United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21235
(Investment Company Act File Number)
Federated Premier Municipal Income Fund
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/03
Date of Reporting Period: Fiscal period ended 5/31/03
Item 1. Reports to Stockholders
Federated Investors
World-Class Investment Manager
Established 2002
May 31, 2003
(For a Common Share Outstanding Throughout the Period)
|
Period |
|
||
|
|
5/31/2003 |
1 |
|
|
Net Asset Value, Beginning of Period |
|
$14.33 |
|
|
Income From Investment Operations: |
|
|
|
|
Net investment income |
|
0.37 |
|
|
Net realized and unrealized gain on investments and swap contracts |
|
0.71 |
|
|
|
|||
|
TOTAL FROM INVESTMENT OPERATIONS |
|
1.08 |
|
|
|
|||
|
Offering costs - Common Shares |
|
(0.03 |
) |
|
|
|||
|
Less Distributions From Net Investment Income: |
|
|
|
|
Distributions from Common Shares |
|
(0.34 |
) |
|
|
|||
|
Distributions from Auction Market Preferred Shares |
|
(0.03 |
) |
|
|
|||
|
Net Asset Value, End of Period |
|
$15.01 |
|
|
|
|||
|
Market Price, End of Period |
|
$14.98 |
|
|
|
|||
|
Total Return at Net Asset Value2 |
|
7.17 |
% |
|
|
|||
|
Total Return at Market Price |
|
2.18 |
% |
|
|
|||
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|||
|
Expenses |
|
0.81 |
%3 |
|
|
|||
|
Net investment income4 |
|
5.96 |
%3 |
|
|
|||
|
Expense waiver/reimbursement5 |
|
0.40 |
%3 |
|
|
|||
|
Supplemental Data: |
|
|
|
|
|
|||
|
Net assets, end of period (000 omitted) |
|
$91,706 |
|
|
|
|||
|
Portfolio turnover |
|
33 |
% |
|
|
|||
Asset Coverage Requirements -- Preferred Shares
|
|
|
Total Amount |
|
Asset |
|
Involuntary |
|
Average |
|
5/31/20036 |
|
$53,675,000 |
|
$67,714 |
|
$25,002 |
|
$25,000 |
|
|
||||||||
1 Reflects operations for the period from December 20, 2002 (date of initial public investment) to May 31, 2003.
2 Total return does not reflect the sales charge, if applicable.
3 Computed on an annualized basis.
4 Ratios reflect reduction for dividend payments to preferred shareholders.
5 This expense decrease is reflected in both the expense and the net investment income ratios shown above.
6 On February 13, 2003, the Fund began offering Auction Market Preferred Shares.
See Notes which are an integral part of the Financial Statements
(For a Common Share Outstanding Throughout the Period)
|
|
Period |
|
|
|
|
5/31/2003 |
1 |
|
|
Net Asset Value, Beginning of Period |
|
$14.33 |
|
|
Income From Investment Operations: |
|
|
|
|
Net investment income |
|
0.30 |
2 |
|
Net realized and unrealized gain on investments and swap contracts |
|
0.60 |
|
|
|
|||
|
TOTAL FROM INVESTMENT OPERATIONS |
|
0.90 |
|
|
|
|||
|
Offering costs - Common Shares |
|
(0.03 |
) |
|
|
|||
|
Less Distributions From Net Investment Income: |
|
|
|
|
Distributions from Common Shares |
|
(0.25 |
) |
|
|
|||
|
Distributions from Auction Market Preferred Shares |
|
(0.03 |
) |
|
|
|||
|
Net Asset Value, End of Period |
|
$14.92 |
|
|
|
|||
|
Market Price, End of Period |
|
$14.38 |
|
|
|
|||
|
Total Return at Net Asset Value3 |
|
6.00 |
% |
|
|
|||
|
Total Return at Market Price |
|
(2.40 |
)% |
|
|
|||
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|||
|
Expenses |
|
0.83 |
%4 |
|
|
|||
|
Net investment income5 |
|
4.69 |
%4 |
|
|
|||
|
Expense waiver/reimbursement6 |
|
0.36 |
%4 |
|
|
|||
|
Supplemental Data: |
|
|
|
|
|
|||
|
Net assets, end of period (000 omitted) |
|
$103,680 |
|
|
|
|||
|
Portfolio turnover |
|
32 |
% |
|
|
|||
Asset Coverage Requirements -- Preferred Shares
|
|
|
Total Amount |
|
Asset |
|
Involuntary |
|
Average |
|
5/31/20037 |
|
$61,025,000 |
|
$67,475 |
|
$25,003 |
|
$25,000 |
|
|
||||||||
1 Reflects operations for the period from December 20, 2002 (date of initial public investment) to May 31, 2003.
2 Based on average shares outstanding.
3 Total return does not reflect the sales charge, if applicable.
4 Computed on an annualized basis.
5 Ratios reflect reduction for dividend payments to preferred shareholders.
6 This expense decrease is reflected in both the expense and the net investment income ratios shown above.
7 On February 13, 2003, the Fund began offering Auction Market Preferred Shares.
See Notes which are an integral part of the Financial Statements
May 31, 2003 (unaudited)
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--99.4% |
|
|
|
|
|
|
|
|
|
Alabama--3.0% |
|
|
|
|
|
|
$ |
4,000,000 |
|
Jefferson County, AL Sewer, Capital Improvement Warrants (Series 2002D), 5.25% (FGIC INS), 2/1/2026 |
|
AAA/Aaa/AAA |
|
$ |
4,311,920 |
|
|
||||||||
|
|
|
|
Arizona--3.4% |
|
|
|
|
|
|
|
500,000 |
|
Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series A), 5.00% (MBIA INS), 7/1/2024 |
|
NR/Aaa/AAA |
|
|
533,230 |
|
|
1,000,000 |
|
Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.00% (MBIA INS), 7/1/2025 |
|
NR/Aaa/AAA |
|
|
1,062,230 |
|
|
1,000,000 |
|
Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.375% (MBIA INS), 7/1/2022 |
|
NR/Aaa/AAA |
|
|
1,115,360 |
|
|
750,000 |
|
Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe), 12/1/2030 |
|
NR |
|
|
747,210 |
|
|
1,500,000 |
|
Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 |
|
NR |
|
|
1,519,260 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
4,977,290 |
|
|
||||||||
|
|
|
|
Arkansas--2.6% |
|
|
|
|
|
|
|
2,000,000 |
|
Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington Regional Medical Center)/(Original Issue Yield: 7.50%), 2/1/2029 |
|
BBB-/Baa3/BBB |
|
|
2,224,580 |
|
|
1,500,000 |
|
Independence County, AR, Hydroelectric Revenue Bonds, 5.35% (American Capital Access INS), 5/1/2028 |
|
A/NR/NR |
|
|
1,523,355 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,747,935 |
|
|
||||||||
|
|
|
|
California--11.1% |
|
|
|
|
|
|
|
2,000,000 |
|
California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds (Series A), 5.375% (Original Issue Yield: 5.48%), 5/1/2022 |
|
BBB+/A3/A- |
|
|
2,149,480 |
|
|
3,000,000 |
|
California State Public Works Board, General Services Revenue Bonds (Series A), 5.00% (AMBAC INS), 12/1/2027 |
|
AAA/Aaa/AAA |
|
|
3,171,030 |
|
|
2,000,000 |
|
California State, Refunding UT GO Bonds, 5.00% (Original Issue Yield: 5.07%), 2/1/2021 |
|
A/A2/A |
|
|
2,091,160 |
|
|
2,000,000 |
|
California State, Refunding UT GO Bonds, 5.25%, 2/1/2020 |
|
A/A2/A |
|
|
2,156,280 |
|
|
2,000,000 |
|
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (Original Issue Yield: 7.00%), 6/1/2039 |
|
A-/A3/BBB |
|
|
1,876,300 |
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
California--continued |
|
|
|
|
|
|
$ |
500,000 |
|
La Verne, CA, Revenue Certificates of Participation (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue Yield: 6.70%), 2/15/2025 |
|
BBB-/NR/NR |
|
$ |
507,665 |
|
|
2,300,000 |
|
Sacramento, CA Regional Arts Facilities Financing Authority, Certificates of Participation, 5.00% (AMBAC INS)/(Original Issue Yield: 5.06%), 9/1/2027 |
|
AAA/Aaa/AAA |
|
|
2,430,318 |
|
|
1,710,000 |
|
Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds, 5.00% (AMBAC INS), 10/1/2027 |
|
AAA/Aaa/AAA |
|
|
1,818,927 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
16,201,160 |
|
|
||||||||
|
|
|
|
Colorado--1.9% |
|
|
|
|
|
