UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-5227
Name of Fund: Apex Municipal Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, Apex Municipal Fund, Inc., 800 Scudders Mill Road, Plainsboro,
NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 06/30/05
Date of reporting period: 01/01/05 - 03/31/05
Item 1 - Schedule of Investments
Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
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Face
State Amount Municipal Bonds Value
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Alabama - 0.5% $ 1,000 Brewton, Alabama, IDB, PCR, Refunding (Container Corporation of $ 1,024
America-Jefferson Smurfit Corp. Project), 8% due 4/01/2009
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Alaska - 1.1% 2,000 Alaska Industrial Development and Expert Authority Revenue Bonds 2,058
(Williams Lynxs Alaska Cargoport), AMT, 8% due 5/01/2023
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Arizona - 4.1% 1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona 991
Charter Schools Project 1), Series A, 6.625% due 7/01/2020
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Sun
King Apartments Project):
80 Series A, 5.875% due 11/01/2008 77
20 Series A, 6% due 11/01/2010 19
970 Series A, 6.75% due 5/01/2031 789
1,500 Sub-Series C, 9.50% due 11/01/2031 1,154
4,000 Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding Bonds 3,027
(America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023
1,000 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona 1,073
Charter Schools Project), Series E, 7.25% due 7/01/2031
500 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds 524
(Yavapai Regional Medical Center), Series A, 6% due 8/01/2033
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California - 3.7% California State, GO:
1,800 5% due 2/01/2033 1,831
820 5.25% due 4/01/2034 858
1,300 California State, Various Purpose, GO, 5.25% due 11/01/2025 1,357
1,000 Fontana, California, Special Tax, Refunding (Community Facilities District 1,016
Number 22 - Sierra), 6% due 9/01/2034
1,860 Golden State Tobacco Securitization Corporation of California, Tobacco 1,964
Settlement Revenue Bonds, Series B, 5.50% due 6/01/2043
Portfolio Abbreviations
To simplify the listings of Apex Municipal Fund, Inc.'s portfolio holdings in
the Schedule of Investments, we have abbreviated the names of many of the
securities according to the list below.
AMT Alternative Minimum Tax (subject to)
EDA Economic Development Authority
GO General Obligation Bonds
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
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Face
State Amount Municipal Bonds Value
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Colorado - 5.7% $ 2,920 Denver, Colorado, Urban Renewal Authority, Tax Increment Revenue $ 3,056
Bonds (Pavilions), AMT, 7.75% due 9/01/2016
2,800 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public 3,003
Improvement Fee), Series A, 7.30% due 9/01/2022
300 Moffat County, Colorado, PCR, Refunding (PacifiCorp Projects), VRDN, 300
2.30% due 5/01/2013 (a)(b)
1,235 North Range, Colorado, Metropolitan District Number 1, GO, 7.25% 1,240
due 12/15/2031
2,000 Plaza Metropolitan District No. 1, Colorado, Tax Allocation Revenue Bonds 2,102
(Public Improvement Fees), 8% due 12/01/2025
830 Southlands, Colorado, Medical District, GO (Metropolitan District # 1), 905
7.125% due 12/01/2034
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Connecticut - 1.8% 1,650 Bridgeport, Connecticut, Senior Living Facilities Revenue Bonds (3030 Park 1,651
Retirement Community Project), 7.25% due 4/01/2035
490 Connecticut State Development Authority, Airport Facility Revenue Bonds 568
(LearJet Inc. Project), AMT, 7.95% due 4/01/2026
1,160 New Haven, Connecticut, Facility Revenue Bonds (Hill Health Corporation 1,160
Project), 9.25% due 5/01/2017
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Florida - 7.7% 855 Arbor Greene Community Development District, Florida, Special Assessment 873
Revenue Bonds, 7.60% due 5/01/2018
800 Capital Projects Finance Authority, Florida, Continuing Care Retirement 852
Revenue Bonds (Glenridge on Palmer Ranch), Series A, 8% due 6/01/2032
2,500 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds 2,747
(National Gypsum), AMT, Series A, 7.125% due 4/01/2030
895 Lakewood Ranch, Florida, Community Development District Number 5, 938
Special Assessment Revenue Refunding Bonds, Series A, 6.70% due 5/01/2031
Midtown Miami, Florida, Community Development District, Special Assessment
Revenue Bonds, Series A:
1,500 6% due 5/01/2024 1,543
1,350 6.25% due 5/01/2037 1,393
1,605 Orlando, Florida, Urban Community Development District, Capital Improvement 1,705
