<PAGE>
[LOGO OF AIM APPEARS HERE]
LETTER
TO OUR
SHAREHOLDERS
May 5, 1995
Dear Shareholder:
What a difference a year makes. In April 1994, capital markets
were reeling from the Federal Reserve Board's abrupt and decisive
[PHOTO reversal of a four-year policy of declining interest rates. The
Charles T. Federal Reserve attempted to engineer a "soft landing" for the
Bauer resurgent economy--slowing growth but not to the point of
Chairman of recession--with a series of increases in the federal funds rate
the Board of and the discount rate.
the Fund By the first quarter of 1995, evidence suggested the Fed had
APPEARS HERE] been successful in managing inflation. The state of the economy--
moderate, constructive growth with low unemployment and low
inflation--was healthier than it had been in years. Following the most recent
interest rate increase in February 1995, equity markets soared to record highs,
and long-term interest rates declined to a seven-month low.
Short-term interest rates, however, have remained stable, with the federal
funds rate tracking its target of 6 percent. Money market investors, who
typically invest for safety and liquidity, have benefited from attractive
yields, which rose during the year to the highest levels in almost four years.
Stable demand coupled with a falling supply of new issues, helped support yields
of municipal securities relative to taxable securities.
YOUR INVESTMENT PORTFOLIO
During the year ended March 31, 1995, the Cash Reserve Portfolio of Tax-Free
Investments Co. (TFIC) continued its strict investment discipline of purchasing
securities of superior credit quality with maturities of 397 days or less. The
Fund maintained its AAAm rating, the highest given by Standard & Poor's
Corporation, a widely known credit rating agency. The AAAm rating is historical
and is based on an annual analysis of the Portfolio's credit quality and
composition, management, and weekly portfolio review.
Responding to the upward trend in interest rates, Cash Reserve Portfolio's
managers shortened the weighted average maturity, which was 20 days at the close
of the fiscal year, and captured attractive yields available in tax-free money
market instruments. The yield on Institutional Cash Reserve Shares of Cash
Reserve Portfolio outperformed similar funds tracked by IBC/Donoghue's Money
Fund Averages(TM).
As of March 31, 1995, the 30-day average yield of the Institutional Cash
Reserve Shares was 3.64 percent, compared to the reported yields of 3.58 percent
for IBC/Donoghue's Tax-Free Money Funds Average(TM) (Institutions Only) and 3.36
percent for IBC/Donoghue's All Tax-Free Money Fund Average(TM), as shown by the
chart on page two. Of course, past performance cannot guarantee comparable
future results.
The seven-day SEC yield for the Institutional Cash Reserve Shares was 3.86
percent as of March 31, 1995. At the end of the fiscal year, net assets were
$1.01 billion.
OUTLOOK FOR THE FUTURE
After a year of interest rate increases by the Federal Reserve, the effects are
beginning to be felt in the economy and no further tightening appears likely in
the near term. As economic conditions continue to improve, so has investors'
confidence in the Federal Reserve's capacity to manage inflation. More and more
economic reports point toward the optimal soft landing, which could translate
into a longer earnings cycle, lower interest rates, and nominal inflation over
the long term.
AIM remains committed to the primary objectives of safety, liquidity, and
yield in professional money fund management. As always, we are ready to respond
to your comments about this report. Please call us at (800) 659-1005 with any
questions you may have about your Fund.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
AVERAGE MONTHLY YIELD COMPARISON(1)
TFIC INSTITUTIONAL CASH SHARES vs. IBC/Donoghue's Tax-Free Money Fund
Averages(TM) (Institutions Only) vs. IBC/Donoghue's All Tax-Free
Money Fund Averages(TM)
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
IBC/DONOGHUE'S
TFIC TAX-FREE MONEY IBC/DONOGHUE'S
INSTITUTIONAL FUNDS AVERAGES ALL TAX-FREE
Measurement period CASH RESERVE (INSTITUTIONS MONEY FUND
(12 months ended 3/31/95) SHARES(1) ONLY)(TM)(2) AVERAGES(TM)(3)
- ------------------------- ------------- -------------- ---------------
(Yield)
<S> <C> <C> <C>
4/94 2.30% 2.22% 2.00%
5/94 2.67% 2.55% 2.32%
6/94 2.46% 2.38% 2.14%
7/94 2.46% 2.37% 2.12%
8/94 2.74% 2.67% 2.44%
9/94 3.00% 2.93% 2.70%
10/94 3.03% 2.91% 2.68%
11/94 3.32% 3.17% 2.96%
12/94 3.75% 3.61% 3.42%
1/95 3.18% 3.25% 3.05%
2/95 3.68% 3.56% 3.36%
3/95 3.64% 3.58% 3.36%
</TABLE>
(1) Yields shown above are net of expenses.
(2) Average yield for all Tax-Free Money Funds (Institutions Only) category
compiled by IBC Money Market Insight(TM).
(3) Average yield for all Tax-Free Money Funds category compiled by IBC Money
Market Insight(TM).
TFIC Institutional Cash Reserve Shares' 7-day SEC yield as of March 31, 1995,
was 3.86%.
The monthly yields shown represent past performance. Future yields will
fluctuate. Yields are average 30-day yields for the month-ends shown.
2
<PAGE>
SCHEDULE OF INVESTMENTS
March 31, 1995
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
ALABAMA - 1.07%
- -------------------------------------------------------------------------------
Birmingham (City of); General
Obligation Series 1994-A Warrants
4.20% 06/01/18(b)(c) A-1+ VMIG-1 $ 3,000 $ 3,000,000
- -------------------------------------------------------------------------------
Industrial Development Board of the
City of McIntosh (CIBA-GEIGY Corp.
Project); Variable Rate Series 1986
PCR
4.50% 07/01/04(b)(c) A-1+ -- 1,200 1,200,000
- -------------------------------------------------------------------------------
Marshall (County of); Special
Obligation School Refunding
Series 1994 Warrants
4.25% 02/01/12(b)(c) A-1+ -- 2,925 2,925,000
- -------------------------------------------------------------------------------
Medical Clinic Board of the City of
Birmingham; Medical Clinic UAHSF
Series 1991 RB
4.50% 12/01/26(b)(c) A-1+ - 4,000 4,000,000
- -------------------------------------------------------------------------------
11,125,000
- -------------------------------------------------------------------------------
ALASKA - 2.81%
Alaska (State of) Finance Corp.;
Government Purpose Series
1994 A RB
4.25% 12/01/24(b)(c) A-1+ VMIG-1 5,000 5,000,000
- -------------------------------------------------------------------------------
Alaska Housing Finance Corp.; General
Mortgage RB
4.20% Series 1991 A 06/01/26(b) A-1+ VMIG-1 6,000 6,000,000
- -------------------------------------------------------------------------------
4.15% Series 1991 C 06/01/26(b) A-1+ VMIG-1 18,200 18,200,000
- -------------------------------------------------------------------------------
29,200,000
- -------------------------------------------------------------------------------
ARIZONA - 5.42%
Apache (County of) (Tucson Electric
Co.); Series 1981 B PCR
4.25% 10/01/21(b)(c) A-1+ VMIG-1 8,000 8,000,000
- -------------------------------------------------------------------------------
Industrial Development Authority of the
County of Pinal (Magma Copper Co.
Project); Refunding PCR
4.55% Series 1984 12/01/09(b)(c) A-1+ P-1 2,600 2,600,000
- -------------------------------------------------------------------------------
4.25% Series 1992 12/01/11(b)(c) A-1+ VMIG-1 2,500 2,500,000
- -------------------------------------------------------------------------------
Maricopa County Pollution Control Corp.
(Arizona Public Service Co.); PCR
4.50% Series 1994 A 05/01/29(b)(c) A-1+ P-1 700 700,000
- -------------------------------------------------------------------------------
4.50% Series 1994 C 05/01/29(b)(c) A-1+ P-1 5,900 5,900,000
- -------------------------------------------------------------------------------
Peoria Unified School District No. 11
of Maricopa County; School Improvement
Refunding Series 1994 RB
3.75% 07/01/95(d) AAA Aaa 1,830 1,830,000
- -------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Arizona - (continued)
Pima County Industrial Development
Authority (Tucson Electric Power Co.-
Irvington Project); Series 1982-A IDR
4.20% 10/01/22(b)(c) A-1+ VMIG-1 $ 6,200 $ 6,200,000
- -------------------------------------------------------------------------------
Pima County Industrial Development
Authority (Tucson Electric Power Co.
General Project); Series 1982 A IDR
4.20% 07/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
- -------------------------------------------------------------------------------
Pima County Industrial Development
Authority (Tucson Retirement Center
Project); Refunding Series 1988 IDR
4.00% 01/01/09(b)(c) -- VMIG-1 3,000 3,000,000
- -------------------------------------------------------------------------------
4.00% 06/15/22(b)(c) A-1+ VMIG-1 22,100 22,100,000
- -------------------------------------------------------------------------------
Tempe Union High School District No.
