<PAGE>
1998 Semiannual Report
[LOGO]
AMERICAN MUNICIPAL TERM TRUSTS
American Municipal Term Trusts - 1998 Semiannual Report
AXT
BXT
CXT
<PAGE>
CONTENTS
Portfolio Managers' Letter . . . . . . . . . . . . . . . . . . . . . 2
Financial Statements and Notes . . . . . . . . . . . . . . . . . . . 6
Investments in Securities
AXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
BXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
CXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
*** This report includes a glossary to help you understand financial terms used
in the portfolio managers' letter. When you see this symbol, it indicates a word
that is defined in the glossary.
[LOGO]
AMERICAN MUNICIPAL TERM TRUSTS
- ------------------------------
PRIMARY INVESTMENTS
High-quality municipal obligations including municipal zero-coupon securities.
FUND OBJECTIVE
American Municipal Term Trust (AXT), American Municipal Term Trust II (BXT) and
American Municipal Term Trust III (CXT) are diversified, closed-end management
investment companies. The investment objectives of AXT, BXT and CXT are to
provide high current income exempt from regular federal income tax and to return
$10 per share on or shortly before April 15, 2001; April 15, 2002; and April 15,
2003, respectively - although each fund's termination may be extended up to five
years if necessary to assist the fund in reaching its $10 per share objective.
The funds' income may be subject to state or local tax and the federal
alternative minimum tax. Investors should consult their tax advisors.
As with other investment companies, there can be no assurance that each fund
will achieve its objective.
<PAGE>
AVERAGE ANNUALIZED TOTAL RETURNS
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Based on net asset value for the periods ended June 30, 1998
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
ONE FIVE SINCE
YEAR YEAR INCEPTION
<S> <C> <C> <C>
AMERICAN MUNICIPAL TRUST (AXT, inception 3/27/91) 6.21% 6.03% 8.99%
AMERICAN MUNICIPAL TRUST II (BXT, inception 9/26/91) 6.88% 6.44% 9.05%
AMERICAN MUNICIPAL TRUST III (CXT, inception 11/27/92) 8.91% 7.34% 9.17%
</TABLE>
All total returns are through June 30, 1998, and reflect the reinvestment of
distributions but not sales charges. Net asset value*** (NAV)-based performance
is used to measure investment management results. As noted in earlier
shareholder reports, we no longer compare the funds' NAV performance to a market
benchmark. This is because our primary goal is to meet the funds' investment
objectives of providing high current income exempt from regular federal income
tax and returning $10 per share to investors at the funds' termination dates.
Average annualized total returns based on the change in market price for the
one-year, five-year and since inception periods ended June 30, 1998, were 7.63%,
7.09% and 8.03% for AXT, 8.59%, 7.42% and 7.78% for BXT and 7.92%, 6.81% and
7.30% for CXT. These returns assume reinvestment of all distributions and
reflect sales charges on those distributions described in the funds' dividend
reinvestment plan, but not on initial purchases.
PLEASE REMEMBER, YOU COULD LOSE MONEY WITH THESE INVESTMENTS. NEITHER SAFETY OF
PRINCIPAL NOR STABILITY OF INCOME IS GUARANTEED. Past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more or
less than their original cost. Closed-end funds, such as these funds, often
trade at discounts*** to net asset value. Therefore, you may be unable to
realize the full net asset value of your shares when you sell.
1998 Semiannual Report 1 American Municipal Term Trusts
<PAGE>
PORTFOLIO MANAGERS' LETTER
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[PHOTO]
DOUG WHITE, CFA,
shares responsibility for the management of the American Municipal Term Trusts.
He has 15 years of financial experience.
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August 18, 1998
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
WE ARE PLEASED THAT THE AMERICAN MUNICIPAL TERM TRUSTS (AXT, BXT AND CXT)
REMAIN ON TARGET TO MEET THEIR INVESTMENT OBJECTIVES OF PROVIDING HIGH TAX-
EXEMPT INCOME AND RETURNING $10 PER SHARE TO INVESTORS ON OR SHORTLY BEFORE
THEIR TERMINATION DATES. For the six month period ended June 30, 1998, the funds
continued to earn more than their monthly common and preferred stock***
dividends and add to their dividend reserves. Since the funds' inceptions, AXT,
BXT, and CXT have maintained monthly common stock distributions of 5.42, 5.17
and 4.75 cents per share, respectively. In addition, the funds' net asset values
remain above the $10 per share objective. As of June 30, 1998 the net asset
values for AXT, BXT and CXT were $11.48, $11.58 and $11.41, respectively.
MUNICIPAL BOND PRICES CONTINUED TO BE VOLATILE, AND THE SUPPLY OF MUNICIPAL
ISSUES HAS INCREASED. Economic growth is showing signs of slowing, which
increases the probability of a recession. As more investors are looking for a
safe haven, the demand for U.S. Treasuries is surpassing the demand for
municipal obligations. This demand, along with refundings and new issuances,
have created an increased supply of municipal issues. During 1998, the national
supply of municipal issues increased by 64%, compared to 1997.
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DISTRIBUTION HISTORY SINCE INCEPTION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AXT BXT CXT
Inception Inception Inception
3/27/91 9/26/91 11/27/92
<S> <C> <C> <C>
Total Monthly Income Distributions Through 6/30/98
- --------------------------------------------------------------------------------
Common Shareholders $4.66 $4.14 $3.13
- --------------------------------------------------------------------------------
Preferred Shareholders (On a Common
Share Basis) $1.19 $1.08 $0.88
- --------------------------------------------------------------------------------
Total Capital Gains Distributions to Common
Shareholders Through 6/30/98 $0.11 $0.09 $0.07
- --------------------------------------------------------------------------------
</TABLE>
1998 Semiannual Report 2 American Municipal Term Trusts
<PAGE>
PORTFOLIO MANAGERS' LETTER (CONTINUED)
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[PHOTO]
RON REUSS, ISFA,
shares responsibility for the management of the American Municipal Term Trusts.
He has 29 years of financial experience.
- --------------------------------------------------------------------------------
AS THE FUNDS NEAR THEIR TERMINATION DATES, WE CONTINUE TO SELL LONGER MATURITY
BONDS IN FAVOR OF THOSE CLOSER TO THE FUNDS' TERMINATIONS.
As shown in the chart below, the percentage of bonds with maturity or refunded
dates*** within a year of the funds' termination dates continues to increase.
Advance refunding*** is responsible for a portion of the increase in the
percentages shown. We made appropriate trades as opportunities arose. As
interest rates fell and bond prices increased, this restructuring generated
capital gains, which were distributed to shareholders. Also, restructuring
proceeds were reinvested at lower interest rates, decreasing fund income.
WE EXPECT THAT THE FUNDS' NET ASSET VALUES WILL DECLINE AS THE FUNDS NEAR THEIR
TERMINATION DATES. There are several events that could cause this to occur. A
number of bonds currently have prices higher than their market values. As the
maturity and/or refunding dates of these bonds approach, their market prices
will converge toward a price that is at or near their maturity or refunding
prices. In addition, as the funds approach termination, we continue to sell
longer maturity bonds in favor of bonds with shorter maturities and lower
coupons*** that come due closer to the funds' termination dates. Any gains
realized as a result of these sales will be distributed to shareholders,
reducing net asset value. If the shorter-maturity bonds pay insufficient income
to maintain our current dividends, the funds' dividend reserves may be used to
pay common and/or preferred dividends. See the net asset value summary chart for
each fund's current accumulated
- --------------------------------------------------------------------------------
BONDS MATURING WITHIN A YEAR OF TERMINATION
- --------------------------------------------------------------------------------
The chart below illustrates the percentage of bonds in each fund with maturity
or refunded dates within a year of the funds' termination dates.
<TABLE>
<CAPTION>
AXT BXT CXT
Inception Inception Inception
3/27/91 9/26/91 11/27/92
<S> <C> <C> <C>
At the Fund's Inception 0% 0% 0%
- --------------------------------------------------------------------------------
As of June 30, 1998 74% 73% 41%
- --------------------------------------------------------------------------------
</TABLE>
1998 Semiannual Report 3 American Municipal Term Trusts
<PAGE>
PORTFOLIO MANAGERS' LETTER (CONTINUED)
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realized gains,*** unrealized appreciation*** and current dividend reserve.
Shareholders also should remember that the funds are always subject to interest
rate risk*** and credit risk,*** which have an impact on net asset value.
WE ARE OPTIMISTIC ABOUT THE MUNICIPAL MARKET AND DO NOT ANTICIPATE EVENTS THAT
WOULD CAUSE US TO CHANGE THE FUNDS' INVESTMENT STRATEGY AS THEY MOVE TOWARD
TERMINATION. However, we remain watchful for further negative economic news or a
significant increase in the number of municipal bond refundings due to lower
interest rates and will manage your funds accordingly.
Thank you for your investment in the American Municipal Term Trusts. We remain
committed to providing you with quality service and look forward to helping you
achieve your investment goals.
