<PAGE> 1
ANNUAL REPORT / JULY 31 2000
AIM MUNICIPAL BOND FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
BENEATH THE BROOKLYN BRIDGE BY JANE WOOSTER SCOTT
STATE AND LOCAL GOVERNMENTS REGULARLY ISSUE MUNICIPAL BONDS
TO FUND A WIDE ARRAY OF PROJECTS, INCLUDING ROADS, BRIDGES AND
RECREATIONAL FACILITIES, THAT IMPROVE THE QUALITY OF LIFE IN COM-
MUNITIES ACROSS THE NATION. SCOTT'S PAINTING CAPTURES A SLICE
OF AN URBAN LANDSCAPE MADE MORE HOSPITABLE AND ENJOYABLE BY
THESE PROJECTS.
-------------------------------------
AIM Municipal Bond Fund is 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 they
represent the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
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 CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o The 30-day yield is calculated using a formula defined by the Securities and
Exchange Commission. 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 annualized.
o The taxable-equivalent yield is calculated in the same manner as the 30-day
yield, with an adjustment for a stated, assumed tax rate.
o The fund's annualized distribution rate reflects its most recent monthly
dividend distribution multiplied by 12 and divided by the most recent
month-end net asset value. s During the seven months ended 7/31/00, the fund
paid distributions of $0.238 per Class A share and $0.203 per Class B and
Class C share.
o Government securities (such as U.S. Treasury bills, notes and bonds) offer a
high degree of safety, and they guarantee 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 fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o Since our last report to you, the fund's fiscal year-end was changed from
December 31 to July 31. Certain information in the financial pages of this
report and information concerning fund distributions, if any, are for the
period 12/31/99-7/31/00. The portfolio managers' discussion and the
performance information presented are for the period 7/31/99-7/31/00.
o The fund's cumulative total returns at net asset value for the seven-month
period ended 7/31/00 were as follows: Class A shares, 4.32%; Class B shares,
3.84%; Class C shares, 3.85%.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged Lehman Municipal Bond Index, which represents the performance
of investment-grade municipal bonds, is compiled by Lehman Brothers, a
well-known global investment bank.
o The unmanaged Lipper General Municipal Debt Fund Index represents an average
of the performance of the 30 largest municipal-bond funds tracked by Lipper,
Inc., an independent mutual fund performance monitor.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is widely regarded as representative of the performance of the U.S. stock
market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM MUNICIPAL BOND FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more
APPEARS HERE] than eight million investors with $176 billion in assets
under management. Over that time, the industry as a whole
[PHOTO OF has grown from $51 billion in assets to more than $7
Robert H. trillion today. I never dreamed we would see such phenomenal
Graham growth. You are the main reason for our success, and I want
APPEARS HERE] you to know how much I appreciate your loyalty and trust
over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,500 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past year and their outlook
for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM MUNICIPAL BOND FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
MUNICIPAL BONDS HELP INVESTORS WEATHER MARKET TURBULENCE
IT HAS BEEN A DIFFICULT MARKET FOR BONDS. HOW HAS AIM MUNICIPAL BOND FUND
PERFORMED?
The fund continued to provide attractive current income (see table below),
exempt from federal income taxes, while maintaining relative share-price
stability. For the year ended July 31, 2000, total return was 2.11%, 1.32% and
1.33% for Class A, Class B and Class C shares, respectively. (These returns are
at net asset value, that is, without sales charges.) By comparison, the fund's
peer group (represented by the Lipper General Municipal Debt Fund Index)
returned 2.50%, and the Lehman Municipal Bond Index returned 4.31%. During the
year, net asset value (NAV) per share remained between $7.62 and $8.09 for all
classes of shares, extending the fund's long-time record of relative price
stability, as shown on the chart below. The fund is managed for income and
stability of net asset value rather than for total return.
As of the end of the year, the fund underperformed its benchmark, mostly
thanks to its shorter-than-average duration--5.50 years compared to Lipper's
average 8.00 and Lehman's average 7.42.
WHAT WERE THE MAJOR TRENDS IN THE BOND MARKET DURING THE REPORTING PERIOD?
Market weakness during 1999 stemmed primarily from investor concerns that strong
economic growth would prompt the Federal Reserve Board (the Fed) to raise
interest rates to keep inflation at bay. The market was also rattled by Y2K
concerns (which largely proved unfounded) and the dollar's decline against the
yen.
In the face of an annualized growth rate above 7% for the fourth quarter of
1999 and above 5% for the first quarter of 2000, the Fed, which had already
raised interest rates three times in 1999, raised them again--twice in the first
quarter of 2000 and again in May. At the end of May, the federal funds target
rate stood at 6.50%, up from 5.25% a year earlier. Market observers breathed a
collective sigh of relief when the Fed, believing that the economy had started
to slow, decided not to raise rates again in June.
HOW DID MUNICIPAL BONDS PERFORM?
Rising interest rates produced downward pressure on muni-bond prices. As bond
prices fall, yields rise, and vice versa. At the beginning of April, yields were
at levels not seen since the mid-'90s. During this time, yields on muni bonds
approached 100% of the yields on equivalent-maturity Treasury securities.
(Normally, muni bonds are considered very attractive when their yields are 85%
of Treasury yields.)
Near the end of the year, investors began to respond to this attractiveness.
Demand for munis helped drive prices up. Along with a lack of new issues, this
helped munis post excellent second-quarter returns. A strong economy has left
states and municipalities with more cash, obviating the need to issue bonds. In
addition, issuers are hesitant to issue new bonds with interest rates so high.
Also, states and municipalities usually issue bonds at year-end to obtain cash
for the
YOUR FUND'S PERFORMANCE
FUND PROVIDES ATTRACTIVE INCOME
As of 7/31/00
================================================================================
30-DAY
SEC YIELD TAXABLE-
30-DAY TAXABLE- AT EQUIVALENT
DISTRIBUTION EQUIVALENT MAXIMUM 30-DAY
RATE AT DISTRIBUTION OFFERING SEC
CLASS NAV RATE* PRICE YIELD*
--------------------------------------------------------------------------------
A 5.21% 8.63% 4.38% 7.25%
B 4.44 7.35 3.84 6.36
C 4.44 7.35 3.84 6.36
*Assumes highest marginal federal income tax rate of 39.6%
================================================================================
HISTORY OF NET ASSET VALUE STABILITY
CLASS A SHARES
7/31/90-7/31/00
================================================================================
7/90 7/92 7/94 7/96 7/98 7/00
--------------------------------------------------------------------------------
7.8 8.5 8.17 8.12 8.31 7.83
7.58 8.11 7.86 8.17 8.38
7.72 8.31 7.91 8.18 8.41
7.8 8.48 8.03 8.11 8.3
7.83 8.54 8.17 8.31 8.08
8.01 8.74 8.21 8.28 7.81
8.03 8.68 8.32 8.38 7.67
8 8.12 8.11 8.27 7.73
================================================================================
This chart has no calculations; it only tracks net asset value. There is no
guarantee that the fund will maintain a constant net asset value. NAV per share
for Class A, Class B and Class C shares has not differed by more than $0.02 per
share.
BEAR MARKET PERFORMANCE
TOTAL RETURN
================================================================================
AIM Lipper
Municipal General
Bond Fund, Municipal
Class A Debt Category
Shares Average
--------------------------------------------------------------------------------
10/31/93--11/30/94 -4.96% -7.87%
12/31/95--8/31/96 0.97 -0.53
11/30/96--4/30/97 0.61 -0.06
9/30/98--7/31/00 1.26 0.32
================================================================================
Bear markets are defined as a 10% rise in the yield of the generic 30-year U.S.
Treasury bond. Source: Lipper, Inc. AIM Municipal Bond Fund's performance
figures are historical, and they represent the reinvestment of distributions and
changes in net asset value; they exclude the effect of the fund's maximum 4.75%
sales charge for Class A shares.
For periods shorter than a year, performance is cumulative; for periods
longer than a year, performance is annualized.
Source: Lipper, Inc.
See important fund and index disclosures inside front cover.
AIM MUNICIPAL BOND FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
-------------------------------------
SINCE OUR LAST REPORT TO YOU, YOUR FUND'S
FISCAL YEAR-END WAS CHANGED FROM
DECEMBER 31 TO JULY 31. YOU WILL NOW
RECEIVE AN ANNUAL REPORT DATED JULY 31
AND A SEMIANNUAL REPORT DATED JANUARY
31 EACH YEAR.
IN ADDITION, DURING THE FISCAL YEAR
COVERED BY THIS REPORT, SHAREHOLDERS VOTED
ON SEVERAL PROPOSALS MADE IN A PROXY
SOLICITATION. DETAILS CONCERNING THESE
PROXY VOTES WILL BE FOUND NEAR THE END
OF THIS REPORT.
-------------------------------------
next year, so issuance tends to taper off each summer. These factors have led to
tight muni supply, which (coupled with increasing demand) has forced yields down
and pushed prices up.
HOW WAS THE FUND POSITIONED AT THE END OF THE REPORTING PERIOD?
The fund had 263 holdings, with an average rating of AA/Aa2 as measured by
Standard & Poor's and Moody's, two widely known credit-rating agencies whose
historical ratings are based on analysis of the credit quality of the individual
securities in the portfolio.
Around 64% of the fund's holdings were rated AAA, with 89% of the portfolio
rated A or better. Credit-enhanced securities (those backed with insurance or
escrowed with U.S. Treasury securities) composed about 59% of the portfolio.
HOW TAX-EFFICIENT WAS THE FUND?
For six years, the fund has paid no taxable capital-gains distribution. We try
to avoid transactions that would result in capital gains that are not offset by
capital losses.
WHAT IS YOUR OUTLOOK?
The near-term outlook for bonds, including munis, depends largely on the
strength of the economy. If the economy continues to grow at a blistering pace,
it could have a negative impact on the bond market. However, if economic growth
moderates, interest rates could level off, which could help bonds.
The next few months should provide a clearer idea whether the Fed has
achieved its goal of minimizing inflation risk. Munis should benefit from
attractive valuations and yields compared to Treasuries and from continuing
new-issue decline.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
==================================================================================================
TOP FIVE BOND HOLDINGS BOND HOLDINGS BY TYPE
As of 7/31/00, based on total net assets As of 7/31/00, based on total net assets
COUPON MATURITY % GENERAL OBLIGATION 14.2%
-------------------------------------------------------
<S> <C> <C> <C> <C>
1. New York State Urban 7.38% 1/1/02 2.32% ESCROW AND PRE-REFUNDED 30.7%
Development Corp.
2. Connecticut (State of) 6.50 3/15/02 1.61 REVENUE 55.1%
3. Mississippi Higher 7.50 9/1/09 1.44
Education Assistance Corp. NUMBER OF HOLDINGS 263
4. New York (City of) 7.65 2/1/02 1.41 AVERAGE MATURITY 13 YEARS
5. Illinois State University 5.75 4/1/22 1.32 DURATION 6 YEARS
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
==================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM MUNICIPAL BOND FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM MUNICIPAL BOND FUND VS. BENCHMARK INDEX
7/31/90-7/31/00
in thousands
================================================================================
AIM Municipal Bond Fund, Lehman Municipal Bond Index
Class A Shares
--------------------------------------------------------------------------------
7/90 9299 9855
7/91 10236 10873
7/92 11840 12367
7/93 12728 13461
7/94 13052 13713
7/95 13895 14792
7/96 14574 15768
7/97 15722 17385
7/98 16540 18427
7/99 16913 18957
7/00 17269 19775
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
This chart compares the performance of your fund's Class A shares to a benchmark
index. It is intended to give you an idea of how your fund performed compared to
this index over the period 7/31/90-7/31/00. It is important to understand the
differences between your fund and an index. An index measures the performance of
a hypothetical portfolio. A market index such as the Lehman Municipal Bond Index
is unmanaged, incurring no sales charges, expenses or fees. If you could buy all
the securities that make up a market index, you would incur charges that would
affect the return on your investment.
AVERAGE ANNUAL TOTAL RETURNS
As of 7/31/00, including sales charges
================================================================================
CLASS A SHARES
10 years 5.62%
5 years 3.43
1 year -2.71*
* 2.11% excluding sales charges
CLASS B SHARES
Inception (9/1/93) 3.36%
5 years 3.42
1 year -3.52*
* 1.32% excluding CDSC
CLASS C SHARES
Inception (8/4/97) 2.42%
1 year 0.36*
* 1.33% excluding CDSC
================================================================================
The fund's average annual total returns as of the close of the reporting period
are shown in the table above. In addition, industry regulations require us to
provide average annual total returns (including sales charges) as of 6/30/00,
the most recent calendar quarter-end, which were: Class A shares, one year,
-3.46%; five years, 3.47%; 10 years, 5.72%. Class B shares, one year, -4.27%;
five years, 3.32%; inception (9/1/93), 3.25%. Class C shares, one year, -0.42%;
inception (8/4/97), 2.14%.
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B and Class C shares will differ from that
of its Class A shares due to differing fees and expenses. For fund performance
calculations and a description of the index cited on this page, please see the
inside front cover.
AIM MUNICIPAL BOND FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
July 31, 2000
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ALABAMA-1.30%
Alabama (State of)
Housing Finance
Authority; Single
Family Mortgage Series
D-2 RB
5.50%, 10/01/17(b) -- Aaa $ 970 $ 937,534
----------------------------------------------------------------
Alabama (State of) Public
School & College
Authority; Capital
Improvement Series 1999
C RB
5.75%, 07/01/17 AA Aa3 1,400 1,432,970
----------------------------------------------------------------
Courtland Industrial
Development Board
(Champion International
Corp. Project);
Refunding Environmental
Improvement Series RB
6.40%, 11/01/26(b) -- Baa1 2,315 2,279,997
----------------------------------------------------------------
4,650,501
----------------------------------------------------------------
ALASKA-0.76%
Alaska (State of) Housing
Finance Corp.;
Collateralized First
Veterans' Home Mortgage
Series A-2 RB
6.75%, 12/01/24(b) AAA Aaa 2,465 2,525,442
----------------------------------------------------------------
Alaska (State of) Housing
Finance Corp.;
Collateralized First
Veterans' Mortgage
Program Series RB
6.88%, 06/01/33 AAA Aaa 205 209,633
----------------------------------------------------------------
2,735,075
----------------------------------------------------------------
ARIZONA-1.47%
Arizona (State of)
Educational Loan
Marketing Corp.; RB
6.13%, 09/01/02(b) -- Aa2 1,900 1,941,211
----------------------------------------------------------------
Pima (County of) Unified
School District No. 10
(Amphitheater); School
Improvement Series 1992
E GO
6.50%, 07/01/05 A+ A2 3,100 3,343,443
----------------------------------------------------------------
5,284,654
----------------------------------------------------------------
ARKANSAS-0.56%
Little Rock (City of);
Capital Improvement
Series B GO
5.75%, 02/01/06 AA Aa3 2,000 2,011,400
----------------------------------------------------------------
CALIFORNIA-2.02%
Abag Financing Authority
for Non-profit Corps.
(Lytton Gardens Inc.);
Series 1999 COP
6.00%, 02/15/19 AA- -- 2,085 2,113,627
----------------------------------------------------------------
Abag Financing Authority
for Non-Profit Corps.
(Odd Fellows Home of
California); Series
1999 COP
6.00%, 08/15/24 AA- -- 1,000 1,013,180
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
CALIFORNIA-(CONTINUED)
Abag Financing Authority
for Non-Profit Corps.
