 4,018
5.00% 2014 4,040 4,198
5.25% 2015 4,255 4,483
5.375% 2016 4,485 4,746
5.375% 2017 4,440 4,671
5.375% 2018 2,000 2,089
Municipal Light and Power:
Improvements and Ref. Rev. Bonds, Series 2001,
FSA Insured:
5.50% 2012 2,000 2,177
5.50% 2016 5,000 5,319
Rev. Anticipation Notes, Series 2001, 4.50% 2003 2,000 2,045
Wisconsin - 1.67%
G.O. Bonds:
1999, Series A, 5.00% 2012 3,390 3,555
Ref. Bonds of 1998, Series 1, 5.50% 2010 3,225 3,578
Health and Educational Facs. Auth., Rev. Bonds:
Children's Hospital Project, Series 1993, 2,000 2,174
FGIC Insured, 5.50% 2006
Children's Hospital of Wisconsin, Inc., Series 1998, 1,130 1,243
AMBAC Insured, 5.625% 2015
Froedtert & Community Health Obligated Group,
Series 2001:
5.625% 2014 1,000 1,031
5.625% 2015 1,100 1,127
Medical College of Wisconsin, Series 1993, 5.95% 2015 3,000 3,059
The Monroe Clinic, Inc.:
Series 1998:
4.80% 2010 1,110 1,109
4.90% 2011 1,165 1,164
Series 1999:
5.125% 2016 1,000 971
5.375% 2022 2,000 1,906
Housing and Econ. Dev. Auth.:
Home Ownership Rev. Bonds, 1998 Series A, 5.375% 2017 1,510 1,546
Housing Rev. Bonds, 1992 Series A, 6.40% 2003 3,480 3,561
Pollution Control and Industrial Dev. Rev. Bonds 3,650 3,918
(General Motors Corp. Projects), City of Janesville,
Series 1984, 5.55% 2009
Milwaukee Metropolitan Sewerage Dist., Milwaukee, 3,590 3,819
Ozaukee, Washington and Waukesha Counties, G.O.
Sewerage Systems Bonds, Series 2001A, 5.25% 2014
City of Superior, Limited Obligation Ref. Rev. Bonds 6,000 7,469
(Midwest Energy Resources Co. Project), Series E-1991
(Collateralized), FGIC Insured, 6.90% 2021
2,304,935
Short-term securities - 6.19%
County of Cuyahoga, State of Ohio, Econ. Dev. Rev. Bonds 4,700 4,700
(The Cleveland Orchestra Project), Series 1998,
1.35% 2028 /2/
State of Georgia, Dev. Auth. of Cobb County (Kennesaw 6,555 6,555
State University Foundation, Inc.- Kennesaw State
University Project), 1.20% 2031 /2/
State of Texas, Harris County G.O. Bonds, Series 2002 A1, 3,000 3,000
1.20% 3/6/2002
City of Houston, Texas, Tax and Rev. Anticipation Notes, 15,000 15,104
Series 2001, 3.50% 6/28/2002
Town of Hurley, New Mexico, Pollution Control Rev. Bonds 1,600 1,600
(Kennecott Santa Fe Corp. Project), Series 1985,
1.30% 2015/2/
State of Illinois, Joliet Regional Port Dist., Marine 2,200 2,200
Terminal Rev. Ref. Bonds (Exxon Project), 1989 Series,
1.35% 2024/2/
Jackson County, Mississippi, Pollution Control Ref. Rev. 2,600 2,600
Bonds (Chevron U.S.A. Inc. Project), Series 1992,
1.25% 2023 /2/
Jackson County, Mississippi, Port Fac. Ref. Rev. Bonds 2,300 2,300
(Chevron U.S.A. Inc. Project), Series 1993, 1.30% 2023 /2/
State of Kentucky, Asset/Liability Commission, General 13,500 13,613
Fund Tax and Rev. Anticipation Notes, 2001 Series A,
4.00% 6/26/2002
King County, Washington, Unlimited Tax G.O. Ref. Bonds, 3,000 3,032
1993 Series C, 5.625% 6/1/2002
Hospital Auth. No.1 of Lancaster County, Nebraska, 1,100 1,100
Variable Rate Health Facs. Rev. Bonds (Immanuel Health
Systems-Williamsburg Project), Series 2000A,
1.35% 2030 /2/
Lehigh County, Pennsylvania General Purpose Auth. 2,100 2,100
(Saint Luke's Hospital of Bethlehem, PA Project),
Hospital Rev. Bonds, Series of 2001, 1.30% 2031 /2/
County of Los Angeles, California, 2001-2002 Tax and 2,500 2,519
Rev. G.O. Anticipation Notes, Series A, 3.75% 6/28/2002
Maryland Health and Higher Educational Facs. Auth., 2,000 2,000
Pooled Loan Program Rev. Bonds, Series 1994 D,
1.15% 2029 /2/
State of New Jersey, G.O. Bonds, Series 2002 A1, 1,000 1,000
1.20% 3/28/2002
State of New Mexico, 01-02 Tax and Rev. Anticipation Notes, 11,000 11,097
Series 2001, 4.00% 6/28/2002
North Carolina Capital Facs. Fin. Agcy., Student Housing 2,000 2,000
Facs. Rev. Bonds (Winston-Salem State University Housing
Foundation, LLP Project), Series 2001, 1.20% 2031/2/
State of Ohio, Air Quality Dev. Auth., Pollution Control 3,000 3,000
Rev. Ref. Bonds (Ohio Edison Company Project),
Series 2000-C, 1.35% 2023/2/
State of Ohio, Air Quality Dev. Auth., Pollution Control 2,000 2,000
Rev. Ref. Bonds, Series 2000-A (The Toledo Edison Co.
Project), 1.35% 2024 /2/
City of Princeton, Indiana (PSI Energy, Inc. Project), 2,900 2,900
Pollution Control Rev. Ref. Bonds, 1997 Series,
1.30% 2022 /2/
State of Texas, Gulf Coast Waste Disposal Auth., Pollution 4,600 4,600
Control Rev. Ref. Bonds (Amoco Oil Company Project),
Series 1992, 1.25% 2017/2/
State of Texas, Lower Neches Valley Auth., Industrial Dev. 6,000 6,000
Corp., Exempt Facs. Ref. Rev. Bonds (ExxonMobil Project),
Series 2001, 1.25% 2031/2/
State of Texas, Tax and Rev. G.O. Anticipation Notes, 26,900 27,211
Series 2001A, 3.75% 8/29/2002
Uinta County, Wyoming, Pollution Control Rev. Ref. Bonds 4,700 4,700
(Amoco Project), Series 1998, 1.25% 2026 /2/
Uinta County, Wyoming, Pollution Control Ref. Rev. Bonds 2,700 2,700
(Chevron U.S.A. Inc. Project), Series 1993, 1.25% 2020 /2/
City of Valdez, Alaska, Marine Terminal Ref. Rev. Bonds 12,400 12,400
(ExxonMobil Project), Series 2001, 1.25% 2031 /2/
State of Wyoming, General Fund Tax and Rev. Anticipation 11,000 11,075
Notes, Series 2001A, 3.50% 6/27/2002
153,106
Total investment securities (cost: $2,366,663,000) 2,458,041
Excess of cash and receivables over payables 16,782
Net assets $2,474,823
/1/ Purchased in a private placement transaction;
resale may be limited to qualified
institutional buyers; resale to public
may require registration.
/2/ Coupon rate may change periodically; the date of
the next scheduled coupon rate change is
considered to be the maturity date.
See Notes to Financial Statements
Key to Abbreviations
Agcy. = Agency
Auth. = Authority
Cert. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
[Enlarge/Download Table]
The Tax-Exempt Bond Fund of America
Financial statements
Statement of assets and liabilities (unaudited)
at February 28, 2002
(dollars and shares in thousands,
except per share amounts)
Assets:
Investment securities at market
(cost: $2,366,663) $2,458,041
Cash 730
Receivables for:
Sales of fund's shares $17,530
Interest 32,091 49,621
Other assets 5
2,508,397
Liabilities -
Payables for:
Purchases of investments 24,860
Repurchases of fund's shares 3,250
Dividends on fund's shares 3,574
Investment advisory services 643
Services provided by affiliates 1,165
Deferred Directors' compensation 63
Other fees and expenses 19 33,574
Net assets at February 28, 2002 $2,474,823
Net assets consist of:
Capital paid in on shares of capital stock $2,377,104
Undistributed net investment income 1,357
Undistributed net realized gain 4,984
Net unrealized appreciation 91,378
Net assets at February 28, 2002 $2,474,823
Total authorized capital stock -
500,000 shares, $.001 par value:
'Net
Shares asset value
Net assets outstanding per share/1/
Class A $2,367,549 193,726 $12.22
Class B 48,880 4,000 12.22
Class C 41,955 3,433 12.22
Class F 16,439 1,345 12.22
/1/ Maximum offering price and redemption
price per share are equal to the net asset
value per share for all share classes except
for Class A, for which the maximum offering
price per share is $12.70.
Statement of operations
for the six months ended February 28, 2002
(dollars in thousands)
Investment income: (unaudited)
Income-
Interest $62,901
Fees and expenses:
Investment advisory services $3,923
Distribution services 3,127
Transfer agent services 259
Administrative services 32
Reports to shareholders 53
Registration statement and prospectus 130
Postage, stationery and supplies 21
Directors' compensation 13
Auditing and legal 35
Custodian 21
State and local taxes 1 7,615
Net investment income 55,286
Net realized gain and unrealized
depreciation on investments:
Net realized gain on investments 5,187
Net unrealized depreciation on investments (28,197)
Net realized gain and unrealized
depreciation on investments (23,010)
Net increase in net assets resulting
from operations $32,276
Statement of changes in net assets
(dollars in thousands)
Six months
ended Year ended
February 28, August 31,
2002* 2001
Operations:
Net investment income $55,286 $98,917
Net realized gain on investments 5,187 9,185
Net unrealized (depreciation) appreciation (28,197) 88,080
on investments
Net increase in net assets
resulting from operations 32,276 196,182
Dividends and distributions paid to
shareholders:
Dividends from net investment income (54,998) (99,323)
Distributions from net realized gain
on investments (6,121) -
Total dividends and distributions paid
to shareholders (61,119) (99,323)
Capital share transactions 253,173 319,616
Total increase in net assets 224,330 416,475
Net assets:
Beginning of period 2,250,493 1,834,018
End of period (including undistributed
net investment income: $1,357 and $1,004,
respectively) $2,474,823 $2,250,493
*Unaudited
See Notes to Financial Statements
Notes to financial statements (Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt Bond Fund of America, Inc. (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks a high level of federally
tax-free current income, consistent with the preservation of capital, through a
diversified portfolio of municipal bonds.
The fund offers four retail share classes, as described below:
[Download Table]
SHARE INITIAL SALES CONTINGENT CONVERSION FEATURE
CLASS CHARGE DEFERRED SALES
CHARGE UPON
REDEMPTION
Class A Up to 3.75% None None
Class B None Declines from Class B converts
5% to zero for to Class A after
redemptions eight years
within six
years of
purchase
Class C None 1% for Class C converts
redemptions to Class F after
within one year 10 years
of purchase
Class F None None None
Holders of all share classes have equal pro rata rights to assets, dividends
and liquidation. Each share class has identical voting rights, except for the
exclusive right to vote on matters affecting only its class. Share classes may
have different fees and expenses ("class-specific fees and expenses"),
primarily due to different arrangements for distribution, administrative and
shareholder services. Differences in class-specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
to comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service. However, where the investment adviser deems it appropriate,
they will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Securities and other assets for which
representative market quotations are not readily available are valued at fair
value as determined in good faith by authority of the fund's Board of
Directors.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
recorded by the fund as of the date the trades are executed with brokers.
Realized gains and losses from security transactions are determined based on
the specific identified cost of the securities. In the event a security is
purchased with a delayed payment date, the fund will segregate liquid assets
sufficient to meet its payment obligations. Interest income is recognized on an
accrual basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of the
security.
On September 1, 2001, the fund began amortizing discount daily over the
expected life of fixed-income securities to comply with a recent change in
accounting principles generally accepted in the United States of America.
Adopting this change did not impact the fund's net asset value but resulted in
changes to the classification of certain amounts between interest income and
realized and unrealized gain or loss in the accompanying financial statements.
Therefore, the undistributed net investment income amounts are primarily
composed of these adjustments which were based on the fixed-income securities
held by the fund on September 1, 2001. Because the fund determines its
required distributions under federal income tax laws, adoption of this
principle for financial accounting purposes will not affect the amount of
distributions paid to shareholders.
CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees
and expenses) and realized and unrealized gains and losses are allocated daily
among the various share classes based on their relative net assets.
Class-specific fees and expenses, such as distribution, administrative and
shareholder services are charged directly to the respective share class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly. Distributions paid to shareholders are
recorded on the ex-dividend date.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income and net capital gains each year. The fund is not
subject to income taxes to the extent such distributions are made.
DISTRIBUTIONS - Distributions are based on net investment income and net
realized gains determined on a tax basis which may differ from net investment
income and net realized gains for financial reporting purposes. These
differences are due primarily to differing treatment for items such as
amortization of discounts and short-term capital gains and losses. The fiscal
year in which amounts are distributed may differ from the year in which the net
investment income and net realized gains are recorded by the fund. The fund
may also designate a portion of the amount paid to redeeming shareholders as a
distribution for tax purposes. As of February 28, 2002, the cost of investment
securities for federal income tax purposes was $2,366,663,000.
During the six months ended February 28, 2002, the fund reclassified $493,000
from undistributed net investment income to additional paid-in capital to align
book with tax reporting.
As of February 28, 2002, the components of distributable earnings on a tax
basis were as follows:
[Download Table]
(DOLLARS IN THOUSANDS)
Undistributed net investment income $195
Accumulated short-term losses (135)
Undistributed long-term gains 5,260
Unrealized appreciation 114,820
Unrealized depreciation (23,442)
The tax character of distributions paid was as follows:
Six months ended February 28, 2002
(dollars in thousands)
[Download Table]
DISTRIBUTIONS FROM ORDINARY INCOME DISTRIBUTIONS TOTAL
FROM DISTRIBUTIONS
LONG-TERM PAID
CAPITAL GAINS
NET INVESTMENT SHORT-TERM
INCOME CAPITAL GAINS
Class A $53,492 $1,666 $4,256 $59,414
Class B 717 27 68 812
Class C 524 20 53 597
Class F 265 9 22 96
Total $54,998 $1,722 $4,399 $61,119
Year ended August 31, 2001
(dollars in thousands)
[Download Table]
DISTRIBUTIONS FROM ORDINARY INCOME DISTRIBUTIONS
FROM
LONG-TERM
CAPITAL GAINS
TOTAL
DISTRIBUTIONS
PAID
NET INVESTMENT SHORT-TERM
INCOME CAPITAL GAINS
Class A $98,662 $- $- $98,662
Class B 489 - - 489
Class C /1/ 104 - - 104
Class F /1/ 68 - - 68
Total $99,323 $- $- $99,323
/1/ Class C and Class F shares were not offered before March 15, 2001.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment
adviser, is the parent company of American Funds Service Company ("AFS"), the
fund's transfer agent, and American Funds Distributors ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
series of annual rates beginning with 0.30% per annum on the first $60 million
of daily net assets and decreasing to 0.16% on such assets in excess of $3
billion. The agreement also provides for monthly fees, accrued daily, based on
a series of annual rates beginning with 3.00% per annum on the first $3,333,333
of the fund's monthly gross investment income decreasing to 2.25% on such
income in excess of $8,333,333. For the six months ended February 28, 2002,
the investment advisory services fee was equivalent to an annualized rate of
0.339% of average daily net assets.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all
share classes. Under the plans, the Board of Directors approves certain
categories of expenses which are used to finance activities primarily intended
to sell fund shares.
The plans provide for annual expenses, based on average daily net assets of up
to 0.25% for Class A shares, 1.00% for Class B and Class C shares and 0.50% for
Class F shares. In some cases, the Board of Directors approved expense amounts
lower than plan limits.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate AFD for paying service fees to firms that have entered into
agreements with AFD for providing certain shareholder services. Additionally,
the Board of Directors has approved the following categories of distribution
expenses:
CLASS A - Dealers and wholesalers receive commissions from AFD for certain
shares sold without a sales charge. The class reimburses AFD for amounts
billed within the prior 15 months but only to the extent that the overall
annual expense limit is not exceeded. As of February 28, 2002, unreimbursed
expenses which remain subject to reimbursement totaled $2,658,000.
CLASS B AND CLASS C - Each class pays AFD annual fees of 0.75% of its
respective average daily net assets to compensate dealers and wholesalers for
shares sold.
CLASS F - Although the plan has an annual expense limit of 0.50% of its
respective average daily net assets, currently there are no additional approved
categories of expense for this class.
TRANSFER AGENT SERVICES - The fund has a transfer agency agreement with AFS for
Class A and Class B shares. Under this agreement, these share classes
compensate AFS for transfer agency services including shareholder record
keeping, communications and transaction processing. AFS is compensated for
transfer agency services provided to all other share classes from the
administrative services fees paid to CRMC described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services agreement
with CRMC to provide transfer agency and other related shareholder services for
Class C and Class F. Each relevant class pays CRMC annual fees of 0.15% based
on its respective average daily net assets, plus amounts payable for certain
transfer agency services. CRMC may use these fees to compensate third parties
for performing these services.
Expenses under the agreements described above for the six months ended February
28, 2002, are as follows (dollars in thousands):
[Download Table]
FUND DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE SERVICES
SHARE SERVICES SERVICES
CLASSES
Class A $2,801 $254 Not applicable
Class B 179 5 Not applicable
Class C 133 Not applicable $21
Class F 14 Not applicable 11
DEFERRED DIRECTORS' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Directors who are unaffiliated with CRMC may elect
to defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund or other American Funds. These amounts represent general,
unsecured liabilities of the fund and vary according to the total returns of
the selected funds. Directors' fees in the accompanying financial statements
include the current fees (either paid in cash or deferred) and the net increase
or decrease in the value of the deferred amounts.
AFFILIATED OFFICERS AND DIRECTORS - Officers and certain Directors of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No
affiliated officers or Directors received any compensation directly from the
fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows:
Six months ended February 28, 2002
(dollars and shares in thousands)
[Enlarge/Download Table]
SALES REINVESTMENTS REPURCHASES NET INCREASE
OF DIVIDENDS AND
DISTRIBUTIONS
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
Class A $323,017 26,446 $38,458 3,156 $(167,852) (13,771) $193,623 15,831
Class B 24,559 2,010 585 48 (1,951) (160) 23,193 1,898
Class C 29,024 2,376 442 36 (2,321) (191) 27,145 2,221
Class F 16,172 1,327 229 19 (7,189) (592) 9,212 754
Total net $392,772 32,159 $39,714 3,259 $(179,313) (14,714) $253,173 20,704
increase
(decrease)
in fund
Year ended August 31, 2001
(dollars and shares in thousands)
[Enlarge/Download Table]
REINVESTMENTS
OF DIVIDENDS
SALES AND DISTRIBUTIONS REPURCHASES NET INCREASE
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
CLASS A $550,783 45,771 $61,021 5,083 $(335,993) (28,027 $275,811 22,827
CLASS B 23,399 1,942 340 28 (1,814) (151) 21,925 1,819
CLASS C/*/ 14,787 1,217 74 6 (136) (11) 14,725 1,212
CLASS F/*/ 15,575 1,286 51 4 (8,471) (699) 7,155 591
TOTAL NET $604,544 50,216 $61,486 5,121 $(346,414) (28,888) $319,616 26,449
INCREASE (DECREASE) IN FUND
/*/ CLASS C AND CLASS F SHARES WERE NOT OFFERED BEFORE MARCH 15, 2001.
5. RESTRICTED SECURITIES
The fund has invested in certain securities for which resale may be limited to
qualified buyers or which are otherwise restricted. These securities are
identified in the investment portfolio. Any costs incurred in connection with
the disposition of such securities will be recorded in the fund on the date of
disposition. As of February 28, 2002, the total value of restricted securities
was $9,937,000 which represents 0.40% of the net assets of the fund.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $320,166,000 and $109,850,000, respectively, during
the six months ended February 28, 2002.
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For
the six months ended February, the custodian fee of $21,000 includes $3,000
that was offset by this reduction rather than paid in cash.
[Enlarge/Download Table]
Financial Highlights /1/
Income from investment operations
Net (losses)
Net asset gains on
value, Net securities (both
beginning investment realized and
of period income /3/ unrealized)/3/
Class A:
Six months ended 2/28/2002 /2/ $12.38 $.29 $(.13)
Year ended 8/31/2001 11.81 .60 .57
Year ended 8/31/2000 11.86 .60 (.01)
Year ended 8/31/1999 12.60 .59 (.55)
Year ended 8/31/1998 12.27 .62 .37
Year ended 8/31/1997 11.86 .64 .45
Class B:
Six months ended 2/28/2002 /2/ 12.38 .25 (.13)
Year ended 8/31/2001 11.81 .52 .57
Period from 3/15/2000 to 8/31/2000 11.50 .21 .34
Class C:
Six months ended 2/28/2002 /2/ 12.38 .24 (.13)
Period from 3/15/2001 to 8/31/2001 12.10 .21 .29
Class F:
Six months ended 2/28/2002 /2/ 12.38 .28 (.13)
Period from 3/15/2001 to 8/31/2001 12.10 .24 .29
Income
from
investment Dividends and Distributions
operations
Dividends
Total from (from net Distributions
investment investment (from capital
operations income) gains)
Class A:
Six months ended 2/28/2002 /2/ $.16 $(.29) $(.03)
Year ended 8/31/2001 1.17 (.60) -
Year ended 8/31/2000 .59 (.60) (.04)
Year ended 8/31/1999 .04 (.59) (.19)
Year ended 8/31/1998 .99 (.62) (.04)
Year ended 8/31/1997 1.09 (.64) (.04)
Class B:
Six months ended 2/28/2002 /2/ .12 (.25) (.03)
Year ended 8/31/2001 1.09 (.52) -
Period from 3/15/2000 to 8/31/2000 .55 (.24) -
Class C:
Six months ended 2/28/2002 /2/ .11 (.24) (.03)
Period from 3/15/2001 to 8/31/2001 .50 (.22) -
Class F:
Six months ended 2/28/2002 /2/ .15 (.28) (.03)
Period from 3/15/2001 to 8/31/2001 .53 (.25) -
Dividends and
distributions
Net asset
Total value, end Total
distributions of period return/4/
Class A:
Six months ended 2/28/2002 /2/ $(.32) $12.22 1.34%
Year ended 8/31/2001 (.60) 12.38 10.22
Year ended 8/31/2000 (.64) 11.81 5.27
Year ended 8/31/1999 (.78) 11.86 .23
Year ended 8/31/1998 (.66) 12.60 8.26
Year ended 8/31/1997 (.68) 12.27 9.39
Class B:
Six months ended 2/28/2002 /2/ (.28) 12.22 .96
Year ended 8/31/2001 (.52) 12.38 9.45
Period from 3/15/2000 to 8/31/2000 (.24) 11.81 4.89
Class C:
Six months ended 2/28/2002 /2/ (.27) 12.22 .90
Period from 3/15/2001 to 8/31/2001 (.22) 12.38 4.20
Class F:
Six months ended 2/28/2002 /2/ (.31) 12.22 1.26
Period from 3/15/2001 to 8/31/2001 (.25) 12.38 4.45
Ratio of Ratio of
Net assets, expenses net income
end of period to average to average
(in millions) net assets net assets
Class A:
Six months ended 2/28/2002 /2/ $2,368 .64%/5/ 4.80%/5/
Year ended 8/31/2001 2,202 .66 5.00
Year ended 8/31/2000 1,831 .67 5.22
Year ended 8/31/1999 1,917 .65 4.78
Year ended 8/31/1998 1,795 .66 4.98
Year ended 8/31/1997 1,593 .68 5.27
Class B:
Six months ended 2/28/2002 /2/ 49 1.38/5/ 4.01/5/
Year ended 8/31/2001 26 1.40 4.06
Period from 3/15/2000 to 8/31/2000 3 .64 1.99
Class C:
Six months ended 2/28/2002 /2/ 42 1.52/5/ 3.96/5/
Period from 3/15/2001 to 8/31/2001 15 .73 1.77
Class F:
Six months ended 2/28/2002 /2/ 16 .79/5/ 4.67/5/
Period from 3/15/2001 to 8/31/2001 7 .40 2.11
Supplemental data - all classes
Six months Year Year
ended ended ended
February 28, August 31, August 31,
2002 2001 2000
Portfolio turnover rate 9% 21% 29%
Supplemental data - all classes
Year Year Year
ended ended ended
August 31, August 31, August 31,
1999 1998 1997
Portfolio turnover rate 15% 23% 14%
/1/ Based on operations for the period
shown (unless otherwise noted) and,
accordingly, may not be representative
of a full year.
/2/ Unaudited.
/3/ Years ended 1999, 1998 and 1997 are
based on shares outstanding on the last
day of the year, all other periods are
based on average shares outstanding.
/4/ Total returns exclude all sales
charges, including contingent deferred
sales charges.
/5/ Annualized.
[Enlarge/Download Table]
American High-Income Municipal Bond Fund Unaudited
Investment Portfolio, January 31, 2002
Quality ratings*
[pie chart and table]
AAA 10.0%
AA 6.9%
A 8.1%
BBB 24.0%
BB 25.5%
B 17.9%
CCC or less 0.1%
Cash & equivalents 7.5%
*Bond ratings reflect those of a credit rating agency;
if ratings are not available, they are assigned by the
fund's research analysts.
[end chart]
Principal Market
Amount Value
Fixed-Income Securities - 92.46% (000) (000)
Alabama - 0.81%
Special Care Fac. Fncg. Auth. of the City of Huntsville - $ 6,000 $ 5,995
Carlton Cove, Retirement Fac. Rev. Bonds (Carlton Cove,
Inc. Project), Series 2001, 8.125% 2031
Alaska - 0.68%
Northern Tobacco Securitization Corp., Tobacco Settlement
Asset-Backed Bonds:
Series 2000, 6.20% 2022 2,000 2,097
Series 2001, 5.375% 2021 3,000 2,885
Arizona - 0.53%
Industrial Dev. Auth. of the County of Navajo, Industrial 4,100 3,927
Dev. Rev. Bonds (Stone Container Corp. Project),
Series 1997, AMT, 7.20% 2027
California - 7.13%
Pollution Control Fncg. Auth., Solid Waste Disposal Ref. 4,000 4,017
Rev. Bonds (USA Waste Services, Inc. Project),
Series 1998A, AMT, 5.10% 2018 (Put 2008)
Rural Home Mortgage Fin. Auth., Single Family Mortgage 300 320
Rev. Bonds (Mortgage-Backed Securities Program),
1995 Series B, AMT, 7.75% 2026
Statewide Communities Dev. Auth., Apartment Dev. Rev.
Ref. Bonds (Irvine Apartment Communities, LP):
Series 1998A-1, AMT, 5.05% 2025 (Put 2008) 7,000 7,143
Series 1998A-3, 5.10% 2025 (Put 2010) 3,000 3,044
City of Antioch, Public Fncg. Auth., 1998 Reassessment 1,420 1,503
Rev. Bonds, Subordinated Series B, 5.80% 2011
City of Chino Hills, Community Facs.:
Dist. No. 9 (Rincon Village Area), Special Tax Bonds, 2,430 2,470
Series 1998, 6.45% 2023
Dist. No. 10 (Fairfield Ranch), Special Tax Bonds, 1,000 1,059
6.95% 2030
County of El Dorado, Community Facs. Dist. No. 1992-1 995 1,021
(El Dorado Hills Dev.), Series 1999 Special Tax Bonds,
6.125% 2016
City of Fontana, Community Facs. Dist. No. 12 1,000 1,054
(Sierra Lakes), Special Tax Bonds, Series 1999, 6.50% 2015
City of Irvine, Assessment Dist. No. 94-13 (Oak Creek), 1,000 1,012
Limited Obligation Improvement Bonds, Group Two,
5.875% 2017
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium
of the Pacific Project), 1995 Series A:
6.10% 2010 (Preref. 2005) 1,000 1,118
6.125% 2015 (Preref. 2005) 2,500 2,797
6.125% 2023 (Preref. 2005) 1,500 1,678
MBIA Insured, 6.125% 2015 (Preref. 2005) 1,000 1,119
MBIA Insured, 6.125% 2023 (Preref. 2005) 2,500 2,797
City of Los Angeles, Multi-family Housing Rev. Bonds 500 525
(GNMA Collateralized - Ridgecroft Apartments Project),
Series 1997E, AMT, 6.00% 2017
County of Los Angeles, Capital Asset Leasing Corp., 970 1,003
Cert. of Part. (Marina del Rey), 1993 Series A, 6.25% 2003
Pleasanton Joint Powers Fncg. Auth., Subordinate 925 943
Reassessment Rev. Bonds, 1993 Series B, 6.125% 2002
City of Poway, Community Facs. Dist. No. 88-1 (Parkway 2,800 3,024
Business Centre), Special Tax Ref. Bonds, Series 1998,
6.75% 2015
County of Sacramento, Laguna Creek Ranch/Elliott Ranch
Community Facs. Dist. No. 1, Improvement Area No. 2
Special Tax Ref. Bonds (Elliott Ranch):
6.125% 2014 250 264
6.30% 2021 500 519
County of San Diego, Reassessment Dist. No. 97-1
(4-S Ranch), Limited Obligation Improvement Bonds:
6.00% 2009 995 1,026
6.25% 2012 995 1,026
Redev. Agcy. of the City and County of San Francisco, 1,000 834
Residential Fac. Rev. Bonds (Coventry Park Project),
Series 1996A, AMT, 8.50% 2026
Community Facs. Dist. No. 99-1 (Talega) of the Santa 2,390 2,494
Margarita Water Dist., Series 1999 Special Tax Bonds,
6.10% 2014
South Tahoe Joint Powers Fncg. Auth. (South Tahoe Redev.
Project Area No. 1):
Ref. Rev. Bonds, Series 1995B, 6.25% 2020 1,000 1,029
Subordinate Bond Anticipation Notes:
Series 1999A, 7.30% 2007 5,500 5,725
Series 1999B, 7.30% 2007 1,000 1,041
Community Facs. Dist. No. 88-12 of the City of Temecula 940 954
(Ynez Corridor), Special Tax Ref. Bonds, 1998 Series A,
5.35% 2009
Colorado - 4.81%
Housing and Fin. Auth., Single Family Program Senior
Bonds, AMT:
1995 Series A, 8.00% 2025 390 411
1995 Series B-1, 7.90% 2025 295 312
1997 Series B-2, 7.00% 2026 590 617
City and County of Denver, Airport System Rev. Bonds, 885 927
Series 1992C, AMT, 6.75% 2013
EagleBend Affordable Housing Corp., Multi-family Housing
Project Rev. Ref. Bonds, Series 1997A:
6.20% 2012 1,000 998
6.45% 2021 2,000 1,959
EagleBend Dowd Affordable Housing Corp., Multi-family
Housing Project Rev. Bonds, Series 1998A:
6.53% 2024 1,665 1,625
6.53% 2029 1,320 1,278
6.63% 2039 2,950 2,838
Eagle County, Bachelor Gulch Metropolitan Dist., G.O. Bonds, 3,500 3,633
Series 1999, 6.70% 2019
E-470 Public Highway Auth. Senior Rev. Bonds (Capital 7,500 682
Appreciation Bonds), Series 2000B, 0% 2034
Lincoln Park Metropolitan Dist. (Douglas County), G.O. 3,000 3,017
Limited Tax Ref. and Improvement Bond, Series 2001,
7.75% 2026
North Range Metropolitan Dist. No.1 (City of Commerce City), 1,000 974
Adams County, Limited Tax G.O. Bonds, Series 2001,
7.25% 2031
Northwest Parkway Public Highway Auth., Rev. Bonds, 4,500 4,591
Series 2001D, 7.125% 2041
Rampart Range Metropolitan Dist. No. 1 (City of Lone Tree), 7,660 7,498
Rev. Bonds (Rampart Range Metropolitan Dist. No. 2
Project), Series 2001, 7.75% 2026
Vista Ridge Metropolitan Dist. (Weld County), Limited 4,110 4,097
Tax G.O. Bonds, Series 2001, 7.50% 2031
Connecticut - 2.70%
Dev. Auth., Pollution Control Rev. Ref. Bonds (The
Connecticut Light and Power Co. Project):
Series 1993A, 5.85% 2028 1,375 1,401
Series 1993B, AMT, 5.95% 2028 1,500 1,520
Health and Educational Fac. Auth., Rev. Bonds, University 1,000 1,025
of Hartford Issue, Series D, 6.75% 2012
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds: /1/
1996 Series A:
6.375% 2004 (Escrowed to Maturity) 500 550
6.40% 2011 (Preref. 2007) 3,470 4,008
6.40% 2011 3,025 3,206
1997 Series B:
5.60% 2009 1,000 1,025
5.75% 2018 3,000 2,940
Mohegan Tribe of Indians, Gaming Auth. Priority Distribution
Payment, Public Improvement Bonds, Series 2001:
6.00% 2016 1,200 1,192
6.25% 2021 1,000 1,001
6.25% 2031 2,000 2,001
Delaware - 0.14%
Econ. Dev. Auth., First Mortgage Rev. Bonds (Peninsula
United Methodist Homes, Inc. Issue), Series 1997A:
6.00% 2008 500 513
6.10% 2010 500 509
District of Columbia - 0.91%
Hospital Rev. Ref. Bonds (Washington Hospital Center Issue), 880 923
Series 1992A, 7.00% 2005 (Preref. 2002)
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington Hospital
Center Projects):
Series 2001A, 6.40% 2031 (Put 2004) 1,000 1,025
Series 2001B, 6.625% 2031 (Put 2005) 1,000 1,042
Series 2001C, 6.80% 2031 (Put 2006) 1,500 1,588
Series 2001D, 6.875% 2031 (Put 2007) 2,000 2,135
Florida - 10.97%
Arbor Greene Community Dev. Dist. (City of Tampa, 705 715
Hillsborough County), Special Assessment Rev. Bonds,
Series 2000, 6.50% 2007
Championsgate Community Dev. Dist., Capital Improvement Rev. 2,850 2,624
Bonds, Series 1998A, 6.25% 2020
The Crossings at Fleming Island Community Dev. Dist.
(Clay County):
Special Assessment Bonds, Series 1995, 8.25% 2016 4,500 5,244
(Preref. 2005)
Special Assessment Ref. Bonds, Series 2000C, 7.10% 2030 5,000 5,253
Fleming Island Plantation Community Dev. Dist. (Clay County), 1,000 1,060
Series 2000B, 7.375% 2031
The Groves Community Dev. Dist. (Pasco County), Special 3,450 3,470
Assessment Rev. Bonds, Series 2000B, 7.625% 2008
Harbor Bay Community Dev. Dist. (Hillsborough County), 4,000 3,963
Capital Improvement Rev. Bonds, Series 2001B, 6.35% 2010
Heritage Isles Community Dev. Dist. (Hillsborough County), 1,415 1,404
Special Assessment Rev. Bonds, Series 1998A, 5.75% 2005
Heritage Palms Community Dev. Dist. (Fort Myers), Capital
Improvement Rev. Bonds:
Series 1998, 5.40% 2003 960 955
Series 1999, 6.25% 2004 1,405 1,412
Heritage Pines Community Dev. Dist. (Pasco County), Capital 775 764
Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Heritage Springs Community Dev. Dist. (Pasco County), 425 427
Capital Improvement Rev. Bonds, Series 1999B, 6.25% 2005
Lake Ashton Community Dev. Dist. (City of Lake Wales, Polk
County), Capital Improvement Rev. Bonds:
Series 2001A, 7.40% 2032 1,000 1,009
Series 2001B, 6.40% 2011 1,000 997
Lake Powell Residential Golf Community Dev. Dist. (Bay 7,000 7,014
County), Special Assessment Rev. Bonds, Series 2000B,
7.00% 2010
Lakewood Ranch Community Dev. Dist. 5 (Manatee County),
Special Assessment Rev. Bonds:
Series 2001A, 6.70% 2031 935 920
Series 2001B, 6.00% 2011 1,980 1,942
Lee County Industrial Dev. Auth., Healthcare Facs. Rev.
Bonds:
Series 1997A (Cypress Cove at Healthpark Florida, Inc. 2,500 2,287
Project), 6.25% 2017
Series 1999A (Shell Point/Alliance Obligated Group, Shell
Point Village Project):
5.25% 2007 1,000 1,006
5.50% 2009 1,000 1,001
5.75% 2011 500 502
5.75% 2013 1,410 1,396
5.75% 2015 500 486
5.50% 2021 3,800 3,443
Marshall Creek Community Dev. Dist., Special Assessment 3,020 3,136
Bonds, Series 2000A, 7.65% 2032
Meadow Pointe II, Community Dev. Dist. (Pasco County), 2,030 2,020
Capital Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Meadow Pointe III, Community Dev. Dist. (Pasco County), 2,265 2,201
Capital Improvement Rev. Bonds, Series 2001A, 6.85% 2033
Northern Palm Beach County Improvement Dist., Water Control
and Improvement Bonds:
Unit of Dev. No. 9A, Series 1996A:
6.80% 2006 790 854
7.30% 2027 1,500 1,596
Unit of Dev. No. 9B, Series 1999, 5.85% 2013 945 957
North Springs Improvement Dist. Special Assessment Bonds,
Parkland Isles Project:
Series 1997A, 7.00% 2019 1,000 1,044
Series 1997B, 6.25% 2005 110 110
Ocean Highway and Port Auth., Solid Waste/Pollution Control 1,305 1,276
Rev. Ref. Bonds, Series 1996 (Jefferson Smurfit Corp.
(U.S.) Project), 6.50% 2006
City of Orlando, Special Assessment Rev. Bonds (Conroy Road 3,250 3,157
Interchange Project), Series 1998A, 5.80% 2026
River Ridge Community Dev. Dist. (Lee County), Capital 1,585 1,565
Improvement Rev. Bonds, Series 1998, 5.75% 2008
Stoneybrook West Community Dev. Dist. (City of Winter Garden, 1,295 1,309
Orange County), Special Assessment Rev. Bonds, Series 2000B,
6.45% 2010
University Place Community Dev. Dist. (Manatee County), 2,535 2,532
Series 2001B, 6.10% 2007
Urban Orlando Community Dev. Dist. (City of Orlando),
Capital Improvement Rev. Bonds, Series 2001A:
6.40% 2010 4,780 4,763
6.95% 2033 3,500 3,453
Waterlefe Community Dev. Dist. (Manatee County), Capital 1,555 1,550
Improvement Rev. Bonds, Series 2001B, 6.25% 2010
Georgia - 0.80%
City of Atlanta, Tax Allocation Bonds (Atlantic Station
Project), Series 2001:
7.75% 2014 1,000 976
7.90% 2024 5,000 4,888
Idaho - 1.57%
Housing and Fin. Association, AMT:
Single Family Mortgage Bonds:
1998 Series B-2, 5.20% 2011 765 782
1999 Series B-2, 5.00% 2013 880 884
1999 Series D-3, 5.15% 2013 920 911
1999 Series G-2, 5.75% 2014 465 478
2001 Series B-III, 5.75% 2020 2,760 2,809
2001 Series F, 5.30% 2021 1,865 1,822
Single Family Mortgage Subordinate Bonds:
1997 Series H-2, 5.40% 2010 1,140 1,181
1997 Series I-2, 5.55% 2010 720 753
Single Family Programs Disclosure Report, 1978 Series A, 2,000 1,977
5.40% 2021
Illinois - 6.19%
Build Illinois Bonds (Sales Tax Rev. Bonds), Illinois FIRST, 1,500 1,566
Series of September 2001, 5.375% 2016
Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste 3,035 2,967
Management, Inc. Project), Series 1997, AMT, 5.05% 2010
Health Facs. Auth.:
Rev. Bonds:
Alexian Brothers Health System, Series 1999, FSA Insured, 1,000 969
5.125% 2028
Centegra Health System, Series 1998:
5.50% 2008 1,000 1,040
5.25% 2014 1,500 1,467
Edward Hospital Obligated Group, Series 2001A, FSA Insured, 1,500 1,551
5.50% 2017
Fairview Obligated Group Project, 1992 Series A, 2,675 2,831
9.50% 2022 (Preref. 2002)
Friendship Village of Schaumburg, Series 1997A, 5.25% 2018 2,000 1,674
Lutheran Senior Ministries Obligated Group - Lutheran 3,000 3,013
Hillside Village Project, Series 2001A, 7.375% 2031
OSF Healthcare System, Series 1999, 6.25% 2019 1,500 1,564
Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997A:
5.70% 2011 500 529
5.80% 2016 2,000 2,066
Edward Hospital Project, Series 1993A, 6.00% 2019 1,000 1,011
Fairview Obligated Group Project, 1995 Series A:
6.25% 2003 1,245 1,271
7.40% 2023 3,130 3,136
City of Chicago:
G.O. Bonds (Emergency Telephone System), Ref. Series 1999, 1,000 1,033
FGIC Insured, 5.25% 2020
Chicago O'Hare International Airport:
Second Lien Passenger Fac. Charge Rev. Bonds, Series 2001C, 4,030 4,175
AMBAC Insured, AMT, 5.50% 2015
Special Facs. Rev. Ref. Bonds (United Air Lines, Inc. 7,875 4,383
Project), Series 1999B, AMT, 5.20% 2011
Midway Airport Rev. Bonds, Series 2001A, FSA Insured, AMT, 2,000 2,072
5.50% 2015
School Reform Board of Trustees of the Board of Education 1,000 995
of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated
Tax Rev.), Series 1997A, AMBAC Insured, 5.25% 2030
Village of Montgomery, Kane and Kendall Counties, Special 4,000 4,158
Assessment Improvement Bonds (Lakewood Creek Project),
Series 2001, 7.75% 2030
Village of Robbins, Cook County, Resource Recovery Rev.
