<PAGE>
AMERICAN MUNICIPAL
TERM TRUSTS
AXT
BXT
CXT
SEMIANNUAL REPORT
2000
[LOGO] FIRST AMERICAN-Registered Trademark-
Asset Management
<PAGE>
[LOGO]FIRST AMERICAN-Registered Trademark-
Asset Management
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.
TABLE OF CONTENTS
2 Fund Overview
7 Financial Statements
and Notes
21 Investments in
Securities
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, 2000
[CHART]
<TABLE>
<CAPTION>
One Year Five Year Since Inception
-------- --------- ---------------
<S> <C> <C> <C>
AMERICAN MUNICIPAL TERM TRUST (AXT, inception 3/27/1991) 2.69% 4.93% 7.65%
AMERICAN MUNICIPAL TERM TRUST II (BXT, inception 9/26/1991) 2.62% 5.21% 7.56%
AMERICAN MUNICIPAL TERM TRUST III (CXT, inception 11/27/1992) 2.85% 6.41% 7.42%
</TABLE>
All total returns are through June 30, 2000, 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, 2000, were
4.64%, 6.46%, and 6.91% for AXT, 3.09%, 6.95%, and 6.55% for BXT, and 1.39%,
8.05%, and 5.97% 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.
AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000 1 )
<PAGE>
FUND OVERVIEW
[SIDENOTE]
FUND MANAGEMENT
DOUG WHITE, CFA,
is primarily responsible
for the management of
the American Municipal
Term Trusts. He has 17
years of financial
experience.
CATHERINE STIENSTRA
assists with the
management of the
American Municipal Term
Trusts. She has 12 years
of financial experience.
AUGUST 15, 2000
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. Short-term interest rates rose during the period, and
in some months funds slightly underearned dividends and had to draw on 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 their $10
per share objectives. The net asset values for AXT, BXT, and CXT, as of June 30,
2000, were $10.66, $10.80, and $10.80, respectively.
AXT'S 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 special
dividends in 1999, and may again in 2000.
COMPARED WITH 1999, THE BOND MARKET HAS BEEN RELATIVELY BENIGN DURING THE FIRST
SIX MONTHS OF 2000. It appears that the Federal Reserve's raising of short-term
interest rates over the past 12 months is having some slowing effect on the
economy. Inflation fears have subsided, at least for the time being. As such,
interest rates on municipal bonds--as represented by the Bond Buyers 20
Index--have fluctuated in a relatively narrow band, ending the period about
0.25% below the beginning of the year.
<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, 2000 72% 69% 48%
--------------------------------------------------------------------------------
</TABLE>
( 2 AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000
<PAGE>
OVERALL, MUNICIPAL BOND ISSUANCE WAS DOWN 22% COMPARED TO THE SAME PERIOD LAST
YEAR. Refunding issues, however, were down almost 70%, as interest rates have
not fallen substantially below the highs of 1999.
OUR STRATEGY OF SELLING LONGER-MATURITY BONDS IN FAVOR OF BONDS CLOSER TO THE
FUNDS' TERMINATION DATES, WHEN APPROPRIATE, REMAINS IN PLACE. Occasionally,
income considerations will prompt us to reinvest cash from maturing issues into
intermediate maturities, which pay higher income. As shown in the table on the
previous page, the percentage of bonds with maturity or refund dates less than a
year beyond the funds' termination dates is substantial when compared to their
inception dates.
WE EXPECT THAT THE FUNDS' NET ASSET VALUES WILL CONTINUE TO DECLINE AS THE FUNDS
NEAR THEIR TERMINATION DATES. Several factors contribute to this decline. A
number of bonds currently have market values in excess of their maturity or
redemption values. 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. This is especially true of AXT, which
terminates in April 2001.
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 AND
INTERMEDIATE MATURITIES, AND LOWER COUPONS, THAT COME DUE CLOSER TO THE FUNDS'
TERMINATION DATES. Any gains
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
DISTRIBUTION HISTORY 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 6/30/2000
------------------------------------------------------------------------------------------------
Common Shareholders $6.05 $5.47 $4.28
------------------------------------------------------------------------------------------------
Preferred Shareholders (On a Common Share Basis) $1.54 $1.44 $1.21
------------------------------------------------------------------------------------------------
Total Capital Gains Distributions to Common
Shareholders Through 6/30/2000 $0.19 $0.13 $0.13
------------------------------------------------------------------------------------------------
</TABLE>
AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000 3 )
<PAGE>
FUND OVERVIEW CONTINUED
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 the funds' current dividends, the funds' dividend reserves may be
used to supplement common and/or preferred 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 IMPACT 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 strategies 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 on 6/30/2000 +$0.04 +$0.02 +$0.00
----------------------------------------------------------------------------------------
SUBTOTAL $9.37 $9.36 $9.33
----------------------------------------------------------------------------------------
Dividend Reserve
(Undistributed Net Investment Income) on 6/30/2000 +$0.82 +$0.84 +$0.70
----------------------------------------------------------------------------------------
Unrealized Appreciation on Investments on 6/30/2000 +$0.47 +$0.60 +$0.77
----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ON 6/30/2000 $10.66 $10.80 $10.80
----------------------------------------------------------------------------------------
</TABLE>
( 4 AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000
<PAGE>
PORTFOLIO COMPOSITION
As a percentage of total assets on June 30, 2000
AMERICAN MUNICIPAL TERM TRUST
[PIE CHART]
<TABLE>
<S> <C>
Utility Revenue 29%
General Obligations 23%
Health Care Revenue 20%
Tax Revenue 8%
Education Revenue 6%
Short-Term 7%
Municipal Bond Bank 2%
Other Assets 2%
Housing Revenue 1%
IDR Pollution Control Revenue 1%
Transportation Revenue 1%
</TABLE>
AMERICAN MUNICIPAL TERM TRUST II
[PIE CHART]
<TABLE>
<S> <C>
Utility Revenue 25%
Health Care Revenue 24%
General Obligations 18%
Education Revenue 13%
Tax Revenue 6%
Miscellaneous Revenue 5%
Transportation Revenue 3%
Housing Revenue 2%
Industrial Development Revenue 2%
Other Assets 2%
</TABLE>
AMERICAN MUNICIPAL TERM TRUST III
[PIE CHART]
<TABLE>
<S> <C>
Utility Revenue 33%
Health Care Revenue 23%
General Obligations 19%
Education Revenue 8%
Housing Revenue 5%
IDR Pollution Control Revenue 4%
Building Revenue 3%
Municipal Bond Bank 3%
Economic Development Revenue 2%
</TABLE>
AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000 5 )
<PAGE>
FUND OVERVIEW CONTINUED
LIQUIDATION OF AXT
At a shareholder meeting held on August 3, 2000, shareholders approved the AXT
plan of liquidation, which will occur on or about April 15, 2000. At such time,
portfolio securities and other assets of the fund will be sold, creditors will
be paid or reserves for such payments will be made, and the net proceeds of such
sales will be distributed to common shareholders in cash.
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 AMERICAN MUNICIPAL TERM TRUSTS SEMIANNUAL REPORT 2000
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES June 30, 2000
................................................................................