|
|
725,000 |
|
Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023 |
|
NR |
|
|
735,056 |
|
|
1,000,000 |
|
Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 |
|
NR |
|
|
1,012,970 |
|
|
1,000,000 |
|
Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement Communities, Inc.)/(Original Issue Yield: 6.40%), 12/1/2033 |
|
BBB+/NR/BBB+ |
|
|
1,043,280 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
2,791,306 |
|
|
||||||||
|
|
|
|
Connecticut--2.6% |
|
|
|
|
|
|
|
1,250,000 |
|
Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds (Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033 |
|
BBB+/NR/NR |
|
|
1,299,625 |
|
|
2,300,000 |
|
Connecticut State Transportation Infrastructure Authority, Transportation Infrastructure Special Tax Revenue Bonds (Series 2002B), 5.00% (AMBAC INS), 12/1/2022 |
|
AAA/Aaa/AAA |
|
|
2,477,514 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,777,139 |
|
|
||||||||
|
|
|
|
District of Columbia--1.6% |
|
|
|
|
|
|
|
2,500,000 |
|
District of Columbia Tobacco Settlement Financing Corp., Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.67%), 5/15/2033 |
|
A-/A3/BBB |
|
|
2,276,125 |
|
|
||||||||
|
|
|
|
Florida--9.0% |
|
|
|
|
|
|
|
1,000,000 |
2 |
Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 |
|
NR |
|
|
1,138,490 |
|
|
400,000 |
2 |
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 |
|
NR |
|
|
427,592 |
|
|
1,490,000 |
|
Citrus County, FL Hospital Board, Revenue Refunding Bonds, 6.375% (Citrus Memorial Hospital)/(Original Issue Yield: 6.50%), 8/15/2032 |
|
NR/Baa3/BBB |
|
|
1,563,934 |
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
Florida--continued |
|
|
|
|
|
|
$ |
1,320,000 |
|
Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 |
|
NR |
|
$ |
1,342,849 |
|
|
2,000,000 |
|
Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA INS), 10/1/2024 |
|
AAA/Aaa/AAA |
|
|
2,142,460 |
|
|
1,050,000 |
|
Pinellas County, FL Health Facility Authority, Revenue Bonds, 5.50% (Baycare Health System)/(Original Issue Yield: 5.59%), 11/15/2033 |
|
NR/A1/AA- |
|
|
1,080,387 |
|
|
1,200,000 |
|
Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033 |
|
NR |
|
|
1,204,536 |
|
|
4,000,000 |
|
Village Center Community Development District, FL, Recreational Revenue Bonds (Series 2003A), 5.00% (MBIA INS)/(Original Issue Yield: 5.032%), 11/1/2032 |
|
AAA/Aaa/NR |
|
|
4,237,440 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
13,137,688 |
|
|
||||||||
|
|
|
|
Georgia--1.1% |
|
|
|
|
|
|
|
1,500,000 |
|
Athens, GA Housing Authority, Lease Revenue Bonds, 5.25% (University of Georgia-East Campus)/(AMBAC INS), 12/1/2023 |
|
NR/Aaa/NR |
|
|
1,632,780 |
|
|
||||||||
|
|
|
|
Hawaii--1.0% |
|
|
|
|
|
|
|
1,400,000 |
|
Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% (Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033 |
|
NR |
|
|
1,414,644 |
|
|
||||||||
|
|
|
|
Illinois--2.1% |
|
|
|
|
|
|
|
1,000,000 |
|
Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest Project), 3/1/2033 |
|
NR |
|
|
1,000,000 |
|
|
1,000,000 |
|
Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East Project)/(Original Issue Yield: 6.769%), 12/1/2032 |
|
NR |
|
|
1,010,750 |
|
|
1,000,000 |
|
Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.70% (Augustana College)/(Original Issue Yield: 5.90%), 10/1/2032 |
|
NR/Baa1/NR |
|
|
1,038,780 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,049,530 |
|
|
||||||||
|
|
|
|
Kansas--2.2% |
|
|
|
|
|
|
|
3,000,000 |
|
Wichita, KS Water & Sewer Utility, Revenue Bonds (Series 2003), 5.00% (FGIC INS), 10/1/2021 |
|
AAA/Aaa/NR |
|
|
3,253,110 |
|
|
||||||||
|
|
|
|
Kentucky--1.5% |
|
|
|
|
|
|
|
2,000,000 |
|
Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028 |
|
NR/NR/BBB+ |
|
|
2,123,240 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
Massachusetts--3.7% |
|
|
|
|
|
|
$ |
3,000,000 |
|
Commonwealth of Massachusetts, Construction Loan LT GO Bonds (Series 2002E), 5.25% (FGIC INS), 1/1/2022 |
|
AAA/Aaa/AAA |
|
$ |
3,292,290 |
|
|
2,000,000 |
|
Massachusetts Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of Pharmacy & Allied Health Sciences), 7/1/2033 |
|
BBB/NR/NR |
|
|
2,020,300 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,312,590 |
|
|
||||||||
|
|
|
|
Michigan--3.1% |
|
|
|
|
|
|
|
2,000,000 |
|
Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.), 5/1/2018 |
|
BBB/Baa2/NR |
|
|
2,040,900 |
|
|
2,375,000 |
|
Melvindale-Northern Allen Park, MI School District, Building & Site LT GO Bonds, 5.00% (FSA INS), 5/1/2023 |
|
AAA/Aaa/NR |
|
|
2,531,940 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
4,572,840 |
|
|
||||||||
|
|
|
|
Minnesota--1.0% |
|
|
|
|
|
|
|
1,400,000 |
|
St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg Project)/(Original Issue Yield: 7.50%), 8/1/2029 |
|
NR |
|
|
1,450,694 |
|
|
||||||||
|
|
|
|
Mississippi--1.6% |
|
|
|
|
|
|
|
2,000,000 |
|
Lowndes County, MS Solid Waste Disposal, Refunding PCR Bonds (Series 1992B), 6.70% (Weyerhaeuser Co.), 4/1/2022 |
|
BBB/Baa2/NR |
|
|
2,319,100 |
|
|
||||||||
|
|
|
|
Missouri--0.7% |
|
|
|
|
|
|
|
1,000,000 |
|
Missouri Development Finance Board, Infrastructure Facilities Bonds (Series 2003A), 5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032 |
|
BBB+/Baa1/NR |
|
|
1,037,840 |
|
|
||||||||
|
|
|
|
Nevada--0.5% |
|
|
|
|
|
|
|
650,000 |
|
North Las Vegas, NV Special Improvement District No. 60, Local Improvement Special Assessment Bonds (Series 2002), 6.40% (Aliante), 12/1/2022 |
|
NR |
|
|
662,266 |
|
|
||||||||
|
|
|
|
New Jersey--0.8% |
|
|
|
|
|
|
|
600,000 |
|
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023 |
|
BB+/NR/BBB- |
|
|
603,612 |
|
|
500,000 |
|
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.625% (Palisades Medical Center)/(Original Issue Yield: 6.67%), 7/1/2031 |
|
BBB-/Baa3/BBB- |
|
|
525,480 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
1,129,092 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
New York--1.3% |
|
|
|
|
|
|
$ |
750,000 |
|
Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%), 7/1/2022 |
|
NR/Baa1/NR |
|
$ |
762,750 |
|
|
1,000,000 |
|
Triborough Bridge & Tunnel Authority, NY, Refunding Revenue Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.17%), 11/15/2026 |
|
AAA/Aaa/AAA |
|
|
1,055,100 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
1,817,850 |
|
|
||||||||
|
|
|
|
North Carolina--2.2% |
|
|
|
|
|
|
|
1,000,000 |
|
Haywood County, NC Industrial Facilties & Pollution Control Financing Authority, Refunding Revenue Bonds, 6.00% (Champion International Corp.), 3/1/2020 |
|
NR/Baa2/NR |
|
|
1,034,700 |
|
|
500,000 |
|
North Carolina Eastern Municipal Power Agency, Power Supply Revenue Refunding Bonds (Series D), 5.125% (Original Issue Yield: 5.33%), 1/1/2026 |
|
BBB/Baa3/BBB+ |
|
|
500,915 |
|
|
1,500,000 |
|
North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.25% (Catawba Electric)/(MBIA INS), 1/1/2019 |
|
AAA/Aaa/AAA |
|
|
1,676,520 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,212,135 |
|
|
||||||||
|
|
|
|
North Dakota--1.4% |
|
|
|
|
|
|
|
2,000,000 |
|
Ward County, ND Health Care Facility, Revenue Bonds (Series A), 6.25% (Trinity Obligated Group, ND)/(Original Issue Yield: 6.375%), 7/1/2026 |
