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Scudder Managed Municipal Bonds
	Classes A, B and C
	Semiannual Report
	November 30, 2001

Contents

<Click Here> Performance Summary <Click Here> Economic Overview <Click Here> Portfolio Management Review <Click Here> Portfolio Summary <Click Here> Investment Portfolio <Click Here> Financial Statements <Click Here> Financial Highlights <Click Here> Notes to Financial Statements <Click Here> Officers and Trustees <Click Here> Investment Products and Services <Click Here> Account Management Resources <Click Here> Privacy Statement
Scudder Managed Municipal Bonds	Nasdaq Symbol	CUSIP Number
Class A	SMLAX	811170-802
Class B	SMLBX	811170-885
Class C	SMLCX	811170-877

Zurich Scudder Investments, Inc., is a leading global investment management firm, managing more than $325 billion in assets for individuals, corporate clients, retirement and pension plans, and insurance companies.

Please see the fund's prospectus for more complete information, including a complete description of the fund's investment policies. To obtain a prospectus, download one from scudder.com, talk to your financial representative or call Shareholder Services at (800) 621-1048. The prospectus contains more complete information, including management fees and expenses. Please read it carefully before you invest or send money.

Performance Summary November 30, 2001

Average Annual Total Returns** (Unadjusted for Sales Charge)
Scudder Managed Municipal Bonds	6-Month	1-Year	3-Year	5-Year	10-Year
Class A(a)	3.61%	8.36%	4.64%	5.60%	6.60%
Class B(a)	3.21%	7.52%	3.83%	4.78%	5.77%
Class C(a)	3.20%	7.49%	3.81%	4.76%	5.75%
Lehman Brothers Municipal Bond Index+	3.84%	8.75%	5.19%	6.09%	6.96%

Sources: Lipper, Inc. and Zurich Scudder Investments, Inc.

Net Asset Value and Distribution Information
	Class A	Class B	Class C
Net Asset Value: 11/31/01	$ 9.06	$ 9.06	$ 9.06
6/11/01 (commencement of sales)	$ 9.00	$ 9.00	$ 9.00
Distribution Information Six Months: Income Dividends	$ .19	$ .16	$ .16
November Income Dividend	$ .037	$ .031	$ .031
SEC 30-day Yield*	3.37%	2.76%	2.66%
Current Annualized Distribution Rate*	4.91%	4.11%	4.11%
Tax Equivalent Yield*	5.53%	4.53%	4.37%

* Current annualized distribution rate is the latest monthly dividend as an annualized percentage of net asset value on November 30, 2001. Distribution rate simply measures the level of dividends and is not a complete measure of performance. The SEC yield is net investment income per share earned over the month ended November 30, 2001, shown as an annualized percentage of the net asset value on that date. The SEC yield is computed in accordance with a standardized method prescribed by the Securities and Exchange Commission. Tax equivalent yield is based on the Fund's yield and a marginal income rate of 39.1%. Yields and distribution rates are historical and will fluctuate.

Class S Lipper Rankings** - General Municipal Debt Funds Category
Period	Rank		Number of Funds Tracked	Percentile Ranking
1-Year	62	of	270	23
3-Year	13	of	231	6
5-Year	17	of	187	10
10-Year	9	of	84	11

Rankings are historical and do not guarantee future results.

Source: Lipper, Inc.

Growth of an Assumed $10,000 Investment^(b) (Adjusted for Sales Charge)

-- Scudder Managed Municipal Bonds - Class A

-- Lehman Brothers Municipal Bond Index+

Yearly periods ended November 30

Comparative Results** (Adjusted for Sales Charge)
Scudder Managed Municipal Bonds		1-Year	3-Year	5-Year	10-Years
Class A(c)	Growth of $10,000	$10,348	$10,942	$12,541	$18,090
	Average annual total return	3.48%	3.05%	4.63%	6.11%
Class B(c)	Growth of $10,000	$10,452	$11,002	$12,535	$17,529
	Average annual total return	4.52%	3.23%	4.62%	5.77%
Class C(c)	Growth of $10,000	$10,749	$11,186	$12,616	$17,485
	Average annual total return	7.49%	3.81%	4.76%	5.75%
Lehman Brothers Municipal Bond Index+	Growth of $10,000	$10,875	$11,639	$13,441	$19,594
	Average annual total return	8.75%	5.19%	6.09%	6.96%

The growth of $10,000 is cumulative.

** Returns and rankings during the periods shown reflect a temporary fee and/or expense waiver. Without this waiver, returns and rankings would have been lower. Rankings are for Class S shares; rankings for share classes may vary.
^(a) On June 11, 2001 the fund began offering additional shares, namely Class A, B and C shares described herein. Returns shown for Class A, B and C shares for the periods prior to their inception date on June 11, 2001 are derived from the historical performance of Class S shares of the Scudder Managed Municipal Bonds during such periods and have been adjusted to reflect the higher gross total annual operating expenses of each specific class. The difference in expenses will affect performance.
^(b) The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%. This results in a net initial investment of $9,550.
^(c) On June 11, 2001 the fund began offering additional shares, namely Class A, B and C shares described herein. Returns shown for Class A, B and C shares for the periods prior to their inception are derived from the historical performance of Class S shares of the Scudder Managed Municipal Bonds during such periods and have been adjusted to reflect the higher gross annual operating expenses and the current applicable sales charge of each specific class. Returns for Class A reflect the current maximum initial sales charge of 4.50%. Class B share performance is adjusted for the applicable CDSC, which is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. The difference in expenses will affect performance.
+ The unmanaged Lehman Brothers Municipal Bond Index is a market-value-weighted measure of municipal bonds issued across the United States. Index issues have a credit rating of at least Baa and a maturity of at least two years. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.

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, so an investor's shares, when redeemed, may be worth more or less than when purchased.

It is the policy of Scudder's tax-free funds not to invest in taxable issues. However, a small portion of the fund's income may be subject to federal, state, or local tax, and the alternative minimum tax.

Investments in mutual 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). Please read this fund's prospectus for specific details regarding its investments and risk profile.

Please call (800) 621-1048 for the fund's most up-to-date performance.

Economic Overview

Dear Shareholder:

On the morning of September 11, economic conditions were uncertain at best, but the terrorist attacks in the United States on the World Trade Center and the Pentagon sent the economy into a deeper downturn. It is now official - the United States is in recession. The good news is that U.S. policymakers are moving aggressively to provide fiscal and monetary stimulus to keep the downturn contained.

U.S. consumers had too much debt and were trying to rein in their spending when the terrorist attacks sapped their confidence. During September they virtually stopped shopping, but in October they were lured back into the malls and auto showrooms by great bargains. However, with layoffs on the rise, we expect even that bounce-back to fade. What spending there is will likely be concentrated on necessities such as groceries, visits to the doctor and tuition. We don't expect total consumption to get back to this last summer's level before the end of 2002. As their customers retrench, business executives will likely do the same. They have already cut capital spending, and will review outlays for the coming months. As a result, we expect the economy to continue its decline until early next spring.

Despite America's current malaise, the rest of the world is still looking to us to spark global growth. Japan remains in recession, and output is slipping in the largest European countries. But policymakers elsewhere may finally be getting the message that world growth is at risk. The European Central Bank recently surprised markets with a rate cut of half a percentage point, and Japan's government has vowed to get serious about reform. These moves, while welcome, will take time to bear fruit.

Before stuffing money under the mattress, investors can take heart that U.S. policymakers have been quick to act to bolster the world's largest economy. At the exact moment when the private sector is cutting back, the government is stepping up with huge new outlays. What's good about these outlays is that they aren't new programs that will last forever, and the economy will reap the benefits quickly. This stimulus may not prevent two or three quarters of negative growth, but it should shorten the correction process.

Economic Guideposts Data as of 11/30/01
[] 2 years ago [] 1 year ago [] 6 months ago [] Now
		Inflation Rate (a)	U.S. Unemployment Rate (b)	Federal Funds Rate (c)	Industrial Production (d)	Growth Rate of Personal Income (e)
(a) The year-over-year percentage change in U.S. consumer prices. (b) The percentage of adults out of work and looking for a job. (c) The interest rate banks charge each other for overnight loans. (d) Year-over-year percentage change. (e) Growth rate of individual income from all sources. Sources: Bloomberg Business News, Zurich Scudder Investments, Inc.

Recessions are never welcome, but they force people and businesses to reduce the excesses built up in a boom. As despicable as the terrorist attacks were, individuals and businesses are likely to react by aggressively correcting excesses that have built up over the past several years. That will hurt now but will brighten the medium- to long-term outlook.

We believe Americans will quickly put their houses in order, and by the end of 2002, the stage should be set for another expansion. Because the markets are forward looking, financial asset prices here and abroad may begin to anticipate stronger growth well before then - an important point for investors to keep in mind as they evaluate their holdings.

Zurich Scudder Investments, Inc.
Economics Group

December 1, 2001

The sources, opinions and forecasts expressed are those of the economic advisors of Zurich Scudder Investments, Inc. as of December 1, 2001, and may not actually come to pass.

Portfolio Management Review

Scudder Managed Municipal Bonds: A Team Approach to Investing

[Portfolio Manager(s) Photograph(s)]

Scudder Managed Municipal Bonds is managed by a team of Zurich Scudder Investments, Inc. (the "Advisor") professionals, each of whom plays an important role in the fund's management process. Team members work together to develop investment strategies and select securities for the fund's portfolio. They are supported by the Advisor's large staff of economists, research analysts, traders, and other investment specialists who work in offices across the United States and abroad. The Advisor believes that a team approach benefits fund investors by bringing together many disciplines and leveraging the firm's extensive resources.

Co-lead Portfolio Managers Philip G. Condon and Ashton P. Goodfield have responsibility for the fund's day-to-day management and investment strategies.

Mr. Condon, who joined the Advisor in 1983 and the team in 1990, has over 25 years of investment industry experience.

Ms. Goodfield, who joined the Advisor in 1986 and the team in 1998, has 15 years of investment industry experience.

Portfolio Manager Eleanor Brennan joined the Advisor in 1995 and the fund team in 1998. Ms. Brennan has 15 years of investment industry experience.

Portfolio Manager Matthew J. Caggiano joined the Advisor in 1989 and the fund team in 1999. Mr. Caggiano has 12 years of investment industry experience.

Note: Kemper Municipal Bond Fund merged into Scudder Managed Municipal Bonds on June 11, 2001. The management style of Scudder Managed Municipal Bonds Fund is the same as that of Kemper Municipal Bond Fund and did not change after the merger was complete. In the following Q&A, the portfolio managers discuss market conditions and the fund's investment strategy in the six-month period ending November 30, 2001.

Q: How did Scudder Managed Municipal Bonds perform between May 31, 2001, and November 30, 2001?

A: The last six months was a strong period for municipal bonds, in general, as well as for Scudder Managed Municipal Bonds. We are quite pleased with the fund's recent performance. For the six-month period ending November 30, 2001, the fund rose 3.61 percent (Class A shares, imputed) versus its typical peer in the Lipper general municipal debt funds category, which returned 3.39 percent. The unmanaged Lehman Brothers Municipal Bond Index^* returned 3.84 percent. The fund's focus on solid call protection and intermediate-term issues aided performance during the period.

* The Lehman Brothers Municipal Bond Index contains approximately 15,000 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. Bonds subject to alternative minimum tax, variable-rate bonds and zero-coupon bonds are excluded from the index. It is not possible to invest in the index.

Moreover, the fund's long-term results are strong. Among its Lipper peer group, for the three-, five- and 10-year periods the fund ranks 13, 17 and 9 (Class S shares) versus the 231, 187 and 84 funds, respectively, in its category. (Please see the performance summary on page 4 for standardized return figures for each time period.)

Q: How did the bond market and municipal bonds, in particular, perform over the last six months? And will you expand upon how the current positioning helped the fund to be successful in this environment?

Bonds outperform stocks in six months ending 11/30/01
		Lehman Brothers Aggregate Bond Index*	Lehman Municipal Bond Index	S&P 500	Nasdaq
* The Lehman Aggregate Bond index is a total return index including taxable fixed-rate debt issues rated investment-grade or better. It contains government, corporate and mortgage securities and is generally considered representative of the market for investment-grade bonds as a whole.

A: Higher-quality taxable bonds as well as tax-free bonds outperformed equities in the last six months. While the equity market did gain some ground over the last two months, after shaking off fears following the September 11 attacks, bonds still widely outpaced stocks. (See graph above.)

This outperformance by bonds was driven, in part, by the Federal Reserve Board's commitment to reducing short-term interest rates in an effort to stimulate the economy. The Fed reduced the federal funds rate to 2.00 percent by November 30 from 4.00 percent as of May 31. (That rate was further reduced to 1.75 percent on December 11.) Further economic instability, in part due to the events of September 11, also continued to increase investor demand for fixed-income securities, particularly higher-quality issues.

In the last six months, we generally saw the municipal bond yield curve become steeper, with the difference in yields between longer-term bonds and shorter-term bonds rising. The difference in yield between a one-year AAA-rated municipal bond versus that of a 30-year AAA-rated municipal bond was 254 basis points (or 2.54 percentage points) as of May 31, 2001, but that difference had risen to 313 basis points (or 3.13 percentage points) as of November 30, 2001. (A basis point is the movement of interest rates or yields expressed as hundredths of a percent.) This steepening made intermediate-term securities attractive relative to longer-term issues. The yields on individual 10-year AAA-rated municipal bonds generally declined overall over the past six months, however. A 10-year AAA-rated municipal bond is now yielding 4.20 percent, 21 basis points less than the 4.41 percent it was yielding as of May 31, 2001. That has made solid call protection important. (A bond's call provision is the first date the bond issuer can pay off the bondholder prior to the maturity date of the bond.) Bonds with call protection are not likely to be bought back early by their issuers when interest rates decline. As rates came down, these bonds kept paying the higher yields we had previously locked in, while prices of the bonds rose.

Q:What is your take on the performance of municipal bonds according to their state of issuance?

A:California bonds continue to feel some stress, as the state's economy - the largest in the nation - is feeling pressure from the U.S. recession. In addition, California bonds are still smarting from the energy issues the state has faced as a result of its attempt at deregulating its power industry. The issuance of about $13 billion of municipal bonds by the California Department of Water Resources, which is designed to help pay back the state coffers drained by the energy problems, has not yet been executed, which has caused increased uncertainty. Bonds issued by states that are heavily driven by tourism, such as Hawaii, New York and Florida, are also being watched closely, though we do not see their being impacted over the long term as a result of this short-term dip in tourism. In contrast, certain states that are heavily wedded to military operations, such as Virginia and Wyoming, may see somewhat of a positive impact from increased government spending on military and military installations in their states.

Q:How have you been positioning Scudder Managed Municipal Bonds for the road ahead?

A:During much of the reporting period, we have been committed to solid credits with call protection, which helped as interest rates continued to decline. The fund benefited from its focus on intermediate-term securities as the yield curve steepened, particularly in September. Even as the yield curve became steeper during the period, intermediate-term bonds saw their yields decline, and therefore they have provided strong returns relative to slightly longer-term issues.

However, more recently, we began to extend into long-term municipal bonds, as we believe the yield curve will likely flatten or that there will be less difference in the yields of bonds with shorter maturities as those with longer maturities. As the curve flattens we expect longer-term municipals to see their yields decline, and as a result their returns would rise. In fact, the curve already began to flatten a bit in November, and we expect that trend to continue into 2002. As a result, we have begun to add more longer-term municipal bonds, while structuring the portfolio to maintain its neutral duration.

Q:What's your outlook for the municipal bond market over the course of the next six months?

A:Our outlook for the municipal bond market remains positive. We believe the yield curve will flatten, or the difference between the yields in short-term bonds and long-term bonds will decrease, in the first half of 2002, as the market prepares for more stable interest rates and as the U.S. economy stabilizes.

Municipal bonds yields vs. Treasury yields

November 30, 2001

Source: Zurich Scudder Investments, Inc. and Bloomberg Business News. This chart is not intended to represent the yield of any Scudder fund.

Moreover, we believe municipal bonds remain attractive relative to taxable bonds. Municipal bonds are now selling cheaply relative to U.S. Treasuries of the same maturity. For instance, a 10-year AAA-rated municipal bond yielded 4.21 percent as of November 30, 2001, while 10-year U.S. Treasury bonds yielded 4.73 percent. With a municipal bond's tax-free advantage over a Treasury bond, a municipal bond's yield becomes even more attractive.

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.

Portfolio Summary November 30, 2001

Diversification	11/30/01	5/31/01
Revenue Bonds	58%	69%
General Obligation Bonds	26%	14%
Lease Obligations	9%	6%
U.S. Government Secured	7%	11%
	100%	100%

Quality	11/30/01	5/31/01
AAA	75%	86%
AA	9%	7%
A	6%	3%
BBB	4%	1%
Not Rated	6%	3%
	100%	100%

Effective Maturity	11/30/01	5/31/01
0 < 5 years	15%	17%
5 < 10	41%	46%
10 < 15	30%	25%
Greater than 15 years	14%	12%
	100%	100%

Top Five State Allocations	11/30/01	5/31/01
1. Illinois	13%	18%
2. Texas	10%	16%
3. New Jersey	6%	1%
4. New York	6%	6%
5. Colorado	5%	2%

Diversification, Quality, Effective Maturity and State Allocations are subject to change.

For more complete details about the fund's investment portfolio, see page 17. A quarterly Fund Summary and Portfolio Holdings are available upon request.

