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<SEC-DOCUMENT>0000088053-03-000034.txt : 20030128
<SEC-HEADER>0000088053-03-000034.hdr.sgml : 20030128
<ACCEPTANCE-DATETIME>20030128115918
ACCESSION NUMBER:		0000088053-03-000034
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20021130
FILED AS OF DATE:		20030128
EFFECTIVENESS DATE:		20030128

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SCUDDER MUNICIPAL INCOME TRUST
		CENTRAL INDEX KEY:			0000839533
		IRS NUMBER:				363605060
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05655
		FILM NUMBER:		03527226

	BUSINESS ADDRESS:	
		STREET 1:		222 SOUTH RIVERSIDE PLAZA
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
		BUSINESS PHONE:		3125371569

	MAIL ADDRESS:	
		STREET 1:		222 SOUTH RIVERSIDE PLAZA
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KEMPER MUNICIPAL INCOME TRUST
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>mit.htm
<TEXT>
<!doctype html PUBLIC "-//IETF//DTD HT
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<head>
<title>Zurich Scudder Investments</title>
</head>

<BODY BGCOLOR=#ffffff>
<P ALIGN="JUSTIFY">[Scudder Investments logo]
 <BR>
</P>
<TABLE WIDTH="500" BGCOLOR="#CCCCCC" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" COLSPAN="3" BGCOLOR="#CCCCCC">
<H1 ALIGN="LEFT"><BR>
Scudder Municipal<BR>
Income Trust</H1>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" BGCOLOR="#CCCCCC">
<P ALIGN="LEFT">
</P>
</TD>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" COLSPAN="2" BGCOLOR="#CCCCCC">
<H2 ALIGN="LEFT"></H2>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" BGCOLOR="#CCCCCC">
<P ALIGN="LEFT">
</P>
</TD>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" COLSPAN="2" BGCOLOR="#CCCCCC">
<H2 ALIGN="LEFT">Annual Report</H2>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT"  VALIGN="TOP" BGCOLOR="#CCCCCC">
<P ALIGN="LEFT">
</P>
</TD>
<TD ALIGN="LEFT"  VALIGN="TOP" COLSPAN="2" BGCOLOR="#CCCCCC">
<H2 ALIGN="LEFT">November 30, 2002</H2>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT"  VALIGN="BOTTOM" COLSPAN="3" BGCOLOR="#CCCCCC">
<P ALIGN="JUSTIFY">
</P>
</TD>
</TR>


</TABLE>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000">Contents</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#perfsum">&lt;Click Here&gt;</A></FONT>        Performance Summary
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#eov"></A><A HREF="#eov"></A><A HREF="#eov">&lt;Click Here&gt;</A></FONT>      Economic Overview
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#pmr">&lt;Click Here&gt;</A></FONT>    Portfolio Management Review
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#portsum">&lt;Click Here&gt;</A></FONT>        Portfolio Summary
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#portfolio">&lt;Click Here&gt;</A></FONT>      Investment Portfolio
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#fins">&lt;Click Here&gt;</A></FONT>   Financial Statements
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#high">&lt;Click Here&gt;</A></FONT>   Financial Highlights
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#notes">&lt;Click Here&gt;</A></FONT>  Notes to Financial Statements
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#ria">&lt;Click Here&gt;</A></FONT>    Report of Independent Auditors
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#tax">&lt;Click Here&gt;</A></FONT>    Tax Information
</P>
<P ALIGN="LEFT">        <FONT COLOR="#3d0000"><A HREF="#drip">&lt;Click Here&gt;</A></FONT>     Dividend Reinvestment Plan
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#ot">&lt;Click Here&gt;</A></FONT>     Trustees and Officers
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#ips">&lt;Click Here&gt;</A></FONT>    Investment Products and Services
</P>
<P ALIGN="LEFT"><FONT COLOR="#3d0000">  <A HREF="#amr">&lt;Click Here&gt;</A></FONT>    Account Management Resources
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT">
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2">NYSE Symbol</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2">CUSIP Number</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<B><FONT SIZE="-2">Scudder Municipal Income Trust</FONT></B>
<BR></TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2">KTF</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2">81118R604</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2">Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the
US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management
Americas Inc., Deutsche Asset Management Inc., Deutsche Bank Securities Inc., Deutsche Asset
Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust
Company.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any
bank. Fund shares involve investment risk, including possible loss of principal.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="perfsum" ID="perfsum"></A>Performance Summary  </FONT><B><FONT SIZE="-1" COLOR="#3d0000">November 30, 2002</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="5">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Average Annual Total Returns</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">1-Year</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">3-Year</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">5-Year</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">10-Year</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Based on Net Asset Value<SUP>(a)</SUP></FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">9.36%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">10.56%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">6.72%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">7.20%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Based on Market Price</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">3.76%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">9.49%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">1.88%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2">6.02%</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Net Asset Value and Market Price</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">