|
BBB+/NR/NR |
|
|
2,073,960 |
|
|
||||||||
|
|
|
|
Pennsylvania--3.5% |
|
|
|
|
|
|
|
1,165,000 |
|
Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.70%), 11/15/2030 |
|
B+/B1/B+ |
|
|
1,303,181 |
|
|
320,000 |
|
Allegheny County, PA HDA, Revenue Bonds (Series A), 8.75% (Covenant at South Hills)/(Original Issue Yield: 8.80%), 2/1/2031 |
|
NR |
|
|
357,133 |
|
|
1,295,000 |
|
Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(Original Issue Yield: 7.50%), 1/1/2035 |
|
NR |
|
|
1,306,292 |
|
|
2,000,000 |
|
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, Series A, 6.00% (UPMC Health System)/(Original Issue Yield: 6.16%), 1/15/2031 |
|
A/NR/A |
|
|
2,139,320 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,105,926 |
|
|
||||||||
|
|
|
|
South Carolina--4.4% |
|
|
|
|
|
|
|
2,500,000 |
|
South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health System)/(Original Issue Yield: 5.84%), 11/15/2030 |
|
A-/A3/A- |
|
|
2,621,350 |
|
|
2,000,000 |
|
South Carolina State Public Service Authority, Refunding Revenue Bonds (Series 2002D), 5.00% (Santee Cooper)/(FSA INS), 1/1/2020 |
|
AAA/Aaa/NR |
|
|
2,175,320 |
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
South Carolina--continued |
|
|
|
|
|
|
$ |
1,500,000 |
|
South Carolina State Public Service Authority, Revenue Bonds (Series D), 5.00% (Santee Cooper)/(FSA INS), 1/1/2021 |
|
AAA/Aaa/AAA |
|
$ |
1,619,025 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
6,415,695 |
|
|
||||||||
|
|
|
|
South Dakota--1.2% |
|
|
|
|
|
|
|
1,750,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023 |
|
A-/NR/NR |
|
|
1,812,527 |
|
|
||||||||
|
|
|
|
Tennessee--6.0% |
|
|
|
|
|
|
|
2,000,000 |
|
Johnson City, TN Health & Education Facilities Board, Hospital Revenue Refunding Bonds (Series A), 7.50% (Mountain States Health Alliance), 7/1/2025 |
|
NR/Baa2/BBB- |
|
|
2,257,820 |
|
|
1,000,000 |
|
Knox County, TN Health Education & Housing Facilities Board, Hospital Facilities Revenue Bonds, 6.50% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.625%), 4/15/2031 |
|
NR/Baa2/NR |
|
|
1,065,530 |
|
|
1,535,000 |
|
Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds (Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%), 7/1/2033 |
|
BBB+/Baa1/NR |
|
|
1,588,955 |
|
|
1,500,000 |
|
Knox County, TN Health Education & Housing Facilities Board, Revenue Bonds, 6.375% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.50%), 4/15/2022 |
|
NR/Baa2/NR |
|
|
1,597,095 |
|
|
2,000,000 |
|
Shelby County, TN Health Education & Housing Facilities Board, Revenue Bonds, 6.50% (Methodist Healthcare)/(Original Issue Yield: 6.60%), 9/1/2026 |
|
BBB+/Baa1/NR |
|
|
2,200,420 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
8,709,820 |
|
|
||||||||
|
|
|
|
Texas--10.0% |
|
|
|
|
|
|
|
1,200,000 |
|
Abilene, TX Health Facilites Development Corp., Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist Retirement)/(Original Issue Yield: 7.25%), 11/15/2033 |
|
NR |
|
|
1,201,440 |
|
|
2,615,000 |
|
Houston, TX, Refunding Public Improvement LT GO Bonds, 5.00% (MBIA INS), 3/1/2025 |
|
AAA/Aaa/AAA |
|
|
2,750,091 |
|
|
4,000,000 |
|
North Central Texas HFDC, Hospital Revenue Refunding Bonds (Series 2002), 5.25% (Children's Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022 |
|
AAA/Aaa/AAA |
|
|
4,299,080 |
|
|
1,350,000 |
|
North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest Senior Housing Corp. Edgemere Project)/(Original Issue Yield: 7.75%), 11/15/2029 |
|
NR |
|
|
1,394,212 |
|
|
2,000,000 |
|
Spring Branch, TX Independent School District, Refunding LT GO Bonds, 5.20% (PSFG INS)/(Original Issue Yield: 5.23%), 2/1/2020 |
|
AAA/Aaa/NR |
|
|
2,177,860 |
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
LONG-TERM MUNICIPALS--continued |
|
|
|
|
|
|
|
|
|
Texas--continued |
|
|
|
|
|
|
$ |
1,500,000 |
|
Texas State University System, Refunding Revenue Bonds, 5.00% (FSA INS), 3/15/2020 |
|
AAA/Aaa/AAA |
|
$ |
1,617,675 |
|
|
1,000,000 |
|
Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.75% (Mother Frances Hospital)/(Original Issue Yield: 5.84%), 7/1/2027 |
|
NR/Baa1/BBB+ |
|
|
1,028,070 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
14,468,428 |
|
|
||||||||
|
|
|
|
Utah--1.5% |
|
|
|
|
|
|
|
2,000,000 |
|
Utah Transit Authority, Sales Tax Revenue Bonds (Series 2002A), 5.00% (FSA INS), 6/15/2027 |
|
AAA/Aaa/AAA |
|
|
2,106,020 |
|
|
||||||||
|
|
|
|
Virginia--2.6% |
|
|
|
|
|
|
|
1,000,000 |
|
Broad Street Community Development Authority, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033 |
|
NR |
|
|
995,270 |
|
|
1,280,000 |
|
Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028 |
|
AAA/Aaa/AAA |
|
|
1,366,720 |
|
|
1,400,000 |
|
Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(Original Issue Yield: 7.625%), 12/1/2032 |
|
NR |
|
|
1,453,242 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,815,232 |
|
|
||||||||
|
|
|
|
Washington--6.5% |
|
|
|
|
|
|
|
1,000,000 |
|
Everett, WA, LT GO Refunding Bonds, 5.00% (MBIA INS), 12/1/2020 |
|
NR/Aaa/AAA |
|
|
1,082,930 |
|
|
3,915,000 |
|
Seattle, WA Municipal Light & Power, Improvement & Refunding Revenue Bonds, 5.125% (FSA INS)/(Original Issue Yield: 5.30%), 3/1/2026 |
|
AAA/Aaa/AAA |
|
|
4,117,053 |
|
|
2,000,000 |
|
Washington State, UT GO Bonds (Series B), 5.00% (FSA INS)/(Original Issue Yield: 5.05%), 1/1/2021 |
|
AAA/Aaa/AAA |
|
|
2,137,320 |
|
|
2,000,000 |
|
Washington State, Various Purpose UT GO Bonds (Series 2001A), 5.00% (FSA LOC)/(Original Issue Yield: 5.09%), 7/1/2022 |
|
AAA/Aaa/AAA |
|
|
2,111,480 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
9,448,783 |
|
|
||||||||
|
|
|
|
Wisconsin--4.3% |
|
|
|
|
|
|
|
4,000,000 |
|
Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health Care)/(MBIA INS)/(Original Issue Yield: 5.38%), 2/15/2032 |
|
AAA/Aaa/AAA |
|
|
4,212,680 |
|
|
1,000,000 |
|
Wisconsin State HEFA, Revenue Bonds, 6.00% (SynergyHealth, Inc.)/(Original Issue Yield: 6.10%), 11/15/2023 |
|
BBB+/NR/A- |
|
|
1,043,610 |
|
|
1,000,000 |
|
Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 7.45%), 1/15/2033 |
|
NR |
|
|
1,007,530 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
6,263,820 |
|
|
||||||||
|
|
|
|
TOTAL LONG-TERM MUNICIPALS |
|
|
|
|
144,428,485 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
Value |
|||
|
|
|
|
SHORT-TERM MUNICIPAL--0.6% |
|
|
|
|
|
|
|
|
|
Indiana--0.6% |
|
|
|
|
|
|
$ |
900,000 |
|
Indiana Health Facility Financing Authority, (Series 2000B) Daily VRDNs (Clarian Health Partners, Inc.)/(JPMorgan Chase Bank LIQ) |
|
AA/Aa3/AA- |
|
$ |
900,000 |
|
|
||||||||
|
|
|
|
TOTAL INVESTMENTS--100.0% |
|
|
|
$ |
145,328,485 |
|
|
||||||||
1 Current credit ratings provided by Standard & Poor's, Moody's Investors Service and Fitch Ratings, respectively, are unaudited.
2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the Fund's Board of Trustees. At May 31, 2003 these securities amounted to $1,566,082 which represents 1.1% of market value.
3 The cost of investments for federal tax purposes amounts to $139,927,025.
Note: The categories of investments are shown as a percentage of total market value at May 31, 2003.