Bonds (Robbins Resource Recovery Partners, L.P. Projects),
AMT:
Series 1999A, 8.375% 2016 /2/ 3,950 35
Series 1999B, 8.375% 2016 /2/ 1,545 14
Series 1999C, 7.25% 2009 521 297
Series 1999C, 7.25% 2024 2,650 1,378
Series 1999D, 0% 2009 1,230 406
Indiana - 0.45%
Dev. Fin. Auth. Rev. Ref. Bonds, Exempt Fac.-Inland Steel, 1,000 168
5.75% 2011
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity 2,805 2,825
Obligated Group), Series 1999D, 5.25% 2016
City of East Chicago, Pollution Control Rev. Ref. Bonds, 2,000 335
Inland Steel Co. Project No. 11, Series 1994, 7.125% 2007
Iowa - 0.70%
Fin. Auth., Ref. Rev. Bonds (Trinity Health Credit Group), 2,000 2,125
Series 2000B, AMBAC Insured, 6.00% 2027
Tobacco Settlement Auth., Asset-Backed Bonds, Series 2001B:
5.50% 2011 1,000 1,036
5.50% 2014 2,000 1,999
Kentucky - 1.76%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare, Inc.),
Series 2000, MBIA Insured:
6.50% 2020 2,000 2,047
6.625% 2028 1,000 1,027
Hospital System Ref. and Improvement Rev. Bonds, Series 1997
(Appalachian Regional Healthcare, Inc. Project):
5.60% 2008 1,000 916
5.80% 2012 1,000 869
5.85% 2017 7,000 5,799
City of Ashland, Sewage and Solid Waste Rev. Bonds, Series 2,200 2,322
1995 (Ashland Inc. Project), AMT, 7.125% 2022
Louisiana - 2.51%
Health Education Auth., Rev. Ref. Bonds (Lambeth House
Project):
Series 1996, 9.00% 2026 (Preref. 2006) 1,850 2,327
Series 1998A, 6.20% 2028 5,000 4,297
Parish of Morehouse, Pollution Control Rev. Ref. Bonds, 1,000 1,002
2001 Series A, 5.25% 2013
Parish of West Feliciana:
Pollution Control Rev. Bonds (Gulf States Utilities Co. 1,500 1,556
Project), Series 1984-II, 7.70% 2014
Pollution Control Rev. Ref. Bonds (Entergy Gulf States, Inc. 2,500 2,580
Project), Series 1999A, 5.65% 2028 (Put 2004)
Tobacco Settlement Auth., Asset-Backed Bonds, Series 7,000 6,723
2001B, 5.50% 2030
Maine - 0.41%
Health and Higher Educational Facs. Auth., Rev. Bonds,
Piper Shores Issue, Series 1999A:
7.50% 2019 1,000 1,025
7.55% 2029 2,000 2,029
Maryland - 1.19%
Econ. Dev. Corp., Rev. Bonds (Anne Arundel County, Golf 1,000 1,002
Course System), Series 2001, 8.25% 2028
Anne Arundel County, Special Obligation Bonds (Arundel Mills 1,000 1,065
Project), Series 1999, 7.10% 2029
Frederick County, Special Obligation Bonds (Urbana Community 3,000 3,044
Dev. Auth.), Series 1998, 6.625% 2025
Housing Opportunities Commission of Montgomery County,
Multi-family Rev. Bonds (Strathmore Court at White Flint),
1994 Issue A-2:
7.50% 2024 1,000 1,042
7.50% 2027 950 989
Housing Auth. of Prince George's County, Mortgage Rev. Bonds, 1,000 1,022
Series 1997A (GNMA Collateralized - Langley Gardens
Apartments Project), 5.75% 2029
Prince George's County (Dimensions Health Corp. Issue), 1,250 638
Project and Ref. Rev. Bonds, Series 1994, 5.375% 2014
Massachusetts - 2.65%
G.O. Bonds, Consolidated Loan of 2001, Series D, 5.50% 2017 5,000 5,403
Dev. Fin. Agcy., Resource Recovery Rev. Bonds (Waste 1,000 1,099
Management, Inc. Project), Series 1999B, AMT, 6.90% 2029
(Put 2009)
Health and Educational Facs. Auth., Rev. Bonds, Partners 1,000 1,070
HealthCare System Issue, Series C, 6.00% 2015
Industrial Fin. Agcy.:
Resource Recovery Rev. Ref. Bonds (Ogden Haverhill Project), 6,300 5,333
Series 1998A, AMT, 5.30% 2009
Rev. Bonds, Edgewood Retirement Community Project, Series 5,400 6,642
1995A, 9.00% 2025 (Preref. 2005)
Michigan - 6.48%
State Cert. of Part. (New Center Development Inc.), MBIA 2,380 2,476
Insured, 5.375% 2016
Hospital Fin. Auth.:
Hospital Rev. Bonds (The Detroit Medical Center Obligated
Group), Series 1998A:
5.125% 2018 1,550 1,285
5.25% 2028 500 397
Hospital Rev. and Ref. Bonds (Henry Ford Health System), 1,000 956
Series 1995A, 5.25% 2025
Hospital Rev .Ref. Bonds:
Genesys Health System Obligated Group, Series 1995A:
8.00% 2005 (Escrowed to Maturity) 2,000 2,346
8.10% 2013 (Preref. 2005) 1,100 1,314
7.50% 2027 (Preref. 2005) 2,265 2,618
Hackley Hospital Obligated Group, Series 1998A, 5.30% 2013 1,000 960
Pontiac Osteopathic, Series 1994A:
5.375% 2006 2,550 2,527
6.00% 2014 2,500 2,409
6.00% 2024 1,000 900
Sinai Hospital of Greater Detroit, Series 1995, 6.00% 2008 1,000 1,002
Housing Dev. Auth., Single-Family Mortgage Rev. Bonds, 2001 2,110 2,126
Series A, AMT, MBIA Insured, 5.30% 2016
Municipal Bond Auth., Public School Academy Facs. Program
Rev. Bonds (Detroit Academy of Arts and Sciences Project),
Series 2001A:
7.90% 2021 3,400 3,543
8.00% 2031 2,300 2,404
Strategic Fund Limited Obligation Rev. Bonds (United Waste 4,250 4,180
Systems, Inc. Project), Series 1995, 5.20% 2010
City of Detroit Limited Tax G.O. Bonds, Series 1995A, 1,145 1,263
6.40% 2005
City of Flint, Hospital Building Auth. (Hurley Medical
Center):
Rev. Ref. Bonds, Series 1998A:
5.00% 2008 2,030 2,007
5.25% 2016 3,035 2,789
Rev. Rental Bonds, Series 1998B:
5.375% 2018 1,000 913
5.375% 2028 3,250 2,832
The Econ. Dev. Corp. of the County of Midland, Subordinate 6,305 6,542
Pollution Control Limited Obligation Rev. Ref. Bonds
(Midland Cogeneration Project), Series A, AMT, 6.875% 2009
Minnesota - 1.25%
Minneapolis-St. Paul Metropolitan Airports Commission, 2,000 1,595
Special Facs. Rev. Bonds (Northwest Airlines, Inc. Project),
Series 2001A, AMT, 7.00% 2025
Port Auth. of the City of Saint Paul, Hotel Fac. Rev. Bonds 8,000 7,629
(Radisson Kellogg Project), Series 1999-2, 7.375% 2029
Mississippi - 0.15%
G.O. Ref. Bonds, Series 2002A, 5.50% 2018 1,000 1,076
Nebraska - 0.40%
City of Kearney, Industrial Dev. Rev. Bonds (The Great
Platte River Road Memorial Foundation Project),
Series 1998:
6.75% 2023 12,890 1,521
6.75% 2028 12,200 1,440
Nevada - 3.78%
Housing Division, Single Family Mortgage Bonds:
1999 Series B-1, 4.95% 2012 535 535
1999 Series D-2, AMT, 5.90% 2013 1,280 1,356
Clark County:
Special Improvement Dist. No. 121 (Southern Highlands Area),
Local Improvement Bonds, Series 1999:
7.00% 2009 2,500 2,639
7.50% 2019 9,040 9,570
Special Improvement Dist. No. 132 (Summerlin South Area
(Villages 15A and 18)), Local Improvement Bonds, Series 2001:
6.125% 2011 1,040 1,048
6.40% 2014 1,255 1,262
6.50% 2015 1,000 1,009
6.875% 2021 2,550 2,586
City of Henderson:
Health Fac. Rev. Bonds (Catholic Healthcare West), 1998 2,000 1,778
Series A, 5.375% 2026
Local Improvement Dist. No. T-4C (Green Valley Properties),
Limited Obligation Ref. Bonds, 1999 Series A:
5.75% 2013 1,705 1,660
5.90% 2018 1,000 965
City of Las Vegas, Special Improvement Dist. No. 808
(Summerlin Area), Local Improvement Bonds, Series 2001:
6.40% 2015 1,395 1,409
6.75% 2021 2,000 2,026
New Hampshire - 0.49%
Business Fin. Auth., Pollution Control Ref. Rev. Bonds 2,000 2,004
(Public Service Co. of New Hampshire Project - 1992
Tax-Exempt Series D), AMT, 6.00% 2021
Health and Education Facs. Auth., Exeter Hospital Obligated 1,000 992
Group Issue, Series 2001A, 5.75% 2031
Housing Fin. Auth., Single Family Mortgage Acquisition Rev. 590 616
Bonds, 1997 Series D, AMT, 5.60% 2012
New Jersey - 4.17%
Econ. Dev. Auth.:
Econ. Dev. Bonds, Kapkowski Road Landfill Reclamation 4,750 4,989
Improvement Dist. Project (City of Elizabeth), Series 1998A,
6.375% 2031
First Mortgage Rev. Fixed-Rate Bonds:
Fellowship Village Project, Series 1995A, 9.25% 2025 2,000 2,377
(Preref. 2005)
Winchester Gardens at Ward Homestead Project, Series 1996A:
8.50% 2016 1,000 1,071
8.625% 2025 3,000 3,204
First Mortgage Rev. Bonds (Fellowship Village Project),
Series 1998C:
5.50% 2018 1,000 947
5.50% 2028 1,500 1,365
First Mortgage Rev. Ref. Bonds (Fellowship Village Project):
Series 1998A:
5.10% 2008 1,250 1,248
5.20% 2009 1,000 992
5.30% 2010 1,000 989
Tax-Exempt Term Bonds:
5.50% 2018 1,000 947
5.50% 2025 1,000 915
Retirement Community Rev. Bonds:
Cedar Crest Village, Inc. Fac., Series A, 7.25% 2031 2,250 2,193
Seabrook Village, Inc. Fac., Series 2000A, 8.25% 2030 9,000 9,486
New Mexico - 1.05%
Dona Ana County, Improvement Dist. Bonds (Santa Teresa
Improvement Dist.):
Airport Road Business Center, Phase III, Series 2001A, 2,215 2,196
8.375% 2021
Border Industrial Park, Phase I & II, Series 2001B, 5,560 5,514
8.875% 2021
New York - 4.07%
Dormitory Auth.:
Cert. of Part., City University of New York (John Jay 1,475 1,636
College of Criminal Justice Project Ref.), 6.00% 2006
Mental Health Services Fac. Improvement Rev. Bonds, 1,930 2,034
Series 1998C, 5.00% 2010
Housing Fin. Agcy.:
Health Facs. Rev. Bonds (New York City), 1996 Series A Ref., 1,000 1,100
6.00% 2006
Service Contract Obligation Rev. Ref. Bonds, 1997 Series C, 800 849
5.10% 2009
City of New York, G.O. Bonds:
Fiscal 2001 Series F:
5.00% 2008 2,000 2,097
5.00% 2009 2,510 2,605
Fiscal 2002 Series B, 5.50% 2012 3,000 3,183
New York City Industrial Dev. Agcy., AMT:
Industrial Dev. Rev. Bonds (Brooklyn Navy Yard Cogeneration 2,000 2,081
Partners, L.P. Project), Series 1997, 6.20% 2022
Solid Waste Disposal Rev. Bonds (1995 Visy Paper (NY), Inc. 2,000 2,034
Project), 7.55% 2005
Onondaga County Industrial Dev. Agcy., Solid Waste Disposal
Fac. Rev. Ref. Bonds (Solvay Paperboard LLC Project),
Series 1998, AMT:
6.80% 2014 1,500 1,546
7.00% 2030 3,000 3,117
Port Auth. of New York and New Jersey, Special Project Bonds,
Series 4, AMT, KIAC Partners Project:
7.00% 2007 1,500 1,572
6.75% 2011 4,000 4,159
Suffolk County Industrial Dev. Agcy., Continuing Care 2,000 2,007
Retirement Community Rev. Bonds (Peconic Landing at
Southhold, Inc. Project), Series 2000, 8.00% 2030
North Carolina - 2.05%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Ref. Series 1993B:
7.25% 2007 1,500 1,678
7.00% 2008 1,000 1,117
6.125% 2009 3,950 4,224
6.00% 2026 1,000 1,009
Ref. Series 1999A, 5.20% 2010 2,000 2,018
Ref. Series 1999B:
5.55% 2014 1,000 1,002
5.70% 2017 2,000 1,990
Series 1999D, 6.75% 2026 1,000 1,056
Municipal Power Agcy. Number 1, Catawba Electric Rev. Bonds, 1,000 1,048
Series 1999B, 6.50% 2020
North Dakota - 0.12%
Housing Fin. Agcy., Rev. Bonds, 1998 Series A, AMT, 875 871
5.25% 2018
Ohio - 1.58%
The Student Loan Funding Corp., Cincinnati, Student Loan 145 145
Rev. Ref. Bonds, Series 1991A, AMT, 7.20% 2003
Water Dev. Auth., Solid Waste Disposal Rev. Bonds (Bay 4,000 3,664
Shore Power Project), Series 1998A, AMT, 5.875% 2020
City of Cleveland, Airport Special Rev. Bonds (Continental
Airlines, Inc. Project), AMT:
Series 1998, 5.375% 2027 2,750 1,799
Series 1999, 5.70% 2019 1,500 1,088
County of Montgomery, Hospital Facs. Rev. Bonds (Kettering
Medical Center Network Obligated Group), Series 1999:
6.75% 2018 1,000 1,049
6.75% 2022 1,000 1,046
County of Richland, Hospital Facs. Rev. Improvement Bonds
(MedCentral Health System Obligated Group), Series 2000B:
6.375% 2022 1,000 1,043
6.375% 2030 1,750 1,811
Oklahoma - 1.85%
Langston Econ. Dev. Auth., Student Housing Rev. Bonds
(Langston Community Dev. Corp. Project), Series 2000A:
7.40% 2017 2,710 2,622
7.75% 2030 6,050 5,904
Trustees of the Tulsa Municipal Airport Trust, Rev. Bonds, 6,000 5,121
Ref. Series 2001B, AMT, 5.65% 2035 (Put 2008)
Oregon - 1.68%
City of Klamath Falls, Electric Rev. Ref. Bonds (Klamath
Cogeneration Project), Series 1999:
5.75% 2013 2,000 2,059
5.875% 2016 3,500 3,542
6.00% 2025 6,750 6,782
Pennsylvania - 3.09%
Housing Fin. Agcy., Rev. Bonds, Single Housing Family 1,400 1,448
Mortgage, Series 1997-58A, AMT, 5.85% 2017
Allegheny County Hospital Dev. Auth., Health System Rev. 2,000 2,110
Bonds (West Penn Allegheny Health System), Series 2000B,
9.25% 2030
Lehigh County, General Purpose Auth. Rev. Bonds (KidsPeace 1,000 1,064
Obligated Group), ACA Insured, 5.70% 2009
Hospitals and Higher Education Facs. Auth. of Philadelphia:
Frankford Hospital, Series A, 6.00% 2014 (Escrowed to 500 536
Maturity)
Hospital Rev. Bonds (Temple University Hospital), Series of 1,000 1,001
1997, 5.70% 2009
Philadelphia Auth. for Industrial Dev., Rev. Bonds
(Cathedral Village Project), Series of 1998:
5.30% 2007 1,145 1,137
5.50% 2010 1,000 971
Scranton-Lackawanna Health and Welfare Auth., City of
Scranton, Lackawanna County, Hospital Rev. Bonds (Moses
Taylor Hospital Project), Series 1997:
5.75% 2006 1,585 1,525
5.80% 2007 1,680 1,599
5.90% 2008 1,730 1,628
6.00% 2009 940 877
6.10% 2011 2,005 1,832
6.20% 2017 1,000 851
Westmoreland County:
Health Care Fac. Rev. Bonds (Redstone Presbyterian 4,000 4,190
SeniorCare Obligated Group), Fixed Rate Rev. Bonds,
Series 2000B, 8.125% 2030
Indust. Dev. Auth., Variable Rate Rev. Bonds (National Waste 2,000 1,970
and Energy Corp.; Valley Landfill Expansion Project),
Series 1993, AMT, 5.10% 2018 (Put 2009)
Rhode Island - 0.28%
Housing and Mortgage Fin. Corp., Homeownership Opportunity 2,000 2,034
Bonds, Series 9-B-1, AMT, 5.55% 2013
South Carolina - 1.72%
Piedmont Municipal Power Agcy., Electric Rev. Bonds, 6,000 5,630
1999A Ref. Series, 5.25% 2015
Tobacco Settlement Rev. Management Auth., Tobacco Settlement 4,500 4,591
Asset-Backed Bonds, Series 2001B, 6.00% 2022
York County, Pollution Control Facs. Rev. Bonds (Bowater 2,300 2,441
Inc. Project), Series 1990, AMT, 7.625% 2006
Tennessee - 0.13%
Health and Educational Facs. Board of the Metropolitan 1,160 986
Government of Nashville and Davidson County, Rev. Ref.
Bonds, Series 1998, 5.65% 2024
Texas - 5.95%
Alliance Airport Auth., Inc., Special Facs. Rev. Bonds 1,500 1,355
(American Airlines, Inc. Project), Series 1990, AMT,
7.00% 2011
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. 1,000 911
Bonds (Buckner Retirement Services, Inc. Obligated Group
Project), Series 1998, 5.25% 2028
Brazos River Auth.:
Collateralized Pollution Control Rev. Ref. Bonds (Texas 2,000 2,004
Utilities Electric Co. Project), Series 1995B, AMT,
5.05% 2030 (Put 2006)
Pollution Control Rev. Ref. Bonds (TXU Electric Company 9,375 9,326
Project), Series 2001B, AMT, 5.75% 2036 (Put 2011)
Industrial Dev. Corp. of Port of Corpus Christi, Rev. Ref. 5,250 5,264
Bonds (Valero Refining and Marketing Co. Project),
Series 1997D, AMT, 5.125% 2009
Cities of Dallas and Fort Worth, Dallas/Fort Worth
International Airport, Joint Rev. Improvement and Ref.
Bonds, Series 2001A, AMT, FGIC Insured:
5.625% 2011 2,000 2,128
5.75% 2015 1,185 1,244
Donna Independent School Dist. (Hidalgo County), Unlimited 1,000 1,008
Tax School Building Bonds, Series 1998, 5.20% 2018
Fort Worth International Airport Fac. Improvement Corp., 3,000 2,689
American Airlines, Inc., Rev. Ref. Bonds, Series 2000C,
AMT, American Airlines Insured, 6.15% 2029 (Put 2007)
Harris County Health Facs. Dev. Corp.:
Hospital Rev. Bonds (Memorial Hermann Healthcare System), 4,100 4,270
Series 2001A, 6.375% 2029
Rev. Bonds (St. Luke's Episcopal Hospital), Series 2001A:
5.625% 2014 1,500 1,561
5.50% 2020 2,850 2,855
Hidalgo County Health Services Corp., Hospital Rev. Bonds
(Mission Hospital, Inc. Project), Series 1996:
7.00% 2008 2,365 2,423
6.75% 2016 1,000 956
City of Houston, Airport System Subordinate Lien, Rev. Ref. 2,855 2,942
Bonds, Series 2001A, AMT, FGIC Insured, 5.50% 2015
San Antonio Independent School Dist., Unlimited Tax Ref. 1,500 1,594
Bonds, Series 2001B, 5.375% 2013
Tomball Hospital Auth., Rev. Ref. Bonds, Series 1993, 1,390 1,357
6.125% 2023
Utah - 1.35%
Housing Corp., Single Family Mortgage Bonds, AMT:
2001 Series E, 5.20% 2018 2,500 2,472
2001 Series F, 4.95% 2018 2,000 1,951
2002 Series B, 5.30% 2018 1,000 993
Housing Fin. Agcy., Single Family Mortgage Bonds, AMT:
1997 Series G-2, Class III, 5.60% 2010 730 763
1998 Series G-2, Class III, 4.90% 2012 795 813
1999 Series B-2, Class III, 5.10% 2012 935 960
1999 Series C-3, Class III, 5.60% 2013 1,235 1,294
Federally Insured or Guaranteed Mortgage Loans, 1999 655 686
Issue D, AMT, 5.60% 2013
Virginia - 2.03%
Dulles Town Center Community Dev. Auth. (Loudoun County), 4,000 3,915
Special Assessment Bonds (Dulles Town Center Project),
Series 1998, 6.25% 2026
Fairfax County Econ. Dev. Auth., Retirement Community Rev.
Bonds (Greenspring Village, Inc. Fac.), Series 1999A:
6.75% 2012 1,500 1,575
7.50% 2029 4,000 4,181
Gateway Community Dev. Auth. (Prince William County), 2,000 1,969
Special Assessment Bonds, Series 1999, 6.25% 2026
Industrial Dev. Auth. of Henrico County, Solid Waste Disposal 500 476
Rev. Bonds (Browning-Ferris Industries of South Atlantic,
Inc. Project), Series 1995, AMT, 5.30% 2011 (Put 2005)
Heritage Hunt Commercial Community Dev. Auth. (Prince 1,000 1,046
William County), Special Assessment Bonds, Series 1999B,
7.00% 2029
Pocahontas Parkway Association, Route 895 Connector Toll
Road Rev. Bonds, Series 1998A:
5.25% 2008 1,100 975
5.00% 2011 1,000 815
Washington - 0.36%
Health Care Facs. Auth. Rev. Bonds, (Group Health 1,500 1,591
Cooperative of Puget Sound), Series 2001, AMBAC Insured,
5.375% 2012
Port of Seattle, Rev. Bonds, Series B, AMT, FGIC Insured, 1,000 1,064
5.50% 2010
Wisconsin - 1.52%
Health Educational Facs. Auth. Rev. Bonds (Froedtert & 1,000 1,030
Community Health Obligated Group), Series 2001, 5.625% 2013
Housing and Econ. Dev. Auth.:
Home Ownership Rev. Bonds, 1998 Series A, 5.375% 2017 1,400 1,422
Housing Rev. Bonds, 1993 Series B, AMT, 5.30% 2006 1,000 1,036
City of Oconto Falls, Community Dev. Auth., Dev. Rev. Bonds
(Oconto Falls Tissue, Inc. Project), Series 1997, AMT:
7.75% 2022 8,600 6,927
8.125% 2022 /1/ 970 805
681,472
Short-Term Securities - 6.12%
Gulf Coast Waste Disposal Auth., Texas, Environmental Facs. 3,200 3,200
Rev. Bonds (ExxonMobil Project), Series 2001B, AMT,
1.50% 2025 /3/
City of Houston, Texas, Tax and Rev. Anticipation Notes, 3,500 3,529
Series 2001, 3.50% 6/28/2002
State of Kentucky, Asset/Liability Commission, General Fund 5,000 5,051
Tax and Rev. Anticipation Notes, 2001 Series A, 4.00%
6/26/2002
Lincoln County, Wyoming, Pollution Control Rev. Bonds 2,200 2,200
(Exxon Project), Series 1984C, 1.41% 2014 /3/
County of Los Angeles, California, 2001-2002 Tax and Rev. 1,500 1,514
Anticipation Notes, Series A, 3.75% 6/28/2002
Lower Neches Valley Auth., Texas, Industrial Dev. Corp., 3,700 3,700
Exempt Facs. Ref. Rev. Bonds (ExxonMobil Project),
Series 2001, Subseries 2001A, 1.40% 2031 /3/
Massachusetts Health and Educational Facs. Auth., Rev. Bonds 2,000 2,000
(Harvard University Issue), Series L, 1.25% 2024 /3/
State of New Mexico, 2001-2002 Tax and Rev. Anticipation 3,000 3,032
Notes, Series 2001, 4.00% 6/28/2002
North Carolina Medical Care Commission, Variable Rate 2,500 2,500
Hospital Rev. Bonds (Pooled Fncg. Project), Series 1996A,
1.50% 2016 /3/
Sublette County, Wyoming:
Adjustable Tender Pollution Control Rev. Bonds (Exxon 2,600 2,600
Project), Series 1987B, AMT, 1.50% 2017 /3/
Pollution Control Rev. Bonds (Exxon Project), 1987 Series A, 1,100 1,100
AMT, 1.50% 2017 /3/
State of Texas, Tax and Rev. Anticipation Notes, Series 9,800 9,931
2001A, 3.75% 8/29/2002
Uinta County, Wyoming Pollution Control Ref. Rev. Bonds 1,600 1,600
(Chevron U.S.A. Inc Project), Series 1992, 1.50% 2022 /3/
City of Valdez, Alaska, Marine Terminal Rev. Ref. Bonds 2,130 2,130
(Exxon Pipeline Co. Project), 1993 Series A, 1.40% 2033 /3/
State of Wyoming, General Fund Tax and Rev. Anticipation 1,000 1,008
Notes, Series 2001A, 3.50% 6/27/2002
45,095
TOTAL INVESTMENT SECURITIES (cost: $730,467,000) 726,567
Excess of cash and receivables over payables 10,444
NET ASSETS $737,011
/1/ Purchased in a private placement transaction; resale
may be limited to qualified institutional buyers; resale
to the public may require registration.
/2/ Company not making interest payments;
bankruptcy proceedings pending.
/3/ Coupon rate may change periodically; the date of the
next scheduled coupon rate change is considered to be
the maturity date.
See Notes to Financial Statements
Key to abbreviations
Agcy. - Agency
AMT - Alternative Minimum Tax
Auth. - Authority
Cert. of Part. - Certificates of Participation
Dev. - Development
Dist. - District
Econ. - Economic
Fac. - Facility
Facs. - Facilities
Fin. - Finance
Fncg. - Financing
G.O. - General Obligation
Preref. - Prerefunded
Redev. - Redevelopment
Ref. - Refunding
Rev. - Revenue
[Download Table]
American High-Income Municipal Bond Fund
Financial statements
Statement of assets and liabilities Unaudited
at January 31, 2002 (dollars in thousands)
Assets:
Investment securities at market
(cost: $730,467) $726,567
Cash 1
Receivables for -
Sales of fund's shares $ 2,418
Interest 11,492 13,910
740,478
Liabilities:
Payables for -
Purchases of investments 1,011
Repurchases of fund's shares 524
Dividends on fund's shares 1,317
Management services 250
Other expenses 365 3,467
Net assets at January 31, 2002 $737,011
Total authorized capital stock - 200,000,000
shares, $.001 par value
Class A shares:
Net assets $698,263
Shares outstanding 46,276,200
Net asset value per share $15.09
Class B shares:
Net assets $19,847
Shares outstanding 1,315,380
Net asset value per share $15.09
Class C shares:
Net assets $12,686
Shares outstanding 840,730
Net asset value per share $15.09
Class F shares:
Net assets $6,215
Shares outstanding 411,900
Net asset value per share $15.09
Statement of operations Unaudited
for the six months ended January 31, 2002 (dollars in thousands)
Investment income:
Income:
Interest $21,987
Expenses:
Management services fee $1,454
Distribution expenses - Class A 1,027
Distribution expenses - Class B 79
Distribution expenses - Class C 42
Distribution expenses - Class F 4
Transfer agent fee - Class A 94
Transfer agent fee - Class B 3
Administrative services fees - Class C 7
Administrative services fees - Class F 4
Reports to shareholders 31
Registration statement and prospectus 66
Postage, stationery and supplies 16
Directors' fees 9
Auditing and legal fees 41
Custodian fee 7
Taxes other than federal income tax 1
Other expenses 4 2,889
Net investment income 19,098
Realized loss and unrealized
depreciation on investments:
Net realized loss (460)
Net unrealized depreciation on investments (11,716)
Net realized loss and
unrealized depreciation on investments (12,176)
Net increase in net assets resulting
from operations $6,922
Statement of changes in net assets (dollars in thousands)
Six months Year
ended ended
January 31, July 31,
2002 /1/ 2001
Operations:
Net investment income $19,098 $32,944
Net realized loss on investments (460) (36)
Net unrealized (depreciation) appreciation
on investments (11,716) 19,734
Net increase in net assets
resulting from operations 6,922 52,642
Dividends paid to shareholders:
Dividends from net investment income:
Class A (18,686) (32,744)
Class B (371) (270)
Class C (189) (33)
Class F (91) (15)
Total dividends (19,337) (33,062)
Capital share transactions:
Proceeds from shares sold 188,522 215,865
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 11,837 20,280
Cost of shares repurchased (117,896) (140,379)
Net increase in net assets resulting
from capital share transactions 82,463 95,766
Total increase in net assets 70,048 115,346
Net assets:
Beginning of period 666,963 551,617
End of period (including undistributed
net investment income: $368 and $707,
respectively) $737,011 $666,963
/1/ Unaudited.
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - American High-Income Municipal Bond Fund, Inc. (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks a high level of current income
exempt from regular federal income taxes through a diversified, carefully
researched portfolio of higher yielding, lower rated, higher risk municipal
bonds.
The fund offers four classes of shares as described below:
Class A shares are sold with an initial sales charge of up to 3.75%.
Class B shares are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares
automatically convert to Class A shares after eight years.
Class C shares are sold without an initial sales charge but are subject to a
CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years.
Class F shares, which are sold exclusively through fee-based programs, are sold
without an initial sales charge or CDSC.
Holders of all classes of shares have equal pro rata rights to assets,
dividends, liquidation and other rights. Each class has identical voting
rights, except for exclusive rights to vote on matters affecting only its
class. Each class of shares may have different distribution, administrative
services and transfer agent fees and expenses. Differences in class-specific
expenses will result in the payment of different per-share dividends by each
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States of America. These principles require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is
a summary of the significant accounting policies consistently followed by the
fund in the preparation of its financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Securities and other assets for which
representative market quotations are not readily available are valued at fair
value as determined in good faith by a committee appointed by authority of the
fund's Board of Directors.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or when-issued basis, the fund
will instruct the custodian to segregate liquid assets sufficient to meet its
payment obligations in these transactions. Interest income is recognized on an
accrual basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of the
security.
On August 1, 2001, the fund began amortizing discount daily over the expected
life of fixed-income securities to conform with a recent change in accounting
principles generally accepted in the United States of America for mutual funds.
Adopting this change did not impact the fund's net asset value but resulted in
changes to the classification of certain amounts between interest income and
realized and unrealized gain or loss in the Statement of Operations.
Therefore, the undistributed net investment income amount is primarily
comprised of these adjustments which were based on the fixed-income securities
held by the fund on August 1, 2001. Because the fund determines its required
distributions under federal income tax laws, adoption of this principle will
not affect the amount of distributions paid to shareholders.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly. Distributions paid to shareholders are
recorded on the ex-dividend date.
CLASS ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily among the various
share classes based on their relative net asset values. Distribution expenses,
administrative services fees, certain transfer agent fees and other applicable
class-specific expenses are accrued daily and charged to the respective share
class.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are based on net investment
income and net realized gains determined on a tax basis and may differ from
such amounts for financial reporting purposes. In addition, the fiscal year in
which amounts are distributed may differ from the year in which the net
investment income is earned and the net gains are realized by the fund.
As of January 31, 2002, the cost of investment securities for book and federal
income tax reporting purposes was $730,467,000. Net unrealized depreciation on
investments aggregated $3,900,000; $22,449,000 related to appreciated
securities and $26,349,000 related to depreciated securities. For the six
months ended January 31, 2002, the fund realized tax basis net capital gains of
$222,000. The fund had available at July 31, 2001, a net capital loss
carryforward totaling $6,620,000 which may be used to offset capital gains
realized during subsequent years through 2009 and thereby relieve the fund and
its shareholders of any federal income tax liability with respect to the
capital gains that are so offset. The fund will not make distributions from
capital gains while a capital loss carryforward remains. In addition, the fund
has recognized, for tax purposes, net capital losses totaling $169,000 which
were realized during the period November 1, 2000 through July 31, 2001.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,454,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
("CRMC") with which officers and certain Directors of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees accrued
daily, based on an annual rate of 0.30% of the first $60 million of daily net
assets and 0.21% of such assets in excess of $60 million. The agreement also
provides for monthly fees, accrued daily, of 3.00% of the fund's monthly gross
investment income. For the six months ended January 31, 2002, the management
services fee was equivalent to an annualized rate of 0.408% of average daily
net assets.
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution under which
it may finance activities primarily intended to sell fund shares, provided the
categories of expenses are approved in advance by the fund's Board of
Directors. The plans provide for annual expenses, based on average daily net
assets, of up to 0.30% for Class A shares, 1.00% for Class B and Class C
shares, and up to 0.50% for Class F shares.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares, for paying service fees to firms that have
entered into agreements with AFD for providing certain shareholder services.
The balance may be used for approved distribution expenses as follows:
CLASS A SHARES - Approved categories of expense include reimbursements to AFD
for commissions paid to dealers and wholesalers in respect of certain shares
sold without a sales charge. Those reimbursements are permitted for amounts
billed to the fund within the prior 15 months but only to the extent that the
overall 0.30% annual expense limit for Class A shares is not exceeded. For the
six months ended January 31, 2002, aggregate distribution expenses were limited
to $1,027,000, equivalent to an annualized rate of 0.30% of average daily net
assets attributable to Class A shares. As of January 31, 2002, unreimbursed
expenses which remain subject to reimbursement totaled $342,000.
CLASS B SHARES - In addition to service fees of 0.25%, approved categories of
expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to receive
such payments (as well as any contingent deferred sales charges payable in
respect of shares sold during the period) in order to finance the payment of
dealer commissions. For the six months ended January 31, 2002, aggregate
distribution expenses were $79,000, equivalent to an annualized rate of 1.00%
of average daily net assets attributable to Class B shares.
CLASS C SHARES - In addition to service fees of 0.25%, the Board of Directors
has approved the payment of 0.75% per annum of average daily net assets
attributable to Class C shares to AFD to compensate firms selling Class C
shares of the fund. For the six months ended January 31, 2002, aggregate
distribution expenses were $42,000, equivalent to an annualized rate of 1.00%
of average daily net assets attributable to Class C shares.
CLASS F SHARES - The plan has an expense limit of 0.50%. However, the Board of
Directors has presently approved expenses under the plan of 0.25% per annum of
average daily net assets attributable to Class F shares. For the six months
ended January 31, 2002, aggregate distribution expenses were $4,000, equivalent
to an annualized rate of 0.25% of average daily net assets attributable to
Class F shares.
As of January 31, 2002, aggregate distribution expenses payable to AFD for all
share classes were $236,000.
AFD received $282,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the fund's Class A shares for the six months
ended January 31, 2002. Such sales charges are not an expense of the fund and,
hence, are not reflected in the accompanying Statement of Operations.
TRANSFER AGENT FEE - A fee of $97,000 was incurred during the six months ended
January 31, 2002, pursuant to an agreement with American Funds Service Company
("AFS"), the transfer agent for the fund. As of January 31, 2002, aggregate
transfer agent fees payable to AFS for Class A and Class B shares were $16,000.
ADMINISTRATIVE SERVICES FEES - The fund has an administrative services
agreement with CRMC for Class C and Class F shares. Pursuant to this agreement,
CRMC provides transfer agency and other related shareholder services. CRMC may
contract with third parties to perform these services. Under the agreement,
the fund pays CRMC a fee equal to 0.15% per annum of average daily net assets
of Class C and Class F shares, plus amounts payable for certain transfer agency
services according to a specified schedule. For the six months ended January
31, 2002, total fees under the agreement were $11,000. As of January 31, 2002,
aggregate administrative services fees payable to CRMC for Class C and Class F
shares were $3,000.
DEFERRED DIRECTORS' FEES - Since the adoption of the deferred compensation plan
in 1994, Directors who are unaffiliated with CRMC may elect to defer the
receipt of part or all of their compensation. Deferred compensation amounts,
which remain in the fund, are treated as if invested in shares of the fund or
other American Funds. These amounts represent general, unsecured liabilities
of the fund and vary according to the total returns of the selected funds. As
of January 31, 2002, the cumulative amount of these liabilities was $25,000.
Directors' fees on the Statement of Operations include the current fees (either
paid in cash or deferred) and the net increase or decrease in the value of
deferred compensation.
AFFILIATED OFFICERS AND DIRECTORS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers and certain Directors of the fund are or may be considered to be
affiliated with CRMC, AFS and AFD. No such persons received any remuneration
directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $123,846,000 and $59,389,000, respectively, during
the six months ended January 31, 2002.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
For the six months ended January 31, 2002, the custodian fee of $7,000 includes
$1,000 that was paid by these credits rather than in cash.
For the six months ended January 31, 2002, the fund reclassified $18,000 from
undistributed net investment income to undistributed net realized gains. The
fund also reclassified $82,000 from undistributed net investment income to
additional paid-in capital to reflect permanent differences between book and
tax reporting.
As of January 31, 2002, net assets consisted of the following:
[Download Table]
(dollars in thousands)
Capital paid in on shares of capital stock $747,757
Undistributed net investment income 368
Accumulated net realized loss (7,214)
Net unrealized depreciation (3,900)
Net assets $737,011
Capital share transactions in the fund were as follows:
[Download Table]
Six Months Six Months
ended ended
January 31, January 31,
2002 2002
Amount (000) Shares
Class A Shares:
Sold $ 163,364 10,703,915
Reinvestment of dividends and distributions 11,386 747,034
Repurchased (115,008) (7,549,579)
Net increase in Class A 59,742 3,901,370
Class B Shares:
Sold 10,050 658,625
Reinvestment of dividends and distributions 249 16,322
Repurchased (1,056) (69,287)
Net increase in Class B 9,243 605,660
Class C Shares: /1/
Sold 9,166 600,573
Reinvestment of dividends and distributions 130 8,579
Repurchased (616) (40,452)
Net increase in Class C 8,680 568,700
Class F Shares: /1/
Sold 5,942 389,946
Reinvestment of dividends and distributions 72 4,730
Repurchased (1,216) (79,336)
Net increase in Class F 4,798 315,340
Total net increase in fund $ 82,463 5,391,070
Year ended Year ended
July 31, July 31,
2001 2001
Amount (000) Shares
Class A Shares:
Sold $ 199,249 13,256,036
Reinvestment of dividends and distributions 20,047 1,332,347
Repurchased (138,032) (9,188,783)
Net increase in Class A 81,264 5,399,600
Class B Shares:
Sold 9,884 656,159
Reinvestment of dividends and distributions 199 13,211
Repurchased (1,171) (77,890)
Net increase in Class B 8,912 591,480
Class C Shares: /1/
Sold 4,325 285,173
Reinvestment of dividends and distributions 22 1,461
Repurchased (221) (14,604)
Net increase in Class C 4,126 272,030
Class F Shares: /1/
Sold 2,407 159,012
Reinvestment of dividends and distributions 12 807
Repurchased (955) (63,259)
Net increase in Class F 1,464 96,560
Total net increase in fund $ 95,766 6,359,670
/1/ Class C and Class F shares were not offered
before March 15, 2001.
[Enlarge/Download Table]
Per-share data and ratios
Class A Class A Class A
Six months
ended Year ended Year ended
January 31, July 31, July 31,
2002 /1/,/2/ 2001 2000
Net asset value, beginning of period $15.35 $14.87 $15.49
Income from investment operations:
Net investment income .41 /3/ .83 /3/ .82 /3/
Net (losses) gains on securities (.25)/3/ .48 /3/ (.58)/3/
(both realized and unrealized)
Total from investment operations .16 1.31 .24
Less distributions:
Dividends (from net investment income) (.42) (.83) (.83)
Distributions (from capital gains) - - (.03)
Total distributions (.42) (.83) (.86)
Net asset value, end of period $15.09 $15.35 $14.87
Total return /4/ 1.05% 9.14% 1.61%
Ratios/supplemental data:
Net assets, end of period (in millions) $698 $650 $550
Ratio of expenses to average net assets .78%/5/ .80% .80%
Ratio of net income to average net assets 5.39%/5/ 5.50% 5.53%
Class A Class A Class A
Year ended Year ended Year ended
July 31, July 31, July 31,
1999 1998 1997
Net asset value, beginning of period $16.12 $15.90 $15.23
Income from investment operations:
Net investment income .81 .84 .87
Net (losses) gains on securities (.54) .26 .80
(both realized and unrealized)
Total from investment operations .27 1.10 1.67
Less distributions:
Dividends (from net investment income) (.82) (.84) (.86)
Distributions (from capital gains) (.08) (.04) (.14)
Total distributions (.90) (.88) (1.00)
Net asset value, end of period $15.49 $16.12 $15.90
Total return /4/ 1.63% 7.05% 11.36%
Ratios/supplemental data:
Net assets, end of period (in millions) $564 $464 $316
Ratio of expenses to average net assets .78% .79% .87%
Ratio of net income to average net assets 5.09% 5.19% 5.51%
Class B Class B Class B
Six months Year
ended ended March 15 to
January 31, July 31, July 31,
2002 /1/,/2/ 2001 2000 /1/
Net asset value, beginning of period $15.35 $14.87 $14.79
Income from investment operations: /3/
Net investment income .36 .71 .23
Net (losses) gains on securities (.25) .50 .14
(both realized and unrealized)
Total from investment operations .11 1.21 .37
Less distributions:
Dividends (from net investment income) (.37) (.73) (.29)
Net asset value, end of period $15.09 $15.35 $14.87
Total return /4/ .70% 8.45% 3.16%
Ratios/supplemental data:
Net assets, end of period (in millions) $20 $11 $2
Ratio of expenses to average net assets 1.49%/5/ 1.48% .55%
Ratio of net income to average net assets 4.64%/5/ 4.72% 1.77%
Class C Class C
Six months
ended March 15 to
January 31, July 31,
2002 /1/,/2/ 2001 /1/
Net asset value, beginning of period $15.35 $15.11
Income from investment operations: /3/
Net investment income .35 .25
Net (losses) gains on securities (.25) .25
(both realized and unrealized)
Total from investment operations .10 .50
Less distributions:
Dividends (from net investment income) (.36) (.26)
Net asset value, end of period $15.09 $15.35
Total return /4/ .62% 3.34%
Ratios/supplemental data:
Net assets, end of period (in millions) $13 $4
Ratio of expenses to average net assets 1.63%/5/ .59%
Ratio of net income to average net assets 4.54%/5/ 1.75%
Class F Class F
Six months
ended March 19 to
January 31, July 31,
2002 /1/,/2/ 2001 /1/
Net asset value, beginning of period $15.35 $15.12
Income from investment operations: /3/
Net investment income .40 .26
Net (losses) gains on securities (.25) .25
(both realized and unrealized)
Total from investment operations .15 .51
Less distributions:
Dividends (from net investment income) (.41) (.28)
Net asset value, end of period $15.09 $15.35
Total return /4/ .98% 3.43%
Ratios/supplemental data:
Net assets, end of period (in millions) $6 $1
Ratio of expenses to average net assets .93%/5/ .35%
Ratio of net income to average net assets 5.30%/5/ 1.88%
Supplemental data - all classes
Six months Year Year
ended ended ended
January 31, July 31, July 31,
2002 /1/,/2/ 2001 2000
Portfolio turnover rate 9.02% 18.23% 33.20%
Supplemental data - all classes
Year Year Year
ended ended ended
July 31, July 31, July 31,
1999 1998 1997
Portfolio turnover rate 16.67% 16.38% 15.31%
/1/ Based on operations for the period shown
and, accordingly, not representative of a
full year (unless otherwise noted).
/2/ Unaudited.
/3/ Based on average shares outstanding.
/4/ Total returns exclude all sales charges,
including contingent deferred sales charges.
/5/ Annualized.