(Lincoln Glen Manor
Senior Citizens);
Series 2000 COP
6.10%, 02/15/25 AA- -- $1,000 $ 1,027,600
----------------------------------------------------------------
California (State of)
Educational Facilities
Authority (Fresno
Pacific University);
Series 2000 A RB
6.05%, 03/01/11 -- Baa3 1,350 1,417,716
----------------------------------------------------------------
Foothill/Eastern Corridor
Agency (California Toll
Road Project); Senior
Lien Series A RB
6.00%, 01/01/10(d)(e) AAA Aaa 400 445,280
----------------------------------------------------------------
Sacramento (City of)
California City
Financing Authority
(Senior Convention
Center Hotel); Series
1999 A RB
6.25%, 01/01/30(f) -- -- 750 707,738
----------------------------------------------------------------
Sacramento (City of)
California Cogeneration
Authority (Procter &
Gamble Project); Series
1995 RB
7.00%, 07/01/04 BBB -- 500 539,510
----------------------------------------------------------------
7,264,651
----------------------------------------------------------------
COLORADO-1.32%
Adams (County of)
Colorado School
District No. 1;
Unlimited Tax Series
1992 A GO
6.63%, 12/01/02(d)(e) AAA Aaa 500 528,270
----------------------------------------------------------------
Colorado Health
Facilities Authority
(National Jewish
Medical and Research
Project); Hospital
Series RB
5.38%, 01/01/29 BBB -- 1,000 767,110
----------------------------------------------------------------
Colorado (State of) E-470
Public Highway
Authority; Series 2000
A RB
5.75%, 09/01/35(c) AAA Aaa 1,000 995,460
----------------------------------------------------------------
Highlands Ranch Metro
District No. 1;
Unlimited Tax Refunding
& Improvement Series A
GO
7.30%, 09/01/02(d)(e) NRR NRR 500 540,605
----------------------------------------------------------------
Mesa County School
District No. 51; 1989
Series B COP
6.88%, 12/01/05(c) AAA Aaa 1,465 1,522,853
----------------------------------------------------------------
Mountain Village Metro
District (San Miguel
County); Unlimited Tax
Refunding Series GO
7.95%, 12/01/02(d)(e) NRR NRR 50 54,183
----------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
COLORADO-(CONTINUED)
Mountain Village Metro
District (San Miguel
County); Unlimited Tax
Unrefunded Balance
Series GO
7.95%, 12/01/03(f) -- -- $ 305 $ 317,420
----------------------------------------------------------------
4,725,901
----------------------------------------------------------------
CONNECTICUT-2.12%
Connecticut (State of)
(Bradley International
Airport); Special
Obligation Parking
Series 2000 A RB
6.60%, 07/01/24(b) A -- 1,000 1,021,440
----------------------------------------------------------------
Connecticut (State of);
General Purpose Public
Improvement Series
1992-A GO
6.50%, 03/15/02(d)(e) NRR NRR 5,500 5,776,100
----------------------------------------------------------------
Connecticut (State of)
Housing Finance
Authority; Sub-series
1996 A-3 RB
5.95%, 05/15/17 AA Aa2 800 818,400
----------------------------------------------------------------
7,615,940
----------------------------------------------------------------
DELAWARE-0.08%
Delaware Economic
Development Authority
(Osteopathic Hospital
Association); Series A
RB
6.75% 01/01/13(d) NRR Aaa 250 282,160
----------------------------------------------------------------
DISTRICT OF
COLUMBIA-0.27%
District of Columbia
(Gonzaga College High
School); Series 1999 RB
5.38%, 07/01/19(c) AAA Aaa 1,000 970,500
----------------------------------------------------------------
FLORIDA-2.00%
Crossings at Fleming
Island (Community
Development District
Special Assessment);
Refunding Series 2000 B
RB
5.80%, 05/01/16(c) AAA Aaa 1,000 1,028,900
----------------------------------------------------------------
Dade (County of)
(Courthouse Center
Project); Special
Obligation Series 1995
RB
5.90%, 04/01/05(d)(e) NRR NRR 500 533,740
----------------------------------------------------------------
Escambia (County of)
(Champion International
Corp. Project); PCR
6.90%, 08/01/22(b) BBB Baa1 1,125 1,144,811
----------------------------------------------------------------
Escambia (County of)
Health Facilities
Authority (Health Care
Facility Loan-Veterans
Hospital Project);
Hospital Series 2000 RB
5.95%, 07/01/20(c) -- Aaa 1,000 1,022,280
----------------------------------------------------------------
Miami (City of) Dade
County Florida Aviation
(Miami International
Airport); Series 2000 B
RB
5.75%, 10/01/29(c) AAA Aaa 2,000 2,020,760
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
FLORIDA-(CONTINUED)
Miami (City of) Parking
Facilities; Series 1992
A RB
6.70%, 10/01/01(d)(e) NRR NRR $1,120 $ 1,168,754
----------------------------------------------------------------
Plantation (City of)
Health Facilities
Authority (Covenant
Retirement Communities
Inc.); Series 1992 RB
7.75%, 12/01/02(d)(e) NRR NRR 250 272,425
----------------------------------------------------------------
7,191,670
----------------------------------------------------------------
GEORGIA-0.48%
Georgia (State of)
Housing and Finance
Authority (Home
Ownership Opportunity
Program); Series C RB
6.50%, 12/01/11 AA+ Aa2 650 676,429
----------------------------------------------------------------
Savannah (City of)
Economic Development
Authority (Hershey
Foods Corp. Project);
Refunding IDR
6.60%, 06/01/12 A+ -- 1,000 1,043,300
----------------------------------------------------------------
1,719,729
----------------------------------------------------------------
IDAHO-0.26%
Idaho Health Facilities
Authority (Elks
Rehabilitation Hospital
Project); Hospital
Series RB
5.30%, 07/15/18 BBB -- 1,150 921,875
----------------------------------------------------------------
ILLINOIS-9.23%
Berwyn (City of) (Macneal
Memorial Hospital
Association Project);
Hospital Series 1991 RB
7.00%, 06/01/01(d)(e) AAA Aaa 3,250 3,382,275
----------------------------------------------------------------
Chicago (City of) Public
Building Committee
(Chicago School
Reform); Refunding
Series 1999 RB
5.25%, 12/01/15(c) AAA Aaa 1,500 1,490,520
----------------------------------------------------------------
Cook (County of);
Unlimited Tax Series
1992 B GO
5.75%, 11/15/02(d)(e) AAA Aaa 2,000 2,091,880
----------------------------------------------------------------
Freeport (City of) (Sewer
System Improvements);
Unlimited Tax Series
2000 GO
6.00%, 12/01/29(c) AAA Aaa 1,000 1,013,850
----------------------------------------------------------------
Illinois (State of);
Sales Tax Series 1991 O
RB
6.50%, 06/15/01(d)(e) AAA NRR 1,500 1,556,205
----------------------------------------------------------------
Illinois (State of)
Development Finance
Authority (CPC
International Project);
Refunding PCR
6.75%, 05/01/16 -- A2 2,500 2,584,550
----------------------------------------------------------------
Illinois (State of)
Development Finance
Authority (Adventist
Health Systems
Project); Hospital
Series 1997 A RB
6.00%, 11/15/11 AAA Aaa 2,500 2,677,700
----------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois (State of)
Educational Facilities
Authority (Midwestern
University); Series B
RB
5.50%, 05/15/18 A -- $1,000 $ 958,330
----------------------------------------------------------------
Illinois (State of)
Educational Facilities
Authority (Northwestern
University); Adjustable
Medium Term Series RB
5.25%, 11/01/14(e) AA+ Aa1 1,000 992,980
----------------------------------------------------------------
Illinois (State of)
Educational Facilities
Authority (Shedd
Aquarium Society); RB
5.60%, 07/01/27(c) AAA Aaa 3,500 3,428,355
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Blessing Hospital);
Hospital Series 1999 A
6.00%, 11/15/19(b) AAA Aaa 1,000 1,015,530
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Evangelical Hospital
Corp.); RB
6.25%, Refunding Series
1992 A 04/15/22(d)(e) NRR Aaa 1,000 1,074,390
----------------------------------------------------------------
6.25%, Series 1992 C
04/15/22(d)(e) NRR NRR 1,150 1,231,052
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Franciscan Sisters
Health Care); Series
1992 RB
6.40%, 09/01/04(d) AAA Aaa 2,000 2,133,140
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Memorial Hospital);
Hospital Series 1992 RB
7.25%, 05/01/02(d)(e) NRR NRR 200 212,810
----------------------------------------------------------------
Illinois State University
(Auxiliary Facilities
System);
5.75%, Series 1993 RB
04/01/14(c) AAA Aaa 1,000 1,013,350
----------------------------------------------------------------
5.75%, Series 1991 RB
04/01/22 AA- Aa3 4,750 4,751,900
----------------------------------------------------------------
Peoria and Pekin and
Waukegan (Cities of);
GNMA Collateralized
Mortgage Series 1990 RB
7.88%, 08/01/22(b) AA -- 60 61,945
----------------------------------------------------------------
Tazewell County Community
High School District
No. 303 (Pekin);
Unlimited Tax Series
1996 GO
5.63%, 01/01/14(c) AAA Aaa 1,435 1,461,562
----------------------------------------------------------------
33,132,324
----------------------------------------------------------------
INDIANA-1.22%
Carmel Retirement Rental
Housing (Beverly
Enterprises Project);
Refunding Series RB
8.75%, 12/01/08(f) -- -- 90 95,327
----------------------------------------------------------------
East Allen (City of)
Multi-School Building
Corp.; First Mortgage
Series 2000 RB
5.75%, 01/15/15(c) AAA Aaa 735 754,367
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
INDIANA-(CONTINUED)
Indiana (State of)
(Special Program);
Series 2000 A RB
5.90%, 02/01/14(c) AAA Aaa $1,000 $ 1,042,400
----------------------------------------------------------------
Indiana (State of)
Housing Finance
Authority; Series B-1
RB
6.15%, 07/01/17 -- Aaa 150 153,630
----------------------------------------------------------------
Indianapolis (City of)
(Lake Nora and Fox Club
Project); Series 1999 A
Multi-Family RB
5.90%, 10/01/19(c) -- Aaa 1,795 1,802,109
----------------------------------------------------------------
Indiana Transportation
Finance Authority
(Airport Lease
Facility); Series 1992
A RB
6.25%, 11/01/02(d)(e) NRR Aaa 395 416,717
----------------------------------------------------------------
6.25%, 11/01/16 AA A1 105 108,294
----------------------------------------------------------------
4,372,844
----------------------------------------------------------------
IOWA-0.30%
Iowa Finance Authority
(Trinity Regional
Hospital Project);
Hospital Facilities
Series 1997 RB
6.00%, 07/01/12(c) AAA Aaa 1,000 1,068,490
----------------------------------------------------------------
KANSAS-0.45%
Hutchinson Health Care
Facilities (Wesley
Towers); Refunding &
Improvement Series 1999
A RB
6.25%, 11/15/19(f) -- -- 1,500 1,320,870
----------------------------------------------------------------
Newton (City of) (Newton
Healthcare Corp.);
Hospital Series A RB
7.38%, 11/15/04(d)(e) NRR NRR 250 280,368
----------------------------------------------------------------
1,601,238
----------------------------------------------------------------
KENTUCKY-1.73%
Jefferson (County of)
(Beverly Enterprises
Project); Refunding
Health Facilities
Series RB
5.88%, 05/01/08(f) -- -- 595 559,127
----------------------------------------------------------------
Kenton (County of)
Kentucky Airport Board
(Delta Airlines
Project); Special
Facilities Series 1992
A RB
7.13%, 02/01/21(b) BBB- Baa3 2,500 2,539,575
----------------------------------------------------------------
Mount Sterling (City of);
Lease Funding Series
1993 A RB
6.15%, 03/01/13 -- Aa 3,000 3,124,530
----------------------------------------------------------------
6,223,232
----------------------------------------------------------------
LOUISIANA-3.59%
Louisiana (State of)
Local Government
Environmental
Facilities and
Community Development
Authority (Capital
Projects and Equipment
Acquisition); Series
2000 A RB
6.30%, 07/01/30(c) AAA -- 2,000 2,156,080
----------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
LOUISIANA-(CONTINUED)
Louisiana Public
Facilities Authority
(Medical Center at New
Orleans Project); RB
6.13%, 10/15/07(c) AAA -- $2,775 $ 2,843,154
----------------------------------------------------------------
Louisiana Public
Facilities Authority
(Our Lady of Lake
Regional Hospital);
Hospital Refunding
Series C RB
6.00%, 12/01/01(d)(e) AAA Aaa 1,000 1,038,170
----------------------------------------------------------------
Louisiana Public
Facilities Authority
(Tulane University of
Louisiana); RB
6.00%, 10/01/16(c) AAA Aaa 2,500 2,587,725
----------------------------------------------------------------
New Orleans Levee
District; Trust
Receipts Series 1995 A
RB
5.95%, 11/01/07(c) AAA Aaa 1,000 1,058,920
----------------------------------------------------------------
Ouachita Parish Hospital
Service District No. 1
(Glenwood Regional
Medical Center);
Refunding Series 1996
RB
5.70%, 05/15/16(c) AAA Aaa 1,000 1,008,860
----------------------------------------------------------------
St. John Baptist Parish
(Sales Tax District);
Public Improvement
Series 1987 RB
7.60%, 01/01/08(d) NRR NRR 500 581,675
----------------------------------------------------------------
7.60%, 01/01/09(d) NRR NRR 500 590,605
----------------------------------------------------------------
West Feliciana Parish
(Gulf States
Utilities); Series A
PCR
7.50%, 05/01/15 BB+ -- 1,000 1,040,160
----------------------------------------------------------------
12,905,349
----------------------------------------------------------------
MAINE-0.64%
Maine (State of)
Education Loan
Authority; Education
Loan Series A-2 RB
6.95%, 12/01/07(b) -- A2 770 793,577
----------------------------------------------------------------
Maine (State of) Housing
Authority; Series 1999
E-1 RB
5.85%, 11/15/20 AA Aa2 1,500 1,513,740
----------------------------------------------------------------
2,307,317
----------------------------------------------------------------
MASSACHUSETTS-3.50%
Massachusetts (State of)
(Consumer Loans);
Unlimited Tax Series
1991 C GO
7.00%, 08/01/01(d)(e) NRR NRR 2,450 2,559,466
----------------------------------------------------------------
Massachusetts (State of)
Health and Education
Facilities Authority
(Lowell General
Hospital); Series 1991
A RB
8.40%, 06/01/01(d)(e) NRR NRR 3,550 3,732,328
----------------------------------------------------------------
Massachusetts (State of)
Health and Education
Facilities Authority
(Winchester Hospital);
Series D RB
5.80%, 07/01/09(c) AAA -- 1,000 1,045,660
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of)
Industrial Finance
Agency (Beverly
Enterprises); Refunding
Series RB
8.00%, 05/01/02(f) -- -- $ 125 $ 126,197
----------------------------------------------------------------
Massachusetts (State of)
Housing Finance Agency;
Single Family Housing
Series 1994 RB
6.60%, 12/01/26(b) A+ Aa3 1,890 1,943,771
----------------------------------------------------------------
Massachusetts (State of)
Municipal Wholesale
Electric Cooperative
Power Supply; System
Series 1992 A RB
6.75%, 07/01/08(c) AAA Aaa 3,000 3,176,670
----------------------------------------------------------------
12,584,092
----------------------------------------------------------------
MICHIGAN-4.12%
Detroit (City of) School
District; Unlimited Tax
Series 1992 GO
6.00%, 05/01/01(d)(e) NRR NRR 1,000 1,031,250
----------------------------------------------------------------
6.15%, 05/01/01(d)(e) NRR NRR 1,300 1,342,029
----------------------------------------------------------------
Flint (City of) Hospital
Building Authority;
Hospital Series B RB
5.38%, 07/01/18(c) A -- 1,000 933,720
----------------------------------------------------------------
Garden City Hospital
Finance Authority
(Garden City Hospital);
Hospital Refunding
Series A RB
5.63%, 09/01/10 -- Ba3 1,000 852,790
----------------------------------------------------------------
Lake Orion Community
School District;
Unlimited Tax Refunding
Series 1994 GO
7.00%, 05/01/05(d)(e) AAA Aaa 2,500 2,771,925
----------------------------------------------------------------
Lakeview Community School
District; Refunding
Unlimited Tax Series
1996 GO
5.75%, 05/01/07(d)(e) AAA Aaa 1,000 1,059,420
----------------------------------------------------------------
Lincoln Park (City of)
School District;
Unlimited Tax Series
1996 GO
6.00%, 05/01/06(d)(e) AAA Aaa 1,210 1,300,085
----------------------------------------------------------------
Michigan (State of)
Housing Development
Authority; Refunding
Rental Housing Series A
RB
6.60%, 04/01/12 AA- -- 945 985,578
----------------------------------------------------------------
Ypsilanti (City of)
School District;
Refunding Unlimited Tax
Series 1996 GO
5.75%, 05/01/07(d)(e) AAA Aaa 4,275 4,529,020
----------------------------------------------------------------
14,805,817
----------------------------------------------------------------
MINNESOTA-0.29%
Minneapolis (City of)
(Parking Ramp Project);
Unlimited Tax Series
2000 A GO
5.90%, 12/01/20 AAA Aaa 1,000 1,025,560
----------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI-2.58%
Mississippi (State of)
Development Board
(Panola County
Hospital); Special
Obligation Series RB
5.00%, 07/01/28 A -- $5,000 $ 4,099,600
----------------------------------------------------------------
Mississippi Higher
Education Assistance
Corp.; Student Loan
Sub-Series 1994 C RB
7.50%, 09/01/09(b)(f) -- -- 5,000 5,176,200
----------------------------------------------------------------
9,275,800
----------------------------------------------------------------
MISSOURI-1.15%
Kansas City Industrial
Development Authority
(General Motors Corp.
Project); PCR
6.05%, 04/01/06 A A3 1,435 1,444,973
----------------------------------------------------------------
Kansas City Municipal
Assistance Corp.
(Truman Medical Center
Charitable Foundation);
Leasehold Improvement
Series 1991 A RB
7.00%, 11/01/01(d)(e) NRR NRR 605 623,199
----------------------------------------------------------------
Missouri (State of)
Environmental
Improvement and Energy
Resources Authority;
Series 1995 C PCR
5.85%, 01/01/10 -- Aaa 1,000 1,049,360
----------------------------------------------------------------
St. Louis (City of)
Airport; Series 2000 RB
6.25%, 01/01/02 Baa3 BBB- 1,000 1,008,240
----------------------------------------------------------------
4,125,772
----------------------------------------------------------------
NEVADA-1.62%
Boulder (City of)
(Boulder City Hospital
Inc. Project); Hospital
Refunding Series RB
5.85%, 01/01/22(f) -- -- 500 415,230
----------------------------------------------------------------
Humboldt (County of)
(Sierra Pacific
Project); Refunding
Series 1987 PCR
6.55%, 10/01/13(c) AAA Aaa 3,000 3,140,250
----------------------------------------------------------------
Las Vegas (City of);
Refunding 1992 Limited
Tax GO
6.50%, 04/01/02(d)(e) AAA Aaa 1,000 1,050,990
----------------------------------------------------------------
Reno Redevelopment
Agency; Refunding
Sub-Series A Tax
Allocation Notes
6.00%, 06/01/10 -- Baa3 1,185 1,210,288
----------------------------------------------------------------
5,816,758
----------------------------------------------------------------
NEW HAMPSHIRE-0.42%
Hudson (City of);
Unlimited Tax Series GO
5.25%, 03/15/28 -- Aa3 1,610 1,497,042
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW JERSEY-2.89%
Hudson (County of)
Correctional Facility;
Refunding Series 1992
COP
6.60%, 12/01/21(c) AAA Aaa $1,250 $ 1,290,675
----------------------------------------------------------------
New Jersey Economic
Development Authority
(Atlantic City Sewer
Co.); Sewer Facility
Series 1991 RB
7.25%, 12/01/11(b)(f) -- -- 1,630 1,684,980
----------------------------------------------------------------
New Jersey Economic
Development Authority
(Continental Airlines
Inc. Project);
Specialty Facilities
Series 1999 RB
6.40%, 09/15/23(b) BB Ba2 4,000 3,765,760
----------------------------------------------------------------
6.25%, 09/15/29(b) BB Ba2 2,250 2,033,527
----------------------------------------------------------------
New Jersey City Economic
Development Authority
(Franciscan Oaks
Project); First
Mortgage Series RB
5.70%, 10/01/17(f) -- -- 500 423,875
----------------------------------------------------------------
New Jersey Health Care
Facility Financing
Authority; Unrefunded
Balance Series 1987 C
RB
8.60%, 07/01/17(c) AAA Aaa 185 186,554
----------------------------------------------------------------
New Jersey (State of)
Turnpike Authority;
Series 2000 A RB
5.50%, 01/01/25(c) AAA Aaa 1,000 988,040
----------------------------------------------------------------
10,373,411
----------------------------------------------------------------
NEW MEXICO-1.62%
Albuquerque (City of) New
Mexico Educational
Facilities Authority
(Albuquerque Academy
Project); Education
Series 1995 RB
5.75%, 10/15/03(d)(e) NRR NRR 915 945,909
----------------------------------------------------------------
Las Cruces South Central
Solid Waste Authority;
Environmental Services
RB
5.65%, 06/01/09 -- A3 575 586,856
----------------------------------------------------------------
Los Alamos (County of);
Utility Series A RB
6.00%, 07/01/15(c) AAA Aaa 2,000 2,069,120
----------------------------------------------------------------
Santa Fe (City of);
Series 1994 A RB
6.25%, 06/01/04(d)(e) AAA Aaa 2,100 2,220,939
----------------------------------------------------------------
5,822,824
----------------------------------------------------------------
NEW YORK-11.61%
Metropolitan
Transportation
Authority; Dedicated
Tax Fund Series 2000 A
RB
5.88%, 04/01/25(c) AAA Aaa 1,500 1,520,265
----------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW YORK-(CONTINUED)
New York (City of); GO
8.25%, Unlimited Tax
Series 1991 F
11/15/01(d)(e) NRR Aaa $2,000 $ 2,123,220
----------------------------------------------------------------
7.65%, Unlimited Tax
Series 1992 F GO
02/01/02(d)(e) NRR Aaa 4,775 5,066,323
----------------------------------------------------------------
7.00%, Unlimited Tax
Series H
02/01/02(d)(e) NRR NRR 350 367,836
----------------------------------------------------------------
7.20%, Unlimited Tax
Series H
02/01/02(d)(e) NRR NRR 390 410,994
----------------------------------------------------------------
02/01/15 A- A3 110 115,138
----------------------------------------------------------------
7.70%, Unlimited Tax
Series D GO
02/01/02(d)(e) NRR Aaa 1,970 2,091,608
----------------------------------------------------------------
02/01/09 A- A3 30 31,699
----------------------------------------------------------------
7.00%, Unlimited Tax
Series C, Sub-Series
C-1
08/01/02(d)(e) NRR Aaa 1,990 2,116,305
----------------------------------------------------------------
7.38%, Unlimited Tax
Series B1
08/15/04(d)(e) NRR Aaa 500 556,456
----------------------------------------------------------------
6.25%, Unlimited Tax
Series A
08/01/17 A- A3 3,035 3,166,689
----------------------------------------------------------------
7.00%, Unlimited Tax
Series C, Sub-Series
C-1
08/01/17 A- A3 10 10,527
----------------------------------------------------------------
7.00%, Unlimited Tax
Series B
02/01/18(c) AAA Aaa 830 865,549
----------------------------------------------------------------
7.00%, Unlimited Tax
Series B
02/01/02(d)(e) AAA Aaa 170 178,791
----------------------------------------------------------------
New York (City of)
Industrial Development
Agency (The Lighthouse
Inc. Project); Series
1992 RB (LOC-Chase
Manhattan Bank)
6.50%, 07/01/02(d)(e) NRR NRR 1,500 1,585,515
----------------------------------------------------------------
New York (City of)
Municipal Water Finance
Authority; Water &
Sewer Systems
5.75%, Series 1997 B RB
06/15/29 AA Aa3 3,850 3,854,504
----------------------------------------------------------------
5.00%, Series 1987 A RB
06/15/17 AA Aa3 1,350 1,270,674
----------------------------------------------------------------
5.50%, Series 1996 A RB
06/15/24(c) AAA Aaa 1,000 975,280
----------------------------------------------------------------
New York State Dorm
Authority (City
University System);
Series 1990 C RB
6.00%, 07/01/16 A Baa1 365 365,675
----------------------------------------------------------------
New York (State of) Dorm
Authority (State
University Educational
Facilities); Series A
RB
6.50%, 05/15/06 A A3 1,000 1,081,730
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW YORK-(CONTINUED)
New York (State of)
Environmental
Facilities Corp.; Water
Revenue Series 1991 E
PCR
6.88%, 06/15/01(d)(e) AAA Aaa $2,300 $ 2,395,036
----------------------------------------------------------------
6.88%, 06/15/10 AAA Aaa 1,100 1,139,798
----------------------------------------------------------------
New York (State of) Urban
Development Corp.