Special Assessment Bonds, Series A, 6.95% due 5/01/2033
1,700 Santa Rosa Bay Bridge Authority, Florida, Revenue Bonds, 6.25% 1,575
due 7/01/2028
2,760 Tampa Palms, Florida, Open Space and Transportation Community 2,867
Development District Revenue Bonds, Capital Improvement (Richmond
Place Project), 7.50% due 5/01/2018
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Georgia - 3.3% 2,000 Atlanta, Georgia, Tax Allocation Revenue Bonds (Atlantic Station Project), 2,169
7.90% due 12/01/2024
Brunswick & Glynn County, Georgia, Development Authority, First Mortgage
Revenue Bonds (Coastal Community Retirement Corporation Project), Series A:
830 7.125% due 1/01/2025 866
1,185 7.25% due 1/01/2035 1,240
1,000 Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds 1,026
(Georgia College and State University Foundation), 5.25% due 9/01/2019
830 Savannah, Georgia, EDA, Revenue Bonds (Marshes of Skidaway), First 859
Mortgage, Series A, 7.40% due 1/01/2034
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Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
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Face
State Amount Municipal Bonds Value
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Idaho - 0.8% $ 1,470 Idaho Health Facilities Authority, Revenue Refunding Bonds (Valley Vista Care $ 1,486
Corporation), Series A, 7.75% due 11/15/2016
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Illinois - 5.0% 1,845 Caseyville, Illinois, Senior Tax Increment Revenue Bonds (Forest Lakes Project), 1,838
7% due 12/30/2022
3,000 Chicago, Illinois, O'Hare International Airport, Special Facility, Revenue 2,488
Refunding Bonds (American Airlines Inc. Project), 8.20% due 12/01/2024
400 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% 412
due 12/01/2032
Illinois Development Finance Authority Revenue Bonds (Primary Health Care
Centers Facilities Acquisition Program):
585 7.75% due 12/01/2006 (c) 640
2,605 7.75% due 12/01/2016 2,735
490 Illinois State Finance Authority Revenue Bonds (Primary Health Care Centers 485
Program), 6.60% due 7/01/2024
755 Lincolnshire, Illinois, Special Service Area No. 1, Special Tax Bonds 794
(Sedgebrook Project), 6.25% due 3/01/2034
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Iowa - 2.5% 3,910 Iowa Finance Authority, Health Care Facilities, Revenue Refunding Bonds 4,699
(Care Initiatives Project), 9.25% due 7/01/2025
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Louisiana - 3.0% 5,500 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company 5,679
Project), 7.50% due 7/01/2013
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Maine - 0.5% 840 Maine Finance Authority, Solid Waste Recycling Facilities Revenue Bonds 844
(Great Northern Paper Project-Bowater), AMT, 7.75% due 10/01/2022
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Maryland - 0.8% 1,500 Maryland State Energy Financing Administration, Limited Obligation 1,530
Revenue Bonds (Cogeneration-AES Warrior Run), AMT, 7.40% due 9/01/2019
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Massachusetts - 5.0% 1,845 Massachusetts State Development Finance Agency, First Mortgage Revenue 1,810
Bonds (Overlook Communities Inc.), Series A, 6.25% due 7/01/2034
Massachusetts State Development Finance Agency, Revenue Refunding
Bonds (Eastern Nazarine College):
1,245 5.625% due 4/01/2019 1,199
1,220 5.625% due 4/01/2029 1,116
850 Massachusetts State Health and Educational Facilities Authority Revenue 905
Bonds (Jordan Hospital), Series E, 6.75% due 10/01/2033
Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds:
2,100 (Bay Cove Human Services Issue), Series A, 5.90% due 4/01/2028 2,005
1,000 (Milton Hospital), Series, 5.50% due 7/01/2016 997
1,300 Massachusetts State Industrial Finance Agency Revenue Bonds, Sewer 1,304
Facility (Resource Control Composting), AMT, 9.25% due 6/01/2010
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Michigan - 0.6% 1,150 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue 1,088
Bonds (Mount Clemens General Hospital), Series B, 5.875% due 11/15/2034
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Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
-----------------------------------------------------------------------------------------------------------------------------------
Face
State Amount Municipal Bonds Value
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Minnesota - 1.1% $ 820 Minneapolis & Saint Paul, Minnesota, Metropolitan Airports Commission, $ 778
Special Facilities Revenue Refunding Bonds (Northwest Airlines Inc. Project),
AMT, 7.375% due 4/01/2025
1,230 Saint Paul, Minnesota, Port Authority, Hotel Facility, Revenue Refunding 1,283
