<PAGE> 1
[FRONT COVER PHOTO OF AMERICAN FLAG AND EAGLE APPEARS HERE]
AIM MUNICIPAL
BOND FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT JUNE 30, 1996
<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 AND PORTFOLIO 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 at net asset value
without a sales charge.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% 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%
beginning at the time of purchase 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 due to differences in sales charge structure and Fund
expenses.
o During the six months ended 6/30/96, the Fund paid distributions for Class
A and Class B shares of $0.216 and $0.18 per share, respectively.
o The 30-day yield is calculated on the basis of a formula defined by the SEC.
The formula is based on the portfolio's potential earnings from dividends,
interest, yield-to-maturity or yield-to-call of the bonds in the
portfolio, net of all expenses and expressed on an annualized basis.
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 is subject to change and there is no
assurance the Fund will continue to hold any particular security.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Government securities, such as U.S. Treasury bills, notes, and bonds, offer
a high degree of safety and are guaranteed as to the timely payment of
principal and interest if held to maturity. Fund shares are not insured
and their value and yield will vary with market conditions.
o The unmanaged Lipper General Municipal Debt Funds Index represents an
average of the performance of the 30 largest municipal debt funds charted
by Lipper Analytical Services, Inc., an independent mutual funds
performance monitor.
o The Lehman Brothers Municipal Bond Index is an unmanaged composite
representing an approximation of the performance of investment-grade
municipal bonds.
MUTUAL FUNDS, ANNUITIES, AND OTHER INVESTMENTS ARE NOT INSURED BY THE FDIC OR
ANY OTHER GOVERNMENT AGENCY; ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR
GUARANTEED BY, ANY BANK OR ANY AFFILIATE; AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 3
The Chairman's Letter
Dear Fellow Shareholder:
During periods of market volatility, I am reminded of a
story. When asked what the market was going to do, J.P.
[PHOTO OF Morgan reportedly replied, "It will fluctuate." Fixed-income
Charles T. Bauer, investors can certainly agree with that statement: Bond
Chairman of markets have undergone major shifts in momentum at least
the Board of twice in the first six months of 1996 as investors worried
the Fund, first about the possibility of recession and then about
APPEARS HERE] rising inflation.
Those of you who are long-time investors, and those
who are brand-new shareholders in The AIM Family of
Funds--Registered Trademark--, should recognize that periods of falling prices
in both the stock and bond markets are inevitable. Indeed, we can learn
important lessons about investing in periods of market uncertainty.
In our experience, we have observed that the best action to take is to
stay focused--not on the market, but on your own long-term goals. The market can
change from day to day. Those who try to "time" the market, over time, tend to
be less successful than those who continue to follow a disciplined investment
strategy.
Short-term volatility in financial markets may tempt some investors to
liquidate stock and bond investments, regardless of their personal financial
objectives. Remember that time is the best medicine for uncertain markets. The
market's performance in recent months has been driven by concerns about the
possibility of an overheated economy and rising inflation. However, the latest
economic data suggest conditions that prompted 1995's strong market performance
should continue: Corporate earnings are healthy and economic growth is
moderate, without significant inflation.
You may cushion the effects of changing markets and reduce your risk
exposure in any one type of security by diversification--spreading your assets
across several kinds of investments. Prudent investors maintain a balanced
portfolio of stock and bond investments, with due consideration for their
personal financial objectives, risk tolerance, and investment time horizon.
There is one constant you can count on, regardless of changing
markets--AIM's commitment to you, our shareholders. At AIM, we take our
responsibility to you very seriously in managing a well-conceived and
significantly diversified menu of mutual funds. AIM investment management teams
provide a blend of skills, education, experience, and maturity that produces a
balanced, thoughtful approach to decision-making and quality investment
products. Consistent performance, coupled with outstanding customer service and
a highly professional staff, has helped AIM build relationships with 3 million
shareholders over the past 20 years.
Thank you for continuing to rely on AIM Municipal Bond Fund. If you have
any 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
---------------------------
. . . the best
action to take is
to stay focused --
not on the market,
but on your own
long-term goals.
---------------------------
<PAGE> 4
The Managers' Overview
FUND STRESSES QUALITY, PURSUES
NET ASSET VALUE STABILITY
A roundtable discussion with the Fund management team for AIM Muni-
cipal Bond Fund about the six-month reporting period ended June 30, 1996.
- --------------------------------------------------------------------------------
Q: HOW DID AIM MUNICIPAL BOND FUND PERFORM DURING THE REPORTING PERIOD?
A: The Fund continued to provide shareholders with attractive levels of
tax-free income. As of June 30, the 30-day SEC yield was 4.49% on Class A
shares of the Fund and 3.91% on Class B shares. Translated into after-tax
income at the highest marginal rate, that's equal to 7.43% for Class A
shares and 6.47% for Class B shares. For comparison, the yield on a 10-year
U.S. Treasury note on June 30 was lower, 6.71% before taxes.
However, the municipal bond market became more difficult as the
reporting period progressed. Interest rates began to rise, which depressed
the entire bond market by putting pressure on the value of outstanding
bonds. The Fund's total return, which takes account of both yield and
changes in the value of the underlying investments, was 0.08% for Class A
shares and -0.36% for Class B shares during the reporting period.
Nevertheless, the Fund outperformed the Lipper General Municipal Debt Funds
Index, which declined 1.12% during the same period.
Q: WHY DID INTEREST RATES BEGIN TO RISE DURING THE REPORTING PERIOD?
A: Investors began to worry about inflation as economic growth became more
vigorous.
The U.S. economy had been in the doldrums late in 1995. That began to
turn around early in 1996. The rate of growth of gross domestic product
improved from 0.5% the last quarter of 1995 to 2.0% the first quarter of
1996. During the second quarter of 1996, the economy grew at an annualized
4.2% rate, first reports on growth showed. Bond markets feared that faster
economic growth would bring higher inflation in its wake, so bond investors
demanded higher interest rates on their investments.
Q: HOW DID YOU MANAGE THE FUND SO THAT IT PERFORMED COMPARATIVELY WELL IN A
DIFFICULT MARKET?
A: For one thing, we kept the quality of the portfolio quite high. The value
of higher quality bonds usually remains more stable when interest rates
rise. More than half the portfolio was rated AAA, and almost 90% was rated
A or better at the close of the reporting period. And more than 40% of the
portfolio's holdings were credit enhanced, meaning they were backed by
insurance or letters of credit or were escrowed with U.S. Treasuries.
The Fund continues to hold Standard & Poor's Corporation's above-average
credit quality rating of Af. Standard & Poor's is a widely known
credit-rating agency. Its ratings are historical and are based on an annual
analysis of the Fund's portfolio credit quality, composition, and
management.
Q: DID OTHER FACTORS CONTRIBUTE TO THE FUND'S GOOD INCOME RESULTS?
A: To protect the Fund's net asset value, we focus on bonds with high income
potential rather than strong price appreciation potential. Income is more
valued in a period of rising rates because of reinvestment possibilities.
Our research also focuses on trying to find issues the rest of the
market has overlooked. For example, during the reporting period, we found
some housing bonds with 7% and 8% coupons that were
===========================================================
YIELD ADVANTAGE
30-DAY YIELD AS OF 6/30/96
90-DAY U.S. TREASURY BILLS 5.15%
10-YEAR U.S. TREASURY NOTES 6.71%
AIM MUNICIPAL BOND FUND
TAXABLE EQUIVALENT YIELD
CLASS A SHARES 7.43%
U.S. Treasury bonds, notes, and bills are guaranteed as to
the timely payment of principal and interest if held to
maturity. Fund shares are not insured and their value and
yield will vary with market conditions.