(Correctional Capital
Facilities); Series
1991-3 RB
7.38%, 01/01/02(d)(e) NRR Aaa 7,850 8,316,682
----------------------------------------------------------------
North Babylon (City of)
Union Free School
District; Unlimited Tax
Series 2000 A GO
5.50%, 02/15/17(c) -- Aaa 2,070 2,071,594
----------------------------------------------------------------
41,677,888
----------------------------------------------------------------
NORTH CAROLINA-1.58%
North Carolina Eastern
Municipal Power Agency;
Series A RB
6.13%, 01/01/10(c) AAA Aaa 1,500 1,641,870
----------------------------------------------------------------
North Carolina Housing
Finance Agency; Single
Family-Series II RB
6.20%, 03/01/16 AA Aa2 570 588,725
----------------------------------------------------------------
North Carolina Municipal
Power Agency (No. 1
Catawba Electric
Project);
7.25%, Refunding RB
01/01/07 BBB+ Baa1 2,890 3,166,486
----------------------------------------------------------------
6.50%, Series 1990 RB
01/01/10(d) AAA Aaa 260 286,720
----------------------------------------------------------------
5,683,801
----------------------------------------------------------------
NORTH DAKOTA-0.15%
North Dakota Housing
Finance Agency; Home
Mortgage Series B RB
5.85%, 07/01/28(b) -- Aa3 545 533,958
----------------------------------------------------------------
OHIO-2.65%
Cleveland (City of)
Parking Facilities;
Improvement Series RB
8.00%, 09/15/02(d)(e) NRR NRR 500 542,960
----------------------------------------------------------------
Fairfield (City of)
School District;
Unlimited Tax Series
1995 GO
6.10%, 12/01/15(c) AAA Aaa 1,000 1,036,620
----------------------------------------------------------------
Findlay (City of);
Limited Tax Series 1996
GO
5.88%, 07/01/17 AA- Aa3 1,000 1,028,900
----------------------------------------------------------------
Lake Ohio School
District; Unlimited Tax
Series 2000 GO
5.75%, 12/01/26(c) AAA Aaa 2,500 2,526,925
----------------------------------------------------------------
Mason (City of) Health
Care Facilities (MCV
Health Care
Facilities); Series
1990 RB
7.63%, 02/01/01(d)(e) AAA NRR 2,090 2,173,224
----------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OHIO-(CONTINUED)
Montgomery (County of)
Ohio Hospital Authority
(Grandview Hospital &
Medical Center);
Refunding Hospital
Series RB
5.50%, 12/01/09(d)(e) NRR NRR $1,000 $ 1,041,380
----------------------------------------------------------------
Ohio Department of
Transportation
(Panhandle Rail Line
Project); Series 1992
COP
6.50%, 04/15/12(c) AAA Aaa 1,100 1,147,795
----------------------------------------------------------------
9,497,804
----------------------------------------------------------------
OKLAHOMA-2.77%
McAlester (City of)
Public Works Authority;
Refunding and
Improvement Series 1995
RB
5.50%, 12/01/09(d)(e) AAA Aaa 975 1,029,015
----------------------------------------------------------------
Mustang Improvement
Utility Authority;
Series 1999 RB
5.70%, 10/01/19(c) -- Aaa 1,500 1,503,555
----------------------------------------------------------------
Oklahoma Development
Finance Authority (St.
John Health System);
Refunding Series 1999
RB
5.75%, 02/15/18 AA Aa3 675 674,244
----------------------------------------------------------------
5.75%, 02/15/25 AA Aa3 1,750 1,752,503
----------------------------------------------------------------
Sapula (City of)
Municipal Authority;
Capital Improvement
Series RB
5.00%, 07/01/21(c) AAA Aaa 1,000 920,790
----------------------------------------------------------------
Tulsa (City of)
Industrial Authority
(St. Johns Medical
Center Project);
Hospital Series 1994 RB
6.25%, 02/15/06(d)(e) NRR NRR 2,000 2,150,480
----------------------------------------------------------------
Tulsa (City of)
Industrial Authority
(Tulsa Regional Medical
Center); Hospital
Series RB
7.20%, 06/01/03(d)(e) AAA NRR 500 543,550
----------------------------------------------------------------
Tulsa Public Facilities
Authority-Capital
Improvements-Water
System; Series 1988 B
RB
6.00%, 03/01/08 A+ -- 1,305 1,361,702
----------------------------------------------------------------
9,935,839
----------------------------------------------------------------
OREGON-0.93%
Cow Creek Band Umpqua
Tribe of Indians;
Series B RB
5.10%, 07/01/12(c) AAA Aaa 1,000 999,070
----------------------------------------------------------------
Portland (City of) Sewer
System; Series 1994 A
RB
6.20%, 06/01/04(d)(e) AAA NRR 1,200 1,277,112
----------------------------------------------------------------
6.25%, 06/01/04(d)(e) AAA NRR 1,000 1,065,990
----------------------------------------------------------------
3,342,172
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA-1.63%
Allegheny (County of)
Port Authority; Special
Revenue Transportation
Series 1999 RB
6.13% 03/01/29(c) AAA Aaa $1,000 $ 1,030,240
----------------------------------------------------------------
Montgomery (County of)
Industrial Development
Authority (Meadowood
Corp. Project);
Refunding First
Mortgage Series A RB
10.25%, 12/01/00(d)(e) NRR NRR 100 103,820
----------------------------------------------------------------
Montgomery (County of)
Industrial Development
Authority (Pennsburg
Nursing &
Rehabilitation Center);
Series 1993 RB
7.63%, 03/31/04(d)(e) NRR Aaa 100 112,101
----------------------------------------------------------------
Pennsylvania (State of);
Unlimited Tax Third
Series GO
6.75%, 11/15/13(c) AAA Aaa 1,250 1,355,512
----------------------------------------------------------------
Pennsylvania Economic
Development Finance
Authority (Colver
Project); Resource
Recovery Series 1994 D
RB
7.05%, 12/01/10(b) BBB- -- 2,900 2,976,125
----------------------------------------------------------------
Scranton-Lackawanna
Health & Welfare
Authority (Moses Taylor
Hospital Project);
Series 1991 B RB
8.50%, 07/01/01(d)(e) AAA NRR 250 263,893
----------------------------------------------------------------
5,841,691
----------------------------------------------------------------
PUERTO RICO-0.39%
Puerto Rico (Commonwealth
of) Electric Power
Authority; Series 1991
P RB
7.00%, 07/01/01(d)(e) AAA Aaa 1,325 1,382,902
----------------------------------------------------------------
RHODE ISLAND-0.66%
Rhode Island Depositors
Economic Protection
Corp.; Special
Obligation Series 1992
A RB
6.95%, 08/01/02(d)(e) AAA Aaa 1,250 1,331,912
----------------------------------------------------------------
Rhode Island Housing and
Mortgage Finance Corp.;
Homeownership
Opportunity Series 15 B
RB
6.00%, 10/01/04 AA+ Aa2 1,000 1,041,640
----------------------------------------------------------------
2,373,552
----------------------------------------------------------------
SOUTH CAROLINA-0.58%
Piedmont Municipal Power
Agency; Refunding
Electric Series A RB
5.75%, 01/01/24 BBB- Baa3 1,150 1,054,654
----------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of)
Jobs Economic
Development Authority
(Palmetto Health
Alliance); Hospital
Facilities Improvement
Series 2000 A RB
7.13%, 12/15/15 BBB Baa1 $1,000 $ 1,021,740
----------------------------------------------------------------
2,076,394
----------------------------------------------------------------
SOUTH DAKOTA-0.03%
South Dakota Health and
Educational Facility
Authority (Huron
Regional Medical
Center); Series 1994 RB
7.25%, 04/01/20 BBB -- 100 101,698
----------------------------------------------------------------
TENNESSEE-1.77%
Franklin Industrial
Development Board
(Landings Apartment
Project); Multifamily
Housing Series A RB
5.75%, 04/01/10(c) AAA Aaa 975 992,765
----------------------------------------------------------------
Montgomery (County of)
Health, Educational and
Housing Facilities
Board (Clarksville
Project); Refunding and
Improvement Hospital
Series RB
5.38%, 01/01/28(c) A -- 1,800 1,627,164
----------------------------------------------------------------
Robertson and Sumner
(Counties of) White
House Utilities
District; Water and
Sewer Series 2000 RB
6.00%, 01/01/26 -- Aaa 1,000 1,023,750
----------------------------------------------------------------
Shelby (County of);
Unlimited Tax School
Series B GO
6.00%, 03/01/02(d)(e) NRR NRR 1,000 1,031,880
----------------------------------------------------------------
Shelby County Health,
Educational & Housing
Facilities Board (Kirby
Pines); Health Care
Facilities Series A RB
6.25%, 11/15/16(f) -- -- 1,000 886,000
----------------------------------------------------------------
Tennessee Housing
Development Agency;
Homeownership
Progressive Series Q RB
6.80%, 07/01/17 AA Aa2 770 798,451
----------------------------------------------------------------
6,360,010
----------------------------------------------------------------
TEXAS-20.07%
Allen Independent School
District; Unlimited Tax
Refunding Series 2000
GO
5.95%, 02/15/25(c) AAA Aaa 1,600 1,624,368
----------------------------------------------------------------
Arlington Independent
School District;
Unlimited Tax Series GO
5.75%, 02/15/05(d)(e) NRR Aaa 705 736,647
----------------------------------------------------------------
5.75%, 02/15/21(d) -- Aaa 295 295,808
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Austin (City of); Utility
System Combined Fee
Refunding Series 1991
RB
6.50%, 05/15/01(d)(e) AAA Aaa $1,380 $ 1,429,390
----------------------------------------------------------------
Austin Community College
District; Combined Fee
Revenue Building and
Refunding Series 1995
RB
6.10%, 02/01/05(d)(e) AAA Aaa 1,115 1,180,361
----------------------------------------------------------------
Austin Hotel Occupancy
Tax; Refunding Sub Lien
1999 Series RB
5.80%, 11/15/29(c) AAA Aaa 1,000 1,003,460
----------------------------------------------------------------
Bellville Independent
School District;
Unlimited Tax Series
1995 GO
6.13%, 02/01/06(d)(e) NRR Aaa 535 571,808
----------------------------------------------------------------
6.13%, 02/01/20 NRR Aaa 295 302,938
----------------------------------------------------------------
Bexar (County of) Housing
Finance Corp. (Dymaxion
& Marrach Park
Apartments);
Multifamily Housing
Series 2000 A RB
6.10%, 08/01/30(c) -- Aaa 1,000 1,000,000
----------------------------------------------------------------
Brazos (County of) Health
Facilities Development
Corp. (Franciscan
Services Corp.); Series
A RB
5.38%, 01/01/22(c) AAA Aaa 2,000 1,901,120
----------------------------------------------------------------
Brazos Higher Education
Loan Authority Inc.;
Refunding Series 1992
C-1 RB
6.30%, Series 1992 C-1
11/01/01(b) -- Aa 325 330,714
----------------------------------------------------------------
6.45%, Series 1992 C-1
11/01/02(b) -- Aa 1,135 1,164,816
----------------------------------------------------------------
Carrollton (City of);
Limited Tax Series 1996
GO
5.75%, 08/15/06(d)(e) NRR NRR 1,000 1,052,440
----------------------------------------------------------------
Comal (County of)
Industrial Development
Authority (The Coleman
Co., Inc. Project);
Industrial Development
Series 1980 RB
9.25%, 08/01/00(d)(e) NRR NRR 280 280,000
----------------------------------------------------------------
Comal (County of)
Independent School
District; Unlimited Tax
Refunding Series 1999
GO
5.75%, 08/01/28(c) -- Aaa 1,000 998,610
----------------------------------------------------------------
Dallas (City of);
Waterworks and Sewer
System Refunding and
Improvement Series RB
5.35%, 04/01/14 AA Aa2 2,055 2,054,836
----------------------------------------------------------------
Dallas (City of);
Waterworks and Sewer
System Series A RB
6.00%, 10/01/01(d)(e) NRR NRR 2,030 2,094,473
----------------------------------------------------------------
De Soto (City of)
Independent School
District; Refunding
Unlimited Tax Series GO
5.13%, 08/15/17(c) AAA -- 1,000 951,430
----------------------------------------------------------------
</TABLE>
12
<PAGE> 15
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Georgetown (City of);
Utility System Series
1995 A RB
6.20%, 08/15/05(d)(e) AAA Aaa $1,500 $ 1,600,470
----------------------------------------------------------------
Grapevine (City of);
Limited Tax Series 2000
COP
5.88%, 08/15/26(c) AAA Aaa 1,610 1,632,492
----------------------------------------------------------------
Harris County; Toll Road
Unlimited Tax GO and
Sub. Lien Refunding
Series 1991
6.75%, 08/01/14 AA Aa1 3,850 4,013,510
----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Saint Luke's
Episcopal Hospital
Project); Series 1991
RB
6.70%, 02/15/03(d)(e) AAA NRR 1,000 1,050,880
----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Texas Childrens
Hospital Project);
Hospital Series 1999 A
RB
5.25%, 10/01/29 AA Aa2 2,000 1,765,040
----------------------------------------------------------------
Harris County Mental
Health and Mental
Retardation Authority;
Refunding Series 1992
RB
6.25%, 09/15/10(c) AAA Aaa 4,500 4,618,620
----------------------------------------------------------------
Houston (City of);
Limited Tax Series 1992
C GO
6.25%, 03/01/02(d)(e) NRR NRR 1,470 1,509,822
----------------------------------------------------------------
Houston (City of); Water
and Sewer System Series
1997 C RB
5.38%, 12/01/27(c) AAA Aaa 2,495 2,363,339
----------------------------------------------------------------
Hurst, Euless, Bedford,
Texas Independent
School District;
6.50%, Refunding
Unlimited Tax Series
1994 GO
08/15/04(d)(e) AAA Aaa 640 684,531
----------------------------------------------------------------
6.50%, Unrefunded
Unlimited Tax Series
1994 GO 08/15/24(c) AAA Aaa 360 371,938
----------------------------------------------------------------
Katy (City of)
Independent School
District; Limited Tax
Series 1999 GO
6.13%, 02/15/32 AAA Aaa 1,500 1,545,630
----------------------------------------------------------------
Keller (City of)
Independent School
District; Series 1994
COP
6.00%, 08/15/05(c) AAA Aaa 1,000 1,058,110
----------------------------------------------------------------
Little Elm (City of)
Independent School
District; Unlimited Tax
Refunding Series
6.00%, Series 1999 GO
08/15/35 AAA -- 2,500 2,557,625
----------------------------------------------------------------
6.13%, Series 2000 GO
08/15/35 AAA -- 1,000 1,031,340
----------------------------------------------------------------
Lockhart (City of) Tax
and Utility Systems;
Unlimited Tax Series
1996 GO
5.85%, 08/01/11(c) AAA Aaa 605 631,989
----------------------------------------------------------------
5.90%, Refunding
08/01/06(d)(e) AAA Aaa 1,100 1,168,849
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Matagorda (County of)
District No. 1 (Reliant
Energy Project);
Refunding 1999 RB
5.95%, 05/01/30(b) BBB Baa1 $2,250 $ 2,028,915
----------------------------------------------------------------
North Central Texas
Health Facilities
Development Corp. (CC
Young Memorial
Project); Hospital
Series RB
5.38%, 02/15/25(c) A -- 1,000 931,140
----------------------------------------------------------------
Northside Independent
School District;
Unlimited Tax Series
1999 A GO
5.50%, 08/15/24 AAA Aaa 1,000 973,980
----------------------------------------------------------------
North Texas Higher
Education Authority
Inc.; Student Loan RB
6.10%, Series 1993 C
04/01/08(b) -- Aa 1,000 1,021,400
----------------------------------------------------------------
6.30%, Series 1993 D
04/01/09(b) -- A 500 509,420
----------------------------------------------------------------
Plano (City of); Limited
Tax Series 2000 GO
5.88%, 09/01/19 AAA Aaa 850 868,428
----------------------------------------------------------------
Plano (City of)
Independent School
District; Unlimited Tax
Series 1991 B GO
5.63%, 02/15/01(d)(e) AAA Aaa 2,500 2,516,850
----------------------------------------------------------------
Richardson (City of);
Hotel Occupancy Limited
Tax Series 2000 A COP
5.75%, 12/15/21(c) AAA Aaa 2,000 2,008,680
----------------------------------------------------------------
San Antonio (City of)
Independent School
District; Unlimited Tax
Series 1999 GO
5.50%, 08/15/24 AAA Aaa 3,500 3,408,930
----------------------------------------------------------------
Southwest Higher
Education Authority
Inc. (Southern
Methodist University);
Higher Education Series
D RB
5.00%, 10/01/22 A+ A1 1,750 1,555,155
----------------------------------------------------------------
Spring Branch Independent
School District;
Limited Tax Series 2000
GO
5.75%, 02/01/24(c) AAA Aaa 1,700 1,697,824
----------------------------------------------------------------
Texas (State of) Public
Property Finance Corp.
