<PAGE>
---------------------------
1999
SEMIANNUAL REPORT
---------------------------
[GRAPHIC]
AMERICAN MUNICIPAL
TERM TRUSTS
AXT
[GRAPHIC] BXT
CXT
[LOGO] FIRST AMERICAN
ASSET MANAGEMENT
<PAGE>
[LOGO] FIRST AMERICAN
Asset Management
CONTENTS
2 Fund Overview
7 Financial Statements
and Notes
Investments in Securities
20 AXT
26 BXT
31 CXT
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.
Each fund's 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 any fund will achieve
its objective.
-----------------------------------------------------------------
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
-----------------------------------------------------------------
<PAGE>
AVERAGE ANNUALIZED TOTAL RETURNS
Based on net asset value for the periods ended June 30, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPH]
<TABLE>
<CAPTION>
One Year Five Year Since Inception
<S> <C> <C> <C>
AMERICAN MUNICIPAL TERM TRUST 3.17% 6.39% 8.27%
"(AXT, inception 3/27/1991)"
AMERICAN MUNICIPAL TERM TRUST II 2.70% 6.81% 8.21%
"(BXT, inception 9/26/1991)"
AMERICAN MUNICIPAL TERM TRUST III 2.50% 8.08% 8.13%
"(CXT, inception 11/27/1992)"
</TABLE>
All net asset value total returns are through June 30, 1999, 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, 1999, were 1.28%,
7.11% and 7.19% for AXT; 1.93%, 7.64% and 7.01% for BXT; and 3.33%, 7.66% and
6.69% 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.
1 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FUND OVERVIEW
FUND MANAGEMENT
DOUG WHITE, CFA,
is responsible for the management of the American Municipal Term Trusts. He has
16 years of financial experience.
AUGUST 15, 1999
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 months ended June 30, 1999, 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. The net asset values for AXT, BXT and CXT as of June
30, 1999 were $11.04, $11.15 and $11.07, respectively.
IN THE FIRST HALF OF THIS YEAR, AXT AND BXT'S DIVIDEND RESERVES REACHED A LEVEL
WHERE THE FUNDS COULD NOT CONTINUE TO ACCUMULATE ADDITIONAL AMOUNTS. As a
result, AXT and BXT paid out an additional dividend of tax-exempt income in May.
In the future, if the funds earn more than their monthly common and preferred
stock dividend, it may again become necessary to pay the excess out as
additional dividends rather than adding to the dividend reserve.
INTEREST RATES HAVE RISEN THROUGHOUT MOST OF 1999. The yield on a 10-year U.S.
Treasury note rose from 4.65% on December 31, 1998, to 5.78% on June 30, 1999,
and the 10-year AAA municipal yield rose from 4.1% to 4.8%. This rise in rates
was largely the result of increased inflationary concerns during the eighth year
of what is
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
BONDS MATURING LESS THAN A YEAR BEYOND THE FUNDS' TERMINATION DATES
- -------------------------------------------------------------------------------
AXT BXT CXT
Inception Inception Inception
3/27/1991 9/26/1991 11/27/1992
<S> <C> <C> <C>
At the Fund's Inception 0% 0% 0%
- -------------------------------------------------------------------------------
As of June 30, 1999 77% 77% 43%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
2 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FUND OVERVIEW CONTINUED
becoming the longest post-war economic expansion. As a result of this rise in
rates, refundings are down by nearly 50% compared to 1998 levels and total new
issuance is down almost 25%. As a result of continued strength in the economy,
credit quality in the municipals market remains strong, with upgrades outpacing
downgrades in the first half of 1999 by a ratio of more than four to one.
THE DECREASED SUPPLY OF MUNICIPALS SLOWED OUR STRATEGY OF SELLING LONGER
MATURITY BONDS IN FAVOR OF THOSE CLOSER TO THE FUNDS' TERMINATION DATES. As
shown in the table on page 2, the percentage of bonds with maturity or refund
dates less than a year beyond the funds' termination dates continues to
increase, although at a slower pace. Please remember that restructuring may
generate capital gains, which are then distributed to shareholders annually.
Restructuring proceeds will also typically be 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. Several events could cause this to occur. A number of bonds
currently have market values in excess of their maturity or refunding prices. As
the maturity and/or refunding dates of these bonds approach, their market prices
will converge toward prices that are at or near their maturity or refunding
prices.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
DISTRIBUTION HISTROY SINCE INCEPTION
- --------------------------------------------------------------------------------------------
AXT BXT CXT
Inception Inception Inception
3/27/1991 9/26/1991 11/27/1992
<S> <C> <C> <C>
Total Monthly Income Distributions Through 6/30/1999
- --------------------------------------------------------------------------------------------
Common Shareholders $5.38 $4.84 $3.71
- --------------------------------------------------------------------------------------------
Preferred Shareholders (On a Common Share Basis) $1.34 $1.25 $1.04
- --------------------------------------------------------------------------------------------
Total Capital Gains Distributions to Common
Shareholders Through 6/30/1999 $0.19 $0.13 $0.13
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
</TABLE>
3 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FUND OVERVIEW CONTINUED
IN ADDITION, AS THE FUNDS APPROACH TERMINATION, AND AS OPPORTUNITIES ARISE, WE
MAY 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 supplement common and/or preferred stock dividends. See
the net asset value summary chart for each fund's current accumulated 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 CAN HAVE AN IMPACT ON NET ASSET VALUE. However,
we are optimistic about achieving the funds' objectives and do not anticipate
events that would cause us to change the funds' investment strategy as they move
toward termination.
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.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE SUMMARY OF COMMON SHARES
- -----------------------------------------------------------------------------------------------
AXT BXT CXT
Inception Inception Inception
3/27/1991 9/26/1991 11/27/1992
<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 6/30/1999 $0.0037 $0.0013 $0.0038
- -----------------------------------------------------------------------------------------------
SUBTOTAL $9.34 $9.35 $9.34
- -----------------------------------------------------------------------------------------------
Dividend Reserve
(Undistributed Net Investment Income) at 6/30/1999 +$0.82 +$0.80 +$0.63
- -----------------------------------------------------------------------------------------------
Unrealized Appreciation on Investments at 6/30/1999 +$0.88 +$1.00 +$1.10
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ON 6/30/1999 $11.04 $11.15 $11.07
- -----------------------------------------------------------------------------------------------
</TABLE>
4 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FUND OVERVIEW CONTINUED
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPH]
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- -------------------------------------------------------------------------------
As a percentage of total assets on June 30, 1999
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST
<S> <C>
Utility Revenue 31%
Health Care Revenue 20%
General Obligations 15%
Education Revenue 9%
Tax Revenue 8%
Electric Revenue 5%
Short-Term Securities 4%
Improvement Revenue 2%
Municipal Bond Bank 2%
Other Assets 2%
IDR Pollution Control Revenue 1%
Transportation Revenue 1%
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST II
<S> <C>
Utility Revenue 27%
Health Care Revenue 23%
General Obligations 17%
Education Revenue 14%
Tax Revenue 6%
Miscellaneous Revenue 4%
Electric Revenue 3%
Housing Revenue 2%
Industrial Development Revenue 2%
Other Assets 2%
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST III
<S> <C>
Utility Revenue 32%
Health Care Revenue 23%
General Obligations 19%
Education Revenue 8%
Housing Revenue 5%
IDR Pollution Control 4%
Building Revenue 3%
Economic Development Revenue 2%
Municipal Bond Bank 2%
Other Assets 2%
</TABLE>
- -------------------------------------------------------------------------------
5 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FUND OVERVIEW 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.
