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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file
number 811-2731
-------------------------------------------------------------------------
Tax-Free Investments Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 100 Houston, Texas 77046
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert H. Graham 11 Greenway Plaza, Suite 100 Houston, Texas 77046
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (713) 626-1919
----------------------------
Date of fiscal year end: 3/31
----------------
Date of reporting period: 3/31/04
----------------
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
CASH MANAGEMENT CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-3
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Cash Management Class of Tax-Free
ROBERT H. Investments Trust (TFIT) Cash Reserve Portfolio for the
GRAHAM] fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P
500--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of March 31, 2004, the Cash Management Class maintained its competitive
position, as shown in the table. Had the advisor and distributor not waived fees
and/or reimbursed expenses, performance would have been lower. The weighted
average maturity (WAM) of the portfolio was kept in a range of 30 to 55 days
during the fiscal year. As the fiscal year closed, the WAM stood at 33 days. The
short WAM enables the portfolio to respond quickly to changes in the interest
rate environment. Net assets of the Cash Management Class of the portfolio stood
at $768.1 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
The Tax-Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income
================================================================================
YIELDS AS OF 3/31/04
Monthly Seven-Day
Yield SEC Yield
Tax-Free Cash Reserve Portfolio 0.69% 0.75%
Cash Management Class
iMoneyNet All Tax-Free
Money Fund Averages--Registered Trademark-- 0.43% 0.46%
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.61% 0.63%
Institutions Only
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.36% 0.39%
Stockbroker/General Purpose
The seven-day SEC yield and monthly yield represent annualized results for the
period, net of fees and expenses, and exclude any realized capital gains or
losses. Yields will fluctuate. iMoneyNet, Inc. is an independent mutual fund
performance monitor. The iMoneyNet All Tax-Free Money Fund Averages category
consists of funds that invest in short-term municipal securities, which are
exempt from federal taxation. The iMoneyNet Tax-Free Money Fund Averages
Institutions Only category consists of funds that invest in tax-exempt
obligations, including those of state and municipal authorities. The iMoneyNet
Tax-Free Money Fund Averages Stockbroker/General Purpose category consists of
funds that invest in obligations of tax-exempt entities, including state and
municipal authorities. The funds comprising these categories are open to
individual investors; however, an investor cannot invest directly into one of
these categories.
Performance quoted is past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Visit AIMinvestments.com
for the most recent month-end performance.
================================================================================
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
as is consistent with preservation of capital and maintenance of liquidity by
investing in high quality, short-term municipal obligations. The portfolio
invests solely in "First Tier" securities as defined in Rule 2a-7 under the
Investment Company Act of 1940, as amended.
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
The fund is not managed to track the performance of any particular index,
including the indexes defined here, and consequently, the performance of the
fund may deviate significantly from the performance of the indexes.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
2
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
CASH MANAGEMENT CLASS
--------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.02 0.04 0.03
================================================================================================
Less distributions from net investment
income (0.01) (0.01) (0.02) (0.04) (0.03)
================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________________________________________________________________________________________________
================================================================================================
Total return(a) 0.76% 1.14% 2.08% 3.87% 3.23%
________________________________________________________________________________________________
================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $768,141 $617,683 $320,502 $15,668 $6,178
________________________________________________________________________________________________
================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.30%(b) 0.30% 0.30% 0.28% 0.28%
- ------------------------------------------------------------------------------------------------
Without fee waivers 0.37%(b) 0.37% 0.38% 0.39% 0.39%
________________________________________________________________________________________________
================================================================================================
Ratio of net investment income to
average net assets 0.75%(b) 1.12% 1.92% 3.76% 3.17%
________________________________________________________________________________________________
================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $665,409,730.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
INSTITUTIONAL CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-1
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Institutional Class of Tax-Free
ROBERT H. Investments Trust (TFIT) Tax Free Cash Reserve Portfolio for
GRAHAM] the fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P
500--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of March 31, 2004, the Institutional Class maintained its competitive
position, as shown in the table. Had the advisor not waived fees and/or
reimbursed expenses, performance would have been lower. The weighted average
maturity (WAM) of the portfolio was kept in a range of 30 to 55 days during the
fiscal year. As the fiscal year closed, the WAM stood at 33 days. The short WAM
enables the portfolio to respond quickly to changes in the interest rate
environment. Net assets of the Institutional Class of the portfolio stood at $2
billion at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
================================================================================
YIELDS AS OF 3/31/04
Monthly Seven-Day
Yield SEC Yield
Tax-Free Cash Reserve Portfolio 0.77% 0.83%
Institutional Class
iMoneyNet All Tax-Free
Money Fund Averages--Registered Trademark-- 0.43% 0.46%
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.61% 0.63%
Institutions Only
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.36% 0.39%
Stockbroker/General Purpose
The seven-day SEC yield and monthly yield represent annualized results for the
period, net of fees and expenses, and exclude any realized capital gains or
losses. Yields will fluctuate. iMoneyNet, Inc. is an independent mutual fund
performance monitor. The iMoneyNet All Tax-Free Money Fund Averages category
consists of funds that invest in short-term municipal securities, which are
exempt from federal taxation. The iMoneyNet Tax-Free Money Fund Averages
Institutions Only category consists of funds that invest in tax-exempt
obligations, including those of state and municipal authorities. The iMoneyNet
Tax-Free Money Fund Averages Stockbroker/General Purpose category consists of
funds that invest in obligations of tax-exempt entities, including state and
municipal authorities. The funds comprising these categories are open to
individual investors; however, an investor cannot invest directly into one of
these categories.
Performance quoted is past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Visit AIMinvestments.com
for the most recent month-end performance.
================================================================================
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
The Tax-Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income as is consistent with preservation of capital and maintenance
of liquidity by investing in high quality, short-term municipal obligations. The
portfolio invests solely in "First Tier" securities as defined in Rule 2a-7
under the Investment Company Act of 1940, as amended.
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
2
================================================================================
[LINE ART]
MONTHLY YIELD COMPARISON
12 months ended 3/31/04 (Yields are monthly yields for the month-ends shown.)
<Table>
<Caption>
IMONEYNET TAX-FREE IMONEYNET TAX-FREE
TAX-FREE CASH MONEY FUND AVERAGES MONEY FUND AVERAGES IMONEYNET ALL TAX-FREE
RESERVE PORTFOLIO --REGISTERED TRADEMARK-- --REGISTERED TRADEMARK-- MONEY FUND AVERAGES
INSTITUTIONAL CLASS INSTITUTIONS ONLY STOCKBROKER/GENERAL PURPOSE --REGISTERED TRADEMARK--
------------------- ------------------------ --------------------------- ------------------------
3/03 0.97 0.79 0.54 0.62
4/03 1.04 0.85 0.59 0.68
5/03 1.07 0.87 0.61 0.7
6/03 0.91 0.72 0.47 0.55
7/03 0.67 0.51 0.3 0.36
8/03 0.69 0.51 0.3 0.36
9/03 0.76 0.58 0.36 0.42
10/03 0.79 0.61 0.37 0.44
11/03 0.87 0.69 0.45 0.52
12/03 0.87 0.69 0.44 0.52
1/04 0.79 0.6 0.37 0.44
2/04 0.75 0.57 0.35 0.41
3/04 0.77 0.61 0.36 0.43
</Table>
Yields shown above are net of expenses.
Past performance cannot guarantee comparable future results. The monthly yields
shown represent past performance. Future results will fluctuate.
Source: iMoneyNet, Inc.
================================================================================
The fund is not managed to track the performance of any particular index,
including the indexes defined here, and consequently, the performance of the
fund may deviate significantly from the performance of the indexes.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
3
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
INSTITUTIONAL CLASS
-----------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------
2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.01 0.01 0.02 0.04 0.03
====================================================================================================
Less distributions from net
investment income (0.01) (0.01) (0.02) (0.04) (0.03)
====================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____________________________________________________________________________________________________
====================================================================================================
Total return(a) 0.84% 1.22% 2.17% 3.95% 3.32%
____________________________________________________________________________________________________
====================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $1,953,769 $1,321,224 $1,239,058 $929,921 $964,396
____________________________________________________________________________________________________
====================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.22%(b) 0.22% 0.22% 0.20% 0.20%
- ----------------------------------------------------------------------------------------------------
Without fee waivers 0.27%(b) 0.27% 0.28% 0.29% 0.29%
____________________________________________________________________________________________________
====================================================================================================
Ratio of net investment income to
average net assets 0.83%(b) 1.20% 2.01% 3.84% 3.25%
____________________________________________________________________________________________________
====================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $1,742,638,492.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
PERSONAL INVESTMENT CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-6
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Personal Investment Class of
ROBERT H. Tax-Free Investments Trust (TFIT) Tax Free Cash Reserve
GRAHAM] Portfolio for the fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P 500
--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of the close of the fiscal year, the seven-day SEC yield of the Personal
Investment Class stood at 0.28%, and the monthly yield at 0.23%. The seven-day
SEC yield and monthly yield represent annualized results for the period, net of
fees and expenses, and exclude any realized capital gains or losses. Yields will
fluctuate. Had the advisor and distributor not waived fees and/or reimbursed
expenses, performance would have been lower. Performance quoted is past
performance and cannot guarantee comparable future results; current performance
may be lower or higher. Visit AIMinvestments.com for the most recent month-end
performance.
The weighted average maturity (WAM) of the portfolio was kept in a range of
30 to 55 days during the fiscal year. As the fiscal year closed, the WAM stood
at 33 days. The short WAM enables the portfolio to respond quickly to changes in
the interest rate environment. Net assets of the Personal Investment Class of
the portfolio stood at $10.4 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
The Tax-Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income as is consistent with preservation of capital and maintenance
of liquidity by investing in high quality, short-term municipal obligations. The
portfolio invests solely in "First Tier" securities as defined in Rule 2a-7
under the Investment Company Act of 1940, as amended.
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
2
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
PERSONAL INVESTMENT CLASS
--------------------------------------------------------
DECEMBER 4, 2000
(DATE SALES
YEAR ENDED MARCH 31, COMMENCED) TO
------------------------------------ MARCH 31,
2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.003 0.01 0.02(a) 0.01
============================================================================================================
Less distributions from net investment income (0.003) (0.01) (0.02) (0.01)
============================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
____________________________________________________________________________________________________________
============================================================================================================
Total return(b) 0.28% 0.69% 1.66% 0.95%
____________________________________________________________________________________________________________
============================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $10,394 $16,991 $5,102 $ 722
____________________________________________________________________________________________________________
============================================================================================================
Ratio of expenses to average net assets:
With fee waivers 0.77%(c) 0.76% 0.72% 0.70%(d)
- ------------------------------------------------------------------------------------------------------------
Without fee waivers 1.02%(c) 1.02% 1.03% 1.04%(d)
____________________________________________________________________________________________________________
============================================================================================================
Ratio of net investment income to average net
assets 0.28%(c) 0.66% 1.51% 3.35%(d)
__________________________________________________________________________________________________________ )
============================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and is not annualized for periods
less than one year.
(c) Ratios are based on average daily net assets of $12,620,565.
(d) Annualized.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
PRIVATE INVESTMENT CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-2
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Private Investment Class of
ROBERT H. Tax-Free Investments Trust (TFIT) Tax-Free Cash Reserve
GRAHAM] Portfolio for the fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P
500--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of March 31, 2004, the Private Investment Class maintained its
competitive position, as shown in the table. Had the advisor and distributor not
waived fees and/or reimbursed expenses, performance would have been lower. The
weighted average maturity (WAM) of the portfolio was kept in a range of 30 to 55
days during the fiscal year. As the fiscal year closed, the WAM stood at 33
days. The short WAM enables the portfolio to respond quickly to changes in the
interest rate environment. Net assets of the Private Investment Class of the
portfolio stood at $150.4 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
================================================================================
YIELDS AS OF 3/31/04
Monthly Seven-Day
Yield SEC Yield
Tax-Free Cash Reserve Portfolio 0.53% 0.58%
Private Investment Class
iMoneyNet All Tax-Free
Money Fund Averages--Registered Trademark-- 0.43% 0.46%
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.61% 0.63%
Institutions Only
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.36% 0.39%
Stockbroker/General Purpose
The seven-day SEC yield and monthly yield represent annualized results for the
period, net of fees and expenses, and exclude any realized capital gains or
losses. Yields will fluctuate. iMoneyNet, Inc. is an independent mutual fund
performance monitor. The iMoneyNet All Tax-Free Money Fund Averages category
consists of funds that invest in short-term municipal securities, which are
exempt from federal taxation. The iMoneyNet Tax-Free Money Fund Averages
Institutions Only category consists of funds that invest in tax-exempt
obligations, including those of state and municipal authorities. The iMoneyNet
Tax- Free Money Fund Averages Stockbroker/General Purpose category consists of
funds that invest in obligations of tax-exempt entities, including state and
municipal authorities. The funds comprising these categories are open to
individual investors; however, an investor cannot invest directly into one of
these categories.
Performance quoted is past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Visit AIMinvestments.com
for the most recent month-end performance.
================================================================================
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
The Tax-Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income as is consistent with preservation of capital and maintenance
of liquidity by investing in high quality, short-term municipal obligations. The
portfolio invests solely in "First Tier" securities as defined in Rule 2a-7
under the Investment Company Act of 1940, as amended.
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
The fund is not managed to track the performance of any particular index,
including the indexes defined here, and consequently, the performance of the
fund may deviate significantly from the performance of the indexes.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
2
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
PRIVATE INVESTMENT CLASS
----------------------------------------------------------
YEAR ENDED MARCH 31,
----------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.02 0.04 0.03
================================================================================================
Less distributions from net
investment income (0.01) (0.01) (0.02) (0.04) (0.03)
================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________________________________________________________________________________________________
================================================================================================
Total return(a) 0.59% 0.97% 1.91% 3.69% 3.06%
________________________________________________________________________________________________
================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $150,399 $227,832 $179,095 $141,946 $83,454
________________________________________________________________________________________________
================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.47%(b) 0.47% 0.47% 0.45% 0.45%
- ------------------------------------------------------------------------------------------------
Without fee waivers 0.77%(b) 0.77% 0.78% 0.79% 0.79%
________________________________________________________________________________________________
================================================================================================
Ratio of net investment income to
average net assets 0.58%(b) 0.95% 1.76% 3.60% 3.00%
________________________________________________________________________________________________
================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $211,488,884.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
RESERVE CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-4
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Reserve Class of Tax-Free
ROBERT H. Investments Trust (TFIT) Tax-Free Cash Reserve Portfolio for
GRAHAM] the fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P
500--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of the close of the fiscal year, the seven-day SEC yield and the monthly
yield of the Reserve Class stood at 0.05%. The seven-day SEC yield and monthly
yield represent annualized results for the period, net of fees and expenses, and
exclude any realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed expenses, performance
would have been lower. Performance quoted is past performance and cannot
guarantee comparable future results; current performance may be lower or higher.
Visit AIMinvestments.com for the most recent month-end performance.
The weighted average maturity (WAM) of the portfolio was kept in a range of
30 to 55 days during the fiscal year. As the fiscal year closed, the WAM stood
at 33 days. The short WAM enables the portfolio to respond quickly to changes in
the interest rate environment. Net assets of the Reserve Class of the portfolio
stood at $14 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
The Tax Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income as is consistent with preservation of capital and maintenance
of liquidity by investing in high quality, short-term municipal obligations. The
portfolio invests solely in "First Tier" securities as defined in Rule 2a-7
under the Investment Company Act of 1940, as amended.
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
2
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
RESERVE CLASS
------------------------------------------------------------
JUNE 1, 1999
(DATE SALES
YEAR ENDED MARCH 31, COMMENCED) TO
------------------------------------------- MARCH 31,
2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.001 0.004 0.01 0.03 0.02
==============================================================================================
Less distributions from net
investment income (0.001) (0.004) (0.01) (0.03) (0.02)
==============================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______________________________________________________________________________________________
==============================================================================================
Total return(a) 0.08% 0.39% 1.35% 3.12% 2.10%
______________________________________________________________________________________________
==============================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $14,030 $12,653 $18,200 $15,871 $23,283
______________________________________________________________________________________________
==============================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.98%(b) 1.05% 1.02% 1.00% 1.00%(c)
- ----------------------------------------------------------------------------------------------
Without fee waivers 1.27%(b) 1.27% 1.28% 1.29% 1.29%(c)
______________________________________________________________________________________________
==============================================================================================
Ratio of net investment income
to average net assets 0.07%(b) 0.37% 1.21% 3.05% 2.45%(c)
______________________________________________________________________________________________
==============================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and is not annualized for periods
less than one year.
(b) Ratios are based on average daily net assets of $11,295,442.
(c) Annualized.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
TAX-FREE INVESTMENTS TRUST (TFIT)
TAX-FREE CASH RESERVE PORTFOLIO
RESOURCE CLASS
ANNUAL REPORT
MARCH 31, 2004
This report must be accompanied or preceded by a currently effective fund
prospectus, which contains more complete information, including sales charges
and expenses. Read it carefully before you invest.
YOUR GOALS. OUR SOLUTIONS.
--Registered Trademark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
TFIT-AR-5
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
[PHOTO OF This is the report on the Resource Class of Tax-Free
ROBERT H. Investments Trust (TFIT) Tax-Free Cash Reserve Portfolio for
GRAHAM] the fiscal year ended March 31, 2004.
The U.S. economy and stock market were healthy for most
of the fiscal year. Growth of gross domestic product (GDP)
was positive each quarter of the fiscal year, with the
initial estimate of GDP growth for the first quarter of 2004
coming in at an annualized rate of 4.2%. Though the S&P
500--Registered Trademark-- Index, a barometer of the broad
domestic stock market, faltered during March 2004, it
produced a return of 35.10% for the full fiscal year.
The influential federal funds target rate stood at 1.25%
as the fiscal year opened. In June, the U.S. Federal Reserve
(the Fed) lowered that rate to 1.00%, its lowest level since
1958 and the level where it stayed through the close of the
fiscal year. On lowering the rate in June, the Fed said it favored a more
expansive monetary policy because the economy had not yet exhibited sustainable
growth. In mid-March, shortly before the fiscal year ended, when the Fed left
rates at that level, it noted its belief that its accommodative stance on
monetary policy was helping support economic activity. Observing that inflation
remained in check and that resource use was slack, the Fed said it thought it
could be patient about changing its accommodative policy.
