Putnam
Strategic Intermediate
Municipal Fund

Semiannual report
1 | 31 | 23

 

 

Message from the Trustees

March 10, 2023

Dear Fellow Shareholder:

Stock and bond markets rose in early 2023 as inflation continued to ease and the U.S. Federal Reserve moderated its interest-rate increases. Investors showed optimism that the Fed might slow the economy and reduce inflation without causing a recession. Still, caution may be warranted. While the Fed has reduced the size of its interest-rate increases, it also signaled that more rate hikes are likely if concerns persist about a resurgence in inflation.

Putnam’s investment teams believe a recession is possible this year or next. However, they also are finding what they believe to be attractive investment opportunities in a range of asset classes, including stocks and taxable and tax-exempt bonds. As active researchers, our teams analyze interest-rate and credit risks as they seek out investments for your fund. They also consider how stocks and bonds are likely to perform in uncertain economic conditions.

Thank you for investing with Putnam.

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 2.25%; had they, returns would have been lower. Performance for class A shares before their inception (9/20/93) is derived from the historical performance of class B shares. See page 3 and pages 9–12 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

Before August 28, 2020, the fund was managed with a materially different investment strategy and may have achieved materially different performance results under its current investment strategy from that shown for periods before this date.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group median is provided by Lipper, a Refinitiv company.

* The Putnam Strategic Intermediate Municipal Linked Benchmark represents the performance of the Bloomberg Municipal Bond Index through August 27, 2020, and the performance of the Bloomberg 3-15 Year Blend Municipal Bond Index thereafter.

† The fund’s primary benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, was introduced on 1/31/90, which post-dates the inception of the fund.

 

 

This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 1/31/23. See page 2 and pages 9–12 for additional fund performance information. Index descriptions can be found on pages 15–16.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

 

 

Garrett, how was the market environment for intermediate-term municipal bonds during the six-month period ended January 31, 2023?

After a challenging first few months, intermediate-term municipal bonds regained their footing. November 2022 was especially strong for the asset class, despite the Federal Reserve’s announcement of its fourth consecutive 0.75% interest-rate increase on November 3. Investors were heartened to see that the Consumer Price Index [CPI], a widely used measure of inflation, came in better than expected at 7.7% for October 2022. Investors interpreted this as evidence that the Fed was making progress in subduing stubbornly high prices. As the month ended, the Fed hinted it might temper the degree of interest-rate hikes as early as December 2022.

The CPI for November also showed progress, with year-over-year inflation falling to 7.1%. It was the smallest 12-month increase since December 2021. In our view, this gave the Fed room to raise its benchmark interest rate by only half a percentage point on December 15, 2022. However, Fed policymakers also signaled the fight against inflation was not over. Fed Chair Jerome Powell stated that “it will take

 

 

Allocations are shown as a percentage of the fund’s net assets as of 1/31/23. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

Credit qualities are shown as a percentage of the fund’s net assets as of 1/31/23. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time.

Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

 

 

substantially more evidence to give confidence that inflation is on a sustained downward path.” Minutes from the central bank’s policy meeting in December revealed that Fed officials agreed it would be appropriate to slow the pace of its aggressive rate hikes to minimize the risks to economic growth. At period-end, the Fed raised its benchmark rate by 0.25%, elevating its benchmark interest rate to a target range of 4.50%–4.75%.

Market technicals improved during the period as well. Demand rebounded amid the improvement in market sentiment. At the same time, new issue supply was well below average due to the sharp rise in interest rates. This imbalance aided returns. With these positive developments, November 2022’s return of 3.76% represented the strongest monthly return for the Bloomberg 3-15 Year Blend Municipal Bond Index [the fund’s primary benchmark] since 1990.

For the six months ended January 31, 2023, the fund’s primary benchmark returned 1.01%. Intermediate-term municipal bonds outperformed longer-term and shorter-term cohorts. From a credit perspective, investment-grade municipal bonds performed better than higher-yielding, lower-rated bonds, which aided our positioning.

What is your current assessment of the health of the municipal bond market?

Municipal credit fundamentals continue to be stable, in our view. Higher employment and increasing wages have bolstered tax receipts. Home values, a factor in property tax revenues, have been facing headwinds in the form of rising mortgage rates. We believe assessed values, another factor in taxes, should continue to reflect growth given the roughly two-year lag between tax assessments and actual property values.

State and local tax collections were up 16% year over year through the third quarter of 2022 compared with the same period in 2021 [most recent data available]. Unprecedented fiscal support during the Covid-19 pandemic, as well as strong economic growth during the second half of 2020 and 2021, put most state and local governments in their best fiscal shape in more than a decade, in our view. Municipal defaults are running near long-term averages as of January 31, 2023, and they remain a very small percentage of the market. As such, we believe the credit outlook remains favorable, though we continue to actively monitor the market. We expect economic conditions to slow during 2023, which could impact municipal bond credit quality, in our view.

How did the fund perform during the period?

For the six months ended January 31, 2023, the fund’s class A shares underperformed the primary and secondary benchmarks but outperformed the median return of its Lipper peer group, Intermediate Municipal Debt Funds.

What strategies or holdings influenced the fund’s performance during the reporting period?

During the early months of the reporting period, the Fed’s hawkish monetary policy and investors’ risk-averse sentiment contributed to a sharp sell-off. This propelled bond yields higher and bond prices, which move in the opposite direction of yields, lower. Credit spreads widened, presenting attractively priced investment opportunities, in our view. We moved the portfolio to a long duration position versus its Lipper peers by adding bonds with maturities in the 7- to 15-year range. Our additions were generally focused on higher-rated investment-grade bonds.

The fund held an overweight exposure to lower-investment-grade bonds and those rated A relative to the benchmark. We remain

 

 

cautious on lower-rated municipal bonds in general, given our view that the Fed’s aggressive tightening cycle could result in slower U.S. economic growth in 2023. However, we have found value in some of the upper tiers of the high-yield market. While credit spreads widened over the period, they were not excessively wide versus previous recessionary periods, in our view. The fund was invested in a wide range of sectors, including public power, airport, and local general obligation bonds.

The fund remained underweight in its exposure to Puerto Rico municipal debt relative to its Lipper peer group. However, we note that the U.S. territory has experienced recent improvement in credit fundamentals since coming out of bankruptcy in March 2022. We continue to closely monitor Puerto Rico’s credit fundamentals and remain vigilant for investment opportunities.

What do you see on the horizon that could influence your management of the fund?

While it appears to us that inflation has peaked in this cycle, we believe U.S. economic data remains relatively strong. Especially noteworthy is the low U.S. unemployment rate and strong consumer spending. We presume this will keep the Fed on track to continue ratcheting up interest rates to slow economic growth and the jobs market. That said, we think the bulk of the tightening is behind us and Fed monetary policy is set to enter the fine-tuning stage of the cycle. Market expectations are for the Fed to complete its tightening cycle by the summer of 2023.

Seasonal factors are typically weaker in late winter and early spring but turn more favorable in late spring and summer months. Against this backdrop, we believe valuations offer investors attractive tax-free income, as well as the potential for price appreciation once the Fed concludes its monetary tightening cycle.

Thank you, Garrett, for your time and insights today.

This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

 

 

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period.

Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.

 

 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended January 31, 2023, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end and expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Before August 28, 2020, the fund was managed with a materially different investment strategy and may have achieved materially different performance results under its current investment strategy from that shown for periods before this date. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R6 and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Annualized fund performance Total return for periods ended 1/31/23

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 2.25% sales charge levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R6 and Y shares have no initial sales charge or CDSC. Performance for class A, C, and Y shares before their inception is derived from the historical performance of class B shares, adjusted for the applicable sales charge (or CDSC) and, for class C shares, the higher operating expenses for such shares. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.

Returns for periods of less than one year are not annualized.