213; Series 1994 TAN
4.70% 07/28/95 SP-1+ -- 1,500 1,502,338
- -------------------------------------------------------------------------------
56,332,338
- -------------------------------------------------------------------------------
ARKANSAS - 0.46%
Arkansas Hospital Equipment Finance
Authority; Equipment Lease Series
1985 RB
4.10% 12/01/05(b)(c) A-1+ -- 1,800 1,800,000
- -------------------------------------------------------------------------------
University of Arkansas Board of
Trustees (UAMS Campus): Various
Facility Series 1994 RB
4.20% 12/01/19(b)(c) -- VMIG-1 3,000 3,000,000
- -------------------------------------------------------------------------------
4,800,000
- -------------------------------------------------------------------------------
CALIFORNIA - 3.45%
Alameda (County of); 1994-95 TRAN
4.75% 08/11/95 SP-1+ MIG-1 5,000 5,009,490
- -------------------------------------------------------------------------------
California School Cash Reserve Program
Authority;
Series 1994 A RAN
4.50% 07/05/95 -- MIG-1 4,000 4,007,518
- -------------------------------------------------------------------------------
California Statewide Community
Development Authority;
Series 1994 A TRAN
4.50% 07/17/95(c) SP-1+ MIG-1 6,000 6,013,558
- -------------------------------------------------------------------------------
Los Angeles County Local Educational
Agencies; Series
1994-95 A TRAN
4.50% 07/06/95(c)(d) SP-1+ MIG-1 3,000 3,004,791
- -------------------------------------------------------------------------------
Riverside (County of); Series 1994-95
TRAN
4.25% 06/30/95 SP-1+ MIG-1 2,800 2,804,326
- -------------------------------------------------------------------------------
Sacramento (City of); 1994 TRAN
4.50% 07/28/95 SP-1+ MIG-1 5,000 5,004,964
- -------------------------------------------------------------------------------
San Diego Area Local Governments; 1994
TRAN
4.50% 06/30/95 SP-1+ -- 10,000 10,021,410
- -------------------------------------------------------------------------------
35,866,057
- -------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
COLORADO - 2.26%
Colorado (State of); Series 1994 TRAN
4.50% 06/27/95 -- MIG-1 $ 4,000 $ 4,006,433
- ------------------------------------------------------------------------------
Colorado Health Facilities Authority
(Boulder Community Hospital Project);
Variable Rate Demand Hospital Series
1989 B RB
4.00% 10/01/14(b)(c) A-1+ VMIG-1 4,795 4,795,000
- ------------------------------------------------------------------------------
Colorado Health Facilities Finance
Authority (Sisters of Charity Health
Facility); RB
4.05% Series 1992 A 05/15/22(b) A-1+ VMIG-1 2,000 2,000,000
- ------------------------------------------------------------------------------
4.05% Series 1992 B 05/15/22(b) A-1+ VMIG-1 1,000 1,000,000
- ------------------------------------------------------------------------------
Pitkin (County of) (Centennial-Aspen
Project); Multifamily Housing Series
1984 RB
3.95% 04/01/07(b)(d) -- VMIG-1 7,700 7,700,000
- ------------------------------------------------------------------------------
Regional Transportation District;
Weekly Adjustable/Fixed Rate Special
Passenger Fare Series 1989 A RB
4.25% 06/01/99(b)(d) A-1+ -- 4,005 4,005,000
- ------------------------------------------------------------------------------
23,506,433
- ------------------------------------------------------------------------------
CONNECTICUT - 1.92%
Connecticut (State of); Special
Assessment Unemployment Compensation
Advance Refunding Series 1993 C RB
3.85% 07/01/95(c)(e) A-1+ VMIG-1 20,000 19,984,773
- ------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.37%
District of Columbia (The American
University Issue); Variable Rate
Weekly Demand Series 1985 RB
4.30% 10/01/15(b)(d) -- VMIG-1 3,800 3,800,000
- ------------------------------------------------------------------------------
DELAWARE - 0.47%
Delaware Health Facilities Authority
(Pooled Loan Program); Variable Rate
Weekly Demand/Fixed Rate Series 1988
RB
4.10% 03/01/00(b)(d) A-1+ VMIG-1 4,900 4,900,000
- ------------------------------------------------------------------------------
FLORIDA - 2.69%
Florida Housing Finance Authority
(Cypress Lake Project); Multi-Family
Housing Series WW RB
4.05% 12/01/07(b)(c) A-1 -- 5,300 5,300,000
- ------------------------------------------------------------------------------
Florida Local Government Finance
Authority; Governmental Unit Loan
Series 1987 A RB
4.15% 09/01/16(b)(d) -- VMIG-1 4,000 4,000,000
- ------------------------------------------------------------------------------
Hillsborough County Industrial
Development Authority (Tampa Electric
Co. Gannon Coal Conversion Project);
Series 1992 PCR
4.55% 05/15/18(b) A-1+ VMIG-1 1,000 1,000,000
- ------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Florida - (continued)
Jacksonville (City of) Health Facility
Authority (Baptist Medical Center);
Hospital RB
4.45% 06/01/08(b)(d) A-1+ VMIG-1 $ 2,900 $ 2,900,000
- ------------------------------------------------------------------------------
Orange (County of); School District
Series A RAN
3.75% 04/06/95 -- MIG-1 7,940 7,939,402
- ------------------------------------------------------------------------------
Pineallas Florida Housing Authority
(Foxbridge Apartments); Multifamily
Mortgage Refunding Series 1993 A RB
4.05% 03/01/23(b)(c) A-1 -- 1,000 1,000,000
- ------------------------------------------------------------------------------
Putnam County Development Authority
(Seminole Electric Cooperative, Inc.
Project); National Rural Utilities
Cooperative Finance Corp. Guaranteed
Floating/Fixed Rate PCR
4.30% Pooled Series 1984H-1
03/15/14(b)(c) A-1+ P-1 4,065 4,065,000
- ------------------------------------------------------------------------------
4.30% Pooled Series 1984H-2
03/15/14(b)(c) A-1+ P-1 1,700 1,700,000
- ------------------------------------------------------------------------------
27,904,402
- ------------------------------------------------------------------------------
GEORGIA - 1.79%
College Park Business & Industrial
Development Authority (Marriott Corp.
Project); Adjustable Tender Series
1985 IDR
4.60% 08/01/15(b)(c) -- P-1 2,700 2,700,000
- ------------------------------------------------------------------------------
Decatur County Bianbridge Industrial
Development Authority (Kaiser
Agriculture Chemical Inc. Project);
Series 1985 IDR
4.05% 12/01/02(b)(c) A-1+ -- 3,500 3,500,000
- ------------------------------------------------------------------------------
DeKalb County Housing Authority
(Columbia on Claremont Project);
Multifamily Housing Series 1985H RB
4.05% 08/01/05(b)(c) -- VMIG-1 1,100 1,100,000
- ------------------------------------------------------------------------------
DeKalb Private Hospital Authority
(Egleston Children's Hospital at
Emory University); Variable Rate
Demand Series 1994 A Revenue
Anticipation Certificates
4.10% 03/01/24(b)(c) A-1+ VMIG-1 1,000 1,000,000
- ------------------------------------------------------------------------------
Development Authority of Burke County
(Oglethorpe Power Corp.); Adjustable
Tender Series 1994A PCR
4.10% 01/01/19(b)(d) A-1+ VMIG-1 3,100 3,100,000
- ------------------------------------------------------------------------------
Development Authority of DeKalb County
(Joyce International, Inc. Project);
Monthly Floating Rate Issued 1984 IDR
4.00% 01/01/00(b)(c) A-1 -- 500 500,000
- ------------------------------------------------------------------------------
Development Authority of DeKalb County
(Radiation Sterilizers, Inc.
Project); Variable Rate Demand Series
1985 IDR
4.00% 03/01/05(b)(c) A-1 -- 4,600 4,600,000
- ------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Georgia - (continued)
Housing Authority of Clayton County
(Kimberly Forest Apartments Project);
Multifamily Housing Refunding Series 1990
B RB
4.25% 01/01/21(b)(d) A-1+ VMIG-1 $ 2,055 $ 2,055,000
- -------------------------------------------------------------------------------
18,555,000
- -------------------------------------------------------------------------------
IDAHO - 1.88%
Idaho (State of); Series 1994 TAN
4.50% 06/29/95 SP-1 MIG-1 1,000 1,001,596
- -------------------------------------------------------------------------------
Idaho Health Facilities Authority (Holy
Cross Health System Corp.); Variable Rate
Series 1995 RB
4.15% 12/01/23(b) A-1+ VMIG-1 18,500 18,500,000
- -------------------------------------------------------------------------------
19,501,596
- -------------------------------------------------------------------------------
ILLINOIS - 7.75%
Burbank (City of) (Service Merchandise Co.
Inc. Project); Floating Rate Monthly
Demand Industrial Building Series 1984 RB
3.90% 09/15/24(b)(c) A-1+ -- 3,600 3,600,000
- -------------------------------------------------------------------------------
Chicago (City of) O'Hare International
Airport (American Airlines, Inc.