YOUR FUND
Historically low interest rates have kept yields on bank savings accounts and
money market funds, including the TFIT Tax-Free Cash Reserve Portfolio, quite
low. As of March 31, 2004, the Resource Class maintained its competitive
position, as shown in the table. Had the advisor and distributor not waived fees
and/or reimbursed expenses, performance would have been lower. The weighted
average maturity (WAM) of the portfolio was kept in a range of 30 to 55 days
during the fiscal year. As the fiscal year closed, the WAM stood at 33 days. The
short WAM enables the portfolio to respond quickly to changes in the interest
rate environment. Net assets of the Resource Class of the portfolio stood at
$299.2 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality ratings given by
three widely known credit rating agencies: AAAm from Standard & Poor's, Aaa from
Moody's and AAA from FitchRatings. Fund ratings are subject to change and are
based on several factors, including an analysis of a portfolio's overall credit
quality, market price exposure and management.
================================================================================
YIELDS AS OF 3/31/04
Monthly Seven-Day
Yield SEC Yield
Tax-Free Cash Reserve Portfolio 0.61% 0.67%
Resource Class
iMoneyNet All Tax-Free
Money Fund Averages--Registered Trademark-- 0.43% 0.46%
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.61% 0.63%
Institutions Only
iMoneyNet Tax-Free
Money Fund Averages--Registered Trademark-- 0.36% 0.39%
Stockbroker/General Purpose
The seven-day SEC yield and monthly yield represent annualized results for the
period, net of fees and expenses, and exclude any realized capital gains or
losses. Yields will fluctuate. iMoneyNet, Inc. is an independent mutual fund
performance monitor. The iMoneyNet All Tax-Free Money Fund Averages category
consists of funds that invest in short-term municipal securities, which are
exempt from federal taxation. The iMoneyNet Tax-Free Money Fund Averages
Institutions Only category consists of funds that invest in tax-exempt
obligations, including those of state and municipal authorities. The iMoneyNet
Tax-Free Money Fund Averages Stockbroker/General Purpose category consists of
funds that invest in obligations of tax-exempt entities, including state and
municipal authorities. The funds comprising these categories are open to
individual investors; however, an investor cannot invest directly into on of
these categories.
Performance quoted is past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Visit AIMinvestments.com
for the most recent month-end performance.
================================================================================
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
(continued)
The Tax-Free Cash Reserve Portfolio seeks to provide as high a level of
tax-exempt income as is consistent with preservation of capital and maintenance
of liquidity by investing in high quality, short-term municipal obligations. The
portfolio invests solely in "First Tier" securities as defined in Rule 2a-7
under the Investment Company Act of 1940, as amended.
IN CLOSING
We hope you find this report informative. AIM is committed to the primary goals
of safety, liquidity and yield in institutional fund management. We are also
dedicated to customer service, and we are ready to respond to your comments
about this report. Please contact one of our representatives at 800-659-1005 if
we can help.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman
March 31, 2004
The fund is not managed to track the performance of any particular index,
including the indexes defined here, and consequently, the performance of the
fund may deviate significantly from the performance of the indexes.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
2
SCHEDULE OF INVESTMENTS
March 31, 2004
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.19%
ALABAMA-2.67%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.05%, 12/01/26(b)(c) A-1+ VMIG-1 $25,000 $ 25,000,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (Children's Zoo Project); VRD Series 2002
RB
(LOC-AmSouth Bank)
1.17%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- ---------------------------------------------------------------------------------------------
Birmingham (City of) Public Parks and Recreation
Board (YMCA of Birmingham); VRD Series 1996 RB
(LOC-AmSouth Bank of Alabama)
1.17%, 06/01/16(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP (Acquired
11/05/02; Cost $4,100,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP (Acquired
04/16/03; Cost $4,870,000)
1.08%, 01/01/43(c)(d)(e) A-1+ -- 4,870 4,870,000
- ---------------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease Revenue
VRD Series 2000 RB
(LOC-AmSouth Bank)
1.17%, 11/01/24(b)(c) A-1 -- 6,046 6,046,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding Unlimited Tax
Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Jefferson (County of); Refunding
VRD Series C-6 RB Wts.
1.02%, 02/01/40(c)(f) A-1 VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Mobile (City of) Port City Medical Clinic Board
(Infirmary Health); VRD Series 1998 B RB
1.04%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series 2003
GO
Wts. (LOC-Branch Banking & Trust)
1.05%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------------
Ridge (City of) Improvement District; Special
Assessment
VRD Series 2000 RB (LOC-AmSouth Bank)
1.05%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
=============================================================================================
85,281,000
=============================================================================================
</Table>
F-1
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ALASKA-0.10%
Alaska (State of) Industrial Development & Export
Authority (Safeway Inc. Projects); Refunding
VRD Series 1991 IDR
(LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(c) A-1 -- $ 1,895 $ 1,895,000
- ---------------------------------------------------------------------------------------------
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC) (Acquired 12/27/02; Cost
$1,200,000)
1.10%, 06/01/06(b)(c)(d) -- Aa1 1,200 1,200,000
=============================================================================================
3,095,000
=============================================================================================
ARIZONA-0.51%
Arizona (State of) Health Facilities Authority
(Pooled Loan Program);
VRD Series 1985 RB
1.07%, 10/01/15(c)(f) A-1 VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments Project);
Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP-Federal National
Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments); Refunding
Multi-Family Housing VRD Series 2001 A
IDR (CEP-Federal National Mortgage Association)
1.06%, 06/15/31(c) -- VMIG-1 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.; Series
2003 P Commercial Paper Notes (LOC-Bank of
America N.A.)
0.98%, 06/16/04(b) A-1+ P-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR
(CEP-Federal Home Loan Bank)
1.08%, 10/01/25(c) A-1+ -- 6,020 6,020,000
- ---------------------------------------------------------------------------------------------
Pima (County of) Industrial Development Authority
(Tucson Electric Power Co.-Irvington Road
Project); VRD Series 1982 IDR
(LOC-Credit Suisse First Boston)
1.05%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=============================================================================================
16,180,000
=============================================================================================
ARKANSAS-0.10%
Pulaski (County of) Public Facilities Board
(Health Facilities-Central Arkansas Radiation
Therapy Inc. Project); Educational Facilities
VRD Series 2001 RB (LOC-Bank of America N.A.)
1.10%, 07/01/08(b)(c)(g) -- -- 3,065 3,065,000
=============================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
CALIFORNIA-0.05%
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 (LOC-Comerica Bank
of California)
1.10%, 01/01/23(b)(c)(g) -- -- $ 1,500 $ 1,500,000
=============================================================================================
COLORADO-1.81%
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 01/01/33(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Naropa University
Project); VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 11/01/24(b)(c) A-1+ -- 930 930,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority
(National Cable Television Center & Museum
Project);
VRD Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/06(b)(c) A-1+ -- 2,310 2,310,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High School
Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/33(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (YMCA of Metro Denver
Project); Refunding VRD Series 2002 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 07/01/18(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Educational Loan Program;
Series 2003 TRAN
2.00%, 08/09/04 SP-1+ MIG-1 20,000 20,055,465
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Project); Refunding VRD
Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) A-1+ -- 3,400 3,400,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Craig Hospital Project); Refunding VRD Series
2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/20(b)(c) A-1+ -- 5,505 5,505,000
- ---------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Golden West Manor Inc. Project); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.07%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- ---------------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health);
VRD Series 2003 RB (LOC-Wells Fargo Bank N.A.)
1.02%, 03/15/23(b)(c) A-1+ -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project);
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.08%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- ---------------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc. Project);
Refunding Series 1993
IDR (LOC-Deutsche Bank A.G.)
1.20%, 06/01/04(b)(h)(i) A-1+ -- 1,130 1,130,000
- ---------------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Lafayette (City of) Exempla Improvement District
(Special Improvement No. 2-01); Refunding
Special Assessment VRD Series 2002 RB
(LOC-Wells Fargo Bank NW N.A.)
1.07%, 12/01/22(b)(c) A-1+ -- $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City & County of Denver
Water);
VRD Series 2003 PT-1872 RB (Acquired 05/29/03;
Cost $7,840,000)
1.07%, 12/01/22(c)(d)(e)(g) -- -- 7,840 7,840,000
- ---------------------------------------------------------------------------------------------
Regional Transportation (District of); Refunding
Sales Tax Series 2003 A RB
3.00%, 11/01/04(f) AAA Aaa 1,000 1,011,132
=============================================================================================
57,911,597
=============================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR
(LOC-Citizens Bank)
1.05%, 12/01/15(b)(j) A-1+ -- 1,400 1,400,000
=============================================================================================
DELAWARE-0.26%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB
(LOC-Citizens Bank of Pennsylvania)
1.02%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=============================================================================================
DISTRICT OF COLUMBIA-0.32%
District of Columbia (Abraham and Laura Lisner
Home for Aged Women); VRD Series 1992 RB
(LOC-Bank of America)
1.05%, 07/01/22(b)(c) -- VMIG-1 3,432 3,432,000
- ---------------------------------------------------------------------------------------------
District of Columbia (Resources for the Future
Inc.); VRD Series 1998 IDR (LOC-Wachovia Bank
N.A.) (Acquired 09/26/03; Cost $2,015,000)
1.10%, 08/01/29(b)(c)(d) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia Water &
Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,670,000)
1.10%, 10/01/17(c)(d)(e) -- VMIG-1 4,670 4,670,000
=============================================================================================
10,117,000
=============================================================================================
FLORIDA-5.43%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD Series
2002-24 Ctfs. (Acquired 10/24/02; Cost
$5,000,000)
1.10%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Collier (County of) Health Facilities Authority
(Cleveland Clinic Health); VRD Hospital Series
2003 C-1 RB (LOC-JP Morgan Chase Bank)
1.12%, 01/01/35(b)(k) A-1+ VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
VRD Hospital Series 2003 C-2 RB (LOC-JP Morgan
Chase Bank)
1.00%, 05/20/04 A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant); VRD
Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/26(b)(c)(g) -- -- 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Lighthouse Bay Apartments); Multi-Family
Housing VRD Series 2002 RB (CEP-Federal Home
Loan Mortgage Corp.)
1.00%, 12/01/32(c) A-1+ -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------------
Florida (State of) Board of Education; Refunding
Unlimited Tax Capital Outlay Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,207,760
- ---------------------------------------------------------------------------------------------
Fort Lauderdale (City of) (Pinecrest Preparatory
School Project);
VRD Series 2002 RB
1.05%, 06/01/32(c)(f) -- Aaa 7,675 7,675,000
- ---------------------------------------------------------------------------------------------
Highlands (County of) Health Facilities Authority
(Adventist Health System Project);
VRD Series 2000 A RB
1.02%, 12/01/26(c)(f) A-1+ VMIG-1 33,000 33,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1996 A RB
1.02%, 10/01/26(c)(f) A-1 VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 02/20/01;
Cost $2,300,000)
1.10%, 12/01/23(b)(c)(d)(g) -- -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.10%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- ---------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper Notes
(LOC-Bank of America N.A.)
0.90%, 04/01/04(b) -- VMIG-1 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Marion (County of) Hospital District (Munroe
Regional Health System); Health System
Improvement VRD Series 2000 RB
(LOC-AmSouth Bank of Florida)
1.07%, 10/01/30(b)(c) -- VMIG-1 13,575 13,575,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (State of Florida Mid-Bay
Bridge Authority);
VRD Series 2002 PT-1531 RB (Acquired 10/10/02;
Cost $9,100,000)
1.07%, 10/01/18(c)(d)(e) A-1+ -- 9,100 9,100,000
- ---------------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University Project);
VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/25(b)(c)(g) -- -- $ 9,400 $ 9,400,000
- ---------------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR
(LOC-Bank of America N.A.)
1.10%, 12/01/19(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Florida Department of
Environmental Protection); Floating Rate Trust
Ctfs. VRD Series 2002-722 RB (Acquired
11/13/02; Cost $9,925,000)
1.07%, 07/01/22(c)(d)(e) A-1 -- 9,925 9,925,000
- ---------------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD Series
1999 RB (LOC-Bank of America N.A.)
1.10%, 08/01/19(b)(c)(g) -- -- 1,550 1,550,000
- ---------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Presbyterian Retirement Communities Project);
VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired
01/29/02-12/18/03; Cost $7,945,000)
1.10%, 11/01/28(b)(c)(d)(g) -- -- 7,945 7,945,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) (Benjamin Private School
Project);
VRD Series 2003 RB (LOC-Bank of America N.A.)
1.05%, 07/01/25(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/31(b)(c)(g) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB
(LOC-Bank of America N.A.) (Acquired 05/02/02;
Cost $5,210,000)
1.10%, 08/01/20(b)(c)(d)(g) -- -- 5,210 5,210,000
- ---------------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community Treatment
DACCO Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/22(b)(c)(g) -- -- 5,245 5,245,000
- ---------------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.; VRD
Series 1998 RB (LOC-Wachovia Bank N.A.)
1.06%, 05/01/28(b)(c) A-1 -- 900 900,000
=============================================================================================
173,537,760
=============================================================================================
GEORGIA-5.18%
Clayton (County of) Development Authority (Delta
Airlines Project); Special Facilities VRD
Series 2000 A RB
(LOC-General Electric Capital Corp.)
1.06%, 06/01/29(b)(c) A-1+ VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 03/01/24(c) A-1+ -- $ 6,870 $ 6,870,000
- ---------------------------------------------------------------------------------------------
Cobb (County of) School District; Series 2004
Notes
1.75%, 12/31/04 -- MIG-1 20,000 20,115,923
- ---------------------------------------------------------------------------------------------
Dahlonega (City of) Downtown Development
Authority (North Georgia Student Housing
Project); Student Housing VRD Series 2001 A RB
(LOC-Wachovia Bank N.A.)
1.05%, 06/01/28(b)(c) -- VMIG-1 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (Atlanta
Jewish Community Center); VRD Series 1999 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/24(b)(c) A-1 -- 4,785 4,785,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Camden
Brook Project); Refunding Multi-Family Housing
VRD Series 1995 RB
(CEP-Federal National Mortgage Association)
1.02%, 06/15/25(c) A-1+ -- 17,300 17,300,000
- ---------------------------------------------------------------------------------------------
DeKalb (County of) Housing Authority (Timber
Trace Apartments Project); Refunding
Multi-Family Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- 6,475 6,475,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia) VRD
Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
1.08%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education Project);
Educational Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.06%, 06/01/15(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Fulton (County of) Hospital Authority (Northside
Hospital Inc.); VRD Series 2003 A RAN
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/18(b)(c) -- VMIG-1 29,640 29,640,000
- ---------------------------------------------------------------------------------------------
Georgia (State of); Unlimited Tax Series 1999 D
GO
5.80%, 11/01/04 AAA Aaa 1,400 1,437,699
- ---------------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Notes Series 2004 GO
1.75%, 12/30/04 -- MIG-1 15,000 15,078,796
- ---------------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/14(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Private Colleges & Universities Authority (Mercer
University Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.12%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Roswell (City of) Housing Authority (Rosemont
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB
(CEP-Federal Home Loan Mortgage Corp.)
1.05%, 01/01/34(c) A-1+ -- $10,555 $ 10,555,000
- ---------------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority (Ridgeview
Institute Inc. Project);
VRD Series 2002 RB (LOC-Wachovia Bank N.A.)
1.06%, 11/01/27(b)(c) -- VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
Whitfield (County of) Residential Care Facilities
for the Elderly (Royal Oaks Senior Living
Community); VRD Series 1992 RB
(LOC-Wachovia Bank N.A.) (Acquired 11/14/03;
Cost $3,315,000)
1.05%, 11/01/25(b)(c)(d) A-1 -- 3,315 3,315,000
=============================================================================================
165,472,418
=============================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01; Cost
$6,000,000)
1.08%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired 02/27/03;
Cost $3,890,000)
1.10%, 07/01/18(c)(d)(e) -- VMIG-1 3,890 3,890,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of) Department of Budget and
Finance (Kahala Nui Project); Special Purpose
VRD Series 2003 D RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/33(b)(c)(g) -- -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Hawaii (State of); Refunding Unlimited Tax Series
1997 CO GO
6.00%, 03/01/05(f) AAA Aaa 1,000 1,045,170
=============================================================================================
12,935,170
=============================================================================================
IDAHO-0.74%
Canyon (County of) School District No. 131 Nampa;
Unlimited Tax Series 2003 GO
2.00%, 08/15/04 AAA Aaa 1,010 1,013,423
- ---------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Pooled Financing Program); ACES Series 1985 RB
(LOC-U.S. Bank of Idaho)
1.03%, 10/01/10(b)(c) -- VMIG-1 3,925 3,925,000
- ---------------------------------------------------------------------------------------------
Idaho (State of); Limited TAN GO
2.00%, 06/30/04 SP-1+ MIG-1 15,000 15,035,409
- ---------------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic Valley
Regional Medical Center Project); VRD Series
2001 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 12/01/21(b)(c) -- Aaa 3,640 3,640,000
=============================================================================================
23,613,832
=============================================================================================
</Table>
F-8
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-11.65%
ABN AMRO Munitops Ctfs. Trust (City of Chicago);
Refunding Limited Tax Multi-State Non-AMT VRD
Series 2001-34 Ctfs.
(Acquired 11/15/01; Cost $10,000,000)
1.12%, 07/01/07(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 Class A RB (Acquired 08/26/99; Cost
$10,000,000)
1.09%, 03/15/07(c)(d)(e) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 Class
A RB (Acquired 05/06/02; Cost $10,130,000)
1.09%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax
VRD Series 2002 B GO
1.02%, 01/01/37(c)(f) A-1+ VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Limited Tender Series 2004
Notes GO
(LOC-State Street Bank & Trust Co.)
