<PAGE> 1
SEMIANNUAL REPORT / SEPTEMBER 30 2000
AIM TAX-FREE INTERMEDIATE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
THE LIBRARY BY FELIX EDOUARD VALLOTTON
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 WRIT-
INGS. 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's performance figures are historical, and
they reflect the reinvestment of distributions and changes in net asset
value. When sales charges are included in performance figures, those
figures reflect the maximum 1.00% sales charge.
o Had fees not been waived in the prior year, returns would have been lower.
o The 30-day yield is calculated on the basis of a formula defined by the
SEC. The performance 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 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, which represents the performance
of investment-grade municipal bonds, is compiled by Lehman Brothers, a
well-known global investment bank.
o The unmanaged Lipper Intermediate Municipal Fund 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.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 9/30/00, including sales charges
10 years 5.86%
5 years 4.49
1 year 3.74*
* 4.79% excluding sales charges
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PER- FORMANCE.
RESULTS OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
================================================================================
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
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more
APPEARS HERE] than eight million investors, $183 billion in assets under
management and 59 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I retired as chairman of the AIM Funds effective September 30,
and will step down as chairman of AIM effective December 31, 2000. Bob Graham,
whose picture appears under mine, will succeed me as AIM's chairman and chairman
of the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,500 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent
market activity, how they have managed your fund over the past six months and
their outlook for the coming months. We trust you will find their comments
helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel
privileged to have helped you with your financial goals, and I wish you success
in all your endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Management Group Inc.
AIM TAX-FREE INTERMEDIATE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND CONTINUES TO PROVIDE SOLID INCOME
HOW DID AIM TAX-FREE INTERMEDIATE FUND PERFORM DURING THE REPORTING PERIOD?
For the six months ended September 30, 2000, AIM Tax-Free Intermediate Fund
returned 3.46% at net asset value, that is, without sales charges. By
comparison, the Lehman Municipal Bond Index returned 3.97% and the Lipper
Intermediate Municipal Fund Index returned 3.33% during the same period. Bear in
mind that the fund is managed more for tax-free income than for total return.
At the close of the reporting period, the fund's 30-day distribution rate,
at net asset value, stood at 4.54%, which represented a tax-equivalent yield of
7.52%. The fund's 30-day SEC yield was 4.36% at maximum offering price, for a
taxable-equivalent yield of 7.22%. That tax-equivalent yield represented almost
125% of the yield on a 10-year Treasury note, which stood at 5.80% on September
30.
Net asset value per share remained within a narrow range of $10.46 and
$10.90 during the reporting period, continuing the fund's history of relative
price stability. The fund's total net assets grew from $353.1 million on March
31 to $420.9 million on September 30.
WHAT WERE THE MAJOR TRENDS IN THE BOND MARKETS?
Expressing concern about potentially inflationary pressures, including white-hot
economic growth, a tight labor market and rising energy prices, the Federal
Reserve Board (the Fed) raised short-term interest rates by 0.50% to 6.50% in
mid-May but kept rates steady at its June, August and October (held shortly
after the close of the reporting period) meetings as key economic indicators
suggested that the economy was slowing. While interest-rate concerns hurt
performance in the spring, most bond-market sectors did well for the full
six-month reporting period after it became clear that the Fed's rate hikes may
be nearing an end. That fact, together with attractive yields, restored investor
confidence in the bond market.
The same could not be said of the stock market. As of September 30, many
major stock-market indexes were down year-to-date.
WHAT WERE THE MAJOR TRENDS IN THE MUNICIPAL-BOND MARKET DURING THE REPORTING
PERIOD?
Municipal-bond issuance continued to decline. Year-to-date, total issuance was
$137 billion--19% lower than for the first three quarters of 1999. Many states
and localities were reluctant to offer new issues in a rising-interest-rate
environment. Fortunately for them, increased tax revenue resulting from low
unemployment, strong consumer spending, rising property values and increased
capital gains reduced the need to issue bonds to fund capital projects. Reduced
issuance has resulted in greater demand for (and better performance by)
municipal bonds.
[IMAGE APPEARS HERE]
================================================================================
FUND PERFORMANCE
As of 9/30/00
FUND VS. 10-YEAR U.S. TREASURY NOTE
30-DAY DISTRIBUTION RATE AT NAV 4.54%
TAXABLE-EQUIVALENT DISTRIBUTION RATE AT NAV 7.52%*
30-DAY SEC YIELD AT MAXIMUM OFFERING PRICE 4.36%
TAXABLE-EQUIVALENT 30-DAY SEC YIELD 7.22%*
AT MAXIMUM OFFERING PRICE
10-YEAR U.S. TREASURY NOTE 5.80%
*Assumes highest marginal federal income tax rate of 39.6%.
Sources: Bloomberg, Lehman Brothers.
================================================================================
================================================================================
HISTORY OF NET ASSET VALUE STABILITY
5/11/87-9/30/00
================================================================================
10 5/11/87 9.88 9/90 10.62 3/94 10.97 9/97
9.93 6/87 10.01 12/90 10.61 6/94 11.06 12/97
9.59 9/87 10.07 3/91 10.56 9/94 11.05 3/98
9.79 12/87 10.07 6/91 10.38 12/94 11.04 6/98
9.89 3/88 10.2 9/91 10.67 3/95 11.2 9/98
9.82 6/88 10.33 12/91 10.76 6/95 11.16 12/98
9.86 9/88 10.27 3/92 10.84 9/95 11.13 3/99
9.81 12/88 10.43 6/92 10.92 12/95 10.87 6/99
9.69 3/89 10.55 9/92 10.79 3/96 10.82 9/99
9.94 6/89 10.58 12/92 10.72 6/96 10.68 12/99
9.77 9/89 10.74 3/93 10.74 9/96 10.71 3/00
9.99 12/89 10.87 6/93 10.8 12/96 10.72 6/30/00
9.89 3/90 11.03 9/93 10.73 3/97 10.83 9/29/00
9.93 6/90 11.02 12/93 10.86 6/97
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
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
Given the strength of the economy and the resulting strong revenue flows to
states and localities, municipal credit quality is, on average, at or near all-
time highs.
Yields on municipal bonds relative to Treasuries remained very attractive.
Indeed, as the reporting period drew to a close, many new investment-grade
municipal bonds offered investors tax-equivalent yields that exceeded comparable
Treasury yields. As of September 30, 2000, newly issued 30-year AAA-rated
general obligation bonds were yielding approximately 92.3% of the 30-year
Treasury bond; investment-grade municipal bonds are considered a bargain when
they trade between 78% and 82% of equivalent-maturity Treasuries. Municipal
bonds were one of the best-performing asset classes during the reporting period.
GIVEN CURRENT ECONOMIC CONDITIONS, HOW HAVE YOU MANAGED THE PORTFOLIO?
Over the course of the reporting period, we reduced the portfolio's weighted
average maturity from 6.66 years to 5.43 years. We did this because we
considered bonds with maturities of between five and seven years to be better
values than those with longer maturities. We reduced the portfolio's duration
from 5.21 years to 4.22 years. Duration is an indicator of the sensitivity of a
bond's price to interest-rate changes; funds with shorter durations tend to be
less sensitive to price fluctuations.
WHAT DID THE FUND'S PORTFOLIO LOOK LIKE AT THE CLOSE OF THE REPORTING PERIOD?
The portfolio consisted exclusively of investment-grade bonds. Bonds rated AAA
or AA composed 92.18% of the fund's holdings at the close of the reporting
period. The average credit quality of the fund's portfolio was AA+ as rated by
Standard & Poor's, a widely known credit-rating agency. The ratings are
historical and are based on the credit quality of the individual bonds in the
portfolio. The accompanying chart depicts the allocation of general obligation,
revenue and other types of municipal bonds in the portfolio. At the close of the
reporting period, credit-enhanced securities--those backed by insurance or
escrowed with U.S. Treasury securities--composed more than 61% of the portfolio.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We remain cautiously optimistic about the economy. Recent economic indicators
suggest that Fed rate hikes have begun to slow the economy and lessen the threat
of inflation. But many economists worry about the three Es--high energy prices,
a weak euro (the common currency adopted last year by 11 European nations) and
slowing corporate earnings.
Higher energy prices are, in essence, a tax on consumers and businesses.
Money spent at the gas pump or to power a factory means less discretionary
spending for consumers and reduced earnings for corporations. A weak euro means
that goods sold overseas by American firms are more costly, and European goods
sold in the United States are cheaper. Such a situation, if it continues, could
mean reduced earnings for U.S. companies that export their products overseas.
Municipal Market Advisors, Inc., a municipal-bond investment firm, predicts
that issuance of new municipal bonds for the remainder of 2000 and the first
half of 2001 will remain low. If the federal government continues to buy back
longer-term, higher-coupon Treasuries, fixed-income instruments could remain in
short supply, and prices could continue to appreciate. Regardless, the past six
months have demonstrated that having a portion of one's investments in bonds can
be beneficial during uncertain economic times.
================================================================================
PORTFOLIO COMPOSITION
As of 9/30/00, based on total net assets
<TABLE>
<CAPTION>
TOP FIVE BOND HOLDINGS COUPON MATURITY % OF NET ASSETS
<S> <C> <C> <C>
Texas Association of School Boards 4.75% 08/31/01 2.38%
San Antonio, Texas Electric and Gas 5.25% 02/01/10 2.10%
New Jersey State Transportation 5.50% 06/15/10 1.49%
Trust Fund Authority
Harris County Health Facilities 5.50% 08/01/09 1.35%
Development Corp.
Commonwealth of Massachusetts 5.75% 08/01/08 1.27%
================================================================================
</TABLE>
================================================================================
BOND-TYPE DIVERSIFICATION
[PIE CHART]
<TABLE>
<S> <C> <C>
REVENUE Number of Holdings 278
51.8%
Duration 4.22 years
GENERAL OBLIGATION Weighted Average Maturity 5.43 years
37.3%
Average Quality Rating AA+
ESCROWED AND PRE-REFUNDED
10.9%
</TABLE>
The fund's portfolio is subject to change, and there is no assurance that it
will continue to hold any particular security.
================================================================================
See important fund and index disclosures inside front cover.
AIM TAX-FREE INTERMEDIATE FUND
3
<PAGE> 6
THE AIM FUNDS(SM) RISK SPECTRUM
On the back cover of this fund report, you'll find the funds in the AIM family
divided into the following categories: sector, international/global, domestic,
taxable and tax-free. You'll also notice that the funds in each category are
listed from more aggressive to more conservative.
