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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file
number 811-2731
--------------------------------------------------------------------------
Tax-Free Investments Trust (Successor to: Tax-Free Investments Co.)
- --------------------------------------------------------------------------------
(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: 9/30/03
---------------
Explanatory Note
The Registrant is filing this Amendment to its Certified Shareholder Report on
Form N-CSR originally filed with the Securities and Exchange Commission on
December 5, 2003 to provide the proper form of Certifications required by Rule
30a-2(a) of the Investment Company Act of 1940, as amended that were required at
the original time of filing. This Form N-CSR/A also updates Item 9 "Controls and
Procedures" and Item 10 "Exhibits" as required. Other than the aforementioned
revisions this Form N-CSR/A does not reflect events occurring after the filing
of the original Form N-CSR, or modify or update the disclosures therein in any
way.
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
CASH MANAGEMENT CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-3
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
[PHOTO OF This is the semiannual report on the performance of the Cash
ROBERT H. Management Class of the Cash Reserve Portfolio of Tax-Free
GRAHAM] Investments Co., a money market fund investing in short-term
municipal bonds of the highest credit ratings. The report is
for the six-month period ended September 30, 2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal
bonds; however, the low-interest-rate environment resulting from the federal
funds rate, as well as the overall economic climate itself, affects all
fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
================================================================================
YIELDS AS OF 9/30/03
<Table>
<Caption>
Monthly Seven-Day
Yield SEC Yield
------ ---------
Cash Reserve Portfolio, 0.68% 0.78%
Cash Management Class
iMoneyNet Tax-Free Money Fund 0.58% 0.67%
Averages Institutions Only--Trademark--
iMoneyNet All Tax-Free 0.42% 0.50%
Money Funds Averages--Trademark--
</Table>
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 All Tax-Free Money Fund Average is the average
performance of all funds that invest in short-term municipal securities and are
exempt from federal taxation that are tracked by iMoneynet, Inc. The
Institutions Only category consists of funds that invest in tax-exempt
obligations, including state and municipal authorities.
================================================================================
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio, Cash
Management Class, outperformed its indexes, as shown in the table. Had the
advisor and distributor not waived fees and/or reimbursed expenses, performance
would have been lower.
(continued)
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 Fitch ICBA. 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.
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment in a money market fund is not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
NOTE 7--FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CASH MANAGEMENT CLASS
------------------------------------------------------------------------------------------------
SIX MONTHS JANUARY 4, 1999
ENDED YEAR ENDED MARCH 31, (DATE SALES COMMENCED)
SEPTEMBER 30, ----------------------------------------------- TO MARCH 31,
2003 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.004 0.01 0.02 0.04 0.03 0.01
=================================================================================================================================
Less dividends from net
investment income (0.004) (0.01) (0.02) (0.04) (0.03) (0.01)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(a) 0.39% 1.14% 2.08% 3.87% 3.23% 0.64%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $597,548 $617,683 $320,502 $15,668 $6,178 $7,139
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average
net assets:
With fee waivers 0.30%(b) 0.30% 0.30% 0.28% 0.28% 0.28%(c)
- ---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 0.37%(b) 0.37% 0.38% 0.39% 0.39% 0.38%(c)
=================================================================================================================================
Ratio of net investment income
to average net assets 0.77%(b) 1.12% 1.92% 3.76% 3.17% 3.08%(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 annualized and based on average daily net assets of
$665,610,783.
(c) Annualized.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
INSTITUTIONAL CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-1
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
This is the semiannual report on the performance of the
Institutional Class of the Cash Reserve Portfolio of
Tax-Free Investments Co., a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the six-month period ended September 30,
2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal bonds; however, the
low-interest-rate environment resulting from the federal funds rate, as well as
the overall economic climate itself, affects all fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
================================================================================
YIELDS AS OF 9/30/03
<Table>
<Caption>
Monthly Seven-Day
Yield SEC Yield
------- ---------
Cash Reserve Portfolio, 0.76% 0.86%
Institutional Class
iMoneyNet Tax-Free Money 0.58% 0.67%
Fund Averages Institutions Only--Trademark--
iMoneyNet All Tax-Free Money 0.42% 0.50%
Fund Averages--Trademark--
</Table>
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 All Tax-Free Money Fund Average is the average
performance of all funds that invest in short-term municipal securities and are
exempt from federal taxation that are tracked by iMoneynet, Inc. The
Institutions Only category consists of funds that invest in tax-exempt
obligations, including state and municipal authorities.
================================================================================
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio,
Institutional Class, outperformed its indexes, as shown in the table. Had the
advisor not waived fees and/or reimbursed expenses, performance would have been
lower.
(continued)
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 Fitch ICBA. 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.
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment in a money market fund is not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
================================================================================
MONTHLY YIELD COMPARISON
12 MONTHS ENDED 9/30/03 (YIELDS ARE MONTHLY YIELDS FOR THE MONTH-ENDS SHOWN.)
[HYPO CHART]
<Table>
<Caption>
CASH RESERVE PORTFOLIO IMONEYNET TAX-FREE IMONEYNET ALL TAX-FREE
INSTITUTIONAL CLASS(1) MONEY FUNDS AVERAGES MONEY FUNDS AVERAGES--TRADEMARK--(2)
INSTITUTIONS ONLY--TRADEMARK--(2)
10/02 1.44 1.27 1.09
11/02 1.33 1.14 0.96
12/02 1.06 0.9 0.71
1/03 0.95 0.77 0.59
2/03 0.96 0.79 0.61
3/03 0.97 0.79 0.62
4/03 1.04 0.85 0.68
5/03 1.07 0.87 0.7
6/03 0.91 0.72 0.55
7/03 0.67 0.51 0.36
8/03 0.69 0.51 0.36
9/03 0.76 0.58 0.42
</Table>
(1) Yields shown above are net of expenses.
(2) Average yield for Tax-Free Money Funds Institutions Only category and All
Tax-Free Money Funds category compiled by iMoneyNet Money Market Report.
Past performance cannot guarantee comparable future results. The monthly
yields shown represent past performance. Future results will fluctuate.
================================================================================
3
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
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
-------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, ----------------------------------------------------------------------
2003 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.004 0.01 0.02 0.04 0.03 0.03
=================================================================================================================================
Less dividends from net investment
income (0.004) (0.01) (0.02) (0.04) (0.03) (0.03)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(a) 0.43% 1.22% 2.17% 3.95% 3.32% 3.23%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $1,410,776 $1,321,224 $1,239,058 $929,921 $964,396 $1,072,597
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 0.22%(b) 0.22% 0.22% 0.20% 0.20% 0.20%
- ---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 0.27%(b) 0.27% 0.28% 0.29% 0.29% 0.28%
=================================================================================================================================
Ratio of net investment income to
average net assets 0.85%(b) 1.20% 2.01% 3.84% 3.25% 3.16%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</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 annualized and based on average daily net assets of
$1,416,308,126.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
PERSONAL INVESTMENT CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-6
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
[PHOTO OF This is the semiannual report on the performance of the
ROBERT H. Personal Investment Class of the Cash Reserve Portfolio of
GRAHAM] Tax-Free Investments Co., a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the six-month period ended September 30,
2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal bonds; however, the
low-interest-rate environment resulting from the federal funds rate, as well as
the overall economic climate itself, affects all fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio,
Personal Investment Class, provided a monthly yield of 0.21%, and its seven-day
SEC yield was 0.31%. Had the advisor and distributor not waived fees and/or
reimbursed expenses, performance would have been lower.
Cash Reserve Portfolio invests solely in "First Tier" securities as defined
in Rule 2a-7 under the Investment Company Act of 1940. 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
Fitch ICBA. 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.
(continued)
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment in a money market fund is not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
NOTE 7--FINANCIAL HIGHLIGHTS
<Table>
<Caption>
PERSONAL INVESTMENT CLASS
--------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 4, 2000
ENDED MARCH 31, (DATE SALES COMMENCED)
SEPTEMBER 30, ------------------- TO MARCH 31,
2003 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.001 0.01 0.02(a) 0.01
=================================================================================================================================
Less dividends from net investment income (0.001) (0.01) (0.02) (0.01)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(b) 0.15% 0.69% 1.66% 0.95%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $11,478 $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 0.30%(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 annualized and based on average daily net assets of $14,852,862.
(d) Annualized.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
PRIVATE INVESTMENT CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-2
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
[PHOTO OF This is the semiannual report on the performance of the
ROBERT H. Private Investment Class of the Cash Reserve Portfolio of
GRAHAM] Tax-Free Investments Co., a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the six-month period ended September 30,
2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal bonds; however, the
low-interest-rate environment resulting from the federal funds rate, as well as
the overall economic climate itself, affects all fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
================================================================================
YIELDS AS OF 9/30/03
<Table>
<Caption>
Monthly Seven-Day
Yield SEC Yield
------- ---------
Cash Reserve Portfolio, 0.51% 0.61%
Private Investment Class
iMoneyNet All Tax-Free 0.42% 0.50%
Money Fund Averages--Trademark--
iMoneyNet All Tax-Free Money 0.36% 0.43%
Funds, Stockbroker and General Purpose--Trademark--
</Table>
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 All Tax-Free Money Fund Average is the average
performance of all funds that invest in short-term municipal securities and are
exempt from federal taxation that are tracked by iMoneynet, Inc. The Stockbroker
and General Purpose category consists of funds that invest in obligations of
tax-exempt entities, including state and municipal authorities.
================================================================================
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio,
Private Investment Class, outperformed its indexes, as shown in the table. Had
the advisor and distributor not waived fees and/or reimbursed expenses,
performance would have been lower.
(continued)
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 Fitch ICBA. 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.
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment in a money market fund is not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
NOTE 7--FINANCIAL HIGHLIGHTS
<Table>
<Caption>
PRIVATE INVESTMENT CLASS
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, --------------------------------------------------------------
2003 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.003 0.01 0.02 0.04 0.03 0.03
=================================================================================================================================
Less dividends from net investment income (0.003) (0.01) (0.02) (0.04) (0.03) (0.03)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(a) 0.30% 0.97% 1.91% 3.69% 3.06% 2.98%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $201,099 $227,832 $179,095 $141,946 $83,454 $90,606
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 0.47%(b) 0.47% 0.47% 0.45% 0.45% 0.45%
- ---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 0.77%(b) 0.77% 0.78% 0.79% 0.79% 0.78%
=================================================================================================================================
Ratio of net investment income to average
net assets 0.60%(b) 0.95% 1.76% 3.60% 3.00% 2.91%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</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 annualized and based on average daily net assets of
$238,974,294.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
RESERVE CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-4
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
[PHOTO OF This is the semiannual report on the performance of the
ROBERT H. Reserve Class of the Cash Reserve Portfolio of Tax-Free
GRAHAM] Investments Co., a money market fund investing in short-term
municipal bonds of the highest credit ratings. The report is
for the six-month period ended September 30, 2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal
bonds; however, the low-interest-rate environment resulting from the federal
funds rate, as well as the overall economic climate itself, affects all
fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio,
Reserve Class, provided a monthly yield of 0.05%, and its seven-day SEC yield
was 0.05%. Had the advisor and distributor not waived fees and/or reimbursed
expenses, performance would have been lower.
Cash Reserve Portfolio invests solely in "First Tier" securities as defined
in Rule 2a-7 under the Investment Company Act of 1940. 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
Fitch ICBA. 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.
(continued)
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment is not guaranteed by the Federal Deposit Insurance Corporation
or any other government agency. Although a money market fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose money
investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
NOTE 7--FINANCIAL HIGHLIGHTS
<Table>
<Caption>
RESERVE CLASS
----------------------------------------------------------------------------------
SIX MONTHS JUNE 1, 1999
ENDED YEAR ENDED MARCH 31, (DATE SALES COMMENCED)
SEPTEMBER 30, --------------------------------- TO MARCH 31,
2003 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 dividends 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) 0.05% 0.39% 1.35% 3.12% 2.10%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $14,011 $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 0.09%(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 annualized and based on average daily net assets of $11,362,629.
(c) Annualized.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
SEMI-ANNUAL REPORT / SEPTEMBER 30, 2003
TAX-FREE INVESTMENTS CO. (TFIC)
CASH RESERVE PORTFOLIO
RESOURCE CLASS
[COVER IMAGE]
YOUR GOALS. OUR SOLUTIONS.
--Servicemark--
[AIM INVESTMENTS LOGO APPEARS HERE]
--Servicemark--
DIRECTORS
Bob R. Baker Robert H. Graham
James T. Bunch Gerald J. Lewis
Bruce L. Crockett Prema Mathai-Davis
Albert R. Dowden Lewis F. Pennock
Edward K. Dunn, Jr. Ruth H. Quigley
Jack M. Fields Louis S. Sklar
Carl Frischling Larry Soll
Mark H. Williamson
OFFICERS
Robert H. Graham Chairman & President
Mark H. Williamson Executive Vice President
Kevin M. Carome Sr. Vice President
Gary T. Crum Sr. Vice President
Dana R. Sutton Vice President & Treasurer
Stuart W. Coco Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
Edgar M. Larsen Vice President
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
FOR INSTITUTIONAL INVESTOR USE ONLY
THIS MATERIAL IS PREPARED FOR INSTITUTIONAL INVESTOR USE ONLY AND
MAY NOT BE QUOTED, REPRODUCED OR SHOWN TO MEMBERS OF THE
PUBLIC, NOR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE.
TFIT-SAR-5
[AIM LOGO]
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
[PHOTO OF This is the semiannual report on the performance of the
ROBERT H. Resource Class of the Cash Reserve Portfolio of Tax-Free
GRAHAM] Investments Co., a money market fund investing in short-term
municipal bonds of the highest credit ratings. The report is
for the six-month period ended September 30, 2003.
