<PAGE> 1
S E M I A N N U A L R E P O R T / S E P T E M B E R 3 0 1 9 9 9
A I M T A X - F R E E I N T E R M E D I A T E F U N D
PHOTO
[AIM LOGO APPEARS HERE]
<PAGE> 2
THE LIBRARY BY FELIX EDOUARD VALLOTTON
PHOTO (1865-1925, SWISS)
VALLOTTON'S WIDELY DIVERSIFIED WORK COMPRISES MORE THAN 200
ENGRAVINGS, INNUMERABLE DRAWINGS, SOME 1,700 PAINTINGS, A FEW
SCULPTURES, AS WELL AS A COLLECTION OF WRITINGS. HIS QUIET
PAINTING OF THE LIBRARY REFLECTS THE ORDER, DIVERSITY AND
PATIENCE OF LONG-TERM INVESTING.
AIM Tax-Free Intermediate Fund is for shareholders who seek a high level of
income exempt from federal taxes. The fund purchases high-quality municipal
bonds maturing in 10-1/2 years or less.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Tax-Free Intermediate Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
o When sales charges are included in performance figures, those figures
reflect the maximum 1.00% sales charge.
o The 30-day yield is calculated on the basis of a formula defined by the SEC.
The formula is based on the portfolio's potential earnings from dividends,
interest, yield-to-maturity or yield-to-call of the bonds in the portfolio,
net of all expenses and expressed on an annualized basis.
o The taxable-equivalent yield is calculated in the same manner as the 30-day
yield with an adjustment for a stated, assumed tax rate.
o The fund's annualized distribution rate reflects the fund's most recent
monthly dividend distribution multiplied by 12 and divided by the most
recent month-end net asset value.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Lehman Municipal Bond Index is an unmanaged composite representing an
approximation of the performance of investment-grade municipal bonds. It is
compiled by Lehman Brothers, a well-known global investment bank.
o Lipper, Inc. is an independent mutual fund performance monitor.
o Government securities, such as U.S. Treasury bills, notes and bonds, offer a
high degree of safety and are guaranteed as to the timely payment of
principal and interest if held to maturity. Fund shares are not insured, and
their value and yield will vary with market conditions.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the fund.
AVERAGE ANNUAL TOTAL RETURNS
As of 9/30/99, including sales charges
10 Years 6.13%
5 Years 5.02
1 Year 0.02*
*1.00%, excluding sales charges
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
A I M T A X - F R E E I N T E R M E D I A T E F U N D
<PAGE> 3
S E M I A N N U A L R E P O R T / C H A I R M A N ' S L E T T E R
Dear Fellow Shareholder:
With only a short time remaining in 1999, the question on
[PHOTO OF Many of your minds may be, "How will the year 2000 computer issue
Charles T. affect AIM and my investments?" We would like you to feel
Bauer, comfortable. We are pleased to be able to report to you that as
Chairman of of June 1999 we achieved a major milestone toward year 2000
the Board of compliance status: we have successfully completed the testing of
THE FUND all of our mission-critical systems.
APPEARS HERE] Earlier this year, AIM participated in an industrywide test
that gave us a chance to see how our technology systems might be
affected by the changeover to the year 2000 (Y2K). Everything
went as well as we had hoped; in general, the industry sailed
through the testing process with flying colors. The financial
industry has been seen as a leader in planning for year 2000
concerns. Thus, it was no surprise to most participants that the
test was an overwhelming success.
The general purpose of the process was to test electronic
interfaces among financial industry members in the United States and to follow
transactions through a typical trading cycle--from order entry to the settlement
process. Investment banks, broker-dealers, custodian banks and mutual fund
companies all worked together to make this possible. Approximately 400 firms
were involved in the testing; AIM was one of 70 asset managers.
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing the
year 2000 issue for several years. Now that we have finished adjusting our
applications and systems, our focus for the rest of 1999 is to continue
monitoring the year 2000 readiness status of outside sources we're linked to
electronically. On the investment side, our portfolio management staff is
continually evaluating the Y2K preparedness of the domestic and foreign
companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if necessary. Our
plans will give AIM employees guidelines to follow for a wide variety of
situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance over
the reporting period. If you have any questions or comments, please contact our
Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
automated AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
A I M Advisors, Inc.
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
A I M T A X - F R E E I N T E R M E D I A T E F U N D
<PAGE> 4
S E M I A N N U A L R E P O R T / M A N A G E R S ' O V E R V I E W
FUND FINDS OPPORTUNITIES IN MARKET DOWNTURN
HOW DID AIM TAX-FREE INTERMEDIATE FUND PERFORM DURING THE REPORTING PERIOD?
In the midst of the second-worst bond market on record, and the worst since
1994, AIM Tax-Free Intermediate Fund finished the reporting period in slightly
negative territory. For the six-month period ended September 30, 1999, AIM
Tax-Free Intermediate Fund returned -0.58% at net asset value, that is, without
sales charges. Fund performance, although disappointing, was better than the
municipal market's overall performance and compared favorably against its peers.
The Lehman Municipal Bond Index sank 2.16% for the same period, while the
average intermediate-term municipal bond fund tracked by Lipper, Inc. posted a
1.75% loss.
The fund's net asset value per share moved within a relatively narrow range of
$10.79 to $11.15 during the reporting period, continuing the fund's history of
relative price stability. Despite the market turbulence in 1999, your fund
continued to provide solid current income (see the chart below), exempt from
federal taxes. AIM Tax-Free Intermediate Fund continued to attract investor
interest in the volatile market environment. Net assets under management grew by
more than 57% during the last six months, for a total of $384 million at the
reporting period's close.
WHAT WERE THE MAJOR TRENDS IN FIXED-INCOME MARKETS DURING THE REPORTING PERIOD?
It has been a challenging year for fixed-income securities. We are in the
middle of a bear market that started in the fall of 1998. Tighter Federal
Reserve Board (Fed) monetary policy, Y2K concerns and a weak U.S. dollar
contributed to the downward pressure on bond prices in 1999. Bond markets
struggled early in the reporting period as investors anticipated that the Fed
might increase interest rates to slow the booming U.S. economy and fight the
threat of inflation.
U.S. Treasury bond yields rose steadily through early 1999, while municipal
bond yields held fast. However, beginning in April, municipal bond yields
started to increase dramatically. At the same time, while the supply of
municipal bonds was light during the period -- particularly compared to 1998's
near-record levels of issuance -- the demand was similarly muted.
Spurred by two interest-rate hikes in the second quarter, most market interest
rates also began to climb. Bond prices move in the opposite direction of market
interest rates, and this year's move has dramatically affected most sectors of
the bond markets.
However, rates on the benchmark 30-year Treasury bond began to buck this trend
by inching down slightly toward the end of the third quarter. Some analysts
believe this could be an early sign that investors, fearing increased stock
market volatility and financial market disruptions caused by Y2K, may already be
taking flight to safety. Typically, bonds get a second look when stocks falter,
because investors believe they can earn competitive returns and because bonds
generally are better than stocks at reducing downside risk.
GIVEN CURRENT ECONOMIC CONDITIONS, HOW HAVE YOU MANAGED THE PORTFOLIO?
We have been making several changes to the fund's portfolio to take advantage
of the market downturn. Many of the bonds that we bought 12 to 18 months ago
have incurred some losses as interest rates have
FUND PROVIDES SOLID INCOME
AS OF 9/30/99
[BAR CHART]
30-day Distribution Rate at NAV 4.55%
Taxable Equivalent Distribution Rate* 7.53%
30-Day SEC Yield at Maximum Offering Price 4.14%
Taxable Equivalent 30-Day SEC Yield* 6.84%
30-Year U.S. Treasury Bond Yield 6.05%
*Assumes highest marginal federal tax rate of 39.6%.
HISTORY OF NET ASSET
VALUE STABILITY
5/11/87-9/30/99
10 5/11/87 10.07 3/91 10.67 3/95
9.93 6/87 10.07 6/91 10.76 6/95
9.59 9/87 10.2 9/91 10.84 9/95
9.79 12/87 10.33 12/91 10.92 12/95
9.89 3/88 10.27 3/92 10.79 3/96
9.82 6/88 10.43 6/92 10.72 6/96
9.86 9/88 10.55 9/92 10.74 9/96
9.81 12/88 10.58 12/92 10.8 12/96
9.69 3/89 10.74 3/93 10.73 3/97
9.94 6/89 10.87 6/93 10.86 6/97
9.77 9/89 11.03 9/93 10.97 9/97
9.99 12/89 11.02 12/93 11.06 12/97
9.89 3/90 10.62 3/94 11.05 3/98
9.93 6/90 10.61 6/94
9.88 9/90 10.56 9/94
10.01 12/90 10.38 12/94
NET ASSETS GREW BY 57%
[BAR CHART]
3/31/99 $244 million
9/30/99 $384 million
Source: Towers Data Systems HYPO--Registered Trademark--. There is no guarantee
the fund will maintain a constant NAV. Investment return will vary, so you may
have a gain or a loss when you sell shares. Past performance cannot guarantee
comparable future results.
See important fund and index disclosures inside front cover.
A I M T A X - F R E E I N T E R M E D I A T E F U N D
2
<PAGE> 5
S E M I A N N U A L R E P O R T / M A N A G E R S ' O V E R V I E W
PORTFOLIO COMPOSITION
As of 9/30/99, based on total net assets
TOP FIVE BOND HOLDINGS
COUPON MATURITY % OF PORTFOLIO
1. San Antonio Texas Electric & Gas 5.25% 02/01/10 2.23%
2. New Hampshire Municipal Bond 5.25% 08/15/09 1.45%
3. Louisiana (State of) 6.00% 04/15/07 1.39%
4. Hawaii (State of) 6.00% 03/01/07 1.39%
5. New York (City of) 5.60% 11/01/05 1.36%
AVERAGE QUALITY RATING AA+ PORTFOLIO CREDIT QUALITY
NUMBER OF HOLDINGS 271 [PIE CHART]
AVERAGE MATURITY 6.75 years AAA 70%
DURATION 5.24 years AA 21%
A 9%
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
risen. We decided to realize these losses, knowing we can use them in the future
to offset realized capital gains. Since the fund is managed for tax-free income
and not total return, we try to avoid any distribution that would result in a
taxable event for our shareholders. At the same time, proceeds from the sales
can be reinvested in bonds with significantly higher yields.
Cash flow into the fund has been strong during the reporting period.
This also gave us an opportunity to lock in higher-yielding bonds at attractive
prices. As a result, the average maturity of the fund's holdings has increased
slightly from six months ago. As of September 30, the average maturity was 6.75
years, up from 4.5 years on March 31. The number of holdings in the fund's
portfolio also increased from 197 six months ago to 271 at the end of the
reporting period.
WHERE ELSE DID YOU FIND OPPORTUNITIES DURING THE REPORTING PERIOD?