<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) ....... $131,389,382 $116,205,642 $ 82,725,738
Cash in bank on demand deposit ............................ -- 98,358 --
Accrued interest receivable ............................... 2,596,864 2,021,694 1,203,614
------------ ------------ ------------
Total assets ............................................ 133,986,246 118,325,694 83,929,352
------------ ------------ ------------
LIABILITIES:
Preferred stock dividends payable (note 3) ................. 11,295 18,652 16,215
Payable for investment securities purchased ................ -- 1,781,708 --
Accrued investment management fee .......................... 27,108 23,789 17,104
Accrued administrative fee ................................. 31,057 27,479 20,219
Bank overdraft ............................................. 1,304,532 -- --
Other accrued expenses ..................................... 22,124 19,268 9,824
------------ ------------ ------------
Total liabilities ........................................ 1,396,116 1,870,896 63,362
------------ ------------ ------------
Net assets applicable to outstanding capital stock ....... $132,590,130 $116,454,798 $ 83,865,990
============ ============ ============
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital (common and
preferred stock) ......................................... $121,433,111 $105,777,741 $ 76,083,608
Undistributed net investment income ........................ 6,916,975 6,209,531 3,706,502
Accumulated net realized gain on investments ............... 274,217 87,385 302
Unrealized appreciation of investments ..................... 3,965,827 4,380,141 4,075,578
------------ ------------ ------------
Total - representing net assets applicable to outstanding
capital stock .......................................... $132,590,130 $116,454,798 $ 83,865,990
============ ============ ============
* Investments in securities at identified cost ........... $127,423,555 $111,825,501 $ 78,650,160
============ ============ ============
NET ASSET VALUE AND MARKET PRICE OF COMMON STOCK:
Net assets applicable to common stock ...................... $ 90,090,130 $ 79,454,798 $ 57,265,990
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 ............................................ $ 10.66 $ 10.80 $ 10.80
Market price ............................................... $ 10.44 $ 10.31 $ 10.13
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.
--------------------------------------------------------------------------------
2000 Semiannual Report 7 American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 2000
................................................................................
<TABLE>
<CAPTION>
AMERICAN AMERICAN AMERICAN
MUNICIPAL MUNICIPAL MUNICIPAL
TERM TRUST TERM TRUST II TERM TRUST III
------------- ------------- --------------
<S> <C> <C> <C>
INCOME:
Interest .................................................. $ 3,825,428 $ 3,495,514 $2,374,558
------------ ----------- ----------
EXPENSES (NOTE 5):
Investment management fee .................................. 164,932 144,558 103,608
Administrative fee ......................................... 131,945 115,647 82,887
Remarketing agent fee ...................................... 52,980 46,122 33,159
Custodian fees ............................................. 10,463 9,085 6,734
Transfer agent fees ........................................ 5,695 5,298 4,998
Reports to shareholders .................................... 13,505 15,189 13,505
Directors' fees ............................................ 1,496 1,496 1,496
Audit and legal fees ....................................... 18,298 18,298 18,298
Other expenses ............................................. 27,806 26,907 22,984
------------ ----------- ----------
Total expenses ........................................... 427,120 382,600 287,669
------------ ----------- ----------
Net investment income .................................... 3,398,308 3,112,914 2,086,889
------------ ----------- ----------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gain on investments (note 4) .................. 274,217 87,385 302
Net change in unrealized appreciation or depreciation
of investments ........................................... (1,006,402) (728,665) (33,175)
------------ ----------- ----------
Net loss on investments .................................. (732,185) (641,280) (32,873)
------------ ----------- ----------
Net increase in net assets resulting
from operations ...................................... $ 2,666,123 $ 2,471,634 $2,054,016
============ =========== ==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 8 American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
AMERICAN MUNICIPAL TERM TRUST
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED
(UNAUDITED) 12/31/99
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income ...................................... $ 3,398,308 $ 7,599,559
Net realized gain on investments ........................... 274,217 26,322
Net change in unrealized appreciation or depreciation
of investments ........................................... (1,006,402) (5,538,169)
------------ ------------
Net increase in net assets resulting from operations ..... 2,666,123 2,087,712
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends .................................. (2,291,305) (6,200,897)
Preferred stock dividends ............................... (891,351) (1,424,980)
From net realized gains:
Common stock dividends .................................. -- (21,983)
Preferred stock dividends ............................... -- (4,930)
------------ ------------
Total distributions ..................................... (3,182,656) (7,652,790)
------------ ------------
Total decrease in net assets ............................. (516,533) (5,565,078)
Net assets at beginning of period .......................... 133,106,663 138,671,741
------------ ------------
Net assets at end of period ................................ $132,590,130 $133,106,663
============ ============
Undistributed net investment income ........................ $ 6,916,975 $ 6,701,323
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 9 American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
AMERICAN MUNICIPAL TERM TRUST II
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED
(UNAUDITED) 12/31/99
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income ...................................... $ 3,112,914 $ 6,508,346
Net realized gain on investments ........................... 87,385 4,500
Net change in unrealized appreciation or depreciation
of investments ........................................... (728,665) (5,324,104)
------------ ------------
Net increase in net assets resulting from operations ..... 2,471,634 1,188,742
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends ................................... (1,901,479) (5,277,801)
Preferred stock dividends ................................ (740,753) (1,272,842)
From net realized gains:
Common stock dividends ................................... -- (3,678)
Preferred stock dividends ................................ -- (870)
------------ ------------
Total distributions ...................................... (2,642,232) (6,555,191)
------------ ------------
Total decrease in net assets ............................. (170,598) (5,366,449)
Net assets at beginning of period .......................... 116,625,396 121,991,845
------------ ------------
Net assets at end of period ................................ $116,454,798 $116,625,396
============ ============
Undistributed net investment income ........................ $ 6,209,531 $ 5,738,849
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 10 American Municipal Term Trusts
<PAGE>
FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
AMERICAN MUNICIPAL TERM TRUST III
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED
(UNAUDITED) 12/31/99
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income ...................................... $ 2,086,889 $ 4,375,395
Net realized gain on investments ........................... 302 21,203
Net change in unrealized appreciation or depreciation
of investments ........................................... (33,175) (4,285,205)
----------- -----------
Net increase in net assets resulting from operations ..... 2,054,016 111,393
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Common stock dividends ................................... (1,258,750) (3,021,000)
Preferred stock dividends ................................ (497,000) (833,052)
From net realized gains:
Common stock dividends ................................... -- (17,490)
Preferred stock dividends ................................ -- (5,850)
----------- -----------
Total distributions ...................................... (1,755,750) (3,877,392)
----------- -----------
Total increase (decrease) in net assets .................. 298,266 (3,765,999)
Net assets at beginning of period .......................... 83,567,724 87,333,723
----------- -----------
Net assets at end of period ................................ $83,865,990 $83,567,724
=========== ===========
Undistributed net investment income ........................ $ 3,706,502 $ 3,375,363
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
2000 Semiannual Report 11 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.
--------------------------------------------------------------------------------
2000 Semiannual Report 12 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, 2000, the
funds 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 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 gains may differ from its ultimate characterization
for federal income tax purposes. In addition, due to the timing
of dividend
--------------------------------------------------------------------------------
2000 Semiannual Report 13 American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
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.
REPURCHASE AGREEMENTS AND OTHER SHORT-TERM SECURITIES
For repurchase agreements entered into with certain broker-
dealers, the fund, along with other affiliated registered
investment companies, may transfer uninvested cash balances into
a joint trading account, the daily aggregate of which is
invested in repurchase agreements secured by U.S. government or
agency obligations. Securities pledged as collateral for all
individual and joint repurchase agreements are held by the
fund's custodian bank until maturity of the repurchase
agreement. Provisions for all agreements ensure that the daily
market value of the collateral is in excess of the repurchase
amount, including accrued interest, to protect the fund in the
event of a default. In addition to repurchase agreements, the
fund may invest in money market funds advised by the fund's
advisor.
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
--------------------------------------------------------------------------------
2000 Semiannual Report 14 American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
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, 2000, 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, 2000, the dividend rates were 4.85%, 4.60% and 4.45% for
American Municipal Term Trust Inc., American Municipal Term
Trust Inc. II, and American Municipal Term Trust Inc. III,
respectively.