Low interest rates and the economic climate resulted in
low yields for money market investments.
From the beginning of the reporting period until June
25, 2003, the federal funds rate remained at 1.25%. In June,
the Federal Reserve lowered the rate to 1.00%, its lowest
level since 1958. At the end of the reporting period, the
yield on the 10-year Treasury note was 3.96%. The federal
funds rate does not mandate the rates offered on municipal
bonds; however, the low-interest-rate environment resulting from the federal
funds rate, as well as the overall economic climate itself, affects all
fixed-income investing.
The growth rate of the gross domestic product (GDP) improved during the
reporting period. GDP growth for the first quarter of 2003 had been 1.4%,
annualized, and for the second quarter, which ended June 30, 2003, it was 3.3%,
annualized. After the close of the reporting period, on October 30, 2003, the
advance estimate for the third quarter was released. Third-quarter GDP growth
was estimated at 7.2%, annualized.
The job market was comparatively weak throughout the period, with the U.S.
unemployment rate varying from 5.8% in March 2003, to a high of 6.4% in June,
and back to 6.1% in both August and September.
Consumer confidence rose at the beginning of the period and then declined
during the final month. In April 2003, the Consumer Confidence Index rose to
81.0 from 61.4 the previous month. In September 2003, the index fell nearly five
points to 76.8 from the August reading of 81.7. (The Conference Board's Consumer
Confidence Index is based on a monthly survey of a representative sample of
5,000 U.S. households. Responses are measured against consumer confidence
measured in 1985. The 1985 level is given a value of 100.) The decline in
September 2003 has been attributed to the continuing weakness in the job market.
================================================================================
YIELDS AS OF 9/30/03
<Table>
<Caption>
Monthly Seven-Day
Yield SEC Yield
------- ---------
Cash Reserve Portfolio, 0.60% 0.70%
Resource Class
iMoneyNet Tax-Free Money Fund 0.58% 0.67%
Averages Institutions Only--Trademark--
iMoneyNet All Tax-Free 0.42% 0.50%
Money Fund Averages--Trademark--
</Table>
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 All Tax-Free Money Fund Average is the average
performance of all funds that invest in short-term municipal securities and are
exempt from federal taxation that are tracked by iMoneynet, Inc. The
Institutions Only category consists of funds that invest in tax-exempt
obligations, including state and municipal authorities.
================================================================================
YOUR INVESTMENT PORTFOLIO
For the six-month period ended September 30, 2003, Cash Reserve Portfolio,
Resource Class, outperformed its indexes, as shown in the table. Had the advisor
and distributor not waived fees and/or reimbursed expenses, performance would
have been lower.
(continued)
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 Fitch ICBA. 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.
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 securities that, at the time of investment, are "First Tier,"
as defined in Rule 2a-7 under the Investment Company Act of 1940.
An investment in a money market fund is not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money investing in the fund.
IN CLOSING
I also would like to take this opportunity to address important issues that are
currently affecting the mutual fund industry.
As you may be aware, allegations that some mutual fund companies have
knowingly permitted either late trading in fund shares or harmful short-term
trading in fund shares have led to widespread investigations of the mutual fund
industry by the Securities and Exchange Commission and the New York Attorney
General, among others. There have even been allegations that fund insiders have
engaged in improper short-term trading in fund shares to reap personal benefit
at the expense of the other shareholders of the fund. Some of the allegations
involve issues that are clear cut; others are more complicated. Regardless, we
recognize that the mutual fund industry is dependent on the trust of its
shareholders, and accordingly, we fully support the efforts of the industry and
regulators to remedy any abuses and restore investor confidence.
We hope you find this report informative. AIM is intent on providing 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. We remain committed to helping you build solutions for your financial
goals.
Sincerely,
/s/ROBERT H. GRAHAM
Robert H. Graham
Chairman and President
2
SCHEDULE OF INVESTMENTS
September 30, 2003
(Unaudited)
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALABAMA-3.09%
Birmingham (City of) Medical Clinic Board
(University of Alabama Health Services
Foundation); VRD Series 1991 RB
(LOC-AmSouth Bank)
1.20%, 12/01/26(b)(c) A-1+ VMIG-1 $19,600 $ 19,600,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
1.28%, 05/01/07(b)(c) -- VMIG-1 5,025 5,025,000
- -----------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank of
Alabama)
1.23%, 06/01/16(b)(c) -- VMIG-1 2,225 2,225,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board);
VRD Series 2002-6009 Class A COP 1.15%,
01/01/43 (Acquired 11/05/02; Cost
$4,100,000)(c)(d)(e) A-1+ -- 4,100 4,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2003-0007 Class A COP 5.50%,
01/01/04 (Acquired 04/16/03; Cost
$4,870,000)(c)(d)(e) A-1+ -- 4,870 4,870,000
- -----------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 200 RB (LOC-AmSouth
Bank)
1.23%, 11/01/24(b)(c) A-1 -- 6,200 6,200,000
- -----------------------------------------------------------------------------------------
Huntsville (City of) Health Care Authority;
Health Care Facilities Series 1992 B RB
6.63%, 06/01/04(f)(g) AAA Aaa 2,500 2,643,717
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Jefferson (County of); Refunding Unlimited
Tax Series 2002 A GO Wts.
4.00%, 04/01/04 AA Aa3 $ 1,000 $ 1,015,386
- -----------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC-Branch Banking & Trust)
1.10%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- -----------------------------------------------------------------------------------------
Ridge Improvement District; Special
Assessment VRD Series 2000 RB (LOC-AmSouth
Bank)
1.10%, 10/01/25(b)(c) -- VMIG-1 12,000 12,000,000
- -----------------------------------------------------------------------------------------
Talladega (County of) (School Warrants);
Special Obligation School Warrants VRD
Series 2003 RB (LOC-Regions Bank)
1.11%, 02/01/31(b)(c) -- VMIG-1 6,885 6,885,000
- -----------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
1.28%, 10/01/23(b)(c) -- VMIG-1 7,112 7,112,000
=========================================================================================
76,856,103
=========================================================================================
ALASKA-0.14%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
1.30%, 12/01/03(b)(n) A-1 -- 2,390 2,390,000
- -----------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ALASKA-(CONTINUED)
Alaska (State of) Industrial Development
Authority (Alaska Hotel Properties Inc.
Project); VRD Series 1986 IDR (LOC-National
Westminster Bank PLC)
1.15%, 06/01/06 (Acquired 12/27/02; Cost
$1,200,000)(b)(c)(d) -- Aa1 $ 1,200 $ 1,200,000
=========================================================================================
3,590,000
=========================================================================================
ARIZONA-1.14%
Casa Grande (City of) Industrial Development
Authority (Center Park Properties);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,810 1,810,000
- -----------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
1.10%, 06/15/31(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) Industrial Development
Authority (Gran Victoria Housing LLC
Project); Multi-Family Housing VRD Series
2000 A RB (CEP-Federal National Mortgage
Association
1.10%, 04/15/30(c) A-1+ -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Maricopa (County of) School District No. 11
(Peoria Unified School); Refunding &
Improvement Limited Tax Series 2003 GO
1.25%, 07/01/04(h) AAA Aaa 4,100 4,112,496
- -----------------------------------------------------------------------------------------
Maricopa (County of) Unified School District
No. 097 (Deer Valley); Refunding Unlimited
Tax Series 2003 GO
4.00%, 07/01/04(h) -- Aaa 3,165 3,239,408
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Peoria (City of) (Projects of 1990, 1994 &
2000); Unlimited Tax Series 2003 A GO
5.00%, 07/01/04(h) AAA Aaa $ 5,900 $ 6,082,629
- -----------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2003 P Commercial Paper Notes
(LOC-Dexia Public Finance)
0.85%, 11/19/03(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)
1.13%, 10/01/25(c) A-1+ -- 3,920 3,920,000
- -----------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Valley of the Sun YMCA Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.25%, 01/01/31(b)(i) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Toronto Dominion Bank)
1.15%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=========================================================================================
28,264,533
=========================================================================================
ARKANSAS-0.18%
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.)
1.15%, 07/01/08(b)(c)(j) -- -- 3,065 3,065,000
- -----------------------------------------------------------------------------------------
University of Arkansas (Fayetteville Campus);
Facilities Series 2002 RB
2.50%, 12/01/03(h) -- Aaa 1,420 1,422,462
=========================================================================================
4,487,462
=========================================================================================
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
COLORADO-2.67%
Adams & Arapahoe (Counties of) Joint School
District No. 28J (Aurora); Unlimited Tax
Series 2003 A GO
2.00%, 12/01/03(h) AAA Aaa $ 4,140 $ 4,146,482
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/33(b)(c) A-1+ -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Museum
Project); VRD Series 2001 RB (LOC-Bank One
Colorado N.A.)
1.15%, 11/01/21(b)(c) A-1 -- 9,000 9,000,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (National Cable
Television Center & Museum Project); VRD
Series 1999 RB (LOC-Wells Fargo Bank N.A.)
1.15%, 10/01/06(b)(c) A-1+ -- 2,010 2,010,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
1.15%, 12/01/33(b)(c) A-1+ -- 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC-U.S.
Bank N.A.)
1.12%, 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.)
1.15%, 12/01/20(b)(c) A-1+ -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
1.12%, 07/01/32(b)(c) A-1+ -- 4,210 4,210,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Colorado (State of) Housing & Finance
Authority; Multi-Family Insured Mortgage
VRD Series 2002 AA RB
1.07%, 10/01/30(c)(h) -- VMIG-1 $ 2,270 $ 2,270,000
- -----------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
1.15%, 03/15/23(b)(c) A-1+ -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (KY Circle Village
Project); VRD Series 2000 RB (LOC-U.S. Bank
N.A.)
1.12%, 10/01/29(b)(c) A-1+ -- 1,820 1,820,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E. Webb
Municipal Office Building); Refunding VRD
Series 2003 C2 RB
1.05%, 12/01/29(c)(h) A-1+ VMIG-1 23,400 23,400,000
- -----------------------------------------------------------------------------------------
Denver (City & County of) Excise Tax;
Refunding Series 2003 RB
2.00%, 11/01/03(h) AAA Aaa 1,040 1,040,819
- -----------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding Series 1993 IDR
(LOC-Deutsche Bank A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 1,130 1,130,000
- -----------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No.2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-U.S. Bank N.A.)
1.12%, 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
1.13%, 12/01/22 (Acquired 05/29/03; Cost
$7,860,000)(c)(d)(e)(j) -- -- 7,860 7,860,000
=========================================================================================
66,487,301
=========================================================================================
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
CONNECTICUT-0.06%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Pollution
Control VRD Series 1985 IDR (LOC-Citizens
Bank of Massachusetts)
1.00%, 12/01/15(b)(k) A-1+ -- $ 1,400 $ 1,400,000
=========================================================================================
DELAWARE-0.33%
Delaware (State of) Economic Development
Authority (Independent School Project); VRD
Series 2003 RB (LOC-Citizens Bank of
Pennsylvania)
1.10%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=========================================================================================
DISTRICT OF COLUMBIA-0.36%
District of Columbia (Catholic University
America Project); Series 1993 RB
6.30%, 10/01/03(f)(g) AAA NRR 1,000 1,020,000
- -----------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 IDR
(LOC-First Union National Bank)
1.15%, 08/01/29 (Acquired 09/26/03; Cost
$2,015,000)(b)(c)(d) A-1 -- 2,015 2,015,000
- -----------------------------------------------------------------------------------------
District of Columbia; Unlimited Tax Series
1994 B GO
1.07%, 06/01/30(c)(h) AAA Aaa 1,320 1,320,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (District of Columbia
Water & Sewer Authority); VRD
Series 2003 A12 RB
1.15%, 10/01/17 (Acquired 02/24/03; Cost
$4,680,000)(c)(d)(e) -- VMIG-1 4,680 4,680,000
=========================================================================================
9,035,000
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
FLORIDA-6.12%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs.
1.16%, 10/01/10 (Acquired 10/24/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Duval (County of) Housing Finance Authority
(Sunbeam Road Apartments Project);
Refunding Multi-Family Housing VRD Series
1997 RB (LOC-Bank of America N.A.)
1.10%, 07/01/25(b)(c) A-1+ -- 1,950 1,950,000
- -----------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Refunding Unlimited Tax Capital Outlay
Series 1993 A GO
5.00%, 06/01/04 AA+ Aa2 1,200 1,231,041
- -----------------------------------------------------------------------------------------
Halifax Hospital Medical Center (Florida
Health Care Plan Inc. Project); Health Care
Facilities VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.10%, 12/01/13(b)(c) -- VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2000 A RB
1.10%, 12/01/26(c)(h) A-1+ VMIG-1 30,900 30,900,000
- -----------------------------------------------------------------------------------------
Highlands (County of) Health Facilities
Authority (Adventist Health System); VRD
Series 2003 A RB (LOC-SunTrust Bank)
1.10%, 11/15/32(b)(c) A-1+ VMIG-1 1,150 1,150,000
- -----------------------------------------------------------------------------------------
Hillsborough (County of) Aviation Authority
(Delta Airlines); Refunding Special Purpose
VRD Series 2000 IDR (LOC-General Electric
Capital Corp.)
1.12%, 12/01/30(b)(c) A-1+ VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/23 (Acquired 02/20/01; Cost
$2,300,000)(b)(c)(d)(j) -- -- $ 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.)
