<PAGE> 1
[GRAPHIC OF BUILDING]
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COLONIAL HIGH INCOME MUNICIPAL TRUST SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
JUNE 30, 1999
<PAGE> 2
COLONIAL HIGH INCOME MUNICIPAL TRUST HIGHLIGHTS
JANUARY 1, 1999 - JUNE 30, 1999
INVESTMENT OBJECTIVE: Colonial High Income Municipal Trust seeks to provide high
current income, generally exempt from federal income taxes, by investing
primarily in medium- and lower-quality municipal securities.
PORTFOLIO MANAGER COMMENTARY: In the past six months, the bond market was highly
volatile. As global economies began to stabilize and the U.S. economy remained
strong, investors once again became concerned about inflation. Early in the
period, we invested in fundamentally sound higher-yielding bonds in the
healthcare and housing sectors, which helped the Trust's overall performance.
The Federal Reserve Board's move to raise interest rates in June had a dampening
effect on the bond market, and bond prices declined, driving interest rates up.
In response, we increased the portfolio's interest rate sensitivity and took
advantage of widening credit spreads -- the difference between higher- and
lower-rated securities. -- Maureen Newman
COLONIAL HIGH INCOME MUNICIPAL TRUST PERFORMANCE
Six-month distributions declared per share(1) $0.252
NAV Market Price
Six-month total return, assuming
reinvestment of all distributions (1.05)% (4.44)%
Price per share on 6/30/99 $8.15 $7.94
Top Five Sectors(2)
(as of 6/30/99)
- ----------------------------------------
Nursing........................... 14.1%
Refunded.......................... 13.2%
Hospital.......................... 13.0%
Multi Family...................... 9.0%
Assisted Living................... 4.2%
Quality Breakdown(2)
(as of 6/30/99)
- ----------------------------------------
Non-rated......................... 49.9%
BBB............................... 24.5%
AAA............................... 12.9%
A................................. 5.9%
AA................................ 3.1%
BB................................ 2.7%
Short-term obligations & other.... 0.7%
B................................. 0.3%
The Trust may at times purchase tax-exempt securities at a discount, and
some or all of this discount may be included in the Trust's ordinary income
which will be taxable when distributed.
(1) A portion of the Trust's income may be subject to the alternative minimum
tax.
(2) Quality and sector breakdowns are calculated as a percentage of total
investments, including short-term obligations. Ratings shown in the Quality
Breakdowns represent the highest rating assigned to a particular bond by
one of the following respected rating agencies: Standard & Poor's, Moody's
or Fitch. Because the Trust is actively managed, there can be no guarantee
the Trust will continue to maintain these quality and sector breakdowns in
the future. The sector classifications used on this page are based upon the
Advisor's defined criteria as used in the investment process.
2
<PAGE> 3
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
During the six months ended June 30, 1999, the bond
market experienced considerable volatility. In late [PHOTO OF PRESIDENT]
1998, Treasury securities, considered the safest bond
investments, were the top performers for the bond
market, but municipal bonds also posted solid returns.
By the beginning of 1999, several events reversed this trend. Global economies
stabilized and strong U.S. economic growth renewed investors' inflation fears.
Bond prices declined, driving interest rates up across the board. However,
municipal bonds were not hit as hard as Treasurys when prices fell. At the close
of the period, continued U.S. economic growth and inflation concerns caused the
Federal Reserve Board to raise short-term interest rates by a quarter of a point
to 5.00%.
This challenging environment was reflected in the Trust's performance. For the
six-month period, the Trust returned negative 1.05%, based on net asset value,
compared to the Lipper High Yield Municipal Debt category average, which
returned negative 0.22%(1). Although past performance cannot predict future
results, it is important to maintain a long-term perspective when making
investment decisions.
As always, we thank you for choosing Colonial High Income Municipal Trust and
for giving us the opportunity to serve your investment needs.
Sincerely,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
August 11, 1999
(1) Lipper, Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives
as the Trust. The total return calculated for the Lipper High Yield
Municipal Debt Category was negative 0.22% for the six months ended June
30, 1999. The Trust was ranked in the fourth quartile for the six months
(12 out of 13 funds), in the fourth quartile for the one year (12 out of 13
funds), in the third quartile for five years (8 out of 13 funds) and in the
fourth quartile for the ten years (8 out of 9 funds). Rankings do not
include sales charges. Past performance cannot predict future results.
Because economic and market conditions change frequently, there can be no
assurance that the trends described above or on the following pages will
continue.
3
<PAGE> 4
INVESTMENT PORTFOLIO
JUNE 30, 1999 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
MUNICIPAL BONDS - 96.4% PAR VALUE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 4.1%
Education
CA Statewide Communities Development Corp.,
J. Paul Getty Trust Center,
5.000% 10/01/23 (a) $2,250 $ 2,125
CA Statewide Communities Development Authority,
Crossroads School for Arts & Sciences,
Series 1998,
6.000% 08/01/28 (b) 1,400 1,377
IL State Development Finance Authority,
Latin School of Chicago,
Series 1998:
5.600% 08/01/18 350 334
5.650% 08/01/28 730 689
MA State Industrial Finance Agency:
Cambridge Friends School,
Series 1998,
5.800% 09/01/28 1,000 967
St. John's High School,
Series 1998,
5.350% 06/01/28 300 277
Wentworth Institute of Technology,