The following acronyms are used throughout this portfolio:
|
AMBAC |
--American Municipal Bond Assurance Corporation |
|
EDA |
--Economic Development Authority |
|
EDFA |
--Economic Development Finance Authority |
|
FGIC |
--Financial Guaranty Insurance Corporation |
|
FSA |
--Financial Security Assurance |
|
GO |
--General Obligation |
|
HDA |
--Hospital Development Authority |
|
HEFA |
--Health and Education Facilities Authority |
|
HFDC |
--Health Facility Development Corporation |
|
IDA |
--Industrial Development Authority |
|
INS |
--Insured |
|
LIQ |
--Liquidity Agreement |
|
LOC |
--Letter of Credit |
|
LT |
--Limited Tax |
|
MBIA |
--Municipal Bond Insurance Association |
|
PCR |
--Pollution Control Revenue |
|
PSFG |
--Permanent School Fund Guarantee |
|
UT |
--Unlimited Tax |
|
VRDNs |
--Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
May 31, 2003 (unaudited)
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM MUNICIPALS--99.9% |
|
|
|
|
|
|
|
|
|
Alaska--2.7% |
|
|
|
|
|
|
$ |
3,815,000 |
|
Alaska State Housing Finance Corp., State Capitalization Project Revenue Bonds (Series A), 5.00% (MBIA INS), 7/1/2011 |
|
AAA/Aaa/AAA |
|
$ |
4,384,236 |
|
|
||||||||
|
|
|
|
Arizona--3.5% |
|
|
|
|
|
|
|
1,000,000 |
|
Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.00% (MBIA INS), 7/1/2010 |
|
NR/Aaa/AAA |
|
|
1,144,290 |
|
|
1,500,000 |
|
Arizona Tourism & Sports Authority, Tax Revenue Bonds, 5.00% (Original Issue Yield: 5.10%), 7/1/2015 |
|
NR/Baa1/BBB |
|
|
1,586,400 |
|
|
1,500,000 |
|
Arizona Tourism & Sports Authority, Tax Revenue Bonds, 5.00% (Original Issue Yield: 5.17%), 7/1/2016 |
|
NR/Baa1/BBB |
|
|
1,572,615 |
|
|
1,500,000 |
|
Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.15%, 7/15/2017 |
|
NR |
|
|
1,519,605 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,822,910 |
|
|
||||||||
|
|
|
|
Arkansas--0.7% |
|
|
|
|
|
|
|
1,000,000 |
|
Arkansas Development Finance Authority, Revenue Bonds, 7.25% (Washington Regional Medical Center)/(Original Issue Yield: 7.40%), 2/1/2020 |
|
BBB-/Baa3/BBB |
|
|
1,120,770 |
|
|
||||||||
|
|
|
|
California--8.9% |
|
|
|
|
|
|
|
1,250,000 |
|
California Educational Facilities Authority, Revenue Bonds (Series 2000A), 6.75% (Fresno Pacific University), 3/1/2019 |
|
NR/Baa3/NR |
|
|
1,387,437 |
|
|
4,000,000 |
|
California State, Refunding UT GO Bonds, 5.25%, 2/1/2014 |
|
A/A2/A |
|
|
4,494,760 |
|
|
3,000,000 |
|
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.25% (Original Issue Yield: 6.55%), 6/1/2033 |
|
A-/A3/BBB |
|
|
2,724,540 |
|
|
1,500,000 |
|
Orange County, CA Development Agency, Tax Allocation Bonds, 6.125% (Santa Ana Heights Project Area)/(Original Issue Yield: 6.35%), 9/1/2023 |
|
BBB/Baa2/NR |
|
|
1,536,840 |
|
|
1,855,000 |
|
San Francisco, CA City & County Airport Commission, International Airport Refunding Revenue Bonds (Series 29B), 5.00% (FGIC INS), 5/1/2012 |
|
AAA/Aaa/AAA |
|
|
2,134,790 |
|
|
2,000,000 |
|
San Francisco, CA City & County Airport Commission, Revenue Refunding Bonds (Second Series-Issue 29B), 5.25% (FGIC INS), 5/1/2013 |
|
AAA/Aaa/AAA |
|
|
2,363,800 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
14,642,167 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
Colorado--2.1% |
|
|
|
|
|
|
$ |
725,000 |
|
Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023 |
|
NR |
|
$ |
735,056 |
|
|
500,000 |
|
Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 |
|
NR |
|
|
506,485 |
|
|
1,855,000 |
|
Denver, CO City & County Airport Authority, Airport Revenue Bonds (Series E), 6.00% (MBIA INS), 11/15/2011 |
|
AAA/Aaa/AAA |
|
|
2,223,366 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,464,907 |
|
|
||||||||
|
|
|
|
Connecticut--0.5% |
|
|
|
|
|
|
|
750,000 |
|
Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds (Series 2003), 5.75% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.90%), 12/1/2023 |
|
BBB+/NR/NR |
|
|
783,367 |
|
|
||||||||
|
|
|
|
Delaware--3.8% |
|
|
|
|
|
|
|
1,855,000 |
|
Delaware Health Facilities Authority, Revenue Bonds, 4.00% (Christiana Care Health Services)/(AMBAC INS), 10/1/2007 |
|
AAA/Aaa/NR |
|
|
2,006,312 |
|
|
3,680,000 |
|
Delaware Health Facilities Authority, Revenue Bonds, 5.25% (Christiana Care Health Services)/(AMBAC INS), 10/1/2012 |
|
AAA/Aaa/NR |
|
|
4,281,312 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
6,287,624 |
|
|
||||||||
|
|
|
|
District of Columbia--1.4% |
|
|
|
|
|
|
|
2,000,000 |
|
District of Columbia, Refunding UT GO (Series 2002C), 5.25% (XL Capital Assurance Inc. INS), 6/1/2010 |
|
AAA/Aaa/AAA |
|
|
2,283,400 |
|
|
||||||||
|
|
|
|
Florida--3.9% |
|
|
|
|
|
|
|
1,000,000 |
2 |
Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 |
|
NR |
|
|
1,138,490 |
|
|
600,000 |
2 |
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 |
|
NR |
|
|
641,388 |
|
|
1,100,000 |
|
Gateway Services, FL Community Development District, Special Assessment Bonds (Series 2003B), 5.50% (Original Issue Yield: 5.65%), 5/1/2010 |
|
NR |
|
|
1,101,507 |
|
|
1,470,000 |
|
Heritage Harbour South Community Development District, FL, Capital Improvement Revenue Bonds (Series 2002B), 5.40% (Original Issue Yield: 5.50%), 11/1/2008 |
|
NR |
|
|
1,477,115 |
|
|
1,960,000 |
|
Palm Beach County, FL Health Facilities Authority, Revenue Bonds, 5.625% (Adult Communities Total Services, Inc.)/(Original Issue Yield: 5.889%), 11/15/2020 |
|
BBB+/NR/NR |
|
|
2,007,961 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
6,366,461 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
Georgia--2.8% |
|
|
|
|
|
|
$ |
500,000 |
|
Cherokee County, GA School System, UT GO Bonds, 5.00% (MBIA INS), 8/1/2011 |
|
AAA/Aaa/NR |
|
$ |
574,810 |
|
|
1,500,000 |
|
La Grange, GA, Water & Sewer Refunding Revenue Bonds, 4.50% (AMBAC INS), 1/1/2010 |
|
AAA/Aaa/AAA |
|
|
1,659,495 |
|
|
2,115,000 |
|
Municipal Electric Authority of Georgia, Revenue Bonds (Series 2002A), 5.25% (MBIA INS), 11/1/2015 |
|
AAA/Aaa/NR |
|
|
2,423,473 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
4,657,778 |
|
|
||||||||
|
|
|
|
Hawaii--0.9% |
|
|
|
|
|
|
|
1,550,000 |
|
Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 7.00% (Kahala Nui)/(Original Issue Yield: 7.00%), 11/15/2012 |
|
NR |
|
|
1,586,704 |
|
|
||||||||
|
|
|
|
Illinois--3.2% |
|
|
|
|
|
|
|
1,000,000 |
|
Chicago, IL Board of Education, UT GO Bonds (Series 2003A), 5.25% (MBIA INS), 12/1/2012 |
|
AAA/Aaa/AAA |
|
|
1,172,830 |
|
|
1,790,000 |
|
Chicago, IL O'Hare International Airport, Second Lien Passenger Facilities Revenue Bonds (Series B), 5.50% (AMBAC INS), 1/1/2015 |
|
AAA/Aaa/AAA |
|
|
2,047,491 |
|
|
1,000,000 |
|
