<PAGE> 1
[AIM LOGO APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM MUNICIPAL BOND FUND
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE> 2
AIM MUNICIPAL BOND FUND
For shareholders who seek a high level of current income exempt from
federal income taxes by investing in a diversified portfolio of municipal
bonds.
ABOUT FUND PERFORMANCE DATA THROUGHOUT THIS REPORT:
o AIM Municipal Bond Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
Unless otherwise indicated, the Fund's performance is computed without a
sales charge.
o When sales charges are included in performance figures, Class A share
performance reflects the 4.75% maximum sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from
5% to 0% at the beginning of the seventh year. The performance of the
Fund's Class B shares will differ from that of Class A shares. Total
return reflects reinvestment of all distributions.
o The Fund's investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
o The Fund's portfolio composition may change and there is no assurance the
Fund will continue to hold these same securities.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o An investment cannot be made in the indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
================================================================================
AVERAGE ANNUAL TOTAL RETURN
For periods ended June 30, 1995
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
------------ ------------
<S> <C> <C>
CLASS A SHARES
10 Years 9.21% 8.67%
5 Years 8.02 6.98
1 Year 6.74 1.71
6 Months 7.31 2.19
CLASS B SHARES
Inception (9/1/93) 2.15% 0.13%
1 Year 5.87 0.87
6 Months 6.87 1.87
</TABLE>
Six-month performance includes reinvested distributions of $0.234 and $0.201
for Class A and Class B shares, respectively.
- --------------------------------------------------------------------------------
<PAGE> 3
CHAIRMAN'S LETTER
Dear Shareholder:
Following a dramatic rally in bond prices, AIM
[PHOTO of Municipal Bond Fund closed the six months ended June
Charles T. Bauer, 30, 1995, with a solid total return of 7.31% for
Chairman of Class A shares, and 6.87% for Class B shares.
the Board of The Fund also delivered attractive tax-free
the Fund, income during the period, posting a 30-day yield of
APPEARS HERE] 4.38% for Class A shares, and 3.87% for Class B
shares, based on the maximum offering price as of
June 30, 1995. The yield calculation reflects the yield to maturity of the
securities in the portfolio, and includes both interest and amortization of any
discount or premium to the face value of the securities.
As of June 30, 1995, the taxable equivalent on the 30-day yield on
Class A and Class B shares was 7.25% and 6.41%, respectively, when adjusted for
the highest marginal federal income tax rate of 39.6%. This compares favorably
to market yields on U.S. Treasury five-year notes and 30-year bonds which stood
at 5.97% and 6.62%, respectively, as of June 30, 1995.
The Fund's net assets increased 8% to $288 million during the six
months ended June 30, 1995. Net asset value per share increased to $8.11 from
$7.78 for both Class A and Class B shares.
In addition to delivering attractive tax-free income, AIM Municipal
Bond Fund has built a solid record of long-term performance, achieving
positive total returns in eight of the last 10 calendar years. While the Fund
has fluctuated with changing markets during those years, and past performance
cannot guarantee future comparable results, shareholders who retained a
long-term perspective have enjoyed the greatest returns on their investment.
AIM Municipal Bond Fund is managed according to AIM's research-based,
quality-oriented, investment discipline. We believe our faithful application
of this philosophy in fund management has been a major contributor to AIM's
growth. In the first six months of this year, total assets under AIM's
management increased by more than 18% to approximately $32.5 billion. While
part of this growth can be attributed to favorable market conditions, it also
reflects the addition of more than 320,000 shareholder accounts during the
period.
We appreciate your continued confidence in AIM Municipal Bond Fund. As
always, we are ready to respond to your questions or comments about this
report. Please call Client Services at 800-959-4246 during normal business
hours. For automated account information 24 hours a day, call the AIM Investor
Line toll-free at 800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
DISCUSSION & ANALYSIS
-------------
The dramatic
rise in prices for
municipal
securities con-
tributed to the
solid six-month
performance for
AIM Municipal
Bond Fund.
-------------
BOND PERFORMANCE IMPROVES IN 1995
Following 1994, when bonds had one of their worst years on record, investors
were more than ready for good news.
It came in the form of positive evidence that the Federal Reserve
Board's long sought after "soft landing" for the economy--a strategy to slow
growth, but not to the point of recession--was working. More than a year after
the Fed began efforts to slow the economy to a more sustainable 2.5% annual
pace, the results were in--a 2.7% annual growth rate in the first quarter of
1995 showed the economy had slowed decidedly from the 5.1% annual rate it
logged in the fourth quarter of 1994.
The news was a tonic for investors who could relax the inflation vigil
and take advantage of opportunity abounding in financial markets. Falling
interest rates boosted values of existing fixed-income securities, with higher
quality issues attracting the most investors.
During the second quarter of 1995, economic growth dropped to an
annual rate of less than 1%. Government bonds, particularly the five- and
10-year U.S. Treasury notes, rallied as investors began to anticipate that the
Fed would ease short-term interest rates.
Municipal securities also posted attractive gains; however, their
performance lagged that of taxable government bonds largely due to continuing
concern over problems with Orange County, California, debt. Last fall, the
county became the biggest municipal bankruptcy case in history with $1.7
billion in investment losses.
In addition, municipals have been shadowed since April by concerns
over proposed tax-reform legislation which could limit their tax benefits to
investors relative to taxable securities.
While these concerns certainly flagged the performance of municipal
securities relative to taxable debt, demand nonetheless outpaced supply. Unlike
other financial markets, investors in municipal securities tend to hold their
bonds until maturity to gain the maximum tax advantage. With relatively fewer
issues trading in secondary markets, investors tend to rely more heavily on new
issue supply.
With fewer bonds in the secondary market, and new issuance down almost
40% from a year ago, yields on municipal securities have declined since
November 1994. Investors preferred higher-quality issues in the short- to
intermediate-term range, in the belief that these issues would be more
resilient should Congress diminish the tax advantages of their holdings.
As a result, the spread between the seven-year municipal note and the
30-year municipal bond widened from 101 basis points at the beginning of the
period to about 110 basis points by June 30, 1995. (A basis point is 1/100 of
1% of yield. The difference between 5.00% and 6.00% is 100 basis points.) The
effect was to price long-term municipal bonds attractively relative to similar
term taxable government debt. By June 30, 1995, triple-A long-term insured
municipal bonds yielded 6.10%--roughly 92% of the yield on long-term taxable
government bonds.
================================================================================
<TABLE>
<CAPTION>
TO
MATCH YOU WOULD NEED AN EQUIVALENT TAXABLE YIELD OF:
A TAX- -------------------------------------------------------------------
FREE In 28% In 31% In 36% In 39.6%
YIELD tax tax tax tax
OF: bracket bracket bracket bracket
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3% 4.17% 4.35% 4.69% 4.97%
- --------------------------------------------------------------------------------
4% 5.56% 5.80% 6.25% 6.62%
- --------------------------------------------------------------------------------
5% 6.94% 7.25% 7.81% 8.28%
- --------------------------------------------------------------------------------
6% 8.33% 8.70% 9.38% 9.93%
- --------------------------------------------------------------------------------
</TABLE>
This chart is for illustrative purposes and is not intended to be
representative of any AIM fund performance.
See important Fund disclosure on inside front cover.
2
<PAGE> 5
YOUR INVESTMENT PORTFOLIO
The dramatic rise in prices for municipal securities, particularly in the
intermediate-term range, con-tributed to the solid six-month performance for
AIM Municipal Bond Fund as of June 30, 1995. The Fund maintained an average
portfolio maturity of about 16 years, and duration was reduced to about five
years. This allowed the Fund to capture relatively attractive yields at lower
risk than were available with long-term bonds.
===============================================================================
CURRENT YIELD ADVANTAGE
30-day Yield as of 6/30/95.