(Mental Health and
Mental Retardation);
Series 1996 RB
6.20%, 09/01/16 BBB+ -- 965 961,053
----------------------------------------------------------------
Texas (State of);
Veteran's Land
Unlimited Tax Series
1994 GO
6.40%, 12/01/24(b) AA Aa1 2,000 2,052,060
----------------------------------------------------------------
Texas (State of)
Department of Housing
and Community Affairs
(Asmara Project);
Multifamily Housing
Series 1996 A RB
6.30%, 01/01/16 A -- 310 321,644
----------------------------------------------------------------
</TABLE>
13
<PAGE> 16
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Texas National Research
Laboratory Community
Financing Corp.
(Superconducting Super
Collider); Refunded
Series 1991 RB
7.10%, 12/01/01(d)(e) AAA Aaa $ 600 $ 631,710
----------------------------------------------------------------
Tyler Health Facilities
Development Corp.
(Mother Frances
Hospital); Hospital
Series A RB
5.63%, 07/01/13 -- Baa2 1,000 864,160
----------------------------------------------------------------
University of Texas;
Series 1999 B RB
5.70%, 08/15/20 AAA Aa1 1,000 1,007,690
----------------------------------------------------------------
Victoria (County of)
(Texas Hospital
Citizens Medical
Center); RB
6.20%, 01/01/10(c) AAA Aaa 1,000 1,050,190
----------------------------------------------------------------
Weatherford (City of)
Independent School
District; Unlimited Tax
Series 1994 GO
6.40%, 02/15/05(d)(e) NRR Aaa 900 964,071
----------------------------------------------------------------
6.40%, 02/15/12(c) -- Aaa 100 106,280
----------------------------------------------------------------
72,056,984
----------------------------------------------------------------
UTAH-1.38%
Intermountain Power
Agency (Utah Power
Supply); Series 1986 B
RB
5.00%, 07/01/16 A+ A1 1,550 1,448,165
----------------------------------------------------------------
Salt Lake (County of)
(Westminster College
Project); RB
5.75%, 10/01/27 BBB -- 1,000 936,180
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency;
Federally Insured Term
Sub. Single Family
Mortgage RB
6.30%, Sub-Series 1994
E-1, 07/01/06 AA- Aa3 240 248,585
----------------------------------------------------------------
7.15%, Sub-Series 1994
G-1, 07/01/06 AA- Aa3 135 142,376
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency; Single
Family Mortgage RB
6.05%, Series 1994 C
07/01/06 AA- Aa3 350 360,115
----------------------------------------------------------------
6.45%, Series G2
07/01/27(b) AAA Aaa 780 796,957
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency; Single
Family Mortgage
Sub-Series 2000 B-1 RB
6.00%, 07/01/10(b) AA- Aa3 1,000 1,008,860
----------------------------------------------------------------
4,941,238
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
VERMONT-0.28%
Vermont (State of)
Educational and Health
Buildings Financing
Agency (Fletcher Allen
Health); Hospital
Series 2000 A RB
6.00%, 12/01/23(c) AAA Aaa $1,000 $ 1,020,510
----------------------------------------------------------------
VIRGIN ISLAND-0.93%
Virgin Islands Public
Finance Authority;
Matching Fund Loan
Notes Series 1992 A RB
7.25%, 10/01/02(d)(e) AAA NRR 1,000 1,079,500
----------------------------------------------------------------
Virgin Islands Territory
(Hugo Insurance Claims
Fund); Special Tax Bond
Series 1991
7.75%, 10/01/01(d)(e) NRR NRR 2,155 2,262,017
----------------------------------------------------------------
3,341,517
----------------------------------------------------------------
VIRGINIA-0.65%
Covington-Alleghany
(County of) Industrial
Development Authority
(Beverly Enterprises);
Refunding Series RB
9.38%, 09/01/01(f) -- -- 30 30,449
----------------------------------------------------------------
Richmond (City of);
Public Improvement
Refunding Unlimited Tax
Series B GO
6.25%, 01/15/18 AA A1 2,000 2,056,520
----------------------------------------------------------------
Virginia (State of)
Housing Development
Authority; Commonwealth
Mortgage Series A RB
7.10%, 01/01/17 AA+ Aa1 250 258,420
----------------------------------------------------------------
2,345,389
----------------------------------------------------------------
WASHINGTON-1.98%
Clark (County of) School
District No. 117;
Unlimited Tax Series
1995 GO
6.00%, 12/01/05(d)(e) AAA Aaa 1,000 1,058,640
----------------------------------------------------------------
King (County of);
Unlimited Tax GO
5.50%, 07/01/07(d) AAA Aaa 500 522,150
----------------------------------------------------------------
King (County of);
Unlimited Tax Refunding
GO
6.50%, 12/01/11 AA+ Aaa 500 500,850
----------------------------------------------------------------
King (County of)
Washington Sewer
Authority; Series 1999
RB
5.50%, 01/01/22(c) AAA Aaa 1,000 977,810
----------------------------------------------------------------
Pend Oreille (County of)
Public Utility District
No. 1; Electric Series
B RB
6.30%, 01/01/17 A- A3 1,400 1,448,398
----------------------------------------------------------------
Washington State Public
Power Supply System
(Nuclear Project No.
1); Refunding Series A
RB
5.75%, 07/01/12(c) AAA Aaa 2,000 2,061,340
----------------------------------------------------------------
</TABLE>
14
<PAGE> 17
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WASHINGTON-(CONTINUED)
West Richland (City of);
Water & Sewer Refunding
Series RB
7.00%, 12/01/04(d)(e) AAA Aaa $ 500 $ 546,770
----------------------------------------------------------------
7,115,958
----------------------------------------------------------------
WISCONSIN-1.14%
Wisconsin Health and
Educational Facilities
Authority (Sinai
Samaritan Medical
Center); Series 1996 F
RB
5.75%, 08/15/16(c) AAA Aaa 1,500 1,516,290
----------------------------------------------------------------
Wisconsin Health and
Educational Facility
Authority (Sisters of
Sorrowful Mother);
Series 1997 A RB
5.90%, 08/15/24(c) AAA Aaa 2,500 2,499,925
----------------------------------------------------------------
Wisconsin Housing and
Economic Development
Authority; Home
Ownership Series 1994 E
RB
7.35%, 01/01/17 AA Aa2 75 78,136
----------------------------------------------------------------
4,094,351
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WYOMING-0.64%
Laramie (County of)
(Memorial Hospital
Project); Hospital
Series RB
6.70%, 05/01/12(c) AAA Aaa $ 250 $ 263,860
----------------------------------------------------------------
Natrona (County of)
Wyoming Medical Center;
RB
6.00%, 09/15/11(c) AAA Aaa 1,000 1,045,960
----------------------------------------------------------------
Sweetwater (County of)
(Idaho Power Company
Project); Refunding
Series 1996 A PCR
6.05%, 07/15/26 A A3 1,000 1,003,710
----------------------------------------------------------------
2,313,530
----------------------------------------------------------------
TOTAL INVESTMENTS (Cost
$348,120,898)-99.81% 358,349,112
----------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.19% 683,203
----------------------------------------------------------------
NET ASSETS-100.00% $359,032,315
================================================================
</TABLE>
Investment Abbreviations:
COP - Certificates of Participation
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
LOC - Letter of Credit
NRR - Not Re-Rated
PCR - Pollution Control Revenue Bonds
RB - Revenue Bonds
Sub. - Subordinate
VRD - Variable Rate Demand
GNMA - Government National Mortgage Association
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. Ratings are not covered by Independent Auditors' Report.
(b)Security subject to the alternative minimum tax.
(c)Secured by bond insurance provided by one of the following companies: Ambac
Assurance Corp., Financial Guaranty Insurance Co., Financial Security
Assurance, or MBIA Insurance Co.
(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)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.
(g)Demand security, payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined periodically.
Rate shown is the rate in effect on 07/31/00.
See Notes to Financial Statements.
15
<PAGE> 18
SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ALABAMA-1.28%
Alabama (State of)
Housing Finance
Authority; Single
Family Mortgage Series
D-2 RB
5.50%, 10/01/17(b) -- Aaa $ 970 $ 917,688
----------------------------------------------------------------
Alabama (State of) Public
School & College
Authority; Capital
Improvement Series 1999
C RB
5.75%, 07/01/17 AA Aa3 1,400 1,422,792
----------------------------------------------------------------
Courtland Industrial
Development Board
(Champion International
Corp. Project);
Refunding Environmental
Improvement Series RB
6.40%, 11/01/26(b) -- Baa1 2,315 2,257,264
----------------------------------------------------------------
4,597,744
----------------------------------------------------------------
ALASKA-0.76%
Alaska (State of) Housing
Finance Corp.;
Collateralized First
Veterans' Home Mortgage
Series A-2 RB
6.75%, 12/01/24(b) AAA Aaa 2,465 2,517,135
----------------------------------------------------------------
Alaska (State of) Housing
Finance Corp.;
Collateralized First
Veterans' Mortgage
Program Series RB
6.88%, 06/01/33 AAA Aaa 205 209,699
----------------------------------------------------------------
2,726,834
----------------------------------------------------------------
ARIZONA-1.47%
Arizona (State of)
Educational Loan
Marketing Corp.; RB
6.13%, 09/01/02(b) -- Aa2 1,900 1,939,083
----------------------------------------------------------------
Pima (County of) Unified
School District No. 10
(Amphitheater); School
Improvement Series 1992
E GO
6.50%, 07/01/05 A+ A2 3,100 3,321,278
----------------------------------------------------------------
5,260,361
----------------------------------------------------------------
ARKANSAS-0.56%
Little Rock (City of);
Capital Improvement
Series B GO
5.75%, 02/01/06 AA Aa3 2,000 2,001,240
----------------------------------------------------------------
CALIFORNIA-2.01%
Abag Financing Authority
for Non-profit Corps.
(Lytton Gardens Inc.);
Series 1999 COP
6.00%, 02/15/19 AA- -- 2,085 2,095,425
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
CALIFORNIA-(CONTINUED)
Abag Financing Authority
for Non-Profit Corps.
(Odd Fellows Home of
California); Series
1999 COP
6.00%, 08/15/24 AA- -- $1,000 $ 1,006,890
----------------------------------------------------------------
Abag Financing Authority
for Non-Profit Corps.
(Lincoln Glen Manor
Senior Citizens);
Series 2000 COP
6.10%, 02/15/25 AA- -- 1,000 1,017,370
----------------------------------------------------------------
California (State of)
Educational Facilities
Authority (Fresno
Pacific University);
Series 2000 A RB
6.05%, 03/01/11 -- Baa3 1,350 1,406,929
----------------------------------------------------------------
Foothill/Eastern Corridor
Agency (California Toll
Road Project); Senior
Lien Series A RB
6.00%, 01/01/10(d)(e) AAA Aaa 400 442,656
----------------------------------------------------------------
Sacramento (City of)
California City
Financing Authority
(Senior Convention
Center Hotel); Series
1999 A RB
6.25%, 01/01/30(f) -- -- 750 697,770
----------------------------------------------------------------
Sacramento (City of)
California Cogeneration
Authority (Procter &
Gamble Project); Series
1995 RB
7.00%, 07/01/04 BBB -- 500 537,225
----------------------------------------------------------------
7,204,265
----------------------------------------------------------------
COLORADO-1.31%
Adams (County of)
Colorado School
District No. 1;
Unlimited Tax Series
1992 A GO
6.63%, 12/01/02(d)(e) AAA Aaa 500 526,890
----------------------------------------------------------------
Colorado Health
Facilities Authority
(National Jewish
Medical and Research
Project); Hospital
Series RB
5.38%, 01/01/29 BBB -- 1,000 764,030
----------------------------------------------------------------
Colorado (State of) E-470
Public Highway
Authority; Series 2000
A RB
5.75%, 09/01/35(c) AAA Aaa 1,000 982,140
----------------------------------------------------------------
Highlands Ranch Metro
District No. 1;
Unlimited Tax Refunding
& Improvement Series A
GO
7.30%, 09/01/02(d)(e) NRR NRR 500 539,530
----------------------------------------------------------------
</TABLE>
16
<PAGE> 19
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
COLORADO-(CONTINUED)
Mesa County School
District No. 51; 1989
Series B COP
6.88%, 12/01/05(c) AAA Aaa $1,465 $ 1,524,098
----------------------------------------------------------------
Mountain Village Metro
District (San Miguel
County); Unlimited Tax
Refunding Series GO
7.95%, 12/01/02(d)(e) NRR NRR 50 54,075
----------------------------------------------------------------
Mountain Village Metro
District (San Miguel
County); Unlimited Tax
Unrefunded Balance
Series GO
7.95%, 12/01/03(f) -- -- 305 317,066
----------------------------------------------------------------
4,707,829
----------------------------------------------------------------
CONNECTICUT-2.71%
Bridgeport (City of);
Unlimited Tax Refunding
Series A GO
6.00%, 09/01/06(c) AAA Aaa 1,000 1,059,380
----------------------------------------------------------------
Connecticut (State of)
(Bradley International
Airport); Special
Obligation Parking
Series 2000 A RB
6.60%, 07/01/24(b) A -- 1,000 1,010,710
----------------------------------------------------------------
Connecticut (State of);
General Purpose Public
Improvement Series
1992-A GO
6.50%, 03/15/02(d)(e) NRR NRR 5,500 5,766,860
----------------------------------------------------------------
Connecticut (State of)
(JP Morgan Putters);
VRD Series 110 1999
4.54%, 12/15/08(g) -- VMIG-1 545 545,000
----------------------------------------------------------------
Connecticut (State of)
Housing Finance
Authority; Sub-series
1996 A-3 RB
5.95%, 05/15/17 AA Aa2 800 812,968
----------------------------------------------------------------
Connecticut (State of)
(Transportation
Infrastructure Purpose
S-1); Special Tax
Obligation VRD Series
1990 RB
4.75%, 12/01/10(g) A-1+ VMIG-1 2 2,000
----------------------------------------------------------------
Connecticut (State of)
Health Care Development
Authority (Corporate
Independent Living
Project); VRD Series
1990 (LOC-Chase
Manhatten Bank)
4.65%, 07/01/15(g) -- VMIG-1 494 494,000
----------------------------------------------------------------
9,690,918
----------------------------------------------------------------
DELAWARE-0.08%
Delaware Economic
Development Authority
(Osteopathic Hospital
Association); Series A
RB
6.75% 01/01/13(d) NRR Aaa 250 279,398
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
DISTRICT OF
COLUMBIA-0.27%
District of Columbia
(Gonzaga College High
School); Series 1999 RB
5.38%, 07/01/19(c) AAA Aaa $1,000 $ 959,230
----------------------------------------------------------------
FLORIDA-1.99%
Crossings at Fleming
Island (Community
Development District
Special Assessment);
Refunding Series 2000 B
RB
5.80%, 05/01/16(c) AAA Aaa 1,000 1,020,860
----------------------------------------------------------------
Dade (County of)
(Courthouse Center
Project); Special
Obligation Series 1995
RB
5.90%, 04/01/05(d)(e) NRR NRR 500 531,000
----------------------------------------------------------------
Escambia (County of)
(Champion International
Corp. Project); PCR
6.90%, 08/01/22(b) BBB Baa1 1,125 1,144,946
----------------------------------------------------------------
Escambia (County of)
Health Facilities
Authority (Health Care
Facility Loan-Veterans
Hospital Project);
Hospital Series 2000 RB
5.95%, 07/01/20(c) -- Aaa 1,000 1,006,980
----------------------------------------------------------------
Miami (City of) Dade
County Florida Aviation
(Miami International
Airport); Series 2000 B
RB
5.75%, 10/01/29(c) AAA Aaa 2,000 1,994,180
----------------------------------------------------------------
Miami (City of) Parking
Facilities; Series 1992
A RB
6.70%, 10/01/01(d)(e) NRR NRR 1,120 1,169,291
----------------------------------------------------------------
Plantation (City of)
Health Facilities
Authority (Covenant
Retirement Communities
Inc.); Series 1992 RB
7.75%, 12/01/02(d)(e) NRR NRR 250 272,008
----------------------------------------------------------------
7,139,265
----------------------------------------------------------------
GEORGIA-0.48%
Georgia (State of)
Housing and Finance
Authority (Home
Ownership Opportunity
Program); Series C RB
6.50%, 12/01/11 AA+ Aa2 650 674,043
----------------------------------------------------------------
Savannah (City of)
Economic Development
Authority (Hershey
Foods Corp. Project);
Refunding IDR
6.60%, 06/01/12 A+ -- 1,000 1,042,570
----------------------------------------------------------------
1,716,613
----------------------------------------------------------------
</TABLE>
17
<PAGE> 20
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
IDAHO-0.26%
Idaho Health Facilities
Authority (Elks
Rehabilitation Hospital
Project); Hospital
Series RB
5.30%, 07/15/18 BBB -- $1,150 $ 918,493
----------------------------------------------------------------
ILLINOIS-9.25%
Berwyn (City of) (Macneal
Memorial Hospital
Association Project);
Hospital Series 1991 RB
7.00%, 08/01/01(d)(e) AAA Aaa 3,250 3,386,890
----------------------------------------------------------------
Chicago (City of) Public
Building Committee
(Chicago School
Reform); Refunding
Series 1999 RB
5.25%, 12/01/15(c) AAA Aaa 1,500 1,476,585
----------------------------------------------------------------
Cook (County of);
Unlimited Tax Series
1992 B GO
5.75%, 11/15/02(d)(e) AAA Aaa 2,000 2,085,280
----------------------------------------------------------------
Freeport (City of) (Sewer
System Improvements);
Unlimited Tax Series
2000 GO
6.00%, 12/01/29(c) AAA Aaa 1,000 1,004,030
----------------------------------------------------------------
Illinois (State of);
Sales Tax Series 1991 O
RB
6.50%, 06/15/01(d)(e) AAA NRR 1,500 1,557,765
----------------------------------------------------------------
Illinois (State of)
Development Finance
Authority (CPC
International Project);
Refunding PCR
6.75%, 05/01/16 -- A2 2,500 2,578,325
----------------------------------------------------------------
Illinois (State of)
Development Finance
Authority (Adventist
Health Systems
Project); Hospital
Series 1997 A RB
6.00%, 11/15/11 AAA Aaa 2,500 2,654,300
----------------------------------------------------------------
Illinois (State of)
Educational Facilities
Authority (Midwestern
University); Series B
RB
5.50%, 05/15/18 A -- 1,000 939,510
----------------------------------------------------------------
Illinois (State of)
Educational Facilities
Authority (Northwestern
University); Adjustable
Medium Term Series RB
5.25%, 11/01/14(e) AA+ Aa1 1,000 983,140
----------------------------------------------------------------
Illinois (State of)
Educational Facilities
Authority (Shedd
Aquarium Society); RB
5.60%, 07/01/27(c) AAA Aaa 3,500 3,318,420
----------------------------------------------------------------
Illinois Health
Facilities Authority;
Revolving Fund Pooled
VRD Series 1985 D RB
(LOC-Bank One Illinois
N.A.)