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

Class B and C share performance reflects conversion to class A shares after eight years.

 

 

Comparative annualized index returns For periods ended 1/31/23

 

Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group median is provided by Lipper, a Refinitiv company.

^* The fund’s primary benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, was introduced on 1/31/90, which post-dates the inception of the fund.

^† The Putnam Strategic Intermediate Municipal Linked Benchmark represents the performance of the Bloomberg Municipal Bond Index through August 27, 2020, and the performance of the Bloomberg 3-15 Year Blend Municipal Bond Index thereafter.

^‡ Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 1/31/23, there were 223, 215, 193, 166, 125, and 26 funds, respectively, in this Lipper category.

 

 

Fund price and distribution information For the six-month period ended 1/31/23

 

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (2.25% for class A shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

¹ For some investors, investment income may be subject to the federal alternative minimum tax.

² Capital gains, if any, are taxable for federal and, in most cases, state purposes.

³ Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by share price before or after sales charge at period-end.

⁴ Assumes maximum 40.80% federal tax rate for 2022. Results for investors subject to lower tax rates would not be as advantageous.

⁵ Based only on investment income and calculated using the maximum offering price for each share class, in accordance with SEC guidelines.

 

 

Annualized fund performance as of most recent calendar quarter
Total return for periods ended 12/31/22

 

See the discussion following the fund performance table on page 8 for information about the calculation of fund performance.

Returns for periods of less than one year are not annualized.

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

 

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

^* Restated to reflect current fees.

^† Expense ratios for each class are for the fund’s most recent fiscal half year. As a result of this, ratios may differ from expense ratios based on one-year data in the financial highlights.

 

 

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 8/1/22 to 1/31/23. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

 

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 1/31/23. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period (184); and then dividing that result by the number of days in the year (365).

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 1/31/23, use the following calculation method. To find the value of your investment on 8/1/22, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

 

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 1/31/23. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period (184); and then dividing that result by the number of days in the year (365).

 

 

Consider these risks before investing

Capital gains, if any, are taxable for federal and, in most cases, state purposes. Income from federally tax-exempt funds may be subject to state and local taxes. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Bond investments may be more susceptible to downgrades or defaults during economic downturns or other periods of economic stress. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The fund may invest significantly in particular segments of the tax-exempt debt market, making it more vulnerable to fluctuations in the values of the securities it holds than a fund that invests more broadly. Interest the fund receives might be taxable.

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could negatively impact the fund. You can lose money by investing in the fund.

 

 

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 2.25% maximum sales charge for class A shares.

Net asset value (NAV) is the price, or value, of one share of a mutual fund, without a sales charge. Net asset values fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class B shares are closed to new investments and are only available by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. They are not subject to an initial sales charge and may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

Class Y shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Fixed income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Bloomberg 3-15 Year Blend Municipal Bond Index is an unmanaged index composed of investment-grade municipal securities ranging from 2 and 17 years in maturity.

Bloomberg Municipal Bond Index is an unmanaged index of long-term, fixed-rate, investment-grade tax-exempt bonds.

Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed income securities.

 

 

ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

Putnam Strategic Intermediate Municipal Linked Benchmark represents the performance of the Bloomberg Municipal Bond Index through August 27, 2020, and the performance of the Bloomberg 3-15 Year Blend Municipal Bond Index thereafter.

S&P 500^® Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

BLOOMBERG^®  is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. You cannot invest directly in an index.

ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category medians reflect performance trends for funds within a category.

 

 

Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2022, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of January 31, 2023, Putnam employees had approximately $478,000,000 and the Trustees had approximately $64,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

 

 

Financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

 

 

The fund’s portfolio 1/31/23 (Unaudited)

Key to holding’s abbreviations

 

MUNICIPAL BONDS AND NOTES (96.8%)*	Rating**		Principal amount	Value
Alabama (0.9%)
Black Belt Energy Gas Dist., Gas Supply Mandatory Put Bonds (3/1/27), Ser. D-1, 4.00%, 7/1/52 Mandatory Put Bonds (6/1/27), 6/1/27	Aa1		$1,000,000	$1,018,635
Jefferson, Cnty. Rev. Bonds, (Refunding warrants)
5.00%, 9/15/34	AA		1,075,000	1,163,805
5.00%, 9/15/33	AA		125,000	136,121
Southeast Energy Auth. Commodity Supply
Mandatory Put Bonds (12/1/29), Ser. A-1, 5.50%, 1/1/53	A1		1,350,000	1,470,465
Mandatory Put Bonds (8/1/28), Ser. B-1, 5.00%, 5/1/53	A2		3,000,000	3,145,326
				6,934,352
Alaska (0.4%)
AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A
4.00%, 10/1/39	A+/F		2,445,000	2,447,994
4.00%, 10/1/38	A+/F		555,000	558,648
				3,006,642
Arizona (1.3%)
AZ State Indl. Dev. Auth. Rev. Bonds
(Equitable School Revolving Fund), Ser. A, 5.00%, 11/1/38	A		2,740,000	2,889,866
(Equitable School Revolving Fund, LLC), 5.00%, 11/1/33	A		1,000,000	1,081,766
Glendale, Indl. Dev. Auth. Sr. Living Fac. Rev. Bonds, (Royal Oaks Life Care Cmnty.)
4.00%, 5/15/31	BBB−/F		1,000,000	925,713
4.00%, 5/15/29	BBB−/F		1,000,000	946,047
Pima Cnty., Indl. Dev. Auth. Sr. Living 144A Rev. Bonds, (La Posada at Park Centre, Inc.), 6.25%, 11/15/35	BBB+/P		2,750,000	2,864,056
Salt Verde, Fin. Corp. Gas Rev. Bonds, 5.50%, 12/1/29	A3		1,000,000	1,102,881
				9,810,329

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
California (15.6%)
Anaheim, Union High School Dist. G.O. Bonds, 3.00%, 8/1/38	Aa2		$3,000,000	$2,714,738
Antioch, Unified School Dist. G.O. Bonds, BAM, 3.00%, 8/1/34	AA		1,185,000	1,175,507
CA Cmnty. Choice Fin. Auth. Mandatory Put Bonds (8/1/28), (Green Bonds), Ser. A-1, 4.00%, 5/1/53	A1		9,675,000	9,828,565
CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds, (Aster Apt.), Ser. A-1, 4.00%, 2/1/56	BB+/P		250,000	220,805
CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35	BBB+		900,149	872,821
CA Muni. Fin. Auth. VRDN (Chevron USA, Inc.), 0.65%, 11/1/35	VMIG 1		1,400,000	1,400,000
CA Pub. Fin. Auth. VRDN, (Sharp Hlth. Care Oblig. Group), Ser. C, 0.45%, 8/1/52	VMIG 1		1,000,000	1,000,000
CA State G.O. Bonds
5.00%, 2/1/32 (Prerefunded 2/1/23)	Aa2		10,000,000	10,000,000
3.00%, 10/1/36	Aa2		2,000,000	1,938,680
CA State Charter School Fin. Auth. 144A Rev. Bonds, (Aspire Pub. Schools), 5.00%, 8/1/36	BBB		3,225,000	3,294,893
CA State Enterprise Dev. Auth. Student Hsg. Rev. Bonds, (Provident Group-SDSU Properties, LLC), Ser. A, 5.00%, 8/1/28	Baa3		150,000	161,552
CA State Infrastructure & Econ. Dev. Bank
Mandatory Put Bonds (6/1/26), (Museum Associates), 2.36%, 12/1/50	A3		1,000,000	965,609
Mandatory Put Bonds (8/1/24), (CA Academy of Sciences), 2.01%, 8/1/47	A2		1,500,000	1,480,643
CA State Infrastructure & Econ. Dev. Bank Rev. Bonds, (Performing Arts Ctr. of Los Angeles Cnty.), 5.00%, 12/1/29	A		675,000	778,221
CA State Muni. Fin. Auth. Rev. Bonds
(CHF-Riverside II, LLC), 5.00%, 5/15/34	Baa3		915,000	968,856
(HumanGood Oblig. Group), Ser. A, 4.00%, 10/1/32	A−/F		1,000,000	1,023,503
CA State Poll. Control Fin. Auth. Rev. Bonds, (San Jose Wtr. Co.), 4.75%, 11/1/46	A		1,000,000	1,023,613
CA State Pub. Wks. Board Rev. Bonds, Ser. E, 5.00%, 9/1/34	Aa3		900,000	934,482
CA State U. Mandatory Put Bonds (11/1/26), Ser. B-2, 0.55%, 11/1/49	Aa2		1,000,000	893,024
CA Statewide Cmnty. Dev. Auth. 144A Rev. Bonds, (Lancer Edl. Student Hsg.), Ser. A, 3.00%, 6/1/29	BB/P		1,450,000	1,332,033
Chula Vista, Muni. Fin. Auth. Special Tax Bonds, 5.50%, 9/1/30	AA−		775,000	789,286
Golden State Tobacco Securitization Corp. Rev. Bonds, Ser. B-1, 3.85%, 6/1/50	BBB−		3,000,000	2,723,324
Imperial Cnty., Local Trans. Auth. Sales Tax Rev. Bonds, Ser. E, AGM, 5.00%, 6/1/32	AA		8,730,000	9,671,940
Indio, Pub. Fin. Auth. Rev. Bonds, Ser. A, BAM
5.00%, 11/1/33	AA		425,000	501,088
5.00%, 11/1/32	AA		350,000	415,738
5.00%, 11/1/31	AA		375,000	441,138
5.00%, 11/1/30	AA		400,000	466,565