<BR></TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">As of 11/30/02</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2">As of 11/30/01</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Net Asset Value</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       12.18</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       11.87</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Market Price</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       11.06</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       11.37</FONT>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Distribution Information</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Twelve Months:</FONT><BR>
<FONT SIZE="-2">Income Dividends (common shareholders)</FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       .73</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">November Income Dividend (common shareholders)</FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">$       .065</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Current Annualized Distribution Rate (based on Net Asset Value)<SUP>+</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        6.40%</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Current Annualized Distribution Rate (based on Market Price)<SUP>+</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        7.05%</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Tax Equivalent Distribution Rate (based on Net Asset Value)<SUP>+</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        10.43%</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Tax Equivalent Distribution Rate (based on Market Price)<SUP>+</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        11.49%</FONT>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2"><SUP>a</SUP> Total investment returns reflect changes in net asset value per share during each period and
assume that dividends and capital gains distributions, if any, were reinvested. These percentages
are not an indication of the performance of a shareholder's investment in the Fund based on
market price.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>+</SUP></FONT></I><FONT SIZE="-2">      <I>Current annualized distribution rate is the latest monthly dividend shown as an annualized
percentage of net asset value/market price on November 30, 2002. Distribution rate simply
measures the level of dividends and is not a complete measure of performance. Tax equivalent
distribution rate is based on the Fund's distribution rate and a marginal income tax rate of 38.6%.
Distribution rates are historical and will fluctuate.</I></FONT><BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2">All performance is historical, assumes reinvestment of all dividends and capital gains, and is not
indicative of future results. Investment return and principal value will fluctuate.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">Investments in funds involve risk. Some funds have more risk than others. These include funds that
allow exposure to or otherwise concentrate investments in certain sectors, geographic regions, security
types, market capitalization or foreign securities (e.g., political or economic instability, which can be
accentuated in emerging market countries). </FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="eov" ID="eov"></A>Economic Overview</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT">Dear Shareholder:
</P>
<P ALIGN="LEFT">The economic recovery continues. Its pace, however, is modest. And it is
taking place in a series of starts and stops.
</P>
<P ALIGN="LEFT">Earlier in the year, the economy seemed to be recovering steadily. How do we
know? During the beginning of any economic slowdown, companies are
fearful that consumers will not buy their products and they will be left with
vast inventories of goods they cannot sell (and are costly to store). As a result,
they liquidate inventories and slow their manufacturing. This happened
during the start of the current slowdown. But in the earlier part of this year, as
demand for manufactured goods became more steady, companies stopped
trying so hard to reduce inventories and started manufacturing more goods.
This suggested that a broad recovery was beginning. Unfortunately, companies
didn't follow through by hiring more workers or investing in new equipment,
which are other factors also essential to a recovery. As a result, the economy
hit a slow patch during the late summer and early fall months - and
manufacturing slipped back into the doldrums.
</P>
<P ALIGN="LEFT">More recently, the economy appears to have improved. Fewer people are filing
for unemployment insurance, the slowdown in manufacturing seems to be
receding, and consumers are still spending money. As a result, we think it is
unlikely that we will return to a recession. However, we expect economic
momentum to build slowly, with growth not getting back to normal until
late 2003.
</P>
<P ALIGN="LEFT">Two warnings: This rebound will require continued assistance from the
government, such as low interest rates and tax cuts. We don't think
maintaining such policies will be a problem, however. The Federal Reserve is
unlikely to raise interest rates until it sees concrete evidence of a recovery and
won't hesitate to lower rates again if it needs to. And, the rebound we expect is
based on the absence of adverse geopolitical shocks such as uncontained war in
the Middle East.
</P>
<P ALIGN="LEFT">If these risks can be avoided and the recovery gradually gathers steam, as we
anticipate, interest rates will be affected. In the short-term, any change is
unlikely. Longer-term, we expect interest rates to remain comparable to those
seen in the 1950s and early 1960s, thanks to low inflation. Even after the
economy recovers fully, the federal funds rate - the rate at which banks lend
to each other overnight, and the rate on which other interest rates are based -
might gradually rise from 1.25 percent to only 4 percent or 4.5 percent.
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT">
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="8">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Economic Guideposts Data as of 11/30/02</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2"><FONT COLOR="#bfbfbf">[]</FONT>  2 years ago</FONT><BR>
<FONT SIZE="-2"><FONT COLOR="#4c4c4c">[]</FONT>  1 year ago</FONT><BR>
<FONT SIZE="-2"><FONT COLOR="#3d0000">[]</FONT>  6 months ago</FONT><BR>
<FONT SIZE="-2"><FONT COLOR="#3d0000">[]</FONT>  Now</FONT><BR>
</TD>
<TD COLSPAN="7" ALIGN="LEFT" VALIGN="MIDDLE"><IMG SRC="mit_guideposts320.gif" ALT="mit_guideposts320"></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER">
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2">Inflation
Rate (a)</FONT>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2">US
Unemployment
Rate (b)</FONT>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2">Federal
Funds
Rate (c)</FONT>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2">Industrial
Production
(d)</FONT>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2">Growth
Rate of
Personal
Income (e)</FONT>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER">
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="8">
<I><FONT SIZE="-2">(a)  The year-over-year percentage change in US consumer prices.</FONT></I><BR>
<I><FONT SIZE="-2">(b)  The percentage of adults out of work and looking for a job.</FONT></I><BR>
<I><FONT SIZE="-2">(c)  The interest rate banks charge each other for overnight loans.</FONT></I><BR>
<I><FONT SIZE="-2">(d)  Year-over-year percentage change.</FONT></I><BR>
<I><FONT SIZE="-2">(e)  Growth rate of individual income from all sources.</FONT></I><BR>
<I><FONT SIZE="-2">     Source: Deutsche Asset Management</FONT></I><BR>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT">Because interest rates and bond prices tend to move in opposite directions,
when the recovery eventually strengthens and the Fed raises interest rates,
bond prices will likely fall again - but not drastically.
</P>
<P ALIGN="LEFT">As for the stock market, prices have now returned to more reasonable levels.
While we don't expect stock prices to fall drastically, we don't expect them to
come anywhere close to what we saw during the 1980s and 1990s.
</P>
<P ALIGN="LEFT">The situation is similar abroad. Economic activity remains sluggish
everywhere. In most areas, we believe the slowdown is cyclical and will
improve gradually next year. The exception is the 12 nations that comprise the
European Monetary Union (EMU), which have been growing more slowly
than the US for several decades. This can't be the result of cyclical factors
alone - i.e., the natural acceleration and deceleration of an economy - so
other problems (such as burdensome taxes and over-regulation<FONT SIZE="-1">) </FONT>may exist.
If so, these problems may continue to impede economic recovery in Europe.
</P>
<P ALIGN="LEFT">Deutsche Investment Management Americas Inc.
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">The sources, opinions and forecasts expressed are those of the economic advisors of Deutsche Asset
Management as of December 11, 2002, and may not actually come to pass.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="pmr" ID="pmr"></A>Portfolio Management Review</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><B>Scudder Municipal Income Trust: A Team Approach to Investing</B>
</P>
<P ALIGN="LEFT">Deutsche Investment Management Americas Inc. (&quot;DeIM&quot; or the &quot;Advisor&quot;), which
is part of Deutsche Asset Management, is the investment advisor for Scudder
Municipal Income Trust. DeIM and its predecessors have more than 80 years of
experience managing mutual funds DeIM and provides a full range of investment
advisory services to institutional and retail clients. DeIM is also responsible for
selecting brokers and dealers and for negotiating brokerage commissions and dealer
charges.
</P>
<P ALIGN="LEFT">Deutsche Asset Management is a global asset management organization that offers a
wide range of investing expertise and resources. This well-resourced global
investment platform brings together a wide variety of experience and investment
insight across industries, regions, asset classes and investing styles.
</P>
<P ALIGN="LEFT">DeIM is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank
AG is a major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual funds, retail, private and
commercial banking, investment banking and insurance.
</P>
<H2 ALIGN="LEFT">Portfolio Management Team</H2>
<P ALIGN="LEFT"><I><FONT SIZE="-2">Philip G. Condon</FONT></I>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2">Managing Director of Deutsche Asset Management and Co-Lead Portfolio Manager of the Trust.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     Joined Deutsche Asset Management in 1983 and the Trust team in 1998.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     Over 26 years of investment industry experience.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     MBA, University of Massachusetts at Amherst.</FONT>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">Eleanor R. Brennan</FONT></I>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2">Director of Deutsche Asset Management and Co-Lead Portfolio Manager of the Trust.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     Joined Deutsche Asset Management in 1995 and the Trust team in 1998.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     Over 15 years of investment industry experience.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"><FONT COLOR="#000000">&#149;</FONT>     MS, Drexel University.</FONT>
</P>
<H2 ALIGN="LEFT">Investment Policy Effective July 31, 2002:</H2>
<P ALIGN="LEFT">The fund's investment policy and supporting disclosure was changed, effective
July 31, 2002:
</P>
<P ALIGN="LEFT">Under normal circumstances, the fund will seek to achieve its objective by investing
at least 80 percent of net assets, plus the amount of any borrowings for investment
purposes, in municipal securities. This policy is a fundamental policy which may be
changed only by shareholder vote.
</P>
<P ALIGN="LEFT"><FONT SIZE="-1">In the following interview, the Scudder Municipal Income Trust management team of
Co-Lead Portfolio Managers Philip G. Condon and Eleanor R. Brennan discuss the
Trust's performance and the recent market environment for municipal bonds.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">Q:  How did Scudder Municipal Income Trust perform
during the fiscal year ended November 30, 2002, and how
did the Trust's positioning affect its performance? </FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">A:</FONT></B><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">Scudder Municipal Income Trust delivered strong
absolute and relative results during the period. On a
market price basis, the Trust rose 3.76 percent during the
period. Also, for the fiscal year ended November 30, 2002,
the Trust gained 9.36 percent on a net asset value basis,
versus the 6.26 percent return of its average peer in the
Lipper General Municipal Debt Funds category for
closed-end funds. The unmanaged Lehman Brothers
Municipal Bond Index gained 6.32 percent during the
period.<FONT SIZE="-1"><SUP>1</SUP></FONT></FONT>
</P>
<FONT SIZE="-2" COLOR="#000000"><SUP>1</SUP><I> The Lehman Brothers Municipal Bond Index contains approximately 42,000 bonds. To be in the
index, a municipal bond must meet the following criteria: a minimum credit rating of BBB, issued
as part of an issue of at least $50 million, issued within the last five years and a maturity of at least
two years. Variable-rate bonds are excluded from the index. </I></FONT><BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Trust's long-term results are strong. The Trust ranked
5, 5, 2 and 8 for each of the one-, three-, five- and 10-year
periods, respectively, as of November 30, 2002. For
these time periods, there were 56, 51, 47 and 31 funds,
respectively, in the Lipper General Municipal Debt Funds
category for closed-end funds. (Please see the performance
summary on page <A HREF="#perfsum">4</A> for standardized return figures for
each time period. Past performance is no guarantee of
future results.) </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">During the period, the federal funds rate<FONT SIZE="-1"><SUP>2</SUP></FONT> remained at
historical lows. The Federal Reserve Board kept the federal
funds rate at 1.75 percent for much of the period but
further reduced that rate to 1.25 percent on November 6.
With interest rates so low, the Trust benefited from the
attractive rates afforded to it through its outstanding
preferred shares, thus enhancing the return to investors. </FONT>
</P>
<FONT SIZE="-2" COLOR="#000000"><SUP>2</SUP><I> The federal funds rate is the rate that banks charge each other for overnight loans. The Federal
Reserve Board's Open Market Committee sets a target rate to either make credit more easily
available or tighten monetary policy in an attempt to avoid economic imbalances such as high
inflation.</I></FONT><BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">Management's focus on intermediate- to longer-term
municipal bonds continued to aid the Trust's returns. The
steepening of the yield curve, as discussed further below,
helped the Trust's holdings perform well. (The yield curve
illustrates the relationship between the yields on bonds of
the same credit quality, but different maturities.) The
Trust's underweight in airline and tobacco bonds - two
areas of the municipal bond market that underperformed
in the period - also aided results. Airline bonds have
struggled going back to September 11, 2001. Recently,
they have been especially hard hit in the wake of the
bankruptcy filing by US Air. Tobacco bonds have suffered
as a result of oversupply in the marketplace. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">Q:  How did the bond market and municipal bonds,
in particular, perform over the fiscal year ended
November 30, 2002? </FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">A:</FONT></B><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">Most areas of the bond market continued to show
strength in the period. In the midst of an uncertain
economic and geopolitical environment, investors
continued to flock to more stable investment options,
such as US Treasury bonds and municipal bonds. This
year will be a record supply year for municipal bonds.
For the year to date through November 30, 2002, about
$330 billion in municipal bonds were issued. That
outpaced the previous record of $292 billion in 1993.
Typically, such strong supply would drive down the price
of bonds. However, since demand remained so strong
throughout the year, municipal bonds have continued to
perform well. Municipal bonds underperformed relative to
US Treasuries - the top-performing area of the
bond market.</FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Municipal bonds delivered strong results </FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">(12-month period ended November 30, 2002)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Lehman Brothers Municipal Bond Index </FONT></B><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">     6.32%</FONT></B>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Lehman Brothers Aggregate Bond Index </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.34</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Lehman Brothers High Yield Composite Bond Index </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -3.16</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">S&amp;P 500</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -16.51</FONT>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000">     The Lehman Brothers Aggregate Bond Index<B> </B>is an unmanaged index representing domestic taxable
investment grade bonds, with index components for government and corporate securities,
mortgage pass-through securities, and asset-backed securities with average maturities of one year
or more. </FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">     The Lehman Brothers High Yield Composite Bond Index is a market value-weighted index that
tracks the daily price-only, coupon, and total return performance of non-investment grade,
fixed-rate, publicly placed, dollar-denominated, and non-convertible debt registered with the US
Securities and Exchange Commission.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">     The S&amp;P 500 is an unmanaged index widely regarded as representative of the equity market in
general.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">     It is not possible to invest directly in an index.</FONT></I><BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">Tax-free bonds outperformed equities and high-yield
bonds. Overall, higher-quality corporate issues slightly
outperformed municipal bonds on a pretax basis, but
many individual corporate bonds struggled as news of
corporate accounting irregularities plagued certain
segments of the corporate market.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">Q:  How did the yield curve react during the period?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">A:</FONT></B><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">The municipal bond yield curve steepened
significantly. The shorter-term portion of the yield curve
saw most of the change. Specifically, as of November 30,
2001, the difference in yield between a one-year
AAA-rated municipal bond and a 30-year AAA-rated </FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Municipal bond yield curve </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM"><IMG SRC="mit_g10k190.gif" ALT="mit_g10k190"></TD>
</TR>

<TR>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Source: Deutsche Asset Management</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">This chart is not intended to represent the yield of any Scudder fund.</FONT></I>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">municipal bond was 313 basis points (or 3.13 percentage
points). The difference between those maturities had
increased to 368 basis points (or 3.68 percentage points)
as of November 30, 2002. The yields on individual
10-year AAA-rated municipal bonds generally declined
overall in the period. A 10-year AAA-rated municipal
bond yielded 3.87 percent as of November 30, 2002 -
33 basis points less than the 4.20 percent it was yielding
as of November 30, 2001. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">Q:  What's your outlook for the municipal bond market
over the course of the next six months? Further, how is
Scudder Municipal Income Trust positioned for this
expected environment?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3d0000">A:</FONT></B><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">We remain positive about the prospects for the
municipal bond market. Most notably, we believe tax-free
bonds are currently very attractive on an after-tax basis
versus US Treasury bonds with similar maturities. In
fact, currently a 30-year municipal bond is yielding
100 percent of a 30-year US Treasury bond on a pre-tax
basis. A 10-year municipal bond is currently yielding
92 percent of a 10-year US Treasury bond. These ratios
are quite unusual. Such ratios mean that in the case of the
30-year maturity the yield on the municipal bond is the
same as similar-maturity Treasury bonds - even before
tax benefits of municipal bonds are considered. In the case
of the 10-year maturities, the municipal bond's yield is
close to the same as similar-maturity Treasury bonds,
before tax considerations.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">While we do expect to see credit downgrades on
municipal-financed positions, in general high-grade
municipals have more stable credit ratings than their
taxable counterparts. Some states are currently
experiencing budgetary constraints as a result of the last
few years of tougher economic times, which has resulted
in reduced tax receipts. However, should the need arise,
municipalities should be able to generate more revenue
through raising state and local taxes, in order to fund their
loan payments.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We remain committed to our focus on maturities in that
portion of the yield curve where we feel we are able to
garner the most value for shareholders. We also expect to
continue our focus on call-protected bonds with solid
structures. Currently, we believe the best opportunities for
value are in intermediate- to longer-term municipal bonds
with slightly longer maturities in the range of 15 to
20 years. Further, we believe bond investments relative to
the inflation rate remain appealing. The market is not
forecasting a drastic increase in inflation yet, and
therefore, we expect bonds to remain an attractive part of
a well-balanced portfolio.</FONT>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2">The views expressed in this report reflect those of the portfolio managers only through the end of the
period of the report as stated on the cover. The managers' views are subject to change at any time,
based on market and other conditions and should not be construed as a recommendation.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="portsum" ID="portsum"></A>Portfolio Summary    </FONT><B><FONT SIZE="-1" COLOR="#3d0000">November 30, 2002</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Portfolio Composition</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/02</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/01</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Revenue Bonds</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">73%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">71%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">General Obligation Bonds</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">14%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">15%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">US Government Secured</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">8%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">9%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Lease Obligations</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">5%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">5%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Quality</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/02</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/01</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">AAA</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">71%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">73%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">AA</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">7%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">8%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">A</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">10%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">8%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">BBB</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">9%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">7%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">BB</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">1%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">1%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Not Rated</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">2%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">3%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Interest Rate Sensitivity</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/02</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">11/30/01</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Average Maturity</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">9.1 years</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">9.0 years</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Duration</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">6.2 years</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">6.8 years</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Top Five State Allocations at November 30, 2002 <BR>
</FONT></B><FONT SIZE="-2" COLOR="#ffffff">(40.3% of Investment Portfolio)</FONT>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER">
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP" COLSPAN="2">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Texas</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">13.3%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Illinois</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">7.7%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">New Jersey</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">6.9%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">New York</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">6.5%</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">District of Columbia</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">5.9%</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Portfolio Composition, Quality, Interest Rate Sensitivity and Top Five State Allocations are subject to
change.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">For more complete details about the fund's investment portfolio, see page <A HREF="#portfolio">14</A>. A quarterly Fund
Summary and Portfolio Holdings are available upon request.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="portfolio" ID="portfolio"></A>Investment Portfolio     </FONT><B><FONT SIZE="-1" COLOR="#3d0000">as of November 30, 2002</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">

