<PAGE> 1
ANNUAL REPORT / MARCH 31 2000
AIM TAX-FREE INTERMEDIATE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
------------------------------------
THE LIBRARY BY FELIX EDOUARD VALLOTTON (1865-1925, SWISS)
VALLOTTON'S WORK IS WIDELY DIVERSIFIED AND 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 to earn 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 performance figures are historical, and they
reflect reinvestment of all distributions and changes in net asset value.
o Had fees and expenses not been waived in the past, fund returns would have
been lower.
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 annualized.
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 its most recent monthly
dividend distribution multiplied by 12 and divided by the most recent
month-end net asset value.
o During the fiscal year ended 3/31/00, the fund paid distributions of $0.492
per share.
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 Revenue bonds, issued to finance public-works projects, are supported
directly by the revenues of the project. General obligation bonds are bonds
backed by the full faith and credit (including the taxing and further
borrowing power) of a state or municipality. Revenue bonds often are
considered more attractive, since many public-works projects (water and
sewer improvements, for example) are necessities and demand for them
remains constant regardless of economic conditions. Escrowed and
pre-refunded bonds are bonds whose repayment is guaranteed by the funds
from a second bond issue, usually U.S. Treasury bonds.
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 unmanaged Lehman Municipal Bond Index represents an approximation of
the performance of investment-grade municipal bonds.
o The unmanaged Lipper Intermediate Municipal Funds Index represents an
average of the performance of the 30 largest intermediate-term municipal
bond funds tracked by Lipper, Inc., an independent mutual fund performance
monitor.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they 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.
AIM TAX-FREE INTERMEDIATE FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The reasons for investing in municipal bonds, which are
[PHOTO OF generally exempt from federal income taxes, were compelling
Charles T. at the close of the fiscal year ending March 31, 2000. Newly
Bauer, issued investment-grade municipal bonds were offering yields
Chairman of comparable to those of U.S. Treasury securities, which are
the Board of subject to federal income taxes. On the other hand, newly
THE FUND issued high-yield municipal bonds were offering yields well
APPEARS HERE] above those of Treasuries. Taking into account the
tax-exempt status of municipal bonds, their yields were even
more attractive.
1999 was a very difficult year for bonds, including
municipal issues. However, the first quarter of 2000
witnessed an upturn in the performance of municipal bonds.
The changeable nature of the markets reinforces our
confidence in the wisdom of investing through a financial
advisor. In addition to helping you select investments
appropriate to your time horizon and risk tolerance, a financial advisor can
keep you informed about how shifting market conditions affect you and your
portfolio--and help assure that when you do alter your investments, there's a
logical reason for doing so. AIM believes every investor should be guided by a
financial professional.
TAX PLANS AND MUNICIPAL BONDS
Because 2000 is an election year, talk of replacing the current federal income
tax system with a flat tax or a national sales tax could resurface. However, we
believe the prospects are remote that either plan will be adopted. For one, a
flat tax could mean higher taxes for most Americans. Secondly, no flat-tax or
national-sales-tax bills have been formally proposed. Moreover, both plans
would eliminate most tax write-offs--a move that would likely generate strong
opposition. Finally, we don't believe the federal government would eliminate
the tax-advantaged status of municipal debt at a time when more public-spending
responsibilities are being shifted to the state and local level. Thus, we
expect municipal bonds to remain a viable and attractive investment option.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended March 31, how the markets behaved and
what they foresee for the near future. We trust you will find their discussion
informative.
If you have any questions or comments, we invite you to contact us, either
at our Web site, www.aimfunds.com, or through our Client Services department at
800-959-4246. Information about your account is also available through our
automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
--Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
------------------------------------
THUS, WE EXPECT
MUNICIPAL BONDS
TO REMAIN A VIABLE
AND ATTRACTIVE
INVESTMENT OPTION.
------------------------------------
AIM TAX-FREE INTERMEDIATE FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
MUNICIPAL BOND MARKET RECOVERS FOLLOWING
A DIFFICULT 1999
HOW DID AIM TAX-FREE INTERMEDIATE FUND PERFORM DURING THE PAST YEAR?
For the fiscal year ended March 31, 2000, AIM Tax-Free Intermediate Fund
returned 0.70% at net asset value, that is, without sales charges. By
comparison, the Lehman Municipal Bond Index--an index of approximately 40,000
investment-grade tax-exempt bonds--fell by 0.08%, and the Lipper Intermediate
Municipal Bond Index declined by 0.19% during the same period.
At the close of the reporting period, on March 31, 2000, the fund's 30-day
distribution rate, at net asset value, stood at 4.59%, which presented a
tax-equivalent yield of 7.60%. The fund's SEC 30-day yield was 4.58% at maximum
offering price for a taxable-equivalent yield of 7.58%. That tax-equivalent
yield represented just about 130% of the yield on a 30-year Treasury bond,
which stood at 5.84% on March 31.
Net asset value per share remained within a narrow range of $10.59 to $11.15
during the fiscal year, continuing the fund's history of relative price
stability.
WHAT WERE THE MAJOR TRENDS IN THE BOND MARKET DURING THE YEAR?
The past year was disappointing for many bond investors, as the Fed hiked
interest rates three times in 1999 and twice in early 2000 in a preemptive
effort to contain inflation--inflation that to date has remained low. As oil
prices tripled from early 1999 to early 2000, and as the stock market's rise
caused many Americans to spend more freely, inflation fears were rekindled and
the Fed felt obliged to remain vigilant. During the period, the Treasury
announced plans to begin buying back long-term federal debt. This buyback
caused some investors to worry about scarcity in the years ahead and prompted
increased demand for 30-year Treasury bonds, causing their yields to decline.
WHAT WERE THE MAJOR TRENDS IN THE MUNICIPAL BOND MARKET DURING THE YEAR?
Despite a difficult year in which bond prices declined due to a series of
interest-rate increases, the yields on municipal bonds relative to Treasuries
were some of the most attractive we've seen in years. During the first quarter
of 2000, yields on AAA-rated 30-year general obligation municipal bond yields
topped 6% for the first time since late 1994. Indeed, as the reporting period
drew to a close, many new investment-grade municipal bonds offered investors
yields that approached, and sometimes exceeded, comparable Treasury bond
yields. As a result, many municipal bond investors enjoyed tax-free income
close to or in excess of that provided by taxable securities.
Issuance of municipal bonds declined by 18% from 1998 to 1999--from $321.0
billion to $263.3 billion--and issuance during the first quarter of 2000 was
down 39% from year-earlier levels. States and municipalities benefited from the
nation's robust economy, collecting more income- and property-tax revenues and
reducing their need to issue debt. This decline in issuance resulted in greater
demand for, and better performance by, municipal bonds. While municipal bonds
performed poorly during the second, third and fourth quarters of 1999, they
enjoyed strong performance during the first quarter of 2000.
FUND PERFORMANCE As of 3/31/00
FUND PROVIDES SOLID INCOME
================================================================================
30-DAY DISTRIBUTION RATE AT NAV 4.59%
TAXABLE-EQUIVALENT DISTRIBUTION RATE 7.60%*
30-DAY SEC YIELD AT MAXIMUM OFFERING PRICE 4.58%
TAXABLE-EQUIVALENT 30-DAY SEC YIELD 7.58%*
30-YEAR U.S. TREASURY YIELD 5.84%
===============================================================================
*Assumes highest marginal federal income tax rate of 39.6%. During its tax year
ended March 31, 2000, 98.12% of the fund's distributions qualified as
tax-exempt interest dividends for federal income tax purposes.
Sources: Bloomberg, Lehman Brothers.
FUND VS. 30-YEAR U.S. TREASURY BOND
===============================================================================
TAXABLE EQUIVALENT DISTRIBUTION RATE* 7.60%
TAXABLE-EQUIVALENT 30-DAY SEC YIELD* 7.58%
30-YEAR U.S. TREASURY YIELD 5.84%
===============================================================================
HISTORY OF NET ASSET VALUE STABILITY
5/11/87-3/31/00
===============================================================================
5/11/87 10 9/91 10.2 3/96 10.79
6/87 9.93 12/91 10.33 6/96 10.72
9/87 9.59 3/92 10.27 9/96 10.74
12/87 9.79 6/92 10.43 12/96 10.8
3/88 9.89 9/92 10.55 3/97 10.73
6/88 9.82 12/92 10.58 6/97 10.86
9/88 9.86 3/93 10.74 9/97 10.97
12/88 9.81 6/93 10.87 12/97 11.06
3/89 9.69 9/93 11.03 3/98 11.05
6/89 9.94 12/93 11.02 6/98 11.04
9/89 9.77 3/94 10.62 9/98 11.2
12/89 9.99 6/94 10.61 12/98 11.16
3/90 9.89 9/94 10.56 3/99 11.13
6/90 9.93 12/94 10.38 6/99 10.87
9/90 9.88 3/95 10.67 9/99 10.82
12/90 10.01 6/95 10.76 12/99 10.68
3/91 10.07 9/95 10.84 3/00 10.71
6/91 10.07 12/95 10.92
===============================================================================
There is no guarantee that 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.
AIM TAX-FREE INTERMEDIATE FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 3/31/00, based on total net assets
<TABLE>
<CAPTION>
===============================================================================
TOP FIVE BOND HOLDINGS COUPON MATURITY % OF NET ASSETS
-------------------------------------------------------------------------------
<S> <C> <C> <C>
San Antonio, Texas Electric & Gas 5.25% 02/01/10 2.41%
Hawaii (State of) 6.00% 03/01/07 1.49%
Louisiana (State of) 6.00% 04/15/07 1.49%
Massachusetts (State of) 5.75% 08/01/08 1.48%
New York (City of) 5.60% 11/01/05 1.45%
===============================================================================
</TABLE>
<TABLE>
<CAPTION>
===============================================================================
BOND-TYPE DIVERSIFICATION PORTFOLIO CREDIT QUALITY
-------------------------------------------------------------------------------
<S> <C>
GENERAL A 9.41%
OBLIGATION 32% AA 17.55%
REVENUE 68% AAA 73.04%
===============================================================================
</TABLE>
===============================================================================
Number of Holdings 259 Average Maturity 6.66 years
Duration 5.21 years Average Quality Rating AA+
The fund's portfolio is subject to change, and there is no assurance it will
continue to hold any particular security.