Investment Portfolio as of November 30, 2001 (Unaudited)

	Principal Amount ($)	Value ($)
Long-Term Municipal Investments 99.8%
Alaska 2.0%
Anchorage, AK, Electric Revenue, 6.5%, 12/1/2015	5,000,000	5,958,450
North Slope Borough, AK, County (GO) Lease, Series B, Zero Coupon, 6/30/2011	5,000,000	3,209,450
North Slope Borough, AK, Other GO: Series B, Zero Coupon, 6/30/2004 (b)	30,500,000	28,112,765
Series B, Zero Coupon, 6/30/2005 (b)	43,800,000	38,611,014
Series A, Zero Coupon, 6/30/2006 (b)	11,000,000	9,240,220
Series A, Zero Coupon, 6/30/2008 (b)	18,000,000	13,568,040
		98,699,939
Arizona 1.3%
Arizona, School District GO, School Facilities Board Revenue: 5.5%, 7/1/2014	5,000,000	5,420,100
5.5%, 7/1/2015	3,000,000	3,235,020
5.5%, 7/1/2016	5,000,000	5,351,450
Arizona, State Agency (GO) Lease, Municipal Finance Program, Series 25, 7.875%, 8/1/2014 (b)	3,500,000	4,465,020
Arizona, Water & Sewer Revenue, Infrastructure Financing Authority: Series A, 5.375%, 10/1/2016	3,540,000	3,713,425
Series A, 5.375%, 10/1/2017	2,280,000	2,378,952
Series A, 5.375%, 10/1/2018	2,200,000	2,281,510
Maricopa County, AZ, School District GO, District No. 28, Kyrene Elementary, Series B, Zero Coupon, 1/1/2006 (b)	4,905,000	4,210,060
Maricopa County, AZ, School District GO, Unified School District No. 41 Gilbert, Zero Coupon, 1/1/2005 (b)	5,280,000	4,749,571
Phoenix, AZ, Transportation/Tolls Revenue: Series A, Zero Coupon, 7/1/2012	4,675,000	2,855,958
Series A, Zero Coupon, 7/1/2013	4,700,000	2,706,730
Phoenix, AZ, Water & Sewer Revenue, Civic Improvement Corp., 6.0%, 7/1/2011 (b)	4,105,000	4,695,135
Scottsdale AZ, Other GO: 5.375%, 7/1/2013	3,515,000	3,810,893
5.375%, 7/1/2014	2,680,000	2,890,300
5.375%, 7/1/2015	2,635,000	2,820,451
Tucson, AZ, Water & Sewer Revenue: 5.5%, 7/1/2015	1,430,000	1,528,270
5.5%, 7/1/2018	4,100,000	4,273,633
		61,386,478
Arkansas 0.9%
Jonesboro, AR, Hospital & Healthcare Revenue, Bernard's Regional Medical Center, Series A, 5.8%, 7/1/2012	4,025,000	4,313,271
North Little Rock, AR, Electric Revenue: Series A, 6.5%, 7/1/2010	19,750,000	22,972,015
Series A, 6.5%, 7/1/2015	19,750,000	22,972,015
		42,832,828
California 6.3%
Alameda County, CA, County (GO) Lease, Santa Rita Jail Project, 5.375%, 6/1/2009	5,000,000	5,546,050
Banning, CA, Water & Sewer Revenue, Water System Improvement Project, 8.0%, 1/1/2019	960,000	1,275,187
Banning, CA, Water & Sewer Revenue, Water System Reference & Improvement Project, 8.0%, 1/1/2019	1,080,000	1,390,835
California, Higher Education Revenue, Marymount University, Zero Coupon, 10/1/2014	1,000,000	539,560
California, Multi Family Housing Revenue, Series A, 7.7%, 8/1/2010	1,000,000	1,037,620
California, Senior Care Revenue, Community Development Authority, 5.5%, 11/15/2008	2,250,000	2,511,765
California, State Agency (GO) Lease, Series A, 6.3%, 12/1/2006	8,095,000	9,267,156
California, State GO: 5.0%, 11/1/2016	10,000,000	10,097,000
5.0%, 11/1/2017	10,000,000	10,019,000
5.0%, 6/1/2021	20,000,000	19,669,800
5.0%, 11/1/2025	4,745,000	4,644,359
5.5%, 3/1/2015	20,000,000	21,553,400
5.75%, 5/1/2010	10,000,000	10,996,300
6.25%, 10/1/2007 (b) (e)	4,000,000	4,552,120
6.25%, 4/1/2008 (b) (e)	5,000,000	5,679,250
6.6%, 2/1/2009 (b) (e)	15,600,000	18,123,300
California, Water & Sewer Revenue, Series W, 5.5%, 12/1/2015	3,390,000	3,707,779
Foothill, CA, Transportation/Toll Revenue, Eastern Corridor Agency: Series A, Prerefunded, Step-up Coupon, 0% to 1/1/2005, 7.1% to 1/1/2011 (c)	4,000,000	4,060,000
Series A, Prerefunded, Step-up Coupon, 0% to 1/1/2005, 7.1% to 1/1/2012 (c)	4,000,000	4,060,000
Series A, Prerefunded, Step-up Coupon, 0% to 1/1/2005, 7.15% to 1/1/2014 (c)	6,250,000	6,356,125
Foothill, CA, Transportation/Toll Revenue, Eastern Corridor Agency, Series A, ETM, Step-up Coupon, 0% to 1/1/2015, 7.05% to 1/1/2009	5,000,000	4,916,900
Foothill, CA: Series A, ETM, Zero Coupon, 1/1/2015	11,000,000	5,879,280
Series A, ETM, Zero Coupon, 1/1/2017	5,000,000	2,354,450
Foothill, CA, Transportation/Toll Revenue: Series A, 6.0%, 1/1/2016	20,400,000	23,660,328
Series A, 6.5%, 1/1/2032	19,975,000	23,040,563
Los Angeles County, CA, County (GO) Lease, Capital Asset Leasing Corp., 6.0%, 12/1/2006 (b)	9,000,000	10,203,120
Los Angeles County, CA, County (GO) Lease: Zero Coupon, 9/1/2007	4,030,000	3,209,814
Zero Coupon, 9/1/2009	5,425,000	3,881,588
Los Angeles County, CA, Sales & Special Tax Revenue, Metropolitan Transportation Authority, Series B, 5.25%, 7/1/2018	7,470,000	7,831,473
Madera County, CA, Hospital & Healthcare Revenue, Valley Childrens Hospital, 6.5%, 3/15/2010 (b)	2,840,000	3,361,964
Murrieta Valley, CA, School District GO, Unified School District, Series A, Zero Coupon, 9/1/2014	4,235,000	2,294,184
Oakland, CA, Sales & Special Tax Revenue, Redevelopment Agency, 6.0%, 2/1/2007 (b)	2,000,000	2,246,020
Oakland, CA, Special Assessment Revenue, Oakland Convention Centers:
5.5%, 10/1/2013	2,740,000	3,051,757
5.5%, 10/1/2014	2,000,000	2,225,320
Roseville, CA, School District GO, Junior High:
Series B, Zero Coupon, 8/1/2010 (b)	1,830,000	1,269,288
Series B, Zero Coupon, 8/1/2015 (b)	1,000,000	511,230
San Diego, CA, Electric Revenue, Inverse Floater Rites PA 626, Industrial Development Authority, 10.29%, 9/1/2019**	7,300,000	7,906,265
San Diego, CA, School District GO, Series A, Zero Coupon, 7/1/2014	3,420,000	1,867,594
San Diego, CA, Water & Sewer Revenue:
5.632%, 4/25/2007 (b)	6,300,000	6,958,413
5.681%, 4/22/2009 (b)	4,500,000	5,001,165
San Francisco, CA, Sales & Special Tax Revenue, Bay Area Rapid Transit District, 6.75%, 7/1/2010 (b)	2,000,000	2,418,120
San Joaquin County, County (GO) Lease, Facilities Project, 5.5%, 11/15/2013 (b)	3,895,000	4,341,873
San Joaquin Hills, CA, Transportation/Toll Revenue, Transportation Corridor Agency, Series A, Zero Coupon, 1/15/2012 (b)	5,000,000	3,162,750
San Joaquin Hills, CA, Transportation/Toll Revenue, Zero Coupon, Transportation Corridor Agency, Toll Road Revenue:
Series A, Zero Coupon, 1/15/2013	35,295,000	20,993,113
Series A, Zero Coupon, 1/15/2014	14,905,000	8,321,760
Ukiah, CA, School District (GO) Lease, Zero Coupon, 8/1/2015	2,000,000	1,021,640
		307,016,578
Colorado 5.3%
Arapahoe County, CO, Capital Improvement Trust Fund, Highway Revenue, Series E, 7.0%, 8/31/2026	25,525,000	29,619,976
Colorado, Hospital & Healthcare Revenue, Portercare Adventist Health Project, 6.5%, 11/15/2031	3,000,000	3,148,740
Colorado, Multi Family Housing Revenue:
Series A, 8.1%, 10/1/2005	2,030,000	2,132,373
Series A, 8.15%, 10/1/2006	2,145,000	2,249,848
Series A, 8.15%, 10/1/2007	2,320,000	2,428,483
Series A, 8.2%, 10/1/2008	2,510,000	2,628,598
Series A, 8.2%, 10/1/2009	2,725,000	2,850,078
Series A, 8.25%, 10/1/2010	1,940,000	2,028,677
Series A, 8.25%, 10/1/2011	1,680,000	1,755,516
Series A, 8.25%, 10/1/2012	1,945,000	2,030,794
Colorado, Sales & Special Tax Revenue, Metropolitan Football Stadium:
Series A, Zero Coupon, 1/1/2008	12,000,000	9,246,000
Series A, Zero Coupon, 1/1/2009	17,150,000	12,546,426
Series A, Zero Coupon, 1/1/2010	8,000,000	5,551,520
Colorado, Senior Care Revenue, Health Facilities Authority:
6.75%, 12/1/2015	1,750,000	1,858,080
6.75%, 12/1/2025	4,150,000	4,346,378
Colorado, Transportation/Tolls Revenue:
Series A, 5.5%, 6/15/2013	8,000,000	8,732,720
Series A, 5.5%, 6/15/2014	6,000,000	6,493,140
Series A, 5.5%, 6/15/2016	5,000,000	5,338,700
Series A, 5.75%, 9/1/2014	14,700,000	16,383,885
6.0%, 6/15/2010	8,680,000	9,814,823
Colorado, Transportation/Toll Revenue:
Series B, Zero Coupon, 9/1/2014	11,295,000	6,046,891
Series B, Zero Coupon, 9/1/2015	21,500,000	10,813,855
Series B, Zero Coupon, 9/1/2017	8,000,000	3,541,760
Series B, Zero Coupon, 9/1/2018	20,560,000	8,531,372
Series B, Zero Coupon, 9/1/2019	36,500,000	14,271,865
Series B, Zero Coupon, 9/1/2020	7,000,000	2,586,570
Series B, Zero Coupon, 9/1/2024	30,000,000	8,761,600
Series B, Zero Coupon, 9/1/2025	20,000,000	5,537,800
Series B, Zero Coupon, 9/1/2034	15,200,000	1,383,504
Denver, CO, Airport Revenue: Series C, 6.75%, 11/15/2022	5,180,000	5,430,608
Series B, 7.25%, 11/15/2012	12,715,000	13,359,142
Series A, 7.4%, 11/15/2005	1,250,000	1,372,713
Series A, 7.5%, 11/15/2006	1,000,000	1,100,910
Series A, 7.5%, 11/15/2023	5,945,000	6,603,647
Series A, 7.5%, 11/15/2023	1,240,000	1,418,944
Denver, CO, Airport Revenue, Rites-PA 762, Inverse Floater, 10.11%, 11/15/2013**	5,000,000	5,823,550
Denver, CO, Sales & Special Tax Revenue, Urban Renewal Tax Increment Revenue, AMT, 7.5%, 9/1/2004	560,000	566,810
Denver, CO, School District GO:
Series A, 6.5%, 6/1/2010	3,225,000	3,754,545
Series A, 6.5%, 12/1/2010	3,000,000	3,521,430
Douglas County, CO, School District GO:
Series A, 6.5%, 12/15/2016	715,000	787,487
7.0%, 12/15/2013	10,000,000	12,267,600
Mesa County, CO, Residual Revenue, ETM, Zero Coupon, 12/1/2011	11,435,000	7,255,505
		255,922,863
Connecticut 1.3%
Bridgeport, CT, Core City GO, Series A, 6.0%, 7/15/2014	5,535,000	6,175,178
Connecticut, Sales & Special Tax Revenue, Inverse Floating Rate Note:
Series II, 9.18%, 10/1/2014**	8,390,000	9,607,641
Series II, 9.18%, 10/1/2015**	2,000,000	2,257,460
Series II, 9.18%, 10/1/2016**	1,050,000	1,168,104
Series II, 9.18%, 10/1/2017**	830,000	912,660
Connecticut, Sales & Special Tax Revenue, Transportation Infrastructure, Series A, 5.5%, 9/1/2013	7,480,000	8,148,562
Connecticut, State GO: Series C, 5.5%, 12/15/2014	5,000,000	5,517,750
Series B, 5.75%, 6/15/2013	11,260,000	12,600,165
Series B, 5.875%, 6/15/2014	5,000,000	5,639,800
Series E, 6.0%, 3/15/2012	170,000	194,198
Series E, 6.0%, 3/15/2012	7,130,000	8,144,884
Greenwich, CT, Multi Family Housing Revenue, 6.35%, 9/1/2027	2,640,000	2,511,511
		62,877,913
District of Columbia 3.1%
District of Columbia, Core City GO:
Series B1, 5.4%, 6/1/2006 (b)	15,000,000	16,103,400
Series B3, 5.4%, 6/1/2006 (b)	10,000,000	10,735,600
Series B1, 5.5%, 6/1/2007 (b)	23,000,000	24,836,320
Series B1, 5.5%, 6/1/2008 (b)	11,300,000	12,198,350
Series B2, 5.5%, 6/1/2008	3,225,000	3,481,388
Series B3, 5.5%, 6/1/2009 (b)	2,840,000	3,074,556
Series B1, 5.5%, 6/1/2009 (b)	16,150,000	17,483,829
Series B3, 5.5%, 6/1/2012 (b)	1,050,000	1,140,321
Series A1, 6.5%, 6/1/2010	1,175,000	1,356,115
7.3%, 1/1/2013	1,000,000	1,044,920
District of Columbia, Core City GO, Rites-PA 568, Inverse Floater, 9.146%, 6/1/2010**	12,500,000	14,590,000
District of Columbia, Core City GO, Series B, Zero Coupon, 6/1/2003	2,000,000	1,925,840
District of Columbia, County (GO) Lease, 6.875%, 1/1/2003	950,000	965,742
District of Columbia, Series A1, ETM, 6.5%, 6/1/2010	1,095,000	1,281,632
District of Columbia, School District GO, Public Utility Revenue, Series 16, 8.25%, 10/1/2014	2,750,000	3,447,428
District of Columbia, State GO:
6.125%, 6/1/2003	1,095,000	1,136,161
7.27%, 12/7/2012	20,620,000	23,503,088
District of Columbia, Water & Sewer Revenue, Public Utility Revenue:
5.5%, 10/1/2023 (b)	5,000,000	5,326,100
Series 14, 8.25%, 10/1/2012	1,970,000	2,476,999
Series 15, 8.25%, 10/1/2013	3,565,000	4,474,143
Series 13, 8.26%, 10/1/2011	1,210,000	1,519,942
		152,101,874
Florida 2.9%
Florida, Other (REV) Lease, Municipal Loan Council Revenue, Series A, 5.25%, 11/1/2017	1,000,000	1,033,130
Florida, Sales & Special Tax Revenue, Board of Education Lottery Revenue, Series A, 5.75%, 7/1/2012	6,530,000	7,221,592
Florida, State GO, Board of Public Education, Series D, 5.375%, 6/1/2016	5,765,000	6,025,924
Florida, Water & Sewer Revenue, Development of Environmental Protection Preservation Authority, Series A, 5.75%, 7/1/2012	10,000,000	11,059,100
Highlands County, FL, Hospital & Healthcare Revenue, Health Facilities Authority, Adventist Hospital:
5.25%, 11/15/2028	5,300,000	4,835,084
Series A, 6.0%, 11/15/2031	7,000,000	7,059,850
Hillsborough County, FL, Hospital & Healthcare Revenue, Industrial Development Authority Pollution Control, 8.0%, 5/1/2022	10,000,000	10,477,000
Jacksonville, FL, Health Facilities Authority: 11.5%, 10/1/2012	15,000	20,226
11.5%, 10/1/2012	35,000	43,075
11.5%, 10/1/2012	40,000	51,680
11.5%, 10/1/2012	10,000	11,599
Jacksonville, FL, Health Facilities Authority, ETM, 11.5%, 10/1/2012	85,000	136,502
Jacksonville, FL, Sales & Special Tax Revenue:
5.5%, 10/1/2014	3,000,000	3,232,410
5.5%, 10/1/2014	4,025,000	4,395,461
5.5%, 10/1/2015	4,730,000	5,164,403
5.5%, 10/1/2016	6,760,000	7,359,071
5.5%, 10/1/2018	5,470,000	5,898,520
Lee County, FL, Airport Revenue:
Series 14, Zero Coupon, 10/1/2013	3,960,000	4,656,564
Series 14, Zero Coupon, 10/1/2015	1,500,000	1,767,945
Series 14, Zero Coupon, 10/1/2020	1,410,000	1,607,541
Miami-Dade County, FL, Sales & Special Tax Revenue:
Series A, Zero Coupon, 10/1/2014	2,195,000	1,150,707
Series A, Zero Coupon, 10/1/2022	7,000,000	2,231,460
Orange County, FL, Health Facilities Authority, Series A, ETM, 6.25%, 10/1/2016	710,000	831,978
Orange County, FL, Hospital & Healthcare Revenue, Health Facilities Authority, Series A, 6.25%, 10/1/2016	290,000	335,750
Orange County, FL, Hospital & Healthcare Revenue, Orlando Regional Healthcare, Series C, 6.25%, 10/1/2021	6,000,000	6,948,720
Orlando, FL, Electric Revenue, Community Utilities, Series D, 6.75%, 10/1/2017	3,500,000	4,224,955
Orlando, FL, Water & Sewer Revenue, Community Utilities:
5.25%, 10/1/2018	6,000,000	6,146,640
5.25%, 10/1/2019	5,000,000	5,105,350
Palm Beach County, FL, Airport Revenue:
5.75%, 10/1/2012	5,000,000	5,471,000
5.75%, 10/1/2013	5,000,000	5,458,350
Palm Beach County, FL, Resource Recovery Revenue, Solid Waste Authority, Series A, Zero Coupon, 10/1/2013	20,000,000	11,296,400
Sunrise, FL, Water & Sewer Revenue, Utility Systems, 5.5%, 10/1/2018	10,000,000	10,783,400
		142,041,387
Georgia 2.3%
Atlanta, GA, Airport Revenue, AMT:
Series B, 5.75%, 1/1/2010	4,240,000	4,558,551
Series B, 5.75%, 1/1/2011	1,590,000	1,714,863
Series C, 6.0%, 1/1/2011 (b)	7,375,000	8,082,336
Series C, 6.125%, 1/1/2012	7,735,000	8,519,406
Atlanta, GA, Water & Sewer Revenue, Series A, 5.5%, 11/1/2019	13,000,000	14,044,160
Cobb County, GA, Hospital & Healthcare Revenue, Series A, 5.625%, 4/1/2011 (b)	2,305,000	2,520,057
Fulton County, GA, Single Family Housing Revenue: Series A, 6.55%, 3/1/2018	175,000	181,171
Series A, 6.6%, 3/1/2028	1,960,000	2,012,959
Georgia, Electric Revenue, Municipal Electric Authority Power Revenue:
Series Y, 6.4%, 1/1/2013 (b)	3,305,000	3,852,969
Series Y, Prerefunded, ETM, 6.4%, 1/1/2013 (c)	195,000	229,199
Series V, 6.5%, 1/1/2012 (b)	5,000,000	5,806,000
Series X, 6.5%, 1/1/2012 (b)	3,500,000	4,058,985
Series W, 6.6%, 1/1/2018	11,270,000	13,408,370
Georgia, Electric Revenue, Rites-PA 786, Inverse Floater, 10.915%, 1/1/2016**	4,600,000	6,148,130
Georgia, Higher Education Revenue, GO, Series D, 5.75%, 10/1/2013	5,000,000	5,529,900
Georgia, State GO:
Series C, 5.5%, 9/1/2014	5,485,000	6,020,830
Series C, 5.75%, 9/1/2013	4,600,000	5,167,042
Series C, 6.0%, 7/1/2011	12,480,000	14,079,936
Georgia, Water & Sewer Revenue, Municipal Electric Authority Power Revenue, Series W, 6.6%, 1/1/2018	200,000	240,647
Macon-Bibb County, GA, Hospital & Healthcare Revenue, Series C, 5.25%, 8/1/2011 (b)	3,000,000	3,200,100
		109,375,611
Hawaii 0.9%
Hawaii, Airport Revenue, AMT, Series B, 6.5%, 7/1/2013	6,680,000	7,497,966
Hawaii, State (GO) Lease, 5.875%, 10/1/2015 (b)	2,855,000	3,132,963
Hawaii, State GO:
Series CT, 5.7%, 9/1/2013 (b)	18,095,000	19,685,370
Series CT, 5.75%, 9/1/2014	5,000,000	5,442,000
Series CT, 5.8%, 9/1/2015	5,000,000	5,437,650
Series CU, 5.875%, 10/1/2014 (b)	1,500,000	1,655,234
		42,851,183
Illinois 12.8%
Chicago, IL, Central Station Project, Series A, 8.9%, 1/1/2011	1,445,000	1,493,191
Chicago, IL, Airport Revenue, O'Hare International, Series A, 6.0%, 1/1/2012	5,000,000	5,110,350
Chicago, IL, Airport Revenue, O'Hare International Airport, United Airlines, Inc. Project, Series A, 5.35%, 9/1/2016	4,250,000	2,194,445
Chicago, IL, Core City GO:
Series A, Zero Coupon, 1/1/2013	6,250,000	3,646,438
Series B, 5.0%, 1/1/2010 (b)	5,200,000	5,455,268
Series B, 5.0%, 1/1/2011 (b)	1,620,000	1,700,141
Series B, 5.125%, 1/1/2015 (b)	9,550,000	9,966,762
Series A, 5.375%, 1/1/2013	15,410,000	16,555,271
6.25%, 1/1/2011 (b)	3,000,000	3,425,130
Zero Coupon, 1/1/2017	20,000,000	9,151,600
Chicago, IL, Emergency Telephone Systems, ETM, 5.6%, 1/1/2009 (b)	7,200,000	7,906,824
Chicago, IL, Public Housing Revenue:
Series A, ETM, Zero Coupon, 1/1/2006	2,430,000	2,088,585
Series A, ETM, Zero Coupon, 1/1/2008	4,000,000	3,104,120
Chicago, IL, Sales & Special Tax Revenue, 5.375%, 1/1/2014	5,000,000	5,344,000
Chicago, IL, School District (GO) Lease, Board of Education:
Series A, 6.0%, 1/1/2016 (b)	11,025,000	12,422,088
Series A, 6.0%, 1/1/2020	36,625,000	41,207,154
Series A, 6.25%, 1/1/2009	6,735,000	7,579,973
Series A, 6.25%, 1/1/2011	10,000,000	11,417,100
Series A, 6.25%, 1/1/2015	28,725,000	33,115,042
Chicago, IL, School District (GO) Lease, Public Housing Revenue:
Series A, 5.25%, 12/1/2008	2,655,000	2,841,726
Series A, 5.25%, 12/1/2011 (b)	9,705,000	10,419,579
Chicago, IL, School District (REV) Lease, Board of Education:
Series A, 6.25%, 1/1/2010 (b)	11,550,000	13,095,159
6.25%, 12/1/2011 (b)	1,600,000	1,845,152
Chicago, IL, School District (REV) Lease, Public Housing Revenue, Series A, 5.25%, 12/1/2009 (b)	10,420,000	11,160,758
Chicago, IL, School District GO, Board of Education:
Series B, Zero Coupon, 12/1/2009	7,615,000	5,350,147
Series A, Zero Coupon, 12/1/2012	3,500,000	2,081,345
Series A, Zero Coupon, 12/1/2014	2,000,000	1,053,660
6.0%, 12/1/2016	5,000,000	5,446,800
Chicago, IL, Water & Sewer Revenue:
5.375%, 1/1/2013 (b)	3,215,000	3,442,333
5.5%, 1/1/2009 (b)	11,990,000	12,924,860
5.5%, 1/1/2010 (b)	7,220,000	7,798,539
Chicago, IL, Water & Sewer Revenue: Zero Coupon, 11/1/2012	6,350,000	3,791,077
Zero Coupon, 11/1/2018	5,165,000	2,120,336
Cook & Dupage Counties, IL, School District GO: Zero Coupon, 12/1/2007 (b)	2,550,000	1,998,639
Zero Coupon, 12/1/2008 (b)	2,625,000	1,946,018
Zero Coupon, 12/1/2009 (b)	2,860,000	2,010,952
Cook County, IL, County GO: Series C, 6.0%, 11/15/2007	5,000,000	5,568,800
6.5%, 11/15/2014	18,560,000	21,983,206
Cook County, IL, County GO, Rites-PA 591, Inverse Floater, 11.215%, 11/15/2013**	10,610,000	14,447,319
Cook County, IL, ETM, Zero Coupon, 11/1/2004	3,205,000	2,932,222
Decatur, IL, Other GO:
Zero Coupon, 10/1/2003	1,455,000	1,387,604
Zero Coupon, 10/1/2004	1,415,000	1,296,423
Du Page County, IL, Industrial Development Revenue, Weyerhaeuser Company Project, Inverse Floater, 8.65%, 11/1/2008**	3,600,000	3,602,520
Hoffman Estates, IL, Sales & Special Tax Revenue, Tax Increment Revenue, Zero Coupon, 5/15/2007	15,460,000	12,216,956
Hoffman Estates, IL, Sales & Special Tax Revenue, Zero Coupon, 5/15/2006	4,500,000	3,755,160
Illinois, Airport Revenue, Rites-PA 584, Inverse Floater, Regional Transportation Authority, 11.615%, 11/1/2021**	12,900,000	18,602,058
Illinois, Educational Facilities Authority: Series A, ETM, Zero Coupon, 7/1/2004	2,860,000	2,640,609
Series A, ETM, Zero Coupon, 7/1/2005	7,100,000	6,271,501
Illinois, Health Facilities Authority, ETM, 7.0%, 2/15/2009	4,695,000	5,310,655
Illinois, Higher Education Revenue, University Retirement System:
Zero Coupon, 10/1/2003	2,750,000	2,620,943
Zero Coupon, 10/1/2005	7,000,000	6,118,420
Illinois, Higher Education Revenue:
Zero Coupon, 4/1/2005	3,830,000	3,409,121
Zero Coupon, 4/1/2015	3,300,000	1,690,293
Illinois, Hospital & Healthcare Revenue, Adventist Health System, 5.5%, 11/15/2020	10,000,000	9,607,500
Illinois, Hospital & Healthcare Revenue, Development Finance Authority, Adventist Health System, 5.25%, 11/15/2029	5,475,000	5,137,631
Illinois, Hospital & Healthcare Revenue, Health Facilities Authority: 5.2%, 9/1/2012	1,000,000	991,390
6.0%, 8/15/2006 (b)	1,380,000	1,513,101
6.0%, 8/15/2007 (b)	1,460,000	1,608,774
6.0%, 8/15/2008 (b)	1,550,000	1,712,952
6.0%, 8/15/2009 (b)	1,640,000	1,816,054
6.25%, 8/15/2013 (b)	3,400,000	3,898,236
Series A, 6.25%, 12/1/2015 (b)	17,000,000	19,526,030
6.4%, 6/1/2008 (b)	1,350,000	1,517,076
Illinois, Pollution Control Revenue, Commonwealth Edison Company Project, Series D, 6.75%, 3/1/2015	16,780,000	18,777,491