1.05%, 01/27/06(b)(l) SP-1+ MIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series 2002
B GO
1.04%, 01/01/37(c)(f) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Public
Building Commission); VRD Series 2003-0015
Class A COP (Acquired 05/14/03; Cost
$2,800,000)
1.08%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water &
Sewer); VRD Series 2001-1308 COP (Acquired
12/12/01; Cost $8,655,000)
1.08%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
(Acquired 04/02/01; Cost $4,950,000)
1.17%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (County of Cook Regional
Transportation Authority); VRD Series 2000-1303
COP (Acquired 03/26/01;
Cost $19,000,000)
1.08%, 07/01/23(c)(d)(e) A-1+ -- 19,000 19,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
Unlimited Tax VRD Series 2003-0023 Class A COP
(Acquired 06/12/03; Cost $3,775,000)
1.08%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois); VRD
Series 2000-1304 COP (Acquired 06/27/00; Cost
$7,340,000)
1.08%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust-Class A; VRD Series
2002-1306 COP
(Acquired 05/02/02; Cost $5,500,000)
1.08%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18 RB
(Acquired 02/19/03; Cost $3,160,000)
1.10%, 05/01/20(c)(d)(e) -- VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (City of Chicago Board of
Education); Unlimited
Tax VRD Series 2000 A4 GO (Acquired 11/12/03;
Cost $4,845,000)
1.30%, 11/10/04(d)(e)(h)(i)(n) -- VMIG-1 $ 4,845 $ 4,845,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago Emergency
Telephone System);
Limited Tax VRD Series 2002 A44 GO
(Acquired 08/02/02; Cost $7,865,000)
1.10%, 01/01/20(c)(d)(e) -- VMIG-1 7,865 7,865,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago); Limited
Tax VRD Series 2000
A12 GO (Acquired 10/13/00; Cost $10,000,000)
1.10%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Cook County); Unlimited Tax
VRD Series 2003 B11 GO (Acquired 01/29/03; Cost
$3,500,000)
1.10%, 11/15/10(c)(d)(e) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); Unlimited Tax VRD
Series 2002 A41 GO
(Acquired 07/25/02; Cost $17,870,000)
1.10%, 06/01/17(c)(d)(e) -- VMIG-1 17,870 17,870,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Regional Transportation
Authority of Illinois); VRD Series 2001 A93
(Acquired 10/10/01; Cost $3,675,000)
1.10%, 07/01/27(c)(d)(e) -- VMIG-1 3,675 3,675,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois);
Unlimited Tax VRD Series 2001 A124 GO (Acquired
11/26/01; Cost $7,930,000)
1.10%, 11/01/26(c)(d)(e) A-1 -- 7,930 7,930,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois); VRD
Series 2000 S GO
(Acquired 03/20/00; Cost $7,400,000)
1.10%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(American College of Surgeons); VRD Series 1996
RB (LOC-Northern Trust Co.)
1.10%, 08/01/26(b)(c) A-1+ -- 4,866 4,866,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(BAPS Inc. Project);
VRD Series 2002 RB (LOC-Comerica Bank-Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(British Home for Retired Men & Women); VRD
Series 2001 RB
(LOC-LaSalle Bank N.A.)
1.05%, 11/01/27(b)(c) A-1 -- 9,120 9,120,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Chicago Shakespeare Project); VRD Series 1999
RB (LOC-LaSalle Bank N.A.)
(Acquired 09/24/03; Cost $4,100,000)
1.05%, 01/01/19(b)(c)(d) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Embers Elementary School Project); Educational
Facilities VRD Series 2002 RB
(LOC-LaSalle Bank N.A.) (Acquired 11/04/03;
Cost $2,315,000)
1.06%, 04/01/32(b)(c)(d) A-1 -- 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance Authority
(Evanston Northwestern Healthcare); VRD Series
2001 C RB
1.02%, 05/01/31(c) A-1 VMIG-1 $ 1,900 $ 1,900,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Glenwood School for Boys); VRD Series 1998 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/33(b)(c) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Institute of Gas Technology Project); VRD
Series 1999 IDR (LOC-Harris Trust & Savings
Bank)
1.07%, 09/01/24(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 A
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Jewish Charities Program); VRD Series 2003 B
RN (LOC-Harris Trust & Savings Bank)
1.05%, 06/30/04(b)(c) A-1+ -- 5,470 5,470,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Lyric Opera Chicago Project); VRD Series 1994
RB (LOC-Northern Trust Co., Harris Trust &
Savings, Bank One N.A.)
1.05%, 12/01/28(b)(c) A-1 VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Mount Carmel High School Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(North Shore Country Day School); VRD Series
2003 RB (LOC-Northern Trust Co.)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,825 2,825,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(Oak Park Residence Corp. Project); VRD Series
2001 RB (LOC-LaSalle Bank N.A.)
(Acquired 01/29/03; Cost $2,975,000)
1.04%, 07/01/41(b)(c)(d) A-1 -- 2,975 2,975,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(West Central, Illinois Educational Project);
VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.05%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Development Finance Authority
(World Communications Inc.); VRD Series 2000 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/15(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series 2002
RB (LOC-Fifth Third Bank)
1.10%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Cultural Pooled Financing); VRD
Series 1998 RB
(LOC-American National Bank & Trust)
1.05%, 03/01/28(b)(c) A-1 -- $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry); VRD
Series 1992 RB
(LOC-First National Bank)
1.08%, 10/01/26(b)(c) -- VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB
(LOC-American National Bank & Trust)
1.05%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University Project);
VRD Series 1985 RB
1.05%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
1.05%, 12/15/25(c) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bensenville Home Society); VRD Series 1989 A
RB
(LOC-American National Bank & Trust)
1.06%, 02/15/19(b)(c) A-1 -- 1,150 1,150,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Blessing Hospital); VRD Series 1999 B RB
1.05%, 11/15/29(c)(f) A-1 VMIG-1 4,710 4,710,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Cradle Society Project);
VRD Series 1998 RB (LOC-American National Bank
& Trust)
1.08%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Decatur Memorial Hospital Project); VRD Series
1996 A RB
0.98%, 11/15/24(c)(f) A-1+ VMIG-1 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Franciscan Eldercare); Refunding VRD Series
1996 C RB
(LOC-LaSalle National Bank)
1.05%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Northwestern Memorial Hospital); VRD Series
1995 RB
1.10%, 08/15/25(k) A-1+ VMIG-1 14,300 14,300,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(OSF HealthCare System); VRD Series 2002 RB
(LOC-Fifth Third Bank)
1.12%, 11/15/27(k) A-1+ VMIG-1 1,600 1,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Peace Memorial Ministries); VRD Series 2003 B
RB (LOC-LaSalle Bank N.A.)
1.02%, 08/15/33(b)(c) A-1 -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Resurrection Health); VRD Series 1999 B RB
1.03%, 05/15/29(c)(f) A-1 VMIG-1 2,210 2,210,000
- ---------------------------------------------------------------------------------------------
</Table>
F-12
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities Authority
(St. Lukes Medical Center); VRD Series 1998 B
RB
1.04%, 11/15/23(c)(f) A-1 VMIG-1 $ 1,000 $ 1,000,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(University of Chicago Hospitals); VRD Series
1998 RB
1.12%, 08/01/26(f)(k) A-1 VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.07%, 01/01/16(c)(f) -- VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
1.07%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------------
Illinois (State of); Sales Tax First Series 2002
RB
5.00%, 06/15/04 AAA Aa3 1,000 1,008,013
- ---------------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series 2003 GO
Notes
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,001,948
- ---------------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,003,211
- ---------------------------------------------------------------------------------------------
Kane (County of) (Glenwood School for Boys); VRD
Series 1993 RB
(LOC-Harris Trust & Savings Bank)
1.05%, 02/01/28(b)(c) A-1+ -- 13,700 13,700,000
- ---------------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); Multi-Family Housing VRD Series 2000
RB
(CEP-Federal National Mortgage Association)
1.05%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew Society);
VRD Series 1996 A RB (LOC-Northern Trust Co.)
1.10%, 12/01/21(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Orland Hills (City of); Multi-Family Housing VRD
Series 1995 A RB
(LOC-LaSalle National Bank)
1.10%, 12/01/04(b)(c) A-1 -- 1,470 1,470,000
=============================================================================================
372,384,172
=============================================================================================
INDIANA-2.30%
ABN AMRO Munitops Ctfs. Trust (State of Indiana);
Multi-State Non-AMT VRD Series 2003-27 RB
(Acquired 11/12/03; Cost $13,795,000)
1.14%, 8/11/04(d)(e)(i)(l)(n) -- MIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------------
Brownsburg (City of) Independent School Building
Corp. No. 2; First Meeting Series 1995 RB
5.95%, 02/01/05(i)(o) AAA Aaa 1,700 1,801,273
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,420,000)
1.30%, 11/10/04(d)(e)(i)(j)(n) -- VMIG-1 9,420 9,420,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Advanced Program
Notes);
Series 2004 A RN
2.00%, 01/25/05 SP-1+ MIG-1 17,500 17,627,199
- ---------------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Bond Bank (Midyear Funding
Program Notes);
Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 $ 9,000 $ 9,001,092
- ---------------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Pike Township Metro
School District);
Series 1995 A RB
5.80%, 02/01/05(i)(o) AAA Aaa 2,750 2,886,064
- ---------------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Marian College Project); VRD Series
2003 RB (LOC-Bank One N.A.)
1.02%, 04/01/24(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Hospitals Project); VRD
Series 2000 A RB
(LOC-Bank of America N.A.)
1.05%, 07/01/28(b)(c) A-1+ -- 9,815 9,815,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Community Mental Health &
Rehabilitation); VRD Series 1990 RB
(LOC-LaSalle National Bank)
1.07%, 11/01/20(b)(c) A-1 -- 1,460 1,460,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Fayette Memorial Hospital
Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.17%, 10/01/32(b)(k) A-1+ -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------------
Indiana (State of) Health Facilities Financing
Authority (Hartsfield Village Project); VRD
Series 1997 B RB
(LOC-LaSalle National Bank)
1.02%, 08/15/27(b)(c) A-1 -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Miami (County of) Economic Development (Dukes
Memorial Hospital Project); VRD Series 2000 RB
(LOC-Wells Fargo Bank N.A.)
1.02%, 10/01/30(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
73,405,628
=============================================================================================
IOWA-1.51%
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community); VRD
Series 2003 A RB
(LOC-LaSalle Bank N.A.)
1.02%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) Higher Education Loan Authority
(Graceland Private College); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 B Wts. Ctfs.
2.00%, 01/28/05(f) -- MIG-1 8,000 8,063,984
- ---------------------------------------------------------------------------------------------
Iowa (State of); Series 2003 TRAN
2.00%, 06/29/04 SP-1+ MIG-1 16,500 16,537,892
- ---------------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa City (City of) (ACT, Inc.); VRD Series 2001
RB
1.22%, 04/01/32(k) A-1+ -- $ 6,815 $ 6,815,000
=============================================================================================
48,416,876
=============================================================================================
KANSAS-0.44%
Lenexa (City of) Health Care Facilities (Lakeview
Village Inc.);
VRD Series 2002 B RB (LOC-LaSalle Bank N.A.)
1.05%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities (YMCA of
Greater Kansas City Project); VRD Series 2002 B
RB (LOC-Bank of America N.A.)
1.10%, 11/01/18(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities (YMCA
of Wichita Project); VRD Series 1998 XI RB
(LOC-Bank of America NT & SA)
(Acquired 02/15/01; Cost $3,550,000)
1.10%, 08/01/09(b)(c)(d) A-1+ -- 3,550 3,550,000
=============================================================================================
13,950,000
=============================================================================================
KENTUCKY-0.95%
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-Ewing);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.11%, 06/01/33(b)(c) A-1 -- 5,910 5,910,000
- ---------------------------------------------------------------------------------------------
Louisville & Jefferson (Counties of) Metropolitan
Sewer District; Sewer & Drain System Series
1999 A RB
6.50%, 05/15/04(f) AAA Aaa 1,595 1,605,667
- ---------------------------------------------------------------------------------------------
Newport (City of) League of Cities Funding Trust;
Lease Program VRD Series 2002 RB (LOC-U.S. Bank
N.A.)
1.04%, 04/01/32(b)(c) -- VMIG-1 23,000 23,000,000
=============================================================================================
30,515,667
=============================================================================================
LOUISIANA-1.34%
Eagle Tax Exempt Trust (City of New Orleans); VRD
Series 2000-1801 COP (Acquired 10/10/00; Cost
$6,000,000)
1.08%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series 2003
RB
5.00%, 06/01/04(f) AAA Aaa 1,810 1,822,116
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Glen Retirement System Project); VRD Series
2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,490,000)
1.17%, 09/01/16(b)(c)(d) -- VMIG-1 3,490 3,490,000
- ---------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Pennington Medical Foundation Project); VRD
Series 2001 A RB (LOC-Bank One N.A.)
1.05%, 07/01/31(b)(c) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Louisiana (State of) Offshore
Term Authority (Loop LLC Project); Refunding
Deepwater Port VRD Series 1999 RB (LOC-Bank One
Louisiana)
1.08%, 10/01/19(b)(c) A-1 VMIG-1 $16,400 $ 16,400,000
=============================================================================================
42,712,116
=============================================================================================
MARYLAND-1.08%
Anne Arundel (County of); Unlimited Tax Series
2002 GO
4.25%, 03/01/05 AA+ Aa1 1,740 1,790,483
- ---------------------------------------------------------------------------------------------
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD Series
1997 C RB
(LOC-Branch Banking & Trust)
1.05%, 01/01/27(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Gaithersburg (City of) Economic Development
(Asbury Methodist); VRD Series 1997 A RB
1.02%, 07/01/27(c)(f) A-1+ -- 4,130 4,130,000
- ---------------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank Trust Co.)
1.20%, 06/01/04(b)(h)(i) A-1 -- 1,055 1,055,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(Baltimore County Project); Student Housing VRD
Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 11/01/31(b)(c) A-1 -- 14,250 14,250,000
- ---------------------------------------------------------------------------------------------
Maryland (State of) Economic Development Corp.
(YMCA of Central Maryland Inc. Project); VRD
Series 2003 RB
(LOC-Branch Banking & Trust)
1.05%, 04/01/28(b)(c) -- VMIG-1 3,600 3,600,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Maryland Health & Higher
Educational Facilities Authority); VRD Floating
Rate Trust Ctfs. Series 2003-829 RB
(Acquired 06/19/03; Cost $3,800,000)
1.07%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=============================================================================================
34,625,483
=============================================================================================
MASSACHUSETTS-1.37%
Billerica (City of); Limited Tax Series 2004 BAN
GO
2.00%, 01/07/05 SP-1+ MIG-1 18,000 18,120,475
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-2
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Boston University); VRD Series 2002 R-4
RB
1.01%, 10/01/42(f)(k) A-1+ VMIG-1 13,840 13,840,000
- ---------------------------------------------------------------------------------------------
Massachusetts (State of) Water Resources
Authority; Series 1993 C RB
5.25%, 12/01/04(i)(o) AAA Aaa 1,460 1,529,033
- ---------------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS-(CONTINUED)
Massachusetts (State of); Ltd Tax Consolidated
Loan Series 1994 B GO
6.00%, 08/01/04(i)(o) NRR NRR $ 975 $ 1,010,524
=============================================================================================
43,800,032
=============================================================================================
MICHIGAN-3.69%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited Tax
VRD Series 1998 IDR
(LOC-Comerica Bank)
1.05%, 10/01/23(b)(c)(m) -- -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Detroit (City of) Economic Development Corp.
(Waterfront Reclamation); VRD Series 1999 B RB
(LOC-Bank of America NT & SA)
1.05%, 05/01/09(b)(c) A-1+ P-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit School
District); Unlimited Tax VRD Series 2002-6014
Class A COP (Acquired 11/06/02; Cost
$7,105,000)
1.08%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------------
Eaton Rapids (City of) Public Schools; Unlimited
Tax Series 1995 GO
5.50%, 05/01/04(i)(o) AAA Aaa 1,000 1,013,700
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,920,000)
1.10%, 07/01/32(c)(d)(e) -- VMIG-1 4,920 4,920,000
- ---------------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03; Cost
$4,520,000)
1.10%, 07/01/26(c)(d)(e) -- VMIG-1 4,520 4,520,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water Supply
System); VRD Series 2000 D RB (Acquired
01/21/00; Cost $10,000,000)
1.10%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
1.10%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Jackson (County of) Economic Development Corp.
(Vista Grande Villa); Refunding Limited VRD
Series 2001 A RB
(LOC-LaSalle National Bank)
1.10%, 11/01/31(b)(k) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Comprehensive Transportation
Fund;
Series 2002 B RB
4.00%, 05/15/04 AAA Aa3 1,300 1,304,573
- ---------------------------------------------------------------------------------------------
Michigan (State of) Housing Development Authority
(Parks of Taylor Apartments); Multi-Family VRD
Series 2002 A RB
(CEP-Federal National Mortgage Association)
1.03%, 08/15/32(c) A-1+ -- 2,135 2,135,000
- ---------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2003 B-2 RN (LOC-J.P. Morgan Chase &
Co.)
2.00%, 08/23/04(b) SP-1+ -- 8,000 8,030,220
- ---------------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); Limited Tax VRD
Series 1997 RB
(LOC-Standard Federal Bank)
1.02%, 11/01/27(b)(c) A-1 -- $13,300 $ 13,300,000
- ---------------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Notes Series
2004 GO
2.00%, 09/30/04 SP-1+ MIG-1 15,000 15,075,846
- ---------------------------------------------------------------------------------------------
Oakland (County of) Economic Development Corp.
(Rochester College Project); Limited Obligation
VRD Series 2001 RB
(LOC-Bank One Michigan)
1.12%, 08/01/21(b)(c) -- VMIG-1 3,111 3,111,000
- ---------------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech University
Project); Economic Development VRD Series 2001
RB (LOC-Bank One Michigan N.A.)
1.08%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(f) AAA Aaa 1,000 1,002,820
- ---------------------------------------------------------------------------------------------
University of Michigan; Refunding Hospital VRD
Series 1992 A RB
1.08%, 12/01/19(k) A-1+ VMIG-1 12,550 12,550,000
=============================================================================================
118,068,159
=============================================================================================
MINNESOTA-3.99%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.02%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03; Cost
$14,060,000)
1.05%, 03/01/21(c)(d)(e) A-1 -- 14,060 14,060,000
- ---------------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar Bank
N.A.)