===============================================================================
GIVEN CURRENT ECONOMIC CONDITIONS, HOW HAVE YOU MANAGED THE PORTFOLIO?
As yields have risen in the last several months, we have purchased
longer-maturity municipal bonds in order to lock in those higher yields. Given
our belief that we're approaching the end of the Fed's current tightening
cycle, we've begun to increase the fund's weighted average maturity--from 4.5
years at the beginning of the fiscal year to 6.66 years at its close. As
interest rates turn downward, these longer maturities will benefit the fund's
shareholders. Duration of the fund's portfolio increased from 4.5 years to 5.21
years during the reporting period.
The fund's net assets under management grew during the fiscal year, from
$244 million to $353 million. This added cash flow helped the fund maintain
attractive yields throughout the year, as we acquired more recently issued
higher-yielding bonds. This also allowed us to increase our holdings from 197
issues at the beginning of the fiscal year to 259 holdings at the end.
WHAT DID THE FUND'S PORTFOLIO LOOK LIKE AT THE CLOSE OF THE FISCAL YEAR?
The quality of the portfolio changed little over the reporting period,
consisting exclusively of investment-grade bonds. Bonds rated AAA or AA
composed approximately 91% of the fund's holdings at the end of the period.
Overall, at the reporting period's close, the average credit quality of the
fund's portfolio was AA+ as rated by Standard & Poor's, Moody's and Fitch
IBCA--three widely known credit-rating agencies. The historical ratings are
based on analysis of the bonds' investment quality.
Found nearby is a chart depicting the portfolio's allocation between general
obligation and revenue bonds.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We remain generally optimistic about the direction of the economy, and we
believe the Fed may be nearing the end of its string of interest-rate
hikes--although most observers expect at least one more rate increase. In order
to preserve its nonpartisan character, the Fed traditionally avoids increasing
interest rates during a presidential election.
We also remain optimistic about bond markets in general and tax-exempt
municipal bonds in particular. While bonds performed poorly in 1999,
historically it is rare that bond markets suffer bad years back-to-back.
Demographic trends also favor bonds. Every 10 seconds, another "baby boomer"
turns 50 and his or her thoughts turn to retirement. With 80 million "boomers"
approaching retirement, it's likely they are preparing to shift some of their
assets from equity to fixed-income markets.
30-YEAR AAA GENERAL OBLIGATION MUNICIPAL BOND YIELDS
AS A PERCENTAGE OF 30-YEAR U.S. TREASURY BOND YIELDS
===============================================================================
3/97-3/00
3/97 79.5
9/97 80.5
3/98 85
9/98 95
3/99 87.5
9/99 90.8
3/00 94
===============================================================================
Over the last three years, yields on high-quality municipal bonds as a
percentage of Treasury bond yields have risen dramatically. In the fall of
1998, following the Russian debt crisis, investors flocked to the safety of
U.S. Treasury securities, pushing down their yields. Recently, the expectation
of a scarcity of Treasury bonds has driven down their yields to such a degree
that tax-free munis now represent a bargain. Source: Bloomberg
See important fund and index disclosures inside front cover.
AIM TAX-FREE INTERMEDIATE FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM TAX-FREE INTERMEDIATE FUND VS. BENCHMARK INDEX
3/31/90-3/31/00
===============================================================================
AIM Tax-Free Lehman
Intermediate Municipal
Fund Bond Index
-------------------------------------------------------------------------------
3/31/90 9900 10000
3/31/91 10726 10922.5
3/31/92 11627 12013.9
3/31/93 12790 13518
3/31/94 13235 13831.6
3/31/95 13918 14859.3
3/31/96 14761 16104.8
3/31/97 15401 16982
3/31/98 16601 18801.8
3/31/99 17476 19967.4
3/31/00 17598 19951.5
Past performance cannot guarantee comparable future results.
Source: Lipper, Inc.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
===============================================================================
ABOUT THIS CHART
The chart compares your fund to a benchmark index. It is intended to give you a
general idea of how your fund performed compared to the bond market over the
period 3/31/90-3/31/00. It is important to understand the difference between
your fund and an index. Your fund's total return is shown with a sales charge,
and it includes fund expenses and management fees. An index measures the
performance of a hypothetical portfolio, in this case the Lehman Municipal Bond
Index. Unlike your fund, the index is not managed; therefore, there are no
sales charges, expenses, or fees. You cannot invest in an index. But if you
could buy all the securities that make up a particular index, you would incur
expenses that would affect the return of your investment.
AVERAGE ANNUAL TOTAL RETURNS
For periods ended 3/31/00, including sales charges
===============================================================================
Inception (5/11/87) 5.82%
10 years 5.81
5 years 4.59
1 year -0.28*
*0.70%, excluding sales charges
===============================================================================
Your fund's total return includes sales charges, expenses and management fees.
For fund performance calculations and descriptions of the indexes cited on this
page, please see the inside front cover.
AIM TAX-FREE INTERMEDIATE FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ALABAMA-1.60%
Alabama State Municipal
Electric Authority;
Power Supply Series 1991
A RB
6.30%, 09/01/01(b) AAA Aaa $ 400 $ 409,680
-----------------------------------------------------------------
Birmingham (City of)
Special Care Facilities
Financing Authority
(Charity Obligation
Group);
Hospital Series 1997
D RB
4.95%, 11/01/07(c)(d) NRR Aa2 945 935,569
-----------------------------------------------------------------
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 2,436,598
-----------------------------------------------------------------
McIntosh Alabama
Industrial Development
Board;
Environmental
Improvement Series 1998
B RB
4.65%, 06/01/08 AA- A2 2,000 1,861,520
-----------------------------------------------------------------
5,643,367
-----------------------------------------------------------------
ALASKA-1.12%
Alaska State Housing
Financing Corp.;
Series 1991 A-1 RB
4.90%, 12/01/07(b) AAA Aaa 800 788,912
-----------------------------------------------------------------
Anchorage (City of);
Unlimited Tax Series
1994 GO
5.50%, 07/01/06(b) AAA Aaa 1,950 2,006,803
-----------------------------------------------------------------
Fairbanks North Star
Borough;
Unlimited Tax School
Series 1999 B GO
5.13%, 04/01/09(b) AAA Aaa 1,160 1,160,406
-----------------------------------------------------------------
3,956,121
-----------------------------------------------------------------
ARIZONA-4.41%
Arizona (State of)
Transportation Board
(Highway Project);
Refunding Series 1993 RB
4.70%, 07/01/01 AAA Aa1 2,800 2,803,136
-----------------------------------------------------------------
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 1,885,997
-----------------------------------------------------------------
Maricopa County Unified
School District #11
(Peoria Project of
1991);
Unlimited Tax Series
1995 GO
5.50%, 07/01/10(b) AAA Aaa 1,365 1,390,102
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET 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 $ 1,291,987
-----------------------------------------------------------------
Mohave County Unified
School District #1 (Lake
Havasu);
Unlimited Tax Series
1996 A GO
5.40%, 07/01/06(b) AAA Aaa 200 205,304
-----------------------------------------------------------------
Navajo County Unified
School District
(Herber-Overgaard);
Unlimited Tax Series
1997 A GO
5.00%, 07/01/07(b) AAA Aaa 450 450,778
-----------------------------------------------------------------
Nogales Municipal
Development Authority;
Series 1999 RB
4.20%, 06/01/08(b) -- Aaa 710 661,699
-----------------------------------------------------------------
4.30%, 06/01/09(b) -- Aaa 230 214,268
-----------------------------------------------------------------
Phoenix (City of) Civic
Improvement Corp.
(Wastewater System);
Lease Series 1993 RB
6.13%, 07/01/03(c)(d) AAA NRR 3,255 3,443,530
-----------------------------------------------------------------
Phoenix (City of) Senior
Lien Street and Highway
User;
Refunding Series 1992 RB
6.20%, 07/01/02 AA A1 1,000 1,030,790
-----------------------------------------------------------------
Scottsdale (City of);
Unlimited Tax Series
1999 GO
7.50%, 07/01/02 AA+ Aa1 1,100 1,164,614
-----------------------------------------------------------------
Yuma Industrial
Development Authority
(Yuma Regional Medical
Center Project);
Refunding Hospital
Series 1997 RB
5.70%, 08/01/06(b) AAA Aaa 1,000 1,032,000
-----------------------------------------------------------------
15,574,205
-----------------------------------------------------------------
ARKANSAS-2.15%
Arkansas State Development
Financial Authority;
Correction Facility
Series 1996 RB
6.25%, 10/01/06(b) AAA Aaa 1,800 1,934,712
-----------------------------------------------------------------
Arkansas State Development
Financial Authority,
State Agencies
Facilities (Department
Corporate Project);
Series 1999 RB
5.00%, 11/01/05(b) AAA Aaa 1,125 1,134,754
-----------------------------------------------------------------
Fort Smith Water and
Sewer;
Series 1999 RB
5.00%, 10/01/08(b) AAA Aaa 1,000 994,530
-----------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ARKANSAS-(CONTINUED)
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 $ 1,488,508
-----------------------------------------------------------------
North Little Rock (City
of);
Refunding Electric
Series 1992 A RB
6.00%, 07/01/01(b) AAA Aaa 500 509,140
-----------------------------------------------------------------
Sebastian (County of)
(Arkansas Community Jr.