[BAR CHART APPEARS HERE DEPICTING 30-DAY YIELD AS OF JUNE 30, 1995 FOR
10-YEAR U.S. TREASURY NOTE (6.20%)*, 30-YEAR U.S.
TREASURY BOND (6.62%)* AND AIM MUNICIPAL BOND FUND
TAXABLE EQUIVALENT YIELD CLASS A SHARES (7.25%)**]
6.41% is the taxable equivalent yield for the Fund's Class B shares. *U.S.
Treasury bonds, notes, and bills are guaranteed as to the timely payment of
principal and interest. Fund shares are not insured and their value will vary
with market conditions. **Taxable equivalent yields assume the highest marginal
federal income tax rate of 39.6%. Source: IRS, 1995.
The Fund also focused on adding higher-quality bonds--positions in
triple-A rated securities were increased to more than half the portfolio at
52%. Double-A securities were increased to 19% of the portfolio, and
higher-yielding A-rated securities represented 22%. Credit-enhanced
securities--which are backed by insurance, escrowed with U.S. Treasuries, or
letters of credit--comprised about 43% of the portfolio.
The Fund was broadly diversified to minimize volatility. Positions in
pre-refunded and insured bonds were strong performers, and the Fund's
intermediate-term notes maturing in less than 10 years were among the best
performing municipal securities sectors during the reporting period.
Overall, the portfolio was composed of 77% revenue bonds and 23%
general obligation bonds.
Standard & Poor's Corporation, a widely known credit-rating agency,
reaffirmed the Fund's credit quality rating of Af. The Fund also received S&P's
safest possible risk rating of a+ for long-term funds. S&P ratings are
historical and are based on an annual analysis of the Fund's portfolio credit
quality, composition, and management.
OUTLOOK FOR THE FUTURE
Two concerns pressuring the municipal market--problems in Orange County and
possible tax reform--could abate as investor sentiment shifts in the coming
months. Orange County appears to have secured agreements with its creditors for
restructuring its outstanding debt. Further, the debate over tax reform is far
from conclusive. Many analysts maintain that any drastic proposals by Congress
which severely diminish the tax advantages of municipal bonds would be strongly
challenged by issuers and investors.
We see a very positive message in the bond market's impressive
performance so far this year: investors believe inflation is not a problem,
even with moderate economic growth. As economic growth slowed in the second
quarter to significantly less than the Fed's targeted range for optimal
economic growth, the central bank demonstrated it also was a recession-fighter.
The Fed recently lowered the federal funds rate on overnight loans
between banks by 0.25%--the first such action by the central bank since
September 1992. The move, though widely anticipated, was nonetheless celebrated
in stock and bond markets. Several major banks lowered their prime lending
rates from the highest point in almost four years.
With inflation still in check, confidence in the central bank's
monetary policy remains high. Further, analysts believe there could be an
additional reduction in interest rates later in the year given that the Fed has
not, in the past, refrained from a policy of easing after a single rate cut of
0.25%.
Rather than try to determine the future direction of interest rates or
political concerns, AIM Municipal Bond Fund continues its focus on generating
optimal current tax-free income with reasonable risk.
See important Fund disclosure on inside front cover.
3
<PAGE> 6
FINANCIALS
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ALASKA-2.55%
Alaska (State of) Housing Finance Corp.; Collateralized
First Veterans' Home Mortgage Series A-2 RB
6.75%, 12/01/24(b) AAA Aaa $3,915 $ 3,990,598
- ----------------------------------------------------------------------------------------------------------------------------------
Alaska (State of) Housing Finance Corp.; Collateralized
Mortgage Program First Series RB
6.875%, 06/01/33 AAA Aaa 2,215 2,284,817
- ----------------------------------------------------------------------------------------------------------------------------------
Alaska (State of) Housing Finance Corp.; Series A RB
6.375%, 12/01/12 A+ Aa 1,000 1,065,940
- ----------------------------------------------------------------------------------------------------------------------------------
7,341,355
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS-1.78%
Fayetteville (City of); Water and Sewer Refunding and Improvement
Series 1992 RB
6.15%, 08/15/12 A A 2,000 2,073,100
- ----------------------------------------------------------------------------------------------------------------------------------
Little Rock (City of); Capital Improvement Series B GO
5.60%, 02/01/04 AA+ Aa 1,000 1,023,790
- ----------------------------------------------------------------------------------------------------------------------------------
Little Rock (City of); Sewer Improvement Series B RB
5.75%, 02/01/06 AA+ Aa 2,000 2,047,400
- ----------------------------------------------------------------------------------------------------------------------------------
5,144,290
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA-2.02%
Arizona (State of) Educational Loan Marketing Corp.; RB
6.125%, 09/01/02(b) -- Aa 1,900 1,956,829
- ----------------------------------------------------------------------------------------------------------------------------------
Pima (County of) Sunnyside Unified School District #12;
School Improvement Series 1995 GO
5.30%, 07/01/05(c) AAA Aaa 500 499,610
- ----------------------------------------------------------------------------------------------------------------------------------
Pima (County of) Unified School District #10 (Amphitheater);
School Improvement Series 1992 E GO
6.50%, 07/01/05 A+ A 3,100 3,358,013
- ----------------------------------------------------------------------------------------------------------------------------------
5,814,452
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA-0.57%
Sacramento (City of); California Cogeneration Authority
Procter & Gamble Project Series 1995 RB
7.00%, 07/01/04 BBB- -- 500 526,885
- ----------------------------------------------------------------------------------------------------------------------------------
San Francisco (City and County of) Parking Authority;
Parking Meter Series 1994 RB
7.00%, 06/01/13(c) AAA Aaa 1,000 1,113,570
- ----------------------------------------------------------------------------------------------------------------------------------
1,640,455
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
COLORADO-0.98%
Adams County School District Number 1; Unlimited Tax Building
Series 1992-A GO
6.625%, 12/01/02(d)(e) AAA Aaa $ 500 $ 559,780
- --------------------------------------------------------------------------------------------------------------------------------
Colorado (State of) Housing Finance Authority (Single Family
Residential Housing); Series 1987 B RB
9.00%, 09/01/17 -- Aa 625 651,225
- --------------------------------------------------------------------------------------------------------------------------------
Mesa County School District #51; 1989 Series B
Certificates of Participation
6.875%, 12/01/05(c) AAA Aaa 1,465 1,603,443
- --------------------------------------------------------------------------------------------------------------------------------
2,814,448
- --------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT-4.93%
Connecticut (State of); General Purpose Public Improvement
Series 1992-A GO
6.50%, 03/15/02(d)(e) NRR NRR 5,500 6,109,345
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut (State of) Development Authority (Connecticut
Power & Light); Series 1993 A RB
4.10%, 09/01/28(f) A-1+ VMIG-1 900 900,000
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut Health and Educational Facilities Authority
(Hospital of Saint Raphael); Series F RB
6.20%, 07/01/14(c) AAA Aaa 1,100 1,126,598
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut Resource Recovery Authority (American Ref-Fuel Co.)
(Southeastern Connecticut Project);
Corporate Credit Series 1988 RB
8.10%, 11/15/15(b) A A2 925 1,021,163
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut Resource Recovery Authority (American Ref-Fuel Co.)
(Southeastern Connecticut Project); Series 1988 A RB
7.875%, 11/15/06(b) AA- Baa1 1,700 1,862,384
- --------------------------------------------------------------------------------------------------------------------------------
8.00%, 11/15/15(b) AA- Baa1 1,000 1,100,930
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut Resource Recovery Authority (Bridgeport Resco Corp.