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, 2000 were as follows:
<TABLE>
<CAPTION>
AMERICAN AMERICAN AMERICAN
MUNICIPAL MUNICIPAL MUNICIPAL
TERM TRUST TERM TRUST II TERM TRUST III
----------- ------------- --------------
<S> <C> <C> <C>
Purchases .............................. $ 4,177,699 $5,580,532 $229,050
Proceeds from sales .................... $12,399,400 $5,362,468 $145,000
</TABLE>
(5) EXPENSES
............................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The funds entered into the following agreements with U.S. Bank
National Association (U.S. Bank) acting through its division,
First American Asset Management (the advisor and administrator):
The investment advisory agreement provides the advisor with a
monthly investment management fee in an amount equal to an
annualized percentage of 0.25% of the funds' average weekly
--------------------------------------------------------------------------------
2000 Semiannual Report 15 American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
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 percentage of
0.20% 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 provides 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; insurance; interest; taxes and other miscellaneous
expenses. During the six months ended June 30, 2000, American
Municipal Term Trust Inc., American Municipal Term Trust Inc. II
and American Municipal Term Trust Inc. III paid $9,971, $8,738
and $6,260, respectively, for custody services to U.S. Bank.
--------------------------------------------------------------------------------
2000 Semiannual Report 16 American Municipal Term Trusts
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
--------------------------------------------------------------------------------
(6) SUBSEQUENT
EVENT
............................
In preparation for the termination and liquidation of American
Municipal Term Trust Inc. on April 15, 2001, the fund will
redeem shares of the preferred stock. On July 13, 2000, the fund
redeemed 800 shares at a redemption price of $25,000 per share
plus accumulated, but unpaid, dividends through July 12, 2000.
On August 24, 2000, the fund will redeem 200 shares at a
redemption price of $25,000 per share plus accumulated, but
unpaid, dividends through August 23, 2000. The beneficial owners
of shares to be redeemed will be notified by the paying agent.
--------------------------------------------------------------------------------
2000 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
<TABLE>
<CAPTION>
Six Months
Ended Year Year Year Year Year
6/30/00 Ended Ended Ended Ended Ended
(Unaudited) 12/31/99 12/31/98(g) 12/31/97 12/31/96 12/31/95
----------- -------- -------------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $10.72 $11.37 $11.51 $11.52 $11.83 $10.52
------ ------ ------ ------ ------ ------
Operations:
Net investment income ................ 0.40 0.90 0.90 0.91 0.93 0.94
Net realized and unrealized gains
(losses) on investments ............ (0.08) (0.65) (0.12) (0.02) (0.35) 1.22
------ ------ ------ ------ ------ ------
Total from operations .............. 0.32 0.25 0.78 0.89 0.58 2.16
------ ------ ------ ------ ------ ------
Distributions to shareholders:
Paid to common shareholders .......... (0.27) (0.73) (0.65) (0.65) (0.65) (0.65)
Paid to preferred shareholders ....... (0.11) (0.17) (0.16) (0.17) (0.17) (0.20)
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 ..................... (0.38) (0.90) (0.92) (0.90) (0.89) (0.85)
------ ------ ------ ------ ------ ------
Net asset value, common stock, end
of period ............................ $10.66 $10.72 $11.37 $11.51 $11.52 $11.83
====== ====== ====== ====== ====== ======
Market value, common stock, end
of period . $10.44 $10.25 $11.56 $11.50 $11.25 $11.00
====== ====== ====== ====== ====== ======
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 1.99% 0.76% 5.37% 6.22% 3.47% 18.93%
Total return, common stock, market
value (b) 5.02% (5.17)% 7.11% 8.89% 9.06% 16.91%
Net assets at end of period
(in millions) ........................ $ 133 $ 133 $ 139 $ 140 $ 140 $ 143
Ratio of expenses to average weekly net
assets applicable to common
stock (c) ............................ 0.95%(h) 0.95% 0.90% 0.90% 0.91% 0.88%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 5.58%(h) 6.58% 6.40% 6.39% 6.57% 6.53%
Portfolio turnover rate (excluding
short-term securities) ............... 3% 4% 8% 4% 9% 1%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 43 $ 43 $ 43 $ 43 $ 43 $ 43
Asset coverage per share (in
thousands) (f) ....................... $ 78 $ 78 $ 82 $ 82 $ 82 $ 83
Liquidation preference and market value
per share (in thousands) ............. $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
</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 0.65%, 0.66%,
0.63%, 0.63%, 0.64% AND 0.61% FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND
FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, 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 STOCK.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 5.14%,
5.57%, 5.43%, 5.49%, 5.59% AND 5.72% FOR THE SIX MONTHS ENDED JUNE 30, 2000
AND FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY PREFERRED SHARES OUTSTANDING.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL
MANAGEMENT TO U.S. BANK.
(h) ANNUALIZED.
--------------------------------------------------------------------------------
2000 Semiannual Report 18 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 Year Year Year Year
6/30/00 Ended Ended Ended Ended Ended
(Unaudited) 12/31/99 12/31/98(g) 12/31/97 12/31/96 12/31/95
----------- -------- -------------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $10.82 $11.55 $11.60 $11.43 $11.71 $10.27
------ ------ ------ ------ ------ ------
Operations:
Net investment income ................ 0.42 0.88 0.89 0.89 0.90 0.90
Net realized and unrealized gains
(losses) on investments ............ (0.08) (0.72) (0.09) 0.14 (0.35) 1.37
------ ------ ------ ------ ------ ------
Total from operations .............. 0.34 0.16 0.80 1.03 0.55 2.27
------ ------ ------ ------ ------ ------
Distributions to shareholders:
Paid to common shareholders .......... (0.26) (0.72) (0.62) (0.62) (0.62) (0.62)
Paid to preferred shareholders ....... (0.10) (0.17) (0.18) (0.17) (0.17) (0.20)
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 ..................... (0.36) (0.89) (0.85) (0.86) (0.83) (0.83)
------ ------ ------ ------ ------ ------
Net asset value, common stock, end
of period ............................ $10.80 $10.82 $11.55 $11.60 $11.43 $11.71
====== ====== ====== ====== ====== ======
Market value, common stock, end
of period . $10.31 $10.13 $11.56 $11.38 $10.75 $10.63
====== ====== ====== ====== ====== ======
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 2.23% (0.13)% 5.36% 7.57% 3.33% 20.48%
Total return, common stock, market
value (b) 4.92% (6.49)% 7.65% 12.46% 7.66% 17.28%
Net assets at end of period
(in millions) ........................ $ 116 $ 117 $ 122 $ 122 $ 121 $ 123
Ratio of expenses to average weekly net
assets applicable to common
stock (c) ............................ 0.97%(h) 0.97% 0.89% 0.91% 0.92% 0.90%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 6.00%(h) 6.33% 6.12% 6.21% 6.41% 6.35%
Portfolio turnover rate (excluding
short-term securities) ............... 5% 2% 2% 6% 6% 3%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 37 $ 37 $ 37 $ 37 $ 37 $ 37
Asset coverage per share (in
thousands) (f) ....................... $ 79 $ 79 $ 82 $ 83 $ 82 $ 83
Liquidation preference and market value
per share (in thousands) ............. $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
</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%, 0.67%,
0.62%, 0.64%, 0.64% AND 0.62% FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND
FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, 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 STOCK.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 5.37%,
5.44%, 5.32%, 5.36%, 5.48% AND 5.58% FOR THE SIX MONTHS ENDED JUNE 30, 2000
AND FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY PREFERRED SHARES OUTSTANDING.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL
MANAGEMENT TO U.S. BANK.
(h) ANNUALIZED.