Within each category of this risk spectrum, we assessed each fund on the
basis of three factors: its holdings, volatility patterns and diversification.
From that assessment, we assigned a degree of risk to each fund and ordered them
accordingly.
Mutual funds typically invest in stocks, bonds or money market instruments,
each with varying levels of potential risk and reward. Generally, the riskier
the investment, the greater the potential reward.
o Stock funds usually offer the most upside potential, but they also carry
the greatest risk. Funds that invest in large, well-established companies
generally have lower risk/reward potential than funds that invest in small,
fast-growing companies.
o Funds that invest in a broad range of industries are considered more
diversified and less risky--and potentially less rewarding--than funds that
invest in a single sector, such as technology.
o Funds that invest in international markets tend to have higher risk/reward
potential than those that invest solely in domestic securities.
o Bond funds are generally considered safer and therefore potentially less
rewarding than stock funds. Funds that invest in U.S. Treasury securities
typically have lower risk/reward potential than funds that invest in
higher-yielding junk bonds.
o Money market funds, while considered extremely safe, typically produce
lower returns than stock and bond funds. Moreover, it is possible that a
money market fund's returns will not keep pace with inflation.
The amount of investment risk you undertake depends on several factors:
your financial objectives, your risk tolerance and your time horizon. Are you
saving for your later years or are you investing to buy a large item, like a car
or a house, soon? Are you a young adult early in your work life, or are you
approaching retirement?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you may need to be more
conservative to meet your goal.
Because these factors change over time, it's a good idea to reassess your
portfolio periodically to make sure it still meets your needs. Your financial
advisor can help you figure out if your portfolio is right where it should be or
if it could use some fine-tuning.
In assessing your investments, remember to keep diversification in mind.
Such a strategy, where you spread your investments over several types of mutual
funds, may help mitigate volatility and/or risk in your portfolio because not
all investments behave the same way at the same time.
AIM has a large selection of mutual funds to choose from. See your
financial advisor for insight into which ones would best fit in your portfolio.
-------------------------------------
THE AMOUNT OF INVESTMENT
RISK YOU UNDERTAKE DEPENDS
ON SEVERAL FACTORS: YOUR
FINANCIAL OBJECTIVES, YOUR
RISK TOLERANCE AND YOUR
TIME HORIZON.
-------------------------------------
FUND RANKINGS ARE RELATIVE TO ONE ANOTHER WITHIN THE AIM FAMILY OF
FUNDS--REGISTERED TRADEMARK--, AND THEY SHOULD NOT BE COMPARED WITH OTHER
INVESTMENTS. THERE IS NO GUARANTEE THAT ANY ONE AIM FUND WILL BE LESS VOLATILE
THAN ANY OTHER. FOR A FULL DISCUSSION OF THE RISKS ASSOCIATED WITH EACH FUND,
PLEASE READ THE FUND'S PROSPECTUS.
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ALABAMA-1.08%
Alabama Special Care
Facilities Financing
Authority (Birmingham
Charity Obligation
Group); Hospital Series
1997 RB 4.95%,
11/01/07(b)(c) NRR Aaa $ 945 $ 955,074
-----------------------------------------------------------------
Alabama State Municipal
Electric Authority;
Power Supply Series 1991
A RB 6.30%, 09/01/01(d) AAA Aaa 400 407,016
-----------------------------------------------------------------
Jefferson (County of)
(School Improvements
Project); Limited Tax
Series 2000 GO 5.05%,
02/15/09(d) AAA Aaa 1,000 1,009,450
-----------------------------------------------------------------
Lauderdale & Florence
(County of) Health Care
Authority (Coffee Health
Group Project);
Unlimited Tax Series
1999 A GO 5.00%,
07/01/07(d) AAA Aaa 1,000 998,790
-----------------------------------------------------------------
McIntosh Alabama
Industrial Development
Board; Environmental
Improvement Series 1998
B RB 4.65%, 06/01/08 AA- A2 1,250 1,175,975
=================================================================
4,546,305
=================================================================
ALASKA-0.66%
Alaska State Housing
Financing Corp.; Series
1991 A-1 RB 4.90%,
12/01/07(d) AAA Aaa 760 765,882
-----------------------------------------------------------------
Anchorage (City of);
Unlimited Tax Series
1994 GO 5.50%,
07/01/06(d) AAA Aaa 1,950 2,022,598
=================================================================
2,788,480
=================================================================
AMERICAN SAMOA-1.06%
American Samoa (Territory
of); Refunding Unlimited
Tax Series 2000 GO
5.50%, 09/01/01(d) A -- 1,010 1,015,202
-----------------------------------------------------------------
5.75%, 09/01/03(d) A -- 1,120 1,137,573
-----------------------------------------------------------------
6.00%, 09/01/06(d) A -- 1,085 1,116,942
-----------------------------------------------------------------
6.00%, 09/01/07(d) A -- 1,150 1,183,937
=================================================================
4,453,654
=================================================================
ARIZONA-3.22%
Arizona State
Transportation Board
(Highway Project);
Refunding Series 1993 A
RB 6.00%, 07/01/08 AA Aa2 800 863,544
-----------------------------------------------------------------
Arizona State
Transportation Board
(Maricopa County
Regional Area Road);
Series 1992 A RB 5.40%,
07/01/01(d) AAA Aaa 1,150 1,159,418
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ARIZONA-(CONTINUED)
Central Arizona Water
Conservation District
(Central Arizona
Project); Series 1991 B
RB 6.20%, 11/01/01(d) AAA Aaa $3,070 $ 3,126,949
-----------------------------------------------------------------
Maricopa County Unified
School District #4 (Mesa
Project of 1995);
Unlimited Tax Series
1998 E GO 5.00%,
07/01/09(d) AAA Aaa 1,900 1,926,638
-----------------------------------------------------------------
Maricopa County Unified
School District #11
(Peoria Project of
1991); Unlimited Tax
Series 1995 GO 5.50%,
07/01/10(d) AAA Aaa 1,365 1,408,898
-----------------------------------------------------------------
Maricopa County Unified
School District #41
(Gilbert Project of
1988); Unlimited Tax
Series 1992 E GO 6.20%,
07/01/02(b) AAA Aaa 1,250 1,286,800
-----------------------------------------------------------------
Mohave County Unified
School District #1 (Lake
Havasu); Unlimited Tax
Series 1996 A GO 5.40%,
07/01/06(d) AAA Aaa 200 207,672
-----------------------------------------------------------------
Navajo County Unified
School District #6
(Herber-Overgaard);
Unlimited Tax Series
1997 A GO 5.00%,
07/01/07(d) AAA Aaa 450 458,213
-----------------------------------------------------------------
Phoenix (City of) Street
and Highway User;
Refunding Sr. Lien
Series 1992 RB 6.20%,
07/01/02 AA A1 1,000 1,028,430
-----------------------------------------------------------------
Tempe (City of) Unified
High School District
#213 (Project of 1989);
Unlimited Tax Series
1992 B GO 5.88%,
07/01/01(b) A+ NRR 1,000 1,020,620
-----------------------------------------------------------------
Yuma Industrial
Development Authority
(Yuma Regional Medical
Center Project);
Refunding Hospital
Series 1997 RB 5.70%,
08/01/06(d) AAA Aaa 1,000 1,046,220
=================================================================
13,533,402
=================================================================
ARKANSAS-1.73%
Arkansas State Development
Finance Authority;
Correction Facility
Series 1996 RB 6.25%,
10/01/06(b) AAA Aaa 1,800 1,941,300
-----------------------------------------------------------------
</TABLE>
4
<PAGE> 8
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ARKANSAS-(CONTINUED)
Arkansas State Development
Finance Authority, State
Agencies Facilities
(Department Correction
Project); Series 1999 A
RB 4.50%, 11/01/01 AAA Aaa $1,190 $ 1,191,071
-----------------------------------------------------------------
5.00%, 11/01/05(d) AAA Aaa 1,125 1,142,066
-----------------------------------------------------------------
Little Rock (City of)
Health Facility Board
(Baptist Medical
Center); Refunding
Hospital Series 1991 RB
6.70%, 11/01/04(d) AAA Aaa 1,400 1,485,162
-----------------------------------------------------------------
North Little Rock (City
of); Refunding Electric
Series 1992 A RB 6.00%,
07/01/01(d) AAA Aaa 500 506,085
-----------------------------------------------------------------
Sebastian (County of)
(Arkansas Community
Junior College
District); Refunding and
Improvement Limited Tax
Series 1997 GO 5.20%,
04/01/07(d) AAA Aaa 1,000 1,022,080
=================================================================
7,287,764
=================================================================
CALIFORNIA-0.41%
Folsom (City of) (School
Facilities Project);
Unlimited Tax Series
1994 B GO 6.00%,
08/01/02(d) AAA Aaa 500 516,505
-----------------------------------------------------------------
Inglewood (City of)
(Daniel Freeman Hospital
Inc.); Insured Hospital
Series 1991 RB 6.50%,
05/01/01(b) NRR NRR 400 405,956
-----------------------------------------------------------------
San Francisco (City and
County of) Parking
Authority; Parking Meter
Series 1994 RB 6.75%,