Sincerely,
/s/ Douglas J. White /s/ Ronald R. Reuss
Douglas J. White Ronald R. Reuss
Portfolio Manager Portfolio Manager
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NET ASSET VALUE SUMMARY
- --------------------------------------------------------------------------------
Common Shares
<TABLE>
<CAPTION>
AXT BXT CXT
Inception Inception Inception
3/27/91 9/26/91 11/27/92
<S> <C> <C> <C>
Initial Offering Price $10.00 $10.00 $10.00
- --------------------------------------------------------------------------------
Initial Offering and Underwriting Expenses
(Common and Preferred Stock) - $0.67 - $0.66 - $0.67
- --------------------------------------------------------------------------------
Accumulated Realized Gains or Losses at 6/30/98 $0.09 $0.04 $0.06
- --------------------------------------------------------------------------------
SUBTOTAL $9.42 $9.38 $9.39
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Dividend Reserve
(Undistributed Net Investment Income) at 6/30/98 + $0.81 + $0.80 + $0.54
- --------------------------------------------------------------------------------
Unrealized Appreciation on Investments at 6/30/98 + $1.25 + $1.40 + $1.48
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ON 6/30/98 $11.48 $11.58 $11.41
</TABLE>
1998 Semiannual Report 4 American Municipal Term Trusts
<PAGE>
PORTFOLIO MANAGERS' LETTER (CONTINUED)
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PORTFOLIO COMPOSITIONS
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As a percentage of total assets on June 30, 1998
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST (AXT)
<S> <C>
Hospital Revenue 18%
Industrial Development
Revenue 1%
Sales/Excise
Tax Revenue 13%
Airport Revenue 1%
Housing Revenue 1%
Electric Revenue 29%
General Obligations 16%
Miscellaneous Revenue 1%
Other Assets 2%
Education Revenue 6%
Leasing Revenue 3%
Water/Sewer/Pollution
Control Revenue 9%
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST II(BXT)
<S> <C>
Hospital Revenue 23%
Industrial Development
Revenue 3%
Sales/Excise
Tax Revenue 6%
Airport Revenue 1%
Housing Revenue 2%
Miscellaneous Revenue 5%
Electric Revenue 17%
General Obligations 16%
Multiple Utility Revenue 2%
Other Assets 2%
Education Revenue 8%
Leasing Revenue 5%
Water/Sewer/Pollution
Control Revenue 10%
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST III(CXT)
<S> <C>
General Obligations 19%
Housing Revenue 5%
Other Assets 1%
Multiple Utility Revenue 4%
Hospital Revenue 21%
Electric Revenue 13%
Leasing Revenue 9%
Health/Hospital
Facilities Revenue 2%
Education Revenue 4%
Water/Sewer/Pollution
Control Revenue 22%
</TABLE>
1998 Semiannual Report 5 American Municipal Term Trusts
<PAGE>
Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1998
................................................................................
<TABLE>
<CAPTION>
AMERICAN AMERICAN AMERICAN
MUNICIPAL MUNICIPAL MUNICIPAL
TERM TRUST TERM TRUST II TERM TRUST III
------------- -------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments in securities at market value* (note 2) ........ $142,870,939 $ 121,037,161 $ 86,714,549
Cash in bank on demand deposit ............................ 105,070 63,763 138,457
Accrued interest receivable ............................... 2,442,091 1,976,217 1,119,593
------------- -------------- --------------
Total assets ............................................ 145,418,100 123,077,141 87,972,599
------------- -------------- --------------
LIABILITIES:
Preferred stock dividends payable (note 3) ................. 26,199 4,004 5,539
Payable for investment securities purchased on a when-issued
basis (note 2) ........................................... 5,787,991 857,469 856,967
Accrued investment management fee ......................... 28,646 25,085 17,898
Accrued remarketing agent fee ............................. 20,662 9,246 2,170
Accrued administrative fee ................................ 17,188 15,051 10,739
------------- -------------- --------------
Total liabilities ....................................... 5,880,686 910,855 893,313
------------- -------------- --------------
Net assets applicable to outstanding capital stock ...... $139,537,414 $ 122,166,286 $ 87,079,286
------------- -------------- --------------
------------- -------------- --------------
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital
(common and preferred stock) ............................ $121,433,704 $ 105,777,790 $ 76,084,420
Undistributed net investment income ....................... 6,750,684 5,788,927 2,844,032
Accumulated net realized gain on investments .............. 772,933 268,365 306,512
Unrealized appreciation of investments .................... 10,580,093 10,331,204 7,844,322
------------- -------------- --------------
Total - representing net assets applicable to outstanding
capital stock ......................................... $139,537,414 $ 122,166,286 $ 87,079,286
------------- -------------- --------------
------------- -------------- --------------
* Investments in securities at identified cost ............ $132,290,846 $ 110,705,957 $ 78,870,227
------------- -------------- --------------
------------- -------------- --------------
NET ASSET VALUE AND MARKET PRICE OF COMMON STOCK:
Net assets applicable to common stock ..................... $ 97,037,414 $ 85,166,286 $ 60,479,286
Shares of common stock outstanding (authorized 200 million
shares for each fund of $0.01 par value) ................ 8,455,000 7,355,820 5,300,000
Net asset value ........................................... $ 11.48 $ 11.58 $ 11.41
Market price .............................................. $ 11.25 $ 11.13 $ 10.81
LIQUIDATION PREFERENCE OF PREFERRED STOCK:
Net assets applicable to preferred stock (note 3) .......... $ 42,500,000 $ 37,000,000 $ 26,600,000
Shares of preferred stock outstanding (authorized
1 million shares for each fund) ......................... 1,700 1,480 1,064
Liquidation preference per share .......................... $ 25,000 $ 25,000 $ 25,000
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 6 American Municipal Term Trusts
<PAGE>
Financial Statements (Unaudited) (continued)
- ---------------------------------------------------------------------
STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 1998
................................................................................
<TABLE>
<CAPTION>
AMERICAN
AMERICAN AMERICAN MUNICIPAL
MUNICIPAL MUNICIPAL TERM TRUST
TERM TRUST TERM TRUST II III
------------ ------------- ------------
<S> <C> <C> <C>
INCOME:
Interest .................................................. $ 4,236,407 $ 3,633,950 $ 2,445,401
------------ ------------- ------------
EXPENSES (NOTE 5):
Investment management fee ................................. 173,237 151,655 108,026
Administrative fee ........................................ 103,942 90,993 64,815
Remarketing agent fee ..................................... 53,420 46,506 33,434
Custodian and accounting fees ............................. 49,346 44,135 34,101
Transfer agent fees ....................................... 2,047 1,745 1,333
Registration fees ......................................... 17,420 17,420 17,420
Reports to shareholders ................................... 11,630 6,439 5,465
Directors' fees ........................................... 9,061 9,061 9,061
Audit and legal fees ...................................... 31,054 30,520 31,313
Other expenses ............................................ 10,882 4,644 6,741
------------ ------------- ------------
Total expenses .......................................... 462,039 403,118 311,709
Less expenses paid indirectly ......................... (2,255) (1,423) (3,630)
------------ ------------- ------------
Total net expenses ...................................... 459,784 401,695 308,079
------------ ------------- ------------
Net investment income ................................... 3,776,623 3,232,255 2,137,322
------------ ------------- ------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gain on investments (note 4) ................. 773,549 268,842 306,514
Net change in unrealized appreciation or depreciation of
investments ............................................. (1,759,448) (1,115,076) (591,974)
------------ ------------- ------------
Net loss on investments ................................. (985,899) (846,234) (285,460)
------------ ------------- ------------
Net increase in net assets resulting from operations
..................................................... $ 2,790,724 $ 2,386,021 $ 1,851,862
------------ ------------- ------------
------------ ------------- ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 7 American Municipal Term Trusts
<PAGE>
Financial Statements (continued)
- ---------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL
TERM TRUST
-----------------------------
Six Months
Ended 6/30/98 Year Ended
(Unaudited) 12/31/97
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 3,776,623 $ 7,673,737
Net realized gain on investments .......................... 773,549 353,781
Net change in unrealized appreciation or depreciation of
investments ............................................. (1,759,448) (534,779)
------------- -------------
Net increase in net assets resulting from operations .... 2,790,724 7,492,739
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (2,291,305) (5,499,132)
Preferred stock dividends ............................... (763,167) (1,464,545)
From net realized gains:
Common stock dividends .................................. -- (477,708)
Preferred stock dividends ............................... -- (133,125)
------------- -------------
Total distributions ..................................... (3,054,472) (7,574,510)
------------- -------------
Total decrease in net assets .......................... (263,748) (81,771)
Net assets at beginning of period ......................... 139,801,162 139,882,933
------------- -------------
Net assets at end of period ............................... $139,537,414 $ 139,801,162
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 6,750,684 $ 6,028,533
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 8 American Municipal Term Trusts
<PAGE>
Financial Statements (continued)
- ---------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL
TERM TRUST II
-----------------------------
Six Months
Ended 6/30/98 Year Ended
(Unaudited) 12/31/97
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 3,232,255 $ 6,520,017
Net realized gain on investments .......................... 268,842 507,944
Net change in unrealized appreciation or depreciation of
investments ............................................. (1,115,076) 564,172
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Net increase in net assets resulting from operations .... 2,386,021 7,592,133
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (1,901,480) (4,563,551)
Preferred stock dividends ............................... (673,471) (1,264,544)
From net realized gains:
Common stock dividends .................................. -- (393,536)
Preferred stock dividends ............................... -- (115,597)
------------- -------------
Total distributions ..................................... (2,574,951) (6,337,228)
------------- -------------
Total increase (decrease) in net assets ............... (188,930) 1,254,905
Net assets at beginning of period ......................... 122,355,216 121,100,311
------------- -------------
Net assets at end of period ............................... $122,166,286 $ 122,355,216
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 5,788,927 $ 5,131,623
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 9 American Municipal Term Trusts
<PAGE>
Financial Statements (continued)
- ---------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL
TERM TRUST III
-----------------------------
Six Months
Ended 6/30/98 Year Ended
(Unaudited) 12/31/97
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 2,137,322 $ 4,346,533
Net realized gain on investments .......................... 306,514 390,738
Net change in unrealized appreciation or depreciation of
investments ............................................. (591,974) 2,143,340
------------- -------------
Net increase in net assets resulting from operations .... 1,851,862 6,880,611
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (1,258,750) (3,021,000)
Preferred stock dividends ............................... (478,452) (873,017)
From net realized gains:
Common stock dividends .................................. -- (367,290)
Preferred stock dividends ............................... (2,170) (116,919)
------------- -------------
Total distributions ..................................... (1,739,372) (4,378,226)
------------- -------------
Total increase in net assets .......................... 112,490 2,502,385
Net assets at beginning of period ......................... 86,966,796 84,464,411
------------- -------------
Net assets at end of period ............................... $ 87,079,286 $ 86,966,796
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 2,844,032 $ 2,443,912
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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1998 Semiannual Report 10 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
................................