--------------------------------------------------------------------------------
2000 Semiannual Report 19 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 Year Year Year Year
6/30/00 Ended Ended Ended Ended Ended
(Unaudited) 12/31/99 12/31/98(g) 12/31/97 12/31/96 12/31/95
----------- -------- -------------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, common stock, beginning
of period ............................ $10.75 $11.46 $11.39 $10.92 $11.11 $ 9.31
------ ------ ------ ------ ------ ------
Operations:
Net investment income ................ 0.39 0.83 0.81 0.82 0.83 0.83
Net realized and unrealized gains
(losses) on investments ............ (0.01) (0.81) 0.08 0.47 (0.27) 1.73
------ ------ ------ ------ ------ ------
Total from operations .............. 0.38 0.02 0.89 1.29 0.56 2.56
------ ------ ------ ------ ------ ------
Distributions to shareholders:
Paid to common shareholders .......... (0.24) (0.57) (0.57) (0.57) (0.57) (0.57)
Paid to preferred shareholders ....... (0.09) (0.16) (0.17) (0.16) (0.18) (0.19)
From net realized gains
Paid to common shareholders .......... -- -- (0.06) (0.07) -- --
Paid to preferred shareholders ....... -- -- (0.02) (0.02) -- --
------ ------ ------ ------ ------ ------
Total distributions to
shareholders ..................... (0.33) (0.73) (0.82) (0.82) (0.75) (0.76)
------ ------ ------ ------ ------ ------
Net asset value, common stock, end
of period . $10.80 $10.75 $11.46 $11.39 $10.92 $11.11
====== ====== ====== ====== ====== ======
Market value, common stock, end
of period ............................ $10.13 $ 9.94 $11.25 $10.94 $10.38 $10.13
====== ====== ====== ====== ====== ======
SELECTED INFORMATION
Total return, common stock, net asset
value (a) ............................ 2.71% (1.23)% 6.28% 10.42% 3.65% 25.93%
Total return, common stock, market
value (b) ............................ 4.78% (6.81)% 8.86% 11.93% 8.38% 26.32%
Net assets at end of period
(in millions) ........................ $ 84 $ 84 $ 87 $ 87 $ 84 $ 85
Ratio of expenses to average weekly net
assets applicable to common
stock (c) ............................ 1.02%(h) 1.03% 0.95% 0.99% 1.01% 0.98%
Ratio of net investment income to
average weekly net assets applicable
to common stock (d)(e) ............... 5.62%(h) 5.98% 5.67% 5.91% 6.08% 6.05%
Portfolio turnover rate (excluding
short-term securities) ............... -- 1% 5% 7% 3% 5%
Remarketed preferred stock outstanding
end of period (in millions) .......... $ 27 $ 27 $ 27 $ 27 $ 27 $ 27
Asset coverage per share (in
thousands) (f) ....................... $ 80 $ 78 $ 82 $ 82 $ 79 $ 80
Liquidation preference and market value
per share (in thousands) ............. $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
</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 0.69%, 0.71%,
0.66%, 0.68%, 0.69% AND 0.66% FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND
FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, 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 STOCK.
(e) RATIO OF NET INVESTMENT INCOME TO TOTAL AVERAGE WEEKLY NET ASSETS IS 5.02%,
5.10%, 4.94%, 5.09%, 5.26% AND 5.38% FOR THE SIX MONTHS ENDED JUNE 30, 2000
AND FISCAL YEARS 1999, 1998, 1997, 1996 AND 1995, RESPECTIVELY.
(f) REPRESENTS TOTAL NET ASSETS DIVIDED BY PREFERRED SHARES OUTSTANDING.
(g) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL
MANAGEMENT TO U.S. BANK.
(h) ANNUALIZED.
--------------------------------------------------------------------------------
2000 Semiannual Report 20 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
AMERICAN MUNICIPAL TERM TRUST June 30, 2000
.....................................................................................
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 (90.7%):
CALIFORNIA (2.3%):
Southern California Public Power Authority Power
Project Revenue, 5.00%, 7/1/01 .................... $3,000,000 $ 3,022,740
------------
COLORADO (1.9%):
Health Care Facility (FSA) (Prerefunded to 2/15/01 at
102), 7.25%, 2/15/16 .............................. 1,925,000(d) 1,996,879
Health Facilities Authority Revenue,
4.45%, 1/1/01 ..................................... 540,000 538,240
------------
2,535,119
------------
DISTRICT OF COLUMBIA (1.6%):
District Columbia (FSA), 5.50%, 6/1/03 .............. 2,000,000 2,034,900
General Obligation (MBIA) (Callable 9/5/00 at 102),
6.75%, 6/1/08 ..................................... 40,000 40,865
------------
2,075,765
------------
FLORIDA (2.3%):
Jacksonville Electric Authority (Prerefunded to
10/1/00 at 101.5), 7.00%, 10/1/12 ................. 3,000,000(d) 3,064,380
------------
GEORGIA (2.2%):
Municipal Electric Authority (MBIA) (Prerefunded to
1/1/01 at 102), 7.00%, 1/1/16 ..................... 2,840,000(d) 2,933,606
------------
HAWAII (0.5%):
State Department Budget and Finance,
4.45%, 7/1/01 ..................................... 720,000 713,866
------------
ILLINOIS (5.8%):
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to 1/1/01
at 102), 7.10%, 1/1/11 ............................ 1,525,000(d) 1,575,950
Health Facility-Evangelical Hospital (FSA) (Callable
1/1/01 at 102), 7.13%, 1/1/21 ..................... 2,500,000 2,583,450
Higher Education Facility-Augustana College (Connie
Lee), 4.80%, 10/1/01 .............................. 500,000 501,500
State Dedicated Tax-Civic Center (Prerefunded to
12/15/00 at 102), 7.00%, 12/15/13 ................. 555,000(d) 572,616
State Sales Tax Revenue (Prerefunded to 6/15/01 at
102), 6.90%, 6/15/12-6/15/13 ...................... 2,300,000(d) 2,398,233
------------
7,631,749
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 21 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
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 $ 3,554,723
Indiana Bond Bank, 5.00%, 2/1/01 .................... 650,000 651,235
Marion County Convention Center (AMBAC) (Callable
6/1/01 at 102), 7.00%, 6/1/10 ..................... 345,000 358,821
Marion County Convention Center (AMBAC) (Prerefunded
to 6/1/01 at 102), 7.00%, 6/1/10 .................. 870,000(d) 907,245
St. Joseph County Hospital Authority
(MBIA)(Prerefunded to 8/15/01 at 102),
7.00%, 8/15/11 .................................... 1,000,000(d) 1,046,770
------------
6,518,794
------------
IOWA (0.8%):
Dubuque Hospital Revenue (escrowed to maturity)
(Callable 1/1/02 at 102), 6.88%, 1/1/12 ........... 1,000,000 1,049,410
------------
MAINE (2.4%):
Municipal Bond Bank (Prerefunded to 11/1/01 at 102),
7.20%, 11/1/13 .................................... 3,000,000(d) 3,160,410
------------
MINNESOTA (1.0%):
Burnsville Gross Revenue, 4.00%, 5/1/01 ............. 130,000 128,583
East Grand Forks Industrial Development Revenue
(Callable 4/1/01 at 102), 8.00%, 4/1/11 ........... 1,000,000 1,032,480
Moorhead Minnesota Gross Revenue, 4.75%, 12/1/00 .... 115,000 114,816
------------
1,275,879
------------
NEBRASKA (0.8%):
Hospital Lease Investment Financing (MBIA)
(Prerefunded to 3/1/01 at 102), 7.00%, 3/1/06 ..... 1,000,000(d) 1,037,120
------------
NEVADA (6.5%):
Clark County School District (MBIA) (Prerefunded to
6/1/01 at 101), 7.00%, 6/1/09 ..................... 3,000,000(d) 3,099,870
University of Nevada Revenue (AMBAC) (Prerefunded to
7/1/00 at 102), 7.13%, 7/1/16 ..................... 2,720,000(d) 2,774,590
Washoe County Limited Tax General Obligation,