06/01/05(d) AAA Aaa 500 550,735
-----------------------------------------------------------------
West End Water Treatment
and Conservation Joint
Powers Authority; Water
Facilities Series 1990
COP 7.00%, 10/01/00(b) NRR NRR 250 250,000
=================================================================
1,723,196
=================================================================
COLORADO-1.19%
Boulder (County of); Open
Space Capital
Improvement Trust Fund
Series 1998 RB 5.25%,
12/15/09 AA- -- 1,000 1,027,080
-----------------------------------------------------------------
Colorado Department of
Transportation; Series
2000 RAN 6.00%,
06/15/06(d) AAA Aaa 1,000 1,065,260
-----------------------------------------------------------------
Denver (City and County
of) (Variable Purpose);
Unlimited Tax Series
2000 GO 5.50%, 08/01/01 AA+ Aa2 1,425 1,437,127
-----------------------------------------------------------------
Denver (City and County
of) School District #1;
Unlimited Tax Series
1990 A GO 9.40%,
12/15/00 A Aa3 1,450 1,463,644
-----------------------------------------------------------------
4,993,111
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
CONNECTICUT-1.88%
Connecticut (State of)
Development Authority
(Corporate Independent
Living Project); VRD
Health Care Series 1990
RB (LOC-Chase Manhattan
Bank) 5.40%, 07/01/15(e) -- -- $1,058 $ 1,058,000
-----------------------------------------------------------------
Connecticut (State of)
Residential Recovery
Authority (Bridgeport
Resco Co. LP Project);
Refunding Series 1999 RB
5.13%, 01/01/09(d) AAA Aaa 1,000 1,018,420
-----------------------------------------------------------------
Connecticut (State of)
Special Tax Obligation
(2nd Lien Transportation
Infrastructure-1); VRD
Series 1990 RB 5.40%,
12/01/10(e) A-1+ VMIG1 3,675 3,675,000
-----------------------------------------------------------------
New Haven (City of);
Unlimited Tax Series
1997 GO 6.00%,
02/15/06(d) AAA Aaa 2,050 2,178,925
=================================================================
7,930,345
=================================================================
DELAWARE-1.73%
Delaware (State of)
Economic Development
Authority (Delmarva
Power & Light Co.);
Refunding Facilities
Series 2000 C RB 5.50%,
07/01/10 A- A3 2,045 2,072,526
-----------------------------------------------------------------
Delaware Transportation
Authority; Senior Lien
Transportation System
Series 1991 RB 6.00%,
07/01/01(b) AAA Aaa 750 759,037
-----------------------------------------------------------------
University of Delaware;
VRD Series 1998 RB
5.60%, 11/01/23(e) AA+ -- 4,435 4,435,000
=================================================================
7,266,563
=================================================================
DISTRICT OF COLUMBIA-3.42%
District of Columbia;
Refunding Unlimited Tax
GO Series 1993 B-2,
5.50%, 06/01/07(d) AAA Aaa 3,000 3,107,880
-----------------------------------------------------------------
Series 1999 B, 5.50%,
06/01/09(d) AAA Aaa 5,000 5,180,700
-----------------------------------------------------------------
Series 1993 B-1, 5.50%,
06/01/09(d) AAA Aaa 1,250 1,295,175
-----------------------------------------------------------------
District of Columbia;
Unlimited Tax Series
1992 B GO 6.13%,
06/01/02(b) AAA Aaa 60 62,632
-----------------------------------------------------------------
</TABLE>
5
<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
(American Association of
Advancement Science);
Refunding Series 1997 RB
5.00%, 01/01/05(d) AAA Aaa $ 800 $ 808,768
-----------------------------------------------------------------
District of Columbia
(Gonzaga College High
School); Series 1999 RB
5.25%, 07/01/08(d) AAA Aaa 500 512,095
-----------------------------------------------------------------
5.25%, 07/01/09(d) AAA Aaa 510 519,986
-----------------------------------------------------------------
District of Columbia (The
Howard University
Issue); Series 1990 A RB
6.90%, 10/01/00(b) AAA NRR 200 200,000
-----------------------------------------------------------------
District of Columbia
(Medlantic Healthcare
Group); Refunding
Hospital Series A RB
Series 1993, 5.50%,
08/15/06(b) AAA Aaa 500 519,745
-----------------------------------------------------------------
Series 1996, 6.00%,
08/15/06(b) AAA Aaa 1,550 1,650,487
-----------------------------------------------------------------
Series 1997, 6.00%,
08/15/07(b) AAA Aaa 500 535,305
=================================================================
14,392,773
=================================================================
FLORIDA-1.94%
Broward (County of)
Expressway Authority;
Refunding Unlimited Tax
Series 1986 A GO 6.50%,
07/01/04 AA+ Aa2 1,000 1,001,920
-----------------------------------------------------------------
Crossings at Fleming
Island Community
Development District;
Refunding Special
Assessment Series 2000 B
RB 4.95%, 05/01/02(d) AAA Aaa 870 876,647
-----------------------------------------------------------------
Florida State Board of
Education; Lottery
Series 2000 B RB 5.75%,
07/01/10(d) AAA Aaa 1,000 1,066,730
-----------------------------------------------------------------
Miami Beach (City of)
Health Facilities
Authority (South Shore
Hospital); Refunding
Hospital Series 1998 A
RB 4.80%, 08/01/08 A -- 1,000 951,950
-----------------------------------------------------------------
Palm Beach (County of)
Solid Waste Authority;
Refunding Series 1997 A
RB 5.50%, 10/01/06(d) AAA Aaa 3,000 3,125,640
-----------------------------------------------------------------
Village Center Community
Development District;
Refunding Recreational
Series 1998 A RB 5.50%,
11/01/10(d) AAA Aaa 1,105 1,154,493
=================================================================
8,177,380
=================================================================
GEORGIA-3.30%
Albany (City of) Sewer
System; Series 1992 RB
6.30%, 07/01/02(b) AAA Aaa 500 515,380
-----------------------------------------------------------------
Cobb-Marietta Coliseum and
Exhibit Hall Authority;
Series 1991 RB 6.75%,
10/01/01(b) AAA Aaa 1,000 1,042,510
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
GEORGIA-(CONTINUED)
Dalton Utilities; Series
1999 RB 5.75%,
01/01/10(d) AAA Aaa $1,015 $ 1,078,417
-----------------------------------------------------------------
De Kalb Private Hospital
Authority (Egleston
Children's Hospital);
VRD Hospital Series 1994
RAC (LOC-Suntrust Bank)
5.45%, 03/01/24(e) AA- Aa3 1,254 1,254,000
-----------------------------------------------------------------
Fulton (County of) Water
and Sewer; Refunding
Series 1992 RB 5.75%,
01/01/02(d) AAA Aaa 715 725,811
-----------------------------------------------------------------
Georgia State; Unlimited
Tax GO Series 1998 C
5.75%, 09/01/01 AAA Aaa 5,000 5,062,800
-----------------------------------------------------------------
Series 1992 B 6.30%,
03/01/09 AAA Aaa 1,425 1,571,376
-----------------------------------------------------------------
Series 1992 B 6.30%,
03/01/10 AAA Aaa 1,000 1,107,650
-----------------------------------------------------------------
Georgia State Municipal
Electric Authority;
Series 1991 V RB 6.00%,
01/01/01(b) AAA Aaa 1,000 1,003,740
-----------------------------------------------------------------
Metropolitan Atlanta Rapid
Transportation
Authority; Refunding
Sales Tax Series 1991 M
RB 6.15%, 07/01/02 AA- A1 500 514,220
=================================================================
13,875,904
=================================================================
HAWAII-1.95%
Hawaii (State of);
Refunding Unlimited Tax
Series 1997 GO 5.00%,
10/01/01(d) AAA Aaa 3,180 3,197,999
-----------------------------------------------------------------
Hawaii (State of);
Refunding Unlimited Tax
Series 1993 GO 5.75%,
01/01/10(d) AAA Aaa 1,000 1,057,910
-----------------------------------------------------------------
Hawaii (State of);
(Kapolei State Office
Building); Series 1998 A
COP 4.50%, 05/01/09(d) AAA Aaa 2,725 2,654,913
-----------------------------------------------------------------
Honolulu (City and County
of); Unlimited Tax
Series 1994 B GO 6.00%,
06/01/04(b) AAA Aaa 1,230 1,298,548
=================================================================
8,209,370
=================================================================
IDAHO-0.13%
Idaho Housing Agency;
Single Family Mortgage
Sub. Series 1994 D-1 RB
5.90%, 07/01/06 -- Aa2 520 548,631
=================================================================
ILLINOIS-8.39%
Chicago (City of); Limited
Tax Series 1997 GO
6.00%, 01/01/06(b) AAA Aaa 350 370,891
-----------------------------------------------------------------
6.00%, 01/01/06(d) AAA Aaa 150 158,456
-----------------------------------------------------------------
Chicago (City of)
Distribution Package
Facility; Series 1999 RB
5.25%, 01/01/05(d) A Baa1 2,500 2,523,425
-----------------------------------------------------------------
</TABLE>
6
<PAGE> 10
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Chicago (City of) Midway
Airport; Series 1996 A
RB 5.30%, 01/01/08(d) AAA Aaa $1,000 $ 1,025,900
-----------------------------------------------------------------
Chicago (City of) Park
District; Refunding
Unlimited Tax Series
1995 GO 6.00%,
01/01/07(d) AAA Aaa 2,000 2,125,740
-----------------------------------------------------------------
Cook (County of);
Unlimited Tax Series
1991 GO 6.75%,