1.15%, 06/01/22(b)(c) -- VMIG-1 12,555 12,555,000
- -----------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority; Series 2001 A Commercial Paper
Notes
0.90%, 04/01/04 -- 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)
1.15%, 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
1.13%, 10/01/18 (Acquired 10/10/02; Cost
$9,140,000)(c)(d)(e) A-1+ -- 9,140 9,140,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 12/01/25(b)(c)(j) -- -- 9,600 9,600,000
- -----------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project)); VRD Series 1999 IDR (LOC-Bank of
America N.A.)
1.15%, 12/01/19(b)(c)(j) -- -- 2,700 2,700,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Florida Department
of Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
1.14%, 07/01/22 (Acquired 11/13/02; Cost
$10,000,000)(c)(d)(e) A-1 -- $10,000 $ 10,000,000
- -----------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America N.A.)
1.15%, 08/01/19(b)(c)(j) -- -- 1,550 1,550,000
- -----------------------------------------------------------------------------------------
North Miami Beach (City of); Unlimited Tax
Series 1994 GO
6.30%, 02/01/04(f)(g) AAA Aaa 2,515 2,609,466
- -----------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America N.A.)
1.15%, 11/01/28 (Acquired
01/29/02-05/02/03; Cost
$1,895,000)(b)(c)(d)(j) -- -- 1,895 1,895,000
- -----------------------------------------------------------------------------------------
Orange (County of) Industrial Development
Authority (Christian Prison Project); VRD
Series 2003 A IDR (LOC-Regions Bank)
1.13%, 02/01/23(b)(c) -- VMIG-1 4,535 4,535,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America N.A.)
1.15%, 12/01/31(b)(c)(j) -- -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.
Project); VRD Series 1999 B RB (LOC-Bank of
America N.A.)
1.15%, 08/01/20 (Acquired
05/02/02-07/22/02; Cost
$5,035,000)(b)(c)(d)(j) -- -- 5,035 5,035,000
- -----------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Lucie (County of) Industrial Development
(Florida Convalescent Centers Project);
Refunding VRD Series 1988 IDR (LOC-Wells
Fargo Bank N.A.)
1.15%, 01/01/11(b)(k) -- P-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Tallahassee (City of) Consolidated Utility
Systems; Series 1994 RB
6.20%, 10/01/03(f)(g) NRR NRR 3,400 3,468,000
- -----------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America N.A.)
1.15%, 07/01/22(b)(c)(j) -- -- 5,245 5,245,000
- -----------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.;
VRD Series 1998 RB (LOC-Wachovia Bank N.A.)
1.12%, 05/01/28(b)(c) A-1 -- 900 900,000
=========================================================================================
152,238,507
=========================================================================================
GEORGIA-3.25%
Albany (City of)-Dougherty (County of)
Hospital Authority (Phoebe Putney Memorial
Hospital); VRD Series 2002 RAC
1.23%, 09/01/32(h)(i) -- VMIG-1 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Cobb (County of); Unlimited Tax Series 2003
TAN
1.50%, 12/31/03 MIG-1 SP-1+ 13,500 13,515,644
- -----------------------------------------------------------------------------------------
Columbia (County of) Elderly Authority
(Augusta Resource Center on Aging);
Residential Care Facilities VRD Series 1990
RB (LOC-Wachovia Bank N.A.)
1.05%, 01/01/21(b)(c) -- VMIG-1 2,180 2,180,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP
1.15%, 07/01/15 (Acquired
07/26/00-01/31/02; Cost
$20,000,000)(c)(d)(e) A-1+ -- 20,000 20,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank N.A.)
1.10%, 06/01/15(b)(c) A-1 -- $ 1,600 $ 1,600,000
- -----------------------------------------------------------------------------------------
Gwinnett (County of) School District; Limited
Construction Sales Tax Series 2003 GO
2.00%, 12/29/03 -- MIG-1 20,000 20,043,505
- -----------------------------------------------------------------------------------------
Houston (County of) Hospital Authority; VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.05%, 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)
1.18%, 10/01/32(b)(c) -- VMIG-1 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC-Wachovia Bank N.A.)
1.10%, 11/01/27(b)(c) -- VMIG-1 2,310 2,310,000
=========================================================================================
80,839,149
=========================================================================================
HAWAII-0.40%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP
1.15%, 12/01/16 (Acquired 01/11/01; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Hawaii);
Unlimited Tax VRD Series 2003 A16 GO
1.15%, 07/01/18 (Acquired 02/27/03; Cost
$3,900,000)(c)(d)(e) -- VMIG-1 3,900 3,900,000
=========================================================================================
9,900,000
=========================================================================================
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
IDAHO-0.15%
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
1.15%, 12/01/21(b)(c) -- VMIG-1 $ 3,845 $ 3,845,000
=========================================================================================
ILLINOIS-14.81%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Limited Tax Multi-State
Non-AMT VRD Series 2001-34 Ctfs.
1.18%, 07/01/07 (Acquired 11/15/01; Cost
$10,000,000)(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
1.14%, 03/15/07 (Acquired 08/26/99; Cost
$10,000,000)(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
1.14%, 06/05/14 (Acquired 05/06/02; Cost
$10,130,000)(c)(d)(e) A-1 -- 10,130 10,130,000
- -----------------------------------------------------------------------------------------
Chicago (City of) (Neighborhoods Alive 21);
Unlimited Tax VRD Series 2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 2,450 2,450,000
- -----------------------------------------------------------------------------------------
Chicago (City of) Park District; Series 2003
A TAN
1.75%, 05/01/04 -- MIG-1 19,500 19,595,681
- -----------------------------------------------------------------------------------------
Chicago (City of) Public Building Commission;
Building Series A RB
5.75%, 12/01/03(f)(g) AAA Aaa 7,000 7,194,159
- -----------------------------------------------------------------------------------------
Chicago (City of) Skyway Toll Bridge;
Refunding Series 1994 RB
6.75%, 01/01/04(f)(g) AAA NRR 1,000 1,034,167
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Chicago (City of); Equipment Notes Unlimited
Tax Series 1996 GO
5.60%, 01/01/04(h) AAA Aaa $ 1,635 $ 1,652,294
- -----------------------------------------------------------------------------------------
Chicago (City of); Projects & Refunding
Unlimited Tax Series 2002 A GO
5.00%, 01/01/04(h) AAA Aaa 3,175 3,203,680
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax Series 2003
GO (LOC-Landesbank Hessen-Thuringen)
1.22%, 01/07/04(b)(g) SP-1+ MIG-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Chicago (City of); Unlimited Tax VRD Series
2002 B GO
1.10%, 01/01/37(c)(h) A-1+ VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Series 2002-1306 COP
1.15%, 01/01/29 (Acquired 05/02/02; Cost
$5,500,000)(c)(d)(e) A-1+ -- 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
1.15%, 11/01/26 (Acquired 12/12/01; Cost
$8,655,000)(c)(d)(e) A-1+ -- 8,655 8,655,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP
1.23%, 01/01/35 (Acquired 04/02/01; Cost
$4,950,000)(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
1.15%, 07/01/23 (Acquired
03/26/01-05/30/01; Cost
$19,000,000)(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
1.15%, 06/01/15 (Acquired 06/12/03; Cost
$3,775,000)(c)(d)(e) A-1+ -- 3,775 3,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP
1.15%, 06/01/21 (Acquired 06/27/00; Cost
$7,340,000)(c)(d)(e) A-1+ -- $ 7,340 $ 7,340,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 Class A COP
1.15%, 12/01/14 (Acquired 05/14/03; Cost
$2,800,000)(c)(d)(e) A-1+ -- 2,800 2,800,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Central Lake County
Joint Action Water Agency); Refunding VRD
Series 2003 B18 RB
1.15%, 05/01/20 (Acquired 02/19/03; Cost
$3,165,000)(c)(d)(e) -- VMIG-1 3,165 3,165,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Chicago);
Limited Tax VRD Series 2000 A12 GO
1.15%, 01/01/23 (Acquired 10/13/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Limited Tax VRD Series 2002 A44 GO
1.15%, 01/01/20 (Acquired 08/02/02; Cost
$7,875,000)(c)(d)(e) -- VMIG-1 7,875 7,875,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Cook County Regional
Transportation Authority);
Unlimited Tax VRD Series 2001 A93 GO 1.15%,
07/01/27 (Acquired 10/10/01; Cost
$3,680,000)(c)(d)(e) -- VMIG-1 3,680 3,680,000
- -----------------------------------------------------------------------------------------
Unlimited Tax VRD Series 2002 A41 GO
1.15%, 06/01/17 (Acquired 07/25/02-
10/31/02; Cost $17,920,000)(c)(d)(e) -- VMIG-1 17,920 17,920,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
First Union MERLOTs (Cook County); Unlimited
VRD Tax Series 2003 B11 GO
1.15%, 11/15/25 (Acquired 01/29/03; Cost
$3,500,000)(c)(d)(e) -- VMIG-1 $ 3,500 $ 3,500,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (State of Illinois); VRD
Series 2001 A124 GO
1.15%, 11/01/26 (Acquired
11/26/01-08/28/02; Cost
$6,550,000)(c)(d)(e) A-1 -- 6,550 6,550,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Illinois);
VRD Series 2000 S GO
1.15%, 04/01/30 (Acquired
03/20/00-02/12/01; Cost
$7,400,000)(c)(d)(e) -- VMIG-1 7,400 7,400,000
- -----------------------------------------------------------------------------------------
Glendale Heights (City of) (Glendale Lakes
Project); Refunding Multi-Family Housing
VRD Series 2000 RB (CEP-Federal Home Loan
Mortgage Corp.)
1.07%, 03/01/30(c) A-1+ -- 4,845 4,845,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
1.15%, 08/01/26(b)(c) A-1+ -- 2,273 2,273,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Bochasanwais Shree Akshar Inc.
Project); VRD Series 2002 RB (LOC-Comerica
Bank Texas)
1.10%, 06/01/17(b)(c) A-1 -- 9,300 9,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-LaSalle
Bank N.A.)
1.12%, 11/01/27(b)(c) A-1 -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Project);
VRD Series 1999 RB (LOC-LaSalle Bank N.A.)
1.12%, 01/01/19 (Acquired 09/24/03; Cost
$4,100,000)(b)(c)(d) A-1 -- $ 4,100 $ 4,100,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Con Edison Co. Project);
Refunding VRD Series 1994 C RB (LOC-ABN
Amro Bank N.V.)
1.08%, 03/01/09(b)(c) A-1+ P-1 9,800 9,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Evanston Northwestern Healthcare
Corp.);
VRD Series 2001 A RB
1.10%, 05/01/31(c) A-1 VMIG-1 1,100 1,100,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 C RB
1.10%, 05/01/31(c) A-1+ VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Harris
Trust & Savings Bank)
1.10%, 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)
1.10%, 06/30/04(b)(c) A-1+ -- 6,240 6,240,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation of
Metropolitan Chicago Projects); VRD Series
2002 RB
1.25%, 09/01/32(h)(i) -- VMIG-1 4,600 4,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Jewish Federation Projects); VRD
Series 1999 RB
1.10%, 09/01/24(c)(h) -- VMIG-1 5,355 5,355,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
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.)
1.12%, 07/01/41 (Acquired
01/29/03-07/30/03; Cost
$2,975,000)(b)(c)(d) A-1 -- 2,975 2,975,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Sacred Heart Schools Project);
VRD Series 2003 RB (LOC-Fifth Third Bank)
1.10%, 07/01/33(b)(c) -- VMIG-1 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-American National Bank & Trust)
1.15%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (YMCA of Metro Chicago Project);
VRD Series 2001 RB (LOC-Harris Trust &
Savings Bank)
1.22%, 06/01/29(b)(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
1.15%, 03/01/32(b)(c) -- VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Museum of Science & Industry);
VRD Series 1992 RB (LOC-First National
Bank)
1.15%, 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)
1.15%, 06/01/29(b)(c) A-1 -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Northwestern University);
VRD Series 1985 L RB
1.10%, 12/15/25(c) -- VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 RB
1.10%, 12/01/25(c) -- VMIG-1 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-American National
Bank & Trust)
1.15%, 02/15/19(b)(c) A-1 -- 1,200 1,200,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Blessing Hospital); VRD Series
1999 B RB
1.15%, 11/15/29(c)(h) A-1 VMIG-1 1,050 1,050,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bromenn Healthcare); VRD Series
2002 RB (LOC-Harris Trust & Savings Bank)
1.20%, 08/15/32(b)(i) A-1+ -- 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Cradle Society Project); VRD
Series 1998 IDR (LOC-American National Bank
& Trust)
1.15%, 04/01/33(b)(c) A-1 -- 1,600 1,600,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Health Facilities
Authority (Edward Hospital Obligated
Group); VRD Series 2001 C RB
1.10%, 02/01/34(c)(h) A-1 VMIG-1 $ 2,600 $ 2,600,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Franciscan Eldercare Project);
Refunding VRD Series 1996 C RB (LOC-LaSalle
National Bank)
1.15%, 05/15/26(b)(c) A-1 -- 1,420 1,420,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Memorial Health System);
Refunding Series 1997 RB
5.25%, 10/01/03(h) -- Aaa 1,190 1,190,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Northwestern Memorial Hospital);
VRD Series 2002 B RB
1.20%, 08/15/09(i) A-1+ VMIG-1 2,800 2,800,000
- -----------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
1.10%, 01/01/16(c)(h) -- VMIG-1 10,800 10,800,000
- -----------------------------------------------------------------------------------------
1.10%, 01/01/17(c)(h) -- 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 1,027,566
- -----------------------------------------------------------------------------------------
Illinois (State of); Unlimited Tax Series
2003 GO
2.00%, 01/15/04 SP-1+ MIG-1 5,000 5,015,032
- -----------------------------------------------------------------------------------------
1.50%, 03/15/04 SP-1+ MIG-1 5,000 5,012,366
- -----------------------------------------------------------------------------------------
2.00%, 04/15/04 SP-1+ MIG-1 5,000 5,027,418
- -----------------------------------------------------------------------------------------
1.50%, 05/15/04 SP-1+ MIG-1 5,000 5,016,567
- -----------------------------------------------------------------------------------------
McCook (City of) (Illinois St. Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
1.15%, 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
- -----------------------------------------------------------------------------------------
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Sangamon (County of) School District (No.186
Springfield); Series 2003 TAN
2.00%, 12/18/03 SP-1+ -- $ 5,000 $ 5,009,027
- -----------------------------------------------------------------------------------------
Schaumburg (City of) (Treehouse II Apartments
Project); Refunding Multi-Family Housing
VRD Series 1999 RB (CEP-Federal National
Mortgage Association)
1.05%, 12/15/29(c) A-1+ -- 12,185 12,185,000
- -----------------------------------------------------------------------------------------
Winnebago & Boone (Counties of) Community
High School District No.207; Unlimited Tax
Series 1994 GO
6.25%, 12/30/03(f)(g) AAA Aaa 1,200 1,215,515
=========================================================================================
368,221,472
=========================================================================================
INDIANA-0.98%
Indiana (State of) Bond Bank (Advanced
Funding Program Notes); Series 2003 A RN
2.00%, 01/27/04(h) SP-1+ MIG-1 2,500 2,507,188
- -----------------------------------------------------------------------------------------
Indiana (State of) Bond Bank (Midyear Funding
Program Notes); Series 2003 A RN
1.25%, 04/15/04 SP-1+ MIG-1 9,000 9,015,370
- -----------------------------------------------------------------------------------------
Indiana (State of) Development Finance
Authority (Indiana Historical Society);
Educational Facilities VRD Series 1996 IDR
(LOC-Bank One Indiana N.A.)