Illinois, Pollution Control Revenue, Development Finance Authority Pollution Control, 5.85%, 1/15/2014	5,000,000	5,538,750
Illinois, Project Revenue, Metropolitan Pier and Exposition Authority, Zero Coupon, 6/15/2016	10,000,000	4,767,200
Illinois, Project Revenue, Zero Coupon, 1/1/2014	17,975,000	9,977,743
Illinois, Sales & Special Tax Revenue:
6.0%, 6/15/2010	3,500,000	3,936,170
6.125%, 6/15/2012	2,000,000	2,282,380
6.25%, 12/15/2011	3,000,000	3,445,200
6.25%, 12/15/2020	6,975,000	7,976,192
Series A, 6.5%, 12/15/2007	4,765,000	5,452,208
Series A, 6.5%, 12/15/2008	5,255,000	6,042,041
Series P, 6.5%, 6/15/2013	2,100,000	2,436,378
Illinois, Sales & Special Tax Revenue, Development Finance Authority, 7.5%, 11/15/2013	3,750,000	4,192,238
Illinois, Sales & Special Tax Revenue, Metropolitan Pier and Exposition Authority:
Zero Coupon, 6/15/2011	3,795,000	2,445,232
Zero Coupon, 6/15/2013	7,565,000	4,336,485
Illinois, Special Assessment Revenue, Metropolitan Pier and Exposition Authority, Series A, Zero Coupon, 12/15/2018	6,660,000	2,717,413
Illinois, State GO:
5.5%, 5/1/2016	2,500,000	2,703,550
6.0%, 11/1/2026	5,500,000	6,282,705
Illinois, Transportation/Tolls Revenue, State Toll Highway Authority, Series A, 5.5%, 1/1/2013	3,665,000	3,977,001
Illinois, Water & Sewer Revenue, Northwest Suburban Municipal Joint Action Water Agency, 6.45%, 5/1/2007	2,575,000	2,893,553
Joliet, IL, Higher Education Revenue, College Assistance Corp., North Campus Extension Center Project, 6.7%, 9/1/2012 (b)	2,500,000	2,920,800
Kane Cook & Du Page County, IL, School District GO:
Series B, Zero Coupon, 1/1/2011 (b)	1,040,000	684,320
Series B, Zero Coupon, 1/1/2012 (b)	1,300,000	808,080
Series B, Zero Coupon, 1/1/2013 (b)	4,595,000	2,692,486
Kane County, IL, School District GO, Aurora West Side, Series A, 6.5%, 2/1/2010 (b)	1,775,000	2,039,511
Kendall Kane and Will Counties, IL, School District GO: Zero Coupon, 3/1/2005 (b)	1,540,000	1,374,758
Zero Coupon, 3/1/2006 (b)	1,595,000	1,357,345
Lake Cook Kane and McHenry Counties, IL, School District GO, 6.3%, 12/1/2017	1,885,000	2,192,557
Lake County, IL, Higher Education Revenue, District No. 117:
Series B, Zero Coupon, 12/1/2013	5,880,000	3,292,624
Series B, Zero Coupon, 12/1/2014	5,985,000	3,153,078
Macon County & Decatur, IL, County (GO) Lease, 6.5%, 1/1/2006	1,500,000	1,661,760
Northern, IL, Higher Education Revenue, University, Auxiliary Facilities System:
Zero Coupon, 4/1/2005 (b)	1,865,000	1,660,055
Zero Coupon, 10/1/2005 (b)	1,865,000	1,630,122
Zero Coupon, 4/1/2006 (b)	1,865,000	1,582,117
Zero Coupon, 10/1/2006 (b)	1,865,000	1,552,389
Zero Coupon, 4/1/2007 (b)	1,865,000	1,501,847
Zero Coupon, 10/1/2007 (b)	1,865,000	1,471,672
Oak Lawn, IL, Water & Sewer Revenue:
Zero Coupon, 10/1/2003 (b)	1,295,000	1,229,318
Zero Coupon, 10/1/2004 (b)	1,295,000	1,180,690
Zero Coupon, 10/1/2005 (b)	1,295,000	1,127,427
Zero Coupon, 10/1/2006 (b)	1,295,000	1,073,076
Rosemont, IL, Other GO, Tax Increment:
Zero Coupon, 12/1/2004 (b)	6,000,000	5,459,280
Zero Coupon, 12/1/2005 (b)	7,060,000	6,134,858
Zero Coupon, 12/1/2005 (b)	4,455,000	3,871,217
Zero Coupon, 12/1/2007 (b)	2,655,000	2,080,936
Skokie, IL, Other GO, Park District, Series B, Zero Coupon, 12/1/2011 (b)	3,000,000	1,892,370
St. Charles, IL, Multi Family Housing Revenue, Wessel Court Project, 7.6%, 4/1/2024	3,610,000	3,645,414
University Park, Illinois, Sales & Special Tax Revenue, Governors Gateway Industrial Park, 8.5%, 12/1/2011	2,300,000	2,460,379
Will County, IL, County GO:
Series B, Zero Coupon, 12/1/2011	4,145,000	2,612,055
Series B, Zero Coupon, 12/1/2012	2,480,000	1,474,782
Series B, Zero Coupon, 12/1/2013	12,030,000	6,736,439
Series B, Zero Coupon, 12/1/2014	10,255,000	5,402,642
Will County, IL, Community Unit School District No. 201-U, ETM, Zero Coupon, 12/15/2006 (b)	3,725,000	3,090,260
Will County, IL, School District GO, Community Unit School District No. 365-U, Series B, Zero Coupon, 11/1/2015	8,000,000	3,974,160
Winnebago County, IL, School District GO, District No. 122 Harlem-Loves: 6.55%, 6/1/2009 (b)	1,675,000	1,923,872
6.55%, 6/1/2010 (b)	1,825,000	2,112,176
		622,629,918
Indiana 1.6%
Indiana, Electric Revenue, Municipal Power Agency:
Series B, 5.5%, 1/1/2016	8,960,000	9,648,845
Series B, 6.0%, 1/1/2012	1,750,000	1,967,665
Indiana, Health Facilities Financing Authority: ETM, 6.0%, 7/1/2010	1,035,000	1,167,687
ETM, 6.0%, 7/1/2011	1,100,000	1,245,596
Indiana, Higher Education Revenue:
Series H, Zero Coupon, 8/1/2006	8,500,000	7,113,565
Series H, Zero Coupon, 8/1/2008	10,000,000	7,509,900
Indiana, Hospital & Healthcare Revenue, Fayette Memorial Hospital Project, 7.2%, 10/1/2022	1,800,000	1,838,916
Indiana, Hospital & Healthcare Revenue, Health Facilities Finance Authority, Greenwood Village South Project, 5.625%, 5/15/2028	2,100,000	1,760,829
Indiana, Hospital & Healthcare Revenue, Health Facilities Financing Authority:
Series D, 5.75%, 11/15/2012	4,660,000	5,028,326
6.0%, 7/1/2002	405,000	413,987
6.0%, 7/1/2003	430,000	451,977
6.0%, 7/1/2004	455,000	486,773
Prerefunded, ETM, 6.0%, 7/1/2004 (c)	850,000	915,059
6.0%, 7/1/2005	485,000	525,939
Prerefunded, ETM, 6.0%, 7/1/2005 (c)	1,535,000	1,674,854
6.0%, 7/1/2006	1,630,000	1,797,955
6.0%, 7/1/2006	515,000	563,729
Prerefunded, ETM, 6.0%, 7/1/2007 (c)	1,725,000	1,913,870
6.0%, 7/1/2007	545,000	599,778
Prerefunded, ETM, 6.0%, 7/1/2008 (c)	945,000	1,053,155
6.0%, 7/1/2008	300,000	331,230
Prerefunded, ETM, 6.0%, 7/1/2009 (c)	980,000	1,100,648
6.0%, 7/1/2009	310,000	343,052
6.0%, 7/1/2010	325,000	361,712
6.0%, 7/1/2011	345,000	386,203
6.0%, 7/1/2012	370,000	415,155
Prerefunded, ETM, 6.0%, 7/1/2012 (c)	1,165,000	1,320,819
6.0%, 7/1/2013	390,000	437,291
Prerefunded, ETM, 6.0%, 7/1/2013 (c)	1,230,000	1,394,513
6.0%, 7/1/2014	410,000	460,811
Prerefunded, ETM, 6.0%, 7/1/2014 (c)	1,310,000	1,484,374
6.0%, 7/1/2015	440,000	493,874
Prerefunded, ETM, 6.0%, 7/1/2015 (c)	1,385,000	1,567,959
6.0%, 7/1/2016	465,000	520,168
Prerefunded, ETM, 6.0%, 7/1/2016 (c)	1,470,000	1,660,880
6.0%, 7/1/2017	490,000	546,257
Prerefunded, ETM, 6.0%, 7/1/2017 (c)	1,560,000	1,759,118
6.0%, 7/1/2018	520,000	577,814
Prerefunded, ETM, 6.0%, 7/1/2018 (c)	1,655,000	1,860,998
Indiana, Transportation/Tolls Revenue, Series A, 7.25%, 6/1/2015	3,120,000	3,864,338
Indiana, Transportation/Tolls Revenue, Transportation Authority: Series A, 5.75%, 6/1/2012	4,550,000	5,056,097
Series A, ETM, 7.25%, 6/1/2015	880,000	1,068,153
Indiana, Transportation/Tolls Revenue, Transportation Finance Authority, Series A, 5.75%, 6/1/2012	450,000	504,881
Merrillville, IN, School District (REV) Lease, Multiple School Building Corp., First Mortgage, Zero Coupon, 1/15/2011 (b)	4,000,000	2,622,600
		77,817,350
Iowa 0.5%
Iowa, Project Revenue:
5.5%, 2/15/2015	10,530,000	11,464,959
5.5%, 2/15/2016	6,645,000	7,208,961
5.5%, 2/15/2020	5,500,000	5,918,275
		24,592,195
Kansas 1.4%
Johnson County, KS, School District GO, Series B, 5.5%, 9/1/2015	1,860,000	2,030,060
Kansas, Pollution Control Revenue, Development Financing Authority:
Series II, 5.5%, 5/1/2014	2,000,000	2,171,740
Series II, 5.5%, 11/1/2015	1,000,000	1,085,820
Series II, 5.5%, 11/1/2017	1,000,000	1,075,520
Kansas, Transportation/Tolls Revenue, Series A, 5.75%, 9/1/2012	17,450,000	19,204,598
Kansas, Transportation/Tolls Revenue, Development Financing Authority, Series A, 5.75%, 9/1/2013	8,235,000	9,037,913
Kansas City, KS, Electric Revenue, Utility Systems Revenue:
Zero Coupon, 9/1/2004 (b)	2,640,000	2,423,018
Zero Coupon, 9/1/2005 (b)	3,950,000	3,466,481
Zero Coupon, 9/1/2006 (b)	1,375,000	1,149,748
Kansas City, KS, Utility Systems Revenue:
ETM, Zero Coupon, 9/1/2004 (b)	3,575,000	3,287,391
ETM, Zero Coupon, 9/1/2005 (b)	5,300,000	4,661,509
ETM, Zero Coupon, 9/1/2006 (b)	1,875,000	1,572,225
Overland Park, KS, Industrial Development Revenue, Development Corp., Series A, 7.375%, 1/1/2032	12,000,000	12,390,720
Saline County, School District GO, 5.5%, 9/1/2017	3,240,000	3,423,771
		66,980,514
Kentucky 1.7%
Kentucky, Hospital & Healthcare Revenue, Economic Development Finance Authority:
Series C, Zero Coupon, 10/1/2011 (b)	10,295,000	8,963,239
Series C, Zero Coupon, 10/1/2012 (b)	13,670,000	11,887,022
Series C, Zero Coupon, 10/1/2013 (b)	8,245,000	7,155,506
Series C, Zero Coupon, 10/1/2014 (b)	5,130,000	4,523,942
Series C, Zero Coupon, 10/1/2015 (b)	5,235,000	4,571,097
Series C, Zero Coupon, 10/1/2016 (b)	6,500,000	5,676,580
Kentucky, Public Housing Revenue, Property and Buildings Project No. 69:
Series A, 5.25%, 8/1/2015	10,000,000	10,418,800
Series A, 5.375%, 8/1/2016	5,000,000	5,233,750
Kentucky, State (REV) Lease, Property and Buildings Project No. 68, 5.75%, 10/1/2015	5,375,000	5,829,456
Kentucky, State (REV) Lease, State Property and Buildings Commission Revenue, Project No. 68, 5.75%, 10/1/2012	3,095,000	3,401,529
Kentucky, State Agency (REV) Lease, Property and Buildings Project No. 71:
5.5%, 8/1/2013	2,500,000	2,733,200
5.5%, 8/1/2014	4,250,000	4,637,388
5.5%, 8/1/2015	4,000,000	4,359,920
Kentucky, Transportation/Tolls Revenue, Turnpike Authority Economic Development, Series A, 5.5%, 7/1/2013	4,900,000	5,354,670
		84,746,009
Louisiana 0.4%
Louisiana, Public Facilities Authority, Prerefunded, 4.75%, 5/1/2016 (c)	5,765,000	6,037,454
Louisiana, Public Facilities Authority, Centenary College Louisiana Project:
5.75%, 2/1/2012	1,000,000	1,102,900
5.9%, 2/1/2017	1,000,000	1,111,030
New Orleans, LA, Other GO: Zero Coupon, 9/1/2005	2,500,000	2,191,550
Zero Coupon, 9/1/2007 (b)	10,000,000	7,917,700
Orleans, LA, Sales & Special Tax Revenue, Levee, District Improvement Project, 5.95%, 11/1/2014 (b)	1,620,000	1,751,382
		20,112,016
Maine 0.1%
Maine, Hospital & Healthcare Revenue, Health and Educational Facilities Authority, Series B, 7.1%, 7/1/2014	55,000	61,860
Maine, Transportation/Tolls Revenue, Turnpike Authority, 5.625%, 7/1/2017	4,350,000	4,628,096
		4,689,956
Maryland 1.7%
Baltimore, MD, Sales & Special Tax Revenue, Series A, 5.9%, 7/1/2012	3,100,000	3,512,207
Maryland, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, 5.75%, 7/1/2013	6,785,000	6,443,511
Maryland, Hospital & Healthcare Revenue, Health & Higher Education Facilities Authority, State Economic Development Corp., 6.75%, 7/1/2030	4,000,000	4,387,840
Maryland, Project Revenue, Economic Development Corp., Chesapeake Bay, Series B, 7.75%, 12/1/2031	37,000,000	36,478,670
Maryland, State GO, 5.75%, 8/1/2013	18,565,000	20,687,351
Northeast, MD, Resource Recovery Revenue, Waste Disposal Authority:
7.2%, 1/1/2006 (b)	4,940,000	5,465,171
7.2%, 1/1/2007 (b)	3,390,000	3,750,391
		80,725,141
Massachusetts 3.5%
Massachusetts, Airport Revenue, AMT, Series B, 5.5%, 7/1/2012	3,025,000	3,175,706
Massachusetts, Electric Revenue, Municipal Wholesale Electric Power Supply Systems:
Series C, 6.625%, 7/1/2018	3,115,000	3,225,053
Series B, 6.75%, 7/1/2011	17,500,000	18,236,575
Series B, 6.75%, 7/1/2017	3,945,000	4,089,545
Massachusetts, Port Authority Revenue, ETM, 13.0%, 7/1/2013	1,500,000	2,325,915
Massachusetts, Higher Education Revenue, Building Authority Project:
Series 2, 5.5%, 11/1/2017	1,105,000	1,161,775
Series 2, 5.5%, 11/1/2018	1,400,000	1,464,680
Massachusetts, Higher Education Revenue, College Building Authority Project, Series A, 7.5%, 5/1/2014	5,500,000	6,959,425
Massachusetts, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Massachusetts General Hospital, Series F, 6.25%, 7/1/2012	1,000,000	1,141,160
Massachusetts, Sales & Special Tax Revenue, Federal Highway, Series A, Zero Coupon, 12/15/2014	27,680,000	14,666,248
Massachusetts, State GO: Series D, 5.5%, 11/1/2018	4,000,000	4,314,480
Series D, 5.5%, 11/1/2019	7,500,000	8,093,025
Series D, 5.5%, 11/1/2020	2,000,000	2,155,820
Series C, 5.75%, 10/1/2012	4,000,000	4,486,440
Massachusetts, State GO, College Building Authority Project, Series A, 7.5%, 5/1/2010	4,110,000	5,033,887
Massachusetts, State GO, Rites-PA 793, Inverse Floater, 10.034%, 10/1/2008**	6,095,000	7,577,426
Massachusetts, State GO, Transportation Authority:
Series A, 5.875%, 3/1/2015	10,075,000	11,332,965
Series B, 6.2%, 3/1/2016	17,450,000	20,155,099
Massachusetts, Transportation/Tolls Revenue, Turnpike Authority:
Series C, Zero Coupon, 1/1/2018	10,000,000	4,317,600
Series C, Zero Coupon, 1/1/2019	5,500,000	2,238,885
Series C, Zero Coupon, 1/1/2020	7,000,000	2,689,260
Massachusetts, Water & Sewer Revenue, Water Pollution Abatement Trust, Series 5, 5.375%, 8/1/2027	5,000,000	5,098,150
Massachusetts, Water & Sewer Revenue, Water Resource Authority:
Series C, 6.0%, 12/1/2011	10,000,000	11,357,200
Series A, 6.5%, 7/15/2009	2,625,000	3,029,171
Series A, 6.5%, 7/15/2019	13,710,000	16,359,868
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032	5,000,000	4,860,000
		169,545,358
Michigan 2.5%
Brighton, MI, School District GO, Series II, Zero Coupon, 5/1/2016	5,000,000	2,418,800
Detroit, MI, Core City GO:
Series B, 6.0%, 4/1/2016 (b)	2,865,000	3,168,977
Series B, 6.25%, 4/1/2010	3,410,000	3,612,861
Detroit, MI, School District GO:
Series C, 5.25%, 5/1/2014	1,000,000	1,062,400
Series A, 5.5%, 5/1/2015	5,325,000	5,652,275
Series A, 5.5%, 5/1/2017	3,295,000	3,453,292
Series A, 6.0%, 5/1/2029	15,000,000	17,237,100
Detroit, MI, State GO:
Series A-1, 5.375%, 4/1/2016	2,760,000	2,871,007
Series A1, 5.375%, 4/1/2018	3,000,000	3,085,170
Detroit, MI, Water & Sewer Revenue, Series A, Zero Coupon, 7/1/2015	8,710,000	4,423,286
Grand Rapid, MI, Water & Sewer Revenue, Water Supply, 5.75%, 1/1/2016 (b)	2,955,000	3,194,651
Michigan, Hospital & Healthcare Revenue, Finance Authority:
Series A, 6.0%, 11/15/2013	10,000,000	10,718,500
Series A, 6.25%, 11/15/2014	10,000,000	10,876,200
Michigan, Hospital & Healthcare Revenue, Hospital Finance Authority, Gratiot Community Hospital, 6.1%, 10/1/2007	2,250,000	2,323,328
Michigan, Sales & Special Tax Revenue, Trunk Line:
Series A, 5.5%, 11/1/2014	4,055,000	4,337,877
Series A, 5.5%, 11/1/2016	9,545,000	10,070,834
Series A, 5.5%, 11/1/2017	7,000,000	7,569,240
Michigan, State Agency (GO) Lease, Building Authority, Inverse Floater, Series B, 8.209%, 10/15/2015**	2,500,000	2,814,850
Michigan, State Agency (GO) Lease, Building Authority, Rites-PA 889R, Inverse Floater, Series A, 8.209%, 10/15/2014**	4,155,000	4,732,545
Michigan, State GO: 5.5%, 12/1/2014	5,000,000	5,470,050
5.5%, 12/1/2015	5,875,000	6,419,613
Michigan, Water & Sewer Revenue, Clean Water Revolving Funding, 5.625%, 10/1/2012	2,000,000	2,185,420
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.6%, 2/15/2013	2,585,000	2,705,355
		120,403,631
Minnesota 0.3%
Minnesota, Higher Education Revenue: Series A, 5.75%, 7/1/2017	3,240,000	3,595,687
Series A, 5.75%, 7/1/2018	6,760,000	7,476,087
New Hope, MN, Hospital & Healthcare Revenue, Masonic Home North Ridge:
5.875%, 3/1/2029	2,700,000	2,400,894
5.9%, 3/1/2019	1,335,000	1,244,634
		14,717,302
Mississippi 0.0%
Jones County, MS, Hospital & Healthcare Revenue, South Central Regional Medical Center, 5.5%, 12/1/2017	2,055,000	1,956,319
Missouri 2.3%
Missouri, Hospital & Healthcare Revenue:
Series AA, 6.35%, 6/1/2008 (b)	8,125,000	9,164,675
Series AA, 6.4%, 6/1/2009 (b)	8,640,000	9,867,398
Missouri, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Washington University, Series A, 5.5%, 6/15/2016	11,400,000	12,421,896
Missouri, Senior Care Revenue, Health & Educational Facilities Authority, 5.75%, 2/1/2017	3,250,000	3,269,598
Missouri, Transportation/Tolls Revenue: Series A, 5.625%, 2/1/2012	5,365,000	5,892,219
Series A, 5.625%, 2/1/2013	3,300,000	3,608,616
Series A, 5.625%, 2/1/2014	2,000,000	2,177,580
Series A, 5.625%, 2/1/2016	3,125,000	3,361,000
Missouri, Water & Sewer Revenue, Environmental Improvement and Energy Resource Authority:
Series C, 5.375%, 7/1/2016	3,585,000	3,852,011
Series C, 5.375%, 7/1/2017	4,305,000	4,606,092
Series C, 5.375%, 7/1/2018	3,250,000	3,459,983
Series B, 5.5%, 7/1/2014	3,000,000	3,281,220
Series B, 5.5%, 7/1/2015	3,500,000	3,824,730
Series B, 5.5%, 7/1/2016	5,065,000	5,508,694
Sikeston, MO, Electric Revenue, 6.2%, 6/1/2010	6,870,000	7,857,150
St. Louis, MO, County (GO) Lease, Regional Convention & Sports Complex Authority, Series C, 7.9%, 8/15/2021	240,000	249,936
St. Louis, MO, Special Assessment Revenue, Scullin Redevelopment Area, Series A, 10.0%, 8/1/2010	6,805,000	8,292,641
St. Louis, Industrial Development Revenue, Industrial Development Authority, St. Louis Convention, AMT, Series A, 7.25%, 12/15/2035	5,000,000	5,263,800
St. Louis, MO, Airport Revenue, Series A, 5.625%, 7/1/2017	6,000,000	6,317,580
St. Louis, MO, County GO, Industrial Development Authority, Convention Center Hotel, Zero Coupon, 7/15/2016	6,895,000	3,282,365
St. Louis, MO, Industrial Development Revenue, Convention Center, Series A, 6.875%, 12/15/2020	2,500,000	2,588,900
St. Louis, MO, State (GO) Lease, Industrial Development Authority, Convention Center Hotel, Zero Coupon, 7/15/2015	4,200,000	2,125,997
		110,274,081
Montana 0.3%
Montana, Higher Education Revenue, Series F, 6.0%, 5/15/2019	5,000,000	5,529,700
Montana, Water & Sewer Revenue, Clearence Cannon Wholesale, 6.0%, 5/15/2020	10,000,000	10,099,100
Montana, Single Family Housing Revenue, Series A, Zero Coupon, 6/1/2010	5,000	2,049
		15,630,849
Nebraska 0.5%
Nebraska, Single Family Housing Revenue, Investment Finance Authority, Series A, 6.7%, 9/1/2026	3,520,000	3,641,968
Omaha, NE, Core City GO, Series A, 6.5%, 12/1/2018	1,000,000	1,195,410
Omaha, NE, Public Power District, Electric Revenue, Series B, ETM, 6.2%, 2/1/2017	4,700,000	5,390,806
Omaha, NE, School District GO:
Series A, 6.5%, 12/1/2012	4,865,000	5,750,868
Series A, 6.5%, 12/1/2015	1,480,000	1,770,494
Series A, 6.5%, 12/1/2016	1,000,000	1,196,420
Series A, 6.5%, 12/1/2017	4,000,000	4,785,920
Scotts Bluff County, Hospital & Healthcare Revenue, Medical Center, 6.45%, 12/15/2004	915,000	960,293
Scotts Bluff County, Hospital & Healthcare Revenue, 6.45%, 12/15/2004	1,270,000	1,316,812
		26,008,991
Nevada 1.0%
Clark County, NV, School District GO:
Series B, Zero Coupon, 3/1/2005 (b)	8,070,000	7,204,089
Series B, Zero Coupon, 3/1/2009 (b)	4,350,000	3,161,232
Clark County, NV, State GO, Industrial Development Authority, Series B, 5.9%, 10/1/2030	5,000,000	4,716,150
Henderson, NV, Hospital & Healthcare Revenue, Catholic Healthcare West, 5.375%, 7/1/2026	15,000,000	13,587,900
Las Vegas, NV, Transportation/Tolls Revenue, Monorail Department Business and Industry:
7.375%, 1/1/2040	15,000,000	14,868,150
Zero Coupon, 1/1/2013 (b)	5,000,000	2,926,600
		46,464,121
New Hampshire 0.1%
New Hampshire, Senior Care Revenue, Havenwood Heritage Heights, 7.35%, 1/1/2018	2,500,000	2,543,775
New Hampshire, Senior Care Revenue, Higher Education Revenue, Havenwood Heritage Heights, 7.45%, 1/1/2025	4,000,000	4,054,080
		6,597,855
New Jersey 5.9%
Atlantic City, NJ, School District GO, Board of Education:
6.0%, 12/1/2013	4,600,000	5,255,224
6.1%, 12/1/2014	4,500,000	5,190,930
Jersey City, NJ, Water & Sewer Revenue, 4.5%, 1/1/2019	13,000,000	12,208,820
New Jersey, Transportation/Toll Revenue, Garden State Parkway, ETM, 6.5%, 1/1/2011	3,841,000	4,287,708
New Jersey, Transportation/Toll Revenue, Turnpike Authority, ETM, 10.375%, 1/1/2003	1,015,000	1,064,654
New Jersey, Hospital & Healthcare Revenue, Atlantic City Medical Center, Series C, 6.8%, 7/1/2011	6,840,000	7,128,580
New Jersey, Industrial Development Revenue, Economic Development Authority, Harrogate, Inc., Series A, 5.875%, 12/1/2026	1,000,000	920,960
New Jersey, Senior Care Revenue, Economic Development Authority, United Methodist Homes: 5.5%, 7/1/2019	4,000,000	3,658,480
5.75%, 7/1/2029	9,500,000	8,635,975
New Jersey, State (REV) Lease, Transportation Trust Fund Authority, Rites-PA 785, Inverse Floater, 10.205%, 9/15/2015**	5,190,000	6,369,220
New Jersey, State (REV) Lease, Transportation Trust Fund Authority, Residual Certificates, Series 524, 9.11%, 6/15/2013	17,900,000	21,280,594
New Jersey, State Agency (GO) Lease, Transportation Trust Fund Authority, Series A, 5.625%, 6/15/2014	3,555,000	3,926,071
New Jersey, State Agency (GO) Lease, Transportation Trust Fund Authority, Residual Certificates, Series 224, 9.86%, 6/15/2016	11,000,000	13,393,270