- -------------------------------------------------------------------------------
6 1999 SEMIANNUAL REPORT AMERICAN MUNICIPAL TERM TRUSTS
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1999
................................................................................
<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) ....... $133,309,535 $ 116,962,311 $ 83,950,423
Cash in bank on demand deposit ............................ 94,145 99,607 159,170
Accrued interest receivable ............................... 2,501,985 2,020,311 1,167,966
Other Assets .............................................. 20,401 17,437 23,117
------------- -------------- --------------
Total assets ............................................ 135,926,066 119,099,666 85,300,676
------------- -------------- --------------
LIABILITIES:
Preferred stock dividends payable (note 3) ................ 29,750 8,312 6,450
Accrued investment management fee ......................... 27,959 24,520 17,594
Accrued remarketing agent fee ............................. 25,490 8,864 7,068
Accrued administrative fee ................................ 16,775 14,713 10,556
------------- -------------- --------------
Total liabilities ....................................... 99,974 56,409 41,668
------------- -------------- --------------
Net assets applicable to outstanding capital stock ...... $135,826,092 $ 119,043,257 $ 85,259,008
------------- -------------- --------------
------------- -------------- --------------
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital (common and
preferred stock) ........................................ $121,429,920 $ 105,774,191 $ 76,084,420
Undistributed net investment income ....................... 6,923,095 5,895,595 3,348,013
Accumulated net realized gain on investments .............. 31,430 9,305 20,400
Unrealized appreciation of investments .................... 7,441,647 7,364,166 5,806,175
------------- -------------- --------------
Total - representing net assets applicable to outstanding
capital stock ......................................... $135,826,092 $ 119,043,257 $ 85,259,008
------------- -------------- --------------
------------- -------------- --------------
* Investments in securities at identified cost ............ $125,867,888 $ 109,598,145 $ 78,144,248
------------- -------------- --------------
------------- -------------- --------------
NET ASSET VALUE AND MARKET PRICE OF COMMON STOCK:
Net assets applicable to common stock ..................... $ 93,326,092 $ 82,043,257 $ 58,659,008
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 ........................................... $ 11.04 $ 11.15 $ 11.07
Market price .............................................. $ 10.63 $ 10.63 $ 10.56
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.
- --------------------------------------------------------------------------------
7 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 1999
................................................................................
<TABLE>
<CAPTION>
AMERICAN
AMERICAN AMERICAN MUNICIPAL
MUNICIPAL MUNICIPAL TERM TRUST
TERM TRUST TERM TRUST II III
------------ ------------- ------------
<S> <C> <C> <C>
INCOME:
Interest .................................................. $ 4,152,950 $ 3,627,729 $ 2,436,400
------------ ------------- ------------
EXPENSES (NOTE 5):
Investment management fee ................................. 171,096 150,398 107,877
Administrative fee ........................................ 102,657 90,239 64,726
Remarketing agent fee ..................................... 52,689 45,869 32,976
Custodian and accounting fees ............................. 43,896 37,759 29,956
Transfer agent fees ....................................... 1,884 1,587 1,191
Reports to shareholders ................................... 15,821 15,821 15,821
Directors' fees ........................................... 1,488 1,488 1,488
Audit and legal fees ...................................... 20,730 20,730 20,730
Other expenses ............................................ 20,871 20,323 14,430
------------ ------------- ------------
Total expenses .......................................... 431,132 384,214 289,195
Less expenses paid indirectly ......................... (4,225) (4,725) (3,904)
------------ ------------- ------------
Total net expenses ...................................... 426,907 379,489 285,291
------------ ------------- ------------
Net investment income ................................... 3,726,043 3,248,240 2,151,109
------------ ------------- ------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gain on investments (note 4) ................. 31,430 9,305 21,203
Net change in unrealized appreciation or depreciation of
investments ............................................. (3,068,751) (3,068,744) (2,587,783)
------------ ------------- ------------
Net loss on investments ................................. (3,037,321) (3,059,439) (2,566,580)
------------ ------------- ------------
Net increase (decrease) in net assets resulting from
operations .......................................... $ 688,722 $ 188,801 $ (415,471)
------------ ------------- ------------
------------ ------------- ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST
-----------------------------
Six Months
Ended 6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 3,726,043 $ 7,588,515
Net realized gain on investments .......................... 31,430 889,510
Net change in unrealized appreciation or depreciation of
investments ............................................. (3,068,751) (1,829,143)
------------- -------------
Net increase in net assets resulting from operations .... 688,722 6,648,882
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (2,883,155) (5,499,132)
Preferred stock dividends ............................... (651,216) (1,385,872)
From net realized gains:
Common stock dividends .................................. -- (697,538)
Preferred stock dividends ............................... -- (195,761)
------------- -------------
Total distributions ..................................... (3,534,371) (7,778,303)
------------- -------------
Total decrease in net assets ............................ (2,845,649) (1,129,421)
Net assets at beginning of period ......................... 138,671,741 139,801,162
------------- -------------
Net assets at end of period ............................... $135,826,092 $ 138,671,741
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 6,923,095 $ 6,731,423
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
9 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST
II
-----------------------------
Six Months
Ended 6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 3,248,240 $ 6,513,399
Net realized gain on investments .......................... 9,305 353,801
Net change in unrealized appreciation or depreciation of
investments ............................................. (3,068,744) (1,013,370)
------------- -------------
Net increase in net assets resulting from operations .... 188,801 5,853,830
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (2,541,436) (4,563,551)
Preferred stock dividends ............................... (595,953) (1,291,977)
From net realized gains:
Common stock dividends .................................. -- (279,521)
Preferred stock dividends ............................... -- (82,152)
------------- -------------
Total distributions ..................................... (3,137,389) (6,217,201)
------------- -------------
Total decrease in net assets ............................ (2,948,588) (363,371)
Net assets at beginning of period ......................... 121,991,845 122,355,216
------------- -------------
Net assets at end of period ............................... $119,043,257 $ 121,991,845
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 5,895,595 $ 5,784,744
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
10 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST
III
-----------------------------
Six Months
Ended 6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 2,151,109 $ 4,317,377
Net realized gain on investments .......................... 21,203 414,745
Net change in unrealized appreciation or depreciation of
investments ............................................. (2,587,783) (42,338)
------------- -------------
Net increase (decrease) in net assets resulting from
operations ............................................ (415,471) 4,689,784
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (1,258,750) (3,021,000)
Preferred stock dividends ............................... (399,691) (875,748)
From net realized gains:
Common stock dividends .................................. -- (323,300)
Preferred stock dividends ............................... (803) (102,809)
------------- -------------
Total distributions ..................................... (1,659,244) (4,322,857)
------------- -------------
Total increase (decrease) in net assets ................. (2,074,715) 366,927
Net assets at beginning of period ......................... 87,333,723 86,966,796
------------- -------------
Net assets at end of period ............................... $85,259,008 $ 87,333,723
------------- -------------
------------- -------------
Undistributed net investment income ....................... $ 3,348,013 $ 2,855,345
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
11 1999 Semiannual Report 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 investment grade 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 fund 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.
- --------------------------------------------------------------------------------
12 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
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.
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 values if the funds make such purchases while remaining
substantially fully invested. As of June 30, 1999, American
Municipal Term Trust Inc., American Municipal Term Trust Inc.
II, and American Municipal Term Trust Inc. III had no
outstanding when-issued or forward commitments.
