A flight to quality improves returns for government-grade bonds

                               AVERAGE ANNUAL TOTAL RETURN (%) *
CATEGORY                         2000   1998-2000   1996-2000

LONG GOVERNMENT                  14.1      6.0         5.7
MUNI. CALIFORNIA LONG            13.1      4.5         5.3
MUNI. NEW YORK LONG              12.0      4.2         5.0
MUNI. NATIONAL LONG              11.1      4.0         4.9
MUNI. SINGLE-STATE LONG          11.0      4.0         4.9
INTERMEDIATE GOVERNMENT          10.8      5.7         5.7
LONG (GENERAL)                    9.6      4.8         5.5
MUNI. NEW YORK INTERMEDIATE       9.6      4.6         5.0
INTERMEDIATE (GENERAL)            9.5      5.3         5.5
MUNI. CALIFORNIA INTERMEDIATE     9.2      4.4         4.9
EMERGING MARKETS BOND             9.0      2.7        10.2
MUNI. NATIONAL INTERMEDIATE       8.6      4.2         4.7
MUNI. SINGLE-STATE INTERMEDIAT    8.6      4.0         4.5
SHORT GOVERNMENT                  7.8      5.3         5.4
SHORT (GENERAL)                   7.5      5.4         5.5
ULTRASHORT                        6.0      5.1         5.4
MUNI. SHORT                       5.1      3.8         4.0
INTERNATIONAL BOND                3.0      2.9         4.3
MUNI. HIGH YIELD                  1.5      0.5         4.0
MULTISECTOR                       0.8      1.3         4.7
CONVERTIBLES                      0.0     11.5        13.3
HIGH YIELD                       -8.1     -1.7         4.1
ALL TAX FREE                     10.1      4.0         4.8
ALL TAXABLE                       6.3      4.5         5.7


* Appreciation plus reinvestment of dividends and capital gains before 
taxes

Data: Standard & Poor's