Yield represents the 30-day SEC tax equivalent yield for
investors in the 39.6% federal tax bracket for the Fund's
Class A 4.49% 30-day SEC yield, as of June 30, 1996.
6.47% is the taxable equivalent yield for the Fund's
Class B Shares.
===========================================================
2
<PAGE> 5
six months from their call dates. These will add a lot of income to the
portfolio while we own them.
Finally, we try to avoid paying out any taxable income from either
ordinary income or capital gains. We strive to make dividends from this
Fund as tax-efficient as possible.
Q: DOES THE FUND OFTEN DO WELL WHEN THE MARKETS ARE INHOSPITABLE?
A: Historically, yes. We try to safeguard investors during declining markets.
While seeking to produce tax-exempt income, we also are very careful about
protecting investors' capital by trying to moderate volatility.
We often sum up our overall goal with the word stability. For instance,
in 1994, one of the worst bond markets on record, the Lehman Brothers
Municipal Bond Index dropped 5.17% while the Fund's Class A shares lost
3.79%. The Fund consistently offers competitive dividends combined with
good stability of net asset value.
Q: LAST YEAR, THE PROSPECT OF TAX REFORM OR A POSSIBLE FLAT TAX WAS PUSHING UP
YIELDS ON MUNICIPAL BONDS. IS THAT STILL TRUE?
A: Much less so. Last year, muni bonds were providing as much as 90% of the
yield of a taxable 30-year U.S. Treasury bond. That has fallen to about
80% to 82%, so it looks like the market isn't expecting tax reform or
simplification as much as it did last year. As we pointed out in our
previous report, no one has actually introduced a bill spelling out a flat
tax proposal. The discussion is hypothetical. This year's interest rate
rise seems more purely a response to inflationary fears.
Q: WHAT ARE YOUR EXPECTATIONS FOR THE REST OF THE YEAR?
A: While we do not forecast interest rates, it looks as though rates are going
to remain level at least, since the Federal Reserve Board decided not to
raise interest rates at its July meeting. Information the Fed gathered in
preparation for the July meeting indicated that the economy was growing
moderately and inflation remained in check.
In its report, the Fed anticipated the economic growth rate slowing
during the second half of the year in part because of the interest rate
rises earlier in the year. The credit markets had, in effect, raised rates
without Fed intervention.
Stable interest rates and the absence of inflation combine to provide an
excellent environment for the Fund, which will continue to stress quality
in its holdings and to pursue stability while seeking to generate good
tax-advantaged income.
==========================================================
PORTFOLIO COMPOSITION
AS OF 6/30/96
REVENUE 79%
GENERAL OBLIGATION 21%
TOTAL NUMBER OF HOLDINGS 167
TOP 5 HOLDINGS
ISSUER COUPON MATURITY
1. New York State Urban 7.375% 01/01/02
Development Corporation
2. State of Connecticut 6.50 03/15/02
3. Mississippi Higher 7.50 09/01/09
Education Assistance Corp.
4. City of New York 7.65 02/01/06
5. University of Illinois 5.75 04/01/22
Please keep in mind that the Fund's portfolio is subject
to change and there is no assurance the Fund will continue
to hold any particular security.
==========================================================
-----------------
We strive
to make dividends
from this Fund
as tax-efficient
as possible.
-----------------
==========================================
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDED 6/30/96.
INCLUDING SALES CHARGES.
CLASS A SHARES
10 Years 7.17%
5 Years 6.44
1 Year 0.42*
CLASS B SHARES
Inception (9/1/93) 1.98%
1 Year -0.45*
*5.43% and 4.55% are one-year returns
excluding sales charges for A and B shares
respectively.
==========================================
3
<PAGE> 6
Financials
SCHEDULE OF INVESTMENTS
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ALASKA-1.91%
Alaska (State of) Housing Finance Corp.;
Collateralized First Veterans' Home Mortgage
Series A-2 RB
6.75%, 12/01/24(b) AAA Aaa $3,755 $ 3,856,347
- ------------------------------------------------------------------------------------------------
Alaska (State of) Housing Finance Corp.;
Collateralized Mortgage Program First Series RB
6.875%, 06/01/33 AAA Aaa 1,865 1,933,687
- ------------------------------------------------------------------------------------------------
5,790,034
- ------------------------------------------------------------------------------------------------
ARKANSAS-2.01%
Fayetteville (City of); Water and Sewer
Refunding and Improvement Series 1992 RB
6.15%, 08/15/12 A A 2,000 2,088,740
- ------------------------------------------------------------------------------------------------
Little Rock (City of); Sewer Improvement Series
B RB
5.75%, 02/01/06 AA+ Aa 2,000 2,041,260
- ------------------------------------------------------------------------------------------------
Little Rock (City of); Solid Waste Disposal
Series 1995 RB
5.65%, 05/01/11 A- A1 1,000 981,230
- ------------------------------------------------------------------------------------------------
5.80%, 05/01/16 A- A1 1,000 982,570
- ------------------------------------------------------------------------------------------------
6,093,800
- ------------------------------------------------------------------------------------------------
ARIZONA-2.09%
Arizona (State of) Educational Loan Marketing
Corp.; RB
6.125%, 09/01/02(b) -- Aa 1,900 1,973,226
- ------------------------------------------------------------------------------------------------
Mohave (County of) Unified School District #1
(Lake Havasu); Series A GO
5.90%, 07/01/15 AAA Aaa 1,000 1,008,550
- ------------------------------------------------------------------------------------------------
Pima (County of) Unified School District #10
(Amphitheater); School Improvement Series
1992 E GO
6.50%, 07/01/05 A+ A 3,100 3,365,701
- ------------------------------------------------------------------------------------------------
6,347,477
- ------------------------------------------------------------------------------------------------
CALIFORNIA-0.82%
California (State of) Housing Finance Agency;
RB
7.45%, 08/01/11(b) AA- Aa 800 841,584
- ------------------------------------------------------------------------------------------------
Sacramento (City of) California Cogeneration
Authority;
Procter & Gamble Project Series 1995 RB
7.00%, 07/01/04 BBB- -- 500 543,270
- ------------------------------------------------------------------------------------------------
San Francisco (City and County of) Parking
Authority;
Parking Meter Series 1994 RB
7.00%, 06/01/13(c) AAA Aaa 1,000 1,108,580
- ------------------------------------------------------------------------------------------------
2,493,434
- ------------------------------------------------------------------------------------------------
COLORADO-0.87%
Adams County School District Number 1;
Unlimited Tax Building Series 1992-A GO
6.625%, 12/01/02(d)(e) AAA Aaa 500 550,600
- ------------------------------------------------------------------------------------------------
Colorado (State of) Housing Finance Authority
(Single Family Residential Housing); Series
1987 B RB
9.00%, 09/01/17 -- Aa 490 509,786
- ------------------------------------------------------------------------------------------------
Mesa County School District #51; 1989 Series B
Certificates of Participation
6.875%, 12/01/05(c) AAA Aaa 1,465 1,588,294
- ------------------------------------------------------------------------------------------------
2,648,680
- ------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
CONNECTICUT-4.10%
Connecticut (State of); General Purpose Public
Improvement Series 1992-A GO
6.50%, 03/15/02(d)(e) NRR NRR $5,500 $ 6,016,010
- ------------------------------------------------------------------------------------------------
Connecticut (State of) Development Authority
(Connecticut Power & Light); Series 1993 A RB
3.35%, 09/01/28(f) A-1+ VMIG-1 2,013 2,012,719
- ------------------------------------------------------------------------------------------------
Connecticut (State of) Housing Finance
Authority;
Series 1990 B-1, Sub-Series B-1 RB
7.55%, 11/15/08 AA Aa 475 485,493
- ------------------------------------------------------------------------------------------------
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 1,006,326
- ------------------------------------------------------------------------------------------------
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 1,841,066
- ------------------------------------------------------------------------------------------------