<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Principal<BR>
Amount ($)</FONT></B>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">

<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<BR>
</TD>
</TR>

<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Municipal Investments 153.8%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Alabama 5.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Alabama, Port Authority Revenue, Docks Department, AMT,
6.3%, 10/1/2021 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,250,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,184,230</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Huntsville, AL, Hospital &amp; Healthcare Revenue, Health Care
Authority, Series A, 5.75%, 6/1/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,525,960</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Huntsville, AL, Water &amp; Sewer Revenue, AMT, 5.75%,
10/1/2011 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,560,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,404,872</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">24,115,062</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Arizona 1.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Arizona, Hospital &amp; Healthcare Revenue, Health Facilities
Authority, Catholic Healthcare West, Series A, 6.625%,
7/1/2020</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">7,332,850</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">California 2.7%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">California, Electric Revenue, Department of Water Resources
and Power Supply, Series A, 5.375%, 5/1/2022</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,350,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,396,305</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Sacramento County, Airport Revenue, AMT, Series A, 5.9%,
7/1/2024 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,388,100</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">12,784,405</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Colorado 9.0%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Adams County, Multi Family Housing Revenue, Oasis Park
Apartments Project, Series A, 6.15%, 1/1/2026</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,157,320</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Colorado, Hospital &amp; Healthcare Revenue, Portercare
Adventist Health Project, 6.5%, 11/15/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,069,900</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Colorado, Hospital &amp; Healthcare Revenue, Poudre Valley
Health Facilities:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.5%, 12/1/2017 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,145,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,484,511</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 12/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,705,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,275,956</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 12/1/2016 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,191,300</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Colorado, Single Family Housing Revenue, AMT, Series B2,
7.25%, 10/1/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,115,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,195,224</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Colorado, Transportation/Tolls Revenue, Anticipation Note,
6.0%, 6/15/2011 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,622,100</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Denver, CO, Airport Revenue, AMT:</FONT>
<BR><P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series E, 5.0%, 11/15/2020 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,941,140</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 11/15/2014 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,537,600</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">42,475,051</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">District of Columbia 9.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">District of Columbia, ETM, Prerefunded, 5.5%, 6/1/2014 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">640,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">708,595</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">District of Columbia, Core City GO:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.25%, 6/1/2027 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12,624,250</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.5%, 6/1/2011</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">25,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">27,709,750</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">District of Columbia, State GO, Series A, 5.5%, 6/1/2014 (b)</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,860,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,014,454</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">43,057,049</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Florida 6.3%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dade County, FL, Airport Revenue, AMT, Series A, 5.75%,
10/1/2026 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">13,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">13,678,860</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dade County, FL, Special Assessment Revenue, Zero Coupon: </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, Prerefunded, 10/1/2022 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,735,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,701,062</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, Prerefunded, 10/1/2024 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">16,955,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,214,680</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hillsborough County, Industrial Development Revenue,
University Community Hospital Project, Series A, 5.625%,
8/15/2023</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">896,770</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Miami-Dade County, Transportation/Tolls Revenue,
Expressway Authority:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.0%, 7/1/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,665,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,893,954</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.0%, 7/1/2014 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,129,800</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Orange County, Hospital &amp; Healthcare Revenue, Health
Facilities Authority, Orlando Regional Healthcare, 5.75%,
12/1/2032</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,006,420</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Palm Beach County, School District REV Lease, Series A,
Prerefunded, 5.75%, 8/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,850,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,282,231</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">29,803,777</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Hawaii 8.5%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hawaii, Airport Revenue, AMT, Series B, 6.5%, 7/1/2013 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,800,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,207,912</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hawaii, Electric Revenue, Department of Budget &amp; Finance,
AMT:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series D, 6.15%, 1/1/2020 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,195,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,392,265</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.2%, 5/1/2026 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">13,200,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">14,442,384</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hawaii, Port Authority Revenue, AMT:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 7/1/2011 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,950,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,300,136</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 7/1/2012 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,135,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,541,923</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hawaii, State GO Lease, Series CU, 5.875%, 10/1/2016 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,220,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,719,841</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hawaii, State GO, Series CT, Prerefunded, 5.75%, 9/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,310,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,664,793</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">40,269,254</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Idaho 0.3%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Idaho, Single Family Housing Revenue, AMT:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series C2, 6.9%, 7/1/2025</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,105,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,120,945</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A2, 7.875%, 7/1/2021</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">485,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">485,514</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,606,459</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Illinois 11.8%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chicago, IL, Airport Revenue, O'Hare International Airport,
American Airlines Project, 8.2%, 12/1/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,775,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,005,691</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chicago, IL, Airport Revenue, O'Hare International Airport,
AMT, 5.5%, 1/1/2014 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,614,300</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chicago, IL, Core City GO:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, Prerefunded, 6.0%, 1/1/2014 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,085,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,432,820</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, Prerefunded, 6.125%, 1/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,350,120</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.125%, 1/1/2016 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,268,760</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chicago, IL, Other GO, Neighborhoods Alive 21 Project:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, Prerefunded, 6.0%, 1/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,166,820</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.0%, 1/1/2017 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,120,770</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chicago, IL, Skyway Toll Bridge Revenue, Prerefunded,
6.75%, 1/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,775,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,985,539</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Higher Education Revenue, DePaul University,
Educational Facilities Authority:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.625%, 10/1/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,695,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,978,999</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.625%, 10/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,710,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,872,159</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Higher Education Revenue, MJH Educational
Assistance Authority, Series D, 5.45%, 9/1/2014 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,604,240</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Hospital &amp; Healthcare Revenue, Adventist Health
System, 5.5%, 11/15/2020</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,449,125</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Hospital &amp; Healthcare Revenue, Childrens Memorial
Hospital, Series A, 5.625%, 8/15/2019 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,198,600</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Pollution Control Revenue, Commonwealth Edison
Co. Project, Series D, 6.75%, 3/1/2015 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,220,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,691,036</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Illinois, Sales &amp; Special Tax Revenue, Metropolitan Pier &amp;
Exposition Authority:</FONT>
<BR><P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.5%, 6/15/2017 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,555,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,722,256</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, ETM, 5.5%, 6/15/2017 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,955,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,180,842</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Will County, Industrial Development Revenue, Mobil Oil
Refining Corp. Project, AMT, 6.0%, 2/1/2027</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,094,820</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">55,736,897</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Indiana 6.9%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Indiana, Hospital &amp; Healthcare Revenue, Charity Obligation
Group, Series D, 5.25%, 11/15/2015</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,200,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,362,968</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Indiana, Hospital &amp; Healthcare Revenue, Health Facilities
Authority, 5.5%, 11/1/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,978,000</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Indiana, Hospital &amp; Healthcare Revenue, Riverview Hospital
Project:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.5%, 8/1/2019</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,300,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,227,005</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.5%, 8/1/2024</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">912,070</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Indianapolis, IN, Electric Revenue, Series A, Prerefunded,
5.875%, 6/1/2024 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">14,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15,144,780</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">32,624,823</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Kansas 0.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Overland Park, KS, Industrial Development Revenue,
Development Corp., Series A, 7.375%, 1/1/2032</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,054,690</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Kentucky 1.3%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Kentucky, Hospital &amp; Healthcare Revenue, Economic
Development Finance Authority, Norton Healthcare, Inc.:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.5%, 10/1/2020</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,042,880</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 6.625%, 10/1/2028</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,060,920</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,103,800</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Louisiana 0.5%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Louisiana, Electric Revenue, 5.75%, 1/1/2013 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">2,271,240</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Maine 3.5%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Maine, Hospital &amp; Healthcare Revenue, Series B, Prerefunded,
7.0%, 7/1/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,230,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,663,321</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Maine, Hospital &amp; Healthcare Revenue:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series D, 5.7%, 7/1/2013 (d)</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,340,650</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, Prerefunded, 7.0%, 7/1/2024</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">90,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">99,220</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Maine, Transportation/Tolls Revenue, 5.0%, 7/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,165,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,335,154</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">16,438,345</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Maryland 2.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Howard County, Multi Family Housing Revenue, Braeland
Commons Project, Series B, 6.2%, 6/15/2023</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,429,300</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Howard County, Multi Family Housing Revenue, Eden
Commons Project, Series A, 6.2%, 6/15/2023</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,250,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,129,810</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Maryland, Hospital &amp; Healthcare Revenue, Health &amp; Higher
Education Facilities Authority, Doctors Community
Hospital, 5.5%, 7/1/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">914,480</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Maryland, Hospital &amp; Healthcare Revenue, University of
Maryland Medical System, 6.75%, 7/1/2030</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,697,675</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,171,265</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Massachusetts 3.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Massachusetts, Airport Revenue, AMT, Series B, 5.5%,
7/1/2009</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,749,280</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Massachusetts, Airport Revenue, U.S. Airways, Inc. Project,
AMT, Series A, 5.875%, 9/1/2023 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,156,800</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Massachusetts, Port Authority Revenue, AMT, Series B, 5.5%,
7/1/2015</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,229,890</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">17,135,970</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Michigan 2.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Chippewa County, Hospital &amp; Healthcare Revenue, Chippewa
County War Memorial, Series B, 5.625%, 11/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,431,870</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Michigan, Industrial Development Revenue:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.5%, 6/1/2018 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,425,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,631,048</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.75%, 6/1/2016 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,640,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,078,573</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,141,491</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Minnesota 2.3%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Minneapolis and St. Paul, MN, Airport Revenue, AMT,
Series B, 6.0%, 1/1/2012 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,395,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,886,801</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Minneapolis and St. Paul, MN, Port Authority Revenue, AMT: </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.5%, 1/1/2010 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,035,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,293,187</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.625%, 1/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,715,150</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,895,138</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Missouri 2.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Missouri, Hospital &amp; Healthcare Revenue, Lake of the Ozarks
General Hospital:</FONT>
<BR><P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Prerefunded, 6.5%, 2/15/2021</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">760,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">867,244</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.5%, 2/15/2021</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">365,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">374,727</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">St. Louis, MO, County GO, Industrial Development Authority
Revenue, St. Louis Convention Center, Series A, 7.2%,
12/15/2028</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,939,280</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">St. Louis, MO, County GO Lease, Regional Convention &amp;
Sports Complex Authority, Series C, 7.9%, 8/15/2021</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">80,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">81,516</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">St. Louis, MO, Industrial Development Revenue, Convention
Center AMT, Series A, 6.875%, 12/15/2020</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,474,560</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">St. Louis, MO, Regional Convention &amp; Sports Complex
Authority, Series C, Prerefunded, 7.9%, 8/15/2021</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,138,870</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">9,876,197</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Nevada 2.5%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Las Vegas, NV, Core City GO, Water &amp; Sewer Revenue,
5.375%, 4/1/2014 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,705,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,917,613</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Nevada, State GO, Capital Improvement and Cultural Affairs
Project, Series A, 5.5%, 2/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,575,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,780,202</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washoe County, School District GO, 5.75%, 6/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,450,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,258,889</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">11,956,704</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">New Hampshire 0.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Nashua, NH, Hospital &amp; Healthcare Revenue, Nashua