11/01/01(b) AAA Aaa 2,500 2,609,175
-----------------------------------------------------------------
Elk Grove Park District;
Unlimited Tax Series
1992 GO 6.45%,
04/01/02(b) AAA Aaa 1,140 1,171,726
-----------------------------------------------------------------
Hoffman Estates
Multifamily Housing
(Park Place Apartments
Project); Refunding
Series 1996 RB 5.75%,
06/01/06(d) AAA -- 1,400 1,447,278
-----------------------------------------------------------------
Hoffman Estates Tax
Increment (Economic
Development Project);
Refunding Series 1997 RB
5.00%, 11/15/06(d) AAA Aaa 2,500 2,521,125
-----------------------------------------------------------------
Illinois Development
Finance Authority
(Adventist Health);
Series 1997 A RB 5.25%,
11/15/02(d) AAA Aaa 1,315 1,331,963
-----------------------------------------------------------------
Illinois Development
Finance Authority
(American College of
Surgeons); VRD Series
1996 RB (LOC-Northern
Trust Co.) 5.60%,
08/01/26(e) A-1+ -- 2,810 2,810,000
-----------------------------------------------------------------
Illinois Development
Finance Authority
(Citizens Utility
Company Project); Series
1997 RB 4.80%, 08/01/25 A+ -- 1,000 963,020
-----------------------------------------------------------------
Illinois Educational
Facilities Authority
(MJH Educational
Assistance); Series 1999
B RB 4.63%, 09/01/04(b) AAA Aaa 350 349,738
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Children's
Memorial Hospital);
Series 1999 A RB 5.50%,
08/15/07(d) AAA Aaa 1,580 1,626,247
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Edward
Obligated Group); Series
1997 A RB 4.90%,
02/15/08(d) AAA Aaa 835 830,366
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Highland Park
Hospital); Series 1991 A
RB 5.55%, 10/01/06(d) AAA Aaa 500 517,485
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Revolving
Fund Pooled); VRD Series
1985 D RB 5.50%,
08/01/15(e) A+ Aa2 4,850 4,850,000
-----------------------------------------------------------------
Illinois Health Facilities
Authority (The Carle
Foundation); Series 1998
A RB 5.25%, 07/01/09(b) AAA Aaa 1,000 1,012,500
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois Regional
Transportation
Authority; Series 1994 B
RB 6.30%, 06/01/04(b) AAA Aaa $1,000 $ 1,073,150
-----------------------------------------------------------------
Illinois (State of); Sales
Tax Series 2000 RB
5.50%, 06/15/01 AAA Aa2 2,250 2,267,280
-----------------------------------------------------------------
Illinois (State of)
Partners (Departmental
Central Management
Services); Series 1999
COP 4.90%, 07/01/08(d) AAA Aaa 1,000 1,000,560
-----------------------------------------------------------------
Joliet (City of)
Waterworks and Sewer;
Series 1989 RB 6.95%,
01/01/01(d) AAA Aaa 250 251,510
-----------------------------------------------------------------
McHenry (County of) School
District #47 (Crystal
Lake); Unlimited Tax
Series 1999 GO 5.13%,
02/01/10(d) -- Aaa 1,250 1,262,987
-----------------------------------------------------------------
Warrenville (City of) Tax
Increment; Series 2000
RB 5.25%, 05/01/07(d) AAA -- 1,170 1,198,022
=================================================================
35,298,544
=================================================================
INDIANA-2.34%
Hamilton (County of);
Optional Income Tax
Revenue Series 1998 RB
5.00%, 07/10/08(d) AAA Aaa 1,095 1,107,560
-----------------------------------------------------------------
Indiana Health Facilities
Financing Authority
(Charity Obligated
Group); VRD Series 1997
D RB 5.00%,
11/01/07(b)(e) NRR NRR 3,260 3,280,147
-----------------------------------------------------------------
Indiana Municipal Power
Agency (Power Supply
System); Refunding
Special Obligation
1st-Crossover Series
1998 B RB 4.80%,
01/01/09(d) AAA Aaa 2,000 1,986,420
-----------------------------------------------------------------
Indiana Transportation
Finance Authority;
Airport Facilities Lease
Series 1992 A RB 6.00%,
11/01/01 AA A1 500 507,975
-----------------------------------------------------------------
Indiana Transportation
Finance Authority;
Highway Series 1993 A RB
5.50%, 06/01/07(d) AAA Aaa 1,000 1,041,740
-----------------------------------------------------------------
Indianapolis (City of);
Local Public Improvement
Series 1999 D RB 5.10%,
01/01/09 AAA Aaa 425 431,825
-----------------------------------------------------------------
Warren (Township)
Independent School
Building Corp; Refunding
First Mortgage Series
1998 RB 4.50%,
01/05/03(d) AAA Aaa 1,500 1,497,045
=================================================================
9,852,712
=================================================================
</TABLE>
7
<PAGE> 11
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
IOWA-0.42%
Des Moines (City of);
Unlimited Tax Series
2000 D GO 5.00%,
06/01/03 AA+ Aa2 $ 745 $ 753,262
-----------------------------------------------------------------
Muscatine (City of);
Refunding Electric
Series 1986 RB 5.00%,
01/01/08 A A3 1,000 993,930
=================================================================
1,747,192
=================================================================
KANSAS-0.06%
Burlington (City of)
Environmental
Improvement (Kansas City
Power and Light Co.
Project); Refunding
Series 1998 D RB 4.35%,
09/01/01(d) A1 A2 250 249,420
=================================================================
KENTUCKY-0.22%
Carrollton and Henderson
Public Energy Authority;
Gas Series 1998 B RB
4.20%, 01/01/06(d) AAA Aaa 1,000 935,670
=================================================================
LOUISIANA-2.18%
Jefferson Parish School
Board; Sales and Use Tax
Series 1995 RB 6.00%,
02/01/04(d) AAA Aaa 1,720 1,792,257
-----------------------------------------------------------------
Louisiana (State of);
Unlimited Tax Series
1993 A GO 6.00%,
04/15/07(d) AAA Aaa 5,000 5,330,000
-----------------------------------------------------------------
Louisiana (State of)
Offshore Terminal
Authority (Loop, Inc.);
Refunding Deepwater Port
1st Stage Series 1992 B
RB 6.00%, 09/01/01 A A3 1,000 1,011,310
-----------------------------------------------------------------
6.20%, 09/01/03 A A3 1,000 1,028,780
=================================================================
9,162,347
=================================================================
MASSACHUSETTS-3.86%
Massachusetts (State of);
Consumer Lien Unlimited
Tax Series 2000 A GO
5.75%, 02/01/09 AA- Aa2 5,000 5,311,900
-----------------------------------------------------------------
Massachusetts (State of);
Refunding Limited Tax GO
Series 1993 C 4.95%,
08/01/05(d) AAA Aaa 5,000 5,089,800
-----------------------------------------------------------------
Series 1997 A 5.75%,
08/01/08(d) AAA Aaa 5,000 5,333,300
-----------------------------------------------------------------
Massachusetts (State of)
Health and Educational
Facilities Authority
(Eye and Ear Infirmary);
Refunding Series 1998 B
RB 5.00%, 07/01/05 A -- 500 498,710
=================================================================
16,233,710
=================================================================
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MICHIGAN-4.40%
Dearborn (City of)
Economic Development
Corp.
(Oakwood Obligated
Group);
Hospital Series 1991 A
RB
6.95%, 08/15/01(b) AAA Aaa $1,000 $ 1,041,270
-----------------------------------------------------------------
Detroit (City of);
Refunding Unlimited Tax
GO Series 1995 B 6.25%,
04/01/09(d) AAA Aaa 4,065 4,333,453
-----------------------------------------------------------------
Series 1997 B 5.38%,
04/01/10(d) AAA Aaa 1,630 1,684,393
-----------------------------------------------------------------
Detroit (City of) School
District; Unlimited Tax
Series 1992 GO 5.60%,
05/01/01 AA+ Aa2 765 770,416
-----------------------------------------------------------------
Frankenmuth (City of)
School District;
Unlimited Tax Series
2000 GO 5.50%, 05/01/10 AAA Aa1 250 259,987
-----------------------------------------------------------------
Michigan State Building
Authority (Facilities
Program); Series 1997 II
RB 5.00%, 10/15/01 AA+ Aa2 1,000 1,006,370
-----------------------------------------------------------------
Michigan State Building
Authority; Refunding
Series 1991 I RB 6.40%,
10/01/04 AA Aa2 2,000 2,074,920
-----------------------------------------------------------------
Michigan State Hospital
Finance Authority
(Ascension Health
Credit); Series 1999 B
RB 5.20%, 11/15/05(b) NRR NRR 4,000 4,019,360
-----------------------------------------------------------------
Michigan State Hospital
Finance Authority (Bay
Medical Center);
Refunding Series 1997 A
RB 5.00%, 07/01/02(d) AAA Aaa 1,000 1,007,220
-----------------------------------------------------------------
Western Michigan
University; Series 1991
A RB 6.50%, 07/15/01(b) AAA Aaa 2,250 2,330,595
=================================================================
18,527,984
=================================================================
MINNESOTA-0.99%
Minneapolis (City of)
Special School District
#1; Unlimited Tax Series
1997 GO 5.00%, 02/01/10 AA+ Aa1 1,000 1,005,970
-----------------------------------------------------------------
Ramsey (County of)
(Capital Improvement);
Refunding Unlimited Tax
Series 1992 C GO 5.50%,
12/01/03 AA+ Aaa 1,725 1,777,198
-----------------------------------------------------------------
St. Cloud Health Care (St.