Zero-Coupon (MBIA), 7.12%, 7/1/06 ................. 3,725,000(b) 2,730,723
------------
8,605,183
------------
NEW YORK (3.0%):
New York City General Obligation, 5.00%, 8/1/01 ..... 4,000,000 4,017,760
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 22 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
OHIO (0.5%):
Franklin County Ohio Health Care Facility Revenue,
4.40%-4.50%, 8/15/00-8/15/01 ...................... $ 620,000 $ 616,350
------------
OKLAHOMA (1.3%):
Tulsa County Oklahoma Independent School
District No. 5, 6.00%, 7/1/00-7/1/01 .............. 1,670,000 1,682,060
------------
PENNSYLVANIA (3.1%):
Higher Education-Duquesne University (MBIA)
(Prerefunded to 4/1/01 at 100), 7.00%, 4/1/10 ..... 1,000,000(d) 1,019,850
Sayre Healthcare Facility (AMBAC) (Callable 3/1/01 at
102), 7.00%, 3/1/11 ............................... 3,000,000 3,101,820
------------
4,121,670
------------
RHODE ISLAND (1.1%):
Rhode Island Housing and Mortage Finance,
3.65%, 3/30/01 .................................... 1,500,000 1,488,885
------------
SOUTH CAROLINA (0.7%):
South Carolina Ports Authority, 4.10%, 7/1/02 ....... 1,000,000 981,260
------------
SOUTH DAKOTA (3.6%):
Health and Education Facility Revenue (Callable
5/1/01 at 102), 7.00%, 11/1/07 .................... 2,500,000 2,594,200
Rapid City Area School District (MBIA) (Prerefunded
to 1/1/02 at 100), 7.20%, 1/1/11 .................. 1,770,000(d) 1,835,826
Sioux Falls South Dakota Health Facilities Revenue
(AMBAC) (Callable 12/01/99 at 100),
4.45%, 6/1/01 ..................................... 370,000 369,412
------------
4,799,438
------------
TENNESSEE (1.5%):
Bristol Health and Education Facility (FGIC)
(Prerefunded to 3/1/01 at 102), 7.00%, 9/1/11 ..... 1,000,000(d) 1,036,920
Housing Development Authority (FSA) (Callable 7/1/00
at 103), 7.70%, 7/1/16 ............................ 5,000 5,103
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/01 .................................... 1,000,000(e) 1,004,300
------------
2,046,323
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 23 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
TEXAS (19.2%):
Abliene Texas Health Care Facility Development,
4.50%-4.70%, 11/15/00-11/15/01 .................... $1,065,000 $ 1,053,042
Austin Utility System Revenue (BIG) (Prerefunded to
5/15/01 at 100), 8.00%, 11/15/16 .................. 500,000(d) 515,575
Corpus Christi Utility System Revenue (FGIC)
(Prerefunded to 7/15/00 at 102),
7.00%, 7/15/10 .................................... 1,500,000(d) 1,531,545
Harris County Health Facilities (FSA) (Prerefunded to
10/1/01 at 102), 6.85%, 10/1/06 ................... 2,000,000(d) 2,095,420
Houston Hotel Occupancy (FGIC) (Prerefunded to 7/1/01
at 100), 7.00%, 7/1/15 ............................ 4,800,000(d) 4,922,544
Houston Independent School District, Zero-Coupon
(AMBAC), 7.14%, 8/15/06 ........................... 4,285,000(b) 3,128,950
Lower Colorado River Authority (AMBAC) (Callable
1/1/01 at 102), 7.00%, 1/1/11 ..................... 115,000 118,790
Lower Colorado River Authority (AMBAC) (Prerefunded
to 1/1/01 at 102), 7.00%, 1/1/11 .................. 885,000(d) 914,170
Lower Colorado River Authority, Zero-Coupon (AMBAC),
7.17%, 1/1/06 ..................................... 765,000(b) 577,980
Municipal Power Agency, Zero-Coupon (AMBAC),
7.11%, 9/1/06 ..................................... 3,000,000(b) 2,185,620
San Antonio Electric and Gas, Zero-Coupon (FGIC),
7.11%, 2/1/06 ..................................... 3,000,000(b) 2,256,960
Trinity River Authority (AMBAC) (Prerefunded to
8/1/00 at 100), 7.10%, 8/1/16 ..................... 2,250,000(d) 2,255,197
Weatherford Utility System, Water Revenue (MBIA)
(Prerefunded to 9/1/01 at 100), 7.00%, 9/1/11 ..... 3,750,000(d) 3,859,200
------------
25,414,993
------------
UTAH (2.9%):
Intermountain Power Agency (FSA), 5.25%, 7/1/01 ..... 3,810,000 3,839,185
------------
WASHINGTON (13.1%):
Chelan County Public Utilities District (MBIA), AMT,
5.20%-5.35%, 7/1/00-7/1/01 ........................ 885,000(e) 886,984
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/00 at 100),
7.00%, 12/1/09 .................................... 1,450,000(d) 1,466,051
Public Power Supply System (Prerefunded to 1/1/01 at
102), 7.63%, 7/1/10 ............................... 5,000,000(d) 5,179,050
Public Power Supply System (Prerefunded to 7/1/00 at
102), 7.38%, 7/1/12 ............................... 1,550,000(d) 1,581,124
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 24 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
Public Power Supply System, Zero-Coupon (BIG),
7.15%, 7/1/06 ..................................... $1,500,000(b) $ 1,100,265
Public Power Supply System, Zero-Coupon (FGIC),
7.17%, 7/1/06 ..................................... 5,000,000(b) 3,667,550
Public Power Supply Systems,
5.00%-5.25%, 7/1/00-7/1/01 ........................ 3,500,000 3,511,645
------------
17,392,669
------------
WEST VIRGINIA (3.5%):
School Building Authority (MBIA) (Prerefunded to
7/1/00 at 102), 7.25%, 7/1/15 ..................... 4,000,000(d) 4,080,320
State Water Development Authority (FSA) (Callable
11/1/01 at 102), 7.00%, 11/1/11 ................... 500,000 523,740
------------
4,604,060
------------
WISCONSIN (4.2%):
Amery Wisconsin Revenue, 4.65%, 6/1/01 .............. 400,000 397,188
Health and Education Facilities-Gundersen Clinic
(FSA), 5.50%, 12/1/01 ............................. 2,400,000 2,428,968
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Callable 8/15/00 at 102),
7.25%, 8/15/19 .................................... 105,000 107,385
Health and Education Facilities-Waukesha Hospital
(AMBAC) (Prerefunded to 8/15/00 at 102),
7.25%, 8/15/19 .................................... 1,570,000(d) 1,606,738
Oshkosh Area School District (FSA),
4.80%, 3/1/02 ..................................... 1,000,000 1,002,210
------------
5,542,489
------------
Total Municipal Long-Term Securities
(cost: $116,205,336) ............................ 120,171,163
------------
MUNICIPAL SHORT-TERM SECURITIES (7.3%):
NEW YORK (0.1%):
New York City, Series B, 4.75%, 10/1/21 ............. 150,000(c) 150,000
------------
TEXAS (6.7%):
Harris County, 4.75%, 10/1/17 ....................... 1,400,000(c) 1,400,000
Texas PFA, 4.15%, 7/11/00 ........................... 7,500,000 7,500,000
------------
8,900,000
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 25 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
WASHINGTON (0.5%):
Washington Health Care Facilities Authority,
4.75%, 1/1/29 ..................................... $ 695,000 $ 695,000
------------
Total Municipal Short-Term Securities
(cost: $9,745,000) .............................. 9,745,000
------------
RELATED PARTY MONEY MARKET FUND (1.1%):
First American Tax Free Obligations Fund
(cost: $1,473,219) ................................ 1,473,219(f) 1,473,219
------------
Total Investments in Securities
(cost: $127,423,555) (g) ........................ $131,389,382
============
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 IN
THE NOTES TO 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, 2000. 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, 2000, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $1,891,284,
WHICH REPRESENTS 1.4% OF NET ASSETS.