Ltd. Partners); Project A 1985 RB
7.625%, 01/01/09 A A 2,000 2,101,940
- --------------------------------------------------------------------------------------------------------------------------------
14,222,360
- --------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-0.93%
District of Columbia; Unlimited Tax Refunding Series 1986 A GO
7.875%, 06/01/96(d)(e) AAA Aaa 1,000 1,051,420
- --------------------------------------------------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series D GO
6.60%, 06/01/96 B Bb 1,600 1,620,944
- --------------------------------------------------------------------------------------------------------------------------------
2,672,364
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA-2.12%
Dade (County of); Water and Sewer System Series 1994 RB
4.20%, 10/05/22(f) A-1+ VMIG-1 2,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Escambia (County of) (Champion International Corp. Project); PCR
6.90%, 08/01/22(b) BBB Baa1 1,125 1,165,444
- --------------------------------------------------------------------------------------------------------------------------------
Leon (County of); Series A Certificates of Participation
5.875%, 01/01/98 -- Baa1 1,700 1,729,189
- --------------------------------------------------------------------------------------------------------------------------------
Miami (City of) Parking System; Series 1992 A RB
6.70%, 10/01/06 A A 1,120 1,213,408
- --------------------------------------------------------------------------------------------------------------------------------
6,108,041
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
GEORGIA-1.67%
Georgia Municipal Electric Authority; Series P RB
8.00%, 01/01/98(d)(e) AAA Aaa $2,000 $ 2,209,680
- ----------------------------------------------------------------------------------------------------------------------------------
Hapeville Development Authority (Hapeville Hotel Limited Partner-
ship Project); Series 1985 Adjustable Tender IDR
4.35%, 11/01/15(f) -- P-1 300 300,000
- ----------------------------------------------------------------------------------------------------------------------------------
Private Colleges and University Facilities Authority
(Mercer University); RB
9.20%, 11/01/95(d)(e) AAA Aaa 250 259,212
- ----------------------------------------------------------------------------------------------------------------------------------
Savannah (City of) Economic Development Authority
(Fuji Vegetable Oil Co. Project); General Obligation IDR
4.15%, 10/01/99(b)(f)(g) -- -- 1,000 1,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Savannah (City of) Economic Development Authority
(Hershey Foods Corp. Project); IDR
6.60%, 06/01/12 AA- -- 1,000 1,052,100
- ----------------------------------------------------------------------------------------------------------------------------------
4,820,992
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS-9.25%
Berwyn (City of) (Macneal Memorial Hospital Association);
Hospital Series 1991 RB
7.00%, 06/01/15(c) AAA Aaa 3,250 3,483,643
- ----------------------------------------------------------------------------------------------------------------------------------
Cook (County of); Series 1992 B GO
5.75%, 11/15/07(c) AAA Aaa 2,000 2,037,500
- ----------------------------------------------------------------------------------------------------------------------------------
Elgin (City of); GO
5.90%, 01/01/13 -- Aa 715 711,132
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax Series 1993 B RB
6.50%, 06/15/13 AAA A1 1,500 1,545,795
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(CPC International Project); PCR
6.75%, 05/01/16 -- A2 2,500 2,564,725
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority (Evangelical Hospital Corp.); RB
6.25%, Series A 04/15/22 AA- -- 1,000 994,730
- ----------------------------------------------------------------------------------------------------------------------------------
6.25%, Series 1992-C 04/15/22 AA- A1 1,150 1,143,940
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority (Franciscan Sisters Health Care);
Refunding Series 1992 RB
6.40%, 09/01/04(c) AAA Aaa 2,475 2,673,767
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority (Ravenswood Hospital Medical
Center); Refunding Series 1987 A RB
8.80%, 06/01/06 -- Baa1 1,000 1,066,480
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois State Toll Highway Authority; Toll Highway
Refunding Series 1993 B RB
4.25%, 01/01/10(f) A-1+ VMIG-1 3,300 3,300,000
- ----------------------------------------------------------------------------------------------------------------------------------
Metropolitan Fair and Exposition Authority; Series 1986 RB
6.00%, 06/01/14(c) AAA Aaa 2,500 2,499,825
- ----------------------------------------------------------------------------------------------------------------------------------
Peoria and Pekin and Waukegan (Cities of); GNMA Collateralized
Mortgage Series 1990 RB
7.875%, 08/01/22(b) AAA -- 165 173,254
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(Continued)
University of Illinois Auxiliary Facilities System; Series 1991 RB
5.75%, 04/01/22 AA- Aa $4,750 $ 4,489,795
- ----------------------------------------------------------------------------------------------------------------------------------
26,684,586
- ----------------------------------------------------------------------------------------------------------------------------------
IOWA-0.33%
Salix (City of) (Illinois Gas and Electric); PCR
5.75%, 06/01/03 -- A3 960 962,851
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY-0.72%
Trimble (County of) (Louisville Gas & Electric); PCR
7.25%, 12/01/16 AA Aa2 2,000 2,088,520
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA-2.40%
East Baton Rouge (Parish of) (Exxon Project); Series 1989 PCR
4.25%, 11/01/19(f) A-1+ P-1 1,500 1,500,000
- ----------------------------------------------------------------------------------------------------------------------------------
Louisiana Public Facilities Authority (Louisiana Department of Health
and Hospital Medical Center of Louisiana at New Orleans
Project); Series 1992 RB
6.125%, 10/15/07(c) AAA -- 2,775 2,859,110
- ----------------------------------------------------------------------------------------------------------------------------------
Louisiana Public Facilities Authority (Our Lady of Lake Regional
Hospital); Hospital Refunding Series C RB
6.00%, 12/01/07(c) AAA Aaa 2,500 2,569,500
- ----------------------------------------------------------------------------------------------------------------------------------
6,928,610
- ----------------------------------------------------------------------------------------------------------------------------------
MAINE-0.44%
Maine (State of) Education Loan Authority;
Education Loan Series A-2 RB
6.95%, 12/01/07(b) -- A 1,235 1,282,177
- ----------------------------------------------------------------------------------------------------------------------------------
MARYLAND-0.42%
Maryland Health and Higher Education Facilities Authority
(Doctors Community Hospital Inc.); Series 1990 RB
8.75%, 07/01/00(d)(e) -- Aaa 1,000 1,197,480
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS-5.15%
Massachusetts (State of); Consolidated Loan Series 1991 C GO
7.00%, 08/01/01(d)(e) NRR NRR 2,450 2,774,454
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Health and Education Facilities Authority
(Anna Jaques Hospital Issue); Series B RB
6.875%, 10/01/12 -- Baa1 1,400 1,399,090
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Health and Education Facilities Authority
(Lowell General Hospital); Series 1991 A RB
8.40%, 06/01/11 -- Baa1 3,550 3,926,442
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Health and Education Facilities Authority
(Valley Regional Health System Issue); Series 1990 B RB
8.00%, 07/01/00(d)(e) NRR Aaa 3,000 3,493,290