Cloud Hospital
Obligation Group);
Series 2000 A RB 5.50%,
05/01/06 -- Aaa 600 620,604
-----------------------------------------------------------------
Southern Minnesota
Municipal Power Agency;
Power Supply System
Series 1992 A RB 5.60%,
01/01/04 A+ A2 745 765,786
=================================================================
4,169,558
=================================================================
</TABLE>
8
<PAGE> 12
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
MISSOURI-0.34%
Missouri (State of) Health
and Educational
Facilities Authority
(Freeman Health Systems
Project); Hospital
Series 1998 RB 4.85%,
02/15/07(d) A -- $1,000 $ 953,030
-----------------------------------------------------------------
5.00%, 02/15/08(d) A -- 515 492,340
=================================================================
1,445,370
=================================================================
MONTANA-0.10%
Montana (State of) Higher
Education Assistance
Corp.; Student Loan
Series 1992 A RB 6.60%,
12/01/00 -- A 420 421,109
=================================================================
NEVADA-0.47%
Clark (County of)
Improvement District #65
(Lamb Boulevard III);
Special Assessment
Series 1992 6.20%,
12/01/02 AA A1 120 123,877
-----------------------------------------------------------------
Nevada (State of) Capital
Improvement and Cultural
Affairs; Limited Tax
Series 1999 A GO 5.00%,
02/01/10 AA Aa2 1,500 1,505,445
-----------------------------------------------------------------
Nevada (State of)
Municipal Bond Bank
Project #38-39; Limited
Tax Series 1992 A GO
6.00%, 07/01/01(b) NRR NRR 350 354,015
=================================================================
1,983,337
=================================================================
NEW JERSEY-1.61%
New Jersey State
Transportation Trust
Fund Authority
(Transportation System);
Series 1999 A RB 5.50%,
06/15/10 AA Aa2 6,000 6,270,060
-----------------------------------------------------------------
Trenton (City of);
Unlimited Tax Series
1992 GO 6.10%,
08/15/02(d) AAA Aaa 500 515,655
=================================================================
6,785,715
=================================================================
NEW MEXICO-0.12%
Santa Fe (City of); Series
1994 A RB 5.50%,
06/01/03(b) AAA Aaa 500 511,860
=================================================================
NEW YORK-7.17%
Nassau (County of);
Unlimited Tax General
Improvement GO Series
2000 E, 5.25%,
03/01/05(d) AAA Aaa 3,000 3,072,060
-----------------------------------------------------------------
Series 1997 V, 5.15%,
03/01/07(d) AAA Aaa 2,500 2,553,200
-----------------------------------------------------------------
New York (City of);
Refunding Series 1996 D
GO 5.60%, 11/01/05 A- A2 5,000 5,203,200
-----------------------------------------------------------------
New York (City of);
Unlimited Tax Series
1996 G GO 5.90%,
02/01/05 A- A2 1,150 1,203,809
-----------------------------------------------------------------
</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) Transit
Authority (Metropolitan
Transportation
Authority); Triborough
Series 1999 A COP 5.00%,
01/01/08(d) AAA Aaa $1,000 $ 1,015,710
-----------------------------------------------------------------
New York (State of)
Dormitory Authority
(Frances Schervier
Obligation Group);
Series 1997 RB 5.50%,
07/01/10(d) AAA Aaa 1,205 1,256,586
-----------------------------------------------------------------
New York (State of)
Dormitory Authority;
Mental Health Facilities
Series 1997 A RB 6.00%,
02/15/05 A A3 1,000 1,049,080
-----------------------------------------------------------------
6.00%, 08/15/07 A A3 1,775 1,888,582
-----------------------------------------------------------------
New York (State of)
Dormitory Authority
(Pace University Issue);
Refunding Series 1997 RB
6.00%, 07/01/07(d) AAA Aaa 1,275 1,371,237
-----------------------------------------------------------------
New York (State of)
Dormitory Authority
(Upstate Community
Colleges); Series 1999 A
RB 4.38%, 07/01/09(d) AAA Aaa 1,000 961,300
-----------------------------------------------------------------
New York (State of) Local
Government Assistance
Corp.; Refunding Series
1996 A RB 5.13%,
04/01/10(d) AAA Aaa 5,000 5,087,800
-----------------------------------------------------------------
New York (State of)
Medical Care Facilities
(Hospital and Nursing
Home); Refunding
Financial Agency Series
1995 A RB 5.60%,
02/15/05(d) AAA -- 320 321,078
-----------------------------------------------------------------
New York (State of)
Tollway Authority;
General Series 1997 D RB
5.40%, 01/01/10 AA- Aa3 5,000 5,177,750
=================================================================
30,161,392
=================================================================
NORTH CAROLINA-4.05%
Charlotte (City of);
Refunding Unlimited Tax
Series 1998 GO 5.25%,
02/01/10 AAA Aaa 5,000 5,159,600
-----------------------------------------------------------------
Johnston (County of);
Unlimited Tax Series
1997 GO 4.90%,
05/01/01(d) AAA Aaa 1,000 1,003,230
-----------------------------------------------------------------
North Carolina (State of)
Eastern Municipal Power
Agency (Power System);
Refunding Series 1993 B
RB 7.00%, 01/01/08(d) AAA Aaa 1,000 1,120,870
-----------------------------------------------------------------
North Carolina (State of)
Municipal Power Agency
#1 (Catawba Electric);
Series 1999 A RB 6.00%,
01/01/07(d) AAA Aaa 4,330 4,616,646
-----------------------------------------------------------------
</TABLE>
9
<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)
(Public Improvement);
Unlimited Tax Series
1999 A GO 5.25%,
03/01/10 AAA Aaa $5,000 $ 5,164,700
=================================================================
17,065,046
=================================================================
NORTH DAKOTA-0.41%
Burleigh (County of)
Health Care (Medcenter
One Inc.); Refunding
Series 1999 RB 5.25%,
05/01/09(d) AAA Aaa 1,695 1,723,001
=================================================================
OHIO-2.85%
Franklin (County of);
Limited Tax Series 1991
GO 6.30%, 12/01/01(b) NRR NRR 1,500 1,560,525
-----------------------------------------------------------------
Greene (County of) Water
System; Series 1996 A RB
5.45%, 12/01/06(d) AAA Aaa 585 610,091
-----------------------------------------------------------------
Hilliard (City of) School
District; Refunding
Unlimited Tax Series
1992 GO 6.05%,
12/01/00(d) AAA Aaa 500 501,395
-----------------------------------------------------------------
6.15%, 12/01/01(d) AAA Aaa 250 254,900
-----------------------------------------------------------------
Montgomery (County of)
(Catholic Health
Initiatives); Series
2000 RB 5.25%, 12/01/03 AA- Aa3 1,745 1,761,019
-----------------------------------------------------------------
Ohio (State of)
(Elementary & Secondary
Education Facilities);
Special Obligation
Series 1997 A RB 5.10%,
12/01/05 AA- Aa2 1,500 1,535,385
-----------------------------------------------------------------
Ohio State Public
Facilities Community
(Mental Health
Facilities); Series 1998
II-A RB 4.50%,
06/01/01(d) AAA Aaa 5,300 5,303,498
-----------------------------------------------------------------
Portage (County of)
(Robinson Memorial
Hospital); Hospital
Series 1999 RB 5.15%,
11/15/08(d) AAA Aaa 465 473,616
=================================================================
12,000,429
=================================================================
OKLAHOMA-1.96%
Claremore (City of) Public
Works Authority;
Refunding Capital
Improvement Series 2000
RB 6.00%, 06/01/05(d) -- Aaa 2,285 2,423,494
-----------------------------------------------------------------
Grady (County of)
Industrial Authority
(Correctional
Facilities); Series 1999
RB 5.38%, 11/01/09(d) AAA Aaa 360 374,533
-----------------------------------------------------------------
Grand River Dam Authority;
Refunding Series 1993 RB
5.50%, 06/01/09(d) AAA Aaa 2,000 2,102,440
-----------------------------------------------------------------
Mustang (City of)
Improvement Authority;
Utility Series 1999 RB
5.25%, 10/01/09(d) -- Aaa 1,130 1,165,109
-----------------------------------------------------------------
Norman (City of) Regional
Hospital Authority;
Refunding Series 1996 A
RB 5.30%, 09/01/07(d) AAA Aaa 1,090 1,121,032
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
OKLAHOMA-(CONTINUED)
Okmulgee (County of)
Governmental Building
(Authority Sales Tax);
1st Mortgage Series 2000
RB 5.60%, 03/01/10(d) -- Aaa $1,000 $ 1,056,850
=================================================================
8,243,458
=================================================================
OREGON-0.95%
Cow Creek Band (Umpqua
Tribe of Indians);
Series 1998 B RB 4.25%,
07/01/03(d) AAA Aaa 315 312,115
-----------------------------------------------------------------
Grande Ronde (City of)
Community Confederated
Tribes (Governmental
Facilities and
Infrastructure);
Unlimited Tax Series
1997 GO 5.00%,
12/01/07(d) AAA Aaa 1,145 1,166,297
-----------------------------------------------------------------
Portland (City of); Sewer
System Series 1994 A RB
5.45%, 06/01/03 A+ A1 1,065 1,087,876
-----------------------------------------------------------------
5.55%, 06/01/04 A+ A1 500 515,285
-----------------------------------------------------------------
Salem (City of) Hospital
Facilities Authority
(Salem Hospital); Series
1998 RB 4.20%, 08/15/08 AA- -- 1,000 917,480
=================================================================
3,999,053
=================================================================
PENNSYLVANIA-2.75%
Lehigh (County of) General
Purpose Authority
(Kidspeace Obligation
Group); Series 1998 RB
5.70%, 11/01/09(d) A -- 1,000 1,007,700
-----------------------------------------------------------------
Pennsylvania (State of);
Series 2000 RB 5.50%,
01/15/08(d) AAA Aaa 1,000 1,043,750
-----------------------------------------------------------------
Pennsylvania (State of)
Higher Educational
Facilities Authority;
Series 1999 RB 4.50%,
07/01/08(d) AAA Aaa 1,525 1,482,422
-----------------------------------------------------------------
4.55%, 07/01/09(d) AAA Aaa 750 733,552
-----------------------------------------------------------------
Pennsylvania (State of)
Industrial Development
Authority (Economic
Development); Series
1991 A RB 7.00%,
07/01/01(b) AAA NRR 1,000 1,038,410
-----------------------------------------------------------------
Philadelphia (City of)
School District;
Refunding Unlimited Tax
Series 1999 D GO 5.50%,
03/01/08(d) AAA Aaa 2,000 2,085,060
-----------------------------------------------------------------
Philadelphia (City of)
Water and Waste Trust;
Series 1993 RB 5.50%,
06/15/07(d) AAA Aaa 2,050 2,137,166
-----------------------------------------------------------------
</TABLE>
10
<PAGE> 14
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA-(CONTINUED)
Trinity Area School
District; Unlimited Tax
Series 1991 GO 6.63%,
11/01/01(b) AAA Aaa $2,000 $ 2,047,200
=================================================================
11,575,260
=================================================================
RHODE ISLAND-0.25%
Rhode Island (State of);
Refunding Unlimited Tax
Series 1992 A GO 6.10%,
06/15/03(d) AAA Aaa 1,000 1,039,360
=================================================================
SOUTH CAROLINA-2.18%
Medical University of
South Carolina; Hospital
Facilities Series 1999
RB 5.50%, 07/01/09 A A3 1,000 982,240
-----------------------------------------------------------------
Piedmont (City of)
Municipal Power Agency;
Refunding Series 1996 B
RB 5.25%, 01/01/08(d) AAA Aaa 4,000 4,089,080
-----------------------------------------------------------------
South Carolina (State of)
Public Service
Authority; Series 1999 A
RB 5.50%, 01/01/10(d) AAA Aaa 1,000 1,041,070
-----------------------------------------------------------------
South Carolina (State of)
Transportation
Infrastructure; RB
Series 1998 A, 5.00%,
10/01/04(d) AAA Aaa 1,795 1,820,902
-----------------------------------------------------------------
Series 1999 A, 5.50%,
10/01/09(d) -- Aaa 1,180 1,230,115
=================================================================
9,163,407
=================================================================
SOUTH DAKOTA-0.47%
Rapid City (City of);
Sales Tax Series 1995 A
RB 5.60%, 06/01/05(d) AAA Aaa 255 264,807
-----------------------------------------------------------------
South Dakota Health and
Educational Facility
(McKennan Hospital);
Refunding Series 1996 RB
5.40%, 07/01/06(d) AAA Aaa 1,680 1,721,463
=================================================================
1,986,270
=================================================================
TENNESSEE-2.29%
Bristol Health and
Educational Facilities
Board (Bristol Memorial
Hospital); Series 1991
RB 7.00%, 03/01/01(b) AAA Aaa 1,750 1,802,798
-----------------------------------------------------------------
Johnson (City of) Health
and Educational
Facilities Board;
Refunding Hospital
Series 2000 A RB 5.50%,
07/01/05(d) -- Aaa 1,975 2,031,998
-----------------------------------------------------------------
Memphis (City of) Sanitary
Sewer System; Series
2000 RB 5.35%, 05/01/09 AA+ Aa2 525 544,336
-----------------------------------------------------------------
Nashville and Davidson
(County of) Health and
Educational Facilities
Board (Welch Bend
Apartments); Multifamily
Housing Series 1996 A RB
5.50%, 01/01/07(b) AAA NRR 1,000 1,028,600
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TENNESSEE-(CONTINUED)
Nashville and Davidson
(County of) Metropolitan
Government Health and
Educational Facilities
Board (Meharry Medical
College); Series 1979 RB
7.88%, 12/01/04(b) NRR Aaa $ 720 $ 768,946
-----------------------------------------------------------------
Tennergy Corp.; Gas Series
1999 RB 4.13%,
06/01/09(d) AAA Aaa 1,000 881,820
-----------------------------------------------------------------
Tennessee Housing
Development Agency;
Mortgage Financing
Refunding Series 1993 A
RB 5.65%, 01/01/07 AA A1 1,325 1,360,841
-----------------------------------------------------------------
Tennessee (State of);
Unlimited Tax Series
1994 A GO 5.60%,
03/01/04(b) NRR NRR 1,150 1,201,359
=================================================================
9,620,698
=================================================================
TEXAS-16.43%
Amarillo (City of) Health
Facilities Corp.