College District);
Refunding and
Improvement Limited Tax
Series 1997 GO
5.10%, 04/01/06(b) -- Aaa 500 503,845
-----------------------------------------------------------------
5.20%, 04/01/07(b) -- Aaa 1,000 1,011,670
-----------------------------------------------------------------
7,577,159
-----------------------------------------------------------------
CALIFORNIA-0.70%
California Intercommunity
Hospital Financing
Authority (NorthBay
Healthcare System);
Series 1998 COP
4.60%, 11/01/08(b) A -- 660 630,439
-----------------------------------------------------------------
California State Public
Works Board Department
of Corrections (Madera
County State Prison);
Lease Series 1990 A RB
7.00%, 09/01/00 A+ A1 100 101,288
-----------------------------------------------------------------
Folsom (City of) (School
Facilities Project);
Unlimited Tax Series
1994 B GO
6.00%, 08/01/02(b) AAA Aaa 500 518,225
-----------------------------------------------------------------
Inglewood (City of)
(Daniel Freeman Hospital
Inc.);
Insured Hospital Series
1991 RB
6.50%, 05/01/01(d) NRR NRR 400 410,080
-----------------------------------------------------------------
San Francisco (City and
County of) Parking
Authority;
Parking Meter Series
1994 RB
6.75%, 06/01/05(b) AAA Aaa 500 549,045
-----------------------------------------------------------------
West End Water Treatment
and Conservation Joint
Powers Authority;
Water Facilities Series
1990 COP
7.00%, 10/01/00(d) NRR NRR 250 253,715
-----------------------------------------------------------------
2,462,792
-----------------------------------------------------------------
COLORADO-0.61%
Boulder (County of); Open
Space Capital
Improvement
Trust Fund Series 1998
RB
5.25%, 12/15/09 AA- -- 1,000 1,009,760
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
COLORADO-(CONTINUED)
Highlands Ranch
Metropolitan District
#3;
Refunding Unlimited Tax
Series 1998 B GO
4.50%, 12/01/04(b) A -- $1,175 $ 1,128,341
-----------------------------------------------------------------
2,138,101
-----------------------------------------------------------------
CONNECTICUT-3.05%
Connecticut (State of)
Residential Recovery
Authority (Bridgeport
Resco Co. LP Project);
Refunding Series 1999 RB
5.00%, 01/01/07(b) AAA Aaa 1,000 997,100
-----------------------------------------------------------------
5.13%, 01/01/09(b) AAA Aaa 1,000 994,010
-----------------------------------------------------------------
Connecticut (State of)
Residential Recovery
Authority;
Connecticut System
Series 1999 A RB
5.50%, 11/15/03(b) AAA Aaa 750 766,425
-----------------------------------------------------------------
Connecticut (State of)
Special Tax Obligation
(2nd Lien Transportation
Infrastructure-1);
VRDn Series 1990 RB
3.85%, 12/01/10(c)(e) A-1+ VMIG1 2,000 2,000,000
-----------------------------------------------------------------
Connecticut (State of)
Special Tax Obligation
(JP Morgan PUTTERS);
VRD Series 114 1999 A RB
3.81%, 10/01/09(e)(f) -- VMIG1 3,830 3,830,000
-----------------------------------------------------------------
New Haven (City of);
Unlimited Tax Series
1997 GO
6.00%, 02/15/06(b) AAA Aaa 2,050 2,173,164
-----------------------------------------------------------------
10,760,699
-----------------------------------------------------------------
DELAWARE-0.22%
Delaware Transportation
Authority;
Senior Lien
Transportation System
Series 1991 RB
6.00%, 07/01/01(c)(d) AAA Aaa 750 763,800
-----------------------------------------------------------------
DISTRICT OF COLUMBIA-4.02%
District of Columbia;
Refunding Unlimited Tax
GO: Series 1992 B
6.13%, 06/01/02(c)(d) AAA Aaa 60 62,777
-----------------------------------------------------------------
Series 1993 B-1,
5.50%, 06/01/09(b) AAA Aaa 1,250 1,272,387
-----------------------------------------------------------------
Series 1993 B-2,
5.50%, 06/01/07(b) AAA Aaa 3,000 3,060,150
-----------------------------------------------------------------
Series 1999 B,
5.50%, 06/01/09(b) AAA Aaa 5,000 5,089,550
-----------------------------------------------------------------
District of Columbia
(American Association of
Advancement Science);
Series 1997 RB
5.00%, 01/01/05(b) AAA Aaa 800 802,616
-----------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia
(Gonzaga College High
School);
Series 1999 RB
5.25%, 07/01/08(b) AAA Aaa $ 500 $ 505,290
-----------------------------------------------------------------
5.25%, 07/01/09(b) AAA Aaa 510 512,183
-----------------------------------------------------------------
District of Columbia (The
Howard University
Issue);
Series 1990 A RB
6.90%, 10/01/00(d) AAA NRR 200 202,632
-----------------------------------------------------------------
District of Columbia
(Medlantic Healthcare
Group);
Hospital Refunding
Series A RB
Series 1993, 5.50%,
08/15/06(d) AAA Aaa 500 513,720
-----------------------------------------------------------------
Series 1996, 6.00%,
08/15/06(d) AAA Aaa 1,550 1,634,320
-----------------------------------------------------------------
Series 1997, 6.00%,
08/15/07(d) AAA Aaa 500 529,495
-----------------------------------------------------------------
14,185,120
-----------------------------------------------------------------
FLORIDA-2.19%
Broward (County of)
Expressway Authority;
Refunding Unlimited Tax
Series 1986 A GO
6.50%, 07/01/04 AA+ Aa2 1,000 1,001,750
-----------------------------------------------------------------
Capital Trust Agency;
MultiFamily Housing VRD
Series 1999 B RB
4.00%, 12/01/32(b)(e) A-1+ -- 2,681 2,681,000
-----------------------------------------------------------------
Miami Beach (City of)
Health Facilities
Authority (South Shore
Hospital);
Series 1998 A RB
4.80%, 08/01/08 A -- 1,000 947,410
-----------------------------------------------------------------
Palm Beach (County of)
Solid Waste Authority;
Refunding Series 1997
A RB
5.50%, 10/01/06(b) AAA Aaa 3,000 3,092,280
-----------------------------------------------------------------
7,722,440
-----------------------------------------------------------------
GEORGIA-2.76%
Albany (City of) Sewer
System;
Series 1992 RB
6.30%, 07/01/02(d) AAA Aaa 500 516,985
-----------------------------------------------------------------
Cobb-Marietta Coliseum and
Exhibit Hall Authority;
Series 1999 RB
5.00%, 10/01/09(b) AAA Aaa 250 249,437
-----------------------------------------------------------------
Floyd (County of) School
District;
Unlimited Tax Series
2000 GO
5.25%, 08/01/03 -- Aa2 2,000 2,030,880
-----------------------------------------------------------------
Fulton (County of) Water
and Sewer;
Refunding Series 1992 RB
5.75%, 01/01/02(b) AAA Aaa 715 728,771
-----------------------------------------------------------------
Georgia State;
Refunding Unlimited Tax
Series 1992 B GO
6.30%, 03/01/09 AAA Aaa 1,425 1,556,755
-----------------------------------------------------------------
Series 1993 E GO
5.50%, 07/01/03 AAA Aaa 910 931,567
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
GEORGIA-(CONTINUED)
Georgia State Municipal
Electric Authority;
Series 1991 V RB,
6.00%, 01/01/01(b) AAA Aaa $1,000 $ 1,012,520
-----------------------------------------------------------------
Georgia State Municipal
Electric Authority
(Project One);
Sub Series 1998 A RB
4.75%, 01/01/08(b) AAA Aaa 2,250 2,216,947
-----------------------------------------------------------------
Metropolitan Atlanta Rapid
Transportation
Authority;
Sales Tax Refunding
Series 1991 M RB
6.15%, 07/01/02 AA- A1 500 513,800
-----------------------------------------------------------------
9,757,662
-----------------------------------------------------------------
HAWAII-2.51%
Hawaii (State of);
Refunding Unlimited Tax
Series CO 1997 GO
6.00%, 03/01/07(b) AAA Aaa 5,000 5,276,750
-----------------------------------------------------------------
Hawaii (State of);
Unlimited Tax Series CA
1993 GO
5.75%, 01/01/10(b) AAA Aaa 1,000 1,039,970
-----------------------------------------------------------------
Hawaii (State of) (Kapolei
State Office Building);
Series 1998 A COP
4.50%, 05/01/09(b) AAA Aaa 2,725 2,557,194
-----------------------------------------------------------------
8,873,914
-----------------------------------------------------------------
IDAHO-0.17%
Idaho Housing Agency;
Single Family Mortgage
Sub. Series 1994 D-1 RB
5.90%, 07/01/06 -- Aa2 570 595,291
-----------------------------------------------------------------
ILLINOIS-4.48%
Chicago (City of);
Limited Tax Series 1997
GO
6.00%, 01/01/06(b) AAA Aaa 500 525,140
-----------------------------------------------------------------
Chicago (City of)
Distribution Package
Facility;
Series 1999 RB
5.25%, 01/01/05 A Baa1 2,500 2,513,325
-----------------------------------------------------------------
Chicago (City of) Midway
Airport;
Series 1996 A RB
5.30%, 01/01/08(b) AAA Aaa 1,000 1,015,770
-----------------------------------------------------------------
Chicago (City of) Public
Building Commission;
Unlimited Tax Series
1999 C GO
5.50%, 02/01/06(b) AAA Aaa 1,500 1,545,000
-----------------------------------------------------------------
Hoffman Estates Illinois
Multifamily Housing
(Park Place Apartments
Project);
Refunding Series 1996 RB
5.75%, 06/01/06(c) AAA -- 1,400 1,432,550
-----------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois Development
Financial Authority
(Citizens Utility
Company Project);
Series 1997 RB
4.80%, 08/01/25 A-1 -- $1,000 $ 954,030
-----------------------------------------------------------------
Illinois Educational
Facilities Authority
(MJH Educational