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Municipal Wholesale Electric Cooperative Power
Supply; System Series 1992 A RB
6.75%, 07/01/08(c) AAA Aaa 3,000 3,268,920
- ----------------------------------------------------------------------------------------------------------------------------------
14,862,196
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MICHIGAN-4.57%
Detroit (City of) School District; School Building and Site
(Unlimited Tax) Series 1992 GO
6.00%, 05/01/05 AA A1 $1,000 $ 1,038,410
- ----------------------------------------------------------------------------------------------------------------------------------
6.15%, 05/01/07 AA A1 1,300 1,345,474
- ----------------------------------------------------------------------------------------------------------------------------------
Lake Orion Community School District; School Building and Site
(Unlimited Tax) Series 1994 GO
7.00%, 05/01/15(c) AAA Aaa 2,500 2,738,125
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority; RB
6.60%, 04/01/12 A+ -- 1,000 1,012,960
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund (General Motors Corp. Project);
Refunding Series 1987 PCR
6.625%, 03/01/07 BBB+ Baa1 1,000 1,013,550
- ----------------------------------------------------------------------------------------------------------------------------------
Monroe (County of) (Detroit Edison Co.); PCR
10.50%, Series 1985 A, 12/01/95(d)(e) NRR NRR 2,000 2,104,020
- ----------------------------------------------------------------------------------------------------------------------------------
10.125%, Series 1985 I, 09/01/05 BBB+ A3 3,800 3,926,844
- ----------------------------------------------------------------------------------------------------------------------------------
13,179,383
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI-1.84%
Mississippi Higher Education Assistance Corp.; Student Loan
Series 1994 C RB
7.50%, 09/01/09(b) -- A 5,000 5,308,350
- ----------------------------------------------------------------------------------------------------------------------------------
MISSOURI-1.07%
Kansas City Industrial Development Authority
(General Motors Corp. Project); PCR
6.05%, 04/01/06 BBB+ Baa1 1,435 1,453,325
- ----------------------------------------------------------------------------------------------------------------------------------
Kansas City Municipal Assistance Corp. (Truman Medical Center
Charitable Foundation); Leasehold Improvement
Series 1991 A RB
7.00%, 11/01/08 A A 605 651,488
- ----------------------------------------------------------------------------------------------------------------------------------
Missouri (State of) Environmental Improvement and Energy
Resources; Series 1995C PCR
5.85%, 01/01/10 -- Aa 1,000 987,500
- ----------------------------------------------------------------------------------------------------------------------------------
3,092,313
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA-0.78%
Nebraska Higher Education Loan Program, Inc. (A-6 Junior
Subordinated Bond); Series 1993 A RB
5.90%, 06/01/03(b) -- A 2,250 2,251,237
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA-1.47%
Humboldt (County of) (Sierra Pacific Project); Series 1987 PCR
6.55%, 10/01/13(c) AAA Aaa 3,000 3,179,490
- ----------------------------------------------------------------------------------------------------------------------------------
Las Vegas (City of); 1992 Limited Tax GO
6.50%, 10/01/08(c) AAA Aaa 1,000 1,053,630
- ----------------------------------------------------------------------------------------------------------------------------------
4,233,120
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW HAMPSHIRE-2.06%
New Hampshire Housing Finance Authority; Single Family
Residential Mortgage Series 1987 B RB
8.625%, 07/01/13(b) A+ Aa $1,505 $ 1,571,792
- ----------------------------------------------------------------------------------------------------------------------------------
New Hampshire State Turnpike System; Series 1990 RB
7.40%, 04/01/00(d)(e) AAA Aaa 3,850 4,356,968
- ----------------------------------------------------------------------------------------------------------------------------------
5,928,760
- ----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY-2.44%
Camden (County of) Municipal Utilities Authority; Series 1987 RB
8.25%, 12/01/17(c) AAA Aaa 2,000 2,195,640
- ----------------------------------------------------------------------------------------------------------------------------------
Hudson County Correctional Facility; Certificates of Participation
Series 1992 RB
6.60%, 12/01/21(c) AAA Aaa 1,250 1,310,750
- ----------------------------------------------------------------------------------------------------------------------------------
New Jersey City Economic Development Authority (Atlantic City
Sewer Co.); Sewer Facility Series
1991 RB 7.25%, 12/01/11(b)(g) -- -- 2,000 2,166,300
- ----------------------------------------------------------------------------------------------------------------------------------
New Jersey Health Care Facility Financing Authority
(St. Peters Medical Center); Series 1987 C RB
8.60%, 07/01/17(c) AAA Aaa 1,250 1,355,488
- ----------------------------------------------------------------------------------------------------------------------------------
7,028,178
- ----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO-2.37%
Albuquerque (City of) (Albuquerque Academy Project);
Educational Facilities Series 1995 RB
5.75%, 10/15/15 AA- Aa 915 904,121
- ----------------------------------------------------------------------------------------------------------------------------------
Los Alamos (County of); Utility Series A RB
6.00%, 07/01/15(c) AAA Aaa 2,000 2,022,420
- ----------------------------------------------------------------------------------------------------------------------------------
Rio Rancho (City of); Water and Wastewater System
Series 1995 A RB
5.90%, 05/15/12(c) AAA Aaa 2,000 1,968,380
- ----------------------------------------------------------------------------------------------------------------------------------
Santa Fe (City of); Series 1994 A RB
6.25%, 06/01/15(c) AAA Aaa 1,900 1,949,362
- ----------------------------------------------------------------------------------------------------------------------------------
6,844,283
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK-10.52%
New York (City of); GO
8.25%, Series 1991 F 11/15/01(d)(e) NRR Aaa 1,840 2,223,714
- ----------------------------------------------------------------------------------------------------------------------------------
8.25%, Series 1991 F 11/15/15(e) A- Baa1 160 181,334
- ----------------------------------------------------------------------------------------------------------------------------------
7.65%, Series 1992 F 02/01/06 A- Baa1 4,775 5,232,206
- ----------------------------------------------------------------------------------------------------------------------------------
7.70%, Series D 02/01/09 A- Baa1 2,000 2,202,580
- ----------------------------------------------------------------------------------------------------------------------------------
7.20%, Series H 02/01/15 A- Baa1 500 529,135
- ----------------------------------------------------------------------------------------------------------------------------------
7.00%, Series C, Sub-Series C-1 08/01/17 A- Baa1 2,000 2,051,060
- ----------------------------------------------------------------------------------------------------------------------------------
7.00%, Series B 02/01/18(c) AAA Aaa 1,000 1,076,160
- ----------------------------------------------------------------------------------------------------------------------------------
7.00%, Series H 02/01/20 A- Baa1 350 358,568
- ----------------------------------------------------------------------------------------------------------------------------------
New York City Industrial Development Agency (The Lighthouse Inc.