[Download Table]
Limited Term Tax-Exempt Bond Fund of America
Investment Portfolio
January 31, 2002
Portfolio composition
[pie chart and table]
Percent of
Net Assets
Texas 14.33%
Michigan 7.58
Illinois 6.04
California 6.02
Indiana 5.44
Washington 5.37
New York 4.78
North Carolina 3.92
District of Columbia 3.52
Louisiana 3.25
Other states 34.49
Cash & equivalents 5.26
[Enlarge/Download Table]
Limited Term Tax-Exempt Bond Fund of America Unaudited
Investment Portfolio, January 31, 2002
Principal Market
Amount Value
Fixed-Income Securities - 94.74% (000) (000)
Alabama - 0.24%
Industrial Dev. Board of the City of Butler, Pollution $1,000 $1,004
Control Ref. Rev. Bonds (James River Project),
Series 1993, 5.50% 2005
Alaska - 1.71%
Industrial Dev. and Export Auth. Power Rev. Bonds
(Snettisham Hydroelectric Project), First Series,
AMT, AMBAC Insured:
5.25% 2005 930 979
5.25% 2005 (Escrowed to Maturity) 70 74
Northern Tobacco Securitization Corp., Tobacco
Settlement Asset-Backed Bonds, Series 2000:
5.60% 2009 1,000 1,052
5.60% 2010 1,000 1,055
4.75% 2015 1,750 1,689
Student Loan Corp., Student Loan Rev. Bonds, 2,140 2,265
2000 Series A, AMT, AMBAC Insured, 5.65% 2010
Arizona - 0.71%
Industrial Dev. Auth. of the County of Maricopa, Health 1,950 1,935
Fac. Rev. Bonds (Catholic Healthcare West Project),
1998 Series A, 4.30% 2005
City of Phoenix, Senior Lien Street and Highway User 1,000 1,035
Rev. Ref. Bonds, Series 1993, 5.00% 2008
California - 6.02%
Pollution Control Fncg. Auth., Solid Waste Disposal Ref. 4,300 4,318
Rev. Bonds (USA Waste Services, Inc. Project), Series
1998A, AMT, 5.10% 2018 (Put 2008)
Statewide Communities Dev. Auth.:
Apartment Dev. Rev. Ref. Bonds (Irvine Apartment 4,000 4,082
Communities, LP),Series 1998A-1, AMT, 5.05% 2025 (Put 2008)
Cert. of Part. (Catholic Healthcare West Project), 915 962
1999 Series A, 6.00% 2009
Veterans G.O. Bonds, Series BL, AMT, 4.95% 2007 2,560 2,651
Association of Bay Area Governments, Fin. Auth. For
Nonprofit Corps.:
Rev. Bonds (San Diego Hospital Association), Series 2001A, 1,025 1,059
5.25% 2006
Rev. Ref. Cert. of Part.:
American Baptist Homes of the West Facs. Project:
Series 1997A, 5.25% 2007 655 638
Series 1997B, 5.50% 2007 915 893
Episcopal Homes Foundation, Series 1998:
5.00% 2007 1,405 1,448
5.00% 2008 2,455 2,521
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium of 3,500 3,811
the Pacific Project), 1995 Series A, 5.75% 2005 (Escrowed
to Maturity)
County of Los Angeles, Capital Asset Leasing Corp., Cert. 695 718
of Part. (Marina del Rey), 1993 Series A, 6.25% 2003
City of Torrance, Hospital Rev. Bonds (Torrance Memorial
Medical Center), Series 2001A:
4.70% 2009 1,010 1,016
4.80% 2010 940 943
Colorado - 1.46%
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), 2,000 2,098
Series 2001, 5.375% 2010
Housing and Fin. Auth., Single Family Program Senior Bonds, 295 302
1995 Series C-2, 5.625% 2009
EagleBend Affordable Housing Corp., Multi-family Housing 2,585 2,582
Project Rev. Ref. Bonds, Series 1997A, 5.75% 2007
University of Colorado Hospital Auth., Hospital Ref. Rev. 1,000 1,088
Bonds, Series 1997A, AMBAC Insured, 5.50% 2007
Connecticut - 1.10%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds,
1996 Series A (Escrowed to Maturity): /1/
6.25% 2002 500 514
6.375% 2004 995 1,095
Mohegan Tribe of Indians, Gaming Auth. Priority Distribution 3,000 2,959
Payment, Public Improvement Bonds, Series 2001, 5.375% 2011
Delaware - 0.49%
Econ. Dev. Auth., Pollution Control Ref. Rev. Bonds 2,000 2,042
(Delmarva Power & Light Co. Project), Series 2001C, AMBAC
Insured, 4.90% 2026 (Put 2011)
District of Columbia - 3.52%
G.O. Ref. Bonds:
Series 1993B-2, FSA Insured, 5.50% 2010 2,500 2,711
Series 1993D, FGIC Insured:
5.10% 2002 (Escrowed to Maturity) 932 959
5.10% 2002 68 70
Series 1999, FSA Insured:
5.50% 2009 695 754
5.50% 2009 (Escrowed to Maturity) 195 214
Fixed Rate Rev. Bonds (National Academy of Sciences Project), 1,065 1,122
Series 1999A, AMBAC Insured, 5.00% 2007
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc.
Issue), Series 1997A, MBIA Insured (Escrowed to Maturity):
6.00% 2006 1,000 1,112
6.00% 2007 1,250 1,396
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington Hospital
Center Projects):
Series 2001A, 6.40% 2031 (Put 2004) 1,000 1,025
Series 2001B, 6.625% 2031 (Put 2005) 2,000 2,083
Series 2001D, 6.875% 2031 (Put 2007) 3,000 3,203
Florida - 2.19%
Dade County, Resource Recovery Fac. Ref. Rev. Bonds, Series 3,500 3,830
1996, AMT, AMBAC Insured, 6.00% 2006
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. 1,500 1,526
Bonds (Shell Point/Alliance Obligated Group, Shell Point
Village Project), Series 1999A, 5.25% 2005
Lee County, Solid Waste System Ref. Rev. Bonds, Series 2001,
AMT, MBIA Insured:
5.25% 2009 1,500 1,579
5.25% 2010 2,000 2,097
Meadow Pointe II, Community Dev. Dist. (Pasco County), 110 110
Capital Improvement Rev. Bonds, Series 1998A, 5.25% 2003
Hawaii - 0.51%
Cert. of Part. (Kapolei State Office Building), 1998 1,000 1,058
Series A, AMBAC Insured, 5.00% 2005
Housing and Community Dev. Corp., Single Family Mortgage 1,000 1,071
Purchase Rev. Bonds, Series 2000A, AMT, 5.90% 2008
Idaho - 0.89%
Housing and Fin. Association, AMT:
Single Family Mortgage Bonds:
1998 Series C-2, 5.25% 2011 420 430
1998 Series E-3, 5.125% 2011 585 596
1998 Series H, 4.65% 2012 1,115 1,141
1998 Series I-2, 4.70% 2012 555 566
Single Family Programs Disclosure Report, 1978 Series A, 1,000 988
5.40% 2021
Illinois - 6.04%
G.O. Bonds, Series of April 1998, FSA Insured, 5.50% 2009 4,000 4,332
Health Facs. Auth., Rev. Bonds:
Advocate Health Care Network:
Series 1998A:
5.00% 2006 (Escrowed to Maturity) 980 1,049
5.00% 2006 750 782
Series 2000:
5.25% 2007 1,000 1,054
5.30% 2008 2,000 2,110
Centegra Health System, Series 1998, 5.50% 2007 2,480 2,583
Highland Park Hospital Project, Series 1997A, FGIC Insured, 1,490 1,618
5.50% 2005
OSF Healthcare System, Series 1999:
5.25% 2005 855 894
5.375% 2006 900 944
5.50% 2008 1,000 1,056
Victory Health Services, Series 1997A, 5.25% 2004 1,755 1,823
Health Facs. Auth., Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997A:
5.50% 2004 1,250 1,324
5.10% 2005 1,815 1,904
Northwestern Medical Faculty Foundation, Inc., Series 1998, 1,810 1,942
MBIA Insured, 5.25% 2006
Housing Dev. Auth., Multi-family Housing Bonds, 1992 1,165 1,188
Series A, 6.55% 2003
City of Chicago, Chicago O'Hare International Airport, 1,000 557
Special Facs. Rev. Ref. Bonds (United Air Lines, Inc.
Project), Series 1999B, AMT, 5.20% 2011
Indiana - 5.44%
Health Fac. Fncg. Auth., Hospital Rev. Bonds:
Charity Obligated Group:
Series 1997D, 5.00% 2026 (Preref. 2007) 1,500 1,566
Series 1999D, 5.50% 2008 1,000 1,078
Clarian Health Partners, Inc., Series 1996A, MBIA Insured, 1,000 1,062
5.25% 2008
The Methodist Hospitals, Inc., Series 2001:
5.25% 2009 1,000 1,042
5.25% 2010 1,445 1,498
5.25% 2011 1,525 1,573
Housing Fin. Auth., Multi-family Housing Rev. Bonds 1,400 1,420
(Indiana Affordable Housing, Inc.), Series 1999A,
5.40% 2009
State Revolving Fund Program Bonds, Series 2001A:
5.25% 2009 1,825 1,953
5.50% 2011 1,500 1,636
Transportation Fin. Auth., Toll Road Lease Rev. Ref. Bonds, 4,970 5,234
Series 1996, AMBAC Insured 5.25% 2010
Boone County Hospital Association, Lease Rev. Bonds, 1,200 1,251
Series 2001, FGIC Insured, 5.00% 2009
The Trustees of Purdue University, Cert. of Part.,
Series 2001A:
5.00% 2009 1,000 1,055
5.00% 2010 1,135 1,193
Hospital Auth. of St. Joseph County, Health System Bonds 1,010 1,092
(Memorial Health System), Series 1998A, MBIA Insured,
5.50% 2008
Iowa - 1.99%
Fin. Auth., Hospital Facs. Rev. Bonds:
Iowa Health System, Series 1998A, MBIA Insured, 5.25% 2007 1,895 2,023
Mercy Medical Center Project, Series 1999, FSA Insured, 1,000 1,067
5.30% 2009
Tobacco Settlement Auth., Asset-Backed Bonds, Series 2001B, 5,000 5,182
5.50% 2011
Kentucky - 1.86%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare, Inc.), 3,000 3,131
Series 2000A, MBIA Insured, 6.125% 2010
Hospital System Ref. and Improvement Rev. Bonds
(Appalachian Regional Healthcare, Inc. Project),
Series 1997:
5.20% 2004 1,000 966
5.40% 2006 1,500 1,405
5.50% 2007 465 431
City of Ashland, Pollution Control Ref. Rev. Bonds 1,750 1,820
(Ashland Inc. Project), Series 1999, 5.70% 2009
Louisiana - 3.25%
Public Facs. Auth., Hospital Rev. and Ref. Bonds (Franciscan 4,500 4,857
Missionaries of Our Lady Health System Project), Series
1998A, FSA Insured, 5.50% 2006
Jefferson Parish Hospital Service Dist. No. 2, Parish of 1,000 1,058
Jefferson, Hospital Rev. Bonds, Series 1998, FSA Insured,
5.00% 2005
Plaquemines Port, Harbor and Terminal Dist., Marine Terminal
Facs. Rev. Ref. Bonds (Electro-Coal Transfer Corp.
Project):
Series 1985A, 5.00% 2007 1,525 1,540
Series 1985C, 5.00% 2007 3,000 3,030
Series 1985D, 5.00% 2007 1,000 1,010
Parish of St. Charles, Pollution Control Rev. Ref. Bonds 2,000 2,039
(Entergy Louisiana, Inc. Project), Series 1999-C,
5.35% 2029 (Put 2003)
Maine - 1.32%
Educational Loan Marketing Corp., Senior Student Loan Rev.
Bonds, Series 1994A-4, AMT:
5.95% 2003 1,000 1,052
6.05% 2004 1,500 1,589
Housing Auth., Mortgage Purchase Bonds:
1994 Series E, 6.30% 2002 455 459
2001 Series E-1 (Non-AMT), 4.125% 2010 1,000 982
Student Loan Rev. Ref. Bonds, Series 1992A-1, AMT:
6.20% 2003 515 524
6.30% 2004 880 895
Maryland - 0.37%
G.O. Bonds, State and Local Facs. Loan of 2000, Series F, 1,000 1,101
5.50% 2008
Community Dev. Administration, Dept. of Housing and Community 450 454
Dev., Single Family Program Bonds, 1994 First Series,
5.70% 2017
Massachusetts - 1.93%
Educational Fncg. Auth., Education Loan Rev. and Ref. Bonds, 2,335 2,514
Issue G, Series 2000A, AMT, MBIA Insured, 5.55% 2008
Industrial Fin. Agcy. Resource Recovery Rev. Ref. Bonds 1,550 1,349
(Ogden Haverhill Project), Series 1998A, AMT, 5.15% 2007
Municipal Wholesale Electric Co., Power Supply Project Rev. 2,000 2,089
Bonds, Project No.6 Issue, Series A, 5.00% 2011
Port Auth. Special Facs. Rev. Bonds (United Air Lines, Inc. 3,000 2,076
Project), Series 1999A, AMT, 5.75% 2029 (Put 2007)
Michigan - 7.58%
Building Auth., 2001 Rev. Bonds, Series II (Facs. Program), 2,000 2,147
5.25% 2011
Hospital Fin. Auth.:
Hospital Rev. Bonds (Henry Ford Health System), Series 1,000 1,063
1999A, 5.50% 2008
Hospital Rev. and Ref. Bonds:
The Detroit Medical Center Obligated Group, Series 1993B, 1,000 1,053
AMBAC Insured, 5.00% 2006
MidMichigan Obligated Group, Series 1997A, FSA Insured, 2,775 2,999
5.50% 2007
Sparrow Obligated Group, Series 2001, 5.25% 2009 1,000 1,034
Hospital Rev. Ref. Bonds:
Hackley Hospital Obligated Group, Series 1998A, 4.90% 2007 1,140 1,133
Henry Ford Hospital, Series 1984A, AMBAC Insured, 1,250 1,410
6.00% 2011
Genesys Health System Obligated Group, Series 1995A, 1,375 1,490
7.20% 2003 (Escrowed to Maturity)
Pontiac Osteopathic, Series 1994A, 5.375% 2006 3,695 3,662
Sinai Hospital of Greater Detroit, Series 1995, 6.00% 2008 1,000 1,002
Variable Rate Rev. Bonds (Ascension Health Credit Group):
Series 1999B-3, 5.30% 2033 (Put 2006) 5,000 5,252
Series 1999B-4, 5.375% 2033 (Put 2007) 2,000 2,098
Housing Dev. Auth., Rental Housing Rev. Bonds, 1992 1,200 1,244
Series A, AMBAC Insured, 6.40% 2005
City of Detroit, G.O. Ref. Bonds (Unlimited Tax):
Series 1995A, 6.25% 2004 1,000 1,080
Series 1995B, 6.75% 2003 2,000 2,109
City of Flint Hospital Building Auth., Rev. Ref. Bonds 680 689
(Hurley Medical Center), Series 1998A, 5.00% 2003
Kent Hospital Fin. Auth. Rev. Bonds (Spectrum Health), 2,020 2,116
Series 2001A, 5.25% 2010
Minnesota - 0.75%
Housing Fin. Agcy., Single Family Mortgage Bonds, 2000 1,475 1,501
Series H, AMT, 4.25% 2006
Minneapolis-St. Paul Metropolitan Airports Commission, 1,500 1,602
AMT, AMBAC Insured, 5.50% 2008
Nevada - 0.97%
Highway Improvement Rev. (Motor Vehicle Fuel Tax) Bonds, 2,000 2,126
Series December 1, 2000A, 5.00% 2009
Housing Division, Single Family Mortgage Bonds, 795 820
1998 Series B-1, 5.20% 2011
City of Henderson, Health Fac. Rev. Bonds (Catholic 1,050 1,112
Healthcare West), 1998 Series A, 6.20% 2009
New Jersey - 0.64%
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds (Fellowship
Village Project), Series 1998A:
5.00% 2006 1,275 1,284
5.05% 2007 1,375 1,381
New Mexico - 1.46%
Supplemental Severance Tax Bonds, Series 2002A:
5.00% 2009 3,500 3,666
5.00% 2010 2,000 2,068
Educational Assistance Foundation, Student Loan Rev. Bonds, 340 353
Subordinate 1992 Series One-B, AMT, 6.85% 2005
New York - 4.78%
Dormitory Auth.:
Center for Nursing & Rehabilitation, Inc., FHA-Insured 560 578
Mortgage Nursing Home Rev. Bonds, Series 1997, 4.75% 2007
Mental Health Services Facs. Improvement Rev. Bonds,
Series 1997B:
6.00% 2007 995 1,098
6.00% 2007 (Escrowed to Maturity) 5 6
Secured Hospital Rev. Bonds:
Saint Agnes Hospital, Series 1998A, 4.80% 2006 1,000 1,047
Wyckoff Heights Medical Center, Series 1998H, 5.125% 2008 1,000 1,060
Housing Fin. Agcy., Health Facs. Rev. Bonds (New York City), 5,450 5,995
1996 Series A Ref., 6.00% 2006
Castle Rest Residential Health Care Fac., FHA-Insured 1,090 1,112
Mortgage Rev. Bonds, Series 1997A, 4.875% 2007
City of New York, G.O. Bonds:
Fiscal 1997 Series L, MBIA Insured, 5.625% 2007 1,000 1,084
Fiscal 2001 Series B, MBIA Insured:
4.80% 2008 2,000 2,074
4.90% 2009 1,000 1,032
5.50% 2010 1,000 1,067
Fiscal 2001 Series D, 5.50% 2009 1,000 1,070
Fiscal 2001 Series F, 5.00% 2010 1,000 1,032
Cert. of Part., City University of New York (John Jay 1,500 1,664
College of Criminal Justice Project Ref.), 6.00% 2006
North Carolina - 3.92%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Ref. Series 1993B:
6.00% 2005 1,330 1,381
6.125% 2009 1,750 1,871
Ref. Series 1993C, 5.50% 2007 3,550 3,703
Municipal Power Agcy. Number 1, Catawba Electric Rev.
Bonds, Series 1992:
5.90% 2003 1,000 1,031
6.00% 2004 3,525 3,678
6.00% 2005 1,250 1,298
MBIA Insured, 6.00% 2010 3,000 3,349
Ohio - 0.52%
The Student Loan Funding Corp., Cincinnati, Student Loan 1,000 1,004
Rev. Bonds, Series 1988B-3, AMT, AMBAC Insured,
5.125% 2005
County of Knox, Hospital Facs. Ref. Rev. Bonds (Knox 1,155 1,182
Community Hospital), Series 1998, Asset Guaranty Insured,
4.70% 2008
Oklahoma - 0.20%
Trustees of the Tulsa Municipal Airport Trust, Rev. Bonds, 1,000 853
Ref. Series 2001B, AMT, 5.65% 2035 (Put 2008)
Oregon - 0.51%
Salem-Keizer School Dist. No. 24J, Marion and Polk Counties, 2,000 2,132
G.O. Bonds, Series 1999, 5.25% 2010
Pennsylvania - 2.42%
Hospitals and Higher Education Facs. Auth. of Philadelphia,
Health System Rev. Bonds (Jefferson Health System),
Series 1997A:
5.50% 2006 2,045 2,162
5.50% 2008 1,000 1,053
Philadelphia Auth. for Industrial Dev., Airport Rev. Bonds 3,410 3,580
(Philadelphia Airport System Project), Series 1998A, AMT,
FGIC Insured, 5.25% 2009
Scranton-Lackawanna Health and Welfare Auth. Hospital Rev. 1,250 1,333
Ref. Bonds (The Community Medical Center Project),
MBIA Insured, 5.25% 2005
Westmoreland County Industrial Dev. Auth., Variable Rate 2,000 1,970
Rev. Bonds (National Waste and Energy Corp., Valley
Landfill Expansion Project), Series 1993, AMT, 5.10% 2018
(Put 2009)
Puerto Rico - 1.21%
Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, 4,855 5,036
Series 2000, 5.75% 2020
Rhode Island - 0.32%
Student Loan Auth., Student Loan Rev. Ref. Bonds, Series 1,300 1,329
1992B, AMT, 6.90% 2003
South Carolina - 1.25%
Housing Fin. and Dev. Auth. Mortgage Rev. Bonds, Series 1,450 1,563
2000 A-2, AMT, FSA Insured, 5.875% 2009
Georgetown County, Pollution Control Rev. Ref. Bonds 2,500 2,566
(International Paper Company Project), 1992 Series A,
6.25% 2005
Piedmont Municipal Power Agcy., Electric Rev. Bonds, 1,000 1,076
1993 Ref. Series, MBIA Insured, 5.50% 2011
South Dakota - 0.90%
Housing Dev. Auth., Homeownership Mortgage Bonds:
1996 Series A:
5.20% 2003 1,155 1,166
5.50% 2010 235 238
2000 Series H, 5.00% 2009 1,300 1,345
2001 Series C, 4.55% 2010 1,000 1,000
Tennessee - 0.98%
Memphis-Shelby County Airport Auth., Special Facs. Rev. 3,000 3,019
Ref. Bonds (Federal Express Corp.), Series 2001,
5.00% 2009
Metropolitan Government of Nashville and Davidson County, 1,000 1,059
G.O. Multi-Purpose Improvement Bonds, Series 1997A,
5.125% 2010
Texas - 14.33%
College Student Loan Bonds, Series 2000, AMT, 5.50% 2010 1,000 1,064
City of Austin, Public Improvement Bonds:
Series 1999, 5.75% 2011 1,500 1,636
Series 2001, 5.00% 2010 2,000 2,109
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev.
Bonds (Buckner Retirement Services, Inc. Obligated Group
Project), Series 1998:
5.00% 2005 1,330 1,369
5.00% 2007 1,470 1,500
Bexar County, Tax-Exempt Venue Project Rev. Bonds, 2,000 2,171
Series 2000, MBIA Insured, 5.50% 2009
Brazos River Auth., AMT:
Collateralized Pollution Control Rev. Ref. Bonds (Texas
Utilities Electric Co. Project):
Series 1994B, 5.40% 2029 (Put 2006) 1,000 1,011
Series 1995B, 5.05% 2030 (Put 2006) 3,000 3,006
Pollution Control Rev. Ref. Bonds (TXU Electric Company 1,000 995
Project), Series 2001C, 5.75% 2036 (Put 2011)
Cypress-Fairbanks Independent School Dist., Unlimited Tax 2,000 2,133
Ref. and Schoolhouse Bonds, Series 2001, 5.25% 2011
City of Dallas (Dallas, Denton, Collin and Rockwall 1,800 1,869
Counties), Waterworks and Sewer System Rev. Ref. Bonds,
Series 1998, FSA Insured, 5.00% 2011
City of Fort Worth (Tarrant and Denton Counties), General 1,000 1,052
Purpose Ref. Bonds, Series 2002, 5.00% 2010
Fort Worth Independent School Dist. (Tarrant County), 3,560 3,730
School Building Unlimited Tax Bonds, Series 2001A,
5.00% 2011
Fort Worth International Airport Fac. Improvement Corp., 2,000 1,793
American Airlines, Inc., Rev. Ref. Bonds, Series 2000C,
AMT, American Airlines Insured, 6.15% 2029 (Put 2007)
Harris County Health Facs. Dev. Corp.:
Hospital Rev. Bonds:
Memorial Hermann Hospital System Project, Series 1998, 1,000 1,061
FSA Insured, 5.25% 2008
Memorial Hospital System Project, Series 1997A,
MBIA Insured:
6.00% 2009 3,215 3,544
6.00% 2010 1,500 1,654
Hospital Rev. Ref. Bonds, Children's Hospital Project, 1,000 1,090
Series 1995, MBIA Insured, 6.00% 2004 (Escrowed to Maturity)
Rev. Bonds (St. Luke's Episcopal Hospital), Series 2001A, 1,000 1,055
5.50% 2011
City of Houston, Airport System, Subordinate Lien Rev. Bonds, 2,500 2,608
Series 1998B, AMT, FGIC Insured, 5.25% 2009
Jefferson County, Health Facs. Dev. Corp., Baptist Hospitals 1,000 998
of Southeast Texas, FHA-Insured Mortgage Rev. Bonds,
Series 2001, AMBAC Insured, 4.50% 2010
Plano Independent School Dist. (Collin County, Texas), 1,000 1,048
Unlimited Tax School Building and Ref. Bonds, Series 2001,
5.00% 2011
Sabine River Auth., Pollution Control Rev. Ref. Bonds 2,000 1,984
(TXU Electric Company Project), Series 2001C, 5.50% 2022
(Put 2011)
City of San Antonio:
General Improvement and Ref. Bonds, Series 2001, 5.00% 2010 2,000 2,100
Tax-Exempt Obligations, 5.00% 2009 2,000 2,093
Electric and Gas Systems Rev. Ref. Bonds:
Series 1997, 5.30% 2011 3,500 3,667
Series 1998B, 5.125% 2009 2,455 2,597
San Antonio Independent School Dist., Unlimited Tax School 1,000 992
Building Bonds, Series 2001A, 4.25% 2011
Socorro Independent School Dist. (El Paso County), Unlimited 1,255 1,326
Tax School Building Ref. Bonds, Series 2001, 5.00% 2009
Tarrant County, Health Facs. Dev. Corp., Health Resources 1,000 1,054
Systems Rev. Bonds, Series 1997A, MBIA Insured, 5.50% 2007
Board of Regents of the Texas A&M University System, Rev. 2,000 2,105
Fncg. System Bonds, 5.10% 2010
Board of Regents of The University of Texas System, Rev.
Fncg. System Bonds:
Series 1996B, 5.00% 2011 2,000 2,081
Series 2001B, 5.00% 2011 1,150 1,209
Utah - 0.55%
Housing Fin. Agcy. (Federally Insured or Guaranteed
Mortgage Loans):
Single Family Mortgage Bonds, AMT:
1998 Issue D-2, 5.25% 2012 285 291
1998 Issue E-1, 5.25% 2012 305 312
1998 Issue F-2, 4.25% 2008 1,260 1,267
Single Family Mortgage Purchase Ref. Bonds, Series 1996, 395 417
5.45% 2004
Vermont - 0.63%
Educational and Health Buildings Fncg. Agcy., Hospital Rev. 2,500 2,619
Bonds (Medical Center Hospital of Vermont Project),
Series 1993, FGIC Insured, 5.75% 2007
Virginia - 1.05%
Housing Dev. Auth., AMT:
Commonwealth Mortgage Bonds, 2000 Series A-1, 5.55% 2008 1,175 1,257
Rental Housing Bonds, 2000 Series D, 5.50% 2008 1,070 1,143
Industrial Dev. Auth. of the City of Norfolk, Hospital Rev. 1,000 1,061
Bonds (Daughters of Charity National Health System DePaul
Medical Center), Series 1992A, 6.50% 2007 (Escrowed to
Maturity)
Pocahontas Parkway Association, Route 895 Connector Toll 1,000 905
Road Rev. Bonds, Senior Current Interest Bonds, Series
1998A, 5.25% 2007
Virgin Islands - 1.18%
Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund 4,765 4,929
Loan Notes), Series 1998A, 5.20% 2010
Washington - 5.37%
Various Purpose G.O. Bonds, Series 2000B, 6.00% 2010 1,130 1,261
Health Care Facs. Auth., Weekly Rate Demand Rev. Bonds 1,000 1,100
(Virginia Mason Medical Center), 1997 Series A, MBIA
Insured, 6.00% 2006
Catholic Health Initiatives, Series 1997A, MBIA Insured, 1,000 1,043
5.10% 2010
Public Power Supply System, Nuclear Project No. 2 Ref.
Rev. Bonds:
Series 1997B, 5.50% 2006 1,000 1,077
Series 1998A, 5.00% 2005 1,000 1,054
King County, Limited Tax G.O. Bonds:
1991 Series A, 5.00% 2009 2,500 2,603
Baseball Stadium, 1997 Series D, 5.60% 2009 3,710 4,039
Port of Seattle, Rev. Bonds, Series 2001B, FGIC
Insured, AMT:
5.50% 2009 1,605 1,712
5.50% 2010 3,000 3,193
Snohomish County, Limited Tax G.O. Bonds, 2001, 5.00% 2010 5,015 5,284
Wisconsin - 2.18%
Health and Educational Facs. Auth.:
Rev. Bonds:
Froedtert & Community Health Obligated Group, 1,935 2,032
Series 2001, 5.65% 2009
The Monroe Clinic, Inc., Series 1999, 4.60% 2008 1,010 1,004
Var. Rate Hospital Rev. Bonds (Charity Obligated Group, 3,395 3,621
Daughters of Charity National Health System), Series
1997D, 4.90% 2015 (Preref. 2005/Put 2005)
City of Milwaukee, G.O. Corporate Purpose Bonds, 2,200 2,403
Series R, 5.50% 2010
394,646
Short-Term Securities - 4.03%
Gulf Coast Waste Disposal Auth., Texas, Pollution Control 1,100 1,100
Rev. Ref. Bonds (Amoco Oil Company Project), Series 1992,
1.40% 2017 /2/
City of Houston, Texas, Tax and Rev. Anticipation Notes, 1,500 1,513
Series 2001, 3.50% 6/28/2002
State of Kentucky, Asset/Liability Commission, General 1,000 1,010
Fund Tax and Rev. Anticipation Notes, 2001 Series A,
4.00% 6/26/2002
State of Missouri, Health and Educational Facs. Auth., 500 500
Health Facs. Adjustable Demand Rev. Bonds (Barnes
Hospital Project), Series 1985B, 1.30% 2015 /2/
State of New Mexico, 01-02 Tax and Rev. Anticipation Notes, 2,000 2,021
Series 2001, 4.00% 6/28/2002
City of New York, G.O. Bonds, Fiscal 1994 Series B, 2,500 2,500
Subseries B-2, 1.40% 2020 /2/
State of Texas, Tax and Rev. Anticipation Notes, 3,500 3,547
Series 2001A, 3.75% 8/29/2002
City of Valdez, Alaska, Marine Terminal Ref. Rev.
Bonds: /2/
ExxonMobil Project, Series 2001, 1.40% 2031 1,200 1,200
Exxon Pipeline Company Project, 1993 Series A, 1.40% 2033 2,400 2,400
State of Wyoming, General Fund Tax and Rev. Anticipation 1,000 1,008
Notes, Series 2001A, 3.50% 6/27/2002
16,799
TOTAL INVESTMENT SECURITIES (cost: $405,553,000) 411,445
Excess of cash and receivables over payables 5,113
NET ASSETS $416,558
/1/ Purchased in a private placement transaction;
resale may be limited to qualified institutional
buyers; resale to the public may require registration.
/2/ Coupon rate may change periodically;
the date of the next scheduled coupon rate change is
considered to be the maturity date.
See Notes to Financial Statements.
Agcy. - Agency
AMT - Alternative Minimum Tax
Auth. - Authority
Cert. of Part. - Certificates of Participation
Dept. - Department
Dev. - Development
Dist. - District
Econ. - Economic
Fac. - Facility
Facs. - Facilities
Fin. - Finance
Fncg. - Financing
G.O. - General Obligation
Preref. - Prerefunded
Ref. - Refunding
Rev. - Revenue
[Enlarge/Download Table]
Limited Term Tax-Exempt Bond Fund of America
Financial statements
Statement of assets and liabilities Unaudited
at January 31, 2002 (dollars in thousands)
Assets:
Investment securities at market
(cost: $405,553) $411,445
Receivables for -
Sales of investments $1,267
Sales of fund's shares 3,836
Interest 5,397 10,500
421,945
Liabilities:
Payables for -
Bank overdraft 350
Purchases of investments 2,958
Repurchases of fund's shares 1,389
Dividends on fund's shares 437
Management services 106
Other expenses 147 5,387
Net assets at January 31, 2002 $416,558
Shares of beneficial interest issued and outstanding -
unlimited shares authorized
Class A shares:
Net assets $387,194
Shares outstanding 25,817,172
Net asset value per share $15.00
Class B shares:
Net assets $6,939
Shares outstanding 462,724
Net asset value per share $15.00
Class C shares:
Net assets $16,089
Shares outstanding 1,072,771
Net asset value per share $15.00
Class F shares:
Net assets $6,336
Shares outstanding 422,465
Net asset value per share $15.00
See Notes to Financial Statements.
Statement of operations Unaudited
for the six months ended January 31, 2002 (dollars in thousands)
Investment income:
Income:
Interest $8,508
Expenses:
Management services fee $587
Distribution expenses - Class A 529
Distribution expenses - Class B 22
Distribution expenses - Class C 45
Distribution expenses - Class F 4
Transfer agent fee - Class A 31
Transfer agent fee - Class B -
Administrative services fees - Class C 7
Administrative services fees - Class F 3
Reports to shareholders 37
Registration statement and prospectus 74
Postage, stationery and supplies 8
Trustees' fees 10
Auditing and legal fees 41
Custodian fee 4
Other expenses 1 1,403
Net investment income 7,105
Realized gain and unrealized
depreciation on investments:
Net realized gain 343
Net unrealized depreciation on investments (2,912)
Net realized gain and
unrealized depreciation on investments (2,569)
Net increase in net assets resulting
from operations $4,536
See Notes to Financial Statements.
Statement of changes in net assets (dollars in thousands)
Six months Year
ended ended
January 31, July 31,
2002 /1/ 2001
Operations:
Net investment income $7,105 $11,327
Net realized gain on investments 343 396
Net unrealized (depreciation) appreciation
on investments (2,912) 11,802
Net increase in net assets
resulting from operations 4,536 23,525
Dividends paid to shareholders:
Dividends from net investment income:
Class A (6,817) (11,306)
Class B (69) (46)
Class C (132) (17)
Class F (57) (5)
Total dividends (7,075) (11,374)
Capital share transactions:
Proceeds from shares sold 164,078 141,223
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 4,932 8,134
Cost of shares repurchased (63,742) (106,055)
Net increase in net assets resulting
from capital share transactions 105,268 43,302
Total increase in net assets 102,729 55,453
Net assets:
Beginning of period 313,829 258,376
End of period (including
undistributed net investment income:
$183 and $153, respectively) $416,558 $313,829
/1/ Unaudited.
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - Limited Term Tax-Exempt Bond Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks current income exempt from
federal income taxes, consistent with preservation of capital, through
investments in fixed-income securities with effective maturities between three
and 10 years.
The fund offers four classes of shares as described below:
Class A shares are sold with an initial sales charge of up to 3.75%.
Class B shares are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares
automatically convert to Class A shares after eight years.
Class C shares are sold without an initial sales charge but are subject to a
CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years.
Class F shares, which are sold exclusively through fee-based programs, are sold
without an initial sales charge or CDSC.
Holders of all classes of shares have equal pro rata rights to assets,
dividends, liquidation and other rights. Each class has identical voting
rights, except for exclusive rights to vote on matters affecting only its
class. Each class of shares may have different distribution, administrative
services and transfer agent fees and expenses. Differences in class-specific
expenses will result in the payment of different per-share dividends by each
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States of America. These principles require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is
a summary of the significant accounting policies consistently followed by the
fund in the preparation of its financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Some securities may be
valued on the basis of effective maturity; that is the date at which the
security is expected to be called or refunded by the issuer or the date at
which the investor can put the security to the issuer for redemption.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. The ability of the issuers of the debt
securities held by the fund to meet their obligations may be affected by
economic developments in a specific industry, state or region. Securities and
other assets for which representative market quotations are not readily
available are valued at fair value as determined in good faith by a committee
appointed by authority of the fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or when-issued basis, the fund
will instruct the custodian to segregate liquid assets sufficient to meet its
payment obligations in these transactions. Interest income is recognized on an
accrual basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of the
security.
On August 1, 2001, the fund began amortizing discount daily over the expected
life of fixed-income securities to conform with a recent change in accounting
principles generally accepted in the United States of America for mutual funds.
Adopting this change did not impact the fund's net asset value but resulted in
changes to the classification of certain amounts between interest income and
realized and unrealized gain or loss in the Statement of Operations.
Therefore, the undistributed net investment income amount is primarily composed
of these adjustments which were based on the fixed-income securities held by
the fund on August 1, 2001. Because the fund determines its required
distributions under federal income tax laws, adoption of this principle will
not affect the amount of distributions paid to shareholders.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly. Distributions paid to shareholders are
recorded on the ex-dividend date.
CLASS ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily among the various
share classes based on their relative net asset values. Distribution expenses,
administrative services fees, certain transfer agent fees and other applicable
class-specific expenses are accrued daily and charged to the respective share
class.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are based on net investment
income and net realized gains determined on a tax basis and may differ from
such amounts for financial reporting purposes. In addition, the fiscal year in
which amounts are distributed may differ from the year in which the net
investment income is earned and the net gains are realized by the fund.
As of January 31, 2002, the cost of investment securities for book and federal
income tax reporting purposes was $405,553,000. Net unrealized appreciation on
investments aggregated $5,892,000; $9,117,000 related to appreciated securities
and $3,225,000 related to depreciated securities. There was no difference
between book and tax realized gains on securities transactions for the six
months ended January 31, 2002. The fund had available at July 31, 2001, a net
capital loss carryforward totaling $2,795,000 which may be used to offset
capital gains realized during subsequent years through 2009 and thereby relieve
the fund and its shareholders of any federal income tax liability with respect
to the capital gains that are so offset. The fund will not make distributions
from capital gains while a capital loss carryforward remains.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $587,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
("CRMC") with which officers and certain Trustees of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees accrued
daily, based on an annual rate of 0.30% of the first $60 million of daily net
assets and 0.21% of such assets in excess of $60 million. The agreement also
provides for monthly fees, accrued daily, of 3.00% of the fund's monthly gross
investment income. For the six months ended January 31, 2002, the management
services fee was equivalent to an annualized rate of 0.318% of average daily
net assets. Effective September 1, 2001, CRMC voluntarily reduced management
fees to 0.30% of the first $60 million of daily net assets and 0.15% of such
assets in excess of $60 million. The gross investment income portion of the
fee was unchanged.
The Investment Advisory and Service Agreement provides for a fee reduction to
the extent that annual operating expenses exceed 0.75% of the average daily net
assets of the fund. Expenses that are not subject to these limitations are
interest, taxes, brokerage commissions, transaction costs and extraordinary
expenses. There were no fee reductions for the six months ended January 31,
2002.
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution under which
it may finance activities primarily intended to sell fund shares, provided the
categories of expenses are approved in advance by the fund's Board of Trustees.
The plans provide for annual expenses, based on average daily net assets, of up
to 0.30% for Class A shares, 1.00% for Class B and Class C shares, and up to
0.50% for Class F shares.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares, for paying service fees to firms that have
entered into agreements with AFD for providing certain shareholder services.
The balance may be used for approved distribution expenses as follows:
CLASS A SHARES - Approved categories of expense include reimbursements to AFD
for commissions paid to dealers and wholesalers in respect of certain shares
sold without a sales charge. Those reimbursements are permitted for amounts
billed to the fund within the prior 15 months but only to the extent that the
overall 0.30% annual expense limit for Class A shares is not exceeded. For the
six months ended January 31, 2002, aggregate distribution expenses were limited
to $529,000, equivalent to an annualized rate of 0.30% of average daily net
assets attributable to Class A shares. As of January 31, 2002, unreimbursed
expenses which remain subject to reimbursement totaled $864,000.
CLASS B SHARES - In addition to service fees of 0.25%, approved categories of
expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to receive
such payments (as well as any contingent deferred sales charges payable in
respect of shares sold during the period) in order to finance the payment of
dealer commissions. For the six months ended January 31, 2002, aggregate
distribution expenses were $22,000, equivalent to an annualized rate of 1.00%
of average daily net assets attributable to Class B shares.
CLASS C SHARES - In addition to service fees of 0.25%, the Board of Trustees
has approved the payment of 0.75% per annum of average daily net assets
attributable to Class C shares to AFD to compensate firms selling Class C
shares of the fund. For the six months ended January 31, 2002, aggregate
distribution expenses were $45,000, equivalent to an annualized rate of 1.00%
of average daily net assets attributable to Class C shares.
CLASS F SHARES - The plan has an expense limit of 0.50%. However, the Board of
Trustees has presently approved expenses under the plan of 0.25% per annum of
average daily net assets attributable to Class F shares. For the six months
ended January 31, 2002, aggregate distribution expenses were $4,000, equivalent
to an annualized rate of 0.25% of average daily net assets attributable to
Class F shares.
As of January 31, 2002, aggregate distribution expenses payable to AFD for all
share classes were $105,000.
AFD received $163,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the fund's Class A shares for the six months
ended January 31, 2002. Such sales charges are not an expense of the fund and,
hence, are not reflected in the accompanying Statement of Operations.
TRANSFER AGENT FEE - A fee of $31,000 was incurred during the six months ended
January 31, 2002, pursuant to an agreement with American Funds Service Company
("AFS"), the transfer agent for the fund. As of January 31, 2002, aggregate
transfer agent fees payable to AFS for Class A and Class B shares were $4,000.
ADMINISTRATIVE SERVICES FEES - The fund has an administrative services
agreement with CRMC for Class C and Class F shares. Pursuant to this agreement,
CRMC provides transfer agency and other related shareholder services. CRMC may
contract with third parties to perform these services. Under the agreement,
the fund pays CRMC a fee equal to 0.15% per annum of average daily net assets
of Class C and Class F shares, plus amounts payable for certain transfer agency
services according to a specified schedule. For the six months ended January
31, 2002, total fees under the agreement were $10,000. As of January 31, 2002,
aggregate administrative services fees payable to CRMC for Class C and Class F
shares were $3,000.
DEFERRED TRUSTEES' FEES - Since the adoption of the deferred compensation plan
in 1994, Trustees who are unaffiliated with CRMC may elect to defer the receipt
of part or all of their compensation. Deferred compensation amounts, which
remain in the fund, are treated as if invested in shares of the fund or other
American Funds. These amounts represent general, unsecured liabilities of the
fund and vary according to the total returns of the selected funds. As of
January 31, 2002, the cumulative amount of these liabilities was $34,000.
Trustees' fees on the Statement of Operations include the current fees (either
paid in cash or deferred) and the net increase or decrease in the value of
deferred compensation.
AFFILIATED OFFICERS AND TRUSTEES - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers and certain Trustees of the fund are or may be considered to be
affiliated with CRMC, AFS and AFD. No such persons received any remuneration
directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $117,207,000 and $18,368,000, respectively, during
the six months ended January 31, 2002.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
For the six months ended January 31, 2002, the custodian fee of $4,000 includes
$2,000 that was paid by these credits rather than in cash.
As of January 31, 2002, net assets consisted of the following:
[Download Table]
(dollars in thousands)
Capital paid in on shares of beneficial interest $412,935
Undistributed net investment income 183
Accumulated net realized loss (2,452)
Net unrealized appreciation 5,892
Net assets $416,558
Capital share transactions in the fund were as follows:
[Download Table]
Six Months Six Months
Ended Ended
January 31, January 31,
2002 2002
Amount (000) Shares
Class A shares:
Sold $ 139,173 9,211,525
Reinvestment of dividends and distributions 4,729 313,492
Repurchased (60,114) (3,990,295)
Net increase in Class A 83,788 5,534,722
Class B shares:
Sold 4,824 319,916
Reinvestment of dividends and distributions 56 3,709
Repurchased (396) (26,305)
Net increase in Class B 4,484 297,320
Class C shares: /1/
Sold 13,105 868,666
Reinvestment of dividends and distributions 99 6,586
Repurchased (1,024) (68,404)
Net increase in Class C 12,180 806,848
Class F shares: /1/
Sold 6,976 463,651
Reinvestment of dividends and distributions 48 3,181
Repurchased (2,208) (146,541)
Net increase in Class F 4,816 320,291
Total net increase in fund $ 105,268 6,959,181
Year Ended Year Ended
July 31, July 31,
2001 2001
Amount (000) Shares
Class A shares:
Sold $ 132,019 8,952,431
Reinvestment of dividends and distributions 8,078 547,212
Repurchased (104,121) (7,077,728)
Net increase in Class A 35,976 2,421,915
Class B shares:
Sold 3,709 251,676
Reinvestment of dividends and distributions 40 2,738
Repurchased (1,921) (130,017)
Net increase in Class B 1,828 124,397
Class C shares: /1/
Sold 3,959 265,097
Reinvestment of dividends and distributions 12 829
Repurchased - (3)
Net increase in Class C 3,971 265,923
Class F shares: /1/
Sold 1,536 102,759
Reinvestment of dividends and distributions 4 310
Repurchased (13) (895)
Net increase in Class F 1,527 102,174
Total net increase in fund $ 43,302 2,914,409
/1/ Class C and Class F shares were not
offered before March 15, 2001.