Assistance);
Series 1999 B RB
4.63%, 09/01/04(b)(c) AAA Aaa 350 344,732
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Alexian
Brothers Health System);
Series 1997 A RB
5.00%, 01/01/06(b) AAA Aaa 1,000 999,920
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Children's
Memorial Hospital);
Series 1999 A RB
5.50%, 08/15/07(b) AAA Aaa 1,580 1,611,474
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Edward
Obligated Group);
Series 1997 A RB
4.90%, 02/15/08(b) AAA Aaa 835 821,590
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Highland Park
Hospital);
Series 1991 B RB
5.55%, 10/01/06(b) AAA Aaa 500 513,685
-----------------------------------------------------------------
Illinois Regional
Transportation
Authority;
Series 1994 B RB
6.30%, 06/01/04(c)(d) AAA Aaa 1,000 1,070,290
-----------------------------------------------------------------
Illinois (State of)
Partners; (Departmental
Central Management
Services)
Series 1999 COP
4.90%, 07/01/08(b) AAA Aaa 1,000 989,920
-----------------------------------------------------------------
Joliet (City of)
Waterworks and Sewer;
Series 1989 RB
6.95%, 01/01/01(b) AAA Aaa 250 254,837
-----------------------------------------------------------------
McHenry (County of) School
District #47 (Crystal
Lake);
Unlimited Tax Series
1999 GO
5.13%, 02/01/10(b) -- Aaa 1,250 1,245,612
-----------------------------------------------------------------
15,837,875
-----------------------------------------------------------------
INDIANA-3.04%
Hamilton (County of);
Optional Income Tax
Revenue Series 1998 RB
5.00%, 07/10/08(b) AAA Aaa 1,095 1,089,065
-----------------------------------------------------------------
Indiana Health Facilities
Financing Authority
(Charity Obligated
Group);
VRD Series 1997 D RB
5.00%, 11/01/07(c)(d)(e) NRR NRR 3,260 3,246,667
-----------------------------------------------------------------
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 1,936,280
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
INDIANA-(CONTINUED)
Indiana Transportation
Finance Authority;
Airport
Facilities Lease Series
1992 A RB
6.00%, 11/01/01 A+ A1 $ 500 $ 509,190
-----------------------------------------------------------------
Indiana Transportation
Finance Authority;
Highway Series 1993 A RB
5.50%, 06/01/07(b) AAA Aaa 1,000 1,028,480
-----------------------------------------------------------------
Indianapolis (City of);
Local Public Improvement
Series 1999 D RB
5.10%, 01/01/09 AAA Aaa 425 425,561
-----------------------------------------------------------------
Indianapolis (City of);
Refunding Local Public
Improvement Series 1998
A RB
5.50%, 02/01/08 AAA Aaa 1,000 1,029,360
-----------------------------------------------------------------
Warren (City of)
Independent School
Building Corp;
Refunding First Mortgage
Series 1998 RB
4.50%, 01/05/03(b) AAA Aaa 1,500 1,484,625
-----------------------------------------------------------------
10,749,228
-----------------------------------------------------------------
IOWA-1.01%
Des Moines (City of);
Unlimited Tax Series
1999 A GO
4.80%, 06/01/08 AA+ Aa2 775 761,623
-----------------------------------------------------------------
Muscatine (City of);
Refunding Electric
Series 1986 RB
5.00%, 01/01/08 A A3 2,855 2,813,403
-----------------------------------------------------------------
3,575,026
-----------------------------------------------------------------
KANSAS-0.91%
Burlington (City of)
Environmental
Improvement (Kansas City
Power and Light Co.
Project);
Refunding Series 1998
D RB
4.35%, 09/01/01(c) A1 A2 1,250 1,240,063
-----------------------------------------------------------------
4.50%, 09/01/03(c) A1 A2 2,000 1,956,140
-----------------------------------------------------------------
3,196,203
-----------------------------------------------------------------
KENTUCKY-1.20%
Carrollton and Henderson
Public Energy Authority;
Gas Series 1998 B RB
4.20%, 01/01/06(b) AAA Aaa 1,000 925,870
-----------------------------------------------------------------
Kentucky State Property
and Buildings Commission
(Project #64);
Series 1999 RB
5.13%, 05/01/09(b) AAA Aaa 1,000 1,000,320
-----------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
KENTUCKY-(CONTINUED)
Kentucky State Turnpike
Authority (Economic
Development Road
Revitalization
Projects);
7.13%, Series 1990 RB
05/15/00(c)(d) AAA Aaa $ 260 $ 264,766
-----------------------------------------------------------------
5.50%, Refunding Series
1993 RB 07/01/07(b) AAA Aaa 1,000 1,028,750
-----------------------------------------------------------------
Louisville and Jefferson
(County of) Metro Sewer
District (Sewer and
Drain System);
Series 1999 A RB
5.13%, 05/15/10(b) AAA Aaa 1,000 997,990
-----------------------------------------------------------------
4,217,696
-----------------------------------------------------------------
LOUISIANA-2.58%
Jefferson Parish School
Board;
Sales and Use Tax Series
1995 RB
6.00%, 02/01/04(b) AAA Aaa 1,720 1,788,731
-----------------------------------------------------------------
Louisiana (State of);
Unlimited Tax Series
1993 A GO
6.00%, 04/15/07(b) AAA Aaa 5,000 5,275,000
-----------------------------------------------------------------
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 1,011,600
-----------------------------------------------------------------
6.20%, 09/01/03 A A3 1,000 1,027,020
-----------------------------------------------------------------
9,102,351
-----------------------------------------------------------------
MAINE-0.49%
Maine Financial Authority;
Electric
Refunding Rate
Stabilization Series
1998 A RB
4.50%, 07/01/08(b) AAA Aaa 1,830 1,733,651
-----------------------------------------------------------------
MARYLAND-0.31%
Maryland (State of)
Department of
Transportation
Conservation;
Series 1999 RB
5.00%, 12/15/09 AA Aa2 1,095 1,092,427
-----------------------------------------------------------------
MASSACHUSETTS-1.88%
Massachusetts (State of);
Refunding Limited Tax
Series 1997 A GO
5.75, 08/01/08(b) AAA Aaa 5,000 5,241,950
-----------------------------------------------------------------
Massachusetts (State of)
Health and Educational
Facilities Authority
(Eye and Ear Infirmary);
Series 1998 B RB
5.00%, 07/01/05 A -- 1,000 979,210
-----------------------------------------------------------------
New England Education Loan
Marketing Corp;
Refunding Student Loan
Senior Issue 1992 D RB
6.20%, 09/01/00 -- Aaa 400 402,908
-----------------------------------------------------------------
6,624,068
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MICHIGAN-2.52%
Dearborn (City of)
Economic Development
Corp. (Oakwood Obligated
Group);
Hospital Series 1991 ARB
6.95%, 08/15/01(c)(d) AAA Aaa $1,000 $ 1,050,750
-----------------------------------------------------------------
Detroit (City of) School
District;
Unlimited Tax Series
1992 GO
5.60%, 05/01/01 AA+ Aa2 765 775,687
-----------------------------------------------------------------
Michigan State Building
Authority;
Refunding Series 1991 IRB
6.40%, 10/01/04 AA Aa2 2,000 2,085,060
-----------------------------------------------------------------
Michigan State Hospital
Financial Authority
(Ascension Health
Credit);
Series 1999 B RB
5.20%, 11/15/05(c)(d) AA Aa2 4,000 3,988,240
-----------------------------------------------------------------
Michigan State Hospital
Financial Authority (Bay
Medical Center);
Refunding Series 1997 ARB
5.00%, 07/01/02(b) AAA Aaa 1,000 1,004,120
-----------------------------------------------------------------
8,903,857
-----------------------------------------------------------------
MINNESOTA-0.50%
Minneapolis (City of)
Special School District
#1;
Unlimited Tax Series
1997 GO
5.00%, 02/01/10 AA+ Aa1 1,000 996,860
-----------------------------------------------------------------
Southern Minnesota
Municipal Power Agency;
Unrefunded Power Supply
System Series 1992 A RB
5.60%, 01/01/04 A+ A2 745 764,094
-----------------------------------------------------------------
1,760,954
-----------------------------------------------------------------
MISSISSIPPI-0.29%
Gulfport (City of);
Refunding Unlimited Tax
Series 1998 GO
4.50%, 05/01/07(b) -- Aaa 515 495,703
-----------------------------------------------------------------
4.55%, 05/01/08(b) -- Aaa 550 526,460
-----------------------------------------------------------------
1,022,163
-----------------------------------------------------------------
MISSOURI-0.41%
Missouri (State of) Health
and Educational
Facilities Authority
(Freeman Health Systems
Project);
Hospital Series 1998 RB
4.85%, 02/15/07(b) A -- 1,000 950,490
-----------------------------------------------------------------
5.00%, 02/15/08(b) A -- 515 490,919
-----------------------------------------------------------------
1,441,409
-----------------------------------------------------------------
MONTANA-0.12%
Montana (State of) Higher
Education Assistance
Corp.;
Student Loan Series 1992
A RB
6.60%, 12/01/00 -- A 420 425,057
-----------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEVADA-1.67%
Clark (County of)
Improvement District #65
(Lamb Boulevard III);
Series 1992 Special
Assessment
6.20%, 12/01/02 AA A1 $ 120 $ 123,842
-----------------------------------------------------------------
Las Vegas (City of);
Limited Tax Park Series
1999 GO
5.00%, 08/01/09(b) AAA Aaa 3,000 2,973,360
-----------------------------------------------------------------
Nevada (State of) Capital
Improvement and Cultural
Affairs;
Limited Tax Series 1999
A GO
5.00%, 02/01/10 AA Aa2 2,500 2,456,075