Project); Special Facility RB
4.55% Series 1983 C 12/01/17(b)(c) -- P-1 400 400,000
- -------------------------------------------------------------------------------
4.55% Series 1983 D 12/01/17(b)(c) -- P-1 1,700 1,700,000
- -------------------------------------------------------------------------------
Cook (County of) (Catholic Charities
Housing Development Corp. Project);
Adjustable Demand Series 1988 A-1 RB
4.20% 01/01/28(b)(c) -- VMIG-1 1,700 1,700,000
- -------------------------------------------------------------------------------
East Peoria (City of) (Radnor/East Peoria
Partnership Project); Multifamily Housing
Series 1983 RB
4.375% 06/01/08(b)(c) -- Aa3 6,690 6,690,000
- -------------------------------------------------------------------------------
Elmhurst (City of) (Joint Commission on
Accreditation of Healthcare
Organizations); Adjustable Demand Series
1988 RB
4.20% 07/01/18(b)(c) A-1+ VMIG-1 1,275 1,275,000
- -------------------------------------------------------------------------------
Illinois (State of); Series 1994 General
Obligation Certificates
4.75% 05/15/95 SP-1+ MIG-1 5,000 5,005,196
- -------------------------------------------------------------------------------
Illinois Development Finance Authority
(A.E. Staley Manufacturing Co. Project);
Adjustable Tender Series 1985 PCR
4.10% 12/01/05(b)(c) -- P-1 2,000 2,000,000
- -------------------------------------------------------------------------------
Illinois Development Finance Authority
(Institutional Gas Technology Project);
Variable Rate Series 1993 RB
4.15% 09/01/18(b)(c) A-1+ -- 2,800 2,800,000
- -------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Illinois - (continued)
Illinois Development Finance Authority
(Jewish Charities Revenue Anticipation
Note Program); Variable Rate Demand
Series 1994-1995 B RAN
4.25% 06/30/95(b)(c) A-1+ -- $ 7,000 $ 7,000,000
- -------------------------------------------------------------------------------
Illinois Development Finance Authority
(Marriott Corp. Deerfield Project);
Adjustable Tender Series 1984 IDR
4.20% 11/01/14(b)(c) -- P-1 1,300 1,300,000
- -------------------------------------------------------------------------------
Illinois Educational Facilities Authority
(Aurora University Project);
Variable/Fixed Rate Refunding Series 1989
RB
4.25% 01/01/09(b)(c) A-1+ -- 800 800,000
- -------------------------------------------------------------------------------
Illinois Health Facilities Authority
(Franciscan Sisters Health Care Corp.
Project); Adjustable Rate Series 1985-B RB
4.10% 09/01/15(b)(c) -- VMIG-1 900 900,000
- -------------------------------------------------------------------------------
Illinois Health Facilities Authority
(Hospital Sister Services, Inc. Obligated
Group Project); Unit Priced Demand
Adjustable Series 1985 E RB
4.00% 12/01/14(b)(d) A-1+ VMIG-1 3,200 3,200,000
- -------------------------------------------------------------------------------
Illinois Health Facilities Authority (South
Suburban Hospital Project); Variable Rate
Demand Series 1994 RB
4.20% 02/15/14(b)(c) A-1+ -- 12,500 12,500,000
- -------------------------------------------------------------------------------
Illinois State Toll Highway Authority; Toll
Highway Refunding Series 1993 B RB
4.25% 01/01/10(b)(d) A-1+ VMIG-1 18,200 18,200,000
- -------------------------------------------------------------------------------
Marseilles (City of) (Kaiser Agricultural
Chemicals Inc. Project); Variable Rate
Demand Series 1985 IDR
4.05% 01/01/98(b)(c) A-1+ -- 4,650 4,650,000
- -------------------------------------------------------------------------------
Northwest Suburban Municipal Joint Action
Water Agency (Cook, Dupage, and Kane
Counties, Illinois); Water Supply System
Series 1985 RB
9.875% 05/01/95(e)(f) -- Aaa 1,805 1,832,226
- -------------------------------------------------------------------------------
Village of Lisle (The Ponds of Pembroke
Project); Multi-Family Housing 1985 Issue
RB
4.10% 12/15/25(b)(c) A-1+ -- 1,300 1,300,000
- -------------------------------------------------------------------------------
Village of Northbrook (Euromarket Designs,
Inc. Project); Variable Rate Demand Series
1993 IDR
4.15% 07/01/02(b)(c) A-1+ -- 3,700 3,700,000
- -------------------------------------------------------------------------------
80,552,422
- -------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
INDIANA - 0.12%
Auburn (City of) (Sealed Power Corp.
Project); Variable Rate Demand Economic
Development Series 1985 RB
4.00% 07/01/10(b)(c) -- VMIG-1 $ 1,200 $ 1,200,000
- -----------------------------------------------------------------------------
IOWA - 1.08%
Chariton (City of) (Hy-Vee Food Stores,
Inc. Project); Refunding Series 1984
IDR
3.90% 11/01/04(b)(c) A-1+ -- 1,162 1,162,000
- -----------------------------------------------------------------------------
Iowa (State of) School Corporations;
Warrant Certificates Series 1994 A TRAN
4.25% 07/17/95(d) SP-1+ MIG-1 10,000 10,018,355
- -----------------------------------------------------------------------------
11,180,355
- -----------------------------------------------------------------------------
KANSAS - 0.70%
Kansas City (City of); Temporary Notes
Series 1994 GO
4.35% 07/31/95(g) -- -- 5,403 5,405,179
- -----------------------------------------------------------------------------
Lawrence (County of) Industrial
Development Authority (Homestake Mining
Co.); Series 1983 PCR
4.25% 04/01/03(b)(c) A-1+ P-1 1,900 1,900,000
- -----------------------------------------------------------------------------
7,305,179
- -----------------------------------------------------------------------------
KENTUCKY - 2.36%
Kentucky Development Finance Authority
(FHA-Baptist Hospital Southeast Inc.);
Hospital Series 1985 RB
9.75% 08/01/95(e)(f) AAA Aaa 2,000 2,076,071
- -----------------------------------------------------------------------------
Mason County (East Kentucky Power
Cooperative, Inc. Project); National
Rural Utilities Cooperative Finance
Corp. Guaranteed Floating/Fixed Rate
PCR
4.30% Pooled Series 1984 B-1
10/15/14(b)(c) A-1+ Aa3 12,950 12,950,000
- -----------------------------------------------------------------------------
4.30% Pooled Series 1984 B-2
10/15/14(b)(c) A-1+ Aa3 9,450 9,450,000
- -----------------------------------------------------------------------------
24,476,071
- -----------------------------------------------------------------------------
LOUISIANA - 2.20%
East Baton Rouge (Parish of) (Georgia-
Pacific Corp. Project); 7 & 7 Series
1984 PCR
4.05% 10/01/99(b)(c) AA Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------
Lake Charles Harbor & Terminal District
(Reynolds Metals Co. Project); Series
1990 IDR
4.00% 05/01/06(b)(c) A-1+ -- 9,900 9,900,000
- -----------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Louisiana - (continued)
Louisiana Offshore Terminal Authority
(LOOP Inc. Project); Deepwater Port
Refunding RB
4.55% First Stage Series 1986
09/01/06(b)(c) -- VMIG-1 $ 1,000 $ 1,000,000
- ----------------------------------------------------------------------------
4.05% First Stage Series 1991A
09/01/08(b)(c) A-1+ VMIG-1 3,500 3,500,000
- ----------------------------------------------------------------------------
Louisiana Public Facilities Authority
(Sisters of Charity of the Incarnate
Word); SCH Health Care System Unit
Priced Demand Adjustable Series 1993
RB
3.70% 04/03/95(e) A-1+ VMIG-1 4,000 4,000,000
- ----------------------------------------------------------------------------
New Orleans Exhibition Hall Authority;
Special Tax Series 1989 B Bonds
4.25% 07/01/18(b)(c) A-1+ VMIG-1 2,500 2,500,000
- ----------------------------------------------------------------------------
22,900,000
- ----------------------------------------------------------------------------
MAINE - 0.39%
Maine (State of); General Obligation
TAN
4.50% 06/30/95 SP-1+ MIG-1 4,000 4,007,604
- ----------------------------------------------------------------------------
MICHIGAN - 3.22%
Detroit (City of); Limited Tax General
Obligation Series 1994 B TAN
4.25% 05/01/95(c) SP-1+ MIG-1 8,250 8,254,072
- ----------------------------------------------------------------------------
Grand Rapids (City of); Water Supply
System Improvement Variable Rate
Demand Series 1993 Refunding RB
4.50% 01/01/20(b)(d) A-1+ VMIG-1 7,400 7,400,000
- ----------------------------------------------------------------------------
Jackson County Economic Development
Corp. (Sealed Power Corp.); Economic
Development Variable Refunding RB
4.00% 10/01/19(b)(c) -- VMIG-1 1,000 1,000,000
- ----------------------------------------------------------------------------
Michigan State Hospital Finance
Authority (Edward Sparrow Hospital);
Series 1985 RB
8.75% 06/01/95(d)(e) AAA Aaa 3,900 4,008,224
- ----------------------------------------------------------------------------
Michigan State Hospital Finance
Authority; Series 1991 RB
4.05% 12/01/11(b)(c) -- VMIG-1 1,400 1,400,000
- ----------------------------------------------------------------------------
Michigan State Housing Development
Authority; Rental Housing Series 1994
C RB
4.15% 04/01/19(b)(c) A-1+ -- 6,700 6,700,000
- ----------------------------------------------------------------------------
Michigan Strategic Fund (260 Brown St.