New Jersey, State GO, Series H, 5.25%, 7/1/2017	14,665,000	15,523,489
New Jersey, Transportation/Tolls Revenue, Economic Development Authority, Series A, 5.875%, 5/1/2014	5,000,000	5,477,250
New Jersey, Transportation/Tolls Revenue, Federal Transportation Administration Grants, Series B, 5.75%, 9/15/2013	11,000,000	12,110,120
New Jersey, Transportation/Tolls Revenue, Garden State Parkway:
5.5%, 1/1/2013	9,000,000	9,823,680
5.5%, 1/1/2015 (b)	5,500,000	5,996,540
5.5%, 1/1/2016	4,370,000	4,748,180
New Jersey, Transportation/Tolls Revenue, State Highway Authority, Garden State Parkway, 5.5%, 1/1/2014 (b)	6,000,000	6,539,760
New Jersey, Transportation/Tolls Revenue, Turnpike Authority:
Series A, 6.0%, 1/1/2012	7,000,000	7,919,310
Series A, 6.0%, 1/1/2013	5,000,000	5,669,850
Series C, 6.5%, 1/1/2016	45,720,000	54,466,236
Series R20, 9.86%, 1/1/2011	12,140,000	15,265,200
New Jersey, Transportation/Tolls Revenue, Turnpike Authority, Rites-PA 613, Inverse Floater, 9.764%, 1/1/2016**	21,170,000	29,269,854
New Jersey, Transportation/Tolls Revenue, Turnpike Authority, Rites-PA 614, Inverse Floater, 9.902%, 1/1/2016**	3,830,000	5,295,396
New Jersey, Transportation/Tolls Revenue, Turnpike Authority, Series R-20, 9.86%*, 1/1/2010	11,100,000	13,526,016
		284,951,367
New Mexico 0.4%
Albuquerque, NM, Hospital and Healthcare Revenue, Southwest Community Health Services: ETM, 10.0%, 8/1/2003	370,000	401,835
10.125%, 8/1/2012	3,820,000	4,854,762
Los Alamos County, NM, Electric Revenue, Utility Systems, Series A, 6.1%, 7/1/2010	4,400,000	4,802,115
New Mexico, Single Family Housing Revenue, Mortgage Finance Authority, Series E2, 6.8%, 3/1/2031	7,355,000	8,239,880
Socorro, NM, Southwest Community Health Services, ETM, 10.0%, 8/1/2003	495,000	537,615
		18,836,207
New York 5.5%
Long Island, NY, Electric Revenue:
Zero Coupon, 6/1/2008	14,500,000	11,111,785
Zero Coupon, 6/1/2009	6,750,000	4,928,918
Monroe County, NY, Airport Revenue, Rites-PA 585A, Inverse Floater, 9.926%, 1/1/2014**	2,005,000	2,356,857
Monroe County, NY, Airport Revenue, Rites-PA 585B, Inverse Floater, 9.923%, 1/1/2015**	2,515,000	2,952,157
Monroe County, NY, Airport Revenue, Rites-PA 585C, Inverse Floater, 10.177%, 1/1/2016**	1,915,000	2,281,301
Nassau County, NY, Sales & Special Tax Revenue, Interim Finance Authority:
Series A, 5.75%, 11/15/2015	3,060,000	3,324,109
Series A, 5.75%, 11/15/2016	4,250,000	4,620,090
New York, Higher Education Revenue, Dormitory Authority, City University:
Series A, 5.625%, 7/1/2016	4,000,000	4,407,320
Series B, 6.0%, 7/1/2014	7,000,000	7,967,750
New York, Hospital & Healthcare Revenue, Medical Care Facilities Finance Agency, 7.75%, 8/15/2010	60,000	62,196
New York, School District GO, Dormitory Authority, City University, Series A, 5.5%, 5/15/2019	1,500,000	1,607,490
New York, Senior Care Revenue, Dormitory Authority, City University:
Series A, 5.25%, 5/15/2021	2,000,000	2,073,080
Series F, 5.375%, 7/1/2007	2,000,000	2,141,020
New York, Senior Care Revenue, Metropolitan Transportation Authority, Series O, 5.75%, 7/1/2013	6,775,000	7,575,060
New York, State (GO) Lease, Dormitory Authority, City University, Series A, 5.75%, 7/1/2013	5,500,000	6,149,495
New York, State (GO) Lease, Urban Development Corp., 5.6%, 4/1/2015	4,655,000	5,088,101
New York, State Agency (GO) Lease, Dormitory Authority, City University:
5.25%, 5/15/2017 (b)	3,500,000	3,620,960
Series D, 7.0%, 7/1/2009 (b)	4,000,000	4,582,520
Series C, 7.5%, 7/1/2010 (b)	5,750,000	6,831,633
New York, State Agency (GO) Lease, Metropolitan Transportation Authority, Series A, 6.0%, 4/1/2020	5,000,000	5,676,350
New York, State Agency (GO) Lease, Urban Development Authority, Correctional Facilities, Series A, 6.5%, 1/1/2011	4,500,000	5,254,515
New York, State Agency (GO) Lease, Urban Development Corp., 5.7%, 4/1/2020	3,600,000	3,915,828
New York, Transportation/Tolls Revenue, Metropolitan Transportation Authority:
Series C, 5.125%, 7/1/2011	10,000,000	10,645,900
Series Q, 5.125%, 7/1/2012	7,750,000	8,127,270
Series C, 5.125%, 7/1/2013	5,000,000	5,235,550
New York, Transportation/Tolls Revenue, Thruway Authority Service Contract, Local Highway and Bridge Building:
5.625%, 4/1/2012	5,470,000	5,970,560
5.75%, 4/1/2016	10,000,000	10,918,300
New York, Transportation/Tolls Revenue, Thruway Authority Service Contract, Local Highway and Bridge Project, 5.5%, 4/1/2011	5,000,000	5,471,600
New York, Transportation/Tolls Revenue, Triborough Bridge and Tunnel Authority, Series Y, 5.5%, 1/1/2017	5,050,000	5,440,264
New York, Water & Sewer Revenue, Environmental Facilities Corporation, State Water Pollution Control, Series E, 6.875%, 6/15/2014	4,560,000	5,048,513
New York and New Jersey, Port Authority Revenue:
Series II, 9.83, 10/15/2007	6,160,000	6,855,218
6.0%, 7/1/2013	6,555,000	6,934,731
6.0%, 7/1/2015	2,500,000	2,630,050
Series 4, AMT, 7.0%, 10/1/2007	2,000,000	2,109,100
New York City, NY, Core City GO, Series G, 6.75%, 2/1/2009	2,000,000	2,288,140
New York, NY, Core City GO:
Series G, Zero Coupon, 8/1/2009	19,100,000	13,746,270
Series F, 5.25%, 8/1/2016	5,000,000	5,064,500
Series C, 5.375%, 11/15/2017	5,000,000	5,169,800
Series J, 5.875%, 2/15/2019	16,060,000	16,759,895
Series B, 6.0%, 8/15/2004	3,425,000	3,681,396
Series A, 6.375%, 8/1/2004	4,805,000	5,003,543
Series E, 6.5%, 2/15/2005	7,000,000	7,634,970
Series A, 6.5%, 5/15/2012	7,000,000	7,983,920
Series H, 7.0%, 2/1/2005	315,000	322,223
Series H, 7.0%, 2/1/2007	240,000	245,503
Series A, 7.75%, 8/15/2015	35,000	35,733
Series F, 8.4%, 11/15/2005	190,000	198,090
Series F, 8.4%, 11/15/2006	560,000	583,845
New York, NY, Series E, ETM, 7.0%, 12/1/2007 (b)	1,385,000	1,490,440
New York, NY, Sales & Special Tax Revenue, Transitional Finance Authority, Series B, 5.25%, 5/1/2016	5,000,000	5,204,400
New York, NY, Sports, Expo & Entertainment Revenue, Industrial Development Agency, USTA National Tennis Center: 6.5%, 11/15/2010	3,485,000	3,884,205
6.6%, 11/15/2011	3,000,000	3,361,170
New York, NY, State GO, Series A, 5.25%, 3/15/2015	2,500,000	2,612,025
Suffolk County, NY, Water & Sewer Revenue, Industrial Development Agency, 6.0%, 2/1/2007 (b)	8,000,000	8,828,400
		268,014,069
North Carolina 1.6%
Charlotte, NC, Water & Sewer Revenue: 5.5%, 6/1/2013	2,825,000	3,093,290
5.5%, 6/1/2014	3,105,000	3,384,667
5.5%, 6/1/2017	3,255,000	3,478,651
North Carolina, Electric Revenue, Catawba Municipal Power Agency: 5.25%, 1/1/2008 (b)	2,500,000	2,658,225
5.25%, 1/1/2009	8,500,000	9,055,220
5.5%, 1/1/2013	10,000,000	10,861,300
7.25%, 1/1/2007 (b)	5,000,000	5,764,050
North Carolina, Electric Revenue, Eastern Municipal Power Agency: 6.0%, 1/1/2018	8,775,000	9,814,223
Series B, 6.0%, 1/1/2022	18,775,000	21,123,565
		78,455,732
North Dakota 0.0%
North Dakota, Single Family Housing Revenue, Mortgage Finance Authority, Series A, 8.05%, 1/1/2024	370,000	372,705
Ohio 3.7%
Akron, OH, Higher Education Revenue, 5.75%, 1/1/2013	2,365,000	2,597,645
Akron, OH, Project Revenue, Economic Development, 6.0%, 12/1/2012 (b)	1,000,000	1,138,840
Akron, OH, Water & Sewer Revenue, 5.9%, 12/1/2011	385,000	415,738
Avon, OH, School District GO, 6.5%, 12/1/2015	940,000	1,124,503
Batavia, OH, Local School District, 7.0%, 12/1/2014	500,000	580,790
Beavercreek, OH, School District GO, Local School District, 6.6%, 12/1/2015 (b)	1,500,000	1,798,050
Big Walnut, OH, School District GO, Local School District, Zero Coupon, 12/1/2012	420,000	252,323
Cincinnati, OH, Water & Sewer Revenue: 5.5%, 12/1/2014	1,500,000	1,608,345
5.5%, 12/1/2017	1,000,000	1,054,870
Cincinnati, OH, Higher Education Revenue, General Receipts:
Series T, 5.5%, 6/1/2012	1,280,000	1,395,712
Series A, 5.75%, 6/1/2015	2,000,000	2,195,720
Series A, 5.75%, 6/1/2016	1,500,000	1,637,085
Cleveland, OH, Core City (REV) Lease, Parking Facility Revenue, 6.0%, 9/15/2009 (b)	1,385,000	1,559,399
Cleveland, OH, Electric Revenue, Public Power Systems Revenue: Series A, Zero Coupon, 11/15/2012 (b)	2,250,000	1,346,580
Series 1, 6.0%, 11/15/2011 (b)	1,050,000	1,193,798
Cleveland, OH, Sales & Special Tax Revenue, Urban Renewal Tax Increment, Rock & Roll Hall of Fame and Musuem Project, 6.75%, 3/15/2018	1,000,000	1,030,090
Cleveland, OH, Water & Sewer Revenue: Series J, 5.375%, 1/1/2014	1,500,000	1,593,525
Series J, 5.375%, 1/1/2016	2,000,000	2,093,460
Series G, 5.5%, 1/1/2013 (b)	10,000,000	10,896,900
Series B, 6.5%, 1/1/2011	385,000	394,186
Cleveland-Cuyahoga County, OH, Port Authority Revenue, 6.0%, 3/1/2007	2,470,000	2,659,943
Columbus, OH, 6.0%, 5/1/2013 (c)	1,000,000	1,071,040
Crawford County, OH, 6.75%, 12/1/2019	700,000	792,960
Cuyahoga County, OH, Hospital and Healthcare Revenue, 6.25%, 8/15/2014	8,000,000	8,987,120
Cuyahoga County, OH, County (GO) Lease, 5.0%, 12/1/2020	1,000,000	994,540
Cuyahoga County, OH, County GO, 5.65%, 5/15/2018	500,000	546,475
Cuyahoga County, OH, Jail Facilities, ETM, Zero Coupon, 10/1/2002	1,500,000	1,472,685
Cuyahoga County, OH, Hospital and Healthcare Revenue, 6.25%, 8/15/2014	1,000,000	1,056,600
Cuyahoga County, OH, Multi Family Housing Revenue, 6.5%, 10/20/2020	1,000,000	1,053,950
Dublin, OH, School District GO, Zero Coupon, 2/1/2011	1,095,000	692,062
Fayette County, OH, School District GO, Rattlesnake Improvement Area Project, 5.9%, 12/1/2013	125,000	133,281
Finneytown, OH, Other GO, Local School District, 6.2%, 12/1/2017	320,000	371,402
Franklin County, OH, Hospital & Healthcare Revenue, Presbyterian Services:
5.25%, 7/1/2008	500,000	489,530
5.5%, 7/1/2017	1,000,000	904,130
Franklin County, OH, School District GO, 6.5%, 12/1/2013	500,000	589,665
Green Springs, OH, Senior Care Revenue, Hospital and Healthcare Facilities Revenue, Series A, 7.0%, 5/15/2014	4,635,000	3,967,236
Green Springs, OH, Senior Care Revenue, St. Francis Health Care Center Project, Series A, 7.125%, 5/15/2025	4,405,000	3,570,825
Hamilton County, OH, Sales & Special Tax Revenue: Series B, 5.75%, 12/1/2014	2,000,000	2,190,360
Series B, 5.75%, 12/1/2015	4,240,000	4,617,318
Hamilton County, OH, Water & Sewer Revenue, Series A, 5.45%, 12/1/2009 (b)	1,000,000	1,090,960
Hilliard, OH, School District GO, Series A, Zero Coupon, 12/1/2012	1,655,000	987,356
Huber Heights, OH, Water & Sewer Revenue, Zero Coupon, 12/1/2012 (b)	1,005,000	600,216
Lakeview, OH, Local School District, 6.9%, 12/1/2014	700,000	795,704
Liberty Benton, OH, School District GO, Zero Coupon, 12/1/2014	570,000	303,166
Liberty, OH, School District GO, Zero Coupon, 12/1/2012	255,000	152,130
Lorain County, OH, Hospital Revenue, Series A, Prerefunded, 5.9%, 12/15/2008 (c)	1,000,000	1,073,510
Lorain County, OH, Lakeland Community Hospital Inc., ETM, 6.5%, 11/15/2012	1,000,000	1,064,220
Lorain County, OH, Hospital & Healthcare Revenue, Catholic Health Care Partners, Series A, 5.25%, 10/1/2033	4,500,000	4,387,545
Lucas County, OH, Flower Hospital, Prerefunded, 6.125%, 12/1/2013 (c)	1,375,000	1,512,789
Lucas County, OH, Hospital & Healthcare Revenue, Presbyterian:
Series A, 6.625%, 7/1/2014	2,000,000	2,024,520
Series A, 6.75%, 7/1/2020	2,000,000	1,950,320
Marion County, OH, Senior Care Revenue, Healthcare Facilities, Church Homes Project:
6.3%, 11/15/2015	3,600,000	3,511,944
6.375%, 11/15/2010	3,460,000	3,449,378
Miami County, OH, Hospital & Healthcare Revenue, Upper Valley Medical Center, Series C, 6.25%, 5/15/2013	1,000,000	1,032,660
Napoleon, OH, Hospital & Healthcare Revenue, Lutheran Orphans Home, 6.875%, 8/1/2023	420,000	447,476
North Olmstead, OH, Other GO:
6.2%, 12/1/2011 (b)	2,000,000	2,279,060
6.25%, 12/15/2012 (b)	1,500,000	1,595,010
Ohio, Building Authority, Juvenile Correctional Facility, Series A, 6.6%, 10/1/2014	200,000	224,298
Ohio, Building Authority, Toledo Government Office Building, Series A, 8.0%, 10/1/2007	500,000	537,300
Ohio, Mortgage Revenue, Single Family Housing Finance Agency:
Zero Coupon, 1/15/2015	3,515,000	1,743,124
Zero Coupon, 1/15/2015	4,360,000	2,106,142
Ohio, Higher Education Revenue: Series A, 5.375%, 2/1/2017	500,000	522,030
Series A, 6.5%, 7/1/2008	2,325,000	2,652,035
Ohio, Higher Education Revenue, Case Western Reserve University:
6.0%, 10/1/2014	1,000,000	1,140,250
Series B, 6.5%, 10/1/2020	2,250,000	2,697,075
Ohio, Higher Education Revenue, General Receipts:
Series A, 6.0%, 12/1/2016	1,000,000	1,106,520
Series A, 6.0%, 12/1/2017	1,060,000	1,169,159
Ohio, Higher Education Revenue, University of Dayton, 6.6%, 12/1/2017	430,000	473,396
Ohio, Higher Education Revenue, University of Findlay Project, 6.125%, 9/1/2016	400,000	414,536
Ohio, Higher Education Revenue, University of Ohio, General Receipts:
5.75%, 6/1/2013	1,125,000	1,239,953
5.75%, 6/1/2016	1,250,000	1,357,325
Ohio, Higher Education Revenue, Xavier University, 6.0%, 5/15/2011	240,000	262,786
Ohio, Multi Family Housing Revenue, Westlake Apartments Project, 5.85%, 12/1/2016	300,000	310,221
Ohio, Project Revenue, Administrative Building Funds Project, Series A, 5.375%, 10/1/2013	1,000,000	1,062,780
Ohio, Sales & Special Tax Revenue, Infrastructure Improvement, Series B, 5.25%, 2/1/2014	5,000,000	5,350,550
Ohio, School District GO, 6.0%, 12/1/2019	475,000	541,025
Ohio, State (GO) Lease, Higher Education Revenue, Series B, 5.625%, 5/1/2015	1,000,000	1,079,170
Ohio, State Agency (GO) Lease, Administrative Building Funds Project, Series A, 6.3%, 10/1/2011	140,000	147,770
Ohio, State Agency (GO) Lease, Building Authority, Adult Correctional Facilities: 5.75%, 4/1/2012	2,400,000	2,641,488
5.75%, 4/1/2013	1,000,000	1,097,680
Ohio, State Agency (REV) Lease, Administrative Building Funds Project:
Series A, 5.5%, 10/1/2015	4,370,000	4,665,587
Series A, 5.5%, 10/1/2016	3,790,000	4,021,759
Series A, 5.5%, 10/1/2018	3,695,000	3,882,337
Ohio, State Agency (REV) Lease, Building Authority, Juvenile Correctional Facility, Series A, 5.5%, 4/1/2016	3,665,000	3,868,664
Ohio, State GO, 6.0%, 8/1/2010	1,000,000	1,134,660
Ohio, Transportation/Toll Revenue, Series A, 5.5%, 2/15/2017	4,425,000	4,778,690
Ohio, Transportation/Toll Revenue, Turnpike Authority, Series B, 5.5%, 2/15/2013	3,500,000	3,816,470
Ohio, Water & Sewer Revenue, Bay Shore Project, Series A, 5.875%, 9/1/2020	4,250,000	3,912,210
Olentangy, OH, School District GO:
Series A, 5.85%, 12/1/2007	400,000	441,832
6.35%, 12/1/2017	150,000	153,018
Olmsted Falls, OH, City School District:
6.85%, 12/15/2011	250,000	283,893
Prerefunded, 7.05%, 12/15/2011 (b)(c)	1,000,000	1,022,110
Sandusky County, County GO, 6.2%, 12/1/2013	500,000	547,400
South Euclid Lyndhurst, OH, School District GO, 6.4%, 12/1/2018	535,000	601,345
Springboro, OH, School District GO, Community City School District, 6.0%, 12/1/2011	500,000	569,605
Springboro, OH, Senior Care Revenue, 6.0%, 11/1/2018	2,000,000	1,974,800
Summit County, OH, Prerefunded, 6.4%, 12/1/2014 (b)(c)	1,000,000	1,121,540
Toledo, OH, Other GO, Macy's Project, Series A, 6.35%, 12/1/2025	1,000,000	1,084,410
Toledo, OH, Water & Sewer Revenue, 4.75%, 11/15/2017	1,000,000	980,790
Trumbull County, OH, County GO, 6.2%, 12/1/2014	500,000	548,155
Tuscarawas Valley, OH, School District GO, 6.6%, 12/1/2015	365,000	418,823
Wayne, OH, School District GO:
6.45%, 12/1/2011	155,000	181,930
6.6%, 12/1/2016	200,000	240,748
Willoughby, OH, Senior Care Revenue, Industrial Development Revenue, Series A, 6.875%, 7/1/2016	2,825,000	2,782,682
Wooster, OH, School District GO, Zero Coupon, 12/1/2013	930,000	522,604
Worthington, OH, School District GO, 6.375%, 12/1/2012	6,210,000	6,455,664
		180,214,984
Oklahoma 1.1%
Oklahoma, Electric Revenue, Grand River Dam Authority, 6.25%, 6/1/2011	32,250,000	37,181,348
Oklahoma, Hospital & Healthcare Revenue, Valley View Hospital Authority:
5.75%, 8/15/2006	2,940,000	2,988,951
6.0%, 8/15/2014	2,695,000	2,636,222
Tulsa, OK, Hospital & Healthcare Revenue, Industrial Development Authority:
Zero Coupon, 12/1/2004 (b)	5,430,000	4,940,648
Zero Coupon, 12/1/2006 (b)	6,430,000	5,318,446
		53,065,615
Oregon 0.6%
Chemeketa, OR, School District GO, 5.5%, 6/1/2015	2,600,000	2,837,536
Oregon, State (GO) Lease, Administrative Services, Series B, 5.375%, 5/1/2015	7,550,000	7,975,292
Oregon, Transportation/Tolls Revenue:
5.75%, 11/15/2015	1,435,000	1,558,855
5.75%, 11/15/2016	3,140,000	3,394,214
Portland, OR, Airport Revenue, Rites - PA 574A, Inverse Floater, 9.599%, 7/1/2010**	2,390,000	2,767,524
Portland, OR, Airport Revenue, Rites - PA 574B, Inverse Floater, 9.587%, 7/1/2011**	2,530,000	2,912,814
Portland, OR, Project Revenue, Rites - PA 574C, Inverse Floater, 9.587%, 7/1/2012**	2,675,000	3,042,545
Portland, OR, Airport Revenue, Rites - PA 574D, Inverse Floater, 9.597%, 7/1/2013**	2,675,000	2,899,433
		27,388,213
Pennsylvania 2.8%
Allegheny County, PA, Airport Revenue, Pittsburgh International, Series A, 5.75%, 1/1/2013 (b)	3,080,000	3,322,273
Allegheny County, PA, Airport Revenue, Rites-PA 567A, Inverse Floater, 9.587%, 1/1/2010**	3,000,000	3,442,410
Allegheny County, PA, Airport Revenue, Rites-PA 567B, Inverse Floater, 9.587%, 1/1/2011**	1,500,000	1,736,400
Allegheny County, PA, Airport Revenue, Rites-PA 567C, Inverse Floater, 9.597%, 1/1/2013**	3,160,000	3,657,100
Allegheny County, PA, Airport Revenue, Rites-PA 567D, Inverse Floater, 9.587%, 1/1/2014**	5,250,000	6,061,230
Allegheny County, PA, Port Authority Revenue:
5.5%, 3/1/2015	2,000,000	2,133,040
5.5%, 3/1/2016	1,000,000	1,058,160
5.5%, 3/1/2017	1,000,000	1,052,360
Berks County, PA, Hospital & Healthcare Revenue, Municipal Authority, Reading Hospital and Medical Center Project, 5.7%, 10/1/2014 (b)	1,000,000	1,102,100
Bucks County, PA, Water and Sewer Authority Revenue, ETM, 6.375%, 12/1/2008	425,000	464,835
Delaware County, PA, Prerefunded, Hospital and Healthcare Revenue, Series B, 6.0%, 11/15/2007 (c)	1,120,000	1,202,869
Delaware County, PA, Senior Care Revenue, Hospital and Healthcare Revenue, Series A, 6.6%, 7/1/2006	1,000,000	1,021,390
Erie County, PA, Industrial Development Revenue, Pollution Control, Series A, 5.3%, 4/1/2012	1,000,000	1,009,440
Erie County, PA, Other GO, Series B, ETM, Zero Coupon, 11/15/2008	1,115,000	831,556
Erie County, PA, State GO, Series B, Zero Coupon, 11/15/2008	3,940,000	2,930,414
Exeter Township, PA, School District GO, Zero Coupon, 5/15/2017	3,700,000	1,668,219
Indiana County, PA, Pollution Control Revenue, Industrial Development Authority, 5.35%, 11/1/2010	1,000,000	1,083,620
Latrobe, PA, Higher Education Revenue, Industrial Development Authority, 5.375%, 5/1/2013	1,000,000	1,007,700
Mckean County, PA, Hospital & Healthcare Revenue, Bradford Hospital Project, 5.95%, 10/1/2008	2,800,000	2,952,992
Montgomery County, PA, Senior Care Revenue, Industrial Development Authority, Retirement-Life Communities, 5.25%, 11/15/2028	4,000,000	3,679,360
New Castle, PA, Hospital & Healthcare Revenue, Area Hospital Authority, Jameson Memorial Hospital, 6.0%, 7/1/2010	845,000	943,654
Pennsylvania, Convention Center Authority, Series A, EMT, 6.0%, 9/1/2019	2,200,000	2,505,734
Pennsylvania, Higher Education Revenue, Ursinus College:
5.85%, 1/1/2017	1,475,000	1,565,300
5.9%, 1/1/2027	3,400,000	3,534,300
Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing Authority, UPMC Health System, Series A, 6.0%, 1/15/2031	7,340,000	7,589,780
Pennsylvania, Sales & Special Tax Revenue, Convention Center Authority: Series A, 6.7%, 9/1/2014	3,750,000	3,971,663
Series A, 6.75%, 9/1/2019	8,775,000	9,242,181
Pennsylvania, Sales & Special Tax Revenue, Intergovernmental Cooperative Authority: 6.75%, 6/15/2013	2,225,000	2,413,235
6.75%, 6/15/2014	2,500,000	2,682,450
6.75%, 6/15/2015	2,250,000	2,385,360
Pennsylvania, State Agency (REV) Lease, Industrial Development Authority, Economic Development:
5.8%, 1/1/2008	4,250,000	4,643,890
5.8%, 7/1/2008	4,875,000	5,359,234
Pennsylvania, State GO, 6.25%, 7/1/2010	1,000,000	1,148,400
Pennsylvania, Transportation/Tolls Revenue, Community Turnpike:
Series T, 5.5%, 12/1/2013	2,000,000	2,194,640
Series S, 5.625%, 6/1/2013	3,000,000	3,281,940
Series S, 5.625%, 6/1/2014	3,750,000	4,093,275
Pennsylvania, Water & Sewer Revenue, 5.25%, 11/1/2014	1,750,000	1,873,025