-----------------------------------------------------------------
Nevada (State of)
Municipal Bond Bank
Project #38-39;
Limited Tax Series 1992
A GO
6.00%, 07/01/01(d) NRR NRR 350 356,016
-----------------------------------------------------------------
5,909,293
-----------------------------------------------------------------
NEW JERSEY-0.42%
Passaic (County of)
Utilities Authority;
Solid Waste System
Series 1999 A RB
4.80%, 03/01/08(b) AAA Aaa 1,000 980,000
-----------------------------------------------------------------
Trenton (City of);
Unlimited Tax Series
1992 GO
6.10%, 08/15/02(b) AAA Aaa 500 516,905
-----------------------------------------------------------------
1,496,905
-----------------------------------------------------------------
NEW MEXICO-2.16%
Albuquerque (City of)
Joint Water and Sewer
System;
Series 1990 A RB
6.00%, 07/01/00(c)(d) AAA NRR 1,000 1,004,460
-----------------------------------------------------------------
Farmington (City of ) (San
Juan Regional Medical
Center);
Hospital Series A RB
5.00%, 06/01/01(b) -- Aaa 1,015 1,019,456
-----------------------------------------------------------------
New Mexico (State of);
Severance Tax Series
1999 B RB
5.00%, 07/01/06 AA Aa2 5,100 5,105,406
-----------------------------------------------------------------
Santa Fe (City of);
Series 1994 RB
5.50%, 06/01/03(d) AAA Aaa 500 510,395
-----------------------------------------------------------------
7,639,717
-----------------------------------------------------------------
NEW YORK-8.51%
Nassau (County of);
Unlimited Tax General
Improvement Series 1997
V GO
5.15%, 03/01/07(b) AAA Aaa 5,000 5,022,800
-----------------------------------------------------------------
New York (City of);
Refunding Series 1996 D
GO
5.60%, 11/01/05 A- A3 5,000 5,131,900
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NEW YORK-(CONTINUED)
New York (City of);
Unlimited Tax Series
1996 G GO
5.90%, 02/01/05 A- A3 $1,150 $ 1,191,285
-----------------------------------------------------------------
New York (City of) Transit
Authority (Metropolitan
Transportation
Authority);
Triborough Series 1999 A
COP
5.00%, 01/01/08(b) AAA Aaa 1,000 998,650
-----------------------------------------------------------------
New York (State of)
Dormitory Authority;
Mental Health Facilities
Series 1997 A RB
6.00%, 02/15/05 A A3 1,000 1,038,680
-----------------------------------------------------------------
6.00%, 08/15/07 A A3 1,775 1,865,223
-----------------------------------------------------------------
New York (State of)
Dormitory Authority
(Pace University Issue);
Series 1997 RB
6.00%, 07/01/07(b) AAA Aaa 1,275 1,349,945
-----------------------------------------------------------------
New York (State of)
Dormitory Authority
(Upstate Community
Colleges);
Series 1999 A RB
4.38%, 07/01/09(b) AAA Aaa 1,000 934,340
-----------------------------------------------------------------
New York (State of) Local
Government Assistance
Corp;
Refunding Series 1996 A
RB
5.13%, 04/01/10(b) AAA Aaa 5,000 4,986,450
-----------------------------------------------------------------
New York (State of)
Medical Care Facilities
(Hospital and Nursing
Home);
Financial Agency Series
1995 A RB
5.60%, 02/15/05(b) AAA -- 475 474,762
-----------------------------------------------------------------
New York (State of)
Tollway Authority;
General Series 1997 D RB
5.40%, 01/01/10 AA- Aa3 5,000 5,100,750
-----------------------------------------------------------------
Triborough Bridge and
Tunnel Authority;
General Purpose Series
1994 A RB
4.80%, 01/01/08 A+ Aa3 2,000 1,973,180
-----------------------------------------------------------------
30,067,965
-----------------------------------------------------------------
NORTH CAROLINA-4.39%
Coastal Regional Solid
Waste Management
Authority (Solid Waste
Disposal System);
Refunding Series 1999 RB
4.00%, 06/01/04(b) AAA Aaa 1,775 1,688,078
-----------------------------------------------------------------
Charlotte (City of);
Refunding Unlimited Tax
Series 1998 GO
5.25%, 02/01/10 AAA Aaa 5,000 5,080,200
-----------------------------------------------------------------
North Carolina (State of);
Unlimited Tax Series
1997 A GO
5.10%, 03/01/04 AAA Aaa 2,500 2,530,750
-----------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of)
Eastern Municipal Power
Agency (Power System);
Refunding Series 1993
B RB
7.00%, 01/01/08(b) AAA Aaa $1,000 $ 1,114,720
-----------------------------------------------------------------
North Carolina (State of)
(Public Improvement);
Unlimited Tax Series
1999 A GO
5.25%, 03/01/10 AAA Aaa 5,000 5,080,850
-----------------------------------------------------------------
15,494,598
-----------------------------------------------------------------
NORTH DAKOTA-0.48%
Burleigh (County of)
Health Care (Medcenter
One Inc.);
Refunding Series 1999 RB
5.25%, 05/01/09(b) AAA Aaa 1,695 1,699,780
-----------------------------------------------------------------
OHIO-2.47%
Franklin (County of);
Limited Tax Series 1991
GO
6.30%, 12/01/01(c)(d) NRR NRR 1,500 1,567,890
-----------------------------------------------------------------
Greene (County of) Water
System;
Series 1996 A RB
5.45%, 12/01/06(b) AAA Aaa 585 603,714
-----------------------------------------------------------------
Hilliard (City of) School
District;
Refunding Unlimited Tax
Series 1992 GO
6.05%, 12/01/00(b) AAA Aaa 500 506,050
-----------------------------------------------------------------
6.15%, 12/01/01(b) AAA Aaa 250 256,733
-----------------------------------------------------------------
Lucas (County of) (St.
Vincent's Medical
Center);
Hospital Improvement
Series 1990 A RB
6.75%, 08/15/20(b) AAA Aaa 2,000 2,055,060
-----------------------------------------------------------------
Montgomery (County of)
(Catholic Health
Initiatives);
Series 2000 RB
5.25%, 12/01/03 AA- Aa3 1,745 1,757,547
-----------------------------------------------------------------
Ohio (State of)
(Elementary & Secondary
Education Facilities);
Special Obligation
Series 1997 A RB
5.10%, 12/01/05 AA- Aa2 1,500 1,518,255
-----------------------------------------------------------------
Portage (County of)
(Robinson Memorial
Hospital);
Hospital Series 1999 RB
5.15%, 11/15/08(b) AAA Aaa 465 467,223
-----------------------------------------------------------------
8,732,472
-----------------------------------------------------------------
OKLAHOMA-1.41%
Grady (County of)
Industrial Authority
(Correctional
Facilities);
Series 1999 RB
5.38%, 11/01/09(b) AAA Aaa 360 369,054
-----------------------------------------------------------------
Mustang (City of)
Improvement Authority;
Utility Series 1999 RB
5.25%, 10/01/09(b) -- Aaa 1,130 1,147,718
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-(CONTINUED)
Norman (City of) Regional
Hospital Authority;
Refunding Series 1996
A RB
5.20%, 09/01/06(b) AAA Aaa $ 310 $ 313,856
-----------------------------------------------------------------
5.30%, 09/01/07(b) AAA Aaa 1,090 1,106,612
-----------------------------------------------------------------
Oklahoma (State of)
Capitol Improvement
Authority;
State Facilities Series
1999 A RB
5.00%, 09/01/09(b) AAA Aaa 1,000 996,990
-----------------------------------------------------------------
Okmulgee (County of)
Governmental Building
(Authority Sales Tax);
1st Mortgage Series 2000
RB
5.60%, 03/01/10(b) -- Aaa 1,000 1,040,820
-----------------------------------------------------------------
4,975,050
-----------------------------------------------------------------
OREGON-1.17%
Cow Creek Band (Umpqua
Tribe of Indians);
Series 1998 B RB
4.25%, 07/01/03(b) AAA Aaa 480 470,021
-----------------------------------------------------------------
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 1,148,538
-----------------------------------------------------------------
Portland (City of);
Sewer System Series 1994
A RB
5.45%, 06/01/03 A+ A1 1,065 1,088,728
-----------------------------------------------------------------
5.55%, 06/01/04 A+ A1 500 512,995
-----------------------------------------------------------------
Salem (City of) Hospital
Facilities Authority
(Salem Hospital);
Series 1998 RB
4.20%, 08/15/08 AA- -- 1,000 904,740
-----------------------------------------------------------------
4,125,022
-----------------------------------------------------------------
PENNSYLVANIA-4.81%
Delaware (State of) River
Port Authority;
Series 1999 RB
5.50%, 01/01/10(b) AAA Aaa 2,340 2,409,124
-----------------------------------------------------------------
Lackawanna (County of);
Unlimited Tax Series
1999 A GO
4.40%, 01/01/09(b) AAA Aaa 510 477,299
-----------------------------------------------------------------
Lehigh (County of) General
Purpose Authority
(Kidspeace Obligation
Group);
Series 1998 RB
5.70%, 11/01/09(b) A -- 1,000 1,002,880
-----------------------------------------------------------------
Pennsylvania (State of);
Series 2000 RB
5.50%, 01/15/08(b) AAA Aaa 1,000 1,031,160
-----------------------------------------------------------------
</TABLE>
11
<PAGE> 14
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA-(CONTINUED)
Pennsylvania (State of)
Higher Educational
Facilities Authority;
Series 1999 RB
4.40%, 07/01/07(b) AAA Aaa $1,595 $ 1,515,904
-----------------------------------------------------------------
4.50%, 07/01/08(b) AAA Aaa 1,525 1,450,839
-----------------------------------------------------------------
4.55%, 07/01/09(b) AAA Aaa 750 711,030
-----------------------------------------------------------------
Pennsylvania (State of)