American Municipal Term Trust Inc. (AXT), American Municipal Term
Trust Inc. II (BXT) and American Municipal Term Trust Inc. III
(CXT) (the funds) are registered under the Investment Company Act
of 1940 (as amended) as diversified, closed-end management
investment companies. AXT, BXT and CXT expect to terminate
operations and distribute all of their net assets to shareholders
on or shortly before April 15, 2001, April 15, 2002, and April
15, 2003, respectively, although termination may be extended to a
date no later than April 15, 2006, April 15, 2007, and April 15,
2008, respectively. The funds invest primarily in high-quality
municipal obligations including municipal zero-coupon securities.
Fund shares are listed on the New York Stock Exchange under the
symbols AXT, BXT and CXT, respectively.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
................................
INVESTMENTS IN SECURITIES
Portfolio securities for which market quotations are readily
available are valued at current market value. If market
quotations or valuations are not readily available, or if such
quotations or valuations are believed to be inaccurate,
unreliable or not reflective of market value, portfolio
securities are valued according to procedures adopted by the
funds' board of directors in good faith at "fair value", that is,
a price that the funds might reasonably expect to receive for the
security or other asset upon its current sale.
The current market value of certain fixed income securities is
provided by an independent pricing service. Fixed income
securities for which prices are not available from an independent
pricing service but where an active market exists are valued
using market quotations obtained from one or more dealers that
make markets in the securities or from a widely-used quotation
system. Short-term securities with maturities of 60 days or less
are valued at amortized cost, which approximates market value.
Securities transactions are accounted for on the date securities
are purchased or sold. Realized gains and losses are calculated
on the identified-cost basis. Interest income, including
amortization of bond discount and premium, is recorded on an
accrual basis.
- ---------------------------------------------------------------------
1998 Semiannual Report 11 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been purchased by
the funds on a when-issued or forward-commitment basis can take
place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior to
their delivery. The funds segregate, with their custodian, assets
with a market value equal to the amount of their purchase
commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of the
funds' net asset value if the funds make such purchases while
remaining substantially fully invested. As of June 30, 1998,
American Municipal Term Trust Inc., American Municipal Term Trust
Inc. II, and American Municipal Term Trust Inc. III had entered
into outstanding when-issued or forward commitments of
$5,787,991, $857,469 and $856,967, respectively.
FEDERAL TAXES
Each fund is treated separately for federal income tax purposes.
Each fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and not
be subject to federal income tax. Therefore, no income tax
provision is required. The funds intend to distribute their
taxable net investment income and realized gains, if any, to
avoid the payment of any federal excise taxes.
Net investment income and net realized gains and losses may
differ for financial statement and tax purposes primarily because
of market discount amortization. The character of distributions
made during the year from net investment income or net realized
gains may differ from its ultimate characterization for federal
income tax purposes. In addition, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gains or
losses were recorded by the funds.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are made monthly for
common shareholders and weekly for preferred shareholders. Common
stock distributions are recorded as of the close of
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1998 Semiannual Report 12 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
business on the ex-dividend date and preferred stock dividends
are accrued daily. Net realized gains distributions, if any, will
be made at least annually. Distributions are payable in cash or,
for common shareholders pursuant to the funds' dividend
reinvestment plans, reinvested in additional shares of the funds'
common stock. Under the plans, common shares will be purchased in
the open market.
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
in the financial statements. Actual results could differ from
these estimates.
(3) REMARKETED
PREFERRED
STOCK
................................
American Municipal Term Trust Inc., American Municipal Term Trust
Inc. II, and American Municipal Term Trust Inc. III have issued
and, as of June 30, 1998, have outstanding 1,700 shares, 1,480
shares, and 1,064 shares, respectively, of remarketed preferred
stock (RP) with a liquidation preference of $25,000 per share for
each fund. The dividend rate on the RP is adjusted every seven
days as determined by the remarketing agent. On June 30, 1998,
the dividend rates were 3.75%, 3.95% and 3.80% for American
Municipal Term Trust, American Municipal Term Trust II, and
American Municipal Term Trust III, respectively.
RP is a registered trademark of Merrill Lynch & Company.
(4) INVESTMENT
SECURITY
TRANSACTIONS
................................
Cost of purchases and proceeds from sales of securities, other
than temporary investments in short-term securities, for the six
months ended June 30, 1998 were as follows:
<TABLE>
<CAPTION>
AMERICAN AMERICAN AMERICAN
MUNICIPAL MUNICIPAL MUNICIPAL
TERM TRUST TERM TRUST II TERM TRUST III
----------- -------------- ---------------
<S> <C> <C> <C>
Purchases .............................. $11,316,736 $1,625,551 $3,077,400
Proceeds from sales .................... $ 8,257,226 $1,554,365 $3,622,885
</TABLE>
(5) EXPENSES
................................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The funds have entered into an investment advisory agreement with
Piper Capital Management Incorporated. In addition, Piper Capital
provided services under an administration agreement
- ---------------------------------------------------------------------
1998 Semiannual Report 13 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
through April 30, 1998. Effective May 1, 1998, the fund entered
into an administration agreement with U.S. Bank, an affiliate of
the advisor.
The investment advisory agreement provides the advisor with a
monthly investment management fee in an amount equal to an
annualized rate of 0.25% of the funds' average weekly net assets
(computed by subtracting liabilities, which exclude preferred
stock, from the value of the total assets of the funds). For its
fee, the advisor provides investment advice and, in general,
conducts the management and investment activity of the funds.
The administration agreement provides the administrator with a
monthly fee in an amount equal to an annualized rate of 0.15% of
the funds' average weekly net assets (computed by subtracting
liabilities, which exclude preferred stock, from the value of the
total assets of the funds). For its fee, the administrator will
provide regulatory reporting and record-keeping services for the
funds.
REMARKETING AGENT FEE
The funds have entered into a remarketing agent agreement with
Merrill Lynch, Pierce, Fenner & Smith (the remarketing agent).
The remarketing agreement provides the remarketing agent with a
monthly fee in an amount equal to an annualized rate of 0.25% of
the funds' average amount of RP outstanding. For its fee, the
remarketing agent will remarket shares of RP tendered to it, on
behalf of shareholders thereof, and will determine the applicable
dividend rate for each seven-day dividend period.
OTHER FEES AND EXPENSES
In addition to the investment management, administrative and the
remarketing agent fees, the funds are responsible for paying most
other operating expenses including: outside directors' fees and
expenses; custodian fees; registration fees; printing and
shareholder reports; transfer agent fees and expenses; legal,
auditing and accounting services; insurance; interest; taxes and
other miscellaneous expenses.
- ---------------------------------------------------------------------
1998 Semiannual Report 14 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
Expenses paid indirectly represent a reduction of custodian fees
for earnings on miscellaneous cash balances maintained by the
funds.
(6) ADVISOR
ACQUISITION
................................
On May 1, 1998, Piper Jaffray Companies Inc., the parent company
of the funds' investment advisor, was acquired by U.S. Bancorp.
U.S. Bancorp is a multi-state bank holding company headquartered
in Minneapolis, Minnesota with a geographic service area spanning
17 states. As of March 31, 1998, U.S. Bancorp was the 15th
largest U.S. commercial bank holding company, with assets of
nearly $70.9 billion. U.S. Bank National Association ("U.S.
Bank"), a wholly owned subsidiary of U.S. Bancorp, currently acts
as the investment advisor to 32 mutual funds (the "First American
Funds"). As of March 31, 1998, U.S. Bank, acting through its
First American Asset Management group, managed more than $65.3
billion in assets, including approximately $23.3 billion in
assets of the First American Funds.
Under the Investment Company Act of 1940, as amended,
consummation of the acquisition of Piper Jaffray Companies by
U.S. Bancorp resulted in the assignment and automatic termination
of the funds investment advisory agreements with Piper Capital
Management Incorporated. Each fund has entered into new
investment advisory agreements with Piper Capital Management,
which shareholders will be asked to approve at the funds' annual
meeting in August. Shareholders will also be asked to approve new
investment advisory agreements with U.S. Bank which, if approved,
will replace the agreements between the funds and Piper Capital
Management.
- ---------------------------------------------------------------------
1998 Semiannual Report 15 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(7) FINANCIAL
HIGHLIGHTS
................................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
AMERICAN MUNICIPAL TERM TRUST
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
6/30/98 ----------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period $11.51 $11.52 $11.83 $10.52 $11.89 $10.57
----------- ------ ------ ------ ------ ------
Operations:
Net investment income ................ 0.45 0.91 0.93 0.94 0.93 0.92
Net realized and unrealized gains
(losses) on investments ............ (0.12) (0.02) (0.35) 1.22 (1.50) 1.17
----------- ------ ------ ------ ------ ------
Total from operations .............. 0.33 0.89 0.58 2.16 (0.57) 2.09
----------- ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income
Paid to common shareholders ........ (0.27) (0.65) (0.65) (0.65) (0.65) (0.65)
Paid to preferred shareholders ..... (0.09) (0.17) (0.17) (0.20) (0.15) (0.12)
Paid to common shareholders ........ -- (0.06) (0.05) -- -- --
From net realized gains
Paid to preferred shareholders ..... -- (0.02) (0.02) -- -- --
----------- ------ ------ ------ ------ ------
Total distributions to
shareholders ..................... (0.36) (0.90) (0.89) (0.85) (0.80) (0.77)
----------- ------ ------ ------ ------ ------
Net asset value, common stock, end
of period ........................ $11.48 $11.51 $11.52 $11.83 $10.52 $11.89
----------- ------ ------ ------ ------ ------
----------- ------ ------ ------ ------ ------
Market value, common stock, end of
period ............................. $11.25 $11.50 $11.25 $11.00 $10.00 $10.88
----------- ------ ------ ------ ------ ------
----------- ------ ------ ------ ------ ------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 2.11% 6.22% 3.47% 18.93% (6.34)% 18.98%
Total return, common stock, market value
(b) .................................. 0.66% 8.89% 9.06% 16.91% (2.11)% 9.83%
Net assets at end of period (in
millions) ............................ $ 140 $ 140 $ 140 $ 143 $ 131 $ 143
Ratio of expenses to average weekly net
assets applicable to common shares
(c) .................................. 0.96%(g) 0.90% 0.91% 0.88% 0.84% 0.85%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 6.25%(g) 6.39% 6.57% 6.53% 7.04% 7.11%
Portfolio turnover rate (excluding
short-term
securities) .......................... 6% 4% 9% 1% 1% 2%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 43 $ 43 $ 43 $ 43 $ 43 $ 43
Asset coverage ratio (f) ............... 328% 329% 329% 335% 309% 336%
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) RATIO OF EXPENSES TO TOTAL AVERAGE WEEKLY NET ASSETS IS 0.67% (ANNUALIZED),
0.63%, 0.64%, 0.61%, 0.58% AND 0.59% FOR THE SIX MONTHS ENDED JUNE 30,
1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993, RESPECTIVELY.