1.22%, 05/01/26(b)(k)(m) -- -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Minneapolis-St. Paul (Cities of) Metropolitan
Council of Minnesota; Unlimited Tax Series 2002
D GO
5.00%, 02/01/05 AAA Aaa 1,190 1,228,470
- ---------------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities (Mayo
Foundation); Commercial Paper Notes Series
2000A
0.98%, 05/19/04 A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Series 2000 B
0.95%, 05/12/04 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------------
Series 2000 C
0.95%, 04/08/04 A-1+ -- 33,500 33,500,000
- ---------------------------------------------------------------------------------------------
Series 2001 A
0.95%, 04/13/04 A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Series 2001 B
0.95%, 04/13/04 A-1+ -- 10,600 10,600,000
- ---------------------------------------------------------------------------------------------
Series F
0.98%, 05/19/04 A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota); VRD
Series 1997 A RB
(LOC-First Interstate Bank)
1.07%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
=============================================================================================
127,548,470
=============================================================================================
MISSISSIPPI-1.15%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water &
Sewer); Multi-State Non-AMT VRD Series 2002-22
Ctfs. (Acquired 09/10/03; Cost $9,995,000)
1.20%, 6/23/04(d)(e)(i)(l)(n) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of Mississippi);
Unlimited Tax VRD Series 2002-6018 Class A COP
(Acquired 11/20/02; Cost $3,200,000) 1.08%,
11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A RB
(LOC-Bank One Louisiana)
1.05%, 11/01/18(b)(c) A-1 -- 4,800 4,800,000
- ---------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series 2003
RB (LOC-AmSouth Bank) 1.17%, 07/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
University of Mississippi Educational Building
Corp. (Campus Improvements Project); VRD Series
2000 RB
1.09%, 10/01/20(c)(f) -- VMIG-1 8,690 8,690,000
=============================================================================================
36,685,000
=============================================================================================
MISSOURI-0.65%
Missouri (State of) Development Finance Board
(Southeast Missouri State University);
Educational Facilities VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.05%, 10/01/23(b)(c) A-1+ -- 5,750 5,750,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); VRD Series 2000 RB (LOC-Firstar Bank
N.A.)
1.05%, 02/01/31(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Southwest Baptist
University Project); VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.17%, 10/01/33(b)(k) A-1+ -- 5,950 5,950,000
- ---------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.08%, 09/01/10(c) A-1+ VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South County);
VRD Series 2002 B IDR (LOC-LaSalle Bank N.A.)
1.05%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=============================================================================================
20,815,000
=============================================================================================
</Table>
F-19
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
MONTANA-0.37%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.05%, 08/01/27(b)(c)(g) -- -- $ 6,900 $ 6,900,000
- ---------------------------------------------------------------------------------------------
Montana (State of); Unlimited Tax Series 2003
TRAN GO
2.00%, 06/30/04 SP-1+ MIG-1 5,000 5,012,000
=============================================================================================
11,912,000
=============================================================================================
NEBRASKA-1.34%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 B RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 D RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------------
Nebhelp Inc.; Multi-Mode VRD Series 1985 E RB
1.10%, 12/01/15(c)(f) A-1+ VMIG-1 27,335 27,335,000
=============================================================================================
42,785,000
=============================================================================================
NEVADA-0.86%
ABN AMRO Munitops Ctfs. Trust (County of Washoe);
Refunding VRD Limited Tax Series 2001-24 Single
Asset Trust Ctfs. (Acquired 06/21/01; Cost
$5,500,000)
1.12%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------------
Carson (City of) (Carson-Tahoe Hospital Project);
Hospital VRD Series 2003 B RB
(LOC-U.S. Bank N.A.)
1.02%, 09/01/33(b)(c) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------------
Clark (County of); Refunding Limited Tax Series
1998 B GO
5.25%, 11/01/04 AA Aa2 2,245 2,298,523
- ---------------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements Limited
Tax Series 1996 A GO
6.00%, 05/15/04(o) NRR NRR 1,530 1,539,031
=============================================================================================
27,337,554
=============================================================================================
NEW HAMPSHIRE-0.64%
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
1.08%, 01/01/17(c)(d)(e) A-1 -- 5,475 5,475,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (New Hampshire Higher Educational &
Health Facilities Authority); Refunding VRD
Series 2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
1.08%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NEW HAMPSHIRE-(CONTINUED)
New Hampshire (State of) Health & Educational
Facilities Authority (Kendal at Hanover Issue);
VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/30(b)(c) A-1 -- $ 7,455 $ 7,455,000
=============================================================================================
20,415,000
=============================================================================================
NEW JERSEY-0.19%
Union (County of) Industrial Pollution Control
Financing Authority (Exxon Mobil Corp.
Project); Refunding Pollution Control VRD
Series 1994 RB
1.07%, 07/01/33(k) A-1+ -- 6,200 6,200,000
=============================================================================================
NEW MEXICO-0.04%
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(f) -- Aaa 1,200 1,207,819
=============================================================================================
NEW YORK-0.34%
ABN AMRO Munitops Ctfs. Trust (Triborough Bridge
& Tunnel Authority); VRD Series 2002-31 Non-AMT
Ctfs. (Acquired 03/24/04; Cost $10,000,000)
1.07%, 11/15/10(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
New York (State of); Unlimited Tax Series 1994 B1
GO
7.20%, 08/15/04(i)(o) NRR NRR 1,000 1,032,676
=============================================================================================
11,032,676
=============================================================================================
NORTH CAROLINA-2.29%
Albemarle (City of) Hospital Authority;
Healthcare Facilities VRD Series 2000 RB
(LOC-Wachovia Bank N.A.)
1.01%, 10/01/15(b)(c) A-1 -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Dare (County of); Utility System Series 1994 RB
5.75%, 06/01/04(i)(o) AAA Aaa 1,000 1,027,777
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University Foundation);
Student Housing Facilities VRD Series 2001 RB
(LOC-Wachovia Bank N.A.)
1.10%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America N.A.)
1.05%, 01/01/14(b)(c)(g) -- -- 4,500 4,500,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Goodwill Community Foundation
Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.05%, 04/01/22(b)(c)(g) -- -- 2,260 2,260,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Financing Agency (Wolfpak Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.05%, 04/01/12(b)(g) -- -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care Commission
(Cleveland Regional Medical Center Project);
Health Care Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.05%, 01/01/18(b)(c)(g) -- -- $19,437 $ 19,437,000
- ---------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care Commission
(Lutheran Retirement Project); VRD Series 1999
RB
(LOC-Bank of America N.A.) (Acquired 12/01/03;
Cost $1,785,000) 1.05%, 01/01/19(b)(c)(d)(g) -- -- 1,785 1,785,000
- ---------------------------------------------------------------------------------------------
Wake (County of); Public Improvement Unlimited
Tax Series 2004 GO
3.00%, 03/01/05 AAA Aaa 10,000 10,171,800
=============================================================================================
73,326,577
=============================================================================================
OHIO-5.20%
Akron (City of) (Community Learning Centers);
Income Tax Series 2004 B RB
2.00%, 12/01/04(f) AAA Aaa 1,000 1,005,952
- ---------------------------------------------------------------------------------------------
Allen (County of); Refunding Limited Tax Series
2002 GO
1.70%, 12/01/04(f) -- Aaa 1,000 1,004,298
- ---------------------------------------------------------------------------------------------
Butler (County of) Healthcare Facilities
(Lifesphere Project):
Refunding & Improvement Series 2002 RB
(LOC-U.S. Bank N.A.)
1.02%, 05/01/27(b)(c) A-1 -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------------
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB
(LOC-National City Bank)
1.06%, 12/01/21(b)(c) -- VMIG-1 11,515 11,515,000
- ---------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Project); Health Care VRD Series 1994 RB
(LOC-National City Bank)
1.07%, 11/01/13(b)(c) -- VMIG-1 2,130 2,130,000
- ---------------------------------------------------------------------------------------------
Cincinnati (City of) School District; Unlimited
Tax Series 2003 BAN GO
1.65%, 09/10/04 -- MIG-1 8,000 8,019,262
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care Facilities;
Refunding VRD Series 1999 RB (LOC-LaSalle
National Bank)
1.02%, 02/01/29(b)(c) A-1+ -- 22,985 22,985,000
- ---------------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding VRD
Series 2000 RB
(LOC-National City Bank)
1.05%, 11/15/19(b)(c) A-1 -- 800 800,000
- ---------------------------------------------------------------------------------------------
Kettering (City of) School District; Series 2004
BAN
2.00%, 07/22/04 -- MIG-1 15,000 15,047,305
- ---------------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Hospital Refunding VRD Series 1996 B
RB (LOC-Bank One N.A.)
1.04%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- ---------------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical Center
Project); Hospital Facilities VRD Series 2001
RB (LOC-National City Bank)
1.09%, 05/01/26(b)(c)(m) -- -- $15,385 $ 15,385,000
- ---------------------------------------------------------------------------------------------
Lorain (County of) Independent Living Facilities
(Elyria United Methodist Project); VRD Series
1999 RB (LOC-Bank One N.A.)
1.04%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 1997 B RB
1.03%, 12/01/28(c)(f) A-1+ VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities (Forum
Health Obligation Group); VRD Series 2002 B RB
(LOC-Fifth Third Bank)
1.06%, 12/01/27(b)(c) -- VMIG-1 7,200 7,200,000
- ---------------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation District;
Water Series 1994 RB
7.75%, 05/15/04(i)(o) NRR NRR 8,000 8,224,306
- ---------------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.05%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- ---------------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest General
Health Center); Hospital Improvement VRD Series
1997 RB
(LOC-Fifth Third Bank)
1.06%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- ---------------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series 1996 RB
(LOC-National City Bank)
1.06%, 12/01/10(b)(c) A-1 -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Air Quality Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Fifth Third Bank)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 2,530 2,530,000
- ---------------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Project); Refunding Multi-Modal VRD
Series 2001 RB
(LOC-Northern Trust Co.)
1.04%, 11/01/25(b)(c) A-1+ VMIG-1 10,200 10,200,000
- ---------------------------------------------------------------------------------------------
Plain (City of) School District; Series 2003 RAN
2.00%, 05/20/04(m) -- -- 1,000 1,001,271
- ---------------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial Hospital);
VRD Series 2002 RB (LOC-Bank One N.A.)
1.06%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- ---------------------------------------------------------------------------------------------
Solon (City of); Unlimited Tax Series 2003 BAN GO
2.00%, 12/09/04(m) -- -- 2,800 2,816,567
- ---------------------------------------------------------------------------------------------
Twinsburg (City of) School District; Refunding
Unlimited Tax Series 2004 GO
2.00%, 12/01/04(f) -- Aaa 1,800 1,811,322
- ---------------------------------------------------------------------------------------------
Warren (County of) Health Care Facilities
(Otterbein); Refunding & Improvement VRD Series
1998 A RB (LOC-Fifth Third Bank)
1.07%, 07/01/21(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Youngstown (City of) School District; Unlimited
Tax Series 2003-3 BAN 2.00%, 05/05/04 -- MIG-1 $ 5,000 $ 5,004,616
=============================================================================================
166,219,899
=============================================================================================
OKLAHOMA-1.48%
Oklahoma (County of) Finance Authority (Oxford
Oaks Apartments Projects); Refunding
Multi-Family Housing VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.04%, 07/15/30(c) A-1+ -- 27,695 27,695,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance Authority
(Capitol Dome Project); VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.12%, 06/01/11(b)(c) A-1+ -- 4,555 4,555,000
- ---------------------------------------------------------------------------------------------
Oklahoma (State of) Water Resource Board; Loan
Program Notes Series 2003 A RB
0.87%, 04/01/04(h)(i) A-1+ -- 14,990 14,990,000
=============================================================================================
47,240,000
=============================================================================================
OREGON-0.24%
Oregon (State of) Health, Housing, Educational &
Cultural Facilities Authority (Quatama Crossing
LLC Housing Project); VRD Series 1998 RB
(LOC-U.S. Bank N.A.)
1.07%, 01/01/31(b)(c) -- Aa2 7,540 7,540,000
=============================================================================================
PENNSYLVANIA-3.23%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2001-30 Ctfs. (Acquired
10/31/02; Cost $5,000,000)
1.11%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building Authority);
Non-AMT VRD Series 2003-24 Ctfs. (Acquired
03/08/04; Cost $7,000,000)
1.11%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (ACES-Presbyterian University
Hospital); VRD Series 1988 B1 RB
(LOC-Bank One N.A.)
1.05%, 03/01/18(b)(c) -- VMIG-1 2,085 2,085,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 A RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 4,470 4,470,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Hospital Development
Authority (Presbyterian Health Center); VRD
Series 1990 D RB
1.02%, 03/01/20(c)(f) A-1+ VMIG-1 1,300 1,300,000
- ---------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh); VRD
Series 2002 IDR (LOC-Citizens Bank of
Pennsylvania)
1.15%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Altoona (City of) Authority; Water Series 1994 A
RB
6.50%, 11/01/04(i)(o) AAA -- $ 1,700 $ 1,786,650
- ---------------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care VRD
Series 1998 A IDR
1.02%, 01/01/28(c)(f) -- VMIG-1 11,310 11,310,000
- ---------------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial and
Commercial Development Authority (Asbury Villas
Project); VRD Series 2000 B IDR (LOC-LaSalle
Bank N.A.)
1.05%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP (Acquired
06/04/01; Cost $8,900,000)
1.08%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Pennsylvania);
VRD Series 94-3802 COP (Acquired 01/29/03; Cost
$1,295,000)
1.08%, 05/01/17(c)(d)(e) A-1+ 1,295 1,295,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (City of Scranton & County of
Lackawanna Health & Welfare Authority); VRD
Series 2002 A-18 RB
(Acquired 03/22/02; Cost $2,865,000)
1.10%, 03/01/15(c)(d)(e) -- VMIG-1 2,865 2,865,000
- ---------------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital Obligation);
Health Care VRD Series 2000 IDR
1.12%, 12/01/24(c)(f) A-1 -- 3,575 3,575,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Co-Op); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 10/01/14(b)(j) A-1+ -- 7,480 7,480,000
- ---------------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.); Pollution
Control VRD Series 1984 IDR (LOC-Rabobank
Nederland)
1.03%, 06/01/14(b)(j) A-1+ -- 1,105 1,105,000
- ---------------------------------------------------------------------------------------------
Lower Southampton (Township of); Unlimited Tax
Series 1994 GO
5.90%, 05/15/04(i)(o) AAA Aaa 1,000 1,005,832
- ---------------------------------------------------------------------------------------------
Northeastern Hospital & Education Authority
(Wilkes University Project); VRD Series 2002 B
RB (LOC-Wachovia Bank N.A.)
1.02%, 10/01/30(b)(c) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Fox Chase Cancer Center); VRD Series
2001 IDR
(LOC-JP Morgan Chase & Co.)
1.12%, 07/01/10(b)(k) A-1+ P-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Girard Estate Aramark Project); VRD
Series 2002 IDR (LOC-JP Morgan Chase Bank &
Co.)
1.00%, 06/01/32(b)(c) A-1+ -- 25,400 25,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of) Industrial Development
Authority (Girard Estate Facilities Leasing);
VRD Series 2001 IDR
(LOC-Morgan Guaranty Trust)
1.00%, 11/01/31(b)(c) A-1+ -- $ 1,400 $ 1,400,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Girard Estate
Project); Refunding VRD Series 1999 RB
(LOC-Chase Manhattan Bank (The)) (Acquired
03/18/04; Cost $2,000,000)
1.00%, 06/01/27(b)(c)(d) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease VRD
Series 1985 RB (LOC-Wachovia Bank)
1.06%, 11/01/05(b)(c) -- VMIG-1 4,890 4,890,000
=============================================================================================
103,367,482
=============================================================================================
SOUTH CAROLINA-3.75%
Charleston (County of) School District; Unlimited
Tax
Series 2004 BAN GO
2.00%, 11/04/04 SP-1+ MIG-1 20,000 20,122,169
- ---------------------------------------------------------------------------------------------
Cherokee (County of) (Newark Electric Division);
Industrial VRD Series 1985 RB (LOC-LaSalle Bank
N.A.)
1.05%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South Carolina
Public Service Authority); VRD Series 2000-4001
Class A COP (Acquired 09/08/00; Cost
$10,100,000)
1.08%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000 L RB
(Acquired 02/25/00; Cost $11,590,000)
1.10%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of South Carolina Transportation
Infrastructure); Floating Rate Trust Ctfs. VRD
Series 2002-728 RB (Acquired 11/13/02; Cost
$7,185,000) 1.07%, 10/01/22(c)(d)(e) A-1 -- 7,185 7,185,000
- ---------------------------------------------------------------------------------------------
Oconee (County of) (Duke); Refunding Pollution
Control VRD Series 1993 RB (LOC-Bank One Trust
Co.)
1.05%, 02/01/17(b)(c) -- P-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------------
Piedmont (City of) Municipal Power Agency;
Refunding Electric VRD Series 2002 B RB
1.05%, 01/01/18(c)(f) A-1 VMIG-1 32,700 32,700,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (Morris
College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 07/30/02;
Cost $2,300,000)
1.10%, 07/01/17(b)(c)(d) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Educational Facilities
Authority for Non-Profit Institutions (The
Allen University Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 03/27/01;
Cost $2,840,000) 1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,840 2,840,000
- ---------------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's Home
Project); Economic Development VRD Series 2003
RB (LOC-Branch Banking & Trust)
1.05%, 03/01/23(b)(c) -- VMIG-1 $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); Economic Development VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 09/01/32(b)(c)(g) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America N.A.) (Acquired 07/23/02;
Cost $2,775,000)
1.10%, 09/01/18(b)(c)(d) A-1+ -- 2,775 2,775,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Coastal Carolina
University Project); Student Housing VRD Series
2003 A RB (LOC-Wachovia Bank N.A.)
1.01%, 07/01/35(b)(c) A-1 -- 6,125 6,125,000
- ---------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); Economic Development
VRD Series 2003 A RB (LOC-Wachovia Bank N.A)
1.07%, 04/01/20(b)(c) A-1 -- 4,535 4,535,000
=============================================================================================
119,772,169
=============================================================================================
TENNESSEE-7.72%
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1997 RB
(LOC-Bank of America N.A.) (Acquired 10/20/03;
Cost $3,150,000)
1.05%, 11/01/27(b)(c)(d) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------------
Clarksville (City of) Public Building Authority
(Tennessee Municipal Bond Fund); Pooled Funding
VRD Series 1999 RB
(LOC-Bank of America N.A.) (Acquired 01/15/04;
Cost $30,500,000)
1.05%, 06/01/29(b)(c)(d) -- VMIG-1 30,500 30,500,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga); VRD
Series 2000-4202 COP (Acquired 10/10/00; Cost
$14,040,000)
1.08%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------------
Hamilton (County of) Industrial Development Board
(Tennessee Aquarium Project); VRD Series 1991
IDR
1.05%, 07/01/21(b)(c) A-1+ -- 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.05%, 11/01/26(c)(f) -- VMIG-1 12,700 12,700,000
- ---------------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Wastewater
Systems VRD Series 2002 RB
1.05%, 12/01/22(c)(f) -- VMIG-1 23,435 23,435,000
- ---------------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Health & Educational Facilities
Board (Trinity Christian Academy); Educational
Facilities VRD Series 2002 RB
(LOC-AmSouth Bank)
1.17%, 03/01/22(b)(c) -- VMIG-1 $ 5,400 $ 5,400,000
- ---------------------------------------------------------------------------------------------
Knox (County of) Health Education & Housing
Facility Board (Volunteer Student Housing LLC
Project); Student Housing VRD Series 2002 RB
(LOC-Wachovia Bank N.A.)