8.00%, 11/15/15(b) AA- Baa1 1,000 1,085,720
- ------------------------------------------------------------------------------------------------
12,447,334
- ------------------------------------------------------------------------------------------------
FLORIDA-1.69%
Escambia (County of) (Champion International
Corp. Project); PCR
6.90%, 08/01/22(b) BBB Baa1 1,125 1,185,008
- ------------------------------------------------------------------------------------------------
Florida (State of) Public Education Services
(Board of Education Capital Outlay);
Unlimited Tax Series A GO
5.875%, 06/01/16 AA Aa 1,000 1,001,650
- ------------------------------------------------------------------------------------------------
Leon (County of); Certificates of Participation
Series A RB
5.875%, 01/01/98 -- Baa1 1,700 1,725,551
- ------------------------------------------------------------------------------------------------
Miami (City of) Parking System; Series 1992 A
RB
6.70%, 10/01/06 A A 1,120 1,217,014
- ------------------------------------------------------------------------------------------------
5,129,223
- ------------------------------------------------------------------------------------------------
GEORGIA-1.39%
Georgia (State of) Housing and Finance
Authority
(Home Ownership Opportunity Program); Series
C RB
6.50%, 12/01/11 AA+ Aa 975 1,004,816
- ------------------------------------------------------------------------------------------------
Georgia Municipal Electric Authority; Series P
RB
8.00%, 01/01/98(d)(e) AAA Aaa 2,000 2,149,580
- ------------------------------------------------------------------------------------------------
Savannah (City of) Economic Development
Authority
(Hershey Foods Corp. Project); IDR
6.60%, 06/01/12 AA- -- 1,000 1,061,170
- ------------------------------------------------------------------------------------------------
4,215,566
- ------------------------------------------------------------------------------------------------
ILLINOIS-10.20%
Berwyn (City of) (Macneal Memorial Hospital
Association); Hospital Series 1991 RB
7.00%, 06/01/01(d)(e) AAA Aaa 3,250 3,618,387
- ------------------------------------------------------------------------------------------------
Cook (County of); Series 1992 B GO
5.75%, 11/15/07(c) AAA Aaa 2,000 2,035,700
- ------------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax Series 1993 B RB
6.50%, 06/15/13 AAA A1 1,500 1,588,275
- ------------------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority
(Chicago Symphony Project); RB
3.30%, 06/01/31(f)(g) A-1+ VMIG-1 7,960 7,960,374
- ------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(continued)
Illinois (State of) Development Finance
Authority
(CPC International Project); PCR
6.75%, 05/01/16 -- A2 $2,500 $ 2,599,650
- ------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority
(Evangelical Hospital Corp.); RB
6.25%, Series A 04/15/22 AA- A1 1,000 973,680
- ------------------------------------------------------------------------------------------------
6.25%, Series 1992-C 04/15/22 AA- A1 1,150 1,119,732
- ------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority
(Franciscan Sisters Health Care); Refunding
Series 1992 RB
6.40%, 09/01/04(c) AAA Aaa 2,475 2,683,469
- ------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority
(Ravenswood Hospital Medical Center);
Refunding Series 1987 A RB
8.80%, 06/01/06 -- Baa1 1,000 1,044,230
- ------------------------------------------------------------------------------------------------
Metropolitan Fair and Exposition Authority;
Series 1986 RB
6.00%, 06/01/14(c) AAA Aaa 2,500 2,501,075
- ------------------------------------------------------------------------------------------------
Peoria and Pekin and Waukegan (Cities of); GNMA
Collateralized Mortgage Series 1990 RB
7.875%, 08/01/22(b) AAA -- 145 151,317
- ------------------------------------------------------------------------------------------------
University of Illinois Auxiliary Facilities
System; Series 1991 RB
5.75%, 04/01/22 AA- Aa 4,750 4,661,888
- ------------------------------------------------------------------------------------------------
30,937,777
- ------------------------------------------------------------------------------------------------
KENTUCKY-0.68%
Trimble (County of) (Louisville Gas &
Electric); PCR
7.25%, 12/01/16 AA Aa2 2,000 2,061,060
- ------------------------------------------------------------------------------------------------
LOUISIANA-2.62%
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 2,859,860
- ------------------------------------------------------------------------------------------------
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 2,576,625
- ------------------------------------------------------------------------------------------------
Louisiana Public Facilities Authority
(Tulane University of Louisiana); RB
6.00%, 10/01/16(c) AAA Aaa 2,500 2,516,950
- ------------------------------------------------------------------------------------------------
7,953,435
- ------------------------------------------------------------------------------------------------
MAINE-0.36%
Maine (State of) Education Loan Authority;
Education Loan Series A-2 RB
6.95%, 12/01/07(b) -- A 1,045 1,098,859
- ------------------------------------------------------------------------------------------------
MARYLAND-0.69%
Maryland Health and Higher Education Facilities
Authority (Doctors Community Hospital Inc.);
Series 1990 RB
8.75%, 07/01/00(d)(e) AAA Aaa 1,000 1,162,550
- ------------------------------------------------------------------------------------------------
Maryland State Community Development
Administration (Department of Economic and
Community Development); Single Family Housing
Refunding Series 5 RB
7.70%, 04/01/15(b) -- Aa 885 930,277
- ------------------------------------------------------------------------------------------------
2,092,827
- ------------------------------------------------------------------------------------------------
MASSACHUSETTS-5.01%
Massachusetts (State of); Consolidated Loan
Series 1991 C GO
7.00%, 08/01/01(d)(e) NRR NRR 2,450 2,728,712
- ------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS-(continued)
Massachusetts Health and Education Facilities
Authority (Lowell General Hospital); Series
1991 A RB
8.40%, 06/01/11 -- Baa1 $3,550 $ 3,896,942
- ------------------------------------------------------------------------------------------------
Massachusetts Health and Education Facilities
Authority
(Sisters of Providence Health System); Series
A RB
6.625%, 11/15/22 BBB Baa1 1,900 1,852,462
- ------------------------------------------------------------------------------------------------
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 3,406,560
- ------------------------------------------------------------------------------------------------
Massachusetts Municipal Wholesale Electric
Cooperative Power Supply; System Series 1992
A RB
6.75%, 07/01/08(c) AAA Aaa 3,000 3,300,510
- ------------------------------------------------------------------------------------------------
15,185,186
- ------------------------------------------------------------------------------------------------
MICHIGAN-5.21%
Detroit (City of) School District; School
Building and Site (Unlimited Tax) Series 1992
GO
6.00%, 05/01/05 AA Aa 1,000 1,034,370
- ------------------------------------------------------------------------------------------------
6.15%, 05/01/07 AA Aa 1,300 1,340,729
- ------------------------------------------------------------------------------------------------
Lake Orion Community School District; School
Building and Site (Unlimited Tax) Refunding
Series 1994 GO
7.00%, 05/01/05(d)(e) AAA Aaa 2,500 2,859,625
- ------------------------------------------------------------------------------------------------
Lincoln Park (City of) School District;
Unlimited Tax Series 1996 GO
6.00%, 05/01/12 AAA Aaa 1,210 1,236,620
- ------------------------------------------------------------------------------------------------
Michigan (State of) Housing Development
Authority; RB
6.60%, 04/01/12 A+ -- 1,000 1,022,150
- ------------------------------------------------------------------------------------------------
Michigan Strategic Fund (Consumer's Power
Corp.); PCR
3.55%, 04/15/18(f) -- P-1 8,315 8,314,667
- ------------------------------------------------------------------------------------------------
15,808,161
- ------------------------------------------------------------------------------------------------
MISSISSIPPI-1.75%