Series 1998,
5.750% 10/01/28 1,000 968
MI Southfield Economic Development Corp.,
Lawrence University,
Series 1998 A,
5.400% 02/01/18 1,000 952
MN Victoria,
Holy Family Catholic High School,
Series 1999 A,
5.875% 09/01/29 1,000 981
NM Santa Fe,
College of Santa Fe,
Series 1998 A,
5.500% 10/01/28 250 236
VT State Educational & Health Buildings Finance Agency,
Norwich University,
Series 1998,
5.500% 07/01/21 1,500 1,413
-------
10,319
-------
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
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<S> <C> <C> <C> <C>
HEALTHCARE - 31.9%
CONGREGATE CARE RETIREMENT - 3.1%
KY State Economic Development Finance Authority,
Christian Church Homes of Kentucky, Inc.,
Series 1998,
5.500% 11/15/30 $ 750 $ 699
MA Boston Industrial Development Finance Authority,
Springhouse, Inc., Series 1988,
5.875% 07/01/20 605 584
MA State Development Finance Agency,
Loomis Community,
Series 1999 A:
5.625% 07/01/15 500 481
5.750% 07/01/23 250 239
MI State Strategic Fund,
Holland Home,
Series 1998,
5.750% 11/15/28 400 383
MN Columbia Heights,
Crest View Corp.,
Series 1998,
6.000% 03/01/33 740 715
NH State Higher Educational & Health Facilities Authority, Rivermead
at Peterborough, Series 1998:
5.625% 07/01/18 500 475
5.750% 07/01/28 500 472
PA Philadelphia Authority for Industrial Development, Baptist Home of
Philadelphia, Series 1998 A:
5.500% 11/15/18 360 346
5.600% 11/15/28 570 537
TN Metropolitan Government,
Nashville & Davidson County,
Blakeford at Green Hills,
Series 1998,
5.650% 07/01/24 600 571
TX Abilene Health Facilities Development Corp.,
Sears Methodist Retirement Obligation Group:
Series 1998 A,
5.900% 11/15/25 1,000 959
Series 1999,
6.000% 11/15/29 500 485
WI State Health & Educational Facilities Authority,
Attic Angel Obligated Group,
5.750% 11/15/27 1,000 945
------
7,891
------
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
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MUNICIPAL BONDS - CONT. PAR VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE - CONT
HEALTH SERVICES - 0.1%
IL State Health Facilities Authority,
Midwest Physician Group Ltd.,
Series 1998,
5.500% 11/15/19 $ 120 $ 112
MA State Development Finance Agency,
Boston Biomedical Research Institute,
Series 1999,
5.650% 02/01/19 200 192
------
304
------
HOSPITAL - 12.8%
AL Alabama Special Care Facilities Authority,
Montgomery Healthcare,
Series 1989,
11.000% 10/01/19 3,335 3,352
CA State Health Facilities Financing Authority,
Kaiser Permanente, Series 1989 A,
(c) 10/01/12 (a) 5,500 2,746
CO State Health Care Facilities Authority,
National Jewish Medical & Research Center,
Series 1998,
5.375% 01/01/23 330 305
GA Clayton Hospital Authority,
The Woodlands Foundation, Inc.,
Series 1991 A,
9.750% 05/01/21 (d) 2,500 750
GA Forsyth County Hospital Authority,
Georgia Baptist Healthcare System,
Series 1998,
6.000% 10/01/08 1,000 980
IL Health Facilities Authority,
Thorek Hospital & Medical Center,
5.250% 08/15/18 600 552
IL Southwestern Illinois Development Authority,
Anderson Hospital,
Series 1999,
5.500% 08/15/20 675 636
IN State Health Facilities Financing Authority,
Riverview Hospital,
Series 1999,
5.500% 08/01/24 400 377
LA State Public Facilities Authority,
Touro Infirmary,
Series 1999,
5.625% 08/15/29 1,100 1,056
</TABLE>
6
<PAGE> 7
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MI Dickinson County,
Series 1999,
5.700% 11/01/18 $ 750 $ 724
MI Flint Hospital Building Authority,
Hurley Medical Center,
Series 1998 A,
5.375% 07/01/20 625 574
MI State Hospital Finance Authority,
Detroit Medical Center,
Series 1998 A,
5.250% 08/15/28 650 556
MN St. Paul Housing & Redevelopment Authority,
Healtheast Project,
Series A,
5.700% 11/01/15 1,000 941
MN Washington County Housing
& Redevelopment Authority,
Healtheast, Inc., Series 1998,
5.250% 11/15/12 1,500 1,361
MS Lowndes County,
Golden Triangle Regional Medical Center,
Series 1990,
8.500% 02/01/10 235 244
MS State Business Finance Corp.,
Medical Foundation, Inc.,
Series 1998,
5.625% 07/01/23 1,450 1,375
NH State Higher Educational & Health Facilities Authority,
Littleton Hospital Assoc., Inc.:
5.900% 05/01/28 780 749
Series 1998 A,
6.000% 05/01/28 625 617
NM State Hospital Equipment Loan Council,
Memorial Medical Center,
Series 1998,
5.500% 06/01/28 1,220 1,154
OH Belmont County,
East Ohio Regional Hospital,
Series 1998,
5.700% 01/01/13 1,875 1,809
OH Franklin County,
Doctors OhioHealth Corp.,
Series 1998 A,
5.600% 12/01/28 2,150 2,004
OH Highland County Hospital,
6.750% 12/01/29 1,000 1,023
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
-----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE - CONT
HOSPITAL - CONT
OH Sandusky County,
Series 1998,
5.150% 01/01/10 $ 250 $ 245
OH Upper Valley Medical Center,
6.375% 05/15/26 1,000 1,023
PA Allegheny County Hospital Development,
Ohio Valley General Hospital,
Series 1998 A,
5.450% 01/01/28 1,000 945
PA Mount Pleasant Business District Authority,
Frick Hospital,
5.750% 12/01/27 1,300 1,255
PA Pottsville Hospital Authority,
Pottsville Hospital & Warne Clinic,
Series 1998,
5.500% 07/01/18 1,000 931
TX Lufkin Health Facilities Development Corp.,
Memorial Health Systems of East Texas,
Series 1998,
5.700% 02/15/28 1,120 1,076
TX Richardson Hospital Authority,
Baylor Richardson Medical Center,
Series 1998,
5.625% 12/01/28 750 702
VT State Educational & Health Buildings Authority:
Brattleboro Memorial Hospital,
5.375% 03/01/28 1,075 1,000
Springfield Hospital,
Series A,
7.750% 01/01/13 1,115 1,246
-------
32,308
-------
INTERMEDIATE CARE FACILITIES - 2.1
IL Champaign,
Hoosier Care, Inc.,
Series 1989 A,
9.750% 08/01/19 1,425 1,470
IL Development Finance Authority Revenue,
Hoosier Care Project,
Series A,
7.125% 06/01/34 (e) 1,240 1,242
IN Health Facilities Financing Authority Revenue,
Hoosier Care Project,
Series A,
7.125% 06/01/34 (e) 150 150
</TABLE>
8
<PAGE> 9
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PA State Economic Development Financing Authority,