We also found attractive opportunities in the yield spreads between
bond-quality sectors. The fund had been heavily invested in AAA bonds because
the yield spreads between bond-quality sectors had been very narrow. However,
during the last six months they have widened to the point where there was
significant incentive to step down in quality to take advantage of the increased
yields. At the reporting period's close, the fund had increased its AA bond
holdings to 21% of total net assets, up from 12% six months ago. Despite this
change, the fund continued to focus on high-quality debt issues. The average
credit quality in the fund's portfolio remained AA+.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
Although there seems to be a great deal of fear in the fixed-income
markets presently, we believe this market environment provides a good buying
opportunity. Interest rates have risen to attractive levels and the ratio
between municipal bond yields and U.S. Treasury yields is very compelling. Even
after gaining some ground, municipal bonds remain relatively cheap alternatives
to U.S. Treasuries. We believe that current yields are likely to offer investors
good returns.
Shortly after the close of the fund's reporting period, Fed policy
makers opted to leave interest rates unchanged at their October 5 meeting but
signaled to financial markets that they are leaning toward raising rates in the
future if they spot any sign of faster inflation. If the Fed does raise rates
again, we believe that it may improve the outlook for the bond markets because
the move will indicate that the Fed is serious about heading off inflationary
pressures, which can erode the income potential of bonds.
DO YOU FORESEE ANY OTHER IMPROVEMENTS FOR FIXED-INCOME MARKETS?
Every ten seconds, a baby boomer in the United States turns 50. With about 80
million baby boomers 10 to 15 years away from retirement, we may begin to see a
subtle shift of assets to fixed-income investments as investors move toward
preservation of capital and away from growth-oriented vehicles. The financial
markets have been very good to investors in the last 20 years, so there's an
incentive to lock in gains. We believe that in the near future there may be a
renewed interest in fixed-income securities and in particular municipal bonds as
they remain the only tax-free vehicles for investors.
See important fund and index disclosures inside front cover.
A I M T A X - F R E E I N T E R M E D I A T E F U N D
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ALABAMA-3.08%
Alabama State Municipal
Electric Authority;
Power Supply Series 1991
A RB
6.30%, 09/01/01(b) AAA Aaa $ 400 $ 415,508
- -------------------------------------------------------------------
Birmingham (City of);
Limited Tax Series 1999 B
GO
5.125%, 06/01/08 AA Aa3 2,660 2,692,266
- -------------------------------------------------------------------
5.125%, 06/01/09 AA Aa3 3,355 3,376,371
- -------------------------------------------------------------------
Birmingham (City of)
Special Care Facilities
Financing Authority
(Charity Obligation
Group);
Hospital Series 1997 D RB
4.95%, 11/01/07(c) AA+ Aa2 970 962,968
- -------------------------------------------------------------------
Lauderdale & Florence
(County of) Health Care
Authority (Coffee Health
Group Project);
Unlimited Tax Series 1999
A GO
5.00%, 07/01/07(b) AAA Aaa 2,450 2,460,731
- -------------------------------------------------------------------
McIntosh Alabama Industrial
Development Board;
Environmental Improvement
Series 1998 B RB
4.65%, 06/01/08 AA- A2 2,000 1,926,680
- -------------------------------------------------------------------
11,834,524
- -------------------------------------------------------------------
ALASKA-1.30%
Alaska State Housing
Financing Corp.; Series
1991 A-1 RB
4.90%, 12/01/07(b) AAA Aaa 800 793,064
- -------------------------------------------------------------------
Anchorage (City of);
Unlimited Tax Series 1994
GO
5.50%, 07/01/06(b) AAA Aaa 1,950 2,031,061
- -------------------------------------------------------------------
Fairbanks North Star
Borough;
Unlimited Tax School
Series 1999 B GO
5.125%, 04/01/09(b) AAA Aaa 1,160 1,164,756
- -------------------------------------------------------------------
Matanuska-Susitna Borough;
Unlimited Tax Series 1999
A GO
5.00%, 03/01/09(b) AAA Aaa 1,000 994,770
- -------------------------------------------------------------------
4,983,651
- -------------------------------------------------------------------
ARIZONA-3.06%
Graham County Unified
School District #1
(Safford Project of
1997);
Unlimited Tax Series 1999
B GO
4.40%, 07/01/07(b) -- Aaa 400 389,228
- -------------------------------------------------------------------
Maricopa County Unified
School District #4 (Mesa
Project of 1995);
Unlimited Tax Series 1998
E GO
5.00%, 07/01/09(b) AAA Aaa 1,900 1,896,960
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ARIZONA-(CONTINUED)
Maricopa County Unified
School District #41
(Gilbert Project of
1988);
Unlimited Tax Series 1992
E GO
6.20%, 07/01/02(d) AAA Aaa $1,250 $ 1,312,963
- -------------------------------------------------------------------
Maricopa County Unified
High School District #210
(Phoenix Project of
1995);
Unlimited Tax Series 1998
C GO
4.00%, 07/01/00 AA Aa3 2,500 2,504,950
- -------------------------------------------------------------------
Mohave County Unified
School District #1 (Lake
Havasu);
Unlimited Tax Series 1996
A GO 5.40%, 07/01/06(b) AAA Aaa 200 207,758
- -------------------------------------------------------------------
Navajo County Unified
School District
(Herber-Overgaard);
Unlimited Tax Series 1997
A GO
5.00%, 07/01/07(b) AAA Aaa 450 455,148
- -------------------------------------------------------------------
Nogales Municipal
Development Authority;
Series 1999 RB
4.20%, 06/01/08(b) -- Aaa 710 677,169
- -------------------------------------------------------------------
4.30%, 06/01/09(b) -- Aaa 530 503,781
- -------------------------------------------------------------------
Phoenix (City of) Senior
Lien Street and Highway
User;
Refunding Series 1992 RB
6.20%, 07/01/02 AA A1 1,000 1,046,410
- -------------------------------------------------------------------
PIMA County Unified School
District #10
(Amphitheater Project of
1994);
Unlimited Tax Series 1997
C GO
5.00%, 07/01/09(b) AAA Aaa 1,010 1,008,384
- -------------------------------------------------------------------
Yuma County School District
#13 (Crane Elementary);
Refunding Unlimited Tax
Series 1998 GO
5.25%, 07/01/01(b) -- Aaa 675 688,763
- -------------------------------------------------------------------
Yuma Industrial Development
Authority (Yuma Regional
Medical Center Project);
Refunding Hospital Series
1997 RB
5.70%, 08/01/06(b) AAA Aaa 1,000 1,057,120
- -------------------------------------------------------------------
11,748,634
- -------------------------------------------------------------------
ARKANSAS-1.92%
Arkansas State Development
Financial Authority;
Correction Facility
Series 1996 RB
6.25%, 10/01/06(b) AAA Aaa 1,800 1,964,556
- -------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ARKANSAS-(CONTINUED)
Conway (City of);
Sales and Use Tax Capital
Improvement Series 1997 A
RB
4.80%, 12/01/07(b) AAA Aaa $ 825 $ 821,098
- -------------------------------------------------------------------
Fort Smith Water and Sewer;
Series 1999 RB
5.00%, 10/01/08(b) AAA A- 1,000 1,005,030
- -------------------------------------------------------------------
Little Rock (City of)
Health Facility Board
(Baptist Medical Center);
Refunding Hospital Series
1991 RB
6.70%, 11/01/04(b) AAA Aaa 1,400 1,519,742
- -------------------------------------------------------------------
North Little Rock (City
of);
Refunding Electric Series
1992 A RB
6.00%, 07/01/01(b) AAA Aaa 500 515,580
- -------------------------------------------------------------------
Sebastian (County of)
(Arkansas Community Jr.
College District);
Refunding and Improvement
Limited Tax Series 1997
GO
5.10%, 04/01/06(b) -- Aaa 500 511,915
- -------------------------------------------------------------------
5.20%, 04/01/07(b) -- Aaa 1,000 1,026,810
- -------------------------------------------------------------------
7,364,731
- -------------------------------------------------------------------
CALIFORNIA-1.56%
California Health Care
Facilities Financing
Authority (Casa De Las
Campanas);
Refunding Series A RB
4.875%, 08/01/08 A+ -- 700 697,718
- -------------------------------------------------------------------
California Intercommunity
Hospital Financing
Authority (NorthBay
Healthcare System);
Series 1998 COP
4.60%, 11/01/08(b) A -- 1,210 1,164,746
- -------------------------------------------------------------------
California State Public
Works Board Department of
Corrections (Madera
County State Prison);
Lease Series 1990 A RB
7.00%, 09/01/00 A+ A1 100 103,070
- -------------------------------------------------------------------
Folsom (City of) (School
Facilities Project);
Unlimited Tax Series 1994
B GO
6.00%, 08/01/02(b) AAA Aaa 500 527,500
- -------------------------------------------------------------------
Inglewood (City of) (Daniel
Freeman Hospital Inc.);
Insured Hospital Series
1991 RB
6.50%, 05/01/01(d) NRR NRR 400 415,512
- -------------------------------------------------------------------
Orange (County of);
Refunding Recovery Series
1995 A RB
5.50%, 06/01/06(b) AAA Aaa 1,000 1,056,900
- -------------------------------------------------------------------
San Francisco (City and
County of) Parking
Authority;
Parking Meter Series 1994
RB
6.75%, 06/01/05(b) AAA Aaa 500 556,905
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
CALIFORNIA-(CONTINUED)
South San Francisco Capital
Improvements Financing
Authority;
Redevelopment Series 1999