Higher Educational
Facilities Authority
(UPMC Health System);
Series A RB
5.00%, 08/01/09(b) AAA Aaa 4,000 3,923,840
-----------------------------------------------------------------
Philadelphia (City of)
Hospitals and Higher
Educational Facilities
Authority (St. Agnes
Medical Center);
Refunding Hospital
Series 1996 A RB
5.00%, 07/01/05(b) AAA Aaa 865 863,357
-----------------------------------------------------------------
Philadelphia (City of)
School District;
Refunding Unlimited Tax
Series 1999 D GO
5.50%, 03/01/08(b) AAA Aaa 3,500 3,601,430
-----------------------------------------------------------------
16,986,863
-----------------------------------------------------------------
PUERTO RICO-0.29%
Puerto Rico Municipal
Financial Agency;
Unlimited Tax Series
1999 A GO
5.50%, 08/01/09(b) AAA Aaa 1,000 1,037,570
-----------------------------------------------------------------
RHODE ISLAND-0.29%
Rhode Island (State of);
Refunding Unlimited Tax
Series 1992 GO
6.10%, 06/15/03(b) AAA Aaa 1,000 1,038,290
-----------------------------------------------------------------
SOUTH CAROLINA-2.84%
Charleston (County of)
(Care Alliance Health
Services);
Series 1999 A RB
4.40%, 08/15/08(b) AAA Aaa 3,000 2,787,930
-----------------------------------------------------------------
Medical University of
South Carolina;
Hospital Facilities
Series 1999 RB
5.50%, 07/01/09 A A3 1,000 965,180
-----------------------------------------------------------------
Piedmont (City of)
Municipal Power Agency;
Refunding Series 1996
B RB
5.25%, 01/01/08(b) AAA Aaa 4,000 4,042,720
-----------------------------------------------------------------
South Carolina (State of)
Public Service
Authority;
Series 1999 A RB
5.50%, 01/01/10(b) AAA Aaa 1,000 1,028,000
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of)
Transportation
Infrastructure;
Series 1999 A RB
5.50%, 01/01/09(b) -- Aaa $1,180 $ 1,215,152
-----------------------------------------------------------------
10,038,982
-----------------------------------------------------------------
SOUTH DAKOTA-0.56%
Rapid City (City of);
Sales Tax Series 1995
A RB
5.60%, 06/01/05(b) AAA Aaa 255 263,262
-----------------------------------------------------------------
South Dakota Health and
Educational Facility
(McKennan Hospital);
Refunding Series 1996 RB
5.40%, 07/01/06(b) AAA Aaa 1,680 1,706,510
-----------------------------------------------------------------
1,969,772
-----------------------------------------------------------------
TENNESSEE-1.71%
Johnson (City of) Health
and Educational
Facilities Board;
Refunding Hospital
Series 2000 A RB
5.50%, 07/01/05(b) -- Aaa 1,975 2,017,127
-----------------------------------------------------------------
Nashville and Davidson
(County of) Health and
Educational Facilities
Board (Welch Bend
Apartments);
Multifamily Housing
Series 1996 A RB
5.50%, 01/01/07(c)(d) AAA -- 1,000 1,010,610
-----------------------------------------------------------------
Nashville and Davidson
(County of) Metropolitan
Government Health and
Educational Facilities
Board (Meharry Medical
College);
Series 1979 RB
7.88%, 12/01/04(d) NRR Aaa 785 832,500
-----------------------------------------------------------------
Tennergy Corp.;
Gas Series 1999 RB
4.13%, 06/01/09(b) AAA Aaa 1,000 849,160
-----------------------------------------------------------------
Tennessee Housing
Development Agency;
Mortgage Financing
Refunding Series 1993
A RB
5.65%, 01/01/07 A+ A1 1,325 1,341,629
-----------------------------------------------------------------
6,051,026
-----------------------------------------------------------------
TEXAS-14.49%
Arlington (City of)
Independent School
District;
Unlimited Tax Series
2000 GO
5.25%, 02/15/08(b) -- Aaa 1,000 1,014,070
-----------------------------------------------------------------
Bexar (County of) Housing
Finance Authority
(Fountainhead Apts.);
Refunding VRD
Multifamily Series 1996
RB
3.90%, 09/15/26(e) A-1+ -- 918 918,000
-----------------------------------------------------------------
</TABLE>
12
<PAGE> 15
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Brownsville (City of)
Utility System;
Refunding Series 1995 RB
5.00%, 09/01/02(b) AAA Aaa $2,810 $ 2,833,913
-----------------------------------------------------------------
Canadian River Municipal
Water Authority (Bureau
of Reclamation Project);
Refunding Texas Contract
Series 1999 RB
4.35%, 10/01/09(b) NRR Aaa 615 568,242
-----------------------------------------------------------------
Canadian River Municipal
Water Authority
(Conjunctive Use
Groundwater);
Refunding Texas Contract
Series 1999 RB
5.00%, 02/15/10(b) AAA Aaa 2,655 2,626,353
-----------------------------------------------------------------
Central Texas College
District;
Building Series 1999 RB
4.63%, 05/15/09(b) AAA Aaa 1,135 1,086,195
-----------------------------------------------------------------
Cleburne (City of)
Waterworks and Sewer;
Series 1999 RB
5.50%, 02/15/10(b) AAA Aaa 1,395 1,419,594
-----------------------------------------------------------------
Comal County Industrial
Development Authority
(Coleman Company, Inc.
Project);
Series 1980 IDR
9.25%, 08/01/00(d) NRR NRR 170 172,686
-----------------------------------------------------------------
Conroe (City of)
Independent School
District;
Unlimited School Tax
Series 1991 GO
7.38%, 02/01/01(b) -- Aaa 115 117,863
-----------------------------------------------------------------
Dallas (City of)
Waterworks and Sewer
System;
Series 2000 RB
5.50%, 10/01/09 AA Aa2 1,500 1,543,545
-----------------------------------------------------------------
Garland (City of)
Certificates Obligation;
Limited Tax Series 2000
GO
5.25%, 02/15/09 AA Aa2 1,940 1,959,031
-----------------------------------------------------------------
Gatesville Independent
School District;
Unlimited Tax School
Refunding and Building
Series 1995 GO
5.80%, 02/01/03(b) -- Aaa 485 498,265
-----------------------------------------------------------------
Harris (County of) (Port
of Houston Authority);
Series 1977 RB
5.75%, 05/01/02 A A2 805 809,387
-----------------------------------------------------------------
5.75%, 05/01/02(b) AAA Aaa 810 814,909
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Christus Health);
Series 1999 A RB
5.38%, 07/01/08(b) AAA Aaa 1,000 1,012,190
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Harris County Health
Facilities Development
Corp. (Memorial Hermann
Hospital System
Project);
Hospital Series 1998 RB
5.50%, 06/01/09(b) AAA Aaa $2,500 $ 2,555,725
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Memorial Hospital
System Project);
Hospital Series 1992 RB
6.70%, 06/01/00(d) NRR NRR 1,000 1,003,870
-----------------------------------------------------------------
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 1,006,820
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Texas Children's
Hospital Project);
Series 1999 A RB
5.00%, 10/01/09 AA Aa2 1,920 1,844,045
-----------------------------------------------------------------
Houston (City of) (Public
Improvement);
Refunding Limited Tax
Series 1998 A GO
5.00%, 03/01/07 AA- Aa3 1,250 1,251,388
-----------------------------------------------------------------
Katy (City of) Independent
School District;
Unlimited Tax Series
1999 A GO
5.20%, 02/15/10(b) AAA Aaa 1,285 1,291,258
-----------------------------------------------------------------
Keller (City of)
Independent School
District;
Series 1994 COP
5.75%, 08/15/01(b) AAA Aaa 700 711,291
-----------------------------------------------------------------
Kerrville (City of);
Refunding Electric
Series 1991 RB
6.38%, 11/01/01(b) AAA Aaa 185 190,200
-----------------------------------------------------------------
Killeen (City of);
Refunding Limited Tax
Series 1999 GO
4.30%, 08/01/09(b) AAA Aaa 1,170 1,076,061
-----------------------------------------------------------------
La Joya Independent School
District;
Unlimited Tax Series
1998 GO
5.38%, 02/15/10(b) AAA Aaa 1,535 1,558,977
-----------------------------------------------------------------
La Marque Independent
School District;
Unlimited Tax Series
1992 GO
7.50%, 08/15/02(b) AAA Aaa 750 796,867
-----------------------------------------------------------------
Lubbock (City of);
Series 1999 COP
5.00%, 02/15/10 AA Aa2 680 673,180
-----------------------------------------------------------------
Lubbock Health Facility
Development Corp.
(Methodist Hospital);
Series 1993 B RB
5.40%, 12/01/05(d) AAA Aaa 500 512,430
-----------------------------------------------------------------
</TABLE>
13
<PAGE> 16
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Plano (City of);
Unlimited Tax Series
2000 GO
5.25%, 09/01/06 AAA Aaa $ 600 $ 610,410
-----------------------------------------------------------------
5.13%, 09/01/07 AAA Aaa 535 539,729
-----------------------------------------------------------------
Plano (City of)
Independent School
District;
Unlimited Tax Series
1994 GO
5.80%, 02/15/05(b) AAA Aaa 2,025 2,091,866
-----------------------------------------------------------------
San Antonio (City of)
Electric and Gas;
Refunding Series 1998
A RB
5.25%, 02/01/10 AA Aa1 8,500 8,525,245
-----------------------------------------------------------------
Southlake (City of)
(Waterworks and
Sewer-Certificates
Obligation);
Limited Tax Series 2000
A GO
5.40%, 02/15/09(b) AAA Aaa 250 253,142
-----------------------------------------------------------------
5.45%, 02/15/10(b) AAA Aaa 235 238,281
-----------------------------------------------------------------
Tarrant (County of)
Housing Finance Corp.