Northwestern Human Services, Inc.,
Series 1998 A,
5.250% 06/01/14 $2,510 $2,358
------
5,220
------
NURSING HOME - 13.8%
CO State Health Facilities Authority:
American Housing Foundation Inc.,
Series 1990 A,
10.250% 12/01/20 (d) 1,300 1,300
Pioneer Health Care,
Series 1989,
10.500% 05/01/19 2,000 2,045
CO State Health Facilities Authority,
Volunteers of America Care
Facilities, Inc.,
Series 1998 A:
5.450% 07/01/08 300 294
5.750% 07/01/20 865 823
CO State Health Facilities Authority,
Volunteers of America Care Facilities, Inc.,
Series 1999 A,
6.000% 07/01/29 350 333
FL Gadsden County Industrial Development Authority,
Florida Properties, Inc., Series 1988 A,
10.450% 10/01/18 1,865 1,874
IA State Finance Authority,
Care Initiatives Project:
Series 1996,
9.250% 07/01/25 1,000 1,311
Series 1998 B:
5.750% 07/01/18 550 533
5.750% 07/01/28 1,475 1,409
IN Gary Industrial Economic Development,
West Side Health Care Center,
Series 1987 A,
11.500% 10/01/17 1,455 1,483
IN Michigan City Health Facilities,
Metro Health Foundation, Inc. Project,
10.000% 11/01/22 (d) 3,085 3,085
IN State Health Facilities Financing Authority,
Metro Health Indiana, Inc.,
Series 1998,
6.400% 12/01/33 1,210 1,159
KS Washington County Industrial Development Authority,
Central States, Series 1989,
10.250% 11/01/19 1,835 1,895
</TABLE>
9
<PAGE> 10
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
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MUNICIPAL BONDS - CONT. PAR VALUE
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE - CONT
NURSING HOME - CONT
MA State Industrial Finance Agency,
American Health Foundation, Inc.,
Series 1989,
10.125% 03/01/19 (d) $1,923 $1,443
MN Minneapolis,
Walker Methodist Senior Services Group,
Series 1998 A,
6.000% 11/15/28 1,200 1,164
MN New Hope,
North Ridge Care Center, Inc.,
Series 1999,
5.875% 03/01/29 800 763
NJ State Economic Development Authority,
Geriatric & Medical Service, Inc.,
Series B,
10.500% 05/01/20 2,000 2,060
PA Chester County Industrial Development,
Pennsylvania Nursing Home, Inc.,
Series 1989,
10.125% 05/01/19 (d) 2,548 2,089
TN Metropolitan Government,
Nashville & Davidson Counties Health
& Education Facilities, Central States,
Series 1989,
10.250% 11/01/19 1,705 1,761
TX Bell County Health Facilities Development Corp.,
Heartway Corp. Project:
(c) 03/01/19 255 63
9.500% 03/01/19 1,500 1,500
TX Kirbyville Health Facilities Development Corp.,
Heartway III Project:
Series 1997 A,
10.000% 03/20/18 726 712
Series 1997 B,
(c) 03/20/04 106 60
TX Whitehouse Health Facilities Development Corp.,
Oak Brook Health Care Center,
Series 1989,
10.000% 12/01/19 1,755 1,831
WA Kitsap County Housing Authority,
Martha & Mary Nursing Home,
7.100% 02/20/36 1,000 1,142
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WI State Health & Educational Facilities Authority,
Metro Health Foundation, Inc.,
Series 1993,
10.000% 11/01/22 (d) $ 2,775 $ 2,775
-------
34,907
-------
HOUSING - 14.8%
ASSISTED LIVING/SENIOR - 4.1%
CA Abag Finance Authority for Nonprofit Corps.,
Eskaton Gold River Lodge,
Series 1998:
6.375% 11/15/15 (f) 750 736
6.375% 11/15/28 (f) 550 534
IL Clarendon Hills Residential Facilities,
Churchill Estate,
Series 1998 A:
6.750% 03/01/24 1,050 1,047
6.750% 03/01/31 1,370 1,367
IL State Development Finance Authority,
Care Institute, Inc.,
8.250% 06/01/25 1,300 1,448
MN Roseville,
Care Institute, Inc.,
Series 1993,
7.750% 11/01/23 1,740 1,718
TX Bell County Health Facilities Development Corp.,
Care Institute, Inc.,
9.000% 11/01/24 1,800 2,025
WI State Health & Educational Facilities Authority:
Clement Manor,
Series 1998,
5.750% 08/15/24 600 563
United Lutheran Program for Aging, Inc.,
5.700% 03/01/28 1,000 944
-------
10,382
-------
MULTI-FAMILY - 8.8%
DE Wilmington,
Electra Arms Senior Association Project,
6.250% 06/01/28 1,000 948
GA Clayton County Housing Authority,
Magnolia Park Apartments,
Series A,
6.250% 06/01/30 955 945
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
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MUNICIPAL BONDS - CONT. PAR VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - CONT
MULTI-FAMILY - CONT
MN Lakeville,
Southfork Apartments Project:
Series 1989 A,
9.875% 02/01/20 $ 2,570 $ 2,571
Series 1989 B,
(h) 02/01/20 1,013 1,216
MN Washington County Housing & Redevelopment Authority,
Cottages of Aspen, Series 1992,
9.250% 06/01/22 1,055 1,145
MN White Bear Lake,
Birch Lake Townhome Project:
Series 1989-A,
10.250% 07/15/19 2,200 2,208
Series 1989-B,
(h) 07/15/19 735 221
NC Eastern Carolina Regional Housing Authority,
New River Apartments-Jacksonville,
Series 1994,
8.250% 09/01/14 1,815 1,933
NY Nyack Housing Assistance Corp.,
Nyack Plaza Apartments,
7.375% 06/01/21 (g) 393 393
Resolution Trust Corp.,
Pass Through Certificates,
Series 1993 A,
9.250% 12/01/16 (g) 5,098 5,193
TN Franklin Industrial Board,
Landings Apartment Project,
Series 1996 B,
8.750% 04/01/27 935 999
TX Galveston Health Facilities Center,
Pass Through Certificates,
8.000% 08/01/23 1,000 1,045
TX State Department of Housing & Community Affairs,
Pebble Brooks Apartments,
Series 1998,
5.500% 12/01/18 1,000 1,015
VA Alexandria Redevelopment & Housing Authority,
Courthouse Commons Apartments,
Series 1990-A,
10.000% 01/01/21 1,500 1,545
WA Vancouver Housing Authority,
Series I,
5.500% 03/01/28 1,000 990
------
22,367
------
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SINGLE-FAMILY - 1.9%
LA Louisiana Housing Finance Agency,
Residual Lien Mortgage,
Series 1992,
7.375% 09/01/13 $ 375 $ 394
OH State Housing Finance Agency,
Series B-4, IFRN (variable rate),
10.181% 03/31/31 825 901
TX Bexar County Housing Finance Corp.,
GNMA Collateralized Mortgage,
Series 1989-A,
8.200% 04/01/22 (a) 2,085 2,151
TX Harris County Housing Finance,
Corp.,
Series 1987,
8.875% 12/01/17 170 172
WA State Housing Finance Commission,
Series 1992 D-1,
6.150% 01/01/26 1,095 1,172
------
4,790
------