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
California cont.
Indio, Pub. Fin. Auth. Rev. Bonds, Ser. A, BAM
5.00%, 11/1/29	AA		$310,000	$356,079
5.00%, 11/1/28	AA		275,000	310,517
Long Beach, Arpt. Syst. Rev. Bonds
Ser. B, AGM, 5.00%, 6/1/38	AA		300,000	340,493
Ser. B, AGM, 5.00%, 6/1/36	AA		250,000	290,124
Ser. A, AGM, 5.00%, 6/1/35	AA		300,000	354,723
Ser. B, AGM, 5.00%, 6/1/35	AA		300,000	354,723
Ser. A, AGM, 5.00%, 6/1/34	AA		400,000	478,348
Ser. B, AGM, 5.00%, 6/1/34	AA		200,000	239,174
Los Angeles Cnty., Dev. Auth. Multi-Fam. Hsg. Mandatory Put Bonds (7/1/26), (VA Building 402), 3.375%, 1/1/46	Aaa		3,250,000	3,274,994
Los Angeles, Dept. of Arpt. Rev. Bonds
Ser. H, 5.50%, 5/15/36	Aa2		3,000,000	3,487,361
5.00%, 5/15/31	Aa3		1,500,000	1,730,459
Ser. A, 5.00%, 5/15/28	Aa3		1,500,000	1,659,133
Ser. C, 5.00%, 5/15/28	Aa3		2,175,000	2,405,743
Ser. A, 4.00%, 5/15/39	Aa3		1,500,000	1,493,145
4.00%, 5/15/35	Aa3		600,000	615,894
Los Angeles, Dept. of Arpts. Rev. Bonds, Ser. A, 5.00%, 5/15/34	Aa2		5,700,000	5,935,200
Los Angeles, Dept. of Wtr. & Pwr. Rev. Bonds
Ser. A, 5.00%, 7/1/42	Aa2		7,870,000	8,430,692
Ser. B, 5.00%, 7/1/40	Aa2		2,800,000	3,252,054
Port of Oakland Rev. Bonds
5.00%, 5/1/28	A2		750,000	826,725
1.081%, 5/1/24	A1		620,000	593,127
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. A
5.00%, 5/1/35	A1		1,900,000	2,119,345
5.00%, 5/1/34	A1		4,585,000	5,165,259
5.00%, 5/1/30	A1		1,000,000	1,125,852
5.00%, 5/1/29	A1		2,000,000	2,228,097
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. VRDN, Ser. B, 1.05%, 5/1/58	VMIG 1		3,500,000	3,500,000
San Francisco, Pub. Fac. Fin. Auth. Rev. Bonds
5.00%, 6/1/39	AA+		475,000	533,816
5.00%, 6/1/38	AA+		400,000	450,697
5.00%, 6/1/37	AA+		350,000	396,131
5.00%, 6/1/36	AA+		325,000	370,379
5.00%, 6/1/35	AA+		280,000	322,001
5.00%, 6/1/34	AA+		250,000	290,170
5.00%, 6/1/33	AA+		255,000	296,793
Sierra View, Local Hlth. Care Dist. Rev. Bonds
5.00%, 7/1/30	A/F		620,000	696,112
5.00%, 7/1/27	A/F		625,000	678,201
4.00%, 7/1/26	A/F		300,000	310,204
4.00%, 7/1/25	A/F		290,000	296,600
4.00%, 7/1/24	A/F		235,000	238,241
4.00%, 7/1/23	A/F		260,000	261,109

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
California cont.
U. of CA VRDN, Ser. AL-4, 0.40%, 5/15/48	VMIG 1		$1,800,000	$1,800,000
Yucaipa Special Tax Bonds, (Cmnty. Fac. Dist. No. 98-1 Chapman Heights), 5.375%, 9/1/30	A		375,000	376,875
				114,901,214
Colorado (1.6%)
CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (CommonSpirit Hlth.), Ser. A, 5.00%, 11/1/25	A−		350,000	369,041
Denver City & Cnty., Arpt. Rev. Bonds
Ser. D, 5.75%, 11/15/36	Aa3		3,000,000	3,791,688
Ser. B, 5.00%, 11/15/42	Aa3		1,125,000	1,268,311
E-470 Pub. Hwy. Auth. Mandatory Put Bonds (9/1/24), Ser. B, 3.231%, 9/1/39	A2		4,000,000	3,983,526
Regl. Trans. Dist. Rev. Bonds, (Denver Transit Partners, LLC), 3.00%, 7/15/37	Baa1		850,000	734,282
Vauxmont, Metro. Dist. G.O. Bonds, AGM
5.00%, 12/1/34	AA		285,000	320,195
5.00%, 12/1/32	AA		250,000	283,817
5.00%, 12/15/30	AA		125,000	134,685
5.00%, 12/15/29	AA		125,000	134,700
5.00%, 12/15/27	AA		125,000	134,756
5.00%, 12/15/25	AA		125,000	133,837
5.00%, 12/1/25	AA		175,000	186,766
				11,475,604
Connecticut (1.2%)
CT State Hlth. & Edl. Fac. Auth. Mandatory Put Bonds (7/1/26), (Yale U.), Ser. A-2, 2.00%, 7/1/42	Aaa		1,050,000	1,011,035
CT State Hlth. & Edl. Fac. Auth. Rev. Bonds
(Masonicare Issue), Ser. F, 5.00%, 7/1/34	BBB+/F		1,250,000	1,251,110
(Masonicare Issue), Ser. F, 5.00%, 7/1/33	BBB+/F		250,000	250,844
(Stamford Hosp. Oblig. Group (The)), Ser. M, 5.00%, 7/1/32	BBB+		1,400,000	1,604,328
(U. of New Haven), 5.00%, 7/1/28	BBB−		550,000	573,649
(Stamford Hosp. Oblig. Group (The)), Ser. L-1, 4.00%, 7/1/26	BBB+		700,000	714,437
(Yale U.), Ser. A-1, 0.50%, 7/1/42	Aaa		1,450,000	1,450,000
CT State Hsg. Fin. Auth. Rev. Bonds, Ser. B-1
4.15%, 11/15/44	Aaa		1,355,000	1,349,106
4.10%, 11/15/39	Aaa		565,000	565,456
				8,769,965
District of Columbia (1.8%)
DC Rev. Bonds
(KIPP DC), Ser. A, 5.00%, 7/1/48	BBB+		1,250,000	1,261,978
(Latin American Montessori Bilingual Pub. Charter School Oblig. Group), 4.00%, 6/1/30	BB+		1,000,000	976,343
Metro. DC Arpt. Auth. Rev. Bonds, Ser. A
5.00%, 10/1/43	Aa3		3,650,000	3,836,275
5.00%, 10/1/31	Aa3		1,000,000	1,118,771
5.00%, 10/1/30	Aa3		4,410,000	5,025,139