A RB
4.30%, 09/01/08(b) A -- $1,255 $ 1,199,391
- -------------------------------------------------------------------
West End Water Treatment
and Conservation Joint
Powers Authority;
Water Facilities Series
1990 COP
7.00%, 10/01/00(d) NRR NRR 250 258,060
- -------------------------------------------------------------------
5,979,802
- -------------------------------------------------------------------
COLORADO-1.69%
Boulder (County of);
Open Space Capital
Improvement Trust Fund
Series 1998 RB
5.25%, 12/15/09 AA- -- 3,000 3,053,160
- -------------------------------------------------------------------
Denver (City & County of)
Excise Tax;
Refunding Series 1999 A
RB
5.25%, 09/01/09(b) AAA Aaa 1,110 1,128,814
- -------------------------------------------------------------------
Eagle (County of);
Series 1999 COP
4.80%, 12/01/07(b) AAA Aaa 665 661,854
- -------------------------------------------------------------------
Highlands Ranch
Metropolitan District #3;
Refunding Unlimited Tax
Series 1998 B GO
4.50%, 12/01/04(b) A -- 1,175 1,163,227
- -------------------------------------------------------------------
4.80%, 12/01/08(b) A A 500 486,255
- -------------------------------------------------------------------
6,493,310
- -------------------------------------------------------------------
CONNECTICUT-3.75%
Connecticut (State of)
Development Authority
(Independent Living
Project); Health Care
Variable Rate Demand
Series 1990 RB
(LOC-Chase Manhattan
Bank)
3.65%, 07/01/15(e) -- VMIG1 2,361 2,361,000
- -------------------------------------------------------------------
Connecticut (State of)
Health and Educational
Facilities Authority
(Yale University);
Series 1997 T-2 RB
3.70%, 07/01/29(e) A-1+ VMIG1 3,647 3,647,000
- -------------------------------------------------------------------
Connecticut (State of)
Residential Recovery
Authority (Bridgeport
Resco Co. LP Project);
Refunding Series 1999 RB
5.00%, 01/01/07(b) AAA Aaa 2,000 2,004,660
- -------------------------------------------------------------------
5.00%, 01/01/08(b) AAA Aaa 1,000 997,250
- -------------------------------------------------------------------
5.125%, 01/01/09(b) AAA Aaa 1,000 1,002,470
- -------------------------------------------------------------------
Connecticut (State of)
Residential Recovery
Authority;
Connecticut System Series
1999 A RB
5.50%, 11/15/03(b) AAA Aaa 2,000 2,077,240
- -------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
CONNECTICUT-(CONTINUED)
Connecticut (State of)
Special Tax Obligation (2nd
Lien Transportation
Infrastructure-1);
Variable Rate Demand Series
1990 RB
3.75%, 12/01/10(e) A-1+ VMIG1 $ 118 $ 118,000
- -------------------------------------------------------------------
New Haven (City of);
Unlimited Series 1997 GO
6.00%, 02/15/06(b) AAA Aaa 2,050 2,198,420
- -------------------------------------------------------------------
14,406,040
- -------------------------------------------------------------------
DELAWARE-0.99%
Delaware Transportation
Authority;
Senior Lien
Transportation System
Series 1991 RB
6.00%, 07/01/01(c)(d) AAA NRR 750 773,243
- -------------------------------------------------------------------
University of Delaware;
Variable Rate Demand
Series 1998 RB
3.75%, 11/23/23(e) A-1+ -- 3,019 3,019,000
- -------------------------------------------------------------------
3,792,243
- -------------------------------------------------------------------
DISTRICT OF COLUMBIA-4.54%
District of Columbia;
Refunding Unlimited Tax
GO
Series 1993 B-2,
5.50%, 06/01/07(b) AAA Aaa 3,000 3,101,940
- -------------------------------------------------------------------
Series 1993 B-1,
5.50%, 06/01/09(b) AAA Aaa 1,250 1,283,825
- -------------------------------------------------------------------
Series 1999 B,
5.50%, 06/01/09(b) AAA Aaa 5,000 5,135,300
- -------------------------------------------------------------------
District of Columbia;
Unlimited Tax Series 1992
B GO
6.125%, 06/01/02(c)(d) AAA Aaa 60 63,741
- -------------------------------------------------------------------
District of Columbia;
Unrefunded Unlimited Tax
Series 1992 B GO
6.125%, 06/01/03(b) AAA Aaa 2,960 3,116,170
- -------------------------------------------------------------------
District of Columbia
(American Association of
Advancement Science);
Series 1997 RB
5.00%, 01/01/05(b) AAA Aaa 800 807,640
- -------------------------------------------------------------------
District of Columbia
(Gonzaga College High
School);
Series 1999 RB
5.25%, 07/01/08(b) AAA Aaa 500 505,545
- -------------------------------------------------------------------
5.25%, 07/01/09(b) AAA Aaa 510 511,499
- -------------------------------------------------------------------
District of Columbia
(Howard University Issue
(The));
Series 1990 A RB
6.90%, 10/01/00(d) AAA NRR 200 205,922
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia
(Medlantic Healthcare
Group);
Hospital Refunding Series
A RB
Series 1993, 5.50%,
08/15/06(d) AAA Aaa $ 500 $ 520,815
- -------------------------------------------------------------------
Series 1996, 6.00%,
08/15/06(d) AAA Aaa 1,550 1,659,399
- -------------------------------------------------------------------
Series 1997, 6.00%,
08/15/07(d) AAA Aaa 500 536,165
- -------------------------------------------------------------------
17,447,961
- -------------------------------------------------------------------
FLORIDA-2.90%
Broward (County of)
Expressway Authority;
Refunding Unlimited Tax
Series 1986 A GO
6.50%, 07/01/04 AA+ Aa2 1,000 1,002,300
- -------------------------------------------------------------------
Jacksonville Health
Faculties Authority
(Charity Obligation
Group);
Hospital Series 1999 C RB
5.00%, 08/15/09 AA+ Aa2 1,275 1,244,872
- -------------------------------------------------------------------
Lee (County of) Housing
Financial Authority
(Forestwood Apartments
Project);
Multifamily Housing
Variable Rate Demand
Series 1995 A RB
3.20%, 06/15/25(e) A-1+ -- 1,762 1,762,000
- -------------------------------------------------------------------
Miami Beach (City of)
Health Facilities
Authority (South Shore
Hospital);
Series 1998 A RB
4.80%, 08/01/08 A -- 1,000 978,140
- -------------------------------------------------------------------
Orange (County of) Health
Facilities Authority
(South Central Nursing);
Mortgage Series 1999 A RB
5.00%, 07/01/09(b) AAA Aaa 1,830 1,831,263
- -------------------------------------------------------------------
Palm Beach (County of)
Solid Waste Authority;
Refunding Series 1997 A
RB
5.50%, 10/01/06(b) AAA Aaa 3,000 3,139,740
- -------------------------------------------------------------------
Walton (County of) School
Board;
Series 1999 COP
4.875%, 07/01/09(b) AAA Aaa 1,210 1,194,693
- -------------------------------------------------------------------
11,153,008
- -------------------------------------------------------------------
GEORGIA-2.26%
Albany (City of) Sewer
System;
Series 1992 RB
6.30%, 07/01/02(b)(d) AAA Aaa 500 525,800
- -------------------------------------------------------------------
Cobb-Marietta Coliseum and
Exhibit Hall Authority;
Series 1999 RB
5.00%, 10/01/09(b) AAA Aaa 250 248,640
- -------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
GEORGIA-(CONTINUED)
De Kalb (County of) Private
Hospital Authority
(Egleston Children's
Hospital);
Variable Rate Demand
Series 1994 A RAN
LOC-Suntrust Bank
3.65%, 03/01/24(e) A-1+ VMIG1 $2,132 $ 2,132,000
- -------------------------------------------------------------------
Fulton (County of) Water
and Sewer;
Refunding Series 1992 RB
5.75%, 01/01/02(b) AAA Aaa 715 736,850
- -------------------------------------------------------------------
Georgia State Municipal
Electric Authority;
Series 1991 V RB
6.00%, 01/01/01(b)(d) AAA Aaa 1,000 1,021,680
- -------------------------------------------------------------------
Georgia State Municipal
Electric Authority
(Project One);
Sub Series 1998 A RB
4.75%, 01/01/08(b) AAA Aaa 2,500 2,469,650
- -------------------------------------------------------------------
Metropolitan Atlanta Rapid
Transportation Authority;
Sales Tax Refunding
Series 1991 M RB
6.15%, 07/01/02 AA- A1 500 522,175
- -------------------------------------------------------------------
Savannah (City of) Hospital
Authority (St.
Joseph's/Candler Health
System);
Series 1998 A RB
5.25%, 07/01/08(b) -- Aaa 1,000 1,018,860
- -------------------------------------------------------------------
8,675,655
- -------------------------------------------------------------------
HAWAII-2.61%
Hawaii (State of);
Refunding Unlimited Tax
Series CO 1997 GO
6.00%, 03/01/07(b) AAA Aaa 5,000 5,344,300
- -------------------------------------------------------------------
Hawaii (State of);
Unlimited Tax Series CA
1993 GO
5.75%, 01/01/10(b) AAA Aaa 2,000 2,094,380
- -------------------------------------------------------------------
Hawaii (State of) (Kapolei
State Office Building);
Series 1998 A COP
4.50%, 05/01/09 AAA Aaa 2,725 2,588,396
- -------------------------------------------------------------------
10,027,076
- -------------------------------------------------------------------
ILLINOIS-6.03%
Chicago (City of);
Limited Tax Series 1997
GO
6.00%, 01/01/06(b) AAA Aaa 500 532,805
- -------------------------------------------------------------------
Chicago (City of) Public
Building Commission;
Unlimited Tax Series 1999
C GO
5.50%, 02/01/06(b) AAA Aaa 1,500 1,556,565
- -------------------------------------------------------------------
Hoffman Estates Illinois
Multifamily Housing (Park
Place Apartments
Project);
Refunding Series 1996 RB
5.75%, 06/01/06(c) AAA Aaa 1,400 1,444,953
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois Development
Financial Authority
(American College of
Surgeons);
Variable Rate Demand
Series 1996 RB
(LOC-Northern Trust Co.)