Chicago, IL Special Assessment, Improvement Bonds (Series 2002), 6.625% (Lakeshore East Project)/(Original Issue Yield: 6.637%), 12/1/2022 |
|
NR |
|
|
1,010,420 |
|
|
1,000,000 |
|
Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.00% (Augustana College)/(Original Issue Yield: 5.05%), 10/1/2014 |
|
NR/Baa1/NR |
|
|
1,061,440 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,292,181 |
|
|
||||||||
|
|
|
|
Kansas--1.4% |
|
|
|
|
|
|
|
2,000,000 |
|
Wichita, KS, Water & Sewer Utility, Revenue Bonds (Series 2003), 5.00% (FGIC INS), 10/1/2011 |
|
AAA/Aaa/NR |
|
|
2,304,160 |
|
|
||||||||
|
|
|
|
Kentucky--2.0% |
|
|
|
|
|
|
|
3,000,000 |
|
Kentucky EDFA, Revenue Bonds (Series A), 6.25% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.45%), 10/1/2012 |
|
NR/NR/BBB+ |
|
|
3,253,380 |
|
|
||||||||
|
|
|
|
Louisiana--3.2% |
|
|
|
|
|
|
|
1,535,000 |
|
Louisiana Local Government Environmental Facilities Community Development Authority, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(MBIA INS), 12/1/2014 |
|
AAA/Aaa/AAA |
|
|
1,795,321 |
|
|
1,630,000 |
|
Louisiana Local Government Environmental Facilities Community Development Authority, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(MBIA INS), 12/1/2015 |
|
AAA/Aaa/AAA |
|
|
1,891,713 |
|
|
1,500,000 |
|
West Feliciana Parish, LA, PCR Bonds, 7.00% (Entergy Gulf States, Inc.), 11/1/2015 |
|
BB+/Ba1/NR |
|
|
1,537,020 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,224,054 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
Massachusetts--3.6% |
|
|
|
|
|
|
$ |
2,000,000 |
|
Commonwealth of Massachusetts, LT GO Bonds (Series C), 5.50% (FSA INS), 11/1/2010 |
|
AAA/Aaa/AAA |
|
$ |
2,361,220 |
|
|
1,000,000 |
|
Commonwealth of Massachusetts, Refunding LT GO Bonds (Series 1997A), 5.75% (FGIC INS), 8/1/2008 |
|
AAA/Aaa/AAA |
|
|
1,172,110 |
|
|
2,105,000 |
|
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue Bonds (Nuclear Project 3-A), 5.00% (MBIA INS), 7/1/2011 |
|
AAA/Aaa/AAA |
|
|
2,391,490 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,924,820 |
|
|
||||||||
|
|
|
|
Michigan--3.3% |
|
|
|
|
|
|
|
2,000,000 |
|
Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.), 5/1/2018 |
|
BBB/Baa2/NR |
|
|
2,040,900 |
|
|
1,000,000 |
|
Grand Rapids & Kent County, MI Joint Building Authority, Revenue Bonds, 5.25%, 12/1/2011 |
|
AAA/Aaa/NR |
|
|
1,169,970 |
|
|
2,000,000 |
|
Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds (Series 2003A), 5.625% (Henry Ford Health System, MI), 3/1/2017 |
|
A-/A1/NR |
|
|
2,194,940 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
5,405,810 |
|
|
||||||||
|
|
|
|
Mississippi--2.4% |
|
|
|
|
|
|
|
2,500,000 |
|
Lowndes County, MS Solid Waste Disposal, Refunding PCRB, (Series 1992B), 6.70% (Weyerhaeuser Co.), 4/1/2022 |
|
BBB/Baa2/NR |
|
|
2,898,875 |
|
|
1,000,000 |
|
Mississippi Hospital Equipment & Facilities Authority, Refunding & Improvement Revenue Bonds, 5.75% (Southwest Mississippi Regional Medical Center)/(Original Issue Yield: 5.85%), 4/1/2023 |
|
BBB+/NR/NR |
|
|
1,021,350 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,920,225 |
|
|
||||||||
|
|
|
|
Missouri--2.4% |
|
|
|
|
|
|
|
1,450,000 |
|
St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA INS), 7/1/2009 |
|
AAA/Aaa/AAA |
|
|
1,677,781 |
|
|
1,060,000 |
|
St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA INS), 7/1/2010 |
|
AAA/Aaa/AAA |
|
|
1,229,165 |
|
|
910,000 |
|
St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA INS), 7/1/2011 |
|
AAA/Aaa/AAA |
|
|
1,057,793 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,964,739 |
|
|
||||||||
|
|
|
|
Nevada--1.9% |
|
|
|
|
|
|
|
2,000,000 |
|
Clark County, NV, IDRB, (Series 2003C), 5.45% TOBs (Southwest Gas Corp.), Mandatory Tender 3/1/2013 |
|
BBB-/Baa2/NR |
|
|
2,067,080 |
|
|
1,000,000 |
|
North Las Vegas, NV, Special Improvement District No. 60, Local Improvement Special Assessment Bonds (Series 2002), 6.40% (Aliante), 12/1/2022 |
|
NR |
|
|
1,018,870 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,085,950 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
New Jersey--1.4% |
|
|
|
|
|
|
$ |
1,000,000 |
|
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.00% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.25%), 7/1/2013 |
|
BB+/NR/BBB- |
|
$ |
1,001,440 |
|
|
1,250,000 |
|
New Jersey State Transportation Corp., Certificates of Participation (Series 1999A), 5.00% (AMBAC INS), 9/15/2007 |
|
AAA/Aaa/AAA |
|
|
1,406,850 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
2,408,290 |
|
|
||||||||
|
|
|
|
New Mexico--0.8% |
|
|
|
|
|
|
|
1,300,000 |
|
Farmington, NM, Refunding Revenue Bonds (Series 2002A), 6.375% TOBs (El Paso Electric Co.), Mandatory Tender 8/1/2005 |
|
BB+/Ba1/NR |
|
|
1,327,898 |
|
|
||||||||
|
|
|
|
New York--7.3% |
|
|
|
|
|
|
|
2,000,000 |
|
Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.15%), 7/1/2020 |
|
NR/Baa1/NR |
|
|
2,064,720 |
|
|
4,165,000 |
|
Metropolitan Transportation Authority, NY, Refunding Transportation Revenue Bonds (Series 2002F), 5.00% (MBIA INS), 11/15/2011 |
|
AAA/Aaa/AAA |
|
|
4,802,661 |
|
|
2,750,000 |
|
New York City, NY, UT GO Bonds (2002 Subseries A-1), 5.25% (MBIA INS), 11/1/2014 |
|
AAA/Aaa/AAA |
|
|
3,154,553 |
|
|
1,795,000 |
|
New York State Urban Development Corp., Correctional & Youth Facilities Service Contract Bonds (Series 2002C), 4.00% (XL Capital Assurance, Inc. INS), 1/1/2010 |
|
AAA/Aaa/AAA |
|
|
1,924,258 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
11,946,192 |
|
|
||||||||
|
|
|
|
North Carolina--4.1% |
|
|
|
|
|
|
|
1,000,000 |
|
Mecklenburg County, NC, UT GO Bonds (Series B), 4.40%, 2/1/2008 |
|
AAA/Aaa/AAA |
|
|
1,105,290 |
|
|
1,000,000 |
|
North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds (SeriesD), 5.50%, 1/1/2014 |
|
BBB/Baa3/BBB+ |
|
|
1,093,140 |
|
|
3,000,000 |
|
North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.50% (Catawba Electric), 1/1/2014 |
|
BBB+/Baa1/BBB+ |
|
|
3,387,150 |
|
|
1,000,000 |
|
Wake County, NC, UT GO Bonds, 4.50%, 3/1/2010 |
|
AAA/Aaa/AAA |
|
|
1,117,530 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
6,703,110 |
|
|
||||||||
|
|
|
|
Ohio--1.9% |
|
|
|
|
|
|
|
3,000,000 |
|
Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% (Cleveland Electric Illuminating Co.), 12/1/2013 |
|
BBB-/Baa3/NR |
|
|
3,162,360 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
Oregon--0.6% |
|
|
|
|
|
|
$ |
1,000,000 |
|
Yamhill County, OR Hospital Authority, Revenue Bonds, 6.50% (Friendsview Retirement Community), 12/1/2018 |
|
NR |
|
$ |
1,004,340 |
|
|
||||||||
|
|
|
|
Pennsylvania--10.9% |
|
|
|
|
|
|
|
1,400,000 |
|
Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.30%), 11/15/2015 |
|
B+/B1/B+ |
|
|
1,582,448 |