1.01%, 09/01/34(b)(c) -- VMIG-1 27,020 27,020,000
- ---------------------------------------------------------------------------------------------
Memphis (City of); Electric System Sub-Series
2003 A RB
2.00%, 12/01/04 AA- Aa3 10,000 10,056,093
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist Health System); VRD
Series 1997 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/27(b)(c) A-1+ VMIG-1 2,800 2,800,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Adventist/Sunbelt); VRD
Series 1996 A RB (LOC-SunTrust Bank of Central
Florida)
1.02%, 11/15/26(b)(c) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Park at Hermitage Project);
VRD Series 2004 RB (CEP-Federal National
Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 6,645 6,645,000
- ---------------------------------------------------------------------------------------------
Metropolitan Government (City of Nashville &
County of Davidson) Health & Education
Facilities Board (Vanderbilt University); VRD
Series 2002 B RB
1.10%, 10/01/32(k) A-1+ VMIG-1 3,200 3,200,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO
(Acquired 11/17/03; Cost $4,995,000)
1.07%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
1.05%, 06/01/15(c)(f) -- VMIG-1 5,570 5,570,000
- ---------------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.05%, 06/01/06(c)(f) -- VMIG-1 1,210 1,210,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
1.05%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II B-1 RB
1.05%, 06/01/25(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
1.05%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
1.05%, 06/01/10(c)(f) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 1,390 1,390,000
- ---------------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
VRD Series 1997 II F-1 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 $ 1,335 $ 1,335,000
- ---------------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
1.05%, 06/01/27(c)(f) -- VMIG-1 2,315 2,315,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
1.05%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 5,150 5,150,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.05%, 06/01/18(c)(f) -- VMIG-1 3,770 3,770,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.05%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.05%, 06/01/24(c)(f) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
1.05%, 06/01/07(c)(f) -- VMIG-1 15,850 15,850,000
- ---------------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.05%, 06/01/19(c)(f) -- VMIG-1 1,325 1,325,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Baptist Memorial Hospital);
Commercial Paper Notes (LOC-Bank of America
N.A.)
0.96%, 04/19/04(b) A-1+ -- 12,400 12,400,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (Briarcrest); Educational
Facilities VRD Series 2002 RB
(LOC-SunTrust Bank)
1.05%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- ---------------------------------------------------------------------------------------------
Shelby (County of) Health, Educational & Housing
Facilities Board (St. Benedict Auburndale
School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.07%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (County of) (Capital Outlay Notes);
Refunding Unlimited Tax Series 2002 GO
4.00%, 02/01/05(f) -- Aaa 1,000 1,024,042
- ---------------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB
(LOC-SunTrust Bank)
1.10%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
=============================================================================================
246,580,135
=============================================================================================
TEXAS-12.07%
ABN AMRO Munitops Ctfs. Trust (City of Leander
Independent School District); Refunding
Unlimited Multi-State Non-AMT Series 2002-16
Ctfs. (Acquired 08/20/03; Cost $5,395,000)
1.12%, 08/15/10(c)(d)(e) -- VMIG-1 5,395 5,395,000
- ---------------------------------------------------------------------------------------------
</Table>
F-29
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Alief (City of) Independent School District;
Unlimited Tax Series 1997 GO (CEP-Texas
Permanent School Fund)
6.60%, 02/15/05 AAA Aaa $ 1,000 $ 1,047,912
- ---------------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(ACES-Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
1.10%, 05/31/25(b)(c) -- VMIG-1 6,891 6,891,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Housing Finance Corp. (Stassney
Woods Apartments); Refunding Multi-Family
Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 10/15/32(c) -- VMIG-1 4,050 4,050,000
- ---------------------------------------------------------------------------------------------
Austin (City of) Water & Wastewater System;
Refunding Series 2002 A RB
5.00%, 11/15/04(f) AAA Aaa 4,000 4,096,630
- ---------------------------------------------------------------------------------------------
Austin (City of); Refunding Limited Tax Series
1993 GO
5.50%, 09/01/04 AA+ Aa2 4,250 4,329,198
- ---------------------------------------------------------------------------------------------
Austin (City of); Utility System Series 1994 RB
5.75%, 11/15/04(i)(o) AAA Aaa 2,605 2,679,819
- ---------------------------------------------------------------------------------------------
Bell (County of) Health Facilities Development
Corp. (Scott & White Memorial Hospital); VRD
Series 2000 B-1 RB
1.12%, 08/15/29(f)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Air Force Village); VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.03%, 04/19/04(b)(c) A-1+ -- 19,800 19,800,000
- ---------------------------------------------------------------------------------------------
Bexar (County of) Health Facilities Development
Corp. (Warm Springs); Healthcare System VRD
Series 1997 RB
(LOC-Chase Bank of Texas N.A.)
1.06%, 09/01/27(b)(c) -- VMIG-1 3,635 3,635,000
- ---------------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems; Refunding
Sub. Lien VRD Series 2001 A RB
0.90%, 11/04/04(f)(i)(l) A-1+ VMIG-1 3,300 3,300,000
- ---------------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development Corp.
(Incarnate Word Health Services); VRD Series
1998 B RB
1.00%, 08/15/28(c)(f) SP-1+ VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(i)(o) NRR NRR 3,120 3,166,800
- ---------------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding Series 2002 A RB
4.00%, 10/01/04 AA+ Aa2 3,500 3,551,725
- ---------------------------------------------------------------------------------------------
Dallas (City of); Limited Tax Series 2003 GO
3.50%, 02/15/05 AA+ Aa1 1,500 1,532,363
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Airport);
VRD Series 2000-4307 COP (Acquired 11/15/00;
Cost $15,750,000)
1.08%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------------
</Table>
F-30
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 2002-6019 Class A COP
(Acquired 11/13/02; Cost $8,910,000)
1.08%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water &
Sewer); VRD Series 97-4305 COP (Acquired
04/27/99; Cost $14,005,000)
1.08%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2001-4305 COP (Acquired 05/08/01;
Cost $7,390,000)
1.08%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll Road);
VRD Series 2002-6012 Class A COP (Acquired
11/20/02; Cost $1,580,000)
1.08%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------------
El Paso (County of); Refunding Limited Tax Series
2002 A GO
3.25%, 02/15/05(f) AAA Aaa 1,040 1,059,393
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03; Cost
$3,015,000)
1.10%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series 2001
A83 RB
(Acquired 11/18/03; Cost $3,615,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $1,050,000)
1.06%, 12/01/14(b)(c)(d) -- Aaa 1,050 1,050,000
- ---------------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding Multi-Family
VRD Series 1993 RB (CEP-General Electric
Capital Corp.)
1.08%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Cultural Education Facilities
Finance Corp. (Houston Music Hall Foundation);
VRD Series 1999 RB
(LOC-Chase Bank of Texas)
1.06%, 06/01/29(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (St. Luke's Episcopal Hospital); VRD
Refunding Series 2001 B RB
1.12%, 02/15/31(k) A-1+ -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Texas Medical Center Project); Special
Facilities VRD Series 1999 B RB
1.12%, 05/15/29(f)(k) A-1+ VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub. Lien
Series A RN 0.97%, 05/25/04 A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------------
Harris (County of) Houston Texas Sports Authority
(Rodeo); Jr. Lein VRD Series 2001 C RB
1.07%, 11/15/30(c)(f) A-1+ VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------------
</Table>
F-31
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of); Permanent Improvement
Unlimited Tax Series 2003 GO
3.00%, 10/01/04 AA+ Aa1 $ 1,000 $ 1,009,456
- ---------------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 2001 GO
5.00%, 10/01/04 AA+ Aa1 4,970 5,067,381
- ---------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(AMOCO Project); Pollution Control VRD Series
1985 IDR
1.05%, 05/01/04(h)(i) A-1+ P-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.95%, 05/25/04 A-1 P-1 20,000 20,000,000
- ---------------------------------------------------------------------------------------------
Humble (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 GO
(CEP-Texas Permanent School Fund)
1.02%, 06/15/23(c) A-1+ VMIG-1 12,500 12,500,000
- ---------------------------------------------------------------------------------------------
Mansfield (City of); Refunding Unlimited Tax
Series 2004 GO
2.00%, 02/15/05(f) AAA Aaa 855 861,669
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,945,000)
1.07%, 08/15/10(c)(d)(e) -- VMIG-1 4,945 4,945,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County Hospital
District); VRD Series 2002 PT-665 RB (Acquired
10/02/02; Cost $5,935,000)
1.07%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------------
Mesquite (City of) Independent School District
(School Building); Unlimited Tax VRD Series
2003 A GO (CEP-Texas Permanent School Fund)
1.02%, 08/01/29(c) SP-1+ -- 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Midlothian (City of) Industrial Development Corp.
(Box-Crow Cement Co. Project); Pollution
Control VRD Series 1984 IDR
(LOC-UBS A.G.)
1.03%, 12/01/09(b)(c) -- P-1 1,400 1,400,000
- ---------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust Floater
Ctfs. (State of Texas Affordable Housing
Corp.); Floating Rate Trust Ctfs. VRD Series
2003-780 RB (Acquired 02/19/03; Cost
$2,500,000)
1.07%, 09/01/22(c)(d)(e) -- VMIG-1 2,500 2,500,000
- ---------------------------------------------------------------------------------------------
North Central (Region of) Health Facility
Development Corp. (Northwest Senior Housing
Corp.); Retirement Facility VRD Series 1999 C
RB
(LOC-LaSalle Bank N.A.)
1.02%, 11/15/29(b)(c) A-1 -- 3,900 3,900,000
- ---------------------------------------------------------------------------------------------
Northside Independent School District; Refunding
Unlimited Tax Series 2003 A GO (CEP-Texas
Permanent School Fund)
1.00%, 08/01/04(i)(l) A-1+ VMIG-1 2,400 2,400,000
- ---------------------------------------------------------------------------------------------
Pasadena (City of) Independent School District;
Limited Tax VRD Series 2000 A GO (CEP-Texas
Permanent School Fund)
1.35%, 04/01/04(i)(l) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-32
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Red River Authority (Southwestern Public
Services); Refunding Pollution Control Series
1996 IDR
1.02%, 07/01/16(c)(f) A-1+ VMIG-1 $ 4,000 $ 4,000,000
- ---------------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series 2001 A
Commercial Paper Notes
0.98%, 04/07/04 A-1+ P-1 32,200 32,200,000
- ---------------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance Corp.
(Austin College Project); VRD Series 1997 RB
(LOC-Bank of America N.A.)
1.10%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------------
Texas (State of) Department of Housing &
Community Affairs (High Point III); Refunding
Multi-Family Housing VRD Series 1993 A RB
(CEP-Federal National Mortgage Association)
1.02%, 02/01/23(c) A-1+ -- 6,550 6,550,000
- ---------------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,428,820
- ---------------------------------------------------------------------------------------------
Tom Green (County of) Health Facilities
Development Corp. (Universal Health Services of
San Antonio); Health Facilities VRD Series 1985
RB (LOC-Morgan Guaranty Trust)
1.02%, 12/01/15(b)(c) A-1+ -- 2,200 2,200,000
- ---------------------------------------------------------------------------------------------
Travis (County of) Housing Finance Corp. (Travis
Station Apartments Project); Refunding
Multi-Family Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
1.03%, 02/15/34(c) -- VMIG-1 3,585 3,585,000
- ---------------------------------------------------------------------------------------------
Trinity River Industrial Development Authority
(Radiation Sterilizers); (LOC-American National
Bank & Trust)
VRD Series 1985 A IDR 1.10%, 11/01/05(b)(j) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------------
VRD Series 1985 B IDR 1.10%, 11/01/05(b)(j) A-1 -- 2,450 2,450,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing Finance
Corp.); VRD Series 2001 A18 RB (Acquired
11/18/03; Cost $4,680,000)
1.20%, 11/16/04(d)(e)(i)(n) A-1 -- 4,680 4,680,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Texas); Refunding
VRD Series 2003 B14 RB (Acquired 01/29/03; Cost
$8,010,000)
1.08%, 08/15/22(c)(d)(e) -- VMIG-1 8,010 8,010,000
=============================================================================================
385,723,166
=============================================================================================
UTAH-1.88%
Davis (County of) Housing Authority (Fox Creek
Apartments); Refunding Multi-Family Housing VRD
Series 1997 A RB
(LOC-Bank One Arizona N.A.)
1.06%, 08/15/27(b)(c) A-1 -- 4,240 4,240,000
- ---------------------------------------------------------------------------------------------
Davis (County of) School District (Utah School
Building Guarantee Program); Unlimited Tax
Series 2003 GO
2.00%, 06/01/04 -- Aaa 4,040 4,046,141
- ---------------------------------------------------------------------------------------------
</Table>
F-33
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Emery (County of) (PacifiCorp Projects);
Refunding Pollution Control VRD Series 1994 RB
1.12%, 11/01/24(f)(k) A-1 VMIG-1 $ 8,500 $ 8,500,000
- ---------------------------------------------------------------------------------------------
First Union MERLOTS (Intermountain Power Agency);
Power Supply VRD Series 2002 A59 RB (Acquired
10/23/02; Cost $7,120,000)
1.10%, 07/01/10(c)(d)(e) -- VMIG-1 7,120 7,120,000
- ---------------------------------------------------------------------------------------------
Intermountain Power Agency; Power Supply VRD
Series 1985 E RB
1.05%, 06/01/04(f)(i) A-1+ VMIG-1 14,770 14,770,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Murray Hospital
Revenue); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
1.07%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------------
Murray (City of) (IHC Health Services Inc.);
Hospital VRD Series 2003 C RB
1.12%, 05/15/36(k) A-1+ -- 6,450 6,450,000
- ---------------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project); Special
Assessment VRD Series 2003 (LOC-Citibank N.A.)
1.05%, 12/01/23(b)(c) A-1+ -- 5,900 5,900,000
- ---------------------------------------------------------------------------------------------
Salt Lake City (City of) Industrial Development
(Parkview Plaza Associates); VRD Series 1984
IDR (LOC-Bank One Arizona N.A.)
1.10%, 12/01/14(b)(c) A-1 -- 2,175 2,175,000
- ---------------------------------------------------------------------------------------------
Sanpete (County of) School Facilities (Wasatch
Academy); VRD Series 2003 RB (LOC-U.S. Bank
N.A.)
1.07%, 08/01/28(b)(c) A-1+ -- 1,000 1,000,000
=============================================================================================
60,196,141
=============================================================================================
VERMONT-0.54%
Vermont (State of) Educational & Health Building
Financing Agency (Fletcher Allen Health Care
Inc.); Hospital VRD Series 2000 B RB
1.09%, 12/01/30(c)(f) A-1+ VMIG-1 10,800 10,800,000
- ---------------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.05%, 01/01/08(b)(j) -- VMIG-1 2,640 2,640,000
- ---------------------------------------------------------------------------------------------
Vermont (State of); Unlimited Tax Series 1994 A
GO
6.40%, 01/15/05(i)(o) NRR NRR 3,510 3,723,496
=============================================================================================
17,163,496
=============================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); Hospital
Facility VRD Series 2001 B RB (LOC-SunTrust
Bank)
1.08%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- ---------------------------------------------------------------------------------------------
Harrisonburg (City of) Redevelopment & Housing
Authority (Misty Ridge Project); Refunding
Multi-Family Housing VRD Series 1991 A RB
(LOC-Bank One N.A.)
1.05%, 03/01/16(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------------
</Table>
F-34
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System); Commercial
Paper Notes
0.95%, 05/11/04 A-1+ P-1 $ 5,500 $ 5,500,000
- ---------------------------------------------------------------------------------------------
Winchester (City of) Industrial Development
Authority (Shenandoah University); Educational
Facilities Series 1994 IDR
6.70%, 10/01/04(i)(o) NRR NRR 1,620 1,697,758
=============================================================================================
10,742,758
=============================================================================================
WASHINGTON-6.11%
ABN AMRO Munitops Ctfs. Trust (City of Seattle);
Multi-State Non-AMT VRD Series 2003-7 Ctfs.
(Acquired 05/13/03; Cost $10,685,000)
1.10%, 06/16/04(d)(e)(g)(h)(n) -- VMIG-1 10,685 10,685,000
- ---------------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Limited Tax Multi-State Non-AMT VRD Series
2001-1 Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
1.12%, 07/01/06(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional Conference
Center); VRD Series 2003 RB (LOC-Bank of
America NT & SA)
1.10%, 12/01/28(b)(c)(g) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------------
Clark (County of) School District No. 037 (City
of Vancouver); Refunding Unlimited Tax Series
2003 B GO
2.00%, 06/01/04 -- Aa1 1,700 1,702,705
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Support System Project 2), VRD
Series 96-4703 COP (Acquired 05/02/01; Cost
$5,870,000)
1.08%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington); VRD
Series 98-4701, Class A COP (Acquired 07/20/00;
Cost $14,400,000)
1.08%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of America
N.A.)
1.00%, 10/26/04(b) A-1+ -- 4,300 4,300,000
- ---------------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Series A Project RN (LOC-Bank of America N.A.)
1.00%, 10/26/04(b) A-1+ -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series 2001 GO
(LOC-Bank of America N.A.)
1.10%, 12/01/21(b)(c)(g) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank of
America N.A.)
1.03%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------------
King & Snohomish (Counties of) School District
No. 417 (Northshore); Unlimited Tax Series 2003
GO
2.00%, 12/01/04(f) AAA Aaa 3,300 3,319,169
- ---------------------------------------------------------------------------------------------
</Table>
F-35
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
King (County of) Economic Enterprise Corp. (Puget
Sound Blood Center Project); VRD Series 1998
IDR (LOC-U.S. Bank N.A.)