Mississippi Higher Education Assistance Corp.;
Student Loan Series 1994 C RB
7.50%, 09/01/09(b) -- A 5,000 5,299,200
- ------------------------------------------------------------------------------------------------
MISSOURI-1.04%
Kansas City Industrial Development Authority
(General Motors Corp. Project); PCR
6.05%, 04/01/06 A- A3 1,435 1,474,750
- ------------------------------------------------------------------------------------------------
Kansas City Municipal Assistance Corp. (Truman
Medical Center Charitable Foundation);
Leasehold Improvement
Series 1991 A RB
7.00%, 11/01/08 A A 605 651,264
- ------------------------------------------------------------------------------------------------
Missouri (State of) Environmental Improvement
and Energy Resources; Series 1995C PCR
5.85%, 01/01/10 -- Aa 1,000 1,026,010
- ------------------------------------------------------------------------------------------------
3,152,024
- ------------------------------------------------------------------------------------------------
NEBRASKA-0.56%
Omaha Public Power District; Refunding Series B
RB
5.70%, 02/01/17 AA Aa 1,750 1,702,418
- ------------------------------------------------------------------------------------------------
NEVADA-1.41%
Humboldt (County of) (Sierra Pacific Project);
Series 1987 PCR
6.55%, 10/01/13(c) AAA Aaa 3,000 3,194,040
- ------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEVADA-(continued)
Las Vegas (City of); 1992 Limited Tax GO
6.50%, 10/01/08(c) AAA Aaa $1,000 $ 1,064,860
- ------------------------------------------------------------------------------------------------
4,258,900
- ------------------------------------------------------------------------------------------------
NEW HAMPSHIRE-1.92%
New Hampshire Housing Finance Authority; Single
Family Residential Mortgage Series 1987 B RB
8.625%, 07/01/13(b) A+ Aa 1,505 1,558,849
- ------------------------------------------------------------------------------------------------
New Hampshire State Turnpike System; Series
1990 RB
7.40%, 04/01/00(d)(e) AAA Aaa 3,850 4,267,417
- ------------------------------------------------------------------------------------------------
5,826,266
- ------------------------------------------------------------------------------------------------
NEW JERSEY-2.46%
Camden (County of) Municipal Utilities
Authority;
Series 1987 RB
8.25%, 12/01/97(d)(e) AAA Aaa 750 807,990
- ------------------------------------------------------------------------------------------------
8.25%, 12/01/17 AAA Aaa 1,250 1,337,500
- ------------------------------------------------------------------------------------------------
Hudson County Correctional Facility;
Certificate of Participation Series 1992
6.60%, 12/01/21(c) AAA Aaa 1,250 1,317,213
- ------------------------------------------------------------------------------------------------
New Jersey City Economic Development Authority
(Atlantic City Sewer Co.); Sewer Facility
Series 1991 RB
7.25%, 12/01/11(b)(h) -- -- 1,935 2,106,093
- ------------------------------------------------------------------------------------------------
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 1,331,470
- ------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency;
Home Buyer Series M RB
6.95%, 10/01/22(b)(c) AAA Aaa 550 568,226
- ------------------------------------------------------------------------------------------------
7,468,492
- ------------------------------------------------------------------------------------------------
NEW MEXICO-2.40%
Albuquerque (City of) (Albuquerque Academy
Project); Educational Facilities Series 1995
RB
5.75%, 10/15/15 AA- Aa 915 923,025
- ------------------------------------------------------------------------------------------------
Los Alamos (County of); Utility Series A RB
6.00%, 07/01/15(c) AAA Aaa 2,000 2,049,820
- ------------------------------------------------------------------------------------------------
Rio Rancho (City of); Water and Wastewater
System Series 1995 A RB
5.90%, 05/15/12(c) AAA Aaa 2,000 2,019,180
- ------------------------------------------------------------------------------------------------
Santa Fe (City of); Series 1994 A RB
6.25%, 06/01/04(d)(e) AAA Aaa 2,100 2,269,659
- ------------------------------------------------------------------------------------------------
7,261,684
- ------------------------------------------------------------------------------------------------
NEW YORK-10.56%
New York (City of); GO
8.25%, Series 1991 F 11/15/01(d)(e) NRR Aaa 1,840 2,158,430
- ------------------------------------------------------------------------------------------------
7.65%, Series 1992 F 02/01/06 BBB+ Baa1 4,775 5,285,877
- ------------------------------------------------------------------------------------------------
7.70%, Series D 02/01/09 BBB+ Baa1 2,000 2,175,620
- ------------------------------------------------------------------------------------------------
7.20%, Series H 02/01/15 BBB+ Baa1 500 522,160
- ------------------------------------------------------------------------------------------------
8.25%, Series 1991 F 11/15/15 BBB+ Baa1 160 183,755
- ------------------------------------------------------------------------------------------------
6.25%, Series A 08/01/17 BBB+ Baa1 3,035 2,965,347
- ------------------------------------------------------------------------------------------------
7.00%, Series C, Sub-Series C-1 08/01/17 BBB+ Baa1 2,000 2,067,000
- ------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEW YORK-(continued)
New York (City of); GO
7.00%, Series B 02/01/18(c) AAA Aaa $1,000 $ 1,095,860
- ------------------------------------------------------------------------------------------------
7.00%, Series H 02/01/20 BBB+ Baa1 350 361,368
- ------------------------------------------------------------------------------------------------
New York City Industrial Development Agency
(The Lighthouse Inc. Project); Series 1992 RB
6.50%, 07/01/22(g) AA Aa2 1,500 1,547,070
- ------------------------------------------------------------------------------------------------
New York State Environmental Facility Corp.;
Water Revenue Series E PCR
6.875%, 06/15/10 A Aa 3,400 3,742,210
- ------------------------------------------------------------------------------------------------
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 1,009,090
- ------------------------------------------------------------------------------------------------
New York State Urban Development Corp.; Capital
Facilities 1991 Series 3 RB
7.375%, 01/01/02(d)(e) NRR Aaa 7,850 8,916,658
- ------------------------------------------------------------------------------------------------
32,030,445
- ------------------------------------------------------------------------------------------------
NORTH CAROLINA-3.06%
North Carolina Eastern Municipal Power Agency;
Series 1988 A RB
8.00%, 01/01/98(d)(e) NRR Aaa 3,000 3,224,370
- ------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power Agency;
Series A RB
6.125%, 01/01/10(c) AAA Aaa 1,500 1,553,670
- ------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency
(No. 1 Catawba Electric Project); Refunding
RB
7.25%, 01/01/07 A A 2,750 3,048,760
- ------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency
(No. 1 Catawba Electric Project); Series 1990
RB
6.50%, 01/01/10(c) AAA Aaa 1,115 1,162,421
- ------------------------------------------------------------------------------------------------
6.50%, 01/01/10(d) AAA Aaa 260 285,059
- ------------------------------------------------------------------------------------------------
9,274,280
- ------------------------------------------------------------------------------------------------
OHIO-2.45%
Akron Bath Copley Joint Township
(Akron City Hospital); Series 1987 RB
8.875%, 11/15/97(d)(e) NRR Aaa 1,610 1,745,997
- ------------------------------------------------------------------------------------------------
Butler (County of) Fairfield City School
District;
Unlimited Tax Series 1995 GO
6.10%, 12/01/15(c) AAA Aaa 1,000 1,017,830
- ------------------------------------------------------------------------------------------------
Hamilton (County of); Electric System Mortgage
Series 1998 RB
8.00%, 10/15/98(d)(e) AAA Aaa 1,000 1,101,160
- ------------------------------------------------------------------------------------------------
Mason (City of) Health Care Facilities
(MCV Health Care Facilities, Inc.); Series
1990 RB
7.625%, 02/01/40(c) AAA -- 2,180 2,387,209
- ------------------------------------------------------------------------------------------------
Ohio Department of Transportation (Panhandle