1.15%, 08/01/31 (Acquired
01/23/02-09/03/03; Cost
$6,140,000)(b)(c)(d) A-1 -- 6,140 6,140,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Franklin College of Indiana);
Educational Facilities VRD Series 1999 RB
(LOC-Bank One Indiana N.A.)
1.15%, 10/01/19(b)(c) A-1 -- 1,215 1,215,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Health Facilities
Financing Authority (Community Mental
Health & Rehabilitation); VRD Series 1990
RB (LOC-LaSalle National Bank)
1.10%, 11/01/20(b)(c) A-1 -- $ 2,345 $ 2,345,000
- -----------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Fayette Memorial
Hospital Association); VRD Series 2002 A RB
(LOC-U.S. Bank N.A.)
1.25%, 10/01/32(b)(i) A-1+ -- 3,100 3,100,000
=========================================================================================
24,322,558
=========================================================================================
IOWA-0.67%
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America N.A.)
1.15%, 02/01/33(b)(c) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2003 A RN
2.00%, 06/18/04(h) -- MIG-1 7,500 7,560,984
- -----------------------------------------------------------------------------------------
Iowa City (City of) (ACT, Inc.); VRD Series
2001 RB
1.30%, 04/01/32(i) A-1+ -- 7,000 7,000,000
=========================================================================================
16,560,984
=========================================================================================
KANSAS-0.81%
Johnson (County of) Unified School District
No.229; Unlimited Tax Series 1994 A GO
6.25%, 10/01/03 AA Aa1 1,180 1,180,000
- -----------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Department of Commerce &
Housing); Impact Series 2001 RB
3.50%, 06/01/04(h) AAA Aaa 1,000 1,017,531
- -----------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc. Project); VRD Series
2002 B RB (LOC-LaSalle Bank N.A.)
1.15%, 05/15/32(b)(c) A-1 -- $ 7,500 $ 7,500,000
- -----------------------------------------------------------------------------------------
Manhattan (City of) (Parker Hannifin Inc.
Project); Refunding VRD Series 1994 IDR
(LOC-Wachovia Bank of Georgia)
1.05%, 09/01/09(b)(c) -- Aa2 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America N.A.)
1.15%, 11/01/18(b)(c) -- VMIG-1 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America NT & SA)
1.15%, 08/01/09 (Acquired 02/15/01; Cost
$3,550,000)(b)(c)(d) A-1+ -- 3,550 3,550,000
=========================================================================================
20,247,531
=========================================================================================
KENTUCKY-1.89%
Kenton (County of) Airport Board; Special
Facilities VRD Series 2000 B IDR
(LOC-General Electric Capital Corp.)
1.12%, 10/01/30(b)(c) A-1+ VMIG-1 3,300 3,300,000
- -----------------------------------------------------------------------------------------
Kentucky Area Developing Districts Financing
Trust (Weekly Acquisition Lease Program-
Ewing); VRD Series 2000 RB (LOC-First Union
National Bank N.A.)
1.15%, 06/01/33(b)(c) A-1 -- 18,080 18,080,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
KENTUCKY-(CONTINUED)
Newport (City of) League of Cities Funding
Trust; Lease Program VRD Series 2002 RB
(LOC-U.S. Bank N.A.)
1.13%, 04/01/32(b)(c) -- VMIG-1 $25,600 $ 25,600,000
=========================================================================================
46,980,000
=========================================================================================
LOUISIANA-0.81%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP
1.15%, 12/01/21 (Acquired 10/10/00; Cost
$6,000,000)(c)(d)(e) A-1+ -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
Jefferson (Parish of) Industrial Development
Board Inc. (George J. Ackel, Sr. Project);
Refunding VRD Series 1986 IDR (LOC-Regions
Bank)
1.10%, 12/01/04(b)(c) -- VMIG-1 3,440 3,440,000
- -----------------------------------------------------------------------------------------
Kenner (City of); Refunding Sales Tax Series
2003 RB
5.00%, 06/01/04(h) AAA Aaa 1,810 1,858,464
- -----------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
1.28%, 09/01/16 (Acquired 08/15/01; Cost
$3,595,000)(b)(c)(d) -- VMIG-1 3,595 3,595,000
- -----------------------------------------------------------------------------------------
Shreveport (City of); Refunding Water & Sewer
Series 2002 A RB
4.00%, 12/01/03(h) AAA Aaa 5,275 5,296,476
=========================================================================================
20,189,940
=========================================================================================
MAINE-0.32%
Cumberland (County of); Unlimited Tax Series
2003 TAN
2.00%, 11/14/03(l) -- -- 8,000 8,008,553
=========================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MARYLAND-0.58%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust)
1.15%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- -----------------------------------------------------------------------------------------
Hyattsville (City of) (Safeway Inc.
Projects); Refunding VRD Series 1991 IDR
(LOC-Deutsche Bank Trust Co.)
1.30%, 12/01/03(b)(g)(n) A-1 -- 1,055 1,055,000
- -----------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC-Branch
Banking & Trust)
1.10%, 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
1.14%, 08/15/38 (Acquired 06/19/03; Cost
$3,800,000)(c)(d)(e) -- VMIG-1 3,800 3,800,000
=========================================================================================
14,455,000
=========================================================================================
MASSACHUSETTS-0.13%
Framingham (City of); Unlimited Tax Series
2003 BAN
1.25%, 03/30/04 -- MIG-1 2,283 2,286,368
- -----------------------------------------------------------------------------------------
Massachusetts (State of); Ltd Tax
Consolidated Loan Series 1994 B GO
6.00%, 08/01/04(f)(g) NRR NRR 975 1,034,560
=========================================================================================
3,320,928
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
MICHIGAN-3.06%
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); Limited
Tax VRD Series 1998 IDR (LOC-Comerica Bank)
1.10%, 10/01/23(b)(c)(l) -- -- $ 8,900 $ 8,900,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); Unlimited Tax VRD Series
2002-6014 Class A COP
1.15%, 05/01/32 (Acquired 11/06/02; Cost
$7,105,000)(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(f)(g) AAA Aaa 1,000 1,036,270
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Sewage
Disposal System);
VRD Series 2001 A112 RB 1.15%, 07/01/32
(Acquired 10/31/01; Cost
$4,935,000)(c)(d)(e) -- VMIG-1 4,935 4,935,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 B41 RB 1.15%, 07/01/26
(Acquired 07/09/03; Cost
$4,530,000)(c)(d)(e) -- VMIG-1 4,530 4,530,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Detroit Water
Supply System); Sr. Lien VRD Series 2000 D
RB
1.15%, 07/01/29 (Acquired 01/21/00; Cost
$10,000,000)(c)(d)(e) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Macomb (County of) Hospital Finance Authority
(Mount Clemens General Hospital); Refunding
VRD Series 2003 A-1 RB (LOC-Comerica Bank)
1.20%, 10/01/20(b)(i) -- VMIG-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 1,323,592
- -----------------------------------------------------------------------------------------
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
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 $ 8,068,626
- -----------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Peachwood
Center Associates); Refunding Limited Tax
VRD Series 1995 RB (LOC-Standard Federal
Bank)
1.10%, 11/01/27(b)(c) A-1 -- 13,300 13,300,000
- -----------------------------------------------------------------------------------------
Southfield (City of) (Lawrence Tech
University Project); Economic Development
VRD Series 2001 RB (LOC-Bank One Michigan
N.A.)
1.15%, 10/01/31(b)(c) A-1 -- 6,000 6,000,000
- -----------------------------------------------------------------------------------------
St. Joseph (City of) Hospital Finance
Authority (Lakeland Hospital at Niles); VRD
Series 2002 RB
1.05%, 01/01/32(c)(h) A-1 -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
Traverse City (City of) Area Public Schools;
Refunding Unlimited Tax Series 1994 GO
4.55%, 05/01/04(h) AAA Aaa 1,000 1,020,024
=========================================================================================
76,218,512
=========================================================================================
MINNESOTA-5.09%
Golden Valley (City of) (Unicare Homes Inc.
Project); VRD Series 1984 IDR (LOC-Bank of
America N.A.)
1.16%, 09/01/14(b)(c) A-1+ -- 3,900 3,900,000
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (Southern Minnesota Power
Agency); Power Supply System Series
2002-339 COP
1.13%, 01/01/13 (Acquired 07/31/03; Cost
$9,310,000)(c)(d)(e) A-1+ -- 9,310 9,310,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
J.P. Morgan PUTTERs (State of Minnesota
Public Facilities Authority); VRD Drinking
Water Series 2002-319 COP
1.13%, 03/01/21 (Acquired 07/31/03; Cost
$14,090,000)(c)(d)(e) A-1 -- $14,090 $ 14,090,000
- -----------------------------------------------------------------------------------------
Mahtomedi (City of) Independent School
District No. 832; Refunding Unlimited Tax
Series 2002 B GO
3.00%, 02/01/04 -- Aa2 1,455 1,465,060
- -----------------------------------------------------------------------------------------
Minneapolis (City of) (Minnehaha Academy
Project); VRD Series 2001 RB (LOC-Firstar
Bank N.A.)
1.30%, 05/01/26(b)(i)(l) -- -- 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) Higher Education
Facilities Authority (St. Olaf College);
(LOC-Harris Trust & Savings Bank)
VRD Series 2000 5H RB
1.20%, 10/01/30(b)(i) -- VMIG-1 1,600 1,600,000
- -----------------------------------------------------------------------------------------
VRD Series 2002 5M2 RB
1.20%, 10/01/20(b)(i) -- VMIG-1 1,900 1,900,000
- -----------------------------------------------------------------------------------------
Minnesota (State of) School Districts Tax &
Aid Anticipation Borrowing Program; Aid
Anticipation Ctfs. Series 2003 A RB
1.75%, 08/27/04 -- MIG-1 10,000 10,071,775
- -----------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes
Series 2000 B
0.80%, 10/21/03 A-1+ -- 20,500 20,500,000
- -----------------------------------------------------------------------------------------
Series 2001 A
0.80%, 10/22/03 A-1+ -- 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.80%, 10/28/03 A-1+ -- 9,500 9,500,000
- -----------------------------------------------------------------------------------------
Series 2001 B
0.93%, 11/18/03 A-1+ -- 10,600 10,600,000
- -----------------------------------------------------------------------------------------
Series 2000 C
0.85%, 11/20/03 A-1+ -- 10,900 10,900,000
- -----------------------------------------------------------------------------------------
</Table>
F-14
<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)
1.15%, 05/01/27(b)(c) -- VMIG-1 $14,260 $ 14,260,000
- -----------------------------------------------------------------------------------------
White Bear Lake (City of) Independent School
District No. 624; Refunding Tax School
Building Unlimited Tax Series 2002 C GO
3.00%, 02/01/04(h) AAA Aaa 1,010 1,016,981
=========================================================================================
126,613,816
=========================================================================================
MISSISSIPPI-1.47%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002- 22 Ctfs.
1.20%, 06/23/04 (Acquired 09/10/03; Cost
$9,995,000)(c)(d)(e)(g)(m) -- VMIG-1 9,995 9,995,000
- -----------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (State of
Mississippi); Unlimited Tax VRD Series
2002-6018 Class A COP
1.15%, 11/01/22 (Acquired 11/20/02; Cost
$3,200,000)(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)
1.15%, 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)
1.28%, 07/01/23 (Acquired 07/17/03; Cost
$10,000,000)(b)(c)(d) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
MISSISSIPPI-(CONTINUED)
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
1.15%, 10/01/20(c)(h) -- VMIG-1 $ 8,690 $ 8,690,000
=========================================================================================
36,685,000
=========================================================================================
MISSOURI-0.17%
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); VRD Series 1985 B RB
1.12%, 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.)