[Enlarge/Download Table]
Per-share data and ratios
Class A Class A Class A
Six months Year Year
ended ended ended
January 31, July 31, July 31,
2002/1/,/2/ 2001 2000
Net asset value, beginning of period $15.08 $14.43 $14.62
Income from investment operations:
Net investment income .30 /3/ .62 /3/ .73 /3/
Net (losses) gains on securities (both (.08)/3/ .65 /3/ (.30)/3/
realized and unrealized)
Total from investment operations .22 1.27 .43
Less distributions:
Dividends (from net investment income) (.30) (.62) (.62)
Net asset value, end of period $15.00 $15.08 $14.43
Total return /4/ 1.44% 8.99% 3.09%
Ratios/supplemental data:
Net assets, end of period (in millions) $387 $306 $258
Ratio of expenses to average net assets .73%/5/ .75%/6/ .75%/6/
Ratio of net income to average net assets 3.88%/5/ 4.18% 5.08%
Class A Class A Class A
Year Year Year
ended ended ended
July 31, July 31, July 31,
1999 1998 1997
Net asset value, beginning of period $14.85 $14.79 $14.36
Income from investment operations:
Net investment income .61 .66 .68
Net (losses) gains on securities (both (.23) .06 .43
realized and unrealized)
Total from investment operations .38 .72 1.11
Less distributions:
Dividends (from net investment income) (.61) (.66) (.68)
Net asset value, end of period $14.62 $14.85 $14.79
Total return /4/ 2.59% 4.94% 7.96%
Ratios/supplemental data:
Net assets, end of period (in millions) $283 $227 $203
Ratio of expenses to average net assets .75%/6/ .75%/6/ .75%/6/
Ratio of net income to average net assets 4.12% 4.40% 4.70%
Class B Class B Class B
Six months Year March 15,
ended ended to
January 31, July 31, July 31,
2002/1/,/2/ 2001 2000 /1/
Net asset value, beginning of period $15.08 $14.43 $14.27
Income from investment operations: /3/
Net investment income .23 .48 .24
Net (losses) gains on securities (both (.08) .69 .13
realized and unrealized)
Total from investment operations .15 1.17 .37
Less distributions:
Dividends (from net investment income) (.23) (.52) (.21)
Net asset value, end of period $15.00 $15.08 $14.43
Total return /4/ 1.01% 8.24% 2.59%
Ratios/supplemental data:
Net assets, end of period (in millions) $7 $2 $1
Ratio of expenses to average net assets 1.47%/5/ 1.59%/6/ .61% /6/
Ratio of net income to average net assets 3.05%/5/ 3.24% 1.84%
Class C Class C
Six months March 15,
ended to
January 31, July 31,
2002/1/,/2/ 2001 /1/
Net asset value, beginning of period $15.08 $14.92
Income from investment operations: /3/
Net investment income .22 .15
Net (losses) gains on securities (both (.08) .17
realized and unrealized)
Total from investment operations .14 .32
Less distributions:
Dividends (from net investment income) (.22) (.16)
Net asset value, end of period $15.00 $15.08
Total return /4/ .95% 2.14%
Ratios/supplemental data:
Net assets, end of period (in millions) $16 $4
Ratio of expenses to average net assets 1.60%/5/ .75%
Ratio of net income to average net assets 2.94%/5/ 1.05%
Class F Class F
Six months March 15,
ended to
January 31, July 31,
2002/1/,/2/ 2001 /1/
Net asset value, beginning of period $15.08 $14.92
Income from investment operations: /3/
Net investment income .27 .16
Net (losses) gains on securities (both (.08) .19
realized and unrealized)
Total from investment operations .19 .35
Less distributions:
Dividends (from net investment income) (.27) (.19)
Net asset value, end of period $15.00 $15.08
Total return /4/ 1.28% 2.34%
Ratios/supplemental data:
Net assets, end of period (in millions) $7 $2
Ratio of expenses to average net assets .92% /5/ .60%
Ratio of net income to average net assets 3.67%/5/ 1.18%
Supplemental data - all classes
Six months Year Year
ended ended ended
January 31, July 31, July 31,
2002/1/,/2/ 2001 2000
Portfolio turnover rate 5.28% 21.42% 34.38%
Supplemental data - all classes
Year Year Year
ended ended ended
July 31, July 31, July 31,
1999 1998 1997
Portfolio turnover rate 17.00% 34.07% 31.89%
/1/ Based on operations for the period shown and,
accordingly, not representative of a full year
(unless otherwise noted).
/2/ Unaudited.
/3/ Based on average shares outstanding.
/4/ Total returns exclude all sales charges,
including contingent deferred sales charges.
/5/ Annualized.
/6/ Had CRMC not waived management services fees,
the fund's expense ratio would have been
0.80%, 0.81%, 0.77%, 0.83%, and 0.83% for the
fiscal years ended 2001, 2000, 1999,
1998, and 1997, respectively, for
Class A and 1.60% and 0.71% for
the fiscal years ended 2001 and 2000,
respectively, for Class B.
[Enlarge/Download Table]
The Tax-Exempt Bond Fund of America, Inc.
Investment Portfolio, August 31, 2001
Principal Market
Amount Value
Fixed Income Securities - 93.73% (000) (000)
Alabama - 0.51%
Public School and College Auth., Capital Improvement 5,255 5,766
Pool Bonds, Series 2001-A, 5.625% 2015
Health Care Auth. of Lauderdale County and the 1,150 1,269
City of Florence, Coffee Health Group, Series
2000-A Bonds, MBIA Insured, 5.50% 2009
Jefferson County, Sewer Rev. Capital Improvement 2,865 2,862
Warrants, Series 1999A, FGIC Insured, 5.125% 2029
21st Century Auth., Tobacco Settlement Rev. Bonds, 1,500 1,548
Series 2000, 5.75% 2020
Alaska - 1.40%
Housing Fin. Corp., Collateralized Bonds 1,815 1,868
(Veterans Mortgage Program), Series 1992A-1, 6.75% 2032
Municipality of Anchorage:
1995 G.O. Ref. General Purpose Bonds, Series B, 2,895 3,374
FGIC Insured, 6.00% 2012
Municipal Light & Power, Senior Lien Ref. Electric 5,000 6,082
Rev. Bonds, Series 1996, MBIA Insured, 6.50% 2014
North Slope Borough, G.O. Bonds, Series 1997A, 10,935 8,292
MBIA Insured, 0% 2008
Northern Tobacco Securitization Corp., Tobacco
Settlement Asset-Backed Bonds, Series 2000:
5.60% 2010 1,000 1,078
5.70% 2011 4,890 5,268
5.80% 2012 4,785 5,153
5.375% 2021 500 506
Arizona - 0.39%
Health Facs. Auth., Rev. Bonds (Catholic Healthcare 3,655 3,843
West), Series 1999A, 6.125% 2009
State Transportation Board, Subordinated Highway 1,850 1,939
Rev. Bonds, Series 1992B, 6.50% 2008 (Preref. 2002)
Industrial Dev. Auth. of the County of Maricopa, 2,850 2,916
Health Fac. Rev. Bonds (Catholic Healthcare West
Project), 1998 Series A, 5.25% 2006
California - 5.86%
Educational Facs. Auth., Rev. Bonds, Stanford 3,000 3,120
University, Series N, 5.35% 2027
Housing Fin. Agcy., Single Family Mortgage
Bonds, 1997 Series C-4, Class I:
5.10% 2007 1,565 1,673
5.20% 2009 1,155 1,238
Public Works Board, Lease Rev. Bonds, California 1,315 1,480
Community Colleges, 1994 Series B (Various
Community College Projects), 7.00% 2007 (Preref. 2004)
Statewide Communities Dev. Auth., Apartment Dev. Rev. 4,000 4,081
Ref. Bonds (Irvine Apartment Communities, LP),
Series 1998A-3, 5.10% 2025 (Put 2010)
City of Antioch, Public Fncg. Auth., 1998 Reassessment 1,475 1,553
Rev. Bonds, Subordinated Series B, 5.85% 2015
Association of Bay Area Governments, Fin. Auth. For
Nonprofit Corps., Ref. Rev. Cert. of Part.:
(American Baptist Homes of the West Facs.
Project), Series 1997B:
5.50% 2007 1,210 1,183
6.20% 2027 1,545 1,408
(Episcopal Homes Foundation), Series 1998, 5.125% 2013 2,000 2,041
Bonita Canyon Public Facs. Fncg. Auth., Community Facs. 3,500 3,384
Dist. No. 98-1, Special Tax Bonds, Series 1998, 5.375% 2028
Central Valley Fncg. Auth., Cogeneration Project 1,000 1,085
Rev. Bonds (Carson Ice-Gen Project), Series 1993,
6.10% 2013 (Preref. 2003)
County of El Dorado, Community Facs. Dist. No. 1992-1 985 1,027
(El Dorado Hills Dev.), Series 1999 Special Tax
Bonds, 6.125% 2016
City of Folsom, Community Facs. Dist. No. 10, Special 2,000 2,185
Tax Bonds, Series 1999, 7.00% 2024
City of Fontana, Community Facs. Dist. No. 12 (Sierra 1,000 1,073
Lakes), Special Tax Bonds, Series 1999, 6.50% 2015
City of Irvine, Limited Obligation Improvement Bonds:
Assessment Dist. No. 94-13 (Oak Creek), Group One, 5.50% 2022 2,000 1,989
Assessment Dist. No. 94-13 (Oak Creek), Group Two, 6.00% 2022 1,250 1,282
Assessment Dist. No. 95-12, Group Three, 5.50% 2021 2,740 2,732
Assessment Dist. No. 97-17 (Northwood), Group One, 6.00% 2023 1,500 1,547
City of Long Beach:
Aquarium of the Pacific, Rev. Bonds (Aquarium of
the Pacific Project), 1995 Series A:
6.10% 2010 (Preref. 2005) 4,000 4,527
6.125% 2015 (Preref. 2005) 5,000 5,664
6.125% 2023 (Preref. 2005) 12,500 14,159
MBIA Insured, 6.125% 2023 (Preref. 2005) 2,000 2,265
Bond Fin. Auth., Lease Rev. Ref. Bonds (Aquarium of 2,150 2,399
the Pacific Project), Series 2001, AMBAC Insured, 5.50% 2015
City of Los Angeles:
Community Redev. Agcy., Central Business Dist. Redev. 2,000 2,008
Project, Tax Allocation Ref. Bonds, Series I, 5.00% 2001
Regional Airports Improvement Corp., Facs. Lease Ref.
Rev. Bonds (L.A. Intl. Airport):
Delta Air Lines, Inc., Issue of 1996, 6.35% 2025 2,500 2,561
United Air Lines, Inc., Issue of 1992, 6.875% 2012 2,000 2,053
County of Los Angeles:
Capital Asset Leasing Corp., Cert. of Part. (Marina
del Rey), 1993 Series A:
6.25% 2003 2,400 2,497
6.50% 2008 4,750 5,031
Los Angeles Community College Dist., G.O. Bonds, 2001 10,500 11,611
Election, Series A, 5.50% 2016
County of Orange, Aliso Viejo Special Tax Bonds of
Community Facs. Dist. No. 88-1, Series A of 1992:
7.15% 2006 (Preref. 2002) 2,000 2,130
7.35% 2018 (Preref. 2002) 2,000 2,133
Pleasanton Joint Powers Fncg. Auth., Reassessment Rev. 465 465
Bonds, 1993 Series A, 5.70% 2001
City of Roseville:
Highland Reserve North Community Facs. Dist. No. 1, 3,085 3,363
Special Tax Bonds, Series 1999, 6.00% 2011
North Central Roseville Community Facs. Dist.
No. 1, Special Tax Ref. Bonds, Series 1999:
5.30% 2007 2,865 3,034
5.80% 2017 3,500 3,567
Woodcreek West Community Facs. Dist. No. 1, 1,465 1,591
Special Tax Bonds, Series 1999, 6.50% 2015
Sacramento Cogeneration Auth., Cogeneration Project
Rev. Bonds (Procter & Gamble Project), 1995 Series:
6.00% 2003 2,200 2,299
6.375% 2010 500 541
6.375% 2010 (Preref. 2005) 500 576
County of Sacramento, Laguna Creek Ranch/Elliott 500 526
Ranch Community Facs. Dist. No. 1, Improvement Area
No. 2 Special Tax Ref. Bonds (Elliott Ranch), 6.30% 2021
County of San Bernardino Housing Auth., Multifamily 1,500 1,535
Housing Rev. Ref. Bonds (Equity Residential/Redlands
Lawn & Tennis Apartments), Issue 1999A, 5.20% 2029 (Put 2009)
County of San Diego, Reassessment Dist. No. 97-1 995 1,031
(4-S Ranch), Limited Obligation Improvement
Bonds, 6.25% 2012
San Marcos Public Facs. Auth., Ref. Rev. Bonds, 3,000 3,006
Series 1998, 5.80% 2027
San Marcos Unified School Dist., Community Facs. 3,150 3,112
Dist. No. 5 (Rancho Carrillo), Series 1999
Special Tax Bonds, 5.60% 2029
Community Facs. Dist. No. 99-1 (Talega) of the 1,195 1,273
Santa Margarita Water Dist., Series 1999
Special Tax Bonds, 6.10% 2014
South Tahoe Joint Powers Fncg. Auth., Subordinate
Bond Anticipation Notes (South Tahoe Redev.
Project Area No. 1):
Series 1999A, 7.30% 2007 7,000 7,364
Series 1999B, 7.30% 2007 1,905 2,004
The Regents of the University of California, 2,000 2,053
Various University of California Projects,
1993 Series A, 5.50% 2021
Washington Township Health Care Dist., Rev. 1,300 1,336
Bonds, Series 1999, 5.00% 2014
Colorado - 4.35%
Health Facs. Auth., Hospital Rev. Bonds (PorterCare 3,800 4,027
Adventist Health System Project), Series 2001, 6.50% 2031
Housing and Fin. Auth.:
Multi-family Housing Insured Mortgage Rev. Bonds:
1982 Series A, 9.00% 2025 1,515 1,519
1997 Series C-3, 5.65% 2015 1,300 1,300
Single Family Housing Program Senior and Subordinate Bonds:
1997 Series:
A-3, 7.00% 2016 1,270 1,359
B-3, 6.80% 2028 740 798
C-3, 6.75% 2017 840 915
1998 Series:
B-3, 6.55% 2025 4,580 4,958
D-3, 6.125% 2023 1,920 2,096
Arapahoe County, Capital Improvement Trust Fund
Highway Rev. Bonds (E-470 Project):
6.90% 2015 (Preref. 2005) 2,500 2,920
6.95% 2020 (Preref. 2005) 17,500 20,468
City and County of Denver, Airport System Rev.
Bonds, Series 1992A:
7.25% 2025 (Preref. 2002) 5,590 6,012
7.25% 2025 (Preref. 2002) 14,210 15,283
E-470 Public Highway Auth. Senior Rev. Bonds, 7,500 680
Series 2000B (Capital Appreciation Bonds), 0% 2034
Eagle County, Bachelor Gulch Metropolitan Dist., 3,400 3,582
G.O. Bonds, Series 1999, 6.70% 2019
EagleBend Affordable Housing Corp., Multi-family
Housing Project Rev. Ref. Bonds, Series 1997A:
6.40% 2017 1,000 1,001
6.45% 2021 2,175 2,168
EagleBend Dowd Affordable Housing Corp., Multi-family
Housing Project Rev. Bonds, Series 1998A:
6.35% 2014 1,065 1,073
6.63% 2039 2,000 1,966
Metropolitan Football Stadium Dist., Capital
Appreciation Sales Tax Rev. Bonds, MBIA Insured:
Series 1999A:
0% 2008 2,675 2,074
0% 2011 2,600 1,729
0% 2012 4,700 2,956
Series 1999B, 0% 2006 4,000 3,417
Northwest Parkway Public Highway Auth., Rev. 2,800 2,885
Bonds, Series 2001D, 7.125% 2041
Rampart Range Metropolitan Dist. No. 1 (City of 5,415 5,420
Lone Tree), Rev. Bonds (Rampart Range Metropolitan
Dist. No. 2 Project), Series 2001, 7.75% 2026
Vista Ridge Metropolitan Dist. (Weld County), 7,310 7,411
Limited Tax G.O. Bonds, Series 2001, 7.50% 2031
Connecticut - 0.85%
G.O. Bonds, 2001 Series B, 5.375% 2016 1,900 2,055
Dev. Auth., Pollution Control Rev. Ref. Bonds (The 5,025 5,161
Connecticut Light and Power Co. Project), Series
1993A, 5.85% 2028
Health and Educational Fac. Auth., Rev. Bonds, 1,800 1,856
University of Hartford Issue, Series D, 6.75% 2012
Mashantucket (Western) Pequot Tribe, Special Rev.
Bonds, 1996 Series A: (1)
6.25% 2002 (Escrowed to Maturity) 1,000 1,038
6.375% 2004 (Escrowed to Maturity) 1,985 2,185
6.50% 2005 (Escrowed to Maturity) 1,490 1,681
6.40% 2011 2,025 2,206
6.40% 2011 (Preref. 2007) 2,470 2,881
Delaware - 0.04%
Econ. Dev. Auth., First Mortgage Rev. Bonds (Peninsula 1,000 1,024
United Methodist Homes, Inc. Issue), Series 1997A,
6.00% 2009
District of Columbia - 0.98%
G.O. Bonds:
Series 1993A, AMBAC Insured, 5.875% 2005 2,125 2,332
(Escrowed to Maturity)
Series 1993 B-1, AMBAC Insured, 5.50% 2009 1,500 1,651
Convention Center Auth. (Washington D.C.), Senior 5,750 5,439
Lien Dedicated Tax Rev. Bonds, Series 1998,
AMBAC Insured, 4.75% 2028
Hospital Rev. Ref. Bonds:
Medlantic Healthcare Group, Inc. Issue, 1,030 1,068
Series 1992B, 6.50% 2002 (Escrowed to Maturity)
Washington Hospital Center Issue, Series 1992A, 1,170 1,225
7.00% 2005 (Preref. 2002)
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington
Hospital Center Projects):
Series 2001B, 6.625% 2031 (Put 2005) 4,000 4,191
Series 2001D, 6.875% 2031 (Put 2007) 5,000 5,336
Redev. Land Agcy., Sports Arena Special Tax Rev. 785 787
Bonds, Series 1996, 5.625% 2010
Florida - 4.51%
Arbor Greene Community Dev. Dist. (City of Tampa,
Hillsborough County), Special Assessment Rev. Bonds:
Series 1996, 7.60% 2018 915 981
Series 1998, 5.75% 2006 375 379
Series 2000, 6.50% 2007 805 825
Capital Region Community Dev. Dist. (Tallahassee), 1,000 1,021
Capital Improvement Rev. Bonds, Series 2001A-2,
6.85% 2031
Championsgate Community Dev. Dist., Capital 1,515 1,487
Improvement Rev. Bonds, Series 1998B, 5.70% 2005
The Crossings at Fleming Island Community Dev.
Dist. (Clay County), Special Assessment Bonds:
Series 1995, 8.25% 2016 (Preref. 2005) 1,020 1,201
Series 2000C, 7.10% 2030 7,000 7,418
Fishhawk Community Dev. Dist. (Hillsborough County), 3,000 3,068
Special Assessment Rev. Bonds, Series 2000, 6.65% 2007
Fleming Island Plantation Community Dev. Dist. 3,000 3,227
(Clay County), Series 2000B (Long Term), 7.375% 2031
The Groves Community Dev. Dist. (Pasco County), 1,170 1,192
Special Assessment Rev. Bonds, Series 2000B, 7.625% 2008
Harbor Bay Community Dev. Dist. (Hillsborough 1,500 1,508
County), Capital Improvement Rev. Bonds,
Series 2001B, 6.35% 2010
Harbour Lake Estates Community Dev. Dist. (Miramar), 3,500 3,538
Special Assessment Bonds, Series 2001, 6.40% 2006
Heritage Harbor Community Dev. Dist. Rev. 1,475 1,481
Bonds, Series B, 6.00% 2003
Heritage Palms Community Dev. Dist. (Fort Myers),
Capital Improvement Rev. Bonds:
Series 1998, 5.40% 2003 850 848
Series 1999, 6.25% 2004 3,470 3,513
Heritage Pines Community Dev. Dist. (Pasco County), 2,550 2,528
Capital Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Heritage Springs Community Dev. Dist. (Pasco County), 1,540 1,556
Capital Improvement Rev. Bonds, Series 1999B, 6.25% 2005
Lake Ashton Community Dev. Dist. (City of Lake Wales,
Polk County), Capital Improvement Rev. Bonds:
Series 2001A, 7.40% 2032 1,000 1,025
Series 2001B, 6.40% 2011 2,750 2,792
Lake Powell Residential Golf Community Dev. Dist. 3,720 3,788
(Bay County), Special Assessment Rev. Bonds,
Series 2000B, 7.00% 2010
Lakewood Ranch Community Dev. Dist. 5 (Manatee County), 1,250 1,246
Special Assessment Rev. Bonds, Series 2001B, 6.00% 2011
Lee County Industrial Dev. Auth., Healthcare Facs.
Rev. Bonds:
Series 1997A (Cypress Cove at Healthpark Florida,
Inc. Project):
5.80% 2006 1,005 1,019
6.25% 2017 5,550 5,092
Series 1999A (Shell Point/Alliance Obligated
Group, Shell Point Village Project):
5.25% 2006 1,150 1,163
5.50% 2010 1,500 1,495
5.75% 2012 1,360 1,365
5.75% 2013 1,840 1,839
5.75% 2015 1,575 1,549
5.50% 2021 1,550 1,395
5.50% 2029 2,000 1,757
Marshall Creek Community Dev. Dist. (St. Johns County),
Special Assessment Bonds:
Series 2000A, 7.65% 2032 4,000 4,219
Series 2000B, 6.75% 2007 2,080 2,146
Meadow Pointe II, Community Dev. Dist. (Pasco County),
Capital Improvement Rev. Bonds:
Series 1998A, 5.25% 2003 160 161
Series 1998B, 5.50% 2005 845 849
Meadow Pointe III, Community Dev. Dist. (Pasco County), 1,480 1,491
Capital Improvement Rev. Bonds, Series 2001-1,
5.90% 2006
Miami-Dade County Health Facs. Auth., Hospital Rev. 5,495 6,020
Ref. Bonds, Series 2001A (Miami Children's Hospital
Project), AMBAC Insured, 5.625% 2016
Mid-Bay Bridge Auth., Rev. Ref. Bonds:
Series 1991B, 8.50% 2022 (Subject to Crossover 2,000 2,069
Refunding)
Series 1993D, 6.10% 2022 500 518
North Broward Hospital Dist., Improvement Rev. 2,500 2,613
Bonds, Series 2001, 6.00% 2031
Northern Palm Beach County Improvement Dist.,
Water Control and Improvement Bonds:
Unit of Dev. No. 9A, Series 1996A:
6.80% 2006 910 988
7.30% 2027 1,500 1,613
Unit of Dev. No. 9B, Series 1999:
5.85% 2013 950 977
6.00% 2029 2,200 2,226
North Springs Improvement Dist. Special Assessment 220 222
Bonds (Parkland Isles Project), Series 1997B,
6.25% 2005
City of Orlando, Special Assessment Rev. Bonds
(Conroy Road Interchange Project), Series 1998A:
5.50% 2010 1,000 999
5.80% 2026 2,000 1,920
River Ridge Community Dev. Dist. (Lee County), 700 707
Capital Improvement Rev. Bonds, Series 1998, 5.75% 2008
Sampson Creek Community Dev. Dist. (St. Johns County), 2,750 2,825
Capital Improvement Rev. Bonds, Series 2000A,
6.95% 2031
Stoneybrook West Community Dev. Dist. (City of
Winter Garden, Orange County), Special Assessment
Rev. Bonds:
Series 2000A, 7.00% 2032 1,775 1,829
Series 2000B, 6.45% 2010 2,060 2,114
Vista Lakes Community Dev. Dist. (City of Orlando), 1,615 1,632
Capital Improvement Rev. Bonds, Series 2000B, 6.35% 2005
Waterlefe Community Dev. Dist. (Manatee County), Capital
Improvement Rev. Bonds:
Series 2001A, 6.95% 2031 500 511
Series 2001B, 6.25% 2010 1,620 1,639
Georgia - 1.82%
G.O. Bonds, Series 2001B, 5.25% 2016 10,000 10,651
Municipal Electric Auth.:
General Power Rev. Bonds, Series X, 6.50% 2012 1,215 1,395
Project One Senior Bond, Fourth Crossover Series, 5,700 6,678
MBIA Insured, 6.50% 2012
City of Atlanta:
Airport Facs. Rev. Ref. Bonds, Series 1994A, AMBAC 1,000 1,169
Insured, 6.50% 2009
Fulco Hospital Auth., Rev. Anticipation
Certificates, Georgia Baptist Health Care System
Project:
Series 1992A (Preref. 2002):
6.40% 2007 1,000 1,058
6.25% 2013 2,100 2,216
6.375% 2022 1,595 1,685
Series 1992B, 6.375% 2022 (Preref. 2002) 610 645
Water and Wastewater Rev. Bonds, Series 1999, FGIC 8,500 9,375
Insured, 5.50% 2022
Housing Auth. of the County of DeKalb, Multi-family 6,000 6,100
Housing Rev. Ref. Bonds (The Park at Briarcliff
Apartments Project), Series 1998A, 4.55% 2028
(Put 2008)
Hawaii - 0.47%
G.O. Bonds of 1997, Series CN, FGIC Insured, 5.25% 2013 3,000 3,176
City and County of Honolulu:
G.O. Bonds:
Ref. and Improvement Series, 1993B:
5.00% 2013 1,370 1,459
5.00% 2013 (Escrowed to Maturity) 630 677
Series 2001A, FSA Insured, 5.375% 2012 2,000 2,188
Wastewater System Rev. Bonds (First Bond
Resolution), Senior Series 2001, AMBAC Insured:
5.50% 2015 1,875 2,037
5.50% 2016 1,000 1,080
Illinois - 10.96%
G.O. Bonds, Illinois FIRST, Series of May 2001, 2,000 2,214
FSA Insured, 5.50% 2016
Build Illinois Bonds (Sales Tax Rev. Bonds),
Illinois FIRST:
Series of March 2001, 5.50% 2016 3,000 3,239
Series of June 2001:
5.50% 2016 7,470 8,065
5.50% 2017 8,000 8,591
Civic Center Bonds (Special State Obligation 6,500 7,544
Bonds), Series 1991, AMBAC Insured, 6.25% 2020
Dev. Fin. Auth., Rev. Bonds, Series 1998A 5,120 5,622
(Provena Health), MBIA Insured, 5.50% 2010
Educational Facs. Auth., Rev. Bonds:
MJH Education Assistance Illinois III 1,500 1,583
LLC, Series 1999D, AMBAC Insured, 5.45% 2014
Wesleyan University, Series 1993, 5.625% 2018 1,490 1,535
Health Facs. Auth.:
Rev. Bonds:
Advocate Health Care Network:
Series 1998A:
5.00% 2007 700 740
5.00% 2007 (Escrowed to Maturity) 920 992
5.00% 2008 810 853
5.00% 2008 (Escrowed to Maturity) 1,060 1,143
4.50% 2009 840 851
4.50% 2009 (Preref. 2008) 1,090 1,152
4.625% 2010 1,310 1,329
4.625% 2010 (Preref. 2008) 1,690 1,799
Series 1998B:
4.875% 2013 2,130 2,155
4.875% 2013 (Preref. 2008) 330 357
MBIA Insured, 5.25% 2018 2,115 2,172
MBIA Insured, 5.25% 2018 (Preref. 2008) 385 424
Alexian Brothers Health System, Series
1999, FSA Insured:
5.00% 2008 1,230 1,305
5.25% 2012 6,960 7,389
5.00% 2025 2,000 1,963
5.125% 2028 2,000 1,991
Centegra Health System, Series 1998:
5.50% 2008 1,640 1,724
5.50% 2009 2,290 2,407
5.50% 2010 2,440 2,554
5.20% 2012 2,200 2,226
5.25% 2013 2,430 2,448
5.25% 2018 5,050 4,887
The Children's Memorial Hospital, Series
1999A, AMBAC Insured:
5.75% 2010 1,835 2,049
5.75% 2011 1,690 1,875
Edward Hospital Association Project, 1,000 1,040
Series 1992, 7.00% 2022 (Preref. 2002)
Edward Hospital Obligated Group, Series
2001A, FSA Insured:
5.50% 2012 2,545 2,796
5.50% 2017 1,500 1,591
Friendship Village of Schaumburg, 3,675 3,078
Series 1997A, 5.25% 2018
Lutheran Senior Ministries Obligated Group 2,000 2,002
- Lutheran Hillside Village Project,
Series 2001A, 7.375% 2031
Northwestern Memorial Hospital, 2,000 2,086
Series 1994A, 6.00% 2024
OSF Healthcare System:
Series 1993, 5.75% 2007 5,760 6,060
Series 1999, 6.25% 2019 4,500 4,796
Riverside Health System, Series 2000, 2,500 2,756
6.85% 2029
Sherman Health Systems, Series 1997, 2,595 2,798
AMBAC Insured, 5.50% 2010
Hospital Sisters Services, Inc. - Obligated 4,000 4,311
Group, Series 1998A, MBIA Insured, 5.25% 2008
Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997A:
5.50% 2008 1,000 1,083
5.80% 2016 8,000 8,447
Edward Hospital Project, Series 1993A:
5.75% 2009 1,550 1,622
6.00% 2019 1,435 1,471
Fairview Obligated General Project, 1995 Series A:
6.50% 2006 770 795
7.40% 2023 3,000 3,018
Rev. and Rev. Ref. Bonds:
Evangelical Hospitals Corp., Series C, 4,000 4,676
6.25% 2022 (Escrowed to Maturity)
Lutheran General Health, Series C, 2,705 2,923
6.00% 2018
Housing Dev. Auth., Multi-family Housing 1,490 1,544
Bonds, 1992 Series A, 7.00% 2010
Metropolitan Pier and Exposition Auth.,
McCormick Place Expansion Project Bonds:
Series 1992A, 6.50% 2027 (Preref. 2003) 3,910 4,248
Ref. Bonds, Series 1996A, MBIA Insured, 0% 2024 10,000 2,958
City of Chicago:
G.O. Bonds, Series 1999, FGIC Insured:
City Colleges of Chicago Capital 7,700 3,824
Improvement Project, 0% 2016
Emergency Telephone System, Ref. Bonds, 2,000 2,120
5.25% 2020
Chicago O'Hare International Airport,
Special Fac. Rev. Ref. Bonds:
Series 1994 (American Airlines, Inc. 2,750 3,069
Project), 8.20% 2024
Series 1999A (United Air Lines, Inc. 14,605 13,257
Project), 5.35% 2016
Metropolitan Water Reclamation Dist.
of Greater Chicago, Series B:
Capital Improvement Bonds, 5.25% 2004 5,000 5,351
Ref. Bonds, 5.30% 2005 5,325 5,771
School Reform Board of Trustees of the Board
of Education of the City of Chicago,
Unlimited Tax G.O. Bonds:
Series 1997A, AMBAC Insured:
0% 2011 2,745 1,754
Capital Appreciation Bonds, 0% 2015 3,245 1,637
Dedicated Tax Rev., AMBAC Insured:
Series 1997, 6.75% 2012 1,000 1,222
Series 1997A, 0% 2014 7,085 3,799
Series 1998B, FGIC Insured, 0% 2014 2,000 1,072
Skyway Toll Bridge Ref. Rev. Bonds, Series
1994 (Preref. 2004):
6.50% 2010 13,250 14,571
6.75% 2014 6,500 7,184
Tax Increment Allocation Bonds (Central Loop
Redev. Project), Capital Appreciation Bonds,
Series 2000A, AMBAC Insured:
0% 2007 7,000 5,505
0% 2008 7,000 5,227
Water Rev. Bonds, Series 1997, FGIC Insured, 3,500 1,884
0% 2014
County of Cook, G.O. Capital Improvement Bonds, 4,000 4,777
Series 1996, FGIC Insured, 6.50% 2011
Regional Transportation Auth., Cook, Du Page, 4,500 6,023
Kane, Lake, McHenry and Will Counties, G.O.
Bonds, Series 1994D, FGIC Insured, 7.75% 2019
Township High School Dist. Number 205, Cook 4,730 3,532
County (Thornton), G.O. Limited Capital
Appreciation Bonds, Series 1998D, FSA Insured, 0% 2008
University of Illinois, Cert. of Part., 3,530 3,774
Series A, AMBAC Insured, 5.375% 2015
Indiana - 3.71%
State Dev. Fin. Auth.:
Pollution Control Rev. Bonds (Inland Steel Co. 2,500 1,397
Project No. 12), 6.85% 2012
Rev. Ref. Bonds, Exempt Fac.-Inland Steel, 5.75% 2011 4,000 2,135
Educational Facs. Auth., Educational Facs. Rev. 1,000 1,025
Bonds (University of Evansville Project),
Series 1996, 5.25% 2005
Health Fac. Fncg. Auth., Hospital Rev. Bonds:
Charity Obligated Group:
Series 1997D, 5.00% 2026 (Preref. 2007) 15,010 16,227
Series 1999D, 5.25% 2016 3,000 3,089
Clarian Health Partners, Inc., Series 1996A:
MBIA Insured, 5.25% 2008 1,700 1,831
MBIA Insured, 5.50% 2016 4,000 4,198
5.50% 2016 10,250 10,562
Holy Cross Health System Corp., Series 1998, 7,095 7,666
MBIA Insured, 5.375% 2010
The Methodist Hospitals, Inc., Series 2001, 5.50% 2031 2,000 2,006
Sisters of St. Francis Health Services, Inc. 1,000 1,069
Project, Series 1997A, MBIA Insured, 5.00% 2008
Housing Fin. Auth., Single Family Mortgage Ref. 1,275 1,324
Rev. Bonds, 1992 Series A, 6.75% 2010
State Office Building Commission, Correctional 8,490 10,036
Facs. Program Rev. Bonds, Series 1995B,
AMBAC Insured, 6.25% 2012
Transportation Fin. Auth., Airport Facs.
Lease Rev. Bonds, Series A:
6.50% 2007 1,160 1,217
6.50% 2007 (Preref. 2002) 3,755 4,001
6.75% 2011 (Preref. 2002) 2,400 2,564
Boone County Hospital Association, Lease Rev. 1,255 1,332
Bonds, Series 2001, FGIC Insured, 5.00% 2010
City of East Chicago, Pollution Control Rev. 3,000 1,893
Ref. Bonds, Inland Steel Co. Project No.11,
Series 1994, 7.125% 2007
Hospital Auth. of the City of Fort Wayne, Rev.
Bonds (Parkview Memorial Hospital Inc. Project),
Series 1992:
6.375% 2013 (Preref. 2002) 4,000 4,259
6.40% 2022 (Preref. 2002) 2,000 2,130
Marion County, Convention and Recreational Facs. 3,370 3,638
Auth., Excise Taxes Lease Rental Rev. Ref.
Senior Bonds, Series 2001A, MBIA Insured, 5.50% 2015
Iowa - 0.99%
Fin. Auth.:
Econ. Dev. Rev. Bonds (Foundation for Affordable 1,500 1,587
Housing Project), Series 2000A, FNMA Insured,
5.65% 2033 (Put 2013)
Hospital Rev. Bonds (Mercy Medical Center Project),
Series 1999, FSA Insured:
5.50% 2011 1,420 1,554
5.60% 2012 1,375 1,504
Rev. and Ref. Bonds:
Mercy Health Services Obligated Group, 1997 590 629
Series V, 5.00% 2010 (Escrowed to Maturity)
Trinity Health Credit Group, Series 2000B, 5,000 5,482
AMBAC Insured, 6.00% 2027
Rev. Bonds (Catholic Health Initiatives), 3,000 3,197
Series 2000A, 6.00% 2018
Single Family Mortgage Bonds, 1997 Series F, 1,840 1,909
5.55% 2016
Polk County, Catholic Health Initiatives,
Rev. Bonds, Series 1997A:
5.50% 2007 1,520 1,641
5.125% 2011 1,500 1,556
5.125% 2012 3,170 3,262
Kentucky - 1.32%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare,
Inc.), MBIA Insured:
Series 2000, 6.50% 2020 8,500 8,952
Series 2000, 6.625% 2028 5,500 5,811
Series 2000A, 6.125% 2010 2,000 2,138
Hospital System Ref. and Improvement Rev. Bonds
(Appalachian Regional Healthcare, Inc. Project),
Series 1997:
5.20% 2004 1,540 1,457
5.60% 2008 630 561
5.60% 2009 3,305 2,878
5.70% 2010 490 422
5.75% 2011 2,190 1,856
5.85% 2017 2,000 1,572
City of Ashland, Pollution Control Ref. Rev. Bonds, 3,750 4,023
Series 1999 (Ashland Inc. Project), 5.70% 2009
Louisiana - 4.29%
Health Education Auth. (Lambeth House Project):
Rev. Bonds, Series 1996, 9.00% 2026 (Preref. 2006) 9,000 11,483
Rev. Ref. Bonds, Series 1998A:
5.50% 2010 5,505 5,091
6.15% 2018 2,000 1,777
6.20% 2028 3,950 3,395
Public Facs. Auth., Hospital Rev. Ref. Bonds
(Franciscan Missionaries of Our Lady Health
System Project), Series 1998A, FSA Insured:
5.75% 2014 3,495 3,923
5.75% 2015 3,825 4,286
5.75% 2018 4,000 4,433
Jefferson Parish Hospital Services:
Dist. No. 1, Parish of Jefferson (West Jefferson
Medical Center), Hospital Rev. Bonds, Series
1998A, FSA Insured:
5.25% 2011 2,070 2,220
5.25% 2012 1,930 2,055
Dist. No. 2, Parish of Jefferson, Hospital 2,000 2,164
Rev. Bonds, Series 1998, FSA Insured, 5.25% 2011
Lake Charles Harbor and Terminal Dist., Port 24,000 25,647
Facs. Rev. Ref. Bonds (Trunkline LNG Co.
Project), Series 1992, 7.75% 2022
Local Government Environmental Facs. And 11,500 13,936
Community Dev. Auth., Rev. Bonds (Capital
Projects and Equipment Acquisition Program),
Series 2000A, AMBAC Insured, 6.30% 2030
Parish of West Feliciana, Pollution Control
Rev. Bonds (Gulf States Utilities Co. Project):
Gulf States Utilities Co. Project, Series 2,000 2,055
1985B, 9.00% 2015
Entergy Gulf States, Inc. Project, Series 13,500 14,019
1999A, 5.65% 2028 (Put 2004)
Maine - 0.25%
Health and Higher Educational Facs. Auth.,
Rev. Bonds, Piper Shores Issue, Series 1999A:
7.50% 2019 3,000 3,031
7.55% 2029 2,575 2,596
Maryland - 1.13%
Community Dev. Administration, Dept. of Housing 5,815 6,167
and Community Dev., Single Family Program Bonds,
1997 First Series, 5.25% 2005
Health and Higher Educational Facs. Auth.:
First Mortgage Rev. Bonds, PUMH of Maryland, 2,400 2,208
Inc. Issue (Heron Point of Chestertown),
Series 1998A, 5.75% 2019
Rev. Bonds, Howard County General Hospital
Issue, Series 1993 (Escrowed to Maturity):
5.50% 2013 2,000 2,133
5.50% 2021 1,225 1,282
Anne Arundel County, Special Obligation Bonds:
Arundel Mills Project, Series 1999, 7.10% 2029 5,750 6,226
National Business Park Project, Series 2000, 1,000 1,089
7.375% 2028
Calvert County, Econ. Dev. Rev. Bonds 2,500 2,959
(Asbury-Solomons Island Fac.), Series 1995,
8.625% 2024 (Preref. 2005)
Frederick County, Special Obligation Bonds 2,500 2,563
(Urbana Community Dev. Auth.), Series 1998,
6.625% 2025
Prince George's County, Hospital Rev. Bonds, 750 794
Dimensions Health Corp. Issue, Series 1992,
7.25% 2017 (Preref. 2002)
Massachusetts - 0.89%
Massachusetts Bay Transportation Auth., General 5,000 5,851
Transportation System Bonds, 1994 Series A Ref.
Bonds, 7.00% 2007
Health and Educational Facs. Auth., Rev. Bonds,
Partners HealthCare System Issue:
Series B, 5.25% 2029 2,000 1,978
Series C:
6.00% 2015 1,335 1,469
6.00% 2016 1,520 1,662
5.75% 2032 2,000 2,065
Turnpike Auth., Metropolitan Highway System Rev. 5,500 5,368
Bonds, Series 1999A, AMBAC Insured, 5.00% 2039
The New England Loan Marketing Corp., Student 1,500 1,534
Loan Ref. Bonds, 1993 Series G, 5.20% 2002
Michigan - 4.49%
Building Auth., 2001 Rev. Ref. Bonds, Series I 3,000 3,251
(Facs. Program), 5.50% 2016
Hospital Fin. Auth.:
Hospital Rev. Bonds:
The Detroit Medical Center Obligated Group,
Series 1998A:
5.00% 2013 1,000 911
5.00% 2014 1,525 1,375
5.25% 2028 3,000 2,556
Henry Ford Health System, Series 1999A:
5.70% 2011 2,985 3,246
5.80% 2012 1,075 1,169
Hospital Rev. Ref. Bonds:
Daughters of Charity, National Health System, 1,180 1,248
5.50% 2005 (Escrowed to Maturity)
The Detroit Medical Center Obligated Group:
Series 1993A, 6.375% 2009 2,000 2,046
Series 1993B, AMBAC Insured, 5.00% 2006 1,000 1,061
Genesys Health System Obligated Group,
Series 1995A:
7.10% 2002 (Escrowed to Maturity) 285 299
7.20% 2003 (Escrowed to Maturity) 1,000 1,091
8.00% 2005 (Escrowed to Maturity) 8,880 10,512
8.10% 2013 (Preref. 2005) 5,000 6,026
8.125% 2021 (Preref. 2005) 4,500 5,428
7.50% 2027 (Preref. 2005) 4,520 5,265
Hackley Hospital Obligated Group, Series 1998A:
5.00% 2008 1,215 1,202
5.30% 2013 2,400 2,305
McLaren Obligated Group, Series 1993A, 2,985 3,044
5.375% 2013
Pontiac Osteopathic, Series 1994A:
5.375% 2006 850 844
6.00% 2014 2,545 2,465
6.00% 2024 4,775 4,328
Sinai Hospital of Greater Detroit, Series 1995:
6.00% 2008 2,000 1,994
6.625% 2016 3,190 3,235
Variable Rate Rev. Bonds (Ascension Health
Credit Group):
Series 1999B-3, 5.30% 2033 (Put 2006) 2,000 2,091
Series 1999B-4, 5.375% 2033 (Put 2007) 3,000 3,144
Housing Dev. Auth., Rental Housing Rev. Bonds, 1,600 1,657
1994 Series A, 6.20% 2003
Municipal Bond Auth., Public School Academy Facs.