4.70%, 08/01/15(g) A1 VMIG-1 300 300,000
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois Health
Facilities Authority
(Blessing Hospital);
Hospital Series 1999 A
6.00%, 11/15/19(b) AAA Aaa $1,000 $ 1,007,740
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Evangelical Hospital
Corp.); RB
6.25%, Refunding Series
1992 A 04/15/22(d)(e) NRR Aaa 1,000 1,066,710
----------------------------------------------------------------
6.25%, Series 1992 C
04/15/22(d)(e) NRR NRR 1,150 1,219,299
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Franciscan Sisters
Health Care); Series
1992 RB
6.40%, 09/01/04(d) AAA Aaa 2,000 2,122,120
----------------------------------------------------------------
Illinois Health
Facilities Authority
(Memorial Hospital);
Hospital Series 1992 RB
7.25%, 05/01/02(d)(e) NRR NRR 200 212,524
----------------------------------------------------------------
Illinois State University
(Auxiliary Facilities
System);
5.75%, Series 1993 RB
04/01/14(c) AAA Aaa 1,000 1,009,790
----------------------------------------------------------------
5.75%, Series 1991 RB
04/01/22 AA- Aa3 4,750 4,685,733
----------------------------------------------------------------
Peoria and Pekin and
Waukegan (Cities of);
GNMA Collateralized
Mortgage Series 1990 RB
7.88%, 08/01/22(b) AA -- 70 72,134
----------------------------------------------------------------
Tazewell County Community
High School District
No. 303 (Pekin);
Unlimited Tax Series
1996 GO
5.63%, 01/01/14(c) AAA Aaa 1,435 1,454,803
----------------------------------------------------------------
33,135,098
----------------------------------------------------------------
INDIANA-1.21%
Carmel Retirement Rental
Housing (Beverly
Enterprises Project);
Refunding Series RB
8.75%, 12/01/08(f) -- -- 90 95,288
----------------------------------------------------------------
East Allen (City of)
Multi-School Building
Corp.; First Mortgage
Series 2000 RB
5.75%, 01/15/15(c) AAA Aaa 735 748,472
----------------------------------------------------------------
Indiana (State of)
(Special Program);
Series 2000 A RB
5.90%, 02/01/14(c) AAA Aaa 1,000 1,032,990
----------------------------------------------------------------
Indiana (State of)
Housing Finance
Authority; Series B-1
RB
6.15%, 07/01/17 -- Aaa 150 152,721
----------------------------------------------------------------
</TABLE>
18
<PAGE> 21
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
INDIANA-(CONTINUED)
Indianapolis (City of)
(Lake Nora and Fox Club
Project); Series 1999 A
Multi-Family RB
5.90%, 10/01/19(c) -- Aaa $1,795 $ 1,780,550
----------------------------------------------------------------
Indiana Transportation
Finance Authority
(Airport Lease
Facility); Series 1992
A RB
6.25%, 11/01/02(d)(e) NRR Aaa 395 415,544
----------------------------------------------------------------
6.25%, 11/01/16 AA A1 105 107,617
----------------------------------------------------------------
4,333,182
----------------------------------------------------------------
IOWA-0.30%
Iowa Finance Authority
(Trinity Regional
Hospital Project);
Hospital Facilities
Series 1997 RB
6.00%, 07/01/12(c) AAA Aaa 1,000 1,056,960
----------------------------------------------------------------
KANSAS-0.44%
Hutchinson Health Care
Facilities (Wesley
Towers); Refunding &
Improvement Series 1999
A RB
6.25%, 11/15/19(f) -- -- 1,500 1,311,525
----------------------------------------------------------------
Newton (City of) (Newton
Healthcare Corp.);
Hospital Series A RB
7.38%, 11/15/04(d)(e) NRR NRR 250 278,987
----------------------------------------------------------------
1,590,512
----------------------------------------------------------------
KENTUCKY-1.73%
Jefferson (County of)
(Beverly Enterprises
Project); Refunding
Health Facilities
Series RB
5.88%, 05/01/08(f) -- -- 595 555,760
----------------------------------------------------------------
Kenton (County of)
Kentucky Airport Board
(Delta Airlines
Project); Special
Facilities Series 1992
A RB
7.13%, 02/01/21(b) BBB- Baa3 2,500 2,533,850
----------------------------------------------------------------
Mount Sterling (City of);
Lease Funding Series
1993 A RB
6.15%, 03/01/13 -- Aa 3,000 3,113,700
----------------------------------------------------------------
6,203,310
----------------------------------------------------------------
LOUISIANA-3.57%
Louisiana (State of)
Local Government
Environmental
Facilities and
Community Development
Authority (Capital
Projects and Equipment
Acquisition); Series
2000 A RB
6.30%, 07/01/30(c) AAA -- 2,000 2,108,940
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
LOUISIANA-(CONTINUED)
Louisiana Public
Facilities Authority
(Medical Center at New
Orleans Project); RB
6.13%, 10/15/07(c) AAA -- $2,775 $ 2,834,579
----------------------------------------------------------------
Louisiana Public
Facilities Authority
(Our Lady of Lake
Regional Hospital);
Hospital Refunding
Series C RB
6.00%, 12/01/01(d)(e) AAA Aaa 1,000 1,037,800
----------------------------------------------------------------
Louisiana Public
Facilities Authority
(Tulane University of
Louisiana); RB
6.00%, 10/01/16(c) AAA Aaa 2,500 2,569,975
----------------------------------------------------------------
New Orleans Levee
District; Trust
Receipts Series 1995 A
RB
5.95%, 11/01/07(c) AAA Aaa 1,000 1,048,190
----------------------------------------------------------------
Ouachita Parish Hospital
Service District No. 1
(Glenwood Regional
Medical Center);
Refunding Series 1996
RB
5.70%, 05/15/16(c) AAA Aaa 1,000 1,000,670
----------------------------------------------------------------
St. John Baptist Parish
(Sales Tax District);
Public Improvement
Series 1987 RB
7.60%, 01/01/08(d) NRR NRR 500 575,970
----------------------------------------------------------------
7.60%, 01/01/09(d) NRR NRR 500 584,855
----------------------------------------------------------------
West Feliciana Parish
(Gulf States
Utilities); Series A
PCR
7.50%, 05/01/15 BB+ -- 1,000 1,034,110
----------------------------------------------------------------
12,795,089
----------------------------------------------------------------
MAINE-0.64%
Maine (State of)
Education Loan
Authority; Education
Loan Series A-2 RB
6.95%, 12/01/07(b) -- A2 770 791,491
----------------------------------------------------------------
Maine (State of) Housing
Authority; Series 1999
E-1 RB
5.85%, 11/15/20 AA Aa2 1,500 1,502,010
----------------------------------------------------------------
2,293,501
----------------------------------------------------------------
MASSACHUSETTS-3.65%
Massachusetts (State of)
(Consumer Loans);
Unlimited Tax Series
1991 C GO
7.00%, 08/01/01(d)(e) NRR NRR 2,450 2,563,019
----------------------------------------------------------------
Massachusetts (State of)
Health and Education
Facilities Authority
(Lowell General
Hospital); Series 1991
A RB
8.40%, 06/01/01(d)(e) NRR NRR 3,550 3,741,381
----------------------------------------------------------------
</TABLE>
19
<PAGE> 22
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of)
Health and Education
Facilities Authority
(Winchester Hospital);
Series D RB
5.80%, 07/01/09(c) AAA -- $1,500 $ 1,555,140
----------------------------------------------------------------
Massachusetts (State of)
Industrial Finance
Agency (Beverly
Enterprises); Refunding
Series RB
8.00%, 05/01/02(f) -- -- 125 126,119
----------------------------------------------------------------
Massachusetts (State of)
Housing Finance Agency;
Single Family Housing
Series 1994 RB
6.60%, 12/01/26(b) A+ Aa3 1,890 1,933,300
----------------------------------------------------------------
Massachusetts (State of)
Municipal Wholesale
Electric Cooperative
Power Supply; System
Series 1992 A RB
6.75%, 07/01/08(c) AAA Aaa 3,000 3,170,610
----------------------------------------------------------------
13,089,569
----------------------------------------------------------------
MICHIGAN-4.10%
Detroit (City of) School
District; Unlimited Tax
Series 1992 GO
6.00%, 05/01/01(d)(e) NRR NRR 1,000 1,031,720
----------------------------------------------------------------
6.15%, 05/01/01(d)(e) NRR NRR 1,300 1,342,783
----------------------------------------------------------------
Flint (City of) Hospital
Building Authority;
Hospital Series B RB
5.38%, 07/01/18(c) A -- 1,000 916,970
----------------------------------------------------------------
Garden City Hospital
Finance Authority
(Garden City Hospital);
Hospital Refunding
Series A RB
5.63%, 09/01/10 -- Ba3 1,000 852,230
----------------------------------------------------------------
Lake Orion Community
School District;
Unlimited Tax Refunding
Series 1994 GO
7.00%, 05/01/05(d)(e) AAA Aaa 2,500 2,753,800
----------------------------------------------------------------
Lakeview Community School
District; Refunding
Unlimited Tax Series
1996 GO
5.75%, 05/01/07(d)(e) AAA Aaa 1,000 1,048,100
----------------------------------------------------------------
Lincoln Park (City of)
School District;
Unlimited Tax Series
1996 GO
6.00%, 05/01/06(d)(e) AAA Aaa 1,210 1,288,251
----------------------------------------------------------------
Michigan (State of)
Housing Development
Authority; Refunding
Rental Housing Series A
RB
6.60%, 04/01/12 AA- -- 945 983,839
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MICHIGAN-(CONTINUED)
Ypsilanti (City of)
School District;
Refunding Unlimited Tax
Series 1996 GO
5.75%, 05/01/07(d)(e) AAA Aaa $4,275 $ 4,480,627
----------------------------------------------------------------
14,698,320
----------------------------------------------------------------
MINNESOTA-0.28%
Minneapolis (City of)
(Parking Ramp Project);
Unlimited Tax Series
2000 A GO
5.90%, 12/01/20 AAA Aaa 1,000 1,017,040
----------------------------------------------------------------
MISSISSIPPI-2.57%
Mississippi (State of)
Development Board
(Panola County
Hospital); Special
Obligation Series RB
5.00%, 07/01/28 A -- 5,000 4,046,150
----------------------------------------------------------------
Mississippi Higher
Education Assistance
Corp.; Student Loan
Sub-Series 1994 C RB
7.50%, 09/01/09(b)(f) -- -- 5,000 5,162,350
----------------------------------------------------------------
9,208,500
----------------------------------------------------------------
MISSOURI-0.87%
Kansas City Industrial
Development Authority
(General Motors Corp.
Project); PCR
6.05%, 04/01/06 A A3 1,435 1,444,399
----------------------------------------------------------------
Kansas City Municipal
Assistance Corp.
(Truman Medical Center
Charitable Foundation);
Leasehold Improvement
Series 1991 A RB
7.00%, 11/01/01(d)(e) NRR NRR 605 623,483
----------------------------------------------------------------
Missouri (State of)
Environmental
Improvement and Energy
Resources Authority;
Series 1995 C PCR
5.85%, 01/01/10 -- Aaa 1,000 1,043,010
----------------------------------------------------------------
3,110,892
----------------------------------------------------------------
NEVADA-1.62%
Boulder (City of)
(Boulder City Hospital
Inc. Project); Hospital
Refunding Series RB
5.85%, 01/01/22(f) -- -- 500 412,125
----------------------------------------------------------------
Humboldt (County of)
(Sierra Pacific
Project); Refunding
Series 1987 PCR
6.55%, 10/01/13(c) AAA Aaa 3,000 3,137,700
----------------------------------------------------------------
Las Vegas (City of);
Refunding 1992 Limited
Tax GO
6.50%, 04/01/02(d)(e) AAA Aaa 1,000 1,048,370
----------------------------------------------------------------
</TABLE>
20
<PAGE> 23
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEVADA-(CONTINUED)
Reno Redevelopment
Agency; Refunding
Sub-Series A Tax
Allocation Notes
6.00%, 06/01/10 -- Baa3 $1,185 $ 1,201,258
----------------------------------------------------------------
5,799,453
----------------------------------------------------------------
NEW HAMPSHIRE-0.41%
Hudson (City of);
Unlimited Tax Series GO
5.25%, 03/15/28 -- Aa3 1,610 1,480,234
----------------------------------------------------------------
NEW JERSEY-3.01%
Hudson (County of)
Correctional Facility;
Refunding Series 1992
COP
6.60%, 12/01/21(c) AAA Aaa 1,250 1,287,462
----------------------------------------------------------------
New Jersey Economic
Development Authority
(Atlantic City Sewer
Co.); Sewer Facility
Series 1991 RB
7.25%, 12/01/11(b)(f) -- -- 1,630 1,683,969
----------------------------------------------------------------
New Jersey Economic
Development Authority
(Continental Airlines
Inc. Project);
Specialty Facilities
Series 1999 RB
6.40%, 09/15/23(b) BB Ba2 5,250 4,856,565
----------------------------------------------------------------
6.25%, 09/15/29(b) BB Ba2 1,000 891,300
----------------------------------------------------------------
New Jersey City Economic
Development Authority
(Franciscan Oaks
Project); First
Mortgage Series RB
5.70%, 10/01/17(f) -- -- 500 420,860
----------------------------------------------------------------
New Jersey Health Care
Facility Financing
Authority; Unrefunded
Balance Series 1987 C
RB
8.60%, 07/01/17(c) AAA Aaa 185 186,480
----------------------------------------------------------------
New Jersey (State of)
Turnpike Authority;
Series 2000 A RB
5.50%, 01/01/25(c) AAA Aaa 1,000 975,050
----------------------------------------------------------------
5.50%, 01/01/30(c) AAA Aaa 500 485,795
----------------------------------------------------------------
10,787,481
----------------------------------------------------------------
NEW MEXICO-1.62%
Albuquerque (City of) New
Mexico Educational
Facilities Authority
(Albuquerque Academy
Project); Education
Series 1995 RB
5.75%, 10/15/03(d)(e) NRR NRR 915 941,535
----------------------------------------------------------------
Las Cruces South Central
Solid Waste Authority;
Environmental Services
RB
5.65%, 06/01/09 -- A3 575 582,814
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW MEXICO-(CONTINUED)
Los Alamos (County of);
Utility Series A RB
6.00%, 07/01/15(c) AAA Aaa $2,000 $ 2,058,600
----------------------------------------------------------------
Santa Fe (City of);
Series 1994 A RB
6.25%, 06/01/04(d)(e) AAA Aaa 2,100 2,210,145
----------------------------------------------------------------
5,793,094
----------------------------------------------------------------
NEW YORK-11.03%
Metropolitan
Transportation
Authority; Dedicated
Tax Fund Series 2000 A
RB
5.88%, 04/01/25(c) AAA Aaa 1,500 1,510,335
----------------------------------------------------------------
New York (City of); GO
8.25%, Unlimited Tax
Series 1991 F
11/15/01(d)(e) NRR Aaa 2,000 2,126,360
----------------------------------------------------------------
7.65%, Unlimited Tax
Series 1992 F GO
02/01/02(d)(e) NRR Aaa 4,775 5,064,795
----------------------------------------------------------------
7.00%, Unlimited Tax
Series H
02/01/02(d)(e) NRR NRR 350 367,559
----------------------------------------------------------------
7.20%, Unlimited Tax
Series H
02/01/02(d)(e) NRR NRR 390 410,736
----------------------------------------------------------------
02/01/15 A- A3 110 115,130
----------------------------------------------------------------
7.70%, Unlimited Tax
Series D GO
02/01/02(d)(e) NRR Aaa 1,970 2,091,037
----------------------------------------------------------------
02/01/09 A- A3 30 31,684
----------------------------------------------------------------
7.00%, Unlimited Tax
Series C, Sub-Series
C-1 08/01/02(d)(e) NRR Aaa 1,990 2,113,181
----------------------------------------------------------------
7.38%, Unlimited Tax
Series B1
08/15/04(d)(e) NRR Aaa 500 554,330
----------------------------------------------------------------
6.25%, Unlimited Tax
Series A 08/01/17 A- A3 3,035 3,147,568
----------------------------------------------------------------
7.00%, Unlimited Tax
Series C, Sub-Series
C-1 08/01/17 A- A3 10 10,519
----------------------------------------------------------------
7.00%, Unlimited Tax
Series B 02/01/18(c) AAA Aaa 830 865,341
----------------------------------------------------------------
7.00%, Unlimited Tax
Series B
02/01/02(d)(e) AAA Aaa 170 178,662
----------------------------------------------------------------
New York (City of)
Industrial Development
Agency (The Lighthouse
Inc. Project); Series
1992 RB (LOC-Chase
Manhattan Bank)
6.50%, 07/01/02(d)(e) NRR NRR 1,500 1,582,965
----------------------------------------------------------------
</TABLE>
21
<PAGE> 24
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW YORK-(CONTINUED)
New York (City of)
Municipal Water Finance
Authority; Water &
Sewer Systems
5.75%, Series 1997 B RB
06/15/29 AA Aa3 $3,850 $ 3,822,973
----------------------------------------------------------------
5.00%, Series 1987 A RB
06/15/17 AA Aa3 1,350 1,259,253
----------------------------------------------------------------
5.50%, Series 1996 A RB
06/15/24(c) AAA Aaa 1,000 962,640
----------------------------------------------------------------
New York State Dorm
Authority (City
University System);
Series 1990 C RB
6.00%, 07/01/16 A Baa1 365 365,650
----------------------------------------------------------------
New York (State of) Dorm
Authority (State
University Educational
Facilities); Series A
RB
6.50%, 05/15/06 A A3 1,000 1,071,620
----------------------------------------------------------------
New York (State of)
Environmental
Facilities Corp.; Water
Revenue Series 1991 E
PCR
6.88%, 06/15/01(d)(e) AAA Aaa 2,300 2,398,624
----------------------------------------------------------------
6.88%, 06/15/10 AAA Aaa 1,100 1,139,908
----------------------------------------------------------------
New York (State of) Urban
Development Corp.