1.15%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
=========================================================================================
4,115,000
=========================================================================================
MONTANA-0.32%
Great Falls (City of) Industrial Development
Authority (Safeway Inc. Project); Refunding
VRD Series 1991 IDR (LOC-Deutsche Bank
A.G.)
1.30%, 12/01/03(b)(g)(n) A-1+ -- 985 985,000
- -----------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-LaSalle Bank N.A.)
1.15%, 08/01/27(b)(c)(j) -- -- 6,900 6,900,000
=========================================================================================
7,885,000
=========================================================================================
NEBRASKA-2.02%
Lincoln (City of); Various Purpose Unlimited
Tax Series 2003 GO
3.00%, 06/15/04 AAA Aaa 1,340 1,360,159
- -----------------------------------------------------------------------------------------
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
NEBRASKA-(CONTINUED)
Nebhelp Inc.; Multi-Mode
VRD Series 1985 A RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 $ 5,995 $ 5,995,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 3,590 3,590,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 D RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 4,865 4,865,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 E RB
1.15%, 12/01/15(c)(h) A-1+ VMIG-1 27,335 27,335,000
- -----------------------------------------------------------------------------------------
Nebraska (State of) Public Power District;
General Series 1998 A RB
5.25%, 01/01/04(h) AAA Aaa 7,000 7,068,306
=========================================================================================
50,213,465
=========================================================================================
NEVADA-0.46%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs.
1.18%, 07/01/09 (Acquired
06/21/01-11/19/02; Cost
$5,500,000)(c)(d)(e) -- VMIG-1 5,500 5,500,000
- -----------------------------------------------------------------------------------------
Clark (County of) School District; Building &
Renovation Limited Tax Series 1997 B GO
5.75%, 06/15/04(h) AAA Aaa 1,000 1,033,932
- -----------------------------------------------------------------------------------------
Henderson (City of); Refunding Building
Limited Tax Series 2003 A GO
2.00%, 06/01/04(h) AAA Aaa 2,050 2,065,585
- -----------------------------------------------------------------------------------------
Las Vegas (City of); Refunding Redevelopment
Projects Limited Tax Series 2003 A GO
2.00%, 06/15/04 AA- Aa3 1,170 1,179,004
- -----------------------------------------------------------------------------------------
Nevada (State of); Capital Improvements
Limited Tax Series 1996 A GO
6.00%, 05/15/04(f) AA Aa2 1,530 1,576,589
=========================================================================================
11,355,110
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.22%
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (New Hampshire Higher
Education & Health Facilities Authority);
Refunding VRD Series 2003-772 RB
1.14%, 01/01/17 (Acquired 01/22/03; Cost
$5,475,000)(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
=========================================================================================
NEW MEXICO-1.06%
Bernalillo (County of); Series 2003 TRAN
1.50%, 06/30/04 -- MIG-1 25,000 25,110,763
- -----------------------------------------------------------------------------------------
Dona Ana (County of) Gross Receipts Tax;
Refunding & Improvement Series 1998 RB
5.00%, 06/01/04(h) -- Aaa 1,200 1,231,276
=========================================================================================
26,342,039
=========================================================================================
NORTH CAROLINA-2.19%
North Carolina (State of) Capital Facilities
Finance Agency (NCA&T University
Foundation); Student Housing Facilities VRD
Series 2001 RB (LOC-First Union National
Bank)
1.15%, 07/01/32(b)(c) -- VMIG-1 18,745 18,745,000
- -----------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.10%, 04/01/12(b)(c)(j) -- -- 23,500 23,500,000
- -----------------------------------------------------------------------------------------
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.)
1.10%, 01/01/18(b)(c)(j) -- -- 12,115 12,115,000
=========================================================================================
54,360,000
=========================================================================================
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-5.73%
Cambridge (City of) (Regional Medical Center
Project); Refunding & Improvement Hospital
Facilities VRD Series 2001 RB (LOC-National
City Bank)
1.14%, 12/01/21(b)(c) -- VMIG-1 $12,075 $ 12,075,000
- -----------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC-National City Bank)
1.14%, 11/01/13(b)(c) -- VMIG-1 2,185 2,185,000
- -----------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2003 BAN
2.00%, 03/18/04(j) -- -- 2,705 2,716,109
- -----------------------------------------------------------------------------------------
Columbus (City of); Refunding Sewer VRD
Series 1994 RB
1.10%, 06/01/11(c) A-1+ VMIG-1 3,500 3,500,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Continuing Care
Facilities; Refunding VRD Series 1999 RB
(LOC-LaSalle National Bank)
1.10%, 02/01/29(b)(c) A-1+ -- 23,385 23,385,000
- -----------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
1.15%, 11/15/19(b)(c) A-1 -- 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Delaware (County of) (Radiation Sterilizers);
VRD Series 1984 IDR (LOC-American National
Bank & Trust)
1.10%, 12/01/04(b)(k) A-1 -- 1,300 1,300,000
- -----------------------------------------------------------------------------------------
Kettering (City of) School District; School
Improvement Unlimited Tax Series 2003 GO
2.50%, 12/01/03 AA- Aa3 4,925 4,937,017
- -----------------------------------------------------------------------------------------
Lorain (County of) (Elyria United Methodist
Village); Refunding Hospital VRD Series
1996 B RB (LOC-Bank One N.A.)
1.09%, 06/01/12(b)(c) A-1 VMIG-1 5,110 5,110,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
1.17%, 05/01/26(b)(c)(l) -- -- $15,595 $ 15,595,000
- -----------------------------------------------------------------------------------------
Lorain (County of) Independent Living
Facilities (Elyria United Methodist
Project); VRD Series 1999 RB (LOC-Bank One
N.A.)
1.09%, 06/01/25(b)(c) A-1 -- 9,495 9,495,000
- -----------------------------------------------------------------------------------------
Lucas (County of) Health Care Facilities
(Sunset Retirement Communities); Refunding
& Improvement VRD Series 2000 B RB
(LOC-Fifth Third Bank)
1.10%, 08/15/30(b)(c) -- VMIG-1 3,100 3,100,000
- -----------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group); VRD Series
2002 B RB (LOC-Fifth Third Bank)
1.14%, 12/01/27(b)(c) -- VMIG-1 7,500 7,500,000
- -----------------------------------------------------------------------------------------
Mahoning Valley (City of) Sanitation
District; Water Series 1994 RB
7.75%, 05/15/04(f)(g) NRR NRR 8,000 8,491,760
- -----------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC-Bank One N.A.)
1.10%, 08/01/20(b)(c) A-1 -- 4,745 4,745,000
- -----------------------------------------------------------------------------------------
Maumee (City of) School District; Unlimited
Tax Series 2003 BAN
2.00%, 10/28/03 SP-1+ -- 4,500 4,503,539
- -----------------------------------------------------------------------------------------
Middleburg Heights (City of) Hospitals
(Southwest General Health Center);
Improvement VRD Series 1997 RB (LOC-Fifth
Third Bank)
1.14%, 08/15/22(b)(c) A-1+ -- 5,615 5,615,000
- -----------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Ohio (State of) Building Authority (Adult
Correctional Building Fund); State
Facilities Series 1993 A RB
6.13%, 10/01/03(f)(g) AA Aa2 $ 1,750 $ 1,785,000
- -----------------------------------------------------------------------------------------
Ohio (State of) Economic Development (Sysco
Food Services-Cleveland); Refunding Series
1991 RB
6.60%, 12/01/03 AA- -- 1,675 1,688,079
- -----------------------------------------------------------------------------------------
Ohio (State of) Water Development Authority
(Timken Co. Project); Refunding VRD Series
1993 RB (LOC-Wachovia Bank of Georgia)
1.10%, 05/01/07(b)(c) A-1 -- 2,200 2,200,000
- -----------------------------------------------------------------------------------------
Plain (City of) School District; Unlimited
Tax Series 2003 GO
2.00%, 12/01/03(h) AAA Aaa 1,540 1,542,336
- -----------------------------------------------------------------------------------------
Portage (County of) (Robinson Memorial
Hospital); VRD Series 2002 RB (LOC-Bank One
N.A.)
1.14%, 05/01/17(b)(c) -- VMIG-1 6,635 6,635,000
- -----------------------------------------------------------------------------------------
Solon (City of) (Fire Station); Limited Tax
Series 2002 BAN
2.00%, 12/11/03(l) -- -- 2,275 2,277,924
- -----------------------------------------------------------------------------------------
University of Toledo General Receipts Bonds;
VRD Series 2002 RB
1.20%, 06/01/32(h)(i) A-1+ VMIG-1 4,875 4,875,000
- -----------------------------------------------------------------------------------------
Upper Arlington (City of); Series 2002 A BAN
2.00%, 11/20/03 -- MIG-1 1,265 1,265,887
- -----------------------------------------------------------------------------------------
Youngstown (City of) School District;
Unlimited Tax Series 2003-3 BAN
2.00%, 05/05/04 -- MIG-1 5,000 5,029,462
=========================================================================================
142,552,113
=========================================================================================
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
OKLAHOMA-1.90%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Project); Refunding
Multi-Family VRD Series 2000 RB
(CEP-Federal National Mortgage Association)
1.09%, 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.)
1.18%, 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(g) A-1+ -- 15,000 15,000,000
=========================================================================================
47,250,000
=========================================================================================
OREGON-0.18%
Clackamas (County of) School District No.115;
Unlimited Tax Series 1994 GO
6.15%, 06/01/04(f)(g) AAA Aaa 1,300 1,370,747
- -----------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
1.15%, 01/01/31(b)(c) -- Aa2 2,000 2,000,000
- -----------------------------------------------------------------------------------------
Portland (City of) Community College
District; Series 2003 TRAN
2.00%, 11/28/03 -- MIG-1 1,000 1,001,489
=========================================================================================
4,372,236
=========================================================================================
PENNSYLVANIA-3.51%
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001- 30
Ctfs.
1.15%, 09/01/09 (Acquired 10/31/02; Cost
$5,000,000)(c)(d)(e) -- VMIG-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Allegheny (County of) Hospital Development
Authority (ACES- Presbyterian University
Hospital); VRD Series 1988 B2 RB (LOC-Bank
One N.A.)
1.15%, 03/01/18(b)(c) -- VMIG-1 $ 5,470 $ 5,470,000
- -----------------------------------------------------------------------------------------
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 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
1.05%, 01/01/28(c)(h) -- VMIG-1 8,641 8,641,000
- -----------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial
and Commercial Development Authority
(Asbury Villas Project); VRD Series 2000 B
IDR (LOC-LaSalle Bank N.A.)
1.15%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Commonwealth of
Pennsylvania); VRD Series 1994-3802 COP
1.15%, 05/01/07 (Acquired 01/29/03; Cost
$1,295,000)(c)(d)(e) A-1+ -- 1,295 1,295,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
1.15%, 08/01/28 (Acquired
06/04/01-09/06/02; Cost
$8,900,000)(c)(d)(e) A-1+ -- 8,900 8,900,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (City of Scranton &
County of Lackawanna Health & Welfare
Authority); VRD Series 2002 A-18 RB
1.15%, 03/01/15 (Acquired 03/22/02; Cost
$3,280,000)(c)(d)(e) -- VMIG-1 3,280 3,280,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation);
VRD Series 2000 IDR
1.18%, 12/01/24(c)(h) A-1 -- $ 3,645 $ 3,645,000
- -----------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
Project); Refunding School VRD Series 2003
RB
0.99%, 12/01/27(c)(h) A-1+ -- 10,000 10,000,000
- -----------------------------------------------------------------------------------------
Hazelton (City of) Area School District;
Unlimited Tax Series 2001 GO
6.50%, 03/01/04(h) AAA Aaa 1,735 1,775,665
- -----------------------------------------------------------------------------------------
J.P. Morgan PUTTERs (State of Pennsylvania);
Unlimited Tax VRD Series 2003-346 GO
1.11%, 04/01/11 (Acquired 07/31/03; Cost
$11,190,000)(c)(d)(e) A-1+ -- 11,190 11,190,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Pollution Control VRD Series 1984 IDR
(LOC-Rabobank Nederland)
1.03%, 10/01/14(b)(k) A-1+ -- 7,480 7,480,000
- -----------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Corp.);
Refunding Pollution Control VRD Series 1984
IDR (LOC-Rabobank Nederland) 1.03%,
06/01/14(b)(k) A-1+ -- 1,105 1,105,000
- -----------------------------------------------------------------------------------------
Lower Makefield (Township of); Unlimited Tax
Series 1998 GO
4.90%, 12/01/03(f)(g) NRR NRR 950 956,141
- -----------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Carnegie Mellon
University); Refunding VRD Series 1995 A RB
1.22%, 11/01/25(i) A-1+ -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Philadelphia (City of); Refunding Water &
Wastewater VRD Series 2003 RB
1.10%, 06/15/23(c)(h) A-1+ VMIG-1 $ 5,180 $ 5,180,000
- -----------------------------------------------------------------------------------------
Washington (County of) Authority (Higher
Education Pooled Equipment Lease); Lease
VRD Series 1985 RB (LOC-Wachovia Bank)
1.12%, 11/01/05(b)(c) -- VMIG-1 3,660 3,660,000
=========================================================================================
87,377,806
=========================================================================================
SOUTH CAROLINA-3.42%
Anderson (City of) Water & Sewer Systems;
Series 2003 RB
2.00%, 07/01/04(h) AAA Aaa 1,410 1,421,205
- -----------------------------------------------------------------------------------------
Beaufort (County of) School District;
Unlimited Tax Series 2003 C GO
3.00%, 03/01/04 -- Aa1 2,975 3,000,562
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority);
VRD Series 2000-4001 Class A COP
1.15%, 01/01/22 (Acquired 09/08/00-
01/11/01; Cost $10,100,000)(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
1.15%, 01/01/22 (Acquired 02/25/00-
10/24/02; Cost $11,590,000)(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
1.14%, 10/01/22 (Acquired 11/13/02; Cost
$7,185,000)(c)(d)(e) A-1 -- 7,185 7,185,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Richland (County of) School District No. 002;
Unlimited Tax Series 2002 B GO
4.00%, 02/01/04(h) AAA Aaa $ 1,000 $ 1,010,239
- -----------------------------------------------------------------------------------------
Richland (County of); Unlimited Tax Series
2003 B GO
2.00%, 03/01/04 AA Aa1 2,400 2,410,899
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Allen University Project);
VRD Series 1998 RB (LOC-Bank of America
N.A.)