Philadelphia, PA, Core City (GO) Lease, Municipal Authority, Series D, 6.25%, 7/15/2013	2,500,000	2,572,225
Philadelphia, PA, Core City (REV) Lease, Municipal Authority, Series D, 6.3%, 7/15/2017	2,300,000	2,346,391
Philadelphia, PA, Hospital and Healthcare Revenue, Children's Seashore House, Series A, 7.0%, 8/15/2012	1,000,000	1,004,910
Philadelphia, PA, Industrial Development Revenue, Industrial Development Authority, Series A, 6.5%, 10/1/2027	1,000,000	1,044,420
Philadelphia, PA, Port Authority Revenue, 6.2%, 9/1/2013 (b)	2,000,000	2,088,120
Philadelphia, PA, School District GO: Series A, 5.75%, 2/1/2013	3,915,000	4,286,808
Series A, 6.25%, 9/1/2009	1,000,000	1,137,570
Philadelphia, PA, Water & Sewer Revenue:
5.5%, 6/15/2007 (b)	5,000,000	5,414,600
5.625%, 6/15/2009 (b)	2,000,000	2,187,280
6.25%, 8/1/2010	1,000,000	1,142,530
Pittsburgh, PA, Core City GO, Series A, 5.5%, 9/1/2014	1,500,000	1,635,855
Pittsburgh, PA, Water and Sewer System, ETM, 7.25%, 9/1/2014 (b)	150,000	182,066
Union County, PA, Higher Education Revenue, Higher Education Facilities Authority, 6.2%, 4/1/2007 (b)	1,000,000	1,022,940
Westmoreland County, PA, Hospital & Healthcare Revenue, Industrial Development Authority, 5.375%, 7/1/2011 (b)	7,300,000	7,866,334
Westmoreland County, PA, Project Revenue, Zero Coupon, Zero Coupon, 8/15/2017	6,230,000	2,756,025
		137,533,603
Puerto Rico 0.8%
Puerto Rico, Airport Revenue, American Airlines, Series A, 6.25%, 6/1/2026	360,000	297,076
Puerto Rico, Electric Revenue, Power Authority, Series S, 6.125%, 7/1/2009	2,000,000	2,286,200
Puerto Rico, Sales & Special Tax Revenue, Highway and Transportation Authority, 5.5%, 7/1/2013 (b)	1,000,000	1,110,010
Puerto Rico, State Agency (GO) Lease, Municipal Finance Agency, Series A, 6.0%, 7/1/2014	250,000	274,595
Puerto Rico, State GO:
5.5%, 7/1/2013 (b)(d)	5,000,000	5,450,750
5.5%, 7/1/2014 (b)(d)	5,000,000	5,445,150
Puerto Rico, State GO, Rites - PA 620A, Inverse Floater, 10.53%, 7/1/2013**	2,500,000	3,271,525
Puerto Rico, State GO, Rites - PA 944RA, Inverse Floater, 9.353%, 7/1/2019**	3,720,000	4,403,214
Puerto Rico, State GO, Rites - PA 943R, Inverse Floater, 9.553%, 7/1/2019**	11,325,000	13,404,950
Puerto Rico, State GO, Rites - PA 994RC, Inverse Floater, 9.353%, 7/1/2021**	3,000,000	3,525,180
Puerto Rico, State GO, Public Building Authority, Series A, 6.25%, 7/1/2013 (b)	1,000,000	1,176,930
		40,645,580
Rhode Island 1.1%
Rhode Island, Economic Protection Corp., Special Obligation:
Series B, ETM, 5.8%, 8/1/2010 (b)	6,200,000	6,964,522
Series B, ETM, 5.8%, 8/1/2011 (b)	4,525,000	5,100,942
Series B, ETM, 5.8%, 8/1/2012 (b)	2,500,000	2,821,450
Series B, ETM, 5.8%, 8/1/2013 (b)	7,340,000	8,280,254
Rhode Island, Project Revenue, Convention Center Authority: Series B, 5.0%, 5/15/2010 (b)	5,000,000	5,287,700
Series B, 5.25%, 5/15/2015 (b)	22,000,000	23,297,780
Rhode Island, Water & Sewer Revenue, Clean Water Protection Agency, Revolving Fund, Series A, 5.4%, 10/1/2015 (b)	2,000,000	2,142,160
		53,894,808
South Carolina 0.7%
Charleston County, SC, County (GO) Lease:
Series B, 6.875%, 6/1/2014	240,000	266,194
Series B, 7.0%, 6/1/2019	115,000	127,570
Charleston County, SC, Water & Sewer Revenue:
5.25%, 1/1/2014	1,445,000	1,518,276
5.25%, 1/1/2018	1,000,000	1,022,350
Grand Strand, SC, Water & Sewer Revenue, Water Works and Water Systems, 6.375%, 6/1/2012	5,000,000	5,821,100
Piedmont, SC, Electric Revenue, Municipal Power Agency:
ETM, 5.5%, 1/1/2008 (b)	840,000	912,400
5.5%, 1/1/2012	2,810,000	3,017,996
ETM, 5.5%, 1/1/2012 (b)	2,190,000	2,405,977
6.75%, 1/1/2019	3,525,000	4,198,557
Series A, ETM, 6.5%, 1/1/2016 (b)	430,000	512,259
South Carolina, Electric Revenue, Public Services Authority, Series A, 6.25%, 1/1/2022	7,000,000	7,564,900
South Carolina, Hospital & Healthcare Revenue, Jobs Economic Development Authority, Palmetto Health Alliance, Series A, 7.375%, 12/15/2021	4,500,000	4,897,080
		32,264,659
Tennessee 1.3%
Knox County, TN, Hospital & Healthcare Revenue, Rites-PA 750, Inverse Floater, 9.705%, 1/1/2012**	8,940,000	10,606,327
Knox County, TN, Hospital & Healthcare Revenue, Sanders Alliance: 5.75%, 1/1/2011 (b)	15,405,000	16,833,506
5.75%, 1/1/2014	2,000,000	2,198,660
6.25%, 1/1/2013 (b)	4,000,000	4,543,760
7.25%, 1/1/2009	3,750,000	4,428,188
Shelby County, TN, County GO: Zero Coupon, 8/1/2012	3,410,000	2,072,939
Zero Coupon, 8/1/2013	3,440,000	1,970,982
Zero Coupon, 8/1/2014	4,965,000	2,678,816
Tennessee, Single Family Housing Revenue, Housing Development Agency Mortgage Financial:
Series A, 7.05%, 7/1/2020	17,770,000	18,505,321
Series A, 7.125%, 7/1/2026	335,000	349,057
		64,187,556
Texas 10.2%
Abilene, TX, Senior Care Revenue, Health Facilities Development, Series A, 5.875%, 11/15/2018	3,250,000	2,893,110
Austin, TX, Electric Revenue, Utility Systems:
Series A, Zero Coupon, 11/15/2008 (b)	3,460,000	2,568,150
6.0%, 11/15/2013	9,500,000	10,773,570
Austin, TX, Project Revenue, Bergstrom Landhost Enterprises, Inc. Airport Hotel Project, Series A, 6.75%, 4/1/2027	21,785,000	19,849,403
Austin, TX, School District GO, Independent School District, 5.0%, 8/1/2015	2,000,000	2,067,020
Austin, TX, Water & Sewer Revenue, Utility Systems, Zero Coupon,11/15/2012	13,520,000	8,056,838
Bexar County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Baptist Health System:
Series A, 6.0%, 11/15/2011 (b)	2,000,000	2,237,760
Series A, 6.0%, 11/15/2012 (b)	3,000,000	3,367,890
Boerne, TX, School District (GO) Lease, Independent School District:
Zero Coupon, 2/1/2014	2,785,000	1,526,932
Zero Coupon, 2/1/2016	3,285,000	1,591,583
Brownsville, TX, Electric Revenue, Utility Systems, 6.25%, 9/1/2010 (b)	4,085,000	4,655,838
Cedar Hill, TX, School District GO:
Zero Coupon, 8/15/2009	1,500,000	1,061,220
Zero Coupon, 8/15/2010	3,130,000	2,090,245
Dallas, TX, Single Family Housing Revenue, Zero Coupon, 10/1/2016	3,545,000	761,608
Dallas-Fort Worth, TX, Airport Revenue:
Series A, 7.375%, 11/1/2008 (b)	4,500,000	4,993,740
Series A, 7.375%, 11/1/2009 (b)	4,500,000	4,993,740
Series A, 7.375%, 11/1/2010 (b)	3,500,000	3,884,020
Series A, 7.75%, 11/1/2003 (b)	1,000,000	1,094,400
Series A, 7.8%, 11/1/2005 (b)	2,000,000	2,235,380
Series A, 7.8%, 11/1/2006 (b)	2,025,000	2,267,008
Series A, 7.8%, 11/1/2007 (b)	2,390,000	2,675,629
EL Paso, TX, School District GO, Zero Coupon, 8/15/2011	3,600,000	2,226,276
Fort Bend, TX, School District GO, 5.0%, 8/15/2021	5,425,000	5,327,893
Galveston County, TX, County GO: 5.5%, 2/1/2013	1,555,000	1,654,442
5.5%, 2/1/2014	1,675,000	1,771,849
Galveston County, TX, County GO, Justice Center and Public Safety Building:
5.5%, 2/1/2013	2,075,000	2,218,901
5.5%, 2/1/2014	2,235,000	2,376,207
Georgetown, TX, Higher Education Revenue, Southwestern University Project, 6.25%, 2/15/2009	840,000	893,046
Grapevine-Colleyville, TX, School District GO:
Zero Coupon, 8/15/2010	2,160,000	1,456,099
Zero Coupon, 8/15/2013	1,000,000	567,340
Harris County, TX, County GO:
Series A, Zero Coupon, 8/15/2005 (b)	4,025,000	3,532,582
Series A, Zero Coupon, 8/15/2006	4,010,000	3,352,480
Harris County, TX, Hospital & Healthcare Revenue, 6.25%, 5/15/2008 (b)	2,785,000	3,095,806
Harris County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Medical Center Project:
6.25%, 5/15/2009 (b)	2,965,000	3,309,474
6.25%, 5/15/2010 (b)	3,000,000	3,373,740
Harris County, TX, School District GO, Series A, Zero Coupon, 8/15/2004	2,050,000	1,882,105
Harris County, TX, Transportation/Tolls Revenue: 6.0%, 8/1/2010	18,415,000	20,708,957
6.0%, 8/1/2012	9,605,000	10,853,650
Harris County, TX, Transportation/Tolls Revenue, Series A, Zero Coupon, 8/15/2004	4,050,000	3,718,305
Houston, TX, Series A, 5.0%, 2/15/2019	5,000,000	4,951,250
Houston, TX, Airport Revenue:
Series B, 5.25%, 7/1/2011	16,020,000	16,560,675
Series A, 5.875%, 7/1/2013	6,000,000	6,403,140
Series A, 5.875%, 7/1/2015	9,505,000	10,068,456
Series A, 6.0%, 7/1/2014	5,030,000	5,361,427
Houston, TX, Airport Revenue, Continental Airline, Series B, 6.125%, 7/15/2027	3,100,000	2,185,159
Houston, TX, Higher Education Revenue, University of St. Thomas Project, 7.25%, 12/1/2007	1,445,000	1,504,895
Houston, TX, School District GO:
Series A, Zero Coupon, 2/15/2010	8,500,000	5,781,870
Series A, Zero Coupon, 2/15/2011	3,750,000	2,412,038
Series A, Zero Coupon, 2/15/2015	26,000,000	13,079,300
Houston, TX, Water & Sewer Revenue, Series A, 5.5%, 12/1/2016	10,000,000	10,490,100
Houston, TX, Water & Sewer Revenue:
Series C, Zero Coupon, 12/1/2005 (b)	15,000,000	13,029,300
Series C, Zero Coupon, 12/1/2006 (b)	14,575,000	12,049,444
Series C, Zero Coupon, 12/1/2007 (b)	3,400,000	2,663,288
Series C, Zero Coupon, 12/1/2008 (b)	8,000,000	5,926,640
Series C, Zero Coupon, 12/1/2009 (b)	14,750,000	10,363,055
Series C, Zero Coupon, 12/1/2010 (b)	5,000,000	3,328,900
Series C, Zero Coupon, 12/1/2012 (b)	4,350,000	2,586,815
Hurst Euless Bedford, TX, School District GO, Zero Coupon, 8/15/2009	4,925,000	3,505,418
Laredo, TX, School District GO, Independent School District, 6.0%, 8/1/2011	2,465,000	2,783,355
Lubbock, TX, Health Facilities Development Corp., Methodist Hospital:
Series B, ETM, 5.6%, 12/1/2007 (b)	2,415,000	2,660,654
Series B, ETM, 5.625%, 12/1/2008	4,400,000	4,862,616
Series B, ETM, 5.625%, 12/1/2009 (b)	4,640,000	5,157,035
Montgomery County, TX, County (GO) Lease: Zero Coupon, 9/1/2003	2,675,000	2,555,374
Zero Coupon, 9/1/2004	2,680,000	2,457,051
Montgomery County, TX, County GO, Zero Coupon, 9/1/2005	2,790,000	2,444,849
Montgomery County, TX, ETM:
EMT, Zero Coupon, 9/1/2004 (b)	795,000	731,042
EMT, Zero Coupon, 9/1/2005 (b)	685,000	602,478
Northeast, TX, Hospital & Healthcare Revenue, Northeast Medical Center, 6.0%, 5/15/2010 (b)	2,180,000	2,410,295
Northside, TX, School District GO, 5.5%, 2/15/2014	2,685,000	2,855,202
Northwest, TX, School District GO, Zero Coupon, 8/15/2010 (b)	3,690,000	2,489,643
San Antonio, TX, Airport Revenue, EMT, 7.0%, 7/1/2002	1,695,000	1,742,426
San Antonio, TX, Electric Revenue, Series A, 5.25%, 2/1/2012	3,000,000	3,144,870
San Antonio, TX, Electric Revenue:
Series A, Zero Coupon, 2/1/2005	9,500,000	8,513,330
Series B, Zero Coupon, 2/1/2006 (b)	17,900,000	15,337,615
San Antonio, TX, Electric Revenue, Series B, ETM, Zero Coupon, 2/1/2009	13,000,000	11,649,820
San Antonio, TX, Electric Revenue, Series B, ETM, Zero Coupon, 2/1/2009	4,400,000	3,234,176
Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp.:
6.0%, 5/15/2011 (b)	4,615,000	5,105,898
6.0%, 5/15/2021 (b)	6,235,000	6,934,442
Texas, Electric Revenue, Municipal Power Agency, 6.1%, 9/1/2007 (b)	9,250,000	10,293,030
Texas, Electric Revenue, Municipal Power Agency: Zero Coupon, 9/1/2016 (b)	18,675,000	8,794,805
Zero Coupon, 9/1/2017 (b)	6,000,000	2,648,160
Texas, Municipal Power Agency, ETM, 6.1%, 9/1/2009 (b)	4,435,000	5,055,013
Texas, Multi Family Housing Revenue, Department Housing & Community Affairs, Series A, 6.4%, 1/1/2027	3,350,000	3,467,183
Texas, Other GO, General Obligation, 7.0%, 9/15/2012	8,596,478	8,789,812
Texas, Port Authority Revenue, Zero Coupon, 1/1/2013	5,600,000	3,327,856
Texas, School District (GO) Lease, Cypress-Fairbanks Texas Independent School District, Series A, Zero Coupon, 2/15/2014	6,000,000	3,287,220
Texas, School District GO, Cypress-Fairbanks Texas Independent School District:
Series A, Zero Coupon, 2/15/2012	5,750,000	3,550,108
Series A, Zero Coupon, 2/15/2013	8,840,000	5,143,819
Texas, Single Family Housing Revenue, Housing Agency Mortgage Revenue, Series A, 7.15%, 9/1/2012	140,000	143,007
Texas, State Agency (GO) Lease, Public Finance Authority, Series B, 6.25%, 2/1/2008	5,190,000	5,805,067
Texas, State GO, Zero Coupon, 4/1/2005	7,540,000	6,726,886
Texas, State GO, ATM-Veterans Land, 6.4%, 12/1/2024	8,550,000	8,804,363
Texas, Water & Sewer Revenue, Water Development Board Revenue:
Series B, 5.25%, 7/15/2017	5,000,000	5,107,450
Series A, 5.625%, 7/15/2011	3,630,000	3,974,741
Series A, 5.625%, 7/15/2015	1,000,000	1,068,200
Titus County, TX, Water & Sewer Revenue, Hospital District Revenue, 6.125%, 8/15/2013	6,700,000	6,442,452
Travis County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp.:
Series A, 5.75%, 11/15/2011	3,440,000	3,704,777
Series A, 6.25%, 11/15/2016	13,770,000	15,023,896
Travis County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Ascension Health, Series A, 6.25%, 11/15/2015	2,780,000	3,048,520
Travis County, TX, Single Family Housing Revenue, Housing Financial Corp. Residential Mortgage, Series A, Inverse Floater, 7.0%, 12/1/2011**	205,000	211,515
Waxahachie, TX, School District GO, Independent School District:
Zero Coupon, 8/15/2012	4,120,000	2,481,763
Zero Coupon, 8/15/2013	2,060,000	1,168,720
		495,955,940
Utah 0.8%
Provo, UT, Electric Revenue, Series A, ETM, 10.375%, 9/15/2015 (b)	1,690,000	2,375,903
Salt Lake City, UT, Hospital & Healthcare Revenue, IHC Hospitals, Inc., 6.15%, 2/15/2012	1,500,000	1,674,000
Salt Lake City, UT, State GO, 5.75%, 6/15/2014	4,760,000	5,204,489
Utah, Electric Revenue, Associated Municipal Power System: Zero Coupon, 7/1/2004 (b)	5,895,000	5,434,483
Zero Coupon, 7/1/2005 (b)	5,900,000	5,202,384
Zero Coupon, 7/1/2006 (b)	5,895,000	4,953,627
Zero Coupon, 7/1/2007 (b)	3,750,000	2,989,313
Utah, Electric Revenue, Intermountain Power Agency: Series A, ETM, 5.0%, 7/1/2012 (b)	630,000	630,328
Series A, 5.0%, 7/1/2012 (b)	370,000	371,188
Series A, 6.5%, 7/1/2008 (b)	1,470,000	1,668,582
Series A, ETM, 6.5%, 7/1/2008 (b)	2,530,000	2,909,525
Utah, Electric Revenue, Intermountain Power Agency:
Series A, Zero Coupon, 7/1/2002 (b)	610,000	602,369
Series A, ETM, Zero Coupon, 7/1/2003 (b)	630,000	604,995
Series A, Zero Coupon, 7/1/2003 (b)	370,000	355,263
Series A, Zero Coupon, 7/1/2004 (b)	635,000	585,394
Series A, ETM, Zero Coupon, 7/1/2004 (b)	1,095,000	1,011,002
West Valley City, UT, Excise Tax Revenue, ETM, 10.625%, 7/1/2004	430,000	483,019
		37,055,864
Virgin Islands 0.0%
Virgin Islands, Public Financial Authority, Series A, Prerefunded, 7.25%, 10/1/2018 (c)	1,000,000	1,063,510
Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority, Series A, 6.5%, 10/1/2024	900,000	974,709
		2,038,219
Virginia 0.8%
Fairfax County, VA, Hospital & Healthcare Revenue, Economic Development Authority, Greenspring Retirement Community, Series A, 7.25%, 10/1/2019	2,000,000	2,091,240
Fairfax County, VA, Hospital & Healthcare Revenue, Economic Development Finance Authority, Series A, 7.5%, 10/1/2029	7,100,000	7,450,740
Roanoke, VA, Hospital & Healthcare Revenue, Industrial Development Authority, Roanoke Memorial Hospital, Series B, 6.125%, 7/1/2017 (b)	5,500,000	6,276,765
Virginia, Resource Recovery Revenue, Public Service Authority Refunding, Series A, 5.25%, 7/1/2010 (c)	7,380,000	7,958,297
Virginia, School District GO, Series B, 5.0%, 8/1/2017	6,010,000	6,096,484
Virginia Beach, VA, Hospital & Healthcare Revenue, Development Authority Hospital Facility First Mortgage, 5.125%, 2/15/2018 (b)	3,000,000	3,076,380
Winchester, VA, Hospital & Healthcare Revenue, Industrial Development Authority, 5.5%, 1/1/2015 (b)	5,700,000	6,167,799
		39,117,705
Washington 3.1%
Chelan, WA, Electric Revenue, Public Utilities, Colombia River Rock, Zero Coupon, 6/1/2014 (b)	12,685,000	6,849,519
Clark and Skamania County, WA, School District GO, 6.5%, 12/1/2013 (b)	4,430,000	5,145,799
Clark County, WA, Electric Revenue, Public Utilities No. 001 Generating Systems, 6.0%, 1/1/2008	2,200,000	2,448,710
Clark County, WA, School District GO, No. 98 Hockinson, 6.125%, 12/1/2011 (b)	3,190,000	3,604,285
King and Snohomish Counties, WA, School District GO, No. 417 Northshore, 5.6%, 12/1/2010 (b)	1,650,000	1,804,209
King County, WA, County GO, Series B, 6.625%, 12/1/2015 (b)	9,845,000	11,281,878
Port Seattle, WA, Airport Revenue, AMT, Series B, 6.0%, 2/1/2014 (b)	4,000,000	4,455,840
Seattle, WA, Airport Revenue, Series B, 6.0%, 2/1/2012	1,765,000	1,961,497
Skagit County, WA, School District GO, District No. 100 Burlington Edison, 5.625%, 12/1/2015	4,925,000	5,276,793
Snohomish County, WA, School District GO, 5.75%, 12/1/2011 (b)	3,485,000	3,875,808
Snohomish County, WA, School District GO, School District No. 006 Mukilteo, 6.5%, 12/1/2007 (b)	3,325,000	3,778,962
Spokane County, WA, School District GO, Series B, Zero Coupon, 12/1/2014	2,500,000	1,315,400
Washington, Electric Revenue, Series A, 5.5%, 7/1/2017	11,200,000	11,697,616
Washington, Electric Revenue, Public Power Supply System:
Series A, 5.7%, 7/1/2008 (b)	5,000,000	5,449,950
Series A, 6.0%, 7/1/2007 (b)	7,000,000	7,729,400
Washington, Electric Revenue, Public Power Supply Systems:
Zero Coupon, 7/1/2007 (b)	4,375,000	3,485,606
Series A, 7.25%, 7/1/2006	7,000,000	7,989,940
Series B, 7.25%, 7/1/2009	12,350,000	14,312,909
Washington, Electric Revenue, Public Power Supply Systems: Series A, Zero Coupon, 7/1/2004 (b)	3,625,000	3,340,111
Series A, Zero Coupon, 7/1/2005 (b)	4,125,000	3,634,703
Series B, Zero Coupon, 7/1/2006 (b)	5,555,000	4,665,811
Series A, Zero Coupon, 7/1/2006 (b)	1,380,000	1,158,579
ETM, Zero Coupon, 7/1/2007 (b)	4,195,000	3,355,035
Series A, Zero Coupon, 7/1/2010 (b)	5,860,000	3,972,260
Series A, Zero Coupon, 7/1/2011 (b)	4,200,000	2,715,888
Washington, Hospital & Healthcare Revenue, Health Care Facilities Authority:
5.75%, 11/1/2007 (b)	7,350,000	8,019,732
5.8%, 11/1/2008 (b)	4,865,000	5,324,061
5.8%, 11/1/2009 (b)	4,595,000	5,029,733
5.8%, 11/1/2010 (b)	2,100,000	2,304,330
Washington, State GO: Series 5, Zero Coupon, 8/1/2010 (b)	2,625,000	1,774,185
Series 5, Zero Coupon, 1/1/2017 (b)	4,535,000	2,072,088
		149,830,637
West Virginia 0.1%
West Virginia, Hospital & Healthcare Revenue, Hospital Finance Authority, Charleston Area Medical Center, Series A, 6.75%, 9/1/2030	3,000,000	3,242,400
West Virginia, State GO, Series A, Zero Coupon, 11/1/2024	5,000,000	1,441,800
		4,684,200
Wisconsin 2.0%
Green Bay, WI, Industrial Development Revenue, Weyerhaeuser Company Project, Series A, 9.0%, 9/1/2006	1,700,000	1,701,258
Milwaukee, WI, County GO, Series A, Zero Coupon, 12/1/2011	5,695,000	3,588,818
Wisconsin, Series A, ETM, Zero Coupon, 12/1/2011	220,000	139,590
Wisconsin, Hospital & Healthcare Revenue, Health & Educational Facilities Authority:
Series B, 5.625%, 2/15/2029	9,725,000	8,910,045
5.75%, 11/15/2006 (b)	2,000,000	2,179,900
6.0%, 11/15/2008 (b)	4,085,000	4,520,706
Wisconsin, Hospital & Healthcare Revenue, Health and Education Facilities Authority:
5.75%, 11/15/2007 (b)	1,500,000	1,639,155
6.0%, 11/15/2009 (b)	4,330,000	4,798,506
6.1%, 8/15/2008 (b)	4,580,000	5,077,296
Series B, 6.25%, 1/1/2022 (b)	5,285,000	6,186,357
Series C, 6.25%, 1/1/2022 (b)	9,230,000	10,662,035
Series AA, 6.4%, 6/1/2008 (b)	2,335,000	2,619,730
Series AA, 6.45%, 6/1/2009 (b)	2,485,000	2,809,069
Series AA, 6.45%, 6/1/2010 (b)	2,650,000	3,021,610
Series AA, 6.5%, 6/1/2011 (b)	2,820,000	3,269,959
Series AA, 6.5%, 6/1/2012 (b)	3,000,000	3,496,440
Aurora Health Care, Inc., Series A, 5.6%, 2/15/2029	21,800,000	20,223,205
Wisconsin, State Agency (GO) Lease, Health and Education Facilities Authority, 6.1%, 8/15/2009	2,000,000	2,223,520
Wisconsin, State GO, Series D, 5.75%, 5/1/2015	8,445,000	9,436,950
		96,504,149
Wyoming 0.1%
Wyoming, OH, Single Family Housing Revenue, Community Development Authority, Series B, 8.125%, 6/1/2021	155,000	156,121
Wyoming, OH, Single Family Housing Revenue, Community Development Authority Housing, Series 2, 6.35%, 6/1/2029	3,030,000	3,171,804
		3,327,925
Total Long-Term Municipal Investments (Cost $4,472,938,202)		4,837,338,117
Short-Term Municipal Investments 0.2%
Louisiana 0.1%
East Baton Rouge Parish, LA, Industrial Development Revenue, Pollution Control Revenue, Exxon Project, 3.2%, 3/1/2022*	4,700,000	4,700,000
New York 0.0%
New York, NY, Series B2, 3.25%, 8/15/2019*	1,000,000	1,000,000
New York, NY, Core City GO, Series B, 3.35%, 8/15/2005*	1,300,000	1,300,000
		2,300,000
Texas 0.0%
North Central, TX, Hospital & Healthcare Revenue, Presbyterian Medical Center, Series D, 4.35%, 12/1/2015*	2,100,000	2,100,000
Total Short-Term Municipal Investments (Cost $9,100,000)		9,100,000
Total Investment Portfolio - 100.0% (Cost $4,482,038,202) (a)		4,846,438,117

* Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the U.S. Treasury bill rate. Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of November 30, 2001.
** Inverse floating rate notes are instruments whose yields may change based on the change in the relationship between long-term and short-term interest rates and which exhibit added interest rate sensitivity compared to other bonds with a similar maturity. These securities are shown at their rates as of November 30, 2001.
(a) The cost for federal income tax purposes was $4,478,211,094. At November 30, 2001, net unrealized appreciation for all securities based on tax cost was $368,227,023. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $381,473,021 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $13,245,998.
(b) Bond is insured by one of these companies: AMBAC, Capital Guaranty, FGIC, FSA or MBIA/BIG.
(c) Prerefunded: Bonds which are prerefunded are collateralized by U.S. 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.
(d) When-issued or forward delivery securities.
(e) At November 30, 2001, these securities, in part or in whole, have been segregated to cover initial margin requirements for open futures contracts..
AMT: Subject to alternative minimum tax
ETM: Bonds bearing the description ETM (escrowed to maturity) are collateralized by U.S. Treasury securities which are held in escrow by a trustee and used to pay principal and interest on bonds so designated.
At November 30, 2001, open futures contracts sold short were as follows:

Futures	Expirations	Contracts	Aggregate Face Value ($)	Value ($)
10 year Swap	12/17/2001	300	31,188,825	31,228,125
10 year CBT U.S. Treasury Note	12/19/2001	5,010	546,067,664	542,332,500
Total unrealized appreciation on open futures contracts sold short				3,695,864