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 7.8%
CHEMICALS - 1.3%
LA Saint Charles Parish,
Union Carbide Corp.,
Series 1992,
7.350% 11/01/22 3,000 3,237
------
FOOD PRODUCTS - 1.8%
IN Hammond,
American Maize Products Co.,
Series 1994,
8.000% 12/01/24 2,000 2,267
LA Southern Louisiana Port Commission,
Cargill, Inc. Project,
5.850% 04/01/17 1,000 1,023
MI State Strategic Fund,
Michigan Sugar Co., Sebewaing Project,
Series 1998 A,
6.250% 11/01/15 1,250 1,247
------
4,537
------
FOREST PRODUCTS - 0.7%
GA Rockdale County Development Authority,
Solid Waste Disposal, Visy Paper, Inc.,
Series 1993,
7.500% 01/01/26 1,800 1,886
------
</TABLE>
13
<PAGE> 14
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
- -----------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL - CONT
MANUFACTURING - 3.5%
IL State Development Finance Authority,
Armstrong World Industries, Inc. Project,
5.950% 12/01/24 $1,000 $1,041
IL Will-Kankakee Regional Development Authority,
Flanders Corp./Precisionaire Project,
Series 1997,
6.500% 12/15/17 975 1,007
MA State Industrial Finance Agency,
House of Bianchi, Inc.,
8.750% 06/01/18 335 337
MN Brooklyn Park,
TL Systems Corp.,
Series 1991,
10.000% 09/01/16 755 895
NV Henderson Public Improvement Trust,
Dongsung America Co., Inc.,
Series 1998,
7.000% 11/01/10 500 491
TN McKenzie Individual Development Board,
American Lantern Co.,
10.500% 05/01/16 (d) 2,086 1,147
TX Trinity River Authority,
Texas Instruments Project,
Series 1996,
6.200% 03/01/20 1,000 1,052
VA State Small Business Financing Authority,
Donsung America,
Series 1998 A,
7.250% 11/01/15 500 487
WA Pilchuck Public Development Corp.,
Goodrich (B.F.) Co. Tramco Project,
Series 1993,
6.000% 08/01/23 2,420 2,452
------
8,909
------
METALS & MINING - 0.5%
VA Greensville County Industrial Development Authority,
Wheeling Steel, Series 1999 A:
6.375% 04/01/04 100 99
7.000% 04/01/14 500 489
VA Peninsula Ports Authority,
Ziegler Coal Project,
Series 1997,
6.900% 05/02/22 675 672
------
1,260
</TABLE>
14
<PAGE> 15
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER - 13.3%
OTHER - 0.3%
MD Baltimore,
Park Charles Project,
Series 1986,
8.000% 01/01/10 $ 775 $ 822
REFUNDED/ESCROWED (I) - 13.0%
CA Colton Public Financing Authority,
Series 1995,
7.500% 10/01/20 2,000 2,263
CA San Joaquin Hills Transportation Corridor Agency,
Series 1993:
6.750% 01/01/32 (a) 1,500 1,649
7.000% 01/01/30 775 858
CO Denver City and County Airport:
Series B,
7.250% 11/15/23 580 643
Series C,
6.125% 11/15/25 2,280 2,453
FL Clearwater Housing Authority,
Hampton Apartments,
Series 1994,
8.250% 05/01/24 2,500 2,950
ID State Health Facilities Authority,
IHC Hospitals, Inc.,
6.650% 02/15/21 1,750 2,046
IL State Health Facilities Authority:
Edgewater Medical Center,
Series A,
9.250% 07/01/24 (a) 1,965 2,397
Hinsdale Hospital,
Series 1990 C,
9.500% 11/15/19 620 681
MA Boston,
St. Joseph Nursing Care Center, Inc.,
Series 1990,
10.000% 01/01/20 935 991
MA State Health & Educational Facilities Authority,
Corp. for Independent Living,
8.100% 07/01/18 710 816
MA State Industrial Finance Agency,
Tunnel Revenue,
Series 1990,
9.000% 10/01/20 2,280 2,462
</TABLE>
15
<PAGE> 16
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER - CONT
REFUNDED/ESCROWED (I) - CONT
MN Mille Lacs Capital Improvement Authority,
Mille Lacs Band of Chippewa,
Series 1992 A,
9.250% 11/01/12 $ 1,020 $ 1,199
NC Lincoln County,
Lincoln County Hospital,
9.000% 05/01/07 420 484
NM City of Clovis,
Retirement Ranches Project,
10.750% 04/01/19 5 5
PA Delaware County Authority,
Southeastern Pennsylvania Obligated Group,
Series 1996:
6.000% 12/15/16 1,400 1,501
6.000% 12/15/26 1,000 1,075
PA Montgomery County Industrial Development Authority,
Assisted Living Facility,
Series 1993-A,
8.250% 05/01/23 840 954
TN Shelby County, Health, Education,
& Housing Facilities Board,
Open Arms Development Center:
Series 1992-A,
9.750% 08/01/19 920 1,240
Series 1992-C,
9.750% 08/01/19 895 1,206
VI Virgin Islands Public Financing,
Series 1992 A,
7.250% 10/01/18 2,000 2,220
VI Water and Power Authority Electric Systems,
Series 1991-A,
7.400% 07/01/11 880 942
WA State Health Care Facilities Authority,
Grays Harbor Community Hospital,
Series 1993:
7.200% 07/01/03 170 177
8.025% 07/01/20 1,480 1,587
-------
32,799
-------
- ------------------------------------------------------------------------------------------
OTHER REVENUE - 1.8%
RECREATION - 0.5%
NM Red River Sports Facility,
Red River Ski Area Project,
Series 1998,
6.450% 06/01/07 1,180 1,168
-------
</TABLE>
16
<PAGE> 17
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RETAIL - 1.3%
NJ State Economic Development Authority,
Glimcher Properties L.P. Project,
6.000% 11/01/28 $ 1,250 $ 1,209
OH Lake County,
North Madison Properties,
Series 1993,
8.819% 09/01/11 765 860
VA Virginia Beach Development Authority,
SC Diamond Associates, Inc.,
8.000% 12/01/10 1,180 1,291
-------
3,360
-------
- ------------------------------------------------------------------------------------------
RESOURCE RECOVERY - 2.2%
DISPOSAL - 1.2%
CT State Development Authority,
Sewer Sludge Disposal Facilities,
Series 1996,
8.250% 12/01/06 965 1,096
MA State Industrial Finance Agency,
Massachusetts Environmental Services,
Series 1994 A,
8.750% 11/01/21 975 780
MA State Industrial Finance Agency,
Peabody Monofill Associates, Inc.,
Series 1995,
9.000% 09/01/05 1,125 1,221
-------
3,097
-------
RESOURCE RECOVERY - 1.0%
MA State Industrial Finance Agency,
Ogden Haverhill Project,
Series 1998 A,
5.500% 12/01/13 500 487
PA Delaware County Industrial Development Authority,
Series A,
6.200% 07/01/19 2,000 2,036
-------
2,523
-------
- -------------------------------------------------------------------------------------------
TAX-BACKED - 6.3%
LOCAL GENERAL OBLIGATIONS - 1.2%
NY New York City:
Series 1997 A,
7.000% 08/01/07 1,000 1,126
Series 1997 H,
6.000% 08/01/17 1,400 1,480
</TABLE>
17
<PAGE> 18
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX-BACKED - CONT.