1.15%, 09/01/18 (Acquired
03/27/01-07/30/02; Cost $2,840,000)(c)(d) A-1+ -- 2,840 2,840,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Nonprofit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America N.A.)
1.15%, 07/01/17 (Acquired
07/30/02-01/29/03; Cost $2,300,000)(c)(d) A-1+ -- 2,300 2,300,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust)
1.10%, 03/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
South Carolina (State of) Jobs- Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America N.A.)
1.15%, 09/01/32(b)(c)(j) -- -- 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.)
1.15%, 09/01/18 (Acquired
07/23/02-01/29/03; Cost
$2,775,000)(b)(c)(d) A-1+ -- 2,775 2,775,000
- -----------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs- Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank N.A.)
1.11%, 04/01/20(b)(c) A-1 -- $ 4,535 $ 4,535,000
- -----------------------------------------------------------------------------------------
South Carolina (State of); Capital
Improvement Unlimited Tax Series 1994 A GO
5.20%, 03/01/04(f)(g) AAA Aaa 5,750 5,969,178
- -----------------------------------------------------------------------------------------
Spartanburg (City of) Sanitation Sewer
District; Refunding Unlimited Tax Series
2002 A GO
3.00%, 03/01/04(h) AAA Aaa 1,265 1,275,871
- -----------------------------------------------------------------------------------------
Sumter (County of) School District No. 2;
Refunding Unlimited Tax Series 2003 GO
1.50%, 04/01/04 AA+ Aa1 3,240 3,250,440
- -----------------------------------------------------------------------------------------
University of South Carolina; University
Revenue Series 2003 BAN
1.75%, 07/24/04 -- MIG-1 17,700 17,822,374
- -----------------------------------------------------------------------------------------
Western Carolina (Region of) Sewer Authority;
Sewer System Series 2001 RB
5.00%, 03/01/04(h) AAA Aaa 1,100 1,118,993
=========================================================================================
85,104,761
=========================================================================================
TENNESSEE-8.03%
Blount (County of) Public Building Authority
(Local Government Public Improvements);
VRD Series 2002 A-7-C RB
1.10%, 06/01/17(c)(h) -- VMIG-1 4,040 4,040,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-1-H RB
1.25%, 06/01/20(h)(i) -- VMIG-1 1,290 1,290,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-2-H RB
1.25%, 06/01/17(h)(i) -- VMIG-1 3,850 3,850,000
- -----------------------------------------------------------------------------------------
VRD Series 2001 A-3-A RB
1.25%, 06/01/26(h)(i) -- VMIG-1 2,000 2,000,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Funding (LOC-Bank of America N.A.)
VRD Series 2001 RB
1.22%, 07/01/31(b)(i) -- VMIG-1 $ 6,880 $ 6,880,000
- -----------------------------------------------------------------------------------------
VRD Series 2003 RB
1.22%, 01/01/33(b)(i) -- VMIG-1 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Clarksville (City of) Water, Sewer & Gas;
Refunding Series 2002 RB
4.10%, 02/01/04(h) -- Aaa 1,015 1,025,731
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 COP
1.15%, 10/01/27 (Acquired
10/10/00-05/30/01; Cost
$14,040,000)(c)(d)(e) A-1+ -- 14,040 14,040,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
1.10%, 11/01/26(c)(h) -- VMIG-1 13,150 13,150,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Energy Authority;
Wastewater Systems VRD Series 2002 RB
1.10%, 12/01/22(c)(h) -- VMIG-1 24,100 24,100,000
- -----------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
1.28%, 03/01/22(b)(c) -- VMIG-1 5,400 5,400,000
- -----------------------------------------------------------------------------------------
Knox (County of); Unlimited Tax Series 2003
BAN
1.00%, 11/01/03 SP-1+ VMIG-1 4,200 4,200,168
- -----------------------------------------------------------------------------------------
Knoxville (City of) Utilities Board (Suburban
Electric System);
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 12,780 12,780,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 RB
1.23%, 01/15/05(h)(i) A-1+ VMIG-1 4,050 4,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Montgomery (County of) Public Building
Authority (Tennessee County Loan Pool);
Pooled Funding Government Obligation VRD
Series 2002 RB (LOC-Bank of America N.A.)
1.22%, 04/01/32(b)(i) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Sevier (County of) Public Building Authority
(Local Government Public Improvement);
VRD Series 1995 A RB
1.10%, 06/01/15(c)(h) -- VMIG-1 5,570 5,570,000
- -----------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
1.10%, 06/01/06(c)(h) -- VMIG-1 1,760 1,760,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,390 1,390,000
- -----------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
1.10%, 06/01/17(c)(h) -- VMIG-1 1,335 1,335,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 1,325 1,325,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
1.10%, 06/01/19(c)(h) -- VMIG-1 2,850 2,850,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
1.10%, 06/01/18(c)(h) -- VMIG-1 3,770 3,770,000
- -----------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
1.10%, 06/01/20(c)(h) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
1.10%, 06/01/24(c)(h) -- VMIG-1 5,600 5,600,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
1.10%, 06/01/25(c)(h) -- VMIG-1 1,200 1,200,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV B-3 RB
1.25%, 06/01/13(h)(i) -- VMIG-1 7,000 7,000,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV E-1 RB
1.25%, 06/01/30(h)(i) -- VMIG-1 11,400 11,400,000
- -----------------------------------------------------------------------------------------
VRD Series 2000 IV F-1 RB
1.25%, 06/01/25(h)(i) -- VMIG-1 7,540 7,540,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (Briarcrest
Christian School System); Educational
Facilities VRD Series 2002 RB (LOC-SunTrust
Bank)
1.25%, 04/01/22(b)(c) -- VMIG-1 11,500 11,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TENNESSEE-(CONTINUED)
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
1.13%, 05/01/33(b)(c) -- VMIG-1 $ 5,000 $ 5,000,000
- -----------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board; Commercial Paper
Notes (LOC-Bank of America N.A.)
0.96%, 10/27/03(b) A-1+ -- 8,200 8,200,000
- -----------------------------------------------------------------------------------------
1.00%, 10/27/03(b) A-1+ -- 4,200 4,200,000
- -----------------------------------------------------------------------------------------
Tennessee (State of); Unlimited Tax Series
1994 A GO
5.40%, 03/01/04(f)(g) NRR NRR 1,740 1,796,688
- -----------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
1.15%, 04/01/23(b)(c) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
Wilson (County of); Refunding Capital Outlay
Notes Unlimited Tax Series 2002 A GO
5.00%, 06/15/04(h) -- Aaa 1,440 1,481,952
=========================================================================================
199,824,539
=========================================================================================
TEXAS-11.14%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Refunding Unlimited Multi-State Non-AMT
Series 2001-16 Ctfs.
1.18%, 08/15/10 (Acquired 08/20/03; Cost
$5,395,000)(c)(d)(e)(g) -- VMIG-1 5,395 5,395,000
- -----------------------------------------------------------------------------------------
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 4,400 4,400,000
- -----------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Bell (County of) Health Facilities
Development Corp. (Scott & White); Hospital
VRD Series 2001-1 RB
1.25%, 08/15/31(h)(i) A-1+ VMIG-1 $ 3,670 $ 3,670,000
- -----------------------------------------------------------------------------------------
Bellaire (City of); Refunding Limited Tax
Series 2002 B GO
3.00%, 02/15/04(h) AAA Aaa 1,060 1,068,169
- -----------------------------------------------------------------------------------------
Carroll (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 3,075 3,090,435
- -----------------------------------------------------------------------------------------
Clint (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,000 1,015,125
- -----------------------------------------------------------------------------------------
Coastal Bend Health Facilities Development
Corp. (Incarnate Word Health Services); VRD
Series 1998 B RB
1.14%, 08/15/28(c)(h) SP-1+ VMIG-1 1,700 1,700,000
- -----------------------------------------------------------------------------------------
Corpus Christi (City of); Limited Tax
Refunding & Improvement Series 2003 GO
2.00%, 03/01/04(h) AAA Aaa 1,640 1,645,540
- -----------------------------------------------------------------------------------------
Dallas (City of) Waterworks & Sewer System;
Refunding & Improvement Series 1997 RB
5.25%, 04/01/04(f)(g) NRR NRR 3,120 3,233,031
- -----------------------------------------------------------------------------------------
Denton (City of) Utility Systems; Refunding &
Improvement Series 2001 RB
5.00%, 12/01/03(h) AAA Aaa 1,620 1,630,823
- -----------------------------------------------------------------------------------------
Denton (City of); Limited Tax Ctfs.
Obligation Series 2001 GO
4.75%, 02/15/04(h) AAA Aaa 1,000 1,014,197
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
1.15%, 07/01/28 (Acquired
11/15/00-02/20/01; Cost
$15,750,000)(c)(d)(e) A-1+ -- 15,750 15,750,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer);
VRD Series 974305 COP 1.15%, 12/01/27
(Acquired 04/27/99; Cost
$14,005,000)(c)(d)(e) A-1+ -- $14,005 $ 14,005,000
- -----------------------------------------------------------------------------------------
VRD Series 2002-6019 Class A COP 1.15%,
12/01/30 (Acquired 11/13/02; Cost
$8,910,000)(c)(d)(e) A-1+ -- 8,910 8,910,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP
1.15%, 08/01/14 (Acquired 05/08/01; Cost
$7,390,000)(c)(d)(e) A-1+ -- 7,390 7,390,000
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County); VRD
Series 2002-6012 Class A COP
1.15%, 08/15/30 (Acquired 11/20/02; Cost
$1,580,000)(c)(d)(e) A-1+ -- 1,580 1,580,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Harris County);
Refunding VRD Series 2003 B16 RB
1.15%, 08/15/25 (Acquired 02/19/03; Cost
$3,015,000)(c)(d)(e) -- VMIG-1 3,015 3,015,000
- -----------------------------------------------------------------------------------------
First Union MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB
1.13%, 08/15/22 (Acquired
01/29/03-07/08/03; Cost
$8,015,000)(c)(d)(e) -- VMIG-1 8,015 8,015,000
- -----------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Chase Bank of Texas
N.A.)
1.13%, 12/01/14 (Acquired 09/03/03; Cost
$1,050,000)(b)(c)(d) -- Aa3 1,050 1,050,000
- -----------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family VRD Series 1993 RB
(CEP-General Electric Capital Corp.)
1.10%, 06/01/10(c) A-1+ -- $ 2,700 $ 2,700,000
- -----------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Houston
Light & Power Co.); Refunding Series 1993
RB
4.90%, 12/01/03(h) AAA Aaa 1,000 1,006,345
- -----------------------------------------------------------------------------------------
Harlandale Independent School District;
Refunding Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.00%, 02/01/04 AAA Aaa 1,340 1,343,771
- -----------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Series 1999 A RB
4.50%, 10/01/03 AA Aa2 1,000 1,000,000
- -----------------------------------------------------------------------------------------
Harris (County of); Refunding Unlimited Tax
Series 1993 GO
4.60%, 10/01/03 AA+ Aa1 1,995 1,995,000
- -----------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); Pollution Control
VRD Series 1985 IDR
1.10%, 11/01/03(c)(g) A-1+ P-1 5,000 5,000,000
- -----------------------------------------------------------------------------------------
Houston (City of); Refunding & Public
Improvement Limited Tax Series 1999 A GO
5.00%, 03/01/04 AA- Aa3 1,000 1,016,818
- -----------------------------------------------------------------------------------------
Houston (City of); Series A Commercial Paper
Notes
0.85%, 10/30/03 A-1 P-1 19,700 19,700,000
- -----------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Refunding Unlimited Tax Series 2001 GO
(CEP-Texas Permanent School Fund) 5.00%,
02/15/04 AAA Aaa 1,375 1,395,577
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Katy (City of) Independent School District;
Unlimited Tax Series 2001 B GO (CEP-Texas
Permanent School Fund)
4.00%, 02/15/04 AAA Aaa $ 2,000 $ 2,022,535
- -----------------------------------------------------------------------------------------
Keller (City of); Limited Tax Ctfs.
Obligation Series 2003 GO
3.00%, 02/15/04(h) AAA Aaa 1,120 1,128,075
- -----------------------------------------------------------------------------------------
Killeen (City of) Independent School
District; Refunding Unlimited Tax Series
2003 GO (CEP-Texas Permanent School Fund)
4.50%, 02/15/04 AAA Aaa 1,005 1,018,337
- -----------------------------------------------------------------------------------------
Lewisville (City of); Refunding Limited Tax
Series 2002 GO
3.50%, 02/15/04(h) AAA Aaa 1,000 1,009,562
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
1.13%, 08/15/10 (Acquired 02/20/03; Cost
$4,990,000)(c)(d)(e) -- VMIG-1 4,990 4,990,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (City of Kerrville
Independent School District); Refunding
Unlimited Tax VRD Series 2000 PA-698 GO
1.10%, 11/13/03 (Acquired 05/14/03; Cost
$6,010,000)(c)(d)(e) -- VMIG-1 6,010 6,010,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB
1.13%, 08/15/08 (Acquired 10/02/02; Cost
$5,935,000)(c)(d)(e) A-1+ -- 5,935 5,935,000
- -----------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated Trust
Floater Ctfs. (State of Texas Affordable
Housing Corp.); Floating Rate Trust Ctfs.