Rail Line Project); Series 1992 Certificates
of Participation
6.50%, 04/15/12(c) AAA Aaa 1,100 1,164,493
- ------------------------------------------------------------------------------------------------
7,416,689
- ------------------------------------------------------------------------------------------------
OKLAHOMA-1.85%
McAlester (City of) Public Works Authority;
Refunding and Improvement Series 1995 RB
5.50%, 12/01/10(c) AAA Aaa 975 966,332
- ------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-(continued)
Southern Oklahoma Memorial Hospital Authority;
Series 1993 A RB
5.60%, 02/01/00 A A $1,250 $ 1,271,775
- ------------------------------------------------------------------------------------------------
Tulsa (City of) Industria Authority (Medical
Center Project -- St. Johns Hospital); RB
6.25%, 02/15/14 AA Aa 2,000 2,034,500
- ------------------------------------------------------------------------------------------------
Tulsa Public Facilities Authority - Capital
Improvements - Water System; Series 1988 B RB
6.00%, 03/01/08 A+ -- 1,305 1,331,348
- ------------------------------------------------------------------------------------------------
5,603,955
- ------------------------------------------------------------------------------------------------
OREGON-1.49%
Eugene (City of) Public Safety Facilities;
Unlimited Tax Series 1996 GO
5.625%, 06/01/12 -- Aa 1,225 1,214,134
- ------------------------------------------------------------------------------------------------
Klamath Falls (City of) (Salt Caves
Hydroelectric Project); Series D RB
4.50%, 05/01/98(d)(e) SP1+ -- 1,000 1,002,920
- ------------------------------------------------------------------------------------------------
Portland (City of) Sewer System; Series 1994 A
RB
6.20%, 06/01/12 A+ A1 1,200 1,248,504
- ------------------------------------------------------------------------------------------------
6.25%, 06/01/15 A+ A1 1,000 1,036,540
- ------------------------------------------------------------------------------------------------
4,502,098
- ------------------------------------------------------------------------------------------------
PENNSYLVANIA-2.66%
Lancaster (County of) Solid Waste Management
Authority; Resource Recovery System Series
1988 A RB
8.50%, 12/15/10(b) BBB A 3,500 3,720,290
- ------------------------------------------------------------------------------------------------
Pennsylvania (State of); Third Series GO
6.75%, 11/15/13(c) AAA Aaa 1,250 1,368,975
- ------------------------------------------------------------------------------------------------
Pennsylvania Economic Development Finance
Authority (Colver Project); Resource Recovery
Series 1994 D RB
7.05%, 12/01/10(b) BBB- -- 2,900 2,964,061
- ------------------------------------------------------------------------------------------------
8,053,326
- ------------------------------------------------------------------------------------------------
PUERTO RICO-1.82%
Puerto Rico (Commonwealth of) Electric Power
Authority; RB
7.00%, Series 1991 P 07/01/01(d)(e) A- Baa1 1,325 1,483,417
- ------------------------------------------------------------------------------------------------
6.00%, Series 1989 07/01/10 A- Baa1 4,000 4,032,560
- ------------------------------------------------------------------------------------------------
5,515,977
- ------------------------------------------------------------------------------------------------
RHODE ISLAND-0.80%
Rhode Island Depositors Economic Protection
Corp.;
Special Obligation Series 1992 A RB
6.95%, 08/01/02(d)(e) AAA Aaa 1,250 1,401,850
- ------------------------------------------------------------------------------------------------
Rhode Island Housing and Mortgage Finance
Agency; Homeownership Opportunity Series 15 B
RB
6.00%, 10/01/04 AA+ Aa 1,000 1,030,680
- ------------------------------------------------------------------------------------------------
2,432,530
- ------------------------------------------------------------------------------------------------
SOUTH CAROLINA-0.35%
South Carolina State Education Assistance
Authority;
Guaranteed Student Loan Series 1990 RB
6.60%, 09/01/01(b) AA -- 500 532,845
- ------------------------------------------------------------------------------------------------
South Carolina State Housing Finance and
Development Authority; Homeownership Mortgage
Series 1990 C RB
7.50%, 07/01/05(b) AA Aa 500 526,710
- ------------------------------------------------------------------------------------------------
1,059,555
- ------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TENNESSEE-1.13%
Davidson (County of) Madison Suburban Utility
District;
Water Refunding RB
5.70%, 02/01/11(c) AAA Aaa $1,180 $ 1,185,888
- ------------------------------------------------------------------------------------------------
Nashville and Davidson (Counties of)
Metropolitan Government; Water and Sewer
Refunding Series 1986 RB
7.25%, 01/01/06 A A1 325 330,099
- ------------------------------------------------------------------------------------------------
5.50%, 01/01/16 A A1 970 899,985
- ------------------------------------------------------------------------------------------------
Shelby (County of); Unlimited Tax School GO
6.00%, 03/01/17 AA+ Aa 1,000 1,013,800
- ------------------------------------------------------------------------------------------------
3,429,772
- ------------------------------------------------------------------------------------------------
TEXAS-15.41%
Arlington Independent School District;
Refunding
Series 1995 GO
5.75%, 02/15/21(c) -- Aaa 1,000 981,850
- ------------------------------------------------------------------------------------------------
Austin (City of); Utility System RB
6.50%, 05/15/11(c) AAA Aaa 1,380 1,445,867
- ------------------------------------------------------------------------------------------------
Austin Community College District; Combined Fee
Revenue Building and Refunding Series 1995 RB
6.10%, 02/01/13(c) AAA Aaa 1,115 1,144,102
- ------------------------------------------------------------------------------------------------
Bellville Independent School District;
Unlimited Tax School Building and Refunding
Series 1995 GO
6.125%, 02/01/20(c) -- Aaa 830 830,241
- ------------------------------------------------------------------------------------------------
Brazos Higher Education Loan Authority Inc.;
Student Loan Refunding RB
6.45%, Series 1992 C-1 11/01/02(b) -- Aa 1,150 1,224,647
- ------------------------------------------------------------------------------------------------
6.50%, Series 1994 B-1 06/01/04(b) -- A 700 732,494
- ------------------------------------------------------------------------------------------------
Brazos River Authority (Houston Lighting and
Power Project); Collateralized Series 1986 A
RB
7.875%, 11/01/18(b)(c) AAA Aaa 2,825 2,910,146
- ------------------------------------------------------------------------------------------------
Carrollton (City of); GO
5.75%, 08/15/16 AA- Aa 1,000 989,350
- ------------------------------------------------------------------------------------------------
Comal County Industrial Development Authority
(The Coleman Company, Inc. Project);
Industrial Development Series 1980 RB
9.25%, 08/01/00(d) NRR NRR 1,415 1,566,136
- ------------------------------------------------------------------------------------------------
Dallas (City of); Waterworks and Sewer System
Series 1994 A RB
6.00%, 10/01/14 AA Aa 2,030 2,056,086
- ------------------------------------------------------------------------------------------------
Dallas-Fort Worth Regional Airport Authority;
Airport
Series 1985 RB
6.10%, 11/01/07(c) AAA Aaa 430 432,283
- ------------------------------------------------------------------------------------------------
6.10%, 11/01/07 A A1 200 200,022
- ------------------------------------------------------------------------------------------------
Farmers Branch; Assessment and Utility System
Certificates of Obligation RB
5.40%, 11/01/14 A- A 1,000 914,030
- ------------------------------------------------------------------------------------------------
Georgetown (City of); Utility System Series
1995 A RB
6.20%, 08/15/15(c) AAA Aaa 1,500 1,530,195
- ------------------------------------------------------------------------------------------------
Harris County; Toll Road Unlimited Tax General
Obligation and Subordinate Lien Refunding
Series 1991 RB
6.75%, 08/01/14 AA Aa 3,850 4,163,467
- ------------------------------------------------------------------------------------------------
Harris County Health Facilities Development
Corp.