(Baptist St. Anthony's
Hospital); Series 1998
RB 5.50%, 01/01/10(d) -- Aaa 1,275 1,317,802
-----------------------------------------------------------------
Arlington (City of)
Independent School
District; Unlimited Tax
Series 2000 GO 5.25%,
02/15/08(d) -- Aaa 1,000 1,027,580
-----------------------------------------------------------------
Bexar (County of) Housing
Finance Authority
(Fountainhead Apts.);
Refunding VRD
Multifamily Series 1996
RB 5.55%, 09/15/26(e) A-1+ -- 4,109 4,109,000
-----------------------------------------------------------------
Canadian River Municipal
Water Authority
(Conjunctive Use
Groundwater); Refunding
Texas Contract Series
1999 RB 5.00%,
02/15/10(d) AAA Aaa 2,655 2,660,230
-----------------------------------------------------------------
Carroll (City of)
Independent School
District; Unlimited Tax
Series 2000 A GO 5.00%,
02/15/01(d) AAA Aaa 1,750 1,754,463
-----------------------------------------------------------------
Central Texas College
District; Building
Series 1999 RB 4.63%,
05/15/09(d) AAA Aaa 1,135 1,113,219
-----------------------------------------------------------------
Conroe (City of)
Independent School
District; Unlimited
School Tax Series 1991
GO 7.38%, 02/01/01(d) -- Aaa 115 116,113
-----------------------------------------------------------------
Dallas (City of)
Waterworks and Sewer
System; Refunding Series
2000 RB 5.50%, 10/01/09 AA Aa2 1,500 1,565,925
-----------------------------------------------------------------
</TABLE>
11
<PAGE> 15
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Gatesville Independent
School District;
Refunding Unlimited Tax
School and Building
Series 1995 GO 5.80%,
02/01/03(d) -- Aaa $ 485 $ 498,304
-----------------------------------------------------------------
Harris (County of) (Port
of Houston Authority);
Series 1977 RB 5.75%,
05/01/02 A A2 575 582,015
-----------------------------------------------------------------
5.75%, 05/01/02(d) AAA Aaa 555 558,325
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Christus Health);
Series 1999 A RB 5.38%,
07/01/08(d) AAA Aaa 1,000 1,028,270
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Memorial Hermann
Hospital System
Project); Refunding
Hospital Series 1998 RB
5.50%, 06/01/09(d) AAA Aaa 5,500 5,694,865
-----------------------------------------------------------------
Harris County Health
Facilities Development
Corp. (Texas Children's
Hospital Project);
Series 1999 A RB 5.00%,
10/01/09 AA Aa2 1,920 1,881,888
-----------------------------------------------------------------
Houston (City of) Hotel
Occupancy (Customer
Receipts); Series 1985 A
RB 7.00%, 07/01/01(b) AAA Aaa 5,000 5,095,200
-----------------------------------------------------------------
Houston (City of) Limited
Tax Series 1992 C GO
6.25%, 03/01/02(b) NRR NRR 1,985 2,032,600
-----------------------------------------------------------------
Katy (City of) Independent
School District;
Unlimited Tax Series
1999 A GO 5.20%,
02/15/10(d) AAA Aaa 1,285 1,307,590
-----------------------------------------------------------------
Keller (City of)
Independent School
District; Series 1994
COP 5.75%, 08/15/01(d) AAA Aaa 470 475,668
-----------------------------------------------------------------
Kerrville (City of);
Refunding Electric
Series 1991 RB 6.38%,
11/01/01(d) AAA Aaa 185 188,748
-----------------------------------------------------------------
La Joya Independent School
District; Unlimited Tax
Series 1998 GO 5.38%,
02/15/10(d) AAA Aaa 1,535 1,575,708
-----------------------------------------------------------------
La Marque Independent
School District;
Unlimited Tax Series
1992 GO 7.50%,
08/15/02(d) AAA Aaa 750 789,877
-----------------------------------------------------------------
Lower Colorado River
Authority; Refunding
Series 1999 B RB 6.00%,
05/15/10(d) AAA Aaa 1,470 1,595,347
-----------------------------------------------------------------
Lubbock (City of); Series
1999 COP 5.00%, 02/15/10 AA Aa2 680 682,264
-----------------------------------------------------------------
Lubbock Health Facility
Development Corp.
(Methodist Hospital);
Series 1993 B RB 5.40%,
12/01/05(b) AAA Aaa 500 517,685
-----------------------------------------------------------------
</TABLE>
<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 $ 617,760
-----------------------------------------------------------------
5.13%, 09/01/07 AAA Aaa 535 547,305
-----------------------------------------------------------------
Plano (City of)
Independent School
District; Unlimited Tax
Series 1994 GO 5.80%,
02/15/05(d) AAA Aaa 2,025 2,096,624
-----------------------------------------------------------------
San Antonio (City of)
Electric and Gas;
Refunding Series 1998 A
RB 5.25%, 02/01/10 AA Aa1 8,500 8,668,895
-----------------------------------------------------------------
Southlake (City of)
(Waterworks and
Sewer-Certificates
Obligation); Limited Tax
Series 2000 A GO 5.40%,
02/15/09(d) AAA Aaa 250 258,825
-----------------------------------------------------------------
5.45%, 02/15/10(d) AAA Aaa 235 243,115
-----------------------------------------------------------------
Tarrant (County of)
Housing Finance Corp.
(Arbors On the Park II);
Multifamily Housing
Series 1990 RB 5.05%,
12/01/07 AAA -- 1,425 1,410,551
-----------------------------------------------------------------
Tarrant (County of) Junior
College District;
Limited Tax Series 1994
GO 5.05%, 12/15/10 AA Aa2 1,425 1,431,840
-----------------------------------------------------------------
Temple (City of);
Refunding Limited Tax
Series 1992 GO 5.80%,
02/01/01(d) AAA Aaa 250 251,200
-----------------------------------------------------------------
Texas Association of
School Boards; Limited
TAN Series 2000 A 4.75%,
08/31/01 -- MIG1 10,000 10,033,500
-----------------------------------------------------------------
Texas Municipal Power
Agency; Refunding Series
1992 RB 5.75%,
09/01/02(b) AAA Aaa 1,000 1,023,120
-----------------------------------------------------------------
Texas (State of) Turnpike
Authority (Addison
Airport Toll Tunnel
Project); Dallas North
Tollway Series 1994 RB
6.30%, 01/01/05(d) AAA Aaa 500 530,990
-----------------------------------------------------------------
University of Texas
(Financing System);
Series 1996 B RB 4.80%,
08/15/09 AAA Aa1 1,650 1,642,839
-----------------------------------------------------------------
University of Texas
Permanent University
Fund; Refunding Series
1991 RB 6.30%, 07/01/01 AAA Aaa 1,000 1,014,330
-----------------------------------------------------------------
Weatherford (City of)
Utility System;
Refunding and
Improvement Series 1999
RB 4.35%, 09/01/09(b) AAA Aaa 1,275 1,204,786
=================================================================
69,144,366
=================================================================
</TABLE>
12
<PAGE> 16
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
UTAH-1.09%
Salt Lake City (City of);
Unlimited Tax Series
1999 GO 5.25%, 06/15/09 AAA Aaa $ 900 $ 925,875
-----------------------------------------------------------------
Spanish Fork (City of)
Utah Electric; Series
2000 RB 5.00%,
08/15/08(d) -- Aaa 600 606,966
-----------------------------------------------------------------
5.00%, 08/15/09(d) -- Aaa 630 638,518
-----------------------------------------------------------------
5.00%, 08/15/10(d) -- Aaa 660 669,200
-----------------------------------------------------------------
Utah (State of) Associated
Municipal Power System
(Hunter Project);
Refunding Series 1994 RB
5.00%, 07/01/10(d) AAA Aaa 1,000 1,001,410
-----------------------------------------------------------------
Utah (State of) Housing
Finance Agency; Single
Family Mortgage Series
1999 E-II RB 5.05%,
07/01/07 AAA Aaa 250 254,410
-----------------------------------------------------------------
Utah (State of) (Board of
Water Resource Program);
Revolving Fund
Recapitalization Series
1992 B RB 6.10%,
04/01/02 AA -- 500 511,780
=================================================================
4,608,159
=================================================================
VERMONT-0.48%
Vermont Municipal Bond
Bank; Refunding Series
1995 2 RB 5.00%,
12/01/00(d) AAA Aaa 2,025 2,027,126
=================================================================
VIRGINIA-1.16%
Fairfax (County of)
(Public Improvement);
Unlimited Tax Series
1997 A GO 5.00%,
06/01/07 AAA Aaa 1,000 1,018,060
-----------------------------------------------------------------
Norfolk (City of)
Redevelopment and
Housing Authority
(Tidewater Community
College Campus);
Educational Facility
Series 1995 RB 5.30%,
11/01/04 AA+ Aa1 535 550,354
-----------------------------------------------------------------
5.40%, 11/01/05 AA+ Aa1 500 518,590
-----------------------------------------------------------------
Peninsula Ports Authority
(Riverside Health System
Project); Refunding
Health System Series
1998 RB 5.00%, 07/01/06 AA Aa2 1,000 1,000,910
-----------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Port Improvement Series
1992 GO 6.40%, 11/01/03 AA- A3 300 311,592
-----------------------------------------------------------------
Portsmouth (City of);
Refunding Unlimited Tax
Public Utility Series
1992 GO 5.90%, 11/01/01 AA- A3 450 456,570
-----------------------------------------------------------------
Virginia (State of) Public
School Authority;
Refunding School Funding
Series 1997 I RB 5.25%,
08/01/07 AA+ Aa1 1,000 1,031,730
-----------------------------------------------------------------
4,887,806
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WASHINGTON-3.07%
King (County of); Sewer
Series 1994 A RB 5.80%,
01/01/04(b) AAA NRR $1,000 $ 1,053,560
-----------------------------------------------------------------
Lewis (County of) Public
Utility District #1
(Cowlitz Falls
Hydroelectronics);
Refunding Series 1993 RB
5.38%, 10/01/08 AA- Aa1 1,000 1,023,910
-----------------------------------------------------------------
Seattle (City of);
Refunding Limited Tax
Series GO 6.40%,
10/01/01(b) NRR NRR 250 254,800
-----------------------------------------------------------------
Seattle (Port of); Series
1992 A RB 6.00%,
11/01/01 AA- Aa3 500 508,235
-----------------------------------------------------------------
Snohomish (County of)
Public Utilities
District #1; Electric
Generation System Series
1993 RB 5.70%,
01/01/06(d) AAA Aaa 4,000 4,169,000
-----------------------------------------------------------------
Snohomish (County of)
School District #16
Arlington; Unlimited Tax
Series 2000 GO 5.40%,
12/01/08(d) -- Aaa 915 949,139
-----------------------------------------------------------------
Spokane (City of);
Unlimited Tax Series
1999 B GO 5.40%,
01/01/10(d) AAA Aaa 2,075 2,131,087
-----------------------------------------------------------------
Washington (State of);
Refunding Unlimited Tax
Series 1999 R 2000A GO
5.50%, 01/01/08 AA+ Aa1 1,135 1,180,207
-----------------------------------------------------------------
Washington (State of)
Public Power Supply
System (Nuclear Project
#1); Refunding Series
1993 B RB 5.15%,
07/01/02 AA- Aa1 610 614,801
-----------------------------------------------------------------
Washington (State of)
Public Power Supply
System (Nuclear Project
#2); Refunding Series
1997 B RB 5.50%,
07/01/06 AA- Aa1 1,000 1,031,650
=================================================================
12,916,389
=================================================================
WISCONSIN-2.83%
Chippewa (County of);
Unlimited Tax Series
2000 GO 4.88%, 02/01/03 -- Aa3 615 617,884
-----------------------------------------------------------------