1.07%, 04/01/23(b)(c) -- VMIG-1 $ 3,810 $ 3,810,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 A RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 11,800 11,800,000
- ---------------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special Revenue
VRD Series 1999 B RB
(LOC-U.S. Bank N.A.)
1.05%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- ---------------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PA-846 RB (Acquired
10/02/02; Cost $3,800,000)
1.08%, 01/01/10(c)(d)(e) A-1 -- 3,800 3,800,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue VRD
Series 1997 RB
(LOC-Bank of America NT & SA)
1.10%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------------
Pierce (County of) School District No. 010 (City
of Tacoma); Unlimited Tax Series 2001 GO
4.00%, 06/01/04 AA Aa1 1,000 1,005,044
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing Assistance
VRD Series 1994 B RB
(LOC-U.S. Bank of Washington)
1.07%, 05/01/19(b)(c) A-1+ -- 2,440 2,440,000
- ---------------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD Series
1995 RB (LOC-U.S. Bank N.A.)
1.03%, 12/01/15(b)(c) A-1+ -- 1,760 1,760,000
- ---------------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development Corp.
(Sysco Food Services Project); Refunding VRD
Series 1994 RB
1.06%, 11/01/25(c) A-1+ VMIG-1 8,000 8,000,000
- ---------------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding Housing
VRD Series 2003 RB
(LOC-Bank of America N.A.)
1.10%, 12/01/34(b)(c)(g) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.95%, 04/08/04(b) A-1+ P-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority (Village
Park Apartments Project); Housing VRD Series
2000 RB
(LOC-U.S. Bank N.A.)
1.05%, 11/02/05(b)(c) A-1+ -- 1,430 1,430,000
- ---------------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound Regional
Transit Authority); Sales Tax & Motor VRD
Series 2001 A46 RB
(Acquired 11/12/03; Cost $6,275,000)
1.30%, 11/10/04(d)(e)(i)(n) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------------
</Table>
F-36
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Wachovia MERLOTs (County of Snohomish); Limited
Tax VRD Series 2003 B33 GO (Acquired 03/01/04;
Cost $4,545,000)
1.10%, 12/01/27(c)(d)(e) -- VMIG-1 $ 4,545 $ 4,545,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series 2000
E RB (LOC-U.S. Bank N.A.)
1.08%, 08/01/25(b)(c) A-1+ -- 2,715 2,715,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Empire Health Services); VRD Series
2003 RB (LOC-U.S. Bank N.A.)
1.02%, 11/01/23(b)(c) A-1+ -- 2,335 2,335,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Providence Services); VRD Series
2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 12/01/30(b)(k) A-1+ -- 11,200 11,200,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Higher Education Facilities
Authority (Cornish College Arts Project); VRD
Series 2003 A RB
(LOC-Bank of America N.A.)
1.10%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Emerald Heights Project); Refunding Nonprofit
Housing VRD Series 2003 RB (LOC-Bank of America
N.A.)
1.08%, 07/01/33(b)(g)(k) -- -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Judson Park Project); Refunding Nonprofit
Housing VRD Series 2004 A RB
(LOC-U.S. Bank N.A.)
1.02%, 01/01/29(b)(c)(g) -- -- 10,210 10,210,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Nikkei Concerns Project); Nonprofit Housing
VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
1.08%, 10/01/19(b)(c) A-1+ -- 2,235 2,235,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(Tacoma Art Museum Project); Nonprofit VRD
Series 2002 RB
(LOC-Northern Trust Co.)
1.17%, 06/01/32(b)(k) -- VMIG-1 1,225 1,225,000
- ---------------------------------------------------------------------------------------------
Washington (State of) Housing Finance Commission
(University Preparatory Academy Project);
Nonprofit VRD Series 2000 RB
(LOC-Bank of America N.A.)
1.10%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------------
Washington (State of); Refunding Unlimited Tax
Series 2001 R-A GO
5.25%, 09/01/04(f) AAA Aaa 1,000 1,017,163
=============================================================================================
195,294,081
=============================================================================================
WEST VIRGINIA-1.11%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-Bank One of West Virginia)
1.05%, 07/01/17(b)(c) A-1 VMIG-1 745 745,000
- ---------------------------------------------------------------------------------------------
</Table>
F-37
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WEST VIRGINIA-(CONTINUED)
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington); Refunding VRD
Series 2002 A-1 RB
(LOC-Bank One of West Virginia)
1.06%, 06/01/13(b)(c) -- VMIG-1 $10,270 $ 10,270,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Camden Clark Hospital); Refunding
VRD Series 2003 A RB (LOC-U.S. Bank N.A.)
1.07%, 02/01/10(b)(c) -- VMIG-1 5,580 5,580,000
- ---------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Pallottine Health); Refunding VRD
Series 2003 A-1 RB (LOC-Bank One N.A.)
1.02%, 10/01/33(b)(c) -- VMIG-1 19,000 19,000,000
=============================================================================================
35,595,000
=============================================================================================
WISCONSIN-2.72%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina) (Acquired 11/06/03;
Cost $3,500,000)
1.01%, 12/01/20(b)(c)(d) -- Aa2 3,500 3,500,000
- ---------------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project); VRD
Series 2002 RB
(LOC-M&I Marshall & Ilsley)
1.10%, 04/01/32(b)(c) -- VMIG-1 2,540 2,540,000
- ---------------------------------------------------------------------------------------------
Waukesha (County of); Unlimited Tax Promissory
Notes Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,513,950
- ---------------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris Trust
& Savings Bank)
1.07%, 09/01/35(b)(c) A-1+ -- 4,700 4,700,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish Project);
VRD Series 2003 RB (LOC-Bank One N.A.)
1.06%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System); VRD
Series 2003 C RB
(LOC-M&I Marshall & Ilsley)
1.05%, 08/15/23(b)(c) -- VMIG-1 7,600 7,600,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB
(LOC-M&I Marshall & Ilsley)
1.06%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan Medical
Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.05%, 09/01/19(b)(c) A-1 -- 5,938 5,938,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Johns Home); Pooled
Loan VRD Series 2003 J RB
(LOC-M&I Marshall & Ilsley)
1.06%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------------
</Table>
F-38
<Table>
<Caption>
RATINGS(A) PAR MARKET
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Lukes Medical
Center); VRD Series 1987 RB
(LOC-Kredietbank N.V.) (Acquired 11/25/03; Cost
$30,000,000)
1.05%, 12/01/17(b)(c)(d) A-1 -- $30,000 $ 30,000,000
- ---------------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash Flow
Management Program; Series 2003 B-1 COP
2.00%, 11/01/04 -- MIG-1 5,565 5,592,307
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series 1993-2
RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,520,894
- ---------------------------------------------------------------------------------------------
Wisconsin (State of); Transportation Series 2002
A RB
3.00%, 07/01/04(f) AAA Aaa 5,750 5,778,157
=============================================================================================
87,083,308
=============================================================================================
TOTAL INVESTMENTS-100.19% (Cost
$3,202,019,641)(p) 3,202,019,641
=============================================================================================
OTHER ASSETS LESS LIABILITIES-(0.19%) (6,082,827)
=============================================================================================
NET ASSETS-100.00% $3,195,936,814
_____________________________________________________________________________________________
=============================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipts
PUTTERS - Puttable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-39
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (g) and (m)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury Obligation held by a bank
custodian; this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Auditors.
(b) Principal and interest payments are guaranteed by the letter of credit
agreement.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on 03/31/04.
(d) Security not registered under the Securities Act of 1933, as amended (e.g.,
the security was purchased in a Rule 144A transaction or a Regulation D
transaction). The security may be resold only pursuant to an exemption from
registration under the 1933 Act, typically to qualified institutional
buyers. The Fund has no rights to demand registration of these securities.
The aggregate market value of these securities at 03/31/04 was $699,770,000,
which represented 21.90% of the Fund's net assets. Unless otherwise
indicated, this security is not considered to be illiquid.
(e) Synthetic municipal instrument; involves the deposit into a trust of one or
more long-term tax-exempt bonds or notes ("Underlying Bonds"), a sale of
certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(f) Principal and interest payments are secured by bond insurance provided by
one of the following companies: Ambac Assurance Corp., Financial Guaranty
Insurance Co., Financial Security Assurance Inc., MBIA Insurance Corp. or XL
Capital Assurance Inc.
(g) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on 03/31/04.
(i) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(j) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on 03/31/04.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined daily. Rate
shown is the rate in effect on 03/31/04.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined annually.
Rate shown is the rate in effect on 03/31/04.
(m) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed
by the investment advisor.
(n) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 03/31/04 was $63,310,000 which represented
1.98% of the Fund's net assets.
(o) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(p) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-40
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004
<Table>
ASSETS:
Investments, at market value (cost $3,202,019,641) $3,202,019,641
- ---------------------------------------------------------------------------------------
Cash 1,386,158
- ---------------------------------------------------------------------------------------
Receivables for:
Investments sold 2,655,250
- ---------------------------------------------------------------------------------------
Interest 7,736,379
- ---------------------------------------------------------------------------------------
Amount due from advisor 39,311
- ---------------------------------------------------------------------------------------
Investment for deferred compensation and retirement plans 133,075
- ---------------------------------------------------------------------------------------
Other assets 107,519
=======================================================================================
Total assets 3,214,077,333
_______________________________________________________________________________________
=======================================================================================
LIABILITIES:
Payables for:
Investments purchased 15,689,202
- ---------------------------------------------------------------------------------------
Dividends 1,950,617
- ---------------------------------------------------------------------------------------
Deferred compensation and retirement plans 202,501
- ---------------------------------------------------------------------------------------
Accrued distribution fees 131,205
- ---------------------------------------------------------------------------------------
Accrued transfer agent fees 94,662
- ---------------------------------------------------------------------------------------
Accrued operating expenses 72,332
=======================================================================================
Total liabilities 18,140,519
=======================================================================================
Net assets applicable to shares outstanding $3,195,936,814
_______________________________________________________________________________________
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,195,937,746
- ---------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities (932)
=======================================================================================
$3,195,936,814
_______________________________________________________________________________________
=======================================================================================
</Table>
<Table>
NET ASSETS:
Institutional Class $1,953,768,936
_______________________________________________________________________________________
=======================================================================================
Private Investment Class $ 150,399,126
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class $ 10,393,628
_______________________________________________________________________________________
=======================================================================================
Cash Management Class $ 768,140,990
_______________________________________________________________________________________
=======================================================================================
Reserve Class $ 14,029,600
_______________________________________________________________________________________
=======================================================================================
Resource Class $ 299,204,534
_______________________________________________________________________________________
=======================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF
SHARES AUTHORIZED:
Institutional Class 1,953,715,247
_______________________________________________________________________________________
=======================================================================================
Private Investment Class 150,385,407
_______________________________________________________________________________________
=======================================================================================
Personal Investment Class 10,390,617
_______________________________________________________________________________________
=======================================================================================
Cash Management Class 768,132,195
_______________________________________________________________________________________
=======================================================================================
Reserve Class 14,027,577
_______________________________________________________________________________________
=======================================================================================
Resource Class 299,203,210
_______________________________________________________________________________________
=======================================================================================
Net asset value and offering price per share for each class $ 1.00
_______________________________________________________________________________________
=======================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-41
STATEMENT OF OPERATIONS
For the year ended March 31, 2004
<Table>
INVESTMENT INCOME:
Interest $30,872,790
=========================================================================
EXPENSES:
Advisory fees 6,126,543
- -------------------------------------------------------------------------
Administrative services fees 581,975
- -------------------------------------------------------------------------
Custodian fees 189,391
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 1,057,444
- -------------------------------------------------------------------------
Personal Investment Class 94,654
- -------------------------------------------------------------------------
Cash Management Class 665,410
- -------------------------------------------------------------------------
Reserve Class 112,954
- -------------------------------------------------------------------------
Resource Class 589,637
- -------------------------------------------------------------------------
Transfer agent fees 529,387
- -------------------------------------------------------------------------
Trustees' fees 53,746
- -------------------------------------------------------------------------
Other 460,157
=========================================================================
Total expenses 10,461,298
=========================================================================
Less: Fees waived (2,279,393)
=========================================================================
Net expenses 8,181,905
=========================================================================
Net investment income 22,690,885
=========================================================================
Net realized gain from investment securities 40,841
=========================================================================
Net increase in net assets resulting from operations $22,731,726
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-42
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2004 and 2003
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 22,690,885 $ 26,106,952
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 40,841 (25,175)
==============================================================================================
Net increase in net assets resulting from operations 22,731,726 26,081,777
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (14,405,472) (17,031,877)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,230,193) (1,818,359)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (37,490) (93,454)
- ----------------------------------------------------------------------------------------------
Cash Management Class (5,040,826) (4,920,342)
- ----------------------------------------------------------------------------------------------
Reserve Class (8,425) (64,630)
- ----------------------------------------------------------------------------------------------
Resource Class (1,968,479) (2,178,290)
==============================================================================================
Decrease in net assets resulting from distributions (22,690,885) (26,106,952)
==============================================================================================
Share transactions-net:
Institutional Class 632,519,818 82,192,016
- ----------------------------------------------------------------------------------------------
Private Investment Class (77,436,378) 48,742,626
- ----------------------------------------------------------------------------------------------
Personal Investment Class (6,598,054) 11,894,107
- ----------------------------------------------------------------------------------------------
Cash Management Class 150,447,508 297,170,515
- ----------------------------------------------------------------------------------------------
Reserve Class 1,376,091 (5,545,385)
- ----------------------------------------------------------------------------------------------
Resource Class 39,025,099 122,868,778
==============================================================================================
Net increase in net assets resulting from share
transactions 739,334,084 557,322,657
==============================================================================================
Net increase in net assets 739,374,925 557,297,482
==============================================================================================
NET ASSETS:
Beginning of year 2,456,561,889 1,899,264,407
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0 for 2004 and 2003, respectively) $3,195,936,814 $2,456,561,889
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-43
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class. The
Fund's investment objective is to provide as high a level of tax-exempt income
as is consistent with the preservation of capital and maintenance of liquidity.
On November 4, 2003, the Fund was reorganized from a separate series of Tax-Free
Investments Co. to a new series portfolio of the Trust.
Under the Trust's organizational documents, the Fund's officers and trustees
are indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
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 accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of each
class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M 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
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements. Any capital
loss carryforwards listed are reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
F-44
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO 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 at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. The Fund's advisor has
voluntarily agreed to waive advisory fees or reimburse expenses to the extent
necessary to limit Total Annual Fund Operating Expenses (excluding certain items
discussed below) to 0.22%. In determining the advisor's obligation to waive
advisory fees and/or reimburse expenses, the following expenses are not taken
into account, and could cause the Total Annual Fund Operating Expenses to exceed
the 0.22% cap: (i) interest; (ii) taxes; (iii) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), as defined in the Financial Accounting Standard's Board's Generally
Accepted Accounting Principles or as approved by the Fund's board of trustees;
(iv) expenses related to a merger or reorganization, as approved by the Fund's
board of trustees; (v) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement; (vi) Rule 12b-l fees; (vii)
trustees' fees; and (viii) federal registration fees. Currently, the only
expense offset arrangements from which the Fund benefits are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. This expense limitation agreement
is in effect through March 31, 2005. Voluntary expense limitations may be
modified or discontinued at any time without further notice to investors. For
the year ended March 31, 2004, AIM waived fees of $1,447,004.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended March 31, 2004, AIM was paid
$581,975 for such services.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI"), formerly known as A I M Fund
Services, Inc., a fee for providing transfer agency and shareholder services to
the Fund. During the year ended March 31, 2004, AISI retained $432,332 for such
services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of the such classes. Any amounts not paid as a service
fee under such Plan would constitute an asset-based sales charge. NASD Rules
also impose a cap on the total amount of sales charges, including asset-based
sales charges, that may be paid by any class of shares of the Fund. Currently,
FMC has elected to waive a portion of its compensation payable by the Fund such
that compensation paid pursuant to the Plan with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class equals the maximum annual rate of 0.25%,
0.55%, 0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
F-45
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2004, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $528,722, $69,413, $532,328, $85,537 and $471,710,
respectively, after FMC waived plan fees of $528,722, $25,241, $133,082, $27,417
and $117,927, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. The Trustees deferring compensation have the
option to select various AIM Funds and INVESCO Funds in which their deferral
accounts shall be deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2004, the Fund paid legal fees of $10,305
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (average of the rate available on bank loans and the rate available on
investments in overnight repurchase agreements) is favorable to both the lending
fund and the borrowing fund. Under certain circumstances, a loan will be secured
by collateral. To the extent that the loan is required to be secured by
collateral, the collateral is marked to market daily to ensure that the market
value is at least 102% of the outstanding principal value of the loan. The Fund
did not borrow or lend under the facility during the year ended March 31, 2004.
Additionally the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with the custodian bank. To compensate the
custodian bank for such overdrafts, the overdrawn Fund may either (i) leave
funds in the account so the custodian can be compensated by earning the
additional interest; or (ii) compensate by paying the custodian bank. In either
case, the custodian bank will be compensated an amount equal to the Federal
Funds rate plus 100 basis points.
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2004
and 2003 was as follows:
<Table>
<Caption>
2004 2003
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $22,690,885 $26,106,952
________________________________________________________________________________________
========================================================================================
</Table>
F-46
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2004, the components of net assets on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 154,544
- ------------------------------------------------------------------------------
Temporary book/tax differences (154,543)
- ------------------------------------------------------------------------------
Capital loss carryforward (933)
- ------------------------------------------------------------------------------
Shares of beneficial interest 3,195,937,746
==============================================================================
Total net assets $3,195,936,814
______________________________________________________________________________
==============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the deferral of trustee compensation and
trustee retirement plan expenses.
The Fund utilized $30,487 of capital loss carryforward in the current period
to offset net realized capital gain for federal income tax purposes. The Fund
has a capital loss carryforward for tax purposes which expires as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- ----------------------------------------------------------------------------
March 31, 2011 $933
============================================================================
The ability to use capital loss carryforwards may be limited under the
Internal Revenue Code and related regulations.