(Correctional Capital
Facilities); Series
1991-3 RB
7.38%, 01/01/02(d)(e) NRR Aaa 7,850 8,314,328
----------------------------------------------------------------
39,505,198
----------------------------------------------------------------
NORTH CAROLINA-1.57%
North Carolina Eastern
Municipal Power Agency;
Series A RB
6.13%, 01/01/10(c) AAA Aaa 1,500 1,626,225
----------------------------------------------------------------
North Carolina Housing
Finance Agency; Single
Family- Series II RB
6.20%, 03/01/16 AA Aa2 570 583,879
----------------------------------------------------------------
North Carolina Municipal
Power Agency (No. 1
Catawba Electric
Project);
7.25%, Refunding RB
01/01/07 BBB+ Baa1 2,890 3,141,430
----------------------------------------------------------------
6.50%, Series 1990 RB
01/01/10(d) AAA Aaa 260 283,834
----------------------------------------------------------------
5,635,368
----------------------------------------------------------------
NORTH DAKOTA-0.15%
North Dakota Housing
Finance Agency; Home
Mortgage Series B RB
5.85%, 07/01/28(b) -- Aa3 545 525,396
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OHIO-2.64%
Cleveland (City of)
Parking Facilities;
Improvement Series RB
8.00%, 09/15/02(d)(e) NRR NRR $ 500 $ 542,085
----------------------------------------------------------------
Fairfield (City of)
School District;
Unlimited Tax Series
1995 GO
6.10%, 12/01/15(c) AAA Aaa 1,000 1,031,890
----------------------------------------------------------------
Findlay (City of);
Limited Tax Series 1996
GO
5.88%, 07/01/17 AA- Aa3 1,000 1,023,320
----------------------------------------------------------------
Lake Ohio School
District; Unlimited Tax
Series 2000 GO
5.75%, 12/01/26(c) AAA Aaa 2,500 2,501,775
----------------------------------------------------------------
Mason (City of) Health
Care Facilities (MCV
Health Care
Facilities); Series
1990 RB
7.63%, 02/01/01(d)(e) AAA NRR 2,090 2,174,499
----------------------------------------------------------------
Montgomery (County of)
Ohio Hospital Authority
(Grandview Hospital &
Medical Center);
Refunding Hospital
Series RB
5.50%, 12/01/09(d)(e) NRR NRR 1,000 1,028,780
----------------------------------------------------------------
Ohio Department of
Transportation
(Panhandle Rail Line
Project); Series 1992
COP
6.50%, 04/15/12(c) AAA Aaa 1,100 1,146,398
----------------------------------------------------------------
9,448,747
----------------------------------------------------------------
OKLAHOMA-2.74%
McAlester (City of)
Public Works Authority;
Refunding and
Improvement Series 1995
RB
5.50%, 12/01/09(d)(e) AAA Aaa 975 1,016,545
----------------------------------------------------------------
Mustang Improvement
Utility Authority;
Series 1999 RB
5.70%, 10/01/19(c) -- Aaa 1,500 1,482,600
----------------------------------------------------------------
Oklahoma Development
Finance Authority (St.
John Health System);
Refunding Series 1999
RB
5.75%, 02/15/18 AA Aa3 675 663,957
----------------------------------------------------------------
5.75%, 02/15/25 AA Aa3 1,750 1,722,718
----------------------------------------------------------------
Sapula (City of)
Municipal Authority;
Capital Improvement
Series RB
5.00%, 07/01/21(c) AAA Aaa 1,000 898,180
----------------------------------------------------------------
Tulsa (City of)
Industrial Authority
(St. Johns Medical
Center Project);
Hospital Series 1994 RB
6.25%, 02/15/06(d)(e) NRR NRR 2,000 2,134,920
----------------------------------------------------------------
</TABLE>
22
<PAGE> 25
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-(CONTINUED)
Tulsa (City of)
Industrial Authority
(Tulsa Regional Medical
Center); Hospital
Series RB
7.20%, 06/01/03(d)(e) AAA NRR $ 500 $ 541,830
----------------------------------------------------------------
Tulsa Public Facilities
Authority-Capital
Improvements-Water
System; Series 1988 B
RB
6.00%, 03/01/08 A+ -- 1,305 1,352,450
----------------------------------------------------------------
9,813,200
----------------------------------------------------------------
OREGON-1.22%
Cow Creek Band Umpqua
Tribe of Indians;
Series B RB
5.10%, 07/01/12(c) AAA Aaa 1,000 987,650
----------------------------------------------------------------
Marion (County of) (Ogden
Martin Systems);
Refunding Solid Waste &
Electric Series RB
5.50%, 10/01/06(c) AAA Aaa 1,000 1,034,540
----------------------------------------------------------------
Portland (City of) Sewer
System; Series 1994 A
RB
6.20%, 06/01/04(d)(e) AAA NRR 1,200 1,270,812
----------------------------------------------------------------
6.25%, 06/01/04(d)(e) AAA NRR 1,000 1,060,770
----------------------------------------------------------------
4,353,772
----------------------------------------------------------------
PENNSYLVANIA-1.62%
Allegheny (County of)
Port Authority; Special
Revenue Transportation
Series 1999 RB
6.13% 03/01/29(c) AAA Aaa 1,000 1,020,710
----------------------------------------------------------------
Montgomery (County of)
Industrial Development
Authority (Meadowood
Corp. Project);
Refunding First
Mortgage Series A RB
10.25%, 12/01/00(d)(e) NRR NRR 100 104,201
----------------------------------------------------------------
Montgomery (County of)
Industrial Development
Authority (Pennsburg
Nursing &
Rehabilitation Center);
Series 1993 RB
7.63%, 03/31/04(d)(e) NRR Aaa 100 111,651
----------------------------------------------------------------
Pennsylvania (State of);
Unlimited Tax Third
Series GO
6.75%, 11/15/13(c) AAA Aaa 1,250 1,351,775
----------------------------------------------------------------
Pennsylvania Economic
Development Finance
Authority (Colver
Project); Resource
Recovery Series 1994 D
RB
7.05%, 12/01/10(b) BBB- -- 2,900 2,965,250
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA-(CONTINUED)
Scranton-Lackawanna
Health & Welfare
Authority (Moses Taylor
Hospital Project);
Series 1991 B RB
8.50%, 07/01/01(d)(e) AAA NRR $ 250 $ 264,498
----------------------------------------------------------------
5,818,085
----------------------------------------------------------------
PUERTO RICO-0.39%
Puerto Rico (Commonwealth
of) Electric Power
Authority; Series 1991
P RB
7.00%, 07/01/01(d)(e) AAA Aaa 1,325 1,384,585
----------------------------------------------------------------
RHODE ISLAND-0.66%
Rhode Island Depositors
Economic Protection
Corp.; Special
Obligation Series 1992
A RB
6.95%, 08/01/02(d)(e) AAA Aaa 1,250 1,328,013
----------------------------------------------------------------
Rhode Island Housing and
Mortgage Finance Corp.;
Homeownership
Opportunity Series 15 B
RB
6.00%, 10/01/04 AA+ Aa2 1,000 1,038,050
----------------------------------------------------------------
2,366,063
----------------------------------------------------------------
SOUTH CAROLINA-0.57%
Piedmont Municipal Power
Agency; Refunding
Electric Series A RB
5.75%, 01/01/24 BBB- Baa3 1,150 1,031,596
----------------------------------------------------------------
South Carolina (State of)
Jobs Economic
Development Authority
(Palmetto Health
Alliance); Hospital
Facilities Improvement
Series 2000 A RB
7.13%, 12/15/15 BBB Baa1 1,000 1,016,020
----------------------------------------------------------------
2,047,616
----------------------------------------------------------------
SOUTH DAKOTA-0.03%
South Dakota Health and
Educational Facility
Authority (Huron
Regional Medical
Center); Series 1994 RB
7.25%, 04/01/20 BBB -- 100 101,431
----------------------------------------------------------------
TENNESSEE-1.76%
Franklin Industrial
Development Board
(Landings Apartment
Project); Multifamily
Housing Series A RB
5.75%, 04/01/10(c) AAA Aaa 975 985,150
----------------------------------------------------------------
</TABLE>
23
<PAGE> 26
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TENNESSEE-(CONTINUED)
Montgomery (County of)
Health, Educational and
Housing Facilities
Board (Clarksville
Project); Refunding and
Improvement Hospital
Series RB
5.38%, 01/01/28(c) A -- $1,800 $ 1,584,954
----------------------------------------------------------------
Robertson and Sumner
(Counties of) White
House Utilities
District; Water and
Sewer Series 2000 RB
6.00%, 01/01/26 -- Aaa 1,000 1,014,420
----------------------------------------------------------------
Shelby (County of);
Unlimited Tax School
Series B GO
6.00%, 03/01/02(d)(e) NRR NRR 1,000 1,029,950
----------------------------------------------------------------
Shelby County Health,
Educational & Housing
Facilities Board (Kirby
Pines); Health Care
Facilities Series A RB
6.25%, 11/15/16(f) -- -- 1,000 880,150
----------------------------------------------------------------
Tennessee Housing
Development Agency;
Homeownership
Progressive Series Q RB
6.80%, 07/01/17 AA Aa2 770 794,840
----------------------------------------------------------------
6,289,464
----------------------------------------------------------------
TEXAS-19.67%
Allen Independent School
District; Unlimited Tax
Refunding Series 2000
GO
5.95%, 02/15/25(c) AAA Aaa 1,600 1,606,848
----------------------------------------------------------------
Arlington Independent
School District;
Unlimited Tax Series GO
5.75%, 02/15/05(d)(e) NRR Aaa 705 732,354
----------------------------------------------------------------
5.75%, 02/15/21(d) -- Aaa 295 292,870
----------------------------------------------------------------
Austin (City of); Utility
System Combined Fee
Refunding Series 1991
RB
6.50%, 05/15/01(d)(e) AAA Aaa 1,380 1,430,881
----------------------------------------------------------------
Austin Community College
District; Combined Fee
Revenue Building and
Refunding Series 1995
RB
6.10%, 02/01/05(d)(e) AAA Aaa 1,115 1,173,794
----------------------------------------------------------------
Austin Hotel Occupancy
Tax (Convention
Center); Series 1999 A
RB
5.50%, 11/15/29(c) AAA Aaa 1,425 1,347,694
----------------------------------------------------------------
Austin Hotel Occupancy
Tax; Refunding Sub Lien
1999 Series RB
5.80%, 11/15/29(c) AAA Aaa 1,000 988,790
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Bellville Independent
School District;
Unlimited Tax Series
1995 GO
6.13%, 02/01/06(d)(e) NRR Aaa $ 535 $ 567,656
----------------------------------------------------------------
6.13%, 02/01/20 NRR Aaa 295 300,755
----------------------------------------------------------------
Brazos (County of) Health
Facilities Development
Corp. (Franciscan
Services Corp.); Series
A RB
5.38%, 01/01/22(c) AAA Aaa 2,000 1,854,700
----------------------------------------------------------------
Brazos Higher Education
Loan Authority Inc.;
Refunding Series 1992
C-1 RB
6.30%, Series 1992 C-1
11/01/01(b) -- Aa 325 330,674
----------------------------------------------------------------
6.45%, Series 1992 C-1
11/01/02(b) -- Aa 1,135 1,163,523
----------------------------------------------------------------
Carrollton (City of);
Limited Tax Series 1996
GO
5.75%, 08/15/06(d)(e) NRR NRR 1,000 1,043,810
----------------------------------------------------------------
Comal (County of)
Industrial Development
Authority (The Coleman
Co., Inc. Project);
Industrial Development
Series 1980 RB
9.25%, 08/01/00(d)(e) NRR NRR 280 281,098
----------------------------------------------------------------
Comal (County of)
Independent School
District; Unlimited Tax
Refunding Series 1999
GO
5.75%, 08/01/28(c) -- Aaa 1,000 983,540
----------------------------------------------------------------
Dallas (City of);
Waterworks and Sewer
System Refunding and
Improvement Series RB
5.35%, 04/01/14 AA Aa2 2,055 2,041,005
----------------------------------------------------------------
Dallas (City of);
Waterworks and Sewer
System Series A RB
6.00%, 10/01/01(d)(e) NRR NRR 2,030 2,094,128
----------------------------------------------------------------
De Soto (City of)
Independent School
District; Refunding
Unlimited Tax Series GO
5.13%, 08/15/17(c) AAA -- 1,000 941,790
----------------------------------------------------------------
Georgetown (City of);
Utility System Series
1995 A RB
6.20%, 08/15/05(d)(e) AAA Aaa 1,500 1,590,570
----------------------------------------------------------------
Grapevine (City of);
Limited Tax Series 2000
COP
5.88%, 08/15/26(c) AAA Aaa 1,610 1,614,138
----------------------------------------------------------------
Harris County; Toll Road
Unlimited Tax GO and
Sub. Lien Refunding
Series 1991
6.75%, 08/01/14 AA Aa1 3,850 4,017,667
----------------------------------------------------------------
</TABLE>
24
<PAGE> 27
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Harris County Health
Facilities Development
Corp. (Saint Luke's
Episcopal Hospital
Project); Series 1991
RB
6.70%, 02/15/03(d)(e) AAA NRR $1,000 $ 1,047,750
----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Texas Childrens
Hospital Project);
Hospital Series 1999 A
RB
5.25%, 10/01/29 AA Aa2 2,000 1,728,600
----------------------------------------------------------------
Harris County Mental
Health and Mental
Retardation Authority;
Refunding Series 1992
RB
6.25%, 09/15/10(c) AAA Aaa 4,500 4,610,295
----------------------------------------------------------------
Houston (City of);
Limited Tax Series 1992
C GO
6.25%, 03/01/02(d)(e) NRR NRR 1,470 1,507,367
----------------------------------------------------------------
Houston (City of); Water
and Sewer System Series
1997 C RB
5.38%, 12/01/27(c) AAA Aaa 2,495 2,317,955
----------------------------------------------------------------
Hurst, Euless, Bedford,
Texas Independent
School District;
6.50%, Refunding
Unlimited Tax Series
1994 GO
08/15/04(d)(e) AAA Aaa 640 681,075
----------------------------------------------------------------
6.50%, Unrefunded
Unlimited Tax Series
1994 GO 08/15/24(c) AAA Aaa 360 369,994
----------------------------------------------------------------
Katy (City of)
Independent School
District; Limited Tax
Series 1999 GO
6.13%, 02/15/32 AAA Aaa 1,500 1,527,480
----------------------------------------------------------------
Keller (City of)
Independent School
District; Series 1994
COP
6.00%, 08/15/05(c) AAA Aaa 1,000 1,050,500
----------------------------------------------------------------
Little Elm (City of)
Independent School
District; Unlimited Tax
Refunding Series
6.00%, Series 1999 GO
08/15/35 AAA -- 2,500 2,526,000
----------------------------------------------------------------
6.13%, Series 2000 GO
08/15/35 AAA -- 1,000 1,019,920
----------------------------------------------------------------
Lockhart (City of) Tax
and Utility Systems;
Unlimited Tax Series
1996 GO
5.85%, 08/01/11(c) AAA Aaa 605 627,131
----------------------------------------------------------------
5.90%, Refunding
08/01/06(d)(e) AAA Aaa 1,100 1,159,466
----------------------------------------------------------------
Matagorda (County of)
District No. 1 (Reliant
Energy Project);
Refunding 1999 RB
5.95%, 05/01/30(b) BBB Baa1 2,250 2,006,595
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
North Central Texas
Health Facilities
Development Corp. (CC
Young Memorial
Project); Hospital
Series RB
5.38%, 02/15/25(c) A -- $1,000 $ 907,940
----------------------------------------------------------------
Northside Independent
School District;
Unlimited Tax Series
1999 A GO
5.50%, 08/15/24 AAA Aaa 1,000 959,990
----------------------------------------------------------------
North Texas Higher
Education Authority
Inc.; Student Loan RB
6.10%, Series 1993 C
04/01/08(b) -- Aa 1,000 1,017,950
----------------------------------------------------------------
6.30%, Series 1993 D
04/01/09(b) -- A 500 507,690
----------------------------------------------------------------
Plano (City of); Limited
Tax Series 2000 GO
5.88%, 09/01/19 AAA Aaa 850 862,580
----------------------------------------------------------------
Plano (City of)
Independent School
District; Unlimited Tax
Series 1991 B GO
5.63%, 02/15/01(d)(e) AAA Aaa 2,500 2,518,350
----------------------------------------------------------------
Richardson (City of);
Hotel Occupancy Limited
Tax Series 2000 A COP
5.75%, 12/15/21(c) AAA Aaa 2,000 1,985,560
----------------------------------------------------------------
Southwest Higher
Education Authority
Inc. (Southern
Methodist University);
Higher Education Series
D RB
5.00%, 10/01/22 A+ A1 1,750 1,528,625
----------------------------------------------------------------
Spring Branch Independent
School District;
Limited Tax Series 2000
GO
5.75%, 02/01/24(c) AAA Aaa 1,700 1,674,058
----------------------------------------------------------------
Tarrant County Texas
Water Control and
Improvement District
No. 1; Refunding Series
1993 RB
5.20%, 03/01/10(c) AAA Aaa 2,000 2,000,840
----------------------------------------------------------------
Texas (State of) Public
Property Finance Corp.
(Mental Health and
Mental Retardation);
Series 1996 RB
6.20%, 09/01/16 BBB+ -- 965 954,250
----------------------------------------------------------------
Texas (State of);
Veteran's Land
Unlimited Tax Series
1994 GO
6.40%, 12/01/24(b) AA Aa1 2,000 2,034,260
----------------------------------------------------------------
Texas (State of)
Department of Housing
and Community Affairs
(Asmara Project);
Multifamily Housing
Series 1996 A RB
6.30%, 01/01/16 A -- 310 319,223
----------------------------------------------------------------
</TABLE>
25
<PAGE> 28
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Texas National Research
Laboratory Community
Financing Corp.