Memorial Hospital, 6.0%, 10/1/2023</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,003,360</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">New Jersey 10.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Hospital &amp; Healthcare Revenue, General Hospital
Center at Passaic, ETM, 6.75%, 7/1/2019</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,168,200</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Industrial Development Revenue, American
Water Co., Inc. Project, AMT, Series A, 6.875%,
11/1/2034 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,775,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,808,107</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Industrial Development Revenue, Economic
Development Authority, Harrogate, Inc., Series A, 5.875%,
12/1/2026</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,400,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,308,832</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Resource Recovery Revenue, Tobacco Settlement
Financing Corp, 5.75%, 6/1/2032</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,600,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,336,006</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, State Agency GO Lease, Transportation Trust
Fund Authority, Series A, 5.75%, 6/15/2017</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,434,100</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Transportation/Tolls Revenue, Economic
Development Authority, Series A, 5.75%, 5/1/2013</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,626,820</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Jersey, Transportation/Tolls Revenue, Garden State
Parkway Project, 5.6%, 1/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,577,520</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">50,259,585</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">New Mexico 0.2%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New Mexico, Single Family Housing Revenue, Mortgage
Finance Authority, AMT, Series B, 8.3%, 3/1/2020</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">720,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">731,030</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">New York 10.1%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Nassau County, Hospital &amp; Healthcare Revenue, 6.0%,
8/1/2015 (b)</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,390,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,857,956</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, Electric Revenue, Energy Research and
Development Authority Pollution Control Niagara
Mohawk Power, Series B, 1.4%, 12/1/2025 (c) (d)</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">800,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">800,000</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, Sales &amp; Special Tax Revenue, Transitional Finance
Authority, Series B, 6.125%, 11/15/2015 </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,539,550</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, State Agency GO Lease, Higher Education
Revenue, Dormitory Authority, Bronx-Lebanon Hospital
Center, Series E, 5.2%, 2/15/2016</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,770,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,821,843</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, State Agency GO Lease, Higher Education
Revenue, Dormitory Authority, City University, Series A,
5.625%, 7/1/2016</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,667,670</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, State Agency GO Lease, Higher Education
Revenue, Dormitory Authority, Jamaica Hospital, Series F,
5.2%, 2/15/2016</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,029,290</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, Transportation/Tolls Revenue:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.625%, 4/1/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,723,600</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.75%, 4/1/2014 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,303,660</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, NY, Core City GO:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series F, 5.25%, 8/1/2015</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,085,200</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series F, 5.25%, 8/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,380,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,937,821</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series D, 7.5%, 8/1/2003</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">310,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">312,781</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series D, 7.5%, 8/1/2004</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">755,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">761,772</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, NY, Sales &amp; Special Tax Revenue, Transitional
Finance Authority, Series B, 6.125%, 11/15/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">355,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">405,513</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">New York, NY, Transitional Finance Authority, Series B,
Prerefunded, 6.125%, 11/15/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,645,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,940,853</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Niagara Falls, NY, Airport Revenue, Greater Buffalo
International Airport, AMT, Series A, 6.25%, 4/1/2024 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,750,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,094,483</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Niagara Falls, NY, School District GO, 5.6%, 6/15/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,180,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,314,001</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">47,595,993</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">North Carolina 1.5%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Charlotte, NC, Airport Revenue, AMT:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.75%, 7/1/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,480,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,755,057</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.875%, 7/1/2014 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,140,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,242,076</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">North Carolina, Electric Revenue, Municipal Power Agency,
Series B, 6.375%, 1/1/2013</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,263,700</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">7,260,833</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">North Dakota 0.8%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Grand Forks, ND, Hospital &amp; Healthcare Revenue, Altru
Health Care System, 7.125%, 8/15/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,400,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,653,198</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Ohio 2.9%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cuyahoga County, Hospital Revenue, Meridia Health Systems,
Prerefunded, 6.25%, 8/15/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,350,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,653,573</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Green Springs, OH, Senior Care Revenue, St. Francis Health
Care Center Project, Series A, 7.125%, 5/15/2025</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,883,580</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Lorain County, Hospital &amp; Healthcare Revenue, Catholic
Health Care  Partners, Series A, 5.25%, 10/1/2033</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,416,500</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ohio, Higher Education Revenue, University of Findlay
Project:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.125%, 9/1/2016</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,019,440</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.15%, 9/1/2011</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,635,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,675,139</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">13,648,232</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Oregon 3.4%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Oregon, Other REV Lease, Department of Administrative
Services:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.5%, 5/1/2010 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,245,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,454,885</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.6%, 5/1/2011 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,120,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,335,095</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Oregon, State GO Lease, Department of Administrative
Services, Series A, Prerefunded, 6.25%, 5/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,181,410</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Oregon, State REV Lease, Department of Administrative
Services, Series A, Prerefunded, 6.25%, 5/1/2018 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,181,410</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Portland, OR, Special Assessment Revenue, Downtown
Waterfront:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.625%, 6/15/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,100,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,389,912</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.75%, 6/15/2018 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,225,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,407,472</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.75%, 6/15/2019 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,820,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,032,572</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">15,982,756</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Pennsylvania 0.6%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Pennsylvania, Hospital &amp; Healthcare Revenue, Economic
Development Financing Authority, UPMC Health System,
Series A, 6.0%, 1/15/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,570,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">2,623,148</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Rhode Island 0.8%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Rhode Island, Special Assessment Revenue, Series A, 6.125%,
6/1/2032</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,852,320</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">South Carolina 0.8%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Greenwood County, Hospital &amp; Healthcare Revenue, South
Carolina Memorial Hospital, 5.5%, 10/1/2031</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,456,620</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">South Carolina, Hospital &amp; Healthcare Revenue, Jobs
Economic Development Authority, Palmetto Health
Alliance, Series A, 7.375%, 12/15/2021</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,185,480</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,642,100</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Tennessee 2.7%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Clarksville, TN, Core City GO, Public Building Authority,
1.25%, 7/1/2031 (c) (d)</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">130,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">130,000</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Memphis-Shelby County, Airport Revenue, AMT, Series D,
6.25%, 3/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,690,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,197,646</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shelby County, Hospital &amp; Healthcare Revenue, Health
Education &amp; Housing Facilities Board, 6.5%, 9/1/2026</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,262,640</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">12,590,286</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Texas 20.4%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Austin, TX, Sales &amp; Special Tax Revenue, Hotel Occupancy Tax:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.0%, 11/15/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,190,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,608,369</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.0%, 11/15/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,480,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,904,804</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.0%, 11/15/2016 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,625,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,055,831</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Brazos, TX, Pollution Control Revenue, Brazos River
Authority, Texas Utilities Electric Co. Project, AMT, Series C,
5.75%, 5/1/2036</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,521,700</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dallas Fort-Worth, TX, Airport Revenue, International
Airport, AMT, Series A, 5.875%, 11/1/2016 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,092,150</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dallas, TX, Transportation/Tolls Revenue, Turnpike Authority,
5.5%, 1/1/2015 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">14,605,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15,818,237</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">EL Paso, TX, State GO:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.875%, 8/15/2012</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,110,250</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.875%, 8/15/2013</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,570,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,742,151</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">5.875%, 8/15/2014</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,665,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,844,803</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Harris County, Hospital &amp; Healthcare Revenue, Health
Facilities Development Corp., Memorial Hermann
Healthcare, Series A, 6.375%, 6/1/2029</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,746,950</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Houston, TX, Airport Revenue, People Mover Project, AMT,
Series A, 5.5%, 7/15/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,300,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,446,817</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Houston, TX, Port Authority Revenue, Airport Revenue, AMT,
Series A, 5.875%, 7/1/2014 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,960,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,315,885</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Lower Neches Valley, TX, Industrial Development Revenue,
Mobil Oil Refining Corp. Project, AMT, 6.4%, 3/1/2030</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">17,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">17,817,190</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Red River, TX, School District REV Lease, St. Marks School
Project, 6.0%, 8/15/2019</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,390,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,815,648</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Richardson, TX, Hospital &amp; Healthcare Revenue, Hospital
Authority, 5.625%, 12/1/2028</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,939,450</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Tarrant County, Hospital &amp; Healthcare Revenue, Health
Facilities Development Corp., 6.7%, 11/15/2030</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,766,310</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Texas, Industrial Development Revenue, Waste Disposal
Authority, AMT, Series A, 6.1%, 8/1/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,998,600</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Texas, State GO, College Student Loans, AMT, 5.0%, 8/1/2021</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,015,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,847,775</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">96,392,920</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Utah 0.0%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Utah, Single Family Housing Revenue, Housing Finance
Agency, AMT, Series B2, 6.65%, 7/1/2026</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">190,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">191,359</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Virginia 2.9%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington D.C., Airport Revenue, AMT, Series A, 5.75%,
10/1/2020 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">13,100,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">13,796,920</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Washington 7.4%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Seattle, WA, Airport Revenue, AMT, Series B, 6.0%,
2/1/2013 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,355,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,385,730</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Seattle, WA, Special Assessment Revenue, AMT:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.5%, 9/1/2011 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,085,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,171,540</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.75%, 9/1/2013 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,045,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,134,274</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Skagit County, School District GO, School District No. 1,
Burlington Edison, 5.625%, 12/1/2014</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,570,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,718,632</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Snohomish County, Electric Revenue, Public Utility District
No. 1, 5.375%, 12/1/2024</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,079,680</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, Electric Revenue, Energy Northwest Columbia
Generating, Series B, 6.0%, 7/1/2018 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,331,170</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, Electric Revenue, Nuclear Project No. 1:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, 5.6%, 7/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,995,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,069,034</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series B, Prerefunded, 5.6%, 7/1/2015 (b) </FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,225</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, Electric Revenue, Nuclear Project No. 2, Series A,
5.0%, 7/1/2012</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,212,600</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, Electric Revenue, Nuclear Project No. 3, Series B,
5.6%, 7/1/2015 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,037,110</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, Hospital &amp; Healthcare Revenue, Group Health
Coop of Puget Sound, 5.375%, 12/1/2017 (b) </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,500,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,570,935</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Washington, State GO:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.5%, 7/1/2013</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,169,180</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Series A, 5.5%, 7/1/2016</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,835,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,174,659</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">35,059,769</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">West Virginia 4.0%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">West Virginia, Hospital Finance Authority, Charleston Medical
Center:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Prerefunded, 6.75%, 9/1/2022</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,645,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,746,453</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Prerefunded, 6.75%, 9/1/2030</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,605,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,954,697</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">West Virginia, Hospital &amp; Healthcare Revenue, Hospital
Finance Authority, Charleston Medical Center:</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.75%, 9/1/2022</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,355,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,562,593</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">6.75%, 9/1/2030</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">395,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">427,212</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">West Virginia, Hospital &amp; Healthcare Revenue, Oak Hill
Hospital, Series B, 6.75%, 9/1/2030</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,435,760</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">19,126,715</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Wisconsin 2.2%</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Wisconsin, Hospital &amp; Healthcare Revenue, Health &amp;
Educational Facilities Authority, Aurora Health Care, Inc.,
Series A, 5.6%, 2/15/2029</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,598,299</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Wisconsin, Special Assessment Revenue, 6.125%, 6/1/2027</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,000,000</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,798,250</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,396,549</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<FONT SIZE="-2" COLOR="#000000"><B>Total Municipal Investments </B> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">727,657,540</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">