</Table>
F-47
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------
{YEAR ENDED MARCH 31,
------------------------------------------------------------------------
2004 2003
----------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 13,446,683,719 $ 13,446,683,719 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 489,285,624 489,285,624 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 26,756,133 26,756,133 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 5,641,820,633 5,641,820,633 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------
Reserve Class 156,764,612 156,764,612 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,508,376,051 1,508,376,051 962,309,593 962,309,593
=========================================================================================================
Issued as reinvestment of
dividends:
Institutional Class 7,301,226 7,301,226 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------
Private Investment Class 737,747 737,747 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class 4,054 4,054 14,703 14,703
- ---------------------------------------------------------------------------------------------------------
Cash Management Class 4,115,815 4,115,815 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------
Reserve Class 8,921 8,921 71,043 71,043
- ---------------------------------------------------------------------------------------------------------
Resource Class 1,860,224 1,860,224 2,003,975 2,003,975
=========================================================================================================
Reacquired:
Institutional Class (12,821,465,127) (12,821,465,127) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------
Private Investment Class (567,459,749) (567,459,749) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------
Personal Investment Class (33,358,241) (33,358,241) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------
Cash Management Class (5,495,488,940) (5,495,488,940) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------
Reserve Class (155,397,442) (155,397,442) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------
Resource Class (1,471,211,176) (1,471,211,176) (841,444,790) (841,444,790)
=========================================================================================================
739,334,084 $ 739,334,084 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
F-48
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
RESOURCE CLASS
---------------------------------------------------------------
APRIL 6, 1999
(DATE SALES
YEAR ENDED MARCH 31, COMMENCED) TO
---------------------------------------------- MARCH 31,
2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.01 0.01 0.02 0.04 0.03
=================================================================================================
Less distributions from net
investment income (0.01) (0.01) (0.02) (0.04) (0.03)
=================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________
=================================================================================================
Total return(a) 0.68% 1.06% 2.00% 3.78% 3.15%
_________________________________________________________________________________________________
=================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $299,205 $260,178 $137,307 $15,464 $3,597
_________________________________________________________________________________________________
=================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.38%(b) 0.38% 0.38% 0.36% 0.36%(c)
- -------------------------------------------------------------------------------------------------
Without fee waivers 0.47%(b) 0.47% 0.48% 0.49% 0.49%(c)
_________________________________________________________________________________________________
=================================================================================================
Ratio of net investment income
to average net assets 0.67%(b) 1.04% 1.84% 3.68% 3.09%(c)
_________________________________________________________________________________________________
=================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and is not annualized for periods
less than one year.
(b) Ratios are based on average daily net assets of $294,818,533.
(c) Annualized.
F-49
NOTE 8--LEGAL PROCEEDINGS
Your Fund's investment advisor, A I M Advisors, Inc. ("AIM"), is an indirect
wholly owned subsidiary of AMVESCAP PLC ("AMVESCAP"). Another indirect wholly
owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. ("IFG"), was formerly
the investment advisor to the INVESCO Funds. AIM succeeded IFG as the investment
advisor to the INVESCO Funds other than INVESCO Variable Investment Funds, Inc.
("IVIF") on November 25, 2003, and succeeded IFG as the investment advisor to
IVIF on April 30, 2004.
The mutual fund industry as a whole is currently subject to a wide range of
inquiries and litigation related to a wide range of issues, including issues of
"market timing" and "late trading." Both AIM and IFG are the subject of a number
of such inquiries, as described below.
Regulatory Actions and Inquiries Concerning IFG
On December 2, 2003 each of the Securities and Exchange Commission ("SEC") and
the Office of the Attorney General of the State of New York ("NYAG") filed civil
proceedings against IFG and Raymond R. Cunningham, in his capacity as the Chief
Executive Officer of IFG. Mr. Cunningham also currently holds the positions of
Chief Operating Officer and Senior Vice President of A I M Management Group Inc.
("AIM Management"), the parent of AIM, and the position of Senior Vice President
of AIM. As of April 23, 2004, Mr. Cunningham was granted a voluntary
administrative leave of absence with pay. In addition, on December 2, 2003, the
State of Colorado filed civil proceedings against IFG. Neither the Fund nor any
of the other AIM or INVESCO Funds has been named as a defendant in any of these
proceedings.
The SEC complaint alleges that IFG failed to disclose in the INVESCO Funds'
prospectuses and to the INVESCO Funds' independent directors that IFG had
entered into certain arrangements permitting market timing of the INVESCO Funds.
The SEC is seeking injunctions, including permanent injunctions from serving as
an investment advisor, officer or director of an investment company; an
accounting of all market timing as well as certain fees and compensation
received; disgorgement; civil monetary penalties; and other relief.
The NYAG and Colorado complaints made substantially similar allegations. The
NYAG is seeking injunctions, including permanent injunctions from directly or
indirectly selling or distributing shares of mutual funds; disgorgement of all
profits obtained, including fees collected, and payment of all restitution and
damages caused, directly or indirectly from the alleged illegal activities;
civil monetary penalties; and other relief. The State of Colorado is seeking
injunctions; restitution, disgorgement and other equitable relief; civil
monetary penalties; and other relief.
In addition, IFG has received inquiries in the form of subpoenas or other oral
or written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the INVESCO Funds. These regulators include the Florida Department of
Financial Services, the Commissioner of Securities for the State of Georgia, the
Office of the State Auditor for the State of West Virginia, the Office of the
Secretary of State for West Virginia, the Colorado Securities Division and the
Bureau of Securities of the State of New Jersey. IFG has also received more
limited inquiries from the United States Department of Labor ("DOL"), the NASD,
Inc. ("NASD"), the SEC and the United States Attorney's Office for the Southern
District of New York concerning certain specific INVESCO Funds, entities and/or
individuals. IFG is providing full cooperation with respect to these inquiries.
Regulatory Inquiries Concerning AIM
AIM has also received inquiries in the form of subpoenas or other oral or
written requests for information from various regulators concerning market
timing activity, late trading, fair value pricing and other related issues
concerning the AIM Funds. AIM has received requests for information and
documents concerning these and related matters from the SEC, the Massachusetts
Secretary of the Commonwealth, the Office of the State Auditor for the State of
West Virginia and the Department of Banking for the State of Connecticut. In
addition, AIM has received subpoenas concerning these and related matters from
the NYAG, the United States Attorney's
F-50
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Office for the District of Massachusetts, the Commissioner of Securities for the
State of Georgia, the Office of the Secretary of State for West Virginia and the
Bureau of Securities of the State of New Jersey. AIM has also received more
limited inquiries from the DOL, the NASD, the SEC and the United States
Attorney's Office for the Southern District of New York concerning certain
specific AIM Funds, entities and/or individuals. AIM is providing full
cooperation with respect to these inquiries.
Response of AMVESCAP
AMVESCAP is seeking to resolve both the pending regulatory complaints against
IFG alleging market timing and the ongoing market timing investigations with
respect to IFG and AIM. AMVESCAP found, in its ongoing review of these matters,
that shareholders were not always effectively protected from the potential
adverse impact of market timing and illegal late trading through intermediaries.
These findings were based, in part, on an extensive economic analysis by outside
experts who have been retained by AMVESCAP to examine the impact of these
activities. In light of these findings, AMVESCAP has publicly stated that any
AIM or INVESCO Fund, or any shareholders thereof, harmed by these activities
will receive full restitution. AMVESCAP has informed regulators of these
findings. In addition, AMVESCAP has retained separate outside counsel to
undertake a comprehensive review of AIM's and IFG's policies, procedures and
practices, with the objective that they rank among the most effective in the
fund industry. At the direction of the trustees of the AIM and INVESCO Funds,
AMVESCAP will pay all of the expenses incurred by the AIM and INVESCO Funds
related to market timing, including expenses incurred in connection with the
pending regulatory complaints against IFG alleging market timing and the ongoing
market timing investigations with respect to IFG and AIM.
For the period ended March 31, 2004, the Fund has incurred no expenses in
connection with these matters, including legal, audit, shareholder servicing,
communication and trustee expenses.
There can be no assurance that AMVESCAP will be able to reach a satisfactory
settlement with the regulators, or that any such settlement will not include
terms which would have the effect of barring either or both of IFG and AIM, or
any other investment advisor directly or indirectly owned by AMVESCAP, including
but not limited to A I M Capital Management, Inc., AIM Funds Management Inc.,
INVESCO Global Asset Management (N.A.), Inc., INVESCO Institutional (N.A.), Inc.
("IINA") and INVESCO Senior Secured Management, Inc., from serving as an
investment advisor to any investment company registered under the Investment
Company Act of 1940 (a "registered investment company"), including the Fund. The
Fund has been informed by AIM that, if AIM is so barred, AIM will seek exemptive
relief from the SEC to permit it to continue to serve as the Fund's investment
advisor. There can be no assurance that such exemptive relief will be granted.
Any settlement with the regulators could also include terms which would bar Mr.
Cunningham from serving as an officer or director of any registered investment
company.
Private Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain INVESCO Funds, certain AIM Funds, IFG, AIM, AIM
Management, AMVESCAP, certain related entities and certain of their officers,
including Mr. Cunningham) making allegations substantially similar to the
allegations in the regulatory complaints against IFG described above. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violation of various provisions of the Federal and state securities laws;
(ii) violation of various provisions of the Employee Retirement Income Security
Act ("ERISA"); (iii) breach of fiduciary duty; and/or (iv) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as compensatory damages; restitution; rescission; accounting for
wrongfully gotten gains, profits and compensation; injunctive relief;
disgorgement; equitable relief; various corrective measures under ERISA;
rescission of certain
F-51
NOTE 8--LEGAL PROCEEDINGS (CONTINUED)
Funds' advisory agreements; declaration that the advisory agreement is
unenforceable or void; refund of advisory fees; interest; and attorneys' and
experts' fees.
IFG has removed certain of the state court proceedings to Federal District
Court. The Judicial Panel on Multidistrict Litigation (the "Panel") has ruled
that all actions pending in Federal court that allege market timing and/or late
trading be transferred to the United States District Court for the District of
Maryland for coordinated pre-trial proceedings. Some of the cases against IFG
and the other AMVESCAP defendants have already been transferred to the District
of Maryland in accordance with the Panel's directive. AIM and IFG anticipate
that in time most or all of the actions pending against them and the other
AMVESCAP defendants alleging market timing and/or late trading will be
transferred to the multidistrict litigation.
Other Private Actions
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, IINA, A I M Distributors, Inc. ("AIM Distributors")
and INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and distribution fees and failed to pass
on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in both Federal and state courts and seek such
remedies as damages; injunctive relief; rescission of certain Funds' advisory
agreements and distribution plans; interest; prospective relief in the form of
reduced fees; and attorneys' and experts' fees.
Certain other civil class action lawsuits have been filed against various
parties (including, depending on the lawsuit, certain INVESCO Funds, certain AIM
Funds, IFG and AIM) alleging that certain AIM and INVESCO Funds inadequately
employed fair value pricing. These lawsuits allege a variety of theories of
recovery, including but not limited to: (i) violations of various provisions of
the Federal securities laws; (ii) breach of duty; and (iii) common law
negligence and gross negligence. These lawsuits have been filed in both Federal
and state courts and seek such remedies as compensatory and punitive damages;
interest; and attorneys' fees and costs.
Additional lawsuits or regulatory actions arising out of the circumstances
above and presenting similar allegations and requests for relief may be served
or filed against the Fund, IFG, AIM, AIM Management, IINA, AIM Distributors,
INVESCO Distributors, AMVESCAP and related entities and individuals in the
future.
As a result of the above developments, investors in the AIM and INVESCO Funds
might react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the matters described above may have on the
Fund or AIM.
F-52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investment Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2004, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the year
ended March 31, 2000 were audited by other auditors whose report dated May 1,
2000, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 2004, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 17, 2004
F-53
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Tax-Free Cash Reserve Portfolio ("Fund"),
an investment portfolio of Tax-Free Investments Trust (formerly Tax-Free
Investments Company, Inc.), ("Company"), a Delaware statutory trust, was held on
October 21, 2003. The meeting was held for the following purposes:
(1)* To elect sixteen individuals to the Board, each of whom will serve until
his or her successor is elected and qualified: Bob R. Baker, Frank S.
Bayley, James T. Bunch, Bruce L. Crockett, Albert R. Dowden, Edward K.
Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham, Gerald J.
Lewis, Prema Mathai-Davis, Lewis F. Pennock, Ruth H. Quigley, Louis S.
Sklar, Larry Soll, Ph.D. and Mark H. Williamson.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
redomestication of Company as a Delaware statutory trust and, in connection
therewith, the sale of all of Company's assets and the dissolution of
Company as a Maryland corporation.
The results of the voting on the above matters were as follows:
<Table>
<Caption>
WITHHOLDING
TRUSTEES/MATTER VOTES FOR AUTHORITY
- --------------------------------------------------------------------------------
(1)* Bob R. Baker................................. 1,919,194,699 657,601
Frank S. Bayley.............................. 1,919,194,699 657,601
James T. Bunch............................... 1,919,194,699 657,601
Bruce L. Crockett............................ 1,919,194,699 657,601
Albert R. Dowden............................. 1,919,194,699 657,601
Edward K. Dunn, Jr........................... 1,919,194,699 657,601
Jack M. Fields............................... 1,919,194,699 657,601
Carl Frischling.............................. 1,919,194,699 657,601
Robert H. Graham............................. 1,919,194,699 657,601
Gerald J. Lewis.............................. 1,919,194,699 657,601
Prema Mathai-Davis........................... 1,919,194,699 657,601
Lewis F. Pennock............................. 1,919,194,699 657,601
Ruth H. Quigley.............................. 1,919,194,699 657,601
Louis S. Sklar............................... 1,919,194,699 657,601
Larry Soll, Ph.D............................. 1,919,194,699 657,601
Mark H. Williamson........................... 1,919,194,699 657,601
</Table>
<Table>
<Caption>
WITHHELD/
MATTER VOTES FOR VOTES AGAINST ABSTENTIONS
- ------------------------------------------------------------------------------------------------
(2)* Approval of an Agreement and Plan of
Reorganization which provides for the
redomestication of Company as a Delaware
statutory trust and, in connection therewith,
the sale of all of Company's assets and the
dissolution of Company as a Maryland
corporation.................................. 1,660,756,878 8,818,667 250,276,755**
</Table>
* Proposal required approval by a combined vote of all the portfolios of
Tax-Free Investments Company, Inc.
** Includes Broker Non-Votes.
F-54
TRUSTEES AND OFFICERS
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- -------------------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M Management Group Inc. None
Trustee, Chairman and (financial services holding company); Director and
President Vice Chairman, AMVESCAP PLC and Chairman, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: President and Chief Executive Officer,
A I M Management Group Inc.; Director, Chairman
and President, A I M Advisors, Inc. (registered
investment advisor); Director and Chairman, A I M
Capital Management, Inc. (registered investment
advisor), A I M Distributors, Inc. (registered
broker dealer), AIM Investment Services, Inc.,
(registered transfer agent), and Fund Management
Company (registered broker dealer); and Chief
Executive Officer, AMVESCAP PLC -- Managed
Products
- -------------------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief Executive Officer, None
Trustee and Executive Vice A I M Management Group Inc. (financial services
President holding company); Director, Chairman and
President, A I M Advisors, Inc. (registered
investment advisor); Director, A I M Capital
Management, Inc. (registered investment advisor)
and A I M Distributors, Inc. (registered broker
dealer); Director and Chairman, AIM Investment
Services, Inc. (registered transfer agent), and
Fund Management Company (registered broker
dealer); and Chief Executive Officer, AMVESCAP
PLC -- AIM Division (parent of AIM and a global
investment management firm)
Formerly: Director, Chairman, President and Chief
Executive Officer, INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.; Chief Executive
Officer, AMVESCAP PLC -- Managed Products;
Chairman and Chief Executive Officer of
NationsBanc Advisors, Inc.; and Chairman of
NationsBanc Investments, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee Formerly: President and Chief Executive Officer,
AMC Cancer Research Center; and Chairman and Chief
Executive Officer, First Columbia Financial
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Of Counsel, law firm of Baker & McKenzie Badgley Funds, Inc.
Trustee Formerly: Partner, law firm of Baker & McKenzie (registered investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, Green, Manning & Bunch None
Trustee Ltd., (investment banking firm); and Director,
Policy Studies, Inc. and Van Gilder Insurance
Corporation
- -------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1992 Chairman, Crockett Technology Associates ACE Limited (insurance
Trustee (technology consulting company) company); and
Captaris, Inc.
(unified messaging
provider)
- -------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private Cortland Trust, Inc.
Trustee business corporations, including the Boss Group (Chairman) (registered
Ltd. (private investment and management) and investment company);
Magellan Insurance Company Annuity and Life Re
Formerly: Director, President and Chief Executive (Holdings), Ltd.
Officer, Volvo Group North America, Inc.; Senior (insurance company)
Vice President, AB Volvo; and director of various
affiliated Volvo companies
- -------------------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee Formerly: Chairman, Mercantile Mortgage Corp.;
President and Chief Operating Officer,
Mercantile-Safe Deposit & Trust Co.; and
President, Mercantile Bankshares Corp.
- -------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Administaff, and
Trustee Group, Inc. (government affairs company) and Discovery Global
Texana Timber LP (sustainable forestry company) Education Fund
(non-profit)
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
Trustees and Officers (continued)
As of April 30, 2004
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 112 portfolios in the AIM Funds and INVESCO Funds complex, except for
Messrs. Baker, Bunch, Lewis and Soll who oversee 111 portfolios in the AIM and
INVESCO Funds complex. The trustees serve for the life of the Trust, subject to
their earlier death, incapacitation, resignation, retirement or removal as more
specifically provided in the Trust's organizational documents. Column two below
includes length of time served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST OR OFFICER SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Levin Naftalis and Frankel Cortland Trust, Inc.
Trustee LLP (registered
investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution Services (California) General Chemical
Trustee Formerly: Associate Justice of the California Court of Group, Inc.
