BUSINESS WEEK rates bond funds, too. The following bond funds have joined 
the A-list this year. Ratings are based on five-year risk-adjusted total 
returns.

                                               FIVE-YR. AVG.
FUND                                          ANNUAL RETURN*

ALLIANCE MUNICIPAL INCOME II VIRGINIA B           17.8%
CALAMOS CONVERTIBLE A                             17.3
DAVIS CONVERTIBLE SECURITIES A                    18.1
DREYFUS BASIC INTERMEDIATE MUNICIPAL               6.5
DREYFUS SHORT-TERM INCOME                          6.7
DUPREE KENTUCKY TAX-FREE INCOME                    6.3
FEDERATED LIMITED TERM MUNICIPAL A                 4.2
FIRST INVESTORS FUND FOR INCOME A                 10.4
FRANKLIN CALIF. INTERMEDIATE TAX-FREE              6.6
FRANKLIN FEDERAL TAX-FREE INCOME A                 6.6
INTRUST KANSAS TAX-EXEMPT BOND INSTL.              6.6
MAS LIMITED DURATION INSTITUTIONAL                 6.0
MONETTA INTERMEDIATE BOND                          8.0
MONTEREY PIA SHORT TERM GOVERNMENT                 6.3
NORTHERN INCOME EQUITY                            14.9
PAINEWEBBER MUNICIPAL HIGH-INCOME A                6.9
PILGRIM CONVERTIBLE C                             18.7
T. ROWE PRICE SUMMIT MUNICIPAL INTERMEDIATE        6.2
SCHWAB CALIF. SHORT/INTERMEDIATE TAX-FREE          4.8
SCUDDER LIMITED-TERM TAX-FREE                      4.7
SCUDDER MASS. LIMITED-TERM TAX-FREE                4.7
SOUTH DAKOTA TAX-FREE                              5.5
STRONG SHORT-TERM BOND                             6.6
STRONG SHORT-TERM GLOBAL BOND                      7.6
STRONG SHORT-TERM MUNICIPAL BOND                   4.5
THORNBURG NEW MEXICO INTERMEDIATE MUNI. A          5.3
USAA SHORT-TERM BOND                               6.5
VANGUARD CALIF. INSURED INTRM. TAX-EXEMPT          6.2
VANGUARD PREFERRED STOCK                           9.9


*Through June 30. Appreciation plus reinvestment of dividends and capital 
gains before taxes

DATA: MORNINGSTAR INC., BW