(Arbors On the Park II);
Multifamily Housing
Series 1990 RB
5.05%, 12/01/07 AAA -- 1,440 1,420,128
-----------------------------------------------------------------
Temple (City of);
Refunding Limited Tax
Series 1992 GO
5.80%, 02/01/01(b) AAA Aaa 250 253,182
-----------------------------------------------------------------
Texas Municipal Power
Agency;
Series 1992 RB
5.75%, 09/01/02(c)(d) AAA Aaa 1,000 1,022,890
-----------------------------------------------------------------
Texas (State of) Turnpike
Authority (Addison
Airport Toll Tunnel
Project);
Dallas North Tollway
Series 1994 RB
6.30%, 01/01/05(b) AAA Aaa 500 529,670
-----------------------------------------------------------------
University of Texas
(Financing System);
Series 1996 B RB,
4.80%, 08/15/09 AAA Aa1 1,650 1,606,242
-----------------------------------------------------------------
Series 1999 B RB,
5.50%, 08/15/09 AAA Aa1 1,000 1,027,910
-----------------------------------------------------------------
Weatherford (City of)
Utility System;
Refunding and
Improvement Series 1999
RB
4.35%, 09/01/09(b) AAA Aaa 1,275 1,179,490
-----------------------------------------------------------------
51,164,540
-----------------------------------------------------------------
UTAH-1.55%
Intermountain Power Agency
(Utah Power Supply);
Refunding Series 1997
B RB
6.00%, 07/01/07(b) AAA Aaa 1,000 1,054,440
-----------------------------------------------------------------
Salt Lake City (City of);
Unlimited Tax Series
1999 GO
5.25%, 06/15/09 AAA Aaa 900 912,375
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
UTAH-(CONTINUED)
Utah (State of) Associated
Municipal Power System
(Hunter Project);
Refunding Series 1994 RB
5.00%, 07/01/09(b) AAA Aaa $1,500 $ 1,477,005
-----------------------------------------------------------------
Utah (State of) Board of
Regents (Utah
University);
Refunding Hospital
Series 1997 RB
5.00%, 08/01/02(b) AAA Aaa 1,000 1,005,810
-----------------------------------------------------------------
Utah (State of) Housing
Finance Agency;
Single Family Mortgage
Series 1999 E-II RB
4.95%, 07/01/06 AAA Aaa 250 248,525
-----------------------------------------------------------------
5.05%, 07/01/07 AAA Aaa 250 249,980
-----------------------------------------------------------------
Utah (State of) (Board of
Water Resource Program);
Revolving Fund
Recapitalization Series
1992 B RB
6.10%, 04/01/02 AA -- 500 514,290
-----------------------------------------------------------------
5,462,425
-----------------------------------------------------------------
VIRGINIA-0.81%
Norfolk (City of)
Redevelopment and
Housing Authority
(Tidewater Community
College Campus);
Educational Facility
Series 1995 RB
5.30%, 11/01/04 AA A2 535 546,503
-----------------------------------------------------------------
5.40%, 11/01/05 AA A2 500 513,515
-----------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Port Improvement Series
1992 GO
6.40%, 11/01/03 AA- A3 300 312,927
-----------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Public Utility Series
1992 GO
5.90%, 11/01/01 AA- A3 450 459,306
-----------------------------------------------------------------
Virginia (State of) Public
School Authority;
Refunding School Funding
Series 1997 I RB
5.25%, 08/01/07 AA+ Aa1 1,000 1,019,400
-----------------------------------------------------------------
2,851,651
-----------------------------------------------------------------
WASHINGTON-3.36%
King (County of);
Sewer Series 1994 A RB
5.80%, 01/01/04(c)(d) NRR Aaa 1,000 1,048,760
-----------------------------------------------------------------
Lewis (County of) Public
Utility District #1
(Cowlitz Falls
Hydroelectronics);
Refunding Series 1993 RB
5.38%, 10/01/08 AA- Aa1 1,000 1,013,490
-----------------------------------------------------------------
Seattle (City of);
Refunding Limited Tax
Series GO
6.40%, 10/01/01(d) NRR NRR 250 256,403
-----------------------------------------------------------------
</TABLE>
14
<PAGE> 17
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WASHINGTON-(CONTINUED)
Seattle (Port of);
Series 1992 A RB
6.00%, 11/01/01 AA- Aa3 $ 500 $ 510,480
-----------------------------------------------------------------
Snohomish (County of)
Public Utilities
District #1;
Electric Generation
System Series 1993 RB
5.70%, 01/01/06(b) AAA Aaa 4,000 4,152,360
-----------------------------------------------------------------
Spokane (City of);
Unlimited Tax Series
1999 B GO
5.40%, 01/01/10 AAA Aaa 2,075 2,103,635
-----------------------------------------------------------------
Washington (State of);
Refunding Unlimited Tax
Series 1999 R 2000A GO
5.50%, 01/01/08 AA+ Aa1 1,135 1,166,553
-----------------------------------------------------------------
Washington (State of)
Public Power Supply
System (Nuclear Project
#1);
Refunding Series 1993
B RB
5.15%, 07/01/02 AA- Aa1 610 612,379
-----------------------------------------------------------------
Washington (State of)
Public Power Supply
System (Nuclear Project
#2);
Refunding Series 1997
B RB
5.50%, 07/01/06 AA- Aa1 1,000 1,017,320
-----------------------------------------------------------------
11,881,380
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WISCONSIN-1.85%
Oak Creek (City of);
Waterworks Systems
Series 1998 BAN
3.90%, 09/01/00 -- MIG1 $1,000 $ 998,340
-----------------------------------------------------------------
Wisconsin (State of)
Health & Educational
Facilities Authority;
(Benedictine Health);
Health Care Series 1999
B RB
5.00%, 02/15/09(b) AAA Aaa 1,185 1,167,438
-----------------------------------------------------------------
Wisconsin (State of)
Health & Educational
Facilities Authority
(Charity Obligation
Group);
Hospital Series 1997
D RB
4.90%, 11/01/05(c)(d) NRR NRR 2,145 2,137,686
-----------------------------------------------------------------
Wisconsin (State of)
Health & Educational
Facilities Authority
(Marshfield Clinic);
Series 1997 RB
5.20%, 02/15/07(b) AAA Aaa 2,210 2,228,873
-----------------------------------------------------------------
6,532,337
-----------------------------------------------------------------
TOTAL INVESTMENTS-100.49%
(Cost $355,628,444) 354,848,274
-----------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.49)% (1,718,339)
-----------------------------------------------------------------
NET ASSETS-100.00% $353,129,935
=================================================================
</TABLE>
Investment Abbreviations:
BAN - Bond Anticipation Notes
COP - Certificates of Participation
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
NRR - Not re-rated
PUTTERS - Putable Tax Exempt Receipts
RB - Revenue Bonds
VRD - Variable Rate Demand
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. Ratings are not covered by Independent Auditors' Report.
(b) Secured by bond insurance provided by one of the following companies:
AMBAC, FGIC, FSA or MBIA.
(c) Subject to an 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) Demand security; payable on demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
periodically. Rate shown is the rate in effect on 03/31/00.
(f) The fund may invest in synthetic municipal instruments the value of and
return on which are derived from underlying securities. The types of
synthetic municipal instruments in which the Fund may invest include
variable rate instruments. These instruments involve the deposit into a
trust of one or more long-term tax-exempt bonds or notes ("Underlying
Bonds"), and the sale of certificates evidencing interests in the trust to
investors such as the Fund. The trustee receives the long-term fixed rate
interest payments on the Underlying Bonds, and pays certificate holders
short-term floating or variable interest rates which are reset
periodically. A "variable rate trust certificate" evidences an interest in
a trust entitling the certificate holder to receive variable rate interest
based on prevailing short-term interest rates and also typically providing
the certificate holder with the conditional right to put its certificate at
par value plus accrued interest. Because synthetic municipal instruments
involve a trust and a third party conditional put feature, they involve
complexities and potential risks that may not be present where a municipal
security is owned directly.
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$355,628,444) $ 354,848,274
---------------------------------------------------------
Receivables for:
Capital stock sold 3,853,280
---------------------------------------------------------
Interest 4,854,702
---------------------------------------------------------
Investment for deferred compensation plan 30,690
---------------------------------------------------------
Other assets 57,258
---------------------------------------------------------
Total assets 363,644,204
---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,797,993
---------------------------------------------------------
Capital stock reacquired 4,076,984
---------------------------------------------------------
Dividends 439,277
---------------------------------------------------------
Deferred compensation plan 30,690
---------------------------------------------------------
Accrued administrative services fees 6,186
---------------------------------------------------------
Accrued advisory fees 87,538
---------------------------------------------------------
Accrued transfer agent fees 7,793
---------------------------------------------------------
Accrued operating expenses 67,808
---------------------------------------------------------
Total liabilities 10,514,269
---------------------------------------------------------
Net assets applicable to shares
outstanding $ 353,129,935
=========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER
SHARE:
Authorized 1,000,000,000
---------------------------------------------------------
Outstanding 32,987,141
=========================================================
Net asset value and redemption price per
share $ 10.71
=========================================================
Offering price per share:
(Net asset value of $10.71 divided
by 99.00%) $ 10.82
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $ 16,773,430
---------------------------------------------------------
EXPENSES:
Advisory fees 1,032,771
---------------------------------------------------------
Administrative services fees 68,350
---------------------------------------------------------
Custodian fees 17,939
---------------------------------------------------------
Transfer agent fees 76,610
---------------------------------------------------------
Registration and filing fees 105,761
---------------------------------------------------------
Directors' fees 8,541
---------------------------------------------------------
Interest 4,794
---------------------------------------------------------
Other 134,074
---------------------------------------------------------
Total expenses 1,448,840
---------------------------------------------------------
Less: Expenses paid indirectly (3,721)
---------------------------------------------------------
Net expenses 1,445,119
---------------------------------------------------------
Net investment income 15,328,311
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES:
Net realized gain (loss) on sales of
investment securities (3,662,707)
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of investment securities (8,785,558)
---------------------------------------------------------
Net gain (loss) on investment securities (12,448,265)
---------------------------------------------------------
Net increase in net assets resulting from
operations $ 2,880,046
=========================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 15,328,311 $ 9,178,235
---------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities (3,662,707) 409,752
---------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities (8,785,558) 966,924
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,880,046 10,554,911
---------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (15,337,130) (9,191,201)
---------------------------------------------------------------------------------------------
Distributions in excess of net investment income (293,541) (47,638)
---------------------------------------------------------------------------------------------
Net increase from capital stock transactions 121,381,091 42,214,423
---------------------------------------------------------------------------------------------
Net increase in net assets 108,630,466 43,530,495
---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 244,499,469 200,968,974
---------------------------------------------------------------------------------------------
End of period $353,129,935 $244,499,469
=============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $358,332,424 $237,244,429
---------------------------------------------------------------------------------------------
Undistributed net investment income (36,050) (24,189)
---------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investment securities (4,386,269) (726,159)
---------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities (780,170) 8,005,388
---------------------------------------------------------------------------------------------
$353,129,935 $244,499,469
=============================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
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. 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 will be valued at par. Prices provided
by the pricing service 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 persons designated by the Board of
Directors, 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 a manner specifically
authorized by the Board of Directors. Notwithstanding the above, short-term
obligations with maturities of 60 days or less are valued at amortized cost.