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
District of Columbia cont.
Metro. Washington DC, Arpt. Auth. Dulles Toll Rd. Rev. Bonds
(Dulles Metrorail & Cap. Impt. Proj.) 4.00%, 10/1/53 T	A−		$660,000	$619,004
(Dulles Metrorail & Cap. Impt. Proj.) Ser. B, 4.00%, 10/1/44 T	A−		665,000	649,853
				13,487,363
Florida (4.8%)
Cap. Trust Agcy. 144A Rev. Bonds, (WFCS Holdings II, LLC), Ser. A-1, 3.30%, 1/1/31	BB/P		480,000	437,191
Double Branch Cmnty. Dev. Dist. Special Assmt. Bonds, Ser. A-1, 4.25%, 5/1/34	A		360,000	360,576
FL State Dept. of Mgt. Svcs. COP, Ser. A, 3.00%, 11/1/35	Aa1		1,000,000	975,040
FL State Dev. Fin. Corp. Ed. Fac. Rev. Bonds, (River City Ed.), 5.00%, 7/1/31	Baa3		325,000	346,000
FL State Dev. Fin. Corp. Ed. Fac. 144A Rev. Bonds, (Drs. Kiran & Pallavi Patel 2017 Foundation for Global Understanding Inc.), 3.00%, 7/1/31	BB/P		200,000	183,132
Greater Orlando, Aviation Auth. Arpt. Fac. Rev. Bonds, Ser. A, 5.00%, 10/1/35	A1		7,500,000	7,974,637
Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36	A−		1,375,000	1,432,063
Orange Cnty., HFA Mandatory Put Bonds (9/1/23), (Dunwoodie Place Preservation, Ltd.), Ser. A, 0.20%, 9/1/24	AA+		1,920,000	1,875,634
Orange Cnty., Hlth. Fac. Auth. Rev. Bonds
(Orlando Hlth.), 5.00%, 10/1/40	A+		1,000,000	1,103,288
(Orlando Hlth.), 5.00%, 10/1/39	A+		1,500,000	1,664,119
(Orlando Hlth.), 5.00%, 10/1/38	A+		1,000,000	1,114,958
(Presbyterian Retirement Cmntys.), 5.00%, 8/1/34	A−/F		1,000,000	1,021,515
Orlando Cmnty. Redev. Agcy. Tax Alloc. Bonds, (Republic Drive/Universal), 5.00%, 4/1/23	A+/F		1,630,000	1,633,026
Palm Beach Cnty., 144A Rev. Bonds, (Provident Group-LU Properties, LLC), 4.25%, 6/1/31	BB−/P		1,200,000	1,143,941
Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds, (Acts Retirement-Life Cmnty., Inc.), 5.00%, 11/15/32	A−/F		2,000,000	2,055,344
Palm Beach Cnty., School Board COP, Ser. C, 5.00%, 8/1/31	Aa3		5,400,000	5,582,020
Sarasota Cnty., Pub. Hosp. Dist. Rev. Bonds, 5.00%, 7/1/38	A1		5,000,000	5,329,648
Southeast Overtown Park West Cmnty. Redev. Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30	BBB+		240,000	244,778
St. John’s Cnty., Indl. Dev. Auth. Rev. Bonds, (Life Care Ponte Vedra Oblig. Group), Ser. A
4.00%, 12/15/31	BB+/F		200,000	185,125
4.00%, 12/15/30	BB+/F		195,000	182,191
4.00%, 12/15/29	BB+/F		215,000	202,499
Village, 144A Special Assmt., (Village Cmnty. Dev. Dist. No. 13), 1.875%, 5/1/25	BB−/P		515,000	489,670
				35,536,395

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Georgia (2.3%)
Burke Cnty., Dev. Auth. Poll. Control
Mandatory Put Bonds (8/19/25), (GA Pwr. Co.), 2.875%, 12/1/49	Baa1		$4,250,000	$4,179,884
Mandatory Put Bonds (5/25/23), (GA Power Co.), 2.25%, 10/1/32	Baa1		4,000,000	3,983,318
Mandatory Put Bonds (2/3/25), (Oglethorpe Pwr. Corp.), 1.50%, 1/1/40	Baa1		1,600,000	1,527,142
Main Street Natural Gas, Inc. Gas Supply Mandatory Put Bonds (9/1/23), Ser. B, 3.677%, 4/1/48	Aa1		2,200,000	2,199,885
Muni. Election Auth. of GA Rev. Bonds
(Plant Vogtle Units 3 & 4), AGM, 5.00%, 7/1/39	AA		1,000,000	1,111,586
(Plant Vogtle Units 3 & 4), AGM, 5.00%, 7/1/36	AA		1,000,000	1,136,299
Ser. A, 5.00%, 1/1/34	A2		2,295,000	2,539,419
(Plant Vogtle Units 3 & 4), 4.00%, 1/1/46	BBB+		330,000	303,747
				16,981,280
Illinois (4.7%)
Chicago, G.O. Bonds, Ser. A
5.00%, 1/1/35	BBB+		3,000,000	3,220,654
4.00%, 1/1/36	BBB+		1,000,000	972,327
Chicago, Board of Ed. G.O. Bonds, Ser. A, 5.00%, 12/1/39	BB		1,000,000	1,024,395
Chicago, O’Hare Intl. Arpt. Rev. Bonds, Ser. B, 5.00%, 1/1/33	A+		5,465,000	5,701,702
Chicago, Waste Wtr. Transmission Rev. Bonds
5.00%, 1/1/44	A		500,000	501,926
Ser. C, 5.00%, 1/1/39	A		750,000	758,308
(2nd Lien), 5.00%, 1/1/39	A		565,000	568,042
Ser. C, 5.00%, 1/1/34	A		400,000	409,439
Ser. C, 5.00%, 1/1/33	A		405,000	414,987
Chicago, Wtr. Wks Rev. Bonds, 5.00%, 11/1/39	A		675,000	684,438
IL State G.O. Bonds
5.00%, 11/1/41	Baa1		600,000	612,492
5.00%, 1/1/41	Baa1		340,000	346,073
5.00%, 11/1/34	Baa1		1,650,000	1,717,900
Ser. C, 5.00%, 11/1/29	Baa1		1,225,000	1,308,848
Ser. D, 5.00%, 11/1/28	Baa1		2,080,000	2,231,917
Ser. D, 5.00%, 11/1/27	Baa1		920,000	991,871
4.125%, 11/1/31	Baa1		830,000	845,752
4.00%, 1/1/31	Baa1		695,000	704,109
IL State Fin. Auth.
Mandatory Put Bonds (8/15/25), (U. of Chicago Med. Ctr.), Ser. B-1, 5.00%, 8/15/52	AA+		2,350,000	2,471,081
Mandatory Put Bonds (11/15/26), (OSF Hlth. Care Syst. Oblig. Group), Ser. B-2, 5.00%, 5/15/50	A		1,000,000	1,067,690
IL State Fin. Auth. Rev. Bonds
(Ascension Hlth. Credit Group), Ser. C, 5.00%, 2/15/34	AA+		1,100,000	1,183,436
(Rosalind Franklin U. of Medicine and Science), Ser. A, 5.00%, 8/1/31	BBB+		400,000	421,112
(Art Institute of Chicago (The)), 5.00%, 3/1/30	AA		1,500,000	1,608,151