3.85%, 08/01/26(e) A-1+ -- $3,131 $ 3,131,002
- -------------------------------------------------------------------
Illinois Development
Financial Authority
(Citizens Utility Company
Project);
Variable Rate Demand
Series 1997 IDR
4.80%, 08/01/07(c)(e) A-1 -- 1,000 987,110
- -------------------------------------------------------------------
Illinois Educational
Facilities Authority
(Augustana College);
Series 1997 RB
4.80%, 10/01/99(b) AAA -- 375 375,000
- -------------------------------------------------------------------
Illinois Educational
Facilities Authority (MJH
Educational Assistance);
Series 1999 B RB
4.625%, 09/01/04(b)(c) AAA Aaa 350 347,186
- -------------------------------------------------------------------
Illinois Health Facilities
Authority (Alexian
Brothers Health System);
Series 1997 A RB
5.00%, 02/01/06(b) AAA Aaa 1,000 1,007,920
- -------------------------------------------------------------------
Illinois Health Facilities
Authority (Edward
Obligated Group);
Series 1997 A RB
4.90%, 02/15/08(b) AAA Aaa 835 829,297
- -------------------------------------------------------------------
Illinois Health Facilities
Authority (Highland Park
Hospital);
Series 1991 A RB
4.80%, 10/01/99(b) AAA Aaa 255 255,000
- -------------------------------------------------------------------
Series 1991 B RB
5.55%, 10/01/06(b) AAA Aaa 500 520,535
- -------------------------------------------------------------------
Illinois Health Facilities
Authority (Revolving Fund
Pooled);
Variable Rate Demand
Series 1985 D RB
(LOC-First National Bank)
3.80%, 08/01/15(e) A-1+ VMIG1 3,373 3,373,000
- -------------------------------------------------------------------
Illinois Regional
Transportation Authority;
Series 1994 B RB
6.30%, 06/01/04(c)(d) AAA Aaa 1,000 1,090,590
- -------------------------------------------------------------------
Illinois (State of);
Series 1999 COP
4.90%, 07/01/08(b) AAA Aaa 1,000 992,910
- -------------------------------------------------------------------
Illinois (State of);
Unlimited Tax Series 1999
GO
5.00%, 03/01/09 AA Aa2 4,550 4,536,305
- -------------------------------------------------------------------
Joliet (City of) Waterworks
and Sewer;
Series 1989 RB
6.95%, 01/01/01(b) AAA Aaa 250 258,378
- -------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Kane (County of) Public
Building Commission;
Public Building Series 1991
B RB
6.20%, 12/01/99(c)(d) NRR NRR $ 700 $ 702,618
- -------------------------------------------------------------------
McHenry (County of) School
District #47 (Crystal
Lake);
Unlimited Tax Series 1999
GO
5.125%, 02/01/10(b) -- Aaa 1,250 1,241,500
- -------------------------------------------------------------------
23,182,674
- -------------------------------------------------------------------
INDIANA-3.20%
Frankfort Middle School
Building Corp.;
Refunding First Mortgage
Series 1996 RB
5.20%, 01/10/07(b) AAA Aaa 295 300,331
- -------------------------------------------------------------------
Hamilton (County of);
Optional Income Tax
Revenue Series 1998 RB
5.00%, 07/10/08(b) AAA Aaa 1,095 1,096,456
- -------------------------------------------------------------------
Indiana Health Facilities
Financing Authority
(Charity Obligated
Group);
Variable Rate Demand
Series 1997 D RB
5.00%, 11/01/07(c)(e) AA+ VMIG1 2,470 2,436,062
- -------------------------------------------------------------------
Indiana Municipal Power
Agency (Power Supply
System);
Refunding Special
Obligation 1st-Crossover
Series 1998 B RB
4.80%, 01/01/09(b) AAA Aaa 2,000 1,956,080
- -------------------------------------------------------------------
Indiana Transportation
Finance Authority;
Airport Facilities Lease
Series 1992 A RB
6.00%, 11/01/01 A+ A1 500 516,860
- -------------------------------------------------------------------
Indiana Transportation
Finance Authority;
Highway Series 1993 A RB
5.50%, 06/01/07(b) AAA Aaa 1,000 1,037,850
- -------------------------------------------------------------------
Indianapolis (City of);
Local Public Improvement
Series 1999 D RB
5.00%, 01/01/08 AAA Aaa 1,100 1,107,304
- -------------------------------------------------------------------
5.10%, 01/01/09 AAA Aaa 425 429,335
- -------------------------------------------------------------------
5.20%, 01/01/10 AAA Aaa 1,400 1,409,828
- -------------------------------------------------------------------
Warren (City of)
Independent School
Building Corp;
Refunding First Mortgage
Series 1998 RB
4.30%, 01/05/01(b) AAA Aaa 500 500,935
- -------------------------------------------------------------------
4.50%, 01/05/03(b) AAA Aaa 1,500 1,503,060
- -------------------------------------------------------------------
12,294,101
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
IOWA-1.27%
Des Moines (City of);
Unlimited Tax Series 1999
A GO
4.80%, 06/01/08 AA+ Aa2 $ 775 $ 765,235
- -------------------------------------------------------------------
4.90%, 06/01/09 AA+ Aa2 810 797,713
- -------------------------------------------------------------------
Iowa Student Loan Liquidity
Corp.;
Student Loan Series 1992
A RB
6.25%, 03/01/00 -- Aa1 500 503,695
- -------------------------------------------------------------------
Muscatine (City of);
Refunding Electric Series
1986 RB
5.00%, 01/01/08 A A3 2,855 2,820,654
- -------------------------------------------------------------------
4,887,297
- -------------------------------------------------------------------
KANSAS-1.08%
Burlington (City of)
Environmental Improvement
(Kansas City Power and
Light Company Project);
Refunding Series 1998 D
RB
4.35%, 09/01/01(c) A- A2 1,250 1,243,412
- -------------------------------------------------------------------
4.50%, 09/01/03(c) A- A2 2,000 1,982,980
- -------------------------------------------------------------------
Sedgewick (County of)
Unified School District
#265;
Refunding and Improvement
Unlimited Tax Series 1999
GO
4.35%, 10/01/09(b) -- Aaa 1,000 944,110
- -------------------------------------------------------------------
4,170,502
- -------------------------------------------------------------------
KENTUCKY-0.80%
Carrollton and Henderson
Public Energy Authority;
Gas Series B 1998 RB
4.20%, 01/01/06(b) AAA Aaa 1,000 967,920
- -------------------------------------------------------------------
Kentucky Economic
Development Finance
Authority (Ashland
Hospital Corp.);
Refunding and Improvement
Medical Center Series
1998 RB
4.50%, 02/01/02(b) AAA Aaa 850 852,737
- -------------------------------------------------------------------
Kentucky State Property and
Buildings Commission
(Project #64);
Series 1999 RB
5.125%, 05/01/09(b) AAA Aaa 1,000 1,004,840
- -------------------------------------------------------------------
Kentucky State Turnpike
Authority (Economic
Development Road
Revitalization Projects);
Series 1990 RB
7.125%, 05/15/00(c)(d) AAA Aaa 260 269,100
- -------------------------------------------------------------------
3,094,597
- -------------------------------------------------------------------
LOUISIANA-3.46%
Jefferson Parish School
Board;
Sales and Use Tax Series
1995 RB
6.00%, 02/01/04(b) AAA Aaa 1,720 1,813,981
- -------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
LOUISIANA-(CONTINUED)
Louisiana (State of);
Unlimited Tax Series A GO
Refunding Series 1997,
5.25%, 08/01/03(b) AAA Aaa $2,000 $ 2,061,920
- -------------------------------------------------------------------
Series 1993, 6.00%,
04/15/07(b) AAA Aaa 5,000 5,358,950
- -------------------------------------------------------------------
Louisiana (State of)
Offshore Terminal
Authority (Loop, Inc.);
Refunding Deepwater Port
1st Stage Series 1992 RB
6.00%, 09/01/01 A A3 1,000 1,021,920
- -------------------------------------------------------------------
6.20%, 09/01/03 A A3 1,000 1,042,760
- -------------------------------------------------------------------
New Orleans (City of);
Refunding Certificates of
Indebtedness Series 1998
A GO
4.15%, 08/01/01(b) AAA Aaa 2,000 2,004,440
- -------------------------------------------------------------------
13,303,971
- -------------------------------------------------------------------
MAINE-0.73%
Maine Financial Authority;
Electric Refunding Rate
Stabilization Series 1998
A RB
4.50%, 07/01/08(b) AAA Aaa 1,830 1,775,814
- -------------------------------------------------------------------
Regional Waste System Inc.
(Solid Waste Resource
Recovery);
Series 1998 P RB
5.25%, 07/01/03 AA -- 1,000 1,026,510
- -------------------------------------------------------------------
2,802,324
- -------------------------------------------------------------------
MARYLAND-0.23%
Anne Arundel (County of);
Limited Tax Series 1999
GO
5.00%, 05/15/09 AA+ Aa2 880 883,951
- -------------------------------------------------------------------
MASSACHUSETTS-0.63%
Massachusetts (State of)
Consumer Loan;
Unlimited Tax Series 1999
C GO
5.250%, 09/01/08 AA- Aa3 1,000 1,020,620
- -------------------------------------------------------------------
Massachusetts (State of)
Health and Educational
Facilities Authority (Eye
and Ear Infirmary);
Series 1998 B RB
5.00%, 07/01/05 A -- 1,000 1,005,370
- -------------------------------------------------------------------
New England Education Loan
Marketing Corp;
Refunding Student Loan
Senior Issue 1992 D RB
6.20%, 09/01/00 -- Aaa 400 407,660
- -------------------------------------------------------------------
2,433,650
- -------------------------------------------------------------------
MICHIGAN-1.03%
Dearborn (City of) Economic
Development Corp.