Associates Project); Convertible
Variable Rate Demand Limited
Obligation Series 1985 RB
3.75% 10/01/15(b)(c) -- VMIG-1 3,750 3,750,000
- ----------------------------------------------------------------------------
Michigan Strategic Fund (Norcor Corp.
Project); IDR
4.00% 12/01/00(b)(c) -- P-1 1,000 1,000,000
- ----------------------------------------------------------------------------
33,512,296
- ----------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
MINNESOTA - 0.47%
Austin (City of) (Hy-Vee Foodstores Inc.
Project); Commercial Development Series
1984 RB
3.90% 12/01/04(b)(c) A-1+ -- $ 900 $ 900,000
- -------------------------------------------------------------------------------
Mankato (City of) (Northern States Power
Co. Project); Floating Collateralized
Series 1985 PCR
4.15% 03/01/11(b) AA- A1 2,900 2,900,000
- -------------------------------------------------------------------------------
St. Paul (City of); Capital Improvement
Series A GO
3.50% 04/01/95 AA+ Aa 1,100 1,099,952
- -------------------------------------------------------------------------------
4,899,952
- -------------------------------------------------------------------------------
MISSOURI - 3.19%
Columbia (City of); Special Obligation
Insurance Reserve Series 1988 A Bonds
4.20% 06/01/08(b)(c) -- VMIG-1 5,700 5,700,000
- -------------------------------------------------------------------------------
Health and Educational Facilities
Authority of the State of Missouri
(Washington University); Health and
Educational Facilities Multi Modal
Interchangeable Rate Series 1989 A RB
4.50% 03/01/17(b) A-1+ VMIG-1 5,000 5,000,000
- -------------------------------------------------------------------------------
Higher Education Facilities Authority of
the State of Missouri
(The Washington University Project);
Educational Facilities
Series 1985 B RB
4.15% 09/01/10(b) A-1+ VMIG-1 1,200 1,200,000
- -------------------------------------------------------------------------------
Independence Industrial Development
Authority (Resthaven Project); Series
1995 IDR
4.15% 02/01/25(b)(c) A-1+ -- 5,200 5,200,000
- -------------------------------------------------------------------------------
Land Clearance for Redevelopment Authority
of Kansas City (East-West Bryant Limited
Partnership); Series 1984 IDR
4.50% 12/01/14(b)(c) -- Aa2 4,000 4,000,000
- -------------------------------------------------------------------------------
Missouri State Environmental Improvement &
Energy Resource Authority (Associated
Electric Cooperative, Inc. Project);
Pooled Series 1993-M RB
4.30% 12/15/03(b)(c) AA- VMIG-1 3,080 3,080,000
- -------------------------------------------------------------------------------
Saint Louis County Industrial Development
Authority (Bonhomme Village Apartments
Association Project); Variable Rate
Demand Housing Series 1985 RB
4.10% 10/01/07(b)(c) -- VMIG-1 7,000 7,000,000
- -------------------------------------------------------------------------------
Saint Louis County Industrial Development
Authority (Westport Station Project);
Multifamily Housing Series 1991 A RB
4.05% 07/01/06(b)(c) A-1 -- 2,000 2,000,000
- -------------------------------------------------------------------------------
33,180,000
- -------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
NEBRASKA - 0.12%
Buffalo (County of) (Franciscan Healthcare
Corp. - Kearny Hospital); Hospital Series
1985 Bonds
4.10% 01/01/16(b)(c) -- VMIG-1 $ 1,200 $ 1,200,000
- -------------------------------------------------------------------------------
NEVADA - 0.54%
Clark (County of); Adjustable Rate Airport
System Series 1995 A-1 RB
4.10% 07/01/25(b)(c) A-1+ -- 5,600 5,600,000
- -------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.04%
New Hampshire Industrial Development
Authority (Bangor Hydro-Electric Co.
Project); Variable Rate Demand Series 1983
PCR
4.10% 01/01/09(b)(c) A-1+ -- 400 400,000
- -------------------------------------------------------------------------------
NEW JERSEY - 0.47%
New Jersey Economic Development Authority
(Trailer Marine Transport Corp. Project);
Adjustable Rate Port Facility Series 1983 RB
3.85% 02/01/02(b)(c) A-1 -- 4,900 4,900,000
- -------------------------------------------------------------------------------
NEW MEXICO - 1.50%
Albuquerque (City of); Gross Receipts Ledgers
Tax Series 1991 A RB
4.15% 07/01/22(b)(c) -- VMIG-1 8,000 8,000,000
- -------------------------------------------------------------------------------
Farm City of Farmington (Arizona Public
Service); Refunding Series 1994 B PCR
4.55% 09/01/24(b)(c) A-1+ P-1 7,600 7,600,000
- -------------------------------------------------------------------------------
15,600,000
- -------------------------------------------------------------------------------
NEW YORK - 20.06%
Eagle Tax Exempt Trust; Class A COP(h)
4.35% Series 1994 B 01/01/04(b)(d) A-1c -- 22,400 22,400,000
- -------------------------------------------------------------------------------
4.35% Series 1993 E 08/01/06(b) A-1c -- 15,000 15,000,000
- -------------------------------------------------------------------------------
4.35% Series 943802 05/01/07(b)(d) A-1c -- 17,800 17,800,000
- -------------------------------------------------------------------------------
4.35% Series 1992 A 06/15/07(b)(d) A-1c -- 14,500 14,500,000
- -------------------------------------------------------------------------------
4.35% Series 1993 F 08/01/07(b) A-1c -- 20,500 20,500,000
- -------------------------------------------------------------------------------
4.35% Series 94C2102 06/01/14(b)(d) A-1c -- 12,600 12,600,000
- -------------------------------------------------------------------------------
4.35% Series 1994 C-1 06/15/18(b)(f) A-1c -- 18,000 18,000,000
- -------------------------------------------------------------------------------
4.35% Series 1994 C-2 06/15/18(b)(d) A-1c -- 10,200 10,200,000
- -------------------------------------------------------------------------------
4.35% Series 950901 06/01/21(b) A-1c -- 12,700 12,700,000
- -------------------------------------------------------------------------------
4.30% Series 943207 07/01/29(b)(d) A-1c -- 14,200 14,200,000
- -------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
New York - (continued)
New York (City of); Variable Rate Demand
GO
4.60% Series 1995 B 08/15/04(b)(d) A-1+ VMIG-1 $ 1,800 $ 1,800,000
- -----------------------------------------------------------------------------
4.50% Series 1994-1995 B 08/15/05(b)(d) A-1+ VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------
4.25% Series 1995 F 02/15/16(b)(c) A-1+ VMIG-1 19,000 19,000,000
- -----------------------------------------------------------------------------
4.55% Series D 02/01/20(b)(d) A-1+ VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------
4.55% Series 1992 D 02/01/21(b)(d) A-1+ VMIG-1 800 800,000
- -----------------------------------------------------------------------------
4.55% Series D 02/01/22(b)(d) A-1+ VMIG-1 4,700 4,700,000
- -----------------------------------------------------------------------------
4.50% Series 1994 08/15/22(b)(c) A-1+ VMIG-1 4,400 4,400,000
- -----------------------------------------------------------------------------
New York City Housing Development Corp.
(James Tower Development); Multifamily
Housing Series 1994 A RB
3.95% 07/01/05(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------
New York State Thruway Authority;
Variable Rate Series B RB
4.60% 01/01/24(b)(c) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------
208,500,000
- -----------------------------------------------------------------------------
NORTH CAROLINA - 1.17%
New Hanover County Industrial Facilities
and Pollution Control Financing
Authority (Gang-Nail Systems, Inc.