(Superconducting Super
Collider); Refunded
Series 1991 RB
7.10%, 12/01/01(d)(e) AAA Aaa $ 600 $ 631,962
----------------------------------------------------------------
Tyler Health Facilities
Development Corp.
(Mother Frances
Hospital); Hospital
Series A RB
5.63%, 07/01/13 -- Baa2 1,000 872,020
----------------------------------------------------------------
University of Texas;
Series 1999 B RB
5.70%, 08/15/20 AAA Aa1 1,000 996,380
----------------------------------------------------------------
Victoria (County of)
(Texas Hospital
Citizens Medical
Center); RB
6.20%, 01/01/10(c) AAA Aaa 1,000 1,044,770
----------------------------------------------------------------
Weatherford (City of)
Independent School
District; Unlimited Tax
Series 1994 GO
6.40%, 02/15/05(d)(e) NRR Aaa 900 958,842
----------------------------------------------------------------
6.40%, 02/15/12(c) -- Aaa 100 105,608
----------------------------------------------------------------
70,459,311
----------------------------------------------------------------
UTAH-1.37%
Intermountain Power
Agency (Utah Power
Supply); Series 1986 B
RB
5.00%, 07/01/16 A+ A1 1,550 1,435,610
----------------------------------------------------------------
Salt Lake (County of)
(Westminster College
Project); RB
5.75%, 10/01/27 BBB -- 1,000 941,070
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency;
Federally Insured Term
Sub. Single Family
Mortgage RB
6.30%, Sub-Series 1994
E-1, 07/01/06 AA- Aa3 240 247,337
----------------------------------------------------------------
7.15%, Sub-Series 1994
G-1, 07/01/06 AA- Aa3 135 141,812
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency; Single
Family Mortgage RB
6.05%, Series 1994 C
07/01/06 AA- Aa3 350 358,271
----------------------------------------------------------------
6.45%, Series G2
07/01/27(b) AAA Aaa 780 791,996
----------------------------------------------------------------
Utah (State of) Housing
Finance Agency; Single
Family Mortgage
Sub-Series 2000 B-1 RB
6.00%, 07/01/10(b) AA- Aa3 1,000 1,003,700
----------------------------------------------------------------
4,919,796
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
VERMONT-0.28%
Vermont (State of)
Educational and Health
Buildings Financing
Agency (Fletcher Allen
Health); Hospital
Series 2000 A RB
6.00%, 12/01/23(c) AAA Aaa $1,000 $ 1,009,800
----------------------------------------------------------------
VIRGIN ISLANDS-0.93%
Virgin Islands Public
Finance Authority;
Matching Fund Loan
Notes Series 1992 A RB
7.25%, 10/01/02(d)(e) AAA NRR 1,000 1,078,560
----------------------------------------------------------------
Virgin Islands Territory
(Hugo Insurance Claims
Fund); Special Tax Bond
Series 1991
7.75%, 10/01/01(d)(e) NRR NRR 2,155 2,266,004
----------------------------------------------------------------
3,344,564
----------------------------------------------------------------
VIRGINIA-0.66%
Covington-Alleghany
(County of) Industrial
Development Authority
(Beverly Enterprises);
Refunding Series RB
9.38%, 09/01/01(f) -- -- 30 30,459
----------------------------------------------------------------
Richmond (City of);
Public Improvement
Refunding Unlimited Tax
Series B GO
6.25%, 01/15/18 AA A1 2,000 2,058,800
----------------------------------------------------------------
Virginia (State of)
Housing Development
Authority; Commonwealth
Mortgage Series A RB
7.10%, 01/01/17 AA+ Aa1 250 257,663
----------------------------------------------------------------
2,346,922
----------------------------------------------------------------
WASHINGTON-1.97%
Clark (County of) School
District No. 117;
Unlimited Tax Series
1995 GO
6.00%, 12/01/05(d)(e) AAA Aaa 1,000 1,049,190
----------------------------------------------------------------
King (County of);
Unlimited Tax GO
5.50%, 07/01/07(d) AAA Aaa 500 515,775
----------------------------------------------------------------
King (County of);
Unlimited Tax Refunding
GO
6.50%, 12/01/11 AA+ Aaa 500 500,575
----------------------------------------------------------------
King (County of)
Washington Sewer
Authority; Series 1999
RB
5.50%, 01/01/22(c) AAA Aaa 1,000 961,040
----------------------------------------------------------------
Pend Oreille (County of)
Public Utility District
No. 1; Electric Series
B RB
6.30%, 01/01/17 A- A3 1,400 1,437,730
----------------------------------------------------------------
</TABLE>
26
<PAGE> 29
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WASHINGTON-(CONTINUED)
Washington State Public
Power Supply System
(Nuclear Project No.
1); Refunding Series A
RB
5.75%, 07/01/12(c) AAA Aaa $2,000 $ 2,044,900
----------------------------------------------------------------
West Richland (City of);
Water & Sewer Refunding
Series RB
7.00%, 12/01/04(d)(e) AAA Aaa 500 542,955
----------------------------------------------------------------
7,052,165
----------------------------------------------------------------
WISCONSIN-1.13%
Wisconsin Health and
Educational Facilities
Authority (Sinai
Samaritan Medical
Center); Series 1996 F
RB
5.75%, 08/15/16(c) AAA Aaa 1,500 1,505,685
----------------------------------------------------------------
Wisconsin Health and
Educational Facility
Authority (Sisters of
Sorrowful Mother);
Series 1997 A RB
5.90%, 08/15/24(c) AAA Aaa 2,500 2,458,775
----------------------------------------------------------------
Wisconsin Housing and
Economic Development
Authority; Home
Ownership Series 1994 E
RB
7.35%, 01/01/17 AA Aa2 75 78,130
----------------------------------------------------------------
4,042,590
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATINGS(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WYOMING-0.93%
Campbell (County of)
School District No. 1
(Gillette); Unlimited
Tax Series GO
5.35%, 06/01/04 AAA Aaa $1,000 $ 1,021,100
----------------------------------------------------------------
Laramie (County of)
(Memorial Hospital
Project); Hospital
Series RB
6.70%, 05/01/12(c) AAA Aaa 250 263,410
----------------------------------------------------------------
Natrona (County of)
Wyoming Medical Center;
RB
6.00%, 09/15/11(c) AAA Aaa 1,000 1,039,840
----------------------------------------------------------------
Sweetwater (County of)
(Idaho Power Company
Project); Refunding
Series 1996 A PCR
6.05%, 07/15/26 A A3 1,000 997,380
----------------------------------------------------------------
3,321,730
----------------------------------------------------------------
TOTAL INVESTMENTS (Cost
$349,522,693)-99.77% 357,380,228
----------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.23% 836,066
----------------------------------------------------------------
NET ASSETS-100.00% $358,216,294
================================================================
</TABLE>
Investment Abbreviations:
COP - Certificates of Participation
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
LOC - Letter of Credit
NRR - Not Re-Rated
PCR - Pollution Control Revenue Bonds
RB - Revenue Bonds
Sub. - Subordinate
VRD - Variable Rate Demand
GNMA - Government National Mortgage Association
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 provided by one of the following companies: Ambac
Assurance Corp., Financial Guaranty Insurance Co., Financial Security
Assurance, or MBIA Insurance Co.
(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)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.
(g)Demand security, payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined periodically.
Rate shown is the rate in effect on 06/30/00.
See Notes to Financial Statements.
27
<PAGE> 30
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000
2000 (UNAUDITED)
------------ ------------
<S> <C> <C>
ASSETS:
Investments, at market value (cost $348,120,898 and
$349,522,693, respectively) $358,349,112 $357,380,228
-----------------------------------------------------------------------------------------
Receivables for:
Investments sold 1,397,681 2,004,449
-----------------------------------------------------------------------------------------
Fund shares sold 606,957 119,660
-----------------------------------------------------------------------------------------
Interest 6,030,296 6,474,820
-----------------------------------------------------------------------------------------
Investment for deferred compensation plan 65,917 64,411
-----------------------------------------------------------------------------------------
Other assets 6,031 31,269
-----------------------------------------------------------------------------------------
Total assets 366,455,994 366,074,837
-----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 2,012,046 6,374,572
-----------------------------------------------------------------------------------------
Fund shares reacquired 1,410,228 266,001
-----------------------------------------------------------------------------------------
Amount due custodian 2,921,166 --
-----------------------------------------------------------------------------------------
Dividends 685,601 681,667
-----------------------------------------------------------------------------------------
Deferred compensation plan 65,917 64,411
-----------------------------------------------------------------------------------------
Accrued advisory fees 135,628 133,408
-----------------------------------------------------------------------------------------
Accrued administrative services fees 7,740 7,472
-----------------------------------------------------------------------------------------
Accrued distribution fees 140,939 271,699
-----------------------------------------------------------------------------------------
Accrued trustees' fees 627 6,158
-----------------------------------------------------------------------------------------
Accrued transfer agent fees 14,203 7,107
-----------------------------------------------------------------------------------------
Accrued operating expenses 29,584 46,048
-----------------------------------------------------------------------------------------
Total liabilities 7,423,679 7,858,543
-----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $359,032,315 $358,216,294
=========================================================================================
NET ASSETS:
Class A $283,416,443 $283,568,571
=========================================================================================
Class B $ 67,363,390 $ 66,576,044
=========================================================================================
Class C $ 8,252,482 $ 8,071,679
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 36,187,747 36,453,574
=========================================================================================
Class B 8,588,708 8,546,095
=========================================================================================
Class C 1,053,882 1,037,788
=========================================================================================
Class A:
Net asset value and redemption price per share $ 7.83 $ 7.78
-----------------------------------------------------------------------------------------
Offering price per share:
(Net asset value of divided by 95.25%) $ 8.22 $ 8.17
=========================================================================================
Class B:
Net asset value and offering price per share $ 7.84 $ 7.79
=========================================================================================
Class C:
Net asset value and offering price per share $ 7.83 $ 7.78
=========================================================================================
</TABLE>
See Notes to Financial Statements.
28
<PAGE> 31
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS
SEVEN MONTHS ENDED YEAR
ENDED JUNE 30, ENDED
JULY 31, 2000 DECEMBER 31,
2000 (UNAUDITED) 1999
-------------- ----------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $12,909,783 $11,069,501 $ 23,860,069
-----------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 953,308 817,680 1,830,490
-----------------------------------------------------------------------------------------------------------
Administrative services fee 53,056 45,316 91,647
-----------------------------------------------------------------------------------------------------------
Custodian fees 8,867 6,935 19,729
-----------------------------------------------------------------------------------------------------------
Distribution fees - Class A 412,647 352,748 805,244
-----------------------------------------------------------------------------------------------------------
Distribution fees - Class B 392,471 335,861 753,522
-----------------------------------------------------------------------------------------------------------
Distribution fees - Class C 49,226 42,594 101,726
-----------------------------------------------------------------------------------------------------------
Transfer agent fees - Class A 84,511 67,215 160,531
-----------------------------------------------------------------------------------------------------------
Transfer agent fees - Class B 23,789 19,398 46,049
-----------------------------------------------------------------------------------------------------------
Transfer agent fees - Class C 2,984 2,458 5,831
-----------------------------------------------------------------------------------------------------------
Trustees' fees 4,777 4,095 9,669
-----------------------------------------------------------------------------------------------------------
Other 129,335 113,991 232,903
-----------------------------------------------------------------------------------------------------------
Total expenses 2,114,971 1,808,291 4,057,341
-----------------------------------------------------------------------------------------------------------
Less: Expenses paid indirectly (2,421) (1,949) (4,633)
-----------------------------------------------------------------------------------------------------------
Net expenses 2,112,550 1,806,342 4,052,708
-----------------------------------------------------------------------------------------------------------
Net investment income 10,797,233 9,263,159 19,807,361
-----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES
Net realized gain (loss) from investment securities (6,118,133) (6,145,848) (3,713,985)
-----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investment
securities 9,924,682 7,554,003 (26,831,659)
-----------------------------------------------------------------------------------------------------------
Net gain (loss) on investment securities 3,806,549 1,408,155 (30,545,644)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $14,603,782 $10,671,314 $(10,738,283)
===========================================================================================================
</TABLE>
See Notes to Financial Statements.
29
<PAGE> 32
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
SEVEN MONTHS ENDED
ENDED JUNE 30, YEAR ENDED YEAR ENDED
JULY 31, 2000 DECEMBER 31, DECEMBER 31,
2000 (UNAUDITED) 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $10,797,233 $ 9,263,159 $19,807,361 $ 18,756,162
-----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,118,133) (6,145,848) (3,713,985) 595,427
-----------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities 9,924,682 7,554,003 (26,831,659) (197,391)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 14,603,782 10,671,314 (10,738,283) 19,154,198
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (8,732,079) (7,501,193) (16,158,034) (16,134,077)
-----------------------------------------------------------------------------------------------------------------------
Class B (1,770,019) (1,522,371) (3,218,044) (2,410,612)
-----------------------------------------------------------------------------------------------------------------------
Class C (222,272) (193,241) (435,134) (214,027)
-----------------------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income:
Class A -- -- (288,606) (87,502)
-----------------------------------------------------------------------------------------------------------------------
Class B -- -- (67,461) (15,369)
-----------------------------------------------------------------------------------------------------------------------
Class C -- -- (9,104) (1,355)
-----------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A (14,365,926) (12,294,815) (8,643,725) 8,923,504
-----------------------------------------------------------------------------------------------------------------------
Class B (5,621,856) (5,955,475) 5,334,838 25,558,113
-----------------------------------------------------------------------------------------------------------------------
Class C (1,486,944) (1,615,554) 857,965 8,741,537
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (17,595,314) (18,411,335) (33,365,588) 43,514,410
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 376,627,629 376,627,629 409,993,217 366,478,807
-----------------------------------------------------------------------------------------------------------------------
End of year $359,032,315 $358,216,294 $376,627,629 $409,993,217
=======================================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $359,527,570 $361,136,452 $381,002,296 $383,815,745
-----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (7,534) (34,043) (80,397) (73,902)
-----------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (10,715,935) (10,743,650) (4,597,802) (883,817)
-----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 10,228,214 7,857,535 303,532 27,135,191
-----------------------------------------------------------------------------------------------------------------------
$359,032,315 $358,216,294 $376,627,629 $409,993,217
=======================================================================================================================
</TABLE>
See Notes to Financial Statements.
30
<PAGE> 33
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Municipal Bond Fund (the "Fund") is a series portfolio of AIM Investment
Securities Funds (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 seven
separate portfolios, each having an unlimited number of shares of beneficial
interest. Prior to June 1, 2000 the Fund was organized as a series portfolio of
AIM Funds Group. At a meeting held on February 3, 2000, the Board of Trustees of
AIM Funds Group approved an Agreement and Plan of Reorganization (the
"Reorganization") which reorganized the Fund as a series portfolio of the Trust.
Shareholders of the Fund approved the Reorganization at a meeting held on May
31, 2000. Pursuant to the Reorganization, the Fund's fiscal year-end was changed
from December 31 to July 31. This report includes financial information for the
period ended July 31, 2000 (seven months), the six months ended June 30, 2000
and the year ended December 31, 1999. Financial information for the six months
ended June 30, 2000 is unaudited. The Fund currently offers three different
classes of shares: Class A shares, Class B shares and Class C shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Matters affecting each
portfolio or class will be 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 investment objective is to achieve a high
level of current income exempt from federal income taxes, consistent with the
preservation of principal.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. Security Valuations -- Portfolio securities are valued on the basis of prices
provided by an independent 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 and Investment Income -- 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 on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- It is the policy of the Fund to declare dividends from net
investment income daily and pay monthly. Distributions from net realized
capital gains, if any, are generally paid annually and recorded on
ex-dividend date. The Fund may elect to use a portion of the proceeds from
redemptions as distributions for federal income tax purposes.
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 $10,715,935 which may be
carried forward to offset future taxable gains, if any, which expires in
varying increments, if not previously utilized, in the year 2008.
E. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
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 investment advisory agreement,
the Fund pays an advisory fee to AIM at an annual rate of 0.50% on the first
$200 million of the Fund's average daily net assets, plus 0.40% on the next $300
million of the Fund's average daily net assets, plus 0.35% on the next $500
million of the Fund's average daily net assets, plus 0.30% on the Fund's average
daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to
31
<PAGE> 34
the Fund. For the seven-month period ended July 31, 2000, the six months ended
June 30, 2000 and the year ended December 31, 1999, AIM was paid $53,056,
$45,316 and $91,647, respectively, for such services.
The Fund, pursuant to a transfer agency 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. For the seven-month period ended July 31,
2000, the six months ended June 30, 2000 and the year ended December 31, 1999,
AFS was paid $74,735, $64,678 and $138,338, respectively, 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, Class B and Class C 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, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.25% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the 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. For the seven-month period ended
July 31, 2000, the Class A, Class B and Class C shares paid AIM Distributors
$412,647, $392,471, and $49,226, respectively, as compensation under the Plans.
For the six months ended June 30, 2000, the Class A, Class B and Class C shares
paid AIM Distributors $352,748, $335,861 and $42,594, respectively, as
compensation under the Plans. For the year ended December 31, 1999, the Class A,
Class B and Class C shares paid AIM Distributors $805,244, $753,522, and
$101,726, respectively, as compensation under the Plan.