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Illinois cont.
IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds
(U. of IL Chicago), 5.00%, 2/15/50	Baa3		$460,000	$457,311
(CHF-Chicago, LLC), 5.00%, 2/15/47	Baa3		500,000	500,994
Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion), Ser. B, 5.00%, 12/15/33	A−		300,000	313,693
Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, Ser. A, 5.00%, 12/1/31	AA+		1,000,000	1,088,935
Romeoville, Rev. Bonds, (Lewis U.)
5.00%, 10/1/29	BBB		975,000	991,669
5.00%, 10/1/27	BBB		860,000	875,530
5.00%, 10/1/26	BBB		500,000	509,092
				34,503,874
Indiana (1.3%)
IN State. Fin. Auth. Rev. Bonds, (Rose-Hulman Inst. of Tech., Inc.)
5.00%, 6/1/32	A2		200,000	227,279
5.00%, 6/1/31	A2		200,000	227,675
5.00%, 6/1/30	A2		200,000	228,530
5.00%, 6/1/29	A2		175,000	197,119
5.00%, 6/1/28	A2		100,000	110,847
5.00%, 6/1/27	A2		180,000	196,188
4.00%, 6/1/34	A2		235,000	245,474
4.00%, 6/1/33	A2		210,000	220,957
Indianapolis, Local Pub. Impt. Bond Bk. Rev. Bonds, Ser. A
5.25%, 2/1/54	Aa1		1,500,000	1,617,391
5.00%, 2/1/44	Aa1		1,175,000	1,268,926
Rockport, Poll. Control Rev. Bonds, (AEP Generating Co.), 3.125%, 7/1/25	A−		4,150,000	4,120,411
Silver Creek, School Bldg. Corp. Rev. Bonds
3.00%, 1/15/36	AA+		500,000	488,100
3.00%, 1/15/34	AA+		375,000	378,576
				9,527,473
Iowa (0.3%)
IA State Fin. Auth. Rev. Bonds, (Lifespace Cmnty., Inc. Oblig. Group), Ser. A, 4.00%, 5/15/46	BBB/F		1,150,000	843,707
IA State Fin. Auth. Solid Waste Fac. Mandatory Put Bonds (4/1/24), (Gevo NW Iowa RNG, LLC), 1.50%, 1/1/42	Aa3		1,700,000	1,672,064
				2,515,771
Kentucky (2.9%)
KY Pub. Trans. Infrastructure Auth. Rev. Bonds, (1st Tier Downtown Crossing), Ser. A, 6.00%, 7/1/53 (Prerefunded 7/1/23)	Baa2		500,000	506,045
KY State Hsg. Corp. Mandatory Put Bonds (10/1/23), (Winterwood II Rural Hsg.), 0.37%, 10/1/24	Aaa		1,295,000	1,263,169
KY State Property & Bldg. Comm. Rev. Bonds, (No. 127), Ser. A, 5.00%, 6/1/36	A1		5,500,000	6,305,617

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Kentucky cont.
KY State Pub. Energy Auth. Gas Supply
Mandatory Put Bonds (6/1/25), Ser. C-1, 4.00%, 12/1/49	A1		$3,150,000	$3,159,380
Mandatory Put Bonds (1/1/25), Ser. B, 4.00%, 1/1/49	A1		2,800,000	2,800,267
Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. Rev. Bonds, (Norton Healthcare, Inc.), Ser. A, 5.00%, 10/1/30	A		2,750,000	2,937,178
Louisville and Jefferson Cnty., Metro. Govt. Poll. Control Mandatory Put Bonds (7/1/26), (Louisville Gas and Elec. Co.), 1.75%, 2/1/35	A1		5,000,000	4,739,257
				21,710,913
Louisiana (0.3%)
LA Stadium & Exposition Dist. Rev. Bonds, 4.00%, 7/3/23	BBB+/F		500,000	500,554
St. John The Baptist Parish Mandatory Put Bonds (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37	Baa3		2,000,000	1,886,150
				2,386,704
Maryland (0.2%)
Frederick Cnty., Edl. Fac. 144A Rev. Bonds, (Mount. St. Mary’s U., Inc.), Ser. A, 5.00%, 9/1/27	BB+		1,000,000	1,017,231
Gaithersburg, Econ. Dev. Rev. Bonds, (Asbury, Oblig. Group), Ser. A, 5.00%, 1/1/36	BBB/F		300,000	302,978
MD State Hlth. & Higher Ed. Fac. Auth. Rev. Bonds, (Stevenson U.), 4.00%, 6/1/34	BBB−		250,000	256,413
				1,576,622
Massachusetts (3.2%)
Lawrence, G.O. Bonds, 4.00%, 6/1/35	AA		1,165,000	1,248,687
MA State G.O. Bonds, Ser. A, 5.25%, 4/1/47	Aa1		1,500,000	1,607,672
MA State Dev. Fin. Agcy. 144A Rev. Bonds, (Loomis Oblig. Group), 4.00%, 1/1/26	BBB		470,000	467,306
MA State Dev. Fin. Agcy. VRDN (Boston U.), Ser. U-6C, 1.15%, 10/1/42	VMIG 1		950,000	950,000
MA State Hlth. & Edl. Fac. Auth. VRDN (Baystate Total Home Care, Inc.), 1.15%, 7/1/39	A-1+		1,500,000	1,500,000
MA State Hsg. Fin. Agcy. Mandatory Put Bonds (6/1/25), Ser. 216, FHLMC Coll., FNMA Coll., GNMA Coll., 1.85%, 12/1/50	Aa1		1,000,000	964,776
MA State Hsg. Fin. Agcy. Rev. Bonds, Ser. D, 3.10%, 6/1/30	AA+		720,000	719,939
MA State Port Auth. Rev. Bonds, Ser. B, 5.00%, 7/1/39	Aa2		4,935,000	5,015,737
MA State Wtr. Resource Auth. VRDN, Ser. A-3, 1.88%, 8/1/37	VMIG 1		1,500,000	1,500,000
Merrimack Valley Regl. Transit Auth. Rev. Bonds, 3.25%, 6/23/23	Aa1		9,320,000	9,327,426
				23,301,543
Michigan (2.3%)
Detroit, G.O. Bonds, 5.50%, 4/1/34	Ba2		660,000	719,077
Kentwood, Economic Dev. Corp. Rev. Bonds, (Holland Home Oblig. Group), 5.00%, 11/15/37	BBB−/F		1,000,000	1,006,777