LOCAL GENERAL OBLIGATIONS - CONT.
TX Irving Independent School District,
Series 1997,
(c) 02/15/18(a) $ 1,000 $ 357
-------
2,963
-------
SPECIAL NON-PROPERTY TAX - 2.3%
IL Metropolitan Pier & Exposition
Authority, McCormick Place Expansion
Project, Series A,
(c) 06/15/16(a) 10,000 3,926
IL State Development Finance Authority,
City of Marion Project,
Series 1991,
9.625% 09/15/21 2,400 1,800
-------
5,726
-------
SPECIAL PROPERTY TAX - 1.9%
CA Carson,
Series 1992,
7.375% 09/02/22 185 196
CA Poway Community Facilities District No. 88-1,
Parkway Business Center,
Series 1998,
6.750% 08/15/15 600 638
CA Riverside County Public Financing Authority,
Redevelopment Projects,
Series A,
5.500% 10/01/22 650 631
FL Lexington Oaks Community Development District:
Series 1998 A,
6.125% 05/01/19 400 394
Series 1998 B,
5.500% 05/01/05 720 708
FL Northern Palm Beach County Improvement District,
Water Control & Improvement Unit Development No. 9B,
6.000% 08/01/29(e) 750 749
FL Orlando,
Conroy Road Interchange Project,
Series 1998 A:
5.500% 05/01/10 180 175
5.800% 05/01/26 500 483
FL Stoneybrook Community Development District,
Series 1998 B,
5.700% 05/01/08 1,000 986
-------
4,960
-------
</TABLE>
18
<PAGE> 19
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STATE APPROPRIATED - 0.9%
NY Metropolitan Transportation Authority,
Commuter Facilities,
Series 1997-8,
5.250% 07/01/17 $ 1,240 $ 1,202
NY State Urban Development Corp.,
University Facilities Grants,
Series 1995,
5.875% 01/01/21 1,000 1,048
-------
2,250
-------
- ------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7%
AIR TRANSPORTATION - 2.6%
CO Denver City &
County Airport,
United Airlines, Inc.,
Series 1992 A,
6.875% 10/01/32 1,645 1,738
TX Alliance Airport Authority:
American Airlines Project,
7.500% 12/01/29 1,600 1,692
Federal Express Corp.,
Series 1996,
6.375% 04/01/21 3,000 3,127
-------
6,557
-------
AIRPORT - 2.3%
CO Denver City and County Airport:
Series B,
7.250% 11/15/23 2,275 2,468
Series C,
6.125% 11/15/25 2,840 2,904
OH Toledo-Lucas County Port Authority,
Series 1998,
5.500% 05/15/20 585 557
-------
5,929
-------
TOLL FACILITIES - 0.8%
VA Richmond Metropolitan Authority,
Series 1998,
5.250% 07/15/22(a) 2,000 1,979
-------
- ------------------------------------------------------------------------------------------
UTILITY - 8.5%
INDEPENDENT POWER PRODUCER - 3.3%
NY Port Authority of New York & New Jersey,
KIAC Partners,
Series 1996 IV,
6.750% 10/01/11 2,000 2,153
</TABLE>
19
<PAGE> 20
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITY - CONT.
INDEPENDENT POWER PRODUCER - CONT.