(Oakwood Obligated
Group);
Hospital Series 1991 A RB
6.95%, 08/15/01(b)(c)(d) AAA Aaa 1,000 1,068,490
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
MICHIGAN-(CONTINUED)
Detroit (City of) School
District;
Unlimited Tax Series 1992
GO
5.60%, 05/01/01(b) AA+ Aa2 $ 765 $ 782,511
- -------------------------------------------------------------------
Michigan State Building
Authority;
Refunding Series 1991 I
RB
6.40%, 10/01/04 AA Aa2 2,000 2,111,660
- -------------------------------------------------------------------
3,962,661
- -------------------------------------------------------------------
MINNESOTA-0.20%
Southern Minnesota
Municipal Power Agency;
Unrefunded Power Supply
System Series 1992 A RB
5.60%, 01/01/04 A+ A2 745 771,597
- -------------------------------------------------------------------
MISSISSIPPI-1.39%
Gulfport (City of);
Refunding Unlimited Tax
Series 1998 GO
4.50%, 05/01/07(b) -- Aaa 515 503,037
- -------------------------------------------------------------------
4.55%, 05/01/08(b) -- Aaa 550 533,643
- -------------------------------------------------------------------
Mississippi (State of);
Lease Series 1999 A COP
4.25%, 10/15/00(b) AAA Aaa 4,280 4,299,174
- -------------------------------------------------------------------
5,335,854
- -------------------------------------------------------------------
MISSOURI-0.49%
Fort Osage Reorganization
School District #1
(Missouri School District
Direct Deposit Program);
Unlimited Tax Series 1997
GO
4.95%, 03/01/06 AA+ Aa1 405 411,196
- -------------------------------------------------------------------
Missouri (State of) Health
and Educational
Facilities Authority
(Freeman Health Systems
Project);
Hospital Series 1998 RB
4.85%, 02/15/07(b) A -- 1,000 972,210
- -------------------------------------------------------------------
5.00%, 02/15/08(b) A -- 515 502,604
- -------------------------------------------------------------------
1,886,010
- -------------------------------------------------------------------
MONTANA-0.11%
Montana (State of) Higher
Education Assistance
Corp.;
Student Loan Series 1992
A RB
6.60%, 12/01/00 -- A 420 429,076
- -------------------------------------------------------------------
NEVADA-1.84%
Clark (County of)
Improvement District #65
(Lamb Boulevard III);
Series 1992 Special
Assessment
6.20%, 12/01/02 AA- A1 120 123,900
- -------------------------------------------------------------------
Las Vegas (City of);
Limited Tax Park Series
1999 GO
5.00%, 08/01/09(b) AAA Aaa 3,000 2,974,560
- -------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEVADA-(CONTINUED)
Nevada (State of) Capital
Improvement and Cultural
Affairs;
Limited Tax Series 1999 A
GO
5.25%, 02/01/09 AA Aa2 $1,125 $ 1,142,314
- -------------------------------------------------------------------
5.00%, 02/01/10 AA Aa2 2,500 2,472,050
- -------------------------------------------------------------------
Nevada (State of) Municipal
Bond Bank Project #38-39;
Limited Tax Series 1992 A
GO
6.00%, 07/01/01(d) AA NRR 350 360,549
- -------------------------------------------------------------------
7,073,373
- -------------------------------------------------------------------
NEW HAMPSHIRE-1.45%
New Hampshire (State of)
Municipal Bond Bank;
Unlimited Tax Series 1999
B GO
5.25%, 08/15/09(b) AAA Aaa 5,465 5,591,351
- -------------------------------------------------------------------
NEW JERSEY-2.39%
Gloucester (County of)
Utilities Authority;
Refunding Sewer Series
1991 RB
6.10%, 01/01/00 AA- A1 225 226,127
- -------------------------------------------------------------------
Jersey City (City of);
Unlimited Tax School
Series 1992 GO
6.40%, 02/15/00 AA Aa2 1,000 1,009,430
- -------------------------------------------------------------------
New Jersey (State of)
Educational Facilities
Authority;
Higher Education
Facilities Trust Fund
Series 1995 A RB
5.125%, 09/01/09(b) AAA Aaa 2,000 2,019,960
- -------------------------------------------------------------------
Ocean City (City of);
Unlimited Tax Series 1998
GO
5.00%, 04/01/09(b) AAA Aaa 1,400 1,410,514
- -------------------------------------------------------------------
Passaic (County of)
Utilities Authority;
Solid Waste System Series
1999 A RB
4.70%, 03/01/07(b) AAA Aaa 1,970 1,960,189
- -------------------------------------------------------------------
4.80%, 03/01/08(b) AAA Aaa 2,040 2,028,760
- -------------------------------------------------------------------
Trenton (City of);
Unlimited Tax Series 1992
GO
6.10%, 08/15/02(b) AAA Aaa 500 526,295
- -------------------------------------------------------------------
9,181,275
- -------------------------------------------------------------------
NEW MEXICO-2.01%
Albuquerque (City of) Joint
Water and Sewer System;
Series 1990 A RB
6.00%, 07/01/00(c)(d) AAA NRR 1,000 1,016,400
- -------------------------------------------------------------------
Farmington (City of) (San
Juan Regional Medical
Center);
Hospital Series A RB
5.00% 06/01/01(b) -- Aaa 1,015 1,028,449
- -------------------------------------------------------------------
New Mexico (State of);
Severance Tax Series 1999
B RB
5.00% 07/01/06 AA Aa2 5,100 5,153,142
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEW MEXICO-(CONTINUED)
Santa Fe (City of);
Series 1994 RB
5.50% 06/01/03(d) AAA Aaa $ 500 $ 518,355
- -------------------------------------------------------------------
7,716,346
- -------------------------------------------------------------------
NEW YORK-7.82%
Long Island Power Authority
(Electric System);
Series 1998 A RB
5.25%, 12/01/02 A- Baa1 1,250 1,277,212
- -------------------------------------------------------------------
Nassau (County of);
Unlimited Tax General
Improvement Series 1997 V
GO
5.15%, 03/01/07(b) AAA Aaa 5,000 5,082,850
- -------------------------------------------------------------------
New York (City of);
Refunding Series 1996 D
GO 5.60%, 11/01/05 A- A3 5,000 5,216,350
- -------------------------------------------------------------------
New York (City of);
Unlimited Tax Series 1996
G GO
5.90%, 02/01/05 A- A3 1,150 1,210,363
- -------------------------------------------------------------------
New York (City of);
Unlimited Tax Series 1999
H GO
5.00%, 03/15/09 A- A3 1,830 1,806,924
- -------------------------------------------------------------------
New York (City of) Transit
Authority (Metropolitan
Transportation
Authority);
Triborough Series 1999 A
COP
5.00%, 01/01/08(b) AAA Aaa 1,000 1,005,290
- -------------------------------------------------------------------
New York (State of)
Dormitory Authority;
Mental Health Facilities
Series 1997 A RB
6.00%, 02/15/05 A- A3 1,000 1,057,510
- -------------------------------------------------------------------
6.00%, 08/15/07 A- A3 1,775 1,891,458
- -------------------------------------------------------------------
New York (State of)
Dormitory Authority (Pace
University Issue);
Series 1997 RB
6.00%, 07/01/07(b) AAA Aaa 1,275 1,371,110
- -------------------------------------------------------------------
New York (State of)
Dormitory Authority
(Upstate Community
Colleges);
Series 1999 A RB
4.375%, 07/01/09(b) AAA Aaa 1,000 948,510
- -------------------------------------------------------------------
New York (State of) Medical
Care Facilities (Hospital
and Nursing Home);
Financial Agency
Series 1995 A RB
5.60%, 02/15/05(b) AAA -- 1,105 1,118,669
- -------------------------------------------------------------------
New York (State of) Tollway
Authority;
General Series 1997 D RB
5.40%, 01/01/10 AA- Aa3 5,000 5,097,900
- -------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEW YORK-(CONTINUED)
Triborough Bridge and
Tunnel Authority;
General Purpose Series 1994
A RB
4.80%, 01/01/08 A+ Aa3 $3,000 $ 2,973,630
- -------------------------------------------------------------------
30,057,776
- -------------------------------------------------------------------
NORTH CAROLINA-2.04%
Coastal Regional Solid
Waste Management
Authority (Solid Waste
Disposal System);
Refunding Series 1999 RB
4.00%, 06/01/04(b) AAA Aaa 1,775 1,729,276
- -------------------------------------------------------------------
North Carolina Municipal
Power Agency #1 (Catawba
Electric);
Electrical Series RB
5.25%, 01/01/07(b) AAA Aaa 1,000 1,018,600
- -------------------------------------------------------------------
North Carolina (State of)
(Public Improvement);
Unlimited Tax Series 1999
A GO
5.25%, 03/01/10 AAA Aaa 5,000 5,096,150
- -------------------------------------------------------------------
7,844,026
- -------------------------------------------------------------------
NORTH DAKOTA-0.24%
Fargo (City of);
Refunding Water Series
1997 RB
5.50%, 01/01/08(b) AAA Aaa 905 937,028
- -------------------------------------------------------------------
OHIO-2.22%
Franklin (County of);
Limited Tax Series 1991
GO
6.30%, 12/01/01(c)(d) NRR NRR 1,500 1,592,235
- -------------------------------------------------------------------
Greene (County of) Water
System;
Series 1996 A RB
5.45%, 12/01/06(b) AAA Aaa 585 612,085
- -------------------------------------------------------------------
Hilliard (City of) School
District;
Refunding Unlimited Tax
Series 1992 GO
6.05%, 12/01/00(b) AAA Aaa 500 512,800
- -------------------------------------------------------------------
6.15%, 12/01/01(b) AAA Aaa 250 260,875
- -------------------------------------------------------------------
Lucas (County of) (St.
Vincent's Medical
Center);
Hospital Improvement
Series A 1990 RB
6.75%, 08/15/20(b) AAA Aaa 2,000 2,083,060
- -------------------------------------------------------------------
Ohio (State of) Highway
Capital Improvement;
Unlimited Tax Series 1999
D GO
4.50%, 05/01/08 AAA Aa1 2,000 1,948,580
- -------------------------------------------------------------------
Ohio (State of);
(Elementary & Secondary
Education Facilities);
Special Obligation Series
1997 A RB
5.10%, 12/01/05 AA- Aa2 1,500 1,534,065
- -------------------------------------------------------------------
8,543,700
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-1.28%
Mustang (City of)
Improvement Authority;
Utility Series 1999 RB
5.25%, 10/01/09(b) -- Aaa $1,130 $ 1,153,775
- -------------------------------------------------------------------
Norman (City of) Regional
Hospital Authority;
Refunding Series 1996 A
RB
5.20%, 09/01/06(b) AAA Aaa 310 318,854
- -------------------------------------------------------------------
5.30%, 09/01/07(b) AAA Aaa 1,090 1,124,727
- -------------------------------------------------------------------
Oklahoma (State of) Capitol
Improvement Authority;
State Facilities Series
1999 A RB
5.00%, 09/01/09(b) AAA Aaa 1,000 1,001,500
- -------------------------------------------------------------------
Oklahoma (State of) Housing
Finance Agency;