Project); Series 1992 RB
6.50%, 07/01/22(g) AA Aa2 1,500 1,549,380
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Environmental Facility Corp.; Water Revenue
Series E PCR
6.875%, 06/15/10 A Aa 3,400 3,734,186
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW YORK-(continued)
New York State Medical Care Facilities Authority (Mental Health
Services); Refunding Series 1987 A RB
8.875%, 08/15/97(d)(e) AAA Aaa $ 940 $ 1,047,367
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corp.; Capital Facilities 1991
Series 3 RB
7.375%, 01/01/02(d)(e) NRR Aaa 7,850 9,152,394
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corp.; Higher Education
Technology Grants RB
5.90%, 04/01/09(c) AAA Aaa 1,000 1,017,690
- ----------------------------------------------------------------------------------------------------------------------------------
30,355,774
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA-3.25%
North Carolina Eastern Municipal Power Agency; Series 1988 A RB
8.00%, 01/01/98(d)(e) NRR Aaa 3,000 3,314,520
- ----------------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power Agency; Series A RB
6.125%, 01/01/10(c) AAA Aaa 1,500 1,534,065
- ----------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency (No. 1 Catawba Electric
Project); Refunding RB
7.250%, 01/01/07 A A 2,750 3,078,487
- ----------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency (No. 1 Catawba Electric
Project); Series 1990 RB
6.50%, 01/01/10(d) AAA Aaa 260 287,651
- ----------------------------------------------------------------------------------------------------------------------------------
6.50%, 01/01/10(c) AAA Aaa 1,115 1,150,602
- ----------------------------------------------------------------------------------------------------------------------------------
9,365,325
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO-2.89%
Akron Bath Copley Joint Township (Akron City Hospital);
Series 1987 RB
8.875%, 11/15/97(d)(e) NRR Aaa 1,610 1,805,196
- ----------------------------------------------------------------------------------------------------------------------------------
Butler (County of) Fairfield City School District; Unlimited Tax
Series 1995 GO
6.10%, 12/01/15(c) AAA Aaa 1,000 1,013,400
- ----------------------------------------------------------------------------------------------------------------------------------
Claremont (County of) (Mercy Health Care System-Province of
Cincinnati); Hospital Facilities Refunding Series 1985 A RB
9.75%, 09/01/13(c) AAA Aaa 775 797,219
- ----------------------------------------------------------------------------------------------------------------------------------
Hamilton (County of); Electric System Mortgage Series 1988 B RB
8.00%, 10/15/98(d)(e) AAA Aaa 1,000 1,126,580
- ----------------------------------------------------------------------------------------------------------------------------------
Mason (City of) Health Care Facilities (MCV Health Care
Facilities, Inc.); Series 1990 RB
7.625%, 02/01/40 AAA -- 2,200 2,426,622
- ----------------------------------------------------------------------------------------------------------------------------------
Ohio Department of Transportation (Panhandle Rail Line Project);
Series 1992 Certificates of Participation
6.50%, 04/15/12(c) AAA Aaa 1,100 1,156,100
- ----------------------------------------------------------------------------------------------------------------------------------
8,325,117
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-1.34%
Southern Oklahoma Memorial Hospital Authority;
Series 1993 A RB
5.60%, 02/01/00 A A $2,500 $ 2,539,075
- ----------------------------------------------------------------------------------------------------------------------------------
Tulsa Public Facilities Authority-Capital Improvements-Water System;
Series 1988 B RB
6.00%, 03/01/08 A+ -- 1,305 1,313,417
- ----------------------------------------------------------------------------------------------------------------------------------
3,852,492
- ----------------------------------------------------------------------------------------------------------------------------------
OREGON-0.78%
Portland (City of) Sewer System; Series 1994 A RB
6.20%, 06/01/12 A+ A1 1,200 1,229,532
- ----------------------------------------------------------------------------------------------------------------------------------
6.20%, 06/01/15 A+ A1 1,000 1,020,520
- ----------------------------------------------------------------------------------------------------------------------------------
2,250,052
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA-2.81%
Lancaster (County of) Solid Waste Management Authority;
Resource Recovery System Series 1988 A RB
8.50%, 12/15/10(b) BBB A 3,500 3,705,800
- ----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (State of); Third Series GO
6.75%, 11/15/13(c) AAA Aaa 1,250 1,340,063
- ----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Economic Development Finance Authority
(Colver Project); Resource Recovery Series 1994 D RB
7.05%, 12/01/10(b) BBB- -- 2,900 3,050,655
- ----------------------------------------------------------------------------------------------------------------------------------
8,096,518
- ----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO-1.89%
Puerto Rico (Commonwealth of) Electric Power Authority; RB
6.00%, Series 1989 07/01/10 A- Baa1 4,000 4,002,720
- ----------------------------------------------------------------------------------------------------------------------------------
7.00%, Series 1991 P 07/01/21 A- Baa1 1,325 1,454,320
- ----------------------------------------------------------------------------------------------------------------------------------
5,457,040
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND-0.85%
Rhode Island Depositors Economic Protection Corp.;
Special Obligation Series 1992 A RB
6.95%, 08/01/02(d)(e) AAA Aaa 1,250 1,427,325
- ----------------------------------------------------------------------------------------------------------------------------------
Rhode Island Housing and Mortgage Finance Agency;
Homeownership Opportunity Series 15 B RB
6.00%, 10/01/04 AA+ Aa 1,000 1,021,920
- ----------------------------------------------------------------------------------------------------------------------------------
2,449,245
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA-0.37%
South Carolina State Education Assistance Authority;
Guaranteed Student Loan Series 1990 RB
6.60%, 09/01/01(b) AA -- 500 524,880
- ----------------------------------------------------------------------------------------------------------------------------------
South Carolina State Housing Finance and Development Authority;
Homeownership Mortgage Series 1990 C RB
7.50%, 07/01/05(b) AA Aa 500 545,225
- ----------------------------------------------------------------------------------------------------------------------------------
1,070,105
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TENNESSEE-0.67%
Nashville and Davidson (Counties of) Metropolitan Government; GO
6.125%, 05/15/19 AA Aa $1,415 $ 1,428,810
- ----------------------------------------------------------------------------------------------------------------------------------
Nashville and Davidson (Counties of) Metropolitan Government;
Water and Sewer Refunding Series 1986 RB
7.25%, 01/01/06 A A1 500 516,215
- ----------------------------------------------------------------------------------------------------------------------------------
1,945,025
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS-14.48%
Austin (City of); Utility System RB
6.50%, 05/15/11 (c) AAA Aaa 1,380 1,437,491
- ----------------------------------------------------------------------------------------------------------------------------------
Brazos Higher Education Loan Authority Inc.;
Student Loan Refunding RB
6.45%, Series 1992 C-1 11/01/02(b) -- Aa 1,200 1,266,324
- ----------------------------------------------------------------------------------------------------------------------------------
6.50%, Series 1994 B-1 06/01/04(b) -- A 700 730,681
- ----------------------------------------------------------------------------------------------------------------------------------
Brazos River Authority (Houston Lighting and Power Project);
Collateralized Series 1986 A RB
7.875%, 11/01/18(b)(c) AAA Aaa 2,825 2,978,962
- ----------------------------------------------------------------------------------------------------------------------------------
Comal County Industrial Development Authority
(The Coleman Co., Inc. Project); Industrial Development
Series 1980 RB
9.25%, 08/01/00(d) NRR NRR 1,700 1,923,261
- ----------------------------------------------------------------------------------------------------------------------------------
Dallas (City of) Waterworks and Sewer System; Series 1994 A RB
6.00%, 10/01/14 AA Aa 2,030 2,039,764
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County; Toll Road Unlimited Tax General Obligation and
Subordinate Lien Refunding Series 1991 RB
6.75%, 08/01/14 AA+ Aa 3,850 4,115,650
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County Flood Control District; Limited Tax Series 1991 GO
5.60%, 10/01/97 AA+ Aa 1,000 1,025,210
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County Health Facilities Development Corp. (Saint Luke's
Episcopal Hospital Project); Series 1991 RB
6.70%, 02/15/03 AA Aa 1,000 1,080,480
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County Health Facilities Development Corp. (TIRR Project);
Series 1987 RB
4.20%, 10/01/17(f) -- VMIG-1 800 800,000
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County Mental Health and Mental Retardation Authority;
Refunding Series 1992 RB
6.25%, 09/15/10(c) AAA Aaa 4,500 4,595,985
- ----------------------------------------------------------------------------------------------------------------------------------
Houston (City of); Refunding Series 1992 C GO
6.25% 03/01/02(d)(e) NRR NRR 1,470 1,585,720
- ----------------------------------------------------------------------------------------------------------------------------------
Hurst, Euless, Bedford, Texas Independent School District;
Refunding RB
6.50%, 08/15/24(c) AAA Aaa 1,000 1,038,160
- ----------------------------------------------------------------------------------------------------------------------------------
Hurst, Euless, Bedford, Texas Independent School District;
Series 1987 GO
5.80%, 08/15/96 AA- A1 645 656,797
- ----------------------------------------------------------------------------------------------------------------------------------
Keller (City of) Independent School District; Certificates of
Participation Series 1994 RB
6.00%, 08/15/05(c) AAA Aaa 1,000 1,049,380
- ----------------------------------------------------------------------------------------------------------------------------------
North Central Texas Health Facilities Development Corp. (Baylor
Health Care Systems); Project A RB
6.00%, 05/15/13 AA Aa 500 492,955
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(continued)
Plano (City of) Independent School District; Unlimited Tax
Series 1991 B GO
5.625%, 02/15/01(d)(e) AAA Aaa $2,500 $ 2,606,450
- ----------------------------------------------------------------------------------------------------------------------------------
Richardson (City of) Hospital Authority (Richardson Medical
Center); Refunding RB
6.50%, 12/01/12 BBB- Baa 4,000 3,796,360
- ----------------------------------------------------------------------------------------------------------------------------------
Round Rock Independent School District; Series A GO
6.10%, 08/01/09(c) AAA Aaa 1,760 1,806,499
- ----------------------------------------------------------------------------------------------------------------------------------
Texas (State of) Housing Agency; Residential Development Mortgage
Series 1987 D RB
8.40%, 07/01/20(b) A+ Aa 3,830 3,992,510
- ----------------------------------------------------------------------------------------------------------------------------------
Texas National Research Laboratory Community Financing Corp.