VRD Series 2003-780 RB
1.14%, 09/01/22 (Acquired 02/19/03; Cost
$2,500,000)(c)(d)(e) -- VMIG-1 2,500 2,500,000
- -----------------------------------------------------------------------------------------
</Table>
F-24
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
North Texas (Region of) Municipal Water
District; Refunding Regional Wastewater
Systems Series 2003 RB
3.00%, 06/01/04(h) AAA Aaa $ 2,930 $ 2,971,886
- -----------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax Series 2003 A GO
(CEP-Texas Permanent School Fund)
1.00%, 08/01/04 A-1+ VMIG-1 2,400 2,400,000
- -----------------------------------------------------------------------------------------
Red River Authority (Southwestern Public
Services); Refunding Pollution Control
Series 1996 IDR
1.10%, 07/01/16(c)(h) A-1+ VMIG-1 1,500 1,500,000
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Refunding Unlimited Tax Series
2001 GO (CEP-Texas Permanent School Fund)
5.00%, 02/15/04 AAA Aaa 1,500 1,522,469
- -----------------------------------------------------------------------------------------
Richardson (City of) Independent School
District; Unlimited Tax Series 2003 GO
(CEP-Texas Permanent School Fund)
2.50%, 02/15/04 AAA Aaa 2,600 2,613,858
- -----------------------------------------------------------------------------------------
San Antonio (City of) Electric & Gas System;
Series 1997 RB
6.00%, 02/01/04 AA+ Aa1 2,270 2,307,431
- -----------------------------------------------------------------------------------------
San Antonio (City of) Municipal Drainage
Utilities System; Series 2003 RB
2.00%, 02/01/04(h) AAA Aaa 1,035 1,038,710
- -----------------------------------------------------------------------------------------
San Antonio (City of) Water System; Series
2001 A Commercial Paper Notes
0.80%, 10/14/03 -- 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.)
1.15%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- -----------------------------------------------------------------------------------------
Texas (State of); Series 2003 TRAN
2.00%, 08/31/04 SP-1+ MIG-1 63,200 63,704,307
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Travis (County of); Refunding Limited Tax
Series 2002 GO
4.00%, 03/01/04 AAA Aaa $ 2,000 $ 2,025,456
- -----------------------------------------------------------------------------------------
Trinity River Authority (Red Oak Creek
System); Refunding Series 2003 RB
3.00%, 02/01/04(h) AAA Aaa 1,185 1,193,191
- -----------------------------------------------------------------------------------------
Trinity River Industrial Development
Authority (Radiation Sterilizers);
(LOC-American National Bank & Trust)
VRD Series 1985 A IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,900 1,900,000
- -----------------------------------------------------------------------------------------
VRD Series 1985 B IDR
1.10%, 11/01/05(b)(k) A-1 -- 1,450 1,450,000
=========================================================================================
276,975,648
=========================================================================================
UTAH-1.29%
Davis (County of) Housing Authority (Fox
Creek Apartments); Refunding Multi-Family
Housing VRD Series 1997 A RB (LOC-Bank One
Arizona N.A.)
1.10%, 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 4,064,563
- -----------------------------------------------------------------------------------------
Davis (County of); Series 2003 TRAN
2.00%, 12/30/03 -- MIG-1 3,900 3,910,026
- -----------------------------------------------------------------------------------------
First Union MERLOTs (Intermountain Power
Agency); VRD Series 2002 A59 RB
1.15%, 07/01/10 (Acquired 10/23/02; Cost
$7,195,000)(c)(d)(e) -- VMIG-1 7,195 7,195,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Murray City Hospital
Revenue); VRD Series 2002 PA-1066 RB
1.13%, 05/15/22 (Acquired
10/02/02-10/18/02; Cost
$5,995,000)(c)(d)(e) A-1 -- 5,995 5,995,000
- -----------------------------------------------------------------------------------------
</Table>
F-25
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
UTAH-(CONTINUED)
Salt Lake City (City of) Industrial
Development (Parkview Plaza Associates);
VRD Series 1984 IDR (LOC-Bank One Arizona
N.A.)
1.07%, 12/01/14(b)(c) A-1 -- $ 2,175 $ 2,175,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Pollution Control
(Service Station Holdings Project);
Refunding VRD Series 1994 B IDR (CEP-BP
PLC)
1.22%, 08/01/07(i) A-1+ P-1 3,525 3,525,000
- -----------------------------------------------------------------------------------------
Salt Lake City (City of) Redevelopment
Agency; Refunding Community Business
District Neighborhood Redevelopment Tax Jr.
Lien Series 2002 A RB
3.75%, 03/01/04(h) -- Aaa 1,000 1,011,780
=========================================================================================
32,116,369
=========================================================================================
VERMONT-0.43%
Vermont (State of) Educational & Health
Building Financing Agency (Fletcher Allen
Health Care Inc.); Hospital VRD Series 2000
RB
1.15%, 12/01/30(c)(h) A-1+ VMIG-1 8,000 8,000,000
- -----------------------------------------------------------------------------------------
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust)
1.00%, 01/01/04(b)(k) -- VMIG-1 2,640 2,640,000
=========================================================================================
10,640,000
=========================================================================================
VIRGINIA-0.34%
Chesapeake (City of) Hospital Authority
(Chesapeake General Hospital); VRD Series
2001 B RB (LOC-SunTrust Bank)
1.10%, 07/01/31(b)(c) A-1+ -- 1,545 1,545,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Norfolk (City of) Industrial Development
Authority (Sentara Health System);
Commercial Paper Notes
0.85%, 12/11/03 A-1+ P-1 $ 5,500 $ 5,500,000
- -----------------------------------------------------------------------------------------
Roanoke (City of) Industrial Development
Authority (Carilion Health System);
Refunding Hospital VRD Series 2002 B IDR
1.25%, 07/01/27(i) A-1+ VMIG-1 1,300 1,300,000
=========================================================================================
8,345,000
=========================================================================================
WASHINGTON-5.56%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Series
2003-7 Ctfs.
1.13%, 11/05/03 (Acquired 05/13/03; Cost
$10,685,000)(d)(e)(g)(m) -- VMIG-1 10,685 10,685,000
- -----------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (King County);
Refunding Limited Tax Multi-State Non-AMT
VRD Series 2001-1 Ctfs.
1.18%, 07/01/06 (Acquired 01/04/01; Cost
$10,000,000)(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)
1.15%, 12/01/28(b)(c)(j) -- -- 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 1,710,818
- -----------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 964703 Class A COP
1.15%, 07/01/11 (Acquired 05/02/01; Cost
$5,870,000)(c)(d)(e) A-1+ -- 5,870 5,870,000
- -----------------------------------------------------------------------------------------
</Table>
F-26
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Eagle Tax Exempt Trust (State of Washington);
VRD Series 984701 COP
1.15%, 05/01/18 (Acquired 07/20/00; Cost
$14,400,000)(c)(d)(e) A-1+ -- $14,400 $ 14,400,000
- -----------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
(LOC-Bank of America N.A.)
Commercial Paper Notes 0.98%, 02/19/04(b) A-1+ -- 4,300 4,300,000
- -----------------------------------------------------------------------------------------
Series A Commercial Paper Notes 0.98%,
02/19/04(b) A-1+ -- 7,000 7,000,000
- -----------------------------------------------------------------------------------------
Everett (City of); Limited VRD Tax Series
2001 GO (LOC-Bank of America N.A.)
1.15%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- -----------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America N.A.)
1.10%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- -----------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 IDR (LOC-U.S. Bank N.A.)
1.15%, 04/01/23(b)(c) -- VMIG-1 3,915 3,915,000
- -----------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue (LOC-U.S. Bank N.A.)
VRD Series 1999 A RB
1.14%, 10/05/03(b)(c) -- VMIG-1 11,800 11,800,000
- -----------------------------------------------------------------------------------------
VRD Series 1999 B RB
1.14%, 12/01/19(b)(c) -- VMIG-1 200 200,000
- -----------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Energy Northwest);
Refunding VRD Series 2001 PF-846 RB
1.14%, 01/01/10 (Acquired
10/02/02-12/04/02; Cost
$3,800,000)(c)(d)(e) A-1 -- 3,800 3,800,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); VRD Series 1997
RB (LOC-Bank of America NT & SA)
1.15%, 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 3,350 3,418,850
- -----------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
1.12%, 11/01/25(c) A-1+ VMIG-1 1,400 1,400,000
- -----------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC-U.S.
Bank of Washington)
1.15%, 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.)
1.15%, 12/01/15(b)(c) A-1+ -- 2,870 2,870,000
- -----------------------------------------------------------------------------------------
Spokane (City of) Regional Solid Waste
Management System; Refunding Series 2003 RB
5.00%, 12/01/03(h) AAA Aaa 1,000 1,006,446
- -----------------------------------------------------------------------------------------
Tacoma (City of) Conservation System
Projects; Refunding Series 2003 RB
2.00%, 12/01/03 AA- Aa1 1,120 1,121,704
- -----------------------------------------------------------------------------------------
Tacoma (City of); Series 2B Commercial Paper
Notes (LOC-Bank of America N.A.)
0.80%, 10/16/03(b) A-1+ P-1 15,000 15,000,000
- -----------------------------------------------------------------------------------------
Thurston (County of) School District No.033
(City of Tumwater); Unlimited Tax Series
2003 GO
2.00%, 12/01/03(h) -- Aaa 1,400 1,402,432
- -----------------------------------------------------------------------------------------
</Table>
F-27
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
1.14%, 11/02/05(b)(c) A-1+ -- $ 1,515 $ 1,515,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Rockwood Retirement
Communities); VRD Nonprofit Housing Series
2002 RB (LOC-Wells Fargo Bank N.A.)
1.20%, 01/01/34(b)(i) -- VMIG-1 4,000 4,000,000
- -----------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); VRD Series 2000 RB (LOC-Bank of
America N.A.)
1.15%, 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(h) AAA Aaa 1,000 1,037,691
=========================================================================================
138,162,941
=========================================================================================
WEST VIRGINIA-0.41%
West Virginia (State of) Hospital Finance
Authority (Cabell Huntington Project);
Refunding VRD Series 2002 A-1 RB (LOC-Bank
One West Virginia)
1.15%, 06/01/13(b)(c) -- VMIG-1 10,270 10,270,000
=========================================================================================
WISCONSIN-2.63%
Byron (City of) (Ocean Spray Inc. Project);
Refunding VRD Series 1998 IDR (LOC-Wachovia
Bank of North Carolina)
1.05%, 12/01/20 (Acquired 09/03/03; Cost
$3,500,000)(b)(c)(d) -- Aa2 3,500 3,500,000
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
<Caption>
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Franklin (City of) Community Redevelopment
Authority (Indian Community School-
Milwaukee); VRD Series 2002 RB (LOC-Bank
One Wisconsin)
1.15%, 07/01/22(b)(c) -- VMIG-1 $ 7,000 $ 7,000,000
- -----------------------------------------------------------------------------------------
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley)
1.15%, 04/01/32(b)(c) -- VMIG-1 3,090 3,090,000
- -----------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(2430 West Wisconsin Avenue Project);
Refunding Series 2003 RB
2.00%, 03/01/04(h) -- Aaa 1,400 1,405,185
- -----------------------------------------------------------------------------------------
New Berlin (City of) School District; Series
2003 TAN
1.88%, 02/01/04 -- MIG-1 6,200 6,216,926
- -----------------------------------------------------------------------------------------
New Berlin (City of); Promissory Notes
Unlimited Tax Series 1996 A GO
4.50%, 12/01/03 -- Aa2 1,115 1,120,902
- -----------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Harris
Trust & Savings Bank)
1.10%, 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.)
1.12%, 07/01/28(b)(c) -- VMIG-1 1,450 1,450,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health); Pooled
Loan VRD Series 2003 I RB (LOC-M&I Marshall
& Ilsley Bank)
1.15%, 06/01/23(b)(c) -- VMIG-1 10,000 10,000,000
- -----------------------------------------------------------------------------------------
</Table>
F-28
<Table>
<Caption>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
1.15%, 09/01/19(b)(c) A-1 -- $ 5,938 $ 5,938,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
1.15%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- -----------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2002 B-2 RB
2.00%, 10/30/03 -- MIG-1 10,000 10,005,662
- -----------------------------------------------------------------------------------------
Wisconsin (State of); Clean Water Series
1993-2 RB
4.70%, 06/01/04 AA+ Aa2 3,500 3,583,575
- -----------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR MARKET
S&P MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------
<Caption>
WISCONSIN-(CONTINUED)
Wisconsin (State of); Unlimited Tax Series
1994 B GO
5.50%, 05/01/04(f)(g) NRR Aaa $ 3,100 $ 3,183,389
=========================================================================================
65,443,639
=========================================================================================
WYOMING-0.29%
Unita (County of) Pollution Control (Chevron
U.S.A. Inc. Project); Refunding VRD Series
1992 IDR
1.20%, 12/01/22(i) -- VMIG-1 7,100 7,100,000
=========================================================================================
TOTAL INVESTMENTS-99.81% (Cost
$2,482,298,015)(o) 2,482,298,015
_________________________________________________________________________________________
=========================================================================================
OTHER ASSETS LESS LIABILITIES-0.19% 4,607,194
_________________________________________________________________________________________
=========================================================================================
NET ASSETS-100.00% $2,486,905,209
_________________________________________________________________________________________
=========================================================================================
</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
CPO - Certificates or Ordinary 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
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
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 notes (j) & (l)
below. NRR indicates a security that is not re-rated subsequent to funding
of a segregated escrow fund (consisting of U.S. Treasury Obligation) held by
a bank custodian; this funding is pursuant to an advance refunding of this
security.