FEDERAL TAXES
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 typically required. The funds also
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
- --------------------------------------------------------------------------------
13 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
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
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, 1999, 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, 1999, the dividend rates were 3.65%, 4.10% and 2.95% for
American Municipal Term Trust Inc., American Municipal Term
Trust Inc. II, and American Municipal Term Trust Inc. III,
respectively.
- --------------------------------------------------------------------------------
14 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
RP is a registered trademark of Merrill Lynch & Company (Merrill
Lynch).
(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, 1999, were as follows:
<TABLE>
<CAPTION>
AMERICAN AMERICAN AMERICAN
MUNICIPAL MUNICIPAL MUNICIPAL
TERM TRUST TERM TRUST II TERM TRUST III
---------- -------------- ---------------
<S> <C> <C> <C>
Purchases .............................. $ 522,071 $1,486,080 $670,604
Proceeds from sales .................... $8,643,070 $1,202,800 $676,055
</TABLE>
(5) EXPENSES
............................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
On August 10, 1998, the funds entered into an investment
advisory agreement with U.S. Bank National Association (U.S.
Bank), acting through its division, First American Asset
Management. Prior thereto, Piper Capital Management Incorporated
(Piper Capital), which was aquired by U.S. Bancorp on May 1,
1998, had served as the fund's advisor. U.S. Bank also serves as
the funds' administrator under an administration agreement
effective May 1, 1998. Prior thereto, Piper Capital provided
services under an administration agreement through April 30,
1998.
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
- --------------------------------------------------------------------------------
15 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
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 agreement with Merrill
Lynch (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.
Expenses paid indirectly represent a reduction of custodian fees
for earnings on miscellaneous cash balances maintained by the
funds.
- --------------------------------------------------------------------------------
16 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
(6) 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,
6/30/99 ------------------------------------------------
(Unaudited) 1998(g) 1997 1996 1995 1994
----------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period . $11.37 $11.51 $ 11.52 $ 11.83 $ 10.52 $ 11.89
----------- -------- ------- ------- ------- -------
Operations:
Net investment income ................ 0.44 0.90 0.91 0.93 0.94 0.93
Net realized and unrealized gains
(losses) on investments ............ (0.36) (0.12) (0.02) (0.35) 1.22 (1.50)
----------- -------- ------- ------- ------- -------
Total from operations .............. 0.08 0.78 0.89 0.58 2.16 (0.57)
----------- -------- ------- ------- ------- -------
Distributions to shareholders:
Paid to common shareholders .......... (0.34) (0.65) (0.65) (0.65) (0.65) (0.65)
Paid to preferred shareholders ....... (0.07) (0.16) (0.17) (0.17) (0.20) (0.15)
From net realized gains
Paid to common shareholders .......... -- (0.08) (0.06) (0.05) -- --
Paid to preferred shareholders ....... -- (0.03) (0.02) (0.02) -- --
----------- -------- ------- ------- ------- -------
Total distributions to
shareholders ..................... (0.41) (0.92) (0.90) (0.89) (0.85) (0.80)
----------- -------- ------- ------- ------- -------
Net asset value, common stock, end of
period ............................... $11.04 $11.37 $ 11.51 $ 11.52 $ 11.83 $ 10.52
----------- -------- ------- ------- ------- -------
----------- -------- ------- ------- ------- -------
Market value, common stock, end of
period ............................... $10.63 $11.56 $ 11.50 $ 11.25 $ 11.00 $ 10.00
----------- -------- ------- ------- ------- -------
----------- -------- ------- ------- ------- -------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 0.07% 5.37% 6.22% 3.47% 18.93% (6.34)%
Total return, common stock, market value
(b) .................................. (4.82)% 7.11% 8.89% 9.06% 16.91% (2.11)%
Net assets at end of period (in
millions) ............................ $ 136 $ 139 $ 140 $ 140 $ 143 $ 131
Ratio of expenses to average weekly net
assets applicable to common stock
(c) .................................. 0.91%(h) 0.90% 0.90% 0.91% 0.88% 0.84%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 6.49%(h) 6.40% 6.39% 6.57% 6.53% 7.04%
Portfolio turnover rate (excluding
short-term securities) ............... 6% 8% 4% 9% 1% 1%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 43 $ 43 $ 43 $ 43 $ 43 $ 43
Asset coverage ratio (f) ............... 320% 326% 329% 329% 335% 309%
</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 0.63% (ANNUALIZED),
0.63%, 0.63%, 0.64%, 0.61% AND 0.58% FOR THE SIX MONTHS ENDED JUNE 30,
1999, FISCAL YEARS 1998, 1997, 1996, 1995 AND 1994, 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 5.44%
(ANNUALIZED), 5.43%, 5.49%, 5.59%, 5.72% AND 5.80% FOR THE SIX MONTHS ENDED
JUNE 30, 1999, FISCAL YEARS 1998, 1997, 1996, 1995 AND 1994, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL TO
U.S. BANK.
(h) ANNUALIZED
- --------------------------------------------------------------------------------
17 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
(6) 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,
6/30/99 ---------------------------------------------------
(Unaudited) 1998(g) 1997 1996 1995 1994
----------- ----------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period . $11.55 $11.60 $ 11.43 $ 11.71 $ 10.27 $ 11.66
----------- ----------- ------- ------- ------- -------
Operations:
Net investment income ................ 0.44 0.89 0.89 0.90 0.90 0.90
Net realized and unrealized gains
(losses) on investments ............ (0.42) (0.09) 0.14 (0.35) 1.37 (1.52)
----------- ----------- ------- ------- ------- -------
Total from operations .............. 0.02 0.80 1.03 0.55 2.27 (0.62)
----------- ----------- ------- ------- ------- -------
Distributions to shareholders:
Paid to common shareholders .......... (0.34) (0.62) (0.62) (0.62) (0.62) (0.62)
Paid to preferred shareholders ....... (0.08) (0.18) (0.17) (0.17) (0.20) (0.15)
From net realized gains
Paid to common shareholders .......... -- (0.04) (0.05) (0.03) (0.01) --
Paid to preferred shareholders ....... -- (0.01) (0.02) (0.01) -- --
----------- ----------- ------- ------- ------- -------
Total distributions to
shareholders ..................... (0.42) (0.85) (0.86) (0.83) (0.83) (0.77)
----------- ----------- ------- ------- ------- -------
Net asset value, common stock, end of
period ............................... $11.15 $11.55 $ 11.60 $ 11.43 $ 11.71 $ 10.27
----------- ----------- ------- ------- ------- -------
----------- ----------- ------- ------- ------- -------
Market value, common stock, end of
period ............................... $10.63 $11.56 $ 11.38 $ 10.75 $ 10.63 $ 9.63
----------- ----------- ------- ------- ------- -------
----------- ----------- ------- ------- ------- -------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ (0.51)% 5.36% 7.57% 3.33% 20.48% (6.80)%
Total return, common stock, market value
(b) .................................. (4.84)% 7.65% 12.46% 7.66% 17.28% (4.83)%
Net assets at end of period (in
millions) ............................ $ 119 $ 122 $ 122 $ 121 $ 123 $ 113
Ratio of expenses to average weekly net
assets applicable to common stock
(c) .................................. 0.92%(h) 0.89% 0.91% 0.92% 0.90% 0.88%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 6.34%(h) 6.12% 6.21% 6.41% 6.35% 7.01%
Portfolio turnover rate (excluding
short-term securities and dollar roll
transactions) ........................ 1% 2% 6% 6% 3% --
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 37 $ 37 $ 37 $ 37 $ 37 $ 37
Asset coverage ratio (f) ............... 322% 330% 331% 327% 333% 304%
</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 0.64% (ANNUALIZED),
0.62%, 0.64%, 0.64%, 0.62%, AND 0.60% FOR THE SIX MONTHS ENDED JUNE 30,
1999, FISCAL YEARS 1998, 1997, 1996, 1995, AND 1994, 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 5.40%
(ANNUALIZED), 5.32%, 5.36%, 5.48%, 5.58% AND 5.72% FOR THE SIX MONTHS ENDED
JUNE 30, 1999, FISCAL YEARS 1998, 1997, 1996, 1995, AND 1994, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL TO
U.S. BANK.