Bonds (Radisson Kellogg Project), Series 2, 7.375% due 8/01/2029
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Missouri - 1.2% 1,200 Fenton, Missouri, Tax Increment Revenue Refunding and Improvement 1,290
Bonds (Gravois Bluffs), 7% due 10/01/2021
1,000 Kansas City, Missouri, IDA, First Mortgage Health Facilities Revenue Bonds 1,013
(Bishop Spencer Place), Series A, 6.50% due 1/01/2035
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Nevada - 0.2% 430 Clark County, Nevada, Improvement District No. 142 Special Assessment, 443
6.375% due 8/01/2023
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New Jersey - 15.0% Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds
(Holt Hauling & Warehousing), AMT, Series A (d)(e):
2,000 9.625% due 1/01/2011 255
4,500 9.875% due 1/01/2021 574
6,000 Camden County, New Jersey, Pollution Control Financing Authority, Solid 6,000
Waste Resource Recovery Revenue Refunding Bonds, AMT, Series A,
7.50% due 12/01/2010
2,170 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 2,259
1,500 New Jersey EDA, IDR, Refunding (Newark Airport Marriott Hotel), 7% 1,567
due 10/01/2014
New Jersey EDA, Retirement Community Revenue Bonds, Series A:
1,000 (Cedar Crest Village Inc. Facility), 7.25% due 11/15/2031 1,044
3,700 (Seabrook Village Inc.), 8.125% due 11/15/2023 3,971
New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc.
Project), AMT:
3,050 6.625% due 9/15/2012 2,800
5,135 6.25% due 9/15/2029 3,996
1,870 New Jersey Health Care Facilities Financing Authority Revenue Bonds 1,829
(Pascack Valley Hospital Association), 6.625% due 7/01/2036
2,675 Tobacco Settlement Financing Corporation of New Jersey, Asset Backed Revenue 2,660
Refunding Bonds, 5.75% due 6/01/2032
1,075 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 1,151
7% due 6/01/2041
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New Mexico - 2.8% 5,000 Farmington, New Mexico, PCR, Refunding (Tucson Electric Power Co.-San 5,232
Juan Project), Series A, 6.95% due 10/01/2020
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New York - 3.9% 1,000 Dutchess County, New York, IDA, Civic Facility Revenue Bonds (Saint Francis 1,031
Hospital), Series B, 7.50% due 3/01/2029
New York City, New York, City IDA, Civic Facility Revenue Bonds:
350 Series C, 6.80% due 6/01/2028 360
1,495 (Special Needs Facility Pooled Program), Series C-1, 6.50% due 7/01/2024 1,510
1,730 New York City, New York, City IDA, Special Facility Revenue Bonds (British 1,810
Airways PLC Project), AMT, 7.625% due 12/01/2032
Utica, New York, GO, Public Improvement:
700 9.25% due 8/15/2005 713
635 9.25% due 8/15/2006 676
Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
-----------------------------------------------------------------------------------------------------------------------------------
Face
State Amount Municipal Bonds Value
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$ 1,180 Westchester County, New York, IDA, Continuing Care Retirement, Mortgage $ 1,194
Revenue Bonds (Kendal on Hudson Project), Series A, 6.50% due 1/01/2034
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North Carolina - 0.6% 1,000 North Carolina Medical Care Commission, Retirement Facilities, First 1,044
Mortgage Revenue Bonds (Givens Estates Project), Series A, 6.50%
due 7/01/2032
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Oregon - 0.7% 1,310 Western Generation Agency, Oregon, Cogeneration Project Revenue 1,343
Bonds (Wauna Cogeneration Project), AMT, Series B, 7.40%
due 1/01/2016
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Pennsylvania - 6.2% 1,750 Chester County, Pennsylvania, Health and Education Facilities Authority, 1,869
Senior Living Revenue Refunding Bonds (Jenners Pond Inc. Project),
7.625% due 7/01/2034
Montgomery County, Pennsylvania, Higher Education and Health Authority
Revenue Bonds (Faulkeways at Gwynedd Project):
900 6.75% due 11/15/2024 947
925 6.75% due 11/15/2030 968
1,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Whitemarsh 1,732
Continuing Care Project), 6.25% due 2/01/2035
Philadelphia, Pennsylvania, Authority for IDR:
1,600 (Air Cargo), AMT, Series A, 7.50% due 1/01/2025 1,651
4,460 Commercial Development, 7.75% due 12/01/2017 4,557
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Tennessee - 1.0% 1,800 Shelby County, Tennessee, Health, Educational and Housing Facilities Board 1,842
Revenue Bonds (Germantown Village), Series A, 7.25% due 12/01/2034
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Texas - 9.0% 1,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), 1,065
First Tier, Series A, 6.70% due 1/01/2028
Brazos River Authority, Texas, PCR, Refunding, AMT:
2,530 (Texas Utility Company), Series A, 7.70% due 4/01/2033 2,981
2,760 (Utilities Electric Company), Series B, 5.05% due 6/01/2030 2,810
1,220 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc. 1,356
Project), Series B, 7.75% due 12/01/2018
1,660 Grand Prairie, Texas, Housing Finance Corporation Revenue Bonds 1,607
(Independent Senior Living Center), 7.75% due 1/01/2034
1,000 Houston, Texas, Health Facilities Development Corporation, Retirement Facility 1,068
Revenue Bonds (Buckingham Senior Living Community), Series A, 7.125%
due 2/15/2034
2,310 Matagorda County, Texas, Navigation District Number 1, Revenue Refunding 2,547
Bonds (Reliant Energy Inc.), Series C, 8% due 5/01/2029
1,330 Port Corpus Christi, Texas, Individual Development Corporation, Environmental 1,427
Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031
2,000 Port Corpus Christi, Texas, Revenue Refunding Bonds (Celanese Project), AMT, 2,087
Series B, 6.70% due 11/01/2030
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Utah - 1.2% 2,240 Carbon County, Utah, Solid Waste Disposal, Revenue Refunding Bonds (Laidlaw 2,298
Environmental), AMT, Series A, 7.45% due 7/01/2017
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Apex Municipal Fund, Inc.
Schedule of Investments as of March 31, 2005 (in Thousands)
-----------------------------------------------------------------------------------------------------------------------------------
Face
State Amount Municipal Bonds Value
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Virginia - 6.5% $ 2,480 Dulles Town Center, Virginia, Community Development Authority, Special $ 2,538
Assessment Tax (Dulles Town Center Project), 6.25% due 3/01/2026
32,600 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior 9,699
Series B, 5.875%** due 8/15/2025
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West Virginia - 0.4% 875 Princeton, West Virginia, Hospital Revenue Refunding Bonds (Community 809
Hospital Association Inc. Project), 6.20% due 5/01/2013
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Wisconsin - 0.7% 1,320 Wisconsin State Health and Educational Facilities Authority Revenue Bonds 1,334
(New Castle Place Project), Series A, 7% due 12/01/2031
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Wyoming - 1.0% 1,800 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC 1,826
Corporation Project), AMT, Series A, 7% due 6/01/2024
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U.S. Virgin Islands 2,100 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds 2,292
- 1.2% (Hovensa Coker Project), AMT, 6.50% due 7/01/2021
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Total Investments (Cost - $184,707*) - 98.8% 185,590
Other Assets Less Liabilities - 1.2% 2,166
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Net Assets - 100.0% $ 187,756
=========
* The cost and unrealized appreciation (depreciation) of investments as of
March 31, 2005, as computed for federal income tax purposes, were as
follows:
(in Thousands)
-------------------------------------------------------------------------
Aggregate cost $ 184,688
=========
Gross unrealized appreciation $ 9,269
Gross unrealized depreciation (8,367)
---------
Net unrealized appreciation $ 902
=========
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
(a) AMBAC Insured.
(b) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features which qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(c) Prerefunded.
(d) Non-income producing - issuer filed for bankruptcy or is in default of
interest payments.
(e) Restricted securities as to resale, representing 0.4% of net assets:
(in Thousands)
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Acquisition
Issue Date Cost Value
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Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds
(Holt Hauling & Warehousing), AMT, Series A, 9.625% due 1/01/2011 1/29/1997 $2,116 $ 255
Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds 2/06/1996-
(Holt Hauling & Warehousing), AMT, Series A, 9.875% due 1/01/2021 1/29/1997 $4,644 $ 574
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Total $6,760 $ 829
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to the
filing date of this report.
2(b) - There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal quarter of the period
covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Apex Municipal Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
Apex Municipal Fund, Inc.
Date: May 23, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
Apex Municipal Fund, Inc.
Date: May 23, 2005
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
Apex Municipal Fund, Inc.
Date: May 23, 2005