Project);
Series 1984 IDR
4.15% 12/01/99(b)(c) -- P-1 1,000 1,000,000
- -----------------------------------------------------------------------------
North Carolina Educational Facilities
Finance Agency (The Bowman Gray School
of Medicine Project); Series 1990 RB
4.10% 09/01/20(b)(c) -- VMIG-1 2,700 2,700,000
- -----------------------------------------------------------------------------
North Carolina Medical Care Commission
(Moses H. Cone Memorial Hospital
Project); Hospital Series 1993 RB
4.10% 10/01/23(b) A-1+ -- 3,500 3,500,000
- -----------------------------------------------------------------------------
North Carolina Medical Care Commission
(North Carolina Baptist Hospital
Project); Hospital Series 1992 B RB
4.10% 06/01/22(b) A-1+ VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------
Wake (County of) Pollution Control
Financing Authority (Carolina Power and
Light Co.); Series 1985 A RB
4.00% 05/01/15(b)(c) A-1+ P-1 4,000 4,000,000
- -----------------------------------------------------------------------------
12,200,000
- -----------------------------------------------------------------------------
OHIO - 2.49%
Cuyahoga (County of) (S&R Playhouse
Realty Co.); Adjustable Rate Demand
Series 1984 IDR
4.15% 12/01/09(b)(c) -- MIG-1 670 670,000
- -----------------------------------------------------------------------------
</TABLE>
13
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Ohio - (continued)
Franklin (County of) (Bricker & Eckler
Building Co. Project); Variable Rate
Demand Series 1984 IDR
4.375% 11/01/14(b)(c) -- P-1 $ 9,200 $ 9,200,000
- -------------------------------------------------------------------------------
Franklin (County of) (Holy Cross Health
System); Variable Rate Series Hospital
1995 RB
4.15% 06/01/16(b) A-1+ VMIG-1 15,000 15,000,000
- -------------------------------------------------------------------------------
Ohio Housing Finance Agency (Kenwood
Congregate Retirement Community
Project); Variable Rate Demand
Multifamily Housing Series 1985 RB
4.00% 12/01/15(b)(c) -- VMIG-1 980 980,000
- -------------------------------------------------------------------------------
25,850,000
- -------------------------------------------------------------------------------
OREGON - 1.43%
Hospital Facility Authority of Clackamus
County (Kaiser Permanente Medical Care
Program); Semiannual Tender Series 1984
RB
3.85% 04/01/95(e) A-1+ -- 1,800 1,800,000
- -------------------------------------------------------------------------------
Klamath Falls (City of) (Salt Caves
Hydroelectric Project); Fixed Adjustable
Rate Electric RB
3.75% Series 1986 B 05/02/95(e)(f) SP-1+ -- 4,500 4,497,420
- -------------------------------------------------------------------------------
3.75% Series E 05/02/95(e)(f) SP-1+ -- 750 749,780
- -------------------------------------------------------------------------------
Multnoma County School District #1J; TAN
3.75% 06/29/95 SP-1+ MIG-1 3,000 2,997,633
- -------------------------------------------------------------------------------
Portland (City of) (South Park Block
Project); Multifamily Housing Refunding
Series 1988 A RB
4.05% 12/01/11(b)(c) A-1+ -- 4,800 4,800,000
- -------------------------------------------------------------------------------
14,844,833
- -------------------------------------------------------------------------------
PENNSYLVANIA - 3.24%
Allegheny County Hospital Development
Authority; Hospital RB
4.15% Series 1988 B 03/01/07(b)(c) A-1 VMIG-1 2,300 2,300,000
- -------------------------------------------------------------------------------
4.15% Series 1988 D 03/01/18(b)(c) A-1 VMIG-1 2,000 2,000,000
- -------------------------------------------------------------------------------
Allentown (City of); Series 1985 GO
8.875% 05/15/95(e)(f) -- Aaa 1,620 1,630,244
- -------------------------------------------------------------------------------
Beaver County Industrial Development
Authority (Duquesne Light Co. Project);
Series Refunding 1994 PCR
4.50% 10/10/95(c) -- VMIG-1 2,000 2,000,000
- -------------------------------------------------------------------------------
Beaver County Industrial Development
Authority (Ohio Edison Co.); Series A
PCR
3.45% 10/01/95(c)(e) A-1+ P-1 1,500 1,490,727
- -------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Pennsylvania - (continued)
Delaware County Industrial
Development Authority (Henderson-
Radnor Joint Venture Project);
Limited Obligation Series 1985 RB
4.375% 04/01/15(b)(c) -- Aa3 $ 1,000 $ 1,000,000
- -----------------------------------------------------------------------------
Delaware County Industrial
Development Authority (Scott Paper
Co. Project); Variable Rate Demand
Solid Waste Series 1984 D RB
4.25% 12/01/18(b)(c) A-1+ Aa2 400 400,000
- -----------------------------------------------------------------------------
Pennsylvania Higher Education
Facilities Authority (Trustees of
the University of Pennsylvania);
Health Services Series 1994 B RB
4.20% 01/01/24(b) A-1+ VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------
Philadelphia (City of); TRAN
4.75% Series 1994-1995A 06/15/95(c) SP-1+ MIG-1 2,000 2,003,367
- -----------------------------------------------------------------------------
4.75% Series D 06/15/95(c) SP-1+ MIG-1 7,000 7,012,490
- -----------------------------------------------------------------------------
4.75% Series 1994-1995 06/30/95 SP-1 MIG-1 3,000 3,003,912
- -----------------------------------------------------------------------------
Schuykill County Industrial
Development Authority (Gilberton
Power Project); Variable Rate
Resource Recovery Series 1985 RB
4.25% 12/01/02(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------
Wilkes-Barre (City of) Industrial
Development Authority (Toys "R"
Us/Penn Inc. Project); Economic
Development Series 1984 RB
4.125% 07/01/14(b)(c) -- Aa2 2,300 2,300,000
- -----------------------------------------------------------------------------
33,640,740
- -----------------------------------------------------------------------------
SOUTH CAROLINA - 3.79%
Charleston (County of) (Massey Coal
Terminal Corp. Project); Series 1982
Industrial Refunding Series 1982 RB
4.55% 01/01/07(b)(c) -- P-1 3,600 3,600,000
- -----------------------------------------------------------------------------
Florence (County of) (Stone Container
Corp.); Variable Rate Series 1984
IDR
4.00% 02/01/07(b)(c) A-1+ -- 33,400 33,400,000
- -----------------------------------------------------------------------------
Horry (County of) (Carolina Treatment
Center); Variable Rate Demand Series
1984 RB
4.05% 12/01/14(b)(c) -- Aa2 600 600,000
- -----------------------------------------------------------------------------
York (County of) (North Carolina
Electric Membership Corp.); PCR
4.30% Pooled Series 1984 N-2
09/15/14(b)(c) A-1+ P-1 1,800 1,800,000
- -----------------------------------------------------------------------------
39,400,000
- -----------------------------------------------------------------------------
</TABLE>
15
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
TENNESSEE - 5.51%
Health, Educational and Housing Facility
Board of Shelby County (Rhodes College);
Variable Rate Demand Educational
Facilities Series 1985 RB
4.05% 08/01/10(b)(c) A-1+ -- $ 2,300 $ 2,300,000
- -------------------------------------------------------------------------------
Industrial Development Board of the City
of Franklin (The Landings Project);
Variable Rate Demand Multifamily Housing
Series 1985 Class A RB
4.05% 12/01/06(b)(c) A-1 -- 2,000 2,000,000
- -------------------------------------------------------------------------------
Industrial Development Board of the City
of Knoxville (Toys "R" Us Inc., Project);
Series 1984 IDR
4.375% 05/01/14(b)(c) -- Aa2 1,150 1,150,000
- -------------------------------------------------------------------------------
Industrial Development Board of the County
of Bradley (Olin Corp.); Refunding Series
1993 C RB
4.80% 11/01/17(b)(c) A-1+ -- 1,800 1,800,000
- -------------------------------------------------------------------------------
Industrial Development Board of the
Metropolitan Government of Nashville and
Davidson County (Amberwood Ltd. Project);
Multifamily Housing Refunding Series 1993
A RB
4.00% 07/01/95(c)(e) -- VMIG-1 1,500 1,500,000
- -------------------------------------------------------------------------------
Knox County Industrial Development
Authority (Center Square); Variable Rate
Demand RB
3.95% 12/01/14(b)(c) A-1+ -- 5,400 5,400,000
- -------------------------------------------------------------------------------
Knox County Industrial Development
Authority (Old Kingston Properties);
Floating Rate Industrial Series 1984 RB
3.95% 12/01/14(b)(c) A-1+ -- 3,500 3,500,000
- -------------------------------------------------------------------------------
Knox County Industrial Development
Authority (Professional Plaza); Variable
Rate Demand RB
3.95% 12/01/14(b)(c) A-1+ -- 2,900 2,900,000
- -------------------------------------------------------------------------------
Knox County Industrial Development Board
(Weisgarber Partners); Floating Rate
Series 1984 IDR
3.95% 12/01/14(b)(c) A-1+ -- 700 700,000
- -------------------------------------------------------------------------------
Metro Nashville Airport Authority;
Adjustable Rate Refunding
Series 1993 RB
4.25% 07/01/19(b)(d) A-1+ VMIG-1 12,900 12,900,000
- -------------------------------------------------------------------------------
Public Building Authority of the City of
Clarksville (Tennessee Municipal Bond
Fund); Adjustable Rate Pooled Financing
Series 1990 RB
4.10% 07/01/13(b)(d) A-1+ VMIG-1 1,585 1,585,000
- -------------------------------------------------------------------------------
Tennessee (State of); General Obligation
Series 1994 A BAN
4.10% 05/01/96(b) A-1+ VMIG-1 11,000 11,000,000
- -------------------------------------------------------------------------------
Tennessee Higher Educational Facilities;
Variable Rate Series 1993 B BAN
4.10% 03/01/98(b) A-1+ VMIG-1 1,400 1,400,000
- -------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Tennessee - (continued)
Tennessee State School Bond Authority;
Higher Educational Facilities
Series 1994 B BAN
4.10% 03/01/98(b) A-1+ -- $ 9,150 $ 9,150,000
- -------------------------------------------------------------------------------
57,285,000
- -------------------------------------------------------------------------------
TEXAS - 7.49%
Austin County Industrial Development Corp.