(h) ANNUALIZED
- --------------------------------------------------------------------------------
18 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
(6) 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,
6/30/99 ---------------------------------------------------
(Unaudited) 1998(g) 1997 1996 1995 1994
----------- ----------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period $11.46 $11.39 $ 10.92 $ 11.11 $ 9.31 $ 10.95
----------- ----------- ------- ------- ------- -------
Operations:
Net investment income ................ 0.41 0.81 0.82 0.83 0.83 0.83
Net realized and unrealized gains
(losses) on investments ............ (0.48) 0.08 0.47 (0.27) 1.73 (1.75)
----------- ----------- ------- ------- ------- -------
Total from operations .............. (0.07) 0.89 1.29 0.56 2.56 (0.92)
----------- ----------- ------- ------- ------- -------
Distributions to shareholders:
Paid to common shareholders .......... (0.24) (0.57) (0.57) (0.57) (0.57) (0.57)
Paid to preferred shareholders ....... (0.08) (0.17) (0.16) (0.18) (0.19) (0.15)
From net realized gains
Paid to common shareholders .......... -- (0.06) (0.07) -- -- --
Paid to preferred shareholders ....... -- (0.02) (0.02) -- -- --
----------- ----------- ------- ------- ------- -------
Total distributions to
shareholders ..................... (0.32) (0.82) (0.82) (0.75) (0.76) (0.72)
----------- ----------- ------- ------- ------- -------
Net asset value, common stock, end of
period ............................... $11.07 $11.46 $ 11.39 $ 10.92 $ 11.11 $ 9.31
----------- ----------- ------- ------- ------- -------
----------- ----------- ------- ------- ------- -------
Market value, common stock, end of
period ............................... $10.56 $11.25 $ 10.94 $ 10.38 $ 10.13 $ 8.50
----------- ----------- ------- ------- ------- -------
----------- ----------- ------- ------- ------- -------
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ (1.37)% 6.28% 10.42% 3.65% 25.93% (10.04)%
Total return, common stock, market value
(b) .................................. (3.69)% 8.86% 11.93% 8.38% 26.32% (10.93)%
Net assets at end of period (in
millions) ............................ $ 85 $ 87 $ 87 $ 84 $ 85 $ 76
Ratio of expenses to average weekly net
assets applicable to common stock
(c) .................................. 0.97%(h) 0.95% 0.99% 1.01% 0.98% 0.96%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 5.85%(h) 5.67% 5.91% 6.08% 6.05% 6.88%
Portfolio turnover rate (excluding
short-term securities and dollar roll
transactions) ........................ 1% 5% 7% 3% 5% 3%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 27 $ 27 $ 27 $ 27 $ 27 $ 27
Asset coverage ratio (f) ............... 321% 328% 327% 318% 321% 285%
</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),
0.66%, 0.68%, 0.69%, 0.66% AND 0.64% FOR THE SIX MONTHS ENDED JUNE 30,
1999, FISCAL YEARS 1998, 1997, 1996, 1995 AND 1994, 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 4.99%
(ANNUALIZED), 4.94%, 5.09%, 5.26%, 5.38% AND 5.53% FOR THE SIX MONTHS ENDED
JUNE 30, 1999, FISCAL YEARS 1998, 1997, 1996, 1995 AND 1994, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY REMARKETED PREFERRED STOCK.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL TO
U.S. BANK.
(h) ANNUALIZED
- --------------------------------------------------------------------------------
19 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST June 30, 1999
.......................................................................................
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 (94.2%):
CALIFORNIA (2.3%):
Southern California Public Power Authority Power
Project Revenue, 5.00%, 7/1/01 .................... $ 3,000,000 $ 3,064,140
------------
COLORADO (1.9%):
Health Care Facility (FSA) (Prerefunded to 2/15/01),
7.25%, 2/15/16 . 1,925,000(d) 2,056,400
Health Facilities Authority Revenue, 4.45%,
1/1/01 ............................................ 540,000 541,004
------------
2,597,404
------------
DISTRICT OF COLUMBIA (3.4%):
General Obligation (MBIA) (Callable 6/1/00 at 102),
6.75%, 6/1/08 ..................................... 40,000 41,830
General Obligation (MBIA) (Prerefunded to 6/1/00),
6.75%, 6/1/08 ..................................... 4,360,000(d) 4,572,768
------------
4,614,598
------------
FLORIDA (2.3%):
Jacksonville Electric Authority (Prerefunded to
10/1/00), 7.00%, 10/1/12 .......................... 3,000,000(d) 3,166,800
------------
GEORGIA (2.2%):
Municipal Electric Authority (MBIA) (Prerefunded to
1/1/01), 7.00%, 1/1/16 ............................ 2,840,000(d) 3,016,591
------------
HAWAII (0.5%):
State Department Budget and Finance, 4.45%,
7/1/01 ............................................ 720,000 717,286
------------
ILLINOIS (5.8%):
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to
1/1/01), 7.10%, 1/1/11 ............................ 1,525,000(d) 1,621,609
Health Facility-Evangelical Hospital (FSA) (Callable
1/1/01 at 102), 7.13%, 1/1/21 ..................... 2,500,000 2,657,300
Higher Education Facility-Augustana College (Connie
Lee), 4.80%, 10/1/01 .............................. 500,000 505,605
State Dedicated Tax-Civic Center (Prerefunded to
12/15/00), 7.00%, 12/15/13 ........................ 555,000(d) 590,925
State Sales Tax Revenue (Prerefunded to 6/15/01),
6.90%, 6/15/12-6/15/13 ............................ 2,300,000(d) 2,465,692
------------
7,841,131
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
20 1999 Semiannual Report 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>
INDIANA (4.9%):
Hamilton S.E. School Building Corporation (AMBAC)
(Callable 1/1/01 at 102), 7.00%, 7/1/08 ........... $ 3,445,000 $ 3,646,705
Indiana Bond Bank, 5.00%, 2/1/01 .................... 650,000 656,454
Marion County Convention Center (AMBAC) (Callable
6/1/01 at 102), 7.00%, 6/1/10 ..................... 345,000 367,998
Marion County Convention Center (AMBAC) (Prerefunded
to 6/1/01), 7.00%, 6/1/10 ......................... 870,000(d) 933,058
St. Joseph County Hospital Authority (Prerefunded to
8/15/01), (MBIA) (Callable 8/15/01 at 102), 7.00%,
8/15/11 ........................................... 1,000,000 1,076,730
------------
6,680,945
------------
IOWA (0.9%):
Dubuque Hospital Revenue (Callable 1/1/02 at 102),
6.88%, 1/1/12 . 1,000,000 1,055,220
Keokuk Hospital Facility Revenue, 4.40%-4.60%,
12/1/00-12/1/01 ................................... 240,000 239,219
------------
1,294,439
------------
MAINE (2.4%):
Municipal Bond Bank (Prerefunded to 11/1/01), 7.20%,
11/1/13 ........................................... 3,000,000(d) 3,260,490
------------
MINNESOTA (0.9%):
East Grand Forks Industrial Development Revenue
(Callable 4/1/01 at 102), 8.00%, 4/1/11 ........... 1,000,000 1,064,750
Moorhead Gross Revenue, 4.75%, 12/1/00 .............. 115,000 115,898
------------
1,180,648
------------
NEBRASKA (0.8%):
Hospital Lease Investment Financing (MBIA)
(Prerefunded to 3/1/01), 7.00%, 3/1/06 ............ 1,000,000(d) 1,066,680
------------
NEVADA (6.4%):
Clark County School District (MBIA) (Prerefunded to
6/1/01), 7.00%, 6/1/09 ............................ 3,000,000(d) 3,190,830