(f) THIS MONEY MARKET FUND IS ADVISED BY U.S. BANK WHO ALSO SERVES AS ADVISOR
FOR THIS FUND. SEE NOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
(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 ...... $4,022,185
GROSS UNREALIZED DEPRECIATION ...... (56,358)
----------
NET UNREALIZED APPRECIATION ...... $3,965,827
==========
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 26 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
AMERICAN MUNICIPAL TERM TRUST II June 30, 2000
.....................................................................................
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 (99.1%):
FLORIDA (4.8%):
Manatee County, Zero-Coupon (MBIA),
6.91%, 10/1/07 .................................... $2,995,000(b) $ 2,066,879
University Community Hospital (FSA) (Prerefunded to
9/1/00 at 102), 7.50%, 9/1/11 ..................... 3,500,000(e) 3,587,640
------------
5,654,519
------------
ILLINOIS (22.8%):
Belleville General Obligation (FGIC) (Prerefunded to
12/1/01 at 100), 7.13%, 12/1/08 ................... 1,000,000(e) 1,035,560
Carbondale General Obligation (FGIC) (Prerefunded to
5/1/01 at 100), 6.90%, 5/1/12 ..................... 3,200,000(e) 3,267,904
Central Lake County, Zero-Coupon (MBIA),
6.98%, 5/1/07 ..................................... 2,370,000(b) 1,661,891
Chicago Motor Fuel Tax (AMBAC) (Prerefunded to 1/1/01
at 102), 7.10%, 1/1/11 ............................ 1,500,000(e) 1,550,115
Chicago Wastewater Revenue (FGIC) (Prerefunded to
11/15/00 at 102), 6.75%, 11/15/20 ................. 2,000,000(e) 2,057,020
Chicago, Illinois O'Hare Airport, 5.20%, 4/1/11 ..... 2,000,000 1,752,920
Cook County General Obligation (AMBAC) (Prerefunded
to 11/1/01 at 102), 6.75%, 11/1/18 ................ 5,000,000(e) 5,238,550
Decatur, Zero-Coupon (AMBAC), 6.98%, 10/1/07 ........ 1,250,000(b) 857,762
Health Facility-Evangelical Hospital (escrowed to
maturity) (Callable 4/15/02 at 102),
6.75%, 4/15/12 .................................... 990,000 1,095,584
Health Facility-Evangelical Hospital (Prerefunded to
4/15/02 at 102), 6.75%, 4/15/12-4/15/17 ........... 1,190,000(e) 1,252,820
Health Facility-Highland Park Hospital (FGIC),
5.30%, 10/1/02 .................................... 1,265,000 1,279,598
Higher Education Facility-Augustana College (Connie
Lee), 4.90%, 10/1/02 .............................. 500,000 501,975
Kendall, Kane, and Will Counties, Zero-Coupon (FGIC),
6.96%, 3/1/07 975,000(b) 689,637
Lake County Water and Sewer System (AMBAC)
(Prerefunded to 12/1/01 at 100),
6.75%, 12/1/08-12/1/09 ............................ 4,215,000(e) 4,343,979
------------
26,585,315
------------
INDIANA (13.4%):
Boonville School Building Corporation (Callable
7/1/02 at 102), 6.90%, 7/1/09 ..................... 2,000,000 2,104,280
Indiana Bond Bank, 5.15%, 2/1/02 .................... 900,000 902,772
Indiana University, Zero-Coupon (AMBAC),
7.07%, 8/1/07 ..................................... 3,180,000(b) 2,201,132
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 27 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
Lake Central Multi-District School Building
Corporation (Prerefunded to 7/15/01 at 102),
7.00%, 1/15/14-1/15/18 ............................ $2,500,000(e) $ 2,611,900
Noblesville/Hamilton County School Building
Corporation (Prerefunded to 2/1/01 at 102),
7.00%, 2/1/13 ..................................... 1,000,000(e) 1,034,800
Port Commission, Cargill Inc. Project (Callable
5/1/02 at 102), 6.88%, 5/1/12 ..................... 450,000 472,190
Purdue University (AMBAC) (Prerefunded to 7/1/01 at
102), 7.00%, 7/1/14 ............................... 3,000,000(e) 3,133,740
St. Joseph County Hospital Authority (MBIA)
(Prerefunded to 12/1/01 at 102),
7.00%, 12/1/12 .................................... 3,000,000(e) 3,156,630
------------
15,617,444
------------
IOWA (2.8%):
Mason City Hospital Facilities (FSA) (Prerefunded to
8/15/01 at 102), 6.88%, 8/15/09 ................... 1,265,000(e) 1,323,051
Polk County Health Facilities (MBIA) (Prerefunded to
11/1/01 at 101), 7.10%, 11/1/09 ................... 1,895,000(e) 1,976,807
------------
3,299,858
------------
KENTUCKY (1.1%):
Owensboro Electric Light and Power, Zero-Coupon
(AMBAC), 6.91%, 1/1/07 ............................ 1,775,000(b) 1,270,421
------------
LOUISIANA (3.2%):
New Orleans General Obligation, Zero-Coupon (AMBAC),
7.01%, 9/1/07 ..................................... 5,000,000(b) 3,453,200
Parrish of St. Martin, Cargill Inc. Project (Callable
10/1/02 at 102), 6.63%, 10/1/12 ................... 300,000(c) 312,207
------------
3,765,407
------------
MICHIGAN (2.7%):
Detroit General Obligation, 6.50%, 4/1/02 ........... 2,000,000 2,049,220
State Housing Development Authority (FSA) (Callable
10/15/02 at 103), 6.85%, 10/15/18 ................. 1,000,000 1,041,150
------------
3,090,370
------------
MINNESOTA (0.7%):
Burnsville Gross Revenue,
4.20%-4.50%, 5/1/02-5/1/05 ........................ 870,000 837,364
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 28 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
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 $ 2,079,680
------------
NEVADA (1.8%):
Clark County School District (FGIC),
5.75%, 6/15/02 .................................... 2,000,000 2,041,060
------------
NEW HAMPSHIRE (0.8%):
Single Family Housing Authority (Callable 7/1/03 at
102), 5.85%, 7/1/10 ............................... 905,000 900,937
------------
NEW JERSEY (1.8%):
State Educational Facilities Authority (Prerefunded
to 7/1/01 at 102), 6.88%, 7/1/10 .................. 2,000,000(e) 2,084,920
------------
NEW YORK (0.9%):
New York City General Obligation, 5.10%, 8/1/02 ..... 1,000,000 1,007,420
------------
NORTH DAKOTA (4.7%):
Bismark Hospital Revenue (AMBAC) (Prerefunded to
5/1/01 at 102), 6.90%, 5/1/06 ..................... 4,300,000(e) 4,472,043
Grand Forks Health Care Authority (MBIA) (Callable
12/1/01 at 102), 6.63%, 12/1/10 ................... 1,000,000 1,042,910
------------
5,514,953
------------
OKLAHOMA (0.7%):
Tulsa County Oklahoma Independent School
District No. 5, 5.00%, 7/1/02 ..................... 850,000 853,851
------------
SOUTH CAROLINA (2.3%):
Lexington County Health Services (FSA) (Prerefunded
to 10/1/01 at 102), 6.75%, 10/1/18 ................ 1,600,000(e) 1,675,104
South Carolina Ports Authority, 4.10%, 7/1/02 ....... 1,010,000 991,073
------------
2,666,177
------------
SOUTH DAKOTA (0.4%):
Health & Education Facility Revenue (AMBAC),
4.50%, 8/1/02 ..................................... 430,000 427,282
------------
TENNESSEE (1.1%):
Memphis-Shelby County Airport Authority (MBIA), AMT,
5.25%, 2/15/02 .................................... 1,235,000(f) 1,243,806
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 29 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
TEXAS (9.2%):
Abilene Texas Health Facility Development,
4.80%, 11/15/02 ................................... $ 605,000 $ 586,662