(Superconducting Super Collider); RB
7.10%, 12/01/01(d)(e) NRR NRR 600 684,114
- ----------------------------------------------------------------------------------------------------------------------------------
Victoria (County of) Texas Hospital Citizens Medical Center; RB
6.20%, 01/01/10(c) AAA Aaa 1,000 1,026,340
- ----------------------------------------------------------------------------------------------------------------------------------
Weatherford (City of) Independent School District; Refunding
Series 1994 GO
6.40%, 02/15/12(c) AAA Aaa 1,000 1,042,150
- ----------------------------------------------------------------------------------------------------------------------------------
41,771,243
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH-1.14%
Utah (State of) Housing Finance Agency; Federally Insured Term
Subordinate Single Family Mortgage RB
6.30%, Series 1994 E-1, 07/01/06 A+ A1 1,000 1,023,060
- ----------------------------------------------------------------------------------------------------------------------------------
7.15%, Series 1994 G-1, 07/01/06 A+ A1 1,150 1,253,500
- ----------------------------------------------------------------------------------------------------------------------------------
Utah (State of) Housing Finance Agency; Series 1994 C RB
6.05%, 07/01/06 -- A1 1,000 1,003,170
- ----------------------------------------------------------------------------------------------------------------------------------
3,279,730
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS-1.17%
Virgin Islands Territory (Hugo Insurance Claims Fund); Special Tax
Bond Series 1991 GO
7.75%, 10/01/06(g)(h) -- -- 3,070 3,367,913
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA-1.05%
Lynchburg (City of) Industrial Development Authority
(VHA Mid-Atlantic States, Inc. Capital Asset Financing Program)
Series 1985 F RB
4.20%, 12/01/25(f) A1 -- 1,000 1,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Richmond (City of); Public Improvement Refunding Series B GO
6.25%, 01/15/18 AA A1 2,000 2,019,040
- ----------------------------------------------------------------------------------------------------------------------------------
3,019,040
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON-1.01%
Clark (County of) Gamas School District #117; GO
6.00%, 12/01/14(c) AAA Aaa 1,000 1,015,390
- ----------------------------------------------------------------------------------------------------------------------------------
Seattle (City of) Metropolitan Sewer District; Series T RB
6.80%, 01/01/11 AA- A1 1,780 1,897,302
- ----------------------------------------------------------------------------------------------------------------------------------
2,912,692
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WISCONSIN-0.35%
Wisconsin Housing and Economic Development Authority;
Home Ownership Series 1990 E RB
8.00%, 03/01/21(b) A+ Aa $ 950 $ 996,949
- ----------------------------------------------------------------------------------------------------------------------------------
WYOMING-0.35%
Natrona (County of) Wyoming Medical Center; RB
6.00%, 09/15/11(c) AAA Aaa 1,000 1,013,200
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 97.78% 281,978,261
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 2.22% 6,405,308
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $288,383,569
==================================================================================================================================
</TABLE>
Notes to Schedule of Investments:
(a) Ratings assigned by Moody's Investors Service, Inc. ("Moody's") and
Standard & Poor's Corporation ("S&P"). NRR indicates a security that is
not re-rated subsequent to funding of an escrow fund (consisting of U.S.
Treasury obligations); this funding is pursuant to an advance refunding
of the security.
(b) Security subject to the alternative minimum tax.
(c) Secured by bond insurance.
(d) Secured by an escrow fund of U.S. Treasury obligations.
(e) Security has an irrevocable call or mandatory put by the issuer.
Maturity date reflects such call or put.
(f) Demand security; payable upon demand by the Fund with usually no more
than seven calendar days' notice. Interest rates are redetermined
periodically. Rates shown are in effect on June 30, 1995.
(g) Unrated security; determined by the investment advisor to be of comparable
quality to the rated securities in which the Fund may invest.
(h) Secured by a letter of credit.
INVESTMENT ABBREVIATIONS:
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
NRR - Not Re-Rated
PCR - Pollution Control Revenue Bonds
RB - Revenue Bonds
See Notes to Financial Statements.
14
<PAGE> 17
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $267,373,723) $281,978,261
- ----------------------------------------------------------------------------------------
Receivables for:
Investments sold 3,054,380
- ----------------------------------------------------------------------------------------
Fund shares sold 368,101
- ----------------------------------------------------------------------------------------
Interest 5,316,523
- ----------------------------------------------------------------------------------------
Investment for deferred compensation plan 52,990
- ----------------------------------------------------------------------------------------
Other assets 41,581
- ----------------------------------------------------------------------------------------
Total assets 290,811,836
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 979,739
- ----------------------------------------------------------------------------------------
Fund shares reacquired 357,589
- ----------------------------------------------------------------------------------------
Amount due to custodian bank 10,092
- ----------------------------------------------------------------------------------------
Deferred compensation plan 52,990
- ----------------------------------------------------------------------------------------
Dividends 658,362
- ----------------------------------------------------------------------------------------
Accrued advisory fees 112,186
- ----------------------------------------------------------------------------------------
Accrued administrative services fees 5,926
- ----------------------------------------------------------------------------------------
Accrued distribution fees 185,153
- ----------------------------------------------------------------------------------------
Accrued trustees' fees 1,510
- ----------------------------------------------------------------------------------------
Accrued transfer agent fees 18,048
- ----------------------------------------------------------------------------------------
Accrued operating expenses 46,672
- ----------------------------------------------------------------------------------------
Total liabilities 2,428,267
- ----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $288,383,569
========================================================================================
NET ASSETS:
Class A $274,229,393
========================================================================================
Class B $ 14,154,176
========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 33,824,348
========================================================================================
Class B 1,745,631
========================================================================================
Class A:
Net asset value and redemption price per share $ 8.11
========================================================================================
Offering price per share:
(Net asset value of $8.11 divided by 95.25%) $ 8.51
========================================================================================
Class B:
Net asset value and offering price per share $ 8.11
========================================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 7,793,137
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 658,930
- ----------------------------------------------------------------------------------------
Custodian fees 30,538
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 105,003
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 10,383
- ----------------------------------------------------------------------------------------
Administrative services fees 33,176
- ----------------------------------------------------------------------------------------
Trustees' fees 5,608
- ----------------------------------------------------------------------------------------
Distribution fees -- Class A 335,274
- ----------------------------------------------------------------------------------------
Distribution fees -- Class B 58,284
- ----------------------------------------------------------------------------------------
Other 36,183
- ----------------------------------------------------------------------------------------
Total expenses 1,273,379
- ----------------------------------------------------------------------------------------
Less expenses assumed by advisor (6,600)
- ----------------------------------------------------------------------------------------
Net expenses 1,266,779
- ----------------------------------------------------------------------------------------
Net investment income 6,526,358
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES:
Realized gain on sales of investment securities 509,286
- ----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 12,538,018
- ----------------------------------------------------------------------------------------
Net gain on investment securities 13,047,304
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $19,573,662
========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
FINANCIALS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 and the year ended December 31, 1994
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 6,526,358 $ 15,777,347
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities 509,286 (2,668,737)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment securities 12,538,018 (24,480,672)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 19,573,662 (11,372,062)
- ----------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (7,964,618) (15,315,671)
- ----------------------------------------------------------------------------------------------------------------
Class B (293,882) (269,520)
- ----------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on investment securities:
Class A -- (934,223)
- ----------------------------------------------------------------------------------------------------------------
Class B -- (30,963)
- ----------------------------------------------------------------------------------------------------------------
Return of capital:
Class A -- (969,892)
- ----------------------------------------------------------------------------------------------------------------
Class B -- (17,068)
- ----------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 5,886,516 (8,364,063)
- ----------------------------------------------------------------------------------------------------------------
Class B 4,550,811 7,376,340
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 21,752,489 (29,897,122)
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 266,631,080 296,528,202
- ----------------------------------------------------------------------------------------------------------------
End of period $288,383,569 $266,631,080
================================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $277,207,937 $266,770,610
- ----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (1,332,150) 399,992
- ----------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on investment securities (2,096,756) (2,606,042)
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 14,604,538 2,066,520
- ----------------------------------------------------------------------------------------------------------------
$288,383,569 $266,631,080
================================================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Municipal Bond Fund (the "Fund") is a series portfolio of AIM Funds Group
(the "Trust"). The Trust is a Delaware business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
series management investment company consisting of nine separate series
portfolios, each having an unlimited number of shares of beneficial interest.