University of Nevada Revenue (AMBAC) (Prerefunded to
7/1/00), 7.13%, 7/1/16 ............................ 2,720,000(d) 2,869,709
Washoe County Limited Tax General Obligation,
Zero-Coupon (MBIA), 7.12%, 7/1/06 ................. 3,725,000(b) 2,652,200
------------
8,712,739
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
21 1999 Semiannual Report 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>
NEW YORK (3.0%):
New York City General Obligation, 5.00%, 8/1/01 ..... $ 4,000,000 $ 4,062,320
------------
OHIO (0.7%):
Franklin County Health Care Facility Revenue,
4.30%-4.50%, 8/15/99-8/15/01 ...................... 890,000 888,771
------------
OKLAHOMA (1.3%):
Tulsa County Independent School District No. 5,
6.00%, 7/1/00-7/1/01 .............................. 1,670,000 1,717,240
------------
PENNSYLVANIA (3.1%):
Higher Education-Duquesne University (MBIA)
(Prerefunded to 4/1/01), 7.00%, 4/1/10 ............ 1,000,000 1,049,870
Sayre Healthcare Facility (AMBAC) (Callable 3/1/01 at
102), 7.00%, 3/1/11 ............................... 3,000,000 3,175,410
------------
4,225,280
------------
SOUTH DAKOTA (3.6%):
Health and Education Facility Revenue (Callable
5/1/01 at 102), 7.00%, 11/1/07 .................... 2,500,000 2,659,875
Rapid City Area School District (MBIA) (Prerefunded
to 1/1/02), 7.20%, 1/1/11 ......................... 1,770,000(d) 1,895,086
Sioux Falls Health Facilities Revenue (AMBAC)
(Callable 12/01/99 at 100), 4.45%, 6/1/01 ......... 370,000 370,178
------------
4,925,139
------------
TENNESSEE (1.5%):
Bristol Health and Education Facility (FGIC)
(Prerefunded to 3/1/01), 7.00%, 9/1/11 ............ 1,000,000(d) 1,065,670
Housing Development Authority (FSA) (Callable 7/1/00
at 103), 7.60%, 7/1/16 ............................ 5,000 5,204
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/01 .................................... 1,000,000(e) 1,016,040
------------
2,086,914
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
22 1999 Semiannual Report 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>
TEXAS (18.9%):
Abliene Health Care Facility Development,
4.50%-4.70%, 11/15/00-11/15/01 .................... $ 1,065,000 $ 1,055,132
Austin Utility System Revenue (BIG) (Prerefunded to
5/15/01), 8.00%, 11/15/16 ......................... 500,000(d) 535,235
Corpus Christi Utility System Revenue (FGIC)
(Callable 7/15/00 at 102), 7.00%, 7/15/10 ......... 1,500,000 1,576,290
Harris County Health Facilities (FSA) (Prerefunded to
10/1/01), 6.85%, 10/1/06 .......................... 2,000,000 2,154,440
Houston Hotel Occupancy (FGIC) (Prerefunded to
7/1/01), 7.00%, 7/1/15 ............................ 4,800,000(d) 5,071,680
Houston Independent School District, Zero-Coupon
(AMBAC), 7.14%, 8/15/06 ........................... 4,285,000(b) 3,032,880
Lower Colorado River Authority (AMBAC) (Callable
1/1/01 at 102), 7.00%, 1/1/11 ..................... 115,000 121,561
Lower Colorado River Authority (AMBAC) (Prerefunded
to 1/1/01), 7.00%, 1/1/11 ......................... 885,000(d) 939,897
Lower Colorado River Authority, Zero-Coupon (AMBAC),
7.17%, 1/1/06 ..................................... 765,000(b) 558,052
Municipal Power Agency, Zero-Coupon (AMBAC), 7.11%,
9/1/06 ............................................ 3,000,000(b) 2,118,780
San Antonio Electric and Gas, Zero-Coupon (FGIC),
7.11%, 2/1/06 ..................................... 3,000,000(b) 2,188,020
Trinity River Authority (AMBAC) (Prerefunded to
8/1/00), 7.10%, 8/1/16 ............................ 2,250,000(d) 2,334,982
Weatherford Utility System, Water Revenue (MBIA)
(Prerefunded to 9/1/01), 7.00%, 9/1/11 ............ 3,750,000(d) 3,978,862
------------
25,665,811
------------
UTAH (2.9%):
Intermountain Power Agency (FSA), 5.25%, 7/1/01 ..... 3,810,000 3,889,743
------------
WASHINGTON (15.6%):
Chelan County Public Utilities District (MBIA), AMT,
5.20%-5.35%, 7/1/00-7/1/01 ........................ 885,000(e) 899,661
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/00), 7.00%, 12/1/09 .......... 1,450,000(d) 1,515,119
Public Power Supply System (Prerefunded to 1/1/00),
7.25%, 7/1/15 1,435,000(d) 1,490,448
Public Power Supply System (Prerefunded to 1/1/01),
7.63%, 7/1/10 5,000,000(d) 5,346,150
Public Power Supply System (Prerefunded to 7/1/00),
7.38%, 7/1/12 1,550,000(d) 1,637,668
Public Power Supply System, Zero-Coupon (BIG), 7.15%,
7/1/06 ............................................ 1,500,000(b) 1,065,810
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
23 1999 Semiannual Report 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>
Public Power Supply System, Zero-Coupon (FGIC),
7.17%, 7/1/06 ..................................... $ 5,000,000(b) $ 3,552,700
Public Power Supply Systems, 5.00%-5.25%,
7/1/00-7/1/01 ..................................... 3,500,000 3,552,235
Seattle Water Revenue (Prerefunded to 5/1/00), 7.25%,
5/1/17 ............................................ 2,000,000(d) 2,101,480
------------
21,161,271
------------
WEST VIRGINIA (3.5%):
School Building Authority (MBIA) (Prerefunded to
7/1/00), 7.25%, 7/1/15 ............................ 4,000,000(d) 4,224,640
State Water Development Authority (FSA) (Callable
11/1/01 at 102), 7.00%, 11/1/11 ................... 500,000 538,485
------------
4,763,125
------------
WISCONSIN (5.4%):
Amery Apple River Hospital Project Revenue,
4.50%-4.65%, 6/1/00-6/1/01 ........................ 780,000 780,408
Health and Education Facilities-Gundersen Clinic
(FSA), 5.50%, 12/1/01 ............................. 2,400,000 2,467,080
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Callable 8/15/00 at 102), 7.25%,
8/15/19 ........................................... 105,000 110,401
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Prerefunded to 8/15/00), 7.25%,
8/15/19 ........................................... 1,570,000(d) 1,662,583
Health and Education Facility (MBIA) (Prerefunded to
6/1/00), 7.00%, 6/1/20 ............................ 1,600,000(d) 1,681,520
Neenah Industrial Development Revenue (Callable
6/1/00 at 101), AMT, 6.75%, 6/1/12 ................ 650,000(e) 668,038
------------
7,370,030
------------
Total Municipal Long-Term Securities
(cost: $120,527,888) ........................... 127,969,535
------------
MUNICIPAL SHORT-TERM SECURITIES (3.9%):
NEW YORK (3.9%):
New York City, Municipal Water Authority, 3.55%,
6/15/25 ........................................... 3,340,000(c) 3,340,000
New York City, Series C, 4.00%, 10/1/23 ............. 2,000,000(c) 2,000,000
------------
Total Municipal Short-Term Securities
(cost: $5,340,000) ............................. 5,340,000
------------
Total Investments in Securities
(cost: $125,867,888)(f) ........................ $133,309,535
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
24 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
- --------------------------------------------------------------------------------
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, 1999. 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, 1999, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $2,583,739,
WHICH REPRESENTS 1.90% OF NET ASSETS.