DIVIDEND PAYMENTS TO PREFERRED SHAREHOLDERS ARE NOT CONSIDERED AN EXPENSE.
(d) RATIO REFLECTS TOTAL NET INVESTMENT INCOME LESS DIVIDENDS PAID TO PREFERRED
SHAREHOLDERS FROM NET INVESTMENT INCOME DIVIDED BY NET ASSETS APPLICABLE TO
COMMON SHARES.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 5.45%
(ANNUALIZED), 5.49%, 5.59%, 5.72%, 5.80% AND 5.65% FOR THE SIX MONTHS ENDED
JUNE 30, 1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993,
RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) ANNUALIZED.
- ---------------------------------------------------------------------
1998 Semiannual Report 16 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(7) FINANCIAL
HIGHLIGHTS
................................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
AMERICAN MUNICIPAL TERM TRUST II
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
6/30/98 ----------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $11.60 $11.43 $11.71 $10.27 $11.66 $10.26
----------- ------ ------ ------ ------ ------
Operations:
Net investment income ................ 0.44 0.89 0.90 0.90 0.90 0.89
Net realized and unrealized gains
(losses) on investments ............ (0.11) 0.14 (0.35) 1.37 (1.52) 1.25
----------- ------ ------ ------ ------ ------
Total from operations .............. 0.33 1.03 0.55 2.27 (0.62) 2.14
----------- ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income
Paid to common shareholders ........ (0.26) (0.62) (0.62) (0.62) (0.62) (0.62)
Paid to preferred shareholders ..... (0.09) (0.17) (0.17) (0.20) (0.15) (0.12)
From net realized gains
Paid to common shareholders ........ -- (0.05) (0.03) (0.01) -- --
Paid to preferred shareholders ..... -- (0.02) (0.01) -- -- --
----------- ------ ------ ------ ------ ------
Total distributions to
shareholders ..................... (0.35) (0.86) (0.83) (0.83) (0.77) (0.74)
----------- ------ ------ ------ ------ ------
Net asset value, common stock, end of
period ............................... $11.58 $11.60 $11.43 $11.71 $10.27 $11.66
----------- ------ ------ ------ ------ ------
----------- ------ ------ ------ ------ ------
Market value, common stock, end of
period ............................... $11.13 $11.38 $10.75 $10.63 $ 9.63 $10.75
----------- ------ ------ ------ ------ ------
----------- ------ ------ ------ ------ ------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 2.07% 7.57% 3.33% 20.48% (6.80)% 20.03%
Total return, common stock, market value
(b) .................................. 0.51% 12.46% 7.66% 17.28% (4.83)% 9.74%
Net assets at end of period (in
millions) ............................ $ 122 $ 122 $ 121 $ 123 $ 113 $ 123
Ratio of expenses to average weekly net
assets applicable to common shares
(c) .................................. 0.95%(g) 0.91% 0.92% 0.90% 0.88% 0.87%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 6.05%(g) 6.21% 6.41% 6.35% 7.01% 6.89%
Portfolio turnover rate (excluding
short-term securities and dollar roll
transactions) ........................ 1% 6% 6% 3% -- 2%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 37 $ 37 $ 37 $ 37 $ 37 $ 37
Asset coverage ratio (f) ............... 330% 331% 327% 333% 304% 332%
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) RATIO OF EXPENSES TO TOTAL AVERAGE WEEKLY NET ASSETS IS 0.66% (ANNUALIZED),
0.64%, 0.64%, 0.62%, 0.60% AND 0.60% FOR THE SIX MONTHS ENDED JUNE 30,
1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993, RESPECTIVELY.
DIVIDEND PAYMENTS TO PREFERRED SHAREHOLDERS ARE NOT CONSIDERED AN EXPENSE.
(d) RATIO REFLECTS TOTAL NET INVESTMENT INCOME LESS DIVIDENDS PAID TO PREFERRED
SHAREHOLDERS FROM NET INVESTMENT INCOME DIVIDED BY NET ASSETS APPLICABLE TO
COMMON SHARES.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 5.33%
(ANNUALIZED), 5.36%, 5.48%, 5.58%, 5.72% AND 5.51% FOR THE SIX MONTHS ENDED
JUNE 30, 1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993,
RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) ANNUALIZED
- ---------------------------------------------------------------------
1998 Semiannual Report 17 American Municipal Term Trusts
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
(7) FINANCIAL
HIGHLIGHTS
................................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
AMERICAN MUNICIPAL TERM TRUST III
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
6/30/98 -----------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $11.39 $10.92 $11.11 $ 9.31 $ 10.95 $ 9.57
----------- ------ ------ ------ ------- ------
Operations:
Net investment income ................ 0.40 0.82 0.83 0.83 0.83 0.81
Net realized and unrealized gains
(losses) on investments ............ (0.05) 0.47 (0.27) 1.73 (1.75) 1.36
----------- ------ ------ ------ ------- ------
Total from operations .............. 0.35 1.29 0.56 2.56 (0.92) 2.17
----------- ------ ------ ------ ------- ------
Distributions to shareholders:
From net investment income
Paid to common shareholders ........ (0.24) (0.57) (0.57) (0.57) (0.57) (0.57)
Paid to preferred shareholders ..... (0.09) (0.16) (0.18) (0.19) (0.15) (0.11)
From net realized gains
Paid to common shareholders ........ -- (0.07) -- -- -- --
Paid to preferred shareholders ..... -- (0.02) -- -- -- --
----------- ------ ------ ------ ------- ------
Total distributions to
shareholders ..................... (0.33) (0.82) (0.75) (0.76) (0.72) (0.68)
----------- ------ ------ ------ ------- ------
Offering costs and underwriting
discounts associated with the
remarketed preferred stock ........... $ -- $ -- $ -- $ -- $ -- $(0.11)
----------- ------ ------ ------ ------- ------
----------- ------ ------ ------ ------- ------
Net asset value, common stock, end of
period ............................... $11.41 $11.39 $10.92 $11.11 $ 9.31 $10.95
----------- ------ ------ ------ ------- ------
----------- ------ ------ ------ ------- ------
Market value, common stock, end of
period ............................... $10.81 $10.94 $10.38 $10.13 $ 8.50 $10.13
----------- ------ ------ ------ ------- ------
----------- ------ ------ ------ ------- ------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 2.27% 10.42% 3.65% 25.93% (10.04)% 20.74%
Total return, common stock, market value
(b) .................................. 1.47% 11.93% 8.38% 26.32% (10.93)% 8.35%
Net assets at end of period (in
millions) ............................ $ 87 $ 87 $ 84 $ 85 $ 76 $ 85
Ratio of expenses to average weekly net
assets applicable to common shares
(c) .................................. 1.04%(g) 0.99% 1.01% 0.98% 0.96% 0.91%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 5.53%(g) 5.91% 6.08% 6.05% 6.88% 6.85%
Portfolio turnover rate (excluding
short-term securities and dollar roll
transactions) ........................ 4% 7% 3% 5% 3% 1%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 27 $ 27 $ 27 $ 27 $ 27 $ 27
Asset coverage ratio (f) ............... 327% 327% 318% 321% 285% 318%
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) RATIO OF EXPENSES TO TOTAL AVERAGE WEEKLY NET ASSETS IS 0.72% (ANNUALIZED),
0.68%, 0.69%, 0.66%, 0.64% AND 0.61% FOR THE SIX MONTHS ENDED JUNE 30,
1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993, RESPECTIVELY.
DIVIDEND PAYMENTS TO PREFERRED SHAREHOLDERS ARE NOT CONSIDERED AN EXPENSE.
(d) RATIO REFLECTS TOTAL NET INVESTMENT INCOME LESS DIVIDENDS PAID TO PREFERRED
SHAREHOLDERS FROM NET INVESTMENT INCOME DIVIDED BY NET ASSETS APPLICABLE TO
COMMON SHARES.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 4.95%
(ANNUALIZED), 5.09%, 5.26%, 5.38%, 5.53% AND 5.34% FOR THE SIX MONTHS ENDED
JUNE 30, 1998, AND FISCAL YEARS 1997, 1996, 1995, 1994 AND 1993,
RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) ANNUALIZED
- ---------------------------------------------------------------------
1998 Semiannual Report 18 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited)
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST June 30, 1998
................................................................................................