Harris County Health Facilities (FSA) (Prerefunded to
10/1/01 at 102), 7.00%, 10/1/14 ................... 2,225,000(e) 2,335,026
Houston Hotel Occupancy (FGIC) (Prerefunded to 7/1/01
at 100), 7.00%, 7/1/15 ............................ 4,995,000(e) 5,122,522
Houston Water and Sewer, Zero-Coupon (AMBAC),
6.91%, 12/1/07 .................................... 3,000,000(b) 2,040,900
Nueces County Housing Finance Authority,
6.25%, 7/1/10 ..................................... 575,000 575,000
------------
10,660,110
------------
WASHINGTON (15.2%):
Chelan County Public Utilities District (Callable
7/1/03 at 100), AMT, 7.60%, 7/1/25 ................ 3,000,000(f) 3,169,650
Chelan County Public Utilities District (MBIA), AMT,
5.45%, 7/1/02 ..................................... 385,000(f) 389,358
Clark County Industrial Revenue (AMT) (Callable
08/01/02 at 100), 4.65%, 8/1/07 ................... 2,000,000(f) 1,973,000
Clark County Public Utility District (FGIC)
(Prerefunded to 1/1/01 at 102), 6.50%, 1/1/11 ..... 2,000,000(e) 2,060,900
King and Snohomish Counties School District (FGIC)
(Prerefunded to 12/1/02 at 100),
6.63%, 12/1/12 .................................... 300,000(e) 313,395
Public Power Supply System, 5.25%, 7/1/01 ........... 2,000,000 2,014,160
Public Power Supply System (Prerefunded to 7/1/00 at
102), 7.00%-7.38%, 7/1/11-7/1/12 .................. 5,225,000(e) 5,329,911
Public Power Supply System (Prerefunded to 7/1/01 at
102), 6.75%, 7/1/11 ............................... 1,350,000(e) 1,406,093
Snohomish County Solid Waste Revenue (MBIA)
(Prerefunded to 12/1/01 at 102),
7.00%, 12/1/10 .................................... 1,000,000(e) 1,052,630
------------
17,709,097
------------
WEST VIRGINIA (4.0%):
School Building Authority (MBIA) (Prerefunded to
7/1/00 at 102), 6.75%, 7/1/17 ..................... 2,500,000(e) 2,550,150
State Water Development Authority (Prerefunded to
11/1/01 at 102), 7.30%-7.40%, 11/1/11-11/1/19 ..... 2,000,000(e) 2,110,790
------------
4,660,940
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 30 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST II
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- ------------
<S> <C> <C>
WISCONSIN (2.9%):
Amery Wisconsin Revenue, 4.80%, 6/1/02 .............. $ 420,000 $ 413,141
Health and Education Facilities-Gundersen Clinic
(FSA), 5.10%, 12/1/02 ............................. 3,000,000 3,021,570
------------
3,434,711
------------
Total Municipal Long-Term Securities
(cost: $111,025,501) ............................ 115,405,642
------------
MUNICIPAL SHORT-TERM SECURITIES (0.7%):
NEW YORK (0.1%):
New York City, Municipal Water Authority,
4.75%, 6/15/25 .................................... 100,000(d) 100,000
------------
TEXAS (0.6%):
Harris County, 4.75%, 10/1/17 ....................... 700,000(d) 700,000
------------
Total Municipal Short-Term Securities
(cost: $800,000) ................................ 800,000
------------
Total Investments in Securities
(cost: $111,825,501) (g) ....................... $116,205,642
============
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 IN
THE NOTES TO 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, 2000, THE TOTAL
MARKET VALUE OF THESE INVESTMENTS WAS $312,207 OR 0.3% 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, 2000. 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, 2000, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $6,775,814,
WHICH REPRESENTS 5.8% 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 ...... $4,442,290
GROSS UNREALIZED DEPRECIATION ...... (62,149)
----------
NET UNREALIZED APPRECIATION ...... $4,380,141
==========
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 31 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
AMERICAN MUNICIPAL TERM TRUST III June 30, 2000
....................................................................................
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)
(Prerefunded to 11/1/02 at 102),
6.45%, 11/1/17 .................................... $ 500,000(d) $ 528,765
-----------
CALIFORNIA (1.0%):
State Housing Finance Revenue (FHA),
4.80%, 8/1/03 ..................................... 865,000 867,526
-----------
COLORADO (2.4%):
Health Facilities Authority Revenue,
4.65%, 1/1/03 ..................................... 1,055,000 1,032,782
Snowmass Village Multifamily Housing (FSA) (Callable
12/15/02 at 102), 6.25%, 12/15/16 ................. 1,000,000 1,012,730
-----------
2,045,512
-----------
DISTRICT OF COLUMBIA (3.0%):
Catholic University of America (Connie Lee)
(Prerefunded to 10/1/03 at 102),
6.30%, 10/1/13 .................................... 1,000,000(d) 1,062,660
General Obligation (MBIA), 4.75%, 6/1/03 ............ 1,460,000 1,456,380
-----------
2,519,040
-----------
FLORIDA (0.8%):
Broward County School District, Zero-Coupon (MBIA),
6.55%, 2/15/08 1,000,000(b) 673,580
-----------
HAWAII (1.5%):
State General Obligation (FGIC), 4.80%, 3/1/03 ...... 1,250,000 1,251,162
-----------
ILLINOIS (18.7%):
Chicago Wastewater Revenue (FGIC) (Prerefunded to
1/1/03 at 102), 6.35%, 1/1/22 ..................... 1,000,000(d) 1,054,880
Greenville Illinois Educational Facility Revenue,
4.65%, 6/1/03 ..................................... 320,000 309,923
Health Facility-Alexian Brothers Medical Center
(MBIA) (Prerefunded to 1/1/02 at 102),
6.38%, 1/1/15 ..................................... 1,125,000(d) 1,173,352
Health Facility-Elmhurst Memorial Hospital (FGIC)
(Callable 1/1/02 at 102), 6.50%, 1/1/12 ........... 1,190,000 1,237,457
Health Facility-Highland Park Hospital (FGIC),
5.40%, 10/1/03 .................................... 1,000,000 1,015,390
Health Facility-Lutheran General Systems (FSA)
(escrowed to maturity) (Callable 4/1/03 at 102),
6.13%, 4/1/12 ..................................... 1,000,000 1,060,370
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 32 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- -----------
<S> <C> <C>
Henry Hospital District (AMBAC) (Prerefunded to
12/1/02 at 100), 6.60%, 12/1/17 ................... $2,000,000(d) $ 2,090,040
Higher Education Facility-Augustana College (Connie
Lee), 5.00%, 10/1/03 .............................. 330,000 331,548
Lake County Housing and Finance Corporation (FHA)
(Callable 11/1/02 at 100), 6.70%, 11/1/14 ......... 2,000,000 2,033,800
Rochelle Water and Sewer Revenue (Prerefunded to
5/1/02 at 102), 7.15%, 5/1/14 ..................... 2,000,000(d) 2,119,240
State General Obligation (Callable 10/1/02 at 102),
6.25%, 10/1/12 .................................... 410,000 426,355
State General Obligation (Prerefunded to 10/1/02 at
102), 6.25%, 10/1/12 .............................. 2,690,000(d) 2,829,315
-----------
15,681,670
-----------
INDIANA (14.9%):
Crawfordsville School Building Corporation (Callable
1/1/03 at 102), 6.25%, 7/1/11 ..................... 500,000 522,285
Freemont Middle School Building (AMBAC) (Prerefunded
to 3/15/02 at 101), 6.75%, 3/15/13 ................ 3,000,000(d) 3,129,780