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. On
March 31, 2000, undistributed net investment income was increased by
$290,499, undistributed net realized gain (loss) was increased by $2,597 and
paid-in capital was decreased by
17
<PAGE> 20
$293,096 as a result of differing book/tax reclassifications. Net assets of
the Fund were unaffected by the reclassifications.
C. Distributions -- It is the policy of the Fund to declare daily dividends
from net investment income. Such distributions are paid monthly.
Distributions from net realized capital gains, if any, are generally paid
annually and recorded on ex-dividend date. The Fund may elect to use a
portion of the proceeds of fund share redemptions as distributions for
federal income tax purposes.
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 $1,822,426, which expires, if not previously utilized, in
the year 2008. 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. For the year ended March 31, 2000, AIM was paid
$68,350 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. For the year ended March 31, 2000, AFS was
paid $45,974 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
$54,505 from sales of capital stock during the year ended March 31, 2000. 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 year ended March 31, 2000, the Fund paid legal fees of $3,903 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 year ended March 31, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) of $3,721 under an expense offset
arrangement. The effect of the above arrangement resulted in a reduction of the
Fund's total expenses of $3,721 during the year ended March 31, 2000.
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 year
ended March 31, 2000, the Fund borrowed minimal amounts under the line of credit
agreement. Interest expense for the Fund for the year ended March 31, 2000 was
$4,794. 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.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold during the year ended March 31, 2000 was $288,681,681 and
$160,430,807, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of March 31, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 2,441,517
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (3,221,687)
---------------------------------------------------------
Net unrealized appreciation (depreciation)
of investment securities $ (780,170)
=========================================================
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 years ended March 31, 2000 and
1999 were as follows:
<TABLE>
<CAPTION>
2000 1999
--------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Sold 36,588,213 $ 396,750,803 11,532,083 $128,215,321
---------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends 1,010,690 10,900,646 488,076 5,429,472
---------------------------------------------------------------------------------------------------------------------
Reacquired (26,587,941) (286,270,358) (8,238,608) (91,430,370)
---------------------------------------------------------------------------------------------------------------------
11,010,962 $ 121,381,091 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 each of the years in the five-year period ended March 31,
2000.
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.13 $ 11.05 $ 10.73 $10.79 $10.67
------------------------------------------------------------ -------- -------- -------- -------- -------
Income from investment operations:
Net investment income 0.48 0.49 0.50 0.50 0.52
------------------------------------------------------------ -------- -------- -------- -------- -------
Net gains (losses) on securities (both realized and
unrealized) (0.41) 0.08 0.32 (0.04) 0.12
------------------------------------------------------------ -------- -------- -------- -------- -------
Total from investment operations 0.07 0.57 0.82 0.46 0.64
------------------------------------------------------------ -------- -------- -------- -------- -------
Distributions to shareholders:
From net investment income (0.48) (0.49) (0.50) (0.52) (0.52)
------------------------------------------------------------ -------- -------- -------- -------- -------
In excess of net investment income (0.01) -- -- -- --
------------------------------------------------------------ -------- -------- -------- -------- -------
Total distributions (0.49) (0.49) (0.50) (0.52) (0.52)
------------------------------------------------------------ -------- -------- -------- -------- -------
Net asset value, end of period $ 10.71 $ 11.13 $ 11.05 $10.73 $10.79
============================================================ ======== ======== ======= ======== =======
Total return(a) 0.70% 5.27% 7.79% 4.33% 6.06%
============================================================ ======== ======== ======= ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $353,130 $244,499 $200,969 $173,342 $83,066
============================================================ ======== ======== ======= ======== =======
Ratio of expenses to average net assets:
Including interest expense 0.42%(b) 0.46% 0.45% 0.56% 0.65%
============================================================ ======== ======== ======= ======== =======
Excluding interest expense 0.42%(b) 0.45% 0.45% 0.56% 0.65%
============================================================ ======== ======== ======= ======== =======
Ratio of interest expense to average net assets 0.00%(b) 0.01% -- -- --
============================================================ ======== ======== ======= ======== =======
Ratio of net investment income to average net assets 4.45%(b) 4.43% 4.56% 4.63% 4.81%
============================================================ ======== ======== ======= ======== =======
Portfolio turnover rate 50% 32% 22% 26% 32%
============================================================ ======== ======== ======= ======== =======
</TABLE>
(a) Does not deduct sales charges.
(b) Ratios are based on average net assets of $344,256,881.
19
<PAGE> 22
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM Tax-Free Intermediate Fund:
We have audited the accompanying statement of assets and
liabilities of AIM Tax-Free Intermediate Fund (a
portfolio of AIM Tax-Exempt Funds, Inc.), including the
schedule of investments, as of March 31, 2000, the
related statement of operations for the year then ended,
the statement of changes in net assets for each of the
years in the two-year period then ended and the financial
highlights for each of the years in the five-year period
then ended. These financial statements and financial
highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion
on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of
America. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are
free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as
of March 31, 2000, by correspondence with the custodian
and brokers. An audit also includes assessing the
accounting principles used and significant estimates made
by management, as well as evaluating the overall
financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of AIM Tax-Free
Intermediate Fund as of March 31, 2000, the results of
its operations for the year then ended, the changes in
its net assets for each of the years in the two-year
period then ended and the financial highlights for each
of the years in the five-year period then ended, in
conformity with accounting principles generally accepted
in the United States of America.
KPMG LLP
May 1, 2000
Houston, Texas
20
<PAGE> 23
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
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
DISTRIBUTOR
Lewis F. Pennock Nancy L. Martin
Attorney Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Louis S. Sklar Ofelia M. Mayo Suite 100
Executive Vice President Assistant Secretary Houston, TX 77046
Hines Interests
Limited Partnership Lisa A. Moss AUDITORS
Assistant Secretary
KPMG LLP
Kathleen J. Pflueger 700 Louisiana
Assistant Secretary Houston, TX 77002
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
(UNAUDITED)
REQUIRED FEDERAL INCOME TAX INFORMATION
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2000.
AIM Tax-Free Intermediate Fund paid ordinary dividends in the amounts of $0.492
per share during its tax year ended March 31, 2000. Of this amount, 98.12%
qualified as tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the appropriate Form 1099-DIV.
<PAGE> 24
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry since
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund 1976 and managed approximately $176 billion
AIM Capital Development Fund in assets for more than 7.4 million
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund corporate clients and financial institutions,
AIM Large Cap Growth Fund AIM Asian Growth Fund as of March 31, 2000.
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds --Registered
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(5) Trademark-- is distributed nationwide, and
AIM Mid Cap Opportunities Fund(2) AIM European Development Fund AIM today is the eighth-largest mutual fund
AIM Select Growth Fund AIM International Equity Fund complex in the United States in assets under
AIM Small Cap Growth Fund(3) AIM Japan Growth Fund management, according to Strategic Insight,
AIM Small Cap Opportunities Fund(4) AIM Latin American Growth Fund an independent mutual fund monitor.
AIM Value Fund AIM New Pacific Growth Fund(8)
AIM Weingarten Fund
GLOBAL GROWTH FUNDS
GROWTH & INCOME FUNDS AIM Global Aggressive Growth Fund
AIM Advisor Flex Fund AIM Global Growth Fund
AIM Advisor Large Cap Value Fund(8) AIM Global Trends Fund(7)
AIM Advisor Real Estate Fund
AIM Balanced Fund GLOBAL GROWTH & INCOME FUNDS
AIM Basic Value Fund AIM Global Growth & Income Fund(8)
AIM Charter Fund AIM Global Utilities Fund
INCOME FUNDS GLOBAL INCOME FUNDS
AIM Floating Rate Fund AIM Emerging Markets Debt Fund(8)
AIM High Yield Fund AIM Global Government Income Fund(8)
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 Fund AIM Global Telecommunications and Technology Fund(6)
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On
September 1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund.
Previously the fund invested in all size companies in most areas of Europe. The
fund now seeks to invest at least 65% of its assets in large-cap companies
within countries using the euro as their currency (EMU-member countries). (6)
On June 1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (7) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. (8) AIM Advisor Large
Cap Value Fund, AIM Emerging Markets Debt Fund, AIM Global Government Income
Fund, AIM Global Growth & Income Fund and AIM New Pacific Growth Fund closed to
new investors on April 28, 2000. For more complete information about any AIM
fund(s), including sales charges and expenses, ask your Financial advisor 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 July
20, 2000, this report must be accompanied by a current Quarterly Review of
Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
[MFS Dalbar Award Logo]
A I M Distributors, Inc. TFI-AR-1