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MUNICIPAL LONG-TERM SECURITIES (99.2%):
CALIFORNIA (2.9%):
Southern California Public Power Authority Power
Project Revenue, 5.00%, 7/1/01 .................... $ 4,000,000 $ 4,056,080
-------------
COLORADO (2.1%):
Health Care Facility (FSA) (Prerefunded to 2/15/01),
7.25%, 2/15/16 .................................... 1,925,000(d) 2,112,995
Health Facilities Authority Revenue, 4.10%-4.45%,
1/1/99-1/1/01 ..................................... 795,000 796,212
-------------
2,909,207
-------------
DISTRICT OF COLUMBIA (3.4%):
General Obligation (MBIA) (Callable 6/1/00 at 102),
6.75%, 6/1/08 ..................................... 4,400,000 4,692,644
-------------
FLORIDA (2.3%):
Jacksonville Electric Authority (Prerefunded to
10/1/00), 7.00%, 10/1/12 .......................... 3,000,000(d) 3,239,730
-------------
GEORGIA (2.2%):
Municipal Electric Authority (MBIA) (Prerefunded to
1/1/01), 7.00%, 1/1/16 ............................ 2,840,000(d) 3,091,738
-------------
HAWAII (0.5%):
State Department Budget and Finance, 4.45%,
7/1/01 ............................................ 720,000 723,816
-------------
ILLINOIS (9.6%):
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to
1/1/01), 7.10%, 1/1/11 ............................ 1,525,000(d) 1,663,775
Health Facility-Evangelical Hospital (FSA) (Callable
1/1/01 at 102), 7.13%, 1/1/21 ..................... 2,500,000 2,697,800
Higher Education Facility-Augustana College (Connie
Lee), 4.80%, 10/1/01 .............................. 500,000 509,915
State Dedicated Tax-Civic Center (AMBAC) (Callable
12/15/00 at 102), 7.00%, 12/15/13 ................. 2,000,000 2,169,500
State Sales Tax Revenue (Prerefunded to 6/15/01),
6.90%, 6/15/12-6/15/13 ............................ 2,300,000(d) 2,524,549
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 19 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
State Sales Tax Revenue (Prerefunded to 6/15/99),
7.25%, 6/15/14 .................................... $ 3,650,000(d) $ 3,844,326
-------------
13,409,865
-------------
INDIANA (5.8%):
Hamilton S.E. School Building Corporation (AMBAC)
(Callable 1/1/01 at 102), 7.00%, 7/1/08 ........... 3,445,000 3,739,995
Indiana Bond Bank, 5.00%, 2/1/01 .................... 650,000 662,753
Marion County Convention Center (AMBAC) (Callable
6/1/01 at 102), 7.00%, 6/1/10 ..................... 345,000 376,978
Marion County Convention Center (AMBAC) (Prerefunded
to 6/1/01), 7.00%, 6/1/10 ......................... 870,000(d) 956,278
St. Joseph County Hospital Authority (MBIA)(Callable
8/15/01 at 102), 7.00%, 8/15/11 ................... 1,000,000 1,103,360
Whitley County Middle School Building Corp. (FSA),
3.70%-3.90%, 7/10/98-1/10/99 ...................... 1,255,000 1,255,742
-------------
8,095,106
-------------
IOWA (0.8%):
Dubuque Hospital Revenue (Callable 1/1/02 at 102),
6.88%, 1/1/12 ..................................... 1,000,000 1,082,100
-------------
MAINE (2.4%):
Municipal Bond Bank (Prerefunded 11/1/01), 7.20%,
11/1/13 3,000,000(d) 3,340,410
-------------
MINNESOTA (0.9%):
East Grand Forks Industrial Development Revenue
(Callable 4/1/01 at 102), 8.00%, 4/1/11 ........... 1,000,000 1,090,980
Morrhead Gross Revenue, 4.75%, 12/1/00 .............. 115,000 115,217
-------------
1,206,197
-------------
NEBRASKA (0.8%):
Hospital Lease Investment Financing (MBIA)
(Prerefunded to 3/1/01), 7.00%, 3/1/06 ............ 1,000,000(d) 1,092,890
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 20 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
NEVADA (6.3%):
Clark County School District (MBIA) (Prerefunded to
6/1/01), 7.00%, 6/1/09 ............................ $ 3,000,000(d) $ 3,269,910
University of Nevada Revenue (AMBAC) (Prerefunded to
7/1/00), 7.13%, 7/1/16 ............................ 2,720,000(d) 2,937,219
Washoe County Limited Tax General Obligation,
Zero-Coupon (MBIA), 7.12%, 7/1/06 ................. 3,725,000(b) 2,600,758
-------------
8,807,887
-------------
NEW YORK (3.7%):
New York City General Obligation, 5.00%, 8/1/01 ..... 4,000,000 4,093,920
State Local Government Assistance Corp., 6.00%,
4/1/99 ............................................ 1,000,000 1,017,530
-------------
5,111,450
-------------
OKLAHOMA (1.3%):
Tulsa County Oklahoma Independent School District No.
5, 6.00%, 7/1/00-7/1/01 ........................... 1,670,000(f) 1,746,051
-------------
PENNSYLVANIA (3.1%):
Higher Education-Duquesne University (MBIA) (Callable
4/1/01 at 100), 7.00%, 4/1/10 ..................... 1,000,000 1,077,110
Sayre Healthcare Facility (AMBAC) (Callable 3/1/01 at
102), 7.00%, 3/1/11 ............................... 3,000,000 3,242,850
-------------
4,319,960
-------------
SOUTH DAKOTA (3.6%):
Health and Education Facility Revenue (Callable
5/1/01 at 102), 7.00%, 11/1/07 .................... 2,500,000 2,703,650
Rapid City Area School District (MBIA) (Prerefunded
to 1/1/02), 7.20%, 1/1/11 ......................... 1,770,000(d) 1,950,381
Sioux Falls Health Facilities Revenue (AMBAC)
(Callable 12/01/99 at 100), 4.45%, 6/1/01 ......... 370,000 371,454
-------------
5,025,485
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 21 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
TENNESSEE (2.8%):
Bristol Health and Education Facility (FGIC)
(Prerefunded to 3/1/01), 7.00%, 9/1/11 ............ $ 1,000,000(d) $ 1,092,090
Housing Development Authority (FSA) (Callable 7/1/00
at 103), 7.60%, 7/1/16 ............................ 1,700,000 1,788,417
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/01 .................................... 1,000,000(e) 1,028,550
-------------
3,909,057
-------------
TEXAS (17.7%):
Austin Utility System Revenue (BIG) (Prerefunded to
5/15/01), 8.00%, 5/15/01 .......................... 500,000(d) 553,560
Corpus Christi Utility System Revenue (FGIC)
(Callable 7/15/00 at 102), 7.00%, 7/15/10 ......... 1,500,000 1,611,000
Harris County Health Facilities (FSA) (Callable
10/1/01 at 102), 6.85%, 10/1/06 ................... 2,000,000 2,204,780
Houston Hotel Occupancy (FGIC) (Prerefunded to
7/1/01), 7.00%, 7/1/15 ............................ 4,700,000(d) 5,092,450
Houston Independent School District, Zero-Coupon
(AMBAC), 7.14%, 8/15/06 ........................... 4,285,000(b) 2,968,305
Lower Colorado River Authority (AMBAC) (Callable
1/1/01 at 102), 7.00%, 1/1/11 ..................... 415,000 449,192
Lower Colorado River Authority (AMBAC) (Prerefunded
to 1/1/01), 7.00%, 1/1/11 ......................... 585,000(d) 636,854
Lower Colorado River Authority, Zero-Coupon (AMBAC),
7.17%, 1/1/06 ..................................... 765,000(b) 545,040
Municipal Power Agency, Zero-Coupon (AMBAC), 7.11%,
9/1/06 ............................................ 3,000,000(b) 2,073,990
San Antonio Electric and Gas, Zero-Coupon (FGIC),
7.11%, 2/1/06 ..................................... 3,000,000(b) 2,129,370
Trinity River Authority (AMBAC) (Prerefunded to
8/1/00), 7.10%, 8/1/16 ............................ 2,250,000(b) 2,392,672
Weatherford Utility System, Water Revenue (MBIA)
(Prerefunded to 9/1/01), 7.00%, 9/1/11 ............ 3,750,000(d) 4,079,175
-------------
24,736,388
-------------
UTAH (2.8%):
Intermountain Power Agency (FSA), 5.25%, 7/1/01 ..... 3,810,000 3,936,949
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 22 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
WASHINGTON (15.3%):
Chelan County Public Utilities District (MBIA), AMT,
5.20%-5.35%, 7/1/00-7/1/01 ........................ $ 885,000(e) $ 907,238
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/00), 7.00%, 12/1/09 .......... 1,450,000(d) 1,552,167
Public Power Supply System (Prerefunded to 1/1/00),
7.25%, 7/1/15 ..................................... 1,435,000(d) 1,532,465
Public Power Supply System (Prerefunded to 1/1/01),
7.63%, 7/1/10 ..................................... 5,000,000(d) 5,513,100
Public Power Supply System (Prerefunded to 7/1/00),
7.38%, 7/1/12 ..................................... 1,550,000(d) 1,680,557
Public Power Supply System, Zero-Coupon (BIG), 7.15%,
7/1/06 1,500,000(c) 1,034,265
Public Power Supply System, Zero-Coupon (FGIC),
7.17%, 7/1/06 ..................................... 5,000,000(b) 3,447,550
Public Power Supply Systems, 5.00%-5.25%,
7/1/00-7/1/01 ..................................... 3,500,000 3,579,900
Seattle Water Revenue (Prerefunded to 5/1/00), 7.25%,
5/1/17 ............................................ 2,000,000(d) 2,155,460
-------------
21,402,702
-------------
WEST VIRGINIA (3.5%):
School Building Authority (MBIA) (Prerefunded to
7/1/00), 7.25%, 7/1/15 ............................ 4,000,000(d) 4,329,800
State Water Development Authority (FSA) (Callable
11/1/01 at 102), 7.00%, 11/1/11 ................... 500,000 550,835
-------------
4,880,635
-------------
WISCONSIN (5.4%):
Amery Revenue, 4.50%-4.65%, 6/1/01 .................. 780,000 777,759
Health and Education Facilities-Gundersen Clinic
(FSA), 5.50%, 12/1/01 ............................. 2,500,000 2,610,525
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Callable 8/15/00 at 102), 7.25%,
8/15/19 ........................................... 105,000 112,893
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Prerefunded to 8/15/00), 7.25%,
8/15/19 ........................................... 1,570,000(d) 1,703,905
Health and Education Facility (MBIA) (Prerefunded to
6/1/00), 7.00%, 6/1/20 ............................ 1,600,000(d) 1,719,904
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 23 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ---------------- -------------
<S> <C> <C>
Neenah Industrial Development Revenue (Callable
6/1/00 at 101), AMT, 6.75%, 6/1/12 ................ $ 650,000(e) $ 684,606
-------------
7,609,592
-------------
Total Municipal Long-Term Securities
(cost: $127,845,846) ........................... 138,425,939
-------------
MUNICIPAL SHORT-TERM SECURITIES (3.2%):
MICHIGAN (0.6%):
Flint Hospital Building Authority, 3.60%, 7/1/15 .... 800,000(c) 800,000
-------------
NEW YORK (2.6%):
New York City, Municipal Water Authority, 3.80%,
6/15/25 ........................................... 200,000(c) 200,000
New York City, Series B, VRDN, 4.10%, 10/1/20 ....... 1,145,000(c)(e) 1,145,000
New York City, Series C, 3.00%, 10/1/23 ............. 400,000(c) 400,000
New York City, Subseries B-4, VRDN, 3.85%,
8/15/22 ........................................... 1,900,000(c)(e) 1,900,000
-------------
3,645,000
-------------
Total Municipal Short-Term Securities
(cost: $4,445,000) ............................. 4,445,000
-------------
Total Investments in Securities
(cost: $132,290,846) (g) ....................... $ 142,870,939
-------------
-------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(b) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE EFFECTIVE YIELD
ON THE DATE OF PURCHASE.
