‡

The securities detailed in the table below are considered illiquid and restricted and represent 6.14% of net assets applicable to common shareholders as of December 31, 2005.

Illiquid and
Restricted Securities

Acquisition
Date

Acquisition
Cost ($)

Acquisition
Cost as a
Percentage
of Common
Net Assets (%)

Market
Value ($)

Market
Value as a
Percentage
of Common
Net Assets (%)

Harris County Texas Lease, 6.750%, 05/01/20

09/07/00

6,717,399

4.26

6,547,784

4.15

Houston Community College System Certificates of Participation,
7.875%, 06/15/25

04/22/02

3,007,095

1.91

3,135,408

1.99

9,724,494

6.17

9,683,192

6.14

(1)

Cost of investments shown approximates cost for federal income tax purposes. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at December 31, 2005 were $4,503,682 and $1,011,250, respectively, resulting in net unrealized appreciation of investments of $3,492,432.

(2)

The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized “matrix” systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities are fair valued. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. Securities traded in the over-the-counter (“OTC”) market are valued at the last bid price available on the valuation date prior to valuation.

AMBAC

- American Municipal Bond Assurance Corporation

FGIC

- Financial Guaranty Insurance Company

FSA

- Financial Security Assurance

GTD

- Guaranteed

HUD

- Housing and Urban Development

MBIA

- Municipal Bond Investors Assurance

NR

- Not Rated

PSF

- Permanent School Fund

XLCA

- XL Capital Assurance

Number of
Contracts

Contracts to Deliver

In
Exchange For ($)

Expiration
Dates

Unrealized
Depreciation ($)

125

U.S. Treasury Bond 20 Year Futures

13,922,352

March 2006

(351,086)

165

U.S. Treasury Note 10 Year Futures

17,823,207

March 2006

(228,824)

(579,910)