|
|
400,000 |
|
Crawford County, PA Hospital Authority, Senior Living Facilities Revenue Bonds (Series 1999), 6.125% (Wesbury United Methodist Community Obligated Group)/(Original Issue Yield: 6.32%), 8/15/2019 |
|
NR/BBB- |
|
|
399,384 |
|
|
1,550,000 |
|
Cumberland County, PA Municipal Authority, Revenue Bonds (Series 2002A), 6.00% (Wesley Affiliated Services, Inc. Obligated Group), 1/1/2013 |
|
NR |
|
|
1,563,469 |
|
|
2,500,000 |
|
Pennsylvania State Higher Education Facilities Authority, Health System Revenue Bonds (Series A), 6.25% (UPMC Health System), 1/15/2018 |
|
A/NR/NR |
|
|
2,789,675 |
|
|
1,115,000 |
|
Pennsylvania State Higher Education Facilities Authority, Refunding Revenue Bonds, 5.25% (St. Joseph's University)/(Radian Asset Assurance INS), 12/15/2017 |
|
AA/NR/NR |
|
|
1,236,613 |
|
|
3,975,000 |
|
Pennsylvania State IDA, EDRB, 5.25% (AMBAC INS), 7/1/2011 |
|
AAA/Aaa/AAA |
|
|
4,633,022 |
|
|
1,475,000 |
|
Philadelphia, PA Gas Works, Revenue Bonds (Sixteenth Series), 5.25% (FSA INS), 7/1/2008 |
|
AAA/Aaa/AAA |
|
|
1,692,238 |
|
|
1,000,000 |
|
Philadelphia, PA Water & Wastewater System, Refunding Revenue Bonds, 5.25% (AMBAC INS), 12/15/2011 |
|
AAA/Aaa/AAA |
|
|
1,173,020 |
|
|
2,615,000 |
|
State Public School Building Authority, PA, Revenue Bonds, 5.25% (MBIA INS), 9/1/2008 |
|
AAA/Aaa/AAA |
|
|
2,877,886 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
17,947,755 |
|
|
||||||||
|
|
|
|
South Carolina--0.7% |
|
|
|
|
|
|
|
1,000,000 |
|
Georgetown County, SC Environmental Improvements, Refunding Revenue Bonds (Series 2000A), 5.95% (International Paper Co.), 3/15/2014 |
|
BBB/Baa2/NR |
|
|
1,100,330 |
|
|
||||||||
|
|
|
|
South Dakota--1.5% |
|
|
|
|
|
|
|
300,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.05% (Westhills Village Retirement Community), 9/1/2014 |
|
A-/NR/NR |
|
|
312,786 |
|
|
500,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.15% (Westhills Village Retirement Community), 9/1/2015 |
|
A-/NR/NR |
|
|
520,915 |
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
South Dakota--continued |
|
|
|
|
|
|
$ |
445,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.20% (Westhills Village Retirement Community), 9/1/2016 |
|
A-/NR/NR |
|
$ |
463,459 |
|
|
585,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.25% (Westhills Village Retirement Community), 9/1/2017 |
|
A-/NR/NR |
|
|
609,348 |
|
|
520,000 |
|
South Dakota State Health & Educational Authority, Revenue Bonds, 5.35% (Westhills Village Retirement Community), 9/1/2018 |
|
A-/NR/NR |
|
|
540,686 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
2,447,194 |
|
|
||||||||
|
|
|
|
Texas--6.5% |
|
|
|
|
|
|
|
1,000,000 |
|
Abilene, TX Health Facilites Development Corp., Retirement Facilities Revenue Bonds (Series 2003A), 6.50% (Sears Methodist Retirement), 11/15/2020 |
|
NR |
|
|
1,010,960 |
|
|
2,975,000 |
|
Austin, TX Electric Utility System, Refunding Revenue Bonds (Series 2002A), 5.50% (AMBAC INS), 11/15/2012 |
|
AAA/Aaa/AAA |
|
|
3,550,484 |
|
|
1,500,000 |
|
Houston, TX Airport System, Subordinated Lien Revenue Bonds, 5.25% (FSA INS), 7/1/2012 |
|
AAA/Aaa/AAA |
|
|
1,746,525 |
|
|
1,475,000 |
|
Houston, TX Hotel Occupancy Tax, Convention & Entertainment Special Revenue Bonds (Series 2001B), 5.375% (AMBAC INS), 9/1/2013 |
|
AAA/Aaa/AAA |
|
|
1,699,288 |
|
|
1,500,000 |
|
North Central Texas HFDC, Revenue Bonds, 5.50% (Baylor Health Care System), 5/15/2007 |
|
AA-/Aa3/NR |
|
|
1,673,670 |
|
|
1,000,000 |
|
Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.25% (Mother Frances Hospital), 7/1/2012 |
|
NR/Baa1/BBB+ |
|
|
1,064,980 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
10,745,907 |
|
|
||||||||
|
|
|
|
Virginia--1.9% |
|
|
|
|
|
|
|
1,000,000 |
|
Bell Creek, VA, CDA, Special Assessment Revenue Bonds (Series 2003), 6.75%, 3/1/2022 |
|
NR |
|
|
1,017,060 |
|
|
1,000,000 |
|
Broad Street Community Development Authority, VA, Revenue Bonds, 7.10% (Original Issue Yield: 7.15%), 6/1/2016 |
|
NR |
|
|
1,002,800 |
|
|
1,000,000 |
|
Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(Original Issue Yield: 7.50%), 12/1/2023 |
|
NR |
|
|
1,045,720 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,065,580 |
|
|
||||||||
|
Principal |
|
|
Credit |
1 |
|
Value |
||
|
|
|
|
INTERMEDIATE AND LONG-TERM |
|
|
|
|
|
|
|
|
|
Washington--5.8% |
|
|
|
|
|
|
$ |
2,000,000 |
|
Seattle, WA Municipal Light & Power, Revenue Refunding Bonds, 4.375% (FSA INS), 12/1/2009 |
|
AAA/Aaa/AAA |
|
$ |
2,223,780 |
|
|
1,005,000 |
|
Snohomish County, WA Public Utility District No. 001, Refunding Generation System Revenue Bonds, 5.25% (FSA INS), 12/1/2012 |
|
AAA/Aaa/AAA |
|
|
1,175,991 |
|
|
1,500,000 |
|
Tobacco Settlement Authority, WA, Tobacco Settlement Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.65%), 6/1/2026 |
|
A-/A3/NR |
|
|
1,442,145 |
|
|
1,000,000 |
|
Washington State Public Power Supply System, Nuclear Project No, 2 Revenue Refunding Bonds (Series 1992A), 6.30% (Energy Northwest, WA)/(Original Issue Yield: 6.40%), 7/1/2012 |
|
AA-/Aa1/AA- |
|
|
1,231,180 |
|
|
1,435,000 |
|
Yakima County, WA, LT GO Bonds, 5.00% (AMBAC INS), 12/1/2010 |
|
NR/AAA/AAA |
|
|
1,650,236 |
|
|
1,495,000 |
|
Yakima County, WA, LT GO Bonds, 5.25% (AMBAC INS), 12/1/2011 |
|
NR/AAA/AAA |
|
|
1,749,105 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
9,472,437 |
|
|
||||||||
|
|
|
|
Wisconsin--1.9% |
|
|
|
|
|
|
|
2,000,000 |
|
Wisconsin State HEFA, Revenue Bonds, 5.75% (SynergyHealth, Inc.), 11/15/2015 |
|
BBB+/NR/A- |
|
|
2,149,000 |
|
|
1,000,000 |
|
Wisconsin State HEFA, Revenue Bonds, 7.125% (Community Memorial Hospital)/(Original Issue Yield: 7.25%), 1/15/2022 |
|
NR |
|
|
1,013,480 |
|
|
||||||||
|
|
|
|
TOTAL |
|
|
|
|
3,162,480 |
|
|
||||||||
|
|
|
|
TOTAL LONG-TERM MUNICIPALS (IDENTIFIED COST $157,976,713) |
|
|
|
|
164,269,516 |
|
|
||||||||
|
|
|
|
SHORT-TERM MUNICIPAL--0.1% |
|
|
|
|
|
|
|
|
|
New York--0.1% |
|
|
|
|
|
|
|
100,000 |
|
New York State Dormitory Authority, (Series 1990B) Daily VRDNs (Cornell University)/(J.P. Morgan Chase Bank LIQ) |
|
A-1+/VMIG1/NR |
|
|
100,000 |
|
|
||||||||
|
|
|
|
TOTAL INVESTMENTS--100.0% |
|
|
|
$ |
164,369,516 |
|
|
||||||||
1 Current credit ratings provided by Standard and Poor's, Moody's Investors Service and Fitch Ratings, respectively, are unaudited.
2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the Fund's Board of Trustees. At May 31, 2003 these securities amounted to $1,779,878 which represents 1.1% of market value.
3 The cost of investments for federal tax purposes amounts to $158,076,713.
Note: The categories of investments are shown as a percentage of total market value at May 31, 2003.