(c) FLOATING OR VARIABLE RATE OBLIGATION MATURING IN MORE THAN ONE YEAR. THE
INTEREST RATE, WHICH IS BASED ON SPECIFIC, OR AN INDEX OF, MARKET INTEREST
RATES, IS SUBJECT TO CHANGE PERIODICALLY AND IS THE EFFECTIVE RATE ON JUNE
30, 1998. THIS INSTRUMENT MAY ALSO HAVE A DEMAND FEATURE WHICH ALLOWS THE
RECOVERY OF PRINCIPAL AT ANY TIME, OR AT SPECIFIED INTERVALS NOT EXCEEDING
ONE YEAR, ON UP TO 30 DAYS' NOTICE. MATURITY DATE SHOWN REPRESENTS FINAL
MATURITY.
(d) PREREFUNDED ISSUES ARE BACKED BY U.S. GOVERNMENT OBLIGATIONS. THESE BONDS
ARE CALLED AND MATURE AT THE CALL DATE INDICATED.
(e) PORTFOLIO ABBREVIATIONS AND DEFINITIONS:
AMT - ALTERNATIVE MINIMUM TAX. AS OF JUNE 30, 1998, THE AGGREGATE
MARKET VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX WASS
$2,620,394, WHICH REPRESENTS 1.88% OF NET ASSETS.
VRDN - VARIABLE RATE DEMAND NOTE
(f) ON JUNE 30, 1998, THE TOTAL COST OF INVESTMENTS PURCHASED ON A WHEN-ISSUED
BASIS WAS $5,784,651.
(g) ALSO APPROXIMATES COST FOR FEDERAL INCOME TAX PURPOSES. THE AGGREGATE GROSS
UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS IN SECURITIES BASED
ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ..... $ 10,589,334
GROSS UNREALIZED DEPRECIATION ...... (9,241)
-------------
NET UNREALIZED APPRECIATION ..... $ 10,580,093
-------------
-------------
</TABLE>
- ---------------------------------------------------------------------
1998 Semiannual Report 24 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited)
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST II June 30, 1998
..........................................................................................
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MUNICIPAL LONG-TERM SECURITIES (97.1%):
FLORIDA (4.8%):
Manatee County, Zero-Coupon (MBIA), 6.91%,
10/1/07 ........................................... $ 2,995,000(b) $ 1,994,940
University Community Hospital (FSA) (Prerefunded to
9/1/00), 7.50%, 9/1/11 ............................ 3,500,000(b) 3,821,685
------------
5,816,625
------------
ILLINOIS (22.0%):
Belleville General Obligation (FGIC) (Prerefunded to
12/1/01), 7.13%, 12/1/08 .......................... 1,000,000(e) 1,098,230
Carbondale General Obligation (FGIC) (Prerefunded to
5/1/01), 6.90%, 5/1/12 ............................ 3,200,000(e) 3,449,376
Central Lake County, Zero-Coupon (MBIA), 6.98%,
5/1/07 ............................................ 2,370,000(b) 1,581,596
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to
1/1/01), 7.10%, 1/1/11 ............................ 1,500,000(e) 1,636,500
Chicago Wastewater Revenue (FGIC) (Prerefunded to
11/15/00), 6.75%, 11/15/20 ........................ 2,000,000(e) 2,164,720
Cook County General Obligation (AMBAC) (Prerefunded
to 11/1/01), 6.75%, 11/1/18 ....................... 5,000,000(e) 5,512,700
Decatur, Zero-Coupon (AMBAC), 6.98%, 10/1/07 ........ 1,250,000(b) 818,425
Health Facility-Evangelical Hospital (escrowed to
maturity) (Callable 4/15/02 at 102), 6.75%,
4/15/12 ........................................... 990,000 1,171,962
Health Facility-Evangelical Hospital (Prerefunded to
4/15/02), 6.75%, 4/15/12-4/15/17 .................. 1,190,000(e) 1,317,342
Health Facility-Highland Park Hospital (FGIC), 5.30%,
10/1/02 . 1,265,000 1,319,091
Higher Education Facility-Augustana College (Connie
Lee), 4.90%, 10/1/02 .............................. 500,000 512,685
Kane County Public Building Authority (MBIA)
(Prerefunded to 12/1/99), 6.88%, 12/1/10 .......... 1,000,000(e) 1,043,560
Kendall, Kane, and Will Counties, Zero-Coupon (FGIC),
6.96%, 3/1/07 ..................................... 975,000(b) 655,648
Lake County Water and Sewer System (AMBAC)
(Prerefunded to 12/1/01), 6.75%,
12/1/08-12/1/09 ................................... 4,215,000(e) 4,581,831
------------
26,863,666
------------
INDIANA (13.3%):
Boonville School Building Corporation (Callable
7/1/02 at 102), 6.90%, 7/1/09 ..................... 2,000,000 2,223,100
Indiana Bond Bank, 5.15%, 2/1/02 .................... 900,000 925,443
Indiana University, Zero-Coupon (AMBAC), 7.07%,
8/1/07 ............................................ 3,180,000(b) 2,098,005
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 25 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
Lake Central Multi-District School Building
Corporation (Prerefunded to 7/15/01), 7.00%,
1/15/14-1/15/18 ................................... $ 2,500,000(e) $ 2,750,225
Noblesville/Hamilton County School Building
Corporation (Prerefunded to 2/1/01), 7.00%,
2/1/13 ............................................ 1,000,000(e) 1,089,980
Port Commission, Cargill Inc. Project (Callable
5/1/02 at 102), 6.88%, 5/1/12 ..................... 450,000(c) 493,065
Purdue University (AMBAC) (Prerefunded to 7/1/01),
7.00%, 7/1/14 ..................................... 3,000,000(e) 3,303,750
St. Joseph County Hospital Authority (MBIA) (Callable
12/1/01 at 102), 7.00%, 12/1/12 ................... 3,000,000 3,332,130
------------
16,215,698
------------
IOWA (2.9%):
Mason City Hospital Facilities (FSA) (Prerefunded to
8/15/01), 6.88%, 8/15/09 .......................... 1,265,000(e) 1,392,727
Polk County Health Facilities (MBIA) (Prerefunded to
11/1/01), 7.10%, 11/1/09 .......................... 1,895,000(e) 2,091,985
------------
3,484,712
------------
KENTUCKY (1.0%):
Owensboro Electric Light and Power, Zero-Coupon
(AMBAC), 6.91%, 1/1/07 ............................ 1,775,000(b) 1,216,834
------------
LOUISIANA (2.9%):
New Orleans General Obligation, Zero-Coupon (AMBAC),
7.01%, 9/1/07 ..................................... 5,000,000(c) 3,251,050
Parrish of St. Martin, Cargill Inc. Project (Callable
10/1/02 at 102), 6.63%, 10/1/12 ................... 300,000(c) 326,292
------------
3,577,342
------------
MICHIGAN (0.9%):
State Housing Development Authority (FSA) (Callable
10/15/02 at 103), 6.85%, 10/15/18 ................. 1,000,000 1,071,060
------------
MONTANA (2.7%):
State Board of Investment (MBIA) (escrowed to
maturity) (Callable 6/1/01 at 102), 6.88%,
6/1/20 ............................................ 3,000,000 3,274,920
------------
NEVADA (1.7%):
Clark County School District (FGIC), 5.75%,
6/15/02 ........................................... 2,000,000 2,117,160
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 26 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
NEW HAMPSHIRE (0.9%):
Single Family Housing Authority (Callable 7/1/03 at
102), 5.85%, 7/1/10 ............................... $ 1,000,000 $ 1,035,960
------------
NEW JERSEY (1.8%):
State Educational Facilities Authority (Callable
7/1/01 at 102), 6.88%, 7/1/10 ..................... 2,000,000 2,155,880
------------
NEW YORK (0.8%):
New York City General Obligation, 5.10%, 8/1/02 ..... 1,000,000 1,030,400
------------
NORTH DAKOTA (4.7%):
Bismark Hospital Revenue (AMBAC) (Callable 5/1/01 at
102), 6.90%, 5/1/06 ............................... 4,300,000 4,690,741
Grand Forks Health Care Authority (MBIA) (Callable
12/1/01 at 102), 6.63%, 12/1/10 ................... 1,000,000 1,090,780
------------
5,781,521
------------
OKLAHOMA (0.7%):
Tulsa County Independent School District No. 5,
5.00%, 7/1/02 850,000(f) 875,126
------------
SOUTH CAROLINA (1.4%):
Lexington County Health Services (FSA) (Prerefunded
to 10/1/01), 6.75%, 10/1/18 ....................... 1,600,000 1,762,000
------------
SOUTH DAKOTA (0.6%):
Health & Education Facility Revenue (AMBAC), 4.50%,
8/1/02 . 700,000 708,918
------------
TENNESSEE (1.0%):
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/02 .................................... 1,235,000(g) 1,278,966
------------
TEXAS (8.1%):
Harris County Health Facilities (FSA) (Callable
10/1/01 at 102), 7.00%, 10/1/14 ................... 2,225,000 2,462,029
Houston Hotel Occupancy (FGIC) (Prerefunded to
7/1/01), 7.00%, 7/1/15 ............................ 5,095,000(e) 5,520,433
Houston Water and Sewer, Zero-Coupon (AMBAC), 6.91%,
12/1/07 ........................................... 3,000,000(b) 1,951,080
------------
9,933,542
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 27 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
WASHINGTON (17.0%):
Chelan County Public Utilities District (Callable
7/1/03 at 100), AMT, 7.60%, 7/1/25 ................ $ 3,000,000(g) $ 3,396,690
Chelan County Public Utilities District (MBIA), AMT,
5.45%, 7/1/02 ..................................... 385,000(g) 401,840
Clark County Public Utility District (FGIC)
(Prerefunded to 1/1/01), 6.50%, 1/1/11 ............ 2,000,000(e) 2,154,680
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/02), 6.63%, 12/1/12 .......... 300,000(e) 330,450
Public Power Supply System, 5.25%, 7/1/01 ........... 2,000,000 2,060,380
Public Power Supply System (Prerefunded to 1/1/00),
7.25%, 7/1/15 ..................................... 3,875,000(e) 4,138,190
Public Power Supply System (Prerefunded to 7/1/00),
7.00%-7.38%, 7/1/11-7/1/12 ........................ 5,225,000(e) 5,660,090
Public Power Supply System (Prerefunded to 7/1/01),
6.75%, 7/1/11 ..................................... 1,350,000(e) 1,475,213
Snohomish County Solid Waste Revenue (MBIA) (Callable
12/1/01 at 102), 7.00%, 12/1/10 ................... 1,000,000 1,111,730
------------
20,729,263
------------
WEST VIRGINIA (4.0%):
School Building Authority (MBIA) (Prerefunded to
7/1/00), 6.75%, 7/1/17 ............................ 2,500,000(e) 2,683,275
State Water Development Authority (Prerefunded to
11/1/01), 7.30%-7.40%, 11/1/11-11/1/19 ............ 2,000,000(e) 2,238,530
------------
4,921,805
------------
WISCONSIN (3.9%):
Amery Wisconsin Revenue, 4.80%, 6/1/02 .............. 420,000 419,567
Health and Education Facilities-Gundersen Clinic
(FSA), 5.10%, 12/1/02 ............................. 3,000,000 3,104,970
Neenah Industrial Development Revenue (Callable
6/1/00 at 101), AMT, 6.75%, 6/1/12 ................ 1,150,000(g) 1,211,226
------------
4,735,763
------------
Total Municipal Long-Term Securities
(cost: $108,255,957) ........................... 118,587,161
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 28 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
MUNICIPAL SHORT-TERM SECURITIES (2.0%):
INDIANA (1.5%):
Hospital Equipment Finance Authority, 3.60%,
12/1/15 ........................................... $ 1,850,000(d) $ 1,850,000
------------
NEW YORK (0.5%):
New York City, Municipal Water Authority, 3.80%,
6/15/25 ........................................... 100,000(d) 100,000
New York City, Series C, 3.00%, 10/1/23 ............. 500,000(d) 500,000
------------
600,000
------------
Total Municipal Short-Term Securities
(cost: $2,450,000) ............................. 2,450,000
------------
Total Investments in Securities
(cost: $110,705,957) (h) ....................... $121,037,161
------------
------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(b) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE EFFECTIVE YIELD
ON THE DATE OF PURCHASE.