At November 30, 2001, open forward commitments were as follows:

Notional Amount ($)	Description	Net Unrealized Depreciation ($)
50,000,000	MMD Lock with J.P. Morgan Chase & Co., terminating January 16, 2002, to receive the spread between a fixed rate of 4.85% and the variable MMD rate at termination date	(948,750)
25,000,000	MMD Lock with J.P. Morgan Chase & Co., terminating January 8, 2002, to receive the spread between a fixed rate of 4.95% and the variable MMD rate at termination date	(158,125)
25,000,000	MMD Lock with J.P. Morgan Chase & Co., terminating January 11, 2002, to receive the spread between a fixed rate of 4.97% and the variable MMD rate at termination date	(94,875)
25,000,000	MMD Lock with J.P. Morgan Chase & Co., terminating February 19, 2002, to receive the spread between a fixed rate of 5.0% and the variable MMD rate at termination date	(94,000)
10,000,000	MMD Lock with Lehman Brothers terminating February 6, 2002, to receive the spread between a fixed rate of 4.76% and the variable MMD rate at termination date	(332,800)
Total unrealized depreciation		(1,628,550)

The accompanying notes are an integral part of the financial statements.

Financial Statements

Statement of Assets and Liabilities as of November 30, 2001 (Unaudited)
Assets
Investments in securities, at value (cost $4,482,038,202)	$ 4,846,438,117
Cash	1,702,725
Receivable for investments sold	3,003,909
Interest receivable	71,160,678
Receivable for Fund shares sold	935,328
Other receivable	384,000
Total assets	4,923,624,757
Liabilities
Payable for investments purchased	8,331,530
Payable for when-issued and forward delivery securities	33,110,845
Dividends payable	2,520,758
Payable for Fund shares redeemed	2,219,581
Payable for daily variation margin on open futures contracts	1,002,791
Unrealized depreciation on open forward commitments	1,628,550
Accrued management fee	1,749,713
Other accrued expenses and payables	1,195,112
Total liabilities	51,758,880
Net assets, at value	$ 4,871,865,877
Net Assets
Net assets consist of: Net unrealized appreciation (depreciation) on:
Investments	364,399,915
Futures	3,695,864
Other receivable	384,000
Forward commitments	(1,628,550)
Accumulated net realized gain (loss)	(10,433,412)
Paid-in capital	4,515,448,060
Net assets, at value	$ 4,871,865,877

The accompanying notes are an integral part of the financial statements.

Statement of Assets and Liabilities as of November 30, 2001 (Unaudited) (continued)
Net Asset Value
Class AARP Net Asset Value, offering and redemption price per share ($1,489,831,361 / 164,423,817 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$ 9.06
Class S Net Asset Value, offering and redemption price per share ($822,842,022 / 90,800,068 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$ 9.06
Class A Net Asset Value and redemption price per share ($2,478,614,676 / 273,628,591 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$ 9.06
Maximum offering price per share (100 / 95.5 of $9.06)	$ 9.49
Class B Net Asset Value, offering and redemption price per share (subject to contingent deferred sales charge) ($68,657,886 / 7,578,784 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$ 9.06
Class C Net Asset Value, offering and redemption price per share (subject to contingent deferred sales charge) ($11,919,932 / 1,315,949 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$ 9.06

The accompanying notes are an integral part of the financial statements.

Statement of Operations for the six months ended November 30, 2001 (Unaudited)
Investment Income
Income: Interest	$ 131,768,460
Expenses: Management fee	9,884,760
Administrative fee	2,981,423
Distribution services fees	3,385,917
Trustees' fees and expenses	26,112
Other	661,473
Total expenses, before expense reductions	16,939,685
Expense reductions	(88,731)
Total expenses, after expense reductions	16,850,954
Net investment income	114,917,506
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) from investments:	33,360,377
Net realized appreciation (depreciation) during the period on: Investments	10,389,084
Futures	3,695,864
Other receivable	(696,000)
Forward commitments	(1,628,550)
	11,760,398
Net gain (loss) on investment transactions	$ 45,120,775
Net increase (decrease) in net assets resulting from operations	$ 160,038,281

The accompanying notes are an integral part of the financial statements.

Statements of Changes in Net Assets
Increase (Decrease) in Net Assets	Six Months Ended November 30, 2001 (Unaudited)	Year Ended May 31, 2001
Operations: Net investment income	$ 114,917,506	$ 98,498,403
Net realized gain (loss) on investment transactions	33,360,377	(2,722,961)
Net unrealized appreciation (depreciation) on investment transactions during the period	11,760,398	89,115,626
Net increase (decrease) in net assets resulting from operations	160,038,281	184,891,068
Distributions to shareholders from: Net investment income: Class AARP	(36,317,575)	(60,397,210)
Class S	(19,874,568)	(38,101,193)
Class A	(55,682,331)	-
Class B	(1,318,061)	-
Class C	(223,967)	-
Fund share transactions: Proceeds from shares sold	459,601,488	327,300,576
Net assets acquired in tax-free reorganizations	2,584,208,162	1,541,517,511
Reinvestment of distributions	67,925,126	55,546,659
Cost of shares redeemed	(570,637,200)	(391,036,882)
Net increase (decrease) in net assets from Fund share transactions	2,541,097,576	1,533,327,864
Increase (decrease) in net assets	2,587,719,355	1,619,720,529
Net assets at beginning of period	2,284,146,522	664,425,993
Net assets at end of period	$ 4,871,865,877	$ 2,284,146,522

The accompanying notes are an integral part of the financial statements.

Financial Highlights

Class A

	2001a
Selected Per Share Data
Net asset value, beginning of period	$ 9.00
Income (loss) from investment operations: Net investment income	.19
Net realized and unrealized gain (loss) on investment transactions	.06
Total from investment operations	.25
Less distributions from: Net investment income	(.19)
Net asset value, end of period	$ 9.06
Total Return (%)b	2.90**
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)	2,479
Ratio of expenses (%)	.79*
Ratio of net investment income (%)	4.72*
Portfolio turnover rate (%)	14*

^a For the period from June 11, 2001 (commencement of sales of Class A shares) to November 30, 2001 (Unaudited).
^b Total return does not reflect the effect of any sales charges.
^* Annualized
^** Not annualized

Class B

	2001a
Selected Per Share Data
Net asset value, beginning of period	$ 9.00
Income (loss) from investment operations: Net investment income	.16
Net realized and unrealized gain (loss) on investment transactions	.06
Total from investment operations	.22
Less distributions from: Net investment income	(.16)
Net asset value, end of period	$ 9.06
Total Return (%)b	2.53**
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)	69
Ratio of expenses (%)	1.56*
Ratio of net investment income (%)	3.95*
Portfolio turnover rate (%)	14*

^a For the period from June 11, 2001 (commencement of sales of Class B shares) to November 30, 2001 (Unaudited).
^b Total return does not reflect the effect of any sales charges.
^* Annualized
^** Not annualized

Class C

	2001a
Selected Per Share Data
Net asset value, beginning of period	$ 9.00
Income (loss) from investment operations: Net investment income	.16
Net realized and unrealized gain (loss) on investment transactions	.06
Total from investment operations	.22
Less distributions from: Net investment income	(.16)
Net asset value, end of period	$ 9.06
Total Return (%)b	2.52**
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)	12
Ratio of expenses (%)	1.59*
Ratio of net investment income (%)	3.92*
Portfolio turnover rate (%)	14*

^a For the period from June 11, 2001 (commencement of sales of Class C shares) to November 30, 2001 (Unaudited).
^b Total return does not reflect the effect of any sales charges.
^* Annualized
^** Not annualized

Notes to Financial Statements

A. Significant Accounting Policies

Scudder Managed Municipal Bonds (the "Fund") is a diversified series of Scudder Municipal Trust (the "Trust") which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers multiple classes of shares which provide investors with different purchase options. On June 11, 2001 the Fund commenced offering Class A, B and C shares. These classes of shares provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares are offered without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered without an initial sales charge but are subject to higher ongoing expenses than Class A and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares do not convert into another class. Shares of Class AARP are designed for members of AARP. Class AARP and S shares are not subject to initial or contingent deferred sales charges. Class S shares of the Fund are generally not available to new investors. Certain detailed information for the Class A, B, C shares is provided separately and is available upon request.

Investment income, realized and unrealized gains and losses and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution services fees, administrative fees and certain other class-specific expenses. Differences in class expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.

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.

Security Valuation. 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. Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost.

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.

Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date).

Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary an amount ("initial margin") equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Fund dependent upon the daily fluctuations in the value of the underlying security and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize a gain or loss equal to the difference between the value of the futures contract to sell and the futures contract to buy. Futures contracts are valued at the most recent settlement price.

Certain risks may arise upon entering into futures contracts, including the risk that an illiquid secondary market will limit the Fund's ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the securities or currencies hedged. When utilizing futures contracts to hedge, the Fund gives up the opportunity to profit from favorable price movements in the hedged positions during the term of the contract.

Forward Commitment Agreements. In order to reduce the uncertainty of municipal credit risk on a specific bond and original issue discount risk, the Fund has entered into MMD Forward Commitment agreements with counterparties to effectively mimic the return on a hypothetical high grade municipal bond.

The Fund bears the credit risk that the counterparty will not perform under the contract. The Fund also bears the risk of limited liquidity prior to the expiration. MMD Forward Commitments are valued daily with dealer supplied quotations and the change in value is recorded by the Fund as unrealized gain or loss on forward commitments.

When-Issued/Forward Delivery Securities. The Fund may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations. No interest accrues to the Fund until payment takes place. At the time the Fund enters into this type of transaction it is required to segregate cash or other liquid assets at least equal to the amount of the commitment.

Federal Income Taxes. 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.

At May 31, 2001, the Fund had a net tax basis capital loss carryforward of approximately $4,839,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until May 31, 2007 ($911,000), May 31, 2008 ($3,647,000) and May 31, 2009 ($281,000), the respective expiration dates, whichever occurs first, subject to certain limitations imposed by Sections 382-384 of the Internal Revenue Code.