Program Rev. Bonds:
Detroit Academy of Arts and Sciences Project,
Series 2001A:
7.90% 2021 1,000 1,016
8.00% 2031 1,000 1,016
YMCA Service Learning Academy Project, 4,150 4,218
Series 2001, 7.75% 2031
Strategic Fund, Limited Obligation Ref. Rev. 1,000 1,046
Bonds (Detroit Edison Co. Pollution Control
Bonds Project), Series 1995CC, AMBAC Insured,
4.85% 2030 (Put 2011)
Trunk Line Fund Bonds, Series 2001A, 5.50% 2015 4,000 4,345
City of Detroit:
G.O. Rev. Bonds (Unlimited Tax), Series 1995B:
7.00% 2004 2,500 2,718
6.25% 2008 1,730 1,862
6.25% 2009 1,195 1,280
6.25% 2010 1,250 1,334
Downtown Dev. Auth., Tax Increment Bonds (Dev. 2,900 3,320
Area No. 1 Projects), Series 1996C, 6.20% 2017
(Preref. 2006)
School Dist. of the City of Detroit, Wayne County, 1,955 2,060
School Building and Site Improvement Ref. Bonds,
Series 1998C, FGIC Insured, 5.25% 2025
City of Flint, Hospital Building Auth. (Hurley
Medical Center):
Rev. Ref. Bonds, Series 1998A, 5.25% 2016 1,250 1,160
Rev. Rental Bonds, Series 1998B, 5.375% 2028 1,000 876
City of Royal Oak, Hospital Fncg. Auth., Hospital 3,000 3,022
Rev. Ref. Bonds (William Beaumont Hospital),
Series 1993G, 5.25% 2019
Minnesota - 0.26%
Housing Fin. Agcy., Single Family Mortgage Bonds, 1,765 1,843
1994 Series E, 5.60% 2013
City of Minneapolis, G.O. Various Purpose Bonds, 4,000 4,025
Series 2000, 5.00% 2001
Mississippi - 0.38%
Development Bank, Special Obligation Bonds (Capital 7,500 7,561
Projects and Equipment Acquisition Program), Series
2001A, AMBAC Insured, 5.00% 2031
Hospital Equipment and Facs. Auth., Rev. Bonds, 1,000 1,043
Series 2000 (Forrest County General Hospital
Project), FSA Insured, 5.50% 2027
Nebraska - 0.01%
City of Kearney, Industrial Dev. Rev. Bonds (The 2,750 330
Great Platte River Road Memorial Foundation
Project), Series 1998, 6.75% 2028
Nevada - 2.41%
Housing Division, Single Family Mortgage Bonds, 755 761
1999 Series A-1, 4.75% 2012
Clark County:
G.O. (Limited Tax) Bond Banks Bonds, Series 2001, 3,000 3,238
FGIC Insured, 5.50% 2016
Special Improvement Dist. No. 121 (Southern
Highlands Area), Local Improvement Bonds,
Series 1999:
7.00% 2009 2,500 2,697
7.50% 2019 14,000 15,028
Special Improvement Dist. No. 132 (Summerlin 2,235 2,295
South Area (Villages 15A and 18)), Local
Improvement Bonds, Series 2001, 6.75% 2021
City of Henderson:
Health Fac. Rev. Bonds (Catholic Healthcare 7,000 6,105
West), 1998 Series A, 5.375% 2026
Local Improvement Dist. No. T-4C (Green Valley
Properties), Limited Obligation Ref. Bonds,
1999 Series A:
5.65% 2009 1,495 1,540
5.75% 2013 3,990 3,954
5.90% 2018 2,990 2,934
City of Las Vegas:
G.O. (Limited Tax) Sewer and Flood Control 2,855 3,063
Bonds, Series 2001, FGIC Insured, 5.375% 2015
Special Improvement Dist. No. 808 (Summerlin
Area), Local Improvement Bonds, Series 2001:
6.375% 2014 2,080 2,139
6.75% 2021 4,500 4,622
Las Vegas Monorail Project Rev. Capital 3,545 2,485
Appreciation Bonds, 1st Tier Series 2000,
AMBAC Insured, 0% 2010
Truckee Meadows Water Auth., Water Rev. Bonds, 3,105 3,340
Series 2001A, FSA Insured, 5.50% 2016
New Jersey - 2.00%
Econ. Dev. Auth.:
Econ. Dev. Bonds, Kapkowski Road Landfill
Reclamation Improvement Dist. Project (City
of Elizabeth), Series 1998A:
6.375% 2018 1,000 1,058
6.375% 2031 7,500 7,908
First Mortgage Rev. Fixed-Rate Bonds:
Fellowship Village Project, Series 1995A, 7,000 8,434
9.25% 2025 (Preref. 2005)
Winchester Gardens at Ward Homestead
Project, Series 1996A:
8.50% 2016 4,000 4,296
8.625% 2025 3,500 3,762
First Mortgage Rev. Ref. Bonds (Fellowship
Village Project), Series 1998A:
4.95% 2005 1,230 1,242
5.50% 2018 2,295 2,188
Tax-Exempt Term Bonds, 5.50% 2025 3,000 2,767
Retirement Community Rev. Bonds (Seabrook 6,000 6,288
Village, Inc. Fac.), Series 2000A, 8.25% 2030
Housing and Mortgage Fin. Agcy., Section 8
Bonds, 1991 Series A:
6.80% 2005 2,570 2,628
6.85% 2006 2,500 2,557
Gloucester County Improvement Auth., Solid 1,585 1,802
Waste Resource Recovery Rev. Ref. Bonds (Waste
Management, Inc. Project), Series 1999A,
6.85% 2029 (Put 2009)
New York - 5.82%
Dormitory Auth.:
Center for Nursing/Rehabilitation, Inc. Rev. 2,100 2,218
Bonds, FHA Insured, 5.45% 2017
City University System Consolidated Third 2,000 2,224
General Resolution Rev. Bonds, 1998 Series
2, AMBAC Insured, 5.50% 2008
Edgar Health Care Center (Nursing Home) 2,375 2,434
Rev. Bonds, FHA Insured, 4.90% 2013
Mental Health Services Facs. Improvement Rev. Bonds:
Series 1997A, 6.00% 2007 1,750 1,984
Series 1997B:
6.00% 2007 2,490 2,823
6.00% 2007 (Preref. 2007) 10 12
5.60% 2008 1,300 1,445
Series 1998B:
5.375% 2009 1,270 1,397
5.00% 2010 1,495 1,606
5.00% 2010 1,530 1,644
Series 1998C, 5.00% 2010 1,760 1,891
Secured Hospital:
Rev. Bonds (Interfaith Medical Center), 2,000 2,169
Series 1998D, 5.25% 2007
Rev. Ref. Bonds:
Bronx-Lebanon Hospital Center, Series 1998E, 8,520 8,963
MBIA Insured, 5.20% 2014
Brookdale Hospital, Series 1998J, 5.125% 2009 2,500 2,707
State University Educational Facs.:
Rev. Bonds:
Series 1990B, 7.50% 2011 1,160 1,399
Series 1990B, 7.50% 2011 (Preref. 2010) 560 713
Series 1997, 6.00% 2007 3,000 3,394
Rev. Ref. Bonds, Series 1990A, 7.50% 2013 3,500 4,546
St. Luke's-Roosevelt Hospital Center, Mortgage 5,000 5,281
Hospital Rev. Bonds, Series 2000A, FHA Insured,
5.75% 2021
Housing Fin. Agcy.:
Health Facs. Rev. Bonds (New York City), 1996 3,000 3,339
Series A Ref., 6.00% 2006
Service Contract Obligation Rev. Ref. Bonds, 1,750 1,891
Series 1997C, 5.20% 2010
Local Government Assistance Corp.:
Series 1991C, Capital Appreciation Bonds, 0% 2005 5,000 4,482
Series 1991D:
7.00% 2011 (Preref. 2002) 2,000 2,093
6.75% 2021 (Preref. 2002) 1,350 1,411
State Medical Care Facs. Fin. Agcy.:
Hospital Insured Mortgage Rev. Bonds, 1994 Series
A Ref., FHA Insured:
5.10% 2010 2,095 2,185
5.25% 2014 5,000 5,238
Mental Health Services Facs. Improvement Rev. 1,000 1,009
Bonds, 1993 Series D, 5.25% 2023
St. Luke's-Roosevelt Hospital Center, FHA Insured 12,215 13,047
Mortgage Rev. Bonds, 1993 Series A, 5.60% 2013
Urban Dev. Corp., Correctional Capital Facs.
Rev. Bonds:
Ref. Series 1993A, 5.30% 2005 1,800 1,924
Series 7, 5.25% 2009 1,375 1,495
Castle Rest Residential Health Care Fac., FHA 1,700 1,813
Insured Mortgage Rev. Bonds, Series 1997A, 5.60% 2017
City of New York:
G.O. Bonds:
Fiscal 1992 Series C, 6.50% 2004 (Preref. 2002) 470 494
Fiscal 1992 Series H, 6.875% 2002 155 158
Fiscal 1995 Series F:
6.60% 2010 (Preref. 2005) 2,000 2,262
6.625% 2025 (Preref. 2005) 1,500 1,698
Fiscal 1996 Series E, 6.50% 2006 3,000 3,391
Fiscal 1999 Series H, 5.00% 2029 3,000 2,976
Fiscal 2001 Series F:
5.00% 2010 1,500 1,617
5.25% 2011 6,260 6,866
Fiscal 2001 Series H, 5.25% 2016 3,510 3,703
Transitional Fin. Auth., Future Tax Secured Bonds:
Fiscal 1998 Series A, 5.00% 2027 1,500 1,493
Fiscal 1998 Series B, 4.50% 2027 5,000 4,592
Fiscal 1998 Series C, 5.00% 2018 2,000 2,043
Fiscal 1999 Series B, 4.75% 2023 5,725 5,538
Fiscal 2001 Series C, 5.375% 2015 2,000 2,176
Suffolk County Industrial Dev. Agcy., Continuing 2,000 2,018
Care Retirement Community Rev. Bonds (Peconic
Landing at Southhold, Inc. Project), Series 2000,
8.00% 2030
Triborough Bridge and Tunnel Auth., General 1,000 1,167
Purpose and Rev. Bonds, Series Y, 6.00% 2012
North Carolina - 2.59%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Ref. Series 1993B:
6.00% 2006 3,120 3,367
7.25% 2007 5,425 6,205
7.00% 2008 10,720 12,283
6.125% 2009 2,000 2,204
6.00% 2022 2,000 2,144
6.00% 2026 1,990 2,131
MBIA Insured, 6.00% 2026 2,500 2,902
Series 1993C, 5.00% 2021 2,300 2,154
Ref. Series 1999B:
5.55% 2014 1,800 1,865
5.60% 2015 2,500 2,582
5.65% 2016 2,000 2,060
5.70% 2017 4,775 4,909
Series 1999D, 6.75% 2026 3,500 3,856
Municipal Power Agcy. Number One (Catawba Electric
Rev. Bonds):
Series 1992, 6.25% 2017 2,000 2,082
Series 1999A, MBIA Insured, 6.00% 2008 3,935 4,422
County of Catawba, Hospital Ref. Rev. Bonds 1,000 1,044
(Catawba Memorial Hospital Project), Series
1999, AMBAC Insured, 4.60% 2010
County of New Hanover, Hospital Rev. Bonds 1,995 2,167
(New Hanover Regional Medical Center Project),
Series 1999, MBIA Insured, 5.25% 2011
Ohio - 0.42%
County of Knox, Hospital Facs. Ref. Rev. Bonds, 2,175 2,250
Series 1998 (Knox Community Hospital), Asset
Guaranty Insured, 4.60% 2007
County of Lorain, Health Care Facs. Rev. Ref. 2,000 1,758
Bonds (Kendal at Oberlin), Series 1998A,
5.25% 2021
County of Montgomery, Hospital Facs. Rev. Bonds
(Kettering Medical Center Network Obligated
Group), Series 1999:
6.75% 2018 1,000 1,068
6.75% 2022 1,000 1,051
County of Richland, Hospital Facs. Rev.
Improvement Bonds (MedCentral Health
System Obligated Group), Series 2000B:
6.375% 2022 1,250 1,294
6.375% 2030 2,000 2,051
Oklahoma - 0.50%
Health System Rev. Bonds, Baptist Medicine 2,500 2,764
Center of Oklahoma, Series 1995C, AMBAC
Insured, 6.375% 2009
Industrial Auth., Health System Rev. Ref. 2,500 2,830
Bonds (Obligated Group consisting of INTEGRIS
Baptist Medical Center, Inc., INTEGRIS South
Oklahoma City Hospital Corp. and INTEGRIS Rural
Health, Inc.), AMBAC Insured, 6.00% 2009
Industries Auth., Health Facs. Rev. Ref. Bonds 2,505 2,541
(Sisters of Mercy Health System, St. Louis, Inc.),
Series 1993A, 5.00% 2013
Tulsa Industrial Auth., Hospital Rev. and Ref. 3,000 3,036
Bonds, St. John Medical Center Project,
Series 1996, 5.375% 2017
Oregon - 0.94%
City of Klamath Falls, Electric Rev. Ref. Bonds
(Klamath Cogeneration Project), Series 1999:
5.75% 2013 7,000 6,953
5.875% 2016 3,500 3,465
6.00% 2025 11,000 10,729
Pennsylvania - 5.82%
Convention Center Auth., Ref. Rev. Bonds, 8,240 8,591
1994 Series A, 6.25% 2004
Higher Educational Facs. Auth.:
Rev. Bonds (Thomas Jefferson University),
1992 Series A:
MBIA Insured, 6.625% 2009 375 396
6.625% 2009 (Preref. 2002) 875 926
UPMC Health System Rev. Bonds, Series 1999A, 2,000 2,148
FSA Insured, 5.00% 2009
Housing Fin. Agcy., Rental House Ref. Bonds,
FNMA Insured:
Issue 1992, 6.50% 2023 2,000 2,062
Issue 1993, 5.80% 2018 1,000 1,030
Housing Fin. Auth., Single Family Mortgage 1,000 1,033
Rev. Bonds, Series 1992-33, 6.85% 2009
Allegheny County, Cert. of Part. (ACJCT Fac. 2,150 2,165
Holdings L.P.), AMBAC Insured, 5.00% 2019
Allegheny County Hospital Dev. Auth.:
Health System Rev. Bonds, Catholic Health
East Issue, Series 1998A, AMBAC Insured:
5.50% 2008 1,000 1,099
5.00% 2010 2,705 2,880
UPMC Health System Rev. Ref. Bonds, Series 5,160 5,624
1999B, AMBAC Insured, 5.25% 2008
Port Auth. of Allegheny County, Special Rev. 1,000 1,093
Transportation Bonds, Ref. Series of 2001,
FGIC Insured, 5.50% 2015
Chester County Health and Education Facs. Auth., 4,150 4,160
Health System Rev. Bonds (Jefferson Health
System), Series 1997B, 5.375% 2027
Delaware County Auth., Rev. Bonds, Catholic 2,465 2,615
Health Systems, Series A, AMBAC Insured, 5.00% 2010
Lehigh County, General Purpose Auth. Rev. Bonds 1,500 1,633
(KidsPeace Obligated Group), 5.70% 2009
Montgomery County Industrial Dev. Auth.:
Retirement Community Rev. Ref. Bonds (Adult 1,000 1,021
Communities Total Services, Inc. Obligated
Group), Series 1996A, 5.875% 2022
Retirement Community Rev. Bonds (ACTS 17,500 16,618
Retirement-Life Communities, Inc.
Obligated Group), Series 1998, 5.25% 2028
City of Philadelphia, G.O. Ref. Bonds, 3,300 3,238
Series 1998, FGIC Insured, 4.75% 2020
Hospitals and Higher Education Facs.
Auth. of Philadelphia:
The Children's Hospital of Philadelphia
Project, Rev. Bonds, Series A of 1992:
6.50% 2009 (Preref. 2002) 4,500 4,671
6.50% 2021 (Preref. 2002) 3,000 3,114
Frankford Hospital, Series A (Escrowed
to Maturity):
6.00% 2014 3,705 3,932
6.00% 2023 4,000 4,150
Health System Rev. Bonds (Jefferson Health
System), Series 1997A:
5.50% 2006 2,285 2,440
5.50% 2007 1,995 2,138
5.50% 2008 2,000 2,144
5.00% 2009 1,000 1,038
5.00% 2010 1,000 1,034
5.00% 2018 1,475 1,448
Temple University Hospital Rev. Bonds:
Series of 1983, 6.625% 2023 2,000 2,000
Series of 1993A, 6.50% 2008 15,500 16,210
Series of 1997, 5.70% 2009 1,000 990
Philadelphia Auth. for Industrial Dev., Rev. 2,815 2,737
Bonds (Cathedral Village Project), Series
of 1998, 5.50% 2010
City of Pottsville Hospital Auth., Hospital 8,500 9,614
Rev. Bonds (The Pottsville Hospital and Warne
Clinic), Series of 1994, 7.25% 2024 (Preref. 2004)
Scranton-Lackawanna Health and Welfare Auth.,
City of Scranton, Lackawanna County, Hospital
Rev. Bonds (Moses Taylor Hospital Project),
Series 1997:
6.05% 2010 1,000 923
6.15% 2012 2,245 2,027
6.15% 2014 3,000 2,627
6.20% 2017 3,000 2,560
Westmoreland County, Health Care Fac. Rev. Bonds 6,500 6,738
(Redstone Presbyterian SeniorCare Obligated
Group), Fixed Rate Rev. Bonds, Series 2000B,
8.125% 2030
Rhode Island - 0.44%
Depositors Econ. Protection Corp., Special
Obligation Bonds, 1993 Series A:
MBIA Insured, 5.75% 2012 4,850 5,546
5.75% 2021 2,715 3,060
5.75% 2021 (Escrowed to Maturity) 1,210 1,364
South Carolina - 1.53%
Florence County, Hospital Rev. Bonds, 2,785 3,035
McLeod Regional Medical Center Project,
MBIA Insured, Series 1998A, 5.25% 2010
Lexington County Health Services Dist.
Inc., Hospital Rev. Ref. and Improvement
Bonds, Series 1997, FSA Insured:
5.50% 2007 2,000 2,210
5.00% 2009 1,000 1,075
5.125% 2021 2,000 2,023
Piedmont Municipal Power Agcy., Electric
Rev. Bonds:
1991 Ref. Series, FGIC Insured, 6.25% 2021 4,640 5,471
1999A Ref. Series, 5.25% 2015 8,420 8,035
Tobacco Settlement Rev. Management Auth., 12,000 12,653
Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.00% 2022
South Dakota - 0.71%
Building Auth., Rev. Capital Appreciation Bonds, 3,780 2,027
Series 1996A, AMBAC Insured, 0% 2014
Health and Educational Facs. Auth., Rev. Ref.
Bonds, Series 1999 (Rapid City Regional Hospital
Issue), MBIA Insured:
5.00% 2007 2,045 2,190
5.00% 2009 4,010 4,251
5.00% 2010 4,175 4,398
Housing Dev. Auth., Homeownership Mortgage Bonds, 3,000 3,136
1995 Series A, 5.80% 2014
Tennessee - 0.95%
Health and Educational Facs. Board of the 6,600 7,805
Metropolitan Government of Nashville and
Davidson County, Rev. Bonds (Blakeford
Project), Series 1994A, 9.25% 2024 (Preref. 2004)
Memphis-Shelby County Airport Auth., Special 13,100 13,594
Facs. Rev. Bonds, Ref. Series 1992 (Federal
Express Corp.), 6.75% 2012
Texas - 8.96%
Public Fin. Auth., G.O. Ref. Bonds, Series 2,540 2,705
2001A, 5.375% 2016
City of Austin (Travis and Williamson Counties), 6,800 7,476
Water and Wastewater System Rev. Ref. Bonds,
Series 2001B, FSA Insured, 5.75% 2016
Bell County Health Facs. Dev. Corp.,
Retirement Fac. Rev. Bonds (Buckner
Retirement Services, Inc. Obligated
Group Project), Series 1998:
5.25% 2009 1,620 1,683
5.00% 2010 1,705 1,733
5.25% 2028 9,400 8,914
Brazos River Auth., Rev. Ref. Bonds (Houston 3,360 3,437
Industries Incorporated Project), MBIA
Insured, 4.90% 2015
Industrial Dev. Corp. of Port of Corpus 10,300 10,107
Christi, Rev. Ref. Bonds (Valero Refining
and Marketing Co. Project), Series C, 5.40% 2018
Cypress-Fairbanks Independent School Dist. 6,675 3,938
(Harris County), Unlimited Tax Ref. Bonds,
Capital Appreciation Bonds, Series 1993A, 0% 2013
Dallas County, Unlimited Tax Ref. And
Improvement Bonds, G.O. Ref. Bonds, Series 2001A:
5.375% 2013 2,465 2,691
5.375% 2015 3,725 4,017
DeSoto Independent School Dist. (Dallas County),
Unlimited Tax School Building and Ref. Bonds,
Series 2001 Capital Appreciation Bonds:
0% 2018 2,835 1,207
0% 2019 3,335 1,336
0% 2020 3,335 1,258
Eanes Independent School Dist. (Travis County),
Unlimited Tax School Building Bonds, Series 2001:
5.50% 2014 2,050 2,241
5.50% 2015 2,150 2,332
5.50% 2016 1,125 1,212
El Paso Independent School Dist. (El Paso County), 3,420 3,399
Unlimited Tax Ref. Bonds, Series 1999, 4.75% 2018
Garland Independent School Dist. (Dallas County),
Unlimited Tax Ref. and School Building Bonds,
Series 2001:
5.50% 2013 2,170 2,351
5.50% 2015 2,420 2,591
Harris County Health Facs. Dev. Corp.:
Hospital Rev. Bonds (Memorial Hermann Hospital
System Project):
Series 1998, FSA Insured:
5.25% 2008 1,890 2,036
5.50% 2011 5,000 5,459
5.50% 2015 10,325 11,214
Series 2001A, 6.375% 2029 13,900 14,893
Rev. Bonds (CHRISTUS Health), Series 1999A, MBIA 3,380 3,630
Insured, 5.50% 2010
Rev. Bonds (St. Luke's Episcopal Hospital),
Series 2001A:
5.625% 2014 1,000 1,068
5.625% 2015 2,500 2,648
5.625% 2016 2,700 2,839
5.625% 2018 2,000 2,080
5.50% 2020 4,000 4,084
5.50% 2021 5,740 5,852
Hidalgo County Health Services Corp., Hospital Rev.
Bonds (Mission Hospital, Inc. Project), Series 1996:
7.00% 2008 1,000 1,029
6.75% 2016 1,740 1,670
City of Houston, Water and Sewer System, Junior Lien 3,000 1,184
Rev. Ref. Bonds, Series 1998A, FSA Insured, 0% 2019
Jefferson County, Health Facs. Dev. Corp., Baptist 4,000 4,039
Hospitals of Southeast Texas, FHA Insured Mortgage
Rev. Bonds, Series 2001, AMBAC Insured, 5.20% 2021
Katy Independent School Dist. (Fort Ben, Harris and
Waller Counties), Limited Tax Ref. Bonds, Series 2001:
5.50% 2015 1,290 1,395
5.50% 2016 1,805 1,939
Keller Independent School Dist. (Tarrant County), 6,040 3,690
Unlimited Tax School Building and Ref. Capital
Appreciation Bonds, Series 2001, 0% 2012
Lewisville Independent School Dist. (Denton County), 2,000 2,156
Unlimited Tax School Building and Ref. Bonds,
Series 2001, 5.50% 2015
Mansfield Independent School Dist. (Tarrant and 2,635 2,825
Johnson Counties), Unlimited Tax School Building
and Ref. Bonds, Series 2001, 5.50% 2016
Midway Independent School Dist. (McLennan County), 5,000 2,007
Unlimited Tax School Building and Ref. Bonds,
Capital Appreciation, Series 2000, 0% 2019
Northeast Medical Clinic, Hospital Auth., County 1,000 1,168
of Humble, Rev. Bonds, FSA Insured, 6.25% 2012
Northside Independent School Dist., Unlimited Tax 4,000 4,358
School Building and Ref. Bonds, Series 2001, 5.50% 2014
Round Rock Independent School Dist. (Williamson and
Travis Counties), Unlimited Tax School Building
Bonds, Series 2001-A:
5.50% 2015 2,000 2,169
5.50% 2016 2,500 2,693
City of San Antonio, Electric and Gas Systems Rev.
Ref. Bonds, New Series 1998A:
5.25% 2015 5,075 5,312
4.50% 2021 6,205 5,833
San Antonio Independent School Dist.:
Unlimited Tax Ref. Bonds, Series 2001B:
5.375% 2013 4,260 4,633
5.375% 2015 4,390 4,701
Unlimited Tax School Building Bonds, Series 2001A:
5.375% 2015 1,515 1,622
5.375% 2016 1,705 1,812
Spring Branch Independent School Dist. (Harris
County), Limited Tax Schoolhouse and Ref.
Bonds, Series 2001:
5.375% 2015 3,875 4,137
5.375% 2016 3,070 3,254
Tarrant County Health Facs. Dev. Corp., Texas Health
Resources System Rev. Bonds, Series 1997A, MBIA
Insured:
5.50% 2007 4,000 4,274
5.75% 2015 3,000 3,226
Tomball Hospital Auth., Rev. Ref. Bonds, 5,250 4,969
Series 1993, 6.125% 2023
Board of Regents of the University of Texas 3,750 3,949
System, Rev. Fncg. System Bonds, Series 1996B,
5.00% 2011
Weatherford Independent School Dist. (Parker County), 2,625 1,148
Unlimited Tax School Building and Ref. Bonds,
Capital Appreciation, Series 2000, 0% 2018
Utah - 0.99%
Housing Fin. Agcy., Single Family Mortgage Bonds, 360 367
1995 Issue E (Federally Insured or Guaranteed
Mortgage Loans), 5.50% 2024
Alpine School Dist., Utah County, G.O. School
Building Bonds (Utah School Bond Guaranty
Program), Series 2001A:
5.25% 2015 3,000 3,189
5.25% 2016 4,225 4,459
Salt Lake County, G.O. Ref. Bonds, Series 2001:
5.25% 2011 5,000 5,529
5.00% 2012 8,130 8,735
Vermont - 0.11%
Educational and Health Buildings Fncg. Agcy., 2,250 2,381
Hospital Rev. Bonds (Medical Center Hospital
of Vermont Project), Series 1993, FGIC Insured,
5.75% 2007
Virginia - 1.57%
Dulles Town Center Community Dev. Auth. (Loudoun 2,500 2,502
County), Special Assessment Bonds (Dulles Town
Center Project), Series 1998, 6.25% 2026
Fairfax County:
Econ. Dev. Auth., Retirement Community Rev. 15,500 16,303
Bonds (Greenspring Village, Inc. Fac.), Series
1999A, 7.50% 2029
Industrial Dev. Auth., Hospital Rev. Ref. Bonds
(Inova Health Systems Hospital Project),
Series 1993A:
5.00% 2011 1,300 1,384
5.00% 2023 1,200 1,218
Gateway Community Dev. Auth. (Prince William 2,130 2,135
County), Special Assessment Bonds, Series 1999,
6.25% 2026
Industrial Dev. Auth., Hanover County, Hospital 1,000 1,175
Rev. Bonds (Memorial Regional Medical Center
Project at Hanover Medical Park), Series 1995,
MBIA Insured, 6.50% 2009
Heritage Hunt Commercial Community Dev. Auth.
(Prince William County), Special Assessment Bonds:
Series 1999A, 6.85% 2019 3,399 3,565
Series 1999B, 7.00% 2029 1,000 1,056
Peninsula Ports Auth. Health System Rev. Ref. Bonds 1,000 1,060
(Riverside Health System Project), Series 1998,
MBIA Insured, 5.00% 2010
Pocahontas Parkway Association, Route 895 Connector 5,000 4,840
Toll Road Rev. Bonds, Series 1998A, 5.25% 2008
Washington - 6.69%
G.O. Bonds:
Series B, 5.50% 2010 2,000 2,215
Series 2001C, 5.00% 2010 7,310 7,815
Health Care Facs. Auth., Rev. Bonds, Series 2001A
(Providence Health System), MBIA Insured:
5.50% 2011 6,565 7,224
5.625% 2014 3,000 3,262
5.625% 2015 8,635 9,368
Public Power Supply System:
Nuclear Project No. 1 Ref. Rev. Bonds, Series 5,000 5,169
1997B, 5.125% 2014
Nuclear Project No. 2 Ref. Rev. Bonds:
Series 1993B, FSA Insured, 5.65% 2008 3,030 3,358
Series 1994A, 6.00% 2007 19,900 22,198
Nuclear Project No. 3 Ref. Rev. Bonds:
Series 1989A, MBIA Insured, 0% 2013 4,000 2,316
Series 1989B, 7.125% 2016 5,250 6,618
Central Puget Sound Regional Transit Auth.,
Sales Tax and Motor Vehicle Excise Tax Bonds,
Series 1999, FGIC Insured:
5.25% 2021 5,500 5,785
4.75% 2028 21,940 20,632
Public Utility Dist. No. 1 of Chelan County, 11,345 4,606
Columbia River-Rock Island Hydro-Electric System
Rev. Ref. Capital Appreciation Bonds, Series 1997A,
MBIA Insured, 0% 2019
Energy Northwest, Columbia Generating Station Ref.
Electric Rev. Bonds, Series 2001-A, FSA Insured:
5.50% 2016 13,000 14,029
5.50% 2017 5,000 5,365
City of Seattle:
Limited Tax G.O. Bonds, Series 2001 (Various Purposes):
5.00% 2013 3,835 4,048
5.00% 2014 4,040 4,228
5.25% 2015 4,255 4,520
5.375% 2016 2,000 2,135
5.375% 2017 4,440 4,707
Municipal Light and Power:
Improvements and Ref. Rev. Bonds, Series 2001, 5,000 5,357
FSA Insured, 5.50% 2016
Ref. Rev. Bonds, 1998 Series A, 5.00% 2016 3,410 3,439
Rev. Anticipation Notes, Series 2001, 4.50% 2003 2,000 2,054
Wisconsin - 1.58%
G.O. Bonds of 1999, Series A, 5.00% 2012 3,390 3,569
G.O. Ref. Bonds of 1998, Series 1, 5.50% 2010 3,225 3,597
Health and Educational Facs. Auth., Rev. Bonds:
Children's Hospital Project, Series 1993, FGIC 2,000 2,180
Insured, 5.50% 2006
Children's Hospital of Wisconsin, Inc., Series 1998, 1,130 1,257
AMBAC Insured, 5.625% 2015
Medical College of Wisconsin, Series 1993, 5.95% 2015 3,000 3,102
The Monroe Clinic, Inc.:
Series 1998:
4.80% 2010 1,110 1,114
4.90% 2011 1,165 1,173
Series 1999:
5.125% 2016 1,000 983
5.375% 2022 2,000 1,966
Housing and Econ. Dev. Auth.:
Home Ownership Rev. Bonds, 1998 Series A, 5.375% 2017 1,510 1,549
Housing Rev. Bonds, 1992 Series A, 6.40% 2003 3,480 3,583
Pollution Control and Industrial Dev. Rev. Bonds 3,650 3,956
(General Motors Corp. Projects), City of
Janesville, Series 1984, 5.55% 2009
City of Superior, Limited Obligation Ref. Rev. 6,000 7,562
Bonds (Midwest Energy Resources Co. Project),
Series E-1991 (Collateralized), FGIC Insured, 6.90% 2021
2,112,979
Principal Market
Amount Value
Short-Term Securities - 5.73% (000) (000)
Beaver County, Pennsylvania, Industrial Dev. Auth., 1,800 1,800
Pollution Control Rev. Ref. Bonds (Atlantic Richfield
Co. Projects), Series 1995, 2.05% 2020 (2)
City of Chicago, Illinois, Chicago-O'Hare International 1,200 1,200
Airport, Special Fac. Rev. Bonds (American Airlines,
Inc. Project), Series 1983D, 2.55% 2017 (2)
City of Columbia, Missouri, Special Obligation 3,400 3,400
Insurance Reserve Bonds, Series 1998A, 2.05% 2008 (2)
City of Columbus, Ohio, G.O. Bonds, Sewer Improvement 1,000 1,002
No. 26 (E-U) Bonds, 6.50% 9/15/2001
City of Detroit, Michigan, Sewage Disposal System 2,700 2,700
Rev. Ref. Bonds, Series 1998-A, MBIA Insured
, 2.00% 2023 (2)
City of Hammond, Indiana, Pollution Control Rev. 1,620 1,620
Ref. Bonds (Amoco Oil Co. Project), Series 1994,
2.50% 2022 (2)
Harrison County, Mississippi, Pollution Control Rev. 1,500 1,500
Ref. Bonds (E. I. du Pont de Nemours and Company
Project), Series 1990, 2.55% 2010 (2)
City of Houston, Texas, Tax and Rev. Anticipation 15,000 15,128
Notes, Series 2001, 3.50% 6/28/2002
City of Huntsville, Alabama, G.O. Ref. Warrants, 1,410 1,413
Series 1998-B, 4.00% 11/1/2001
Jackson County, Mississippi, Pollution Control 3,800 3,800
Ref. Rev. Bonds (Chevron U.S.A. Inc. Project),
Series 1992, 2.50% 2016 (2)
State of Kentucky, Asset/Liability Commission, 15,000 15,187
General Fund Tax and Rev. Anticipation Notes,
2001 Series A, 4.00% 6/26/2002
King County, Washington, Unlimited Tax G.O. Ref. 3,000 3,071
Bonds, 1993 Series C, 5.625% 6/1/2002
County of Los Angeles, California, 2001-2002 Tax 2,500 2,528
and Rev. Anticipation Notes, Series A, 3.75% 6/28/2002
Lower Neches Valley Auth., Industrial Dev. Corp. 6,775 6,775
(Texas), Exempt Facs. Ref. Rev. Bonds (ExxonMobil
Project), Series 2001, Subseries 2001A, 2.50% 2031 (2)
Maricopa County, Arizona Pollution Control Corp., 1,800 1,800
Pollution Control Rev. Ref. Bonds (Arizona Public
Service Co. Palo Verde Project), 1994 Series A-F,
2.45% 2029 (2)
Maryland Health and Higher Educational Facs. Auth., 8,190 8,190
Pooled Loan Program Rev. Bonds, Series 1994 D,
2.05% 2029 (2)
The Commonwealth of Massachusetts, G.O. Bond 5,000 5,000
Anticipation Notes, 2000 Series A, 5.00% 9/6/2001
State of New Mexico, 01-02 Tax and Rev. 11,000 11,138
Anticipation Notes, Series 2001, 4.00% 6/28/2002
North Carolina Medical Care Commission,
Variable Rate Hospital Rev. Bonds: (2)
Pooled Fncg. Project, Series 1996A, 2.55% 2016 1,000 1,000
Lexington Memorial Hospital Project, Series 1997, 1,300 1,300
2.55% 2010
Ohio Air Quality Dev. Auth., Air Quality Dev. Rev. 1,900 1,900
Ref. Bonds (The Cincinnati Gas and Electric Compay
Project), 1995 Series A, 2.55% 2030 (2)
Industrial Dev. Auth. of the City of Phoenix, Arizona, 4,050 4,050
Multifamily Housing Rev. Ref. Bonds (Del Mar Terrace
Apartments Project), Series 1999A, FHLMC Secured,
2.00% 2029 (2)
City of Princeton, Indiana, Pollution Control Rev. 1,500 1,500
Ref. Bonds, 1996 Series (PSI Energy, Inc. Project),
2.55% 2019 (2)
City of San Antonio, Texas, Water System Commercial 6,000 6,000
Paper Notes, Series A, 2.30% 10/3/2001
State of Texas, Tax and Rev. Anticipation Notes, 10,000 10,128
Series 2001A, 3.75% 8/29/2002
Uinta County, Wyoming, Pollution Control Ref. Rev. 2,100 2,100
Bonds (Chevron U.S.A. Inc. Project), Series 1993,
2.50% 2020 (2)
Industrial Dev. Auth. of the City of Waynesboro, 2,600 2,600
Virginia, Variable Rate Residential Care Facs. Rev.
Bonds (Sunnyside Presbyterian Home), Series 1997,
2.55% 2028 (2)
State of Wyoming, General Fund Tax and Rev. 11,000 11,093
Anticipation Notes, Series 2001A, 3.50% 6/27/2002
128,923
TOTAL INVESTMENT SECURITIES (cost: $2,121,305,000) 2,241,902
Excess of cash and receivables over payables 8,591
NET ASSETS $2,250,493
(1) Purchased in a private placement transaction; resale may be
limited to qualified institutional buyers; resale to
the public may require registration.
(2) Coupon rate changes periodically; the date of the
next scheduled coupon rate change is considered to be
the maturity date.
See Notes to Financial Statements
Key to Abbreviations
Agcy. = Agency
Auth. = Authority
Cert. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
[Download Table]
The Tax-Exempt Bond Fund of America
Financial statements
Statement of assets and liabilities
at August 31, 2001 (dollars in thousands)
Assets:
Investment securities at market
(cost: $2,121,305) $2,241,902
Cash 1,941
Receivables for -
Sales of investments $1,448
Sales of fund's shares 8,489
Interest 28,606
Other 4 38,547
2,282,390
Liabilities:
Payables for -
Purchases of investments 24,314
Repurchases of fund's shares 2,317
Dividends on fund's shares 3,372
Management services 625
Other expenses 1,269 31,897
Net assets at August 31, 2001 $2,250,493
Total authorized capital stock -
500,000,000 shares, $.001 par value
Class A shares:
Net assets $2,202,158
Shares outstanding 177,895,320
Net asset value per share $12.38
Class B shares:
Net assets $26,010
Shares outstanding 2,101,370
Net asset value per share $12.38
Class C shares:
Net assets $15,009
Shares outstanding 1,212,460
Net asset value per share $12.38
Class F shares:
Net assets $7,316
Shares outstanding 591,080
Net asset value per share $12.38
Statement of operations
for the year ended August 31, 2001 (dollars in thousands)
Investment income:
Income:
Interest $112,024
Expenses:
Management services fee $6,893
Distribution expenses - Class A 4,915
Distribution expenses - Class B 118
Distribution expenses - Class C 27
Distribution expenses - Class F 4
Transfer agent fee - Class A 489
Transfer agent fee - Class B 3
Administrative services fees - Class C 6
Administrative services fees - Class F 3
Reports to shareholders 116
Registration statement and prospectus 282
Postage, stationery and supplies 99
Directors' fees 18
Auditing and legal fees 46
Custodian fee 37
Taxes other than federal income tax 31
Other 20 13,107
Net investment income 98,917
Realized gain and unrealized
appreciation on investments:
Net realized gain 9,185
Net unrealized appreciation on investments 88,080
Net realized gain and
unrealized appreciation on investments 97,265
Net increase in net assets resulting
from operations $196,182
Statement of changes in net assets (dollars in thousands)
Year ended
August 31
2001 2000
Operations:
Net investment income $98,917 $95,126
Net realized gain(loss) on investments 9,185 (2,279)
Net unrealized appreciation (depreciation)
on investments 88,080 (1,685)
Net increase (decrease) in net assets
resulting from operations 196,182 91,162
Dividends and distributions paid to
shareholders:
Dividends from net investment income:
Class A (98,662) (94,620)
Class B (489) (32)
Class C (104) -
Class F (68) -
Distributions from net realized
gain on investments:
Class A - (6,722)
Total dividends and distributions (99,323) (101,374)
Capital share transactions:
Proceeds from shares sold 604,544 353,333
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized 61,486 64,719
gain on investments
Cost of shares repurchased (346,414) (490,988)
Net increase (decrease) in net assets
resulting from capital share transactions 319,616 (72,936)
Total increase (decrease) in net assets 416,475 (83,148)
Net assets:
Beginning of year 1,834,018 1,917,166
End of year (including distributions in
excess of net investment income
and undistributed net investment
income: $18 and $36, respectively) $2,250,493 $1,834,018
See Notes to Financial Statements
The Tax-Exempt Bond Fund of America
Notes to financial statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt Bond Fund of America, Inc. (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks a high level of federally
tax-free current income, consistent with the preservation of capital, through a
diversified portfolio of municipal bonds.
The fund offers four classes of shares as described below:
Class A shares are sold with an initial sales charge of up to 3.75%.
Class B shares are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares
automatically convert to Class A shares after eight years.
Class C shares are sold without an initial sales charge but are subject to a
CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years.
Class F shares, which are sold exclusively through fee-based programs, are sold
without an initial sales charge or CDSC.
Holders of all classes of shares have equal pro rata rights to assets,
dividends, liquidation and other rights. Each class has identical voting
rights, except for exclusive rights to vote on matters affecting only its
class. Each class of shares may have different distribution, administrative
services and transfer agent fees and expenses. Differences in class-specific
expenses will result in the payment of different per-share dividends by each
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States of America. These principles require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is
a summary of the significant accounting policies consistently followed by the
fund in the preparation of its financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the fund's Board of
Directors.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or when-issued basis, the fund
will instruct the custodian to segregate liquid assets sufficient to meet its
payment obligations in these transactions. Interest income is recognized on an
accrual basis. Premiums and original issue discounts on securities are
amortized daily over the expected life of the security. Amortization of market
discounts on securities is recognized upon disposition.
On September 1, 2001, the fund will begin amortizing discounts daily over the
expected life of fixed-income securities to conform with a recent change in
generally accepted accounting principles for mutual funds. Adopting this
change will not impact the fund's net asset value but will result in changes to
the classification of certain amounts between interest income and realized and
unrealized gain/loss in the Statement of Operations. These adjustments will be
based on the fixed-income securities held by the fund on September 1, 2001.
Because the fund determines its required distributions under federal income tax
laws, adoption of this principle will not affect the amount of distributions
paid to shareholders.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly. Distributions paid to shareholders are
recorded on the ex-dividend date.
Class allocations - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily among the various
share classes based on their relative net asset values. Distribution expenses,
administrative services fees, certain transfer agent fees and other applicable
class-specific expenses are accrued daily and charged to the respective share
class.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are based on net investment
income and net realized gains determined on a tax basis and may differ from
such amounts for financial reporting purposes. In addition, the fiscal year in
which amounts are distributed may differ from the year in which the net
investment income is earned and the net gains are realized by the fund.
As of August 31, 2001, the cost of investment securities for book and federal
income tax reporting purposes was $2,121,305,000. Net unrealized appreciation
on investments aggregated $120,597,000; $133,371,000 related to appreciated
securities and $12,774,000 related to depreciated securities. For the year
ended August 31, 2001, the fund realized tax basis net capital gains of
$8,627,000. For the year ended August 31, 2001, the fund utilized the remaining
capital loss carryforward totaling $1,792,000 to offset, for tax purposes,
capital gains realized during the year up to such amount. In addition, the fund
has recognized, for tax purposes, capital losses totaling $917,000 which were
realized during the period November 1, 1999 through August 31, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $6,893,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
("CRMC") with which certain officers and Directors of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees accrued
daily, based on a series of rates beginning with 0.30% per annum of the first
$60 million of daily net assets decreasing to 0.16% of such assets in excess of
$3 billion. The agreement also provides for monthly fees, accrued daily, based
on a series of rates beginning with 3.00% per annum of the first $3,333,333 of
the fund's monthly gross investment income decreasing to 2.25% of such income
in excess of $8,333,333. For the year ended August 31, 2001, the management
services fee was equivalent to an annualized rate of 0.347% of average daily
net assets.