(f) 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 ...... $ 7,453,415
GROSS UNREALIZED DEPRECIATION ...... (11,768)
------------
NET UNREALIZED APPRECIATION ...... $ 7,441,647
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
25 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST II June 30, 1999
.......................................................................................
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 (98.2%):
FLORIDA (4.8%):
Manatee County, Zero-Coupon (MBIA), 6.91%,
10/1/07 ........................................... $ 2,995,000(b) $ 2,005,362
University Community Hospital (FSA) (Prerefunded to
9/1/00), 7.50%, 9/1/11 ............................ 3,500,000(e) 3,721,200
------------
5,726,562
------------
ILLINOIS (22.1%):
Belleville General Obligation (FGIC) (Prerefunded to
12/1/01), 7.13%, 12/1/08 .......................... 1,000,000(e) 1,070,390
Carbondale General Obligation (FGIC) (Prerefunded to
5/1/01), 6.90%, 5/1/12 ............................ 3,200,000(e) 3,363,456
Central Lake County, Zero-Coupon (MBIA), 6.98%,
5/1/07 ............................................ 2,370,000(b) 1,604,561
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to
1/1/01), 7.10%, 1/1/11 ............................ 1,500,000(e) 1,595,025
Chicago Wastewater Revenue (FGIC) (Prerefunded to
11/15/00), 6.75%, 11/15/20 ........................ 2,000,000(e) 2,117,800
Cook County General Obligation (AMBAC) (Prerefunded
to 11/1/01), 6.75%, 11/1/18 ....................... 5,000,000(e) 5,391,050
Decatur, Zero-Coupon (AMBAC), 6.98%, 10/1/07 ........ 1,250,000(b) 828,912
Health Facility-Evangelical Hospital (escrowed to
maturity) (Callable 4/15/02 at 102), 6.75%,
4/15/12 ........................................... 990,000 1,115,710
Health Facility-Evangelical Hospital (Prerefunded to
4/15/02), 6.75%, 4/15/12-4/15/17 .................. 1,190,000(e) 1,285,973
Health Facility-Highland Park Hospital (FGIC), 5.30%,
10/1/02 ........................................... 1,265,000 1,297,903
Higher Education Facility-Augustana College (Connie
Lee), 4.90%, 10/1/02 .............................. 500,000 506,710
Kane County Public Building Authority (MBIA)
(Prerefunded to 12/1/99), 6.88%, 12/1/10 .......... 1,000,000(e) 1,014,740
Kendall, Kane, and Will Counties, Zero-Coupon (FGIC),
6.96%, 3/1/07 975,000(b) 665,603
Lake County Water and Sewer System (AMBAC)
(Prerefunded to 12/1/01), 6.75%,
12/1/08-12/1/09 ................................... 4,215,000(e) 4,476,583
------------
26,334,416
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
26 1999 Semiannual Report 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>
INDIANA (13.4%):
Boonville School Building Corporation (Callable
7/1/02 at 102), 6.90%, 7/1/09 ..................... $ 2,000,000 $ 2,156,100
Indiana Bond Bank, 5.15%, 2/1/02 .................... 900,000 913,590
Indiana University, Zero-Coupon (AMBAC), 7.07%,
8/1/07 ............................................ 3,180,000(b) 2,126,307
Lake Central Multi-District School Building
Corporation (Prerefunded to 7/15/01), 7.00%,
1/15/14-1/15/18 ................................... 2,500,000(e) 2,684,025
Noblesville/Hamilton County School Building
Corporation (Prerefunded to 2/1/01), 7.00%,
2/1/13 ............................................ 1,000,000(e) 1,063,070
Port Commission, Cargill Inc. Project (Callable
5/1/02 at 102), 6.88%, 5/1/12 ..................... 450,000(c) 478,111
Purdue University (AMBAC) (Prerefunded to 7/1/01),
7.00%, 7/1/14 ..................................... 3,000,000(e) 3,223,980
St. Joseph County Hospital Authority (MBIA)
(Prerefunded to 12/1/01), 7.00%, 12/1/12 .......... 3,000,000 3,252,690
------------
15,897,873
------------
IOWA (3.0%):
Keokuk Hospital Facility Revenue, 4.70%, 12/1/02 .... 125,000 123,954
Mason City Hospital Facilities (FSA) (Prerefunded to
8/15/01), 6.88%, 8/15/09 .......................... 1,265,000(e) 1,360,761
Polk County Health Facilities (MBIA) (Prerefunded to
11/1/01), 7.10%, 11/1/09 .......................... 1,895,000(e) 2,040,233
------------
3,524,948
------------
KENTUCKY (1.0%):
Owensboro Electric Light and Power, Zero-Coupon
(AMBAC), 6.91%, 1/1/07 ............................ 1,775,000(b) 1,229,010
------------
LOUISIANA (3.1%):
New Orleans General Obligation, Zero-Coupon (AMBAC),
7.01%, 9/1/07 ..................................... 5,000,000(b) 3,337,400
Parrish of St. Martin, Cargill Inc. Project (Callable
10/1/02 at 102), 6.63%, 10/1/12 ................... 300,000(c) 317,133
------------
3,654,533
------------
MICHIGAN (0.9%):
State Housing Development Authority (FSA) (Callable
10/15/02 at 103), 6.85%, 10/15/18 ................. 1,000,000 1,067,630
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
27 1999 Semiannual Report 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>
MINNESOTA (0.9%):
Burnsville Gross Revenue, 3.80%-4.50%,
5/1/00-5/1/05 ..................................... $ 1,120,000 $ 1,099,369
------------
MONTANA (1.8%):
State Board of Investment (MBIA) (escrowed to
maturity) (Callable 6/1/01 at 102), 6.88%,
6/1/20 ............................................ 2,000,000 2,138,740
------------
NEVADA (1.7%):
Clark County School District (FGIC), 5.75%,
6/15/02 ........................................... 2,000,000 2,079,140
------------
NEW HAMPSHIRE (0.8%):
Single Family Housing Authority (Callable 7/1/03 at
102), 5.85%, 7/1/10 ............................... 905,000 930,304
------------
NEW JERSEY (1.8%):
State Educational Facilities Authority (Prerefunded
to 7/1/01), 6.88%, 7/1/10 ......................... 2,000,000 2,140,540
------------
NEW YORK (0.9%):
New York City General Obligation, 5.10%, 8/1/02 ..... 1,000,000 1,019,960
------------
NORTH DAKOTA (4.8%):
Bismark Hospital Revenue (AMBAC) (Prerefunded to
5/1/01), 6.90%, 5/1/06 ............................ 4,300,000 4,592,529
Grand Forks Health Care Authority (MBIA) (Callable
12/1/01 at 102), 6.63%, 12/1/10 ................... 1,000,000 1,068,970
------------
5,661,499
------------
OKLAHOMA (0.7%):
Tulsa County Oklahoma Independent School District No.