In addition, the Fund inherited approximately $3,878,000 of capital losses from its merger (see Note F) with AARP Insured Tax Free General Bond Fund, which may be applied against any realized net taxable capital gains in future years or until May 31, 2008, the expiration date, whichever occurs first, subject to certain limitations imposed by Sections 382-384 of the Internal Revenue Code.

In addition, the Fund inherited approximately $541,000 of capital losses from its merger (see Note F) with Scudder Ohio Tax Free Fund, which may be applied against any realized net taxable capital gains in future years or until May 31, 2007, the expiration date, whichever occurs first, subject to certain limitations imposed by Sections 382-384 of the Internal Revenue Code.

In addition, the Fund inherited approximately $57,317,000 of capital losses from its merger (see Note F) with Kemper Ohio Tax Free Fund and Kemper Municipal Bond Fund, which may be applied against any realized net taxable capital gains in future years or until May 31, 2007, the expiration date, whichever occurs first, subject to certain limitations imposed by Sections 382-384 of the Internal Revenue Code.

From November 1, 2000 through May 31, 2001, the Fund incurred approximately $8,479,000 of net realized capital losses. As permitted by tax regulations, the Fund intends to elect to defer these losses and treat them as arising in the fiscal year ending May 31, 2002.

Distribution of Income and Gains. All of the net investment income of the Fund is declared as a daily dividend and is distributed to shareholders 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.

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. These differences primarily related to investments in futures contracts and securities sold at a loss. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.

Other. Investment transactions are accounted for on the trade date. Interest income is recorded on an 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. Other expenses in the Statement of Operations include ordinary changes of estimates in expenses.

At November 30, 2001, the other receivable of $384,000 (0.01% of net assets) has been valued in good faith as determined in accordance with procedures approved by the Trustees.

B. Purchases and Sales of Securities

During the six months ended November 30, 2001, purchases and sales (excluding short-term instruments) of investment securities aggregated $311,773,598 and $585,349,402, respectively.

C. Related Parties

Management Agreement. Under the Investment Management Agreement (the "Management Agreement") with Zurich Scudder Investments, Inc., ("ZSI" or the "Advisor"), formerly Scudder Kemper Investments, Inc., 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 Agreement. The management fee payable under the Agreement was equal to an annual rate of 0.49% on the first $2,000,000,000 of the Fund's average daily net assets, 0.465% of the next $1,000,000,000 of such net assets and 0.44% of such net assets in excess of $3,000,000,000, computed and accrued daily and payable monthly.

Effective June 11, 2001, the Fund, as approved by the Fund's Trustees, adopted a new Investment Management Agreement (the "Agreement") with the Advisor. The Agreement is identical to the pre-existing Management Agreement, except for the dates of execution and termination and fee rate. The management fee payable under the Agreement is equal to an annual rate of 0.450% of the first $250,000,000 of the Fund's average daily net assets, 0.430% of the next $750,000,000 of such net assets, 0.410% of the next $1,500,000,000 of such net assets, 0.400% of the next $2,500,000,000 of such net assets, 0.380% of the next $2,500,000,000 of such net assets, 0.360% of the next $2,500,000,000 of such net assets, 0.340% of the next $2,500,000,000 of such net assets and 0.320% of such net assets in excess of $12,500,000,000, computed and accrued daily and payable monthly. Accordingly, for the six months ended November 30, 2001, the fees pursuant to the Management Agreement and the Agreement amounted to $9,884,760, which was equivalent to an annualized effective rate of 0.41% of the Fund's average daily net assets.

On September 24, 2001, Deutsche Bank and Zurich Financial Services, parent company of ZSI, the investment manager for the Fund, announced that they have signed an agreement in principle under which Deutsche Bank will acquire 100% of ZSI. The agreement in principle does not include ZSI's Threadneedle Investments in the U.K., which will be retained by Zurich Financial Services. On December 4, 2001, a definitive agreement was signed and the transaction is expected to be completed, pending regulatory approval and satisfaction of other conditions, in the first half 2002.

Administrative Fee. Under the Administrative Agreement (the "Administrative Agreement"), ZSI provides, or pays others to provide, substantially all of the administrative services required by the Fund (other than those provided by ZSI under its Management Agreement with the Fund, as described above) in exchange for the payment by the Fund of an administrative services fee (the "Administrative Fee") of 0.15%, 0.15%, 0.10%, 0.125% and 0.15%, of average daily net assets for Class AARP, S, A, B and C shares, respectively, computed and accrued daily and payable monthly. For the six months ended November 30, 2001, the Advisor voluntarily waived .005% of the Administrative Fee for Class A.

Various third-party service providers, some of which are affiliated with ZSI, provide certain services to the Fund under the Administrative Agreement. Scudder Fund Accounting Corporation, a subsidiary of ZSI, computes the net asset value for the Fund and maintains the accounting records of the Fund. Scudder Investments Service Company, an affiliate of ZSI, is the transfer, shareholder service and dividend-paying agent for Class A, B and C shares of the Fund. Scudder Service Corporation, also a subsidiary of ZSI, is the transfer, shareholder service and dividend-paying agent for Class AARP and S shares of the Fund. Scudder Trust Company, also an affiliate of ZSI, provides subaccounting and recordkeeping services for shareholders in certain retirement and employee benefit plans. In addition, other service providers, not affiliated with ZSI, provide certain services (i.e., custody, legal, audit) to the Fund under the Administrative Agreement. ZSI pays the service providers for the provision of their services to the Fund and will pay other Fund expenses, including insurance, registration, printing, postage and other costs. Certain expenses of the Fund are not borne by ZSI under the Administrative Agreement, such as taxes, brokerage, interest and extraordinary expenses, and the fees and expenses of the Independent Trustees (including the fees and expenses of their independent counsel). For the six months ended November 30, 2001, the Administrative Fee was as follows:

Administrative Fee	Total Aggregated	Fees Waived	Unpaid at November 30, 2001
Class AARP	$ 1,127,742	$ -	$ 196,546
Class S	617,162	-	107,701
Class A	1,185,668	58,747	197,213
Class B	42,188	-	7,264
Class C	8,663	-	1,529
	$ 2,981,423	$ 58,747	$ 510,253

Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule 12b-1 under the 1940 Act, Scudder Distributors, Inc. ("SDI"), formerly Kemper Distributors, Inc., a subsidiary of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of Class B and C shares. Pursuant to the agreement, SDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the period June 11, 2001 (commencement of sales) through November 30, 2001, the Distribution Fee was as follows:

Distribution Fee	Total Aggregated	Unpaid at November 30, 2001
Class B	$ 254,728	$ 45,182
Class C	43,535	7,863
	$ 298,263	$ 53,045

In addition, SDI also provides information and administrative services ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. SDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the period June 11, 2001 (commencement of sales) through November 30, 2001, the Service Fee was as follows:

Service Fee	Total Aggregated	Unpaid at November 30, 2001
Class A	$ 2,988,232	$ 581,442
Class B	84,910	17,456
Class C	14,512	2,621
	$ 3,087,654	$ 601,519

Underwriting Agreement and Contingent Deferred Sales Charge. SDI is the principal underwriter for Class A, B and C shares. Underwriting commissions paid in connection with the distribution of Class A shares for the period June 11, 2001 (commencement of sales) through November 30, 2001 were $145,272.

In addition, SDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. CDSC is based on declining rates ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the period June 11, 2001 (commencement of sales) through November 30, 2001, the CDSC for Class B and C shares aggregated $37,423 and $6, respectively.

Trustees' Fees and Expenses. The Fund pays each Trustee not affiliated with the Advisor an annual retainer plus specified amounts for attended board and committee meetings.

Other Related Parties. AARP through its affiliates, monitors and approves the AARP Investment Program from ZSI. The Advisor has agreed to pay a fee to AARP and/or its affiliates in return for the use of the AARP trademark and services relating to investments by AARP members in Class AARP shares of the Fund. This fee is calculated on a daily basis as a percentage of the combined net assets of the AARP classes of all funds managed by ZSI. The fee rates, which decrease as the aggregate net assets of the AARP classes become larger, are as follows: 0.07% for the first $6,000,000,000 of net assets, 0.06% for the next $10,000,000,000 of such net assets and 0.05% of such net assets thereafter. These amounts are used for the general purposes of AARP and its members.

D. Expense Off-Set Arrangements

The Fund has entered into an arrangement with the custodian whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Fund's expenses. During the six months ended November 30, 2001, pursuant to the Administrative Agreement, the Administrative Fee was reduced for custodian credits earned by $29,984.

E. Line of Credit

The Fund and several affiliated funds (the "Participants") share in a $1 billion revolving credit facility with J.P. Morgan Chase & Co. for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. 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%. The Fund may borrow up to a maximum of 33% of its net assets under the agreement.

F. Acquisition of Assets

On July 28, 2000, the Fund acquired all the net assets of AARP Insured Tax Free General Bond Fund and Scudder Ohio Tax Free Fund pursuant to plans of reorganization approved by shareholders on July 10, 2000. The acquisitions were accomplished by a tax-free exchange of 167,859,204 shares of Class AARP shares of the Fund for 81,934,189 shares of AARP Insured Tax Free General Bond Fund and 9,530,645 shares of Class S shares of the Fund for 6,453,449 shares of Scudder Ohio Tax Free Fund outstanding on July 28, 2000. AARP Insured Tax Free General Bond Fund's net assets at that date ($1,458,696,212), including $91,141,695 of unrealized appreciation and Scudder Ohio Tax Free Fund's net assets at that date ($82,821,299) including $2,517,579 of unrealized appreciation, were combined with those of the Fund. The aggregate net assets of the Fund immediately before the acquisitions were $683,719,293. The combined net assets of the Fund immediately following the acquisition were $2,225,236,804.

In addition, on June 8, 2001, the Fund acquired all the net assets of Kemper Municipal Bond Fund and Kemper Ohio Tax-Free Income Fund pursuant to plans of reorganization approved by shareholders on May 24, 2001. The acquisition of Kemper Municipal Bond Fund was accomplished by a tax-free exchange of 274,956,913 Class A shares, 6,926,222 Class B shares and 1,021,277 Class C shares of the Fund, respectively, for 248,280,451 Class A shares, 6,271,177 Class B shares and 920,713 Class C shares of Kemper Municipal Bond Fund, respectively, outstanding on June 8, 2001. The acquisition of Kemper Ohio Tax-Free Income Fund was accomplished by a tax-free exchange of 2,811,999 Class A shares, 1,094,322 Class B shares and 318,679 Class C shares of the Fund, respectively, for 2,479,812 Class A shares, 965,154 Class B shares and 281,161 Class C shares of Kemper Ohio Tax-Free Income Fund, respectively, outstanding on June 8, 2001. Kemper Municipal Bond Fund's net assets at that date ($2,546,182,540), including $150,928,377 of unrealized appreciation and Kemper Ohio Tax-Free Income Fund's net assets at that date ($38,025,622), including $1,764,050 of unrealized appreciation, were combined with those of the Fund. The aggregate net assets of the Fund immediately before the acquisitions were $2,286,479,077. The combined net assets of the Fund immediately following the acquisitions were $4,870,687,239.

G. Share Transactions

The following table summarizes share and dollar activity in the Fund:

	Six Months Ended November 30, 2001		Year Ended May 31, 2001
	Shares	Dollars	Shares	Dollars
Shares sold
Class AARP	4,458,647	$ 40,747,412	5,565,364*	$ 49,683,069*
Class S	23,699,882	215,910,341	31,024,576**	277,617,507**
Class A (a)	21,330,127	194,570,545	-	-
Class B (a)	662,141	6,036,136	-	-
Class C (a)	255,881	2,337,054	-	-
		$ 459,601,488		$ 327,300,576
Shares issued in tax-free reorganizations
Class AARP	-	$ -	167,859,204	$ 1,458,696,212
Class S	-	-	9,530,645	82,821,299
Class A	277,768,912	2,499,961,842	-	-
Class B	8,020,544	72,187,172	-	-
Class C	1,339,956	12,059,148	-	-
		$ 2,584,208,162		$ 1,541,517,511
Shares issued to shareholders in reinvestment of distributions
Class AARP	2,399,518	$ 21,892,436	3,853,556*	$ 34,239,154*
Class S	1,294,257	11,810,144	2,406,836**	21,307,505**
Class A (a)	3,656,889	33,401,900	-	-
Class B (a)	76,759	701,183	-	-
Class C (a)	13,080	119,463	-	-
		$ 67,925,126		$ 55,546,659
Shares redeemed
Class AARP	(6,718,988)	$ (61,371,235)	(12,993,484)*	$ (115,335,042)*
Class S	(25,153,149)	(229,558,598)	(30,827,545)**	(275,701,840)**
Class A (a)	(29,127,337)	(266,217,523)	-	-
Class B (a)	(1,180,660)	(10,812,613)	-	-
Class C (a)	(292,968)	(2,677,231)	-	-
		$ (570,637,200)		$ (391,036,882)
Net increase (decrease)
Class AARP	139,177	$ 1,268,613	164,284,640*	$ 1,427,283,393*
Class S	(159,010)	(1,838,113)	12,134,512**	106,044,471**
Class A (a)	273,628,591	2,461,716,764	-	-
Class B (a)	7,578,784	68,111,878	-	-
Class C (a)	1,315,949	11,838,434	-	-
		$ 2,541,097,576		$ 1,533,327,864

* For the period July 31, 2000 (commencement of sales of Class AARP shares) to May 31, 2001.
** On July 28, 2000, existing shares of the Fund were redesignated as Class S.
(a) For the period June 11, 2001, (commencement of sales of Class A, B and C shares) to November 30, 2001.

H. Change in Accounting Principle

As required, effective June 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 June 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 $2,884,629 increase in cost of securities and a corresponding $2,884,629 decrease in net unrealized appreciation, based on securities held by the Fund on June 1, 2001.

The effect of this change for the six months ended November 30, 2001, was to increase net investment income by $1,781,402, decrease unrealized appreciation by $1,239,274, and decrease net realized gains by $542,128. The statement of changes in net assets for the prior period has not been restated to reflect this change in presentation.

I. Reorganization

ZSI initiated a program to reorganize and combine its two funds families, Scudder and Kemper, in response to changing industry conditions and investor needs. The program proposed to streamline the management and operations of most of the funds ZSI advises principally through the liquidation of several small funds, mergers of certain funds with similar investment objectives, the consolidation of certain Board of Directors/Trustees and the adoption of an Administrative Fee covering the provision of most of the services currently paid for by the affected funds. Costs incurred in connection with this restructuring initiative were borne jointly by ZSI and certain of the affected funds.

Officers and Trustees

Linda C. Coughlin*
President and Trustee
Henry P. Becton, Jr.
Trustee; President, WGBH Educational Foundation
Dawn-Marie Driscoll
Trustee; President, Driscoll Associates; Executive Fellow, Center for Business Ethics, Bentley College
Edgar R. Fiedler
Trustee; Senior Fellow and Economic Counsellor, The Conference Board, Inc.
Keith R. Fox
Trustee; General Partner, The Exeter Group of Funds
Jean Gleason Stromberg
Trustee; Consultant
Jean C. Tempel
Trustee; Managing Director, First Light Capital, LLC
Steven Zaleznick
Trustee; President and Chief Executive Officer, AARP Services, Inc.
Thomas V. Bruns*
Vice President
Philip G. Condon*
Vice President
William F. Glavin, Jr.*
Vice President
Ashton P. Goodfield*
Vice President
James E. Masur*
Vice President
Howard S. Schneider*
Vice President
John Millette*
Vice President and Secretary
Kathryn L. Quirk*
Vice President and Assistant Secretary
John R. Hebble*
Treasurer
Thomas Lally*
Assistant Treasurer
Brenda Lyons*
Assistant Treasurer
Caroline Pearson*
Assistant Secretary

* Zurich Scudder Investments, Inc.

Investment Products and Services

Scudder Funds

Core
Scudder Blue Chip Fund
Scudder Focus Value+Growth Fund
Scudder Growth and Income Fund
Scudder Research Fund
Scudder S&P 500 Stock Fund
Scudder Select 500 Fund
Scudder Small Company Stock Fund
Scudder Target 2011 Fund
Scudder Total Return Fund
Growth
Scudder 21st Century Growth Fund
Scudder Aggressive Growth Fund
Scudder Capital Growth Fund
Scudder Dynamic Growth Fund
Scudder Focus Growth Fund
Scudder Growth Fund
Scudder Large Company Growth Fund
Scudder Select 1000 Growth Fund
Value
Scudder Contrarian Fund
Scudder Dividend & Growth Fund
Scudder-Dreman High Return Equity Fund
Scudder Large Company Value Fund
Scudder Small Cap Value Fund
Sector
Scudder-Dreman Financial Services Fund
Scudder Gold Fund
Scudder Health Care Fund
Scudder Technology Fund
Scudder Technology Innovation Fund
Asset Allocation
Scudder Pathway Conservative Portfolio
Scudder Pathway Moderate Portfolio
Scudder Pathway Growth Portfolio
Global/International
Scudder Emerging Markets Growth Fund
Scudder Emerging Markets Income Fund
Scudder Global Fund
Scudder Global Bond Fund
Scudder Global Discovery Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder International Research Fund
Scudder Latin America Fund
Scudder New Europe Fund
Scudder Pacific Opportunities Fund
The Japan Fund, Inc.
Income
Scudder Cash Reserves Fund
Scudder Floating Rate Fund
Scudder High-Yield Fund
Scudder High-Yield Opportunity Fund
Scudder Income Fund
Scudder Short-Term Bond Fund
Scudder Strategic Income Fund
Scudder U.S. Government Securities Fund
Tax-Free Income
Scudder California Tax-Free Income Fund
Scudder Florida Tax-Free Income Fund
Scudder High-Yield Tax-Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Tax-Free Fund
Scudder Medium-Term Tax-Free Fund
Scudder New York Tax-Free Income Fund

Retirement Programs and Education Accounts

Retirement Programs
Traditional IRA
Roth IRA
SEP-IRA
Inherited IRA
Keogh Plan
401(k), 403(b) Plans
Variable Annuities
Education Accounts
Education IRA
UGMA/UTMA
IRA for Minors

Closed-End Funds

The Brazil Fund, Inc.
The Korea Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder Global High Income Fund, Inc.
Scudder New Asia Fund, Inc.
Scudder High Income Trust
Scudder Intermediate Government Trust
Scudder Multi-Market Income Trust
Scudder Strategic Income Trust
Scudder Strategic Municipal Income Trust
Scudder Municipal Income Trust

Scudder 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.

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.

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.

Scudder Investor Services, Inc.

Account Management Resources

Legal Counsel	Wilkie, Farr & Gallagher 787 Seventh Avenue New York, NY 10019
Shareholder Service Agent	Scudder Investments Service Company P.O. Box 219151 Kansas City, MO 64121
Custodian and Transfer Agent	State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110
Independent Accountants	PricewaterhouseCoopers LLP 160 Federal Street Boston, MA 02110
Principal Underwriter	Scudder Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606 www.scudder.com (800) 621-1048

Privacy Statement January 2002

This privacy statement is issued by Zurich Scudder Investments, Inc. (Scudder), its affiliates Scudder Distributors, Inc., Scudder Financial Services, Inc., Scudder Investor Services, Inc., Scudder Trust Company, and each of the funds managed or advised by Scudder. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information.

We never sell customer lists or individual client information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.

In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our Web sites, and through transactions with us or our affiliates. To be able to serve our clients, information is shared with affiliates and other companies. Specifically, we disclose client information to parties that perform various services for us, such as transfer agents, custodians, and broker-dealers. Limited information also may be shared with affiliates, with companies with which we have joint marketing agreements, or with other parties as required by law. Any organization receiving client information may only use it for the purpose designated by Scudder.

Questions on this policy may be sent to:

Zurich Scudder Investments, Attention: Correspondence - Chicago,

P.O. Box 219415, Kansas City, MO 64121-9415.

Notes

Notes

Notes

Notes