The Fund currently offers two different classes of shares: the Class A shares
and the Class B shares. Class A shares are sold with a front-end sales charge.
Class B shares are sold with a contingent deferred sales charge. Matters
affecting each portfolio or class are voted on exclusively by the shareholders
of such portfolio or class. The assets, liabilities and operations of each
portfolio are accounted for separately. Information presented in these financial
statements pertains only to the Fund. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. Security Valuations - Portfolio securities are valued based on market
quotations or at fair value determined by a pricing service approved by the
Board of Trustees, provided that securities with a demand feature exercisable
within one to seven days will be valued at par. Prices provided by the
pricing service represent valuations of the mean between current bid and
asked market prices which may be determined without exclusive reliance on
quoted prices and may reflect appropriate factors such as institution-size
trading in similar groups of securities, yield, quality, coupon rate,
maturity, type of issue, individual trading characteristics and other market
data. Portfolio securities for which prices are not provided by the pricing
service are valued at the mean between the last available bid and asked
prices, unless the Board of Trustees, or persons designated by the Board of
Trustees, determines that the mean between the last available bid and asked
prices does not accurately reflect the current market value of the security.
Securities for which market quotations are not readily available are valued
at fair value as determined in good faith by or under the supervision of the
Trust's officers in accordance with methods which are specifically authorized
by the Board of Trustees. Notwithstanding the above, short-term obligations
with maturities of 60 days or less are valued at amortized cost.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. It is the policy of the Fund to declare
daily dividends from net investment income. Such dividends are paid monthly.
Distributions from net realized capital gains, if any, are recorded on
ex-dividend date and are paid annually.
C. Federal Income Taxes - The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $458,030 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized, in
the year 2002. It is estimated that the Fund will incur a return of capital
for tax purposes during its year ended December 31, 1995.
D. Expenses - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
18
<PAGE> 21
FINANCIALS
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at an annual rate of 0.50% of
the first $200 million of the Fund's average daily net assets, plus 0.40% of the
Fund's average daily net assets in excess of $200 million to and including $500
million, plus 0.35% of the Fund's average daily net assets in excess of $500
million to and including $1 billion, plus 0.30% of the Fund's average daily net
assets in excess of $1 billion. This agreement requires AIM to reduce its fees
or, if necessary, make payments to the Fund to the extent required to satisfy
any expense limitations imposed by the securities laws or regulations thereunder
of any state in which the Fund's shares are qualified for sale. During the six
months ended June 30, 1995, AIM reimbursed expenses of $6,600 with respect to
the Class B shares.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for certain administrative costs incurred in
providing accounting services to the Fund. During the six months ended
June 30, 1995, AIM was reimbursed $33,176 for such services.
The Fund, pursuant to a transfer agent and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency
services to the Fund. During the six months ended June 30, 1995, AFS was paid
$77,333 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A shares and the Class B shares of the Fund. The Trust has adopted Plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares (the "Class A Plan") and with respect to the Fund's Class B shares (the
"Class B Plan") (collectively, the "Plans"). The Fund, pursuant to the Class A
Plan, pays AIM Distributors compensation at an annual rate of 0.25% of the
average daily net assets attributable to the Class A shares. The Class A Plan is
designed to compensate AIM Distributors for certain promotional and other sales
related costs, and to implement a program which provides periodic payments to
selected dealers and financial institutions who furnish continuing personal
shareholder services to their customers who purchase and own Class A shares of
the Fund. The Fund, pursuant to the Class B Plan, pays AIM Distributors
compensation at an annual rate of 1.00% of the average daily net assets
attributable to the Class B shares. Of this amount, the Fund may pay a service
fee of 0.25% of the average daily net assets of the Class B shares to selected
dealers and financial institutions who furnish continuing personal shareholder
services to their customers who purchase and own Class B shares of the Fund. Any
amounts not paid as a service fee under such Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges, that may be paid by the respective
classes. During the six months ended June 30, 1995, the Class A shares and the
Class B shares paid AIM Distributors $335,274 and $58,284, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $52,178 from sales of the Class A
shares of the Fund during the six months ended June 30, 1995. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
1995, AIM Distributors received $14,752 in contingent deferred sales charges
imposed on redemptions of Fund shares. Certain officers and trustees of the
Trust are officers and directors of AIM, AIM Distributors and AFS.
During the six months ended June 30, 1995, the Fund paid legal fees of $668
for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Trustees. A member of that firm is a trustee of the
Trust.
19
<PAGE> 22
FINANCIALS
NOTE 3 - TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of the Trust. The Trust may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 1995 was
$69,418,505 and $59,916,749, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of June 30, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $14,714,871
- --------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (110,333)
- --------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $14,604,538
=======================================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
20
<PAGE> 23
FINANCIALS
NOTE 5 - SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 1995 and the
year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 1995 DECEMBER 31, 1994
----------------------------- ----------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 3,216,708 $ 25,869,291 3,774,110 $ 30,827,309
- ----------------------------------------------------------- ----------------------------- ----------------------------
Class B 801,778 6,451,433 1,031,724 8,351,056
- ----------------------------------------------------------- ----------------------------- ----------------------------
Issued as reinvestment of dividends:
Class A 572,266 4,603,105 1,275,719 10,304,397
- ----------------------------------------------------------- ----------------------------- ----------------------------
Class B 22,078 177,715 24,242 193,390
- ----------------------------------------------------------- ----------------------------- ----------------------------
Reacquired:
Class A (3,048,961) (24,585,880) (6,125,144) (49,495,769)
- ----------------------------------------------------------- ----------------------------- ----------------------------
Class B (257,386) (2,078,337) (146,039) (1,168,106)
- ----------------------------------------------------------- ----------------------------- ----------------------------
1,306,483 $ 10,437,327 (165,388) $ (987,723)
=========================================================== ============================= ============================
</TABLE>
21
<PAGE> 24
FINANCIALS
NOTE 6 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share
outstanding during the six months ended June 30, 1995 and each of the years in
the nine-year period ended December 31, 1994 and for a Class B share outstanding
during the six months ended June 30, 1995, the year ended December 31, 1994 and
the period September 1, 1993 (date sales commenced) through December 31, 1993.