(c) SECURITIES PURCHASED AS PART OF A PRIVATE PLACEMENT WHICH HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES
ACT OF 1933 AND ARE CONSIDERED TO BE ILLIQUID. ON JUNE 30, 1998, THE TOTAL
MARKET VALUE OF THESE INVESTMENTS WAS $819,357 OR 0.67% OF TOTAL NET
ASSETS.
(d) FLOATING OR VARIABLE RATE OBLIGATION MATURING IN MORE THAN ONE YEAR. THE
INTEREST RATE, WHICH IS BASED ON SPECIFIC, OR AN INDEX OF, MARKET INTEREST
RATES, IS SUBJECT TO CHANGE PERIODICALLY AND IS THE EFFECTIVE RATE ON JUNE
30, 1998. THIS INSTRUMENT MAY ALSO HAVE A DEMAND FEATURE WHICH ALLOWS THE
RECOVERY OF PRINCIPAL AT ANY TIME, OR AT SPECIFIED INTERVALS NOT EXCEEDING
ONE YEAR, ON UP TO 30 DAYS' NOTICE. MATURITY DATE SHOWN REPRESENTS FINAL
MATURITY.
(e) PREREFUNDED ISSUES ARE BACKED BY U.S. GOVERNMENT OBLIGATIONS. THESE BONDS
ARE CALLED AND MATURE AT THE CALL DATE INDICATED.
(f) ON JUNE 30, 1998, THE TOTAL COST OF INVESTMENTS PURCHASED ON A WHEN-ISSUED
BASIS WAS $856,052.
(g) AMT - ALTERNATIVE MINIMUM TAX. AS OF JUNE 30, 1998, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX WAS $6,288,722,
WHICH REPRESENTS 5.15% OF NET ASSETS.
(h) ALSO APPROXIMATES COST FOR FEDERAL INCOME TAX PURPOSES. THE AGGREGATE GROSS
UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS IN SECURITIES BASED
ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ..... $ 10,331,637
GROSS UNREALIZED DEPRECIATION ..... (433)
------------
NET UNREALIZED APPRECIATION ..... $ 10,331,204
------------
------------
</TABLE>
- ---------------------------------------------------------------------
1998 Semiannual Report 29 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited)
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST III June 30, 1998
.......................................................................................
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
MUNICIPAL LONG-TERM SECURITIES (97.8%):
ALABAMA (0.6%):
Agricultural and Mechanical University Revenue (MBIA)
(Callable 11/1/02 at 102), 6.45%, 11/1/17 ......... $ 500,000 $ 554,805
------------
CALIFORNIA (1.2%):
State Housing Finance Revenue (FHA), 4.80%,
8/1/03 ............................................ 1,000,000 1,012,560
------------
COLORADO (2.4%):
Health Facilities Authority Revenue, 4.65%,
1/1/03 ............................................ 1,055,000 1,057,975
Snowmass Village Multifamily Housing (FSA) (Callable
12/15/02 at 102), 6.25%, 12/15/16 ................. 1,000,000 1,048,020
------------
2,105,995
------------
DISTRICT OF COLUMBIA (3.5%):
Catholic University of America (Connie Lee) (Callable
10/1/03 at 102), 6.30%, 10/1/13 ................... 1,000,000 1,086,360
General Obligation (MBIA), 4.75%, 6/1/03 ............ 1,960,000 1,995,039
------------
3,081,399
------------
FLORIDA (0.7%):
Broward County School District, Zero-Coupon (MBIA),
6.55%, 2/15/08 .................................... 1,000,000(b) 650,990
------------
HAWAII (1.5%):
State General Obligation (FGIC), 4.80%, 3/1/03 ...... 1,250,000 1,279,300
------------
ILLINOIS (18.3%):
Chicago Wastewater Revenue (FGIC) (Prerefunded to
1/1/03), 6.35%, 1/1/22 ............................ 1,000,000(d) 1,106,140
Health Facility-Alexian Brothers Medical Center
(MBIA) (Callable 1/1/02 at 102), 6.38%, 1/1/15 .... 1,125,000 1,209,634
Health Facility-Elmhurst Memorial Hospital (FGIC)
(Callable 1/1/02 at 102), 6.50%, 1/1/12 ........... 1,190,000 1,282,273
Health Facility-Highland Park Hospital (FGIC), 5.40%,
10/1/03 ........................................... 1,000,000 1,052,600
Health Facility-Lutheran General Systems (FSA)
(escrowed to maturity) (Callable 4/1/03 at 102),
6.13%, 4/1/12 ..................................... 1,000,000 1,106,780
Henry Hospital District (AMBAC) (Callable 12/1/02 at
100), 6.60%, 12/1/17 .............................. 2,000,000 2,204,400
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 30 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
Higher Education Facility-Augustana College (Connie
Lee), 5.00%, 10/1/03 .............................. $ 330,000 $ 340,111
Lake County Housing and Finance Corporation (FHA)
(Callable 11/1/02 at 100), 6.70%, 11/1/14 ......... 2,000,000 2,103,080
Rochelle Water and Sewer Revenue (Callable 5/1/02 at
102), 7.15%, 5/1/14 ............................... 2,000,000 2,195,320
State General Obligation (FSA) (Callable 10/1/02 at
102), 6.25%, 10/1/12 .............................. 3,100,000 3,363,934
------------
15,964,272
------------
INDIANA (16.1%):
Crawfordsville School Building Corporation (Callable
1/1/03 at 102), 6.25%, 7/1/11 ..................... 500,000 539,235
Freemont Middle School Building (AMBAC) (Prerefunded
to 3/15/02), 6.75%, 3/15/13 ....................... 3,000,000(d) 3,298,020
Health Facilities-Community Hospital Project (MBIA)
(Callable 5/1/02 at 102), 6.40%, 5/1/12 ........... 5,000,000 5,390,000
Health Facilities-Greenwood Village South, 5.00%,
5/15/03 ........................................... 600,000 604,350
Health Facilities-Methodist Hospital (AMBAC)
(escrowed to maturity) (Callable 9/1/02 at 102),
5.75%, 9/1/15 ..................................... 1,750,000 1,880,148
Lake County Redevelopment Authority (MBIA) (Callable
2/1/05 at 102), 6.45%, 2/1/11 ..................... 1,600,000 1,781,472
Patoka Lake Regional Water and Sewer District (AMBAC)
(Callable 1/1/04 at 101), 6.45%, 1/1/15 ........... 500,000 557,960
------------
14,051,185
------------
IOWA (1.5%):
Cedar Rapids Hospital Facilities (FGIC) (Callable
8/15/03 at 102), 6.13%, 8/15/13 ................... 1,200,000 1,325,436
------------
KANSAS (1.9%):
Kansas City Utility Systems, Zero-Coupon (AMBAC),
6.39%, 3/1/08 ..................................... 1,060,000(b) 685,428
Kansas City Utility Systems, Zero-Coupon (AMBAC)
(escrowed to maturity), 6.39%, 3/1/08 ............. 1,515,000(b) 972,266
------------
1,657,694
------------
MAINE (2.5%):
Water and Sewer Revenue (Callable 11/1/02 at 102),
6.60%, 11/1/15 .................................... 2,000,000 2,198,280
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 31 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
NEVADA (1.2%):
Clark County School District (FGIC), 5.75%,
6/15/03 ........................................... $ 1,000,000 $ 1,068,710
------------
NEW MEXICO (1.3%):
Las Cruces Health Facility-Evangelical Lutheran
Project (FSA) (Callable 12/1/02 at 102), 6.45%,
12/1/17 ........................................... 1,000,000 1,093,330
------------
NEW YORK (2.1%):
State General Obligation, 5.20%, 8/1/03 ............. 1,735,000 1,799,178
------------
NORTH DAKOTA (3.8%):
Mercer County Pollution Control Revenue (AMBAC),
7.20%, 6/30/13 .................................... 2,700,000 3,324,861
------------
OKLAHOMA (1.0%):
Tulsa County Oklahoma Independent School District No.