<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">% of
Net Assets</FONT></B>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">

<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">

<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Total Investment Portfolio</B> (Cost $674,135,455) (a)</FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">153.8</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">727,657,540</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Other Assets and Liabilities, Net</B></FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2.2</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,426,257</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Remarketed Preferred Shares, at Redemption Value</B></FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">(56.0)</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">(265,000,000)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Net Assets Applicable to Common Shareholders </B> </FONT>
<BR></TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">100.0</FONT><BR>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">473,083,797</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000">(a)  The cost for federal income tax purposes was $673,954,238. At November 30, 2002, net
unrealized appreciation for all securities based on tax cost was $53,703,302. This consisted of
aggregate gross unrealized appreciation for all securities in which there was an excess of value
over tax cost of $59,146,207 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value of $5,442,905.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">(b)  Bond is insured by one of these companies:</FONT></I><BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">AMBAC</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">AMBAC Assurance Corp.</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Capital Guaranty</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">FGIC</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Financial Guaranty Insurance Company</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">FHA</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Federal Housing Administration</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">FSA</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Financial Security Assurance</FONT><BR>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">MBIA</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Municipal Bond Investors Assurance</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000">(c)  Variable rate demand notes are securities whose interest rates are reset periodically at market
levels. These securities are often payable on demand and are shown at their current rates as of
November 30,2002.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">(d)  Security incorporates a letter of credit or line of credit from a major bank.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000">AMT: Subject to alternative minimum tax</FONT></I><BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">ETM: Bonds bearing the description ETM (escrowed to maturity) are collateralized by US Treasury
securities which are held in escrow and used to pay principal and interest on bonds so designated.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Prerefunded: Bonds which are prerefunded are collateralized by US Treasury securities which are held
in escrow and are used to pay principal and interest on tax-exempt issues and to retire the bonds in full
at the earliest refunding date.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="fins" ID="fins"></A>Financial Statements</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Assets and Liabilities </FONT></B><FONT SIZE="-2" COLOR="#ffffff">as of November 30, 2002</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Assets</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Investments in securities, at value (cost $674,135,455)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       727,657,540</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cash</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        105,755</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Interest receivable</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        12,749,040</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total assets</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        740,512,335</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Liabilities</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Payable for investments purchased</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,517,839</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dividends payable</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        155,677</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Accrued management fee</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        338,042</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Accrued remarketing fee</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        269,000</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Other accrued expenses and payables</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        147,980</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total liabilities</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        2,428,538</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Remarketed preferred shares, at redemption value</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     265,000,000</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net assets, at value</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    473,083,797</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Net Assets</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets applicable to common shareholders consist of:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Undistributed net investment income</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        2,531,706</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) on investments</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        53,522,085</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Accumulated net realized gain (loss)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (14,381,585)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Paid-in capital</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        431,411,591</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net assets applicable to common shareholders</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    473,083,797</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Net Asset Value</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Net Asset Value</B> per common share
($473,083,797 / 38,832,628 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    12.18</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Operations </FONT></B><FONT SIZE="-2" COLOR="#ffffff">for the year ended November 30, 2002</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Investment Income</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Income:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Interest</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       40,191,577</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Expenses:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Management fee</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4,032,646</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Services to shareholders</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        80,806</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Custodian fees</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        24,158</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Auditing</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        75,068</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Legal</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        22,202</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Trustees' fees and expenses</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        32,552</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Reports to shareholders</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        82,577</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Auction agent fee</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        523,773</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Other</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        160,505</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total expenses, before expense reductions</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,034,287</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Expense reductions</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (1,647)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total expenses, after expense reductions</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,032,640</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net investment income </FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     35,158,937</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Realized and Unrealized Gain (Loss) on Investment Transactions</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) from investments</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        2,304,696</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) during the period on
investments</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        6,496,800</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net gain (loss) on investment transactions</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     8,801,496</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Dividends on remarketed preferred shares</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     (3,894,332)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from operations</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    40,066,101</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Changes in Net Assets</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" ROWSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Increase (Decrease) in Net Assets</FONT></B>
<BR></TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Years Ended November 30,</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2002</FONT></B>
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2001 (a)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Operations:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       35,158,937</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       35,495,683</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) on investment transactions</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        2,304,696</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        732,792</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) on
investment transactions during the period</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        6,496,800</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        22,417,171</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dividends on remarketed preferred shares</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (3,894,332)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (8,435,737)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from
operations</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        40,066,101</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        50,209,909</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Distributions to common shareholders from:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (28,111,448)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (27,959,493)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Increase (decrease) in net assets</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        11,954,653</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        22,250,416</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets at beginning of period</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        461,129,144</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        438,878,728</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets at end of period (including undistributed
(distributions in excess of) net investment income of
$2,531,706 and $(803,925), respectively)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    473,083,797</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    461,129,144</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-1" COLOR="#000000">Other Information</FONT></B>
<BR></TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER">
</P>
</TD>
<TD ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER">
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shares outstanding at beginning of period</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38,832,628</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38,832,628</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shares outstanding at end of period</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38,832,628</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38,832,628</FONT>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000">(a)  Restated. See Note F to Financial Statements.</FONT></I><BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="high" ID="high"></A>Financial Highlights</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Years Ended November 30,</FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2002<SUP>d</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2001<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2000<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">1999<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">1998<SUP>e</SUP></FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="6">
<B><FONT SIZE="-1" COLOR="#000000">Selected Per Share Data</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net asset value, beginning of period</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.87</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.30</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.03</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    12.41</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    12.33</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">Income (loss) from investment operations:</FONT></I><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income </FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .91<SUP>a</SUP></FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .91<SUP>a</SUP></FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .93<SUP>a</SUP></FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .92<SUP>a</SUP></FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .99</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized and unrealized gain (loss) on
investment transactions</FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .22</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .59</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .42</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (1.28)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .16</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">Dividends on remarketed preferred shares
(common share equivalent):</FONT></I><BR>
<FONT SIZE="-2" COLOR="#000000">From net investment income</FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.10)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.21)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.28)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.18)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.20)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total from investment operations</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.03</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.29</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.07</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.54)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .95</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">Less distributions from:</FONT></I><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income to common
shareholders</FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.72)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.72)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.80)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.83)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.87)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dilution resulting from remarketed
preferred shares<SUP>b</SUP></FONT>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.01)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        -</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net asset value, end of period</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    12.18</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.87</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.30</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.03</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    12.41</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Market value, end of period</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.06</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    11.37</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    10.25</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    10.31</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    14.63</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="6">
<B><FONT SIZE="-1" COLOR="#000000">Total Return </FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Based on net asset value (%)<SUP>c</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        9.36</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        11.93</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10.40</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (4.69)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.96</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Based on market value (%)<SUP>c</SUP></FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        3.76</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        18.10</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.11</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><SUP>   </SUP>(24.40)</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10.60</FONT>
</TD>
</TR>


</TABLE>
<BR>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Years Ended November 30, </FONT></B><FONT SIZE="-2" COLOR="#ffffff">(continued)</FONT>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2002<SUP>d</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2001<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2000<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">1999<SUP>e</SUP></FONT></B>
</P>
</TD>
<TD BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">1998<SUP>e</SUP></FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="6">
<B><FONT SIZE="-1" COLOR="#000000">Ratios to Average Net Assets and Supplemental Data</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets, end of period ($ millions)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        473</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        461</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        439</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        428</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        478</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of expenses (%) (based on net assets of
common shares)  </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.07</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.09</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.24</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.13</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.02</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of expenses  (%) (based on net assets of
common and remarketed preferred shares) </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .69</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .69</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .77</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .77</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .70</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of net investment income  (%) (based
on net assets of common shares)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.51</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.72</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        8.48</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.76</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        8.04</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of net investment income  (%) (based
on net assets of common and remarketed
preferred shares) </FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4.80</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4.90</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5.23</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5.27</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5.54</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Portfolio turnover rate (%)</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        17</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Remarketed preferred shares information at
end of period:</FONT><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Aggregate amount outstanding
($ millions)</FONT>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        265</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        265</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        265</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        265</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        215</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Asset coverage per share ($)<SUP>*</SUP></FONT>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        13,900</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        13,700</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        13,300</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        13,100</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        16,100</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Liquidation and market value per share ($)</FONT>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,000</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,000</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,000</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,000</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,000</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="6">
<I><FONT SIZE="-2" COLOR="#000000"><SUP>a</SUP> Based on average common shares outstanding during the period.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>b</SUP> On November 24, 1999, the Fund issued 10,000 remarketed preferred shares.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>c       </SUP>Total return based on net asset value reflects changes in the Fund's net asset value during the
period. Total return based on market value reflects changes in market value. Each figure includes
reinvestment of dividends. These figures will differ depending upon the level of any discount from
or premium to net asset value at which the Fund's shares trade during the period.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>d</SUP> As required, effective December 1, 2001, the Fund has adopted the provisions of the AICPA Audit
and Accounting Guide for Investment Companies and began accreting market discount on debt
securities. The effect of this change for the year ended November 30, 2002 was to increase net
investment income by an amount less than $.005 and decrease net realized and unrealized gain
(loss) per share by an amount less than $.005. Per share data and ratios for periods prior to
December 1, 2001 have not been restated to reflect this change in presentation.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>e</SUP> As discussed in Note F to the financial statements, in 2001 the Fund changed its method of
classifying remarketed preferred shares.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>*</SUP> Asset coverage per share equals the total net assets of both common and remarketed preferred
shares of the Fund divided by the total number of remarketed preferred shares outstanding at the
end of the period.</FONT></I><BR>
</TD>
</TR>