(Justin Industries); Adjustable Tender IDR
4.25% 12/01/14(b)(c) -- P-1 2,150 2,150,000
- -------------------------------------------------------------------------------
Bexar County Health Facilities Development
Corp. (Air Force Village II Project);
Retirement Community Series 1985-B RB
4.125% 03/01/12(b)(c) A-1+ -- 5,305 5,305,000
- -------------------------------------------------------------------------------
Brazos River Harbor Navigation District of
Brazoria County (Hoffman-La Roche Inc.
Project); Series 1985 RB
4.25% 04/01/02(b)(c) -- Aa2 2,750 2,750,000
- -------------------------------------------------------------------------------
Dallas (City of) School District; Series
1994 TRAN
4.875% 08/30/95 -- MIG-1 5,000 5,015,460
- -------------------------------------------------------------------------------
Grapevine Industrial Development Corp.
(Southern Air Transport Inc.-Simuflite
Training Project); Variable Rate Demand
Airport Improvement Refunding Series 1993
RB
4.10% 03/01/10(b)(c) A-1+ -- 5,700 5,700,000
- -------------------------------------------------------------------------------
Harris County Health Development Corp. (The
Methodist Hospital); Hospital Series 1994
RB
4.50% 12/01/25(b) A-1+ -- 5,000 5,000,000
- -------------------------------------------------------------------------------
Harris County Health Facilities Authority
(Sisters of Charity of the Incarnate Word-
Houston); Unit Priced Adjustable Tax
Exempt Securities Series 1985 RB
3.75% 04/03/95 AA VMIG-1 4,000 4,000,000
- -------------------------------------------------------------------------------
Harris County Health Facilities Development
Corp. (Gulf Coast Regional Blood Center
Project); Series 1992 RB
4.40% 04/01/17(b)(c) A-1 -- 3,650 3,650,000
- -------------------------------------------------------------------------------
Harris County Health Facilities Development
Corp. (St. Luke's Episcopal Hospital
Project); Hospital RB
4.50% Series 1985 D 02/15/16(b) A-1+ -- 2,250 2,250,000
- -------------------------------------------------------------------------------
4.50% Series 1992 A 02/15/21(b) A-1+ -- 14,700 14,700,000
- -------------------------------------------------------------------------------
Harris County Health Facilities Development
Corp. (Texas Childrens Hospital); Hospital
Series 1989 B-2 RB
4.15% 10/01/19(b) AA VMIG-1 5,000 5,000,000
- -------------------------------------------------------------------------------
Harris County Industrial Development Corp.
(Exxon Project); Series 1984-A PCR
4.60% 03/01/24(b) A-1+ Aaa 1,000 1,000,000
- -------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Texas - (continued)
Harris County Industrial Development Corp.
(The Lubrizol Corp. Project); Marine
Terminal Refunding Series 1991 RB
4.10% 07/01/00(b) A-1+ P-1 $ 1,100 $ 1,100,000
- -------------------------------------------------------------------------------
Houston (City of); Variable Rate Demand
Series 1992 B Certificates of Obligation
4.15% 04/01/98(b) A-1+ VMIG-1 600 600,000
- -------------------------------------------------------------------------------
Nueces County Health Facilities
Development Corp. (Driscoll Childrens
Hospital); Floating Rate Demand Hospital
Series 1985 RB
4.30% 07/01/15(b)(c) -- VMIG-1 2,570 2,570,000
- -------------------------------------------------------------------------------
Nueces River Authority (Reynolds Metals
Co. Project); Refunding Series 1985 PCR
4.60% 12/01/99(b)(c) -- P-1 1,300 1,300,000
- -------------------------------------------------------------------------------
Red River Authority of Texas (Southwestern
Public Service Co. Project); Refunding
Series 1991 PCR
4.00% 07/01/11(b) A-1+ VMIG-1 3,000 3,000,000
- -------------------------------------------------------------------------------
Texas Association of School Boards (Tax
Anticipation Notes Program); Series 1994
A TAN
4.75% 08/31/95(c) -- MIG-1 8,500 8,520,460
- -------------------------------------------------------------------------------
Texas Water Development Board (State
Revolving Fund); Multi-Modal
Interchangable Rate Series 1992 A RB
4.50% 03/01/15(b)(c) A-1+ -- 2,100 2,100,000
- -------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers, Inc.
Project); Variable Rate Demand IDR
4.00% Series 1985 A 11/01/05(b)(c) A-1 -- 500 500,000
- -------------------------------------------------------------------------------
4.00% Series 1985 B 11/01/05(b)(c) A-1 -- 1,650 1,650,000
- -------------------------------------------------------------------------------
77,860,920
- -------------------------------------------------------------------------------
UTAH - 2.60%
Bountiful (City of) (Bountiful Gateway
Park Project); Adjustable Rate Refunding
Series 1987 IDR
4.20% 12/01/97(b)(c) A-1+ -- 3,885 3,885,000
- -------------------------------------------------------------------------------
Salt Lake County Housing Authority (Sandy
Retirement Center Project); Series 1988
RB
4.00% 01/01/09(b)(c) -- VMIG-1 1,000 1,000,000
- -------------------------------------------------------------------------------
State Board of Regents of the State of
Utah; Variable Rate Demand
Series 1988 B RB
4.10% 11/01/00(b)(d) A-1+ VMIG-1 5,400 5,400,000
- -------------------------------------------------------------------------------
State Board of Regents of the State of
Utah (University Inn Project); Variable
Rate Demand Series 1985 IDR
4.50% 12/01/15(b)(c) -- P-1 8,935 8,935,000
- -------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
Utah - (continued)
Utah State Housing Finance Agency; Single
Family Mortgage Variable Rate Issue 1993 D
RB
4.25% 07/01/16(b) -- VMIG-1 $ 7,800 $ 7,800,000
- -------------------------------------------------------------------------------
27,020,000
- -------------------------------------------------------------------------------
VIRGINIA - 2.10%
Fairfax County Redevelopment and Housing
Authority (Chase Commons Project);
Variable Rate Demand Series 1984 A RB
4.25% 12/01/06(b)(c) -- VMIG-1 3,330 3,330,000
- -------------------------------------------------------------------------------
Industrial Development Authority of Fairfax
County (Fairfax Hospital Systems, Inc.);
Variable Rate Demand Obligation Refunding
Series 1985 A RB
4.10% 10/01/16(b) A-1+ VMIG-1 2,400 2,400,000
- -------------------------------------------------------------------------------
Peninsula Ports Authority of Virginia
(Dominion Terminal Associates); Coal
Terminal Refunding Series 1987 C RB
4.60% 07/01/16(b)(c) -- P-1 3,300 3,300,000
- -------------------------------------------------------------------------------
Virginia Housing Development Authority (AHC
Service Corp.); Variable Rate Demand
Housing Series 1987 A RB
4.15% 09/01/17(b)(c) -- P-1 7,780 7,780,000
- -------------------------------------------------------------------------------
Virginia Housing Development Authority
(Commonwealth Mortgage); Series 1992 C RB
4.25% 07/12/95(e) A-1+ VMIG-1 5,000 5,000,000
- -------------------------------------------------------------------------------
21,810,000
- -------------------------------------------------------------------------------
WASHINGTON - 0.66%
Industrial Development Corp. of the Port of
Port Townsend (Port Townsend Paper Corp.
Project); Variable Rate Refunding
Series 1988 A RB
4.20% 03/01/09(b)(c) -- VMIG-1 5,100 5,100,000
- -------------------------------------------------------------------------------
Student Loan Finance Association
(Guaranteed Student Loan Program);
Variable Rate Demand Second Series 1985 RB
4.00% 01/01/01(b)(c) -- VMIG-1 1,800 1,800,000
- -------------------------------------------------------------------------------
6,900,000
- -------------------------------------------------------------------------------
WEST VIRGINIA - 0.06%
West Virginia Hospital Finance Authority
(VHA Mid-Atlantic States, Inc. Capital
Asset Financing Program); Variable Rate
Demand Hospital Series 1985 A RB
4.10% 12/01/25(b)(d) A-1 Aaa 600 600,000
- -------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
RATING(A) PAR
S&P MOODY'S (000) VALUE
WISCONSIN - 0.92%
Milwaukee Metropolitan Sewer District;
Unlimited Tax Metro Sewer Series 1985
GO
8.80% 05/01/95 AA Aa $ 2,535 $ 2,544,598
- -------------------------------------------------------------------------------
Racine County Unified School District;
Series 1994 TRAN
4.75% 08/23/95 SP-1+ -- 7,000 7,017,215
- -------------------------------------------------------------------------------
9,561,813
- -------------------------------------------------------------------------------
WYOMING - 1.55%
Kemmerer (City of) (Exxon Project);
Series 1984 PCR
4.55% 11/01/14(b) A-1+ P-1 15,600 15,600,000
- -------------------------------------------------------------------------------
Lincoln (County of) (Exxon Project);
Series 1984 C PCR
4.60% 11/01/14(b) A-1+ Aaa 500 500,000
- -------------------------------------------------------------------------------
16,100,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 101.81% 1,057,962,784(i)
- -------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -
(1.81%) (18,785,546)
- -------------------------------------------------------------------------------
NET ASSETS - 100.00% $1,039,177,238
===============================================================================
</TABLE>
INVESTMENT ABBREVIATIONS:
<TABLE>
<C> <S> <C> <S>
BAN Bond Anticipation Notes RAN Revenue Anticipation Notes
COP Certificates of Participation RB Revenue Bonds
GO General Obligation Bonds TAN Tax Anticipation Notes
IDR Industrial Development Revenue Bonds TRAN Tax and Revenue Anticipation
PCR Pollution Control Revenue Bonds Notes
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Ratings assigned by Moody's Investors Service, Inc. ("Moody's") and
Standard & Poor's Corporation ("S&P"). Ratings are not covered by
Independent Auditors' Report.