Milwaukee (City of) Area
Technical College
District; Unlimited Tax
Series 2000 A GO 4.88%,
12/01/01 -- Aa2 1,855 1,863,496
-----------------------------------------------------------------
Milwaukee (City of);
Unlimited Tax Series
1991 GO 6.30%, 06/15/01 AA+ Aa2 1,000 1,012,890
-----------------------------------------------------------------
</TABLE>
13
<PAGE> 17
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WISCONSIN-(CONTINUED)
Mount Pleasant (City of);
Refunding Unlimited Tax
Series 2000 GO 5.00%,
10/01/02 -- Aa3 $ 680 $ 686,535
-----------------------------------------------------------------
5.00%, 10/01/03 -- Aa3 765 775,595
-----------------------------------------------------------------
4.90%, 10/01/04 -- Aa3 805 814,885
-----------------------------------------------------------------
Two Rivers (City of)
Public School District;
Refunding Unlimited Tax
Series 2000 GO 5.50%,
03/01/08(d) -- Aaa 680 711,940
-----------------------------------------------------------------
Wausau (City of) School
District; Unlimited Tax
Series 1992 GO 6.30%,
04/01/02(b) -- NRR 1,000 1,025,100
-----------------------------------------------------------------
Wisconsin (State of)
Health & Educational
Facilities Authority
(Charity Obligation
Group); Hospital Series
1997 D RB 4.90%,
11/01/05(b) NRR NRR 2,145 2,166,986
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR
S&P MOODY'S (000) MARKET VALUE
<S> <C> <C> <C> <C>
WISCONSIN-(CONTINUED)
Wisconsin (State of)
Health & Educational
Facilities Authority
(Marshfield Clinic);
Series 1997 RB 5.20%,
02/15/07(d) AAA Aaa $2,210 $ 2,253,007
=================================================================
11,928,318
=================================================================
TOTAL INVESTMENTS-99.59%
(Cost $413,992,975) 419,140,944
=================================================================
OTHER ASSETS LESS
LIABILITIES-0.41% 1,724,949
=================================================================
NET ASSETS-100.00% $420,865,893
_________________________________________________________________
=================================================================
</TABLE>
Investment Abbreviations:
COP - Certificates of Participation
GO - General Obligation
LOC - Letter of Credit
NRR - Not re-rated
RAN - Revenue Anticipation Note
RAC - Revenue Anticipation Certificates
RB - Revenue Bonds
TAN - Tax Anticipation Note
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.
(b)Secured by an escrow fund of U.S. Treasury obligations.
(c)Security has an outstanding irrevocable call or mandatory put by the issuer.
Market value and maturity date reflect such call or put.
(d)Secured by bond insurance provided by one of the following companies: Ambac
Assurance Corp., Financial Guaranty Insurance Co., Financial Security
Assurance, or MBIA Insurance Co.
(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 09/30/00.
See Notes to Financial Statements.
14
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$413,992,975) $419,140,944
------------------------------------------------------------
Receivables for:
Investments sold 721,214
------------------------------------------------------------
Fund shares sold 1,875,301
------------------------------------------------------------
Interest 6,020,856
------------------------------------------------------------
Investment for deferred compensation plan 33,054
------------------------------------------------------------
Other assets 183,902
============================================================
Total assets 427,975,271
============================================================
LIABILITIES:
Payables for:
Investments purchased 4,941,324
------------------------------------------------------------
Fund shares reacquired 1,424,600
------------------------------------------------------------
Dividends 573,882
------------------------------------------------------------
Deferred compensation plan 33,054
------------------------------------------------------------
Accrued advisory fees 101,668
------------------------------------------------------------
Accrued administrative services fees 6,778
------------------------------------------------------------
Accrued trustees' fees 1,228
------------------------------------------------------------
Accrued operating expenses 26,844
============================================================
Total liabilities 7,109,378
============================================================
Net assets applicable to shares outstanding $420,865,893
____________________________________________________________
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Authorized 1,000,000,000
------------------------------------------------------------
Outstanding 38,857,317
____________________________________________________________
============================================================
Net asset value and redemption price per
share $ 10.83
------------------------------------------------------------
Offering price per share:
(Net asset value of $10.83 divided
by 99.00%) $ 10.94
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended September 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $ 8,947,465
============================================================
EXPENSES:
Advisory fees 532,176
------------------------------------------------------------
Administrative services fees 35,478
------------------------------------------------------------
Custodian fees 5,049
------------------------------------------------------------
Transfer agent fees 22,056
------------------------------------------------------------
Registration and filing fees 53,327
------------------------------------------------------------
Trustees' fees 3,544
------------------------------------------------------------
Other 61,134
============================================================
Total expenses 712,764
============================================================
Less: Expenses paid indirectly (2,431)
============================================================
Net expenses 710,333
============================================================
Net investment income 8,237,132
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES:
Net realized gain (loss) from investment
securities (1,919,389)
============================================================
Change in net unrealized appreciation of
investment securities 5,928,139
============================================================
Net gain on investment securities 4,008,750
============================================================
Net increase in net assets resulting from
operations $12,245,882
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 19
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2000 and the year ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
2000 2000
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 8,237,132 $ 15,328,311
-------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (1,919,389) (3,662,707)
-------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities 5,928,139 (8,785,558)
===========================================================================================
Net increase in net assets resulting from operations 12,245,882 2,880,046
===========================================================================================
Distributions to shareholders from net investment income (8,125,101) (15,337,130)
-------------------------------------------------------------------------------------------
Distributions in excess of net investment income -- (293,541)
-------------------------------------------------------------------------------------------
Share transactions-net 63,615,177 121,381,091
===========================================================================================
Net increase in net assets 67,735,958 108,630,466
===========================================================================================
NET ASSETS:
Beginning of period 353,129,935 244,499,469
===========================================================================================
End of period $420,865,893 $353,129,935
===========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $421,947,601 $358,332,424
-------------------------------------------------------------------------------------------
Undistributed net investment income 75,981 (36,050)
-------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (6,305,658) (4,386,269)
-------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities 5,147,969 (780,170)
===========================================================================================
$420,865,893 $353,129,935
___________________________________________________________________________________________
===========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Free Intermediate Fund (the "Fund") is a series portfolio of AIM
Tax-Exempt Funds (the "Trust"). The Trust is a Delaware business trust
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of four
separate portfolios, each having an unlimited number of shares of beneficial
interest. Prior to June 1, 2000 the Fund was organized as a series portfolio of
AIM Tax-Exempt Funds, Inc. At a meeting held on February 3, 2000, the Board of
Directors of AIM Tax-Exempt Funds, Inc. approved an Agreement and Plan of
Reorganization (the "Reorganization") which reorganized the Fund as a series
portfolio of the Trust. Shareholders of the Fund approved the Reorganization at
a meeting held on May 31, 2000. Matters affecting each portfolio will be 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 the Fund. The Fund's
investment objective is to generate as high a level of tax-exempt income as is
consistent with preservation of capital.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. Security Valuations -- Portfolio securities are valued on the basis of prices
provided by an independent pricing service approved by the Board of Trustees.
Securities with a demand feature exercisable within one to seven days are
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 Trustees, or persons
designated by the Board of Trustees, 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 Trust's officers
in a manner specifically authorized by the Board of Trustees. 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
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income, adjusted for amortization of premiums and discounts on
investments, is recorded on the accrual basis from settlement date.
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 of $1,822,426 which may be carried forward to offset future
taxable gains, if any, which expires in varying increments, 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 to shareholders "exempt interest dividends", as defined in
the Internal Revenue Code.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM based upon the following annual rates, to
the average daily net assets of the Fund:
<TABLE>
<CAPTION>
NET ASSETS ANNUAL RATE
-------------------------------------------------------
<S> <C>
First $500 million 0.30%
-------------------------------------------------------
Over $500 million up to and including $1
billion 0.25%
-------------------------------------------------------
Over $1 billion 0.20%
=======================================================
</TABLE>
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 six months ended September 30, 2000,
AIM was paid $35,478 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 agency and
shareholder services to the Fund.