</TABLE>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="notes" ID="notes"></A>Notes to Financial Statements    </FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">A. Significant Accounting Policies</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Municipal Income Trust (the ``Fund'') is registered under the Investment
Company Act of 1940, as amended (the ``1940 Act''), as a closed-end, diversified
management investment company organized as a Massachusetts business trust.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America which require the use of
management estimates. Actual results could differ from those estimates. The policies
described below are followed consistently by the Fund in the preparation of its
financial statements.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Security Valuation.</FONT></B> Investments are stated at value determined as of the close of
regular trading on the New York Stock Exchange on each day the exchange is open
for trading. Debt securities are valued by independent pricing services approved by
the Trustees of the Fund, whose valuations are intended to reflect the mean between
the bid and asked prices. If the pricing services are unable to provide valuations,
securities are valued at the average of the means based on the most recent bid and
asked quotations or evaluated prices obtained from two broker dealers. Such services
may use various pricing techniques which take into account appropriate factors such
as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other
data, as well as broker quotes.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Money market instruments purchased with an original or remaining maturity of sixty
days or less, maturing at par, are valued at amortized cost.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Securities and other assets for which market quotations are not readily available or for
which the above valuation procedures are deemed not to reflect fair value are valued
in a manner that is intended to reflect their fair value as determined in accordance
with procedures approved by the Trustees.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Federal Income Taxes.</FONT></B> The Fund's policy is to comply with the requirements of the
Internal Revenue Code, as amended, which are applicable to regulated investment
companies, and to distribute all of its taxable and tax-exempt income to its
shareholders. Accordingly, the Fund paid no federal income taxes and no federal
income tax provision was required. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">At November 30, 2002, the Fund had a net tax basis capital loss carryforward of
approximately $14,165,000 which may be applied against any realized net taxable
capital gains of each succeeding year until fully utilized or until November 30, 2003
($5,067,000), November 30, 2007 ($5,496,000) and November 30, 2008
($3,602,000), the respective expiration dates, whichever occurs first.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Distribution of Income and Gains.</FONT></B> Distributions of net investment income to
common shareholders, if any, are made monthly. Net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be taxable to the
Fund if not distributed, and, therefore, will be distributed to shareholders at least
annually.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The timing and characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may differ
from accounting principles generally accepted in the United States of America. As a
result, net investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from distributions during
such period. Accordingly, the Fund may periodically make reclassifications among
certain of its capital accounts without impacting the net asset value of the Fund.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">At November 30, 2002, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows:</FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Undistributed ordinary income</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       191,741</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Undistributed tax-exempt income</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       2,530,238</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Undistributed long-term capital gains</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       -</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Capital loss carryforwards</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       (14,165,000)</FONT>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) on investments</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       53,703,302</FONT>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">In addition, during the year ended November 30, 2002 the character of distributions
paid to shareholders by the Fund is summarized as follows:</FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Distributions from tax-exempt income</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       32,005,780</FONT>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Remarketed Preferred Shares.</FONT></B> The Fund has issued and outstanding 10,800
Series A, 10,700 Series B, 10,800 Series C, 10,700 Series D and 10,000 Series E
remarketed preferred shares, each at a liquidation value of $5,000 per share. The
preferred shares are senior to and have certain class specific preferences over the
common shares. The dividend rate on each series is set by the remarketing agent, and
the dividends are generally paid every 28 days. The 1940 Act requires that the
preferred shareholders of the Fund, voting as a separate class, have the right to:
a) elect at least two trustees at all times, and b) elect a majority of the trustees at any
time when dividends on the preferred shares are unpaid for two full years. Unless
otherwise required by law or under the terms of the preferred shares designation
statement, each preferred share is entitled to one vote and preferred shareholders will
vote together with common shareholders as a single class and have the same voting
rights.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Other. </FONT></B>Investment transactions are accounted for on the trade date. Interest income
is recorded on the accrual basis. Realized gains and losses from investment
transactions are recorded on an identified cost basis. All premiums and discounts are
amortized/accreted for financial reporting purposes.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">B. Purchases and Sales of Securities</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">During the year ended November 30, 2002, purchases and sales of investment
securities (excluding short-term investments) aggregated $53,488,443 and
$52,127,999, respectively.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">C. Related Parties</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">On April 5, 2002, 100% of Zurich Scudder Investments, Inc. (&quot;ZSI&quot;) was acquired
by Deutsche Bank AG with the exception of Threadneedle Investments in the UK
Upon the closing of this transaction, ZSI became part of Deutsche Asset
Management and changed its name to Deutsche Investment Management Americas
Inc. (&quot;DeIM&quot; or the &quot;Advisor&quot;). Effective April 5, 2002, the investment management
agreement with ZSI was terminated and DeIM became the investment advisor for
the Fund. The management fee rate paid by the Fund under the new Investment
Management Agreement (the &quot;Management Agreement&quot;) is the same as the previous
investment management agreement.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Management Agreement.</FONT></B> Under the Management Agreement, the Advisor directs
the investments of the Fund in accordance with its investment objectives, policies
and restrictions. The Advisor determines the securities, instruments and other
contracts relating to investments to be purchased, sold or entered into by the Fund.
In addition to portfolio management services, the Advisor provides certain
administrative services in accordance with the Management Agreement. The Fund
pays a monthly investment management fee of 1/12 of the annual rate of 0.55% of
the Fund's average weekly net assets, of both common and remarketed preferred
shares computed and accrued daily and payable monthly.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Service Provider Fees.</FONT></B> Scudder Investments Service Company (&quot;SISC&quot;), an affiliate
of the Advisor, is the transfer, dividend-paying and shareholder service agent for the
Fund. The amount charged to the Fund by SISC aggregated $80,806, of which
$29,412 is unpaid at November 30, 2002.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Trustees' Fees and Expenses.</FONT></B> The Fund pays each Trustee not affiliated with the
Advisor retainer fees plus specified amounts for attended board and committee
meetings.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">D. Expense Off-Set Arrangements</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances were used to reduce a portion of the
Fund's expenses. During the year ended November 30, 2002, the Fund's custodian
fees were reduced by $1,647 under this arrangement.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">E. Line of Credit </FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund and several other affiliated funds (the ``Participants'') share in a $1.3 billion
revolving credit facility administered by J.P. Morgan Chase Bank for temporary or
emergency purposes. The Participants are charged an annual commitment fee which
is allocated, pro rata based upon net assets, among each of the Participants. Interest is
calculated at the Federal Funds Rate plus 0.5 percent. The Fund may borrow up to a
maximum of 33 percent of its net assets under the agreement. During the period the
Fund had no borrowings on the line of credit.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">F. Change in Accounting Principle</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">As required, effective December 1, 2001, the Fund has adopted the provisions of the
AICPA Audit and Accounting Guide for Investment Companies and began accreting
market discount on debt securities. Prior to December 1, 2001, the Fund did not
accrete market discount on debt securities. The cumulative effect of this accounting
change had no impact on total net assets of the Fund, but resulted in a $145,998
increase in cost of securities and a corresponding $145,998 decrease in net unrealized
appreciation, based on securities held by the Fund on December 1, 2001.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The effect of this change for the year ended November 31, 2002 was to increase net
investment income by $36,543, decrease unrealized appreciation by $35,219 and
decrease net realized gains by $1,324. The statement of changes in net assets and
financial highlights for prior periods have not been restated to reflect this change in
presentation.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">In addition, effective December 1, 2001, the Fund adopted the classification
requirement of EITF D-98, Classification and Measurement of Redeemable
Securities. EITF D-98 requires that preferred stock be presented outside of net assets
in the statement of assets and liabilities when redemption is not solely within the
control of the issuer, which is the case for the Fund. In adopting EITF D-98, the
Fund's net assets as of November 30, 2001 in the statement of changes in net assets
has been restated by excluding preferred stock valued at $265,000,000 at that date.
Accordingly, as of November 30, 2002 remarketable preferred shares, at redemption
value of $265,000,000, is shown as a liability on the Statement of Assets and
Liabilities. The adoption also resulted in dividends on remarketed preferred shares
being reclassified from distributions on the statement of changes in net assets to a
separate line item within the statement of operations. This resulted in a decrease of
$3,894,332 and $8,435,737 in the net increase in net assets from operations for the
year ended November 31, 2002 and November 30, 2001, respectively. As part of the
adoption, per share distributions of dividends on remarketed preferred shares was
reclassified from distributions to a component of totals from investment operations
for each period presented in the financial highlights.</FONT>
</P>
<P ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="ria" ID="ria"></A>Report of Ernst &amp; Young LLP,
Independent Auditors</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">To the Trustees and Shareholders of Scudder Municipal Income Trust:</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">We have audited the accompanying statement of assets and liabilities,
including the investment portfolio, of Scudder Municipal Income Trust, (the
&quot;Fund&quot;), as of November 30, 2002, and the related statement of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of November 30, 2002, by
correspondence with the custodian and brokers or by other appropriate
auditing procedures where replies from brokers were not received. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Scudder Municipal Income Trust, at November 30, 2002, the results of its
operations for the year then ended, the changes in its net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended, in conformity with accounting principles
generally accepted in the United States.</FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Boston, Massachusetts<BR>
January 14, 2003</FONT>
</P>
</TD>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
/s/ <U>       Ernst &amp; Young LLP</U>
<BR></TD>
</TR>