5, 4.85%, 7/1/03 .................................. 850,000(e) 876,911
------------
RHODE ISLAND (1.5%):
State Health and Education Building Corporation
(Connie Lee) (Callable 4/1/03 at 102), 6.38%,
4/1/12 ............................................ 1,200,000 1,306,008
------------
SOUTH CAROLINA (1.6%):
Piedmont Municipal Power Agency (MBIA) (Prerefunded
to 1/1/03), 6.30%, 1/1/14 ......................... 1,285,000(d) 1,419,886
------------
SOUTH DAKOTA (3.0%):
State Building Authority (AMBAC) (escrowed to
maturity), 6.63%, 9/1/12 .......................... 2,350,000 2,601,450
------------
TEXAS (20.7%):
Austin Utility System Revenue, Zero-Coupon (MBIA),
6.53%, 11/15/08 ................................... 5,000,000(b) 3,090,900
Houston Water and Sewer Revenue (FSA) (Callable
12/1/02 at 102), 6.38%, 12/1/14 ................... 1,900,000 2,069,746
Montgomery County Hospital District (FSA)
(Prerefunded to 4/1/02), 6.63%, 4/1/17 ............ 3,300,000(d) 3,639,867
Pflugerville Independent School District (Callable
8/15/04 at 100), 5.75%, 8/15/15 ................... 975,000 1,020,435
San Antonio Electric and Gas, Zero-Coupon (FGIC),
6.40%, 2/1/08 ..................................... 4,500,000(b) 2,885,445
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 32 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
San Antonio Water Revenue (MBIA) (Callable 5/15/02 at
102)), 6.50%, 5/15/10 ............................. $ 1,685,000 $ 1,837,543
San Antonio Water Revenue (MBIA) (escrowed to
maturity), 6.50%, 5/15/10 ......................... 440,000 508,640
San Antonio Water Revenue (MBIA) (Prerefunded to
5/15/02), 6.50%, 5/15/10 .......................... 875,000(d) 964,766
State Capital Appreciation, Zero-Coupon (FGIC),
6.43%, 4/1/08 ..................................... 3,100,000(b) 1,972,437
------------
17,989,779
------------
WASHINGTON (7.7%):
Chelan County Public Utilities District (MBIA), AMT,
5.55%, 7/1/03 ..................................... 305,000(f) 321,296
Public Power Supply (Callable 7/1/02 at 102), 6.25%,
7/1/12 ............................................ 770,000 828,512
Public Power Supply (Prerefunded to 7/1/02), 6.25%,
7/1/12 ............................................ 2,600,000(d) 2,842,580
Public Power Supply System (Prerefunded to 7/1/01),
6.50%, 7/1/18 ..................................... 2,515,000(d) 2,730,686
------------
6,723,074
------------
WEST VIRGINIA (3.2%):
Clarksburg Water Revenue (Asset Guaranty) (Callable
9/1/02 at 102), 6.25%, 9/1/14 ..................... 2,620,000 2,819,251
------------
WISCONSIN (0.4%):
Amery Revenue, 4.90%, 6/1/03 ........................ 300,000 300,195
------------
Total Municipal Long-Term Securities
(cost: $77,360,227) ............................ 85,204,549
------------
MUNICIPAL SHORT-TERM SECURITIES (1.7%):
ILLINOIS (0.1%):
Health Facilities Authority, 3.60%, 1/1/16 .......... 100,000(c) 100,000
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- ---------------------------------------------------------------------
1998 Semiannual Report 33 American Municipal Term Trusts
<PAGE>
Investments in Securities (Unaudited) (continued)
- ---------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Description of Security Amount Value (a)
- --------------------------------------------------------- ----------- ------------
<S> <C> <C>
NEW YORK (1.6%):
New York City, Series C, 3.00%, 10/1/23 ............. $ 1,000,000(c) $ 1,000,000
New York City, Subseries A-10, VRDN, 4.10%,
8/15/17 ........................................... 100,000(c)(f) 100,000
New York City, Subseries B-4, VRDN, 3.85%,
8/15/22 ........................................... 310,000(c)(e) 310,000
------------
1,410,000
------------
Total Municipal Short-Term Securities
(cost: $1,510,000) ............................. 1,510,000
------------
Total Investments in Securities
(cost: $78,870,227) (g) ........................ $ 86,714,549
------------
------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(b) FOR ZERO-COUPON INVESTMENTS, THE INTEREST RATE SHOWN IS THE EFFECTIVE YIELD
ON THE DATE OF PURCHASE.
(c) FLOATING OR VARIABLE RATE OBLIGATION MATURING IN MORE THAN ONE YEAR. THE
INTEREST RATE, WHICH IS BASED ON SPECIFIC, OR AN INDEX OF, MARKET INTEREST
RATES, IS SUBJECT TO CHANGE PERIODICALLY AND IS THE EFFECTIVE RATE ON JUNE
30, 1998. THIS INSTRUMENT MAY ALSO HAVE A DEMAND FEATURE WHICH ALLOWS THE
RECOVERY OF PRINCIPAL AT ANY TIME, OR AT SPECIFIED INTERVALS NOT EXCEEDING
ONE YEAR, ON UP TO 30 DAYS' NOTICE. MATURITY DATE SHOWN REPRESENTS FINAL
MATURITY.
(d) PREREFUNDED ISSUES ARE BACKED BY U.S. GOVERNMENT OBLIGATIONS. THESE BONDS
ARE CALLED AND MATURE AT THE CALL DATE INDICATED.
(e) ON JUNE 30, 1998, THE TOTAL COST OF INVESTMENTS PURCHASED ON A WHEN-ISSUED
BASIS WAS $855,551.
(f) PORTFOLIO ABBREVIATIONS AND DEFINITIONS:
AMT - ALTERNATIVE MINIMUM TAX. AS OF JUNE 30, 1998, THE AGGREGATE
MARKET VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX WAS
$321,296, WHICH REPRESENTS 0.37% OF NET ASSETS.
VRDN - VARIABLE RATE DEMAND NOTE
(g) ALSO APPROXIMATES COST FOR FEDERAL INCOME TAX PURPOSES. THE AGGREGATE GROSS
UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS IN SECURITIES BASED
ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ..... $ 7,844,322
GROSS UNREALIZED DEPRECIATION ..... --
------------
NET UNREALIZED APPRECIATION ..... $ 7,844,322
------------
------------
</TABLE>
- ---------------------------------------------------------------------
1998 Semiannual Report 34 American Municipal Term Trusts
<PAGE>
GLOSSARY OF TERMS***
- --------------------------------------------------------------------------------
ADVANCE REFUNDING
The sale of new bonds (a refunding issue) in advance, usually by some years, of
the first call date of the old bonds (issue to be refunded). The refunding issue
would normally have a lower rate than the issue to be refunded and the proceeds
from the sale of the refunding issue would be invested, usually in government
securities, until the higher-rate bonds become callable.
COUPON
The interest rate on a bond that the issuer promises to pay to the holder until
the bond matures or resets its rate. It is expressed as an annual percentage of
face value.
CREDIT RISK
The risk that a bond issuer will not make timely principal and interest payments
and a loss to the investor will result.
DISCOUNT
Closed-end fund shares may trade in the market at prices that are equal to,
above or below their net asset value (NAV). When investors purchase or sell
shares at a price that is below current NAV, the shares are said to be trading
at a discount.
INTEREST RATE RISK
The risk that after an investor purchases a bond, interest rates will rise and
the price of the bond will go down.
NET ASSET VALUE
Net asset value (or NAV) is the value of the fund's assets less its liabilities
and preferred stock divided by the number of common shares outstanding.
1998 Semiannual Report 35 American Municipal Term Trusts
<PAGE>
GLOSSARY OF TERMS (CONTINUED)
- --------------------------------------------------------------------------------
PREFERRED STOCK
The preferred stock issued by AXT, BXT and CXT pays dividends at a specified
rate and has preference over common stock in the payments of dividends and the
liquidation of assets. Rates paid on preferred stock are reset every seven days
and are based on short-term, tax-exempt interest rates. Preferred shareholders
accept these short-term rates in exchange for low credit risk (shares of
preferred stock are rated AAA by Moody's and S&P) and high liquidity (shares of
preferred stock trade at par and are remarketed every seven days). The proceeds
from the sale of preferred stock are invested at intermediate- and long-term
tax-exempt rates. Because these intermediate- and long-term rates are normally
higher than the short-term rates paid on preferred stock, common shareholders
benefit by receiving higher dividends and/or an increase to the dividend
reserve. However, the risk of having preferred stock is that if short-term rates
rise higher than intermediate- and long-term rates, creating an inverted yield
curve, common shareholders may receive a lower rate of return than if their fund
did not have any preferred stock outstanding. This type of economic environment
is unusual and historically has been short term in nature. Investors should also
be aware that the issuance of preferred stock results in the leveraging of
common stock, which increases the volatility of both the net asset value of the
fund and the market value of shares of common stock.
REFUNDED DATE
The specific date when a bond is redeemed before maturity.
REALIZED GAINS
Profits earned by a fund from the sale of a security at a market price that is
higher than its cost basis.
UNREALIZED APPRECIATION
A bond is said to be trading at unrealized gains when its current market price
is higher than its cost basis.
1998 Semiannual Report 36 American Municipal Term Trusts
<PAGE>
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<PAGE>
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#21200 8/1998 187-98