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Michigan cont.
MI State Fin. Auth. Rev. Bonds
Ser. H-1, 5.00%, 10/1/39 (Prerefunded 10/1/24)	AA−		$525,000	$538,332
(Local Govt. Loan Program — Detroit Wtr. & Swr. Dept. (DWSD)), Ser. C, 5.00%, 7/1/35	A+		1,000,000	1,041,835
(Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33	AA−		140,000	143,933
(Great Lakes Wtr. Auth. Wtr. Supply Syst.), 5.00%, 7/1/31	AA−		6,500,000	6,690,806
(Detroit), Ser. C-3, 5.00%, 4/1/28	Aa2		700,000	758,062
(Tobacco Settlement), Ser. A-1, 2.326%, 6/1/30	A		497,786	476,815
MI State Fin. Auth. Ltd. Oblig. Rev. Bonds
(Lawrence Technological U.), 5.25%, 2/1/32	BBB−		1,145,000	1,183,467
(Lawrence Technological U.), 5.00%, 2/1/47	BBB−		2,000,000	1,914,881
(Lawrence Tech. U.), 4.00%, 2/1/32	BBB−		285,000	275,664
(Lawrence Tech. U.), 4.00%, 2/1/27	BBB−		185,000	182,751
Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. F, 5.00%, 12/1/30	A1		1,840,000	1,938,920
				16,871,320
Minnesota (2.4%)
Duluth, COP, (Indpt. School Dist. No. 709), Ser. A, 4.20%, 3/1/34	Baa3		750,000	719,752
Duluth, Econ. Dev. Auth. Rev. Bonds, (Benedictine Hlth. Syst. Oblig. Group), Ser. A, 4.00%, 7/1/31	BB/P		625,000	587,395
Duluth, Econ. Dev. Auth. Hlth. Care Fac. Rev. Bonds, (St. Luke’s Hosp. of Duluth Oblig. Group)
5.00%, 6/15/32	BBB−		975,000	1,070,436
5.00%, 6/15/30	BBB−		830,000	898,391
Hennepin Cnty., VRDN, Ser. B, 1.65%, 12/1/38	A-1+		410,000	410,000
JPM-Putters-XM0872, VRDN, 1.81%, 11/15/26	A-1		4,925,000	4,925,000
Minneapolis & St. Paul, Hsg. & Redev. Auth. Hlth. Care VRDN, (Allina Hlth. Syst.), Ser. B-1, 1.20%, 11/15/35	VMIG 1		500,000	500,000
Minneapolis & St. Paul, Metro. Arpt. Comm. Rev. Bonds, Ser. A, 5.00%, 1/1/31	AA−		1,580,000	1,732,965
Minneapolis, Hlth. Care Syst. VRDN (Fairview Hlth. Svcs. Oblig. Group), Ser. B, 2.10%, 11/15/48	VMIG 1		1,500,000	1,500,000
MN State Higher Ed. Fac. Auth. Rev. Bonds, (Augsburg U.), Ser. A, 5.00%, 5/1/46	Ba1		750,000	708,584
Ramsey, Charter School Rev. Bonds, (PACT Charter School), Ser. A, 5.00%, 6/1/32	BB+		1,400,000	1,403,669
Rochester, Hlth. Care Fac. VRDN, (Mayo Clinic), Ser. B, 1.90%, 11/15/38	VMIG 1		250,000	250,000
St. Paul, Hsg. & Redev. Auth. Charter School Lease Rev. Bonds, (Hmong College Prep Academy), 5.50%, 9/1/36	BB+		3,000,000	3,039,767
				17,745,959
Mississippi (0.8%)
MS Bus. Fin. Comm. VRDN (Chevron USA, Inc.)
Ser. C, 1.20%, 12/1/30	VMIG 1		1,000,000	1,000,000
Ser. F, 1.20%, 12/1/30	VMIG 1		4,565,000	4,565,000
MS State Bus. Fin. Corp. Rev. Bonds, (System Energy Resources, Inc.), 2.375%, 6/1/44	A		770,000	541,186
				6,106,186

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Missouri (0.7%)
Kansas City, Indl. Dev. Auth. Arpt. Special Oblig. Rev. Bonds
(Kansas City, Intl. Arpt.), 5.00%, 3/1/32	A2		$1,000,000	$1,098,195
(Kansas City Intl. Arpt.), 5.00%, 3/1/30	A2		1,540,000	1,719,533
Plaza at Noah’s Ark Cmnty. Impt. Dist. Rev. Bonds
3.00%, 5/1/26	B+/P		275,000	263,457
3.00%, 5/1/25	B+/P		225,000	218,367
3.00%, 5/1/24	B+/P		200,000	196,725
St. Louis, Arpt. Rev. Bonds, 5.00%, 7/1/30	A2		1,430,000	1,609,577
				5,105,854
Montana (0.4%)
MT State Board of Regents Higher Ed. Mandatory Put Bonds (11/15/32), U. of MT, AGM, 5.25%, 11/15/52 T	AA		2,475,000	2,782,843
				2,782,843
Nebraska (0.6%)
Central Plains, Energy Mandatory Put Bonds (1/1/24), (No. 4), 5.00%, 3/1/50	A2		2,500,000	2,527,554
Omaha, Pub. Pwr. Dist. Rev. Bonds, Ser. A
5.00%, 2/1/39	Aa2		1,000,000	1,155,987
5.00%, 2/1/38	Aa2		1,000,000	1,161,272
				4,844,813
Nevada (1.5%)
Clark Cnty., School Dist. G.O. Bonds
Ser. A, 5.00%, 6/15/37	A1		5,000,000	5,703,061
Ser. C, 5.00%, 6/15/28	A1		4,000,000	4,289,180
Ser. B, BAM, 3.00%, 6/15/36	AA		1,000,000	925,271
				10,917,512
New Hampshire (0.4%)
National Fin. Auth. Rev. Bonds, (Caritas Acquisitions VII, LLC), Ser. A, 3.75%, 8/15/30	BBB/P		1,050,000	987,295
NH State Hlth. & Ed. Fac. Auth. Rev. Bonds, (Southern NH Med. Ctr.), 5.00%, 10/1/37	A−		2,000,000	2,058,122
				3,045,417
New Jersey (2.4%)
NJ State G.O. Bonds, (Covid-19 Emergency Bonds), Ser. A, 3.00%, 6/1/32	A2		4,000,000	4,059,280
NJ State Econ. Dev. Auth. Mandatory Put Bonds (12/3/29), (American Water Co., Inc.), 2.20%, 10/1/39	A1		3,500,000	3,099,955
NJ State Econ. Dev. Auth. Rev. Bonds, Ser. AAA, 5.00%, 6/15/36	A3		350,000	368,350
NJ State Edl. Fac. Auth. Rev. Bonds, (William Paterson U. of NJ (The)), Ser. C, AGM
5.00%, 7/1/27	AA		100,000	109,597
5.00%, 7/1/26	AA		100,000	107,468
5.00%, 7/1/25	AA		100,000	105,327
5.00%, 7/1/24	AA		100,000	103,104
NJ State Hlth. Care Fac. Fin. Auth. VRDN, (AHS Hosp. Corp.), Ser. B, 1.55%, 7/1/36	VMIG 1		4,000,000	4,000,000