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution under which
it may finance activities primarily intended to sell fund shares, provided the
categories of expenses are approved in advance by the fund's Board of
Directors. The plans provide for annual expenses, based on average daily net
assets, of up to 0.25% for Class A shares, 1.00% for Class B and Class C
shares, and up to 0.50% for Class F shares.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate American Funds Distributors, Inc.("AFD"), the principal
underwriter of the fund's shares, for paying service fees to firms that have
entered into agreements with AFD for providing certain shareholder services.
The balance may be used for approved distribution expenses as follows:
CLASS A SHARES - Approved categories of expense include reimbursements to AFD
for commissions paid to dealers and wholesalers in respect of certain shares
sold without a sales charge. Those reimbursements are permitted for amounts
billed to the fund within the prior 15 months but only to the extent that the
overall 0.25% annual expense limit for Class A shares is not exceeded. For the
year ended August 31, 2001, aggregate distribution expenses were limited to
$4,915,000, or 0.25% of average daily net assets attributable to Class A
shares. As of August 31, 2001, unreimbursed expenses which remain subject to
reimbursement totaled $2,322,000.
CLASS B SHARES - In addition to service fees of 0.25%, approved categories of
expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to receive
such payments (as well as any contingent deferred sales charges payable in
respect of shares sold during the period) in order to finance the payment of
dealer commissions. For the year ended August 31, 2001, aggregate distribution
expenses were $118,000, or 1.00% of average daily net assets attributable to
Class B shares.
CLASS C SHARES - In addition to service fees of 0.25%, the Board of Directors
has approved the payment of 0.75% per annum of average daily net assets
attributable to Class C shares to AFD to compensate firms selling Class C
shares of the fund. For the period ended August 31, 2001, aggregate
distribution expenses were $27,000, or 1.00% of average daily net assets
attributable to Class C shares.
CLASS F SHARES - The plan has an expense limit of 0.50%. However, the Board of
Directors has presently approved expenses under the plan of 0.25% per annum of
average daily net assets attributable to Class F shares. For the period ended
August 31, 2001, aggregate distribution expenses were $4,000, or 0.25% of
average daily net assets attributable to Class F shares.
As of August 31, 2001, aggregate distribution expenses payable to AFD for all
share classes were $1,031,000.
AFD received $947,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the fund's Class A shares for the year ended
August 31, 2001. Such sales charges are not an expense of the fund and, hence,
are not reflected in the accompanying Statement of Operations.
TRANSFER AGENT FEE - A fee of $492,000 was incurred during the year ended
August 31, 2001, pursuant to an agreement with American Funds Service Company
("AFS"), the transfer agent for the fund. As of August 31, 2001, aggregate
transfer agent fees payable to AFS for Class A and Class B shares were $48,000.
ADMINISTRATIVE SERVICES FEES - The fund has an administrative services
agreement with CRMC for Class C and Class F shares. Pursuant to this agreement,
CRMC provides transfer agency and other related shareholder services. CRMC may
contract with third parties to perform these services. Under the agreement, the
fund pays CRMC a fee equal to 0.15% per annum of average daily net assets of
Class C and Class F shares, plus amounts payable for certain transfer agency
services according to a specified schedule. For the period ended August 31,
2001, total fees under the agreement were $9,000. As of August 31, 2001,
aggregate administrative services fees payable to CRMC for Class C and Class F
shares were $3,000.
DEFERRED DIRECTORS' FEES - Since the adoption of the deferred compensation plan
in 1993, Directors who are unaffiliated with CRMC may elect to defer the
receipt of part or all of their compensation. Deferred compensation amounts,
which remain in the fund, are treated as if invested in shares of the fund or
other American Funds. These amounts represent general, unsecured liabilities of
the fund and vary according to the total returns of the selected funds. As of
August 31, 2001, the cumulative amount of these liabilities was $55,000.
Directors' fees on the Statement of Operations include the current fees (either
paid in cash or deferred) and the net increase or decrease in the value of
deferred compensation.
AFFILIATED DIRECTORS AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Directors are or may be considered to be
affiliated with CRMC, AFS and AFD. No such persons received any remuneration
directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $676,756,000 and $392,114,000, respectively, during
the year ended August 31, 2001.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
For the year ended August 31, 2001, the custodian fee of $37,000 includes
$13,000 that was paid by these credits rather than in cash.
For the year ended August 31, 2001, the fund reclassified $352,000 from
undistributed net realized gains to undistributed net investment income to
reflect permanent differences between book and tax reporting.
As of August 31, 2001, net assets consisted of the following:
[Download Table]
(dollars in thousands)
Capital paid in on shares of capital stock $2,123,438
Distributions in excess of net investment income (18)
Undistributed net realized gain 6,476
Net unrealized appreciation 120,597
Net assets $2,250,493
Capital share transactions in the fund were as follows:
[Enlarge/Download Table]
Year ended August 31, Year ended August 31,
Amount 2001 Amount 2000
(000) Shares (000) Shares
Class A Shares:
Sold $550,783 45,771,317 $349,973 30,217,094
Reinvestment of dividends and distributions 61,021 5,082,782 64,695 5,585,672
Repurchased (335,993) (28,026,829) (490,875) (42,438,287)
Net increase (decrease) in Class A 275,811 22,827,270 (76,207) (6,635,521)
Class B Shares: (1)
Sold 23,399 1,941,478 3,360 290,305
Reinvestment of dividends and distributions 340 28,097 24 2,086
Repurchased (1,814) (150,785) (113) (9,811)
Net increase in Class B 21,925 1,818,790 3,271 282,580
Class C Shares: (2)
Sold 14,787 1,217,593 - -
Reinvestment of dividends and distributions 74 6,059 - -
Repurchased (136) (11,192) - -
Net increase in Class C 14,725 1,212,460 - -
Class F Shares: (2)
Sold 15,575 1,285,726 - -
Reinvestment of dividends and distributions 51 4,161 - -
Repurchased (8,471) (698,807) - -
Net increase in Class F 7,155 591,080 - -
Total net increase (decrease) in fund $319,616 26,449,600 $(72,936) (6,352,941)
(1) Class B shares were not offered
before March 15, 2000.
(2) Class C and Class F shares were
not offered before March 15, 2001.
[Download Table]
Per-share data and ratios
Class A
Year ended August 31
2001 2000 1999
Net asset value, beginning of year $11.81 $11.86 $12.60
Income from investment operations :
Net investment income .60 (1) .60 (1) .59
Net gains (losses) on securities .57 (1) (.01) (1) (.55)
(both realized and unrealized)
Total from investment operations 1.17 .59 .04
Less distributions :
Dividends (from net investment income) (.60) (.60) (.59)
Distributions (from capital gains) .00 (.04) (.19)
Total distributions (.60) (.64) (.78)
Net asset value, end of year $12.38 $11.81 $11.86
Total return (2) 10.22% 5.27% .22%
Ratios/supplemental data:
Net assets, end of year (in millions) $2,202 $1,831 $1,917
Ratio of expenses to average net assets .66% .67% .65%
Ratio of net income to average net assets 5.00% 5.22% 4.78%
Year ended August 31
1998 1997
Net asset value, beginning of year $12.27 $11.86
Income from investment operations :
Net investment income .62 .64
Net gains (losses) on securities .37 .45
(both realized and unrealized)
Total from investment operations .99 1.09
Less distributions :
Dividends (from net investment income) (.62) (.64)
Distributions (from capital gains) (.04) (.04)
Total distributions (.66) (.68)
Net asset value, end of year $12.60 $12.27
Total return (2) 8.26% 9.39%
Ratios/supplemental data:
Net assets, end of year (in millions) $1,795 $1,593
Ratio of expenses to average net assets .66% .68%
Ratio of net income to average net assets 4.98% 5.27%
Class B
Year ended March 15 to
August 31, August 31,
2001 2000 (3)
Net asset value, beginning of period $11.81 $11.50
Income from investment operations :
Net investment income (1) .52 .21
Net gains on securities .57 .34
(both realized and unrealized) (1)
Total from investment operations 1.09 .55
Less distributions :
Dividends (from net investment income) (.52) (.24)
Distributions (from capital gains) .00 .00
Total distributions (.52) (.24)
Net asset value, end of period $12.38 $11.81
Total return (2) 9.45% 4.88%
Ratios/supplemental data:
Net assets, end of period (in millions) $26 $3
Ratio of expenses to average net assets 1.40% .64%
Ratio of net income to average net assets 4.06% 1.99%
Class C Class F
March 15 to March 15 to
August 31, August 31,
2001 (3) 2001 (3)
Net asset value, beginning of period $12.10 $12.10
Income from investment operations :
Net investment income (1) .21 .24
Net gains on securities .29 .29
(both realized and unrealized) (1)
Total from investment operations .50 .53
Less distributions :
Dividends (from net investment income) (.22) (.25)
Distributions (from capital gains) .00 .00
Total distributions (.22) (.25)
Net asset value, end of period $12.38 $12.38
Total return (2) 4.20% 4.45%
Ratios/supplemental data:
Net assets, end of period (in millions) $15 $7
Ratio of expenses to average net assets .73% .40%
Ratio of net income to average net assets 1.77% 2.11%
Supplemental data - all classes
Year ended August 31
2001 2000
Portfolio turnover rate 22.41% 28.64%
1999 1998 1997
Portfolio turnover rate 14.56% 23.19% 14.39%
1) Based on average shares outstanding.
2) Total returns exclude all sales
charges, including contingent
deferred sales charges.
3) Based on operations for the
period shown and, accordingly,
not representative of a full year
(unless otherwise noted).
Report of Independent Accountants
To the Board of Directors and Shareholders of The Tax-Exempt Bond Fund of
America, Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Tax-Exempt Bond Fund of
America, Inc.(the "Fund") at August 31, 2001, the results of its operations,
the changes in its net assets and the per-share data and ratios for each of the
periods presented in conformity with accounting principles generally accepted
in the United States of America. These financial statements and per-share data
and ratios (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 audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, 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 audits, which included confirmation
of securities at August 31, 2001 by correspondence with the custodian, provide
a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
September 28, 2001
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. For purposes of computing this
exclusion, 99.7% of the dividends paid from net investment income qualify as
exempt-interest dividends. Any distributions paid from realized net short-term
or long-term capital gains are not exempt from federal taxation.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2002 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2001 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
[Download Table]
Investment Portfolio, July 31, 2001
[begin pie chart]
Quality ratings*
AAA 8.81%
AA 4.82%
A 5.89%
BBB 26.23%
BB 29.52%
B 18.86%
CCC or less 0.06%
Cash & equivalents 5.81%
* Bond ratings reflect those of a credit rating agency;
if ratings are not available, they are assigned by the
fund's research analysts.
[end pie chart]
Principal Market
Amount Value
(000) (000)
Fixed-Income Securities - 94.19%
Alaska - 0.31%
Northern Tobacco Securitization Corp., Tobacco Settlement $2,000 $ 2,076
Asset-Backed Bonds, Series 2000, 6.20% 2022
Arizona - 0.60%
Industrial Dev. Auth. of the County of Navajo, Industrial 4,100 3,996
Dev. Rev. Bonds (Stone Container Corp. Project),
Series 1997, AMT, 7.20% 2027
California - 8.84%
Pollution Control Fncg. Auth., Solid Waste Disposal Ref. 6,000 5,935
Rev. Bonds (USA Waste Services, Inc. Project), Series
1998A, AMT, 5.10% 2018 (Put 2008)
Rural Home Mortgage Fin. Auth., Single Family Mortgage 385 414
Rev. Bonds (Mortgage-Backed Securities Program),
1995 Series B, AMT, 7.75% 2026
Statewide Communities Dev. Auth., Apartment Dev. Rev.
Ref. Bonds (Irvine Apartment Communities, LP):
Series 1998A-1, AMT, 5.05% 2025 (Put 2008) 7,000 7,043
Series 1998A-3, 5.10% 2025 (Put 2010) 3,000 3,027
City of Antioch, Public Fncg. Auth., 1998 Reassessment 1,430 1,525
Rev. Bonds, Subordinated Series B, 5.80% 2011
City of Chino Hills, Community Facs.:
Dist. No. 9 (Rincon Village Area), Special Tax Bonds, 3,410 3,525
Series 1998, 6.45% 2023
Dist. No. 10 (Fairfield Ranch), Special Tax Bonds, 1,000 1,058
6.95% 2030
County of El Dorado, Community Facs. Dist. No. 1992-1 995 1,025
(El Dorado Hills Dev.), Series 1999 Special Tax Bonds,
6.125% 2016
City of Fontana, Community Facs. Dist. No. 12 (Sierra 1,000 1,061
Lakes), Special Tax Bonds, Series 1999, 6.50% 2015
City of Irvine, Assessment Dist. No. 94-13 (Oak Creek), 1,000 1,017
Limited Obligation Improvement Bonds, Group Two,
5.875% 2017
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium
of the Pacific Project), 1995 Series A:
6.10% 2010 (Preref. 2005) 1,000 1,121
6.125% 2015 (Preref. 2005) 2,500 2,806
6.125% 2015, MBIA Insured (Preref. 2005) 1,000 1,122
6.125% 2023 (Preref. 2005) 1,500 1,683
6.125% 2023, MBIA Insured (Preref. 2005) 2,500 2,806
County of Los Angeles, Capital Asset Leasing Corp., 970 1,006
Cert. of Part. (Marina del Rey), 1993 Series A,
6.25% 2003
City of Los Angeles, Multi-family Housing Rev. Bonds 500 526
(GNMA Collateralized - Ridgecroft Apartments Project),
Series 1997E, AMT, 6.00% 2017
Regional Airports Improvement Corp., Facs. Sublease Ref. 2,500 2,256
Rev. Bonds, Airport Terminal 6 Facs. (Los Angeles
International Airport), Series 1999, AMT, 5.65% 2017
Pleasanton Joint Powers Fncg. Auth., Subordinate 1,805 1,852
Reassessment Rev. Bonds, 1993 Series B, 6.125% 2002
City of Poway, Community Facs. Dist. No. 88-1 (Parkway 2,800 3,049
Business Centre), Special Tax Ref. Bonds, Series 1998,
6.75% 2015
County of Sacramento, Laguna Creek Ranch/Elliott Ranch
Community Facs. Dist. No. 1, Improvement Area No. 2
Special Tax Ref. Bonds (Elliott Ranch):
6.125% 2014 250 266
6.30% 2021 500 521
County of San Diego, Reassessment Dist. No. 97-1
(4-S Ranch), Limited Obligation Improvement Bonds:
6.00% 2009 995 1,026
6.25% 2012 995 1,026
Redev. Agcy. of the City and County of San Francisco, 1,000 950
Residential Fac. Rev. Bonds (Coventry Park Project),
Series 1996A, AMT, 8.50% 2026
Community Facs. Dist. No. 99-1 (Talega) of the Santa 2,390 2,510
Margarita Water Dist., Series 1999 Special Tax Bonds,
6.10% 2014
South Tahoe Joint Powers Fncg. Auth., (South Tahoe
Redev. Project Area No. 1):
Series 1995B, 6.25% 2020 1,000 1,033
Bond Anticipation Notes:
Series 1999A, 7.30% 2007 5,500 5,748
Series 1999B, 7.30% 2007 1,000 1,045
Community Facs. Dist. No. 88-12 of the City of Temecula 940 965
(Ynez Corridor), Special Tax Ref. Bonds, 1998 Series A,
5.35% 2009
Colorado - 5.25%
Housing and Fin. Auth., Single Family Program Senior
Bonds, AMT:
1995 Series A, 8.00% 2025 495 529
1995 Series B, 7.90% 2025 370 396
1997 Series B-2, 7.00% 2026 740 781
City and County of Denver, Airport System Rev. Bonds, 885 936
Series 1992C, AMT, 6.75% 2013
Eaglebend Affordable Housing Corp., Multi-family Housing
Project Rev. Ref. Bonds:
Series 1997A:
6.20% 2012 1,000 1,006
6.45% 2021 2,000 1,978
EagleBend Dowd Affordable Housing Corp., Multi-family
Housing Project Rev. Bonds:
Series 1998A:
6.53% 2024 1,665 1,642
6.53% 2029 1,320 1,292
6.63% 2039 2,950 2,872
Eagle County, Bachelor Gulch Metropolitan Dist., 3,500 3,664
Limited Tax G.O. Bonds, Series 1999, 6.70% 2019
E-470 Public Highway Auth. Senior Rev. Bonds, 7,500 667
Series 2000B (Capital Appreciation Bonds), 0% 2034
Lincoln Park Metropolitan Dist. (Douglas County), 3,000 3,029
G.O. Limited Tax Ref. and Improvement Bond,
Series 2001, 7.75% 2026
Northwest Parkway Public Highway Auth., Rev. Bonds, 4,500 4,535
Series 2001D, 7.125% 2041
Rampart Range Metropolitan Dist. No. 1 (City of Lone 7,660 7,554
Tree), Rev. Bonds (Rampart Range Metropolitan Dist.
No. 2 Project), Series 2001, 7.75% 2026
Vista Ridge Metropolitan Dist. (Weld County), 4,110 4,133
Limited Tax G.O. Bonds, Series 2001, 7.50% 2031
Connecticut - 2.59%
Dev. Auth., Pollution Control Rev. Ref. Bonds (The
Connecticut Light and Power Co. Project):
Series 1993A, 5.85% 2028 1,375 1,390
Series 1993B, AMT, 5.95% 2028 1,500 1,507
Health and Educational Fac. Auth., Rev. Bonds, 1,000 1,031
University of Hartford Issue, Series D, 6.75% 2012
Mashantucket (Western) Pequot Tribe,
Special Rev. Bonds: /1/
1996 Series A:
6.375% 2004 (Escrowed to Maturity) 500 547
6.40% 2011 (Preref. 2007) 3,470 4,004
6.40% 2011 3,025 3,264
5.50% 2028 1,500 1,437
1997 Series B:
5.60% 2009 1,000 1,055
5.75% 2018 3,000 3,017
Delaware - 0.15%
Econ. Dev. Auth., First Mortgage Rev. Bonds (Peninsula
United Methodist Homes, Inc. Issue), Series 1997A:
6.00% 2008 500 510
6.10% 2010 500 507
District of Columbia - 0.90%
Hospital Rev. Ref. Bonds (Washington Hospital Center 1,200 1,261
Issue), Series 1992A, 7.00% 2005 (Preref. 2002)
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington
Hospital Center Projects):
Series 2001B, 6.625% 2031 (Put 2005) 1,000 1,045
Series 2001C, 6.80% 2031 (Put 2006) 1,500 1,582
Series 2001D, 6.875% 2031 (Put 2007) 2,000 2,124
Florida - 11.74%
Arbor Greene Community Dev. Dist. (City of Tampa, 800 817
Hillsborough County), Special Assessment Rev. Bonds,
Series 2000, 6.50% 2007
Championsgate Community Dev. Dist., Capital Improvement 2,850 2,661
Rev. Bonds, Series 1998A, 6.25% 2020
The Crossings at Fleming Island Community Dev.
Dist. (Clay County):
Special Assessment Bonds, Series 1995, 8.25% 4,500 5,268
2016 (Preref. 2005)
Special Assessment Ref. Bonds, Series 2000C, 7.10% 2030 5,000 5,252
The City of Daytona Beach, Capital Improvement Rev. 7,875 7,900
Bond Anticipation Notes (Ocean Walk Project),
Series A, 6.875% 2004
Fleming Island Plantation Community Dev. Dist. 1,000 1,068
(Clay County), Series 2000B, 7.375% 2031
The Groves Community Dev. Dist. (Pasco County), 3,585 3,624
Special Assessment Rev. Bonds, Series 2000B, 7.625% 2008
Harbor Bay Community Dev. Dist. (Hillsborough County), 4,000 3,986
Capital Improvement Rev. Bond, Series 2001B, 6.35% 2010
Heritage Isles Community Dev. Dist. (Hillsborough 2,210 2,212
County), Special Assessment Rev. Bonds, Series 1998A,
5.75% 2005
Heritage Palms Community Dev. Dist. (Fort Myers),
Capital Improvement Rev. Bonds:
Series 1998, 5.40% 2003 1,195 1,190
Series 1999, 6.25% 2004 1,485 1,499
Heritage Pines Community Dev. Dist. (Pasco County), 850 840
Capital Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Heritage Springs Community Dev. Dist. (Pasco County), 555 559
Capital Improvement Rev. Bonds, Series 1999B, 6.25% 2005
Lake Ashton Community Dev. Dist. (City of Lake Wales,
Polk County), Capital Improvement Rev. Bonds:
Series 2001A, 7.40% 2032 1,000 1,014
Series 2001B, 6.40% 2011 1,000 1,007
Lake Powell Residential Golf Community Dev. Dist. (Bay 7,000 7,083
County), Special Assessment Rev. Bonds, Series 2000B,
7.00% 2010
Lee County Industrial Dev. Auth., Healthcare Facs.
Rev. Bonds:
Series 1997A (Cypress Cove at Healthpark Florida, 2,500 2,255
Inc. Project), 6.25% 2017
Series 1999A (Shell Point/Alliance Obligated Group,
Shell Point Village Project):
5.25% 2007 1,000 992
5.50% 2009 1,000 988
5.75% 2011 500 496
5.75% 2013 1,410 1,379
5.75% 2015 500 480
5.50% 2021 3,800 3,302
Marshall Creek Community Dev. Dist., Special Assessment 3,020 3,155
Bonds, Series 2000A, 7.65% 2032
Meadow Pointe II, Community Dev. Dist. (Pasco County), 3,485 3,489
Capital Improvement Rev. Bonds, Series 1998B, 5.50% 2005
Northern Palm Beach County Improvement Dist.,
Water Control and Improvement Bonds:
Unit of Dev. No. 9A, Series 1996A:
6.80% 2006 790 850
7.30% 2027 1,500 1,607
Unit of Dev. No. 9B, Series 1999, 5.85% 2013 1,000 1,018
North Springs Improvement Dist. Special Assessment Bonds,
Parkland Isles Project:
Series 1997A, 7.00% 2019 1,000 1,052
Series 1997B, 6.25% 2005 630 635
Ocean Highway and Port Auth., Solid Waste/Pollution 1,305 1,281
Control Rev. Ref. Bonds, Series 1996 (Jefferson Smurfit
Corp. (U.S.) Project), 6.50% 2006
City of Orlando, Special Assessment Rev. Bonds (Conroy 4,250 3,987
Road Interchange Project), Series 1998A, 5.80% 2026
River Ridge Community Dev. Dist. (Lee County), Capital 2,305 2,317
Improvement Rev. Bonds, Series 1998, 5.75% 2008
Stoneybrook West Community Dev. Dist. (City of Winter 1,375 1,403
Garden, Orange County), Special Assessment Rev. Bonds,
Series 2000B, 6.45% 2010
Waterlefe Community Dev. Dist. (Manatee County), 1,600 1,607
Capital Improvement Rev. Bonds, Series 2001B, 6.25% 2010
Idaho - 1.20%
Housing and Fin. Association, AMT:
Single Family Mortgage:
1998 Series B-2, 5.20% 2011 810 832
1999 Series B-2, 5.00% 2013 930 906
1999 Series D-3, 5.15% 2013 965 945
1999 Series G-2, 5.75% 2014 480 504
2001 Series B-III, 5.75% 2020 2,760 2,815
Single Family Mortgage Subordinate Bonds:
1997 Series H-2, 5.40% 2010 1,195 1,229
1997 Series I-2, 5.55% 2010 760 788
Illinois - 6.36%
Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste 3,035 2,891
Management, Inc. Project), Series 1997, AMT, 5.05% 2010
Health Facs. Auth., Rev. Ref. Bonds:
Advocate Health Care Network, Series 1997A:
5.70% 2011 500 534
5.80% 2016 2,000 2,076
Alexian Brothers Health System, Series 1999, FSA 1,000 977
Insured, 5.125% 2028
Centegra Health System, Series 1998:
5.50% 2008 1,000 1,036
5.25% 2014 1,500 1,463
Edward Hospital Project, Series 1993A, 6.00% 2019 1,000 1,016
Obligated Group, Series 2001A, FSA Insured, 5.50% 2017 1,500 1,563
Fairview Obligated Group Project:
1992 Series A, 9.50% 2022 (Preref. 2002) 2,715 2,946
1995 Series A:
6.25% 2003 1,245 1,271
7.40% 2023 3,130 3,125
Friendship Village of Schaumburg, Series 1997A, 1,500 1,248
5.25% 2018
Lutheran Senior Ministries Obligated Group - Lutheran 3,000 2,950
Hillside Village Project, Series 2001A, 7.375% 2031
OSF Healthcare System, Series 1999, 6.25% 2019 1,500 1,576
City of Chicago:
G.O. Bonds (Emergency Telephone System), 1,000 1,043
Ref. Series 1999, FGIC Insured, 5.25% 2020
Chicago O'Hare International Airport, Special Facs. 9,375 8,582
Rev. Ref. Bonds (United Air Lines, Inc. Project),
Series 1999B, AMT, 5.20% 2011
School Reform Board of Trustees of the Board of 1,000 995
Education of the City of Chicago, Unlimited Tax G.O.
Bonds (Dedicated Tax Rev.), Series 1997A, AMBAC Insured,
5.25% 2030
Village of Montgomery, Kane and Kendall Counties, 4,000 4,053
Special Assessment Improvement Bonds, Series 2001
(Lakewood Creek Project), 7.75% 2030
Village of Robbins, Cook County, Resource Recovery
Rev. Bonds (Robbins Resource Recovery Partners,
L.P. Project), AMT:
Series 1999A, 8.375% 2016 /2/ 3,950 296
Series 1999B, 8.375% 2016 /2/ 1,545 116
Series 1999C, 7.25% 2009 569 435
Series 1999C, 7.25% 2024 2,650 1,736
Series 1999D, 0% 2009 1,230 479
Indiana - 0.94%
Dev. Fin. Auth. Rev. Ref. Bonds, Exempt Fac.-Inland 1,000 541
Steel, 5.75% 2011
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity 2,805 2,841
Obligated Group), Series 1999D, 5.25% 2016
City of East Chicago, Pollution Control Rev. Ref. Bonds, 2,000 1,283
Inland Steel Co. Project No. 11, Series 1994, 7.125% 2007
The Indianapolis Local Public Improvement Bond Bank, 4,500 1,577
Series 1999 E Capital Appreciation Bonds,
AMBAC Insured, 0% 2021
Iowa - 0.32%
Fin. Auth., Ref. Rev. Bonds (Trinity Health Credit 2,000 2,162
Group), Series 2000B, AMBAC Insured, 6.00% 2027
Kentucky - 1.90%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare, Inc.),
Series 2000, MBIA Insured:
6.50% 2020 2,000 2,074
6.625% 2028 1,000 1,041
Hospital System Ref. and Improvement Rev. Bonds,
Series 1997 (Appalachian Regional Healthcare,
Inc. Project):
5.60% 2008 1,000 887
5.80% 2012 1,000 831
5.85% 2017 7,000 5,472
City of Ashland, Sewage and Solid Waste Rev. Bonds, 2,200 2,335
Series 1995 (Ashland Inc. Project), AMT, 7.125% 2022
Louisiana - 1.61%
Health Education Auth., Rev. Bonds (Lambeth
House Project):
Series 1996, 9.00% 2026 (Prefef. 2006) 1,850 2,342
Series 1998A, 6.20% 2028 5,000 4,267
Parish of West Feliciana, Pollution Control Rev.
Ref. Bonds:
(Entergy Gulf States, Inc. Project), Series 1999A, 2,500 2,561
5.65% 2028 (Put 2004)
(Gulf States Utilities Co. Project), Series 1984-II, 1,500 1,557
7.70% 2014
Maine - 0.45%
Health and Higher Educational Facs. Auth., Rev. Bonds,
Piper Shores Issue, Series 1999A:
7.50% 2019 1,000 1,007
7.55% 2029 2,000 2,010
Maryland - 1.17%
Anne Arundel County, Special Obligation Bonds (Arundel 1,000 1,075
Mills Project), Series 1999, 7.10% 2029
Frederick County, Special Obligation Bonds (Urbana 3,000 3,022
Community Dev. Auth.), Series 1998, 6.625% 2025
Housing Opportunities Commission of Montgomery County,
Multi-family Rev. Bonds (Strathmore Court at White
Flint), 1994 Issue A-2:
7.50% 2024 1,000 1,048
7.50% 2027 950 995
Housing Auth. of Prince George's County, Mortgage 1,000 1,027
Rev. Bonds, Series 1997A (GNMA Collateralized - Langley
Gardens Apartments Project), 5.75% 2029
Prince George's County (Dimensions Health Corp. Issue), 1,250 630
Project and Ref. Rev. Bonds, Series 1994, 5.375% 2014
Massachusetts - 2.48%
Dev. Fin. Agcy., Resource Recovery Rev. Bonds (Waste 1,000 1,095
Management, Inc. Project), Series 1999B, AMT,
6.90% 2029 (Put 2009)
Health and Educational Facs. Auth., Rev. Bonds, 1,000 1,083
Partners HealthCare System Issue, Series C, 6.00% 2015
Industrial Fin. Agcy.:
Resource Recovery Rev. Ref. Bonds (Ogden Haverhill
Project), Series 1998A, AMT:
5.20% 2008 1,300 1,320
5.30% 2009 6,300 6,356
Rev. Bonds, Edgewood Retirement Community Project, 5,400 6,677
Series 1995A, 9.00% 2025 (Preref. 2005)
Michigan - 7.10%
Hospital Fin. Auth., Hospital Rev. and Ref. Bonds:
The Detroit Medical Center Obligated Group, Series 1998A:
5.125% 2018 2,550 2,150
5.25% 2028 1,500 1,186
Genesys Health System Obligated Group, Series 1995A:
8.00% 2005 (Escrowed to Maturity) 2,000 2,351
8.10% 2013 (Preref. 2005) 1,100 1,316
7.50% 2027 (Preref. 2005) 2,265 2,619
Hackley Hospital Obligated Group, Series 1998A, 1,000 948
5.30% 2013
Henry Ford Health System, Series 1995A, 5.25% 2025 2,000 1,940
Pontiac Osteopathic, Series 1994A:
5.375% 2006 2,550 2,427
6.00% 2014 2,500 2,254
6.00% 2024 1,000 837
Sinai Hospital of Greater Detroit, Series 1995:
6.00% 2008 1,000 994
6.625% 2016 500 504
Housing Dev. Auth., Single-Family Mortgage Rev. Bonds, 2,110 2,129
2001 Series A, AMT, MBIA Insured, 5.30% 2016
Municipal Bond Auth., Public School Academy Facs.
Program Rev. Bonds (Detroit Academy of Arts and
Sciences Project), Series 2001A:
7.90% 2021 3,400 3,438
8.00% 2031 2,300 2,326
Strategic Fund Limited Obligation Rev. Bonds (United 4,250 4,128
Waste Systems, Inc. Project), Series 1995, 5.20% 2010
City of Detroit Limited Tax G.O. Bonds, Series 1995 A, 1,145 1,240
6.40% 2005
City of Flint, Hospital Building Auth. (Hurley
Medical Center):
Rev. Ref. Bonds, Series 1998A:
5.00% 2008 2,030 1,940
5.25% 2016 3,035 2,674
Rev. Rental Bonds, Series 1998B:
5.375% 2018 1,000 858
5.375% 2028 3,250 2,630
The Econ. Dev. Corp. of the County of Midland, 6,305 6,468
Subordinate Pollution Control Limited Obligation Rev.
Ref. Bonds (Midland Cogeneration Project), Series B,
AMT, 6.875% 2009
Minnesota - 1.66%
City of Minneapolis, G.O. Various Purpose Bonds, 1,100 1,109
Series 2000, 5.00% 2001
Minneapolis-St. Paul Metropolitan Airports Commission, 2,000 1,933
Special Facs. Rev. Bonds (Northwest Airlines, Inc.
Project), Series 2001A, AMT, 7.00% 2025
Port Auth. of the City of Saint Paul, Hotel Fac. Rev. 8,000 8,033
Bonds (Radisson Kellogg Project), Series 1999-2,
7.375% 2029
Nebraska - 0.58%
City of Kearney, Industrial Dev. Rev. Bonds (The Great
Platte River Road Memorial Foundation Project),
Series 1998:
6.75% 2023 2,000 1,100
6.75% 2028 5,000 2,747
Nevada - 4.99%
Housing Division, Single Family Mortgage Bonds:
1999 Series B-1, 4.95% 2012 565 564
1999 Series D-2, AMT, 5.90% 2013 1,340 1,431
Clark County:
Special Improvement Dist. No. 121 (Southern Highlands
Area), Local Improvement Bonds, Series 1999:
7.00% 2009 2,500 2,669
7.50% 2019 9,040 9,624
Special Improvement Dist. No. 132 (Summerlin South
Area (Villages 15A and 18)), Local Improvement Bonds,
Series 2001:
6.40% 2014 1,255 1,264
6.50% 2015 1,000 1,007
6.875% 2021 2,550 2,590
City of Henderson:
Health Fac. Rev. Bonds (Catholic Healthcare West), 2,000 1,712
1998 Series A, 5.375% 2026
Local Improvement Dist.:
No. T-4C (Green Valley Properties), Limited Obligation
Ref. Bonds, 1999 Series A:
5.75% 2013 1,705 1,669
5.90% 2018 1,000 968
No. T-10 (Seven Hills) Limited Obligation
Improvement Bonds:
6.90% 2006 955 984
7.50% 2015 5,210 5,366
City of Las Vegas, Special Improvement Dist. No. 808
(Summerlin Area), Local Improvement Bonds, Series 2001:
6.40% 2015 1,395 1,405
6.75% 2021 2,000 2,031
New Hampshire - 0.40%
Business Fin. Auth., 6% Pollution Control Ref. Rev. 2,000 2,003
Bonds (Public Service Co. of New Hampshire Project -
1992 Tax-Exempt Series D), AMT, 6.00% 2021
Housing Fin. Auth., Single Family Mortgage Acquisition 650 682
Rev. Bonds, 1997 Series D, AMT, 5.60% 2012
New Jersey - 4.19%
Econ. Dev. Auth.:
Econ. Dev. Bonds, Kapkowski Road Landfill Reclamation 4,750 4,897
Improvement Dist. Project (City of Elizabeth),
Series 1998A, 6.375% 2031
First Mortgage Rev. Fixed-Rate Bonds (Fellowship 2,000 2,398
Village Project), Series 1995A, 9.25% 2025 (Preref. 2005)
First Mortgage Rev. Ref. Bonds (Fellowship Village
Project):
Series 1998A:
5.10% 2008 1,250 1,217
5.20% 2009 1,000 967
5.30% 2010 1,000 963
Tax-Exempt Term Bonds:
5.50% 2018 1,000 914
5.50% 2025 1,000 883
First Mortgage Rev. Bonds (Fellowship Village Project):
Series 1998C:
5.50% 2018 1,000 909
5.50% 2028 1,500 1,312
Retirement Community Rev. Bonds (Seabrook Village, 9,000 9,224
Inc. Fac.), Series 2000 A, 8.25% 2030
Winchester Gardens at Ward Homestead Project,
Series 1996A:
8.50% 2016 1,000 1,070
8.625% 2025 3,000 3,211
New Mexico - 1.18%
Dona Ana County, Improvement Dist. Bonds, (Santa Teresa
Improvement Dist.):
Airport Road Business Center, Phase III, 2,215 2,240
Series 2001A 8.375% 2021
Border Industrial Park, Phase I & II, 5,560 5,620
Series 2001B 8.875% 2021
New York - 4.47%
Dormitory Auth.:
Cert. of Part., on behalf of the City University of 1,475 1,631
New York, as Lessee (John Jay College of Criminal
Justice Project Ref.), 6.00% 2006
Mental Health Services Fac. Improvement Rev. Bonds, 1,930 2,032
Series 1998C, 5.00% 2010
Housing Fin. Agcy.:
Health Facs. Rev. Bonds (New York City), 1,000 1,098
1996 Series A Ref., 6.00% 2006
Service Contract Obligation Rev. Ref. Bonds, 800 851
1997 Series C, 5.10% 2009
City of New York:
G.O. Bonds, Fiscal 2001 Series F:
5.00% 2008 2,000 2,118
5.00% 2009 2,510 2,655
Industrial Dev. Agcy., AMT:
Industrial Dev. Rev. Bonds (Brooklyn Navy Yard 2,000 2,092
Cogeneration Partners, L.P. Project), Series 1997,
6.20% 2022
Solid Waste Disposal Rev. Bonds (1995 Visy Paper (NY), 2,300 2,353
Inc. Project), 7.55% 2005
Onondaga County Industrial Dev. Agcy., Solid Waste
Disposal Fac. Rev. Ref. Bonds (Solvay Paperboard
LLC Project), Series 1998, AMT:
6.80% 2014 1,500 1,530
7.00% 2030 5,500 5,596
Port Auth. of New York and New Jersey, Special Project
Bonds, Series 4, AMT, KIAC Partners Project:
7.00% 2007 1,500 1,589
6.75% 2011 4,000 4,266
Suffolk County Industrial Dev. Agcy., Continuing 2,000 2,009
Care Retirement Community Rev. Bonds (Peconic Landing at
Southhold, Inc. Project), Series 2000, 8.00% 2030
North Carolina - 2.45%
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Ref. Series 1993B:
7.25% 2007 1,500 1,686
7.00% 2008 1,000 1,124
6.125% 2009 3,950 4,260
6.00% 2022 1,000 1,032
6.00% 2026 1,000 1,029
Ref. Series 1999A, 5.20% 2010 2,000 2,042
Ref. Series 1999B:
5.55% 2014 1,000 1,017
5.70% 2017 2,000 2,018
Series 1999 D, 6.75% 2026 1,000 1,076
Municipal Power Agcy. Number 1, Catawba Electric Rev. 1,000 1,064
Bonds, Series 1999B, 6.50% 2020
North Dakota - 0.13%
Housing Fin. Agcy., Rev. Bonds, 1998 Series A, AMT, 910 900
5.25% 2018
Ohio - 1.58%
The Student Loan Funding Corp., Cincinnati, Student Loan 145 146
Rev. Ref. Bonds, Series 1991A, AMT, 7.20% 2003
Water Dev. Auth., Solid Waste Disposal Rev. Bonds (Bay 4,000 3,447
Shore Power Project), Series 1998 A, AMT, 5.875% 2020
City of Cleveland, Airport Special Rev. Bonds
(Continental Airlines, Inc. Project):
Series 1998, 5.375% 2027 1,000 801
Series 1999, AMT, 5.70% 2019 1,500 1,314
County of Montgomery, Hospital Facs. Rev. Bonds
(Kettering Medical Center Network Obligated Group),
Series 1999:
6.75% 2018 1,000 1,036
6.75% 2022 1,000 1,018
County of Richland, Hospital Fac. Rev. Improvement Bonds
(MedCentral Health System Obligated Group), Series 2000B:
6.375% 2022 1,000 1,054
6.375% 2030 1,750 1,737
Oklahoma - 1.46%
Langston Econ. Dev. Auth., Student Housing Rev. Bonds
(Langston Community Dev. Corp. Project), Series 2000A:
7.40% 2017 2,710 2,679
7.75% 2030 6,050 6,061
Trustees of the Tulsa Municipal Airport Trust, 1,000 1,006
Rev. Bonds, Ref. Series 2001B, AMT, 5.65% 2035 (Put 2008)
Oregon - 1.77%
City of Klamath Falls (Klamath Cogeneration Project),
Series 1999:
5.75% 2013 2,000 1,945
5.875% 2016 4,500 4,337
6.00% 2025 5,750 5,520
Pennsylvania - 3.40%
Health Care Fac. Rev. Bonds (Redstone Presbyterian 4,000 4,129
SeniorCare Obligated Group), Fixed Rate Rev. Bonds,
Series 2000B, 8.125% 2030
Housing Fin. Agcy., Rev. Bonds, Single Housing Family 1,400 1,448
Mortgage, Series 1997-58A, AMT, 5.85% 2017
Allegheny County Hospital Dev. Auth., Health System 2,000 2,074
Rev. Bonds (West Penn Allegheny Health System),
Series 2000B, 9.25% 2030
Lehigh County, General Purpose Auth. Rev. Bonds 1,000 1,072
(KidsPeace Obligated Group), ACA Insured, 5.70% 2009
Hospitals and Higher Education Facs.
Auth. of Philadelphia:
Frankford Hospital, Series A, 6.00% 2014 (Escrowed 500 532
to Maturity)
Hospital Rev. Bonds (Temple University Hospital), 1,000 981
Series of 1997, 5.70% 2009
Philadelphia Auth. for Industrial Dev., Rev. Bonds
(Cathedral Village Project), Series of 1998:
5.30% 2007 1,145 1,128
5.50% 2010 1,000 962
Scranton-Lackawanna Health and Welfare Auth., City of
Scranton, Lackawanna County, Hospital Rev. Bonds
(Moses Taylor Hospital Project), Series 1997:
5.75% 2006 1,585 1,519
5.80% 2007 1,680 1,594
5.90% 2008 1,730 1,635
6.00% 2009 940 886
6.10% 2011 2,005 1,871
6.20% 2017 1,000 893
Westmoreland County Industrial Dev. Auth., Variable 2,000 1,954
Rate Rev. Bonds (Nat'l Waste and Energy Corp.; Valley
Landfill Expansion Project), Series 1993, AMT,
5.10% 2018
Rhode Island - 0.31%
Housing and Mortgage Fin. Corp., Homeownership 2,000 2,041
Opportunity Bonds, Series 9-B-1, AMT, 5.55% 2013
South Carolina - 1.86%
Tobacco Settlement Rev. Management Auth., Tobacco 2,500 2,569
Settlement Asset-Backed Bonds, Series 2001B, 6.00% 2022
Piedmont Municipal Power Agcy., Electric Rev. Bonds, 8,000 7,393
1999A Ref. Series, 5.25% 2015
York County, Pollution Control Facs. Rev. Bonds 2,300 2,458
(Bowater Inc. Project), Series 1990, AMT, 7.625% 2006
Tennessee - 0.38%
Health and Educational Facs. Board of the Metropolitan 1,160 955
Government of Nashville and Davidson County, Rev. Ref.
Bonds, Series 1998, 5.65% 2024
Memphis-Shelby County Airport Auth., Special Facs. Rev. 1,500 1,548
Bonds (Federal Express Corp.), Series 1984, 7.875% 2009
Texas - 5.07%
Alliance Airport Auth., Inc., Special Facs. Rev. Bonds 1,500 1,659
(American Airlines, Inc. Project), Series 1990, AMT,
7.00% 2011
Bell County Health Facs. Dev. Corp., Retirement Fac. 1,000 920
Rev. Bonds (Buckner Retirement Services, Inc. Obligated
Group Project), Series 1998, 5.25% 2028
Brazos River Auth., Collateralized Pollution Control 2,000 2,022
Rev. Ref. Bonds (Texas Utilities Electric Co. Project),
Series 1995B, AMT, 5.05% 2030 (Put 2006)
Industrial Dev. Corp. of Port of Corpus Christi, Rev.