(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 rates are redetermined weekly.
Rate shown is the rate in effect on 09/30/03.
(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 09/30/03 was $571,020,000,
which represented 22.96% of the Fund's net assets. Unless otherwise
indicated, these securities are not considered to be illiquid.
F-29
(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) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) 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., or MBIA Insurance Corp.
(i) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined daily. Rate
shown is the rate in effect on 09/30/03.
(j) Security is not rated by S&P or by Moody's; however it is rated by Fitch
IBCA ("Fitch") of F1+.
(k) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined monthly.
Rate shown is the rate in effect on 09/30/03.
(l) 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 Directors and followed
by the investment advisor.
(m) Security considered to be illiquid. The aggregate market value of these
securities considered illiquid at 09/30/03 was $20,680,000 which represented
0.83% of the Fund's net assets.
(n) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
semi-annually. Rate shown is the rate in effect on 09/30/03.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements
F-30
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003
(Unaudited)
<Table>
Investments, at market value (cost
$2,482,298,015) $2,482,298,015
- ----------------------------------------------------------
Cash 6,685,045
- ----------------------------------------------------------
Receivables for:
Investments sold 2,545,000
- ----------------------------------------------------------
Interest 6,884,691
- ----------------------------------------------------------
Amount due from advisor 13,622
- ----------------------------------------------------------
Investment for deferred compensation plan 69,806
- ----------------------------------------------------------
Other assets 97,001
==========================================================
Total assets 2,498,593,180
__________________________________________________________
==========================================================
LIABILITIES:
Payables for:
Investments purchased 9,834,187
- ----------------------------------------------------------
Dividends 1,437,267
- ----------------------------------------------------------
Deferred compensation plan 69,806
- ----------------------------------------------------------
Accrued distribution fees 136,458
- ----------------------------------------------------------
Accrued directors' fees 60,130
- ----------------------------------------------------------
Accrued transfer agent fees 31,562
- ----------------------------------------------------------
Accrued operating expenses 118,561
==========================================================
Total liabilities 11,687,971
==========================================================
Net assets applicable to shares
outstanding $2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in) $2,486,953,177
- ----------------------------------------------------------
Undistributed net realized gain (loss)
from investment securities (47,968)
==========================================================
$2,486,905,209
__________________________________________________________
==========================================================
NET ASSETS:
Institutional Class $1,410,775,610
__________________________________________________________
==========================================================
Private Investment Class $ 201,098,835
__________________________________________________________
==========================================================
Personal Investment Class $ 11,477,855
__________________________________________________________
==========================================================
Cash Management Class $ 597,548,363
__________________________________________________________
==========================================================
Reserve Class $ 14,011,493
__________________________________________________________
==========================================================
Resource Class $ 251,993,053
__________________________________________________________
==========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
__________________________________________________________
==========================================================
Institutional Class:
Authorized 16,600,000,000
- ----------------------------------------------------------
Outstanding 1,410,749,703
__________________________________________________________
==========================================================
Private Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 201,088,230
__________________________________________________________
==========================================================
Personal Investment Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 11,475,033
__________________________________________________________
==========================================================
Cash Management Class:
Authorized 6,100,000,000
- ----------------------------------------------------------
Outstanding 597,551,809
__________________________________________________________
==========================================================
Reserve Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 14,009,682
__________________________________________________________
==========================================================
Resource Class:
Authorized 1,100,000,000
- ----------------------------------------------------------
Outstanding 251,995,227
__________________________________________________________
==========================================================
Net asset value and offering price per
share for each class $ 1.00
__________________________________________________________
==========================================================
</Table>
See Notes to Financial Statements.
F-31
STATEMENT OF OPERATIONS
For the six months ended September 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME:
Interest $14,121,270
=========================================================================
EXPENSES:
Advisory fees 2,760,656
- -------------------------------------------------------------------------
Administrative services fees 272,002
- -------------------------------------------------------------------------
Custodian fees 63,070
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 597,436
- -------------------------------------------------------------------------
Personal Investment Class 55,698
- -------------------------------------------------------------------------
Cash Management Class 332,805
- -------------------------------------------------------------------------
Reserve Class 56,813
- -------------------------------------------------------------------------
Resource Class 288,548
- -------------------------------------------------------------------------
Transfer agent fees 241,539
- -------------------------------------------------------------------------
Directors' fees 23,413
- -------------------------------------------------------------------------
Other 235,728
=========================================================================
Total expenses 4,927,708
=========================================================================
Less: Fees waived (1,135,487)
- -------------------------------------------------------------------------
Net expenses 3,792,221
=========================================================================
Net investment income 10,329,049
=========================================================================
Net realized gain (loss) from investment securities (6,195)
=========================================================================
Net increase in net assets resulting from operations $10,322,854
_________________________________________________________________________
=========================================================================
</Table>
See Notes to Financial Statements.
F-32
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2003 and the year ended March 31, 2003
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, MARCH 31,
2003 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,329,049 $ 26,106,952
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (6,195) (25,175)
===============================================================================================
Net increase in net assets resulting from operations 10,322,854 26,081,777
===============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (6,001,469) (17,031,877)
- -----------------------------------------------------------------------------------------------
Private Investment Class (713,119) (1,818,359)
- -----------------------------------------------------------------------------------------------
Personal Investment Class (23,944) (93,454)
- -----------------------------------------------------------------------------------------------
Cash Management Class (2,595,373) (4,920,342)
- -----------------------------------------------------------------------------------------------
Reserve Class (5,402) (64,630)
- -----------------------------------------------------------------------------------------------
Resource Class (989,742) (2,178,290)
===============================================================================================
Decrease in net assets resulting from distributions (10,329,049) (26,106,952)
===============================================================================================
Share transactions-net:
Institutional Class 89,554,274 82,192,016
- -----------------------------------------------------------------------------------------------
Private Investment Class (26,733,555) 48,742,626
- -----------------------------------------------------------------------------------------------
Personal Investment Class (5,513,638) 11,894,107
- -----------------------------------------------------------------------------------------------
Cash Management Class (20,132,878) 297,170,515
- -----------------------------------------------------------------------------------------------
Reserve Class 1,358,196 (5,545,385)
- -----------------------------------------------------------------------------------------------
Resource Class (8,182,884) 122,868,778
===============================================================================================
Net increase in net assets resulting from share
transactions 30,349,515 557,322,657
===============================================================================================
Net increase in net assets 30,343,320 557,297,482
===============================================================================================
NET ASSETS:
Beginning of period 2,456,561,889 1,899,264,407
===============================================================================================
End of period $2,486,905,209 $2,456,561,889
_______________________________________________________________________________________________
===============================================================================================
</Table>
See Notes to Financial Statements.
F-33
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Co. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Company is organized as a Maryland
corporation consisting of one portfolio, the Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class separately 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.
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
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.
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 TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment agreement, AIM
receives a monthly fee with respect to the Fund 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. AIM has voluntarily
agreed to limit Fund operating expenses (excluding Rule 12b-1 fees, interest,
taxes, fund merger and reorganization expenses, director's fees, federal
registration fees, extraordinary items including other items designated as such
by the Board of Directors, and increases in expenses due to expense offset
arrangements, if any) to 0.22%. Voluntary expense limitations may be modified or
discontinued at any time without further notice to investors. For the six months
ended September 30, 2003, AIM waived fees of $683,759.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended September 30, 2003,
AIM was paid $272,002 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay AIM Investment Services, Inc. ("AISI") a fee for
F-34
providing transfer agency and shareholder services to the Fund. During the six
months ended September 30, 2003, AISI retained $198,866 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, 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. The Fund may pay a service fee up to 0.25% of the average daily net
assets of each Class to selected banks, broker-dealers and other financial
institutions who offer continuing personal shareholder services to their
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 equal to 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. Pursuant to the Plan, for the six months
ended September 30, 2003, the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class paid
$298,718, $40,845, $266,244, $42,926 and $230,839, respectively, after FMC
waived Plan fees of $298,718, $14,853, $66,561, $13,887 and $57,709,
respectively.
Certain officers and directors of the Fund are officers of AIM, FMC and/or
AISI.
NOTE 3--DIRECTORS' FEES
Directors' fees represent remuneration paid to each Director of the Company who
is not an "interested person" of AIM. Directors have the option to defer
compensation payable by the Company. The Directors deferring compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
During the six months ended September 30, 2003, the Fund paid legal fees of
$3,442 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Independent Directors. A member of that firm is a Director of the Fund.
NOTE 4--BORROWINGS
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 six months ended September 30, 2003.
NOTE 5--TAX INFORMATION
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforward) under income tax regulations. The tax character of
distributions paid during the year and the tax components of net assets will be
updated at the Fund's fiscal year-end.
The Fund has a capital loss carryforward for tax purposes which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------
March 31, 2004 $16,322
- --------------------------------------------------------
March 31, 2011 15,098
========================================================
Total capital loss carryforward $31,420
________________________________________________________
========================================================
</Table>
F-35
NOTE 6--CAPITAL STOCK INFORMATION
The Fund currently offers six different classes of shares: the Institutional
Class, the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 6,022,615,414 $ 6,022,615,414 9,993,613,813 $ 9,993,613,813
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 353,068,312 353,068,312 366,327,891 366,327,891
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 14,429,055 14,429,055 49,022,061 49,022,061
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,726,909,483 2,726,909,483 3,773,086,548 3,773,086,548
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 83,105,327 83,105,327 179,359,417 179,359,417
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 740,835,889 740,835,889 962,309,593 962,309,593
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 2,447,089 2,447,089 4,749,313 4,749,313
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 453,644 453,644 1,254,023 1,254,023
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 2,305 2,305 14,703 14,703
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 2,245,872 2,245,872 4,134,190 4,134,190
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 5,879 5,879 71,043 71,043
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 978,391 978,391 2,003,975 2,003,975
=================================================================================================================================
Reacquired:
Institutional Class (5,935,508,229) (5,935,508,229) (9,916,171,110) (9,916,171,110)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (380,255,511) (380,255,511) (318,839,288) (318,839,288)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (19,944,998) (19,944,998) (37,142,657) (37,142,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (2,749,288,233) (2,749,288,233) (3,480,050,223) (3,480,050,223)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (81,753,010) (81,753,010) (184,975,845) (184,975,845)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (749,997,164) (749,997,164) (841,444,790) (841,444,790)
=================================================================================================================================
30,349,515 $ 30,349,515 557,322,657 $ 557,322,657
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
F-36
NOTE 7--FINANCIAL HIGHLIGHTS
<Table>
<Caption>
RESOURCE CLASS
------------------------------------------------------------------------------------
SIX MONTHS APRIL 6, 1999
ENDED YEAR ENDED MARCH 31, (DATE SALES COMMENCED)
SEPTEMBER 30, ----------------------------------- TO MARCH 31,
2003 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 0.004 0.01 0.02 0.04 0.03
=================================================================================================================================
Less dividends from net investment income (0.004) (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) 0.35% 1.06% 2.00% 3.78% 3.15%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $251,993 $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 0.69%(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 annualized and based on average daily net assets of
$288,547,571.
(c) Annualized.
NOTE 8--SUBSEQUENT EVENT
On October 21, 2003, shareholders approved an Agreement and Plan of
Reorganization (the "ISF Plan"), that provides for the redomestication of the
Fund as a series portfolio of a newly formed Delaware statutory trust.
NOTE 9--REGULATORY INQUIRIES
As has been widely reported, the U.S. Securities & Exchange Commission ("SEC"),
the Attorney General of the State of New York and the Secretary of the
Commonwealth of Massachusetts are examining late trading, market timing and
related issues across the mutual fund industry. Along with many other firms,
A I M Advisors, Inc. ("AIM") in Houston and INVESCO Funds Group, Inc.
("INVESCO") in Denver, affiliated retail mutual fund advisory firms, have
received inquiries from the SEC. INVESCO also has received inquiries from the
New York Attorney General, and AIM also has received inquiries from the
Secretary of the Commonwealth of Massachusetts. AIM and INVESCO are cooperating
fully with all of these inquiries. Neither AIM nor INVESCO has received any
notice from any regulator regarding any potential legal actions.
F-37
ITEM 2. CODE OF ETHICS.
Not applicable for filing of semi-annual reports to
shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for filing of semi-annual reports to
shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for filing of semi-annual reports to
shareholders.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) As of June 18, 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 June 18, 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/A 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 period covered by the report on Form N-CSR/A that has
materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS
10(a)(1) Not applicable for filing of semi-annual reports to shareholders.
10(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.
10(a)(3) Not applicable.
10(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under 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, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Tax-Free Investments Trust
(Successor to: Tax-Free Investments Co.)
By: /s/ ROBERT H. GRAHAM
-------------------------------------------
Robert H. Graham
Principal Executive Officer
Date: August 3, 2004
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investments 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.
By: /s/ ROBERT H. GRAHAM
-------------------------------------------
Robert H. Graham
Principal Executive Officer
Date: August 3, 2004
By: /s/ SIDNEY M. DILGREN
-------------------------------------------
Sidney M. Dilgren
Principal Financial Officer
Date: August 3, 2004
EXHIBIT INDEX
10(a)(1) Not applicable for filing of semi-annual reports to shareholders.
10(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.
10(a)(3) Not applicable.
10(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company
Act of 1940.