5, 5.00%, 7/1/02 .................................. 850,000 863,719
------------
SOUTH CAROLINA (1.4%):
Lexington County Health Services (FSA) (Prerefunded
to 10/1/01), 6.75%, 10/1/18 ....................... 1,600,000(e) 1,722,304
------------
SOUTH DAKOTA (0.5%):
Health & Education Facility Revenue (AMBAC), 4.50%,
8/1/02 ............................................ 565,000 568,215
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
28 1999 Semiannual Report 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>
TENNESSEE (1.1%):
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/02 .................................... $ 1,235,000(f) $ 1,260,379
------------
TEXAS (8.6%):
Abilene Health Facility Development, 4.80%,
11/15/02 .......................................... 605,000 593,735
Harris County Health Facilities (FSA) (Prerefunded to
10/1/01), 7.00%, 10/1/14 .......................... 2,225,000 2,403,935
Houston Hotel Occupancy (FGIC) (Prerefunded to
7/1/01), 7.00%, 7/1/15 ............................ 4,995,000(e) 5,277,717
Houston Water and Sewer, Zero-Coupon (AMBAC), 6.91%,
12/1/07 ........................................... 3,000,000(b) 1,977,810
------------
10,253,197
------------
WASHINGTON (17.0%):
Chelan County Public Utilities District (Callable
7/1/03 at 100), AMT, 7.60%, 7/1/25 ................ 3,000,000(f) 3,280,950
Chelan County Public Utilities District (MBIA), AMT,
5.45%, 7/1/02 ..................................... 385,000(f) 395,318
Clark County Public Utility District (FGIC)
(Prerefunded to 1/1/01), 6.50%, 1/1/11 ............ 2,000,000(e) 2,109,620
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/02), 6.63%, 12/1/12 .......... 300,000(e) 322,638
Public Power Supply System, 5.25%, 7/1/01 ........... 2,000,000 2,038,400
Public Power Supply System (Prerefunded to 1/1/00),
7.25%, 7/1/15 3,875,000(e) 4,024,730
Public Power Supply System (Prerefunded to 7/1/00),
7.00%-7.38%, 7/1/11-7/1/12 ........................ 5,225,000(e) 5,518,321
Public Power Supply System (Prerefunded to 7/1/01),
6.75%, 7/1/11 1,350,000(e) 1,443,555
Snohomish County Solid Waste Revenue (MBIA) (Callable
12/1/01 at 102), 7.00%, 12/1/10 ................... 1,000,000 1,085,930
------------
20,219,462
------------
WEST VIRGINIA (4.0%):
School Building Authority (MBIA) (Prerefunded to
7/1/00), 6.75%, 7/1/17 ............................ 2,500,000(e) 2,628,700
State Water Development Authority (Prerefunded to
11/1/01), 7.30%-7.40%, 11/1/11-11/1/19 ............ 2,000,000(e) 2,179,630
------------
4,808,330
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
29 1999 Semiannual Report 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>
WISCONSIN (3.9%):
Amery Revenue, 4.80%, 6/1/02 ........................ $ 420,000 $ 418,198
Health and Education Facilities-Gundersen Clinic
(FSA), 5.10%, 12/1/02 ............................. 3,000,000 3,062,070
Neenah Industrial Development Revenue (Callable
6/1/00 at 101), AMT, 6.75%, 6/1/12 ................ 1,150,000(f) 1,181,913
------------
4,662,181
------------
Total Municipal Long-Term Securities
(cost: $109,498,145) ............................ 116,862,311
------------
MUNICIPAL SHORT-TERM SECURITIES (0.1%):
NEW YORK (0.1%):
New York City, Series B, 4.00%, 10/1/21 ............. 100,000(d) 100,000
------------
Total Investments in Securities
(cost: $109,598,145)(g) ......................... $116,962,311
------------
------------
</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, 1999, THE TOTAL
MARKET VALUE OF THESE INVESTMENTS WAS $795,244 OR 0.67% OF 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, 1999. 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) AMT - ALTERNATIVE MINIMUM TAX. AS OF JUNE 30, 1999, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $6,118,560,
WHICH REPRESENTS 5.13% OF NET ASSETS.
(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 ...... $ 7,396,106
GROSS UNREALIZED DEPRECIATION ...... (31,940)
------------
NET UNREALIZED APPRECIATION ...... $ 7,364,166
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
30 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN MUNICIPAL TERM TRUST III June 30, 1999
.......................................................................................
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 (98.2%):
ALABAMA (0.6%):
Agricultural and Mechanical University Revenue (MBIA)
(Prerefunded to 11/1/02), 6.45%, 11/1/17 .......... $ 500,000 $ 542,860
------------
CALIFORNIA (1.1%):
State Housing Finance Revenue (FHA), 4.80%,
8/1/03 ............................................ 945,000 949,489
------------
COLORADO (2.5%):
Health Facilities Authority Revenue, 4.65%,
1/1/03 ............................................ 1,055,000 1,052,204
Snowmass Village Multifamily Housing (FSA) (Callable
12/15/02 at 102), 6.25%, 12/15/16 ................. 1,000,000 1,041,610
------------
2,093,814
------------
DISTRICT OF COLUMBIA (3.0%):
Catholic University of America (Connie Lee)
(Prerefunded to 10/1/13), 6.30%, 10/1/13 .......... 1,000,000 1,064,180
General Obligation (MBIA), 4.75%, 6/1/03 ............ 1,460,000 1,471,324
------------
2,535,504
------------
FLORIDA (0.8%):
Broward County School District, Zero-Coupon (MBIA),
6.55%, 2/15/08 1,000,000(b) 652,050
------------
HAWAII (1.5%):
State General Obligation (FGIC), 4.80%, 3/1/03 ...... 1,250,000 1,263,450
------------
ILLINOIS (18.7%):
Chicago Wastewater Revenue (FGIC) (Prerefunded to
1/1/03), 6.35%, 1/1/22 ............................ 1,000,000(d) 1,081,530
Greenville Educational Facility Revenue, 4.65%,
6/1/03 ............................................ 320,000 315,386
Health Facility-Alexian Brothers Medical Center
(MBIA) (Prerefunded to 1/1/02), 6.38%, 1/1/15 ..... 1,125,000 1,200,892
Health Facility-Elmhurst Memorial Hospital (FGIC)
(Callable 1/1/02 at 102), 6.50%, 1/1/12 ........... 1,190,000 1,260,043
Health Facility-Highland Park Hospital (FGIC), 5.40%,
10/1/03 ........................................... 1,000,000 1,031,990
Health Facility-Lutheran General Systems (FSA)
(escrowed to maturity) (Callable 4/1/03 at 102),
6.13%, 4/1/12 ..................................... 1,000,000 1,076,700
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
31 1999 Semiannual Report 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>
Henry Hospital District (AMBAC) (Callable 12/1/02 at
100), 6.60%, 12/1/17 .............................. $ 2,000,000 $ 2,151,980
Higher Education Facility-Augustana College (Connie
Lee), 5.00%, 10/1/03 .............................. 330,000 335,023
Lake County Housing and Finance Corporation (FHA)
(Callable 11/1/02 at 100), 6.70%, 11/1/14 ......... 2,000,000 2,078,220