Ref. Bonds (Valero Refining and Marketing Co. Project):
Series 1997D, AMT, 5.125% 2009 5,250 5,178
Series C, 5.40% 2018 1,000 957
Donna Independent School Dist. (Hidalgo County), 1,000 1,015
Unlimited Tax School Building Bonds, Series 1998,
5.20% 2018
Fort Worth International Airport Fac. Improvement Corp., 3,000 3,126
American Airlines, Inc., Rev. Ref. Bonds, Series 2000C,
AMT, American Airlines Insured, 6.15% 2029
Harris County Health Facs. Dev. Corp.:
Hospital Rev. Bonds (Memorial Hermann Healthcare 4,100 4,319
System), Series 2001A, 6.375% 2029
Rev. Bonds (St. Luke's Episcopal Hospital), Series 2001A:
5.625% 2014 1,500 1,575
5.50% 2020 2,850 2,868
Hidalgo County Health Services Corp., Hospital Rev.
Bonds, (Mission Hospital, Inc. Project), Series 1996:
7.00% 2008 2,365 2,425
6.75% 2016 1,000 955
Matagorda County, Navigation Dist. Number One, Rev. Ref. 2,500 2,443
Bonds (Houston Lighting & Power Co. Project),
Series 1997, AMT, AMBAC Insured, 5.125% 2028
Tomball Hospital Auth., Rev. Ref. Bonds, Series 1993, 4,740 4,353
6.125% 2023
Utah - 0.72%
Housing Fin. Agcy., Single Family Mortgage Bonds, AMT:
1997 Series G-2, Class III, 5.60% 2010 805 837
1998 Series G-2, Class III, 4.90% 2012 865 877
1999 Series B-2, Class III, 5.10% 2012 990 1,010
1999 Series C-3, Class III, 5.60% 2013 1,310 1,362
Federally Insured or Guaranteed Mortgage Loans, 695 725
1999 Issue D, AMT, 5.60% 2013
Virginia - 2.28%
Dulles Town Center Community Dev. Auth. (Loudoun County), 4,000 3,963
Special Assessment Bonds (Dulles Town Center Project),
Series 1998, 6.25% 2026
Fairfax County Econ. Dev. Auth., Retirement Community
Rev. Bonds (Greenspring Village, Inc. Fac.),
Series 1999 A:
6.75% 2012 1,500 1,573
7.50% 2029 4,000 4,190
Gateway Community Dev. Auth. (Prince William County), 2,000 1,969
Special Assessment Bonds, Series 1999, 6.25% 2026
Industrial Dev. Auth. of the County of Henrico, Solid 500 477
Waste Disposal Rev. Bonds (Browning-Ferris Industries
of South Atlantic, Inc. Project), Series 1995, AMT,
5.30% 2011 (Put 2005)
Heritage Hunt Commercial Community Dev. Auth. (Prince 1,000 1,044
William County), Special Assessment Bonds, Series 1999B,
7.00% 2029
Pocahontas Parkway Association, Route 895 Connector Toll
Road Rev. Bonds, Series 1998A:
5.25% 2008 1,100 1,065
5.00% 2011 1,000 925
Wisconsin - 1.40%
Housing and Econ. Dev. Auth., Housing Rev. Bonds, 1,000 1,016
1993 Series B, AMT, 5.30% 2006
City of Oconto Falls, Community Dev. Auth., Dev. Rev.
Bonds (Oconto Falls Tissue, Inc. Project),
Series 1997, AMT:
7.75% 2022 8,800 7,463
8.125% 2022 /1/ 990 869
628,193
Principal Market
Amount Value
(000) (000)
Short-Term Securities - 5.69%
City and County of Denver, G.O. Various Purpose Bonds, 1,000 1,000
Series 1999B, 4.75% 2001
Gulf Coast Waste Disposal Auth., Texas, Environmental
Facs. Rev. Bonds (ExxonMobil Project), AMT:
Series 2001A, 2.85% 2030 /3/ 1,000 1,000
Series 2001B, 2.85% 2025 /3/ 3,900 3,900
Hampton, Virginia, Redev. and Housing Auth., 200 200
Multifamily Housing Rev. Bonds, 1996 Series (Avalon
Pointe Project), AMT, 2.70% 2026 /3/
City of Houston, Texas, Tax and Rev. Anticipation Notes, 3,500 3,528
Series 2001, 3.50% 2002
State of Kentucky, Asset/Liability Commission, General 5,000 5,061
Fund Tax and Rev. Anticipation Notes, 2001 Series A,
4.00% 2002
Lincoln County, Wyoming, Pollution Control Rev. Bonds 2,100 2,100
(Exxon Project), Series 1984A, 2.70% 2014 /3/
County of Los Angeles, 2001-2002 Tax and Rev. 4,500 4,546
Anticipation Notes, Series A, 3.75% 2002
Madison County, Illinois, Environmental Improvement Rev. 2,400 2,400
Bonds (Shell Wood River Refining Co. Project),
Series 1997, AMT, 2.85% 2032 /3/
Maryland Health and Higher Educational Facs. Auth., 3,600 3,600
Pooled Loan Program Rev. Bonds, Series D, 2.60% 2029 /3/
The Commonwealth of Massachusetts, G.O. Bond 3,000 3,002
Anticipation Notes, 2000 Series A, 5.00% 2001
State of New Mexico, 2001-2002 Tax and Rev. 3,000 3,037
Anticipation Notes, Series 2001, 4.00% 2002
North Carolina Medical Care Commission Variable Rate 1,800 1,800
Hospital Rev. Bonds (Pooled Fncg. Project),
Series 1996A, 2.75% 2016 /3/
State of Texas, Tax and Rev. Anticipation Notes, 1,800 1,801
Series 2000, 5.25% 2001
State of Wyoming, General Fund Tax and Rev. 1,000 1,008
Anticipation Notes, Series 2001A, 3.50% 2002
37,983
TOTAL INVESTMENT SECURITIES: (cost: $657,717,000) 666,176
Excess of cash and receivables over payables 787
NET ASSETS $666,963
/1/ Purchased in a private placement transaction;
resale may be limited to qualified
institutional buyers; resale to the public
may require registration.
/2/ Company not making interest payments;
bankruptcy proceedings pending.
/3/ Coupon rate changes periodically; the
date of the next scheduled coupon rate change
is considered to be the maturity date.
See Notes to Financial Statements
Key to Abbreviations
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Cert. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
[Download Table]
FINANCIAL STATEMENTS
Statements of assets and liabilities
at July 31, 2001 (dollars in thousands)
Assets:
Investment securities at market
(cost: $657,717) $666,176
Cash 1,023
Receivables for -
Sales of investments $1,000
Sales of fund's shares 2,037
Interest 10,690 13,727
680,926
Liabilities:
Payables for -
Purchases of investments 11,190
Repurchases of fund's shares 880
Dividends on fund's shares 1,305
Management services 223
Other expenses 365 13,963
Net assets at July 31, 2001 $666,963
Total authorized capital stock -
200,000,000 shares, $.001 par value
Class A shares:
Net assets $650,411
Shares outstanding 42,374,830
Net asset value per share $15.35
Class B shares:
Net assets $10,894
Shares outstanding 709,720
Net asset value per share $15.35
Class C shares:
Net assets $4,176
Shares outstanding 272,030
Net asset value per share $15.35
Class F shares:
Net assets $1,482
Shares outstanding 96,560
Net asset value per share $15.35
Statement of operations
for the year ended July 31, 2001 (dollars in thousands)
Investment income:
Income:
Interest $37,807
Expenses:
Management services fee 2,451
Distribution expenses - Class A 1,780
Distribution expenses - Class B 56
Distribution expenses - Class C 7
Distribution expenses - Class F 1
Transfer agent fee - Class A 165
Transfer agent fee - Class B 2
Administrative services fees - Class C 2
Administrative services fees - Class F 1
Reports to shareholders 28
Registration statement and prospectus 158
Postage, stationery and supplies 31
Directors' fees 22
Auditing and legal fees 42
Custodian fee 12
Taxes other than federal income tax 11
Other expenses 94 4,863
Net investment income 32,944
Realized loss and unrealized
appreciation on investments:
Net realized loss (36)
Net unrealized appreciation 19,734
Net realized loss and
unrealized appreciation
on investments 19,698
Net increase in net assets resulting
from operations $52,642
Statements of changes in net assets (dollars in thousands)
Year ended July 31,
2001 2000
Operations:
Net investment income $32,944 $30,190
Net realized loss on investments (36) (6,554)
Net unrealized appreciation (depreciation)
on investments 19,734 (14,814)
Net increase in net assets
resulting from operations 52,642 8,822
Dividends and distributions paid to
shareholders:
Dividends from net investment income:
Class A (32,744) (30,284)
Class B (270) (18)
Class C (33) -
Class F (15) -
Distributions from net realized gain on investments:
Class A - (1,028)
Total dividends and distributions (33,062) (31,330)
Capital share transactions:
Proceeds from shares sold 215,865 180,415
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 20,280 20,208
Cost of shares repurchased (140,379) (190,669)
Net increase in net assets resulting
from capital share transactions 95,766 9,954
Total increase (decrease) in net assets 115,346 (12,554)
Net assets:
Beginning of year 551,617 564,171
End of year (including
undistributed net investment
income: $64 and $68,
respectively) $666,963 $551,617
See Notes to Financial Statements
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - American High-Income Municipal Bond Fund, Inc. (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks a high level of current income
exempt from regular federal income taxes through a diversified, carefully
researched portfolio of higher yielding, lower rated, higher risk municipal
bonds.
The fund offers four classes of shares as described below:
Class A shares are sold with an initial sales charge of up to 3.75%.
Class B shares are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares
automatically convert to Class A shares after eight years.
Class C shares are sold without an initial sales charge but are subject to a
CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years.
Class F shares, which are sold exclusively through fee-based programs, are sold
without an initial sales charge or CDSC.
Holders of all classes of shares have equal pro rata rights to assets,
dividends, liquidation and other rights. Each class has identical voting
rights, except for exclusive rights to vote on matters affecting only its
class. Each class of shares may have different distribution, administrative
services and transfer agent fees and expenses. Differences in class-specific
expenses will result in the payment of different per share dividends by each
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States of America. These principles require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is
a summary of the significant accounting policies consistently followed by the
fund in the preparation of its financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the fund's Board of
Directors.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or when-issued basis, the fund
will instruct the custodian to segregate liquid assets sufficient to meet its
payment obligations in these transactions. Interest income is recognized on an
accrual basis. Premiums and original issue discounts on securities are
amortized daily over the expected life of the security. Amortization of market
discounts on securities is recognized upon disposition.
On August 1, 2001, the fund will begin amortizing discount daily over the
expected life of fixed-income securities to conform with a recent change in
generally accepted accounting principles for mutual funds. Adopting this change
will not impact the fund's net asset value and will result in changes to the
classification of certain amounts between interest income and realized and
unrealized gain/loss in the Statement of Operations. These adjustments will be
based on the fixed-income securities held by the fund on August 1, 2001.
Because the fund determines its required distributions under Federal income tax
laws, adoption of this principle will not affect the amount of distributions
paid to shareholders.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
Class Allocations - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily among the various
share classes based on their relative net asset values. Distribution expenses,
administrative services fees, certain transfer agent fees and other applicable
class-specific expenses are accrued daily and charged to the respective share
class.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are based on net investment
income and net realized gains determined on a tax basis and may differ from
such amounts for financial reporting purposes. In addition, the fiscal year in
which amounts are distributed may differ from the year in which the net
investment income is earned and the net gains are realized by the fund.
As of July 31, 2001, the cost of investment securities for book and federal
income tax reporting purposes was $657,717,000.
Net unrealized appreciation on investments aggregated $8,459,000; $23,418,000
related to appreciated securities and $14,959,000 related to depreciated
securities. For the year ended July 31, 2001, the fund realized tax basis net
capital losses of $167,000. The fund had available at July 31, 2001, a net
capital loss carryforward totaling $6,620,000 which may be used to offset
capital gains realized during subsequent years through 2009 and thereby relieve
the fund and its shareholders of any federal income tax liability with respect
to the capital gains that are so offset. The fund will not make distributions
from capital gains while a capital loss carryforward remains. In addition, the
fund has deferred, for tax purposes, to fiscal year ending July 31, 2002, the
recognition of capital losses totaling $169,000 which were realized during the
period November 1, 2000 through July 31, 2001.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $2,451,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
("CRMC") with which certain officers and Directors of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees accrued
daily, based on an annual rate of 0.30% of the first $60 million of daily net
assets and 0.21% of such assets in excess of $60 million. The agreement also
provides for monthly fees, accrued daily, of 3.00% on the fund's monthly gross
investment income. For the year ended July 31, 2001, the management services
fee was equivalent to an annualized rate of 0.407% of average daily net assets.
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution under which
it may finance activities primarily intended to sell fund shares, provided the
categories of expenses are approved in advance by the fund's Board of
Directors. The plans provide for annual expenses, based on average daily net
assets, of up to 0.30% for Class A shares, 1.00% for Class B and Class C
shares, and up to 0.50% for Class F shares.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares, for paying service fees to firms that have
entered into agreements with AFD for providing certain shareholder services.
The balance may be used for approved distribution expenses as follows:
CLASS A SHARES - Approved categories of expense include reimbursements to AFD
for commissions paid to dealers and wholesalers in respect of certain shares
sold without a sales charge. Those reimbursements are permitted for amounts
billed to the fund within the prior 15 months but only to the extent that the
overall 0.30% annual expense limits for Class shares is not exceeded. For the
year ended July 31, 2001, aggregate distribution expenses were limited to
$1,780,000, or 0.30% of average daily net assets attributable to Class A
shares. As of July 31, 2001, unreimbursed expenses which remain subject to
reimbursement totaled $109,000.
CLASS B SHARES - In addition to service fees of 0.25%, approved categories of
expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to receive
such payments (as well as any contingent deferred sales charges payable in
respect of shares sold during the period) in order to finance the payment of
dealer commissions. For the year ended July 31, 2001, aggregate distribution
expenses were $56,000, or 1.00% of average daily net assets attributable to
Class B shares.
CLASS C SHARES - In addition to service fees of 0.25%, the Board of Directors
has approved the payment of 0.75% per annum of average daily net assets
attributable to Class C shares to AFD to compensate firms selling Class C
shares of the fund. For the period ended July 31, 2001, aggregate distribution
expenses were $7,000, or 1.00% of average daily net assets attributable to
Class C shares.
CLASS F SHARES - The plan has an expense limit of 0.50%. However, the Board of
Directors has presently approved expenses under the plan of 0.25% per annum of
average daily net assets attributable to Class F shares. For the period ended
July 31, 2001, aggregate distribution expenses were $1,000, or 0.25% of average
daily net assets attributable to Class F shares.
As of July 31, 2001, aggregate distribution expenses payable to AFD for all
share classes were $212,000.
AFD received $306,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the fund's Class A shares for the year ended July
31, 2001. Such sales charges are not an expense of the fund and, hence, are not
reflected in the accompanying Statement of Operations.
TRANSFER AGENT FEE - A fee of $167,000 was incurred during the year ended July
31, 2001, pursuant to an agreement with American Funds Service Company ("AFS"),
the transfer agent for the fund. As of July 31, 2001, aggregate transfer agent
fees payable to AFS for Class A and Class B shares were $12,000.
ADMINISTRATIVE SERVICES FEES - The fund has an administrative services
agreement with CRMC for Class C and Class F shares. Pursuant to this agreement,
CRMC provides transfer agency and other related shareholder services. CRMC may
contract with third parties to perform these services. Under the agreement, the
fund pays CRMC a fee equal to 0.15% per annum of average daily net assets of
Class C and Class F shares, plus amounts payable for certain transfer agency
services according to a specified schedule. For the period ended July 31, 2001,
total fees under the agreement were $3,000. As of July 31, 2001, aggregate
administrative services fees payable to CRMC for Class C and Class F shares
were $1,000.
DEFERRED DIRECTORS' FEES - Since the adoption of the deferred compensation plan
in 1994, Directors who are unaffiliated with CRMC may elect to defer the
receipt of part or all of their compensation. Deferred compensation amounts,
which remain in the fund, are treated as if invested in shares of the fund or
other American Funds. These amounts represent general, unsecured liabilities of
the fund and vary according to the total returns of the selected funds. As of
July 31, 2001, the cumulative amount of these liabilities was $25,000.
Directors fees on the Statement of Operations include the current fees (either
paid in cash or deferred) and the net increase or decrease in the value of
deferred compensation.
AFFILIATED DIRECTORS AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Directors are or may be considered to be
affiliated with CRMC, AFS and AFD. No such persons received any remuneration
directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $181,541,000 and $103,028,000, respectively, during
the year ended July 31, 2001.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
For the year ended July 31, 2001, the custodian fee of $12,000 includes $4,000
that was paid by these credits rather than in cash.
For the year ended July 31, 2001, the fund reclassified $114,000 from
undistributed net realized gains to additional paid-in-capital to reflect
permanent differences between book and tax reporting.
As of July 31, 2001, net assets consisted of the following:
[Download Table]
(dollars in thousands)
Capital paid in on shares of beneficial interest $665,211
Undistributed net investment income 64
Accumulated net realized loss (6,771)
Net unrealized appreciation 8,459
Net assets $666,963
[Enlarge/Download Table]
Capital share transactions in the fund were as follows:
Year ended July 31, 2001
Amount (000) Shares
Class A Shares:
Sold $ 199,249 13,256,036
Reinvestment of dividends and distributions 20,047 1,332,347
Repurchased (138,032) (9,188,783)
Net increase in Class A 81,264 5,399,600
Class B Shares: /1/
Sold 9,884 656,159
Reinvestment of dividends and distributions 199 13,211
Repurchased (1,171) (77,890)
Net increase in Class B 8,912 591,480
Class C Shares: /2/
Sold 4,325 285,173
Reinvestment of dividends and distributions 22 1,461
Repurchased (221) (14,604)
Net increase in Class C 4,126 272,030
Class F Shares: /2/
Sold 2,407 159,012
Reinvestment of dividends and distributions 12 807
Repurchased (955) (63,259)
Net increase in Class F 1,464 96,560
Total net increase in fund $ 95,766 6,359,670
Year ended July 31, 2000
Amount (000) Shares
Class A Shares:
Sold $ 178,540 12,024,123
Reinvestment of dividends and distributions 20,193 1,360,381
Repurchased (190,515) (12,841,704)
Net increase in Class A 8,218 542,800
Class B Shares: /1/
Sold 1,875 127,641
Reinvestment of dividends and distributions 15 1,043
Repurchased (154) (10,444)
Net increase in Class B 1,736 118,240
Class C Shares: /2/
Sold - -
Reinvestment of dividends and distributions - -
Repurchased - -
Net increase in Class C - -
Class F Shares: /2/
Sold - -
Reinvestment of dividends and distributions - -
Repurchased - -
Net increase in Class F - -
Total net increase in fund $ 9,954 661,040
/1/ Class B shares were not offered
before March 15, 2000.
/2/ Class C and Class F shares were not
offered before March 15, 2001.
[Enlarge/Download Table]
Per-Share Data and Ratios
Class A
Year ended July 31,
2001 2000 1999 1998 1997
Net Asset Value, Beginning of Year $14.87 $15.49 $16.12 $15.90 $15.23
Income from Investment Operations :
Net investment income .83 (1) .82 (1) .81 .84 .87
Net gains (losses) on securities .48 (1) (.58) (1) (.54) .26 .80
(both realized and unrealized)
Total from investment operations 1.31 .24 .27 1.10 1.67
Less Distributions :
Dividends (from net investment income) (.83) (.83) (.82) (.84) (.86)
Distributions (from capital gains) - (.03) (.08) (.04) (.14)
Total distributions (.83) (.86) (.90) (.88) (1.00)
Net Asset Value, End of Year $15.35 $14.87 $15.49 $16.12 $15.90
Total Return (2) 9.14% 1.61% 1.63% 7.05% 11.36%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $650 $550 $564 $464 $316
Ratio of expenses to average net assets .80% .80% .78% .79% .87%
Ratio of net income to average net assets 5.50% 5.53% 5.09% 5.19% 5.51%
Class B Class C Class F
Year
ended March 15 to March 15 to March 15 to
July 31, July 31, July 31, July 31,
2001 2000 (3) 2001 (3) 2001 (3)
Net Asset Value, Beginning of Period $14.87 $14.79 $15.11 $15.11
Income from Investment Operations :
Net investment income (1) .71 .23 .25 .27
Net gains on securities .50 .14 .25 .25
(both realized and unrealized) (1)
Total from investment operations 1.21 .37 .50 .52
Less Distributions :
Dividends (from net investment income) (.73) (.29) (.26) (.28)
Distributions (from capital gains) - - - -
Total distributions (.73) (.29) (.26) (.28)
Net Asset Value, End of Period $15.35 $14.87 $15.35 $15.35
Total Return (2) 8.45% 3.16% 3.34% 3.50%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $11 $2 $4 $1
Ratio of expenses to average net assets 1.48% .55% .59% .37%
Ratio of net income to average net assets 4.72% 1.77% 1.75% 1.98%
Supplemental Data - All Classes
Year ended July 31,
2001 2000 1999 1998 1997
Portfolio turnover rate 18.23% 33.20% 16.67% 16.38% 15.31%
1) Based on average shares outstanding.
2) Total returns exclude all sales charges,
including contingent deferred sales charges.
3) Based on operations for the period shown
and, accordingly, not representative of
a full year.
Report of Independent Accountants
To the Board of Directors and Shareholders of American High-Income Municipal
Bond Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of American High-Income Municipal
Bond Fund, Inc. (the "Fund") at July 31, 2001, the results of its operations,
the changes in its net assets and the per-share data and ratios for the each of
the periods presented in conformity with accounting principles generally
accepted in the United States. These financial statements and per-share data
and ratios (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 audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the 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 audits, which included confirmation of
securities at July 31, 2001 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
August 31, 2001
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. 99.9% of the dividends paid from net
investment income qualify as exempt-interest dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2002 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2001 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
[Download Table]
Investment Portfolio, July 31, 2001
[begin pie chart]
Texas (TX) 11.63%
Michigan (MI) 8.49%
Illinois (IL) 7.47%
California (CA) 7.23%
New York (NY) 7.10%
North Carolina (NC) 5.21%
Washington (WA) 4.42%
District of Columbia (DC) 4.12%
Louisiana (LA) 3.51%
Pennsylvania (PA) 2.80%
Other states 33.30%
Cash & Equivalents 4.72%
[end pie chart]
Principal Market
Amount Value
(000) (000)
Fixed-Income Securities - 95.28%
Alabama - 0.97%
Industrial Dev. Board of the City of Butler, Pollution $3,000 $ 3,051
Control Ref. Rev. Bonds (James River Project),
Series 1993, 5.50% 2005
Alaska - 1.73%
Industrial Dev. and Export Auth. Power Rev. Bonds
(Snettisham Hydroelectric Project), First Series,
AMBAC Insured, AMT:
5.25% 2005 930 971
5.25% 2005 (Escrowed to Maturity) 70 74
Northern Tobacco Securitization Corp., Tobacco
Settlement Asset-Backed Bonds, Series 2000:
5.60% 2009 1,000 1,048
5.60% 2010 1,000 1,048
Student Loan Corp., Student Loan Rev. Bonds, 2,140 2,277
2000 Series A, AMT, AMBAC Insured, 5.65% 2010
Arizona - 0.94%
Industrial Dev. Auth. of the County of Maricopa, 1,950 1,914
Health Fac. Rev. Bonds (Catholic Healthcare West
Project), 1998 Series A, 4.30% 2005
City of Phoenix, Senior Lien Street and Highway User 1,000 1,038
Rev. Ref. Bonds, Series 1993, 5.00% 2008
California - 7.23%
Pollution Control Fncg. Auth., Solid Waste Disposal 3,500 3,462
Ref. Rev. Bonds (USA Waste Services, Inc. Project),
Series 1998A, AMT, 5.10% 2018 (Put 2008) /1/
Statewide Communities Dev. Auth.:
Apartment Dev. Rev. Ref. Bonds (Irvine Apartment 4,000 4,025
Communities, LP), Series 1998A-1, AMT, 5.05% 2025
(Put 2008) /1/
Cert. of Part. (Catholic Healthcare West Project), 915 966
1999 Series A, 6.00% 2009
Association of Bay Area Governments:
Fin. Auth. for Nonprofit Corps., Ref. Rev. Cert. Of
Part. (Episcopal Homes Foundation), Series 1998:
5.00% 2007 1,405 1,449
5.00% 2008 2,455 2,521
Fin. Auth. Taxable Rev. Ref. Cert. of Part. (American
Baptist Homes of the West Facs. Project), Series 1997B:
5.25% 2007 740 720
5.50% 2007 915 878
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium
of the Pacific Project), 1995 Series A:
5.75% 2005 (Escrowed to Maturity) 3,500 3,819
5.75% 2006 (Preref. 2005) /1/ 780 865
County of Los Angeles, Capital Asset Leasing Corp., 695 721
Cert. of Part. (Marina del Rey), 1993 Series A,
6.25% 2003
Sacramento Cogeneration Auth., Cogeneration Project Rev. 1,200 1,300
Bonds (Procter & Gamble Project), 1995 Series, 7.00% 2004
City of Torrance, Hospital Rev. Bonds (Torrance Memorial
Medical Center), Series 2001A:
4.70% 2009 1,010 1,014
4.80% 2010 940 945
Colorado - 1.33%
Housing and Fin. Auth., Single Family Program Senior 365 374
Bonds, 1995 Series C-2, 5.625% 2009
EagleBend Affordable Housing Corp., Multi-family Housing
Project Rev. Ref. Bonds, Series 1997A:
5.45% 2002 100 100
5.75% 2007 2,585 2,599
University of Colorado Hospital Auth., Hospital Ref. 1,000 1,092
Rev. Bonds, Series 1997A, AMBAC Insured, 5.50% 2007
Connecticut - 0.51%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds,
1996 Series A, (Escrowed to Maturity): /2/
6.25% 2002 500 519
6.375% 2004 995 1,089
Delaware - 0.65%
Economic Dev. Auth., Pollution Control Ref. Rev. Bonds 2,000 2,054
(Delmarva Power & Light Co. Project), Series 2001C,
AMBAC Insured, 4.90% 2026 (Put 2011) /1/
District of Columbia - 4.12%
G.O. Ref. Bonds:
Series 1993D, FGIC Insured:
5.10% 2002 (Escrowed to Maturity) 932 960
5.10% 2002 68 70
Series 1999, FSA Insured:
5.50% 2009 2,555 2,779
5.50% 2009 (Escrowed to Maturity) 195 214
Fixed Rate Rev. Bonds (National Academy of Sciences 1,065 1,119
Project), Series 1999A, AMBAC Insured, 5.00% 2007
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group,
Inc. Issue), Series 1997A, MBIA Insured, (Escrowed
to Maturity):
6.00% 2006 1,000 1,109
6.00% 2007 1,250 1,399
MedStar Health, Inc. Issue, Multimodal Rev. Bonds
(Georgetown University Hospital and Washington Hospital
Center Projects): /1/
Series 2001B, 6.625% 2031 (Put 2005) 2,000 2,089
Series 2001D, 6.875% 2031 (Put 2007) 3,000 3,187
Florida - 1.78%
Dade County, Resource Recovery Fac. Ref. Rev. Bonds, 3,500 3,835
Series 1996, AMT, AMBAC Insured, 6.00% 2006
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. 1,500 1,512
Bonds, Series 1999A (Shell Point/Alliance Obligated
Group, Shell Point Village Project), 5.25% 2005
Meadow Pointe II, Community Dev. Dist. (Pasco County), 225 226
Capital Improvement Rev. Bonds, Series 1998A, 5.25% 2003
Hawaii - 0.68%
Cert. of Part. (Kapolei State Office Building), 1,000 1,050
1998 Series A, AMBAC Insured, 5.00% 2005
Housing and Community Dev. Corp. of Hawaii, Single 1,000 1,073
Family Mortgage Purchase Rev. Bonds, Series 2000 A,
AMT, 5.90% 2008
Idaho - 0.90%
Housing and Fin. Association, Single Family Mortgage
Bonds, AMT:
1998 Series C-2, 5.25% 2011 445 458
1998 Series E-3, 5.125% 2011 620 636
1998 Series H, 4.65% 2012 1,135 1,146
1998 Series I-2, 4.70% 2012 570 574
Illinois - 7.47%
Health Facs. Auth., Rev. Bonds:
Series 1997A, (Advocate Health Care Network):
5.50% 2004 1,250 1,314
5.10% 2005 1,815 1,899
Series 1998A:
5.00% 2006 (Escrowed to Maturity) 980 1,043
5.00% 2006 750 783
Series 2000:
5.25% 2007 1,000 1,058
5.30% 2008 2,000 2,118
Series 1998 (Centegra Health System), 5.50% 2007 2,480 2,579
Series 1997A (Highland Park Hospital Project), 1,490 1,609
FGIC Insured, 5.50% 2005
Series 1998 (Northwestern Medical Faculty Foundation, 1,810 1,935
Inc.), MBIA Insured, 5.25% 2006
OSF Healthcare System:
Series 1993, 5.25% 2001 2,300 2,311
Series 1999:
5.25% 2005 855 891
5.375% 2006 900 944
5.50% 2008 1,000 1,052
Series 1997A (Victory Health Services), 5.25% 2004 1,755 1,808
Housing Dev. Auth., Multi-family Housing Bonds, 1,165 1,198
1992 Series A, 6.55% 2003
City of Chicago, Chicago O'Hare International Airport, 1,000 915
Special Facs. Rev. Ref. Bonds (United Air Lines, Inc.
Project), Series 1999B, AMT, 5.20% 2011
Indiana - 1.89%
Health Fac. Fncg. Auth., Hospital Rev. Bonds:
Charity Obligated Group, Series 1999D, 5.50% 2008 1,000 1,081
Clarian Health Partners, Inc., Series 1996A, 1,000 1,064
MBIA Insured, 5.25% 2008
Housing Fin. Auth., Multi-family Housing Rev. Bonds 1,400 1,438
(Indiana Affordable Housing, Inc.), Series 1999A,
5.40% 2009
Boone County Hospital Association, Lease Rev. Bonds, 1,200 1,257
Series 2001, FGIC Insured, 5.00% 2009
Hospital Auth. of St. Joseph County, Health System 1,010 1,094
Bonds (Memorial Health System), Series 1998A,
MBIA Insured, 5.50% 2008
Iowa - 0.99%
Fin. Auth., Hospital Facs. Rev. Bonds:
Series 1998A (Iowa Health System), MBIA Insured, 1,895 2,025
5.25% 2007
Series 1999 (Mercy Medical Center Project), 1,000 1,075
FSA Insured, 5.30% 2009
Kentucky - 2.46%
Econ. Dev. Fin. Auth.:
Health System Rev. Bonds (Norton Healthcare, Inc.), 3,000 3,153
Series 2000A, MBIA Insured, 6.125% 2010
Hospital System Ref. and Improvement Rev. Bonds,
(Appalachian Regional Healthcare, Inc. Project),
Series 1997:
5.20% 2004 1,000 943
5.40% 2006 1,500 1,371
5.50% 2007 465 419
City of Ashland, Pollution Control Ref. Rev. Bonds, 1,750 1,848
Series 1999 (Ashland Inc. Project), 5.70% 2009
Louisiana - 3.51%
Public Facs. Auth., Hospital Rev. and Ref. Bonds 4,500 4,856
(Franciscan Missionaries of Our Lady Health System
Project), Series 1998A, FSA Insured, 5.50% 2006
Jefferson Parish Hospital Service Dist. No. 2, Parish 1,000 1,053
of Jefferson, Hospital Rev. Bonds, Series 1998,
FSA Insured, 5.00% 2005
Plaquemines Port, Harbor and Terminal Dist., Marine 3,000 3,054
Terminal Facs. Rev. Ref. Bonds (Electro-Coal Transfer
Corp. Project), Series 1985 C, 5.00% 2007
Parish of St. Charles, Pollution Control Rev. Ref. 2,000 2,051
Bonds (Entergy Louisiana, Inc. Project), Series 1999-C,
5.35% 2029 (Put 2003) /1/
Maine - 1.58%
Educational Loan Marketing Corp., Senior Student Loan
Rev. Bonds, Series 1994A-4, AMT:
5.95% 2003 1,000 1,051
6.05% 2004 1,500 1,583
Housing Auth., Mortgage Purchase Bonds, 1994 Series E, 880 894
6.30% 2002
Student Loan Rev. Ref. Bonds, Series 1992A-1, AMT:
6.20% 2003 515 529
6.30% 2004 880 904
Maryland - 0.64%
G.O. Bonds, State and Local Facs. Loan of 2000, 1,000 1,101
Series F, 5.50% 2008
Community Dev. Administration, Dept. of Housing and 895 909
Community Dev., Single Family Program Bonds,
1994 First Series, 5.70% 2017 (2004) /1/
Massachusetts - 2.26%
Educational Fncg. Auth., Education Loan Rev. and Ref. 2,335 2,528
Bonds, Issue G, Series 2000A, AMT, MBIA Insured,
5.55% 2008
Industrial Fin. Agcy. Resource Recovery Rev. Ref. 1,550 1,575
Bonds (Ogden Haverhill Project), Series 1998A, AMT,
5.15% 2007
Port Auth. Special Facs. Rev. Bonds (United Air Lines, 3,000 2,999
Inc. Project), Series 1999A, AMT,
5.75% 2029 (Put 2007) /1/
Michigan - 8.49%
Hospital Fin. Auth.:
Rev. and Ref. Bonds:
The Detroit Medical Center Obligated Group,
AMBAC Insured:
Series 1993B, 5.00% 2006 1,000 1,054
Series 1997A, 5.00% 2006 1,000 1,058
Genesys Health System Obligated Group, 1,375 1,496
Series 1995A, 7.20% 2003 (Escrowed to Maturity)
Hackley Hospital Obligated Group, Series 1998A, 1,140 1,121
4.90% 2007
Henry Ford Health System, Series 1999A, 5.50% 2008 1,000 1,063
MidMichigan Obligated Group, Series 1997A, FSA Insured, 2,775 3,008
5.50% 2007
Pontiac Osteopathic, Series 1994A, 5.375% 2006 3,695 3,517
Sinai Hospital of Greater Detroit, Series 1995, 2,000 1,988
6.00% 2008
Variable Rate Rev. Bonds (Ascension Health
Credit Group): /1/
Series 1999B-3, 5.30% 2033 (Put 2006) 5,000 5,162
Series 1999B-4, 5.375% 2033 (Put 2007) 2,000 2,067
Housing Dev. Auth., Rental Housing Rev. Bonds, 1,200 1,260
1992 Series A, AMBAC Insured, 6.40% 2005
City of Detroit, G.O. Refunding Bonds (Unlimited Tax):
Series 1995-A, 6.25% 2004 1,000 1,064
Series 1995-B, 6.75% 2003 2,000 2,105
City of Flint Hospital Building Auth., Rev. Ref. Bonds 680 682
(Hurley Medical Center), Series 1998A, 5.00% 2003
Minnesota - 0.47%
Housing Fin. Agcy., Single Family Mortgage Bonds, 1,475 1,485
2000 Series H, AMT, 4.25% 2006
Nebraska - 0.35%
Hospital Auth. No. 1 of Lancaster County, Rev. Bonds, 1,070 1,094
Series 1991A (Sisters of Charity Health Care Systems,
Inc.), MBIA Insured, 6.375% 2005
Nevada - 1.30%
Highway Improvement Rev. (Motor Vehicle Fuel Tax) Bonds, 2,000 2,124
Series December 1, 2000A, 5.00% 2009
Housing Division, Single Family Mortgage Bonds, 855 876
1998 Series B-1, 5.20% 2011
City of Henderson, Health Fac. Rev. Bonds (Catholic 1,050 1,087
Healthcare West), 1998 Series A, 6.20% 2009
New Jersey - 0.83%
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds
(Fellowship Village Project), Series 1998A:
5.00% 2006 1,275 1,263
5.05% 2007 1,375 1,351
New Mexico - 0.16%
Educational Assistance Foundation, Student Loan Rev. 490 513
Bonds, Subordinate 1992 Series One-B, AMT, 6.85% 2005
New York - 7.10%
Dormitory Auth.:
Center for Nursing & Rehabilitation, Inc., 635 646
FHA-Insured Mortgage Nursing Home Rev. Bonds,
Series 1997, 4.75% 2007
Mental Health Services Facs. Improvement Rev. Bonds,
Series 1997B:
6.00% 2007 995 1,098
6.00% 2007 (Escrowed to Maturity) 5 6
Secured Hospital Rev. Ref. Bonds:
Saint Agnes Hospital, Series 1998A, 4.80% 2006 1,000 1,044
Wyckoff Heights Medical Center, Series 1998H, 1,000 1,059
5.125% 2008
Housing Fin. Agcy., Health Facs. Rev. Bonds (New York 5,450 5,984
City), 1996 Series A Ref., 6.00% 2006
Port Auth. of New York and New Jersey, Special Project 2,000 2,075
Bonds (Delta Air Lines, Inc. Project), LaGuardia
Airport Passenger Terminal, Series 1R, 6.95% 2008
Castle Rest Residential Health Care Fac., FHA-Insured 1,170 1,242
Mortgage Rev. Bonds, Series 1997A, 4.875% 2007
Cert. of Part., City University of New York (John Jay 1,500 1,659
College of Criminal Justice Project Ref.), 6.00% 2006
City of New York, G.O. Bonds:
Fiscal 1997 Series L, MBIA Insured, 5.625% 2007 1,000 1,093
Fiscal 2001 Series B, MBIA Insured:
4.80% 2008 2,000 2,094
4.90% 2009 1,000 1,051
5.50% 2010 1,000 1,092
Fiscal 2001 Series D, 5.50% 2009 1,000 1,091
Fiscal 2001 Series F, 5.00% 2010 1,000 1,055
North Carolina - 5.21%
Eastern Municipal Power Agcy., Power System Rev.
Bonds, Ref.:
Series 1993B:
6.00% 2005 (2003) /1/ 1,330 1,387
6.125% 2009 1,750 1,888
Series 1993C, 5.50% 2007 3,550 3,698
Municipal Power Agcy. Number 1, Catawba Electric Rev.
Bonds, Series 1992:
5.90% 2003 1,000 1,028
6.00% 2004 3,525 3,681
6.00% 2005 1,250 1,303
MBIA Insured, 6.00% 2010 3,000 3,374
Ohio - 0.70%
The Student Loan Funding Corp., Cincinnati, Student Loan 1,000 1,009
Rev. Bonds, Series 1988B-3, AMT, AMBAC Insured,
5.125% 2005
County of Knox, Hospital Facs. Ref. Rev. Bonds, 1,155 1,179
Series 1998 (Knox Community Hospital), Asset Guaranty
Insured, 4.70% 2008
Oklahoma - 0.76%
Industries Auth., Health System Rev. Ref. Bonds 1,300 1,387
(INTEGRIS Health), Series 1995D, AMBAC Insured,
5.25% 2006
Trustees of the Tulsa Municipal Airport Trust, Rev. 1,000 1,007
Bonds, Ref. Series 2001B, AMT, 5.65% 2035 (Put 2008) /1/
Pennsylvania - 2.80%
Hospitals and Higher Education Facs. Auth. Of
Philadelphia, Hospital Rev. Bonds (Jefferson Health
System), Series 1997 A:
5.50% 2006 2,045 2,160
5.50% 2008 1,000 1,058
Philadelphia Auth. for Industrial Dev., Airport Rev. 3,410 3,617
Bonds (Philadelphia Airport System Project), Series
1998A, AMT, FGIC Insured, 5.25% 2009
Westmoreland County Indust. Dev. Auth., Variable Rate 2,000 1,954
Rev. Bonds (National Waste and Energy Corp.; Valley
Landfill Expansion Project), Series 1993, AMT,
5.10% 2018 (Put 2009) /1/
Puerto Rico - 0.79%
Children's Trust Fund, Tobacco Settlement Asset-Backed 2,355 2,482
Bonds, Series 2000, 5.75% 2020
Rhode Island - 0.43%
Student Loan Auth., Student Loan Rev. Ref. Bonds, 1,300 1,338
Series 1992B, AMT, 6.90% 2003 (2001) /1/
South Carolina - 0.52%
Housing Fin. and Dev. Auth. Mortgage Rev. Bonds, 1,490 1,622
Series 2000 A-2, AMT, FSA Insured, 5.875% 2009
South Dakota - 0.87%
Housing Dev. Auth., Homeownership Mortgage Bonds:
1996 Series A, 5.50% 2010 360 368
2000 Series H, 5.00% 2009 1,300 1,353
2001 Series C, 4.55% 2010 1,000 1,003
Tennessee - 0.34%
Metropolitan Government of Nashville and Davidson County, 1,000 1,052
G.O. Multi-Purpose Improvement Bonds, Series 1997A,
5.125% 2010
Texas - 11.63%
Board of Regents of the Texas A&M University System, 2,000 2,111
Rev. Fncg. System Bonds, 5.10% 2010
Bell County Health Facs. Dev. Corp., Retirement Fac.
Rev. Bonds (Buckner Retirement Services, Inc. Obligated
Group Project), Series 1998:
5.00% 2005 1,330 1,364
5.00% 2007 1,470 1,495
Bexar County, Tax-Exempt Venue Project Rev. Bonds, 2,000 2,178
Series 2000, MBIA Insured, 5.50% 2009
Brazos River Auth., Collateralized Pollution Control
Rev. Ref. Bonds (Texas Utilities Electric Co.
Project), AMT: /1/
Series 1994B, 5.40% 2029 (Put 2006) 1,000 1,019
Series 1995B, 5.05% 2030 (Put 2006) 3,000 3,033
Fort Worth Independent School Dist. (Tarrant County), 3,560 3,746
School Building Unlimited Tax Bonds, Series 2001A,
5.00% 2011
Fort Worth International Airport Fac. Improvement Corp., 2,000 2,084
American Airlines, Inc., Rev. Ref. Bonds, Series 2000C,
AMT, American Airlines Insured, 6.15% 2029 (Put 2007) /1/
Harris County Health Facs. Dev. Corp.:
Hospital Rev. Bonds:
Memorial Hermann Hospital System Project, Series 1998, 1,000 1,065
FSA Insured, 5.25% 2008
Memorial Hospital System Project, Series 1997A,
MBIA Insured:
6.00% 2009 3,215 3,576
6.00% 2010 1,500 1,676
Hospital Rev. Ref. Bonds, Children's Hospital Project, 1,000 1,083
Series 1995, MBIA Insured, 6.00% 2004 (Escrowed
to Maturity)
Rev. Bonds (St. Lukes Episcopal Hospital), 1,000 1,066
Series 2001A, 5.50% 2011
Jefferson County, Health Facs. Dev. Corp., 1,000 1,003
Baptist Hospitals of Southeast Texas, FHA-Insured
Mortgage Rev. Bonds, Series 2001, AMBAC Insured,
4.50% 2010
City of Houston, Airport System, Subordinate Lien Rev. 2,500 2,643
Bonds, Series 1998B, AMT, FGIC Insured, 5.25% 2009
City of San Antonio, Electric and Gas Systems Rev.