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
New Jersey cont.
NJ State Trans. Trust Fund Auth. Rev. Bonds
Ser. BB, 5.00%, 6/15/34	A3		$675,000	$770,093
(Federal Hwy. Reimbursement Notes), 5.00%, 6/15/28	A+		750,000	808,314
South Jersey, Trans. Auth. Syst. Rev. Bonds, Ser. A
5.00%, 11/1/40	BBB+		2,500,000	2,661,180
5.00%, 11/1/38	BBB+		1,140,000	1,226,780
BAM, 5.00%, 11/1/37	AA		250,000	279,620
				17,699,068
New Mexico (0.3%)
Farmington, Poll. Control Rev. Bonds, (Pub. Service Co. of NM), Ser. B, 2.15%, 4/1/33	Baa2		2,000,000	1,680,572
Sante Fe, Retirement Fac. Rev. Bonds, (El Castillo Retirement Res.), 5.00%, 5/15/42	BB+/F		980,000	866,763
				2,547,335
New York (15.9%)
Albany, Cap. Resource Corp. Rev. Bonds, (Empire Commons Student Hsg., Inc.)
5.00%, 5/1/26	A		400,000	423,414
Ser. A, 5.00%, 5/1/25	A		645,000	671,802
5.00%, 5/1/24	A		575,000	588,806
5.00%, 5/1/23	A		795,000	798,887
Build NY City Resource Corp. Rev. Bonds
(Global Cmnty. Charter School), 4.00%, 6/15/32	BB+		500,000	483,638
(Grand Concourse Academy Charter School), 3.40%, 7/1/27	BBB−		300,000	300,359
Build NY City Resource Corp. 144A Rev. Bonds, (East Harlem Scholars Academy Charter School), 5.00%, 6/1/32	BB+		375,000	388,708
NY City, G.O. Bonds, Ser. B-1, 5.25%, 10/1/39	Aa2		2,500,000	2,934,794
NY City, VRDN
Ser. I-2, 1.25%, 3/1/40	VMIG 1		3,600,000	3,600,000
Ser. I-4, 1.15%, 4/1/36	VMIG 1		3,000,000	3,000,000
NY City, Hsg. Dev. Corp. Mandatory Put Bonds (12/22/26), (Sustainable Dev.), Ser. F-2-B, FHA Insd., 3.40%, 11/1/62	AA+		12,750,000	12,860,632
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. Rev. Bonds, Ser. DD, 5.00%, 6/15/40	Aa1		3,320,000	3,587,855
NY City, Muni. Wtr. & Swr. Syst. Fin. Auth. VRDN
1.15%, 6/15/49	VMIG 1		1,000,000	1,000,000
Ser. DD-1, 1.15%, 6/15/43	VMIG 1		1,000,000	1,000,000
NY City, Transitional Fin. Auth. Rev. Bonds
Ser. F-1, 5.00%, 2/1/51	AAA		2,950,000	3,252,302
(Future Tax Secured Revenue), 5.00%, 11/1/40	AAA		4,250,000	4,624,600
Ser. C-3, 5.00%, 5/1/40	AAA		8,975,000	9,732,600
NY City, Transitional Fin. Auth. Future Tax Secd. Rev. Bonds, Ser. C, 5.00%, 11/1/27	AAA		3,500,000	3,702,118
NY State Dorm. Auth. Personal Income Tax Rev. Bonds, Ser. A
5.00%, 3/15/40	Aa1		655,000	717,863
5.00%, 3/15/34	Aa1		5,020,000	5,453,191
3.00%, 3/15/42	Aa1		7,915,000	6,730,950

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
New York cont.
NY State Hsg. Fin. Agcy. VRDN (8 East 102nd St., LLC), Ser. A, 1.87%, 5/1/44	VMIG 1		$3,780,000	$3,780,000
NY State Mtge. Agcy. Rev. Bonds, Ser. 196, 2.60%, 4/1/25	Aa1		750,000	742,881
NY State Thruway Auth. Rev. Bonds, (Green Bonds-Bidding Group 1), 5.00%, 3/15/55	AA+		10,000,000	10,925,772
NY State Trans. Special Fac. Dev. Corp. Rev. Bonds
(JFK Intl. Arpt. Term. 4, LLC), 5.00%, 12/1/29	Baa1		500,000	547,540
(American Airlines, Inc.), 2.25%, 8/1/26	B/F		205,000	193,709
Orange Cnty., Funding Corp. Rev. Bonds, (Mount St. Mary College), 5.00%, 7/1/29	BBB+/F		1,170,000	1,228,963
Port Auth. of NY & NJ Rev. Bonds
Ser. 218, 5.00%, 11/1/49 T	AA−		1,535,000	1,611,627
5.00%, 1/15/47	Aa3		3,000,000	3,227,431
5.00%, 1/15/37	Aa3		1,000,000	1,118,063
5.00%, 1/15/36	Aa3		1,000,000	1,128,165
Ser. 197, 5.00%, 11/15/35	Aa3		5,000,000	5,220,540
Ser. 227, 3.00%, 10/1/27	Aa3		5,000,000	5,025,325
Triborough Bridge & Tunnel Auth. Rev. Bonds, (Metro. Trans. Auth.), Ser. A, 5.00%, 11/15/24	AA+		15,500,000	16,235,015
				116,837,550
North Carolina (0.3%)
NC State Med. Care Comm. Hlth. Care Fac. Rev. Bonds, (Lutheran Svcs. for the Aging, Inc. Oblig. Group), Ser. C
5.00%, 3/1/28	BB/P		365,000	366,284
5.00%, 3/1/27	BB/P		460,000	463,863
5.00%, 3/1/26	BB/P		440,000	445,363
4.00%, 3/1/29	BB/P		755,000	715,047
				1,990,557
Ohio (2.4%)
Cleveland-Cuyahoga Cnty., Rev. Bonds, (Euclid Ave. Dev., Corp.), 5.00%, 8/1/39	A3		3,000,000	3,054,623
Cuyahoga Cnty., Econ. Dev. Rev. Bonds
5.00%, 1/1/38	A		1,380,000	1,508,207
5.00%, 1/1/36	A		425,000	469,827
Franklin Cnty., Hlth. Care Fac. Rev. Bonds, (Friendship Village of Dublin Oblig. Group), 5.00%, 11/15/34	BBB+/F		700,000	708,533
OH State Higher Edl. Fac. Comm. Rev. Bonds
(Kenyon College), 5.00%, 7/1/36 ###	A2		1,250,000	1,379,431
(Kenyon College), 5.00%, 7/1/35 ###	A2		1,700,000	1,897,231
(Cleveland Inst. of Music (The)), 5.00%, 12/1/32	BBB−		600,000	659,134
(John Carroll U.), 5.00%, 10/1/30	Baa1		455,000	502,366
(John Carroll U.), 5.00%, 10/1/29	Baa1		810,000	887,529
(John Carroll U.), 5.00%, 10/1/28	Baa1		370,000	402,093
(John Carroll U.), 5.00%, 10/1/27	Baa1		350,000	376,036
(John Carroll U.), 5.00%, 10/1/26	Baa1		350,000	371,225
(John Carroll U.), 5.00%, 10/1/25	Baa1		220,000	229,892

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Ohio cont.
OH State Hosp. Rev. Bonds, (Premier Hlth. Partners Oblig. Group)
5.00%, 11/15/27	Baa1		$240,000	$259,850
5.00%, 11/15/26	Baa1		285,000	304,315
5.00%, 11/15/24	Baa1		135,000	139,313
Ohio State Air Qlty. Dev. Auth. Mandatory Put Bonds (6/1/27), (Duke Energy Corp.), Ser. 22B, 4.00%, 9/1/30	Baa2		3,250,000	3,325,094
Port of Greater Cincinnati Dev. Auth. 144A Rev. Bonds, 4.25%, 12/1/50	BB/P		750,000	593,817
Scioto Cnty., Hosp. Rev. Bonds, (Southern OH Med. Ctr.), 5.00%, 2/15/33	A3		500,000	517,938
Warren Cnty., Hlth. Care Fac. Rev. Bonds, (Otterbein Homes Oblig. Group), Ser. A, 5.75%, 7/1/33 (Prerefunded 7/1/23)	A		500,000	506,721
				18,093,175
Oregon (0.5%)
Keizer, Special Assmt. Bonds, (Keizer Station), Ser. A, 5.20%, 6/1/31	Aa3		215,000	219,266
Port of Portland, Arpt. Rev. Bonds
Ser. 24B, 5.00%, 7/1/33	AA−		2,000,000	2,135,928
Ser. 28, 5.00%, 7/1/28	AA−		1,000,000	1,105,790
				3,460,984
Pennsylvania (6.0%)
Allegheny Cnty., Arpt. Auth. Rev. Bonds, Ser. A, 4.00%, 1/1/40	AA		1,250,000	1,218,900
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds, (West Chester U. Student Hsg., LLC), Ser. A, 5.00%, 8/1/45	Ba2		750,000	731,190
Dallas, Area Muni. Auth. U. Rev. Bonds, (Misericordia U.), 5.00%, 5/1/29	Baa3		300,000	302,342
Geisinger, Auth. Rev. Bonds, (Geisinger Hlth. Syst.), Ser. A-2, 5.00%, 2/15/39	AA−		3,275,000	3,433,450
Lackawanna Cnty., Indl. Dev. Auth. Rev. Bonds, (Scranton U.), 4.00%, 11/1/40	A−		500,000	484,699
Lancaster, Indl. Dev. Auth. Rev. Bonds, (Landis Homes Oblig. Group), 4.00%, 7/1/46	BBB−/F		675,000	547,148
Monroeville, Fin. Auth. Rev. Bonds, (U. of Pittsburgh Med. Ctr.), Ser. B
5.00%, 2/15/38	A2		2,200,000	2,415,041
5.00%, 2/15/24	A2		500,000	511,895
PA Rev. Bonds, (City of Philadelphia, Wtr. & Wastewater)
4.00%, 1/1/32	Baa2		540,000	555,342
4.00%, 1/1/31	Baa2		165,000	170,040
4.00%, 1/1/30	Baa2		115,000	118,374
4.00%, 1/1/29	Baa2		725,000	745,799
PA State Econ. Dev. Fin. Auth. Rev. Bonds, (PennDOT Major Bridges)
5.25%, 6/30/36	Baa2		1,650,000	1,836,345
5.25%, 6/30/35	Baa2		2,030,000	2,283,165