AIM Distributors received commissions of $33,406, $30,129 and $97,187 from
sales of the Class A shares of the Fund during the seven-month period ended July
31, 2000, the six months ended June 30, 2000 and the year ended December 31,
1999, respectively. 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 seven-month period ended July 31, 2000, the six months ended
June 30, 2000 and the year ended December 31, 1999, AIM Distributors received
$31,486, $30,740 and $123,118, respectively, in contingent deferred sales
charges imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
During the seven-month period ended July 31, 2000, the six months ended June
30, 2000 and the year ended December 31, 1999, the Fund paid legal fees of
$2,577, $1,986 and $4,178, respectively, for services rendered by Kramer, Levin,
Naftalis & Frankel LLP as counsel to the Trust's trustees. A member of that firm
is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the seven-month period ended July 31, 2000, the six months ended June 30,
2000 and the year ended December 31, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $2,421, $1,949 and
$4,633, respectively, under expense offset arrangements which resulted in a
reduction of the Fund's total expenses of $2,421, $1,949 and $4,633, for the
seven-month period ended July 31, 2000, the six months ended June 30, 2000 and
the year ended December 31, 1999, respectively.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, in mutual fund shares in accordance with a deferred compensation plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the seven months ended July
31, 2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period. During
the year ended December 31, 1999, the Fund borrowed minimal amounts under the
line of credit agreement. Interest expense for the Fund for the year ended
December 31, 1999 was $461.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the seven-month period ended July 31, 2000
was $64,555,118 and $82,559,573, respectively, and during the six months ended
June 30, 2000 was $55,967,185 and $73,884,663, respectively. The amount of
unrealized appreciation (depreciation) of investment securities, for tax
purposes, is as follows:
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000
2000 (UNAUDITED)
----------- -----------
<S> <C> <C>
Aggregate unrealized appreciation
of investment securities $13,446,655 $11,919,899
------------------------------------------------------------
Aggregate unrealized
(depreciation) of investment
securities (3,218,441) (4,062,364)
------------------------------------------------------------
Net unrealized appreciation of
investment securities $10,228,214 $ 7,857,535
============================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
32
<PAGE> 35
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the seven-month period ended July 31, 2000,
the six months ended June 30, 2000 and the years ended December 31, 1999 and
1998 were as follows:
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000 DECEMBER 31,
2000 (UNAUDITED) 1999
-------------------------- -------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Sold:
Class A 2,678,233 $ 20,753,046 2,271,873 $ 17,572,470 10,431,994 $ 85,813,744
--------------------------------------------------------------------------------------------------------------------
Class B 1,323,354 10,242,284 1,147,928 8,868,397 3,700,766 30,098,258
--------------------------------------------------------------------------------------------------------------------
Class C 1,196,822 9,264,086 969,742 7,487,360 851,082 6,903,087
--------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Class A 600,193 4,643,890 518,640 4,005,344 1,102,784 8,919,262
--------------------------------------------------------------------------------------------------------------------
Class B 149,624 1,159,114 129,640 1,002,438 264,015 2,137,326
--------------------------------------------------------------------------------------------------------------------
Class C 17,331 134,046 15,147 116,951 31,375 254,074
--------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (5,145,569) (39,762,862) (4,391,829) (33,872,629) (12,703,387) (103,376,731)
--------------------------------------------------------------------------------------------------------------------
Class B (2,201,952) (17,023,254) (2,049,155) (15,826,310) (3,338,570) (26,900,746)
--------------------------------------------------------------------------------------------------------------------
Class C (1,407,096) (10,885,076) (1,193,926) (9,219,865) (780,440) (6,299,196)
--------------------------------------------------------------------------------------------------------------------
(2,789,060) $(21,474,726) (2,581,940) $(19,865,844) 440,381 $ 2,450,922
====================================================================================================================
<CAPTION>
DECEMBER 31,
1998
---------------------------
SHARES AMOUNT
------------ ------------
<S> <C> <C>
Sold:
Class A 12,409,366 $103,769,637
----------------------------------------------------------
Class B 5,306,019 44,489,342
----------------------------------------------------------
Class C 1,294,847 10,824,561
----------------------------------------------------------
Issued as reinvestment of
dividends:
Class A 1,031,670 8,611,126
----------------------------------------------------------
Class B 183,219 1,532,455
----------------------------------------------------------
Class C 16,529 138,044
----------------------------------------------------------
Reacquired:
Class A (12,388,704) (103,457,259)
----------------------------------------------------------
Class B (2,444,886) (20,463,684)
----------------------------------------------------------
Class C (265,347) (2,221,068)
----------------------------------------------------------
5,142,713 $ 43,223,154
==========================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED
SEVEN MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31,
JULY 31, 2000 ----------------------------------------------------
2000(A) (UNAUDITED) 1999 1998 1997 1996 1995
------------------ ---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 7.74 $ 7.74 $ 8.35 $ 8.34 $ 8.19 $ 8.31 $ 7.78
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.24 0.20 0.41 0.42 0.42 0.43 0.43
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 0.09 0.04 (0.61) 0.01 0.16 (0.12) 0.56
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations 0.33 0.24 (0.20) 0.43 0.58 0.31 0.99
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment
income (0.24) (0.20) (0.41) (0.42) (0.43) (0.43) (0.43)
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Return of capital -- -- -- -- -- -- (0.03)
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Total distributions (0.24) (0.20) (0.41) (0.42) (0.43) (0.43) (0.46)
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period 7.83 $ 7.78 $ 7.74 $ 8.35 $ 8.34 $ 8.19 $ 8.31
=================================== ======== ======== ======== ======== ======== ======== ========
Total return(b) 4.32% 3.20% (2.45)% 5.28% 7.27% 3.90% 13.05%
=================================== ======== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $283,416 $283,569 $294,720 $327,705 $318,469 $278,812 $284,803
=================================== ======== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net
assets 0.85%(c) 0.85%(c) 0.84% 0.82% 0.90% 0.80% 0.88%
=================================== ======== ======== ======== ======== ======== ======== ========
Ratio of net investment income to
average net assets 5.32%(c) 5.34%(c) 5.01% 5.00% 5.14% 5.29% 5.26%
----------------------------------- -------- -------- -------- -------- -------- -------- --------
Portfolio turnover rate 18% 16% 28% 19% 24% 26% 36%
=================================== ======== ======== ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average daily net assets of $283,622,551
and $283,749,076 for July 31, 2000 and June 30, 2000, respectively.
33
<PAGE> 36
NOTE 8-FINANCIAL HIGHLIGHTS-(continued)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------------
SEVEN MONTHS SIX MONTHS ENDED
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
JULY 31, 2000 ----------------------------------------------
2000(A) (UNAUDITED) 1999 1998 1997 1996 1995
------------ ---------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.75 $ 7.75 $ 8.37 $ 8.36 $ 8.19 $ 8.31 $ 7.78
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.21 0.18 0.35 0.36 0.36 0.37 0.39
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Net gains (losses) on securities (both
realized and unrealized) 0.08 0.03 (0.62) 0.01 0.17 (0.13) 0.54
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 0.29 0.21 (0.27) 0.37 0.53 0.24 0.93
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.20) (0.17) (0.35) (0.36) (0.36) (0.36) (0.37)
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Return of capital -- -- -- -- -- -- (0.03)
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.20) (0.17) (0.35) (0.36) (0.36) (0.36) (0.40)
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 7.84 $ 7.79 $ 7.75 $ 8.37 $ 8.36 $ 8.19 $ 8.31
============================================== ======= ======= ======= ======= ======= ======= =======
Total return(b) 3.84% 2.80% (3.28)% 4.48% 6.59% 2.99% 12.14%
============================================== ======= ======= ======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $67,363 $66,576 $72,256 $72,723 $47,185 $33,770 $21,478
============================================== ======= ======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets 1.61%(c) 1.61%(c) 1.59% 1.57% 1.66% 1.61% 1.68%(d)
---------------------------------------------- ------- ------- ------- ------- ------- ------- -------
Ratio of net investment income to average net
assets 4.56%(c) 4.58%(c) 4.26% 4.25% 4.38% 4.49% 4.46%
============================================== ======= ======= ======= ======= ======= ======= =======
Portfolio turnover rate 18% 16% 28% 19% 24% 26% 36%
============================================== ======= ======= ======= ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares method.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average daily net assets of $67,438,640
and $67,541,243 for July 31, 2000 and June 30, 2000, respectively.
(d) After fee waivers and/or expense reimbursements. The ratio of expenses to
average daily net assets prior to fee waivers and/or expense reimbursements
was 1.77% for 1995.
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------------------
SEVEN MONTHS SIX MONTHS ENDED YEAR ENDED AUGUST 4, 1997
ENDED JUNE 30, DECEMBER 31, (DATE SALES COMMENCED)
JULY 31, 2000 --------------- TO DECEMBER 31,
2000(A) (UNAUDITED) 1999 1998 1997
------------ ---------------- ------ ------ ----------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.74 $ 7.74 $ 8.35 $ 8.35 $8.30
----------------------------------------------------- ------ ------ ------ ------ -----
Income from investment operations:
Net investment income 0.21 0.18 0.35 0.36 0.15
----------------------------------------------------- ------ ------ ------ ------ -----
Net gains (losses) on securities (both realized and
unrealized) 0.08 0.03 (0.61) -- 0.04
----------------------------------------------------- ------ ------ ------ ------ -----
Total from investment operations 0.29 0.21 (0.26) 0.36 0.19
----------------------------------------------------- ------ ------ ------ ------ -----
Less distributions from net investment income (0.20) (0.17) (0.35) (0.36) (0.14)
----------------------------------------------------- ------ ------ ------ ------ -----
Net asset value, end of period $ 7.83 $ 7.78 $ 7.74 $ 8.35 $8.35
===================================================== ====== ====== ====== ====== =====
Total return(b) 3.85% 2.80% (3.16)% 4.36% 2.36%
===================================================== ====== ====== ====== ====== =====
Ratios/supplemental data:
Net assets, end of period (000s omitted) $8,252 $8,072 $9,652 $9,565 $ 825
===================================================== ====== ====== ====== ====== =====
Ratio of expenses to average net assets 1.61%(c) 1.61%(c) 1.59% 1.57% 1.67%(d)
----------------------------------------------------- ------ ------ ------ ------ -----
Ratio of net investment income to average net assets 4.56%(c) 4.58%(c) 4.26% 4.25% 4.37%(d)
===================================================== ====== ====== ====== ====== =====
Portfolio turnover rate 18% 16% 28% 19% 24%
===================================================== ====== ====== ====== ====== =====
</TABLE>
(a) Calculated using average shares method.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average daily net assets of $8,458,483
and $8,565,676 for July 31, 2000 and June 30, 2000, respectively.
(d) Annualized.
34
<PAGE> 37
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of
AIM Municipal Bond Fund:
We have audited the accompanying statement of assets and liabilities of AIM
Municipal Bond Fund (a portfolio of AIM Investment Securities Funds), including
the schedule of investments, as of July 31, 2000, and the related statement of
operations for the seven months ended July 31, 2000 and the year ended December
31, 1999, the statement of changes in net assets for the seven months ended July
31, 2000 and the two-years ended December 31, 1999, and the financial highlights
for the seven months ended July 31, 2000 and for each of the years in the
five-year period ended December 31, 1999. 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 auditing standards generally
accepted in the United States of America. 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 July 31, 2000, 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 AIM
Municipal Bond Fund as of July 31, 2000, the results of its operations for the
seven months ended July 31, 2000 and the year ended December 31, 1999, the
changes in its net assets for the seven months ended July 31, 2000 and the
two-years ended December 31, 1999, and the financial highlights for the seven
months ended July 31, 2000 and for each of the years in the five-year period
ended December 31, 1999, in conformity with accounting principles generally
accepted in the United States of America.
/s/ KPMG
September 1, 2000
Houston, Texas
35
<PAGE> 38
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Municipal Bond Fund, a portfolio of AIM
Funds Group, a Delaware business trust (the "Trust"), reorganized as AIM
Municipal Bond Fund a new series portfolio of AIM Investment Securities Fund,
was held on May 3, 2000. The meeting was held for the following purposes:
(1) To elect Trustees as follows: Charles T. Bauer, Bruce L. Crockett, Owen Daly
II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham,
Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2) To approve an Agreement and Plan of Reorganization which provides for the
reorganization of the Fund into a new series portfolio of AIM Investment
Securities Funds having the same investment objective and policies.
(3) To approve a new Master Investment Advisory Agreement for AIM Municipal Bond
Fund (the "Fund").
(4) To approve changing the fundamental investment restrictions of the Fund.
(5) To approve changing the investment objective of the Fund and making it
non-fundamental.
(6) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
TRUSTEES/MATTER VOTES FOR WITHHELD
--------------- ------------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 1,514,464,534 46,493,668
Bruce L. Crockett........................................... 1,516,486,806 44,471,396
Owen Daly II................................................ 1,515,115,325 45,842,877
Edward K. Dunn, Jr. ........................................ 1,516,300,879 44,657,323
Jack M. Fields.............................................. 1,516,328,985 44,629,217
Carl Frischling............................................. 1,515,733,560 45,224,642
Robert H. Graham............................................ 1,516,470,809 44,487,393
Prema Mathai-Davis.......................................... 1,515,583,756 45,374,446
Lewis F. Pennock............................................ 1,516,458,889 44,499,313
Louis S. Sklar.............................................. 1,516,220,167 44,738,035
</TABLE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
VOTES FOR AGAINST ABSTENTIONS
------------- ---------- -----------
<S> <C> <C> <C> <C>
(2) Approval of an Agreement and Plan of Reorganization which
provides for the reorganization of the Fund into a new
series portfolio of AIM Investment Securities Funds having
the same investment objective and policies.................. 26,635,209 394,555 6,366,642*
(3) Approval of a new Investment Advisory Agreement............. 26,513,326 485,427 6,397,653*
(4)(a) Change to Fundamental Restriction on Issuer
Diversification............................................. 26,062,607 692,368 6,641,431*
(4)(b) Change to Fundamental Restriction on Borrowing Money and
Issuing Senior Securities................................... 25,982,688 789,441 6,624,277*
(4)(c) Change to or Addition of Fundamental Restriction on
Underwriting Securities..................................... 25,968,190 796,047 6,632,169*
(4)(d) Change to or Addition of Fundamental Restriction on Industry
Concentration............................................... 26,080,462 660,988 6,654,956*
(4)(e) Change to Fundamental Restriction on Purchasing or Selling
Real Estate................................................. 25,831,415 977,028 6,587,963*
(4)(f) Change to Fundamental Restriction on Purchasing or Selling
Commodities and Elimination of Fundamental Restriction on
Puts and Calls.............................................. 25,677,558 1,064,001 6,654,847*
(4)(g) Change to Fundamental Restriction on Making Loans........... 25,807,778 974,723 6,613,905*
(4)(h) A new Fundamental Investment Restriction on Investing all of
the Fund's assets in
an Open-End Fund............................................ 25,774,045 975,531 6,646,830*
(4)(i) Elimination of Fundamental Restriction on Margin
Transactions................................................ 25,451,668 1,220,386 6,724,352*
(4)(j) Elimination of Fundamental Restriction on Short Sales of
Securities.................................................. 25,539,173 1,149,596 6,707,637*
(4)(k) Elimination of Fundamental Restriction on Investing in
Securities other than Municipal Bonds....................... 25,636,566 1,055,855 6,703,985
(5) Approval of changing the Investment Objective and Making it
Non-Fundamental............................................. 25,492,656 1,104,301 6,799,449*
(6) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 31,748,263 171,852 1,476,291
</TABLE>
---------------
* Includes Broker Non-Votes
36
<PAGE> 39
<TABLE>
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BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Director and Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, Senior Vice President and 11 Greenway Plaza
and Chief Executive Officer Secretary Suite 100
COMSAT Corporation Houston, TX 77046
Gary T. Crum
Owen Daly II Senior Vice President TRANSFER AGENT
Formerly, Director
Cortland Trust Inc. Dana R. Sutton A I M Fund Services, Inc.
Vice President and Treasurer P.O. Box 4739
Edward K. Dunn Jr. Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Robert G. Alley
Formerly Vice Chairman, Vice President CUSTODIAN
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; Stuart W. Coco The Bank of New York
and President, Mercantile Bankshares Vice President 90 Washington Street
11th Floor
Jack Fields Melville B. Cox New York, NY 10286
Chief Executive Officer Vice President
Texana Global, Inc. and COUNSEL TO THE FUND
Twenty First Century Group, Inc.; Karen Dunn Kelley
Formerly Member Vice President Ballard Spahr
of the U.S. House of Representatives Andrews & Ingersoll, LLP
Edgar M. Larsen 1735 Market Street
Carl Frischling Vice President Philadelphia, PA 19103
Partner
Kramer, Levin, Naftalis & Frankel LLP Mary J. Benson COUNSEL TO THE TRUSTEES
Assistant Vice President and
Robert H. Graham Assistant Treasurer Kramer, Levin, Naftalis &
Director, President and Chief Frankel LLP
Executive Officer Sheri Morris 919 Third Avenue
A I M Management Group Inc. Assistant Vice President and New York, NY 10022
Assistant Treasurer
Prema Mathai-Davis DISTRIBUTOR
Formerly, Chief Executive Officer, Renee A. Friedli
YWCA of the U.S.A. Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Lewis F. Pennock P. Michelle Grace Suite 100
Attorney Assistant Secretary Houston, TX 77046
Louis S. Sklar Nancy L. Martin AUDITORS
Executive Vice President, Assistant Secretary
Development and Operations, KPMG LLP
Hines Interests Ofelia M. Mayo 700 Louisiana
Limited Partnership Assistant Secretary Houston, TX 77002
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Of ordinary dividends paid to shareholders during the Fund's tax year ended July
31, 2000, 100% is qualified as tax-exempt interest dividends.
<PAGE> 40
THE AIM FAMILY OF FUNDS--Registered Trademark--
EQUITY FUNDS
<TABLE>
<CAPTION>
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
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A I M Management Group Inc. has provided
MORE AGGRESSIVE MORE AGGRESSIVE leadership in the mutual fund industry since
1976 and managed approximately $176 billion
AIM Small Cap Opportunities(1) AIM Latin American Growth in assets for more than 8 million
AIM Mid Cap Opportunities(2) AIM Developing Markets shareholders, including individual
AIM Large Cap Opportunities(6) AIM European Small Company investors, corporate clients and financial
AIM Emerging Growth AIM Asian Growth institutions, as of June 30, 2000.
AIM Small Cap Growth(3) AIM Japan Growth The AIM Family of Funds--Registered
AIM Aggressive Growth AIM International Emerging Growth Trademark--is distributed nationwide, and
AIM Mid Cap Growth AIM European Development AIM today is the eighth-largest mutual fund
AIM Small Cap Equity AIM Euroland Growth complex in the United States in assets under
AIM Capital Development AIM Global Aggressive Growth management, according to Strategic Insight,
AIM Constellation(4) AIM International Equity an independent mutual fund monitor.
AIM Dent Demographic Trends AIM Advisor International Value AIM is a subsidiary of AMVESCAP PLC,
AIM Select Growth AIM Global Trends one of the world's largest independent
AIM Large Cap Growth AIM Global Growth financial services companies with $389
AIM Weingarten billion in assets under management as of
AIM Mid Cap Equity MORE CONSERVATIVE June 30, 2000.
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Resources
AIM Global Financial Services
MORE CONSERVATIVE AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS [AIM LOGO APPEARS HERE]
--Registered Trademark--
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
INVEST WITH DISCIPLINE
MORE AGGRESSIVE MORE AGGRESSIVE --Registered Trademark--
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Floating Rate Fund was restructured to offer multiple share classes
April 3, 2000. Existing shares were converted to Class B shares, and Class C
shares commenced offering. (6) AIM Large Cap Opportunities Fund will close to
new investors Sept. 29, 2000, or when the fund reaches a total net asset value
of $750 million, whichever occurs first.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE]
A I M Distributors, Inc. MBD-AR-1