OH State Water Development Authority,
Bay Shore Power Project,
Series 1998 A,
5.875% 09/01/20 $ 2,000 $ 1,975
PA State Economic Development Finance Authority:
Colver Project,
Series D,
7.125% 12/01/15 3,000 3,300
Northampton Generating,
Series A, 6.500% 01/01/13 1,000 1,044
-------
8,472
-------
INVESTOR OWNED - 3.9%
AZ Pima County Industrial Development Authority,
Tucson Electric Power Co.,
Series A,
6.100% 09/01/25 750 735
CT State Development Authority,
Connecticut Light & Power Co.,
Series 1993 B,
5.950% 09/01/28 400 391
IL Bryant,
Central Illinois Light Co.,
Series 1993,
5.900% 08/01/23(a) 5,000 5,076
LA Calcasieu Parish Industrial Development Board,
Entergy Gulf States, Inc.,
Series 1999,
5.450% 07/01/10 500 482
MS State Business Finance Corp.,
Systems Energy Resources Project,
Series 1998,
5.875% 04/01/22 2,000 1,945
NM Farmington,
San Juan Public Service Co. Project,
Series D,
6.375% 04/01/22 1,300 1,354
-------
9,983
-------
MUNICIPAL ELECTRIC - 0.9%
WA Chelan County Public Utilities District No. 1,
Columbia River Rock Hydroelectric,
(c) 06/01/14(a) 5,000 2,200
-------
</TABLE>
20
<PAGE> 21
Investment Portfolio/June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER & SEWER - 0.4%
LA Public Facility Belmont Water Authority,
9.000% 03/15/24(j) $ 760 $ 646
MS Five Lakes Utility District,
8.250% 07/15/24 500 400
--------
1,046
--------
TOTAL MUNICIPAL BONDS (cost of $244,112)(k) 244,151
--------
PREFERRED STOCKS - 0.8% SHARES
- ------------------------------------------------------------------------------------------
HOUSING - 0.8%
MULTI-FAMILY
Charter Mac Equity Issue Trust,
(cost of $2,000) 6.625% 06/30/49(g) 2,000 2,000
--------
SHORT-TERM OBLIGATIONS - 0.6% PAR
- ------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (l)
CA Irvine Ranch Water District,
2.900% 01/01/21 $ 100 100
ID State Health Facilities Authority,
St. Lukes Regional Medical Facility,
Series 1995,
3.400% 05/01/22 100 100
IL State Development Finance Authority,
Council for Jewish Elderly,
Series 1995,
3.650% 03/01/15 200 200
LA State Offshore Terminal Authority,
Loop, Inc.,
3.400% 09/01/06 500 500
NM Farmington,
Arizona Public Service Co.,
Four Corners Project,
Series 1994 B,
3.400% 09/01/24 100 100
NY Long Island Power Authority,
Sub-Series 1998 5,
3.400% 05/01/33 100 100
NY New York City General Obligation,
4.000% 10/01/20 500 500
--------
TOTAL SHORT-TERM OBLIGATIONS 1,600
--------
OTHER ASSETS & LIABILITIES, NET - 2.2% 5,453
- ------------------------------------------------------------------------------------------
NET ASSETS - 100% $253,204
========
</TABLE>
21
<PAGE> 22
Investment Portfolio/June 30, 1999
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) These securities, or a portion thereof, with a total market value of
$23,733, are being used to collateralize the delayed delivery purchases
indicated in note (e) below and open futures contracts.
(b) This is a restricted security which was acquired at a cost of $1,400. This
security represents 0.5% of the Trust's net assets at June 30, 1999.
(c) Zero coupon bond.
(d) This issuer is in default of certain debt covenants. Income is not being
accrued.
(e) These securities have been purchased on a delayed delivery basis for
settlement at a future date beyond the customary settlement date.
(f) This is a restricted security which was acquired at a cost of $1,287. This
security represents 0.5% of the Trust's net assets at June 30, 1999.
(g) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the value of these securities amounted to $7,586 or 3.0% of net assets.
(h) Accrued interest accumulates in the value of the security and is payable at
redemption.
(i) The Trust has been informed that each issuer has placed direct obligations
of the U.S. Government in an irrevocable trust, solely for the payment of
the principal and interest.
(j) This is a restricted security which was acquired at a cost of $820. This
security represents 0.3% of the Trust's net assets at June 30, 1999.
(k) Cost for federal income tax purposes is $246,240.
(l) Variable rate demand notes are considered short-term obligations. Interest
rates change periodically on specified dates. These securities are payable
on demand and are secured by either letters of credit or other credit
support agreements from banks. The rates listed are as of June 30, 1999.
Short futures contracts open at June 30, 1999:
<TABLE>
<CAPTION>
Unrealized
Par value appreciation
covered by Expiration (depreciation)
Type contracts month at 6/30/99
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Treasury Bond $ 9,500 September 124
Treasury Note $ 7,200 September (187)
-----
$ (63)
=====
Acronym Name
------- --------------------------
IFRN Inverse Floating Rate Note
</TABLE>
See notes to financial statements.
22
<PAGE> 23
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
(in thousands except for per share amount)
<S> <C> <C>
ASSETS
Investments at value (cost $246,112) $ 246,151
Short-term obligations 1,600
----------
247,751
Receivable for:
Interest 4,208
Investments sold 5,093
Other 599 9,900
----- ----------
Total Assets 257,651
LIABILITIES
Payable for:
Investments purchased 3,103
Distributions 1,305
Accrued:
Deferred Trustees fees 6
Other 33
-----
Total Liabilities 4,447
----------
NET ASSETS at value for 31,069
shares of beneficial interest outstanding $ 253,204
==========
Net asset value per share $ 8.15
==========
COMPOSITION OF NET ASSETS
Capital paid in $ 287,856
Overdistributed net investment income (570)
Accumulated net realized loss (34,058)
Net unrealized appreciation on:
Investments 39
Open futures contracts (63)
----------
$ 253,204
==========
</TABLE>
See notes to financial statements.
23
<PAGE> 24
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Interest $ 8,368
EXPENSES
Management fee $ 1,043
Transfer agent 31
Bookkeeping fee 34
Trustees fee 8
Custodian fee 3
Audit fee 16
Legal fee 26
Reports to shareholders 10
Other 54 1,225
-------- ----------
Net Investment Income 7,143
----------
NET REALIZED & UNREALIZED LOSS ON PORTFOLIO POSITIONS
Net realized loss on:
Investments (1,303)
Closed futures contracts (525)
--------
Net Realized Loss (1,828)
Change in net unrealized depreciation
during the period on:
Investments (8,024)
Open futures contracts (44)
--------
Net Unrealized Depreciation (8,068)
----------
Net Loss (9,896)
----------
Decrease in Net Assets from Operations $ (2,753)
==========
</TABLE>
See notes to financial statements.
24
<PAGE> 25
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
(in thousands) June 30 December 31
----------- -----------
INCREASE (DECREASE) IN NET ASSETS 1999 1998
<S> <C> <C>
Operations:
Net investment income $ 7,143 $ 15,972
Net realized gain (loss) (1,828) 3,475
Net unrealized depreciation (8,068) (5,309)
---------- ---------
Net Increase (Decrease) from Operations (2,753) 14,138
Distributions:
From net investment income (7,828) (16,218)
---------- ---------
(10,581) (2,080)
Fund share transactions
Value of distributions reinvested 80 595
---------- ---------
Total Decrease (10,501) (1,485)
NET ASSETS
Beginning of period 263,705 265,190
---------- ---------
End of period (net of overdistributed and
including undistributed net investment
income of $570 and $115, respectively) $ 253,204 $ 263,705
========== =========
NUMBER OF TRUST SHARES
Issued for distributions reinvested 10 69
Outstanding at
Beginning of period 31,059 30,990
---------- ---------
End of period 31,069 31,059
========== =========
</TABLE>
25
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Colonial High Income Municipal Trust (the Trust)
the accompanying financial statements contain all normal and recurring
adjustments necessary for the fair presentation of the financial position of the
Trust at June 30, 1999, and the results of its operations, the changes in its
net assets and the financial highlights for the six months then ended.