(b) Demand security; payable upon demand by the Fund at specified time
intervals no greater than thirteen months. Interest rates are redetermined
periodically. Rates shown are the rates in effect on March 31, 1995.
(c) Security is secured by a letter of credit.
(d) Security is secured by bond insurance.
(e) Security has an outstanding call or mandatory put by the issuer. Par value
and maturity date reflect such call or put.
(f) Security is secured by an escrow fund.
(g) 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 Directors and followed by the
investment advisor.
(h) The Fund may invest in synthetic municipal instruments the value of and
return on which are derived from underlying securities. The types of
synthetic municipal instruments in which the Fund may invest include
variable rate instruments. These instruments involve the deposit into a
trust or custodial account of one or more long-term tax-exempt bonds or
notes ("Underlying Bonds"), and the sale of certificates evidencing
interests in the trust or custodial account to investors such as the Fund.
The trustee or custodian receives the long-term fixed rate interest
payments on the Underlying Bonds, and pays certificate holders short-term
floating or variable interest rates which are reset periodically. A
"variable rate trust certificate" evidences an interest in a trust
entitling the certificate holder to receive variable rate interest based on
prevailing short-term interest rates and also typically providing the
certificate holder with the conditional right to put its certificate at par
value plus accrued interest. Because synthetic municipal instruments
involve a trust or custodial account and a third party conditional put
feature, they involve complexities and potential risks that may not be
present where a municipal security is owned directly.
(i) Cost for federal income tax purposes is $1,057,999,138.
See Notes to Financial Statements.
20
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $ 1,057,962,784
- -------------------------------------------------------------------------
Cash 98,532
- -------------------------------------------------------------------------
Receivables for:
Investments sold 5,574,206
- -------------------------------------------------------------------------
Interest 8,638,051
- -------------------------------------------------------------------------
Investment for deferred compensation plan 10,031
- -------------------------------------------------------------------------
Other assets 71,459
- -------------------------------------------------------------------------
Total assets 1,072,355,063
- -------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 29,555,313
- -------------------------------------------------------------------------
Dividends 3,350,160
- -------------------------------------------------------------------------
Deferred compensation 10,031
- -------------------------------------------------------------------------
Accrued advisory fees 141,628
- -------------------------------------------------------------------------
Accrued directors' fees 2,417
- -------------------------------------------------------------------------
Accrued administrative service fees 7,234
- -------------------------------------------------------------------------
Accrued transfer agent fees 15,901
- -------------------------------------------------------------------------
Accrued distribution fees 6,078
- -------------------------------------------------------------------------
Accrued operating expenses 89,063
- -------------------------------------------------------------------------
Total liabilities 33,177,825
- -------------------------------------------------------------------------
NET ASSETS $ 1,039,177,238
=========================================================================
NET ASSETS:
Institutional Shares $ 1,009,890,739
=========================================================================
Private Investment Class $ 29,286,499
=========================================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Institutional Shares:
Authorized 3,000,000,000
- -------------------------------------------------------------------------
Outstanding 1,010,228,635
=========================================================================
Private Investment Class:
Authorized 1,000,000,000
- -------------------------------------------------------------------------
Outstanding 29,296,298
=========================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $1.00
=========================================================================
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
STATEMENT OF OPERATIONS
For the year ended March 31, 1995
<TABLE>
<CAPTION>
PRIVATE
INSTITUTIONAL INVESTMENT
SHARES CLASS FUND
------------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 35,037,716 $824,460 $35,862,176
- -----------------------------------------------------------------------
EXPENSES:
Advisory fees 1,783,634 40,819 1,824,453
- -----------------------------------------------------------------------
Custodian fees 158,286 7,283 165,569
- -----------------------------------------------------------------------
Transfer agent fees 29,774 2,364 32,138
- -----------------------------------------------------------------------
Registration and filing fees 19,314 46,725 66,039
- -----------------------------------------------------------------------
Administrative service fees 76,484 1,700 78,184
- -----------------------------------------------------------------------
Directors' fees 14,056 216 14,272
- -----------------------------------------------------------------------
Distribution fees -- 60,489 60,489
- -----------------------------------------------------------------------
Printing 21,939 42,801 64,740
- -----------------------------------------------------------------------
Other expenses 100,865 9,326 110,191
- -----------------------------------------------------------------------
Total expenses 2,204,352 211,723 2,416,075
- -----------------------------------------------------------------------
Less expenses assumed by advisor -- (100,000) (100,000)
- -----------------------------------------------------------------------
Net expenses 2,204,352 111,723 2,316,075
- -----------------------------------------------------------------------
NET INVESTMENT INCOME $ 32,833,364 $712,737 33,546,101
- -----------------------------------------------------------------------
Net realized gain (loss) on sales of investments (430,985)
- -----------------------------------------------------------------------
Net unrealized appreciation of investments 33,165
- -----------------------------------------------------------------------
Net increase in net assets resulting from operations $33,148,281
=======================================================================
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 33,546,101 $ 23,857,366
- -----------------------------------------------------------------------------
Net realized gain (loss) on sales of
investments (430,985) (35,815)
- -----------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments 33,165 (1,994)
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 33,148,281 23,819,557
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Shares (32,833,365) (23,575,716)
- -----------------------------------------------------------------------------
Private Investment Class (712,736) (281,650)
- -----------------------------------------------------------------------------
Share transactions - net:
Institutional Shares (30,316,694) 45,804,111
- -----------------------------------------------------------------------------
Private Investment Class 12,695,756 7,008,670
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets (18,018,758) 52,774,972
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,057,195,996 1,004,421,024
- -----------------------------------------------------------------------------
End of period $1,039,177,238 $1,057,195,996
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest:
Institutional Shares $1,010,228,635 $1,040,545,329
- -----------------------------------------------------------------------------
Private Investment Class 29,296,298 16,600,542
- -----------------------------------------------------------------------------
Undistributed net realized gain (loss) on
sales of investments (384,049) 46,936
- -----------------------------------------------------------------------------
Unrealized appreciation of investments 36,354 3,189
- -----------------------------------------------------------------------------
$1,039,177,238 $1,057,195,996
=============================================================================
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund consists of two different classes of shares, the
Institutional Cash Reserve Shares ("Institutional Shares") and the Private
Investment Class.
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. Securities Valuations - The Fund uses the amortized cost method of valuing
investment portfolio securities which has been determined by the Board of
Directors of the Company to represent the fair value of the Fund's
investments.
B. Securities Transactions and Investment Income - Securities transactions are
recorded on a trade date basis. Interest income, adjusted for amortization
of premiums and, when appropriate, discounts on investments, is earned from
settlement date and is recorded on the accrual basis. Interest income is
allocated to each class daily, based upon each class' pro rata share of the
total shares of the Fund outstanding. Discounts, other than original issue,
on short-term obligations are amortized to unrealized appreciation for
financial reporting purposes. Realized gains and losses from securities
transactions are computed on the basis of specific identification of the
securities sold.
C. Dividends and Distributions to Shareholders - 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
declared and paid annually. Net capital gains cannot be distributed to the
extent they can be offset by any capital loss carryovers of the Fund.
D. 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 $97,086 (which may be carried forward to offset future
taxable gains, if any) which expires, if not previously utilized, through
the year 2003. The Fund cannot distribute capital gains to shareholders
until the tax loss carryforwards have been utilized. In addition, the Fund
intends to invest in sufficient municipal securities to allow it to qualify
to pay "exempt interest dividends," as defined in the Internal Revenue Code,
to shareholders.
E. Expenses - Operating expenses directly attributable to a class are charged
to that class' operations. Expenses which are applicable to both classes,
e.g., advisory fees, are allocated between them.
24
<PAGE>
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company 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 the annual rate of 0.25% of
the first $500 million of the Fund's average daily net assets plus 0.20% of the
Fund's average daily net assets in excess of $500 million. AIM will, if
necessary, reduce its fees for any fiscal year to the extent required so that
the amount of ordinary expenses of each class (excluding interest, taxes,
brokerage commissions and extraordinary expenses) paid or incurred by each
class for such fiscal year does not exceed the applicable expense limitations
imposed by securities regulations in any state or jurisdiction in which the
Company's shares are qualified for sale.