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Pennsylvania cont.
PA State Tpk. Comm. Rev. Bonds, Ser. B-1, 5.00%, 6/1/42	A3		$675,000	$706,365
Philadelphia, Arpt. Rev. Bonds, Ser. C, 5.00%, 7/1/24	A2		4,000,000	4,105,645
Philadelphia, Auth. for Indl. Dev. Rev. Bonds, (LaSalle U.), 5.00%, 5/1/25	BB		1,815,000	1,820,961
Philadelphia, Auth. for Indl. Dev. City Agreement Rev. Bonds, 5.00%, 12/1/27	A2		3,000,000	3,200,009
Philadelphia, School Dist. G.O. Bonds, Ser. F, 5.00%, 9/1/29	A1		6,620,000	7,140,451
Pittsburgh Wtr. & Swr. Auth. Mandatory Put Bonds (12/1/23), Ser. C, AGM, 2.31%, 9/1/40	AA		1,875,000	1,873,669
Scranton, School Dist. G.O. Bonds, Ser. 14-R, 3.821%, 4/1/31	A1		5,275,000	5,273,765
Southeastern PA Trans. Auth. Rev. Bonds, (Asset Impt. Program)
5.25%, 6/1/40	Aa3		1,250,000	1,459,983
5.25%, 6/1/39	Aa3		1,500,000	1,762,406
Westmoreland Cnty. Indl. Dev. Auth. Hlth. Syst. Rev. Bonds, (Excela Hlth. Oblig. Group), Ser. A
5.00%, 7/1/28	Baa1		275,000	296,929
5.00%, 7/1/27	Baa1		375,000	400,507
4.00%, 7/1/26	Baa1		300,000	306,577
4.00%, 7/1/24	Baa1		200,000	201,708
				43,902,705
Puerto Rico (0.6%)
Cmnwlth. of PR, G.O. Bonds, Ser. A1
5.625%, 7/1/27	BB/P		907,000	951,096
5.375%, 7/1/25	BB/P		3,400,000	3,480,472
				4,431,568
Rhode Island (0.3%)
RI Hlth. & Edl. Bldg. Corp. Rev. Bonds, (Lifespan Oblig. Group-Hosp. Fin.)
5.00%, 5/15/33	BBB+		365,000	377,331
5.00%, 5/15/26	BBB+		580,000	608,464
Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. B, 5.00%, 6/1/50	BBB−/P		1,000,000	1,006,748
				1,992,543
South Carolina (1.1%)
Myrtle Beach, Tax Alloc. Bonds, (Myrtle Beach Air Force Base Redev.), 5.00%, 10/1/28	A2		575,000	624,439
SC State Pub. Svcs. Auth. Rev. Bonds
Ser. A, 5.00%, 12/1/37	A3		3,435,000	3,547,864
(Oblig.), Ser. B, 5.00%, 12/1/37	A3		500,000	518,720
Ser. A, 5.00%, 12/1/36	A3		1,500,000	1,552,971
SC State Trans. Infrastructure Bank Rev. Bonds, Ser. A, 3.00%, 10/1/36	Aa3		1,740,000	1,598,914
				7,842,908

MUNICIPAL BONDS AND NOTES (96.8%)* cont.	Rating**		Principal amount	Value
Tennessee (0.5%)
Chattanooga, Hlth. Edl. & Hsg. Fac. Rev. Bonds, (CommonSpirit Health Oblig. Group)
Ser. A-2, 5.00%, 8/1/49 T	A−		$250,000	$257,638
Ser. A-2, 5.00%, 8/1/44 T	A−		150,000	156,240
Ser. A-1, 4.00%, 8/1/44 T	A−		275,000	264,988
Ser. A-1, 4.00%, 8/1/38 T	A−		150,000	149,376
Ser. A-1, 4.00%, 8/1/37 T	A−		150,000	149,921
Metro. Nashville, Arpt. Auth. Rev. Bonds, Ser. B
5.50%, 7/1/37	A1		875,000	1,003,745
5.50%, 7/1/36	A1		650,000	750,046
5.00%, 7/1/33	A2		1,000,000	1,117,219
				3,849,173
Texas (8.3%)
Arlington, Higher Ed. Fin. Corp. Rev. Bonds
(Trinity Basin Preparatory, Inc.), PSFG, 5.00%, 8/15/32	AAA		245,000	283,707
(Trinity Basin Preparatory, Inc.), PSFG, 5.00%, 8/15/31	AAA		240,000	278,543
(Harmony Pub. Schools), Ser. A, PSFG, 4.00%, 2/15/51	Aaa		2,000,000	1,929,385
(Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/32	AAA		375,000	392,004
Arlington, Higher Ed. Fin. Corp. 144A Rev. Bonds, (Magellan School (The)), 5.50%, 6/1/32	Ba2		1,245,000	1,261,215
Austin, Cmnty. College Dist. G.O. Bonds, (Maintenance Tax), 3.00%, 8/1/35	Aa1		1,350,000	1,310,575
Austin-Bergstrom Landhost Enterprises, Inc. Rev. Bonds
5.00%, 10/1/36	A		1,485,000	1,558,924
5.00%, 10/1/33	A		400,000	426,216
Clifton, Higher Ed. Fin. Corp. Rev. Bonds, (IDEA Pub. Schools)
PSFG, 5.00%, 8/15/48	AAA		1,570,000	1,669,047
Ser. B, PSFG, 5.00%, 8/15/27	A−		350,000	373,947
Ser. T, PSFG, 4.00%, 8/15/38	AAA		1,400,000	1,424,880
Ser. T, PSFG, 4.00%, 8/15/36	AAA		700,000	726,667
Dallas, Hotel Occupancy Tax Rev. Bonds
4.00%, 8/15/37	A		2,000,000	2,000,840
4.00%, 8/15/35	A		1,000,000	1,008,021
4.00%, 8/15/34	A		750,000	760,387
Fort Bend, Grand Parkway Toll Rd. Auth. Rev. Bonds
3.00%, 3/1/39	Aa1		1,245,000	1,139,507
3.00%, 3/1/38	Aa1		1,205,000	1,118,762
Fort Bend, Indpt. School Dist. Mandatory Put Bonds (8/1/26), Ser. B, PSFG, 0.72%, 8/1/51	AAA		860,000	778,674
Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds, (YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/38	Ba1		500,000	455,907
Houston, Arpt. Syst. Rev. Bonds, Ser. A, 4.00%, 7/1/35	A1		1,500,000	1,506,430
Houston, Indpt. School Dist. Mandatory Put Bonds (6/1/25), Ser. A-2, PSFG, 3.50%, 6/1/39	Aaa		3,250,000	3,244,493