(Saint Luke's Episcopal Hospital Project);
Series 1991 RB
6.70%, 02/15/03 AA Aa 1,000 1,080,850
- ------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TEXAS-(continued)
Harris County Mental Health and Mental
Retardation Authority; Refunding Series 1992
RB
6.25%, 9/15/10(c) AAA Aaa $4,500 $ 4,643,820
- ------------------------------------------------------------------------------------------------
Houston (City of); Refunding Series 1992 C GO
6.25%, 03/01/02(d)(e) NRR NRR 1,470 1,563,227
- ------------------------------------------------------------------------------------------------
Hurst, Euless, Bedford, Texas Independent
School District; Refunding RB
6.50%, 08/15/24(c) AAA Aaa 1,000 1,053,310
- ------------------------------------------------------------------------------------------------
Keller (City of) Independent School District;
Certificates of Participation Series 1994
6.00%, 08/15/05(c) AAA Aaa 1,000 1,064,150
- ------------------------------------------------------------------------------------------------
North Texas Higher Education Authority Inc.;
Student Loan Refunding Series D RB
6.10%, 04/01/08(b) -- Aa 1,000 997,390
- ------------------------------------------------------------------------------------------------
6.30%, 04/01/09(b) -- A 500 502,270
- ------------------------------------------------------------------------------------------------
Plano (City of) Independent School District;
Unlimited Tax Series 1991 B GO
5.625%, 02/15/01(d)(e) AAA Aaa 2,500 2,584,350
- ------------------------------------------------------------------------------------------------
Richardson (City of) Hospital Authority
(Richardson Medical Center); Refunding RB
6.50%, 12/01/12 BBB- Baa 1,925 1,884,998
- ------------------------------------------------------------------------------------------------
Round Rock Independent School District; Series
A GO
6.10%, 08/01/09(c) AAA Aaa 1,760 1,820,597
- ------------------------------------------------------------------------------------------------
Texas (State of); Unlimited Tax Veterans Land
GO
6.40%, 12/01/24(b) AA Aa 2,000 2,007,580
- ------------------------------------------------------------------------------------------------
Texas (State of) Housing Agency; Residential
Development Mortgage Series 1987 D RB
8.40%, 07/01/20(b) A+ Aa 3,460 3,623,174
- ------------------------------------------------------------------------------------------------
Texas National Research Laboratory Community
Financing Corp. (Superconducting Super
Collider); Lease RB
7.10%, 12/01/01(d)(e) AAA Aaa 600 674,327
- ------------------------------------------------------------------------------------------------
Victoria (County of) Texas Hospital Citizens
Medical Center; RB
6.20%, 01/01/10(c) AAA Aaa 1,000 1,037,750
- ------------------------------------------------------------------------------------------------
Weatherford (City of) Independent School
District; Refunding Series 1994 GO
6.40%, 02/15/12(c) AAA Aaa 1,000 1,057,510
- ------------------------------------------------------------------------------------------------
46,716,219
- ------------------------------------------------------------------------------------------------
UTAH-1.55%
Utah (State of) Housing Finance Agency; Term
Subordinate Single Family Mortgage RB
6.30%, Series 1994 E-1, 07/01/06 A+ A1 915 950,026
- ------------------------------------------------------------------------------------------------
7.15%, Series 1994 G-1, 07/01/06 A+ A1 915 981,850
- ------------------------------------------------------------------------------------------------
Utah (State of) Housing Finance Agency; Series
1994 C RB
6.05%, 07/01/06 -- A1 930 943,922
- ------------------------------------------------------------------------------------------------
Utah (State of) Housing Finance Agency;
Single Family Mortgage RB
6.30%, Series 1995 G, 07/01/16 AAA Aaa 500 502,430
- ------------------------------------------------------------------------------------------------
6.45%, Series G2, 07/01/27(b) AAA Aaa 1,330 1,336,411
- ------------------------------------------------------------------------------------------------
4,714,639
- ------------------------------------------------------------------------------------------------
VIRGIN ISLAND-1.02%
Virgin Islands Territory (Hugo Insurance Claims
Fund);
Special Tax Bond Series 1991 GO
7.75%, 10/01/06(h) -- -- 2,905 3,105,300
- ------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
VIRGINIA-1.37%
Henrico (County of) Industrial Development
Authority (Hermitage Project); RB
3.70%, 05/01/24(f) -- VMIG-1 $2,094 $ 2,094,157
- ------------------------------------------------------------------------------------------------
Richmond (City of); Public Improvement
Refunding
Series B GO
6.25%, 01/15/18 AA A1 2,000 2,061,440
- ------------------------------------------------------------------------------------------------
4,155,597
- ------------------------------------------------------------------------------------------------
WASHINGTON-1.75%
Clark (County of) Gamas School District #117;
GO
6.00%, 12/01/14(c) AAA Aaa 1,000 1,015,730
- ------------------------------------------------------------------------------------------------
King (County of); Unlimited Tax GO
5.50%, 07/01/07(d) AAA Aaa 500 506,170
- ------------------------------------------------------------------------------------------------
King (County of); Unlimited Tax Refunding GO
6.50%, 12/01/11 AA+ Aa1 500 503,550
- ------------------------------------------------------------------------------------------------
Pend Oreille (County of) Public Utility
District #1; Electric Series B RB
6.30%, 01/01/17 BBB+ A 1,400 1,390,438
- ------------------------------------------------------------------------------------------------
Seattle (City of) Metropolitan Sewer District;
Series T RB
6.80%, 01/01/11 AA- A1 1,780 1,900,275
- ------------------------------------------------------------------------------------------------
5,316,163
- ------------------------------------------------------------------------------------------------
WISCONSIN-0.58%
Wisconsin Housing and Economic Development
Authority; Home Ownership RB
7.40%, Series 1994 F 07/01/13(b) AA Aa 1,000 1,056,380
- ------------------------------------------------------------------------------------------------
8.00%, Series 1990 E 03/01/21(b) A+ Aa 685 714,051
- ------------------------------------------------------------------------------------------------
1,770,431
- ------------------------------------------------------------------------------------------------
WYOMING-0.33%
Natrona (County of) Wyoming Medical Center; RB
6.00%, 09/15/11(c) AAA Aaa 1,000 1,015,860
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.37% 301,384,673
- ------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.63% 1,909,606
- ------------------------------------------------------------------------------------------------
NET ASSETS-100.00% $303,294,279
================================================================================================
</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, 1996.
(g) Secured by a letter of credit.
(h) Unrated security; determined by the investment advisor to be of comparable
quality to the rated securities in which the Fund may invest, pursuant to
guidelines of quality adopted by the Board of Trustees and followed by the
investment advisor.
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.