</TABLE>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="tax" ID="tax"></A>Tax Information      </FONT><B><FONT SIZE="-1" COLOR="#3d0000">(Unaudited)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">Of the dividends paid from net investment income for the taxable year ended
November 30, 2002, 100% are designated as exempt interest dividends for
federal income tax purposes.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Please contact a tax advisor if you have questions about federal or state income
tax laws, or on how to prepare your tax returns. If you have specific questions
about our account, please call 1-800-621-1048.</FONT>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="drip" ID="drip"></A>Dividend Reinvestment Plan</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">A. Participation </FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We invite you to review the description of the Dividend Reinvestment Plan (the
``Plan'') which is available to you as a shareholder of Scudder Municipal Income Trust
(the ``Fund''). If you wish to participate and your shares are held in your own name,
simply contact Scudder Investments Service Company, whose address and phone
number are provided in Paragraph E for the appropriate form. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you must instruct that
nominee to re-register your shares in your name so that you may participate in the
Plan, unless your nominee has made the Plan available on shares held by them.
Shareholders who so elect will be deemed to have appointed UMB Bank, N.A.
(&quot;United Missouri Bank&quot; or &quot;UMB&quot;) as their agent and as agent for the Fund under
the Plan.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">B. Dividend Investment Account</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund's transfer agent and dividend disbursing agent or its delegate (the ``Transfer
Agent'') will establish a Dividend Investment Account (the ``Account'') for each
shareholder participating in the Plan. The Transfer Agent will credit to the Account
of each participant funds it receives from the following sources: (a) cash dividends
and capital gains distributions paid on shares of beneficial interest (the ``Shares'') of
the Fund registered in the participant's name on the books of the Fund; and (b) cash
dividends and capital gains distributions paid on Shares registered in the name of the
Transfer Agent but credited to the participant's Account. Sources described in clauses
(a) and (b) of the preceding sentence are hereinafter called ``Distributions.''</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">C. Investment of Distribution Funds held in each account</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">If on the record date for a Distribution (the ``Record Date''), Shares are trading at a
discount from net asset value per Share (according to the evaluation most recently
made on Shares of the Fund), funds credited to a participant's Account will be used
to purchase Shares (the ``Purchase''). UMB will attempt, commencing five days prior
to the Payment Date and ending at the close of business on the Payment Date
(``Payment Date'' as used herein shall mean the last business day of the month in
which such Record Date occurs), to acquire Shares in the open market. If and to the
extent that UMB is unable to acquire sufficient Shares to satisfy the Distribution by
the close of business on the Payment Date, the Fund will issue to UMB Shares valued
at net asset value per Share (according to the evaluation most recently made on
Shares of the Fund) in the aggregate amount of the remaining value of the
Distribution. If, on the Record Date, Shares are trading at a premium over net asset
value per Share, the Fund will issue on the Payment Date, Shares valued at net asset
value per Share on the Record Date to the Transfer Agent in the aggregate amount of
the funds credited to the participants' accounts.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">D. Voluntary Cash Contributions</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">A participant may from time to time make voluntary cash contributions to his
Account by sending to Transfer Agent a check or money order, payable to Transfer
Agent, in a minimum amount of $100 with appropriate accompanying instructions.
(No more than $500 may be contributed per month.) Transfer Agent will inform
UMB of the total funds available for the purchase of Shares and UMB will use the
funds to purchase additional Shares for the participant's Account the earlier of: (a)
when it next purchases Shares as a result of a Distribution or (b) on or shortly after
the first day of each month and in no event more than 30 days after such date except
when temporary curtailment or suspension of purchases is necessary to comply with
applicable provisions of federal securities laws. Cash contributions received more than
fifteen calendar days or less than five calendar days prior to a Payment Date will be
returned uninvested. Interest will not be paid on any uninvested cash contributions.
Participants making voluntary cash investments will be charged a $.75 service fee for
each such investment and will be responsible for their pro rata share of brokerage
commissions.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">E. Additional Information</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Address all notices, correspondence, questions, or other communication regarding
the Plan, or if you would like a copy of the Plan, to:</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Scudder Investments Service Company</FONT></B><BR>
P.O. Box 219066<BR>
Kansas City, Missouri 64121-9066<BR>
1-800-294-4366</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">F. Adjustment of Purchase Price</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund will increase the price at which Shares may be issued under the Plan to
95% of the fair market value of the shares on the Record Date if the net asset value
per Share of the Shares on the Record Date is less than 95% of the fair market value
of the Shares on the Record Date.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">G. Determination of Purchase Price</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The cost of Shares and fractional Shares acquired for each participant's Account in
connection with a Purchase shall be determined by the average cost per Share,
including brokerage commissions as described in Paragraph G hereof, of the Shares
acquired by UMB in connection with that Purchase. Shareholders will receive a
confirmation showing the average cost and number of Shares acquired as soon as
practicable after the Transfer Agent has received or UMB has purchased Shares. The
Transfer Agent may mingle the cash in a participant's account with similar funds of
other participants of the Fund for whom UMB acts as agent under the Plan.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">H. Brokerage Charges</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">There will be no brokerage charges with respect to Shares issued directly by the Fund
as a result of Distributions. However, each participant will pay a pro rata share of
brokerage commissions incurred with respect to UMB's open market purchases in
connection with the reinvestment of Distributions. Brokerage charges for purchasing
small amounts of Shares for individual Accounts through the Plan can be expected to
be less than the usual brokerage charges for such transactions, as UMB will be
purchasing Shares for all participants in blocks and prorating the lower commission
thus attainable.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">I. Service Charges</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">There is no service charge by the Transfer Agent or UMB to shareholders who
participate in the Plan other than service charges specified in Paragraphs D and M
hereof. However, the Fund reserves the right to amend the Plan in the future to
include a service charge.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">J. Transfer of Shares Held by Agent</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Transfer Agent will maintain the participant's Account, hold the additional
Shares acquired through the Plan in safekeeping and furnish the participant with
written confirmation of all transactions in the Account. Shares in the Account are
transferable upon proper written instructions to the Transfer Agent. Upon request to
the Transfer Agent, a certificate for any or all full Shares in a participant's Account
will be sent to the participant.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">K. Shares Not Held in Shareholder's Name</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Beneficial owners of Shares which are held in the name of a broker or nominee will
not be automatically included in the Plan and will receive all distributions in cash.
Such shareholders should contact the broker or nominee in whose name their Shares
are held to determine whether and how they may participate in the Plan.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">L. Amendments</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Experience under the Plan may indicate that changes are desirable. Accordingly, the
Fund reserves the right to amend or terminate the Plan, including provisions with
respect to any Distribution paid, subsequent to notice thereof sent to participants in
the Plan at least ninety days before the record date for such Distribution, except
when such amendment is necessary or appropriate to comply with applicable law or
the rules or policies of the Securities and Exchange Commission or any other
regulatory authority, in which case such amendment shall be effective as soon as
practicable. The amendment shall be deemed to be accepted by each participant
unless, prior to the effective date thereof, the Transfer Agent receives notice of the
termination of such participant's account under the Plan in accordance with the
terms hereof. The Plan may be terminated by the Fund.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">M. Withdrawal from Plan</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Shareholders may withdraw from the Plan at any time by giving the Transfer Agent a
written notice. If the proceeds are $100,000 or less and the proceeds are to be
payable to the shareholder of record and mailed to the address of record, a signature
guarantee normally will not be required for notices by individual account owners
(including joint account owners), otherwise a signature guarantee will be required. In
addition, if the certificate is to be sent to anyone other than the registered owner(s) at
the address of record, a signature guarantee will be required on the notice. A notice of
withdrawal will be effective for the next Distribution following receipt of the notice
by the Transfer Agent provided the notice is received by the Transfer Agent at least
ten days prior to the Record Date for the Distribution. When a participant
withdraws from the Plan, or when the Plan is terminated in accordance with
Paragraph L hereof, the participant will receive a certificate for full Shares in the
Account, plus a check for any fractional Shares based on market price; or if a
Participant so desires, the Transfer Agent will notify UMB to sell his Shares in the
Plan and send the proceeds to the participant, less brokerage commissions and a
$2.50 service fee.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">N. Tax Implications</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Shareholders will receive tax information annually for personal records and to assist
in preparation of their Federal income tax returns. If Shares are purchased at a
discount, the amount of the discount is considered taxable income and is added to
the cost basis of the purchased shares.</FONT>
</P>
<P ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="ot" ID="ot"></A>Trustees and Officers</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT"><FONT COLOR="#000000">The following table presents certain information regarding the Trustees and Officers
of the fund as of November 30, 2002. Each individual's age is set forth in parentheses
after his or her name. Unless otherwise noted, (i) each individual has engaged in the
principal occupation(s) noted in the table for at least the most recent five years,
although not necessarily in the same capacity, and (ii) the address of each individual
is c/o Deutsche Asset Management, 222 South Riverside Plaza, Chicago, Illinois, 60606.
Each Trustee's term of office extends until the next shareholder's meeting called for the
purpose of electing Trustees and until the election and qualification of a successor, or
until such Trustee sooner dies, resigns or is removed as provided in the governing
documents of the fund.</FONT>
</P>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Non-Interested Trustees</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Name, Age,
Position(s) Held
with the Fund
and Length of
Time Served<SUP>1</SUP></FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Principal Occupation(s) During Past 5 Years and <BR>
Other Directorships Held</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Number
of Funds
in Fund
Complex
Overseen</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">John W.
Ballantine (56)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1999-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, Executive Vice President and Chief Risk
Management Officer, First Chicago NBD Corporation/The First
National Bank of Chicago (1996-1998); Executive Vice President
and Head of International Banking (1995-1996). Directorships:
Enron Corporation (energy trading firm) (effective May 30,
2002); First Oak Brook Bancshares, Inc.; Oak Brook Bank;
Tokheim Corporation (designer, manufacturer and servicer of
electronic and mechanical petroleum marketing systems)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Lewis A.
Burnham (69)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1977-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, Director of Management Consulting,
McNulty &amp; Company (1990-1998); prior thereto, Executive Vice
President, Anchor Glass Container Corporation</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Donald L.
Dunaway (65)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1980-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, Executive Vice President, A. O. Smith
Corporation (diversified manufacturer) (1963-1994)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">James R. Edgar
(56)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1999-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Distinguished Fellow, University of Illinois, Institute of
Government and Public Affairs (1999-present); formerly,
Governor, State of Illinois (1991-1999). Directorships: Kemper
Insurance Companies; John B. Sanfilippo &amp; Son, Inc.
(processor/packager/marketer of nuts, snacks and candy
products); Horizon Group Properties, Inc.; Youbet.com (online
wagering platform); Alberto-Culver Company (manufactures,
distributes and markets health and beauty-care products)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Paul K. Freeman
(52)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
2002-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">President, Cook Street Holdings (consulting); Adjunct Professor,
University of Denver; Consultant, World Bank/Inter-American
Development Bank; formerly, Project Leader, International
Institute for Applied Systems Analysis (1998-2001); Chief
Executive Officer, The Eric Group, Inc. (environmental
insurance) (1986-1998)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Robert B.
Hoffman (65)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1981-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, Chairman, Harnischfeger Industries, Inc.
(machinery for the mining and paper industries) (until 2000);
prior thereto, Vice Chairman and Chief Financial Officer,
Monsanto Company (agricultural, pharmaceutical and
nutritional/food products); Vice President and Head of
International Operations, FMC Corporation (manufacturer of
machinery and chemicals)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Shirley D.
Peterson (61)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1995-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, President, Hood College (1995-2000); prior
thereto, Partner, Steptoe &amp; Johnson (law firm); Commissioner,
Internal Revenue Service; Assistant Attorney General (Tax), U.S.
Department of Justice. Directorships: Bethlehem Steel Corp.;
Federal Mogul Corp.; Trustee, Bryn Mawr College.</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Fred B. Renwick
(72)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1988-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; Professor Emeritus of Finance, New York University,
Stern School of Business (2001-present); formerly, Professor,
New York University Stern School of Business (1965-2001).
Directorships: The Wartburg Foundation; The Investment Fund
for Foundations; Chairman, Finance Committee of Morehouse
College Board of Trustees; American Bible Society Investment
Committee; formerly, Director of Board of Pensions,
Evangelical Lutheran Church in America; member of the
Investment Committee of Atlanta University Board of Trustees</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">William P.
Sommers (69)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1979-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, President and Chief Executive Officer, SRI
International (research and development) (1994-1998); prior
thereto, Executive Vice President, Iameter (medical information
and educational service provider); Senior Vice President and
Director, Booz, Allen &amp; Hamilton Inc. (management consulting
firm). Directorships: PSI Inc. (engineering and testing firm);
Evergreen Solar, Inc. (develop/manufacture solar electric system
engines); H<SUB>2</SUB> Gen (manufacture hydrogen generators); Zassi
Medical Evolutions, Inc. (specialists in intellectual property
opportunities in medical device arena)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">John G. Weithers
(69)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee,
1993-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Retired; formerly, Chairman of the Board and Chief Executive
Officer, Chicago Stock Exchange (until 1992). Directorships:
Federal Life Insurance Company; Chairman of the Members of
the Corporation and Trustee, DePaul University; formerly,
International Federation of Stock Exchanges; Records
Management Systems</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Interested Trustees and Officers</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Name, Age,
Position(s) Held
with the Fund
and Length of
Time Served<SUP>1</SUP></FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Principal Occupation(s) During Past 5 Years and <BR>
Other Directorships Held</FONT></B>
<BR></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Number
of Funds
in Fund
Complex
Overseen</FONT></B>
<BR></TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Richard T. Hale<SUP>2,3</SUP>
(57)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Chairman,
Trustee and Vice
President,
2002-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Bank Securities Inc. (formerly
Deutsche Banc Alex. Brown Inc.) and Deutsche Asset
Management (1999 to present); Director and President,
Investment Company Capital Corp. (registered investment
advisor) (1996 to present); Director, Deutsche Global Funds,
Ltd. (2000 to present), CABEI Fund (2000 to present), North
American Income Fund (2000 to present) (registered
investment companies); President, DB Hedge Strategies Fund
LLC (June 2002 to present), Montgomery Street Securities, Inc.
(2002 to present) (registered investment companies); Vice
President, Deutsche Asset Management, Inc. (2000 to present);
formerly, Director, ISI Family of Funds (registered investment
company; 4 funds overseen) (1992-1999)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">199</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">William F. Glavin,
Jr.<SUP>2</SUP> (44)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Trustee and
President,
2001-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Asset Management; President
of Scudder Investor Services Corp. (1999-present); President of
Scudder Service Corp. (2000-present); President of Scudder
Financial Services, Inc. (1999-present); Vice President of
Scudder Distributors, Inc. (2000-present); formerly, Executive
Vice President of Dreyfus Service Corp. (1995-1997); Senior
Vice President of The Boston Company Advisors (1991-1995).
Directorships: Trustee, Crossroads for Kids (serves at-risk
children)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">82</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Philip J. Collora
(57)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Vice President
and Assistant
Secretary,
1986-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Director of Deutsche Asset Management</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Philip G.
Condon<SUP>4</SUP> (52)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Vice President,
1999-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Asset Management </FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Daniel O. Hirsch<SUP>3</SUP>
(48)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Vice President
and Assistant
Secretary,
2002-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Asset Management
(2002-present) and Director, Deutsche Global Funds Ltd.
(2002-present); formerly, Director, Deutsche Asset
Management (1999-2002); Principal, BT Alex. Brown
Incorporated (now Deutsche Bank Securities Inc.) (1998-1999);
Assistant General Counsel, United States Securities and
Exchange Commission (1993-1998)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Kenneth
Murphy<SUP>4</SUP> (39)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Vice President,
2002-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Vice President of Deutsche Asset Management (2001-present);
formerly, Director, John Hancock Signature Services
(1992-2001); Senior Manager; Prudential Mutual Fund Services
(1987-1992)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Charles A.
Rizzo<SUP>4,5</SUP> (45)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Treasurer,
2002-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Director of Deutsche Asset Management (April 2000 to
present); formerly, Vice President and Department Head,
BT Alex. Brown Incorporated (now Deutsche Bank Securities
Inc.) (1998-1999); Senior Manager, Coopers &amp; Lybrand L.L.P.
(now PricewaterhouseCoopers LLP) (1993-1998)</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Brenda Lyons<SUP>4</SUP>
(40)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Assistant
Treasurer,
1998-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Asset Management</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">John Millette<SUP>4</SUP>
(40)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Secretary,
2001-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Vice President of Deutsche Asset Management</FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Caroline
Pearson<SUP>4</SUP> (40)</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Assistant
Secretary,
1998-present</FONT><BR>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Managing Director of Deutsche Asset Management </FONT><BR>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">n/a</FONT>
</P>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>1</SUP> Length of time served represents the date that each Trustee was first elected to the common board
of trustees which oversees a number of investment companies, including the fund, managed by
the Advisor. For the Officers of the fund, length of time served represents the date that each
Officer was first elected to serve as an officer of any fund overseen by the aforementioned
common board of trustees.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>2</SUP> As a result of their respective positions held with the Advisor, these individuals are considered
&quot;interested persons&quot; of the Advisor within the meaning of the 1940 Act, as amended. Interested
persons receive no compensation from the fund.</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>3</SUP> Address: One South Street, Baltimore, Maryland</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>4</SUP> Address: Two International Place, Boston, Massachusetts</FONT></I><BR>
<I><FONT SIZE="-2" COLOR="#000000"><SUP>5</SUP> Mr. Rizzo was elected to serve as Treasurer of the fund on November 20, 2002.</FONT></I><BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The fund's Statement of Additional Information (&quot;SAI&quot;) includes additional information about the
Trustees. The SAI is available, without charge, upon request. If you would like to request a copy of the
SAI, you may do so by calling the following toll-free number: 1-800-621-1048.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="ips" ID="ips"></A>Investment Products and Services</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Scudder Funds</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3d0000">Growth Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder 21st Century Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Aggressive Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Blue Chip Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Capital Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Dynamic Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Flag Investors <BR>
Communications Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Global Biotechnology Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Health Care Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Large Company Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Micro Cap Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Mid Cap Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Small Cap Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Technology Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Technology Innovation Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Top 50 US Fund*</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">Value Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Contrarian Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder-Dreman Financial Services Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder-Dreman High Return Equity Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder-Dreman Small Cap Value Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Flag Investors <BR>
Equity Partners Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Gold &amp; Precious Metals Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Growth and Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Large Company Value Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder-RREEF Real Estate Securities Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Small Company Stock Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Small Company Value Fund</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">Multicategory/Asset Allocation Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Asset Management Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Flag Investors Value Builder Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Focus Value+Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Lifecycle Mid Range Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Lifecycle Long Range Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Lifecycle Short Range Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Pathway Conservative Portfolio</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Pathway Growth Portfolio</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Pathway Moderate Portfolio</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Target 2012 Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Total Return Fund</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">International/Global Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Emerging Markets Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Emerging Markets Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder European Equity Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Global Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Global Bond Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Global Discovery Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Greater Europe Growth Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder International Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder International Equity Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder International Select Equity Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Japanese Equity Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Latin America Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder New Europe Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Pacific Opportunities Fund</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">Income Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Cash Reserves Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Fixed Income Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder High Income Plus Fund*,**</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder High Income Fund***</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder High Income <BR>
Opportunity Fund****</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder PreservationPlus Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder PreservationPlus Income Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Short-Term Bond Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Short-Term Fixed Income Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Strategic Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder U.S. Government Securities Fund</FONT>
</P>
</TD>
</TR>