Rochelle Water and Sewer Revenue (Callable 5/1/02 at
102), 7.15%, 5/1/14 ............................... 2,000,000 2,133,800
State General Obligation (FSA) (Callable 10/1/02 at
102), 6.25%, 10/1/12 .............................. 3,100,000 3,302,213
------------
15,967,777
------------
INDIANA (15.1%):
Crawfordsville School Building Corporation (Callable
1/1/03 at 102), 6.25%, 7/1/11 ..................... 500,000 533,095
Freemont Middle School Building (AMBAC) (Prerefunded
to 3/15/02), 6.75%, 3/15/13 ....................... 3,000,000(d) 3,216,630
Health Facilities-Community Hospital Project (MBIA)
(Callable 5/1/02 at 102), 6.40%, 5/1/12 ........... 5,000,000 5,294,450
Health Facilities-Methodist Hospital (AMBAC)
(escrowed to maturity) (Callable 9/1/02 at 102),
5.75%, 9/1/15 ..................................... 1,000,000 1,046,220
Indiana Health Facility, 5.00%, 5/15/03 ............. 495,000 495,163
Lake County Redevelopment Authority (MBIA) (Callable
2/1/05 at 102), 6.45%, 2/1/11 ..................... 1,600,000 1,737,696
Patoka Lake Regional Water and Sewer District (AMBAC)
(Prerefunded to 1/1/04), 6.45%, 1/1/15 ............ 500,000 543,645
------------
12,866,899
------------
IOWA (1.5%):
Cedar Rapids Hospital Facilities (FGIC) (Prerefunded
to 8/15/03), 6.13%, 8/15/13 ....................... 1,200,000 1,296,816
------------
KANSAS (2.0%):
Kansas City Utility Systems, Zero-Coupon (AMBAC),
6.40%, 3/1/08 ..................................... 1,060,000(b) 686,742
Kansas City Utility Systems, Zero-Coupon (AMBAC)
(escrowed to maturity), 6.40%, 3/1/08 ............. 1,515,000(b) 984,023
------------
1,670,765
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
32 1999 Semiannual Report 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>
MAINE (2.5%):
Water and Sewer Revenue (Callable 11/1/02 at 102),
6.60%, 11/1/15 $ 2,000,000 $ 2,157,260
------------
NEVADA (1.2%):
Clark County School District (FGIC), 5.75%,
6/15/03 ........................................... 1,000,000 1,046,680
------------
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 1,072,030
------------
NEW YORK (2.1%):
State General Obligation, 5.20%, 8/1/03 ............. 1,735,000 1,776,553
------------
NORTH DAKOTA (3.7%):
Mercer County Pollution Control Revenue (AMBAC),
7.20%, 6/30/13 .................................... 2,700,000 3,188,970
------------
OKLAHOMA (1.0%):
Tulsa County Oklahoma Independent School District No.
5, 5.00%, 7/1/03 .................................. 850,000 863,540
------------
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 1,279,356
------------
SOUTH CAROLINA (1.6%):
Piedmont Municipal Power Agency (MBIA) (Prerefunded
to 1/1/03), 6.30%, 1/1/14 ......................... 1,285,000(d) 1,388,571
------------
SOUTH DAKOTA (3.0%):
State Building Authority (AMBAC) (escrowed to
maturity), 6.63%, 9/1/12 .......................... 2,350,000 2,554,826
------------
TEXAS (22.2%):
Abilene Health Facility Development, 4.90%,
11/15/03 .......................................... 665,000 648,016
Abliene Health Care Facility Development, 4.10%,
11/15/99 .......................................... 385,000 383,926
Austin Utility System Revenue, Zero-Coupon (MBIA),
6.53%, 11/15/08 5,000,000(b) 3,115,500
Houston Water and Sewer Revenue (FSA) (Callable
12/1/02 at 102), 6.38%, 12/1/14 ................... 1,900,000 2,018,427
Montgomery County Hospital District (FSA)
(Prerefunded to 4/1/02), 6.63%, 4/1/17 ............ 3,300,000(d) 3,557,400
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
- --------------------------------------------------------------------------------
33 1999 Semiannual Report 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>
Pflugerville Independent School District (Prerefunded
to 8/15/04), 5.75%, 8/15/15 ....................... $ 975,000 $ 1,031,540
San Antonio Electric and Gas, Zero-Coupon (FGIC),
6.40%, 2/1/08 ..................................... 4,500,000(b) 2,932,515
San Antonio Water Revenue (MBIA) (Callable 5/15/02 at
102)), 6.50%, 5/15/10 ............................. 1,685,000 1,799,513
San Antonio Water Revenue (MBIA) (escrowed to
maturity), 6.50%, 5/15/10 ......................... 440,000 493,649
San Antonio Water Revenue (MBIA) (Prerefunded to
5/15/02), 6.50%, 5/15/10 .......................... 875,000(d) 943,705
State Capital Appreciation, Zero-Coupon (FGIC),
6.43%, 4/1/08 ..................................... 3,100,000(b) 1,993,238
------------
18,917,429
------------
WASHINGTON (7.7%):
Chelan County Public Utilities District (MBIA), AMT,
5.55%, 7/1/03 ..................................... 305,000(e) 315,035
Public Power Supply (Callable 7/1/02 at 102), 6.25%,
7/1/12 ............................................ 770,000 814,452
Public Power Supply (Prerefunded to 7/1/02), 6.25%,
7/1/12 ............................................ 2,600,000(d) 2,788,682
Public Power Supply System (Prerefunded to 7/1/01),
6.50%, 7/1/18 ..................................... 2,515,000(d) 2,677,293
------------
6,595,462
------------
WEST VIRGINIA (3.3%):
Clarksburg Water Revenue (Asset Guaranty) (Callable
9/1/02 at 102), 6.25%, 9/1/14 ..................... 2,620,000 2,772,170
------------
WISCONSIN (0.3%):
Amery Revenue, 4.90%, 6/1/03 ........................ 300,000 298,152
------------
Total Municipal Long-Term Securities
(cost: $77,944,248) ............................. 83,750,423
------------
MUNICIPAL SHORT-TERM SECURITIES (0.2%):
NEW YORK (0.2%):
New York City, NY, Subseries B-2, 4.00%, 8/15/20
(cost: $200,000) .................................. 200,000(c) 200,000
------------
Total Investments in Securities
(cost: $78,144,248)(f) .......................... $ 83,950,423
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
34 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
- --------------------------------------------------------------------------------
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, 1999. 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, 1999, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $315,035,
WHICH REPRESENTS 0.37% OF NET ASSETS.
(f) 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 ...... $ 5,829,452
GROSS UNREALIZED DEPRECIATION ...... (23,277)
------------
NET UNREALIZED APPRECIATION ...... $ 5,806,175
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
35 1999 Semiannual Report American Municipal Term Trusts
<PAGE>
[LOGO] FIRST AMERICAN
ASSET MANAGEMENT
AMERICAN MUNICIPAL TERM TRUSTS
1999 SEMIANNUAL REPORT
[GRAPHIC]This document is printed on paper
made from 100% total recovered fiber,
including 15% post-consumer waste.
8/1999 329-99