The following acronyms are used throughout this portfolio:
|
AMBAC |
--American Municipal Bond Assurance Corporation |
|
CDA |
--Community Development Administration |
|
EDFA |
--Economic Development Financing Authority |
|
EDRB |
--Economic Development Revenue Bond |
|
FGIC |
--Financial Guaranty Insurance Corporation |
|
FSA |
--Financial Security Assurance |
|
GO |
--General Obligation |
|
HDA |
--Hospital Development Authority |
|
HEFA |
--Health and Education Facilities Authority |
|
HFDC |
--Health Facility Development Corporation |
|
IDA |
--Industrial Development Authority |
|
IDRB |
--Industrial Development Revenue Board |
|
INS |
--Insured |
|
LIQ |
--Liquidity Agreement |
|
LT |
--Limited Tax |
|
MBIA |
--Municipal Bond Insurance Association |
|
PCR |
--Pollution Control Revenue |
|
PCRB |
--Pollution Control Revenue Bond |
|
TOBs |
--Tender Option Bonds |
|
UT |
--Unlimited Tax |
|
VRDNs |
--Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
May 31, 2003 (unaudited)
|
|
|
Federated |
|
|
|
Federated Premier |
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Investments in securities, at value |
|
$ |
145,328,485 |
|
|
$ |
164,369,516 |
|
|
Cash |
|
|
14,151 |
|
|
|
69,186 |
|
|
Income receivable |
|
|
2,178,443 |
|
|
|
2,224,668 |
|
|
Prepaid expenses |
|
|
29,391 |
|
|
|
70,764 |
|
|
|
||||||||
|
TOTAL ASSETS |
|
|
147,550,470 |
|
|
|
166,734,134 |
|
|
|
||||||||
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Payable for investments purchased |
|
|
1,000,184 |
|
|
|
-- |
|
|
Net payable for swap contracts |
|
|
636,729 |
|
|
|
1,560,702 |
|
|
Income distribution payable--Common Shares |
|
|
511,550 |
|
|
|
434,187 |
|
|
Income distribution payable--Preferred Shares |
|
|
3,411 |
|
|
|
8,090 |
|
|
Accrued expenses |
|
|
17,330 |
|
|
|
25,775 |
|
|
|
||||||||
|
TOTAL LIABILITIES |
|
|
2,169,204 |
|
|
|
2,028,754 |
|
|
|
||||||||
|
Auction Market Preferred Shares (2,147 and 2,441 shares, respectively, authorized and issued at $25,000 per share) |
|
$ |
53,675,000 |
|
|
$ |
61,025,000 |
|
|
|
||||||||
|
Net Assets Applicable to Common Shares Consist of: |
|
|
|
|
|
|
|
|
|
Paid in capital |
|
$ |
86,647,727 |
|
|
$ |
98,562,141 |
|
|
Net unrealized appreciation of investments and swap contracts |
|
|
4,764,731 |
|
|
|
4,732,101 |
|
|
Accumulated net realized gain on investments |
|
|
56,050 |
|
|
|
95,765 |
|
|
Undistributed net investment income |
|
|
237,758 |
|
|
|
290,373 |
|
|
|
||||||||
|
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES |
|
$ |
91,706,266 |
|
|
$ |
103,680,380 |
|
|
|
||||||||
|
Common Shares Outstanding |
|
|
6,108,058 |
|
|
|
6,946,981 |
|
|
|
||||||||
|
Net asset value |
|
|
$15.01 |
|
|
|
$14.92 |
|
|
|
||||||||
|
Investments, at identified cost |
|
$ |
139,927,025 |
|
|
$ |
158,076,713 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
Period Ended May 31, 2003 (unaudited)1
|
|
|
Federated |
|
|
|
Federated Premier |
|
|
|
Investment Income: |
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
2,765,734 |
|
|
$ |
2,583,801 |
|
|
|
||||||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
Investment adviser fee |
|
|
294,071 |
|
|
|
332,323 |
|
|
Administrative personnel and services fee |
|
|
53,821 |
|
|
|
54,303 |
|
|
Custodian fees |
|
|
2,234 |
|
|
|
2,421 |
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
14,969 |
|
|
|
15,655 |
|
|
Directors'/Trustees' fees |
|
|
439 |
|
|
|
493 |
|
|
Auditing fees |
|
|
9,147 |
|
|
|
9,609 |
|
|
Legal fees |
|
|
3,005 |
|
|
|
3,219 |
|
|
Portfolio accounting fees |
|
|
25,895 |
|
|
|
27,416 |
|
|
Printing and postage |
|
|
6,009 |
|
|
|
6,439 |
|
|
Insurance premiums |
|
|
638 |
|
|
|
670 |
|
|
Auction agent fees |
|
|
1,625 |
|
|
|
1,625 |
|
|
Trailer commission fees |
|
|
37,274 |
|
|
|
43,226 |
|
|
Miscellaneous |
|
|
16,522 |
|
|
|
17,575 |
|
|
|
||||||||
|
TOTAL EXPENSES |
|
|
465,649 |
|
|
|
514,974 |
|
|
|
||||||||
|
Waivers: |
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
|
(106,935 |
) |
|
|
(120,845 |
) |
|
Waiver of administrative personnel and services fee |
|
|
(48,048 |
) |
|
|
(34,129 |
) |
|
|
||||||||
|
TOTAL WAIVERS |
|
|
(154,983 |
) |
|
|
(154,974 |
) |
|
|
||||||||
|
Net expenses |
|
|
310,666 |
|
|
|
360,000 |
|
|
|
||||||||
|
Net investment income |
|
|
2,455,068 |
|
|
|
2,223,801 |
|
|
|
||||||||
|
Realized and Unrealized Gain (Loss) on Investments and Swap Contracts: |
|
|
|
|
|
|
|
|
|
Net realized gain on investments |
|
|
56,050 |
|
|
|
95,765 |
|
|
Net change in unrealized appreciation of investments |
|
|
5,401,460 |
|
|
|
6,292,803 |
|
|
Net change in unrealized depreciation of swap contracts |
|
|
(636,729 |
) |
|
|
(1,560,702 |
) |
|
|
||||||||
|
Net realized and unrealized gain on investments and swap contracts |
|
|
4,820,781 |
|
|
|
4,827,866 |
|
|
|
||||||||
|
Income distributions declared to Preferred Shareholders |
|
|
(171,306 |
) |
|
|
(196,682 |
) |
|
|
||||||||
|
Change in net assets resulting from operations applicable to common shares |
|
$ |
7,104,543 |
|
|
$ |
6,854,985 |
|
|
|
||||||||
1 For the period from December 20, 2002 (date of initial public investment) to May 31, 2003.
See Notes which are an integral part of the Financial Statements
|
Period Ended May 31, 2003 (unaudited)1 |
|
Federated |
|
|
Federated Premier |
|
||
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
2,455,068 |
|
|
$ |
2,223,801 |
|
|
Net realized gain on investments |
|
|
56,050 |
|
|
|
95,765 |
|
|
Net change in unrealized appreciation/depreciation of investments and swap contracts |
|
|
4,764,731 |
|
|
|
4,732,101 |
|
|
Distributions from net investment income -- Preferred Shares |
|
|
(171,306 |
) |
|
|
(196,682 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHARES |
|
|
7,104,543 |
|
|
|
6,854,985 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income -- Common Shares |
|
|
(2,046,004 |
) |
|
|
(1,736,746 |
) |
|
|
||||||||
|
Share Transactions Applicable to Common Shares: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
86,632,041 |
|
|
|
98,562,141 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
15,686 |
|
|
|
-- |
|
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
86,647,727 |
|
|
|
98,562,141 |
|
|
|
||||||||
|
Change in net assets |
|
|
91,706,266 |
|
|
|
103,680,380 |
|
|
|
||||||||
|
Net Assets Applicable to Common Shares: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
-- |
|
|
|
-- |
|
|
|
||||||||
|
End of period |
|
$ |
91,706,266 |
|
|
$ |
103,680,380 |
|
|
|
||||||||
|
Undistributed net investment income included at end of period |
|
$ |
237,758 |
|
|
$ |
290,373 |
|
|
|
||||||||
1 For the period from December 20, 2002 (date of initial public investment) to May 31, 2003.
See Notes which are an integral part of the Financial Statements
May 31, 2003 (unaudited)
Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund (individually referred to as the "Fund", or collectively as the "Funds") are registered under the Investment Company Act of 1940, as amended (the "Act"), as diversified, closed-end management investment companies.