AIM has voluntarily agreed to reduce its fee from the Fund to the extent
necessary so that the amount of ordinary expenses of the Institutional Shares
(excluding interest, taxes, brokerage commissions, directors' fees,
extraordinary expenses and federal registration fees) paid or incurred by the
Institutional Shares does not exceed 0.20% of the Institutional Shares' average
daily net assets. As a result, AIM's advisory fee on the Private Investment
Class is reduced in the same proportion as the Institutional Shares. For the
year ended March 31, 1995, AIM reduced its fees from the Fund by $659,533. AIM
also assumed expenses of $100,000 on the Private Investment Class during the
same period.
The Company has entered into a master distribution agreement with Fund
Management Company ("FMC") for the distribution of shares of the Institutional
Shares and the Private Investment Class. The Company has also adopted a
distribution plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act with
respect to the Private Investment Class. The Plan provides that the Private
Investment Class may pay up to a 0.50% maximum annual rate of the Private
Investment Class' average daily net assets. Of this amount, the Fund may pay an
asset-based sales charge to FMC and the Fund may pay a service fee of 0.25% of
the average daily net assets of the Private Investment Class to selected
broker-dealers and other financial institutions who offer continuing personal
shareholder services to their customers who purchase and own shares of the
Private Investment Class. Any amounts not paid as a service fee under such Plan
would constitute an asset-based sales charge. The Plan also imposes a cap on
the total amount of sales charges, including asset-based sales charges, that
may be paid by the Fund with respect to the Private Investment Class. During
the year ended March 31, 1995, the Private Investment Class accrued $60,489 as
compensation under the Plan.
The Fund, pursuant to the Company's master investment advisory agreement with
AIM, has agreed to reimburse AIM for certain costs incurred in providing
accounting services to the Fund. During the year ended March 31, 1995, the Fund
reimbursed AIM $78,184 for such services. Effective September 16, 1994, A I M
Institutional Fund Services, Inc. ("AIFS") became a transfer agent for the
Fund. Certain officers and directors of the Company are directors or officers
of AIM, AIFS and FMC.
The Fund paid legal fees of $4,475 for services rendered by Reid & Priest as
counsel to the Board of Directors. In September 1994, Kramer, Levin, Naftalis,
Nessen, Kamin & Frankel was appointed as counsel to the Board of Directors. The
Fund paid legal fees of $1,296 for services rendered by that firm as counsel. A
member of that firm is a director of the Company and, prior to September 1994,
was a member of Reid & Priest.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of the Company. The Company may invest directors'
fees, if so elected by a director, in mutual fund shares in accordance with a
deferred compensation plan.
25
<PAGE>
NOTE 4 - CAPITAL STOCK
Changes in capital stock outstanding during the years ended March 31, 1995 and
1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
------------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Sold:
Institutional Shares 5,223,878,446 $ 5,223,878,446 5,038,828,273 $5,038,828,273
- ----------------------------------------------------------------------------------------
Private Investment
Class 147,139,503 147,139,503 53,255,784 53,255,784
- ----------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Shares 74,376 74,376 78,543 78,543
- ----------------------------------------------------------------------------------------
Private Investment
Class 600,786 600,786 269,437 269,437
- ----------------------------------------------------------------------------------------
Redeemed:
Institutional Shares (5,254,269,516) (5,254,269,516) (4,993,102,705) (4,993,102,705)
- ----------------------------------------------------------------------------------------
Private Investment
Class (135,044,533) (135,044,533) (46,516,551) (46,516,551)
- ----------------------------------------------------------------------------------------
Net increase
(decrease) (17,620,938) $ (17,620,938) 52,812,781 $ 52,812,781
========================================================================================
</TABLE>
NOTE 5 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of the
Institutional Shares outstanding during each of the years in the six-year
period ended March 31, 1995, the eleven months ended March 31, 1989 and each of
the years in the three-year period ended April 30, 1988.
<TABLE>
<CAPTION>
MARCH 31,
-----------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989
---------- ---------- -------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------- ---------- ---------- -------- ---------- ---------- ---------- ----------
Income from
investment
operations:
Net investment
income 0.03 0.02 0.03 0.04 0.06 0.06 0.05
- ---------------- ---------- ---------- -------- ---------- ---------- ---------- ----------
Less
distributions:
Dividends from
net investment
income (0.03) (0.02) (0.03) (0.04) (0.06) (0.06) (0.05)
- ---------------- ---------- ---------- -------- ---------- ---------- ---------- ----------
Net asset value,
end of period $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================ ========== ========== ======== ========== ========== ========== ==========
Total return 3.06% 2.33% 2.66% 4.09% 5.68% 6.22% 5.67%(a)
================ ========== ========== ======== ========== ========== ========== ==========
Ratios/supplemental
data:
Net assets, end
of period (000s
omitted) $1,009,891 $1,040,595 $994,828 $1,191,209 $1,156,557 $1,114,813 $1,062,479
================ ========== ========== ======== ========== ========== ========== ==========
Ratio of
expenses to
average net
assets 0.20%(b)(c) 0.20%(b) 0.20%(b) 0.20%(b) 0.20%(b) 0.20%(b) 0.20%(a)(b)
================ ========== ========== ======== ========== ========== ========== ==========
Ratio of net
investment
income to
average net
assets 3.01%(b)(c) 2.30%(b) 2.66%(b) 4.00%(b) 5.52%(b) 6.03%(b) 5.52%(a)(b)
================ ========== ========== ======== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
APRIL 30,
------------------------------------------
1988 1987 1986
-------------- ------------ --------------
<S> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------- -------------- ------------ --------------
Income from investment operations:
Net investment income 0.04 0.04 0.05
- ------------------------------------------------------------------------------- -------------- ------------ --------------
Less distributions:
Dividends from net investment income (0.04) (0.04) (0.05)
- ------------------------------------------------------------------------------- -------------- ------------ --------------
Net asset value, end of period $1.00 $1.00 $1.00
=============================================================================== ============== ============ ==============
Total return 4.56% 4.24% 5.26%
=============================================================================== ============== ============ ==============
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,192,604 $993,392 $1,000,227
=============================================================================== ============== ============ ==============
Ratio of expenses to average net assets 0.21%(b) 0.21%(d) 0.22%(d)
=============================================================================== ============== ============ ==============
Ratio of net investment income to average net assets 4.47%(b) 4.14%(d) 5.20%(d)
=============================================================================== ============== ============= =============
</TABLE>
(a) Annualized.
(b) After waiver of advisory fees.
(c) Ratios are based on average net assets of $1,092,308,224. Ratios of
expenses and net investment income to average net assets prior to waiver of
advisory fees are 0.26% and 2.95%, respectively.
(d) After waiver of advisory fees and distribution fees.
26
<PAGE>
INDEPENDENT To the board of Directors and Shareholders
AUDITORS' Tax-Free Investments Co.
REPORT
We have audited the accompanying statement of assets and
liabilities of the Cash Reserve Portfolio (a Portfolio of
Tax-Free Investments Co.), including the schedule of
investments, as of March 31, 1995, and the related statement
of operations for the year then ended, the statement of
changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of
the years in the six-year period then ended, the eleven-month
period ended March 31, 1989, and each of the years in the
three-year period ended April 30, 1988. These financial
statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures
included confirmation of securities owned as of March 31,
1995, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of the Cash Reserve
Portfolio as of March 31, 1995, the results of its operations
for the year then ended, the changes in its net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the six-year
period then ended, the eleven-month period ended March 31,
1989, and each of the years in the three-year period ended
April 30, 1988, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
May 5, 1995
27
<PAGE>
DIRECTORS
Charles T. Bauer John F. Kroeger
Bruce L. Crockett Lewis F. Pennock
Owen Daly II Ian W. Robinson
Carl Frischling Louis S. Sklar
Robert H. Graham
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Senior Vice President & Treasurer
Gary T. Crum Senior Vice President
Carol F. Relihan Vice President & Secretary
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
J. Abbott Sprague Vice President
Dana R. Sutton Vice President & Assistant Treasurer
P. Michelle Grace Assistant Secretary
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
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 659-1005
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
919 Third Avenue
New York, N.Y. 10022
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
TRANSFER AGENTS
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
and
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046-1173
AUDITORS
KPMG Peat Marwick LLP
700 Louisiana
NationsBank Building
Houston, TX 77002
REQUIRED FEDERAL INCOME TAX INFORMATION
One hundred percent of the dividends paid by Tax-Free Investments Co. Cash
Reserve Portfolio Institutional Cash Reserve Shares during its tax year ended
March 31, 1995, qualify as exempt-interest dividends for federal income tax
purposes.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus.
Tax-Free
Investments Co.
(TFIC)
Cash Reserve
Portfolio
----------------------
Institutional Cash
Reserve Shares
ANNUAL
REPORT
March 31, 1995
[LOGO OF FUND MANAGEMENT
COMPANY APPEARS HERE]