Ref. Bonds:
Series 1997, 5.30% 2011 3,500 3,692
Series 1998B, 5.125% 2009 2,455 2,604
Tarrant County, Health Facs. Dev. Corp., Health Resources 1,000 1,056
Systems Rev. Bonds, Series 1997A, MBIA Insured,
5.50% 2007
Utah - 0.79%
Housing Fin. Agcy. (Federally Insured or Guaranteed
Mortgage Loans):
Single Family Mortgage Purchase Ref. Bonds, 455 475
Series 1996, 5.45% 2004
Single Family Mortgage Bonds, AMT:
1998 Issue D-2, 5.25% 2012 /1/ 315 321
1998 Issue E-1, 5.25% 2012 /1/ 330 337
1998 Issue F-2, 4.25% 2008 1,335 1,334
Vermont - 0.84%
Educational and Health Buildings Fncg. Agcy. Hospital 2,500 2,635
Rev. Bonds (Medical Center Hospital of Vermont Project),
Series 1993, FGIC Insured, 5.75% 2007
Virginia - 1.41%
Housing Dev. Auth., AMT:
Commonwealth Mortgage Bonds, 2000 Series A-1, 5.55% 2008 1,175 1,252
Rental Housing Bonds, 2000 Series D, 5.50% 2008 1,070 1,139
Industrial Dev. Auth. of the City of Norfolk, Hospital 1,000 1,069
Rev. Bonds (Daughters of Charity National Health System
DePaul Medical Center), Series 1992A,6.50% 2007 (
Escrowed to Maturity)
Pocahontas Parkway Association, Route 895 Connector 1,000 975
Toll Road Rev. Bonds, Senior Current Interest Bonds,
Series 1998A, 5.25% 2007
Virgin Islands - 1.57%
Virgin Islands Public Fin. Auth., Rev. and Ref. Bonds 4,765 4,922
(Matching Fund Loan Notes), Series 1998 A, 5.20% 2010
Washington - 4.42%
Various Purpose G.O. Bonds, Series 2000B, 6.00% 2010 1,130 1,271
Health Care Facs. Auth., Weekly Rate Demand Rev. 1,000 1,097
Bonds (Virginia Mason Medical Center), 1997 Series A,
MBIA Insured, 6.00% 2006
Public Power Supply System, Nuclear Project No. 2 Ref.
Rev. Bonds:
Series 1997B, 5.50% 2006 1,000 1,076
Series 1998A, 5.00% 2005 1,000 1,049
King County, Limited Tax G.O. Bonds (Baseball Stadium), 3,710 4,058
1997 Series D, 5.60% 2009
Snohomish County, Limited Tax G.O. Bonds, 2001, 5.00% 2010 5,015 5,308
Wisconsin - 1.86%
G.O. Ref. Bonds of 1998, Series 2, 5.00% 2008 1,000 1,060
Health and Educational Facs. Auth.:
Rev. Bonds, Series 1999 (The Monroe Clinic, Inc.), 1,010 998
4.60% 2008
Var. Rate Hospital Rev. Bonds (Charity Obligated Group, 3,560 3,766
Daughters of Charity National Health Sys.),
Series 1997D, 4.90% 2015 (Put 2005) /1/
298,992
Principal Market
Amount Value
(000) (000)
Short-Term Securities - 4.54%
City of Farmington, New Mexico, Pollution Control Rev. 1,000 1,000
Ref. Bonds (Arizona Public Service Co. Four Corners
Project), 1994 Series A, 2.75% 2024 /3/
City of Houston, Texas, Tax and Rev. Anticipation Notes, 1,500 1,512
Series 2001, 3.50% 2002
Jackson County, Mississippi, Pollution Control Ref. Rev. 1,900 1,900
Bonds (Chevron U.S.A. Inc. Project), Series 1992,
2.70% 2023 /3/
State of Kentucky, Asset/Liability Commission, General 1,000 1,012
Fund Tax and Rev. Anticipation Notes, 2001 Series A,
4.00% 2002
Nebraska Hospital Auth. No. 1 of Lancaster County, 1,300 1,300
Variable Rate Health Facs. Rev. Bonds (Immanuel Health
Systems - Williamsburg Project), Series 2000A,
2.80% 2030 /3/
State of New Mexico, 01-02 Tax and Rev. Anticipation 2,000 2,025
Notes, Series 2001, 4.00% 2002
North Carolina Medical Care Commission Variable Rate 1,400 1,400
Hospital Rev. Bonds (Pooled Fncg. Project),
Series 1996A, 2.75% 2016 /3/
State of Texas, Tax and Rev. Anticipation Notes, 1,800 1,803
Series 2000, 5.25% 2001
State of Wyoming, General Fund Tax and Rev. Anticipation 1,000 1,008
Notes, Series 2001A, 3.50% 2002
State of Wyoming, Uinta County, Pollution Control Rev. 1,300 1,300
Ref. Bonds (AMOCO Project), Series 1998, 2.75% 2026 /3/
14,260
TOTAL INVESTMENT SECURITIES: (cost: $304,294,000) 313,252
Excess of cash and receivables over payables 577
NET ASSETS $313,829
/1/ Valued on the basis of the effective maturity -
that is, the date at which the
security is expected to be called or
refunded by the issuer.
/2/ Purchased in a private placement transaction;
resale may be limited to qualified
institutional buyers; resale to public
may require registration.
/3/ Coupon rate changes periodically; the
date of the next scheduled
coupon rate change is considered to
be the maturity date.
See Notes to Financial Statements
Key to Abbreviations
Agcy. = Agency
Auth. = Authority
Cert. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
[Enlarge/Download Table]
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at July 31, 2001 (dollars in thousands)
Assets:
Investment securities at market
(cost: $304,294) $313,252
Cash 70
Receivables for -
Sales of fund's shares $3,683
Interest 3,715 7,398
320,720
Liabilities:
Payables for -
Purchases of investments 4,533
Repurchases of fund's shares 1,801
Dividends on fund's shares 324
Management services 101
Other expenses 132 6,891
Net Assets at July 31, 2001 $313,829
Total authorized capital stock - unlimited
shares, $1.00 par value
Class A shares:
Net assets $305,786
Shares outstanding 20,282,450
Net asset value per share $15.08
Class B shares:
Net assets $2,494
Shares outstanding 165,404
Net asset value per share $15.08
Class C shares:
Net assets $4,009
Shares outstanding 265,923
Net asset value per share $15.08
Class F shares:
Net assets $1,540
Shares outstanding 102,174
Net asset value per share $15.08
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the year ended July 31, 2001 (dollars in thousands)
Investment Income:
Income:
Interest $13,378
Expenses:
Management services fee 1,025
Distribution expenses - Class A 807
Distribution expenses - Class B 14
Distribution expenses - Class C 6
Distribution expenses - Class F 1
Transfer agent fee - Class A 51
Transfer agent fee - Class B 1
Administrative services fees - Class C 1
Administrative services fees - Class F 1
Reports to shareholders 55
Registration statement and prospectus 128
Postage, stationery and supplies 12
Trustees' fees 19
Auditing and legal fees 42
Custodian fee 5
Taxes other than federal income tax 4
Other expenses 6
Total expenses before reimbursement 2,178
Reimbursement of expenses 127 2,051
Net investment income 11,327
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 396
Net unrealized appreciation 11,802
Net realized gain and
unrealized appreciation
on investments 12,198
Net Increase in Net Assets Resulting
from Operations $23,525
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended July 31,
2001 2000
Operations:
Net investment income $11,327 $11,843
Net realized gain (loss) on investments 396 (1,337)
Net unrealized appreciation (depreciation)
on investments 11,802 (2,771)
Net increase in net assets
resulting from operations 23,525 7,735
Dividends Paid to
Shareholders:
Dividends from net investment income:
Class A (11,306) (11,848)
Class B (46) (4)
Class C (17) -
Class F (5) -
Total dividends (11,374) (11,852)
Capital Share Transactions:
Proceeds from shares sold 141,223 143,484
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 8,134 8,453
Cost of shares repurchased (106,055) (172,075)
Net increase (decrease) in net assets resulting
from capital share transactions 43,302 (20,138)
Total Increase (Decrease) in Net Assets 55,453 (24,255)
Net Assets:
Beginning of year 258,376 282,631
End of year (including distributions in excess of net
investmetn income and undistributed net investment
income: $1 and $46,
respectively) $313,829 $258,376
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - Limited Term Tax-Exempt Bond Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks current income exempt from
federal income taxes, consistent with preservation of capital, through
investments in fixed-income securities with effective maturities between three
and 10 years.
The fund offers four classes of shares as described below:
Class A shares are sold with an initial sales charge of up to 3.75%.
Class B shares are sold without an initial sales charge but are subject to a
contingent deferred sales charge ("CDSC") paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares
automatically convert to Class A shares after eight years.
Class C shares are sold without an initial sales charge but are subject to a
CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years.
Class F shares, which are sold exclusively through fee-based programs, are sold
without an initial sales charge or CDSC.
Holders of all classes of shares have equal pro rata rights to assets,
dividends, liquidation and other rights. Each class has identical voting
rights, except for exclusive rights to vote on matters affecting only its
class. Each class of shares may have different distribution, administrative
services and transfer agent fees and expenses. Differences in class-specific
expenses will result in the payment of different per share dividends by each
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States of America. These principles require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is
a summary of the significant accounting policies consistently followed by the
fund in the preparation of its financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the fund's Board of
Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or when-issued basis, the fund
will instruct the custodian to segregate liquid assets sufficient to meet its
payment obligations in these transactions. Interest income is recognized on an
accrual basis. Premiums and original issue discounts on securities are
amortized daily over the expected life of the security. Amortization of market
discounts on securities is recognized upon disposition.
On August 1, 2001, the fund will begin amortizing discount daily over the
expected life of fixed-income securities to conform with a recent change in
generally accepted accounting principles for mutual funds. Adopting this change
will not impact the fund's net asset value and will result in changes to the
classification of certain amounts between interest income and realized and
unrealized gain/loss in the Statement of Operations. These adjustments will be
based on the fixed-income securities held by the fund on August 1, 2001.
Because the fund determines its required distributions under federal income tax
laws, adoption of this principle will not affect the amount of distributions
paid to shareholders.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
Class Allocations - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily among the various
share classes based on their relative net asset values. Distribution expenses,
administrative services fees, certain transfer agent fees and other applicable
class-specific expenses are accrued daily and charged to the respective share
class.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are based on net investment
income and net realized gains determined on a tax basis and may differ from
such amounts for financial reporting purposes. In addition, the fiscal year in
which amounts are distributed may differ from the year in which the net
investment income is earned and the net gains are realized by the fund.
As of July 31, 2001, the cost of investment securities for book and federal
income tax reporting purposes was $304,294,000. Net unrealized appreciation on
investments aggregated $8,958,000; $9,573,000 related to appreciated securities
and $615,000 related to depreciated securities. There was no difference between
book and tax realized gains on securities transactions for the year ended July
31, 2001. The fund had available at July 31, 2001, a net capital loss
carryforward totaling $2,795,000 which may be used to offset capital gains
realized during subsequent years through 2009 and thereby relieve the fund and
its shareholders of any federal income tax liability with respect to the
capital gains that are so offset. The fund will not make distributions from
capital gains while a capital loss carryforward remains.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,025,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
("CRMC") with which certain officers and Trustees of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees accrued
daily, based on an annual rate of 0.30% of the first $60 million of daily net
assets and 0.21% of such assets in excess of $60 million. The agreement also
provides for monthly fees, accrued daily, of 3.00% on the fund's monthly gross
investment income. For the year ended July 31, 2001, the management services
fee was equivalent to an annualized rate of 0.376% of average daily net assets.
The Investment Advisory and Service Agreement provides for a fee reduction to
the extent that annual operating expenses exceed 0.75% of the average daily net
assets of the fund. Expenses that are not subject to these limitations are
interest, taxes, brokerage commissions, transaction costs and extraordinary
expenses. Fee reductions were $127,000 for the year ended July 31, 2001.
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution under which
it may finance activities primarily intended to sell fund shares, provided the
categories of expenses are approved in advance by the fund's Board of Trustees.
The plans provide for annual expenses, based on average daily net assets, of up
to 0.30% for Class A shares, 1.00% for Class B and Class C shares, and up to
0.50% for Class F shares.
All share classes may use up to 0.25% of these expenses to pay service fees, or
to compensate American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares, for paying service fees to firms that have
entered into agreements with AFD for providing certain shareholder services.
The balance may be used for approved distribution expenses as follows:
CLASS A SHARES - Approved categories of expense include reimbursements to AFD
for commissions paid to dealers and wholesalers in respect of certain shares
sold without a sales charge. Those reimbursements are permitted for amounts
billed to the fund within the prior 15 months but only to the extent that the
overall 0.30% annual expense limits for Class A shares is not exceeded. For the
year ended July 31, 2001, aggregate distribution expenses were limited to
$807,000, or 0.30% of average daily net assets attributable to Class A shares.
As of July 31, 2001, unreimbursed expenses that remain subject to reimbursement
totaled $503,000.
CLASS B SHARES - In addition to service fees of 0.25%, approved categories of
expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to receive
such payments (as well as any contingent deferred sales charges payable in
respect of shares sold during the period) in order to finance the payment of
dealer commissions. For the year ended July 31, 2001, aggregate distribution
expenses were $14,000, or 1.00% of average daily net assets attributable to
Class B shares.
CLASS C SHARES - In addition to service fees of 0.25%, the Board of Trustees
has approved the payment of 0.75% per annum of average daily net assets
attributable to Class C shares to AFD to compensate firms selling Class C
shares of the fund. For the period ended July 31, 2001, aggregate distribution
expenses were $6,000, or 1.00% of average daily net assets attributable to
Class C shares.
CLASS F SHARES - The plan has an expense limit of 0.50%. However, the Board of
Trustees has presently approved expenses under the plan of 0.25% per annum of
average daily net assets attributable to Class F shares. For the period ended
July 31, 2001, aggregate distribution expenses were $1,000, or 0.25% of average
daily net assets attributable to Class F shares.
As of July 31, 2001, aggregate distribution expenses payable to AFD for all
share classes were $86,000.
AFD received $113,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the fund's Class A shares for the year ended July
31, 2001. Such sales charges are not an expense of the fund and, hence, are not
reflected in the accompanying Statement of Operations.
TRANSFER AGENT FEE - A fee of $52,000 was incurred during the year ended July
31, 2001, pursuant to an agreement with American Funds Service Company ("AFS"),
the transfer agent for the fund. As of July 31, 2001, aggregate transfer agent
fees payable to AFS for Class A and Class B shares were $8,000.
ADMINISTRATIVE SERVICES FEES <UNDEF> The fund has an administrative services
agreement with CRMC for Class C and Class F shares. Pursuant to this agreement,
CRMC provides transfer agency and other related shareholder services. CRMC may
contract with third parties to perform these services. Under the agreement, the
fund pays CRMC a fee equal to 0.15% per annum of average daily net assets of
Class C and Class F shares, plus amounts payable for certain transfer agency
services according to a specified schedule. For the period ended July 31, 2001,
total fees under the agreement were $2,000. As of July 31, 2001, aggregate
administrative services fees payable to CRMC for Class C and Class F shares
were $1,000.
DEFERRED TRUSTEES' FEES - Since the adoption of the deferred compensation plan
in 1994, Trustees who are unaffiliated with CRMC may elect to defer the receipt
of part or all of their compensation. Deferred compensation amounts, which
remain in the fund, are treated as if invested in shares of the fund or other
American Funds. These amounts represent general, unsecured liabilities of the
fund and vary according to the total returns of the selected funds. As of July
31, 2001, the cumulative amount of these liabilities was $33,000. Trustees'
fees on the Statement of Operations include the current fees (either paid in
cash or deferred) and the net increase or decrease in the value of deferred
compensation.
AFFILIATED TRUSTEES AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees are or may be considered to be
affiliated with CRMC, AFS and AFD. No such persons received any remuneration
directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities of $94,436,000 and $55,575,000, respectively, during the
year ended July 31, 2001.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
For the year ended July 31, 2001, the custodian fee of $5,000 includes $4,000
that was paid by these credits rather than in cash.
As of July 31, 2001, net assets consisted of the following:
see excel S:\Template\capitalshr transactions
Capital share transactions in the fund were as follows:
[Download Table]
(dollars in thousands)
Capital paid in on shares of beneficial interest $307,667
Distributions in excess of net investment income (1)
Accumulated net realized loss (2,795)
Net unrealized appreciation 8,958
Net assets $313,829
[Download Table]
Year ended July 31, 2001
Amount (000) Shares
Class A Shares:
Sold $ 132,019 8,952,431
Reinvestment of dividends and distributions 8,078 547,212
Repurchased (104,121) (7,077,728)
Net increase (decrease) in Class A 35,976 2,421,915
Class B Shares: /1/
Sold 3,709 251,676
Reinvestment of dividends and distributions 40 2,738
Repurchased (1,921) (130,017)
Net increase in Class B 1,828 124,397
Class C Shares: /2/
Sold 3,959 265,097
Reinvestment of dividends and distributions 12 829
Repurchased - (3)
Net increase in Class C 3,971 265,923
Class F Shares: /2/
Sold 1,536 102,759
Reinvestment of dividends and distributions 4 310
Repurchased (13) (895)
Net increase in Class F 1,527 102,174
Total net increase (decrease) in fund $ 43,302 2,914,409
Year ended July 31, 2000
Amount (000) Shares
Class A Shares:
Sold $ 142,783 9,945,084
Reinvestment of dividends and distributions 8,450 589,816
Repurchased (171,956) (12,004,361)
Net increase (decrease) in Class A (20,723) (1,469,461)
Class B Shares: /1/
Sold 701 49,100
Reinvestment of dividends and distributions 3 232
Repurchased (119) (8,325)
Net increase in Class B 585 41,007
Class C Shares: /2/
Sold - -
Reinvestment of dividends and distributions - -
Repurchased - -
Net increase in Class C - -
Class F Shares: /2/
Sold - -
Reinvestment of dividends and distributions - -
Repurchased - -
Net increase in Class F - -
Total net increase (decrease) in fund $ (20,138) (1,428,454)
/1/ Class B shares were not offered
before March 15, 2000.
/2/ Class C and Class F shares were
not offered before March 15, 2001.
[Download Table]
Per-Share Data and Ratios
Class A Class A Class A
Year ended July 31,
2001 2000 1999
Net Asset Value, Beginning of Year $14.43 $14.62 $14.85
Income from Investment Operations :
Net investment income .62 /1/ .73 /1/ .61
Net gains/(losses) on securities (both .65 /1/ (.30) /1/ (.23)
realized and unrealized)
Total from investment operations 1.27 .43 .38
Less Distributions :
Dividends (from net investment income) (.62) (.62) (.61)
Total distributions (.62) (.62) (.61)
Net Asset Value, End of Year $15.08 $14.43 $14.62
Total Return /2/ 8.99% 3.09% 2.59%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $306 $258 $283
Ratio of expenses to average net assets /4/ .75% .75% .75%
Ratio of net income to average net assets 4.18% 5.08% 4.12%
Class A Class A
Year ended July 31,
1998 1997
Net Asset Value, Beginning of Year $14.79 $14.36
Income from Investment Operations :
Net investment income .66 .68
Net gains/(losses) on securities (both .06 .43
realized and unrealized)
Total from investment operations .72 1.11
Less Distributions :
Dividends (from net investment income) (.66) (.68)
Total distributions (.66) (.68)
Net Asset Value, End of Year $14.85 $14.79
Total Return /2/ 4.95% 7.96%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $227 $203
Ratio of expenses to average net assets /4/ .75% .75%
Ratio of net income to average net assets 4.40% 4.70%
Class B Class B
Year ended March 15 to
July 31, July 31,
2001 2000 /3/
Net Asset Value, Beginning of Period $14.43 $14.27
Income from Investment Operations :
Net investment income /1/ .48 .24
Net gains/(losses) on securities (both .69 .13
realized and unrealized) /1/
Total from investment operations 1.17 .37
Less Distributions :
Dividends (from net investment income) (.52) (.21)
Total distributions (.52) (.21)
Net Asset Value, End of Period $15.08 $14.43
Total Return /2/ 8.24% 2.59%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $2 $1
Ratio of expenses to average net assets 1.59% /4/ .61% /4/
Ratio of net income to average net assets 3.24% 1.84%
Class C Class F
March 15 to March 15 to
July 31, July 31,
2001 /3/ 2001 /3/
Net Asset Value, Beginning of Period $14.92 $14.92
Income from Investment Operations :
Net investment income /1/ .15 .16
Net gains/(losses) on securities (both .17 .19
realized and unrealized) /1/
Total from investment operations .32 .35
Less Distributions :
Dividends (from net investment income) (.16) (.19)
Total distributions (.16) (.19)
Net Asset Value, End of Period $15.08 $15.08
Total Return /2/ 2.14% 2.34%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $4 $2
Ratio of expenses to average net assets .75% .60%
Ratio of net income to average net assets 1.05% 1.18%
Supplemental Data - All Classes
Year ended July 31,
2001 2000 1999
Portfolio turnover rate 21.42% 34.38% 17.00%
Year ended July 31,
1998 1997
Portfolio turnover rate 34.07% 31.89%
/1/ Based on average shares outstanding.
/2/ Total returns exclude all sales charges, including contingent deferred
sales charges.
/3/ Based on operations for the period shown and, accordingly, not
representative of a full year.
/4/ Had CRMC not waived management services fees, the fund's expense ratio
would have been 0.80%, 0.81%, 0.77%, 0.83%, and 0.83% for the fiscal years
ended 2001, 2000, 1999, 1998, and 1997, respectively,for Class A and 1.60% and
0.71% for the fiscal year ended 2001 and 2000, repesctively, for Class B.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF LIMITED TERM TAX-EXEMPT BOND FUND
OF AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of Limited Term Tax-Exempt Bond Fund
of America (the "Fund") at July 31, 2001, the results of its operations, the
changes in its net assets and the per-share data and ratios for the each of the
periods presented in conformity with accounting principles generally accepted
in the United States of America. These financial statements and per-share data
and ratios (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 audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, 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 audits, which included confirmation
of securities at July 31, 2001, by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
August 31, 2001
TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. 99.99% of the dividends paid from
net investment income qualify as exempt-interest dividends. Any distributions
paid from realized net short-term or long-term capital gains are not exempt
from federal taxation.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2002 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2001 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
PART C
OTHER INFORMATION
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND, INC.
ITEM 23. EXHIBITS
(a) Articles Supplementary filed with the State of Maryland on 1/18/02
(b) By-laws as amended 3/21/00
(c) Form of share certificate - previously filed (see P/E Amendment No. 5 filed
9/29/97; No. 9 filed 3/14/00; No. 11 filed 3/13/01)
(d) Form of Amended Investment Advisory and Service Agreement - previously
filed (see P/E Amendment No. 5 filed 9/29/97; No. 9 filed 3/14/00)
(e-1) Amended and Restated Principal Underwriting Agreement
(e-2) Form of Selling Group Agreement; form of Banking Selling Group Agreement;
form of Omnibus addendum to the Selling Group Agreement (for retirement plan
share classes (R shares) only); and form of Institutional Selling Group
Agreement
(f) None
(g) Form of Global Custody Agreement - previously filed (see P/E Amendment No.
5, 9/29/97; No. 12, 10/26/01)
(h) Amended and Restated Administrative Services Agreement; and
Amended Shareholder Services Agreement dated 7/1/01
(i) Legal opinion for Class R-5 Shares
(j) Consent of Independent Auditors
(k) None
(l) Initial capital agreements - previously filed (see P/E Amendment No. 5
filed 9/29/97)
(m) Forms of Plans of Distribution - previously filed (see P/E Amendment No. 5
filed 9/29/97; No. 9 filed 3/14/00; No. 11 filed 3/13/01)
(n) Amended and Restated Multiple Class Plan
(o) None
(p) Code of Ethics
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
None
ITEM 25. INDEMNIFICATION
Registrant is a joint-insured under Investment Advisor/Mutual Fund Errors and
Omissions Policies written by American International Surplus Lines Insurance
Company, Chubb Custon Insurance Company, and ICI Mutual Insurance Company which
insures its officers and directors against certain liabilities. However, in no
event will Registrant maintain insurance to indemnify any such person for any
act for which Registrant itself is not permitted to indemnify the individual.
Subsection (b) of Section 2-418 of the General Corporation Law of Maryland
empowers a corporation to indemnify any person who was or is party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
corporation or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation or enterprise,
against reasonable expenses (including attorneys' fees), judgments, penalties,
fines and amounts paid in settlement actually incurred by him in connection
with such action, suit or proceeding unless it is established that: (i) the
act or omission of the person was material to the matter giving rise to the
proceeding and was committed in bad faith or was the result of active and
deliberate dishonesty; (ii) the person actually received an improper personal
benefit of money, property or services; or (iii) with respect to any criminal
action or proceeding, the person had reasonable cause to believe his act or
omission was unlawful.
Indemnification under subsection (b) of Section 2-418 may not be made by a
corporation unless authorized for a specific proceeding after a determination
has been made that indemnification is permissible in the circumstances because
the party to be indemnified has met the standard of conduct set forth in
subsection (b). This determination shall be made (i) by the Board of Directors
by a majority vote of a quorum consisting of directors not, at the time,
parties to the proceeding, or, if such quorum cannot be obtained, then by a
majority vote of a committee of the Board consisting solely of two or more
directors not, at the time, parties to such proceeding and who were duly
designated to act in the matter by a majority vote of the full Board in which
the designated directors who are parties may participate; (ii) by special legal
counsel selected by the Board of Directors of a committee of the Board by vote
as set forth in subparagraph (i), or, if the requisite quorum of the full Board
cannot be obtained therefor and the committee cannot be established, by a
majority vote of the full Board in which any director who is a party may
participate; or (iii) by the stockholders (except that shares held by any party
to the specific proceeding may not be voted). A court of appropriate
jurisdiction may also order indemnification if the court determines that a
person seeking indemnification is entitled to reimbursement under subsection
(b).
Section 2-418 further provides that indemnification provided for by Section
2-418 shall not be deemed exclusive of any rights to which the indemnified
party may be entitled; that
the scope of indemnification extends to directors, officers, employees or
agents of a constituent corporation absorbed in a consolidation or merger and
persons serving in that capacity at the request of the constituent corporation
for another; and empowers the corporation to purchase
ITEM 25. INDEMNIFICATION (CONTINUED)
and maintain insurance on behalf of a director, officer, employee or agent of
the corporation against any liability asserted against or incurred by such
person in any such capacity or arising out of such person's status as such
whether or not the corporation would have the power to indemnify such person
against such liabilities under Section 2-418.
Article VIII (h) of the Articles of Incorporation of the Fund provides that
"The Corporation shall indemnify (1) its directors and officers, whether
serving the Corporation or at its request any other entity, to the full extent
required or permitted by the General Laws of the State of Maryland now or
hereafter in force, including the advance of expenses under the procedures and
to the full extent permitted by law, and (2) its other employees and agents to
such extent as shall be authorized by the Board of Directors or the
Corporation's By-Laws and be permitted by law. The foregoing rights of
indemnification shall not be exclusive of any other rights to which those
seeking indemnification may be entitled. The Board of Directors may take such
action as is necessary to carry out these indemnification provisions and is
expressly empowered to adopt, approve and amend from time to time such by-laws,
resolutions or contracts implementing such provisions or such further
indemnification arrangements as may be permitted by law. No amendment of this
Charter of the Corporation shall limit or eliminate the right to
indemnification provided hereunder with respect to acts or omissions occurring
prior to such amendment or repeal. Nothing contained herein shall be construed
to authorize the Corporation to indemnify any director or officer of the
Corporation against any liability to the Corporation or to any holders of
securities of the Corporation to which he is subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of his office. Any indemnification by the Corporation
shall be consistent with the requirements of law, including the Investment
Company Act of 1940."
Registrant will comply with the indemnification requirements contained in the
Investment Company Act of 1940 (the "1940 Act") Releases No. 7221 (June 9,
1972) and No. 11330 (September 4, 1980). In addition, indemnification by the
Registrant shall be consistent with the requirements of rule 484 under the
Securities Act of 1933. Furthermore, Registrant undertakes to the staff of the
Securities and Exchange Commission that the Fund's indemnification provisions
quoted above prohibit indemnification for liabilities arising under the
Securities Act of 1933 and the 1940 Act.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
None
ITEM 27. PRINCIPAL UNDERWRITERS
(a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Trust, American Mutual Fund, Inc.,
The Bond Fund of America, Inc., Capital Income Builder, Inc., Capital World
Bond Fund, Inc., Capital World Growth and Income
Fund, Inc., The Cash Management Trust of America, EuroPacific Growth Fund,
Fundamental Investors, Inc., The Growth Fund of America, Inc., The Income Fund
of America, Inc., The Investment Company of America, Intermediate Bond Fund of
America, Limited Term Tax-
ITEM 25. INDEMNIFICATION (CONTINUED)
Exempt Bond Fund of America, The New Economy Fund, New Perspective Fund, Inc.,
New World Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Money Fund of America, U.S. Treasury Money Fund
of America and Washington Mutual Investors Fund, Inc.
[Enlarge/Download Table]
(B) (1) (2) (3)
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRANT
David L. Abzug Vice President None
P.O. Box 2248
Agoura Hills, CA 91376
John A. Agar Vice President None
P.O. Box 7326
Little Rock, AR 72217
Robert B. Aprison Vice President None
2983 Bryn Wood Drive
Madison, WI 53711
L William W. Bagnard Vice President None
Steven L. Barnes Senior Vice President None
7490 Clubhouse Road
Suite 100
Boulder, CO 80301
B Carl R. Bauer Vice President None
Michelle A. Bergeron Senior Vice President None
4160 Gateswalk Drive
Smyrna, GA 30080
J. Walter Best, Jr. Regional Vice President None
9013 Brentmeade Blvd.
Brentwood, TN 37027
Joseph T. Blair Senior Vice President None
P.O. Box 3529
148 E. Shore Avenue
Groton Long Point, CT 06340
John A. Blanchard Vice President None
576 Somerset Lane
Northfield, IL 60093
Ian B. Bodell Senior Vice President None
P.O. Box 1665
Brentwood, TN 37024-1665
Mick L. Brethower Senior Vice President None
601 E. Whitestone Blvd.
Building 6, Suite 115
Cedar Park, TX 78613
Alan Brown Vice President None
4129 Laclede Avenue
St. Louis, MO 63108
B J. Peter Burns Vice President None
Cody Callaway Regional Vice President None
803 South Desert Palm Place
Broken Arrow, OK 74012
Matthew C. Carlisle Regional Vice President None
4500 Fairvista Drive
Charlotte, NC 28269
Damian F. Carroll Regional Vice President None
40 Ten Acre Road
New Britain, CT 06052
Brian C. Casey Vice President None
8002 Greentree Road
Bethesda, MD 20817
Victor C. Cassato Senior Vice President None
609 W. Littleton Blvd., Suite 310
Littleton, CO 80120
Christopher J. Cassin Senior Vice President None
19 North Grant Street
Hinsdale, IL 60521
Denise M. Cassin Vice President None
1301 Stoney Creek Drive
San Ramon, CA 94583
L David Charlton Senior Vice President None
L Larry P. Clemmensen Director None
L Kevin G. Clifford Director, President and Co-Chief None
Executive Officer
H Cheri Coleman Assistant Vice President None
Ruth M. Collier Senior Vice President None
29 Landsdowne Drive
Larchmont, NY 10538
S David Coolbaugh Vice President None
Carlo O. Cordasco Regional Vice President None
101 Five Forks Lane
Hampton, VA 23669
Thomas E. Cournoyer Vice President None
2333 Granada Boulevard
Coral Gables, FL 33134
Joseph G. Cronin Regional Vice President None
1533 Wilmot Road
Deerfield, IL 60015
William F. Daugherty Regional Vice President None
1216 Highlander Way
Mechanicsburg, PA 17050
Guy E. Decker Regional Vice President None
2990 Topaz Lane
Carmel, IN 46032
Daniel J. Delianedis Vice President None
Edina Executive Plaza
5200 Willson Road, Suite 150
Edina, MN 55424
James A. DePerno, Jr. Regional Vice President None
91 Church Street
East Aurora, NY 14052
L Bruce L. DePriester Senior Vice President None
Thomas J. Dickson Regional Vice President None
108 Wilmington Court
Southlake, TX 76092
Michael A. DiLella Vice President None
P. O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
505 E. Main Street
Jenks, OK 74037
Kirk D. Dodge Senior Vice President None
2627 Mission Street
San Marino, CA 91108
Peter J. Doran Director, Executive Vice None
President
100 Merrick Road, Suite 216W
Rockville Centre, NY 11570
L Michael J. Downer Secretary Vice President
Michael J. Dullaghan Regional Vice President None
5040 Plantation Grove Lane
Roanoke, VA 24012
S J. Steven Duncan Senior Vice President None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
I Lloyd G. Edwards Senior Vice President None
Timothy L. Ellis Regional Vice President None
1441 Canton Mart Road, Suite 9
Jackson, MS 39211
John R. Fodor Senior Vice President None
15 Latisquama Road
Southborough, MA 01772
Daniel B. Frick Regional Vice President None
845 Western Avenue
Glen Ellyn, IL 60137
Clyde E. Gardner Senior Vice President None
Route 2, Box 3162
Osage Beach, MO 65065
L Linda S. Gardner Assistant Vice President None
B Evelyn K. Glassford Vice President None
Jack E. Goldin Regional Vice President None
7995 Northwest 20th Street
Pembroke Pines, FL 33024
Jeffrey J. Greiner Vice President None
12210 Taylor Road
Plain City, OH 43064
L Paul G. Haaga, Jr. Director Chairman and Director
B Mariellen Hamann Vice President None
Derek S. Hansen Regional Vice President None
13033 Ridgedale Drive, PMB 147
Minnetonka, MN 55305
David E. Harper Senior Vice President None
150 Old Franklin School Road
Pittstown, NJ 08867
H Mary Pat Harris Vice President None
Robert J. Hartig, Jr. Regional Vice President None
8504 Scenic View Drive, Apt. 103
Fishers, IN 46038
Steven J. Hipsley Regional Vice President None
14 Dyer Switch Road
Saratoga Springs, NY 12866
Ronald R. Hulsey Senior Vice President None
6202 Llano
Dallas, TX 75214
Robert S. Irish Vice President None
1225 Vista Del Mar Drive
Delray Beach, FL 33483
Michael J. Johnston Director None
630 Fifth Avenue, 36th Floor
New York, NY 10111
B Damien M. Jordan Senior Vice President None
John P. Keating Regional Vice President None
2285 Eagle Harbor Parkway
Orange Park, FL 30073
Dorothy Klock Vice President None
555 Madison Avenue, 29th Floor
New York, NY 10022
Dianne L. Koske Assistant Vice President
122 Clydesdale Court
Hampton, VA 23666
Andrew R. LeBlanc Regional Vice President None
78 Eton Road
Garden City, NY 11530
B Karl A. Lewis Vice President None
T. Blake Liberty Vice President None
5506 East Mineral Lane
Littleton, CO 80122
Mark J. Lien Regional Vice President None
1103 Tulip Tree Lane
West Des Moines, IA 50266
L Lorin E. Liesy Vice President None
I Kelle Lindenberg Assistant Vice President None
Louis K. Linquata Regional Vice President None
5214 Cass Street
Omaha, NE 68132
LW Robert W. Lovelace Director None
Brendan T. Mahoney Regional Vice President None
29 Harvard Drive
Sudbury, MA 01776
Stephen A. Malbasa Director, Senior Vice None
President
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Senior Vice President None
5241 South Race Street
Greenwood Village, CO 80121
L J. Clifton Massar Director, Senior Vice None
President
James R. McCrary Regional Vice President None
28812 Crestridge
Rancho Palos Verdes, CA 90275
L Scott F. McIntyre Senior Vice President None
S John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
Scott M. Meade Regional Vice President None
P.O. Box 122
Rye Beach, NH 03871
Monty L. Moncrief Regional Vice President None
55 Chandler Creek Court
The Woodlands, TX 77381
William E. Noe Vice President None
304 River Oaks Road
Brentwood, TN 37027
Peter A. Nyhus Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Vice President None
62 Park Drive
Glenview, IL 60025
Jeffrey A. Olson Regional Vice President None
930 S. Cowley Street, #305
Spokane, WA 99202
Gary A. Peace Regional Vice President None
291 Kaanapali Drive
Napa, CA 94558
Samuel W. Perry Regional Vice President None
4730 East Indian School Road
Suite 120
Phoenix, AZ 85018
David K. Petzke Regional Vice President None
4016 Saint Lucia Street
Boulder, CO 80301
Fredric Phillips Senior Vice President None
175 Highland Avenue, 4th Floor
Needham, MA 02494
B Candance D. Pilgrim Assistant Vice President None
Carl S. Platou Vice President None
7455 80th Place, S.E.
Mercer Island, WA 98040
S Richard P. Prior Vice President None
Mark S. Reischmann Regional Vice President None
5485 East Mineral Lane
Littleton, CO 80122
Steven J. Reitman Senior Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Vice President None
418 S. Royal Street
Alexandria, VA 22314
L Julie D. Roth Vice President None
L James F. Rothenberg Director None
Douglas F. Rowe Vice President None
414 Logan Ranch Road
Georgetown, TX 78628
Christopher S. Rowey Vice President None
10538 Cheviot Drive
Los Angeles, CA 90064
H Steve Rubin Assistant Vice President None
Dean B. Rydquist Senior Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30005
Richard R. Samson Senior Vice President None
4604 Glencoe Avenue, #4
Marina del Rey, CA 90292
Paul V. Santoro Regional Vice President None
17 Willow Street
Boston, MA 02108
Joseph D. Scarpitti Vice President None
31465 St. Andrews
Westlake, OH 44145
Shannon D. Schofield Regional Vice President None
201 McIver Street
Greenville, SC 29601
S Sherrie Senft Vice President None
L R. Michael Shanahan Director None
Brad Short Regional Vice President None
1601 Seal Way
Seal Beach, CA 90740
David W. Short Chairman of the Board and None
1000 RIDC Plaza, Suite 212 Co-Chief Executive Officer
Pittsburgh, PA 15238
William P. Simon Senior Vice President None
912 Castlehill Lane
Devon, PA 19333
Jerry L. Slater Regional Vice President None
4152 42nd Avenue, NE
Seattle, WA 98105
Rodney G. Smith Senior Vice President None
5520 Frankford Court
Dallas, TX 75252
Anthony L. Soave Regional Vice President None
5397 W. Rosebud Court, S.E.
Kentwood, MI 49512
L Therese L. Soullier Assistant Vice President None
Nicholas D. Spadaccini Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
L Kristen J. Spazafumo Assistant Vice President None
Daniel S. Spradling Senior Vice President None
181 Second Avenue
Suite 228
San Mateo, CA 94401
B Raymond Stein Assistant Vice President None
LW Eric H. Stern Director None
Brad Stillwagon Regional Vice President None
2438 Broadmeade Road
Louisville, KY 40205
Thomas A. Stout Vice President None
1004 Ditchley Road
Virginia Beach, VA 23451
Craig R. Strauser Vice President None
3 Dover Way
Lake Oswego, OR 97034
Francis N. Strazzeri Senior Vice President None
3021 Kensington Trace
Tarpon Springs, FL 34689
L Lisa F. Swaiman Vice President None
L Drew W. Taylor Vice President None
Gary J. Thoma Regional Vice President None
21 White Cloud
HCR 1 Box 172-A
Keshena, WI 54135
Cynthia M. Thompson Regional Vice President None
4 Franklin Way
Ladera Ranch, CA 92694
L James P. Toomey Vice President None
I Christopher E. Trede Vice President None
George F. Truesdail Senior Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Vice President None
60 Reedland Woods Way
Tiburon, CA 94920
J. David Viale Regional Vice President None
39 Old Course Drive
Newport Beach, CA 92660
Gerald J. Voss Regional Vice President None
The Pines at Four Hills
3900 S. Southeastern Ave., #304
Sioux Falls, SD 57103
Thomas E. Warren Vice President None
7347 Turnstone Road
Sarasota, FL 34242
L J. Kelly Webb Senior Vice President, None
Treasurer and Controller
Gregory J. Weimer Vice President None
206 Hardwood Drive
Venetia, PA 15367
B Timothy W. Weiss Director None
SF Gregory W. Wendt Director None
George J. Wenzel Regional Vice President None
251 Barden Road
Bloomfield Hills, MI 48304
H J. D. Wiedmaier Assistant Vice President None
SF N. Dexter Williams, Jr. Senior Vice President None
Timothy J. Wilson Vice President None
113 Farmview Place
Venetia, PA 15367
B Laura L. Wimberly Vice President None
H Marshall D. Wingo Director, Senior Vice None
President
L Robert L. Winston Director, Senior Vice None
President
William R. Yost Senior Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Jonathan A. Young Regional Vice President None
329 Downing Drive
Chesapeake, VA 23322
Scott D. Zambon Regional Vice President None
2178 Piper Lane
Tustin, CA 92782
__________
L Business Address, 333 South Hope Street, Los Angeles, CA 90071
LW Business Address, 11100 Santa Monica Boulevard, 15th Floor, Los Angeles, CA
90025
B Business Address, 135 South State College Boulevard, Brea, CA 92821
S Business Address, 3500 Wiseman Boulevard, San Antonio, TX 78251
SF Business Address, One Market, Steuart Tower, Suite 1800, San Francisco, CA
94105-1016
H Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
I Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
(c) None
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, as amended, are maintained and held in the
offices of its investment adviser, Capital Research and Management Company, 333
South Hope Street, Los Angeles, California 90071, and/or 135 South State
College Boulevard, Brea, California 92821.
Registrant's records covering shareholder accounts are maintained and kept by
its transfer agent, American Funds Service Company, 135 South State College
Boulevard, Brea, California 92821, 8332 Woodfield Crossing Boulevard,
Indianapolis, IN 46240, 3500 Wiseman Boulevard, San Antonio, Texas 78251 and
5300 Robin Hood Road, Norfolk, VA 23513.
Registrant's records covering portfolio transactions are maintained and kept
by its custodian, The Chase Manhattan Bank, 270 Park Avenue, New York, New York
10017-2070.
ITEM 29. MANAGEMENT SERVICES
None
ITEM 30. UNDERTAKINGS
n/a
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to rule
485(b) under the Securities Act of 1933 and has duly caused this amended
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Los Angeles, and State of California, on the
15th day of July, 2002.
AMERICAN HIGH-INCOME MUNICIPAL
BOND FUND, INC.
By /s/ Paul G. Haaga, Jr. .
(Paul G. Haaga, Jr., Chairman of the Board)
Pursuant to the requirements of the Securities Act of 1933, this amendment to
registration statement has been signed below on July 15, 2002, by the following
persons in the capacities indicated.
[Download Table]
Signature Title
(1) Principal Executive Officer:
/s/ Mark R. Macdonald President and Director
(Mark R. Macdonald)
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ Anthony W. Hynes, Jr. Treasurer
(Anthony W. Hynes, Jr.)
(3) Directors:
Richard G. Capen, Jr.* Director
H. Frederick Christie* Director
Diane C. Creel* Director
Martin Fenton* Director
Leonard R. Fuller* Director
/s/ Abner D. Goldstine Vice Chairman and Director
(Abner D. Goldstine)
/s/ Paul G. Haaga, Jr. Chairman and Director
(Paul G. Haaga, Jr.
/s/ Mark R. Macdonald President and Director
(Mark R. Macdonald)
Richard G. Newman* Director
Frank M. Sanchez* Director
*By /s/ Julie F. Williams
Julie F. Williams, Attorney-in-Fact
Counsel represents that this amendment does not contain disclosures that would
make the amendment ineligible for effectiveness under the provisions of rule
485(b).
/s/ Kristine M. Nishiyama
Kristine M. Nishiyama
Dates Referenced Herein and Documents Incorporated by Reference
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