NOTE 2. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: The Trust is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Trust's investment objective is to provide
high current income, generally exempt from federal income taxes, by investing
primarily in medium and lower quality municipal securities. The Trust authorized
an unlimited number of shares.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent 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 significant
accounting policies are consistently followed by the Trust in the preparation of
its financial statements.
SECURITY VALUATION AND TRANSACTIONS: Debt securities generally are valued by a
pricing service based upon market transactions for normal, institutional-size
trading units of similar securities. When management deems it appropriate, an
over-the-counter or exchange bid quotation is used.
Futures contracts are valued based on the difference between the last sale price
and the opening price of the contract.
Options are valued at the last reported sale price, or in the absence of a sale,
the mean between the last quoted bid and asking price.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
The Trust may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
26
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS/JUNE 30, 1999
causes the Trust to subsequently invest at less advantageous prices.
FEDERAL INCOME TAXES: Consistent with the Trust's policy to qualify as a
regulated investment company and to distribute all of its taxable and tax-exempt
income, no federal income tax has been accrued.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; market
discount is not accreted. Premium is amortized against interest income with a
corresponding decrease in the cost basis.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded on the
ex-date.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the Trust's capital
accounts to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
- --------------------------------------------------------------------------------
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Advisor) is the
investment Advisor of the Trust and furnishes accounting and other services and
office facilities for a monthly fee equal to 0.80% annually of the Trust's
average weekly net assets.
BOOKKEEPING FEE: The Advisor provides bookkeeping and pricing services for a
monthly fee equal to $18,000 annually plus 0.0233% of the Trust's average weekly
net assets over $50 million.
OTHER: The Trust pays no compensation to its officers, all of whom are employees
of the Advisor.
The Trust's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Trust's assets.
NOTE 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
INVESTMENT ACTIVITY: During the six months ended June 30, 1999, purchases and
sales of investments, other than short-term obligations, were $20,301,517 and
$26,682,835, respectively.
Unrealized appreciation (depreciation) at June 30, 1999, based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $ 10,488,525
Gross unrealized depreciation (10,577,299)
-------------
Net unrealized depreciation $ (88,774)
-------------
27
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS/JUNE 30, 1999
NOTE 4. PORTFOLIO INFORMATION - CONT.
- --------------------------------------------------------------------------------
CAPITAL LOSS CARRYFORWARDS: At December 31, 1998, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:
Year of Capital loss
expiration carryforward
---------- ------------
1999 $ 2,751,000
2000 3,157,000
2001 5,578,000
2002 6,579,000
2003 5,268,000
2004 2,815,000
2005 5,927,000
--------------
$ 32,075,000
--------------
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
OTHER: There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
The Trust may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Trust may purchase or sell municipal and Treasury bond futures contracts and
purchase and write options on futures. The Trust will invest in these
instruments to hedge against the effects of changes in the value of portfolio
securities due to anticipated changes in interest rates and/or market
conditions, for duration management, or when the transactions are economically
appropriate to the reduction of risk inherent in the management of the Trust and
not for trading purposes. The use of futures contracts and options involves
certain risks, which include (1) imperfect correlation between the price
movement of the instruments and the underlying securities, (2) inability to
close out positions due to different trading hours or the temporary absence of a
liquid market for either the instrument or the underlying securities or (3) an
inaccurate prediction by the Advisor of the future direction of interest rates.
Any of these risks may involve amounts exceeding the amount recorded in the
Trust's Statement of Assets and Liabilities at any given time.
NOTE 5. RESULTS OF ANNUAL SHAREHOLDER MEETING (UNAUDITED)
- --------------------------------------------------------------------------------
On April 15, 1999, the Annual Meeting of Shareholders of CHIMT was held to elect
six Trustees, to approve amendments to the Trust's Declaration of Trust to
permit the issuance of preferred shares of the Trust and to ratify
28
<PAGE> 29
NOTES TO FINANCIAL STATEMENTS/JUNE 30, 1999
the selection of PricewaterhouseCoopers LLP as independent accountants for the
fiscal year ending December 31, 1999. The Meeting was adjourned to June 24, 1999
in connection with the approval of amendments of the Declaration of Trust. On
February 17, 1999, the record date for the Meeting, the Trust had outstanding
31,059,288 shares of beneficial interest. The votes cast at the Meeting were as
follows:
1. Election of six Trustees:
Authority Broker
For Withheld Non-Votes
--- --------- ---------
John V. Carberry 27,070,423 679,736 0
Lora S. Collins 27,062,261 687,898 0
Salvatore Macera 27,066,239 683,920 0
Robert L Sullivan 27,052,944 697,215 0
Thomas E. Stitzel 27,066,718 683,441 0
Anne-Lee Verville 27,070,239 679,920 0
The Board of Trustees also consists of Tom Bleasdale, Robert J. Birnbaum, James
E. Grinnell, Richard L. Lowry, William E. Mayer, James L. Moody, Jr. and John J.
Neuhauser.
2. To approve or disapprove amendments to the Trust's Agreement and Declaration
of Trust to permit the issuance of preferred shares of the Fund.