Single Family Mortgage
Series 1991 A RB
6.55%, 03/01/00(b) AAA Aaa 80 80,800
- -------------------------------------------------------------------
Southern Oklahoma Memorial
Hospital Authority;
Hospital Series 1993 A RB
5.60%, 02/01/00(d) NRR NRR 1,250 1,256,925
- -------------------------------------------------------------------
4,936,581
- -------------------------------------------------------------------
OREGON-1.22%
Cow Creek Band (Umpqua
Tribe of Indians);
Series 1998 B RB
4.25%, 07/01/03(b)(f)
(Acquired 08/18/98; Cost
$980,000) AAA Aaa 980 973,258
- -------------------------------------------------------------------
Grande Ronde (City of)
Community Confederated
Tribes (Governmental
Facilities and
Infrastructure);
Unlimited Tax Series 1997
GO
5.00%, 12/01/07(b) AAA Aaa 1,145 1,158,694
- -------------------------------------------------------------------
Portland (City of);
Sewer System Series 1994
A RB
5.45%, 06/01/03 A+ A1 1,065 1,101,955
- -------------------------------------------------------------------
5.55%, 06/01/04 A+ A1 500 520,945
- -------------------------------------------------------------------
Salem (City of) Hospital
Facilities Authority
(Salem Hospital);
Series 1998 RB
4.20%, 08/15/08 AA- -- 1,000 928,320
- -------------------------------------------------------------------
4,683,172
- -------------------------------------------------------------------
PENNSYLVANIA-5.50%
Fayette (County of)
Hospital Authority (Union
Town Hospital);
Refunding Series 1996 RB
4.85%, 06/15/01(b) AAA -- 1,000 1,010,950
- -------------------------------------------------------------------
Lackawanna (County of);
Unlimited Tax Series 1999
A GO
4.40%, 01/01/09(b) AAA Aaa 510 485,005
- -------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA-(CONTINUED)
Lehigh (County of) General
Purpose Authority
(Kidspeace Obligation
Group);
Series 1998 RB
5.70%, 11/01/09(b) A -- $1,000 $ 1,004,510
- -------------------------------------------------------------------
Pennsylvania (State of)
Higher Educational
Facilities Authority;
Series 1999 RB
4.40%, 07/01/07(b) AAA Aaa 1,595 1,547,038
- -------------------------------------------------------------------
4.50%, 07/01/08(b) AAA Aaa 1,525 1,474,583
- -------------------------------------------------------------------
4.55%, 07/01/09(b) AAA Aaa 750 720,263
- -------------------------------------------------------------------
Pennsylvania (State of)
Higher Educational
Facilities Authority
(UPMC Health System);
Series A RB
5.00%, 08/01/09(b) AAA Aaa 4,000 3,963,000
- -------------------------------------------------------------------
Philadelphia (City of)
Hospitals and Higher
Education Facilities
Authority (St. Agnes
Medical Center);
Series 1996 A RB
5.00%, 07/01/05(b) AAA Aaa 865 865,571
- -------------------------------------------------------------------
Philadelphia (City of) Gas
Works;
Sixteenth Series 1999 RB
5.25%, 07/01/08(b) AAA Aaa 4,000 4,078,280
- -------------------------------------------------------------------
York (City of) General
Authority;
Variable Rate Demand
Pooled Financing Series
1996 RB
(LOC-First Union National
Bank)
3.85%, 09/01/26(e) A-1 -- 5,978 5,978,000
- -------------------------------------------------------------------
21,127,200
- -------------------------------------------------------------------
RHODE ISLAND-0.28%
Rhode Island (State of);
Refunding Unlimited Tax
Series 1992 GO
6.10%, 06/15/03(b) AAA Aaa 1,000 1,058,360
- -------------------------------------------------------------------
SOUTH CAROLINA-2.60%
Charleston (County of)
(Care Alliance Health
Services);
Series 1999 A RB
4.40%, 08/15/08(b) AAA Aaa 3,000 2,886,810
- -------------------------------------------------------------------
Medical University of South
Carolina;
Hospital Facilities
Series 1999 RB
5.50%, 07/01/09 A A3 1,000 991,000
- -------------------------------------------------------------------
Piedmont (City of)
Municipal Power Agency;
Refunding Series 1996 B
RB
5.25%, 01/01/09(b) AAA Aaa 5,000 5,072,700
- -------------------------------------------------------------------
South Carolina (State of)
Public Service Authority;
Series 1999 A RB
5.25%, 01/01/10(b) AAA Aaa 1,000 1,030,710
- -------------------------------------------------------------------
9,981,220
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
SOUTH DAKOTA-0.52%
Rapid City (City of);
Sales Tax Series 1995 A
RB
5.60%, 06/01/05(b) AAA Aaa $ 255 $ 266,651
- -------------------------------------------------------------------
South Dakota Health and
Educational Facility
(McKennan Hospital);
Refunding Series 1996 RB
5.40%, 07/01/06(b) AAA Aaa 1,680 1,735,373
- -------------------------------------------------------------------
2,002,024
- -------------------------------------------------------------------
TENNESSEE-1.85%
Franklin Special School
District;
Limited Tax School Series
1999 GO
5.25%, 06/01/09 -- Aa2 1,160 1,181,912
- -------------------------------------------------------------------
Nashville and Davidson
(County of) Health and
Education Facilities
Board (Welch Bend
Apartments);
Multifamily Housing
Series 1996 A RB
5.50%, 01/01/07(c) AAA -- 2,700 2,749,896
- -------------------------------------------------------------------
Nashville and Davidson
(County of) Metropolitan
Government Health and
Educational Facilities
Board (Meharry Medical
College);
Series 1979 RB
7.875%, 12/01/04(d) NRR Aaa 845 913,876
- -------------------------------------------------------------------
Tennergy Corp.;
Gas Series 1999 RB
4.125%, 06/01/09(b) AAA Aaa 1,000 932,120
- -------------------------------------------------------------------
Tennessee Housing
Development Agency;
Mortgage Financing
Refunding Series 1993 A
RB
5.65%, 01/01/07 A+ A1 1,325 1,345,604
- -------------------------------------------------------------------
7,123,408
- -------------------------------------------------------------------
TEXAS-13.81%
Alamo Community College
District;
Limited Tax Series 1990
GO
6.90%, 02/15/00(c)(d) NRR AAA 500 505,600
- -------------------------------------------------------------------
Beaumont (City of)
Waterworks and Sewer
System;
Refunding Series 1998 RB
5.25%, 09/01/08(b) AAA Aaa 1,280 1,307,328
- -------------------------------------------------------------------
Beaumont (Port of)
Navigation Distribution;
Refunding and Improvement
Unlimited Tax Series 1999
A GO
5.00%, 03/01/09(b) AAA Aaa 1,000 999,210
- -------------------------------------------------------------------
Bexar (County of) Housing
Finance Authority
(Fountainhead Apts.);
Refunding Variable Rate
Demand Multifamily Series
RB
3.75%, 09/15/26(e) A-1+ -- 2,827 2,827,000
- -------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Canadian River Municipal
Water Authority (Bureau
of Reclamation Project);
Refunding Texas Contract
Series 1999 RB
4.35%, 10/01/09(b) AAA Aaa $ 615 $ 579,705
- -------------------------------------------------------------------
Canadian River Municipal
Water Authority
(Conjunctive Use
Groundwater);
Refunding Texas Contract
Series 1999 RB
5.00%, 02/15/09(b) -- Aaa 1,955 1,941,901
- -------------------------------------------------------------------
5.00%, 02/15/10(b) -- Aaa 2,655 2,625,264
- -------------------------------------------------------------------
Central Texas College
District;
Building Series 1999 RB
4.625%, 05/15/09(b) AAA Aaa 1,135 1,099,406
- -------------------------------------------------------------------
Cleburne (City of)
Waterworks and Sewer;
Series 1999 RB
5.50%, 02/15/10(b) AAA Aaa 1,395 1,421,086
- -------------------------------------------------------------------
Collin (County of);
Limited Tax Permanent
Improvement Series 1999
GO
5.25%, 02/15/08 AA Aa1 720 735,588
- -------------------------------------------------------------------
5.25%, 02/15/09 AA Aa1 755 767,797
- -------------------------------------------------------------------
Comal County Industrial
Development Authority
(Coleman Company, Inc.
Project);
Series 1980 IDR
9.25%, 08/01/00(d) NRR NRR 170 173,451
- -------------------------------------------------------------------
Conroe (City of)
Independent School
District;
Unlimited School Tax
Series 1991 GO
7.375%, 02/01/01(b) AAA Aaa 115 119,760
- -------------------------------------------------------------------
Gatesville Independent
School District;
Unlimited Tax School
Refunding and Building
Series 1995 GO
5.80%, 02/01/03(b) -- Aaa 485 506,044
- -------------------------------------------------------------------
Harris (County of) (Port of
Houston Authority);
Series 1977 RB
5.75%, 05/01/02 A A2 805 813,622
- -------------------------------------------------------------------
5.75%, 05/01/02(b) AAA Aaa 810 819,129
- -------------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Christus Health);
Series 1999 A RB
5.375%, 07/01/08 AAA Aaa 1,000 1,022,650
- -------------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Memorial Hospital
System Project);
Hospital Series 1992 RB
6.70%, 06/01/00(d) NRR NRR 1,000 1,018,730
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Harris County Health
Facilities Development
Corp. (School Health Care
System Project);
Series 1997 B RB
5.10%, 07/01/06(d) NRR NRR $1,000 $ 1,018,180
- -------------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Texas Children's
Hospital Project);
Series 1999 A RB
5.00%, 10/01/08 AA Aa2 1,565 1,536,141
- -------------------------------------------------------------------
5.00%, 10/01/09 AA Aa2 1,920 1,867,066
- -------------------------------------------------------------------
Keller (City of)
Independent School
District;
Series 1994 COP
5.75%, 08/15/01(b) AAA Aaa 915 941,407
- -------------------------------------------------------------------
Kerrville (City of);
Refunding Electric Series
1991 RB
6.375%, 11/01/01(b) AAA Aaa 185 193,236
- -------------------------------------------------------------------
Killeen (City of);
Refunding Limited Tax
Series 1999 GO
4.30%, 08/01/09(b) AAA Aaa 1,170 1,097,448
- -------------------------------------------------------------------
La Joya Independent School
District;
Unlimited Tax Series 1998
GO
5.375%, 02/15/10(b) AAA Aaa 1,535 1,562,292
- -------------------------------------------------------------------
La Marque Independent
School District;
Unlimited Tax Series 1992
GO
7.50%, 08/15/02(b) AAA Aaa 750 814,958
- -------------------------------------------------------------------
Lower Colorado River
Authority;
Sixth Supplement Jr. Lien
Series 1996 RB
5.00%, 01/01/09 NRR NRR 850 842,503
- -------------------------------------------------------------------
Lubbock (City of);
Series 1999 COP
5.00%, 02/15/10 AA Aa2 680 672,921
- -------------------------------------------------------------------
Lubbock Health Facility
Development Corp.
