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. Taxable bond funds are rated against each other and tax-free funds 
against other tax-free funds

                                               FIVE-YR. AVG.
FUND                                           ANNUAL RETURN*

ALLIANCE MULTI-MARKET STRATEGY A                     8.1%
ALLIANCE NORTH AMERICAN GOVT. INCOME B              15.7
DEUTSCHE SHORT-TERM MUNICIPAL BOND INSTL.            5.1
DEUTSCHE SHORT-TERM FIXED INCOME INSTL.              6.1
DREYFUS LIFETIME INCOME R                            8.7
DUPREE KENTUCKY TAX-FREE SHORT-MED.                  3.8
EATON VANCE STRATEGIC INCOME B                       8.8
EV CLASSIC SENIOR FLOATING-RATE                      6.6
EVERGREEN CAPITAL PRESERVATION AND INCOME A          5.6
FIDELITY SPARTAN CALIFORNIA  MUNI. INCOME            6.3
FRANKLIN ADJUSTABLE RATE SECURITIES                  5.6
FREMONT CALIFORNIA INTERMEDIATE FREE                 5.2
GOLDMAN SACHS ADJUSTABLE RATE GOVT. A                5.3
JANUS SHORT-TERM BOND                                6.0
NORTHERN INCOME EQUITY                              15.0
ONE GROUP ULTRA SHORT-TERM INCOME A                  5.6
PARNASSUS INCOME CALIFORNIA TAX-EXEMPT               6.1
USAA SHORT-TERM BOND                                 6.0
VANGUARD INTERMEDIATE TAX-EXEMPT                     5.1
VICTORY CONVERTIBLE SECURITIES                      14.4
WPG INTERMEDIATE MUNICIPAL BOND                      5.1


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

DATA: MORNINGSTAR, BW