Appeals
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive Officer, YWCA of the USA None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Louis S. Sklar -- 1939 1992 Executive Vice President, Development and Operations, None
Trustee Hines Interests Limited Partnership (real estate
development company)
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll, Ph.D. -- 1942 2003 Retired N/A
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, Secretary and General N/A
Senior Vice President, Counsel, A I M Management Group Inc. (financial services
Secretary and Chief Legal holding company) and A I M Advisors, Inc.; Vice President,
Officer A I M Capital Management, Inc., A I M Distributors, Inc.
and AIM Investment Services, Inc.; and Director, Vice
President and General Counsel, Fund Management Company
Formerly: Senior Vice President and General Counsel,
Liberty Financial Companies, Inc.; and Senior Vice
President and General Counsel, Liberty Funds Group, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money Market Research N/A
Vice President and Special Projects, A I M Capital Management, Inc.;
and Vice President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Melville B. Cox -- 1943 1992 Vice President and Chief Compliance Officer, A I M N/A
Vice President Advisors, Inc. and A I M Capital Management, Inc.; and
Vice President, AIM Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M Advisors, Inc. N/A
Vice President and Treasurer
Formerly: Senior Vice President, AIM Investment Services,
Inc.; and Vice President, A I M Distributors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing Director and Chief N/A
Vice President Cash Management Officer, A I M Capital Management, Inc;
Director and President, Fund Management Company; and Vice
President, A I M Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edgar M. Larsen -- 1940 2002 Director and Executive Vice President, A I M Management N/A
Vice President Group, Inc., Director and Senior Vice President, A I M
Advisors, Inc., and Director, Chairman, President, Director
of Investments, Chief Executive Officer and Chief
Investment Officer, A I M Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.347.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinley, Suite 1200
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77010-4035
COUNSEL TO THE FUND COUNSEL TO THE TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis & AIM Investment Services, Inc. The Bank of New York
Andrews & Ingersoll, LLP Frankel LLP P.O. Box 4739 100 Church Street
1735 Market Street 919 Third Avenue Houston, TX 77210-4739 New York, NY 10286-0001
Philadelphia, PA 19103-7599 New York, NY 10022-3852
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2004.
AIM Tax-Free Cash Reserve Fund paid ordinary dividends in the amount of $.0083
during its tax year ended March 31, 2004. Of this amount, 100% qualified as
tax-exempt interest dividends for federal income tax purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, Registrant had adopted a
code of ethics (the "Code") that applies to the Registrant's principal executive
office ("PEO") and principal financial officer ("PFO"). There were no amendments
to the Code during the period covered by the report. The Registrant did not
grant any waivers, including implicit waivers, from any provisions of the Code
to the PEO or PFO during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that the registrant has at least one audit
committee financial expert serving on its Audit Committee. The Audit Committee
financial expert is Prema Mathai-Davis. Ms. Mathai-Davis is "independent" within
the meaning of that term used in Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
FEES BILLED BY E&Y RELATED TO THE REGISTRANT
E&Y billed the Registrant aggregate fees for services rendered to the
Registrant for the last two fiscal years as follows:
<Table>
<Caption>
Percentage of Fees
Billed Applicable
to Non-Audit Percentage of Fees
Services Provided Billed Applicable to
Fees Billed for for fiscal year end Non-Audit Services
Services Rendered 2004 Pursuant to Fees Billed for Provided in 2003
to the Registrant Waiver of Services Rendered to Pursuant to Waiver
for fiscal year Pre-Approval the Registrant for of Pre-Approval
end 2004 Requirement(1)(2) fiscal year end 2003 Requirement(1)(2)
------------------ -------------------- -------------------- ------------------
Audit Fees ............................. $29,624 N/A $22,770 N/A
Audit-Related Fees ..................... 0 N/A 0 N/A
Tax Fees(3) ............................ 2,716 N/A 1,742 N/A
All Other Fees ......................... 0 N/A 0 N/A
------- -------
Total Fees ............................. $32,340 N/A $24,512 N/A
E&Y billed the Registrant aggregate non-audit fees of $2,716 for the fiscal year
ended 2004, and $1,742 for the fiscal year ended 2003, for non-audit services
rendered to the Registrant.
- ----------
(1) Prior to May 6, 2003, the Registrant's Audit Committee was not required to
pre-approve non-audit services. Therefore, the percentage of fees shown in
this column only represents fees billed for non-audit services rendered
after May 6, 2003, pursuant to a waiver of the pre-approval requirement.
(2) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at the
time of engagement, (ii) the aggregate amount of all such services provided
is no more than 5% of the aggregate audit and non-audit fees billed to the
Registrant during a fiscal year; and (iii) such services are promptly
approved by the Registrant's Audit Committee prior to the completion of the
audit by the Audit Committee.
(3) Tax Fees for the fiscal year ended March 31, 2004 includes fees billed for
reviewing tax returns and consultation services. Tax Fees for the fiscal
year ended March 31, 2003 includes fees billed for reviewing tax returns.
FEES BILLED BY E&Y RELATED TO AIM AND AIM AFFILIATES
E&Y billed AIM and AIM Affiliates aggregate fees for pre-approved
non-audit services rendered to AIM and AIM Affiliates for the last two fiscal
years as follows:
<Table>
<Caption>
Fees Billed for
Non-Audit Services Fees Billed for
Rendered to AIM Percentage of Fees Non-Audit Services Percentage of Fees
and AIM Affiliates Billed Applicable to Rendered to AIM and Billed Applicable to
for fiscal year Non-Audit Services AIM Affiliates for Non-Audit Services
end 2004 That Were Provided for fiscal fiscal year end 2003 Provided for fiscal
Required year end 2004 That Were Required year end 2003
to be Pre-Approved Pursuant to Waiver to be Pre-Approved Pursuant to Waiver
by the Registrant's of Pre-Approval by the Registrant's of Pre-Approval
Audit Committee(1) Requirement(2)(3) Audit Committee(1) Requirement(2)(3)
------------------- -------------------- -------------------- --------------------
Audit-Related Fees(4) $196,777 0% N/A N/A
Tax Fees $ 0 0% N/A N/A
All Other Fees $ 0 0% N/A N/A
--------
Total Fees(5) $196,777 0% N/A N/A
</Table>
- ----------
(1) Prior to May 6, 2003, the Registrant's Audit Committee was not required to
pre-approve non-audit services. Therefore, the fees billed for non-audit
services shown in this column only represents fees for pre-approved
non-audit services rendered after May 6, 2003, to AIM and AIM Affiliates.
(2) Prior to May 6, 2003, the Registrant's Audit Committee was not required to
pre-approve non-audit services. Therefore, the percentage of fees shown in
this column only represents fees billed for non-audit services rendered
after May 6, 2003, pursuant to a waiver of the pre-approval requirement.
(3) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at the
time of engagement, (ii) the aggregate amount of all such services provided
is no more than 5% of the aggregate audit and non-audit fees billed to the
Registrant during a fiscal year; and (iii) such services are promptly
approved by the Registrant's Audit Committee prior to the completion of the
audit by the Audit Committee.
(4) Audit-Related Fees for the fiscal year ended March 31, 2004 includes fees
billed for services to test and report on the controls and operations of an
affiliated transfer agent.
(5) Including the fees for services not required to be pre-approved by the
registrant's audit committee, E&Y billed AIM and AIM Affiliates aggregate
non-audit fees of $220,095 for the fiscal year ended 2004, and $222,476 for
the fiscal year ended 2003, for non-audit services rendered to AIM and AIM
Affiliates.
The Audit Committee also has considered whether the provision of such
non-audit services that were rendered to AIM, and any entity controlling,
controlled by or under common control with AIM that provides ongoing
services to the Registrant ("AIM Affiliates"), that were not required to be
pre-approved pursuant to SEC regulations is compatible with maintaining
E&Y's independence. The Audit Committee determined that the provision of
such services is compatible with E&Y maintaining independence with respect
the Registrant.
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the AIM Funds and the INVESCO Funds (the "Funds")
AMENDED NOVEMBER 6, 2003
I. STATEMENT OF PRINCIPLES
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and
Exchange Commission ("SEC") ("Rules"), the Audit Committees of the Funds' (the
"Audit Committee") Board of Directors/Registrantees (the "Board") are
responsible for the appointment, compensation and oversight of the work of
independent accountants (an "Auditor"). As part of this responsibility and to
assure that the Auditor's independence is not impaired, the Audit Committee
pre-approves the audit and non-audit services provided to the Funds by the
Auditor, as well as all non-audit services provided by the Auditor to the Funds'
investment adviser and to affiliates of the adviser that provide ongoing
services to the Funds ("Service Affiliates") if the services directly impact the
Funds' operations or financial reporting. The SEC Rules also specify the types
of services that an Auditor may not provide to its audit client. The following
policies and procedures comply with the requirements for pre-approval and
provide a mechanism by which management of the Funds may request and secure
pre-approval of audit and non-audit services in an orderly manner with minimal
disruption to normal business operations.
Proposed services either may be pre-approved without consideration of specific
case-by-case services by the Audit Committee ("general pre-approval") or require
the specific pre-approval of the Audit Committee ("specific pre-approval"). As
set forth in these policies and procedures, unless a type of service has
received general pre-approval, it will require specific pre-approval by the
Audit Committee. Additionally, any proposed services exceeding general
pre-approved cost levels or established amounts will also require specific
pre-approval by the Audit Committee.
The Audit Committee will annually review and pre-approve the services that may
be provided by the Auditor without obtaining specific pre-approval from the
Audit Committee. The term of any general pre-approval runs from the date of such
pre-approval through September 30th of the following year, unless the Audit
Committee considers a different period and states otherwise. The Audit Committee
will add to or subtract from the list of general pre-approved services from time
to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to
assist the Audit Committee in fulfilling its responsibilities.
II. DELEGATION
The Audit Committee may from time to time delegate pre-approval authority to one
or more of its members who are Independent Directors. All decisions to
pre-approve a service by a delegated member shall be reported to the Audit
Committee at its next-scheduled meeting.
III. AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to specific
pre-approval of the Audit Committee. Audit services include the annual financial
statement audit and other procedures such as tax provision work that is required
to be performed by the independent auditor to be able to form an opinion on the
Funds' financial statements. The Audit Committee will obtain, review and
consider sufficient information concerning the proposed Auditor to make a
reasonable evaluation of the Auditor's qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committee may
grant general pre-approval for other audit services, which are those services
that only the independent auditor reasonably can provide. Other Audit services
may include services such as issuing consents for the inclusion of audited
financial statements with SEC registration statements, periodic reports and
other documents filed with the SEC or other documents issued in connection with
securities offerings.
IV. GENERAL PRE-APPROVAL OF NON-AUDIT SERVICES
The Audit Committee may provide general pre-approval of types of non-audit
services described in this Section IV to the Funds and its Service Affiliates if
the Committee believes that the provision of the service will not impair the
independence of the Auditor, is consistent with the SEC's Rules on auditor
independence, and otherwise conforms to the Audit Committee's general principles
and policies as set forth herein.
AUDIT-RELATED SERVICES
"Audit-related services" are assurance and related services that are reasonably
related to the performance of the audit or review of the Fund's financial
statements or that are traditionally performed by the independent auditor.
Audit-related services include, among others, accounting consultations related
to accounting, financial reporting or disclosure matters not classified as
"Audit services"; assistance with understanding and implementing new accounting
and financial reporting guidance from rulemaking authorities; and agreed-upon
procedures related to mergers.
TAX SERVICES
"Tax services" include, but are not limited to, the review and signing of the
Funds' federal tax returns, the review of required distributions by the Funds
and consultations regarding tax matters such as the tax treatment of new
investments or the impact of new regulations. The Audit Committee will
scrutinize carefully the retention of the Auditor in connection with a
transaction initially recommended by the Auditor, the major business purpose of
which may be tax avoidance or the tax treatment of which may not be supported in
the Internal Revenue Code and related regulations. The Audit Committee will
consult with the Funds' Treasurer (or his or her designee) and may consult with
outside counsel or advisors as necessary to ensure the consistency of Tax
services rendered by the Auditor with the foregoing policy.
ALL OTHER SERVICES
The Audit Committee may pre-approve non-audit services classified as "All other
services" that are not categorically prohibited by the SEC, as listed in Exhibit
1 to this policy.
V. SPECIFIC PRE-APPROVAL OF NON-AUDIT SERVICES
The Audit Committee may provide specific pre-approval of any non-audit services
to the Funds and its Service Affiliates if the Audit Committee believes that the
provision of the service will not impair the independence of the auditor, is
consistent with the SEC Rules on auditor independence, and otherwise conforms to
the Audit Committees' general principles and policies as set forth herein.
VI. PRE-APPROVAL FEE LEVELS OR ESTABLISHED AMOUNTS
Pre-approval fee levels or established amounts for services to be provided by
the Auditor under general pre-approval policies will be set annually by the
Audit Committee. Any proposed services exceeding these levels or amounts will
require specific pre-approval by the Audit Committee. The Audit Committee will
always factor in the overall relationship of fees for audit and non-audit
services in determining whether to pre-approve any such services.
VII. PROCEDURES
On an annual basis, A I M Advisors, Inc. ("AIM") will submit to the Audit
Committee for general pre-approval, a list of non-audit services that the Funds
or Service Affiliates of the Funds may request from the Auditor. The list will
describe the non-audit services in reasonable detail and will include an
estimated range of fees where possible and such other information as the Audit
Committee may request.
Each request for services to be provided by the Auditor under the general
pre-approval of the Audit Committee will be submitted to the Funds' Treasurer
(or his or her designee) and must include a detailed description of the services
to be rendered. The Treasurer or his or her designee will ensure that such
services are included within the list of services that have received the general
pre-approval of the Audit Committee. The Audit Committee will be informed at the
next regularly scheduled Audit Committee meeting of any such services rendered
by the Auditor.
Each request to provide services that require specific approval by the Audit
Committee shall be submitted to the Audit Committee jointly by the Fund's
Treasurer or his or her designee and the Auditor, and must include a joint
statement that, in their view, such request is consistent with the policies and
procedures and the SEC Rules.
Non-audit services pursuant to the de minimis exception provided by the SEC
Rules will be promptly brought to the attention of the Audit Committee for
approval, including documentation that each of the conditions for this
exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the
services provided to any entity in the investment Company complex as defined in
section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of
the engagement and the fees associated with those services.
The Audit Committee has designated the Funds' Treasurer to monitor the
performance of all services provided by the Auditor and to ensure such services
are in compliance with these policies and procedures. The Funds' Treasurer will
report to the Audit Committee on a periodic basis as to the results of such
monitoring. Both the Funds' Treasurer and management of AIM will immediately
report to the chairman of the Audit Committee any breach of these policies and
procedures that comes to the attention of the Funds' Treasurer or senior
management of AIM.
EXHIBIT 1
CONDITIONALLY PROHIBITED NON-AUDIT SERVICES (NOT PROHIBITED IF THE FUND CAN
REASONABLY CONCLUDE THAT THE RESULTS OF THE SERVICE WOULD NOT BE SUBJECT TO
AUDIT PROCEDURES IN CONNECTION WITH THE AUDIT OF THE FUND'S FINANCIAL
STATEMENTS)
o Bookkeeping or other services related to the accounting records or
financial statements of the audit client
o Financial information systems design and implementation
o Appraisal or valuation services, fairness opinions, or contribution-in-kind
reports
o Actuarial services
o Internal audit outsourcing services
CATEGORICALLY PROHIBITED NON-AUDIT SERVICES
o Management functions
o Human resources
o Broker-dealer, investment adviser, or investment banking services
o Legal services
o Expert services unrelated to the audit
o Any other service that the Public Company Oversight Board determines by
regulation is impermissible
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASES.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Registrant adopted Shareholder Communication Procedures (the
"Procedures") on December 10, 2003. The Procedures are intended to set
forth the process by which shareholders of the Registrant may send
communications to the Board. If a shareholder sends a recommendation of
a nominee to the Board or to an individual trustee, such communication
would be covered by the Procedures; provided, however, that shareholder
proposals submitted pursuant to Rule 14a-8 under the Securities
Exchange Act of 1934, as amended (the "1934 Act"), and communications
made in connection with such proposals are not subject to the
Procedures.
Pursuant to the Procedures, shareholders should send their
communications to Ivy B. McLemore, First Vice President Corporate
Communications. Communications made to Mr. McLemore may be communicated
by telephone, e-mail or regular mail to the following address: (713)
214-1904, Ivy McLemore@aiminvestments.com, A I M Management Group Inc.,
11 Greenway Plaza, Suite 100, Houston, TX 77046. All shareholder
communications received by Mr. McLemore shall be promptly forwarded to
the individual trustee of the Registrant to whom they were addressed or
to the full Board, as applicable. Copies of all shareholder
communications will also be distributed to the Chairs of each of the
Registrant's Audit Committee, Governance Committee, Investments
Committee and Valuation Committee, to counsel for the Registrant and to
counsel for the independent trustees of the Registrant. Counsel for the
Registrant, upon receipt of their copy of a shareholder communication,
shall work with such Chairs and counsel for the independent trustees to
determine whether such shareholder communication should be distributed
to any trustees to whom it was not sent and whether and in what manner
the trustees should respond to such shareholder communication.
Responses, if any, to shareholder communications shall be coordinated
by counsel for the Registrant, working with the Chairs and counsel for
the independent trustees.
ITEM 10. CONTROLS AND PROCEDURES.
(a) As of March 22, 2004, an evaluation was performed under the supervision
and with the participation of the officers of the Registrant, including
the Principal Executive Officer ("PEO") and Principal Financial Officer
("PFO"), to assess the effectiveness of the Registrant's disclosure
controls and procedures, as that term is defined in Rule 30a-3(c) under
the Investment Company Act of 1940 (the "Act"), as amended. Based on
that evaluation, the Registrant's officers, including the PEO and PFO,
concluded that, as of March 22, 2004, the Registrant's disclosure
controls and procedures were reasonably designed so as to ensure: (1)
that information required to be disclosed by the Registrant on Form
N-CSR is recorded, processed, summarized and reported within the time
periods specified by the rules and forms of the Securities and Exchange
Commission; and (2) that material information relating to the
Registrant is made known to the PEO and PFO as appropriate to allow
timely decisions regarding required disclosure.
(b) There have been no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that
occurred during the Registrant's last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report)
that has materially affected, or is reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
ITEM 11. EXHIBITS.
11(a)(1) Code of Ethics
11(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act
of 1940.
11(a)(3) Not applicable.
11(b) Certification of principal executive officer and principal financial
officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
Registrant: Tax-Free Investments Trust
----------------------------
By: /s/ ROBERT H. GRAHAM
------------------------------
Robert H. Graham
Principal Executive Officer
Date : June 3, 2004
------------------------------
By : /s/ SIDNEY M. DILGREN
------------------------------
Sidney M. Dilgren
Principal Financial Officer
Date : June 3, 2004
------------------------------
EXHIBIT INDEX
11(a)(1) Code of Ethics.
11(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act
of 1940.
11(a)(3) Not applicable.
11(b) Certification of principal executive officer and principal financial
officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.