(Methodist Hospital);
Series 1993 B RB
5.40%, 12/01/05(d) AAA Aaa 500 520,385
- -------------------------------------------------------------------
Plano Independent School
District;
Unlimited Tax Series 1994
GO
5.80%, 02/15/05(b) AAA Aaa 2,025 2,118,272
- -------------------------------------------------------------------
San Antonio (City of);
Refunding and Improvement
Limited Tax Series 1996 A
GO
5.00%, 08/01/09 AA+ Aa2 3,925 3,918,681
- -------------------------------------------------------------------
San Antonio (City of)
Electric and Gas;
Refunding Series 1998 A
RB
5.25%, 02/01/10 AA Aa1 8,500 8,566,725
- -------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Tarrant (County of) Housing
Finance Corp. (Arbors On
the Park II);
Multifamily Housing Series
1990 RB
5.05%, 12/01/07 AAA -- $1,450 $ 1,430,860
- -------------------------------------------------------------------
Temple (City of);
Refunding Limited Tax
Series 1992 GO
5.80%, 02/01/01(b) AAA Aaa 250 255,335
- -------------------------------------------------------------------
Texas Municipal Power
Agency;
Series 1992 RB
5.75%, 09/01/02(c)(d) AAA Aaa 1,000 1,039,720
- -------------------------------------------------------------------
Texas (State of) Turnpike
Authority (Addison
Airport Toll Tunnel
Project);
Dallas North Tollway
Series 1994 RB
6.30%, 01/01/05(b) AAA Aaa 500 537,445
- -------------------------------------------------------------------
Texas (State of) Water
Development Board (State
Revolving Fund);
Sr. Lien Series 1999 A RB
5.50%, 07/01/09 AAA Aa1 1,000 1,032,750
- -------------------------------------------------------------------
University of Texas
(Financing System);
Series 1996 B RB
4.80%, 08/15/09 AAA Aa1 1,650 1,620,680
- -------------------------------------------------------------------
Series 1999 B RB
5.50%, 08/15/09 AAA Aa1 1,000 1,034,550
- -------------------------------------------------------------------
Weatherford (City of)
Utility System;
Refunding and Improvement
Series 1999 RB
4.35%, 09/01/09(b) AAA Aaa 1,275 1,202,249
- -------------------------------------------------------------------
53,107,075
- -------------------------------------------------------------------
UTAH-0.87%
Intermountain Power Agency
(Utah Power Supply);
Refunding Series 1997 B
RB
6.00%, 07/01/07(b) AAA Aaa 1,000 1,074,720
- -------------------------------------------------------------------
Utah (State of) Associated
Municipal Power System
(Hunter Project);
Refunding Series 1994 RB
5.00%, 07/01/09(b) AAA Aaa 1,500 1,487,340
- -------------------------------------------------------------------
Utah (State of) Housing
Finance Agency;
Single Family Mortgage
Series 1999 E-II RB
4.95%, 07/01/06 AAA Aaa 250 249,555
- -------------------------------------------------------------------
Utah (State of) (Board of
Water Resource Program);
Revolving Fund
Recapitalization Series
1992 B RB
6.10%, 04/01/02 AA -- 500 521,145
- -------------------------------------------------------------------
3,250 3,332,760
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
VIRGINIA-0.64%
Hampton Roads Medical
College;
Refunding General Series
1991 A RB
6.00%, 11/15/99 A- -- $ 605 $ 606,440
- -------------------------------------------------------------------
Norfolk (City of)
Redevelopment and Housing
Authority (Tidewater
Community College
Campus);
Educational Facility
Series 1995 RB
5.30%, 11/01/04 AA A2 535 553,463
- -------------------------------------------------------------------
5.40%, 11/01/05 AA A2 500 518,820
- -------------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Port Improvement Series
1992 GO
6.40%, 11/01/03 AA- A3 450 465,826
- -------------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Public Utility Series
1992 GO
5.90%, 11/01/01 AA- A3 300 317,415
- -------------------------------------------------------------------
2,461,964
- -------------------------------------------------------------------
WASHINGTON-2.57%
King (County of);
Sewer Series 1994 A RB
5.80%, 01/01/04(c)(d) NRR Aaa 1,000 1,063,750
- -------------------------------------------------------------------
Lewis (County of) Public
Utility District #1
(Cowlitz Falls
Hydroelectronics);
Refunding Series 1993 RB
5.375%, 10/01/08 AA- Aa1 1,000 1,022,830
- -------------------------------------------------------------------
Seattle (City of);
Refunding Limited Tax
Series GO
6.40%, 10/01/01(d) NRR NRR 250 260,485
- -------------------------------------------------------------------
Seattle (Port of);
Series 1992 A RB
6.00%, 11/01/01 AA- Aa3 500 517,365
- -------------------------------------------------------------------
Snohomish (County of)
Public Utilities District
#1;
Electric Generation
System Series 1993 RB
5.70%, 01/01/06(b) AAA Aaa 4,000 4,196,040
- -------------------------------------------------------------------
Washington (State of);
Refunding Unlimited Tax
Series 1999 R 2000A GO
5.25%, 01/01/07 AA+ Aa1 500 512,475
- -------------------------------------------------------------------
Washington (State of)
Health Care Facilities
Authority;
Providence Services
Series 1999 RB
5.50%, 12/01/09(b) AAA Aaa 2,275 2,325,642
- -------------------------------------------------------------------
9,898,587
- -------------------------------------------------------------------
WISCONSIN-1.98%
Oak Creek (City of);
Waterworks Systems Series
1998 BAN
3.90%, 09/01/00 -- MIG1 1,000 1,000,240
- -------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health
& Educational Facilities
Authority; (Benedictine
Health);
Health Care Series 1999 B
RB
5.00%, 02/15/09(b) AAA -- $1,185 $ 1,175,319
- -------------------------------------------------------------------
Wisconsin (State of) Health
& Educational Facilities
Authority (Charity
Obligation Group);
Hospital Series 1997 D RB
4.90%, 11/01/05(c) NRR NRR 2,190 2,177,429
- -------------------------------------------------------------------
Wisconsin (State of) Health
& Educational Facilities
Authority (Marshfield
Clinic);
Series 1997 RB
5.20%, 02/15/07(b) AAA Aaa 3,210 3,278,662
- -------------------------------------------------------------------
7,631,650
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
WYOMING-0.26%
Wyoming Building Corp.;
Series 1998 RB
4.25%, 10/01/01(b) AAA Aaa $1,000 $ 1,002,640
- -------------------------------------------------------------------
TOTAL INVESTMENTS-103.70%
(Cost $398,347,455) 398,636,416
- -------------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(3.70)% (14,222,339)
- -------------------------------------------------------------------
NET ASSETS-100.00% $384,414,077
===================================================================
</TABLE>
Investment Abbreviations:
BAN - Bond Anticipation Notes
COP - Certificates of Participation
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
LOC - Letter of Credit
NRR - Not Re-Rated
RB - Revenue Bonds
RAN - Revenue Anticipation Notes
Sr. - Senior
Notes to Schedule of Investments:
(a) Ratings assigned by Moody's Investors Service, Inc. ("MOODY'S") and Standard
& Poor's Corporation ("S&P"). NRR indicates a security that is not re-rated
subsequent to funding of an escrow fund (consisting of U.S. Treasury
obligations); this funding is pursuant to an advance refunding of the
security.
(b) Secured by bond insurance.
(c) Security has an outstanding irrevocable call or mandatory put by the issuer.
Market value and maturity date reflect such call or put.
(d) Secured by an escrow fund of U.S. Treasury obligations.
(e) Payable on demand by the Fund at specified frequencies no greater than
thirteen months. Interest rate is redetermined periodically. Rate shown is
the rate in effect on September 30, 1999.
(f) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of this security has been determined in
accordance with procedures established by the Board of Directors. The market
value of this security at 09/30/99 represented 0.25% of the Fund's net
assets.
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$398,347,455) $ 398,636,416
- ---------------------------------------------------------
Cash 452
- ---------------------------------------------------------
Receivables for:
Capital stock sold 2,513,805
- ---------------------------------------------------------
Interest 4,790,419
- ---------------------------------------------------------
Investment for deferred compensation plan 25,186
- ---------------------------------------------------------
Other assets 45,180
- ---------------------------------------------------------
Total assets 406,011,458
- ---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 14,218,059
- ---------------------------------------------------------
Capital stock reacquired 6,792,132
- ---------------------------------------------------------
Dividends 388,119
- ---------------------------------------------------------
Deferred compensation plan 25,186
- ---------------------------------------------------------
Accrued administrative services fees 6,269
- ---------------------------------------------------------
Accrued advisory fees 94,292
- ---------------------------------------------------------
Accrued directors' fees 2,000
- ---------------------------------------------------------
Accrued transfer agent fees 9,074
- ---------------------------------------------------------
Accrued operating expenses 62,250
- ---------------------------------------------------------
Total liabilities 21,597,381
- ---------------------------------------------------------
Net assets applicable to shares
outstanding $ 384,414,077
=========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER
SHARE:
Authorized 1,000,000,000
- ---------------------------------------------------------
Outstanding 35,544,044
=========================================================
Net asset value and redemption price per
share $ 10.82
=========================================================
Offering price per share:
(Net asset value of $10.82 divided
by 99.00%) $ 10.93
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $ 7,576,290
- --------------------------------------------------------
EXPENSES:
Advisory fees 485,026
- --------------------------------------------------------
Administrative services fees 24,949
- --------------------------------------------------------
Custodian fees 8,014
- --------------------------------------------------------
Transfer agent fees 40,019
- --------------------------------------------------------
Registration and filing fees 76,053
- --------------------------------------------------------
Directors' fees 4,277
- --------------------------------------------------------
Other 67,042
- --------------------------------------------------------
Total expenses 705,380
- --------------------------------------------------------
Less: Expenses paid indirectly (1,557)
- --------------------------------------------------------
Net expenses 703,823
- --------------------------------------------------------
Net investment income 6,872,467
- --------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES:
Net realized gain (loss) on sales of
investment securities (825,433)
- --------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of investment securities (7,716,427)
- --------------------------------------------------------
Net gain (loss) on investment
securities (8,541,860)
- --------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(1,669,393)
=========================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 1999 and the year ended March 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1999 1999
--------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 6,872,467 $ 9,178,235
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities (825,433) 409,752
- ---------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities (7,716,427) 966,924
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (1,669,393) 10,554,911
- ---------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (6,872,470) (9,191,201)
- ---------------------------------------------------------------------------------------------
Distributions in excess of net investment income (332,094) (47,638)
- ---------------------------------------------------------------------------------------------
Net increase from capital stock transactions 148,788,565 42,214,423
- ---------------------------------------------------------------------------------------------
Net increase in net assets 139,914,608 43,530,495
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 244,499,469 200,968,974
- ---------------------------------------------------------------------------------------------
End of period $384,414,077 $244,499,469
=============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $386,032,994 $237,244,429
- ---------------------------------------------------------------------------------------------
Undistributed net investment income (356,286) (24,189)
- ---------------------------------------------------------------------------------------------
Undistributed realized gain (loss) on sales of investment
securities (1,551,592) (726,159)
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 288,961 8,005,388
- ---------------------------------------------------------------------------------------------
$384,414,077 $244,499,469
=============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Exempt Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Company is organized as a Maryland corporation consisting of four separate
portfolios: AIM Tax-Free Intermediate Fund, AIM High Income Municipal Fund, AIM
Tax-Exempt Cash Fund and AIM Tax-Exempt Bond Fund of Connecticut. Matters
affecting each portfolio are voted on exclusively by the shareholders of such
portfolio. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to AIM Tax-Free Intermediate Fund (the "Fund"). The investment
objective of the Fund is to generate as high a level of tax-exempt income as is
consistent with preservation of capital by investing in high quality,
intermediate-term municipal securities having a maturity of ten and one-half
years or less.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
A. Security Valuations -- Portfolio securities are valued based on market
quotations or at fair value determined by a pricing service approved by the
Company's Board of Directors, provided that securities with a demand feature
exercisable within one to seven days are valued at par. Prices provided by
the pricing service represent valuations of the mean between current bid and
asked market prices which may be determined without exclusive reliance on
quoted prices and may reflect appropriate factors such as institution-size
trading in similar groups of securities, yield, quality, coupon rate,
maturity, type of issue, individual trading characteristics and other market
data. Portfolio securities for which prices are not provided by the pricing
service are valued at the mean between the last available bid and asked
prices, unless the Board of Directors or its designees determines that the
mean between the last available bid and asked prices does not accurately
reflect the current market value of the security. Securities for which market
quotations either are not readily available or are questionable are valued at
fair value as determined in good faith by or under the supervision of the
Company's officers in accordance with methods which are specifically
authorized by the Board of Directors. Notwithstanding the above, short-term
obligations with maturities of sixty days or less are valued at amortized
cost.
17
<PAGE> 20
B. Securities Transactions and Investment Income -- Securities transactions are
recorded on a trade date basis. Realized gains and losses are computed on the
basis of specific identification of the securities sold. Interest income,
adjusted for amortization of premiums and original issue discounts, is earned
from settlement date and is recorded on the accrual basis.