Health Facilities-Community Hospital Project (MBIA)
(Callable 5/1/02 at 102), 6.40%, 5/1/12 ........... 5,000,000 5,192,550
Health Facilities-Methodist Hospital (AMBAC)
(escrowed to maturity) (Callable 9/1/02 at 102),
5.75%, 9/1/15 ..................................... 1,000,000 1,028,530
Indiana Health Facility, 5.00%, 5/15/03 ............. 380,000 371,188
Lake County Redevelopment Authority (MBIA) (Callable
2/1/05 at 102), 6.45%, 2/1/11 ..................... 1,600,000 1,707,760
Patoka Lake Regional Water and Sewer District (AMBAC)
(Prerefunded to 1/1/04 at 101), 6.45%, 1/1/15 ..... 500,000(d) 530,710
-----------
12,482,803
-----------
IOWA (1.5%):
Cedar Rapids Hospital Facilities (FGIC) (Prerefunded
to 8/15/03 at 102), 6.13%, 8/15/13 ................ 1,200,000(d) 1,265,532
-----------
KANSAS (2.1%):
Kansas City Utility Systems, Zero-Coupon (AMBAC),
6.40%, 3/1/08 ..................................... 1,060,000(b) 711,292
Kansas City Utility Systems, Zero-Coupon (AMBAC)
(escrowed to maturity), 6.40%, 3/1/08 ............. 1,515,000(b) 1,016,610
-----------
1,727,902
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 33 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
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 $ 2,098,320
-----------
NEVADA (1.2%):
Clark County School District (FGIC),
5.75%, 6/15/03 .................................... 1,000,000 1,027,270
-----------
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 1,031,550
-----------
NEW YORK (2.1%):
State General Obligation, 5.20%, 8/1/03 ............. 1,735,000 1,754,605
-----------
NORTH DAKOTA (3.7%):
Mercer County Pollution Control Revenue (AMBAC),
7.20%, 6/30/13 .................................... 2,700,000 3,134,376
-----------
OKLAHOMA (1.0%):
Tulsa County Oklahoma Independent School
District No. 5, 5.00%, 7/1/03 ..................... 850,000 852,813
-----------
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 1,262,076
-----------
SOUTH CAROLINA (1.6%):
Piedmont Municipal Power Agency (MBIA) (Prerefunded
to 1/1/03 at 102), 6.30%, 1/1/14 .................. 1,285,000(d) 1,354,647
-----------
SOUTH DAKOTA (3.0%):
State Building Authority (AMBAC) (Prerefunded to
9/1/02 at 102), 6.63%, 9/1/12 ..................... 115,000(d) 121,659
State Building Authority (AMBAC) (Prerefunded to
9/1/04 at 100), 6.63%, 9/1/12 ..................... 2,235,000(d) 2,361,546
-----------
2,483,205
-----------
TEXAS (22.1%):
Abilene Texas Health Facility Development,
4.90%, 11/15/03 ................................... 665,000 634,536
Austin Utility System Revenue, Zero-Coupon (MBIA),
6.53%, 11/15/08 5,000,000(b) 3,223,700
Houston Water and Sewer Revenue (FSA) (Callable
12/1/02 at 102), 6.38%, 12/1/14 ................... 1,700,000 1,770,397
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 34 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- -----------
<S> <C> <C>
Houston Water and Sewer Revenue (FSA) (Prerefunded to
12/1/02 at 102), 6.38%, 12/1/14 ................... $ 200,000(d) $ 208,282
Montgomery County Hospital District (FSA)
(Prerefunded to 4/1/02 at 102), 6.63%, 4/1/17 ..... 3,300,000(d) 3,467,937
Pflugerville Independent School District (Prerefunded
to 8/15/04 at 100), 5.75%, 8/15/15 ................ 975,000(d) 1,009,964
San Antonio Electric and Gas, Zero-Coupon (FGIC),
6.40%, 2/1/08 ..................................... 4,500,000(b) 3,026,025
San Antonio Texas Water Revenue (MBIA) (Callable
5/15/02 at 102)), 6.50%, 5/15/10 .................. 1,685,000 1,765,257
San Antonio Texas Water Revenue (MBIA) (escrowed to
maturity), 6.50%, 5/15/10 ......................... 440,000 477,761
San Antonio Texas Water Revenue (MBIA) (Prerefunded
to 5/15/02 at 102), 6.50%, 5/15/10 ................ 875,000(d) 919,905
State Capital Appreciation, Zero-Coupon (FGIC),
6.43%, 4/1/08 ..................................... 3,100,000(b) 2,066,491
-----------
18,570,255
-----------
WASHINGTON (7.7%):
Chelan County Public Utilities District (MBIA), AMT,
5.55%, 7/1/03 ..................................... 305,000(e) 309,962
Public Power Supply System (Prerefunded to 7/1/01 at
102), 6.50%, 7/1/18 ............................... 2,515,000(d) 2,614,166
Washington State Public Power Supply (Callable 7/1/02
at 102), 6.25%, 7/1/12 ............................ 770,000 796,912
Washington State Public Power Supply (Prerefunded to
7/1/02 at 102), 6.25%, 7/1/12 ..................... 2,600,000(d) 2,724,566
-----------
6,445,606
-----------
WEST VIRGINIA (3.2%):
Clarksburg Water Revenue (Asset Guaranty) (Callable
9/1/02 at 102), 6.25%, 9/1/14 ..................... 2,620,000 2,709,814
-----------
WISCONSIN (0.4%):
Amery Wisconsin Revenue, 4.90%, 6/1/03 .............. 300,000 292,971
-----------
Total Municipal Long-Term Securities
(cost: $77,985,422) ............................. 82,061,000
-----------
MUNICIPAL SHORT-TERM SECURITIES (0.6%):
NEW YORK (0.2%):
New York City, Series B, 4.75%, 10/1/21 ............. 200,000(c) 200,000
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
2000 Semiannual Report 35 American Municipal Term Trusts
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
AMERICAN MUNICIPAL TERM TRUST III
(CONTINUED)
<TABLE>
Principal Market
Description of Security Amount Value (a)
--------------------------------------------------------- ---------- -----------
<S> <C> <C>
TEXAS (0.2%):
Harris County, 4.75%, 10/1/17 ....................... $ 200,000(c) $ 200,000
-----------
WASHINGTON (0.1%):
Washington State Health Care Facilities Authority,
VRDN, 4.75%, 1/1/18 ............................... 100,000(c) 100,000
-----------
Total Municipal Short-Term Securities
(cost: $500,000) ................................ 500,000
-----------
RELATED PARTY MONEY MARKET FUND (0.2%):
First American Tax Free Obligations Fund
(cost: $164,738) .................................. 164,738(f) 164,738
-----------
Total Investments in Securities
(cost: $78,650,160) (g) ......................... $82,725,738
===========
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 IN
THE NOTES TO 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, 2000. 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, 2000, THE AGGREGATE MARKET
VALUE OF SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX IS $309,962,
WHICH REPRESENTS 0.4% OF NET ASSETS.
(f) THIS MONEY MARKET FUND IS ADVISED BY U.S. BANK WHO ALSO SERVES AS ADVISOR
FOR THIS FUND. SEE NOTE 2 IN THE NOTES TO FINANCIAL STATEMENTS.
(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 ...... $ 5,845,338
GROSS UNREALIZED DEPRECIATION ...... (1,769,760)
-----------
NET UNREALIZED APPRECIATION ...... $ 4,075,578
===========
</TABLE>
--------------------------------------------------------------------------------
2000 Semiannual Report 36 American Municipal Term Trusts
<PAGE>
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AMERICAN MUNICIPAL TERM TRUSTS
2000 SEMIANNUAL REPORT
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