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1995 1994 1993 1992(a) 1991 1990
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 7.78 $ 8.61 $ 8.27 $ 8.13 $ 7.66 $ 7.81
- -------------------------------------------- -------- -------- -------- -------- -------- -------
Income from investment operations:
Net investment income 0.18 0.46 0.48 0.51 0.52 0.53
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 0.38 (0.78) 0.46 0.21 0.46 (0.14)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Total from investment operations 0.56 (0.32) 0.94 0.72 0.98 0.39
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.23) (0.45) (0.48) (0.51) (0.51) (0.53)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions from net realized
capital gains -- (0.03) (0.11) (0.07) -- --
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Returns of capital -- (0.03) (0.01) -- -- (0.01)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions (0.23) (0.51) (0.60) (0.58) (0.51) (0.54)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 8.11 $ 7.78 $ 8.61 $ 8.27 $ 8.13 $ 7.66
============================================ ======== ======== ======== ======== ======== ========
Total return(b) 7.31% (3.79)% 11.66% 9.10% 13.30% 5.27%
============================================ ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $274,229 $257,456 $294,209 $271,205 $273,037 $258,194
============================================ ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 0.87%(c) 0.89% 0.91% 0.90% 0.94% 0.91%
============================================ ======== ======== ======== ======== ======== ========
Ratio of net investment income to average
net assets 4.70%(c) 5.61% 5.65% 6.15% 6.58% 6.91%
============================================ ======== ======== ======== ======== ======== ========
Portfolio turnover rate 23% 43% 24% 160% 289% 230%
============================================ ======== ======== ======== ======== ======== ========
<CAPTION> DECEMBER 31,
-----------------------------------------------
1989 1988 1987 1986
-------- -------- -------- --------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 7.64 $ 7.32 $ 8.41 $ 7.69
- -------------------------------------------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.54 0.53 0.51 0.58
- -------------------------------------------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 0.18 0.34 (0.65) 1.00
- -------------------------------------------- -------- -------- -------- --------
Total from investment operations 0.72 0.87 (0.14) 1.58
- -------------------------------------------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.55) (0.55) (0.49) (0.60)
- -------------------------------------------- -------- -------- -------- --------
Distributions from net realized
capital gains -- -- (0.46) (0.26)
- -------------------------------------------- -------- -------- -------- --------
Returns of capital -- -- -- --
- -------------------------------------------- -------- -------- -------- --------
Total distributions (0.55) (0.55) (0.95) (0.86)
- -------------------------------------------- -------- -------- -------- --------
Net asset value, end of period $ 7.81 $ 7.64 $ 7.32 $ 8.41
============================================ ======== ======== ======== ========
Total return(b) 9.70% 12.33% (1.88)% 21.19%
============================================ ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $262,997 $243,480 $237,225 $281,575
============================================ ======== ======== ======== ========
Ratio of expenses to average net assets 0.89% 0.87% 0.80% 0.78%
============================================ ======== ======== ======== ========
Ratio of net investment income to average
net assets 6.97% 7.11% 6.71% 6.99%
============================================ ======== ======== ======== ========
Portfolio turnover rate 305% 381% 392% 249%
============================================ ======== ======== ======== ========
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Total returns do not deduct sales charges and are not annualized for periods
less than one year.
(c) Ratios are annualized and based on average daily net assets of $270,442,211.
22
<PAGE> 25
FINANCIALS
NOTE 6 - FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ------------------
1995 1994 1993
-------- ------ ------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 7.78 $ 8.61 $ 8.71
- ----------------------------------------------------------------------------------------- ------- ------ ------
Income from investment operations:
Net investment income 0.16 0.39 0.14
- ----------------------------------------------------------------------------------------- ------- ------ ------
Net gains (losses) on securities (both realized and unrealized) 0.37 (0.78) 0.01
- ----------------------------------------------------------------------------------------- ------- ------ ------
Total from investment operations 0.53 (0.39) 0.15
- ----------------------------------------------------------------------------------------- ------- ------ ------
Less distributions:
Dividends from net investment income (0.20) (0.38) (0.13)
- ----------------------------------------------------------------------------------------- ------- ------ ------
Distributions from net realized capital gains -- (0.03) (0.11)
- ----------------------------------------------------------------------------------------- ------- ------ ------
Returns of capital -- (0.03) (0.01)
- ----------------------------------------------------------------------------------------- ------- ------ ------
Total distributions (0.20) (0.44) (0.25)
- ----------------------------------------------------------------------------------------- ------- ------ ------
Net asset value, end of period $ 8.11 $ 7.78 $ 8.61
========================================================================================= ======= ====== ======
Total return(a) 6.87% (4.57)% 1.95%
========================================================================================= ======= ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $14,154 $9,175 $2,319
========================================================================================= ======= ====== ======
Ratio of expenses to average net assets(b) 1.68%(d) 1.67% 1.65%(e)
========================================================================================= ======= ====== ======
Ratio of net investment income to average net assets(c) 3.89%(d) 4.83% 4.91%(e)
========================================================================================= ======= ====== ======
Portfolio turnover rate 23% 43% 24%
========================================================================================= ======= ====== ======
</TABLE>
(a) Total returns do not deduct contingent deferred sales charges and are not
annualized for periods less than one year.
(b) Ratios of expenses to average daily net assets prior to expense
reimbursements are 1.79% (annualized), 1.84% and 3.08% (annualized) for the
period 1995-1993, respectively.
(c) Ratios of net investment income to average daily net assets prior to expense
reimbursements are 3.78% (annualized), 4.66% and 3.48% (annualized) for the
period 1995-1993, respectively.
(d) Ratios are annualized and based on average daily net assets of $11,753,393.
(e) Annualized.
23
<PAGE> 26
This page intentionally left blank.
24
<PAGE> 27
TRUSTEES & OFFICERS
<TABLE>
<S> <C> <C>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
11 Greenway Plaza
Charles T. Bauer Charles T. Bauer Suite 1919
Chairman and Chief Executive Officer Chairman Houston, TX 77046
A I M Management Group Inc.
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director, President, and
Chief Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc.
Carol F. Relihan TRANSFER AGENT
Carl Frischling Vice President and Secretary
Partner A I M Fund Services, Inc.
Kramer, Levin, Naftalis, Nessen, Dana R. Sutton P.O. Box 4739
Kamin & Frankel Vice President Houston, TX 77210-4739
and Assistant Treasurer
Robert H. Graham
President Robert G. Alley CUSTODIAN
A I M Management Group Inc. Vice President
State Street Bank and Trust Company
John F. Kroeger Stuart W. Coco 225 Franklin Street
Formerly, Consultant Vice President Boston, MA 02110
Wendell & Stockel Associates, Inc.
Melville B. Cox
Lewis F. Pennock Vice President COUNSEL TO THE FUND
Attorney
Karen Dunn Kelley Ballard Spahr
Ian W. Robinson Vice President Andrews & Ingersoll
Consultant; Former Executive 1735 Market Street
Vice President and Jonathan C. Schoolar Philadelphia, PA 19103
Chief Financial Officer Vice President
Bell Atlantic Management
Services, Inc. P. Michelle Grace COUNSEL TO THE TRUSTEES
Assistant Secretary
Louis S. Sklar Kramer, Levin, Naftalis,
Executive Vice President Nancy L. Martin Nessen, Kamin & Frankel
Hines Interests Assistant Secretary 919 Third Avenue
Limited Partnership New York, NY 10022
Ofelia M. Mayo
Assistant Secretary
DISTRIBUTOR
Kathleen J. Pflueger
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Samuel D. Sirko Suite 1919
Assistant Secretary Houston, TX 77046
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
This report may be distributed only to current shareholders or to persons
who have received a current Fund prospectus.
25
<PAGE> 28
A I M Distributors, Inc. ---------------
[AIM LOGO 11 Greenway Plaza, Suite 1919 BULK RATE
APPEARS HERE] Houston, Texas 77046 U.S. POSTAGE
PAID
Houston, TX
THE AIM FAMILY OF FUNDS(R) Permit No. 2332
---------------
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH [FULL PAGE PHOTO OF
AIM Global Utilities Fund** AIM MANAGEMENT GROUP
HIGH CURRENT INCOME OFFICE BUILDING]
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Conn.
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Government Securities Fund
HIGH DEGREE OF SAFETY AND CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
*AIM Aggressive Growth Fund was closed to new investors on
July 18, 1994. **On May 1, 1995, AIM Utilities Fund broadened its investment
strategy to permit up to 80% of its total assets to be invested in foreign
securities, and was renamed AIM Global Utilities Fund. For more complete
information about any AIM Fund, including sales charges and expenses, ask your
financial consultant or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money.