C. Dividends and Distributions to Shareholders -- It is the policy of the Fund
to declare daily dividends from net investment income. Such dividends are
paid monthly. Net realized capital gains (including net short-term capital
gains and market discounts), if any, are distributed annually.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward (which may be carried forward to offset future taxable capital
gains, if any) of $717,161, which expires, if not previously utilized, in the
year 2006. The Fund cannot distribute capital gains to shareholders until the
tax loss carryforwards have been utilized. In addition, the Fund intends to
invest in such municipal securities to allow it to qualify to pay "exempt
interest dividends," as defined in the Internal Revenue Code.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.30% of
the first $500 million of the Fund's average daily net assets, plus 0.25% of the
Fund's average daily net assets in excess of $500 million, but not in excess of
$1 billion, plus 0.20% of the Fund's average daily net assets in excess of $1
billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the six months ended September 30, 1999,
AIM was paid $24,949 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agent and
shareholder services to the Fund. During the six months ended September 30,
1999, the AFS was paid $23,192 for such services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") pursuant to which AIM Distributors
serves as the distributor for the Fund. AIM Distributors received commissions of
$33,071 from sales of capital stock during the six months ended September 30,
1999. Such commissions are not an expense of the Company. They are deducted
from, and are not included in, the proceeds from sales of capital stock. Certain
officers and directors of the Company are officers of AIM, AFS and AIM
Distributors.
During the six months ended September 30, 1999, the Fund paid legal fees of
$2,247 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Board of Directors. A member of that firm is a director of the Company.
NOTE 3-INDIRECT EXPENSES
During the six months ended September 30, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $1,557 under an expense
offset arrangement. The effect of the above arrangement resulted in a reduction
of the Fund's total expenses of $1,557 during the six months ended September 30,
1999.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to directors who are not
an "interested person" of AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended September 30, 1999, the Fund did not borrow under the line of
credit agreement. The funds which are parties to the line of credit are charged
a commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among such funds based on their respective average
net assets for the period. Prior to May 28, 1999, the commitment fee rate was
0.05%.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold during the six months ended September 30, 1999 was
$188,370,997 and $39,453,463, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of September 30, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 3,469,977
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (3,181,016)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 288,961
- ---------------------------------------------------------
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
18
<PAGE> 21
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended September 30,
1999 and the year ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1999 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold 22,133,243 $242,634,563 11,532,083 $128,215,321
- -------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends 456,982 4,887,058 488,076 5,429,472
- -------------------------------------------------------------------------------------------------------------------
Reacquired (9,022,360) (98,733,056) (8,238,608) (91,430,370)
- -------------------------------------------------------------------------------------------------------------------
13,567,865 $148,788,565 3,781,551 $ 42,214,423
===================================================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of capital stock
outstanding during the six months ended September 30, 1999 and for each of the
years in the five-year period ended March 31, 1999.
<TABLE>
<CAPTION>
MARCH 31,
SEPTEMBER 30, ------------------------------------------------------
1999 1999 1998 1997 1996 1995
--------------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.13 $ 11.05 $ 10.73 $10.79 $10.67 $10.62
- ------------------------------------------------------ -------- -------- -------- -------- ------- -------
Income from investment operations:
Net investment income 0.24 0.49 0.50 0.50 0.52 0.49
- ------------------------------------------------------ -------- -------- -------- -------- ------- -------
Net gains (losses) on securities (both realized
and unrealized) (0.30) 0.08 0.32 (0.04) 0.12 0.04
- ------------------------------------------------------ -------- -------- -------- -------- ------- -------
Total from investment operations (0.06) 0.57 0.82 0.46 0.64 0.53
- ------------------------------------------------------ -------- -------- -------- -------- ------- -------
Less distributions:
Dividends from net investment income (0.25) (0.49) (0.50) (0.52) (0.52) (0.48)
- ------------------------------------------------------ -------- -------- -------- -------- ------- -------
Net asset value, end of period $ 10.82 $ 11.13 $ 11.05 $10.73 $10.79 $10.67
====================================================== ======== ======== ======== ======== ======= =======
Total return(a) (0.58)% 5.27% 7.79% 4.33% 6.06% 5.17%
====================================================== ======== ======== ======== ======== ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $384,414 $244,499 $200,969 $173,342 $83,066 $82,355
====================================================== ======== ======== ======== ======== ======= =======
Ratio of expenses (exclusive of interest) to average
net assets 0.44%(b) 0.46% 0.45% 0.56% 0.65% 0.59%
====================================================== ======== ======== ======== ======== ======= =======
Ratio of net investment income to average net assets 4.25%(b) 4.43% 4.56% 4.63% 4.81% 4.65%
====================================================== ======== ======== ======== ======== ======= =======
Portfolio turnover rate 13% 32% 22% 26% 32% 75%
====================================================== ======== ======== ======== ======== ======= =======
</TABLE>
(a) Does not deduct sales charges.
(b) Ratios are annualized and based on average net assets of $322,466,939.
19
<PAGE> 22
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Stuart W. Coco Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President The Bank of New York
90 Washington Street
Jack Fields Karen Dunn Kelley 11th Floor
Chief Executive Officer Vice President New York, NY 10286
Texana Global, Inc.;
Formerly Member Mary J. Benson COUNSEL TO THE FUND
of the U.S. House of Representatives Assistant Vice President and
Assistant Treasurer Ballard Spahr
Carl Frischling Andrews & Ingersoll, LLP
Partner Sheri Morris 1735 Market Street
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and Philadelphia, PA 19103
Assistant Treasurer
Robert H. Graham COUNSEL TO THE DIRECTORS
President and Chief Executive Officer Renee A. Friedli
A I M Management Group Inc. Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Prema Mathai-Davis P. Michelle Grace New York, NY 10022
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary
Commissioner, New York City Dept. for the DISTRIBUTOR
Aging; and member of the Board of Directors, Jeffrey H. Kupor
Metropolitan Transportation Authority of Assistant Secretary A I M Distributors, Inc.
New York State 11 Greenway Plaza
Nancy L. Martin Suite 100
Lewis F. Pennock Assistant Secretary Houston, TX 77046
Attorney
Ofelia M. Mayo
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Lisa A. Moss
Limited Partnership Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
20
<PAGE> 23
AIM FUNDS(SM) KEEPS YOU POSTED ON YOUR INVESTMENT
We inform our shareholders about their investments with
regular mailings throughout the year. Here is a description of
the documents you will receive concerning your account and
fund.
o DAILY CONFIRMATION STATEMENTS. A record of the transactions
you initiate. For example, if you transfer part or all of
your investment from one AIM fund to another, you will
receive a statement confirming that the transaction took
place.
o QUARTERLY STATEMENTS. These show you how your account has
performed over the fiscal quarter and provide information
on any applicable dividend payments. Statement inserts that
sometimes accompany these mailings may give specific
information about your fund or may contain educational
information of general interest.
o PROXY. As a shareholder of an AIM fund, you have the right
WE INFORM to vote on any change to a fund's published bylaws or
OUR SHAREHOLDERS objectives. If the fund's board of directors proposes such
ABOUT THEIR a change, AIM will send a proxy to the shareholders. The
INVESTMENTS WITH proxy allows you to direct an authorized person to cast
REGULAR MAILINGS your vote according to your instructions. You can vote your
THROUGHOUT proxy by mail, phone or e-mail.
THE YEAR.
o PROSPECTUS. AIM sends you an updated version of your fund's
prospectus every year. Your prospectus contains valuable
information about your fund's objectives, risks, management
and fees. Because this information is important, you should
keep your prospectus with your other fund records.
o ANNUAL AND SEMIANNUAL REPORTS. AIM fund reports are sent to
you twice a year, the semiannual covering the first six
months of the fiscal year for a fund and the annual
covering the entire fiscal year. These reports give you an
idea of how your fund performed compared to the market in
general. The reports also give you information about the
holdings in your fund's portfolio and how market conditions
and management decisions have affected your fund.
o YEAR-END TAX INFORMATION. This includes your year-end
account statement, cost-basis statement and any tax forms
pertinent to your AIM account. The tax forms report
distributions you have received from your AIM funds,
redemptions or exchanges you have made and any
contributions you have made to tax-advantaged retirement
accounts. It is important to retain the latter, IRS Form
5498, if you need to track deductible vs. nondeductible IRA
contributions. The cost-basis statements are also important
to retain because they can be very useful for calculating
capital gains or losses if you use the "average basis
single category" method of calculating cost basis. Year-end
tax information will be accompanied by tax communications
from AIM to help you fill out your tax forms. Your tax
advisor can assist you in sorting through your year-end
statements and other tax communications.
<PAGE> 24
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS FUND MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual fund industry since
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund 1976 and managed approximately $120 billion in
AIM Capital Development Fund assets for more than 6.4 million shareholders,
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS including individual investors, corporate
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund clients and financial institutions, as of
AIM Large Cap Growth Fund AIM Asian Growth Fund September 30, 1999.
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds Registration Mark is
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) distributed nationwide, and AIM today is the
AIM Select Growth Fund AIM European Development Fund 10th-largest mutual fund complex in the United
AIM Small Cap Growth Fund(2) AIM International Equity Fund States in assets under management, according to
AIM Small Cap Opportunities Fund(3) AIM Japan Growth Fund Strategic Insight, an independent mutual fund
AIM Value Fund AIM Latin American Growth Fund monitor.
AIM Weingarten Fund AIM New Pacific Growth Fund
GROWTH & INCOME FUNDS GLOBAL GROWTH FUNDS
AIM Advisor Flex Fund AIM Global Aggressive Growth Fund
AIM Advisor Large Cap Value Fund AIM Global Growth Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund GLOBAL GROWTH & INCOME FUNDS
AIM Basic Value Fund AIM Global Growth & Income Fund
AIM Charter Fund AIM Global Utilities Fund
INCOME FUNDS GLOBAL INCOME FUNDS
AIM Floating Rate Fund AIM Emerging Markets Debt Fund
AIM High Yield Fund AIM Global Government Income Fund
AIM High Yield Fund II AIM Global Income Fund
AIM Income Fund AIM Strategic Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund THEME FUNDS
AIM Global Consumer Products and Services Fund
TAX-FREE INCOME FUNDS AIM Global Financial Services Fund
AIM High Income Municipal Fund AIM Global Health Care Fund
AIM Municipal Bond Fund AIM Global Infrastructure Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Resources Fund
AIM Tax-Free Intermediate AIM Global Telecommunications and Technology Fund(5)
AIM Global Trends Fund(6)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998.
(2) AIM Small Cap Growth Fund closed to new investors on November 8, 1999.
(3) AIM Small Cap Opportunities Fund closed to new investors on November 4,
1999. (4) On September 1, 1999, AIM Europe Growth Fund was renamed AIM Euroland
Growth Fund. (5) On June 1, 1999, AIM Global Telecommunications Fund was renamed
AIM Global Telecommunications and Technology Fund. (6) Effective August 27,
1999, AIM Global Trends Fund was restructured to operate as a traditional mutual
fund. Prior to August 27, 1999, the fund operated as a fund of funds. For more
complete information about any AIM fund(s), including sales charges and
expenses, ask your financial consultant or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after January 20, 2000, this report must
be accompanied by a current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
Invest with DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. TFI-SAR-1