13
<PAGE> 16
Financials
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $286,845,320) $301,384,673
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 3,332,665
- -----------------------------------------------------------------------------------------
Fund shares sold 641,919
- -----------------------------------------------------------------------------------------
Interest 5,121,618
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 55,000
- -----------------------------------------------------------------------------------------
Other assets 28,588
- -----------------------------------------------------------------------------------------
Total assets 310,564,463
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,953,631
- -----------------------------------------------------------------------------------------
Fund shares reacquired 303,870
- -----------------------------------------------------------------------------------------
Deferred compensation plan 55,000
- -----------------------------------------------------------------------------------------
Dividends 554,561
- -----------------------------------------------------------------------------------------
Accrued advisory fees 115,088
- -----------------------------------------------------------------------------------------
Accrued administrative service fees 5,644
- -----------------------------------------------------------------------------------------
Accrued distribution fees 199,033
- -----------------------------------------------------------------------------------------
Accrued trustees' fees 1,918
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 32,208
- -----------------------------------------------------------------------------------------
Accrued operating expenses 49,231
- -----------------------------------------------------------------------------------------
Total liabilities 7,270,184
- -----------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $303,294,279
=========================================================================================
NET ASSETS:
Class A $275,934,113
=========================================================================================
Class B $ 27,360,166
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 34,060,961
=========================================================================================
Class B 3,376,255
=========================================================================================
Class A:
Net asset value and redemption price per share $ 8.10
=========================================================================================
Offering price per share:
(Net asset value of $8.10 divided by 95.25%) $ 8.50
=========================================================================================
Class B:
Net asset value and offering price per share $ 8.10
=========================================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
Financials
STATEMENT OF OPERATIONS
For the six months ended June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 9,177,169
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 696,692
- ----------------------------------------------------------------------------------------
Custodian fees 11,544
- ----------------------------------------------------------------------------------------
Transfer agent fees - Class A 70,462
- ----------------------------------------------------------------------------------------
Transfer agent fees - Class B 8,946
- ----------------------------------------------------------------------------------------
Administrative service fees 33,864
- ----------------------------------------------------------------------------------------
Trustees' fees 3,935
- ----------------------------------------------------------------------------------------
Distribution fees - Class A 344,217
- ----------------------------------------------------------------------------------------
Distribution fees - Class B 121,182
- ----------------------------------------------------------------------------------------
Other 78,447
- ----------------------------------------------------------------------------------------
Total expenses 1,369,289
- ----------------------------------------------------------------------------------------
Net investment income 7,807,880
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES:
Realized gain (loss) on sales of investment securities (55,214)
- ----------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment securities (7,538,105)
- ----------------------------------------------------------------------------------------
Net gain (loss) on investment securities (7,593,319)
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 214,561
========================================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1996 and the year ended December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 7,807,880 $15,091,309
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment
securities (55,214) 674,681
- ------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment
securities (7,538,105) 19,230,259
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 214,561 34,996,249
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (7,307,742) (14,621,874)
- ------------------------------------------------------------------------------------------
Class B (534,956) (654,391)
- ------------------------------------------------------------------------------------------
Return of capital:
Class A -- (1,011,782)
- ------------------------------------------------------------------------------------------
Class B -- (45,282)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A (1,796,682) 9,550,157
- ------------------------------------------------------------------------------------------
Class B 6,438,769 11,436,172
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (2,986,050) 39,649,249
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 306,280,329 266,631,080
- ------------------------------------------------------------------------------------------
End of period $303,294,279 $306,280,329
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $290,618,752 $285,976,665
- ------------------------------------------------------------------------------------------
Undistributed net investment income (95,839) (61,021)
- ------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on investment
securities (1,767,987) (1,712,773)
- ------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 14,539,353 22,077,458
- ------------------------------------------------------------------------------------------
$303,294,279 $306,280,329
==========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
Financials
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(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 Fund's objective is to achieve a high
level of current income exempt from federal income taxes consistent with the
preservation of principal by investing in a diversified portfolio of municipal
bonds.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
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 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 either are not readily available or are
questionable are valued at fair value as determined in good faith by or under
the supervision of the Trust's officers in a manner 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 $1,712,774 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized, in
the year 2002.
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.
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.
17
<PAGE> 20
Financials
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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, 1996, AIM
was reimbursed $33,864 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 and
shareholder services to the Fund. During the six months ended June 30, 1996, AFS
was paid $49,554 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 provides for 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. AIM Distributors may,
from time to time, assign, transfer or pledge to one or more assignees, its
rights to all or a designated portion of (a) compensation payable to AIM
Distributors from the Fund pursuant to the Class B Plan (but not AIM
Distributors' duties and obligations pursuant to the Class B Plan) and (b) any
contingent deferred sales charges received by AIM Distributors related to the
Class B shares. During the six months ended June 30, 1996, the Class A shares
and the Class B shares paid AIM Distributors $344,217 and $121,182,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $69,349 from sales of the Class A
shares of the Fund during the six months ended June 30, 1996. 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,
1996, AIM Distributors received $21,833 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, 1996, the Fund paid legal fees of $1,602
for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to the
Board of Trustees. A member of that firm is a trustee of the Trust.
NOTE 3 - TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of AIM. 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 - BANK BORROWINGS
The Fund has a $4,900,000 committed line of credit with a syndicate administered
by The Chase Manhattan Bank d/b/a Chemical Bank. Interest on borrowings under
the line of credit is payable on maturity or prepayment date. During the six
months ended June 30, 1996, the Fund did not borrow under the line of credit
agreement. The Fund is charged a commitment fee, payable quarterly, at the rate
of 1/10 of 1% per annum on the unused balance of the Fund's committed line.
Effective July 19, 1996, the Fund may borrow up to the lesser of (i)
$325,000,000 or (ii) the limits set by its prospectus for borrowings, under the
line of credit administered by The Chase Manhattan Bank d/b/a Chemical Bank. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first serve basis.
18
<PAGE> 21
Financials
NOTE 5 - 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, 1996 was
$36,298,144 and $43,463,971, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of June 30, 1996 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $14,760,849
- ------------------------------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (221,496)
- ------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $14,539,353
========================================================================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
NOTE 6 - SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 1996 and the
year ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
<S> <C> <C> <C> <C>
---------------------------- ----------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ----------- ------------
Sold:
Class A 2,907,308 $ 23,774,302 6,038,257 $ 48,938,165
- ---------------------------------------------------------------------------------------------------------------------------------
Class B 1,337,245 10,906,575 1,963,653 15,985,997
- ---------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 524,176 4,283,021 1,117,182 9,074,834
- ---------------------------------------------------------------------------------------------------------------------------------
Class B 37,680 307,663 50,725 412,983
- ---------------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (3,644,775) (29,854,005) (5,965,522) (48,462,842)
- ---------------------------------------------------------------------------------------------------------------------------------
Class B (583,367) (4,775,469) (608,842) (4,962,808)
- ---------------------------------------------------------------------------------------------------------------------------------
578,267 $ 4,642,087 2,595,453 $ 20,986,329
=================================================================================================================================
</TABLE>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share
outstanding during the six months ended June 30, 1996 and each of the years in
the nine-year period ended December 31, 1995 and for a Class B share outstanding
during the six months ended June 30, 1996, each of the years in the two-year
period ended December 31, 1995 and the period September 1, 1993 (date sales
commenced) through December 31, 1993.