</TABLE>
<BR>
<FONT SIZE="-2" COLOR="#000000">*<I>    On August 19, 2002, these funds changed their names from Deutsche to Scudder.</I></FONT><BR>
<FONT SIZE="-2" COLOR="#000000">**<I>   Formerly Deutsche High Yield Bond Fund</I></FONT><BR>
<FONT SIZE="-2" COLOR="#000000">***<I>  Formerly Scudder High Yield Fund</I></FONT><BR>
<FONT SIZE="-2" COLOR="#000000">****    <I>Formerly Scudder High Yield Opportunity Fund</I></FONT><BR>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Scudder Funds (continued)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3d0000">Tax-Free Income Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder California Tax-Free Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Florida Tax-Free Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder High Yield Tax-Free Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Managed Municipal Bond Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Massachusetts Tax-Free Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Medium-Term Tax-Free Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Municipal Bond Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder New York Tax-Free Income Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Short-Term Municipal Bond Fund*</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">Index-Related Funds</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder EAFE<SUP> &reg;</SUP> Equity Index Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Equity 500 Index Fund*</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder S&amp;P 500 Stock Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Select 500 Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder US Bond Index Fund*</FONT>
</P>
</TD>
</TR>

<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Retirement Programs and Education Accounts</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3d0000">Retirement Programs</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Traditional IRA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Roth IRA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SEP-IRA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Inherited IRA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Keogh Plan</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">401(k), 403(b) Plans</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Variable Annuities</FONT>
</P>
<B><FONT SIZE="-2" COLOR="#3d0000">Education Accounts</FONT></B><BR>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Education IRA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">UGMA/UTMA</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">IRA for Minors</FONT>
</P>
</TD>
</TR>

<TR>
<TD BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Closed-End Funds</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">The Brazil Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">The Korea Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Montgomery Street Income Securities, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Global High Income Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder New Asia Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder High Income Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Intermediate Government Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Multi-Market Income Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Municipal Income Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder RREEF Real Estate Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Strategic Income Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Strategic Municipal Income Trust</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">The Germany Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">The New Germany Fund</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">The Central European Equity Fund</FONT>
</P>
</TD>
</TR>


</TABLE>
<BR>
<I><FONT SIZE="-2" COLOR="#000000">*    On August 19, 2002, these funds changed their names from Deutsche to Scudder.</FONT></I><BR>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Note: Not all funds are available in all share classes. Consult your advisor for details.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Scudder open-end funds are offered by prospectus only. For more complete information on any fund
or variable annuity registered in your state, including information about a fund's objectives, strategies,
risks, advisory fees, distribution charges, and other expenses, please order a free prospectus. Read the
prospectus before investing in any fund to ensure the fund is appropriate for your goals and risk
tolerance. There is no assurance that the objective of any fund will be achieved, and fund returns and
net asset values fluctuate. Shares are redeemable at current net asset value, which may be more or less
than their original cost.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">A money market mutual fund investment is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although a money market mutual fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a
fund.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The services and products described should not be considered a solicitation to buy or an offer to sell a
security to any person in any jurisdiction where such offer, solicitation, purchase, or sale would be
unlawful under the securities laws of such jurisdiction.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000"><A NAME="amr" ID="amr"></A>Account Management Resources</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3d0000">Legal Counsel</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Vedder, Price, Kaufman &amp; Kammholz</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">222 North LaSalle Street<BR>
Chicago, IL 60601</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3d0000">Shareholder
Service Agent</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Scudder Investments Service Company</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">P.O. Box 219066<BR>
Kansas City, MO 64121-9066</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3d0000">Custodian and
Transfer Agent</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<H2 ALIGN="LEFT"><FONT COLOR="#000000">State Street Bank and Trust Company</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">225 Franklin Street<BR>
Boston, MA 02110</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3d0000">Independent
Auditors</FONT></B>
</P>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Ernst &amp; Young LLP</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">200 Clarendon Street<BR>
Boston, MA 02116</FONT>
</P>
</TD>
</TR>


</TABLE>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000">Notes</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


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<BR>
<P ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000">Notes</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


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<BR>
<P ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="+2" COLOR="#3d0000">Notes</FONT>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT">
</P>
</TD>
</TR>


</TABLE>
<BR>
<P ALIGN="LEFT">
</P>
<P ALIGN="LEFT"><IMG SRC="mit_backcover0.gif" ALT="mit_backcover0">
</P>


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