17
<PAGE> 21
For the six months ended September 30, 2000, AFS was paid $19,625 for such
services.
The Trust 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
$67,200 from sales of shares of the Fund during the six months ended September
30, 2000. Such commissions are not an expense of the Fund. They are deducted
from, and are not included in, the proceeds from sales of shares of the Fund.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
During the six months ended September 30, 2000, the Fund paid legal fees of
$2,973 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Trustees. A member of that firm is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the six months ended September 30, 2000, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $2,431 under an expense
offset arrangement which resulted in a reduction of the Fund's total expenses of
$2,431.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, 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 Citibank, N.A.. The Fund may borrow up to the lesser
of (i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings.
The Fund and other funds advised by AIM which are parties to the line of credit
may borrow on a first come, first served basis. During the six months ended
September 30, 2000, the Fund did not borrow under the line of credit agreement.
The funds which are party 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 the 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 by the Fund during the six months ended September 30, 2000
was $159,847,829 and $111,989,239, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of September 30, 2000 was as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $6,024,415
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (876,446)
=========================================================
Net unrealized appreciation of investment
securities $5,147,969
_________________________________________________________
=========================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
18
<PAGE> 22
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the six months ended September 30, 2000 and
the year ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 MARCH 31, 2000
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold 17,943,024 $ 193,074,125 36,588,213 $ 396,750,803
--------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends 503,196 5,313,369 1,010,690 10,900,646
--------------------------------------------------------------------------------------------------------------------------
Reacquired (12,576,044) (134,772,317) (26,587,941) (286,270,358)
==========================================================================================================================
5,870,176 $ 63,615,177 11,010,962 $ 121,381,091
__________________________________________________________________________________________________________________________
==========================================================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, ---------------------------------------------------
2000 2000 1999 1998 1997 1996
------------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.71 $ 11.13 $ 11.05 $ 10.73 $ 10.79 $ 10.67
--------------------------------------------------- -------- -------- -------- -------- -------- -------
Income from investment operations:
Net investment income 0.25 0.48 0.49 0.50 0.50 0.52
--------------------------------------------------- -------- -------- -------- -------- -------- -------
Net gains (losses) on securities (both realized
and unrealized) 0.12 (0.41) 0.08 0.32 (0.04) 0.12
=================================================== ======== ======== ======== ======== ======== =======
Total from investment operations 0.37 0.07 0.57 0.82 0.46 0.64
=================================================== ======== ======== ======== ======== ======== =======
Less distributions:
Dividends from net investment income (0.25) (0.48) (0.49) (0.50) (0.52) (0.52)
--------------------------------------------------- -------- -------- -------- -------- -------- -------
Distributions in excess of net investment income -- (0.01) -- -- -- --
=================================================== ======== ======== ======== ======== ======== =======
Total distributions (0.25) (0.49) (0.49) (0.50) (0.52) (0.52)
=================================================== ======== ======== ======== ======== ======== =======
Net asset value, end of period $ 10.83 $ 10.71 $ 11.13 $ 11.05 $ 10.73 $ 10.79
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
Total return(a) 3.46% 0.70% 5.27% 7.79% 4.33% 6.06%
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $420,866 $353,130 $244,499 $200,969 $173,342 $83,066
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
Ratio of expenses to average net assets (including
interest expense) 0.40%(b) 0.42% 0.46% 0.45% 0.56% 0.65%
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
Ratio of net investment income to average net
assets 4.64%(b) 4.45% 4.43% 4.56% 4.63% 4.81%
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
Portfolio turnover rate 32% 50% 32% 22% 26% 32%
___________________________________________________ ________ ________ ________ ________ ________ _______
=================================================== ======== ======== ======== ======== ======== =======
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) Ratios are annualized and based on average daily net assets of $354,181,339.
19
<PAGE> 23
<TABLE>
<CAPTION>
BOARD OF TRUSTEES 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
Formerly 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
Twenty First Century Group, 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 Philadelphia, PA 19103
and Assistant Treasurer
Robert H. Graham COUNSEL TO THE TRUSTEES
President and Chief Executive Officer Jim A. Coppedge
A I M Management Group Inc. Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Prema Mathai-Davis Renee A. Friedli New York, NY 10022
Formerly Chief Executive Officer, Assistant Secretary
YWCA of the U.S.A. DISTRIBUTOR
P. Michelle Grace
Lewis F. Pennock Assistant Secretary A I M Distributors, Inc.
Partner 11 Greenway Plaza
Pennock & Cooper Nancy L. Martin Suite 100
Assistant Secretary Houston, TX 77046
Louis S. Sklar
Executive Vice President Ofelia M. Mayo
Hines Interests Assistant Secretary
Limited Partnership
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
</TABLE>
20
<PAGE> 24
THE AIM FUNDS(SM) RISK SPECTRUM
On the back cover of this fund report, you'll find the funds in the AIM family
divided into the following categories: sector, international/global, domestic,
taxable and tax-free. You'll also notice that the funds in each category are
listed from more aggressive to more conservative.
Within each category of this risk spectrum, we assessed each fund on the
basis of three factors: its holdings, volatility patterns and diversification.
From that assessment, we assigned a degree of risk to each fund and ordered them
accordingly.
Mutual funds typically invest in stocks, bonds or money market instruments,
each with varying levels of potential risk and reward. Generally, the riskier
the investment, the greater the potential reward.
o Stock funds usually offer the most upside potential, but they also carry
the greatest risk. Funds that invest in large, well-established companies
generally have lower risk/reward potential than funds that invest in small,
fast-growing companies.
o Funds that invest in a broad range of industries are considered more
diversified and less risky--and potentially less rewarding--than funds that
invest in a single sector, such as technology.
o Funds that invest in international markets tend to have higher risk/reward
potential than those that invest solely in domestic securities.
o Bond funds are generally considered safer and therefore potentially less
rewarding than stock funds. Funds that invest in U.S. Treasury securities
typically have lower risk/reward potential than funds that invest in
higher-yielding junk bonds.
o Money market funds, while considered extremely safe, typically produce
lower returns than stock and bond funds. Moreover, it is possible that a
money market fund's returns will not keep pace with inflation.
The amount of investment risk you undertake depends on several factors:
your financial objectives, your risk tolerance and your time horizon. Are you
saving for your later years or are you investing to buy a large item, like a car
or a house, soon? Are you a young adult early in your work life, or are you
approaching retirement?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you may need to be more
conservative to meet your goal.
Because these factors change over time, it's a good idea to reassess your
portfolio periodically to make sure it still meets your needs. Your financial
advisor can help you figure out if your portfolio is right where it should be or
if it could use some fine-tuning.
In assessing your investments, remember to keep diversification in mind.
Such a strategy, where you spread your investments over several types of mutual
funds, may help mitigate volatility and/or risk in your portfolio because not
all investments behave the same way at the same time.
AIM has a large selection of mutual funds to choose from. See your
financial advisor for insight into which ones would best fit in your portfolio.
-------------------------------------
THE AMOUNT OF INVESTMENT
RISK YOU UNDERTAKE DEPENDS
ON SEVERAL FACTORS: YOUR
FINANCIAL OBJECTIVES, YOUR
RISK TOLERANCE AND YOUR
TIME HORIZON.
-------------------------------------
FUND RANKINGS ARE RELATIVE TO ONE ANOTHER WITHIN THE AIM FAMILY OF
FUNDS--REGISTERED TRADEMARK--, AND THEY SHOULD NOT BE COMPARED WITH OTHER
INVESTMENTS. THERE IS NO GUARANTEE THAT ANY ONE AIM FUND WILL BE LESS VOLATILE
THAN ANY OTHER. FOR A FULL DISCUSSION OF THE RISKS ASSOCIATED WITH EACH FUND,
PLEASE READ THE FUND'S PROSPECTUS.
4
<PAGE> 25
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided leadership in the
mutual fund industry since 1976 and managed approximately
MORE AGGRESSIVE MORE AGGRESSIVE $183 billion in assets for more than eight million
shareholders, including individual investors, corporate
AIM Small Cap Opportunities(1) AIM Latin American Growth clients and financial institutions, as of September 30,
AIM Mid Cap Opportunities(2) AIM Developing Markets 2000.
AIM Large Cap Opportunities(3) AIM European Small Company The AIM Family of Funds--Registered Trademark-- is
AIM Emerging Growth AIM Asian Growth distributed nationwide, and AIM today is the eighth-largest
AIM Small Cap Growth(4) AIM Japan Growth mutual fund complex in the United States in assets under
AIM Aggressive Growth AIM International Emerging Growth management, according to Strategic Insight, an independent
AIM Mid Cap Growth AIM European Development mutual fund monitor.
AIM Small Cap Equity AIM Euroland Growth AIM is a subsidiary of AMVESCAP PLC, one of the world's
AIM Capital Development AIM Global Aggressive Growth largest independent financial services companies with $414
AIM Constellation(5) AIM International Equity billion in assets under management as of September 30, 2000.
AIM Dent Demographic Trends AIM Advisor International Value
AIM Select Growth AIM Global Trends
AIM Large Cap Growth AIM Global Growth
AIM Weingarten
AIM Mid Cap Equity MORE CONSERVATIVE
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Infrastructure
AIM Global Resources
MORE CONSERVATIVE AIM Global Financial Services
AIM Global Health Care
AIM Global Consumer Products and Services
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS
TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE
MORE AGGRESSIVE
AIM Strategic Income
AIM High Yield II AIM High Income Municipal
AIM High Yield AIM Tax-Exempt Bond of Connecticut
AIM Income AIM Municipal Bond
AIM Global Income AIM Tax-Free Intermediate
AIM Floating Rate(6) AIM Tax-Exempt Cash
AIM Intermediate Government
AIM Limited Maturity Treasury MORE CONSERVATIVE
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Large Cap Opportunities Fund closed to
new investors Sept. 29, 2000. (4) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (5) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Floating Rate Fund was restructured to offer multiple share classes
April 3, 2000. Existing shares were converted to Class B shares, and Class C
shares commenced offering. FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND,
INCLUDING SALES CHARGES AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM
YOUR FINANCIAL ADVISOR. PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU
INVEST OR SEND MONEY. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a currently effective
fund prospectus. If used as sales material after Jan. 20, 2001, this report must
be accompanied by a fund Performance & Commentary or by an AIM Quarterly Review
of Performance for the most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. TFI-SAR-1