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1996 1995 1994 1993 1992(a) 1991
<S> <C> <C> <C> <C> <C> <C>
-------- -------- -------- -------- -------- --------
CLASS A:
Net asset value, beginning of period $ 8.31 $ 7.78 $ 8.61 $ 8.27 $ 8.13 $ 7.66
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.21 0.43 0.46 0.48 0.51 0.52
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) (0.20) 0.56 (0.78) 0.46 0.21 0.46
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Total from investment operations 0.01 0.99 (0.32) 0.94 0.72 0.98
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.22) (0.43) (0.45) (0.48) (0.51) (0.51)
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions from net realized
capital gains -- -- (0.03) (0.11) (0.07) --
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Returns of capital -- (0.03) (0.03) (0.01) -- --
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions (0.22) (0.46) (0.51) (0.60) (0.58) (0.51)
- --------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 8.10 $ 8.31 $ 7.78 $ 8.61 $ 8.27 $ 8.13
============================================= ======== ======== ======== ======== ======== ========
Total return(b) 0.08% 13.05% (3.79)% 11.66% 9.10% 13.30%
============================================= ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $275,934 $284,803 $257,456 $294,209 $271,205 $273,037
============================================= ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 0.85%(c) 0.88% 0.89% 0.91% 0.90% 0.94%
============================================= ======== ======== ======== ======== ======== ========
Ratio of net investment income to average net
assets 5.28%(c) 5.26% 5.61% 5.65% 6.15% 6.58%
============================================= ======== ======== ======== ======== ======== ========
Portfolio turnover rate 13% 36% 43% 24% 160% 289%
============================================= ======== ======== ======== ======== ======== ========
<CAPTION>
December 31,
-----------------------------------------------
1990 1989 1988 1987
<S> <C> <C> <C> <C>
-------- -------- -------- --------
CLASS A:
Net asset value, beginning of period $ 7.81 $ 7.64 $ 7.32 $ 8.41
- --------------------------------------------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.53 0.54 0.53 0.51
- --------------------------------------------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) (0.14) 0.18 0.34 (0.65)
- --------------------------------------------- -------- -------- -------- --------
Total from investment operations 0.39 0.72 0.87 (0.14)
- --------------------------------------------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.53) (0.55) (0.55) (0.49)
- --------------------------------------------- -------- -------- -------- --------
Distributions from net realized
capital gains -- -- -- (0.46)
- --------------------------------------------- -------- -------- -------- --------
Returns of capital (0.01) -- -- --
- --------------------------------------------- -------- -------- -------- --------
Total distributions (0.54) (0.55) (0.55) (0.95)
- --------------------------------------------- -------- -------- -------- --------
Net asset value, end of period $ 7.66 $ 7.81 $ 7.64 $ 7.32
============================================= ======== ======== ======== ========
Total return(b) 5.27% 9.70% 12.33% (1.88)%
============================================= ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $258,194 $262,997 $243,480 $237,225
============================================= ======== ======== ======== ========
Ratio of expenses to average net assets 0.91% 0.89% 0.87% 0.80%
============================================= ======== ======== ======== ========
Ratio of net investment income to average net
assets 6.91% 6.97% 7.11% 6.71%
============================================= ======== ======== ======== ========
Portfolio turnover rate 230% 305% 381% 392%
============================================= ======== ======== ======== ========
</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 $276,886,308.
19
<PAGE> 22
Financials
NOTE 7 - FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, -------------------------------
1996 1995 1994 1993
-------- ------- ------ ------
<S> <C> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 8.31 $ 7.78 $ 8.61 $ 8.71
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Income from investment operations:
Net investment income 0.18 0.39 0.39 0.14
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Net gains (losses) on securities (both realized and unrealized) (0.21) 0.54 (0.78) 0.01
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Total from investment operations (0.03) 0.93 (0.39) 0.15
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Less distributions:
Dividends from net investment income (0.18) (0.37) (0.38) (0.13)
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Distributions from net realized capital gains -- -- (0.03) (0.11)
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Returns of capital -- (0.03) (0.03) (0.01)
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Total distributions (0.18) (0.40) (0.44) (0.25)
- ------------------------------------------------------------------------------- ------- ------- ------ ------
Net asset value, end of period $ 8.10 $ 8.31 $ 7.78 $ 8.61
=============================================================================== ======= ======= ====== ======
Total return(a) (0.36)% 12.14% (4.57)% 1.95%
=============================================================================== ======= ======= ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $27,360 $21,478 $9,175 $2,319
=============================================================================== ======= ======= ====== ======
Ratio of expenses to average net assets(b) 1.65%(d) 1.68% 1.67% 1.65%(e)
=============================================================================== ======= ======= ====== ======
Ratio of net investment income to average net assets(c) 4.48%(d) 4.46% 4.83% 4.91%(e)
=============================================================================== ======= ======= ====== ======
Portfolio turnover rate 13% 36% 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 1.77%, 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 4.37%, 4.66% and 3.48% (annualized) for the period
1995-1993, respectively.
(d) Ratios are annualized and based on average daily net assets of $24,369,503.
(e) Annualized.
20
<PAGE> 23
Trustees &
Officers
<TABLE>
<S> <C> <C>
TRUSTEES OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 763
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Formerly 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. TRANSFER AGENT
Scott G. Lucas
Carl Frischling Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 1919
Kramer, Levin, Naftalis & Frankel Carol F. Relihan Houston, TX 77210-4739
Senior Vice President and Secretary
Robert H. Graham CUSTODIAN
President and Chief Operating Officer Robert G. Alley
A I M Management Group Inc. Vice President The Bank of New York
90 Washington Street
John F. Kroeger Stuart W. Coco New York, NY 10286
Formerly Consultant Vice President
Wendell & Stockel Associates, Inc. COUNSEL TO THE FUND
Melville B. Cox
Lewis F. Pennock Vice President Ballard Spahr
Attorney Andrews & Ingersoll
Karen Dunn Kelley 1735 Market Street
Ian W. Robinson Vice President Philadelphia, PA 19103
Consultant; Formerly Executive
Vice President and Jonathan C. Schoolar COUNSEL TO THE TRUSTEES
Chief Financial Officer Vice President
Bell Atlantic Management Kramer, Levin, Naftalis & Frankel
Services, Inc. Dana R. Sutton 919 Third Avenue
Vice President and Assistant Treasurer New York, NY 10022
Louis S. Sklar
Executive Vice President P. Michelle Grace DISTRIBUTOR
Hines Interests Assistant Secretary
Limited Partnership A I M Distributors, Inc.
David L. Kite 11 Greenway Plaza
Assistant Secretary Suite 1919
Houston, TX 77046
Nancy L. Martin
Assistant Secretary
Ofelia M. Mayo
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 24
<TABLE>
<S> <S>
[PHOTO OF GREENWAY PLAZA THE AIM FAMILY OF FUNDS--Registered Trademark--
APPEARS HERE]
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Blue Chip Fund
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
AIM Global Utilities Fund
HIGH CURRENT INCOME
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 CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE
OF SAFETY
AIM Intermediate Government 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 Management Group has provided *AIM Aggressive Growth Fund was
leadership in the mutual fund closed to new investors on July 18,
industry since 1976 and currently 1995. **On September 25, 1995, AIM
manages approximately $55 billion in Government Securities Fund became AIM
assets for more than 3 million Intermediate Government Fund. For
shareholders, including individual more complete information about any
investors, corporate clients, and AIM Fund(s), including sales charges
financial institutions. The AIM and expenses, ask your financial
Family of Funds--Registered consultant or securities dealer for a
Trademark-- is distributed free prospectus(es). Please read the
nationwide, and AIM today ranks prospectus(es) carefully before you
among the nation s top 15 mutual invest or send money.
fund companies in assets under
management, according to Lipper
Analytical Services, Inc.
-------------------
BULK RATE
[AIM LOGO APPEARS HERE] U.S. POSTAGE
PAID
A I M Distributors, Inc. HOUSTON, TX
11 Greenway Plaza, Suite 1919 Permit No. 1919
Houston, TX 77046 -------------------
</TABLE>