For: 20,834,292 Shares of beneficial interest
being a majority of the shares
represented at the Meeting
Against: 2,607,781 Shares of beneficial interest
Abstain: 1,370,028 Shares of beneficial interest
Broker Non-Votes: 4,184,830
3. Ratification of the selection of PricewaterhouseCoopers LLP:
For: 27,121,705 Shares of beneficial interest
being a majority of the shares
represented at the Meeting
Against: 170,777 Shares of beneficial interest
Abstain: 457,676 Shares of beneficial interest
Broker Non-Votes: 0
29
<PAGE> 30
FINANCIAL HIGHLIGHTS
Selected per share data, total return, ratios and supplemental data throughout
each period are as follows:
(Unaudited)
Six months
ended Year ended
June 30 December 31
----------- -----------
1999 1998
----------- -----------
Net asset value -
Beginning of period $ 8.490 $ 8.560
----------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.274 0.519
Net realized and
unrealized gain (loss) (0.362) (0.066)
----------- ----------
Total from Investment
Operations (0.088) 0.453
----------- ----------
LESS DISTRIBUTIONS DECLARED TO
SHAREHOLDERS:
From net investment income (0.252) (0.523)
----------- ----------
Net asset value -
End of period $ 8.150 $ 8.490
=========== ==========
Market price per share $ 7.937 $ 8.312
=========== ==========
Total return based on net
asset value (a) (1.05)(c) 5.45%
=========== ==========
Total return based on market
value (b) (4.44)(c) 2.47%
=========== ==========
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.94%(d)(e) 0.93%(d)
Net investment income 5.48%(d)(e) 6.02%(d)
Portfolio turnover 8%(c) 29%
Net assets at end
of period (000) $ 253,204 $ 263,705
(a) Total return at net asset value assuming all distributions reinvested.
(b) Total return at market value assuming all distributions reinvested and
excluding brokerage commissions.
(c) Not annualized.
(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(e) Annualized.
30
<PAGE> 31
FINANCIAL HIGHLIGHTS - CONT.
Selected per share data, total return, ratios and supplemental data throughout
each period are as follows:
Year ended December 31
---------------------------------------------------------------
1997 1996 1995 1994
---- ---- ---- ----
$ 8.340 $ 8.550 $ 7.960 $ 8.670
-------- -------- -------- --------
0.552 0.566 0.597 0.616
0.214 (0.193) 0.583 (0.716)
-------- -------- -------- --------
0.766 0.373 1.180 (0.100)
-------- -------- -------- --------
(0.546) (0.583) (0.590) (0.610)
-------- -------- -------- --------
$ 8.560 $ 8.340 $ 8.550 $ 7.960
======== ======== ======== ========
$ 8.630 $ 8.250 $ 7.380 $ 6.880
======== ======== ======== ========
9.57% 4.71% 15.70% (0.75)%
======== ======== ======== ========
11.60% 20.09% 15.65% (9.83)%
======== ======== ======== ========
0.96%(d) 1.00%(d) 1.06%(d) 1.03%
6.54%(d) 6.74%(d) 7.15%(d) 7.44%
17% 15% 23% 20%
$265,190 $257,768 $264,467 $245,967
31
<PAGE> 32
DIVIDEND REINVESTMENT PLAN
As a shareholder in the Trust you are eligible to participate in the Dividend
Reinvestment Plan.
The Trust generally distributes net investment income monthly and capital gains
annually. Under the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions reinvested automatically in
additional shares of the Trust. Shareholders not making such election will
receive all distributions in cash, paid by check and mailed directly to the
recordholder, from the dividend paying agent.
Shareholders participating in the Plan will receive distributions in the form of
shares of the Trust. If the market price of the shares on the distribution
payment date is equal to or greater than the net asset value, Plan participants
will be issued shares at the higher of net asset value or 95% of the market
price. In circumstances in which the net asset value of Trust shares is more
than 5% below their market price, Plan participants will be issued shares
through the Plan at a price exceeding net asset value. If net asset value
exceeds the market price, or the distribution is payable only in cash, shares
will be bought on the open market for the accounts of Plan participants. If the
market price surpasses the net asset value before such purchasing is completed,
the average per share price may exceed the net asset value of the shares,
resulting in the acquisition of fewer shares than if the distribution had been
newly-issued shares.
All Plan accounts receive monthly written confirmations of all transactions.
Shares purchased under the Plan are ordinarily held in uncertificated form,
although participants have the right to receive certificates for whole shares
held in their account.
Each shareholder's proxy includes shares purchased pursuant to the Plan. The
automatic reinvestment of distributions does not relieve participants of any
income tax payable on the distributions. Participants may recognize capital
gains or ordinary income for federal income tax purposes in an amount equal to
the market value of shares received under the Plan.
Fees and expenses of the Plan, other than brokerage charges, will be paid by the
Trust. No brokerage charges are incurred on shares issued directly by the Trust.
Participants will bear a pro-rata share of brokerage charges incurred on open
market purchases.
A Plan participant may terminate his or her participation by written notice to
the Plan administrator. The Plan may be amended or terminated on 30 days written
notice to the Plan participants. Upon withdrawal by any participant or any
termination of the Plan, certificates for whole shares will be issued and cash
payments will be made for any fractional shares. All correspondence concerning
the Plan, including requests for information, should be directed to BankBoston,
NA, the Trust's dividend disbursing agent and administrator of the Plan, at P.O.
Box 1681, Boston, Massachusetts 02105, Attention: Dividend Reinvestment
Department.
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IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial High Income Municipal Trust is:
BankBoston, NA
100 Federal Street
Boston, MA 02110
1-800-730-6001
Colonial High Income Municipal Trust mails one shareholder report to each
shareholder address. If you would like more than one report, please call
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial High Income Municipal
Trust.
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TRUSTEES
ROBERT J. BIRNBAUM
Consultant (formerly Special Counsel, Dechert, Price & Rhoads; President and
Chief Operating Officer, New York Stock Exchange, Inc.; President, American
Stock Exchange, Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
JOHN CARBERRY
Senior Vice President of Liberty Financial Companies, Inc. (formerly Managing
Director, Salomon Brothers)
LORA S. COLLINS
Attorney (formerly Attorney, Kramer, Levin, Naftalis & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
SALVATORE MACERA
Private Investor (formerly Executive Vice President of Itek Corp. and President
of Itek Optical & Electronic Industries, Inc.)
WILLIAM E. MAYER
Partner, Development Capital, LLC (formerly Dean, College of Business and
Management, University of Maryland; Dean, Simon Graduate School of Business,
University of Rochester; Chairman and Chief Executive Officer, CS First Boston
Merchant Bank; and President and Chief Executive Officer, The First Boston
Corporation)
JAMES L. MOODY, JR.
Retired (formerly Chairman of the Board, Chief Executive Officer and Director,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
THOMAS E. STITZEL
Professor of Finance, College of Business, Boise State University; Business
Consultant and Author
ROBERT L. SULLIVAN
Retired Partner, KPMG LLP (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
ANNE-LEE VERVILLE
Consultant (formerly General Manager, Global Education Industry, and President,
Applications Solutions Division, IBM Corporation)