Prior to commencing operations on December 20, 2002, Federated Premier Municipal Income Fund had no operations other than matters relating to its organization and registration and the sale and issuance of 6,981 common shares of beneficial interest ("common shares") to Federated Investment Management Company (the "Investment Adviser"). The Fund issued 5,850,000 common shares in its initial public offering on December 20, 2002. These shares were issued at $15.00 per share before underwriting discount of $0.68 per share. Offering costs of $175,500 (representing $0.03 per share) were offset against proceeds of the offering and have been charged to paid-in capital. The Investment Adviser has paid all offering costs (other than underwriting discount) and organizational expenses regarding the common share offering which exceeded $0.03 per share of the Fund. An additional 250,000 common shares were issued on February 3, 2003 at $15.00 per share. On February 13, 2003, the Fund issued 2,147 preferred shares at $25,000 per share.
Prior to commencing operations on December 20, 2002, Federated Premier Intermediate Municipal Income Fund had no operations other than matters relating to its organization and registration and the sale and issuance of 6,981 common shares to the Investment Adviser. The Fund issued 6,400,000 common shares in its initial public offering on December 20, 2002. These shares were issued at $15.00 per share before underwriting discount of $0.68 per share. Offering costs of $192,000 (representing $0.03 per share) were offset against proceeds of the offering and have been charged to paid-in capital. The Investment Adviser has paid all offering costs (other than underwriting discount) and organizational expenses regarding the common share offering which exceeded $0.03 per share of the Fund. An additional 540,000 common shares were issued on February 3, 2003 at $15.00 per share. On February 13, 2003, the Fund issued 2,441 preferred shares at $25,000 per share.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").
Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").
Interest income and expenses are accrued daily. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and paid weekly. The dividend rate for both the Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund at May 31, 2003 was 1.230%. Non-cash dividends included in dividend income, if any, are recorded at fair value.
All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes.
It is the Funds' policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary.
The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Funds will not incur any registration costs upon such resale. The Funds' restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in good faith by the using methods approved by the Trustees.
The Funds may enter into swap contracts. A swap is an exchange of cash payments between a Fund and another party, which is based on a specific financial index. The value of the swap is adjusted daily and the change in value is recorded as unrealized appreciation or depreciation. When a swap contract is closed, the Fund recognizes a realized gain or loss. The swap contracts entered into by the Funds are on a forward selling basis. For the period ended May 31, 2003, the Funds had no realized gains on swap contracts.
Risks may arise upon entering into these agreements from the potential inability of the counterparties to meet the terms of their contract and from unanticipated changes in the value of the financial index on which the swap agreement is based. The Funds use swaps for hedging purposes to reduce their exposure interest rate fluctuations.
For the period ended May 31, 2003, the Funds had the following open swap contracts:
|
Federated Premier Municipal Income Fund |
|||||||||
|
Expiration |
|
Notional |
|
Swap Contract |
|
Current Market |
|
Unrealized |
|
|
10/17/2013 |
|
$13,000,000 |
|
3.714% Fixed |
|
3.122% |
|
$(636,729 |
) |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Federated Premier Intermediate Municipal Income Fund |
|||||||||
|
Expiration |
|
Notional |
|
Swap Contract |
Current Market |
|
Unrealized |
|
|
|
9/25/2013 |
|
$12,000,000 |
|
3.834% Fixed |
|
3.112% |
|
$ (717,216 |
) |
|
|
|||||||||
|
9/26/2013 |
|
5,000,000 |
|
3.795% Fixed |
|
3.112% |
|
(282,349 |
) |
|
|
|||||||||
|
9/30/2013 |
|
11,000,000 |
|
3.733% Fixed |
|
3.116% |
|
(561,137 |
) |
|
|
|||||||||
|
NET UNREALIZED DEPRECIATION |
|
|
|
|
|
$(1,560,702 |
) |
||
|
|
|||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment transactions are accounted for on a trade date basis.
The Declaration of Trust permits the Trustees to authorize an unlimited number of par value common shares ($0.01 per share).
Transactions in common shares were as follows:
|
Federated Premier Municipal Income Fund |
|
Period Ended |
|
Shares sold |
|
6,106,981 |
|
Shares issued to shareholders in payment of distributions declared |
|
1,077 |
|
|
||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
6,108,058 |
|
|
||
|
|
|
|
|
Federated Premier Intermediate Municipal Income Fund |
|
Period Ended |
|
Shares sold |
|
6,946,981 |
|
|
||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
6,946,981 |
|
|
||
At May 31, 2003, the following amounts apply for federal income tax purposes:
|
|
|
Cost of |
|
Unrealized |
|
Unrealized |
|
Net Unrealized |
|
Federated Premier Municipal Income Fund |
|
$139,927,025 |
|
$5,658,468 |
|
$257,008 |
|
$5,401,460 |
|
|
||||||||
|
Federated Premier Intermediate Municipal Income Fund |
|
$158,076,713 |
|
$6,504,959 |
|
$212,156 |
|
$6,292,803 |
|
|
||||||||
The Funds have entered into an Investment Management Agreement (the "Agreement") with Federated Investment Management Company (the "Adviser") to serve as investment manager to the Funds. Pursuant to the Agreement, each Fund pays the Adviser an annual management fee, payable daily, at the annual rate of 0.55% of each Fund's managed assets.
In order to reduce fund expenses, the Adviser has contractually agreed to waive a portion of its investment adviser fee at the annual rate of 0.20% of the average daily value of each Fund's managed assets, not inclusive of any assets attributable to any preferred shares that may be issued, from the commencement of operations through December 31, 2007, and for a declining amount thereafter through December 31, 2010.
Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class. FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.
FServ maintains the Funds' accounting records for which it receives a fee. The fee is based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses.
Each Fund has agreed to pay organizational and offering expenses of up to $0.03 per common share. The Adviser has agreed to pay organizational expenses and offering costs of each Fund that exceed $0.03 per common share.
During the year ended May 31, 2003, the Funds engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and were as follows:
|
|
Purchases |
|
Sales |
|
|
Federated Premier Municipal Income Fund |
|
$51,577,250 |
|
$77,210,000 |
|
|
||||
|
Federated Premier Intermediate Municipal Income Fund |
|
$68,777,250 |
|
$88,909,245 |
|
|
||||
Certain of the Officers and Trustees of the Funds are Officers and Directors or Trustees of the above companies.
On February 13, 2003, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund offered and currently have outstanding 2,147 and 2,441 Auction Market Preferred Shares ("AMPS"), respectively. The AMPS are redeemable at the option of the Funds at the redemption price of $25,000 per share plus an amount equal to accumulated, but unpaid dividends thereon through the redemption date.
Whenever AMPS are outstanding, common shareholders will not be entitled to receive any distributions from the Funds unless all accrued dividends on preferred shares have been paid, the Funds satisfy the 200% asset coverage requirement and certain other requirements imposed by any Nationally Recognized Statistical Ratings Organizations ("NRSROs") rating the preferred shares have been met. Should these requirements not be met, or should dividends accrued on the AMPS not be paid, the Funds may be restricted in their ability to declare dividends to common shareholders or may be required to redeem certain of the AMPS. At May 31, 2003, there were no such restrictions on the Funds.
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the period ended May 31, 2003, were as follows:
|
|
Purchases |
|
Sales |
|
|
Federated Premier Municipal Income Fund |
|
$176,308,119 |
|
$37,262,938 |
|
|
||||
|
Federated Premier Intermediate Municipal Income Fund |
|
$196,195,482 |
|
$37,903,958 |
|
|
||||
This Overview and Report is for shareholder information. This is not a Prospectus intended for use in the sale of Fund Shares. Statements and other information contained in this Overview and Report are as dated and subject to change.
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-245-0242 Ext. 8103 or email CEinfo@federatedinv.com.
Federated Investors
World-Class Investment Manager
Federated Investors' Closed-End Municipal Funds
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Call us at 1-800-245-0242 x8103 or
Email us at CEinfo@federatedinv.com
Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.
28583 (7/03)
Item 2. Code of Ethics
Not Applicable
Item 3. Audit Committee Financial Expert
Not Applicable
Item 4. Principal Accountant Fees and Services
Not Applicable
Items 5-6 [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies
Not Applicable
Item 8. [Reserved]
Item 9. Controls and Procedures
(a) The registrant's President and Treasurer have concluded that the
registrant's disclosure controls and procedures (as defined in rule 30a-2
under the Investment Company Act of 1940 (the "Act")) are effective in
design and operation and are sufficient to form the basis of the
certifications required by Rule 30a-2 under the Act, based on their
evaluation of these disclosure controls and procedures within 90 days of
the filing date of this report on Form N-CSR.
(b) There were no significant changes in the registrant's internal controls, or
the internal controls of its service providers, or in other factors that
could significantly affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10. Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Premier Municipal Income Fund
By /S/ Richard J. Thomas, Principal Financial Officer
Date July 28, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/ J. Christopher Donahue, Principal Executive Officer
Date July 28, 2003
By /S/ Richard J. Thomas, Principal Financial Officer
Date July 28, 2003